Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2022 shares | |
Document Information Line Items | |
Entity Registrant Name | 9F Inc. |
Document Type | 20-F |
Current Fiscal Year End Date | --12-31 |
Amendment Flag | false |
Entity Central Index Key | 0001619544 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Document Period End Date | Dec. 31, 2022 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | true |
Entity Shell Company | false |
Entity Ex Transition Period | true |
ICFR Auditor Attestation Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-39025 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | Room 1207, Building No. 5, 5 West Laiguangying Road |
Entity Address, Address Line Two | Chaoyang District |
Entity Address, City or Town | Beijing |
Entity Address, Postal Zip Code | 100012 |
Entity Address, Country | CN |
Entity Interactive Data Current | Yes |
Document Financial Statement Error Correction [Flag] | false |
Document Accounting Standard | U.S. GAAP |
Auditor Firm ID | 2388 |
Auditor Name | Wei, Wei & Co., LLP |
Auditor Location | Flushing, New York |
Business Contact [Member] | |
Document Information Line Items | |
Entity Address, Address Line One | Room 1207, Building No. 5, 5 West Laiguangying Road |
Entity Address, Address Line Two | Chaoyang District |
Entity Address, City or Town | Beijing |
Entity Address, Postal Zip Code | 100012 |
Entity Address, Country | CN |
Contact Personnel Name | Li Zhang |
City Area Code | 10 |
Local Phone Number | 8527-6996 |
American depositary shares, each representing 20 Class A ordinary shares | |
Document Information Line Items | |
Trading Symbol | JFU |
Title of 12(b) Security | American depositary shares, each representing 20 Class A ordinary shares |
Security Exchange Name | NASDAQ |
Class A ordinary shares, par value US$0.00001 per share | |
Document Information Line Items | |
Trading Symbol | JFU |
Title of 12(b) Security | Class A ordinary shares, par value US$0.00001 per share |
Security Exchange Name | NASDAQ |
Ordinary Shares | |
Document Information Line Items | |
Entity Common Stock, Shares Outstanding | 235,466,660 |
Class A Ordinary Shares | |
Document Information Line Items | |
Entity Common Stock, Shares Outstanding | 174,304,260 |
Class B Ordinary Shares | |
Document Information Line Items | |
Entity Common Stock, Shares Outstanding | 61,162,400 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Statement of Financial Position [Abstract] | |||
Cash and cash equivalents | ¥ 2,433,279 | $ 352,792 | ¥ 2,443,419 |
Restricted cash | 198,727 | 28,813 | 295,910 |
Term deposits | 232,432 | 33,699 | 83,294 |
Investment in marketable securities | 200,679 | 29,096 | 169,815 |
Accounts receivable, net of allowance for doubtful accounts of RMB1,444,000 and RMB1,444,582 as of December 31, 2021 and 2022, respectively | 92,230 | 13,372 | 83,823 |
Other receivables, net of allowance for doubtful accounts of RMB65,647 and RMB26,861 as of December 31, 2021 and 2022, respectively | 116,225 | 16,851 | 70,601 |
Loan receivables, net of allowance for doubtful accounts of RMB350,425 and RMB441,359 as of December 31, 2021 and 2022, respectively | 146,177 | 21,194 | 260,224 |
Amount due from related party | 41,750 | ||
Prepaid expenses and other assets | 222,736 | 32,294 | 751,878 |
Long-term investments, net | 530,207 | 76,873 | 727,426 |
Operating lease right-of-use assets, net | 8,659 | 1,255 | 18,519 |
Property, equipment and software, net | 69,389 | 10,060 | 43,551 |
Goodwill | 24,730 | 3,586 | 22,117 |
Intangible assets, net | 35,135 | 5,094 | 37,283 |
TOTAL ASSETS | 4,310,605 | 624,979 | 5,049,610 |
Deferred revenue (including deferred revenue of the consolidated VIEs and VIEs’ subsidiaries without recourse to the Group of RMB 46,175 and RMB 8,802 as of December 31, 2021 and 2022, respectively) | 8,955 | 1,298 | 46,970 |
Payroll and welfare payable (including payroll and welfare payable of the consolidated VIEs and VIEs’ subsidiaries without recourse to the Group of RMB 12,054 and RMB 15,685 as of December 31, 2021 and 2022, respectively) | 15,745 | 2,283 | 14,544 |
Income taxes payable (including income taxes payable of the consolidated VIEs and VIEs’ subsidiaries without recourse to the Group of RMB 255,618 and RMB 298,785 as of December 31, 2021 and 2022, respectively) | 303,999 | 44,076 | 281,297 |
Accrued expenses and other liabilities (including accrued expenses and other liabilities of the consolidated VIEs and VIEs’ subsidiaries without recourse to the Group of RMB 138,144 and RMB 76,138 as of December 31, 2021 and 2022, respectively) | 250,346 | 36,297 | 467,248 |
Operating lease liabilities (including operating lease liabilities of the consolidated VIEs and VIEs’ subsidiaries without resource to the Group of RMB 9,700 and RMB 4,918 as of December 31, 2021 and 2022, respectively) | 8,316 | 1,206 | 17,909 |
Amounts due to related parties (including amounts due to related parties of the consolidated VIEs and VIEs’ subsidiaries without recourse to the Group of RMB 23,967 and RMB 991,498 as of December 31, 2021 and 2022, respectively) | 5,142 | 746 | 23,967 |
Deferred tax liabilities (including deferred tax liabilities of the consolidated VIEs and VIEs’ subsidiaries without recourse to the Group of RMB 5,041 and RMB 4,233 as of December 31, 2021 and 2022, respectively) | 7,126 | 1,033 | 7,730 |
TOTAL LIABILITIES | 599,629 | 86,939 | 859,665 |
Commitments and Contingencies (Note 20) | |||
Preferred shares (US$0.00001 par value; 20,000,000 shares authorized as of December 31, 2021 and December 31, 2022; no share issued and outstanding as of December 31, 2021 and 2022) | |||
Class A ordinary shares (US$ 0.00001 par value; 460,000,000 shares authorized; 170,161,275 and 174,304,260 shares issued and outstanding as of December 31,2021 and December 31,2022, respectively) | 1 | 1 | |
Class B ordinary shares (US$ 0.00001 par value; 200,000,000 shares authorized; 61,162,400 and 61,162,400 shares issued and outstanding as of December 31, 2021 and December 31,2022,respectively) | 1 | 1 | |
Additional paid-in capital | 5,786,068 | 838,901 | 5,780,609 |
Statutory reserves | 465,495 | 67,490 | 466,468 |
Deficit | (2,686,354) | (389,485) | (2,057,773) |
Accumulated other comprehensive loss | 90,988 | 13,192 | (55,107) |
Total 9F Inc. shareholders’ equity | 3,656,199 | 530,098 | 4,134,199 |
Non-controlling interest | 54,777 | 7,942 | 55,746 |
Total shareholders’ equity | 3,710,976 | 538,040 | 4,189,945 |
TOTAL LIABILITIES AND SHAREHOLERS’ EQUITY | ¥ 4,310,605 | $ 624,979 | ¥ 5,049,610 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) shares | Dec. 31, 2021 $ / shares |
Allowance for doubtful accounts, accounts receivable (in Dollars and Yuan Renminbi) | ¥ | ¥ 1,444,582 | ¥ 1,444,000 | ||
Allowance for doubtful accounts, other receivable (in Dollars and Yuan Renminbi) | ¥ | 26,861 | 65,647 | ||
Allowance for doubtful accounts, loans receivable (in Dollars and Yuan Renminbi) | ¥ | 441,359 | 350,425 | ||
Accrued expenses and other liabilities (in Dollars and Yuan Renminbi) | ¥ | ||||
Preferred Stock, Per value (in Dollars per share) | $ / shares | $ 0.00001 | $ 0.00001 | ||
Preferred shares, shares authorized | 20,000,000 | 20,000,000 | 20,000,000 | |
Preferred share, shares issued | 0 | 0 | 0 | |
Preferred shares, shares outstanding | 0 | 0 | 0 | |
Common Class A [Member] | ||||
Ordinary shares, par value (in Dollars per share) | $ / shares | $ 0.00001 | 0.00001 | ||
Ordinary shares, shares authorized | 460,000,000 | 460,000,000 | 460,000,000 | |
Ordinary shares, shares issued | 174,304,260 | 174,304,260 | 170,161,275 | |
Ordinary shares, shares outstanding | 174,304,260 | 174,304,260 | 170,161,275 | |
Common Class B [Member] | ||||
Ordinary shares, par value (in Dollars per share) | $ / shares | $ 0.00001 | $ 0.00001 | ||
Ordinary shares, shares authorized | 200,000,000 | 200,000,000 | 200,000,000 | |
Ordinary shares, shares issued | 61,162,400 | 61,162,400 | 61,162,400 | |
Ordinary shares, shares outstanding | 61,162,400 | 61,162,400 | 61,162,400 | |
VIEs | ||||
Deferred revenue (in Dollars and Yuan Renminbi) | $ 8,802 | ¥ 46,175 | ||
Payroll and welfare payable (in Dollars and Yuan Renminbi) | 15,685 | 12,054 | ||
Income taxes payable (in Dollars and Yuan Renminbi) | 298,785 | 255,618 | ||
Accrued expenses and other liabilities (in Dollars and Yuan Renminbi) | 76,138 | 138,144 | ||
Operating lease liabilities (in Dollars and Yuan Renminbi) | 4,918 | 9,700 | ||
Amounts due to related parties (in Dollars and Yuan Renminbi) | 991,498 | 23,967 | ||
Deferred tax liabilities (in Dollars and Yuan Renminbi) | $ 4,233 | ¥ 5,041 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | Dec. 31, 2020 CNY (¥) ¥ / shares shares | |
Revenues: | ||||
Sales income | ¥ 154,906 | $ 22,459 | ¥ 202,960 | ¥ 5,667 |
Cost of goods sold | (46,424) | (6,731) | (59,088) | (3,515) |
Gross Profit | 108,482 | 15,728 | 143,872 | 2,152 |
Total net revenues | 561,667 | 81,433 | 761,451 | 1,256,005 |
Other operating expenses and fees: | ||||
Sales and marketing | (62,243) | (9,024) | (165,477) | (340,769) |
Origination and servicing | (69,018) | (10,007) | (47,094) | (542,259) |
General and administrative | (374,882) | (54,353) | (522,820) | (1,303,833) |
Provision for doubtful contract assets and receivables | (159,380) | (23,108) | (22,423) | (347,803) |
Total operating expenses and fees | (711,947) | (103,223) | (816,902) | (2,538,179) |
Operating Loss | (150,280) | (21,790) | (55,451) | (1,282,174) |
Interest income | 47,587 | 6,899 | 47,511 | 102,425 |
Impairment loss of investments | (181,820) | (26,361) | (27,422) | (462,490) |
Impairment loss of goodwill | (200) | (29) | (50,291) | |
Impairment loss of intangible assets and property, equipment and software | (2,371) | (38,145) | ||
Impairment loss of long term prepayment | (274,996) | (39,871) | ||
Gain recognized on remeasurement of previously held equity interest in acquire | 1,874 | |||
Unrealized loss of investment in marketable securities | (47,998) | (6,959) | (149,071) | |
Loss from disposals of subsidiaries | (7,843) | (1,137) | (4,897) | |
Loss on held-to-maturity investment | (14,096) | |||
Other income, net | 12,804 | 1,856 | 2,355 | 39,112 |
Loss before income tax expense and loss in equity method investments | (602,746) | (87,392) | (201,568) | (1,691,563) |
Income tax expense | (11,623) | (1,685) | (26,735) | (538,322) |
Dividend received from equity method investments | 1,800 | |||
(Loss) income in equity method investments, net of tax of RMB (3,245), RMB (10,669) and RMB12,019 in 2020, 2021 and 2022, respectively | 19,432 | 2,817 | (7,167) | (21,317) |
Net Loss | (594,937) | (86,260) | (233,670) | (2,251,202) |
(Income) loss attributable to the non-controlling interest shareholders | 196 | 28 | (1,238) | (7,693) |
Net loss attributable to 9F Inc. | (594,741) | (86,232) | (234,908) | (2,258,895) |
Net loss attributable to ordinary shareholders | ¥ (594,741) | $ (86,232) | ¥ (234,908) | ¥ (2,258,895) |
Net loss per ordinary share | ||||
Basic and diluted (in Dollars per share and Yuan Renminbi per share) | (per share) | ¥ (2.55) | $ (0.37) | ¥ (1.1) | ¥ (11.37) |
Weighted average number of ordinary shares | ||||
Basic and diluted (in Shares) | shares | 233,216,045 | 233,216,045 | 213,635,470 | 198,596,879 |
Loan facilitation services | ||||
Revenues: | ||||
Total net revenues | ¥ 177,147 | |||
Post-origination services | ||||
Revenues: | ||||
Total net revenues | 35,820 | 5,193 | 39,782 | 859,102 |
Technical services | ||||
Revenues: | ||||
Total net revenues | 327,245 | 47,446 | 417,566 | 38,313 |
Product and Service, Other [Member] | ||||
Revenues: | ||||
Total net revenues | ¥ 43,696 | $ 6,335 | ¥ 101,143 | ¥ 175,776 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parentheticals) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Earnings (loss) in equity method investments, tax | ¥ 12,019 | ¥ (10,669) | ¥ (3,245) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Income Statement [Abstract] | ||||
Net loss | ¥ (594,937) | $ (86,260) | ¥ (233,670) | ¥ (2,251,202) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | 146,098 | 21,182 | (48,154) | (99,173) |
Unrealized loss on available for sale investments, net of tax of nil | ||||
Total comprehensive loss | (448,839) | (65,078) | (281,824) | (2,350,375) |
Total comprehensive (income) loss attributable to the non-controlling interest shareholders | 196 | 28 | (1,238) | (7,693) |
Total comprehensive loss attributable to 9F Inc. | ¥ (448,643) | $ (65,050) | ¥ (283,062) | ¥ (2,358,068) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY ¥ in Thousands, $ in Thousands | Ordinary shares CNY (¥) shares | Additional paid-in capital CNY (¥) | Statutory reserve CNY (¥) | Deficit CNY (¥) | Accumulated other comprehensive income (loss) CNY (¥) | Total 9F Inc. shareholders’ equity CNY (¥) | Non- controlling interest RMB CNY (¥) | CNY (¥) shares | USD ($) shares |
Balance beginning at Dec. 31, 2019 | ¥ 2 | ¥ 5,241,296 | ¥ 459,029 | ¥ 488,236 | ¥ 92,220 | ¥ 6,280,783 | ¥ 47,045 | ¥ 6,327,828 | |
Balance beginning (in Shares) at Dec. 31, 2019 | shares | 195,191,000 | ||||||||
Adoption of new accounting standard | (44,767) | (44,767) | (44,767) | ||||||
Exercise of share options | |||||||||
Exercise of share options (in Shares) | shares | 8,319,681 | ||||||||
Share-based compensation | 290,630 | 290,630 | 290,630 | ||||||
Net loss | (2,258,895) | (2,258,895) | 7,693 | (2,251,202) | |||||
Other comprehensive loss | (99,173) | (99,173) | (99,173) | ||||||
Balance ending (in Shares) at Dec. 31, 2020 | shares | 203,510,681 | ||||||||
Balance ending at Dec. 31, 2020 | ¥ 2 | 5,531,926 | 466,352 | (1,822,749) | (6,953) | 4,168,578 | 54,738 | 4,223,316 | |
Issuance of common stocks in connection with private placements (in Shares) | shares | 20,927,739 | ||||||||
Issuance of common stocks in connection with private placements | 199,197 | 199,197 | 199,197 | ||||||
Purchase of non-controlling interests | (3,285) | (3,285) | (230) | (3,515) | |||||
Exercise of share options | 433 | 433 | ¥ 433 | ||||||
Exercise of share options (in Shares) | shares | 6,885,255 | 6,885,255 | 6,885,255 | ||||||
Share-based compensation | 52,338 | 52,338 | ¥ 52,338 | ||||||
Net loss | (234,908) | (234,908) | 1,238 | (233,670) | |||||
Provision of statutory reserve | 116 | (116) | |||||||
Other comprehensive loss | (48,154) | (48,154) | (48,154) | ||||||
Balance ending (in Shares) at Dec. 31, 2021 | shares | 231,323,675 | ||||||||
Balance ending at Dec. 31, 2021 | ¥ 2 | 5,780,609 | 466,468 | (2,057,773) | (55,107) | 4,134,199 | 55,746 | 4,189,945 | |
Exercise of share options | |||||||||
Exercise of share options (in Shares) | shares | 4,142,985 | 4,142,985 | |||||||
Share-based compensation | 5,459 | 5,459 | ¥ 5,459 | ||||||
(in Shares) | shares | 4,142,985 | ||||||||
Net loss | (594,741) | (594,741) | (196) | (594,937) | $ (86,260) | ||||
Disposal of subsidiaries | (973) | (33,840) | (3) | (34,816) | (770) | (35,586) | |||
Provision of statutory reserve | 7,323 | (7,323) | |||||||
Other comprehensive loss | 146,098 | 146,098 | (3) | 146,095 | |||||
Balance ending (in Shares) at Dec. 31, 2022 | shares | 235,466,660 | ||||||||
Balance ending at Dec. 31, 2022 | ¥ 2 | ¥ 5,786,068 | ¥ 465,495 | ¥ (2,686,354) | ¥ 90,988 | ¥ 3,656,199 | ¥ 54,777 | ¥ 3,710,976 | $ 538,040 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Cash Flows from Operating Activities: | ||||
Net loss | ¥ (594,937) | $ (86,260) | ¥ (233,670) | ¥ (2,251,202) |
Depreciation | 18,767 | 2,721 | 25,137 | 14,500 |
Amortization | 2,233 | 324 | 6,402 | 9,717 |
Share-based compensation | 5,459 | 791 | 52,338 | 290,630 |
Loss from disposal of property and equipment | 75 | 2,534 | ||
Share of loss (income) in equity method investments | (19,432) | (2,817) | 7,167 | 21,317 |
Gain recognized on remeasurement of previously held equity interest in acquire | (1,874) | |||
Unrealized loss of investment in marketable securities | 47,998 | 6,959 | 149,071 | |
Loss from disposals of subsidiaries | (7,843) | (1,137) | 4,897 | |
Impairment loss of equity securities without readily determinable fair value | 164,161 | 23,801 | 23,193 | 282,076 |
Impairment loss of equity method investment | 3,452 | 500 | 4,229 | 179,193 |
Impairment loss of held-to-maturity investment | 14,207 | 2,060 | 1,221 | |
Impairment loss of intangible asset | 17,220 | |||
Impairment loss of property, equipment and software | 2,371 | 20,925 | ||
Loss from disposal of held-to-maturity investment | 14,096 | |||
Loss from disposal of equity method investments | ||||
Gain from disposal of equity securities without readily determinable fair value | (476) | (69) | ||
Dividend received from equity method investments | 1,800 | |||
Dividend income from cost method investment | (2,230) | (323) | ||
Provision for allowance for doubtful accounts | 159,380 | 23,108 | 19,041 | 340,287 |
Impairment loss of long term prepayment | 274,996 | 39,871 | ||
Provision for doubtful contract assets | 3,382 | 18,605 | ||
Impairment of goodwill | 200 | 29 | 50,291 | |
Changes in operating assets and liabilities | ||||
Accounts receivable | (8,990) | (1,303) | (39,967) | 234,860 |
Other receivables | (6,355) | (921) | 59,170 | (55,605) |
Loan receivables | 8,762 | 1,270 | (13,902) | (22,862) |
Contract assets | 6,992 | (335,105) | ||
Prepaid expenses and other assets | 254,145 | 36,848 | 37,214 | 570,392 |
Operating lease right-of-use assets | 9,859 | 1,429 | 10,149 | 93,123 |
Deferred tax assets | 503,987 | |||
Amount due to related parties | (18,824) | (2,729) | (1,322) | (41,323) |
Accrued expenses and other liabilities | (216,903) | (31,448) | (322,953) | (807,117) |
Income tax payable | 22,701 | 3,291 | 26,053 | (65,056) |
Payroll and welfare payable | 1,203 | 177 | (19,996) | (7,106) |
Deferred revenue | (38,015) | (5,512) | (35,673) | (706,263) |
Deferred tax liabilities | (604) | (88) | (1,550) | (7,934) |
Operating lease liabilities | (9,594) | (1,391) | (11,594) | (95,905) |
Net cash (used in) provided by operating activities | 63,320 | 9,181 | (229,724) | (1,744,600) |
Cash Flows from Investing Activities: | ||||
Purchases of property, equipment and software and intangible assets | (44,812) | (6,497) | (7,738) | |
Disposals of property and equipment | 207 | 30 | 43,674 | |
Purchase of term deposits | (227,432) | (32,975) | (109,761) | |
Redemptions of term deposits | 78,294 | 11,352 | 50,467 | 9,675 |
Acquisitions of subsidiaries, net of cash acquired | (2,897) | (420) | (10,828) | |
Purchase of marketable securities | (78,862) | (11,434) | (318,886) | |
Disposals of subsidiaries, net of cash disposed | 22,893 | |||
Purchases of long-term investments | (3,000) | (435) | (38,097) | (469,578) |
Disposal of long-term investments | 51,765 | 7,505 | 22,418 | 31,497 |
Prepayment of investments | ||||
Payments for origination of loans receivable | ||||
Proceeds from collection of loans receivable | 533,959 | |||
Loans to related parties | (51,030) | (7,399) | (41,750) | |
Repayment of loans to related parties | ||||
Capital paid for acquiring non-controlling interest | ||||
Net cash provided by (used in) investing activities | (277,767) | (40,273) | (321,521) | 39,466 |
Cash Flows from Financing Activities: | ||||
Capital contribution by non-controlling shareholders | 12,896 | |||
Net proceeds from issuance of common stocks in connection with private placements | 199,197 | |||
Exercise of share options | 433 | |||
Net cash provided by financing activities | 199,630 | 12,896 | ||
Effect of foreign exchange rate changes on cash, cash equivalent and restricted cash | 107,124 | 15,532 | (26,683) | 212 |
