☐ | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||
American depositary shares | FINV | New York Stock Exchange | ||
Class A ordinary shares, par value US$0.00001 per | New York Stock Exchange |
* | Not for trading, but only in connection with the listing on the New York Stock Exchange of American depositary shares. |
Large accelerated filer | Accelerated filer | Non-accelerated filer | ☐ | |||||||
Emerging growth company | ☐ |
† | The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012. |
U.S. GAAP ☒ | International Financial Reporting Standards as issued | Other ☐ | ||||||
by the International Accounting Standards Board | ☐ |
1 | ||||||
3 | ||||||
4 | ||||||
ITEM 1. | 4 | |||||
ITEM 2. | 4 | |||||
ITEM 3. | 4 | |||||
ITEM 4. | ||||||
ITEM 4A. | ||||||
ITEM 5. | ||||||
ITEM 6. | ||||||
ITEM 7. | ||||||
ITEM 8. | ||||||
ITEM 9. | ||||||
ITEM 10. | ||||||
ITEM 11. | ||||||
ITEM 12. | ||||||
164 | ||||||
ITEM 13. | ||||||
ITEM 14. | ||||||
ITEM 15. | ||||||
ITEM 16A. | ||||||
ITEM 16B. | ||||||
ITEM 16C. | ||||||
ITEM 16D. | ||||||
ITEM 16E. | ||||||
ITEM 16F. | ||||||
ITEM 16G. | ||||||
ITEM 16H. | ||||||
ITEM 16I. | 168 | |||||
169 | ||||||
ITEM 17. | ||||||
ITEM 18. | ||||||
ITEM 19. | ||||||
ITEM 1. | IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS |
ITEM 2. | OFFER STATISTICS AND EXPECTED TIMETABLE |
ITEM 3. | KEY INFORMATION |
Year Ended December 31, | ||||||||||||||||||||||||
2016 | 2017 | 2018 (1) | 2019 | 2020 (2) | ||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | |||||||||||||||||||
(in thousands, except for share, per share and per ADS data) | ||||||||||||||||||||||||
Selected Consolidated Statements of Comprehensive Income/(Loss) Data: | ||||||||||||||||||||||||
Operating revenues: | ||||||||||||||||||||||||
Loan facilitation service fees | 911,448 | 2,843,287 | 2,919,234 | 3,310,875 | 1,908,851 | 292,544 | ||||||||||||||||||
Post-facilitation service fees | 126,823 | 668,819 | 922,797 | 1,200,373 | 672,981 | 103,139 | ||||||||||||||||||
Guarantee income | — | — | — | — | 3,386,032 | 518,932 | ||||||||||||||||||
Net interest income (3) | 41,789 | 31,377 | 256,108 | 1,106,669 | 1,113,337 | 170,626 | ||||||||||||||||||
Other revenue | 170,403 | 491,400 | 376,915 | 344,840 | 481,886 | 73,852 | ||||||||||||||||||
Changes in expected discretionary payment to IRF investors | — | (107,660 | ) | 68,619 | — | — | — | |||||||||||||||||
Net revenues | 1,250,463 | 3,927,223 | 4,543,673 | 5,962,757 | 7,563,087 | 1,159,093 | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Origination and servicing expenses | (349,852 | ) | (890,160 | ) | (875,905 | ) | (1,164,716 | ) | (1,315,496 | ) | (201,609 | ) | ||||||||||||
Origination and servicing expenses-related party | (38,297 | ) | (84,362 | ) | (109,666 | ) | (43,494 | ) | (10,104 | ) | (1,549 | ) | ||||||||||||
Sales and marketing expenses | (352,952 | ) | (788,291 | ) | (710,754 | ) | (720,333 | ) | (482,859 | ) | (74,001 | ) |
Year Ended December 31, | ||||||||||||||||||||||||
2016 | 2017 | 2018 (1) | 2019 | 2020 (2) | ||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | |||||||||||||||||||
(in thousands, except for share, per share and per ADS data) | ||||||||||||||||||||||||
General and administrative expenses | (123,160 | ) | (423,795 | ) | (383,388 | ) | (435,816 | ) | (461,116 | ) | (70,669 | ) | ||||||||||||
Research and development expenses | (114,648 | ) | (164,869 | ) | (317,965 | ) | (390,585 | ) | (370,175 | ) | (56,732 | ) | ||||||||||||
Credit losses for quality assurance commitment | — | — | — | — | (2,007,968 | ) | (307,735 | ) | ||||||||||||||||
Provision for loan receivable (3) | (34,705 | ) | (46,586 | ) | (192,749 | ) | (299,504 | ) | (463,175 | ) | (70,985 | ) | ||||||||||||
Provision for accounts receivable and other receivables | — | — | (106,652 | ) | (261,882 | ) | (144,661 | ) | (22,170 | ) | ||||||||||||||
Total operating expenses | (1,013,614 | ) | (2,398,063 | ) | (2,697,079 | ) | (3,316,330 | ) | (5,255,554 | ) | (805,450 | ) | ||||||||||||
Other income/(expenses) (4) | 312,908 | (171,542 | ) | 774,063 | 210,053 | 116,469 | 17,850 | |||||||||||||||||
Profit before income tax expenses | 549,757 | 1,357,618 | 2,620,657 | 2,856,480 | 2,424,002 | 371,493 | ||||||||||||||||||
Income tax expense | (48,267 | ) | (274,711 | ) | (151,206 | ) | (481,962 | ) | (455,421 | ) | (69,796 | ) | ||||||||||||
Net profit | 501,490 | 1,082,907 | 2,469,451 | 2,374,518 | 1,968,581 | 301,697 | ||||||||||||||||||
Less: Net profit/(loss) attributable to non-controlling interest shareholders | — | (76 | ) | 377 | 1,668 | (4,119 | ) | (631 | ) | |||||||||||||||
Accretion on Series A, B and C convertible redeemable preferred shares to redemption value | (562,022 | ) | (3,073,471 | ) | — | — | — | — | ||||||||||||||||
Net (loss)/profit attributable to FinVolution Group’s ordinary shareholders | (60,532 | ) | (1,990,488 | ) | 2,469,074 | 2,372,850 | 1,972,700 | 302,328 | ||||||||||||||||
Total comprehensive income attributable to FinVolution Group | 440,992 | 1,182,917 | 2,512,367 | 2,384,960 | 1,897,238 | 290,763 | ||||||||||||||||||
Weighted average number of ordinary shares used in computing net income per share | ||||||||||||||||||||||||
Basic | 665,000,000 | 779,804,270 | 1,498,780,165 | 1,525,814,189 | 1,477,162,991 | 1,477,162,991 | ||||||||||||||||||
Diluted | 665,000,000 | 779,804,270 | 1,599,592,231 | 1,552,423,060 | 1,491,325,420 | 1,491,325,420 | ||||||||||||||||||
Net income/(loss) per share attributable to ordinary shareholders | ||||||||||||||||||||||||
Net (loss)/income per share – Basic | (0.09 | ) | (2.55 | ) | 1.65 | 1.56 | 1.34 | 0.20 | ||||||||||||||||
Net (loss)/income per share – Diluted | (0.09 | ) | (2.55 | ) | 1.54 | 1.53 | 1.32 | 0.20 | ||||||||||||||||
Net income/(loss) per ADS (5) | ||||||||||||||||||||||||
Net (loss)/income per ADS – Basic | (0.46 | ) | (12.76 | ) | 8.24 | 7.78 | 6.68 | 1.02 | ||||||||||||||||
Net (loss)/income per ADS – Diluted | (0.46 | ) | (12.76 | ) | 7.72 | 7.64 | 6.61 | 1.01 |
We face various risks and uncertainties related to doing business in China. Our business operations are primarily conducted in China, and we are subject to complex and evolving PRC laws and regulations. For example, we face risks associated with regulatory approvals on offshore offerings and oversight on cybersecurity and data privacy, as well as the lack of inspection by the Public Company Accounting Oversight Board, or the PCAOB, on our auditors, which may impact our ability to conduct certain businesses, accept foreign investments, or list on a United States or other foreign exchange. These risks could result in a material adverse change in our operations and the value of our ADSs, significantly limit or completely hinder our ability to continue to offer securities to investors, or cause the value of such securities to significantly decline. For a detailed description of risks related to doing business in China, please refer to risks disclosed under “Item 3.D. Key Information—Risk Factors—Risks Related to Doing Business in China.” PRC government’s significant authority in regulating our operations and its oversight and control over offerings conducted overseas by, and foreign investment in, China-based issuers could significantly limit or completely hinder our ability to offer or continue to offer securities to investors. Implementation of industry-wide regulations, including data security related regulations, in this nature may cause the value of such securities to significantly decline. For more details, see “Item 3. Key Information—D. Risk Factors—Risks Related to Doing Business in China—The PRC government’s significant oversight and discretion over our business operation could result in a material adverse change in our operations and the value of our ADSs.” Risks and uncertainties arising from the legal system in China, including risks and uncertainties regarding the enforcement of laws and quickly evolving rules and regulations in China, could result in a material adverse change in our operations and the value of our ADSs. For more details, see “Item 3. Key Information—D. Risk Factors—Risks Related to Doing Business in China—Uncertainties in the interpretation and enforcement of PRC laws and regulations could limit the legal protections available to us” and “ —We may be adversely affected by the complexity, uncertainties and changes in PRC regulation of internet-related businesses and companies, and any lack of requisite approvals, licenses or permits applicable to our business may have a material adverse effect on our business and results of operations.” |
Permissions Required from the PRC Authorities for Our Operations |
Year Ended December 31, | ||||||||||||||||||||||||
2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Other income/(expenses) | ||||||||||||||||||||||||
Gain from quality assurance | 99,961 | 5,885 | 510,894 | 98,405 | — | — | ||||||||||||||||||
Realized gain/(loss) from financial guarantee derivatives | 31,999 | 169,103 | (157,244 | ) | 31,444 | — | — | |||||||||||||||||
Fair value change of financial guarantee derivatives | 146,653 | (383,061 | ) | 272,057 | (56,287 | ) | — | — | ||||||||||||||||
Gain from disposal of subsidiary | 20,611 | — | — | — | — | — | ||||||||||||||||||
Other income, net | 13,684 | 36,531 | 148,356 | 136,491 | 116,469 | 17,850 | ||||||||||||||||||
Total other income/(expenses) | 312,908 | (171,542 | ) | 774,063 | 210,053 | 116,469 | 17,850 |
As of December 31, | ||||||||||||||||||||||||
2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Selected Consolidated Balance Sheets Data: | ||||||||||||||||||||||||
Cash and cash equivalents | 404,678 | 1,891,131 | 1,616,164 | 2,324,542 | 2,632,174 | 403,398 | ||||||||||||||||||
Restricted cash (1) | 802,887 | 2,392,573 | 3,677,557 | 3,686,203 | 3,484,227 | 533,981 | ||||||||||||||||||
Short-term investments | 260,000 | 1,958,910 | 1,694,660 | 114,560 | 1,970,958 | 302,063 | ||||||||||||||||||
Quality assurance receivable | 286,812 | 1,152,769 | 2,064,366 | 3,649,642 | 1,121,554 | 171,886 | ||||||||||||||||||
Investments | 2,428 | 12,234 | 167,501 | 952,833 | 950,515 | 145,673 | ||||||||||||||||||
Contract assets | — | — | 112,103 | 20,555 | — | — | ||||||||||||||||||
Financial guarantee derivative assets | 167,291 | — | 56,287 | — | — | — | ||||||||||||||||||
Total assets | 2,147,291 | 8,603,663 | 13,142,467 | 18,304,456 | 14,882,185 | 2,280,795 |
As of December 31, | ||||||||||||||||||||||||
2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Payable to platform customers | 421,659 | 1,113,966 | 905,034 | 684,630 | 103,453 | 15,855 | ||||||||||||||||||
Quality assurance payable | 473,704 | 2,062,844 | 3,819,379 | 4,776,153 | — | — | ||||||||||||||||||
Deferred revenue | 162,896 | 265,094 | — | — | — | — | ||||||||||||||||||
Expected credit losses for quality assurance commitment | — | — | — | — | 2,390,501 | 366,360 | ||||||||||||||||||
Deferred guarantee income | — | — | — | — | 1,259,396 | 193,011 | ||||||||||||||||||
Provision for payment to investor reserve fund investor | — | 107,660 | — | — | — | — | ||||||||||||||||||
Contract liabilities | — | — | 165,469 | 55,728 | 3,447 | 528 | ||||||||||||||||||
Financial guarantee derivative liabilities | — | 215,770 | — | — | — | — | ||||||||||||||||||
Total liabilities | 1,375,069 | 4,921,475 | 7,156,729 | 10,292,976 | 6,451,855 | 988,790 | ||||||||||||||||||
Total mezzanine equity | 1,210,645 | — | — | — | — | — | ||||||||||||||||||
Total shareholders’ equity/(deficit) | (438,423 | ) | 3,682,188 | 5,985,738 | 8,011,480 | 8,430,330 | 1,292,005 |
As of December 31, | ||||||||||||||||||||||||
2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Restricted cash: | ||||||||||||||||||||||||
Quality assurance commitment and quality assurance fund | 329,549 | 1,058,617 | 2,414,449 | 1,473,749 | 1,671,785 | 256,212 | ||||||||||||||||||
Investor reserve funds | 51,679 | 175,215 | 17,971 | 41,958 | — | — | ||||||||||||||||||
Cash received from investors and borrowers | 421,659 | 1,113,966 | 905,034 | 684,630 | 103,453 | 15,854 | ||||||||||||||||||
Cash received via consolidated trust that has not yet been distributed | — | 44,775 | 303,667 | 799,646 | 482,285 | 73,913 | ||||||||||||||||||
Collateral for short-term borrowings | — | — | 26,000 | 251,853 | — | — | ||||||||||||||||||
Escrow accounts | — | — | 10,436 | 44,367 | 701,673 | 107,536 | ||||||||||||||||||
Designated accounts for security deposits | — | — | — | 390,000 | — | — | ||||||||||||||||||
Cash received from borrower to be distributed to funding partners | — | — | — | — | 225,031 | 34,488 | ||||||||||||||||||
Cash held in capital verification account | — | — | — | — | 300,000 | 45,978 | ||||||||||||||||||
Total restricted cash | 802,887 | 2,392,573 | 3,677,557 | 3,686,203 | 3,484,227 | 533,981 |
As of December 31, | ||||||||||||||||||||||||
2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Summary Consolidated Cash Flows Data: | ||||||||||||||||||||||||
Net cash provided by/(used in) operating activities | 1,088,227 | 3,409,451 | 1,884,956 | (215,522 | ) | 2,206,909 | 338,224 | |||||||||||||||||
Net cash (used in)/provided by investing activities | (684,112 | ) | (2,450,800 | ) | (1,447,013 | ) | (828,219 | ) | 1,041,496 | 159,616 | ||||||||||||||
Net cash provided by/(used in) financing activities | 438,701 | 2,132,933 | 530,097 | 1,749,512 | (3,091,279 | ) | (473,759 | ) | ||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 2,493 | (15,445 | ) | 41,977 | 11,253 | (51,470 | ) | (7,889 | ) | |||||||||||||||
Net increase in cash, cash equivalents and restricted cash | 845,309 | 3,076,139 | 1,010,017 | 717,024 | 105,656 | 16,192 | ||||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of year | 362,256 | 1,207,565 | 4,283,704 | 5,293,721 | 6,010,745 | 921,187 | ||||||||||||||||||
Cash, cash equivalents and restricted cash at end of year | 1,207,565 | 4,283,704 | 5,293,721 | 6,010,745 | 6,116,401 | 937,379 |
For the Year Ended December 31, 2021 | ||||||||||||||||||||||||
FinVolution Group | Company Subsidiaries | Primary Beneficiary of Consolidated Variable Interest Entities | Consolidated Variable Interest Entities and Their Subsidiaries | Eliminations | Consolidated Total | |||||||||||||||||||
(RMB in thousands) | ||||||||||||||||||||||||
Third-party revenues | — | 1,132,093 | 4,057 | 8,333,978 | — | 9,470,128 | ||||||||||||||||||
Inter-company revenues (1) | — | 2,545,816 | 16,400 | 796,071 | (3,358,287 | ) | — | |||||||||||||||||
Net revenues | — | 3,677,909 | 20,457 | 9,130,049 | (3,358,287 | ) | 9,470,128 | |||||||||||||||||
Third-party expenses | (18,617 | ) | (892,810 | ) | (18,850 | ) | (3,441,504 | ) | — | (4,371,781 | ) | |||||||||||||
Inter-company expenses (1) | — | (812,471 | ) | — | (2,545,816 | ) | 3,358,287 | — | ||||||||||||||||
Related party expenses | — | — | — | (7,503 | ) | — | (7,503 | ) | ||||||||||||||||
Provision for accounts receivable and contract assets | — | (4,288 | ) | — | (134,938 | ) | — | (139,226 | ) | |||||||||||||||
Provision for loans receivable | — | (406,560 | ) | — | 32,317 | — | (374,243 | ) | ||||||||||||||||
Credit losses for quality assurance commitment | — | — | — | (1,963,609 | ) | — | (1,963,609 | ) | ||||||||||||||||
Total operating expenses | (18,617 | ) | (2,116,129 | ) | (18,850 | ) | (8,061,053 | ) | 3,358,287 | (6,856,362 | ) | |||||||||||||
Income (loss) from subsidiaries and VIEs (2) | 2,526,062 | 1,015,784 | 2,369,387 | (448 | ) | (5,910,785 | ) | — | ||||||||||||||||
Income from operations | 2,507,445 | 2,577,564 | 2,370,994 | 1,068,548 | (5,910,785 | ) | 2,613,766 | |||||||||||||||||
Other income, net | 1,502 | 26,847 | 345 | 93,674 | — | 122,368 | ||||||||||||||||||
Profit before income tax expenses | 2,508,947 | 2,604,411 | 2,371,339 | 1,162,222 | (5,910,785 | ) | 2,736,134 | |||||||||||||||||
Income tax expenses | — | (92,428 | ) | (3,927 | ) | (144,463 | ) | — | (240,818 | ) | ||||||||||||||
Net profit | 2,508,947 | 2,511,983 | 2,367,412 | 1,017,759 | (5,910,785 | ) | 2,495,316 | |||||||||||||||||
Net loss attributable to non-controlling interest shareholders | — | 14,079 | — | — | (448 | ) | 13,631 | |||||||||||||||||
Net profit attributable to FinVolution Group’s ordinary shareholders | 2,508,947 | 2,526,062 | 2,367,412 | 1,017,759 | (5,911,233 | ) | 2,508,947 |
For the Year Ended December 31, 2020 | ||||||||||||||||||||||||
FinVolution Group | Company Subsidiaries | Primary Beneficiary of Consolidated Variable Interest Entities | Consolidated Variable Interest Entities and Their Subsidiaries | Eliminations | Consolidated Total | |||||||||||||||||||
(RMB in thousands) | ||||||||||||||||||||||||
Third-party revenues | — | 533,106 | 36,882 | 6,993,099 | — | 7,563,087 | ||||||||||||||||||
Inter-company revenues (1) | — | 1,098,946 | 48,303 | 159,319 | (1,306,568 | ) | — | |||||||||||||||||
Net revenues | — | 1,632,052 | 85,185 | 7,152,418 | (1,306,568 | ) | 7,563,087 | |||||||||||||||||
Third-party expenses | (20,720 | ) | (581,725 | ) | (26,690 | ) | (2,000,511 | ) | — | (2,629,646 | ) | |||||||||||||
Inter-company expenses (1) | — | (159,319 | ) | (18,086 | ) | (1,129,163 | ) | 1,306,568 | — | |||||||||||||||
Related party expenses | — | — | — | (10,104 | ) | — | (10,104 | ) | ||||||||||||||||
Provision for accounts receivable and contract assets | — | (28,274 | ) | — | (116,387 | ) | — | (144,661 | ) | |||||||||||||||
Provision for loans receivable | — | (160,932 | ) | — | (302,243 | ) | — | (463,175 | ) | |||||||||||||||
Credit losses for quality assurance commitment | — | — | — | (2,007,968 | ) | — | (2,007,968 | ) | ||||||||||||||||
Total operating expenses | (20,720 | ) | (930,250 | ) | (44,776 | ) | (5,566,376 | ) | 1,306,568 | (5,255,554 | ) | |||||||||||||
Income (loss) from subsidiaries and VIEs (2) | 1,991,262 | 1,395,376 | 2,036,131 | (2,372 | ) | (5,420,397 | ) | — | ||||||||||||||||
Income from operations | 1,970,542 | 2,097,178 | 2,076,540 | 1,583,670 | (5,420,397 | ) | 2,307,533 | |||||||||||||||||
Other income, net | 2,158 | 13,162 | 319 | 100,830 | — | 116,469 | ||||||||||||||||||
Profit before income tax expenses | 1,972,700 | 2,110,340 | 2,076,859 | 1,684,500 | (5,420,397 | ) | 2,424,002 | |||||||||||||||||
Income tax expenses | — | (125,569 | ) | (10,152 | ) | (319,700 | ) | — | (455,421 | ) | ||||||||||||||
Net profit | 1,972,700 | 1,984,771 | 2,066,707 | 1,364,800 | (5,420,397 | ) | 1,968,581 | |||||||||||||||||
Net loss attributable to non-controlling interest shareholders | — | 6,491 | — | — | (2,372 | ) | 4,119 | |||||||||||||||||
Net profit attributable to FinVolution Group’s ordinary shareholders | 1,972,700 | 1,991,262 | 2,066,707 | 1,364,800 | (5,422,769 | ) | 1,972,700 |
For the Year Ended December 31, 2019 | ||||||||||||||||||||||||
FinVolution Group | Company Subsidiaries | Primary Beneficiary of Consolidated Variable Interest Entities | Consolidated Variable Interest Entities and Their Subsidiaries | Eliminations | Consolidated Total | |||||||||||||||||||
(RMB in thousands) | ||||||||||||||||||||||||
Third-party revenues | — | 218,433 | 1,456 | 5,742,868 | — | 5,962,757 | ||||||||||||||||||
Inter-company revenues (1) | — | 1,811,586 | 49,546 | 27,033 | (1,888,165 | ) | — | |||||||||||||||||
Net revenues | — | 2,030,019 | 51,002 | 5,769,901 | (1,888,165 | ) | 5,962,757 | |||||||||||||||||
Third-party expenses | (25,590 | ) | (447,653 | ) | (24,765 | ) | (2,213,442 | ) | — | (2,711,450 | ) | |||||||||||||
Inter-company expenses (1) | — | (24,011 | ) | (27,033 | ) | (1,837,121 | ) | 1,888,165 | — | |||||||||||||||
Related party expenses | — | — | — | (43,494 | ) | — | (43,494 | ) | ||||||||||||||||
Provision for accounts receivable and contract assets | — | (3,811 | ) | — | (258,071 | ) | — | (261,882 | ) | |||||||||||||||
Provision for loans receivable | — | (42,241 | ) | — | (257,263 | ) | — | (299,504 | ) | |||||||||||||||
Total operating expenses | (25,590 | ) | (517,716 | ) | (51,798 | ) | (4,609,391 | ) | 1,888,165 | (3,316,330 | ) | |||||||||||||
Income (loss) from subsidiaries and VIEs (2) | 2,390,542 | 1,046,664 | 2,277,941 | (1,128 | ) | (5,714,019 | ) | — | ||||||||||||||||
Income from operations | 2,364,952 | 2,558,967 | 2,277,145 | 1,159,382 | (5,714,019 | ) | 2,646,427 | |||||||||||||||||
Other income, net | 7,898 | 28,976 | 67,182 | 32,435 | — | 136,491 | ||||||||||||||||||
Gain from quality assurance | — | — | — | 98,405 | — | 98,405 | ||||||||||||||||||
Realized gain from financial guarantee derivatives | — | — | — | 31,444 | — | 31,444 | ||||||||||||||||||
Fair value change of financial guarantee derivatives | — | — | — | (56,287 | ) | — | (56,287 | ) | ||||||||||||||||
Profit before income tax expenses | 2,372,850 | 2,587,943 | 2,344,327 | 1,265,379 | (5,714,019 | ) | 2,856,480 | |||||||||||||||||
Income tax expenses | — | (196,861 | ) | (16,597 | ) | (268,504 | ) | — | (481,962 | ) | ||||||||||||||
Net profit | 2,372,850 | 2,391,082 | 2,327,730 | 996,875 | (5,714,019 | ) | 2,374,518 | |||||||||||||||||
Net profit attributable to non-controlling interest shareholders | — | (540 | ) | — | — | (1,128 | ) | (1,668 | ) | |||||||||||||||
Net profit attributable to FinVolution Group’s ordinary shareholders | 2,372,850 | 2,390,542 | 2,327,730 | 996,875 | (5,715,147 | ) | 2,372,850 |
As of December 31, 2021 | ||||||||||||||||||||||||
FinVolution Group | Company Subsidiaries | Primary Beneficiary of Consolidated Variable Interest Entities | Consolidated Variable Interest Entities and Their Subsidiaries | Eliminations | Consolidated Total | |||||||||||||||||||
(RMB in thousands) | ||||||||||||||||||||||||
Cash and cash equivalents | 38,231 | 2,199,438 | 3,877 | 2,176,581 | — | 4,418,127 | ||||||||||||||||||
Restricted cash | — | 381,582 | — | 3,691,832 | — | 4,073,414 | ||||||||||||||||||
Short-term investments | — | 31,378 | — | 1,173,523 | — | 1,204,901 | ||||||||||||||||||
Accounts receivable and contract assets | — | 85,767 | — | 1,805,079 | — | 1,890,846 | ||||||||||||||||||
Quality assurance receivable | — | — | — | 931,798 | — | 931,798 | ||||||||||||||||||
Property, equipment and software, net | — | 69,156 | — | 43,241 | — | 112,397 | ||||||||||||||||||
Intangible assets | — | 63,760 | — | 35,187 | — | 98,947 | ||||||||||||||||||