Net increase (decrease) in cash, cash equivalent, and restricted cash | (107,323) | (15,560) | (378,298) | (1,692,026) |
Cash, cash equivalents, and restricted cash at the beginning of the year | 2,739,329 | 397,165 | 3,117,414 | 4,809,440 |
Cash, cash equivalents, and restricted cash at the end of the year | 2,632,006 | 381,605 | 2,739,329 | 3,117,414 |
Supplemental disclosures of cash flow information: | ||||
Cash paid for income taxes | 21,629 | 3,136 | 2,913 | 163,000 |
Cash paid for interest expense | ||||
Reconciliation to amounts on consolidated balance sheets: | ||||
Cash and cash equivalents | 2,433,279 | 352,792 | 2,443,419 | 2,726,712 |
Restricted cash | 198,727 | 28,813 | 295,910 | 390,702 |
Total cash, cash equivalents, and restricted cash | ¥ 2,632,006 | $ 381,605 | ¥ 2,739,329 | ¥ 3,117,414 |
ORGANIZATION AND PRINCIPAL ACTI
ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES 9F Inc. (the “Company” or “9F”) was incorporated under the laws of the Cayman Islands on January 24, 2014. The Company, its subsidiaries, its consolidated variable interest entities (“VIEs”) and VIEs’ subsidiaries (collectively referred to as the “Group”) are digital platform integrating and personalizing financial services in the People’s Republic of China (“PRC”). The Group provides a comprehensive range of financial products and services across online lending, wealth management, and payment facilitation, all integrated under a single digital financial account. In light of the tightening of the RPC regulatory environment, the Group significantly decreased its online lending information intermediary services in 2020 in the PRC and are planning to replace the lost business by developing markets outside the PRC. Prior to the incorporation of the Company, the Group operated its business in China through Jiufu Shuke Technology Group Co, Ltd (“Jiufu Shuke”), formerly known as Jiufu Jinke Holding Group Co, Ltd., as a limited liability company owned by the original shareholders (the “Founders”), Zhenxiang Zhong, Guangwu Gao, and Yifan Ren. On August 25, 2014, Jiufu Shuke became the Group’s consolidated VIEs through the contractual arrangements described below in “Basis of consolidation” in Note 2. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The accompanying consolidated financial statements of the Group have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”). Revenue presentation in the consolidated financial statements and accompanying notes have been retrospectively reclassified to conform to the current period’s presentation. Basis of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries and consolidated VIEs, including the VIEs’ subsidiaries, for which the Group is the primary beneficiary. All transactions and balances among the Company, its subsidiaries, the VIEs and the VIEs’ subsidiaries have been eliminated upon consolidation. As PRC laws and regulations prohibit and restrict foreign ownership of internet value-added businesses, the Group operates its internet related business in the PRC through two PRC domestic companies, Jiufu Shuke and Beijing Puhui Lianyin Information Technology Limited (“Beijing Puhui”), whose equity interests are held by certain management members and the Founders of the Group. The Group established seven wholly-owned foreign invested subsidiaries in the PRC, Beijing Shuzhi Lianyin Technology Co., Ltd (“Beijing Shuzhi Lianyin”), Zhuhai Xiaojin Hulian Technology Co., Ltd (“Xiaojin Hulian”), Zhuhai Wukong Youpin Technology Co., Ltd (“Wukong Youpin”), Qianhai Fuyuan Network Technology (“Qianhai Fuyuan”) Co., Ltd , Beijing Diyi Technology Co., Ltd (“Beijing Diyi”),Shanghai Shuzhi Lianyin Technology Co., Ltd (“Shanghai Shuzhi Lianyin”),Shenzhen Chuangshi Jiyuan Technology Co., Ltd(“Shenzhen Chuangshi”) ,(“Qianhai Fuyuan”, together with Beijing Shuzhi Lianyin,Shanghai Shuzhi Lianyin, Xiaojin Hulian, Beijing Diyi,Shenzhen Chuangshi and Wukong Youpin collectively referred as the “WFOEs”).As PRC laws and regulations prohibit and restrict foreign ownership of internet value-added businesses, the Group operates its internet related business in the PRC through two PRC domestic companies, Jiufu Shuke and Beijing Puhui Lianyin Information Technology Limited (“Beijing Puhui”), whose equity interests are held by certain management members and the Founders of the Group. The Group established four wholly-owned foreign invested subsidiaries in the PRC, Beijing Shuzhi Lianyin Technology Co., Ltd (“Shunzhi Lianyin”), Zhuhai Xiaojin Hulian Technology Co., Ltd (“Xiaojin Hulian”), Zhuhai Wukong Youpin Technology Co., Ltd (“Wukong Youpin”), and Qinghai Fuyuan Network Technology (Shenzhen) Co., Ltd (“Qinghai Fuyuan”, together with Shunzhi Lianyin, Xiaojin Hulian, and Wukong Youpin collectively referred as the “WFOEs”). By entering into a series of agreements (the “VIE Agreements”), the Group, through WFOEs, obtained control over Jiufu Shuke and Beijing Puhui (collectively referred as “VIEs”). The VIE Agreements enable the Group to (1) have power to direct the activities that most significantly affect the economic performance of the VIEs, and (2) receive the economic benefits of the VIEs that could be significant to the VIEs. Accordingly, the Group is considered the primary beneficiary of the VIEs and has consolidated the VIEs’ financial results of operations, assets and liabilities in the Group’s consolidated financial statements. In making the conclusion that the Group is the primary beneficiary of the VIEs, the Group’s rights under the Power of Attorney also provide the Group’s abilities to direct the activities that most significantly impact the VIEs’ economic performance. The Group also believes that this ability to exercise control ensures that the VIEs will continue to execute and renew the Master Exclusive Service Agreement and pay service fees to the Group. By charging service fees to be determined and adjusted at the sole discretion of the Group, and by ensuring that the Master Exclusive Service Agreement is executed and remains effective, the Group has the rights to receive substantially all of the economic benefits from the VIEs. Details of the VIE Agreements, are set forth below: VIE Agreements that were entered to give the Group effective control over the VIEs include: Voting Rights Proxy Agreement and Irrevocable Power of Attorney Under which each shareholder of the VIEs grant to any person designated by WFOEs to act as its attorney-in-fact to exercise all shareholder rights under PRC law and the relevant articles of association, including but not limited to, appointing directors, supervisors and officers of the VIEs as well as the right to sell, transfer, pledge and dispose all or a portion of the equity interest held by such shareholders of the VIEs. The proxy and power of attorney agreements will remain effective as long as WFOEs exist. The shareholders’ of the VIEs do not have the right to terminate the proxy agreements or revoke the appointment of the attorney-in-fact without written consent of the WFOEs. Exclusive Option Agreement Under which each shareholder of the VIEs granted 9F or any third party designated by 9F the exclusive and irrevocable right to purchase from such shareholders of the VIEs, to the extent permitted by PRC law and regulations, all or part of their respective equity interests in the VIEs for a purchase price equal to the registered capital. The shareholders of the VIEs will then return the purchase price to 9F or any third party designated by 9F after the option is exercised. 9F may transfer all or part of its option to a third party at its own option. The VIEs and its shareholders agree that without prior written consent of 9F, they may not transfer or otherwise dispose the equity interests or declare any dividends. The restated option agreement will remain effective until 9F or any third party designated by 9F acquires all equity interest of the VIEs. Spousal Consent The spouse of each shareholder of the VIEs has entered into a spousal consent letter to acknowledge that he or she consents to the disposition of the equity interests held by his or her spouse in the VIEs in accordance with the exclusive option agreement, the power of attorney and the equity pledge agreement regarding VIE structure described above, and any other supplemental agreement(s) may be consented by his or her spouse from time to time. Each such spouse further agrees that he or she will not take any action or raise any claim to interfere with the arrangements contemplated under the mentioned agreements. In addition, each such spouse further acknowledges that any right or interest in the equity interests held by his or her spouse in the VIEs do not constitute property jointly owned with his or her spouse and each such spouse unconditionally and irrevocably waives any right or interest in such equity interests. Loan Agreement Pursuant to the loan agreements between WFOEs and each shareholder of the VIEs, WFOEs extended loans to the shareholders of the VIEs, who had contributed the loan principal to the VIEs as registered capital. The shareholders of VIEs may repay the loans only by transferring their respective equity interests in VIEs to 9F Inc. or its designated person(s) pursuant to the exclusive option agreements. These loan agreements will remain effective until the date of full performance by the parties of their respective obligations thereunder. The VIE Agreements that enables the Group to receive substantially all of their economic benefits include: Equity Interest Pledge Agreement Pursuant to equity interest pledge agreement, each shareholder of the VIEs has pledged all of his or her equity interest held in the VIEs to WFOEs to secure the performance by VIEs and their shareholders of their respective obligations under the contractual arrangements, including the payments due to WFOEs for services provided. In the event that the VIEs breach any obligations under these agreements, WFOEs as the pledgees, will be entitled to request immediate disposal of the pledged equity interests and have priority to be compensated by the proceeds from the disposal of the pledged equity interests. The shareholders of the VIEs shall not transfer their equity interests or create or permit to be created any pledges without the prior written consent of WFOEs. The equity interest pledge agreement will remain valid until the master exclusive service agreement and the relevant exclusive option agreements and proxy and power of attorney agreements, expire or terminate. Master Exclusive Service Agreement Pursuant to exclusive service agreement, WFOEs have the exclusive right to provide the VIEs with technical support, consulting services and other services. WFOEs shall exclusively own any intellectual property arising from the performance of the agreement. During the term of this agreement, the VIEs may not accept any services covered by this agreement provided by any third party. The VIEs agree to pay service fees to WFOEs. The agreement will remain effective unless WFOEs terminate the agreement in writing. Risks in relation to the VIE structure The Group believes that the contractual arrangements with the VIEs and their current shareholders are in compliance with PRC laws and regulations and are legally enforceable. However, uncertainties in the PRC legal system could limit the Group’s ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government could: ● Revoke the business and operating licenses of the Group’s PRC subsidiaries or consolidated affiliated entities; ● Discontinue or restrict the operations of any related-party transactions among the Group’s PRC subsidiaries or consolidated affiliated entities; ● Impose fines or other requirements on the Group’s PRC subsidiaries or consolidated affiliated entities; ● Require the Group’s PRC subsidiaries or consolidated affiliated entities to revise the relevant ownership structure or restructure operations; and/or; ● Restrict or prohibit the Group’s use of the proceeds of the additional public offering to finance the Group’s business and operations in China; ● Shut down the Group’s servers or blocking the Group’s online platform; ● Discontinue or place restrictions or onerous conditions on the Group’s operations; and/or ● Require the Group to undergo a costly and disruptive restructuring. The Group’s ability to conduct its business may be negatively affected if the PRC government were to carry out any of the afore mentioned actions. As a result, the Group may not be able to consolidate the VIEs in its consolidated financial statements as it may los The following table sets forth the assets, liabilities, results of operations and cash flows of the VIEs and their subsidiaries, which are included in the Group’s consolidated financial statements after the elimination of intercompany balances and transactions: As of December 31, As of December 31, 2021 2022 RMB RMB Assets: Cash and cash equivalents 1,436,350 1,763,619 Term deposits 85,000 5,000 Investment in marketable securities 78,725 58,384 Accounts receivable, net 79,605 69,549 Other receivables, net 34,439 99,494 Loan receivables, net 234,750 111,306 Amounts due from related parties 41,750 1,425 Prepaid expenses and other assets 705,528 210,450 Contracts assets, net — — Long-term investments, net 490,314 457,757 Operating lease right-of-use assets, net 10,602 5,423 Property, equipment and software, net 32,593 60,254 Goodwill 72,304 21,932 Intangible assets, net 37,386 16,933 Total assets 3,339,346 2,881,526 Liabilities: Deferred revenue 46,175 8,802 Payroll and welfare payable 12,054 15,685 Income taxes payable 255,618 298,785 Accrued expenses and other liabilities 138,144 76,138 Operating lease liabilities 9,700 4,918 Amounts due to related parties 23,967 991,498 Deferred tax liabilities 5,041 4,233 Total liabilities 490,699 1,400,059 For the years ended December 31, 2020 2021 2022 RMB RMB RMB Net revenues 1,145,210 701,329 535,149 Net (loss) (1,479,883 ) (154,732 ) (357,418 ) For the years ended December 31, 2020 2021 2022 RMB RMB RMB Net cash provided by (used in) operating activities (753,416 ) 1,014,571 251,106 Net cash used in investing activities (511,832 ) (51,410 ) 76,163 Net cash provided by (used in) financing activities — 3,305 — Under the VIE Arrangements, the Group has the power to direct activities of the VIEs and can have assets transferred out of the VIEs. Therefore, the Group considers that there is no asset in the VIEs that can be used only to settle obligations of the VIEs, except for assets that correspond to the amount of the registered capital and PRC statutory reserves, if any. As the VIEs are incorporated as limited liability companies under the Company Law of the PRC, creditors of the VIEs do not have recourse to the general credit of the Group for any of the liabilities of the VIEs. Currently there is no contractual arrangement which requires the Group to provide additional financial support to the VIEs. However, as the Group conducts its businesses primarily based on the licenses held by the VIEs, the Group has provided and will continue to provide financial support to the VIEs. Revenue-producing assets held by the VIEs include certain internet content provision (“ICP”) licenses and other licenses, domain names and trademarks. The ICP licenses and other licenses are required under relevant PRC laws, rules and regulations for the operation of internet businesses in the PRC, and therefore are integral to the Group’s operations. The ICP licenses require that core PRC trademark registrations and domain names are held by the VIEs that provide the relevant services. The VIEs contributed an aggregate of 92.10% and 94.89% of the consolidated net revenues for the years ended December 31, 2021 and 2022, respectively. The rest of revenue are from South Asia and HK. As of December 31, 2021 and 2022, the VIEs accounted for an aggregate of 66.16% and 66.66%, respectively, of the consolidated total assets, and 57.08% and 233.49%, respectively, of the consolidated total liabilities. The assets that were not associated with the VIEs primarily consist of cash and cash equivalents. Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from such estimates. Significant accounting estimates reflected in the Group’s financial statements are estimates and judgments applied in revenue recognition, allowance for receivables, impairment loss of investments, share-based compensation and realization of deferred tax assets. Actual results may differ materially from these estimates. Revenue recognition The Group follows the Financial Accounting Standards Board (FASB) Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers The core principle of Topic 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Online Lending Information Intermediary Services revenue Through its online platform, the Group provides intermediary services for the personal financing product, One Card, under which the holders of One Card could apply for loans on a revolving basis (“revolving loan products”). The Group also provides one-time loan facilitation services to meet various consumption needs (“non-revolving loan products”). For revolving loan products and non-revolving loan products, the Group’s services provided consisted of: a) Matching marketplace investors to potential qualified borrowers and facilitating the execution of loan agreements between the parties (referred to as “loan facilitation service”); and b) Providing repayment processing services for the marketplace investors and borrowers over the loan term, including repayment reminders and following up on late repayments (referred to as “post origination services”). The Group has determined that it is not the legal lender or borrower in the loan origination and repayment process, but acting as an intermediary to bring the lender and the borrower together. Therefore, the Group does not record loans receivable or payable arising from the loans facilitated between the investors and borrowers on its platform. The Group considered its customers to be both the investors and borrowers. The Group considered the loan facilitation services and post origination services as two separate services, which represented two separate performance obligations under Topic 606, as these two deliverables are distinct in that customers could benefit from each service on its own and the Group’s promises to deliver the services are separately identifiable from each other in the contract. The Group determined the total transaction price to be the service fees chargeable from the borrowers and investors. The transaction price was allocated to the loan facilitation services and post origination services using their relative standalone selling prices consistent with the guidance in Topic 606. The Group did not have observable standalone selling price information for the loan facilitation services or post origination services because it does not provide loan facilitation services or post origination services on a standalone basis. There was no direct observable standalone selling prices for similar services in the market that was reasonably available to the Group. As a result, the Group used an expected plus margin approach to estimate the standalone selling prices of loan facilitation services and post origination services as the basis of revenue allocation, which involved significant judgements. In estimating its standalone selling price for the loan facilitation services and post origination services, the Group considered the cost incurred to deliver such services, profit margin for similar arrangements, customer demand, effect of competitors on the Group’s services, and other market factors. For each type of service, the Group recognized revenue when (or as) it satisfied the service/performance obligation by transferring a promised good or service (that is, an asset) to a customer. Revenues from loan facilitation services were recognized at the time a loan was originated between the investor and the borrower and the principal loan balance was transferred to the borrower, at which time the loan facilitation service was considered completed. Revenues from post origination services are recognized on a straight-line basis over the term of the underlying loans as the services are provided ratably on a monthly basis. The majority of the service fees are charged to the borrowers, which is collected upfront at the loan inception or collected over the loan term. Investor paid service fees to the Group either at the beginning and at the end of the investment commitment period (in terms of automated investing tools) or over the terms of the loan (in terms of self-directing investing tools). In 2020, service fees charged at the beginning or at the end of the investment commitment period or over the terms of the loans in the periods presented are calculated to be equal to an annualized interest rate ranging from 0.5% to 1.5% based on the investment amount and the investment term. Service fees charged to borrowers and investors, including the service fees charged to investors collected at the end of the investment commitment period or over the terms of the loans in the periods presented, are combined as contract price to be allocated to the two performance obligations relating to loan facilitation services and post-origination services, and recognized as revenue when the relevant services are delivered. Revenue recognized related to service fees not yet received from investors that will be collected at the end of the investment commitment period and over the commitment period are recorded as accounts receivable. All service fees are fixed and not refundable. Revenue recognized is recorded net of value added tax (“VAT”). Remaining performance obligations represent the amount of the transaction price for which service has not been performed under post-origination services. In December 2020, the Group ceased publishing information relating to new offerings of investment opportunities in fixed income products for investors on its online lending information intermediary platform. Pursuant to certain collaboration arrangements entered into by the Group and a licensed asset management company, the rights of investors in existing loans underlying the fixed income products were transferred to the asset management company. After such transfer, the outstanding balance of loans facilitated became nil and loan facilitation services were nil in 2021 and 2022, and the asset management company provided the existing investors with services in relation to the return of their remaining investment in loans. Direct lending program revenue Through its direct lending program, the Group provides traffic referral services to financial institution partners, allowing the financial institution partners to gain access to borrowers who passed the Group’s risk assessment. The Group’s services provided consist of: a) Matching financial institution partners to potential qualified borrowers, and facilitating the execution of loan agreements between the parties (also referred to as “loan facilitation service”); and b) Providing repayment processing services for the financial institution partners and borrowers over the loan term, including repayment reminders and loan collection (also referred to as “post origination services”). Consistent with the revenue recognition policy under the online lending information intermediary services model, the Group has determined that it is not the legal lender or borrower in the loan origination and repayment process, but acting as an intermediary to bring the lender and the borrower together. Therefore, the Group does not record the loans receivable or payable arising from the loans facilitated between the financial institution partners and borrowers. The Group considers its customers to be both the financial institution partners and borrowers. The Group considers the loan facilitation service and post origination service as two separate performance obligations. The Group determines the total transaction price to be the service fees chargeable from the borrowers or the financial institution partners, which is the contracted price adjusted for variable consideration such as potential loan prepayment by the borrowers that could reduce the total transaction price, which is estimated using the expected value approach based on historical data and current trends of prepayments of the borrowers. Then the transaction price is allocated to the loan facilitation services and post origination services using their relative standalone selling prices consistent with the guidance in Topic 606, similar to online lending information intermediary services revenue. For each type of service, the Group recognizes revenue when (or as) the entity satisfies the service/performance obligation by transferring the promised service to customers. Revenues from loan facilitation services are recognized at the time a loan is originated between the financial institution partners and the borrowers and the principal loan balance is transferred to the borrowers, at which time the facilitation service is considered completed. Revenues from post origination services are recognized on a straight-line basis over the term of the underlying loans as the services are provided ratably on a monthly basis. Sales income Sales income from sales of the Group’s products to end customers directly through the Group’s online stores run on third party e-commerce platforms with a platform service agreement. Under the platform service agreement, the Group sets up online stores on the platforms to sell the Group’s products to end customers. The platforms provide services to support the operations of the online store including processing sales orders and collecting from end customers. The platforms charge the Group service fees based on the Group’s sales through the online stores. The Group enters sale contracts directly with the end customers. The platforms do not take control of the goods and do not include sales contracts with end customers. The Group is responsible for selling and fulfilling all obligations according to its sales contracts with end customers, including delivering products and providing customer support. Accordingly, the Group determined the end customers (as opposed to the platforms) as its customers. The sales contracts with end customers normally include a customer’s right to return products within 7 days after receipt of goods. If customers report defects after receipt but are still within the warranty period (varies from 6 months to 24 months), we will have the defective goods repaired, replaced or take another appropriate action to compensate timely, specifically, the Group should take action in 48 hours. The total amount of returned goods actually occurred in 2022 years is not material, the Group will do not estimate warranty obligation in 2022 years. The Group identifies its performance obligation to transfer control of the products ordered on the e-commerce platform to the customers. Contracts with customers may include multiple performance obligations if there is a need to separate one order into multiple deliveries. In those scenarios, transaction prices will be allocated to different performance obligations based on relative standalone selling prices. The Group recognizes sales income upon delivery of the product to end customers in an amount equal to the contract sales prices less estimated sales allowances for sales returns and sales incentives. Estimated sales allowances for sales returns, rebates, incentives and price protection are made based on contract terms and historical patterns. Subsequently, RMB1, RMB89 and RMB874 were returned to the Group for the years ended December 31, 2020, 2021 and 2022, respectively. Technical services The Group offers technical services to customers including technology empowerment services, operation and marketing services, customized software development, etc. Technology empowerment services to customers with respect to user acquisition, risk management, consumption scenario perceptions and comprehension and data modeling. Technical services generate revenues primarily from fixed-price short-term contracts from technology empowerment services, operations and marketing support services and is generally recognized over time on a ratable basis. Revenue generated from technology customized software development is recognized when control over the customized software has been transferred to the customer. Other revenues Other revenues mainly include wealth management services, customer referral and government subsidy income, etc. Wealth management services generate revenues from Internet Securities Services, Insurance Brokerage Services and Small consumptive business in Southeast Asia. The Group offers convenient and effective global asset allocation services, especially offshore securities investment services and IPO subscription service charge income, to individual investors so as to connect them with Hong Kong and U.S. stock markets. Internet Securities Services generates revenue from commissions through customers’ transactions in stocks by providing brokerage services for its customers. The Group enters into insurance brokerage service contracts with insurance companies with a pre-agreed commission. The commissions are normally calculated as a percentage (which varies depending on the type of insurance products involved) of the premium paid to the insurance companies from sales facilitated by the group\. For insurance brokerage services, the single performance obligation identified is to provide facilitation service to the insurance companies. For each type of wealth management services, the Group recognizes revenue when (or as) the entity satisfies the service/performance obligation by transferring the promised service to customers. The Internet Securities Service is recognized at a point in time on the trade date when the performance obligation is satisfied. The brokerage service commissions are earned when each individual service is completed. Value added taxes (“VAT”) The Group is subject to value added tax, or VAT, at a rate of 16% from May 1, 2018 to March 31, 2019 and 13% thereafter on sales of products, and at a rate of 6% on services rendered by the Group, less any deductible VAT the Group has already paid or borne, except for entities qualified as small-scale taxpayers at a VAT rate of 3% without any deduction. Since April 1, 2019, the Group has been subject to an additional 10% deductible VAT. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. VAT is reported as a deduction to revenue when incurred and amounted payable to RMB52,697, and RMB32,338 for the years ended December 31, 2021 and 2022, respectively. The net VAT balance between input VAT and output VAT is recorded as accrued expenses and other liabilities on the face of balance sheet. Disaggregation of revenues The Group generates revenues primarily from loan facilitation and post-origination services provided to investors, borrowers and financial institution partners through its online lending information intermediary services and direct lending program. The Group generates revenues from sales income and technical services provided to customers. The Group also recognizes other revenues, such as customer referrals and government subsidy income, etc. The following table provides further disaggregation by types of revenues recognized for year ended December 31,2020, 2021 and 2022: Loan Post facilitation origination Sales Technical Other 2020 services services income services revenues Total RMB RMB RMB RMB RMB RMB Online lending platform revenue Revolving loan products 26,376 203,748 — — — 230,124 Non-revolving loan products 84,485 202,097 — — — 286,582 Direct lending program revenue 66,286 453,257 — — — 519,543 Other revenue — — 5,667 38,313 175,776 219,756 Total 177,147 859,102 5,667 38,313 175,776 1,256,005 Loan Post facilitation origination Sales Technical Other 2021 services services income services revenues Total RMB RMB RMB RMB RMB RMB Online lending platform revenue Revolving loan products — 30,604 — — — 30,604 Non-revolving loan products — — — — — — Direct lending program revenue — 9,178 — — — 9,178 Other revenue — — 202,960 417,566 101,143 721,669 Total — 39,782 202,960 417,566 101,143 761,451 Loan Post facilitation origination Sales Technical Other 2022 services services income services revenues Total RMB RMB RMB RMB RMB RMB Online lending platform revenue Revolving loan products — 35,820 — — — 35,820 Other revenue — — 154,906 327,245 43,696 525,847 Total — 35,820 154,906 327,245 43,696 561,667 The Group manages its business through a comprehensive offering of financial products and services tailored to the needs of the investors, borrowers and customers. These financial products are categorized by the Group as Online Lending platform revenue, sales income, technical services and others. The following table illustrates the disaggregation of revenues by product offering in 2020, 2021 and 2022: December 31, December 31, December 31, 2020 2021 2022 Loan product revenue 847,576 — — Facilitation/post 188,673 39,782 35,820 Sales income 5,667 202,960 154,906 Technical services 38,313 417,566 327,245 Others 175,776 101,143 43,696 1,256,005 761,451 561,667 Loan products In 2020, 2021 and 2022, loan products represented product offerings tailored to the needs of the borrowers. Loan product revenues in the above table represented the portion of the service fees that were charged to borrowers through the Group’s online lending information intermediary services or financial institution partners under direct lending program business Deferred Revenue Deferred revenue consists of post origination service fees received from borrowers, investors and financial institution partners for which services have not yet been provided. Deferred revenues are recognized ratably |
BUSINESS ACQUISITIONS
BUSINESS ACQUISITIONS | 12 Months Ended |
Dec. 31, 2022 | |
Business Acquisitions [Abstract] | |
BUSINESS ACQUISITIONS | 3. BUSINESS ACQUISITIONS In 2022, the Group purchased Lion Global Financial Limited for consideration of RMB5,811. Based on a valuation performed by the Group with the assistance of a third-party valuation expert, the purchase price has been allocated to the fair value. Neither the results of operations since the acquisition date nor the pro forma results of operations of the acquiree were presented because the effects of this business combinations was not significant to the Group’s consolidated results of operations. |
LOANS RECEIVABLE, NET
LOANS RECEIVABLE, NET | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
LOANS RECEIVABLE, NET | 4. LOANS RECEIVABLE, NET December 31, December 31, 2021 2022 Loans receivable 289,705 587,624 Less: allowance for doubtful accounts (29,481 ) (441,447 ) Total 260,224 146,177 The Group entered into several loan agreements with certain third-party post loan service companies. As of December 31, 2022, the Group had RMB146 million loans receivable outstanding, with terms ranging from 6 to 48 months with interest at nil As of December 31, 2022, the Group has a RMB441.4 million allowances for uncollectable loans receivable, respectively. Interest-earning loan receivables are on non-accrual status if loans are past due for more than 90 days. As of December 31, 2021 and December 31, 2022, RMB23,000 and RMB25,000 loan receivables were on non-accrual status. The following table sets forth the aging of loans as of December 31,2021 and December 31,2022: 1 - 89 days 90 days or Total past past due more past due due Current Total loans December 31, 2021 — 23,000 23,000 266,705 289,705 December 31, 2022 1,700 348,264 349,964 237,660 587,624 |
PREPAID EXPENSES AND OTHER ASSE
PREPAID EXPENSES AND OTHER ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
Prepaid And Other Assets Disclosure [Abstract] | |
PREPAID EXPENSES AND OTHER ASSETS | 5. PREPAID EXPENSES AND OTHER ASSETS December 31, December 31, 2021 2022 Deposits(i) 68,219 127 Advances to suppliers 19,732 9,971 Prepaid taxes (ii) 304,278 203,661 Prepaid service fee 36,306 7,429 Prepaid investment 304,996 — Others 22,347 5,548 Less: Allowance for doubtful accounts (4,000 ) (4,000 ) Total 751,878 222,736 (i) Deposits mainly include rent deposits and deposits to third-party vendors. (ii) Prepaid taxes were the deductible VAT which can be deducted in the future. |
FAIR VALUE OF ASSETS AND LIABIL
FAIR VALUE OF ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF ASSETS AND LIABILITIES | 6. FAIR VALUE OF ASSETS AND LIABILITIES For a description of the fair value hierarchy and the Group’s fair value methodologies, see “Note 2—Summary of Significant Accounting Policies.” Financial instruments recorded at fair value Assets and Liabilities Recorded at Fair Value. The Group does not have assets or liabilities measured at fair value on a non-recurring basis. The following tables present the fair value hierarchy for assets and liabilities measured at fair value on a recurring basis subsequent to initial recognition: Total December 31, 2021 Level 1 Level 2 Level 3 Fair Value RMB RMB RMB RMB Assets Long-term investments — — 413,959 413,959 Investment in marketable securities 169,815 — — 169,815 Total Assets 169,815 — 413,959 583,774 December 31, 2022 Assets Long-term investments — — 431,301 431,301 Investment in marketable securities 200,679 — — 200,679 Total Assets 200,679 — 431,301 631,980 Financial Instruments Not Recorded at Fair Value Financial instruments, including cash and cash equivalents, restricted cash, term deposits, accounts receivable, other receivables, loan receivables, prepaid expenses and other assets, accrued expenses and other liabilities and amounts due from/to related parties are not recorded at fair value. The fair values of these financial instruments, other than loans receivable, approximate their carrying value reported in the consolidated balance sheets due to the short-term nature of these assets and liabilities. |
LONG-TERM INVESTMENTS
LONG-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