Loans and receivables, net of credit loss allowance for loans receivables | — | 285,781 | — | 1,696,495 | — | 1,982,276 | ||||||||||||||||||
Investments | — | 150,510 | — | 820,607 | — | 971,117 | ||||||||||||||||||
Investment in subsidiaries and VIEs (3) | 10,574,557 | 6,108,415 | 9,984,072 | 70,578 | (26,737,622 | ) | — | |||||||||||||||||
Deferred tax assets | — | 112,247 | — | 343,494 | — | 455,741 | ||||||||||||||||||
Prepaid expenses and other assets | 2,795 | 220,173 | 3,816 | 1,672,654 | — | 1,899,438 | ||||||||||||||||||
Amounts due from Group companies (4) | 694,123 | 3,534,245 | 744,700 | 2,200,275 | (7,173,343 | ) | — | |||||||||||||||||
Right of use assets | — | 197 | — | 48,941 | — | 49,138 | ||||||||||||||||||
Goodwill (9) | — | 50,411 | — | — | — | 50,411 | ||||||||||||||||||
Total assets | 11,309,706 | 13,293,060 | 10,736,465 | 16,710,285 | (33,910,965 | ) | 18,138,551 | |||||||||||||||||
Payable to platform customers | — | — | — | 81,150 | — | 81,150 | ||||||||||||||||||
Deferred guarantee income | — | — | — | 1,089,503 | — | 1,089,503 | ||||||||||||||||||
Expected credit losses for quality assurance commitment | — | — | — | 3,188,561 | — | 3,188,561 | ||||||||||||||||||
Payroll and welfare payable | — | 102,032 | 4,189 | 146,697 | — | 252,918 | ||||||||||||||||||
Taxes payable | — | 143,411 | — | 57,237 | — | 200,648 | ||||||||||||||||||
Funds payable to investors of consolidated trusts | — | — | — | 1,795,640 | — | 1,795,640 | ||||||||||||||||||
Contract liability | 1,610 | — | — | 6,826 | — | 8,436 | ||||||||||||||||||
Amounts due to Group companies (4) | 647,199 | 2,221,430 | 299,662 | 4,005,052 | (7,173,343 | ) | — | |||||||||||||||||
Amounts due to related party | — | — | — | 2,265 | — | 2,265 | ||||||||||||||||||
Deferred tax liabilities | — | 91,976 | — | 45,656 | — | 137,632 | ||||||||||||||||||
Accrued expenses and other liabilities | 5,647 | 34,544 | 71 | 598,570 | — | 638,832 | ||||||||||||||||||
Leasing liabilities | — | 172 | — | 33,184 | — | 33,356 | ||||||||||||||||||
Total liabilities | 654,456 | 2,593,565 | 303,922 | 11,050,341 | (7,173,343 | ) | 7,428,941 | |||||||||||||||||
Total FinVolution Group shareholders’ equity (3) | 10,655,250 | 10,574,557 | 10,432,543 | 5,659,944 | (26,667,044 | ) | 10,655,250 | |||||||||||||||||
Non-controlling interest | — | 124,938 | — | — | (70,578 | ) | 54,360 | |||||||||||||||||
Total shareholders’ equity | 10,655,250 | 10,699,495 | 10,432,543 | 5,659,944 | (26,737,622 | ) | 10,709,610 | |||||||||||||||||
Total liabilities and shareholders’ equity | 11,309,706 | 13,293,060 | 10,736,465 | 16,710,285 | (33,910,965 | ) | 18,138,551 |
As of December 31, 2020 | ||||||||||||||||||||||||
FinVolution Group | Company Subsidiaries | Primary Beneficiary of Consolidated Variable Interest Entities | Consolidated Variable Interest Entities and Their Subsidiaries | Eliminations | Consolidated Total | |||||||||||||||||||
(RMB in thousands) | ||||||||||||||||||||||||
Cash and cash equivalents | 28,435 | 941,996 | 1,194 | 1,660,549 | — | 2,632,174 | ||||||||||||||||||
Restricted cash | — | 307,428 | — | 3,176,799 | — | 3,484,227 | ||||||||||||||||||
Short-term investments | — | — | — | 1,970,958 | — | 1,970,958 | ||||||||||||||||||
Accounts receivable | — | 178,350 | — | 685,556 | — | 863,906 | ||||||||||||||||||
Quality assurance receivable | — | — | — | 1,121,554 | — | 1,121,554 | ||||||||||||||||||
Property, equipment and software, net | — | 26,866 | — | 67,010 | — | 93,876 | ||||||||||||||||||
Intangible assets | — | 63,760 | — | 35,187 | — | 98,947 | ||||||||||||||||||
Loans and receivables, net of credit loss allowance for loans receivables | — | 247,045 | — | 2,107,837 | — | 2,354,882 | ||||||||||||||||||
Investments | — | 62,434 | — | 888,081 | — | 950,515 | ||||||||||||||||||
Investment in subsidiaries and VIEs (3) | 7,949,999 | 5,076,480 | 7,534,510 | 48,147 | (20,609,136 | ) | — | |||||||||||||||||
Deferred tax assets | — | 6,247 | — | 149,511 | — | 155,758 | ||||||||||||||||||
Prepaid expenses and other assets | 1,247 | 42,967 | 2,932 | 1,002,863 | — | 1,050,009 | ||||||||||||||||||
Amounts due from Group companies (4) | 1,302,606 | 1,766,747 | 502,970 | — | (3,572,323 | ) | — | |||||||||||||||||
Right of use assets | — | 583 | — | 54,385 | — | 54,968 | ||||||||||||||||||
Goodwill (9) | — | 50,411 | — | — | — | 50,411 | ||||||||||||||||||
Total assets | 9,282,287 | 8,771,314 | 8,041,606 | 12,968,437 | (24,181,459 | ) | 14,882,185 | |||||||||||||||||
Payable to platform customers | — | — | — | 103,453 | — | 103,453 | ||||||||||||||||||
Deferred guarantee income | — | — | — | 1,259,396 | — | 1,259,396 | ||||||||||||||||||
Expected credit losses for quality assurance commitment | — | — | — | 2,390,501 | — | 2,390,501 | ||||||||||||||||||
Payroll and welfare payable | — | 79,040 | 8,994 | 132,955 | — | 220,989 | ||||||||||||||||||
Taxes payable | — | 100,846 | — | 53,552 | — | 154,398 | ||||||||||||||||||
Funds payable to investors of consolidated trusts | — | — | — | 1,661,841 | — | 1,661,841 | ||||||||||||||||||
Contract liability | 3,447 | — | — | — | — | 3,447 | ||||||||||||||||||
Amounts due to Group companies (4) | 882,963 | 485,461 | 51,958 | 2,151,941 | (3,572,323 | ) | — | |||||||||||||||||
Amounts due to related party | — | — | — | 1,984 | — | 1,984 | ||||||||||||||||||
Deferred tax liabilities | — | 36,331 | — | 67,217 | — | 103,548 | ||||||||||||||||||
Accrued expenses and other liabilities | 32,571 | 3,945 | 40 | 472,446 | — | 509,002 | ||||||||||||||||||
Leasing liabilities | — | 521 | — | 42,775 | — | 43,296 | ||||||||||||||||||
Total liabilities | 918,981 | 706,144 | 60,992 | 8,338,061 | (3,572,323 | ) | 6,451,855 | |||||||||||||||||
Total FinVolution Group shareholders’ equity (3) | 8,363,306 | 7,949,999 | 7,980,614 | 4,630,376 | (20,560,989 | ) | 8,363,306 | |||||||||||||||||
Non-controlling interest | — | 115,171 | — | — | (48,147 | ) | 67,024 | |||||||||||||||||
Total shareholders’ equity | 8,363,306 | 8,065,170 | 7,980,614 | 4,630,376 | (20,609,136 | ) | 8,430,330 | |||||||||||||||||
Total liabilities and shareholders’ equity | 9,282,287 | 8,771,314 | 8,041,606 | 12,968,437 | (24,181,459 | ) | 14,882,185 |
For the Year Ended December 31, 2021 | ||||||||||||||||||||||||
FinVolution Group | Company Subsidiaries | Primary Beneficiary of Consolidated Variable Interest Entities | Consolidated Variable Interest Entities and Their Subsidiaries | Eliminations | Consolidated Total | |||||||||||||||||||
(RMB in thousand) | ||||||||||||||||||||||||
Cash used in operating activities under service agreements for Intercompany (5) | — | (534,943 | ) | (45 | ) | (2,313,224 | ) | 2,848,212 | — | |||||||||||||||
Cash provided by operating activities under service agreements for Intercompany (5) | — | 2,290,805 | 22,419 | 534,988 | (2,848,212 | ) | — | |||||||||||||||||
Net cash provided by (used in) operating activities for Third-party | (45,587 | ) | (716,930 | ) | (19,691 | ) | 1,412,435 | — | 630,227 | |||||||||||||||
Net cash provided by (used in) operating activities | (45,587 | ) | 1,038,932 | 2,683 | (365,801 | ) | — | 630,227 | ||||||||||||||||
Capital contribution to Group companies (6) | — | — | — | (22,432 | ) | 22,432 | — | |||||||||||||||||
Collection of loans from Group companies (7) | 846,737 | 186,283 | 256,537 | 389,043 | (1,678,600 | ) | — | |||||||||||||||||
Cash paid as loans extended to Group companies (8) | (238,254 | ) | (2,296,392 | ) | (92,801 | ) | (2,328,235 | ) | 4,955,682 | — | ||||||||||||||
Other investing activities | — | 326,328 | — | 1,668,517 | — | 1,994,845 | ||||||||||||||||||
Net cash provided by (used in) investing activities | 608,483 | (1,783,781 | ) | 163,736 | (293,107 | ) | 3,299,514 | 1,994,845 | ||||||||||||||||
Capital contribution from Group companies (6) | — | 22,432 | — | — | (22,432 | ) | — | |||||||||||||||||
Repayment of loans to Group companies (7) | (839,719 | ) | (285,119 | ) | (389,043 | ) | (164,719 | ) | 1,678,600 | — | ||||||||||||||
Cash received as loans from Group companies (8) | 603,955 | 2,341,182 | 225,307 | 1,785,238 | (4,955,682 | ) | — | |||||||||||||||||
Other financing activities | (310,221 | ) | 967 | — | 69,454 | — | (239,800 | ) | ||||||||||||||||
Net cash (provided by) used in financing activities | (545,985 | ) | 2,079,462 | (163,736 | ) | 1,689,973 | (3,299,514 | ) | (239,800 | ) |
For the Year Ended December 31, 2020 | ||||||||||||||||||||||||
FinVolution Group | Company Subsidiaries | Primary Beneficiary of Consolidated Variable Interest Entities | Consolidated Variable Interest Entities and Their Subsidiaries | Eliminations | Consolidated Total | |||||||||||||||||||
(RMB in thousand) | ||||||||||||||||||||||||
Cash used in operating activities under service agreements for Intercompany (5) | — | (101,577 | ) | (36,047 | ) | (2,143,205 | ) | 2,280,829 | — | |||||||||||||||
Cash provided by operating activities under service agreements for Intercompany (5) | — | 2,088,211 | 54,994 | 137,624 | (2,280,829 | ) | — | |||||||||||||||||
Net cash provided by (used in) operating activities for Third-party | (6,282 | ) | (105,519 | ) | (96,939 | ) | 2,415,649 | — | 2,206,909 | |||||||||||||||
Net cash provided by (used in) operating activities | (6,282 | ) | 1,881,115 | (77,992 | ) | 410,068 | — | 2,206,909 | ||||||||||||||||
Collection of loans from Group companies (7) | 557,936 | — | — | — | (557,936 | ) | — | |||||||||||||||||
Other investing activities | — | (263,706 | ) | 36,545 | 1,268,657 | — | 1,041,496 | |||||||||||||||||
Net cash provided by (used in) investing activities | 557,936 | (263,706 | ) | 36,545 | 1,268,657 | (557,936 | ) | 1,041,496 | ||||||||||||||||
Repayment of loans to Group companies (7) | — | (557,936 | ) | — | — | 557,936 | — | |||||||||||||||||
Other financing activities | (636,936 | ) | (167,381 | ) | — | (2,286,962 | ) | — | (3,091,279 | ) | ||||||||||||||
Net cash provided by (used in) financing activities | (636,936 | ) | (725,317 | ) | — | (2,286,962 | ) | 557,936 | (3,091,279 | ) |
For the Year Ended December 31, 2019 | ||||||||||||||||||||||||
FinVolution Group | Company Subsidiaries | Primary Beneficiary of Consolidated Variable Interest Entities | Consolidated Variable Interest Entities and Their Subsidiaries | Eliminations | Consolidated Total | |||||||||||||||||||
(RMB in thousand) | ||||||||||||||||||||||||
Cash used in operating activities under service agreements for Intercompany (5) | — | (10,178 | ) | (16,047 | ) | (239,476 | ) | 265,701 | — | |||||||||||||||
Cash provided by operating activities under service agreements for Intercompany (5) | — | 156,745 | 82,731 | 26,225 | (265,701 | ) | — | |||||||||||||||||
Net cash provided by (used in) operating activities for Third-party | 8,474 | (401,085 | ) | (32,800 | ) | 209,889 | — | (215,522 | ) | |||||||||||||||
Net cash provided by (used in) operating activities | 8,474 | (254,518 | ) | 33,884 | (3,362 | ) | — | (215,522 | ) | |||||||||||||||
Collection of loans from Group companies (7) | 86,471 | — | — | — | (86,471 | ) | — | |||||||||||||||||
Cash paid as loans extended to Group companies (8) | — | (31,920 | ) | — | — | 31,920 | — | |||||||||||||||||
Other investing activities | — | 189,964 | (36,545 | ) | (981,638 | ) | — | (828,219 | ) | |||||||||||||||
Net cash provided by (used in) investing activities | 86,471 | 158,044 | (36,545 | ) | (981,638 | ) | (54,551 | ) | (828,219 | ) | ||||||||||||||
Repayment of loans to Group companies (7) | — | (86,471 | ) | — | — | 86,471 | — | |||||||||||||||||
Cash received as loans from Group companies (8) | — | — | — | 31,920 | (31,920 | ) | — | |||||||||||||||||
Other financing activities | (401,400 | ) | 150,001 | — | 2,000,911 | — | 1,749,512 | |||||||||||||||||
Net cash provided by (used in) financing activities | (401,400 | ) | 63,530 | — | 2,032,831 | 54,551 | 1,749,512 |
(i) Statutory Tax and StandardRates | ||||
Hypothetical pre-tax earnings | 100 | % | ||
Tax on earnings at statutory rate of 25% (iii) | (25 | )% | ||
Net earnings available for distribution | 75 | % | ||
Withholding tax at standard rate of 10% (iv) | (7.5 | )% | ||
Net distribution to Parent/Shareholders | 67.5 | % |
(ii) | Under the terms of contractual arrangements, our PRC subsidiaries may charge the consolidated variable interest entities for services provided to the consolidated variable interest entities. These fees shall be recognized as expenses of the consolidated variable interest entities, with a corresponding amount as service income by our PRC subsidiaries and eliminate in consolidation. For income tax purposes, our PRC subsidiaries and the consolidated variable interest entities file income tax returns on a separate company basis. The fees paid are recognized as a tax deduction by the consolidated variable interest entities and as income by our PRC subsidiaries and are tax neutral. |
(iii) | Certain of our subsidiaries and consolidated variable interest entities qualify for a preferential income tax rate in China. However, such rate is subject to qualification, is temporary in nature, and may not be available in a future period when distributions are paid. For purposes of this hypothetical example, the table above reflects a maximum tax scenario under which the full statutory rate would be effective. |
(iv) | The PRC Enterprise Income Tax Law imposes a withholding income tax of 10% on dividends distributed by a foreign invested enterprise to its immediate holding company outside of China. A lower withholding income tax rate of 5% is applied if the foreign invested enterprise’s immediate holding company is registered in Hong Kong or other jurisdictions that have a tax treaty arrangement with China, subject to a qualification review at the time of the distribution. For purposes of this hypothetical example, the table above assumes a maximum tax scenario under which the full withholding tax would be applied. |
(1) | It represents the intercompany services eliminated at the consolidation level, including technical development services and technical support services. |
(2) | It represents the elimination of the income from investment among FinVolution Group, equity subsidiaries, primary beneficiary of consolidated variable interest entities, consolidated variable interest entities and consolidated variable interest entities’ subsidiaries. |
(3) | It represents the elimination of the investment among FinVolution Group, equity subsidiaries, primary beneficiary of consolidated variable interest entities, consolidated variable interest entities and consolidated variable interest entities’ subsidiaries. |
(4) | It represents the elimination of intercompany balances among FinVolution Group, equity subsidiaries, primary beneficiary of consolidated variable interest entities, consolidated variable interest entities and consolidated variable interest entities’ subsidiaries. |
(5) | It represents the cash received and cash paid for intercompany services, including technical development services and technical support services. |
(6) | Capital contribution at intercompany level. |
(7) | Collection of loans from group companies, and repayment of loans to group companies. |
(8) | Cash paid as loans extended to group companies, and cash received as loans from group companies. |
(9) | In October 2017, one equity subsidiary and one consolidated variable interest entity’s subsidiary of FinVolution Group entered into a series of share purchase agreements with shareholders of HB micro lending company (“HB”). After the transactions, the Group was able to control HB. Goodwill and non-controlling interest were recognized in accordance with Accounting Standards Codification (“ASC”) 805 “Business Combinations.” In this consolidated variable interest entity’s consolidating schedule, HB’s financial information was recorded in the Equity Subsidiaries. The Group applied equity method in accounting for the investment of consolidated variable interest entity’s subsidiary in HB due to it can exercise significant influence but does not have control. Total assets for HB were RMB256,405 and RMB256,390 as of December 31, 2020 and 2021. Total liabilities for HB were RMB158,799 and RMB92,145 as of December 31, 2020 and 2021. |
For the Year Ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
(RMB in thousand) | ||||||||||||
Cash paid by the variable interest entities to our subsidiaries under service agreements | (239,476 | ) | (2,143,205 | ) | (2,313,224 | ) | ||||||
Cash received by the variable interest entities from our subsidiaries under service agreements | 26,225 | 137,624 | 534,988 | |||||||||
Collection of loans by the variable interest entities from our subsidiaries for intra-group investing | — | — | 389,043 | |||||||||
Cash paid as loans by the variable interest entities to our subsidiaries for intra-group investing | — | — | (2,328,235 | ) | ||||||||
Repayment of loans by the variable interest entities to our subsidiaries for intra-group financing | — | — | (164,719 | ) | ||||||||
Cash received as loans by the variable interest entities from our subsidiaries for intra-group financing | 31,920 | — | 1,785,238 |
A. | [Reserved] |
B. | Capitalization and Indebtedness |
C. | Reasons for the Offer and Use of Proceeds |
D. | Risk Factors |
ITEM 4. | INFORMATION ON THE COMPANY |
A. | History and Development of the Company |
B. | Business Overview |
C. | Organizational Structure |
(1) | Beijing Paipairongxin currently has four shareholders: Jun Zhang, our co-founder and director, Tiezheng Li, ourco-founder, vice chairman and president, Honghui Hu, ourco-founder and director, and Shaofeng Gu, ourco-founder, chairman and chief innovation officer, each holding 13.22%, 4.81%, 12.85%, and 69.12% of Beijing Paipairongxin’s equity interests, respectively. |
(2) | Shanghai Zihe currently has four shareholders: Jun Zhang our co-founder and director, Tiezheng Li, ourco-founder, vice chairman and president, Honghui Hu, ourco-founder and director, Shaofeng Gu, ourco-founder, chairman and chief innovation officer, each holding 25% of Shanghai Zihe’s equity interests, respectively. |
(3) | Shanghai Ledao currently has two shareholders: Lizhong Chen, a family relative of Tiezheng Li, and Yejun Jiang, a family relative of Honghui Hu, each holding 50% of Shanghai Ledao’s equity interests, respectively. |
109 |
D. | Property, Plants and Equipment |
ITEM 4A. | UNRESOLVED STAFF COMMENTS |
ITEM 5. | OPERATING AND FINANCIAL REVIEW AND PROSPECTS |
A. | Operating Results |
Delinquent for | Delinquent for | |||||||||||||||||||||||||||||||||||||||||||||||
15-29 days | 30-59 days | 60-89 days | 90-119 days | 120-149 days | 150-179 days | 15-29 days | 30-59 days | 60-89 days | 90-119 days | 120-149 days | 150-179 days | |||||||||||||||||||||||||||||||||||||
March 31, 2018 | 0.87 | % | 2.10 | % | 2.43 | % | 3.83 | % | 2.29 | % | 1.89 | % | ||||||||||||||||||||||||||||||||||||
June 30, 2018 | 0.83 | % | 1.21 | % | 1.05 | % | 0.98 | % | 1.60 | % | 2.03 | % | ||||||||||||||||||||||||||||||||||||
September 30, 2018 | 1.03 | % | 1.77 | % | 1.49 | % | 1.29 | % | 1.06 | % | 1.02 | % | ||||||||||||||||||||||||||||||||||||
December 31, 2018 | 0.92 | % | 1.63 | % | 1.41 | % | 1.45 | % | 1.44 | % | 1.34 | % | ||||||||||||||||||||||||||||||||||||
March 31, 2019 | 0.80 | % | 1.61 | % | 1.45 | % | 1.29 | % | 1.31 | % | 1.20 | % | 0.80 | % | 1.61 | % | 1.45 | % | 1.29 | % | 1.31 | % | 1.20 | % | ||||||||||||||||||||||||
June 30, 2019 | 0.86 | % | 1.42 | % | 1.37 | % | 1.19 | % | 1.26 | % | 1.21 | % | 0.86 | % | 1.42 | % | 1.37 | % | 1.19 | % | 1.26 | % | 1.21 | % | ||||||||||||||||||||||||
September 30, 2019 | 0.90 | % | 1.50 | % | 1.35 | % | 1.31 | % | 1.17 | % | 1.20 | % | 0.90 | % | 1.50 | % | 1.35 | % | 1.31 | % | 1.17 | % | 1.20 | % | ||||||||||||||||||||||||
December 31, 2019 | 1.34 | % | 2.40 | % | 1.86 | % | 1.76 | % | 1.62 | % | 1.53 | % | 1.34 | % | 2.40 | % | 1.86 | % | 1.76 | % | 1.62 | % | 1.53 | % | ||||||||||||||||||||||||
March 31, 2020 | 1.34 | % | 3.03 | % | 2.33 | % | 2.44 | % | 2.64 | % | 2.17 | % | 1.34 | % | 3.03 | % | 2.33 | % | 2.44 | % | 2.64 | % | 2.17 | % | ||||||||||||||||||||||||
June 30, 2020 | 0.71 | % | 1.36 | % | 1.70 | % | 2.00 | % | 2.75 | % | 2.38 | % | 0.71 | % | 1.36 | % | 1.70 | % | 2.00 | % | 2.75 | % | 2.38 | % | ||||||||||||||||||||||||
September 30, 2020 | 0.46 | % | 0.72 | % | 0.74 | % | 0.90 | % | 1.07 | % | 1.43 | % | 0.46 | % | 0.72 | % | 0.74 | % | 0.90 | % | 1.07 | % | 1.43 | % | ||||||||||||||||||||||||
December 31, 2020 | 0.35 | % | 0.55 | % | 0.48 | % | 0.52 | % | 0.49 | % | 0.55 | % | 0.35 | % | 0.55 | % | 0.48 | % | 0.52 | % | 0.49 | % | 0.55 | % | ||||||||||||||||||||||||
March 31, 2021 | 0.29 | % | 0.52 | % | 0.43 | % | 0.39 | % | 0.38 | % | 0.36 | % | ||||||||||||||||||||||||||||||||||||
June 30, 2021 | 0.30 | % | 0.45 | % | 0.39 | % | 0.32 | % | 0.36 | % | 0.33 | % | ||||||||||||||||||||||||||||||||||||
September 30, 2021 | 0.34 | % | 0.51 | % | 0.43 | % | 0.39 | % | 0.33 | % | 0.32 | % | ||||||||||||||||||||||||||||||||||||
December 31, 2021 | 0.39 | % | 0.67 | % | 0.55 | % | 0.49 | % | 0.41 | % | 0.36 | % |
(1) |
Our vintage delinquency rate for loans facilitated during 2019 was 6.68%, calculated as the volume weighted average of the quarterly vintage delinquency rates at the end of the 12th month following the inception of each loan in an applicable vintage. |
(2) | Our vintage delinquency rate for loans facilitated during 2020 was 2.53%, calculated as the volume weighted average of the quarterly vintage delinquency rates at the end of the 12th month following the inception of each loan in an applicable vintage. |
(3) | As of December 31, |