LONG-TERM INVESTMENTS | 7. LONG-TERM INVESTMENTS Equity securities Equity Available for sales Held-to- fair value investments investment investment Total RMB RMB RMB RMB Balance at December 31, 2019 543,178 206,823 10,443 15,200 775,644 Additions 396,549 53,929 — 19,100 469,578 Disposals (5,000 ) — (10,443 ) — (15,443 ) Share of (loss) in equity method investments — (21,317 ) — — (21,317 ) Impairment charges (282,076 ) (179,193 ) — (1,221 ) (462,490 ) Impact of exchange rate (4,949 ) (2,751 ) — (7,700 ) Balance at December 31, 2020 647,702 57,491 — 33,079 738,272 Additions 97 19,971 — 38,000 58,068 Disposals — (7,652 ) — (18,983 ) (26,635 ) Loss in held-to-maturity investment — — — (14,096 ) (14,096 ) Share of (loss) in equity method investments — (7,167 ) — — (7,167 ) Impairment charges (23,193 ) (4,229 ) — — (27,422 ) Impact of exchange rate 6,787 (381 ) — — 6,406 Balance at December 31, 2021 631,393 58,033 38,000 727,426 Additions — 3,000 14,207 17,207 Disposal — (14,738 ) (38,000 ) (52,738 ) Loss in held-to-maturity investment — — — — Share of income in equity method investments — 19,432 — 19,432 Impairment charges (164,161 ) (3,452 ) (14,207 ) (181,820 ) Impact of accounting method changes (361,100 ) 361,100 — — Impact of exchange rate (3,622 ) 4,322 — 700 Balance at December 31, 2022 102,510 427,697 — 530,207 Equity securities without readily determinable fair value The following table sets forth the Group’s equity securities without readily determinable fair value: December 31, December 31, 2021 2022 RMB RMB EZhou Rural Commercial Bank 40,000 40,000 BitPay, Inc. (Delaware)(i) 25,490 27,589 Zhuhai Yuanxin investment partnership (limited partnership(“ZhuhaiYuanxin”) 15,000 — Ningbo Weilie investment management partnership (limited partnership) (“NingboWeilie”) (ii) 20,000 20,000 Shanghai Xinzheng Financial Information Consulting Co., Ltd. (iii) 129,786 — Hubei Consumption Financial Company (“Hubei Consumption”) 361,100 — Others 40,017 14,921 Total 631,393 102,510 (i) In March 2018, the Group acquired a 1.11% of equity interest in BitPay, Inc. (Delaware) for a cash consideration of US$4,000. The Group holds 1.11% equity interest as of December 31, 2021 and December 31,2022. No impairment existed at December 31, 2021 and December 31,2022,and there were no observable price changes for the year ended December 31, 2022. (ii) In December 2017, the Group purchased a 8.50% equity interest in Ningbo Weilie for a total cash consideration of RMB 20,000,000.No impairment existed at December 31, 2021 and December 31,2022, and there were no observable price changes for the year ended December 31,2022. (iii) In September 2018, the Group purchased a 15% equity interest of Shanghai Xinzheng Financial Information Consulting Co., Ltd. for a total consideration of RMB129,786. The Group holds a 15% equity interest as of December 31, 2021 and 2022 respectively. No impairment existed at December 31, 2021. Due poor operation and accumulated loss of Shanghai Xinzheng , the Group fully impaired the investment as of December 31,2022. Equity method investments December 31, December 31, 2021 2022 RMB RMB CSJ Golden Bull (Beijing) Investment Consulting Co., Ltd (“CSJ Golden Bull”) (i) 17,101 10,549 PT.TIRTA Finance(ii) 19,760 24,218 Hubei Consumption Financial Company (“Hubei Consumption”) (iii) — 390,019 Others 21,172 2,911 Total 58,033 427,697 (i) In September 2017, the Group purchased an equity interest of CSJ Golden Bull for a total cash consideration of RMB40,900. The Group holds a 25% equity interest as of December 31, 2021 and December 31, 2022.Equity loss of CSJ Golden Bull for the years ended December 31, 2020,2021 and 2022 was RMB4,540, RMB5,034 and RMB6,552 respectively. (ii) In June 2021, the Group sold 40% of PT.TIRTA Finance to Trusty Cars Pte. Ltd (a third party) and 5% of PT.TIRTA Finance to PT SAHABAT MITRA (a third party), and therefore deconsolidated PT.TIRTA Finance and record a loss of RMB582. The fair value at the disposal day was RMB 49,927 using the asset-based method based on various assumptions, e.g. Fair market, going concern, policy stability, etc. The Group continued to have significant influence on PT.TIRTA Finance and account for a 40% equity interest in it. After the transaction, Trusty Cars Pte. Ltd became a related party. Nil transaction between Trusty Cars Pte. Ltd and the Group after the transaction. No impairment existed at December 31, 2022, and there were no observable price changes for the year ended December 31, 2022.Equity loss of PT.TIRTA Finance for the years ended December 31, 2020,2021 and 2022 was nil (iii) In December 2019, the Group paid RMB361,100 in cash in exchange for a 24.47% equity interest in Hubei Consumption. No impairment existed at December 31, 2021 and December 31, 2022, and there were no observable price changes for the year ended December 31, 2022.Equity income of Hubei Consumption for the years ended December 31, 2020,2021 and 2022 was RMB 4,540 nil Held-to-maturity investments In 2019, the Group purchased a principal-guaranteed debt investment in the form of a beneficiary interest in a trust for cash consideration of RMB15,200, which had a stated maturity within one year. The Group extended the maturity date for another year in 2020 and disposed of the investment in 2021. In 2020, the Group purchased another principal-guaranteed debt investment in the form of a beneficiary interest in a trust for cash consideration of RMB19,100, which had a stated maturity within one year. The Group disposed of this investment in 2021. In 2021, the Group purchased another principal-guaranteed debt investment in the form of a beneficiary interest in a trust for cash consideration of RMB38,000, which had a stated maturity within one year. The Group disposed this investment in 2022. As of December 31, 2022, there’s no principal-guaranteed debt investments. |
PROPERTY, EQUIPMENT AND SOFTWAR
PROPERTY, EQUIPMENT AND SOFTWARE, NET | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, EQUIPMENT AND SOFTWARE, NET | 8. PROPERTY, EQUIPMENT AND SOFTWARE, NET December 31, December 31, December 31, 2020 2021 2022 RMB RMB RMB Office building 19,470 19,525 51,142 Computer and electronic equipment 57,856 58,351 60,402 Furniture and office equipment 10,065 10,386 13,895 Leasehold improvements 30,069 28,377 9,339 Software 46,008 54,492 53,563 Total property and equipment 163,468 171,131 188,340 Accumulated depreciation and amortization (79,147 ) (104,284 ) (95,655 ) Impairment loss for technology of discontinued online lending information services (20,925 ) (23,296 ) (23,296 ) Property, equipment, net 63,396 43,551 69,389 Depreciation and amortization expense on property, equipment and software for the years ended December 31, 2020, 2021 and 2022 was RMB14,500, RMB25,137 and RMB18,767, respectively |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | 9. INTANGIBLE ASSETS, NET December 31, December 31, December 31, 2020 2021 2022 RMB RMB RMB Brokerage licenses 51,880 51,152 51,236 Trade Name 6,400 6,400 6,400 Technology 27,600 27,600 27,600 Total Intangible assets 85,880 85,152 85,236 Accumulated amortization (24,247 ) (30,649 ) (32,881 ) Impairment loss of technology with discontinued online lending information platform (17,220 ) (17,220 ) (17,220 ) Intangible assets, net 44,413 37,283 35,135 The amortization periods range from 5 years to 20 years. Amortization expense on intangible assets for the years ended December 31, 2020, 2021 and 2022 were RMB 9,717 , RMB6,402 and RMB2,233, respectively. As of December 31, 2022, the Group expects to record amortization expenses related to intangible assets RMB 5,124, RMB 5,046, RMB4,087, RMB 4,087and RMB4,087 for the next five years, respectively, and RMB4,087 thereafter. |
ACCRUED EXPENSES AND OTHER LIAB
ACCRUED EXPENSES AND OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Expenses and Other Liabilities [Abstract] | |
ACCRUED EXPENSES AND OTHER LIABILITIES | 10. ACCRUED EXPENSES AND OTHER LIABILITIES December 31, December 31, 2021 2022 RMB RMB Accrued advertising and marketing fees 52,371 66,786 Payables related to service fees and others 93,897 26,488 Amounts due to customers for the segregated bank balances held on their behalf 273,774 153,701 Deposits 2,575 586 Value added tax and surcharges 13,899 1,165 Other 30,732 1,620 Total accrued expenses and other current liabilities 467,248 250,346 |
RELATED PARTY BALANCES AND TRAN
RELATED PARTY BALANCES AND TRANSACTIONS | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY BALANCES AND TRANSACTIONS | 11. RELATED PARTY BALANCES AND TRANSACTIONS Below summarizes the major related parties and their relationships with the Group, and the nature of their services provided to/by the Group: Name of related parties Relationship with the Group Major transaction with the Group Zhuhai Hengqin Flash Cloud Payment Information Technology Limited (“Zhuhai Hengqin Payment”) Entity controlled by Sun, Lei Payment processing service Nanjing Lefang Investee with significant influence Borrower acquisition and referral services purchased by the Group, consulting service provided to Nanjing Lefang by the Group, and related party loan Shanghai Qiuzhi Information Technology Limited (“Shanghai Qiuzhi”) Equity method investee (from May 2019) Borrower acquisition and referral services Beijing Jiuzao Technology Limited Entity controlled by Sun, Lei (from December 2019) Borrower acquisition and referral services Hangzhou Shuyun Gongjin Technology Limited (“Hangzhou Shuyun”) Entity controlled by Sun, Lei Credit inquiry services Hainan Chenxi Investment Consulting Co., Ltd (“Hainan Chenxi”) Investee with significant influence (Since July 2020) Related party loan, Insurance agency service Diaobiao Zhonghai(Beijing)Technology Co., Ltd (“Diaobiao Zhonghai”) Equity method investee (Since July 2020) Capital Zhongzheng Jinniu(Beijing)Investment Consulting Co., Ltd( “Zhongzheng Jinniu” ) Equity method investee (Since 2018) Related party loan Details of related party balances and transactions as of and for the years ended December 31, 2021 and 2022 are as follows: (1) Services provided by related parties Year ended Year ended Year ended December 31, December 31, December 31, 2020 2021 2022 RMB RMB RMB Investors and borrower acquisition and referral services: Beijing Jiuzao 852 — — Shanghai Qiuzhi 49 — — Subtotal 901 — — Insurance agency service: Hainan Chenxi — — 519 Credit inquiry services: Hangzhou Shuyun 358 — — Total 1,259 — 519 (2) Amounts due from related parties December 31, December 31, 2021 2022 RMB RMB Zhongzheng Jinniu — 25,030 Hainan Chenxi 41,750 67,750 Subtotal 41,750 92,780 Impairment — (92,780 ) Total 41,750 — The Group entered into several loan agreements with Hainan Chenxi and as of December 31, 2022, the Group had RMB67.8 million loans receivable from Hainan Chenxi outstanding, with terms 12 months and with interest at 6%. The Group entered into several loan agreements with Zhongzheng Jinniu, and as of December 31, 2022, the Group had RMB25.0 million loans receivable from Zhongzheng Jinniu outstanding, with terms 6 months and with interest at 6.00% or 14.00%. Due to poor operations of Zhongzheng Jinniu and Hainan Chenxi, the Group fully impaired the loans as of December 31, 2022. (3) Amounts due to related parties December 31, December 31, 2021 2022 RMB RMB Zhuhai Hengqin Payment 27 — Nanjing Lefang 19,218 4,620 Hangzhou Shuyun 18 — Beijing Jiuzao 4,704 — Hainan Chenxi — 519 Diaobiao Zhonghai — 3 Total 23,967 5,142 Nanjing Lefang provides referral services, consulting service to Group as of December 31, 2022. The Group had RMB 4,620 payable to Nanjing Lefang. Hainan Chenxi provides insurance agency services to the Group and there is RMB 519 payable to Hainan Chenxi as of December 31, 2022. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 12. INCOME TAXES 9F Inc. is a company incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, it is not subject to tax on either income or capital gain. According to the HK regulations, HK entities are subject to a two-tiered income tax rate for taxable income earned in Hong Kong with effect from April 1, 2018. The first HK$2 millions of profits earned by HK entity will be taxed at 8.25%, while the remaining profits will continue to be taxed at the existing 16.5% tax rate. In addition, to avoid abuse of the two-tiered tax regime, each group of connected entities can nominate only one entity to benefit from the two-tiered tax rate. Under the PRC Enterprise Income Tax Law (the “EIT Law”), the Group’s subsidiaries domiciled in the PRC are subject to 25% statutory rate unless they are qualified for preferential income tax rate status in accordance with the EIT Law. Certain of the Group’s PRC subsidiaries and VIEs enjoy a preferential income tax rate of 15% or 20% under the EIT Law. A “high and new technology enterprise” is entitled to a favorable income tax rate of 15% and such qualification is reassessed by relevant governmental authorities every three The Group’s subsidiaries domiciled in South Asia are subject to 20% statutory rate. The current and deferred components of the income tax expense which were substantially attributable to the Group’s PRC subsidiaries and VIEs and VIEs’ subsidiaries, are as follows: Year ended Year ended Year ended December 31, December 31, December 31, 2020 2021 2022 RMB RMB RMB Current tax 42,758 26,735 11,623 Deferred tax 495,564 — — Total 538,322 26,735 11,623 The reconciliation of income tax expense at statutory tax rate to income tax expense recognized is as follows: Year ended Year ended Year ended December 31, December 31, December 31, 2020 2021 2022 RMB RMB RMB Loss before income tax expenses (1,691,563 ) (201,568 ) (602,746 ) Statutory tax rate in the PRC 25 % 25 % 25 % Income tax expense at statutory tax rate (422,891 ) (50,392 ) (150,686 ) Non-deductible expenses 278,303 700 3,486 Change in valuation allowance 504,360 60,421 32,463 Effect of tax holiday and preferential tax rate 104,218 6,522 163,113 Share-based compensation expenses 72,657 13,085 1,332 Effect of different tax rates of subsidiaries operating in other jurisdictions 1,675 (3,601 ) (38,085 ) Income tax expense 538,322 26,735 11,623 The aggregate amount and per ordinary share effect of the tax holiday, the certification expiration date varies from October 21, 2023 to December 23, 2024 and preferential tax rate are as follows: December 31, December 31, December 31, 2020 2021 2022 RMB RMB RMB The aggregate amount of tax holiday and preferential tax rate (104,218 ) (6,522 ) (163,113 ) The aggregate effect on basic and diluted net income per ordinary share: -Basic and diluted (0.52 ) (0.03 ) (0.70 ) The tax effects of temporary differences that gave rise to the deferred tax balances are as follows: December 31, December 31, December 31, 2020 2021 2022 RMB RMB RMB Deferred revenue 11,786 — — Accrued expenses 106,404 — — Allowance for doubtful accounts 330,488 368 478 Net operating loss carry forwards 142,722 120,523 52,660 Excess advertising fee 12,630 — Less: valuation allowance (604,030 ) (120,891 ) (53,138 ) Total deferred tax assets, net — — — The movements in the valuation allowance for the years ended December 31, 2020, 2021 and 2022 are as follows: 2020 2021 2022 RMB RMB RMB Balance at beginning of year 99,670 604,030 120,891 Additions 504,360 — 32,463 Reversal — (483,139 ) (100,216 ) Balance at December 31,2021 and 2022 604,030 120,891 53,138 December 31, December 31, 2021 2022 RMB RMB Intangible asset from acquisition 7,730 7,126 Total deferred tax liabilities 7,730 7,126 The Group considers positive and negative evidence to determine whether some portion or all of the deferred tax assets will more likely than not be realized. This assessment considers, among other matters, the nature, frequency and severity of recent losses, forecasts of future profitability, the duration of statutory carryforward periods, the Group’s experience with tax attributes expiring unused and tax planning alternatives. The valuation allowance is considered on each individual entity basis. Considering all the above factors, valuation allowances are established for certain entities because the Group believes that it is more likely than not that its net deferred tax assets will not be realized as it does not expect to generate sufficient taxable income in the near future. Uncertainties exist with respect to how the current income tax law in the PRC applies to the Group’s overall operations, and more specifically, with regard to tax residency status. The EIT Law includes a provision specifying that legal entities organized outside of the PRC will be considered residents for Chinese income tax purposes if the place of effective management or control is within the PRC. The implementation rules to the EIT Law provide that non-resident legal entities will be considered PRC residents if substantial and overall management and control over the manufacturing and business operations, personnel, accounting and properties, occurs within the PRC. Despite the present uncertainties resulting from the limited PRC tax guidance on the issue, the Group does not believe that the legal entities organized outside of the PRC within the Group should be treated as residents for EIT law purposes. If the PRC tax authorities subsequently determine that the Group and its subsidiaries registered outside the PRC should be deemed resident enterprises, the Group and its subsidiaries registered outside the PRC will be subject to the PRC income taxes, at a statutory income tax rate of 25%, the Group is not subject to any other uncertain tax position. The EIT regulations (i.e. Caishui [2011] No. 112) specify that legal entities organized in the Xinjiang Kashgar Special Economic Development Area upon meeting certain requirements can qualify for five According to PRC Tax Administration and Collection Law, the statute of limitations is for a period of three years if the underpayment of taxes is due to computational errors made by the taxpayer or withholding agent. The statute of limitations will be extended five years under special circumstances, which are not clearly defined (but an underpayment of tax liability exceeding RMB0.1 million is specifically listed as a special circumstance). In the case of a related party transaction, the statute of limitations is ten no In accordance with the EIT Law, dividends, which arise from profits of foreign invested enterprises (“FIEs”), are subject to a 10% withholding income tax. In addition, under tax treaty between the PRC and Hong Kong, if the foreign investor is incorporated in Hong Kong and qualifies as the beneficial owner, the applicable withholding tax rate is reduced to 5%, if the investor holds at least 25% in the FIE, or 10%, if the investor holds less than 25% in the FIE. A deferred tax liability should be recognized for the undistributed profits of PRC subsidiaries unless the Group has sufficient evidence to demonstrate that the undistributed dividends will be reinvested and the remittance of the dividends will be postponed indefinitely. The Group plans to indefinitely reinvest undistributed profits earned from its China subsidiaries in its operations in the PRC. Therefore, no Under applicable accounting principles, a deferred tax liability should be recorded for taxable temporary differences attributable to the excess of financial reporting basis over tax basis in a domestic subsidiary. However, recognition is not required in situations where the tax law provides a means by which the reported amount of that investment can be recovered tax-free and the enterprise expects that it will ultimately use that means. The Group completed its feasibility analysis on a method, which the Group will ultimately execute if necessary to repatriate the undistributed earnings of the VIEs without significant tax costs. As such, the Group did not accrue deferred tax liabilities on the earnings of the VIEs given that the Group will ultimately use the means. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | 13. SHARE-BASED COMPENSATION Share incentive plan Share options In 2015, the Group adopted the 2015 Share Incentive Plan (the “2015 Plan”) and, in 2016, the Group adopted the 2016 Share Incentive Plan (the “2016 Plan”), which permits the grant of three types of awards: options, restricted shares and restricted share units. Persons eligible to participate in the 2015 Plan and 2016 Plan (collectively, the “Plans”) includes employees, consultants and directors of the Group or any of affiliates, which include the Group’s parent company, subsidiaries and the Group. Under the 2015 plan, ordinary share available for issuance were 15,094,700. Under the 2016 Plan, 16,771,900 ordinary shares were reserved for issuance. According to the resolutions of the board of directors in 2017, the Group reserved an additional 35,867,400 ordinary shares for the Plans. According to the resolutions of the board of directors in 2018, the Group reserved additional 3,518,000 ordinary shares for the Plans. During the year ended December 31,2022, the Group did not grant any shares. During the year ended December 31,2021, the Group granted 500,000 shares at the exercise price of RMB6.74 per share, and 4,425,211 shares at the exercise price of RMB0.06. ● 500,000 share options will vest annually in equal instalment over 5 years. ● Of the 4,425,211 shares options granted 2,655,127 options vested on June 30,2021, 1,327,563 vested on September 30,2021, and 442,521 vested on December 31,2021. During the year ended December 31 2020, the Group granted 680,300 share options at the exercise price of RMB24.11 per share, 2,853,911 share options at the exercise price of $nil, 3,345,098 share options at the exercise price of RMB24.11 per share,178,900 share options at the exercise price of RMB13.83 per share, 445,280 share options at the exercise price of RMB24.11 per share. These grants are subject to the following vesting conditions: ● 680,300 share options will vest over 5 years based on vesting of 15%, 20%, 20%, 20% and 25% at each anniversary subsequent to the grant date. ● 2,853,911 share options vested 1,426,955 on March 20,2020 and 1,426,956 on April 20,2020. ● 3,345,098 share options vested on May 28,2020. ● 178,900 share options will vest over 4 years based on vesting of 20%, 20%, 30%, and 30% at each anniversary subsequent to the grant date. ● 445,280 share options will vest annually in equal instalment over 5 years. The vesting of the share options granted during the year ended December 31, 2022 is also subject to certain annual performance targets established by the Group’s Board of Directors and Chief Executive Officer (“CEO”). The Group recognized compensation expenses related to the options linked to these performance targets during the vesting period based on the probable outcome of these performance conditions. The Group has determined that it is probable these conditions will be met; as such the share-based compensation is being recognized over the vesting period. The Group calculated the estimated fair value of the share options on the respective grant dates using the binomial option pricing model with the assistance from an independent valuation firm, with the following assumptions used in the years ended December 31, 2020, 2021 and 2022. The weighted-average grant-date fair value of the share options granted during the years ended December 31, 2020, 2021 and 2022 was RMB35.88 RMB8.00 and nil Year ended Year ended Year ended December 31, December 31, December 31, 2020 2021 2022 Risk free rate of interest 0.27%-1.47% 0.84%~1.61% n/a Volatility 48.8%-59.5% 113.60%~116% n/a Dividend yield — — n/a Exercise multiples 2.2 / 2.8 2.2 n/a Life of option (years) 2.5-6.0 5 n/a (1) Risk free rate of interest Based on the daily treasury long term rate of the U.S. Department of the treasury with a maturity period close to the expected term of the option. (2) Volatility The volatility factor estimated was based on the annualized standard deviation of the daily return embedded in historical share prices of the selected guide line companies with a time horizon close to the expected expiration of the term. (3) Dividend yield The Company has never declared or paid any cash dividends on the Company’s capital stock and does not anticipate any dividend payments on the Company’s ordinary shares in the foreseeable future. (4) Exercise multiples The expected exercise multiple was estimated as the average ratio of the stock price as at the time when employees would decide to voluntarily exercise their vested options. As the Group did not have sufficient information of past employee exercise history, it was estimated by referencing to academic research publications. For key management grantee and non-key management grantee, the exercise multiple was estimated to be 2.8 and 2.2 respectively. The activity in share options during period from December 31, 2021 and December 31, 2022 is set out below: Number of Weighted Weighted Options Price Fair Value RMB RMB Outstanding as of December 31, 2020 29,273,408 17.24 40.24 Granted 4,925,211 0.76 8.00 Exercised (6,885,255 ) 0.07 23.49 Forfeited (7,264,080 ) 9.52 5.88 Outstanding as of December 31, 2021 20,049,284 8.82 42.57 Granted — — — Exercised (4,142,985 ) 0.00 27.02 Forfeited (6,996,980 ) 9.31 72.27 Outstanding as of December 31, 2022 8,909,319 17.61 31.02 The following table summarizes information with respect to share options outstanding as of December 31, 2022: Options Outstanding Options Exercisable Weighted Weighted Average Average Number Remaining Number Remaining Exercise Price Outstanding Contractual Life Outstanding Contractual Life RMB 0.06 442,521 — 442,521 — 6.74 500,000 4.23 75,000 4.23 7.78 476,000 — 476,000 — 14.32 782,200 0.09 782,200 0.09 14.72 2,466,000 — 2,466,000 — 24.06 610,700 1.10 543,500 1.01 24.11 3,631,898 0.17 3,445,478 0.06 8,909,319 8,230,699 A summary of share-based compensation recognized related to share options granted and ordinary shares issued is as follows: For the year ended For the year ended For the year ended December 31, December 31, December 31, 2020 2021 2022 RMB RMB RMB General and administrative expenses 290,630 52,338 5,329 As of December 31 2021, and December 31, 2022, unrecognized compensation cost related to unvested option awards granted to employees of the Group was RMB4,891 and RMB 13,786, respectively. As of December 31, 2022, such cost was expected to be recognized over a weighted average period of 2.7 years. The expected cost is RMB4,527, RMB4,271 and RMB3,514 for years ended December31, 2023, 2024 and 2025, respectively. |
ORDINARY SHARES
ORDINARY SHARES | 12 Months Ended |
Dec. 31, 2022 | |
Ordinary Share Abstract | |
ORDINARY SHARES | 14. ORDINARY SHARES The Group’s Amended and Restated Memorandum of Association authorizes the Group to issue 4,600,000,000 ordinary shares with a par value of approximately US$0.00001 per share. As of December 31, 2021, and December 31, 2022, the Group had a total of 231,323,675 and 235,466,660 Class A and B ordinary shares issued and outstanding, respectively. In August 2019, the Company completed its initial public offering and issued 8,085,000 ADSs (representing 404,250 Class A ordinary shares). The net proceeds raised from the initial public offering and from exercising the over-allotment option by the underwriters were RMB463,065, net of issuance cost of RMB31,776. Upon the completion of the initial public offering, the 9,759,550 ordinary shares outstanding were classified into Class A and Class B ordinary shares, of which 128,228,600 shares were designated to Class A ordinary shares and 66,962,400 shares were designated to Class B ordinary shares. Holders of Class A ordinary shares and Class B ordinary shares have the same rights except for voting and conversion rights. Each Class A ordinary share is entitled to one vote, and each Class B ordinary share is entitled to five votes and is convertible into one Class A ordinary share at the option of the holder. In 2021, the Company newly issued 20,927,739 In 2022, the Company did not issue any shares, the Company exercised 4,142,985 Class A ordinary shares to management. Class A ordinary shares Class B ordinary shares Others In January 2023, 9F Inc. completed an ADS ratio change from one ADS representing one ordinary share to one ADS representing twenty ordinary shares. The ADS ratio change did not result in any change in the par value or number of outstanding ordinary shares of 9F Inc. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 15. SEGMENT INFORMATION The Group’s chief operating decision maker is our Chief Executive Officer who reviews the consolidated results of operations when making decisions about allocating resources and assessing performance of the Group. For the fiscal year ended December 31, 2022, we identified three operating segments, including technology empowerment services, e-commerce business, wealth management. The Group operates and manages its business centralized in the Beijing office. The majority of the Group’s revenues for the years ended December 31, 2021 and 2022 were generated from the PRC. As of December 31, 2021, and December 31, 2022, the majority of long-lived assets of the Group were located in the PRC and Hong Kong. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2022 | |
Employee Benefit Plan [Abstract] | |
EMPLOYEE BENEFITS | 16. EMPLOYEE BENEFITS Full time employees of the Group in the PRC participate in a government-mandated defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. The Group accrues for these benefits based on certain percentages of the employees’ salaries. The total contribution for such employee benefits were RMB69,370 RMB42,931 and RMB 39,756, for the years ended December 31, 2020, 2021 and 2022, respectively. |
STATUTORY RESERVES AND RESTRICT
STATUTORY RESERVES AND RESTRICTED NET ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
Statutory Reserves and Restricted Net Assets [Abstract] | |
STATUTORY RESERVES AND RESTRICTED NET ASSETS | 17. STATUTORY RESERVES AND RESTRICTED NET ASSETS In accordance with the PRC laws and regulations, the Group’s PRC subsidiaries and VIEs and their subsidiaries are required to make appropriations to a statutory reserves, which is appropriated from net profit as reported in their PRC statutory accounts. The Group’s PRC subsidiaries and VIEs are required to appropriate at least 10% of their after-tax profits to the general reserve until such reserve has reached 50% of their respective registered capital. Appropriations to an enterprise expansion reserve and a staff welfare and bonus reserve are to be made at the discretion of the board of directors of each of the Group’s PRC subsidiaries and VIEs. There were no appropriations to these reserves by the Group’s PRC entities for the years ended December 31,2021 and 2022. As a result of PRC laws and regulations and the requirement that distributions by the PRC entities can only be paid out of distributable profits computed in accordance with PRC GAAP, the PRC entities are restricted from transferring a portion of their net assets to the Company. Amounts restricted include paid-in capital and statutory reserves of the Group’s subsidiaries and VIEs and their subsidiaries. As of December 31, 2022, the aggregate amounts of paid-in capital, capital reserve and statutory reserves represented the amount of net assets of the relevant entities in the Group not available for distribution which amounted to approximately RMB2,612,000. |
NET (LOSS) PER ORDINARY SHARE
NET (LOSS) PER ORDINARY SHARE | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
NET (LOSS) PER ORDINARY SHARE | 18. NET (LOSS) PER ORDINARY SHARE Basic and diluted net loss per share for each of the years presented were calculated as follows: For the years ended December 31, 2020 2021 2022 RMB RMB RMB Numerator: Net (loss) attributable to ordinary shareholders for computing net income per ordinary shares-basic (2,258,895 ) (234,908 ) (594,741 ) Denominator: Weighted average ordinary shares outstanding used in computing net income per ordinary shares-basic and diluted 198,596,879 213,635,470 233,216,045 Net (loss) per ordinary share attributable to ordinary shareholders-basic and diluted (11.37 ) (1.1 ) (2.55 ) If the company has net income, it should include securities that can be issued under contingent stock agreements and may dilute the underlying EP in the future. The company has 8,230,699 additional stocks in 2022. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
LEASES | 19. LEASES The Group leases certain office premises and cloud infrastructure to support its core business system under non-cancelable leases. The Group determines if an arrangement is a lease at inception. Some lease agreements contain lease and non-lease components, which the Group chooses not to account for as separate components as the Group has elected the practical expedient. As of December 31, 2022, the Group had no long-term leases that were classified as a financing lease. As of December 31, 2022, the Group did not have additional operating leases that have not yet commenced. For the year ended December 31, Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 11,620 Non-cash right-of-use assets in exchange for new lease liabilities: Operating leases 4,409 Weighted average remaining lease term Operating leases 0.59 Weighted average discount rate Operating leases 4.38 % Short-term lease cost 291 As of December 31, 2022, the maturity of operating lease liabilities are as follows: The years ended December 31, RMB 2023 7,137 2024 1,381 2025 5 Subtotal 8,523 Less imputed interest 207 Total 8,316 Payments under operating leases are expensed on a straight-line basis over the periods of their respective leases. The terms of the leases do not contain rent escalation or contingent rents. For years ended December 31, 2020, 2021 and 2022, total rental expense for all operating leases amounted to RMB 58,831, RMB 30,442 and RMB 22,566 respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 20. COMMITMENTS AND CONTINGENCIES Contingencies The Group is subject to legal and administrative proceedings in the ordinary course of business. The Group does not believe that any currently pending proceeding, except for the legal proceedings disclosed below, or administrative proceeding to which the Group is a party will have a material effect on its business or financial condition. Legal proceedings As disclosed in Note 2, in 2019, the Company partnered with PICC under the direct lending program. In November 2019, PICC stopped paying service fees as agreed in the Cooperation Agreement. PICC further disputed with the Group regarding payments of the service fees under the Cooperation Agreement. The Group has suspended its cooperation with PICC on loans under its direct lending program since December 2019 and has entered into agreements with other financing guarantee companies in providing guarantee services to the institutional funding partners. In May 2020, the Group commenced a legal proceeding against PICC by submitting a complaint with a local court in Beijing for contract non-performance under the Cooperation Agreement. The Group, together with its legal counsel has determined that PICC has breached its contractual obligation under the Cooperation Agreement for not paying service fees that were due to the Group under the direct lending program. The Group is seeking payments of approximately RMB2.3 billion from PICC to cover the outstanding service fees and related late payment losses. After the Group’s legal action was filed against PICC, PICC filed a civil lawsuit against the Group at a local court in Guangzhou claiming that the second amendment under the Cooperation Agreement is invalid, and therefore PICC is not obligated to pay any outstanding service fees and that a portion of the service fees previously paid to the Group under the Cooperation Agreement plus accrued interest should be refunded to PICC. After several rounds of jurisdictional objections, the case was finally heard by the local court in Beijing in December 2020. Pretrial conferences were held by the Beijing local court for part of the evidence exchange and cross-examination on May 14 and August 27,2021. As of the date of this report, the Group is still waiting for the hearing by the local court in Beijing. The Group is vigorously asserting its rights against PICC and will defend itself against any claims brought against the Group by PICC in the legal proceeding. The Group obtained a legal opinion from a law firm in Beijing who believes that the Group’s claim should have judicial support. As of the date of this report, the legal matter remains at the preliminary stage, and it is not possible at this stage to ascertain the outcome of the lawsuit. Beginning in September 2020, the Company and certain of its current and former officers, directors and others were named as defendants in various putative securities class actions captioned In re 9F Inc. Securities Litigation, Index No. 654654/2020 (Supreme Court of the State of New York County of New York, Amended Complaint filed Dec. 7, 2020) (the “State Court Action”) and Holland v. 9F Inc. et al., No. 2:21-cv-00948 (United States District Court for the District of New Jersey, Amended Complaint filed Jan. 3, 2022) (the “Federal Court Action”). Both actions allege that defendants made misstatements and omissions in connection with the Company’s public offering and disclosures in violation of the federal securities laws. On March 6, 2023, the State Court Action was dismissed without prejudice and plaintiffs were allowed to replead. On April 5, 2023, a second amended complaint was filed in the State Court Action. The State Court ordered the motion-to-dismiss briefing for second amended complaint to be completed by July 28, 2023. On November 29, 2022, the Federal Court Action was dismissed without prejudice and plaintiffs were allowed to replead. On February 1, 2023, a second amended complaint was filed in the Federal Court Action. The Federal Court ordered the motion-to-dismiss briefing for second amended complaint to be completed by May 17, 2023. Both cases remain in their preliminary stages. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 21. SUBSEQUENT EVENTS The Group has reviewed its subsequent events through May 12, 2023, the date these consolidated financial statements were issued and has determined that other than the following paragraphs and the matters discussed in Notes 20 and 21, no material subsequent events have occurred that require recognition in or disclosure in to the consolidated financial statements. Our depositary bank may reimburse us for certain expenses incurred by us in respect of the ADR program, by making available a portion of the ADS fees charged in respect of the ADR program or otherwise, upon such terms and conditions as we and the depositary bank agree from time to time. In 2022, we received approximately US$[1.3] million, net of applicable taxes as reimbursement from the depositary. In January 2023, we returned reimbursement of approximately US$2.8 million to the depositary in relation to the implementation of ADS ratio change. |
SCHEDULE 1-CONDENSED BALANCE SH
SCHEDULE 1-CONDENSED BALANCE SHEETS | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
SCHEDULE 1-CONDENSED BALANCE SHEETS | 9F INC. SCHEDULE 1-CONDENSED BALANCE SHEETS (PARENT COMPANY ONLY) (Amounts in thousands except for number of shares and per share data) December 31, December 31, December 31, 2021 2022 2022 RMB RMB US$ Assets: Cash and cash equivalents 568,973 411,047 59,596 Amounts due from subsidiaries and VIEs 1,368,526 1,444,870 209,486 Other receivables 1,912 — — Prepaid expenses and other assets 1,993 — — Investments in subsidiaries and VIEs 2,481,330 1,912,666 277,312 Total assets 4,422,734 3,768,583 546,394 Liabilities: Accrued expense and other liability 290,808 112,384 16,294 Amounts due to subsidiaries and VIEs 38 — — Total liabilities 290,846 112,384 16,294 Shareholders’ Equity: Class A ordinary shares (US$0.00001 par value; 460,000,000 shares authorized; 170,161,275 and 174,304,260 shares issued and outstanding as of December 31, 2021 and 2022, respectively) 1 1 — Class B ordinary shares (US$0.00001 par value; 200,000,000 shares authorized; 61,162,400 and 61,162,400 shares issued and outstanding as of December 31, 2021 and 2022, respectively) 1 1 — Additional paid-in capital 5,780,609 5,786,068 838,901 Retained earnings (deficit) (1,591,305 ) (2,220,859 ) (321,994 ) Accumulated other comprehensive income (55107 ) 90,988 13,239 Total shareholders’ equity 4,131,888 3,656,199 530,099 Total liabilities and shareholders’ equity 4,422,734 3,768,583 546,393 9F INC. SCHEDULE 1-CONDENSED STATEMENTS OF OPERATIONS (PARENT COMPANY ONLY) (Amounts in thousands except for number of shares and per share data) Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, 2020 2021 2022 2022 RMB RMB RMB US$ Equity in loss of subsidiaries and VIEs (1,855,047 ) (150,814 ) (540,947 ) (78,433 ) Operating costs and expenses (333,427 ) (89,245 ) (54,329 ) (7,877 ) Provision for contract assets and receivables — — — — Interest income 12,183 5,151 535 78 Impairment loss of investments (97,892 ) — — — Other income, net 15,288 — — — Net income (loss) (2,258,895 ) (234,908 ) (594,741 ) (86,232 ) Net loss per ordinary share Basic and diluted (227.49 ) (1.10 ) (2.55 ) (0.37 ) Weighted average number of ordinary shares Basic and diluted 9,929,844 213,635,470 233,216,045 233,216,045 9F INC. SCHEDULE 1 - CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (PARENT COMPANY ONLY) (Amounts in thousands except for number of shares and per share data) Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, 2020 2021 2022 2022 RMB RMB RMB US$ Net income (loss) (2,258,895 ) (234,908 ) (594,741 ) (86,232 ) Other comprehensive income Foreign currency translation adjustments (97,245 ) (48,154 ) 146,098 21,182 Unrealized gains (losses) on available-for-sale investments — — — — Comprehensive Income (Loss) (2,356,140 ) (283,062 ) (448,643 ) (65,050 ) 9F INC. SCHEDULE 1 - CONDENSED STATEMENTS of CASH FLOW (PARENT COMPANY ONLY) (Amounts in thousands except for number of shares and per share data) Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, 2020 2021 2022 2022 RMB RMB RMB US$ Cash Flows from Operating Activities: Net income (loss) (2,258,895 ) (234,908 ) (594,741 ) (86,232 ) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: — — — — Equity in earnings (loss) of subsidiaries and VIEs 1,855,047 150,814 528,114 76,572 Share-based compensation expense 290,630 52,338 5,459 791 Impairment loss of equity securities without readily determinable fair value 97,892 — — — Changes in operating assets and liabilities: — — — — Other receivables — (1,259 ) 1,912 277 Prepaid expenses and other assets 6,667 87 1,993 289 Accrued expense and other liabilities 5,901 282,124 (178,424 ) (25,869 ) Amounts due to subsidiaries and VIEs (147 ) (1 ) (38 ) (6 ) Amounts due from subsidiaries and VIEs 45,654 (476,054 ) (76,344 ) (11,069 ) Net cash provided by (used in) operating activities 42,749 (226,859 ) (312,069 ) (45,247 ) Cash Flows from Investing Activities: Investment in subsidiaries 18,774 — — — Loan to related parties (97,514 ) — — — Disposal of long-term investments — 33,130 99,465 14,421 Net cash provided by (used in) investing activities (78,740 ) 33,130 99,465 14,421 Cash Flows from Financing Activities: Proceeds from exercise of share options — 433 — — Net cash provided by financing activities — 433 — — Effect of exchange rate changes (1 ) (15,828 ) 41,845 6,068 Net increase (decrease) in cash and cash equivalents (35,992 ) (209,124 ) (170,759 ) (24,758 ) Cash and cash equivalents at beginning of year 814,089 778,097 568,973 82,493 Cash and cash equivalents at end of year 778,097 568,973 398,214 57,735 9F INC. SCHEDULE 1— NOTES TO CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY (PARENT COMPANY ONLY) 1. Schedule I has been provided pursuant to the requirements of Rule 12-04 and 5-04(c) of Regulation S-X, which require condensed financial information as to the financial position, changes in financial position and results of operations of a parent company as of the same dates and for the same periods for which audited consolidated financial statements have been presented when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. 2. The condensed financial information of 9F Inc. has been prepared using the same accounting policies as set out in the accompanying consolidated financial statements except that the equity method has been used to account for investments in its subsidiaries, VIE and the VIEs subsidiaries. 3. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The footnote disclosures contain supplemental information relating to the operations of the Group and, as such, these statements should be read in conjunction with the notes to the Consolidated Financial Statements of the Group. No dividends were paid by the Group’s subsidiaries and VIEs to the parent company in 2020, 2021 and 2022 4. As of December 31, 2022, there were no material contingencies, significant provisions of long-term obligations, guarantees of the Group, except for those which have been separately disclosed in the Consolidated Financial Statements, if any. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying consolidated financial statements of the Group have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”). Revenue presentation in the consolidated financial statements and accompanying notes have been retrospectively reclassified to conform to the current period’s presentation. |
Basis of consolidation | Basis of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries and consolidated VIEs, including the VIEs’ subsidiaries, for which the Group is the primary beneficiary. All transactions and balances among the Company, its subsidiaries, the VIEs and the VIEs’ subsidiaries have been eliminated upon consolidation. As PRC laws and regulations prohibit and restrict foreign ownership of internet value-added businesses, the Group operates its internet related business in the PRC through two PRC domestic companies, Jiufu Shuke and Beijing Puhui Lianyin Information Technology Limited (“Beijing Puhui”), whose equity interests are held by certain management members and the Founders of the Group. The Group established seven wholly-owned foreign invested subsidiaries in the PRC, Beijing Shuzhi Lianyin Technology Co., Ltd (“Beijing Shuzhi Lianyin”), Zhuhai Xiaojin Hulian Technology Co., Ltd (“Xiaojin Hulian”), Zhuhai Wukong Youpin Technology Co., Ltd (“Wukong Youpin”), Qianhai Fuyuan Network Technology (“Qianhai Fuyuan”) Co., Ltd , Beijing Diyi Technology Co., Ltd (“Beijing Diyi”),Shanghai Shuzhi Lianyin Technology Co., Ltd (“Shanghai Shuzhi Lianyin”),Shenzhen Chuangshi Jiyuan Technology Co., Ltd(“Shenzhen Chuangshi”) ,(“Qianhai Fuyuan”, together with Beijing Shuzhi Lianyin,Shanghai Shuzhi Lianyin, Xiaojin Hulian, Beijing Diyi,Shenzhen Chuangshi and Wukong Youpin collectively referred as the “WFOEs”).As PRC laws and regulations prohibit and restrict foreign ownership of internet value-added businesses, the Group operates its internet related business in the PRC through two PRC domestic companies, Jiufu Shuke and Beijing Puhui Lianyin Information Technology Limited (“Beijing Puhui”), whose equity interests are held by certain management members and the Founders of the Group. The Group established four wholly-owned foreign invested subsidiaries in the PRC, Beijing Shuzhi Lianyin Technology Co., Ltd (“Shunzhi Lianyin”), Zhuhai Xiaojin Hulian Technology Co., Ltd (“Xiaojin Hulian”), Zhuhai Wukong Youpin Technology Co., Ltd (“Wukong Youpin”), and Qinghai Fuyuan Network Technology (Shenzhen) Co., Ltd (“Qinghai Fuyuan”, together with Shunzhi Lianyin, Xiaojin Hulian, and Wukong Youpin collectively referred as the “WFOEs”). By entering into a series of agreements (the “VIE Agreements”), the Group, through WFOEs, obtained control over Jiufu Shuke and Beijing Puhui (collectively referred as “VIEs”). The VIE Agreements enable the Group to (1) have power to direct the activities that most significantly affect the economic performance of the VIEs, and (2) receive the economic benefits of the VIEs that could be significant to the VIEs. Accordingly, the Group is considered the primary beneficiary of the VIEs and has consolidated the VIEs’ financial results of operations, assets and liabilities in the Group’s consolidated financial statements. In making the conclusion that the Group is the primary beneficiary of the VIEs, the Group’s rights under the Power of Attorney also provide the Group’s abilities to direct the activities that most significantly impact the VIEs’ economic performance. The Group also believes that this ability to exercise control ensures that the VIEs will continue to execute and renew the Master Exclusive Service Agreement and pay service fees to the Group. By charging service fees to be determined and adjusted at the sole discretion of the Group, and by ensuring that the Master Exclusive Service Agreement is executed and remains effective, the Group has the rights to receive substantially all of the economic benefits from the VIEs. Details of the VIE Agreements, are set forth below: VIE Agreements that were entered to give the Group effective control over the VIEs include: Voting Rights Proxy Agreement and Irrevocable Power of Attorney Under which each shareholder of the VIEs grant to any person designated by WFOEs to act as its attorney-in-fact to exercise all shareholder rights under PRC law and the relevant articles of association, including but not limited to, appointing directors, supervisors and officers of the VIEs as well as the right to sell, transfer, pledge and dispose all or a portion of the equity interest held by such shareholders of the VIEs. The proxy and power of attorney agreements will remain effective as long as WFOEs exist. The shareholders’ of the VIEs do not have the right to terminate the proxy agreements or revoke the appointment of the attorney-in-fact without written consent of the WFOEs. Exclusive Option Agreement Under which each shareholder of the VIEs granted 9F or any third party designated by 9F the exclusive and irrevocable right to purchase from such shareholders of the VIEs, to the extent permitted by PRC law and regulations, all or part of their respective equity interests in the VIEs for a purchase price equal to the registered capital. The shareholders of the VIEs will then return the purchase price to 9F or any third party designated by 9F after the option is exercised. 9F may transfer all or part of its option to a third party at its own option. The VIEs and its shareholders agree that without prior written consent of 9F, they may not transfer or otherwise dispose the equity interests or declare any dividends. The restated option agreement will remain effective until 9F or any third party designated by 9F acquires all equity interest of the VIEs. Spousal Consent The spouse of each shareholder of the VIEs has entered into a spousal consent letter to acknowledge that he or she consents to the disposition of the equity interests held by his or her spouse in the VIEs in accordance with the exclusive option agreement, the power of attorney and the equity pledge agreement regarding VIE structure described above, and any other supplemental agreement(s) may be consented by his or her spouse from time to time. Each such spouse further agrees that he or she will not take any action or raise any claim to interfere with the arrangements contemplated under the mentioned agreements. In addition, each such spouse further acknowledges that any right or interest in the equity interests held by his or her spouse in the VIEs do not constitute property jointly owned with his or her spouse and each such spouse unconditionally and irrevocably waives any right or interest in such equity interests. Loan Agreement Pursuant to the loan agreements between WFOEs and each shareholder of the VIEs, WFOEs extended loans to the shareholders of the VIEs, who had contributed the loan principal to the VIEs as registered capital. The shareholders of VIEs may repay the loans only by transferring their respective equity interests in VIEs to 9F Inc. or its designated person(s) pursuant to the exclusive option agreements. These loan agreements will remain effective until the date of full performance by the parties of their respective obligations thereunder. The VIE Agreements that enables the Group to receive substantially all of their economic benefits include: Equity Interest Pledge Agreement Pursuant to equity interest pledge agreement, each shareholder of the VIEs has pledged all of his or her equity interest held in the VIEs to WFOEs to secure the performance by VIEs and their shareholders of their respective obligations under the contractual arrangements, including the payments due to WFOEs for services provided. In the event that the VIEs breach any obligations under these agreements, WFOEs as the pledgees, will be entitled to request immediate disposal of the pledged equity interests and have priority to be compensated by the proceeds from the disposal of the pledged equity interests. The shareholders of the VIEs shall not transfer their equity interests or create or permit to be created any pledges without the prior written consent of WFOEs. The equity interest pledge agreement will remain valid until the master exclusive service agreement and the relevant exclusive option agreements and proxy and power of attorney agreements, expire or terminate. Master Exclusive Service Agreement Pursuant to exclusive service agreement, WFOEs have the exclusive right to provide the VIEs with technical support, consulting services and other services. WFOEs shall exclusively own any intellectual property arising from the performance of the agreement. During the term of this agreement, the VIEs may not accept any services covered by this agreement provided by any third party. The VIEs agree to pay service fees to WFOEs. The agreement will remain effective unless WFOEs terminate the agreement in writing. Risks in relation to the VIE structure The Group believes that the contractual arrangements with the VIEs and their current shareholders are in compliance with PRC laws and regulations and are legally enforceable. However, uncertainties in the PRC legal system could limit the Group’s ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government could: ● Revoke the business and operating licenses of the Group’s PRC subsidiaries or consolidated affiliated entities; ● Discontinue or restrict the operations of any related-party transactions among the Group’s PRC subsidiaries or consolidated affiliated entities; ● Impose fines or other requirements on the Group’s PRC subsidiaries or consolidated affiliated entities; ● Require the Group’s PRC subsidiaries or consolidated affiliated entities to revise the relevant ownership structure or restructure operations; and/or; ● Restrict or prohibit the Group’s use of the proceeds of the additional public offering to finance the Group’s business and operations in China; ● Shut down the Group’s servers or blocking the Group’s online platform; ● Discontinue or place restrictions or onerous conditions on the Group’s operations; and/or ● Require the Group to undergo a costly and disruptive restructuring. The Group’s ability to conduct its business may be negatively affected if the PRC government were to carry out any of the afore mentioned actions. As a result, the Group may not be able to consolidate the VIEs in its consolidated financial statements as it may los The following table sets forth the assets, liabilities, results of operations and cash flows of the VIEs and their subsidiaries, which are included in the Group’s consolidated financial statements after the elimination of intercompany balances and transactions: As of December 31, As of December 31, 2021 2022 RMB RMB Assets: Cash and cash equivalents 1,436,350 1,763,619 Term deposits 85,000 5,000 Investment in marketable securities 78,725 58,384 Accounts receivable, net 79,605 69,549 Other receivables, net 34,439 99,494 Loan receivables, net 234,750 111,306 Amounts due from related parties 41,750 1,425 Prepaid expenses and other assets 705,528 210,450 Contracts assets, net — — Long-term investments, net 490,314 457,757 Operating lease right-of-use assets, net 10,602 5,423 Property, equipment and software, net 32,593 60,254 Goodwill 72,304 21,932 Intangible assets, net 37,386 16,933 Total assets 3,339,346 2,881,526 Liabilities: Deferred revenue 46,175 8,802 Payroll and welfare payable 12,054 15,685 Income taxes payable 255,618 298,785 Accrued expenses and other liabilities 138,144 76,138 Operating lease liabilities 9,700 4,918 Amounts due to related parties 23,967 991,498 Deferred tax liabilities 5,041 4,233 Total liabilities 490,699 1,400,059 For the years ended December 31, 2020 2021 2022 RMB RMB RMB Net revenues 1,145,210 701,329 535,149 Net (loss) (1,479,883 ) (154,732 ) (357,418 ) For the years ended December 31, 2020 2021 2022 RMB RMB RMB Net cash provided by (used in) operating activities (753,416 ) 1,014,571 251,106 Net cash used in investing activities (511,832 ) (51,410 ) 76,163 Net cash provided by (used in) financing activities — 3,305 — Under the VIE Arrangements, the Group has the power to direct activities of the VIEs and can have assets transferred out of the VIEs. Therefore, the Group considers that there is no asset in the VIEs that can be used only to settle obligations of the VIEs, except for assets that correspond to the amount of the registered capital and PRC statutory reserves, if any. As the VIEs are incorporated as limited liability companies under the Company Law of the PRC, creditors of the VIEs do not have recourse to the general credit of the Group for any of the liabilities of the VIEs. Currently there is no contractual arrangement which requires the Group to provide additional financial support to the VIEs. However, as the Group conducts its businesses primarily based on the licenses held by the VIEs, the Group has provided and will continue to provide financial support to the VIEs. Revenue-producing assets held by the VIEs include certain internet content provision (“ICP”) licenses and other licenses, domain names and trademarks. The ICP licenses and other licenses are required under relevant PRC laws, rules and regulations for the operation of internet businesses in the PRC, and therefore are integral to the Group’s operations. The ICP licenses require that core PRC trademark registrations and domain names are held by the VIEs that provide the relevant services. The VIEs contributed an aggregate of 92.10% and 94.89% of the consolidated net revenues for the years ended December 31, 2021 and 2022, respectively. The rest of revenue are from South Asia and HK. As of December 31, 2021 and 2022, the VIEs accounted for an aggregate of 66.16% and 66.66%, respectively, of the consolidated total assets, and 57.08% and 233.49%, respectively, of the consolidated total liabilities. The assets that were not associated with the VIEs primarily consist of cash and cash equivalents. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from such estimates. Significant accounting estimates reflected in the Group’s financial statements are estimates and judgments applied in revenue recognition, allowance for receivables, impairment loss of investments, share-based compensation and realization of deferred tax assets. Actual results may differ materially from these estimates. |