Month on Book | Month on Book | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vintage | 2nd | 3rd | 4th | 5th | 6th | 7th | 8th | 9th | 10th | 11th | 12th | 2 nd | 3 rd | 4 th | 5 th | 6 th | 7 th | 8 th | 9 th | 10 th | 11 th | 12 th | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018Q1 | 1.37 | 2.20 | 2.99 | 3.67 | 4.32 | 4.86 | 5.23 | 5.50 | 5.66 | 5.74 | 5.77 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018Q2 | 1.87 | 3.12 | 4.39 | 5.46 | 6.33 | 6.99 | 7.47 | 7.80 | 7.99 | 8.08 | 8.13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018Q3 | 1.45 | 2.51 | 3.53 | 4.39 | 5.09 | 5.59 | 5.97 | 6.28 | 6.50 | 6.64 | 6.72 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018Q4 | 1.43 | 2.49 | 3.55 | 4.42 | 5.18 | 5.76 | 6.20 | 6.54 | 6.81 | 7.01 | 7.16 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019Q1 | 1.34 | 2.38 | 3.45 | 4.36 | 5.13 | 5.75 | 6.22 | 6.65 | 6.99 | 7.25 | 7.43 | 1.34 | 2.38 | 3.45 | 4.36 | 5.13 | 5.75 | 6.22 | 6.65 | 6.99 | 7.25 | 7.43 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019Q2 | 1.33 | 2.34 | 3.31 | 4.18 | 5.05 | 5.82 | 6.44 | 6.98 | 7.34 | 7.50 | 7.52 | 1.33 | 2.34 | 3.31 | 4.18 | 5.05 | 5.82 | 6.44 | 6.98 | 7.34 | 7.50 | 7.52 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019Q3 | 1.02 | 2.16 | 3.42 | 4.55 | 5.64 | 6.45 | 6.92 | 7.13 | 7.20 | 7.20 | 7.15 | 1.02 | 2.16 | 3.42 | 4.55 | 5.64 | 6.45 | 6.92 | 7.13 | 7.20 | 7.20 | 7.15 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019Q4 | 0.83 | 2.07 | 3.37 | 4.45 | 5.12 | 5.50 | 5.68 | 5.79 | 5.83 | 5.80 | 5.73 | 0.83 | 2.07 | 3.37 | 4.45 | 5.12 | 5.50 | 5.68 | 5.79 | 5.83 | 5.80 | 5.73 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020Q1 | 0.81 | 1.73 | 2.46 | 2.97 | 3.35 | 3.59 | 3.71 | 3.78 | — | — | — | 0.81 | 1.73 | 2.46 | 2.97 | 3.35 | 3.59 | 3.71 | 3.78 | 3.82 | 3.82 | 3.80 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020Q2 | 0.44 | 0.92 | 1.34 | 1.65 | 1.90 | — | — | — | — | — | — | 0.44 | 0.92 | 1.34 | 1.65 | 1.90 | 2.08 | 2.21 | 2.30 | 2.36 | 2.38 | 2.38 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020Q3 | 0.41 | 0.81 | — | — | — | — | — | — | — | — | — | 0.41 | 0.81 | 1.16 | 1.47 | 1.72 | 1.89 | 2.01 | 2.10 | 2.16 | 2.20 | 2.21 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020Q4 | 0.36 | 0.70 | 1.01 | 1.28 | 1.50 | 1.68 | 1.82 | 1.93 | 2.02 | 2.08 | 2.11 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021Q1 | 0.27 | 0.55 | 0.84 | 1.10 | 1.34 | 1.56 | 1.74 | 1.91 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021Q2 | 0.29 | 0.57 | 0.87 | 1.17 | 1.46 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021Q3 | 0.29 | 0.63 | — | — | — | — | — | — | — | — | — |
For the Year Ended December 31, | For the Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | 2019 | 2020 (1) | 2019 | 2020 (1) | 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||
RMB | % | RMB | % | RMB | US$ | % | RMB | % | RMB | % | RMB | US$ | % | |||||||||||||||||||||||||||||||||||||||||||
(in thousands, except for percentages) | (in thousands, except for percentages) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan facilitation service fees | 2,919,234 | 64.2 | 3,310,875 | 55.5 | 1,908,851 | 292,544 | 25.2 | 3,310,875 | 55.5 | 1,908,851 | 25.2 | 3,794,182 | 595,390 | 40.1 | ||||||||||||||||||||||||||||||||||||||||||
Post-facilitation service fees | 922,797 | 20.3 | 1,200,373 | 20.1 | 672,981 | 103,139 | 8.9 | 1,200,373 | 20.1 | 672,981 | 8.9 | 1,309,565 | 205,499 | 13.8 | ||||||||||||||||||||||||||||||||||||||||||
Guarantee income | — | — | — | — | 3,386,032 | 518,932 | 44.8 | — | — | 3,386,032 | 44.8 | 2,593,512 | 406,979 | 27.4 | ||||||||||||||||||||||||||||||||||||||||||
Net interest income (2) | 256,108 | 5.6 | 1,106,669 | 18.6 | 1,113,337 | 170,626 | 14.7 | 1,106,669 | 18.6 | 1,113,337 | 14.7 | 1,216,170 | 190,844 | 12.8 | ||||||||||||||||||||||||||||||||||||||||||
Other revenue | 376,915 | 8.3 | 344,840 | 5.8 | 481,886 | 73,852 | 6.4 | 344,840 | 5.8 | 481,886 | 6.4 | 556,699 | 87,358 | 5.9 | ||||||||||||||||||||||||||||||||||||||||||
Changes in expected discretionary payment to investors protected by investor reserve funds | 68,619 | 1.5 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Net revenues | 4,543,673 | 100.0 | 5,962,757 | 100.0 | 7,563,087 | 1,159,093 | 100.0 | 5,962,757 | 100.0 | 7,563,087 | 100.0 | 9,470,128 | 1,486,070 | 100.0 | ||||||||||||||||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Origination and servicing expenses | (875,905 | ) | (19.3 | ) | (1,164,716 | ) | (19.5 | ) | (1,315,496 | ) | (201,609 | ) | (17.4 | ) | ||||||||||||||||||||||||||||||||||||||||||
Origination and servicing expenses-related party | (109,666 | ) | (2.4 | ) | (43,494 | ) | (0.7 | ) | (10,104 | ) | (1,549 | ) | (0.1 | ) | ||||||||||||||||||||||||||||||||||||||||||
Origination, servicing expenses and other cost of revenue | (1,164,716 | ) | (19.5 | ) | (1,315,496 | ) | (17.4 | ) | (1,834,453 | ) | (287,866 | ) | (19.4 | ) | ||||||||||||||||||||||||||||||||||||||||||
Origination, servicing expenses and other cost of revenue | (43,494 | ) | (0.7 | ) | (10,104 | ) | (0.1 | ) | (7,503 | ) | (1,177 | ) | (0.1 | ) | ||||||||||||||||||||||||||||||||||||||||||
Sales and marketing expenses | (710,754 | ) | (15.6 | ) | (720,333 | ) | (12.1 | ) | (482,859 | ) | (74,001 | ) | (6.4 | ) | (720,333 | ) | (12.1 | ) | (482,859 | ) | (6.4 | ) | (1,584,233 | ) | (248,601 | ) | (16.7 | ) | ||||||||||||||||||||||||||||
General and administrative expenses | (383,388 | ) | (8.4 | ) | (435,816 | ) | (7.3 | ) | (461,116 | ) | (70,669 | ) | (6.1 | ) | (435,816 | ) | (7.3 | ) | (461,116 | ) | (6.1 | ) | (518,245 | ) | (81,324 | ) | (5.5 | ) | ||||||||||||||||||||||||||||
Research and development expenses | (317,965 | ) | (7.0 | ) | (390,585 | ) | (6.6 | ) | (370,175 | ) | (56,732 | ) | (4.9 | ) | (390,585 | ) | (6.6 | ) | (370,175 | ) | (4.9 | ) | (434,850 | ) | (68,237 | ) | (4.6 | ) | ||||||||||||||||||||||||||||
Credit losses for quality assurance commitment | — | — | — | — | (2,007,968 | ) | (307,735 | ) | (26.5 | ) | — | — | (2,007,968 | ) | (26.5 | ) | (1,963,609 | ) | (308,133 | ) | (20.7 | ) | ||||||||||||||||||||||||||||||||||
Provision for loans receivable (2) | (192,749 | ) | (4.2 | ) | (299,504 | ) | (5.0 | ) | (463,175 | ) | (70,985 | ) | (6.1 | ) | (299,504 | ) | (5.0 | ) | (463,175 | ) | (6.1 | ) | (374,243 | ) | (58,727 | ) | (4.0 | ) | ||||||||||||||||||||||||||||
Provision for accounts receivable and other receivables | (106,652 | ) | (2.3 | ) | (261,882 | ) | (4.4 | ) | (144,661 | ) | (22,170 | ) | (1.9 | ) | (261,882 | ) | (4.4 | ) | (144,661 | ) | (1.9 | ) | (139,226 | ) | (21,848 | ) | (1.5 | ) | ||||||||||||||||||||||||||||
Total operating expenses | (2,697,079 | ) | (59.4 | ) | (3,316,330 | ) | (55.6 | ) | (5,255,554 | ) | (805,450 | ) | (69.5 | ) | (3,316,330 | ) | (55.6 | ) | (5,255,554 | ) | (69.5 | ) | (6,856,362 | ) | (1,075,913 | ) | (72.4 | ) | ||||||||||||||||||||||||||||
Other income (3) | 774,063 | 17.0 | 210,053 | 3.5 | 116,469 | 17,850 | 1.5 | 210,053 | 3.5 | 116,469 | 1.5 | 122,368 | 19,202 | 1.3 | ||||||||||||||||||||||||||||||||||||||||||
Profit before income tax expenses | 2,620,657 | 57.7 | 2,856,480 | 47.9 | 2,424,002 | 371,493 | 32.1 | 2,856,480 | 47.9 | 2,424,002 | 32.1 | 2,736,134 | 429,359 | 29.0 | ||||||||||||||||||||||||||||||||||||||||||
Income tax expenses | (151,206 | ) | (3.3 | ) | (481,962 | ) | (8.1 | ) | (455,421 | ) | (69,796 | ) | (6.0 | ) | (481,962 | ) | (8.1 | ) | (455,421 | ) | (6.0 | ) | (240,818 | ) | (37,790 | ) | (2.5 | ) | ||||||||||||||||||||||||||||
Net profit | 2,469,451 | 54.3 | 2,374,518 | 39.8 | 1,968,581 | 301,697 | 26.0 | 2,374,518 | 39.8 | 1,968,581 | 26.0 | 2,495,316 | 391,569 | 26.3 | ||||||||||||||||||||||||||||||||||||||||||
(1) | On January 1, 2020, we adopted the ASC Topic 326, Measurement of Credit Losses on Financial Instruments or “CECL”, using a modified retrospective method with prior periods continue to be reported in accordance with our historic accounting method. Upon adoption of ASC Topic 326, expected credit losses related to guarantee contracts be recorded separately from and in addition to the stand ready guarantee liability accounted for in accordance with ASC Topic 460. The stand ready component of the guarantee contract is recognized systematically as guarantee income when we’re released from the underlying risk. |
(2) | We historically presented interest income, interest expenses and provision for loans receivable within the financial statement line item “net interest income (expense) and loan provision losses.” In 2019, we reclassified provision for loans receivable amounting RMB299.5 million from “net interest income (expense) and loan provision losses” in operating revenue to “provision for loans receivable” in operating expenses. |
(3) | The following table sets forth the breakdown of our other income: |
For the Year Ended December 31, | For the Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | 2019 | 2020 | 2019 | 2020 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||
RMB | % | RMB | % | RMB | US$ | % | RMB | % | RMB | % | RMB | US$ | % | |||||||||||||||||||||||||||||||||||||||||||
(in thousands, except for percentages) | (in thousands, except for percentages) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain from quality assurance | 510,894 | 11.2 | 98,405 | 1.6 | — | — | — | 98,405 | 1.6 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Realized gain/(loss) from financial guarantee derivatives | (157,244 | ) | (3.5 | ) | 31,444 | 0.5 | — | — | — | 31,444 | 0.5 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Fair value change of financial guarantee derivatives | 272,057 | 6.0 | (56,287 | ) | (0.9 | ) | — | — | — | (56,287 | ) | (0.9 | ) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Other income, net | 148,356 | 3.3 | 136,491 | 2.3 | 116,469 | 17,850 | 1.5 | 136,491 | 2.3 | 116,469 | 1.5 | 122,368 | 19,202 | 1.3 | ||||||||||||||||||||||||||||||||||||||||||
Total other income | 774,063 | 17.0 | 210,053 | 3.5 | 116,469 | 17,850 | 1.5 | 210,053 | 3.5 | 116,469 | 1.5 | 122,368 | 19,202 | 1.3 | ||||||||||||||||||||||||||||||||||||||||||
As of December 31, | ||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
(in thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | 1,616,164 | 2,324,542 | 2,632,174 | 403,398 | ||||||||||||
Restricted cash | 3,677,557 | 3,686,203 | 3,484,227 | 533,981 | ||||||||||||
Short-term investments | 1,694,660 | 114,560 | 1,970,958 | 302,063 | ||||||||||||
Quality assurance receivable | 2,064,366 | 3,649,642 | 1,121,554 | 171,886 | ||||||||||||
Investments | 167,501 | 952,833 | 950,515 | 145,673 | ||||||||||||
Contract assets | 112,103 | 20,555 | — | — | ||||||||||||
Financial guarantee derivative assets | 56,287 | — | — | — | ||||||||||||
Account receivable, net of credit loss allowance for accounts receivable | 812,042 | 882,305 | 863,906 | 132,399 | ||||||||||||
Total assets | 13,142,467 | 18,304,456 | 14,882,185 | 2,280,795 | ||||||||||||
Liabilities and shareholders’ equity | ||||||||||||||||
Liabilities: | ||||||||||||||||
Payable to platform customers | 905,034 | 684,630 | 103,453 | 15,855 | ||||||||||||
Quality assurance payable | 3,819,379 | 4,776,153 | — | — | ||||||||||||
Deferred guarantee income | — | — | 1,259,396 | 193,011 | ||||||||||||
Expected credit losses for quality assurance commitment | — | — | 2,390,501 | 366,360 | ||||||||||||
Contract liabilities | 165,469 | 55,728 | 3,447 | 528 | ||||||||||||
Funds payable to investors of consolidated trusts | 1,505,909 | 3,660,483 | 1,661,841 | 254,688 | ||||||||||||
Total liabilities | 7,156,729 | 10,292,976 | 6,451,855 | 988,790 | ||||||||||||
Total shareholders’ equity | 5,985,738 | 8,011,480 | 8,430,330 | 1,292,005 | ||||||||||||
As of December 31, | ||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | 2,324,542 | 2,632,174 | 4,418,127 | 693,301 | ||||||||||||
Restricted cash | 3,686,203 | 3,484,227 | 4,073,414 | 639,208 | ||||||||||||
Short-term investments | 114,560 | 1,970,958 | 1,204,901 | 189,075 | ||||||||||||
Quality assurance receivable, net of credit loss allowance for quality assurance receivable | 3,649,642 | 1,121,554 | 931,798 | 146,219 | ||||||||||||
Investments | 952,833 | 950,515 | 971,117 | 152,389 | ||||||||||||
Contract assets | 20,555 | — | — | — |
As of December 31, | ||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Account receivable and contract assets, net of credit loss allowance for accounts receivable and contract assets | 902,860 | 863,906 | 1,890,846 | 296,715 | ||||||||||||
Total assets | 18,304,456 | 14,882,185 | 18,138,551 | 2,846,335 | ||||||||||||
Liabilities and shareholders’ equity | ||||||||||||||||
Liabilities: | ||||||||||||||||
Payable to platform customers | 684,630 | 103,453 | 81,150 | 12,734 | ||||||||||||
Quality assurance payable | 4,776,153 | — | — | — | ||||||||||||
Deferred guarantee income | — | 1,259,396 | 1,089,503 | 170,967 | ||||||||||||
Expected credit losses for quality assurance commitment | — | 2,390,501 | 3,188,561 | 500,355 | ||||||||||||
Funds payable to investors of consolidated trusts | 3,660,483 | 1,661,841 | 1,795,640 | 281,775 | ||||||||||||
Total liabilities | 10,292,976 | 6,451,855 | 7,428,941 | 1,165,762 | ||||||||||||
Total shareholders’ equity | 8,011,480 | 8,430,330 | 10,709,610 | 1,680,573 | ||||||||||||
As of December 31, | As of December 31, | |||||||||||||||||||||||||||||||
2018 | 2019 | 2020 | 2019 | 2020 | 2021 | |||||||||||||||||||||||||||
RMB | RMB | RMB | US$ | RMB | RMB | RMB | US$ | |||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||
Restricted cash: | ||||||||||||||||||||||||||||||||
Quality assurance commitment and quality assurance fund | 2,414,449 | 1,473,749 | 1,671,785 | 256,212 | 1,473,749 | 1,671,785 | 2,042,084 | 320,448 | ||||||||||||||||||||||||
Investor reserve funds | 17,971 | 41,958 | — | — | 41,958 | — | — | — | ||||||||||||||||||||||||
Cash received from investors and borrowers | 905,034 | 684,630 | 103,453 | 15,854 | 684,630 | 103,453 | 81,150 | 12,734 | ||||||||||||||||||||||||
Cash received via consolidated trust that has not yet been distributed | 303,667 | 799,646 | 482,285 | 73,913 | 799,646 | 482,285 | 341,397 | 53,573 | ||||||||||||||||||||||||
Collateral for short-term borrowings | 26,000 | 251,853 | — | — | 251,853 | — | — | — | ||||||||||||||||||||||||
Escrow accounts | 10,436 | 44,367 | 701,673 | 107,536 | 44,367 | 701,673 | 1,281,869 | 201,153 | ||||||||||||||||||||||||
Designated accounts for security deposits | — | 390,000 | — | — | 390,000 | — | — | — | ||||||||||||||||||||||||
Cash received from borrower to be distributed to funding partners | — | — | 225,031 | 34,488 | — | 225,031 | 326,914 | 51,300 | ||||||||||||||||||||||||
Cash held in capital verification account | — | — | 300,000 | 45,978 | — | 300,000 | — | — | ||||||||||||||||||||||||
Total restricted cash | 3,677,557 | 3,686,203 | 3,484,227 | 533,981 | 3,686,203 | 3,484,227 | 4,073,414 | 639,208 | ||||||||||||||||||||||||
B. | Liquidity and Capital Resources |
For the Year Ended December 31, | ||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
(in thousands) | ||||||||||||||||
Summary Consolidated Cash Flows Data: | ||||||||||||||||
Net cash provided by/(used in) operating activities | (215,522 | ) | 2,206,909 | 630,227 | 98,896 | |||||||||||
Net cash provided by/(used in) investing activities | (828,219 | ) | 1,041,496 | 1,994,845 | 313,035 | |||||||||||
Net cash provided by/(used in) financing activities | 1,749,512 | (3,091,279 | ) | (239,800 | ) | (37,631 | ) | |||||||||
Net increase in cash, cash equivalents and restricted cash | 717,024 | 105,656 | 2,375,140 | 372,712 | ||||||||||||
Cash, cash equivalents and restricted cash at beginning of year | 5,293,721 | 6,010,745 | 6,116,401 | 959,797 | ||||||||||||
Cash, cash equivalents and restricted cash at end of year | 6,010,745 | 6,116,401 | 8,491,541 | 1,332,509 |
C. | Research and Development, Patents, and Licenses, etc. |
D. | Trend Information |
E. | Critical Accounting Estimates |
B. | Liquidity and Capital Resources |
For the Year Ended December 31, | ||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
(in thousands) | ||||||||||||||||
Summary Consolidated Cash Flows Data: | ||||||||||||||||
Net cash provided by/(used in) operating activities | (215,522 | ) | 2,206,909 | 630,227 | 98,896 | |||||||||||
Net cash provided by/(used in) investing activities | (828,219 | ) | 1,041,496 | 1,994,845 | 313,035 | |||||||||||
Net cash provided by/(used in) financing activities | 1,749,512 | (3,091,279 | ) | (239,800 | ) | (37,631 | ) | |||||||||
Net increase in cash, cash equivalents and restricted cash | 717,024 | 105,656 | 2,375,140 | 372,712 | ||||||||||||
Cash, cash equivalents and restricted cash at beginning of year | 5,293,721 | 6,010,745 | 6,116,401 | 959,797 | ||||||||||||
Cash, cash equivalents and restricted cash at end of year | 6,010,745 | 6,116,401 | 8,491,541 | 1,332,509 |
C. | Research and Development, Patents, and Licenses, etc. |
D. | Trend Information |
E. | Critical Accounting Estimates |
B. | Liquidity and Capital Resources |
For the Year Ended December 31, | For the Year Ended December 31, | |||||||||||||||||||||||||||||||
2018 | 2019 | 2020 | 2019 | 2020 | 2021 | |||||||||||||||||||||||||||
RMB | RMB | RMB | US$ | RMB | RMB | RMB | US$ | |||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||
Summary Consolidated Cash Flows Data: | ||||||||||||||||||||||||||||||||
Net cash provided by/(used in) operating activities | 1,884,956 | (215,522 | ) | 2,206,909 | 338,224 | (215,522 | ) | 2,206,909 | 630,227 | 98,896 | ||||||||||||||||||||||
Net cash (used in)/provided by investing activities | (1,447,013 | ) | (828,219 | ) | 1,041,496 | 159,616 | ||||||||||||||||||||||||||
Net cash provided by/(used in) investing activities | (828,219 | ) | 1,041,496 | 1,994,845 | 313,035 | |||||||||||||||||||||||||||
Net cash provided by/(used in) financing activities | 530,097 | 1,749,512 | (3,091,279 | ) | (473,759 | ) | 1,749,512 | (3,091,279 | ) | (239,800 | ) | (37,631 | ) | |||||||||||||||||||
Net increase in cash, cash equivalents and restricted cash | 1,010,017 | 717,024 | 105,656 | 16,192 | 717,024 | 105,656 | 2,375,140 | 372,712 | ||||||||||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of year | 4,283,704 | 5,293,721 | 6,010,745 | 921,187 | 5,293,721 | 6,010,745 | 6,116,401 | 959,797 | ||||||||||||||||||||||||
Cash, cash equivalents and restricted cash at end of year | 5,293,721 | 6,010,745 | 6,116,401 | 937,379 | 6,010,745 | 6,116,401 | 8,491,541 | 1,332,509 |
C. | Research and Development, Patents, and Licenses, etc. |
D. | Trend Information |
E. |
Total | 2021 | 2022 | 2023 | 2024 | After 2024 | |||||||||||||||||||||||||||||||||||||||||||
RMB | US$ | RMB | US$ | RMB | US$ | RMB | US$ | RMB | US$ | RMB | US$ | |||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||
Operating lease obligations | 45,282 | 6,940 | 34,203 | 5,242 | 11,079 | 1,698 | — | — | — | — | — | — |
Allowance for Credit Losses |
ITEM 6. | DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES |
A. | Directors and Senior Management |
Directors and Executive Officers | Age | Position/Title | ||||
Shaofeng Gu | 43 | Chairman of the Board, Chief Innovation Officer | ||||
Tiezheng Li | 37 | Vice Chairman of the Board, President | ||||
Jun Zhang | 44 | Director |
Honghui Hu | 44 | Director | ||||
Simon Tak Leung Ho | 48 | Director | ||||
Jimmy Y. Lai | 65 | Independent Director | ||||
Bing Xiang | 59 | Independent Director | ||||
Feng Zhang | 46 | Chief Executive Officer | ||||
Jiayuan Xu | 41 | Chief Financial Officer | ||||
Yuxiang Wang | 42 | Chief Technology Officer and Chief Product Officer |
B. | Compensation |
Name | Ordinary Shares Underlying Options Awarded | Exercise Price (US$/Share) | Date of Grant | Date of Expiration | ||||
Shaofeng Gu | * | 0.126 | March 21, 2016 | March 20, 2021 | ||||
Tiezheng Li | * | 0.007 | January 29, 2014 | January 28, 2019 | ||||
* | 0.030 | April 1, 2015 | March 31, 2020 | |||||
* | 0.126 | March 21, 2016 | March 20, 2021 | |||||
* | February 1, 2018 | January 31, 2023 | ||||||
* | 0.654 | January 28, 2019 | January 27, 2024 | |||||
Jun Zhang | * | 0.007 | January 29, 2014 | January 28, 2019 | ||||
* | 0.030 | April 1, 2015 | March 31, 2020 | |||||
* | 0.126 | March 21, 2016 | March 20, 2021 | |||||
* | 0.320 | February 1, 2017 | January 31, 2022 | |||||
* | February 1, 2018 | January 31, 2023 | ||||||
Honghui Hu | * | 0.007 | January 29, 2014 | January 28, 2019 | ||||
* | 0.126 | March 21, 2016 | March 20, 2021 | |||||
Simon Tak Leung Ho | * | 0.126 | September 7, 2016 | September 6, 2022 | ||||
* | February 1, 2018 | January 31, 2023 | ||||||
* | 0.330 | April 6, 2020 | April 6, 2022 | |||||
Feng Zhang | * | 0.028 | May 24, 2015 | May 23, 2020 | ||||
* | 0.126 | March 21, 2016 | March 20, 2021 | |||||
* | 0.320 | February 1, 2017 | January 31, 2022 | |||||
Jiayuan Xu | * | 0.030 | May 5, 2015 | May 4, 2020 | ||||
* | 0.126 | March 21, 2016 | March 20, 2021 | |||||
* | 0.320 | February 1, 2017 | January 31, 2022 | |||||
* | 0.330 | April 6, 2020 | April 5, 2025 | |||||
Yuxiang Wang | * | 0.030 | June 15, 2015 | June 14, 2020 | ||||
* | 0.126 | March 21, 2016 | March 20, 2021 | |||||
* | 0.320 | February 1, 2017 | January 31, 2022 | |||||
Other grantees as a group | From 0.0001 to | From July 1, 2012 to April 6, 2020 | From June 30, 2018 to April 5, 2025 |
* | Less than 1% of our total outstanding shares. |
Name | Class A Ordinary Shares Underlying Restricted Share Units Awarded | Date of Grant | Date of Expiration | |||
Tiezheng Li | * | October 6, 2020 | October 5, 2025 | |||
Bing Xiang | * | May 24, 2021 | May 23, 2026 | |||
Jimmy Y. Lai | * | May 24, 2021 | May 23, 2026 | |||
Feng Zhang | * | February 1, 2018 | January 31, 2023 | |||
* | January 28, 2019 | January 27, 2024 | ||||
* | April 6, 2020 | April 5, 2025 | ||||
* | October 6, 2020 | October 5, 2025 | ||||
Jiayuan Xu | * | February 1, 2018 | January 31, 2023 | |||
* | January 28, 2019 | January 27, 2024 | ||||
* | April 6, 2020 | April 5, 2025 | ||||
* | October 6, 2020 | October 5, 2025 |
Underlying Restricted Share Units Awarded | ||||||
Yuxiang Wang | * | February 1, 2018 | January 31, 2023 | |||
* | January 28, 2019 | January 27, 2024 | ||||
* | April 6, 2020 | April 5, 2025 | ||||
* | October 6, 2020 | October 5, 2025 | ||||
Other grantees as a group | From February 1, 2018 to | From January 31, 2023 to |
* | Less than 1% of our total outstanding shares. |
C. | Board Practices |
D. | Employees |
As of December 31, 2020 | As of December 31, 2021 | |||||||||||||||
Number of employees | % of total | Number of employees | % of total | |||||||||||||
Functions: | ||||||||||||||||
Operations | 847 | 27.7 | % | 831 | 19.5 | % | ||||||||||
Risk Management | 736 | 24.0 | % | 862 | 20.2 | % | ||||||||||