Revenue recognition | Revenue recognition The Group follows the Financial Accounting Standards Board (FASB) Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers The core principle of Topic 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Online Lending Information Intermediary Services revenue Through its online platform, the Group provides intermediary services for the personal financing product, One Card, under which the holders of One Card could apply for loans on a revolving basis (“revolving loan products”). The Group also provides one-time loan facilitation services to meet various consumption needs (“non-revolving loan products”). For revolving loan products and non-revolving loan products, the Group’s services provided consisted of: a) Matching marketplace investors to potential qualified borrowers and facilitating the execution of loan agreements between the parties (referred to as “loan facilitation service”); and b) Providing repayment processing services for the marketplace investors and borrowers over the loan term, including repayment reminders and following up on late repayments (referred to as “post origination services”). The Group has determined that it is not the legal lender or borrower in the loan origination and repayment process, but acting as an intermediary to bring the lender and the borrower together. Therefore, the Group does not record loans receivable or payable arising from the loans facilitated between the investors and borrowers on its platform. The Group considered its customers to be both the investors and borrowers. The Group considered the loan facilitation services and post origination services as two separate services, which represented two separate performance obligations under Topic 606, as these two deliverables are distinct in that customers could benefit from each service on its own and the Group’s promises to deliver the services are separately identifiable from each other in the contract. The Group determined the total transaction price to be the service fees chargeable from the borrowers and investors. The transaction price was allocated to the loan facilitation services and post origination services using their relative standalone selling prices consistent with the guidance in Topic 606. The Group did not have observable standalone selling price information for the loan facilitation services or post origination services because it does not provide loan facilitation services or post origination services on a standalone basis. There was no direct observable standalone selling prices for similar services in the market that was reasonably available to the Group. As a result, the Group used an expected plus margin approach to estimate the standalone selling prices of loan facilitation services and post origination services as the basis of revenue allocation, which involved significant judgements. In estimating its standalone selling price for the loan facilitation services and post origination services, the Group considered the cost incurred to deliver such services, profit margin for similar arrangements, customer demand, effect of competitors on the Group’s services, and other market factors. For each type of service, the Group recognized revenue when (or as) it satisfied the service/performance obligation by transferring a promised good or service (that is, an asset) to a customer. Revenues from loan facilitation services were recognized at the time a loan was originated between the investor and the borrower and the principal loan balance was transferred to the borrower, at which time the loan facilitation service was considered completed. Revenues from post origination services are recognized on a straight-line basis over the term of the underlying loans as the services are provided ratably on a monthly basis. The majority of the service fees are charged to the borrowers, which is collected upfront at the loan inception or collected over the loan term. Investor paid service fees to the Group either at the beginning and at the end of the investment commitment period (in terms of automated investing tools) or over the terms of the loan (in terms of self-directing investing tools). In 2020, service fees charged at the beginning or at the end of the investment commitment period or over the terms of the loans in the periods presented are calculated to be equal to an annualized interest rate ranging from 0.5% to 1.5% based on the investment amount and the investment term. Service fees charged to borrowers and investors, including the service fees charged to investors collected at the end of the investment commitment period or over the terms of the loans in the periods presented, are combined as contract price to be allocated to the two performance obligations relating to loan facilitation services and post-origination services, and recognized as revenue when the relevant services are delivered. Revenue recognized related to service fees not yet received from investors that will be collected at the end of the investment commitment period and over the commitment period are recorded as accounts receivable. All service fees are fixed and not refundable. Revenue recognized is recorded net of value added tax (“VAT”). Remaining performance obligations represent the amount of the transaction price for which service has not been performed under post-origination services. In December 2020, the Group ceased publishing information relating to new offerings of investment opportunities in fixed income products for investors on its online lending information intermediary platform. Pursuant to certain collaboration arrangements entered into by the Group and a licensed asset management company, the rights of investors in existing loans underlying the fixed income products were transferred to the asset management company. After such transfer, the outstanding balance of loans facilitated became nil and loan facilitation services were nil in 2021 and 2022, and the asset management company provided the existing investors with services in relation to the return of their remaining investment in loans. Direct lending program revenue Through its direct lending program, the Group provides traffic referral services to financial institution partners, allowing the financial institution partners to gain access to borrowers who passed the Group’s risk assessment. The Group’s services provided consist of: a) Matching financial institution partners to potential qualified borrowers, and facilitating the execution of loan agreements between the parties (also referred to as “loan facilitation service”); and b) Providing repayment processing services for the financial institution partners and borrowers over the loan term, including repayment reminders and loan collection (also referred to as “post origination services”). Consistent with the revenue recognition policy under the online lending information intermediary services model, the Group has determined that it is not the legal lender or borrower in the loan origination and repayment process, but acting as an intermediary to bring the lender and the borrower together. Therefore, the Group does not record the loans receivable or payable arising from the loans facilitated between the financial institution partners and borrowers. The Group considers its customers to be both the financial institution partners and borrowers. The Group considers the loan facilitation service and post origination service as two separate performance obligations. The Group determines the total transaction price to be the service fees chargeable from the borrowers or the financial institution partners, which is the contracted price adjusted for variable consideration such as potential loan prepayment by the borrowers that could reduce the total transaction price, which is estimated using the expected value approach based on historical data and current trends of prepayments of the borrowers. Then the transaction price is allocated to the loan facilitation services and post origination services using their relative standalone selling prices consistent with the guidance in Topic 606, similar to online lending information intermediary services revenue. For each type of service, the Group recognizes revenue when (or as) the entity satisfies the service/performance obligation by transferring the promised service to customers. Revenues from loan facilitation services are recognized at the time a loan is originated between the financial institution partners and the borrowers and the principal loan balance is transferred to the borrowers, at which time the facilitation service is considered completed. Revenues from post origination services are recognized on a straight-line basis over the term of the underlying loans as the services are provided ratably on a monthly basis. Sales income Sales income from sales of the Group’s products to end customers directly through the Group’s online stores run on third party e-commerce platforms with a platform service agreement. Under the platform service agreement, the Group sets up online stores on the platforms to sell the Group’s products to end customers. The platforms provide services to support the operations of the online store including processing sales orders and collecting from end customers. The platforms charge the Group service fees based on the Group’s sales through the online stores. The Group enters sale contracts directly with the end customers. The platforms do not take control of the goods and do not include sales contracts with end customers. The Group is responsible for selling and fulfilling all obligations according to its sales contracts with end customers, including delivering products and providing customer support. Accordingly, the Group determined the end customers (as opposed to the platforms) as its customers. The sales contracts with end customers normally include a customer’s right to return products within 7 days after receipt of goods. If customers report defects after receipt but are still within the warranty period (varies from 6 months to 24 months), we will have the defective goods repaired, replaced or take another appropriate action to compensate timely, specifically, the Group should take action in 48 hours. The total amount of returned goods actually occurred in 2022 years is not material, the Group will do not estimate warranty obligation in 2022 years. The Group identifies its performance obligation to transfer control of the products ordered on the e-commerce platform to the customers. Contracts with customers may include multiple performance obligations if there is a need to separate one order into multiple deliveries. In those scenarios, transaction prices will be allocated to different performance obligations based on relative standalone selling prices. The Group recognizes sales income upon delivery of the product to end customers in an amount equal to the contract sales prices less estimated sales allowances for sales returns and sales incentives. Estimated sales allowances for sales returns, rebates, incentives and price protection are made based on contract terms and historical patterns. Subsequently, RMB1, RMB89 and RMB874 were returned to the Group for the years ended December 31, 2020, 2021 and 2022, respectively. Technical services The Group offers technical services to customers including technology empowerment services, operation and marketing services, customized software development, etc. Technology empowerment services to customers with respect to user acquisition, risk management, consumption scenario perceptions and comprehension and data modeling. Technical services generate revenues primarily from fixed-price short-term contracts from technology empowerment services, operations and marketing support services and is generally recognized over time on a ratable basis. Revenue generated from technology customized software development is recognized when control over the customized software has been transferred to the customer. Other revenues Other revenues mainly include wealth management services, customer referral and government subsidy income, etc. Wealth management services generate revenues from Internet Securities Services, Insurance Brokerage Services and Small consumptive business in Southeast Asia. The Group offers convenient and effective global asset allocation services, especially offshore securities investment services and IPO subscription service charge income, to individual investors so as to connect them with Hong Kong and U.S. stock markets. Internet Securities Services generates revenue from commissions through customers’ transactions in stocks by providing brokerage services for its customers. The Group enters into insurance brokerage service contracts with insurance companies with a pre-agreed commission. The commissions are normally calculated as a percentage (which varies depending on the type of insurance products involved) of the premium paid to the insurance companies from sales facilitated by the group\. For insurance brokerage services, the single performance obligation identified is to provide facilitation service to the insurance companies. For each type of wealth management services, the Group recognizes revenue when (or as) the entity satisfies the service/performance obligation by transferring the promised service to customers. The Internet Securities Service is recognized at a point in time on the trade date when the performance obligation is satisfied. The brokerage service commissions are earned when each individual service is completed. Value added taxes (“VAT”) The Group is subject to value added tax, or VAT, at a rate of 16% from May 1, 2018 to March 31, 2019 and 13% thereafter on sales of products, and at a rate of 6% on services rendered by the Group, less any deductible VAT the Group has already paid or borne, except for entities qualified as small-scale taxpayers at a VAT rate of 3% without any deduction. Since April 1, 2019, the Group has been subject to an additional 10% deductible VAT. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. VAT is reported as a deduction to revenue when incurred and amounted payable to RMB52,697, and RMB32,338 for the years ended December 31, 2021 and 2022, respectively. The net VAT balance between input VAT and output VAT is recorded as accrued expenses and other liabilities on the face of balance sheet. Disaggregation of revenues The Group generates revenues primarily from loan facilitation and post-origination services provided to investors, borrowers and financial institution partners through its online lending information intermediary services and direct lending program. The Group generates revenues from sales income and technical services provided to customers. The Group also recognizes other revenues, such as customer referrals and government subsidy income, etc. The following table provides further disaggregation by types of revenues recognized for year ended December 31,2020, 2021 and 2022: Loan Post facilitation origination Sales Technical Other 2020 services services income services revenues Total RMB RMB RMB RMB RMB RMB Online lending platform revenue Revolving loan products 26,376 203,748 — — — 230,124 Non-revolving loan products 84,485 202,097 — — — 286,582 Direct lending program revenue 66,286 453,257 — — — 519,543 Other revenue — — 5,667 38,313 175,776 219,756 Total 177,147 859,102 5,667 38,313 175,776 1,256,005 Loan Post facilitation origination Sales Technical Other 2021 services services income services revenues Total RMB RMB RMB RMB RMB RMB Online lending platform revenue Revolving loan products — 30,604 — — — 30,604 Non-revolving loan products — — — — — — Direct lending program revenue — 9,178 — — — 9,178 Other revenue — — 202,960 417,566 101,143 721,669 Total — 39,782 202,960 417,566 101,143 761,451 Loan Post facilitation origination Sales Technical Other 2022 services services income services revenues Total RMB RMB RMB RMB RMB RMB Online lending platform revenue Revolving loan products — 35,820 — — — 35,820 Other revenue — — 154,906 327,245 43,696 525,847 Total — 35,820 154,906 327,245 43,696 561,667 The Group manages its business through a comprehensive offering of financial products and services tailored to the needs of the investors, borrowers and customers. These financial products are categorized by the Group as Online Lending platform revenue, sales income, technical services and others. The following table illustrates the disaggregation of revenues by product offering in 2020, 2021 and 2022: December 31, December 31, December 31, 2020 2021 2022 Loan product revenue 847,576 — — Facilitation/post 188,673 39,782 35,820 Sales income 5,667 202,960 154,906 Technical services 38,313 417,566 327,245 Others 175,776 101,143 43,696 1,256,005 761,451 561,667 Loan products In 2020, 2021 and 2022, loan products represented product offerings tailored to the needs of the borrowers. Loan product revenues in the above table represented the portion of the service fees that were charged to borrowers through the Group’s online lending information intermediary services or financial institution partners under direct lending program business Deferred Revenue Deferred revenue consists of post origination service fees received from borrowers, investors and financial institution partners for which services have not yet been provided. Deferred revenues are recognized ratably as revenue when the post-origination services are delivered during the loan period. Revenue recognized during the year December 31,2022 that was included in the deferred revenue balance at the beginning of the year was RMB38,015. In December 2018, China National Internet Finance Rectification Office and the National Online Lending Rectification Office jointly issued the Guidance on the Classification and Disposal of Risks of Online Lending Information Intermediaries and Risk Prevention (“Circular 175”). Circular 175 tightens the regulation of the industry by requiring institutions other than normal intermediaries, including shell intermediaries with no substantive operations, small-scale intermediaries, intermediaries with high risks, and intermediaries that are unable to repay investors or otherwise unable to operate their businesses, to exit the online lending information intermediary industry. In light of the tightening regulatory environment, the Group significantly decreased online lending information intermediary services during the year ended December 31, 2020. The Group launched re-designed investment programs by transferring their creditor’s rights to a licensed asset management company named Ningxia Shunyi Asset Management Co. Ltd (“Ningxia Shunyi”). By opting for the Group’s new investment programs, individual investors authorized our platform to transfer its creditor’s rights to Ningxia Shunyi on their behalf at the individual investors’ option. On August 24,2020, the Group signed the asset management agreement and supplementary agreement with Ningxia Shunyi. According to the agreement, after the completion of the creditor’s rights transfer, Ningxia Shunyi and other third parties will provide services, including intermediary or management services. Pursuant to certain arrangements entered into among the Group, Ningxia Shunyi and Xi’an Guoheng Legal Service Co., Ltd. (“Guoheng”), Guoheng, with assistance from other third-party entities, provide such services to the Group. |