Research and Development | 674 | 22.0 | % | 663 | 15.6 | % | ||||||||||
Sales and Marketing | 568 | 18.5 | % | 1,593 | 37.4 | % | ||||||||||
General and Administration | 239 | 7.8 | % | 310 | 7.3 | % | ||||||||||
Total number of employees | 3,064 | 100.0 | % | 4,259 | 100.0 | % | ||||||||||
E. | Share Ownership |
Ordinary Shares Beneficially Owned as of March 31, 2021 | Ordinary Shares Beneficially Owned as of March 31, 2022 | |||||||||||||||||||||||||||||||
Class A ordinary shares | Class B ordinary shares | Percentage of total ordinary shares† | Percentage of aggregate voting power†† | Class A ordinary shares | Class B ordinary shares | Percentage of total ordinary shares† | Percentage of aggregate voting power † † | |||||||||||||||||||||||||
Directors and Executive Officers**: | ||||||||||||||||||||||||||||||||
Directors and Executive Officers** | ||||||||||||||||||||||||||||||||
Shaofeng Gu (1) | 22,109,660 | 394,818,900 | 29.4 | % | 63.6 | % | 24,400,480 | 394,818,900 | 29.4 | % | 63.7 | % | ||||||||||||||||||||
Tiezheng Li (2) | 9,165,650 | 27,987,900 | 2.6 | % | 4.6 | % | 7,865,650 | 27,987,900 | 2.5 | % | 4.6 | % | ||||||||||||||||||||
Jun Zhang (3) | 11,866,000 | 77,009,800 | 6.3 | % | 12.5 | % | 10,350,000 | 75,209,800 | 6.0 | % | 12.2 | % | ||||||||||||||||||||
Honghui Hu (4) | 8,600,000 | 54,883,400 | 4.5 | % | 8.9 | % | 8,225,000 | 54,883,400 | 4.4 | % | 8.9 | % | ||||||||||||||||||||
Simon Tak Leung Ho | * | — | * | * | * | — | * | * | ||||||||||||||||||||||||
Jimmy Y. Lai | — | — | — | — | * | — | * | * | ||||||||||||||||||||||||
Bing Xiang | — | — | — | — | * | — | * | * | ||||||||||||||||||||||||
Feng Zhang | * | — | * | * | * | — | * | * | ||||||||||||||||||||||||
Jiayuan Xu | * | — | * | * | * | — | * | * | ||||||||||||||||||||||||
Yuxiang Wang | * | — | * | * | * | — | * | * | ||||||||||||||||||||||||
All directors and executive officers as a group | 76,451,385 | 554,700,000 | 44.4 | % | 89.6 | % | 75,857,845 | 552,900,000 | 44.0 | % | 89.5 | % | ||||||||||||||||||||
Principal and Selling Shareholders: | ||||||||||||||||||||||||||||||||
Principal Shareholders: | ||||||||||||||||||||||||||||||||
PPD Investment Limited (5) | 22,109,660 | 394,818,900 | 29.4 | % | 63.6 | % | 24,400,480 | 394,818,900 | 29.4 | % | 63.7 | % | ||||||||||||||||||||
Seahawk China Dynamic Fund (6) | 109,287,130 | — | 7.7 | % | 0.9 | % | 108,340,885 | — | 7.6 | % | 0.9 | % | ||||||||||||||||||||
Metallica Holding Limited (7) | 8,550,000 | 77,009,800 | 6.0 | % | 12.4 | % | 10,350,000 | 75,209,800 | 6.0 | % | 12.2 | % | ||||||||||||||||||||
SIG China Investments Master Fund III, LLLP (8) | 85,691,995 | — | 6.0 | % | 0.7 | % | ||||||||||||||||||||||||||
Emma & Oliver Holding Limited (9) | 8,600,000 | 54,883,400 | 4.5 | % | 8.9 | % |
* | Less than 1% of our total outstanding shares. |
** | Except for Jimmy Y. Lai, and Bing Xiang, the business address for our directors and executive officers is Building G1, No. 999 Dangui Road, Pudong New District, Shanghai 201203, People’s Republic of China. The business address of Jimmy Y. Lai is 4521 Turnberry Ct. Plano, Texas, 75024, USA. The business address of Bing Xiang is Floor 20th, Tower East II, Dongfang Square, Dongcheng District, Beijing, China. |
† | For each person and group included in this column, percentage ownership is calculated by dividing the number of shares beneficially owned by such person or group by the sum of the total number of shares outstanding and the number of shares such person or group has the right to acquire upon exercise of option, warrant or other right within 60 days after March 31, |
†† | For each person and group included in this column, percentage of voting power is calculated by dividing the voting power beneficially owned by such person or group by the voting power of all of our Class A and Class B ordinary shares as a single class. Each holder of Class A ordinary shares is entitled to one vote per share and each holder of our Class B ordinary shares is entitled to twenty votes per share on all matters submitted to them for vote. Our Class B ordinary shares are convertible at any time by the holder thereof into Class A ordinary shares on a one-for-one |
(1) | Represents (i) 394,818,900 Class B ordinary shares directly held by PPD Investment Limited, a company incorporated in the British Virgin Islands, and (ii) |
(2) | Represents (i) 27,987,900 Class B ordinary shares directly held by Happyariel Holding Limited, a company incorporated in the British Virgin Islands, (ii) |
(3) | Represents (i) |
(4) | Represents (i) 54,883,400 Class B ordinary shares directly held by Emma & Oliver Holding Limited, a company incorporated in the British Virgin Islands, and (ii) |
(5) | Represents (i) 394,818,900 Class B ordinary shares directly held by PPD Investment Limited, a company incorporated in the British Virgin Islands, and (ii) |
(6) | Represents KY1-9009, Cayman Islands. The business address of Gold Dragon Worldwide Asset Management Limited is Unit4004-05, 40/F, COSCO Tower, 183 Queen’s Road, Central, Hong Kong. |
(7) | Represents (i) |
ITEM 7. | MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS |
A. | Major Shareholders |
B. | Related Party Transactions |
C. | Interests of Experts and Counsel |
ITEM 8. | FINANCIAL INFORMATION |
A. | Consolidated Statements and Other Financial Information |
B. | Significant Changes |
ITEM 9. | THE OFFER AND LISTING |
A. | Offer and Listing Details |
B. | Plan and Distribution |
C. | Markets |
D. | Selling Shareholders |
E. | Dilution |
F. | Expenses of the Issue |
ITEM 10. | ADDITIONAL INFORMATION |
A. | Share Capital |
B. | Memorandum and Articles of Association |
C. | Material Contracts |
D. | Exchange Controls |
E. | Taxation |
F. | Dividends and Paying Agents |
G. | Statement by Experts |
H. | Documents on Display |
I. | Subsidiary Information |
ITEM 11. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 12. | DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES |
A. | Debt Securities |
B. | Warrants and Rights |
C. | Other Securities |
D. | American Depositary Shares |
Service | Fees | |||
• | Issuance of ADSs (e.g., an issuance of ADS upon a deposit of Class A ordinary shares, upon a change in the ADS(s)-to-Class | Up to U.S. 5¢ per ADS issued | ||
• | Cancelation of ADSs (e.g., a cancelation of ADSs for delivery of deposited property, upon a change in the ADS(s)-to-Class | Up to U.S. 5¢ per ADS canceled | ||
• | Distribution of cash dividends or other cash distributions (e.g., upon a sale of rights and other entitlements) | Up to U.S. 5¢ per ADS held | ||
• | Distribution of ADSs pursuant to (i) stock dividends or other free stock distributions, or (ii) exercise of rights to purchase additional ADSs | Up to U.S. 5¢ per ADS held | ||
• | Distribution of securities other than ADSs or rights to purchase additional ADSs (e.g., upon a spin-off) | Up to U.S. 5¢ per ADS held | ||
• | ADS Services | Up to U.S. 5¢ per ADS held on the applicable record date(s) established by the depositary bank |
ITEM 13. | DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES |
ITEM 14. | MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS |
ITEM 15. | CONTROLS AND PROCEDURES |
ITEM 16A. | AUDIT COMMITTEE FINANCIAL EXPERT |
ITEM 16B. | CODE OF ETHICS |
ITEM 16C. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
2019 | 2020 | 2020 | 2021 | |||||||||||||||||||||||||||||
(RMB’000) | (US$’000)* | (RMB’000) | (US$’000)* | (RMB’000) | (US$’000)* | (RMB’000) | (US$’000) * | |||||||||||||||||||||||||
Audit fees (1) | 9,570 | 1,375 | 8,800 | 1,349 | 8,800 | 1,349 | 9,800 | 1,538 | ||||||||||||||||||||||||
Audit-related fees (2) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Tax fees (3) | — | — | — | — | — | — | 403.7 | 63.4 | ||||||||||||||||||||||||
All other fees (4) | — | — | 378 | 58 | 378 | 58 | 328 | 51 |
* | The US$ amounts are translated from corresponding RMB amounts using a rate of |
(1) | “Audit fees” means the aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years. |
(2) | “Audit-related fees” means the aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit or review of the registrant’s financial statements and are not reported under footnote (1) above. |
(3) | “Tax fees” means the aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning. |
(4) | “All other fees” means the aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in footnotes (1) through (3). |
ITEM 16D. | EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES |
ITEM 16E. | PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS |
Period | Total number of ADSs purchased | Average price paid per ADS | Total number of ADSs purchased as part of the publicly announced plan | Approximate dollar value of ADSs that may yet be purchased under the plan | ||||||||||||
April 2020 | 1,862,404 | 1.74 | 1,862,404 | 37,626,282 | ||||||||||||
May 2020 | 1,693,200 | 1.60 | 1,693,200 | 34,913,340 | ||||||||||||
June 2020 | 4,751,800 | 1.71 | 4,751,800 | 26,787,002 | ||||||||||||
July 2020 | 6,529,722 | 2.03 | 6,529,722 | 13,555,515 | ||||||||||||
August 2020 | 2,082,712 | 2.20 | 2,082,712 | 8,941,328 | ||||||||||||
Total | 16,919,838 | — | 16,919,838 | — | ||||||||||||
Period | Total number of ADSs purchased | Average price paid per ADS | Total number of ADSs purchased as part of the publicly announced plan | Approximate dollar value of ADSs that may yet be purchased under the plan | ||||||||||||
January 1, 2021 – January 31, 2021 | 813,200 | 2.93 | 9,750,736 | 39,523,206 | ||||||||||||
February 1, 2021 – February 28, 2021 | — | �� | 9,750,736 | 39,523,206 | ||||||||||||
March 1, 2021 – March 31, 2021 | — | — | 9,750,736 | 39,523,206 | ||||||||||||
April 1, 2021 – April 30, 2021 | — | — | 9,750,736 | 39,523,206 | ||||||||||||
May 1, 2021 – May 31, 2021 | — | — | 9,750,736 | 39,523,206 | ||||||||||||
June 1, 2021 – June 30, 2021 | — | — | 9,750,736 | 39,523,206 | ||||||||||||
July 1, 2021 – July 31, 2021 | — | — | 9,750,736 | 39,523,206 | ||||||||||||
August 1, 2021 – August 31, 2021 | — | — | 9,750,736 | 39,523,206 | ||||||||||||
September 1, 2021 – September 30, 2021 | — | — | 9,750,736 | 39,523,206 | ||||||||||||
October 1, 2021 – October 31, 2021 | — | — | 9,750,736 | 39,523,206 | ||||||||||||
November 1, 2021 – November 30, 2021 | — | — | 9,750,736 | 39,523,206 | ||||||||||||
December 1, 2021 – December 31, 2021 | 21,000 | 4.72 | 9,771,736 | 39,424,099 | ||||||||||||
January 1, 2022 – January 31, 2022 | 678,800 | 4.36 | 10,450,536 | 36,465,095 | ||||||||||||
February 1, 2022 – February 28, 2022 | 780,200 | 4.23 | 11,230,736 | 33,165,032 | ||||||||||||
March 1, 2022 – March 31, 2022 | 1,131,900 | 3.78 | 12,362,636 | 28,889,619 | ||||||||||||
Total | 3,425,100 | 3.80 | 12,362,636 | 28,889,619 |
Period | Total number of ADSs purchased | Average price paid per ADS | Total number of ADSs purchased as part of the publicly announced plan | Approximate dollar value of ADSs that may yet be purchased under the plan | ||||||||||||
September 2020 | 2,778,900 | 1.74 | 2,778,900 | 55,186,115 | ||||||||||||
October 2020 | 2,420,900 | 2.06 | 2,420,900 | 50,265,583 | ||||||||||||
November 2020 | 1,445,900 | 2.09 | 1,445,900 | 47,133,000 | ||||||||||||
December 2020 | 2,291,836 | 2.28 | 2,291,836 | 41,908,361 | ||||||||||||
January 2021 | 813,200 | 3.17 | 813,200 | 39,533,372 | ||||||||||||
February 2021 | — | — | — | — | ||||||||||||
March 2021 | — | — | — | — | ||||||||||||
Total | 9,750,736 | — | 9,750,736 | — | ||||||||||||
ITEM 16F. | CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT |
ITEM 16G. | CORPORATE GOVERNANCE |
ITEM 16H. | MINE SAFETY DISCLOSURE |
ITEM 16I. | DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS |
ITEM 17. | FINANCIAL STATEMENTS |
ITEM 18. | FINANCIAL STATEMENTS |
ITEM 19. | EXHIBITS |
* | Filed herewith |
** | Furnished herewith |
FinVolution Group | ||||
By: | /s/ Feng Zhang | |||
Name: | Feng Zhang | |||
Title: | Chief Executive Officer |
Page | ||||
F-2 | ||||
F-6 | ||||
F-8 | ||||
F-10 | ||||
F-13 | ||||
F-15 |
• Accounts receivable and contract assets | ||
• Quality assurance receivable | ||
• Loans receivable | ||
• Expected credit losses for quality assurance commitment |
As of December 31, | ||||||||||||||
Note | 2019 | 2020 | ||||||||||||
RMB | RMB | US$ Note 2(f) | ||||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | 2(i) | 2,324,542 | 2,632,174 | 403,398 | ||||||||||
Restricted cash (including restricted cash of the consolidated trusts of RMB799,646 and RMB482,285 as of December 31, 2019 and 2020, respectively) | 2(j) | 3,686,203 | 3,484,227 | 533,981 | ||||||||||
Short-term investments | 2(k) | 114,560 | 1,970,958 | 302,063 | ||||||||||
Accounts receivable, net of credit loss allowance for accounts receivable of RMB145,699 and RMB188,725 as of December 31, 2019 and 2020, respectively | 7 | 882,305 | 863,906 | 132,399 | ||||||||||
Quality assurance receivable, net of credit loss allowance for quality assurance receivable of RMB809,503 and RMB223,514 as of December 31, 2019 and 2020, respectively | 2(t) | 3,649,642 | 1,121,554 | 171,886 | ||||||||||
Property, equipment and software, net | 5 | 134,324 | 93,876 | 14,387 | ||||||||||
Right of use assets | 16 | 95,786 | 54,968 | 8,424 | ||||||||||
Intangible assets | 6 | 64,280 | 98,947 | 15,164 | ||||||||||
Goodwill | 50,411 | 50,411 | 7,726 | |||||||||||
Loans receivable, net of credit loss allowance for loans receivable of RMB316,124 and RMB382,012 as of December 31, 2019 and 2020, respectively (including loans receivable, net of credit loss allowance for loans receivable of the consolidated trusts of RMB4,618,856 and RMB2,100,158 as of December 31,2019 and 2020, respectively) | 3 | 4,808,252 | 2,354,882 | 360,901 | ||||||||||
Investments | 2(m) | 952,833 | 950,515 | 145,673 | ||||||||||
Deferred tax assets | 11 | 129,740 | 155,758 | 23,872 | ||||||||||
Contract assets | 7 | 20,555 | — | — | ||||||||||
Prepaid expenses and other assets (including prepaid expenses and other assets of the consolidated trusts of RMB62,306 and RMB32,154 as of December 31, 2019 and 2020, respectively) | 4 | 1,391,023 | 1,050,009 | 160,921 | ||||||||||
Total assets | 18,304,456 | 14,882,185 | 2,280,795 | |||||||||||
Liabilities and Shareholders’ Equity: | ||||||||||||||
Payable to platform customers (including payable to platform customers of the consolidated variable interest entity (“VIE”) and VIE’s subsidiaries without recourse to the Company of RMB as of December 31, 2019 and 2020, respectively)684,630 | 684,630 | 103,453 | 15,855 | |||||||||||
Quality assurance payable (including quality assurance payable of the consolidated VIE and VIE’s subsidiaries without recourse to the Company of RMB 4,776,153 and NaN as of December 31, 2019 and 2020, respectively) | 2(t) | 4,776,153 | — | — | ||||||||||
Deferred guarantee income (including deferred guarantee income of the consolidated VIE and VIE’s subsidiaries without recourse to the Company of NaN and RMB1,259,396 as of December 31, 2019 and 2020, respectively) | 2(t) | — | 1,259,396 | 193,011 | ||||||||||
Expected credit losses for quality assurance commitment (including expected credit losses for quality assurance commitment of the consolidated VIE and VIE’s subsidiaries without recourse to the Company of NaN and RMB2,390,501 as of December 31, 2019 and 2020, respectively) | 2(t) | — | 2,390,501 | 366,360 | ||||||||||
Payroll and welfare payable (including payroll and welfare payable of the consolidated VIE and VIE’s subsidiaries without recourse to the Company of RMB115,540 and RMB132,955 as of December 31, 2019 and 2020, respectively) | 8 | 176,685 | 220,989 | 33,868 | ||||||||||
Taxes payable (including taxes payable of the consolidated VIE and VIE’s subsidiaries without recourse to the Company of RMB32,468 and RMB49,556 as of December 31, 2019 and 2020, respectively; including taxes payable of consolidated trusts of RMB4,562 and RMB3,996 as of December 31, 2019 and 2020, respectively) | 128,298 | 154,398 | 23,663 | |||||||||||
Short-term borrowings (including short-term borrowings of the consolidated VIE and VIE’s subsidiaries without recourse to the Company of RMB85,000 and NaN as of December 31, 2019 and 2020, respectively) | 15 | 235,000 | — | — | ||||||||||
Funds payable to investors of consolidated trusts (including funds payable to investors of consolidated trusts of RMB3,660,483 and RMB1,661,841 as of December 31, 2019 and 2020 respectively) | 3 | 3,660,483 | 1,661,841 | 254,688 | ||||||||||
Contract liabilities (including contract liabilities of the consolidated VIE and VIE’s subsidiaries without recourse to the Company of RMB50,166 and NaN as of December 31, 2019 and 2020, respectively) | 2(u) | 55,728 | 3,447 | 528 |
As of December 31, | ||||||||||||||
Note | 2020 | 2021 | ||||||||||||
RMB | RMB | US$ Note 2(f) | ||||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | 2(i) | 2,632,174 | 4,418,127 | 693,301 | ||||||||||
Restricted cash | 2(j) | 3,484,227 | 4,073,414 | 639,208 | ||||||||||
Short-term investments | 2(k) | 1,970,958 | 1,204,901 | 189,075 | ||||||||||
Accounts receivable and contract assets, net of credit loss allowance for accounts receivable and contract assets of 188,725 and RMB250,696 as of December 31, 2020 and 2021, respectivelyRMB | 7 | 863,906 | 1,890,846 | 296,715 | ||||||||||
Quality assurance receivable, net of credit loss allowance for quality assurance receivable of RMB223,514 and RMB239,506 as of December 31, 2020 and 2021, respectively | 2(t) | 1,121,554 | 931,798 | 146,219 | ||||||||||
Property, equipment and software, net | �� | 5 | 93,876 | 112,397 | 17,638 | |||||||||
Right of use assets | 1 5 | 54,968 | 49,138 | 7,711 | ||||||||||
Intangible assets | 6 | 98,947 | 98,947 | 15,527 | ||||||||||
Goodwill | 50,411 | 50,411 | 7,911 | |||||||||||
Loans receivable, net of credit loss allowance for loans receivable of RMB382,012 and RMB427,873 as of December 31, 2020 and 2021, respectively | 3 | 2,354,882 | 1,982,276 | 311,062 | ||||||||||
Investments | 2(m) | 950,515 | 971,117 | 152,389 | ||||||||||
Deferred tax assets | 11 | 155,758 | 455,741 | 71,516 | ||||||||||
Prepaid expenses and other assets | 4 | 1,050,009 | 1,899,438 | 298,063 | ||||||||||
Total assets | 14,882,185 | 18,138,551 | 2,846,335 | |||||||||||
Liabilities and Shareholders’ Equity: | ||||||||||||||
Payable to platform customers (including payable to platform customers of the consolidated variable interest entity (“VIE”) and VIE’s subsidiaries including consolidated trusts without recourse to the Company of RMB103,453 and RMB81,150 as of December 31, 2020 and 2021, respectively) | 103,453 | 81,150 | 12,734 | |||||||||||
Deferred guarantee income (including deferred guarantee income of the consolidated VIE and VIE’s subsidiaries including consolidated trusts without recourse to the Company of RMB1,259,396 and RMB1,089,503 as of December 31, 2020 and 2021, respectively) | 2(t) | 1,259,396 | 1,089,503 | 170,967 | ||||||||||
Expected credit losses for quality assurance commitment (including expected credit losses for quality assurance commitment of the consolidated VIE and VIE’s subsidiaries including consolidated trusts without recourse to the Company of RMB2,390,501 and RMB3,188,561 as of December 31, 2020 and 2021, respectively) | 2(t) | 2,390,501 | 3,188,561 | 500,355 | ||||||||||
Payroll and welfare payable (including payroll and welfare payable of the consolidated VIE and VIE’s subsidiaries including consolidated trusts without recourse to the Company of RMB132,955 and RMB146,697 | 8 | 220,989 | 252,918 | 39,688 | ||||||||||
Taxes payable (including taxes payable of the consolidated VIE and VIE’s subsidiaries including consolidated trusts without recourse to the Company of RMB53,552 and RMB57,237as of December 31, 2020 and 2021, respectively) | 154,398 | 200,648 | 31,486 | |||||||||||
Funds payable to investors of consolidated trusts (including funds payable to investors of consolidated trusts of the consolidated VIE and VIE’s subsidiaries including consolidated trusts without recourse to the Company of RMB1,661,841 and RMB1,795,640 as of December 31, 2020 and 2021, respectively) | 3 | 1,661,841 | 1,795,640 | 281,775 | ||||||||||
Contract liabilities (including contract liabilities of the consolidated VIE and VIE’s subsidiaries including consolidated trusts without recourse to the Company of NaN and RMB6,826 as of December 31, 2020 and 2021, respectively) | 2(u) | 3,447 | 8,436 | 1,324 |
As of December 31, | As of December 31, | |||||||||||||||||||||||||||
Note | 2019 | 2020 | Note | 2020 | 2021 | |||||||||||||||||||||||
RMB | RMB | US$ Note 2(f) | RMB | RMB | US$ Note 2(f) | |||||||||||||||||||||||
Liabilities and Shareholders’ Equity (Continued) | ||||||||||||||||||||||||||||
Amounts due to related party (including amounts due to related party of the consolidated VIE and VIE’s subsidiaries without recourse to the Company of RMB4,309 and RMB1,984 as of December 31, 2019 and 2020, respectively) | 10 | 4,309 | 1,984 | 304 | ||||||||||||||||||||||||
Leasing liabilities (including leasing liabilities of the consolidated VIE and VIE’s subsidiaries without recourse to the Company of RMB84,284 and RMB42,775 as of December 31, 2019 and 2020, respectively) | 16 | 85,143 | 43,296 | 6,635 | ||||||||||||||||||||||||
Deferred tax liabilities (including deferred tax liabilities of the consolidated VIE and VIE’s subsidiaries without recourse to the Company of RMB47,117 and RMB8,320 as of December 31, 2019 and 2020, respectively) | 11 | 198,922 | 103,548 | 15,870 | ||||||||||||||||||||||||
Accrued expenses and other liabilities (including accrued expenses and other liabilities of the consolidated VIE and VIE’s subsidiaries without recourse to the Company of RMB237,802 and RMB472,446 as of December 31, 2019 and 2020, respectively) | 9 | 287,625 | 509,002 | 78,008 | ||||||||||||||||||||||||
Amounts due to related party (including amounts due to related party of the consolidated VIE and VIE’s subsidiaries including consolidated trusts without recourse to the Company of RMB1,984 andRMB2,265 as of December 31, 2020 and 2021, respectively) | 10 | 1,984 | 2,265 | 355 | ||||||||||||||||||||||||
Leasing liabilities (including leasing liabilities of the consolidated VIE and VIE’s subsidiaries including consolidated trusts without recourse to the Company of RMB42,775 andRMB33,184 as of December 31, 2020 and 2021, respectively) | 1 5 | 43,296 | 33,356 | 5,234 | ||||||||||||||||||||||||
Deferred tax liabilities (including deferred tax liabilities of the consolidated VIE and VIE’s subsidiaries including consolidated trusts without recourse to the Company of RMB67,217 and RMB45,656 as of December 31, 2020 and 2021, respectively) | 11 | 103,548 | 137,632 | 21,597 | ||||||||||||||||||||||||
Accrued expenses and other liabilities (including accrued expenses and other liabilities of the consolidated VIE and VIE’s subsidiaries including consolidated trusts without recourse to the Company of RMB472,446 andRMB598,570 as of December 31, 2020 and 2021, respectively) | 9 | 509,002 | 638,832 | 100,247 | ||||||||||||||||||||||||
Total liabilities | 10,292,976 | 6,451,855 | 988,790 | 6,451,855 | 7,428,941 | 1,165,762 | ||||||||||||||||||||||
Commitments and contingencies | 17 | 0 | 0 | 0 | 16 | 0 | 0 | 0 | ||||||||||||||||||||
FinVolution Group shareholders’ equity: | ||||||||||||||||||||||||||||
Class A ordinary shares (US$0.00001 par value; 10,000,000,000 shares authorized as of December 31, 2019 and 2020; 964,071,169 and 969,071,169 issued as of December 31, 2019 and 2020; 943,436,904 and 824,164,599 outstanding as of December 31, 2019 and 2020) | 12 | 64 | 64 | 10 | ||||||||||||||||||||||||
Class B ordinary shares (US$0.00001 par value; 10,000,000,000 shares authorized as of December 31, 2019 and 2020; 586,000,000 and 581,000,000 issued and outstanding as of December 31, 2019 and 2020) | 12 | 39 | 39 | 6 | ||||||||||||||||||||||||
Class A ordinary shares (US$0.00001 par value; 10,000,000,000 shares authorized as of December 31, 2020 and 2021; 969,071,169 and 970,871,169 issued as of December 31, 2020 and 2021; 824,164,599 and 854,591,404 outstanding as of December 31, 2020 and 2021) | 12 | 64 | 64 | 10 | ||||||||||||||||||||||||
Class B ordinary shares (US$0.00001 par value; 10,000,000,000 shares authorized as of December 31, 2020 and 2021; 581,000,000 and 579,200,000 issued and outstanding as of December 31, 2020 and 2021) | 12 | 39 | 39 | 6 | ||||||||||||||||||||||||
Additional paid-in capital | 5,640,898 | 5,659,990 | 867,431 | 5,659,990 | 5,694,733 | 893,628 | ||||||||||||||||||||||
Treasury stock (20,634,265 and 144,906,570 shares as of December 31, 2019 and 2020, respectively) | 12 | (47,174 | ) | (401,621 | ) | (61,551 | ) | |||||||||||||||||||||
Treasury stock (144,906,570 and 116,279,765 shares as of December 31, 2020 and 2021, respectively) | 12 | (401,621 | ) | (324,171 | ) | (50,870 | ) | |||||||||||||||||||||
Statutory reserves | 2(ah) | 317,198 | 458,058 | 70,200 | 2(ag) | 458,058 | 610,403 | 95,786 | ||||||||||||||||||||
Accumulated other comprehensive income | 70,320 | (5,142 | ) | (787 | ) | (5,142 | ) | (16,769 | ) | (2,630 | ) | |||||||||||||||||
Retained earnings | 1,966,611 | 2,651,918 | 406,424 | 2,651,918 | 4,690,951 | 736,113 | ||||||||||||||||||||||
Total FinVolution Group shareholders’ equity | 7,947,956 | 8,363,306 | 1,281,733 | 8,363,306 | 10,655,250 | 1,672,043 | ||||||||||||||||||||||
Non-controlling interest | 63,524 | 67,024 | 10,272 | 67,024 | 54,360 | 8,530 | ||||||||||||||||||||||
Total shareholders’ equity | 8,011,480 | 8,430,330 | 1,292,005 | 8,430,330 | 10,709,610 | 1,680,573 | ||||||||||||||||||||||
Total liabilities and shareholders’ equity | 18,304,456 | 14,882,185 | 2,280,795 | 14,882,185 | 18,138,551 | 2,846,335 | ||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||
Note | 2018 | 2019 | 2020 | |||||||||||||||
RMB | RMB | RMB | US$ Note 2(f) | |||||||||||||||
Operating revenue: | ||||||||||||||||||
Loan facilitation service fees | 2(u) | 2,919,234 | 3,310,875 | 1,908,851 | 292,544 | |||||||||||||
Post-facilitation service fees | 2(u) | 922,797 | 1,200,373 | 672,981 | 103,139 | |||||||||||||
Guarantee income | 2(t) | — | — | 3,386,032 | 518,932 | |||||||||||||
Net interest income | 2(o) | 256,108 | 1,106,669 | 1,113,337 | 170,626 | |||||||||||||
Other revenue | 2(u) | 376,915 | 344,840 | 481,886 | 73,852 | |||||||||||||
Changes in expected discretionary payment to investor reserve fund investors | 2(u) | 68,619 | — | — | — | |||||||||||||
Net revenues | 4,543,673 | 5,962,757 | 7,563,087 | 1,159,093 | ||||||||||||||
Operating expenses: | ||||||||||||||||||
Origination and servicing expenses | 2(v) | (875,905 | ) | (1,164,716 | ) | (1,315,496 | ) | (201,609 | ) | |||||||||
Origination and servicing expenses-related party | 2(v) | (109,666 | ) | (43,494 | ) | (10,104 | ) | (1,549 | ) | |||||||||
Sales and marketing expenses | 2(w) | (710,754 | ) | (720,333 | ) | (482,859 | ) | (74,001 | ) | |||||||||
General and administrative expenses | 2(x) | (383,388 | ) | (435,816 | ) | (461,116 | ) | (70,669 | ) | |||||||||
Research and development expenses | 2(y) | (317,965 | ) | (390,585 | ) | (370,175 | ) | (56,732 | ) | |||||||||
Credit losses for quality assurance commitment | 2(t) | — | — | (2,007,968 | ) | (307,735 | ) | |||||||||||
Provision for loans receivable | 3 | (192,749 | ) | (299,504 | ) | (463,175 | ) | (70,985 | ) | |||||||||
Provision for accounts receivable and other receivables | 7 | (106,652 | ) | (261,882 | ) | (144,661 | ) | (22,170 | ) | |||||||||
Total operating expenses | (2,697,079 | ) | (3,316,330 | ) | (5,255,554 | ) | (805,450 | ) | ||||||||||
Other income | ||||||||||||||||||
Gain from quality assurance | 2(t) | 510,894 | 98,405 | — | — | |||||||||||||
Realized gain (loss) from financial guarantee derivatives | 2(ad) | (157,244 | ) | 31,444 | — | — | ||||||||||||
Fair value change of financial guarantee derivatives | 2(ad) | 272,057 | (56,287 | ) | — | — | ||||||||||||
Other income, net | 2(k), 2(ab) | 148,356 | 136,491 | 116,469 | 17,850 | |||||||||||||
Profit before income tax expenses | 2,620,657 | 2,856,480 | 2,424,002 | 371,493 | ||||||||||||||
Income tax expenses | 11 | (151,206 | ) | (481,962 | ) | (455,421 | ) | (69,796 | ) | |||||||||
Net profit | 2,469,451 | 2,374,518 | 1,968,581 | 301,697 | ||||||||||||||
Net loss (profit) attributable to non-controlling interest shareholders | (377 | ) | (1,668 | ) | 4,119 | 631 | ||||||||||||
Net profit attributable to FinVolution Group’s ordinary shareholders | 2,469,074 | 2,372,850 | 1,972,700 | 302,328 | ||||||||||||||
For the years ended December 31, | ||||||||||||||||||
Note | 2019 | 2020 | 2021 | |||||||||||||||
RMB | RMB | RMB | US$ Note 2(f) | |||||||||||||||
Operating revenue: | ||||||||||||||||||
Loan facilitation service fees | 2(u) | 3,310,875 | 1,908,851 | 3,794,182 | 595,390 | |||||||||||||
Post-facilitation service fees | 2(u) | 1,200,373 | 672,981 | 1,309,565 | 205,499 | |||||||||||||
Guarantee income | 2(t) | — | 3,386,032 | 2,593,512 | 406,979 | |||||||||||||
Net interest income | 2(o) | 1,106,669 | 1,113,337 | 1,216,170 | 190,844 | |||||||||||||
Other revenue | 2(u) | 344,840 | 481,886 | 556,699 | 87,358 | |||||||||||||
Net revenues | 5,962,757 | 7,563,087 | 9,470,128 | 1,486,070 | ||||||||||||||
Operating expenses: | ||||||||||||||||||
Origination, servicing expenses and other cost of revenue | 2(v) | (1,164,716 | ) | (1,315,496 | ) | (1,834,453 | ) | (287,866 | ) | |||||||||
Origination, servicing expenses and other cost of revenue-related party | 2(v) | (43,494 | ) | (10,104 | ) | (7,503 | ) | (1,177 | ) | |||||||||
Sales and marketing expenses | 2(w) | (720,333 | ) | (482,859 | ) | (1,584,233 | ) | (248,601 | ) | |||||||||
General and administrative expenses | 2(x) | (435,816 | ) | (461,116 | ) | (518,245 | ) | (81,324 | ) | |||||||||
Research and development expenses | 2(y) | (390,585 | ) | (370,175 | ) | (434,850 | ) | (68,237 | ) | |||||||||
Credit losses for quality assurance commitment | 2(t) | — | (2,007,968 | ) | (1,963,609 | ) | (308,133 | ) | ||||||||||
Provision for loans receivable | 3 | (299,504 | ) | (463,175 | ) | (374,243 | ) | (58,727 | ) | |||||||||
Provision for accounts receivable and contract assets | 7 | (261,882 | ) | (144,661 | ) | (139,226 | ) | (21,848 | ) | |||||||||
Total operating expenses | (3,316,330 | ) | (5,255,554 | ) | (6,856,362 | ) | (1,075,913 | ) | ||||||||||
Other income | ||||||||||||||||||
Gain from quality assurance | 2(t) | 98,405 | — | — | — | |||||||||||||
Realized gain from financial guarantee derivatives | 31,444 | — | — | — | ||||||||||||||
Fair value change of financial guarantee derivatives | (56,287 | ) | — | — | — | |||||||||||||
Other income, net | 2(k), 2(ab) | 136,491 | 116,469 | 122,368 | 19,202 | |||||||||||||
Profit before income tax expenses | 2,856,480 | 2,424,002 | 2,736,134 | 429,359 | ||||||||||||||
Income tax expenses | 11 | (481,962 | ) | (455,421 | ) | (240,818 | ) | (37,790 | ) | |||||||||
Net profit | 2,374,518 | 1,968,581 | 2,495,316 | 391,569 | ||||||||||||||
Net loss (profit) attributable to non-controlling interest shareholders | (1,668 | ) | 4,119 | 13,631 | 2,139 | |||||||||||||
Net profit attributable to FinVolution Group’s ordinary shareholders | 2,372,850 | 1,972,700 | 2,508,947 | 393,708 | ||||||||||||||
For the years ended December 31, | For the years ended December 31, | |||||||||||||||||||||||||||||||||||
Note | 2018 | 2019 | 2020 | Note | 2019 | 2020 | 2021 | |||||||||||||||||||||||||||||
RMB | RMB | RMB | US$ Note 2(f) | RMB | RMB | RMB | US$ Note 2(f) | |||||||||||||||||||||||||||||
Net profit | 2,469,451 | 2,374,518 | 1,968,581 | 301,697 | 2,374,518 | 1,968,581 | 2,495,316 | 391,569 | ||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of nil tax | 43,293 | 12,110 | (75,462 | ) | (11,565 | ) | 12,110 | (75,462 | ) | (11,627 | ) | (1,825 | ) | |||||||||||||||||||||||
Total comprehensive income | 2,512,744 | 2,386,628 | 1,893,119 | 290,132 | 2,386,628 | 1,893,119 | 2,483,689 | 389,744 | ||||||||||||||||||||||||||||
Total comprehensive loss (income) attributable to non-controlling interest shareholders | (377 | ) | (1,668 | ) | 4,119 | 631 | (1,668 | ) | 4,119 | 13,631 | 2,139 | |||||||||||||||||||||||||
Total comprehensive income attributable to FinVolution Group’s ordinary shareholders | 2,512,367 | 2,384,960 | 1,897,238 | 290,763 | 2,384,960 | 1,897,238 | 2,497,320 | 391,883 | ||||||||||||||||||||||||||||
Weighted average number of ordinary shares used in computing net profit per share | ||||||||||||||||||||||||||||||||||||
Basic | 1,498,780,165 | 1,525,814,189 | 1,477,162,991 | 1,477,162,991 | 1,525,814,189 | 1,477,162,991 | 1,420,870,790 | 1,420,870,790 | ||||||||||||||||||||||||||||
Diluted | 1,599,592,231 | 1,552,423,060 | 1,491,325,420 | 1,491,325,420 | 1,552,423,060 | 1,491,325,420 | 1,482,501,832 | 1,482,501,832 | ||||||||||||||||||||||||||||
Net profit per share attributable to FinVolution Group’s ordinary shareholders | ||||||||||||||||||||||||||||||||||||
Basic | 1.65 | 1.56 | 1.34 | 0.20 | 1.56 | 1.34 | 1.77 | 0.28 | ||||||||||||||||||||||||||||
Diluted | 1.54 | 1.53 | 1.32 | 0.20 | 1.53 | 1.32 | 1.69 | 0.27 | ||||||||||||||||||||||||||||
Net profit per ADS attributable to FinVolution Group’s ordinary shareholders (one ADS equal five ordinary shares) | ||||||||||||||||||||||||||||||||||||
Net profit per ADS attributable to FinVolution Group’s ordinary shareholders (one ADS equals to five ordinary shares) | ||||||||||||||||||||||||||||||||||||
Basic | 8.24 | 7.78 | 6.68 | 1.02 | 7.78 | 6.68 | 8.83 | 1.39 | ||||||||||||||||||||||||||||
Diluted | 7.72 | 7.64 | 6.61 | 1.01 | 7.64 | 6.61 | 8.46 | 1.33 |
Note | Issued ordinary shares | Treasury stock | Statutory reserve | Retained earnings (Accumulated deficit) | Non- controlling interest | Total shareholders’ equity | ||||||||||||||||||||||||||||||||||||||
Share | Amount | Additional paid-in capital | Share | Amount | Accumulated other comprehensive income | |||||||||||||||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2017 | 1,503,071,169 | 100 | 5,951,044 | — | — | 14,917 | 55,090 | (2,398,984 | ) | 60,021 | 3,682,188 | |||||||||||||||||||||||||||||||||
Cumulative effect of accounting change | 2 | (u) | — | — | — | — | — | — | — | 176,494 | — | 176,494 | ||||||||||||||||||||||||||||||||
Issuance of ordinary shares for share-based compensation plans | 12 | 30,000,000 | 2 | — | (30,000,000 | ) | (2 | ) | — | — | — | — | — | |||||||||||||||||||||||||||||||
Repurchase of ordinary shares | 12 | — | — | — | (60,306,360 | ) | (452,262 | ) | — | — | — | — | (452,262 | ) | ||||||||||||||||||||||||||||||
Share-based compensation | 13 | — | — | 50,319 | — | — | — | — | — | — | 50,319 | |||||||||||||||||||||||||||||||||
Exercise of share-based compensation plans | 13 | — | — | (105,346 | ) | 44,005,360 | 120,143 | — | — | — | — | 14,797 | ||||||||||||||||||||||||||||||||
Net profit | — | — | — | — | — | — | — | 2,469,074 | 377 | 2,469,451 | ||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | 43,293 | — | — | — | 43,293 | ||||||||||||||||||||||||||||||||||
Capital injection from non-controlling interest | — | — | — | — | — | — | — | — | 1,458 | 1,458 | ||||||||||||||||||||||||||||||||||
Appropriation to statutory reserve | — | — | — | — | — | — | 200,916 | (200,916 | ) | — | — | |||||||||||||||||||||||||||||||||
Balance as of December 31, 2018 | 1,533,071,169 | 102 | 5,896,017 | (46,301,000 | ) | (332,121 | ) | 58,210 | 256,006 | 45,668 | 61,856 | 5,985,738 | ||||||||||||||||||||||||||||||||
Note | Issued ordinary shares | Treasury stock | Retained earnings | Note | Issued ordinary shares | Additional paid-in capital | Treasury stock | Accumulated other comprehensive income | Statutory reserve | Retained earnings | Non- controlling interest | Total shareholders’ equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share | Amount | Additional paid-in capital | Share | Amount | Accumulated other comprehensive income | Statutory reserve | Non- controlling interest | Total shareholders’ equity | Share | Amount | Share | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2018 | 1,533,071,169 | 102 | 5,896,017 | (46,301,000 | ) | (332,121 | ) | 58,210 | 256,006 | 45,668 | 61,856 | 5,985,738 | 1,533,071,169 | 102 | 5,896,017 | (46,301,000 | ) | (332,121 | ) | 58,210 | 256,006 | 45,668 | 61,856 | 5,985,738 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of ordinary shares for share-based compensation plans | 12 | 17,000,000 | 1 | — | (17,000,000 | ) | (1 | ) | — | — | — | — | — | 12 | 17,000,000 | 1 | — | (17,000,000 | ) | (1 | ) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of ordinary shares | 12 | — | — | — | (12,729,500 | ) | (47,173 | ) | — | — | — | — | (47,173 | ) | 12 | — | — | — | (12,729,500 | ) | (47,173 | ) | — | — | — | — | (47,173 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | 13 | — | — | 42,260 | — | — | — | — | — | — | 42,260 | 13 | — | — | 42,260 | — | — | — | — | — | — | 42,260 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of share-based compensation plans | 13 | — | — | (297,379 | ) | 55,396,235 | 332,121 | — | — | — | — | 34,742 | 13 | — | — | (297,379 | ) | 55,396,235 | 332,121 | — | — | — | — | 34,742 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net profit | — | — | — | — | — | — | — | 2,372,850 | 1,668 | 2,374,518 | — | — | — | — | — | — | — | 2,372,850 | 1,668 | 2,374,518 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to shareholders | — | — | — | — | — | — | — | (390,715 | ) | — | (390,715 | ) | — | — | — | — | — | — | — | (390,715 | ) | — | (390,715 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | 12,110 | — | — | — | 12,110 | — | — | — | — | — | 12,110 | — | — | — | 12,110 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Appropriation to statutory reserve | — | — | — | — | — | — | 61,192 | (61,192 | ) | — | — | — | — | — | — | — | — | 61,192 | (61,192 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2019 | 1,550,071,169 | 103 | 5,640,898 | (20,634,265 | ) | (47,174 | ) | 70,320 | 317,198 | 1,966,611 | 63,524 | 8,011,480 | 1,550,071,169 | 103 | 5,640,898 | (20,634,265 | ) | (47,174 | ) | 70,320 | 317,198 | 1,966,611 | 63,524 | 8,011,480 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note | Issued ordinary shares | Treasury stock | Retained earnings | Note | Issued ordinary shares | Additional paid-in capital | Treasury stock | Accumulated other comprehensive income | Statutory reserve | Retained earnings | Non- controlling interest | Total shareholders’ equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share | Amount | Additional paid-in capital | Share | Amount | Accumulated other comprehensive income | Statutory reserve | Non- controlling interest | Total shareholders’ equity | Share | Amount | Share | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2019 | 1,550,071,169 | 103 | 5,640,898 | (20,634,265 | ) | (47,174 | ) | 70,320 | 317,198 | 1,966,611 | 63,524 | 8,011,480 | 1,550,071,169 | 103 | 5,640,898 | (20,634,265 | ) | (47,174 | ) | 70,320 | 317,198 | 1,966,611 | 63,524 | 8,011,480 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative effect of accounting change | 2 | (b) | — | — | — | — | — | — | — | (882,964 | ) | — | (882,964 | ) | 2(b) | — | — | — | — | — | — | — | (882,964 | ) | — | (882,964 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of ordinary shares | 12 | — | — | — | (139,954,870 | ) | (384,871 | ) | — | — | — | — | (384,871 | ) | 12 | — | — | — | (139,954,870 | ) | (384,871 | ) | — | — | — | — | (384,871 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | 13 | — | — | 42,169 | — | — | — | — | — | — | 42,169 | 13 | — | — | 42,169 | — | — | — | — | — | — | 42,169 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of share-based compensation plans | 13 | — | — | (23,077 | ) | 15,682,565 | 30,424 | — | — | — | — | 7,347 | 13 | — | — | (23,077 | ) | 15,682,565 | 30,424 | — | — | — | — | 7,347 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net profit | — | — | — | — | — | — | — | 1,972,700 | (4,119 | ) | 1,968,581 | — | — | — | — | — | — | — | 1,972,700 | (4,119 | ) | 1,968,581 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to shareholders | — | — | — | — | — | — | — | (263,569 | ) | — | (263,569 | ) | — | — | — | — | — | — | — | (263,569 | ) | — | (263,569 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | (75,462 | ) | — | — | — | (75,462 | ) | — | — | — | — | — | (75,462 | ) | — | — | — | (75,462 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Appropriation to statutory reserve | — | — | — | — | — | — | 140,860 | (140,860 | ) | — | — | — | — | — | — | — | — | 140,860 | (140,860 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital injection from non-controlling interest | — | — | — | — | — | — | — | — | 7,619 | 7,619 | — | — | — | — | — | — | — | — | 7,619 | 7,619 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2020 | 1,550,071,169 | 103 | 5,659,990 | (144,906,570 | ) | (401,621 | ) | (5,142 | ) | 458,058 | 2,651,918 | 67,024 | 8,430,330 | 1,550,071,169 | 103 | 5,659,990 | (144,906,570 | ) | (401,621 | ) | (5,142 | ) | 458,058 | 2,651,918 | 67,024 | 8,430,330 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note | Issued ordinary shares | Additional paid-in capital | Treasury stock | Accumulated other comprehensive income | Statutory reserve | Retained earnings | Non- controlling interest | Total shareholders’ equity | ||||||||||||||||||||||||||||||||||
Share | Amount | Share | Amount | |||||||||||||||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||||||||||||||||||||||||||
Balance as of December 31, 2020 | 1,550,071,169 | 103 | 5,659,990 | (144,906,570 | ) | (401,621 | ) | (5,142 | ) | 458,058 | 2,651,918 | 67,024 | 8,430,330 | |||||||||||||||||||||||||||||
Repurchase of ordinary shares | 12 | — | — | — | (4,171,000 | ) | (16,228 | ) | — | — | — | — | (16,228 | ) | ||||||||||||||||||||||||||||
Share-based compensation | 13 | — | — | 95,213 | — | — | — | — | — | — | 95,213 | |||||||||||||||||||||||||||||||
Exercise of share-based compensation plans | 13 | — | — | (60,470 | ) | 32,797,805 | 93,678 | — | — | — | — | 33,208 | ||||||||||||||||||||||||||||||
Net profit | — | — | — | — | — | — | — | 2,508,947 | (13,631 | ) | 2,495,316 | |||||||||||||||||||||||||||||||
Dividends paid to shareholders | — | — | — | — | — | — | — | (317,569 | ) | — | (317,569 | ) | ||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | (11,627 | ) | — | — | — | (11,627 | ) | ||||||||||||||||||||||||||||||
Appropriation to statutory reserve | — | — | — | — | — | — | 152,345 | (152,345 | ) | — | — | |||||||||||||||||||||||||||||||
Capital injection from non-controlling interest | — | — | — | — | — | — | — | — | 967 | 967 | ||||||||||||||||||||||||||||||||
Balance as of December 31, 2021 | 1,550,071,169 | 103 | 5,694,733 | (116,279,765 | ) | (324,171 | ) | (16,769 | ) | 610,403 | 4,690,951 | 54,360 | 10,709,610 | |||||||||||||||||||||||||||||
For the years ended December 31, | For the years ended December 31, | |||||||||||||||||||||||||||||||||||
2018 | 2019 | 2020 | 2019 | 2020 | 2021 | |||||||||||||||||||||||||||||||
RMB | RMB | RMB | US$ Note 2(f) | RMB | RMB | RMB | US$ Note 2(f) | |||||||||||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||||||||||||||
Net profit | 2,469,451 | 2,374,518 | 1,968,581 | 301,697 | 2,374,518 | 1,968,581 | 2,495,316 | 391,569 | ||||||||||||||||||||||||||||
Adjustments to reconcile net profit to net cash provided by (used in) operating activities: | ||||||||||||||||||||||||||||||||||||
Provision for loans receivable | 192,749 | 299,504 | 463,175 | 70,985 | 299,504 | 463,175 | 374,243 | 58,727 | ||||||||||||||||||||||||||||
Provision for accounts receivable and other receivables | 106,652 | 261,882 | 144,661 | 22,170 | ||||||||||||||||||||||||||||||||
Provision for accounts receivable and contract assets | 261,882 | 144,661 | 139,226 | 21,848 | ||||||||||||||||||||||||||||||||
Provision for quality assurance receivable | 210,520 | (49,590 | ) | 59,136 | 9,280 | |||||||||||||||||||||||||||||||
Depreciation and amortization | 42,162 | 57,712 | 51,780 | 7,936 | 57,712 | 51,780 | 37,277 | 5,850 | ||||||||||||||||||||||||||||
Amortization of right-of-use | — | 49,373 | 44,653 | 6,843 | 49,373 | 44,653 | 31,956 | 5,015 | ||||||||||||||||||||||||||||
Change in fair value of short-term investments | (16,460 | ) | 13,028 | (7,211 | ) | (1,104 | ) | 13,028 | (7,211 | ) | (1,573 | ) | (247 | ) | ||||||||||||||||||||||
Provision for investment | — | — | 33,660 | 5,159 | — | 33,660 | 5,000 | 785 | ||||||||||||||||||||||||||||
Loss (Gain) from disposal of investments | — | (10,614 | ) | 0 | 0 | |||||||||||||||||||||||||||||||
Change in fair value of investments | 77 | — | 0 | 0 | ||||||||||||||||||||||||||||||||
Gain from disposal of investments | (10,614 | ) | 0 | 0 | 0 | |||||||||||||||||||||||||||||||
Equity pick up of investments | — | 0 | 4,245 | 666 | ||||||||||||||||||||||||||||||||
Net gain from investment in loans | (256,108 | ) | (1,106,669 | ) | (1,113,337 | ) | (170,626 | ) | (1,106,669 | ) | (1,113,337 | ) | (1,216,170 | ) | (190,844 | ) | ||||||||||||||||||||
Share-based compensation | 50,319 | 42,260 | 42,169 | 6,463 | 42,260 | 42,169 | 95,213 | 14,941 | ||||||||||||||||||||||||||||
Impairment of intangible assets | — | 4,600 | 0 | 0 | 4,600 | 0 | 0 | 0 | ||||||||||||||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||||||||||||||||||
Accounts receivable | (746,753 | ) | (332,145 | ) | (248,339 | ) | (38,060 | ) | ||||||||||||||||||||||||||||
Accounts receivable and contract assets | (240,597 | ) | (227,784 | ) | (1,166,166 | ) | (182,997 | ) | ||||||||||||||||||||||||||||
Quality assurance receivable | (911,597 | ) | (1,585,276 | ) | 2,493,090 | 382,083 | (1,795,796 | ) | 2,542,680 | 130,620 | 20,497 | |||||||||||||||||||||||||
Financial guarantee derivative assets and discretionary payment | (379,717 | ) | 56,287 | 0 | 0 | 56,287 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Deferred tax assets | (27,705 | ) | (6,977 | ) | 151,335 | 23,193 | (6,977 | ) | 151,335 | (299,983 | ) | (47,074 | ) | |||||||||||||||||||||||
Amounts due from related part y | (2,830 | ) | 2,830 | 0 | 0 | |||||||||||||||||||||||||||||||
Contract assets | (59,019 | ) | 91,548 | 20,555 | 3,150 | |||||||||||||||||||||||||||||||
Amounts due from related party | 2,830 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
Prepaid expenses and other assets | (115,017 | ) | (1,090,910 | ) | 353,383 | 54,157 | (1,090,910 | ) | 353,383 | (875,274 | ) | (137,351 | ) | |||||||||||||||||||||||
Payable to platform customers | (208,932 | ) | (220,404 | ) | (581,177 | ) | (89,069 | ) | (220,404 | ) | (581,177 | ) | (22,303 | ) | (3,500 | ) | ||||||||||||||||||||
Quality assurance payable | 1,756,535 | 956,774 | 0 | 0 | 956,774 | 0 | 0 | 0 | ||||||||||||||||||||||||||||
Deferred guarantee income | — | — | (613,858 | ) | (94,078 | ) | — | (613,858 | ) | (169,893 | ) | (26,660 | ) | |||||||||||||||||||||||
Expected credit losses for quality assurance commitment | — | — | (1,202,520 | ) | (184,294 | ) | — | (1,202,520 | ) | 798,060 | 125,233 | |||||||||||||||||||||||||
Payroll and welfare payable | 31,423 | (11,569 | ) | 44,304 | 6,790 | (11,569 | ) | 44,304 | 31,929 | 5,010 | ||||||||||||||||||||||||||
Taxes payable | (32,042 | ) | (96,803 | ) | 26,100 | 4,000 | (96,803 | ) | 26,100 | 46,250 | 7,258 | |||||||||||||||||||||||||
Contract liabilities | (97,080 | ) | (109,741 | ) | (52,281 | ) | (8,012 | ) | (109,741 | ) | (52,281 | ) | 4,989 | 784 | ||||||||||||||||||||||
Amounts due to related part ies | (11,972 | ) | 4,309 | (2,325 | ) | (356 | ) | |||||||||||||||||||||||||||||
Amounts due to related parties | 4,309 | (2,325 | ) | 281 | 44 | |||||||||||||||||||||||||||||||
Leasing liabilities | — | (51,370 | ) | (45,682 | ) | (7,001 | ) | (51,370 | ) | (45,682 | ) | (36,066 | ) | (5,660 | ) | |||||||||||||||||||||
Deferred tax liabilities | 84,124 | 98,858 | 14,816 | 2,271 | 98,858 | 14,816 | 34,084 | 5,349 | ||||||||||||||||||||||||||||
Accrued expenses and other liabilities | 16,696 | 93,473 | 221,377 | 33,927 | 93,473 | 221,377 | 129,830 | 20,373 | ||||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | 1,884,956 | (215,522 | ) | 2,206,909 | 338,224 | (215,522 | ) | 2,206,909 | 630,227 | 98,896 | ||||||||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||||||||||
Collection of loans originated and held by the Group | 2,805,940 | 10,520,227 | 12,757,947 | 1,955,240 | 10,520,227 | 12,757,947 | 7,032,972 | 1,103,627 | ||||||||||||||||||||||||||||
Investment in loans originated and held by the Group | (4,331,811 | ) | (12,128,140 | ) | (9,826,856 | ) | (1,506,032 | ) | (12,128,140 | ) | (9,826,856 | ) | (5,809,353 | ) | (911,614 | ) | ||||||||||||||||||||
Investment in convertible loan | — | (20,000 | ) | 0 | 0 | (20,000 | ) | 0 | 0 | 0 | ||||||||||||||||||||||||||
Proceeds from disposal of investments | — | 21,508 | 2,460 | 377 | 21,508 | 2,460 | 0 | 0 | ||||||||||||||||||||||||||||
Purchase of investments | (155,286 | ) | (803,691 | ) | (36,829 | ) | (5,644 | ) | (803,691 | ) | (36,829 | ) | (31,246 | ) | (4,903 | ) | ||||||||||||||||||||
Proceeds from short-term investments | 13,122,058 | 5,532,569 | 6,177,791 | 946,788 | 5,532,569 | 6,177,791 | 13,534,543 | 2,123,865 | ||||||||||||||||||||||||||||
Purchase of short-term investments | (12,799,210 | ) | (3,902,033 | ) | (8,001,000 | ) | (1,226,207 | ) | (3,902,033 | ) | (8,001,000 | ) | (12,676,800 | ) | (1,989,267 | ) | ||||||||||||||||||||
Purchase of property, equipment and software | (83,584 | ) | (48,659 | ) | (11,017 | ) | (1,688 | ) | (48,659 | ) | (11,017 | ) | (55,271 | ) | (8,673 | ) | ||||||||||||||||||||
Acquisition of intangible assets | (5,120 | ) | — | (21,000 | ) | (3,218 | ) | — | (21,000 | ) | 0 | 0 | ||||||||||||||||||||||||
Net cash provided by (used in) investing activities | (1,447,013 | ) | (828,219 | ) | 1,041,496 | 159,616 | (828,219 | ) | 1,041,496 | 1,994,845 | 313,035 | |||||||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||||||||||
Cash received from investors - consolidated trusts | 1,183,580 | 3,437,160 | 766,160 | 117,419 | 3,437,160 | 766,160 | 1,643,572 | 257,911 | ||||||||||||||||||||||||||||
Cash paid to investors - consolidated trusts | (192,840 | ) | (1,488,301 | ) | (2,993,122 | ) | (458,716 | ) | (1,488,301 | ) | (2,993,122 | ) | (1,574,118 | ) | (247,013 | ) | ||||||||||||||||||||
Cash paid for repurchase of preferential beneficiaries of consolidated trusts | (47,173 | ) | (7,948 | ) | 0 | 0 | (7,948 | ) | 0 | 0 | 0 | |||||||||||||||||||||||||
Cash received from short-term borrowings | 87,010 | 235,000 | 0 | 0 | 235,000 | 0 | 0 | 0 | ||||||||||||||||||||||||||||
Repayment of short-term borrowings | (63,685 | ) | (25,000 | ) | (235,000 | ) | (36,015 | ) | (25,000 | ) | (235,000 | ) | 0 | 0 | ||||||||||||||||||||||
Cash paid for dividends | — | (390,715 | ) | (263,569 | ) | (40,394 | ) | (390,715 | ) | (263,569 | ) | (317,569 | ) | (49,834 | ) | |||||||||||||||||||||
Repurchase of ordinary shares | (452,262 | ) | (42,276 | ) | (379,984 | ) | (58,235 | ) | (42,276 | ) | (379,984 | ) | (25,991 | ) | (4,079 | ) | ||||||||||||||||||||
Proceeds from exercise of share—based compensation plans | 14,009 | 31,592 | 6,617 | 1,014 | ||||||||||||||||||||||||||||||||
Proceeds from exercise of share-based compensation plans | 31,592 | 6,617 | 33,339 | 5,232 | ||||||||||||||||||||||||||||||||
Capital injection from non-controlling interest | 1,458 | — | 7,619 | 1,168 | — | 7,619 | 967 | 152 | ||||||||||||||||||||||||||||
Net cash used in ( provided by) financing activities | 530,097 | 1,749,512 | (3,091,279 | ) | (473,759 | ) | ||||||||||||||||||||||||||||||
Net cash provided (used in) by financing activities | 1,749,512 | (3,091,279 | ) | (239,800 | ) | (37,631 | ) | |||||||||||||||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 41,977 | 11,253 | (51,470 | ) | (7,889 | ) | 11,253 | (51,470 | ) | (10,132 | ) | (1,588 | ) | |||||||||||||||||||||||
Net increase in cash, cash equivalents and restricted cash | 1,010,017 | 717,024 | 105,656 | 16,192 | 717,024 | 105,656 | 2,375,140 | 372,712 | ||||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of year | 4,283,704 | 5,293,721 | 6,010,745 | 921,187 | 5,293,721 | 6,010,745 | 6,116,401 | 959,797 | ||||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash at end of year | 5,293,721 | 6,010,745 | 6,116,401 | 937,379 | 6,010,745 | 6,116,401 | 8,491,541 | 1,332,509 | ||||||||||||||||||||||||||||
For the years ended December 31, | For the years ended December 31, | |||||||||||||||||||||||||||||||||||
2018 | 2019 | 2020 | 2019 | 2020 | 2021 | |||||||||||||||||||||||||||||||
RMB | RMB | RMB | US$ Note 2(f) | RMB | RMB | RMB | US$ Note 2(f) | |||||||||||||||||||||||||||||
Supplemental disclosure of cash investing and financing activities | ||||||||||||||||||||||||||||||||||||
Cash paid for interest including interest paid to investors of consolidated trusts | (58,312 | ) | (94,957 | ) | (268,182 | ) | (41,101 | ) | (94,957 | ) | (268,182 | ) | (161,431 | ) | (25,332 | ) | ||||||||||||||||||||
Cash paid for income taxes | (180,233 | ) | (145,825 | ) | (367,004 | ) | (56,246 | ) | (145,825 | ) | (367,004 | ) | (574,939 | ) | (90,220 | ) | ||||||||||||||||||||
Supplemental disclosure of non-cash investing and financing activities | ||||||||||||||||||||||||||||||||||||
Payable for purchase of property, equipment and software | 917 | 292 | 607 | 93 | 292 | 607 | 1,134 | 178 | ||||||||||||||||||||||||||||
Payable for purchase of intangible assets | — | — | 5,000 | 766 | — | 5,000 | 5,000 | 785 | ||||||||||||||||||||||||||||
Payable for repurchase of ordinary shares | — | 4,897 | 9,784 | 1,499 | 4,897 | 9,784 | 21 | 3 | ||||||||||||||||||||||||||||
Receivable from exercise of share-based compensation plans | 788 | 3,938 | 4,668 | 715 | 3,938 | 4,668 | 4,537 | 712 |
As of December 31, | As of December 31, | |||||||||||||||||||||||
2019 | 2020 | 2020 | 2021 | |||||||||||||||||||||
US$ | US$ | |||||||||||||||||||||||
RMB | RMB | Note 2(f) | RMB | RMB | Note 2(f) | |||||||||||||||||||
Cash and cash equivalents | 2,324,542 | 2,632,174 | 403,398 | 2,632,174 | 4,418,127 | 693,301 | ||||||||||||||||||
Restricted cash | 3,686,203 | 3,484,227 | 533,981 | 3,484,227 | 4,073,414 | 639,208 | ||||||||||||||||||
Total cash, cash equivalents and restricted cash | 6,010,745 | 6,116,401 | 937,379 | 6,116,401 | 8,491,541 | 1,332,509 | ||||||||||||||||||
Name | Percentage direct or economic interest | Date of incorporation | Place of incorporation | |||||||||
Subsidiaries | ||||||||||||
FinVolution (HK) Limited (“FinVolution HK”) | 100% | June 12, 2012 | Hong Kong, China | |||||||||
Beijing Prosper Investment Consulting Co., Ltd. (“Beijing Prosper”) | 100% | August 21, 2012 | Beijing, China | |||||||||
Shanghai Guangjian Information Technology Co., Ltd. (“Shanghai Guangjian”) | 100% | June 5, 2017 | Shanghai, China | |||||||||
Shanghai Shanghu Information Technology Co., Ltd. (“Shanghai Shanghu”) Shanghai Manyin Information Technology Co., Ltd. (“Shanghai Manyin”) | 100% | February 12, 2018 | Shanghai, China | |||||||||
Hainan Shanghu Information Technology Co., Ltd. (“Hainan Shanghu”) | 100% | August 1, 2018 | Hainan, China | |||||||||
Consolidated VIEs | ||||||||||||
Beijing Paipairongxin Investment Consulting Co., Ltd. (“ | 100 | % * | June 15, 2012 | Beijing, China | ||||||||
Shanghai Zihe Information Technology Co., Ltd. (“ | 100 | % * | July 6, 2017 | Shanghai, China | ||||||||
Shanghai Nianqiao Technology Co., Ltd. (“ | 100 | % * | August 8, 2018 | Shanghai, China | ||||||||
Shanghai Ledao Technology Co., Ltd. (“ | 100 | % * | January 10, 2019 | Shanghai, China | ||||||||
Chengdu Yougao Information Technology Co., Ltd. (“ | 100 | % * | December 26, 2019 | Chengdu, China | ||||||||
Consolidated VIEs’ principal subsidiaries | ||||||||||||
Shanghai PPDai Financial Information Services Co., Ltd. (“Shanghai PPDai”) | 100 | % * | January 18, 2011 | Shanghai, China | ||||||||
Shanghai Erxu Information Technology Co., Ltd. (“ | 100 | % * | April 28, 2018 | Shanghai, China | ||||||||
Fujian Zhiyun Financing Guarantee Co., Ltd. (“Fujian Zhiyun”) | 100 | % * | November 21, 2019 | Fujian, China |
* | Controlled via contractual relationships |
December 31, 2019 | CECL adoption impact | January 1, 2020 | ||||||||||
Assets | ||||||||||||
Quality assurance receivable | 3,649,642 | (34,998 | ) | 3,614,644 | ||||||||
Loans receivable | 4,808,252 | (303,291 | ) | 4,504,961 | ||||||||
Accounts receivable | 882,305 | (142,077 | ) | 740,228 | ||||||||
Decrease in assets | (480,366 | ) | ||||||||||
Liabilities | ||||||||||||
Quality assurance payable | 4,776,153 | 690,122 | 5,466,275 | * | ||||||||
Increase in liabilities | 690,122 | |||||||||||
Retained earnings | ||||||||||||
Pre-tax decrease in retained earnings | (1,170,488 | ) | ||||||||||
Tax effects | 287,524 | |||||||||||
Net decrease in retained earnings | (882,964 | ) | ||||||||||
As of December 31, | ||||||||
2020 | 2021 | |||||||
RMB | RMB | |||||||
Cash and cash equivalents | 1,660,549 | 2,176,581 | ||||||
Restricted cash | 3,176,799 | 3,691,832 | ||||||
Short-term investments | 1,970,958 | 1,173,523 | ||||||
Accounts receivable and contract assets | 685,556 | 1,805,079 | ||||||
Quality assurance receivable | 1,121,554 | 931,798 | ||||||
Property, equipment and software, net | 67,010 | 43,241 | ||||||
Intangible assets | 35,187 | 35,187 | ||||||
Right of use assets | 54,385 | 48,941 | ||||||
Loans and receivables, net of credit loss allowance for loans receivables | 2,107,837 | 1,696,495 | ||||||
Investments | 888,081 | 820,607 | ||||||
Investment in subsidiaries and VIEs | 48,147 | 70,578 | ||||||
Deferred tax assets | 149,511 | 343,494 | ||||||
Amounts due from Group companies | — | 2,200,275 | ||||||
Prepaid expenses and other assets | 1,002,863 | 1,672,654 | ||||||
Total assets | 12,968,437 | 16,710,285 | ||||||
Payable to platform customers | 103,453 | 81,150 | ||||||
Deferred guarantee income | 1,259,396 | 1,089,503 | ||||||
Expected credit losses for quality assurance commitment | 2,390,501 | 3,188,561 | ||||||
Payroll and welfare payable | 132,955 | 146,697 | ||||||
Taxes payable | 53,552 | 57,237 | ||||||
Funds payable to investors of consolidated trusts | 1,661,841 | 1,795,640 | ||||||
Contract liabilities | — | 6,826 | ||||||
Deferred tax liabilities | 67,217 | 45,656 | ||||||
Leasing liabilities | 42,775 | 33,184 | ||||||
Amounts due to Group companies | 2,151,941 | 4,005,052 | ||||||
Amounts due to related party | 1,984 | 2,265 | ||||||
Accrued expenses and other liabilities | 472,446 | 598,570 | ||||||
Total liabilities | 8,338,061 | 11,050,341 | ||||||
As of December 31, | ||||||||
2019 | 2020 | |||||||
RMB | RMB | |||||||
Cash and cash equivalents | 2,025,233 | 1,660,549 | ||||||
Restricted cash | 2,620,706 | 2,694,514 | ||||||
Short-term investments | — | 1,970,958 | ||||||
Accounts receivable | 846,454 | 685,556 | ||||||
Quality assurance receivable | 3,649,642 | 1,121,554 | ||||||
Property, equipment and software, net | 103,444 | 67,010 | ||||||
Intangible assets | — | 35,187 | ||||||
Right of Use assets | 94,852 | 54,385 | ||||||
Loans and receivables, net of credit loss allowance for loans receivables | 36,344 | 7,679 | ||||||
Investments | 2,306,831 | 1,579,146 | ||||||
Deferred tax assets | 122,920 | 149,511 | ||||||
Contract assets | 20,555 | 0 | ||||||
Prepaid expenses and other assets | 1,290,996 | 970,709 | ||||||
Total assets | 13,117,977 | 10,996,758 | ||||||
Payable to platform customers | 684,630 | 103,453 | ||||||
Quality assurance payable | 4,776,153 | 0 | ||||||
Deferred guarantee income | — | 1,259,396 | ||||||
Expected credit losses for quality assurance commitment | — | 2,390,501 | ||||||
Payroll and welfare payable | 115,540 | 132,955 | ||||||
Taxes payable | 32,468 | 49,556 | ||||||
Short-term borrowings | 85,000 | 0 | ||||||
Contract liabilities | 50,166 | 0 | ||||||
Deferred tax liabilities | 47,117 | 8,320 | ||||||
Leasing liabilities | 84,284 | 42,775 | ||||||
Amounts due to related part y | 3,189,663 | 2,153,925 | ||||||
Accrued expenses and other liabilities | 237,802 | 472,446 | ||||||
Total liabilities | 9,302,823 | 6,613,327 | ||||||
For the years ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
RMB | RMB | RMB | ||||||||||
Third-party revenues | 5,742,868 | 6,993,099 | 8,333,978 | |||||||||
Inter-company revenues | 27,033 | 159,319 | 796,071 | |||||||||
Net revenues | 5,769,901 | 7,152,418 | 9,130,049 | |||||||||
Third-party expenses | (2,213,442 | ) | (2,000,511 | ) | (3,441,504 | ) | ||||||
Inter-company expenses | (1,837,121 | ) | (1,129,163 | ) | (2,545,816 | ) | ||||||
Related party expenses | (43,494 | ) | (10,104 | ) | (7,503 | ) | ||||||
Provision for accounts receivable and contract assets | (258,071 | ) | (116,387 | ) | (134,938 | ) | ||||||
Provision for loans receivable | (257,263 | ) | (302,243 | ) | 32,317 | |||||||
Credit losses for quality assurance commitment | — | (2,007,968 | ) | (1,963,609 | ) | |||||||
Total Operating expenses | (4,609,391 | ) | (5,566,376 | ) | (8,061,053 | ) | ||||||
Loss from subsidiaries and VIEs | (1,128 | ) | (2,372 | ) | (448 | ) | ||||||
Income from operations | 1,159,382 | 1,583,670 | 1,068,548 | |||||||||
Other income, net | 32,435 | 100,830 | 93,674 | |||||||||
Gain from quality assurance | 98,405 | — | — | |||||||||
Realized gain from financial guarantee derivatives | 31,444 | — | — | |||||||||
Fair value change of financial guarantee derivatives | (56,287 | ) | — | — | ||||||||
Profit before income tax expense | 1,265,379 | 1,684,500 | 1,162,222 | |||||||||
Income tax expenses | (268,504 | ) | (319,700 | ) | (144,463 | ) | ||||||
Net profit | 996,875 | 1,364,800 | 1,017,759 | |||||||||
For the years ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
RMB | RMB | RMB | ||||||||||
Cash used in operating activities under service agreements for Inter-company | (239,476 | ) | (2,143,205 | ) | (2,313,224 | ) | ||||||
Cash provided by operating activities under service agreements for Inter-company | 26,225 | 137,624 | 534,988 | |||||||||
Net cash provided by operating activities for Third-party | 209,889 | 2,415,649 | 1,412,435 | |||||||||
Net cash provided by (used in) operating activities | (3,362 | ) | 410,068 | (365,801 | ) | |||||||
Capital contribution to Group companies | — | — | (22,432 | ) | ||||||||
Collection of loans from Group companies | — | — | 389,043 | |||||||||
Cash paid as loans extended to Group companies | — | — | (2,328,235 | ) | ||||||||
Other investing activities | (981,638 | ) | 1,268,657 | 1,668,517 | ||||||||
Net cash provided by (used in) investing activities | (981,638 | ) | 1,268,657 | (293,107 | ) | |||||||
Repayment of loans to Group companies | — | — | (164,719 | ) | ||||||||
Cash received as loans from Group companies | 31,920 | — | 1,785,238 | |||||||||
Other financing activities | 2,000,911 | (2,286,962 | ) | 69,454 | ||||||||
Net cash provided by (used in) financing activities | 2,032,831 | (2,286,962 | ) | 1,689,973 | ||||||||
For the years ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
RMB | RMB | RMB | ||||||||||
Net revenue | 4,250,978 | 4,684,436 | 6,124,129 | |||||||||
Net profit | 1,604,530 | 661,808 | 1,230,402 | |||||||||
Net cash provided by operating activities | 1,356,887 | 74,977 | 467,054 | |||||||||
Net cash used in (provided by) investing activities | (1,031,968 | ) | 367,903 | (672,930 | ) | |||||||
Net cash used in (provided by) financing activities | 1,043,899 | 108,972 | (85,000 | ) | ||||||||
Net decrease (increase) in cash, cash equivalents and restricted cash | 1,368,818 | 551,852 | (290,876 | ) | ||||||||
Cash, cash equivalents and restricted cash at beginning of year | 2,725,269 | 4,094,087 | 4,645,939 | |||||||||
Cash, cash equivalents and restricted cash at end of year | 4,094,087 | 4,645,939 | 4,355,063 | |||||||||
(i) | Cash in quality assurance is cash managed by the Group through designated bank accounts under the new quality assurance program. There is no other use of these funds except for making payments to investors for default loans that are subject to quality assurance protection. As of December 31, |
(ii) | Cash held in escrow accounts that is jointly managed by the Group and institutional funding partners. As of December 31, |
(iii) | Cash received via consolidated trusts that has not yet been distributed. As of December 31, |
(iv) | Cash held in capital verification account under the name of a subsidiary of the Group established in December 2020 as a paid-in capital. As of December 31, |
(v) | Cash received from borrowers that has not yet been disbursed to institutional funding partners. As of December 31, |
(vi) | Cash received from investors or borrowers that has not yet been disbursed, due to a settlement time lag. As of December 31, |
As of December 31, | ||||||||
2020 | 2021 | |||||||
Equity method investments | 129,622 | 132,377 | ||||||
Non-marketable equity investments | 820,893 | 838,740 | ||||||
950,515 | 971,117 | |||||||
As of December 31, | ||||||||
2019 | 2020 | |||||||
Equity method investments | 96,622 | 129,622 | ||||||
Non-marketable equity investments | 856,211 | 820,893 | ||||||
952,833 | 950,515 |
December 31, 2020 | ||||||||||||||||
Level 1 Inputs | Level 2 Inputs | Level 3 Inputs | Balance at Fair value | |||||||||||||
RMB | RMB | RMB | RMB | |||||||||||||
Assets | ||||||||||||||||
Short-term investments | ||||||||||||||||
—wealth management products | 0 | 1,970,958 | 0 | 1,970,958 | ||||||||||||
December 31, 2021 | ||||||||||||||||
Level 1 Inputs | Level 2 Inputs | Level 3 Inputs | Balance at Fair value | |||||||||||||
RMB | RMB | RMB | RMB | |||||||||||||
Assets | ||||||||||||||||
Short-term investments | ||||||||||||||||
—wealth management products | 0 | 1,204,901 | 0 | 1,204,901 | ||||||||||||
For the years ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Upward adjustments | 3,149 | 0— | 0 | |||||||||
Downward adjustments (including impairment) | 0— | (36,600 | ) | 0 | ||||||||
Total unrealized gain (losses) | 3,149 | (36,600 | ) | 0 | ||||||||
As of December 31, | ||||||||
2020 | 2021 | |||||||
Initial cost basis | 854,174 | 872,021 | ||||||
Upward adjustments | 3,319 | 3,319 | ||||||
Downward adjustments (including impairment) | (36,600 | ) | (36,600 | ) | ||||
Total carrying value at the end of the period | 820,893 | 838,740 | ||||||
December 31, 2019 | ||||||||||||||||
Level 1 Inputs | Level 2 Inputs | Level 3 Inputs | Balance at Fair value | |||||||||||||
RMB | RMB | RMB | RMB | |||||||||||||
Assets | ||||||||||||||||
Short-term investments | ||||||||||||||||
—wealth management products | — | 114,560 | — | 114,560 | ||||||||||||
December 31, 2020 | ||||||||||||||||
Level 1 Inputs | Level 2 Inputs | Level 3 Inputs | Balance at Fair value | |||||||||||||
RMB | RMB | RMB | RMB | |||||||||||||
Assets | ||||||||||||||||
Short-term investments | ||||||||||||||||
—wealth management products | 0 | 1,970,958 | 0 | 1,970,958 | ||||||||||||
For the years ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
Upward adjustments | 170 | 3,149 | — | |||||||||
Downward adjustments (including impairment) | — | — | (36,600 | ) | ||||||||
Total unrealized gain (loss es ) | 170 | 3,149 | (36,600 | ) | ||||||||
As of December 31, | ||||||||
2019 | 2020 | |||||||
Initial cost basis | 852,892 | 854,174 | ||||||
Upward adjustments | 3,319 | 3,319 | ||||||
Downward adjustments (including impairment) | — | (36,600 | ) | |||||
Total carrying value at the end of the period | 856,211 | 820,893 | ||||||
For the years ended December 31, | For the years ended December 31, | |||||||||||||||||||||||
2018 | 2019 | 2020 | 2019 | 2020 | 2021 | |||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||||||||||
Interest income | 316,193 | 1,342,289 | 1,341,657 | 1,342,289 | 1,341,657 | 1,290,016 | ||||||||||||||||||
Less: Interest expense | (60,085 | ) | (235,620 | ) | (228,320 | ) | (235,620 | ) | (228,320 | ) | (73,846 | ) | ||||||||||||
Net interest income | 256,108 | 1,106,669 | 1,113,337 | 1,106,669 | 1,113,337 | 1,216,170 | ||||||||||||||||||
Category | Estimated useful life | Residual value | ||||
Office furniture and equipment | 5 years | 5 | % | |||
Computer and electronic equipment | 5 years | 5 | % | |||
Leasehold improvements | shorter of remaining lease period or estimated useful life | NaN | ||||
Software | 5 years | NaN |
For the year ended December 31, | ||||
2019 | ||||
Opening balance | 3,819,379 | |||
Fair value of newly written guarantee and quality assurance obligation | 6,156,826 | |||
Release of guarantee and quality assurance payable upon repayment | (6,718,809 | ) | ||
Contingent liability | 6,409,884 | |||
Payouts during the year | (12,299,134 | ) | ||
Recoveries during the year | 7,408,007 | |||
Ending balance | 4,776,153 | |||
For the years ended December 31, | ||||||||
2018 | 2019 | |||||||
Opening balance | 2,062,844 | 3,819,379 | ||||||
Fair value of newly written guarantee and quality assurance obligation | 5,313,489 | 6,156,826 | ||||||
Release of guarantee and quality assurance payable upon repayment | (4,049,457 | ) | (6,718,809 | ) | ||||
Contingent liability | 3,380,930 | 6,409,884 | ||||||
Payouts during the year | (7,889,277 | ) | (12,299,134 | ) | ||||
Recoveries during the year | 5,000,850 | 7,408,007 | ||||||
Ending balance | 3,819,379 | 4,776,153 | ||||||
Deferred guarantee income: | For the years ended December 31, | |||||||
2020 | 2021 | |||||||
Opening balance upon adoption of ASC Topic 326 (Note 2(b)) | 1,873,254 | 1,259,396 | ||||||
Newly written quality assurance obligations | 2,838,707 | 2,423,619 | ||||||
Release of quality assurance obligations upon repayment | (3,386,032 | ) | (2,593,512 | ) | ||||
Termination of P2P quality assurance obligations* | (66,533 | ) | — | |||||
Ending balance | 1,259,396 | 1,089,503 | ||||||
Expected credit losses for quality assurance commitment: | For the years ended December 31, | |||||||
2020 | 2021 | |||||||
Opening balance upon adoption of ASC Topic 326 (Note 2(b)) | 3,593,021 | 2,390,501 | ||||||
Provision for credit losses of quality assurance obligations | 2,057,558 | 1,904,473 | ||||||
Payouts during the year | (8,297,516 | ) | (7,227,869 | ) | ||||
Recoveries during the year | 5,199,893 | 6,121,456 | ||||||
Termination of P2P quality assurance obligations* | (162,455 | ) | — | |||||
Ending balance | 2,390,501 | 3,188,561 | ||||||
* | In March 2020, the Company early repaid all outstanding loan balance before their maturity for one P2P funding partner as a result of the Group’s decision to discontinue business relationship with online lending information intermediary, which resulted in decrease in guarantee related receivables and liabilities. The overall impact on gain or loss is immaterial. |
For the years ended December 31, | For the years ended December 31, | |||||||||||||||
2019 | 2020 | 2020 | 2021 | |||||||||||||
Quality assurance receivable | 4,459,145 | 1,345,068 | 1,345,068 | 1,171,304 | ||||||||||||
Allowance for credit losses for quality assurance receivable | (809,503 | ) | (223,514 | ) | (223,514 | ) | (239,506 | ) | ||||||||
Quality assurance receivable, net | 3,649,642 | 1,121,554 | 1,121,554 | 931,798 | ||||||||||||
1-89 dayspast due | 90-119 days p ast due | 120-149 days p ast due | 150-179 days p ast due | Total past due | Current | Total quality assurance receivable | ||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New borrowers | 139,398 | 36,630 | 37,113 | 37,017 | 250,158 | 849,189 | 1,099,347 | |||||||||||||||||||||||||||||||||||||||||||||||||
Repeat borrowers | 297,150 | 75,880 | 73,682 | 70,154 | 516,866 | 2,842,932 | 3,359,798 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total | 436,548 | 112,510 | 110,795 | 107,171 | 767,024 | 3,692,121 | 4,459,145 | |||||||||||||||||||||||||||||||||||||||||||||||||
1-89 days past due | 90-119 days past due | 120-149 days past due | 150-179 days past due | Total past due | Current | Total quality assurance receivable | ||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New borrowers | 26,708 | 5,651 | 5,312 | 5,407 | 43,078 | 191,155 | 234,233 | 26,708 | 5,651 | 5,312 | 5,407 | 43,078 | 191,155 | 234,233 | ||||||||||||||||||||||||||||||||||||||||||
Repeat borrowers | 70,819 | 25,745 | 22,647 | 15,388 | 134,599 | 976,236 | 1,110,835 | 70,819 | 25,745 | 22,647 | 15,388 | 134,599 | 976,236 | 1,110,835 | ||||||||||||||||||||||||||||||||||||||||||
Total | 97,527 | 31,396 | 27,959 | 20,795 | 177,677 | 1,167,391 | 1,345,068 | 97,527 | 31,396 | 27,959 | 20,795 | 177,677 | 1,167,391 | 1,345,068 | ||||||||||||||||||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New borrowers | 9,094 | 2,340 | 2,004 | 1,931 | 15,369 | 269,919 | 285,288 | |||||||||||||||||||||||||||||||||||||||||||||||||
Repeat borrowers | 27,695 | 6,771 | 5,935 | 5,616 | 46,017 | 839,999 | 886,016 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total | 36,789 | 9,111 | 7,939 | 7,547 | 61,386 | 1,109,918 | 1,171,304 | |||||||||||||||||||||||||||||||||||||||||||||||||
For the years ended December 31, | ||||||||
2019 | 2020 | |||||||
Beginning balance | 1,097,188 | 809,503 | ||||||
Impact of adoption of ASC 326 (Note 2(b)) | 0 | 34,998 | ||||||
Provision/(reversal) for credit losses | 210,520 | (49,590 | ) | |||||
Write-offs | (498,205 | ) | (571,397 | ) | ||||
Ending balance | 809,503 | 223,514 | ||||||
For the years ended December 31, | ||||||||
2020 | 2021 | |||||||
Beginning balance | 809,503 | 223,514 | ||||||
Impact of adoption of ASC 326 (Note 2(b)) | 34,998 | 0 | ||||||
Provision/(reversal) for credit losses | (49,590 | ) | 59,136 | |||||
Write-offs | (571,397 | ) | (43,144 | ) | ||||
Ending balance | 223,514 | 239,506 | ||||||
For the years ended December 31, 2018 | ||||||||||||
As reported | Amounts without adoption of ASC Topic 606 | Effect of change | ||||||||||
Loan facilitation service fees | 2,919,234 | 2,141,565 | 777,669 | |||||||||
Post-facilitation service fees | 922,797 | 773,116 | 149,681 | |||||||||
Other Revenue | 376,915 | 793,188 | (416,273 | ) | ||||||||
4,218,946 | 3,707,869 | 511,077 | ||||||||||
For the years ended December 31, | ||||||||||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||||||||||
With quality assurance protection | Without quality assurance protection | With quality assurance protection | Without quality assurance protection | With quality assurance protection | Without quality assurance protection | |||||||||||||||||||
Loan facilitation service fees | 2,404,178 | 515,056 | 2,984,063 | 326,812 | 1,908,851 | 0 | ||||||||||||||||||
Post-facilitation service fees | 678,518 | 244,279 | 1,096,660 | 103,713 | 672,981 | 0 | ||||||||||||||||||
Other revenue | ||||||||||||||||||||||||
-investment management fee | 208,471 | — | 109,423 | 0 | 31,767 | 0 | ||||||||||||||||||
-borrowers referral fee | — | 96,167 | 0 | 130,677 | 0 | 290,337 | ||||||||||||||||||
-others | 54,734 | 17,543 | 37,949 | 66,791 | 95,286 | 64,496 | ||||||||||||||||||
Changes in expected discretionary payment to investor reserve fund investors | — | 68,619 | — | — | — | — | ||||||||||||||||||
3,345,901 | 941,664 | 4,228,095 | 627,993 | 2,708,885 | 354,833 | |||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||||||||||
With quality assurance obligation | Without quality assurance obligation | With quality assurance obligation | Without quality assurance obligation | With quality assurance obligation | Without quality assurance obligation | |||||||||||||||||||
Loan facilitation service fees | 2,984,063 | 326,812 | 1,908,851 | — | 3,604,019 | 190,163 | ||||||||||||||||||
Post-facilitation service fees | 1,096,660 | 103,713 | 672,981 | — | 1,287,760 | 21,805 | ||||||||||||||||||
Other revenue | ||||||||||||||||||||||||
-borrowers referral fee | — | 130,677 | — | 290,337 | — | 239,070 | ||||||||||||||||||
-investment management fee | 109,423 | — | 31,767 | — | — | — | ||||||||||||||||||
-others | 37,949 | 66,791 | 95,286 | 64,496 | 105,758 | 211,871 | ||||||||||||||||||
4,228,095 | 627,993 | 2,708,885 | 354,833 | 4,997,537 | 662,909 | |||||||||||||||||||
As of December 31, | ||||||||
2020 | 2021 | |||||||
RMB | RMB | |||||||
Loans | 2,736,894 | 2,410,149 | ||||||
Credit loss allowance for loans receivable | (382,012 | ) | (427,873 | ) | ||||
Loans receivable, net | 2,354,882 | 1,982,276 | ||||||
As of December 31, | ||||||||
2019 | 2020 | |||||||
RMB | RMB | |||||||
Loans | 5,124,376 | 2,736,894 | ||||||
Credit loss allowance for loans receivable | (316,124 | ) | (382,012 | ) | ||||
Loans receivable, net | 4,808,252 | 2,354,882 | ||||||
For the years ended December 31, | For the years ended December 31, | |||||||||||||||||||||||
2018 | 2019 | 2020 | 2019 | 2020 | 2021 | |||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||||||||||
Beginning balance | 47,670 | 74,381 | 316,124 | 74,381 | 316,124 | 382,012 | ||||||||||||||||||
Impact of adoption of ASC 326 (Note 2(b)) | — | — | 303,291 | 0 | 303,291 | 0 | ||||||||||||||||||
Provision for loans receivable | 192,749 | 299,504 | 463,175 | 299,504 | 463,175 | 374,243 | ||||||||||||||||||
Current period write off | (166,038 | ) | (57,761 | ) | (700,578 | ) | (57,761 | ) | (700,578 | ) | (328,382 | ) | ||||||||||||
Ending balance | 74,381 | 316,124 | 382,012 | 316,124 | 382,012 | 427,873 | ||||||||||||||||||
1-89 dayspast due | 90-119 days p ast due | 120-149 days p ast due | 150-179 days p ast due | Total past due | Current | Total loans receivable | ||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New borrowers | 62,534 | 8,954 | 5,927 | 4,813 | 82,228 | 672,052 | 754,280 | |||||||||||||||||||||||||||||||||||||||||||||||||
Repeat borrowers | 220,820 | 42,821 | 39,394 | 35,221 | 338,256 | 4,031,840 | 4,370,096 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total | 283,354 | 51,775 | 45,321 | 40,034 | 420,484 | 4,703,892 | 5,124,376 | |||||||||||||||||||||||||||||||||||||||||||||||||
1-89 dayspast due | 90-119 days past due | 120-149 days past due | 150-179 days past due | Total past due | Current | Total loans receivable | ||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New borrowers | 19,443 | 5,564 | 5,359 | 4,667 | 35,033 | 231,001 | 266,034 | 19,443 | 5,564 | 5,359 | 4,667 | 35,033 | 231,001 | 266,034 | ||||||||||||||||||||||||||||||||||||||||||
Repeat borrowers | 101,880 | 28,994 | 27,251 | 27,449 | 185,574 | 2,285,286 | 2,470,860 | 101,880 | 28,994 | 27,251 | 27,449 | 185,574 | 2,285,286 | 2,470,860 | ||||||||||||||||||||||||||||||||||||||||||
Total | 121,323 | 34,558 | 32,610 | 32,116 | 220,607 | 2,516,287 | 2,736,894 | 121,323 | 34,558 | 32,610 | 32,116 | 220,607 | 2,516,287 | 2,736,894 | ||||||||||||||||||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New borrowers | 31,036 | 8,658 | 9,771 | 7,181 | 56,646 | 251,554 | 308,200 | |||||||||||||||||||||||||||||||||||||||||||||||||
Repeat borrowers | 93,254 | 25,998 | 26,061 | 21,617 | 166,930 | 1,935,019 | 2,101,949 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total | 124,290 | 34,656 | 35,832 | 28,798 | 223,576 | 2,186,573 | 2,410,149 | |||||||||||||||||||||||||||||||||||||||||||||||||
As of December 31, | ||||||||||
2019 | 2020 | |||||||||
RMB | RMB | |||||||||
Restricted cash | 799,646 | 482,285 | ||||||||
Loans and other receivable | 5,092,609 | 2,952,616 | ||||||||
Total assets | 5,892,255 | 3,434,901 | ||||||||
Funds payable to investors of consolidated trusts | 5,887,693 | 3,430,905 | ||||||||
Taxes payable | 4,562 | 3,996 | ||||||||
Total liabilities | 5,892,255 | 3,434,901 | ||||||||
For the years ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
RMB | RMB | RMB | ||||||||||
Net revenue | (164,082 | ) | (243,795 | ) | (287,955 | ) | ||||||
Net profit | — | — | 0— | |||||||||
Net cash used in operating activities | (18,008 | ) | (78,339 | ) | (56,986 | ) | ||||||
Net cash provided by (used in) investing activities | (1,624,784 | ) | (1,290,842 | ) | 3,190,126 | |||||||
Net cash used in (provided by) financing activities | 1,901,684 | 1,865,160 | (3,450,501 | ) | ||||||||
Net decrease (increase) in cash, cash equivalents and restricted cash | 258,892 | 495,979 | (317,361 | ) | ||||||||
Cash, cash equivalents and restricted cash at beginning of year | 44,775 | 303,667 | 799,646 | |||||||||
Cash, cash equivalents and restricted cash at end of year | 303,667 | 799,646 | 482,285 | |||||||||
As of December 31, | ||||||||||||||||
2019 | 2020 | |||||||||||||||
Institutional funding partners | The Group | Institutional funding partners | The Group | |||||||||||||
Principal invested | 3,529,785 | 1,316,130 | 1,571,005 | 642,918 | ||||||||||||
Accrued interest/residual interest | 130,698 | 911,080 | 90,836 | 1,126,146 | ||||||||||||
Total | 3,660,483 | 2,227,210 | 1,661,841 | 1,769,064 | ||||||||||||
As of December 31, | ||||||||
2019 | 2020 | |||||||
RMB | RMB | |||||||
Security deposits 1 | 1,108,146 | 913,605 | ||||||
Prepaid rental and other deposits | 100,125 | 51,512 | ||||||
Prepaid online marketing expenses | 17,701 | 15,956 | ||||||
Advances | 14,220 | 10,455 | ||||||
Convertible loan 2 | 20,000 | — | ||||||
Others | 130,831 | 58,481 | ||||||
1,391,023 | 1,050,009 | |||||||
As of December 31, | ||||||||
2020 | 2021 | |||||||
RMB | RMB | |||||||
Security deposits and other deposits 1 | 965,117 | 1,666,713 | ||||||
Deductible value-added taxes | 20,292 | 105,002 | ||||||
Prepaid online marketing expenses | 15,956 | 33,709 | ||||||
Advances | 10,455 | 15,715 | ||||||
Others | 38,189 | 78,299 | ||||||
1,050,009 | 1,899,438 | |||||||
1 | Security deposits and other deposits primarily includes security deposits and rental deposits. Security deposits were set aside as requested by certain institutional funding partners, held in deposit accounts with the institutional funding partners. |
As of December 31, | ||||||||
2019 | 2020 | |||||||
RMB | RMB | |||||||
Computer and electronic equipment | 166,019 | 173,653 | ||||||
Office furniture and equipment | 15,993 | 17,136 | ||||||
Leasehold improvement | 56,554 | 47,324 | ||||||
Software | 33,797 | 45,582 | ||||||
Total | 272,363 | 283,695 | ||||||
Less: Accumulated depreciation and amortization 1 | (138,039 | ) | (189,819 | ) | ||||
Property, equipment and software, net | 134,324 | 93,876 | ||||||
As of December 31, | ||||||||
2020 | 2021 | |||||||
RMB | RMB | |||||||
Computer and electronic equipment | 173,653 | 231,196 | ||||||
Office furniture and equipment | 17,136 | 22,279 | ||||||
Leasehold improvement | 47,324 | 39,266 | ||||||
Software | 45,582 | 46,752 | ||||||
Total | 283,695 | 339,493 | ||||||
Less: Accumulated depreciation and amortization 1 | (189,819 | ) | (227,096 | ) | ||||
Property, equipment and software, net | 93,876 | 112,397 | ||||||
1 | Depreciation and amortization expenses for the years ended December 31, |
As of December 31, | ||||||||
2019 | 2020 | |||||||
RMB | RMB | |||||||
Micro-Lending License | 63,760 | 63,760 | ||||||
Financing guarantee License 1 | 4,600 | — | ||||||
Factoring License | 265 | 265 | ||||||
Financial Leasing License | 255 | 255 | ||||||
Insurance Brokerage License 2 | — | 34,667 | ||||||
Total | 68,880 | 98,947 | ||||||
Less: Accumulated amortization and impairment | (4,600 | ) | — | |||||
Intangible assets | 64,280 | 98,947 | ||||||
As of December 31, | ||||||||
2020 | 2021 | |||||||
RMB | RMB | |||||||
Micro-Lending License | 63,760 | 63,760 | ||||||
Factoring License | 265 | 265 | ||||||
Financial Leasing License | 255 | 255 | ||||||
Insurance Brokerage License 1 | 34,667 | 34,667 | ||||||
Total | 98,947 | 98,947 | ||||||
Less: Accumulated amortization and impairment | 0 | 0 | ||||||
Intangible assets | 98,947 | 98,947 | ||||||
1 | The Group acquired |
As of December 31, | ||||||||
2019 | 2020 | |||||||
RMB | RMB | |||||||
Accounts receivable | 1,028,004 | 1,052,631 | ||||||
Credit loss allowance for accounts receivable | (145,699 | ) | (188,725 | ) | ||||
Accounts receivable, net | 882,305 | 863,906 | ||||||
As of December 31, | ||||||||
2020 | 2021 | |||||||
RMB | RMB | |||||||
Accounts receivable and contract assets | 1,052,631 | 2,141,542 | ||||||
Credit loss allowance for accounts receivable and contract assets | (188,725 | ) | (250,696 | ) | ||||
Accounts receivable and contract assets, net | 863,906 | 1,890,846 | ||||||
1-89 days past due | 90-119 days p ast due | 120-149 days p ast due | 150-179 days p ast due | Total past due | Current | Total accounts receivable | ||||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||||||
New borrowers | 24,353 | 7,415 | 7,048 | 6,904 | 45,720 | 186,855 | 232,575 | |||||||||||||||||||||
Repeat borrowers | 66,012 | 19,599 | 18,630 | 17,362 | 121,603 | 645,463 | 767,066 | |||||||||||||||||||||
Other | — | — | — | — | — | 28,363 | 28,363 | |||||||||||||||||||||
Total | 90,365 | 27,014 | 25,678 | 24,266 | 167,323 | 860,681 | 1,028,004 | |||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||||
New borrowers | 6,781 | 1,672 | 1,587 | 1,870 | 11,910 | 117,030 | 128,940 | |||||||||||||||||||||
Repeat borrowers | 20,105 | 5,942 | 5,356 | 5,458 | 36,861 | 756,322 | 793,183 | |||||||||||||||||||||
Other | 0 | 0 | 0 | 0 | 0 | 130,508 | 130,508 | |||||||||||||||||||||
Total | 26,886 | 7,614 | 6,943 | 7,328 | 48,771 | 1,003,860 | 1,052,631 | |||||||||||||||||||||
1-89 days past due | 90-119 days past due | 120-149 days past due | 150-179 days past due | Total past due | Current | Total accounts receivable and contract assets | ||||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||||
New borrowers | 6,781 | 1,672 | 1,587 | 1,870 | 11,910 | 117,030 | 128,940 | |||||||||||||||||||||
Repeat borrowers | 20,105 | 5,942 | 5,356 | 5,458 | 36,861 | 756,322 | 793,183 | |||||||||||||||||||||
Other | 0 | 0 | 0 | 0 | 0 | 130,508 | 130,508 | |||||||||||||||||||||
Total | 26,886 | 7,614 | 6,943 | 7,328 | 48,771 | 1,003,860 | 1,052,631 | |||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||
New borrowers | 16,964 | 3,626 | 2,863 | 2,491 | 25,944 | 451,127 | 477,071 | |||||||||||||||||||||
Repeat borrowers | 50,589 | 10,409 | 8,207 | 6,811 | 76,016 | 1,365,710 | 1,441,726 | |||||||||||||||||||||
Other | 0 | 0 | 0 | 0 | 0 | 222,745 | 222,745 | |||||||||||||||||||||
Total | 67,553 | 14,035 | 11,070 | 9,302 | 101,960 | 2,039,582 | 2,141,542 | |||||||||||||||||||||
For the years ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
RMB | RMB | |||||||||||
Beginning balance | — | 50,544 | 145,699 | |||||||||
Impact of adoption of ASC 606 (Note 2(u)) | 16,501 | — | — | |||||||||
Impact of adoption of ASC 326 (Note 2(b)) | — | — | 142,077 | |||||||||
Provision for accounts receivable | 106,652 | 261,882 | 124,661 | |||||||||
Current period write-off | (72,609 | ) | (166,727 | ) | (223,712 | ) | ||||||
Ending balance | 50,544 | 145,699 | 188,725 | |||||||||
As of December 31, | ||||||||
2019 | 2020 | |||||||
RMB | RMB | |||||||
Investment management fee for investment programs | 20,555 | 0 | ||||||
For the years ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
RMB | RMB | |||||||||||
Beginning balance | 50,544 | 145,699 | 188,725 | |||||||||
Impact of adoption of ASC 326 (Note 2(b)) | 0 | 142,077 | 0 | |||||||||
Provision for accounts receivable and contract assets | 261,882 | 124,661 | 139,226 | |||||||||
Current period write-off | (166,727 | ) | (223,712 | ) | (77,255 | ) | ||||||
Ending balance | 145,699 | 188,725 | 250,696 | |||||||||
For the years ended December 31, | ||||||||
2019 | 2020 | |||||||
RMB | RMB | |||||||
Beginning balance | 112,103 | 20,555 | ||||||
Recognition of investment management fee | 109,423 | 0 | ||||||
Recognition of contract acquisition cost | — | 0 | ||||||
Settlement upon maturity of investment programs | (199,189 | ) | (20,555 | ) | ||||
Settlement upon fulfilment of contract | (1,782 | ) | 0 | |||||
Ending balance | 20,555 | 0 | ||||||
As of December 31, | ||||||||
2019 | 2020 | |||||||
RMB | RMB | |||||||
Funds payable to institutional funding partners * | 95,643 | 225,031 | ||||||
Accrued marketing expense | 45,616 | 134,743 | ||||||
Accrued collection service fee | 35,358 | 36,943 | ||||||
Accrued technical services expense | 20,945 | 16,930 | ||||||
Accrued payment channel expenses | 18,620 | 13,212 | ||||||
Accrued professional service fee | 16,270 | 25,503 | ||||||
Others | 55,173 | 56,640 | ||||||
287,625 | 509,002 | |||||||
As of December 31, | ||||||||
2020 | 2021 | |||||||
RMB | RMB | |||||||
Funds payable to institutional funding partners * | 225,031 | 326,914 | ||||||
Accrued marketing expense | 134,743 | 133,399 | ||||||
Accrued collection service fee | 36,943 | 41,654 | ||||||
Accrued technical services expense | 16,930 | 25,988 | ||||||
Accrued payment channel expenses | 13,212 | 21,055 | ||||||
Accrued professional service fee | 25,503 | 25,074 | ||||||
Others | 56,640 | 64,748 | ||||||
509,002 | 638,832 | |||||||
* | The balance of payable mainly includes funds received from borrowers but not yet transferred to the institutional funding partners due to the settlement time lag. |
For the years ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
RMB | RMB | RMB | ||||||||||
Data collection service expense (i) | 109,666 | 43,494 | 10,104 | |||||||||
For the years ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
RMB | RMB | RMB | ||||||||||
Data collection service expense (i) | 43,494 | 10,104 | 7,503 | |||||||||
(i) | PPcredit Data Service (Shanghai) Co., Ltd. (“PPcredit”) was founded in April 2016 by the founders of the Group to provide data collection services. The Group mainly uses PPcredit as a data provider since PPcredit was established. The price for the service is determined based on the price charged by other market participants. |
As of December 31, | ||||||||
2019 | 2020 | |||||||
RMB | RMB | |||||||
PPcredit | 4,309 | 1,984 | ||||||
As of December 31, | ||||||||
2020 | 2021 | |||||||
RMB | RMB | |||||||
PPcredit | 1,984 | 2,265 | ||||||
For the years ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
RMB | RMB | RMB | ||||||||||
Current income tax expenses | 390,080 | 298,096 | 503,139 | |||||||||
Deferred income tax expense | 91,882 | 157,325 | (262,321 | ) | ||||||||
Total | 481,962 | 455,421 | 240,818 | |||||||||
For the years ended December 31, | ||||||||||||
2018 | 2019 | 2020 | ||||||||||
RMB | RMB | RMB | ||||||||||
Current income tax expenses | 94,787 | 390,080 | 298,096 | |||||||||
Deferred income tax expense | 56,419 | 91,882 | 157,325 | |||||||||
Total | 151,206 | 481,962 | 455,421 | |||||||||
For the years ended December 31, | For the years ended December 31, | |||||||||||||||||||||||
2018 | 2019 | 2020 | 2019 | 2020 | 2021 | |||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||||||||||
Statutory tax rate | 25 | % | 25 | % | 25 | % | 25 | % | 25 | % | 25 | % | ||||||||||||
Research and development tax credit | (2 | )% | (3 | )% | (2 | )% | (3 | )% | (2 | )% | (3 | )% | ||||||||||||
Effect of tax holiday | (19 | )% | (7 | )% | (7 | )% | ||||||||||||||||||
Effect of tax holiday* | (7 | )% | (7 | )% | (17 | )% | ||||||||||||||||||
Change in valuation allowance | — | 1 | % | 1 | % | 1 | % | 1 | % | 1 | % | |||||||||||||
Non-deductible expenses | 2 | % | 1 | % | 1 | % | 1 | % | 1 | % | 1 | % | ||||||||||||
Withholding tax | — | — | 1 | % | — | 1 | % | 2 | % | |||||||||||||||
Effective income tax rate | 6 | % | 17 | % | 19 | % | 17 | % | 19 | % | 9 | % | ||||||||||||
* | As Hainan Shanghu obtained software enterprise status in the fourth quarter of 2021, the Group reversed a total of RMB220.2 million tax expenses in the fourth quarter of 2021 including RMB76.1 million related to 2020 and RMB144.1 million related to for the first three quarters of 2021. As Shanghai Shanghu obtained Key Software Enterprise Status in 2020, the Group reversed a total of RMB33.8 million tax expenses related to 2019 in 2020. |
For the years ended December 31, | For the years ended December 31, | |||||||||||||||||||||||
2018 | 2019 | 2020 | 2019 | 2020 | 2021 | |||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||||||||||
Tax holiday effect | 460,333 | 202,923 | 168,677 | 202,923 | 168,677 | 471,798 | ||||||||||||||||||
Net profit per share effect | ||||||||||||||||||||||||
- Basic | 0.31 | 0.13 | 0.11 | 0.13 | 0.11 | 0.33 | ||||||||||||||||||
- Diluted | 0.29 | 0.13 | 0.11 | 0.13 | 0.11 | 0.32 | ||||||||||||||||||
As of December 31, | As of December 31, | |||||||||||||||
2019 | 2020 | 2020 | 2021 | |||||||||||||
RMB | RMB | RMB | RMB | |||||||||||||
Deferred tax assets: | ||||||||||||||||
Timing difference in revenue recognition for transaction service fee | 62,718 | — | ||||||||||||||
Provision for accounts receivable and loans receivable | 49,827 | 77,578 | ||||||||||||||
Timing difference in revenue recognition | — | 244,215 | ||||||||||||||
Provision for accounts receivable and contract assets and loans receivable | 77,578 | 168,398 | ||||||||||||||
Net accumulated losses-carry forward | 15,166 | 69,454 | 69,454 | 117,850 | ||||||||||||
Payroll and welfare payable and other temporary difference | 8,274 | 5,831 | 5,831 | 12,379 | ||||||||||||
Quality assurance obligations | — | 45,128 | 45,128 | 2,016 | ||||||||||||
Less: Valuation allowance | (6,245 | ) | (42,233 | ) | (42,233 | ) | (89,117 | ) | ||||||||
Total deferred tax assets | 129,740 | 155,758 | 155,758 | 455,741 | ||||||||||||
Deferred tax liabilities: | ||||||||||||||||
Quality assurance obligations | (34,367 | ) | — | |||||||||||||
Intangible assets arisen from business combination and asset acquisition | (15,940 | ) | (24,607 | ) | (24,607 | ) | (24,607 | ) | ||||||||
Investor reserve funds | (15,523 | ) | — | |||||||||||||
Unrealized gain in consolidated trusts | (130,009 | ) | (58,897 | ) | (58,897 | ) | (36,989 | ) | ||||||||
Other taxable temporary difference | (3,083 | ) | (2,044 | ) | (2,044 | ) | — | |||||||||
Withholding tax for undistributed earnings | — | (18,000 | ) | (18,000 | ) | (76,036 | ) | |||||||||
Total deferred tax liabilities | (198,922 | ) | (103,548 | ) | (103,548 | ) | (137,632 | ) | ||||||||
For the years ended December 31, | For the years ended December 31, | |||||||||||||||||||||||
2018 | 2019 | 2020 | 2019 | 2020 | 2021 | |||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||||||||||
At beginning of year | 21,538 | 40,143 | 6,245 | 40,143 | 6,245 | 42,233 | ||||||||||||||||||
Current year additions | 22,585 | 741 | 40,054 | 741 | 40,054 | 50,925 | ||||||||||||||||||
Current year reversals | (3,980 | ) | (34,639 | ) | (4,066 | ) | (34,639 | ) | (4,066 | ) | (4,041 | ) | ||||||||||||
At end of year | 40,143 | 6,245 | 42,233 | 6,245 | 42,233 | 89,117 | ||||||||||||||||||
Options Outstanding | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life | Aggregate Intrinsic Value | Options Outstanding | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life | Aggregate Intrinsic Value | |||||||||||||||||||||||||
US$ | US$ | US$ | US$ | |||||||||||||||||||||||||||||
Outstanding at December 31, 2018 | 95,653,205 | 0.2214 | 2.17 | 47,689 | ||||||||||||||||||||||||||||
Granted | 19,275,000 | 0.6540 | — | — | ||||||||||||||||||||||||||||
Canceled/Forfeited | (6,490,415 | ) | 0.5964 | — | — | |||||||||||||||||||||||||||
Exercised | (53,873,360 | ) | 0.0977 | — | — | |||||||||||||||||||||||||||
Outstanding at December 31, 2019 | 54,564,430 | 0.4519 | 2.51 | 4,264 | 54,564,430 | 0.4519 | 2.51 | 4,264 | ||||||||||||||||||||||||
Vested and expected to vest at December 31, 2019 | 53,286,128 | 0.4523 | 2.51 | 4,143 | ||||||||||||||||||||||||||||
Exercisable as of December 31, 2019 | 14,156,930 | 0.3075 | 1.54 | 3,221 | ||||||||||||||||||||||||||||
Granted | 3,035,750 | 0.1111 | — | — | 3,035,750 | 0.1111 | — | — | ||||||||||||||||||||||||
Canceled/Forfeited | (19,350,460 | ) | 0.1327 | — | — | (19,350,460 | ) | 0.1327 | — | — | ||||||||||||||||||||||
Expired | (454,170 | ) | 0.9663 | — | — | (454,170 | ) | 0.9663 | — | — | ||||||||||||||||||||||
Exercised | (11,765,920 | ) | 0.1235 | — | — | (11,765,920 | ) | 0.1235 | — | — | ||||||||||||||||||||||
Outstanding at December 31, 2020 | 26,029,630 | 0.3708 | 1.31 | 5,581 | 26,029,630 | 0.3708 | 1.31 | 5,581 | ||||||||||||||||||||||||
Vested and expected to vest at December 31, 2020 | 25,712,658 | 0.3704 | 1.30 | 5,524 | 25,712,658 | 0.3704 | 1.30 | 5,524 | ||||||||||||||||||||||||
Exercisable as of December 31, 2020 | 17,371,695 | 0.3097 | 0.88 | 4,524 | 17,371,695 | 0.3097 | 0.88 | 4,524 | ||||||||||||||||||||||||
Granted | 0 | 0 | — | — | ||||||||||||||||||||||||||||
Canceled/Forfeited | (1,300,000 | ) | 0.5876 | — | — | |||||||||||||||||||||||||||
Expired | (40,835 | ) | 0.1260 | — | — | |||||||||||||||||||||||||||
Exercised | (17,614,760 | ) | 0.2915 | — | — | |||||||||||||||||||||||||||
Outstanding at December 31, 2021 | 7,074,035 | 0.5331 | 1.24 | 3,607 | ||||||||||||||||||||||||||||
Vested and expected to vest at December 31, 2021 | 7,022,578 | 0.5333 | 1.24 | 3,580 | ||||||||||||||||||||||||||||
Exercisable as of December 31, 2021 | 4,527,920 | 0.4981 | 0.53 | 2,541 |
Options Granted in 2018 | Options Granted in 2019 | Options Granted in 2020 | ||||||||||
RMB | RMB | RMB | ||||||||||
Risk-free interest rate | 2.52%-2.75 | % | 2.62 | % | 0.6 | % | ||||||
Expected life (in years) | 5 | 5 | 5 | |||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | ||||||
Expected volatility | 37.74%-38.74 | % | 38.01 | % | 48.61 | % | ||||||
Exercise multiple | 2.2-2.8 | 2.2-2.8 | 2.8 |
Options Granted in 2019 | Options Granted in 2020 | |||||||
RMB | RMB | |||||||
Risk-free interest rate | 2.62 | % | 0.6 | % | ||||
Expected life (in years) | 5 | 5 | ||||||
Expected dividend yield | 0 | % | 0 | % | ||||
Expected volatility | 38.01 | % | 48.61 | % | ||||
Exercise multiple | 2.2-2.8 | 2.8 |
Number of RSUs | Weighted- averagegrant date fair value | Number of RSUs | Weighted-average grant date fair value | |||||||||||||
US$ | US$ | |||||||||||||||
Unvested at December 31, 2018 | 7,551,480 | 1.4416 | ||||||||||||||
Granted | 9,406,495 | 0.7353 | ||||||||||||||
Vested | (1,534,570 | ) | 1.4645 | |||||||||||||
Canceled/Forfeited | (3,399,610 | ) | 1.0740 | |||||||||||||
Unvested at December 31, 2019 | 12,023,795 | 0.9880 | 12,023,795 | 0.9880 | ||||||||||||
Granted | 71,935,155 | 0.3551 | 71,935,155 | 0.3551 | ||||||||||||
Vested | (3,916,645 | ) | 0.8144 | (3,916,645 | ) | 0.8144 | ||||||||||
Canceled/Forfeited | (4,211,810 | ) | 0.6760 | (4,211,810 | ) | 0.6760 | ||||||||||
Unvested at December 31, 2020 | 75,830,495 | 0.4290 | 75,830,495 | 0.4290 | ||||||||||||
Granted | 22,322,425 | 0.7675 | ||||||||||||||
Vested | (15,183,045 | ) | 0.4803 | |||||||||||||
Canceled/Forfeited | (10,052,130 | ) | 0.4644 | |||||||||||||
Unvested at December 31, 2021 | 72,917,745 | 0.5452 | ||||||||||||||
For the years ended December 31, | For the years ended December 31, | |||||||||||||||||||||||
2018 | 2019 | 2020 | 2019 | 2020 | 2021 | |||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||||||||||
Basic net profit per share calculation: | ||||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||
Net profit attributable to FinVolution Group’s ordinary shareholders | 2,469,074 | 2,372,850 | 1,972,700 | 2,372,850 | 1,972,700 | 2,508,947 | ||||||||||||||||||
Denominator: | ||||||||||||||||||||||||
Weighted average number of ordinary shares outstanding - basic | 1,498,780,165 | 1,525,814,189 | 1,477,162,991 | |||||||||||||||||||||
Weighted average number of ordinary shares outstanding—basic | 1,525,814,189 | 1,477,162,991 | 1,420,870,790 | |||||||||||||||||||||
Net profit per share attributable to FinVolution Group’s ordinary shareholders - basic | 1.65 | 1.56 | 1.34 | |||||||||||||||||||||
Net profit per share attributable to FinVolution Group’s ordinary shareholders—basic | 1.56 | 1.34 | 1.77 | |||||||||||||||||||||
Dilute net profit per share calculation: | ||||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||
Net profit attributable to FinVolution Group’s ordinary shareholders | 2,469,074 | 2,372,850 | 1,972,700 | 2,372,850 | 1,972,700 | 2,508,947 | ||||||||||||||||||
Denominator: | ||||||||||||||||||||||||
Weighted average number of ordinary shares outstanding - basic | 1,498,780,165 | 1,525,814,189 | 1,477,162,991 | |||||||||||||||||||||
Weighted average number of ordinary shares outstanding—basic | 1,525,814,189 | 1,477,162,991 | 1,420,870,790 | |||||||||||||||||||||
Ordinary shares issuable upon the exercise of outstanding stock options using the treasury stock method | 98,670,254 | 23,831,652 | 9,801,862 | 23,831,652 | 9,801,862 | 8,495,974 | ||||||||||||||||||
Ordinary shares issuable upon the vesting of outstanding restricted share units using the treasury stock method | 2,141,812 | 2,777,219 | 4,360,567 | 2,777,219 | 4,360,567 | 53,135,068 | ||||||||||||||||||
Weighted average number of ordinary shares outstanding - diluted | 1,599,592,231 | 1,552,423,060 | 1,491,325,420 | |||||||||||||||||||||
Weighted average number of ordinary shares outstanding—diluted | 1,552,423,060 | 1,491,325,420 | 1,482,501,832 | |||||||||||||||||||||
Net profit per share attributable to FinVolution Group’s ordinary shareholders - diluted | 1.54 | 1.53 | 1.32 | |||||||||||||||||||||
Net profit per share attributable to FinVolution Group’s ordinary shareholders—diluted | 1.53 | 1.32 | 1.69 |
For the years ended December 31, | For the years ended December 31, | |||||||||||||||
2019 | 2020 | 2020 | 2021 | |||||||||||||
RMB | RMB | RMB | RMB | |||||||||||||
Lease cost: | ||||||||||||||||
Amortization of right-of-use | 44,190 | 41,377 | 41,377 | 30,261 | ||||||||||||
Interest of lease liabilities | 5,183 | 3,276 | 3,276 | 1,695 | ||||||||||||
Expenses for short-term leases within 12 months | 1,499 | 7,526 | 7,526 | 5,911 | ||||||||||||
Total lease cost | 50,872 | 52,179 | 52,179 | 37,867 | ||||||||||||
For the years ended December 31, | For the years ended December 31, | |||||||||||||||
2019 | 2020 | 2020 | 2021 | |||||||||||||
RMB | RMB | RMB | RMB | |||||||||||||
Other information: | ||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||||
Operating lease payments | 51,370 | 45,682 | 45,682 | 36,066 | ||||||||||||
As of December 31, | As of December 31, | |||||||||||||||
2019 | 2020 | 2020 | 2021 | |||||||||||||
Weighted-average remaining lease term | ||||||||||||||||
Operating leases | 2.46 years | 1.70 years | 1.70 years | 3.30 years | ||||||||||||
Weighted-average discount rate | ||||||||||||||||
Operating leases | 4.75 | % | 4.75 | % | 4.75 | % | 4.75 | % | ||||||||
For the years ended December 31, | ||||||||
2020 | 2021 | |||||||
RMB | RMB | |||||||
Beginning balance | 95,786 | 54,968 | ||||||
Recognition of additional leasing contract | 559 | 24,431 | ||||||
Amortization of right of use assets | (41,377 | ) | (30,261 | ) | ||||
Ending balance | 54,968 | 49,138 | ||||||
For the years ended December 31, | ||||||||
2020 | 2021 | |||||||
RMB | RMB | |||||||
Beginning balance | 85,143 | 43,296 | ||||||
Recognition of additional leasing contract | 559 | 24,431 | ||||||
Interest of lease liabilities | 3,276 | 1,695 | ||||||
Leasing payment | (45,682 | ) | (36,066 | ) | ||||
Ending balance | 43,296 | 33,356 | ||||||
As of | ||||
December 31, 2021 | ||||
RMB | ||||
2022 | 17,111 | |||
2023 | 6,308 | |||
2024 | 4,476 | |||
2025 | 4,700 | |||
2026 | 3,655 | |||
Total undiscounted lease payments | 36,250 | |||
Less: Imputed interest | (2,894 | ) | ||
Total lease liabilities | 33,356 | |||
For the years ended December 31, | ||||||||
2019 | 2020 | |||||||
RMB | RMB | |||||||
Beginning balance | 127,066 | 95,786 | ||||||
Recognition of additional leasing contract | 12,910 | 559 | ||||||
Amortization of right of use assets | (44,190 | ) | (41,377 | ) | ||||
Ending balance | 95,786 | 54,968 | ||||||
For the years ended December 31, | ||||||||
2019 | 2020 | |||||||
RMB | RMB | |||||||
Beginning balance | 118,420 | 85,143 | ||||||
Recognition of additional leasing contract | 12,910 | 559 | ||||||
Interest of lease liabilities | 5,183 | 3,276 | ||||||
Leasing payment | (51,370 | ) | (45,682 | ) | ||||
Ending balance | 85,143 | 43,296 | ||||||
As of December 31, 2020 | ||||
RMB | ||||
2020 | 0 | |||
2021 | 34,203 | |||
2022 | 11,079 | |||
Total undiscounted lease payments | 45,282 | |||
Less: Imputed interest | (1,986 | ) | ||
Total lease liabilities | 43,296 | |||
i) | VIE Arrangements |
i) | VIE Arrangements (continued) |
ii) | VIE Enforceability |
iii) | Class Action |
iii) | Class Action (continued) |
As of December 31, | ||||||||||||
2019 | 2020 | |||||||||||
RMB | RMB | US$ Note2(f) | ||||||||||
Assets | ||||||||||||
Cash and cash equivalents | 157,143 | 28,435 | 4,358 | |||||||||
Prepaid expenses and other assets | 4,443 | 1,247 | 191 | |||||||||
Investment in and advances to subsidiaries | 8,223,441 | 9,252,605 | 1,418,025 | |||||||||
Total assets | 8,385,027 | 9,282,287 | 1,422,574 | |||||||||
Liabilities and Shareholders’ Equity | ||||||||||||
Accrued expenses and other liabilities | 437,071 | 918,981 | 140,841 | |||||||||
Total liabilities | 437,071 | 918,981 | 140,841 | |||||||||
Shareholders’ equity : | ||||||||||||
Class A ordinary shares (US$0.00001 par value; 10,000,000,000 shares authorized as of December 31, 2019 and 2020; 964,071,169 and 969,071,169 issued as of December 31, 2019 and 2020; 943,436,904 and 824,164,599 outstanding as of December 31, 2019 and 2020) | 64 | 64 | 10 | |||||||||
Class B ordinary shares (US$0.00001 par value; 10,000,000,000 shares authorized as of December 31, 2019 and 2020; 586,000,000 and 581,000,000 issued and outstanding as of December 31, 2019 and 2020) | 39 | 39 | 6 | |||||||||
Additional paid-in capital | 5,640,898 | 5,659,990 | 867,431 | |||||||||
Treasury stock (20,634,265 and 144,906,570 shares as of December 31, 2019 and 2020, respectively) | (47,174 | ) | (401,621 | ) | (61,551 | ) | ||||||
Statutory reserves | 317,198 | 458,058 | 70,200 | |||||||||
Accumulated other comprehensive income | 70,320 | (5,142 | ) | (787 | ) | |||||||
Retained earnings | 1,966,611 | 2,651,918 | 406,424 | |||||||||
Total shareholders’ equity | 7,947,956 | 8,363,306 | 1,281,733 | |||||||||
Total liabilities and shareholders’ equity | 8,385,027 | 9,282,287 | 1,422,574 | |||||||||
As of December 31, | ||||||||||||
2020 | 2021 | |||||||||||
RMB | RMB | US$ Note2(f) | ||||||||||
Assets | ||||||||||||
Cash and cash equivalents | 28,435 | 38,231 | 5,999 | |||||||||
Prepaid expenses and other assets | 1,247 | 2,795 | 439 | |||||||||
Amounts due from Group companies | 1,302,606 | 694,123 | 108,923 | |||||||||
Investment in subsidiaries and VIEs | 7,949,999 | 10,574,557 | 1,659,379 | |||||||||
Total assets | 9,282,287 | 11,309,706 | 1,774,740 | |||||||||
Liabilities and Shareholders’ Equity | ||||||||||||
Accrued expenses and other liabilities | 32,571 | 5,647 | 885 | |||||||||
Contract liability | 3,447 | 1,610 | 253 | |||||||||
Amounts due to Group companies | 882,963 | 647,199 | 101,559 | |||||||||
Total liabilities | 918,981 | 654,456 | 102,697 | |||||||||
Shareholders’ equity : | ||||||||||||
Class A ordinary shares (US$0.00001 par value; 10,000,000,000 shares authorized as of December 31, 2020 and 2021; 969,071,169 and 970,871,169 issued as of December 31, 2020 and 2021; 824,164,599 and 854,591,404 outstanding as of December 31, 2020 and 2021) | 64 | 64 | 10 | |||||||||
Class B ordinary shares (US$0.00001 par value; 10,000,000,000 shares authorized as of December 31, 2020 and 2021; 581,000,000 and 579,200,000 issued and outstanding as of December 31, 2020 and 2021) | 39 | 39 | 6 | |||||||||
Additional paid-in capital | 5,659,990 | 5,694,733 | 893,628 | |||||||||
Treasury stock (144,906,570 and 116,279,765 | (401,621 | ) | (324,171 | ) | (50,870 | ) | ||||||
Statutory reserves | 458,058 | 610,403 | 95,786 | |||||||||
Accumulated other comprehensive income | (5,142 | ) | (16,769 | ) | (2,630 | ) | ||||||
Retained earnings | 2,651,918 | 4,690,951 | 736,113 | |||||||||
Total shareholders’ equity | 8,363,306 | 10,655,250 | 1,672,043 | |||||||||
Total liabilities and shareholders’ equity | 9,282,287 | 11,309,706 | 1,774,740 | |||||||||
For the years ended December 31, | ||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||
RMB | RMB | RMB | US$ Note 2(f) | |||||||||||||
Operating expenses | ||||||||||||||||
General and administrative expenses | (25,590 | ) | (20,720 | ) | (18,617 | ) | (2,921 | ) | ||||||||
Profits from operations | ||||||||||||||||
Other income, net | 7,898 | 2,158 | 1,502 | 236 | ||||||||||||
Income from subsidiaries and VIEs | 2,390,542 | 1,991,262 | 2,526,062 | 396,394 | ||||||||||||
Net profit | 2,372,850 | 1,972,700 | 2,508,947 | 393,709 | ||||||||||||
Net profit attributable to ordinary shareholders | 2,372,850 | 1,972,700 | 2,508,947 | 393,709 | ||||||||||||
For the years ended December 31, | ||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||
RMB | RMB | RMB | US$ Note 2(f) | |||||||||||||
Net cash provided by (used in) operating activities for Third-party | 8,474 | (6,282 | ) | (45,587 | ) | (7,154 | ) | |||||||||
Net cash provided by (used in) operating activities | 8,474 | (6,282 | ) | (45,587 | ) | (7,154 | ) | |||||||||
Collection of loans from Group companies | 86,471 | 557,936 | 846,737 | 132,871 | ||||||||||||
Cash paid as loans extended to Group companies | 0 | 0 | (238,254 | ) | (37,387 | ) | ||||||||||
Net cash provided by (used in) investing activities | 86,471 | 557,936 | 608,483 | 95,484 | ||||||||||||
Repayment of loans to Group companies | 0 | 0 | (839,719 | ) | (131,770 | ) | ||||||||||
Cash received as loans from Group companies | 0 | 0 | 603,955 | 94,774 | ||||||||||||
Other financing activities | (401,400 | ) | (636,936 | ) | (310,221 | ) | (48,681 | ) | ||||||||
Net cash provided by (used in) financing activities | (401,400 | ) | (636,936 | ) | (545,985 | ) | (85,677 | ) | ||||||||
For the years ended December 31, | ||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||
RMB | RMB | RMB | US$ Note 2(f) | |||||||||||||
Operating expenses | ||||||||||||||||
Sales and marketing expenses | (2 | ) | — | 0 | 0 | |||||||||||
General and administrative expenses | (57,448 | ) | (25,590 | ) | (20,720 | ) | (3,176 | ) | ||||||||
Profits from operations | ||||||||||||||||
Other income, net | 21,183 | 7,898 | 2,158 | 331 | ||||||||||||
Share of profit of subsidiaries | 2,505,341 | 2,390,542 | 1,991,262 | 305,173 | ||||||||||||
Net profit | 2,469,074 | 2,372,850 | 1,972,700 | 302,328 | ||||||||||||
Net profit attributable to ordinary shareholders | 2,469,074 | 2,372,850 | 1,972,700 | 302,328 | ||||||||||||
For the years ended December 31, | ||||||||||||||||
2018 | 2019 | 2020 | ||||||||||||||
RMB | RMB | RMB | US$ Note 2(f) | |||||||||||||
Net cash used in ( provided by) operating activities | 12,111 | 8,474 | (6,282 | ) | (963 | ) | ||||||||||
Net cash provided by (used in) investing activities | (69,660 | ) | 86,471 | 557,936 | 85,507 | |||||||||||
Net cash used in financing activities | (438,253 | ) | (401,400 | ) | (636,936 | ) | (97,614 | ) | ||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 22,098 | 2,544 | (43,426 | ) | (6,655 | ) | ||||||||||
Net decrease in cash, cash equivalents and restricted cash | (473,704 | ) | (303,911 | ) | (128,708 | ) | (19,725 | ) | ||||||||
Cash, cash equivalents and restricted cash-beginning of year | 934,758 | 461,054 | 157,143 | 24,083 | ||||||||||||
Cash, cash equivalents and restricted cash-end of year | 461,054 | 157,143 | 28,435 | 4,358 | ||||||||||||