Quality assurance fund liability | Quality assurance fund liability In order to provide assurance for investors, the Group established an investors’ protection plan. The Group cooperated with third party guarantee and insurance companies, who provided investor protection services to replace the former quality assurance fund model, and the Group has no legal obligation to make compensation payments to investors on defaulted loans, and therefore no longer records a quality assurance fund liability in accordance with ASC 405-20, Extinguishments of liabilities. In August 2016, the Group cooperated with Guangdong Nanfeng Guarantee Ltd. (“Nanfeng Guarantee”) and Taiping General Insurance Co., Ltd, (“China Taiping”) to launch an investor protection plan to replace the former quality assurance fund model. As part of the agreement with Nanfeng Guarantee and China Taiping, the Group transferred its legal responsibility to guarantee the existing loans (i.e., existing and future defaults) to Nanfeng Guarantee and China Taiping. The Group agreed to pay the balance of the quality assurance fund as of August 25, 2016 of RMB287 million from its own special account to a depository account set up by Nanfeng Guarantee and supervised by China Taiping. For all new loans facilitated, the borrowers paid the quality assurance fund to Nanfeng Guarantee to manage as part of the guarantee fund reserve going forward. A separate insurance policy was entered into by each borrower and the insurance company (i.e., China Taiping), where the insurance company charged an insurance premium to the borrower to cover additional default risks. Nanfeng Guarantee used the quality assurance fund in the depository account to compensate the defaulted loans. China Taiping will not cover the repayment until the balance of the depository account at the depository bank becomes insufficient. As a result, the Group no longer has a legal obligation to make compensation payments to investors for defaults (both incurred and future) related to its existing loan portfolio as well as loans originated subsequent to August 25, 2016. In September 2017, the Group launched an enhanced investors’ protection plan with China Taiping and Nanfeng Guarantee. For loans with terms of 12 months or less, the borrower signed a “Loan Performance Guarantee Insurance Policy” with China Taiping and paid an insurance premium to China Taiping. In the event that default of the insured loan happens, China Taiping will repay the outstanding principal and the interest to the investors. For loans over 12 months, and for loans with terms of 12 months or less but not covered by China Taiping’s insurance protection, the borrower signed a “Confirmation to Participation in Guarantee Plan” and Nanfeng Guarantee provided the guarantee service. The borrowers pay the guarantee fee to Nanfeng Guarantee, which will be deposited in the guarantee fund depository account set up by Nanfeng Guarantee. The Group and Nanfeng Guarantee will determine the guarantee fund rate charged to borrowers based on the credit characteristics of the borrower as well as the underlying loan characteristics. If default of any loan protected by Nanfeng Guarantee happens, Nanfeng Guarantee will withdraw the funds from the guarantee fund reserve account to repay the investor within the fund’s balance as the upper limit. In January 2018, the Group announced new updates to the arrangements regarding loans with terms of more than 12 months. The borrower signs a guarantee contract with Guangdong Success Finance Guarantee Company Limited (“Guangdong Success”). According to the contract, when the borrower defaults and, if the balance of the guarantee fund reserve account is insufficient to cover the unpaid amounts, Guangdong Success will make additional repayment with an upper limit of a cap of five times the guarantee fee paid by the borrower. For loans with the terms of 12 months or less, the borrower pays the insurance premium and signs a “Loan Performance Guarantee Insurance Policy” with either China Taiping or PICC with whom the Group began to collaborate in March 2018. The loans under China Taiping’s insurance protection obligation were all due by August 15, 2019; however, China Taiping’s insurance protection obligation has not been completely fulfilled as of the date of this annual report due to the ongoing insurance claim and settlement process. PICC has provided insurance protection to all the new loans with terms of no more than 12 months that have been originated since May 2018 and covered by the insurance protection plan. Since November 2019, new loans with terms of no more than 12 months are no longer covered by PICC’s investors protection plan. However, as of the date of this annual report, PICC’s insurance protection obligation will continue for loans originated before November 2019 that were subject to PICC’s insurance protection plan. Furthermore, Guangdong Success no longer provides guarantee protection on new loans facilitated after February 2020; however, Guangdong Success’ obligation with respect to loans facilitated before February 2020 has not been completely fulfilled as of the date of this annual report. Since February 2020, the Group began to collaborate with Zhongtian Caizhi Financing Guarantee Co., Ltd. (“Zhongtian Guarantee”), an independent third party. For all the new loans originated since February 2020, borrowers are required to make contributions to the depository account set up by Zhongtian Guarantee. If a loan is past due for a certain period, Zhongtian Guarantee will use the cash available in the depository account to repay the investors up to the total amount of principal and the accrued interests. As the Group ceased the operation of its online lending information intermediary platform, in 2022, there was no such collaboration between the Group and Zhongtian Guarantee. |
Fair value | Fair value Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Authoritative literature provides a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: ● Level 1—inputs are based upon unadjusted quoted prices for identical assets or liabilities traded in active markets. ● Level 2—inputs are based upon quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3—inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based valuation techniques that include option pricing models, discounted cash flow models, and similar techniques. The carrying amounts of the Group’s financial instruments approximate their fair values because of their short-term nature. The Group’s financial instruments include cash, accounts receivable, notes receivable, amount due from related parties, amount due to re |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents represent cash on hand, demand deposits and highly liquid investments placed with banks or other financial institutions, which have original maturities less than three months. The Group considers all highly liquid investments with stated maturity dates of three months or less from the date of purchase to be cash equivalents. |
Restricted cash | Restricted cash A subsidiary of the Group receives funds from investors for the purpose of buying or selling securities on behalf of its customers. The funds are deposited in a bank account restricted only for the use of purchasing securities on behalf of the investors and the use of the funds within this account are monitored by the bank. Such bank balance represents an asset of the Group for the amounts due to customers for the segregated bank balance held and payable to customers on demand. A corresponding payable to customers is recorded upon receipt of the cash from the customer. As of December 31, 2021, and 2022, the Group had restricted bank deposits of RMB295,910 and RMB 198,727, respectively. |
Term deposits | Term deposits Term deposits consist of deposits placed with financial institutions with an original maturity of greater than three months and less than one year. As of December 31, 2021, and 2022, the Group had term deposits of RMB83,294 and RMB232,432, respectively. |
Investment in marketable securities | Investment in marketable securities Investment in marketable securities consist of stocks placed with securities. The Group purchased common stock on the open market through securities companies. As of December 31, 2021, and 2022, the Group had investment in marketable securities of RMB169,815 and RMB200,679 respectively. |
Loans receivable | Loans receivable Loans receivable are measured at amortized cost with interest accrued based on the contract rate. The Group evaluates the credit risk associated with the loans and estimates the cash flow expected to be collected over the life of the loans on an individual basis based on the Group’s past experience, the borrowers’ financial position, their financial performance and their ability to continue to generate sufficient cash flows. An allowance for doubtful accounts will be established for the loans with collection issues. Provision for uncollectable loans was recorded in the amount of RMB23,979 and RMB113,110 for the years ended December 31, 2021 and 2022, respectively. |
Inventories, net | Inventories, net Inventories consisting of products available for sale are valued at the lower of cost or net realizable value with cost determined using the first-in, first-out cost method. Net realizable value is based on estimated selling prices in the ordinary course of business, less reasonably predictable transportation cost. Adjustments are recorded when future estimated net realizable value is less than cost. Write-downs are recorded in cost of revenues in the consolidated statements of operations and comprehensive income (loss). Certain costs attributable to buying and receiving products, such as freight in, are also included in inventories. As of December 31, 2021, and 2022, the Group had inventories, net of RMB1,250 and RMB2,662 in “Prepaid expenses and other assets” in the balance sheets, respectively. |
Allowance for doubtful accounts | Allowance for doubtful accounts Accounts receivable, other receivables and loan receivables are stated at the historical carrying amount net of write-offs and allowance for doubtful accounts. The Group continuously monitors collections from its borrowers and customers and maintains an allowance for doubtful accounts based on various factors, including aging, historical collection data, specific collection issues that have been identified, borrower concentration, general economic conditions and other factors surrounding the credit risk of specific borrowers. Uncollectible receivables are written off when a settlement is reached for an amount that is less than the outstanding balance or when the Group has determined it is probable that the balance will not be collected. The movement of the allowance for doubtful accounts is as follows: Accounts Other Loans receivable receivables receivable Total RMB RMB RMB RMB Balance at December 31, 2020 1,446,994 82,952 329,364 1,859,310 Provision for doubtful accounts — — 23,979 23,979 Reversal (2,994 ) (3,026 ) (2,918 ) (8,938 ) Write-offs — (14,279 ) (14,279 ) Balance at December 31, 2021 1,444,000 65,647 350,425 1,860,072 Provision for doubtful accounts 612 26,854 113,100 140,566 Reversal (30 ) (65,640 ) (7,561 ) (73,231 ) Write-offs (14,605 ) (14,605 ) Balance at December 31, 2022 1,444,582 26,861 441,359 1,912,802 Refer to Note 4 - Loan Receivables for further information on the allowance for loans receivable and Note 5 - Prepaid expenses and other assets for further information on allowance for prepaid expenses and other assets. |
Business Combinations | Business Combinations The Group accounts for its business combinations using the acquisition method of accounting in accordance with ASC topic 805 (“ASC 805”), Business Combinations The determination and allocation of fair values to the identifiable assets acquired, liabilities assumed and non-controlling interests is based on various assumptions and valuation methodologies requiring considerable judgment from management. The most significant variables in these valuations are discount rates, terminal values, the number of years on which to base the cash flow projections, as well as the assumptions and estimates used to determine the cash inflows and outflows. The Group determines discount rates to be used based on the risk inherent in the related activity’s current business model and industry comparisons. Terminal values are based on the expected life of assets, forecasted life cycle and forecasted cash flows over that period. |
Long-term investments | Long-term investments The Group’s long-term investments consist of equity securities without readily determinable fair values, equity method investments, held-to-maturity and available-for-sale investments. a. Equity securities without readily determinable fair value Historically, for investee companies over which the Group did not have significant influence and a controlling financial interest, the Group accounts for these as cost method investments under ASC 325-20. In January, 2018, the Group adopted Accounting Standards Update (“ASU”) 2016-01, Financial Instruments—Recognition and Measurement of Financial Assets and Financial Liabilities b. Equity method investments Investee companies over which the Group has the ability to exercise significant influence, but does not have a controlling interest, are accounted for using the equity method. Significant influence is generally considered to exist when the Group has an ownership interest in the voting stock of the investee between 20% and 50%. Other factors, such as representation on the investee’s board of directors, voting rights and the impact of commercial arrangements, are also considered in determining whether the equity method of accounting is appropriate. Under the equity method of accounting, the Group’s share of the earnings or losses of the investee company, impairments, and other adjustments required by the equity method are reflected in “loss in equity method investments, net” in the consolidated statements of operations. An impairment charge is recorded if the carrying amount of the investment exceeds its fair value and this condition is determined to be other than temporary. The Group estimates the fair value of the investee company based on comparable quoted prices for similar investments in an active market, if applicable, or a discounted cash flow approach which requires significant judgments, including the estimate of future cash flows, which is dependent on internal forecasts, the estimate of long term growth rate of a company’s business, the estimate of the useful life over which cash flows will occur, and the determination of the weighted average cost of capital. The impairment losses on its equity method investment were RMB179,193, RMB58,033 and RMB427,697 during the years ended December 31, 2020, 2021 and 2022, respectively. c. Held-to-maturity and available-for-sale investments Investments are classified as held-to-maturity when the Group has the positive intent and ability to hold the debt security to maturity, and are recorded at amortized cost. As of December 31, 2021, and 2022, the balance of held-to-maturity securities were RMB38,000 and nil For investments in investees’ stocks which are determined to be debt securities, the Group accounts for it as long-term available-for-sale investments when they are not classified as either trading or held-to-maturity investments. The available-for-sale investments are carried at their fair value and the unrealized gains or losses from the changes in fair values are included in accumulated other comprehensive income. The Group reviews its investment for other-than-temporary impairment (“OTTI”) based on the specific identification method. The Group considers available quantitative and qualitative evidence in evaluating potential impairment of its investments. If the cost of an investment exceeds the investment’s fair value, the Group considers, among other factors, general market conditions, government economic plans, the duration and the extent to which the fair value of the investment is less than the cost, the Group’s intent and ability to hold the investment, and the financial condition and near-term prospects of the issuers. If there is OTTI on debt securities, the Group separates the amount of the OTTI into the amount that is credit related (credit loss component) and the amount due to all other factors. The credit loss component is recognized in earnings, which represents the difference between a security’s amortized cost basis and the discounted present value of expected future cash flows. The amount due to other factors is recognized in other comprehensive income if the entity neither intends to sell and will not more likely than not be required to sell the security before recovery. The difference between the amortized cost basis and the cash flows expected to be collected is accreted as interest income. The Group recorded impairment losses (reversal) on its held-to-maturity and available for sale investments during the years ended December 31, 2020, 2021 and 2022 of RMB1,221, RMB (676) and nil |
Goodwill | Goodwill Goodwill represents the excess of the purchase price of acquired businesses over the estimated fair value assigned to the individual assets acquired and liabilities assumed. Application of goodwill impairment test requires management judgement, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value to each reporting unit. The judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit. A reporting unit is identified as a component for which discrete financial information is available and is regularly reviewed by management. The impairment test is performed as of year-end or if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount by comparing the fair value of a reporting unit with its carrying value. If the fair value of the reporting unit exceeds its carrying amount, goodwill is not impaired and no further testing is required. If the fair value of the reporting unit is less than the carrying value, an impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Based on the Group’s impairment assessment, the Group recorded goodwill impairment of RMB50,291, nil |
Property, equipment and software, net | Property, equipment and software, net Property, equipment and software consists of computer and transmission equipment, furniture and office equipment, office buildings, software, and leasehold improvements, which are recorded at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated on a straight-line basis over the following estimated useful lives: Computer and electronic equipment 3 years Furniture and office equipment 5 years Office Building 20 years License 20 years Software 5 years Leasehold improvements Over the shorter of the remaining lease term or estimated useful life |
Origination and servicing expense | Origination and servicing expense Origination and servicing expense consists primarily of variable expenses and vendor costs, including costs related to credit assessment, customer and system support, payment processing services and collection associated with facilitating and servicing loans. |
Sales and marketing | Sales and marketing Sales and marketing consist primarily of selling and marketing expenses and cost of goods sold. Selling and marketing expenses consist primarily of various marketing expenses, including those related to user acquisition and retention and general brand and awareness building. Selling and marketing expenses were RMB340,769,RMB165,477 and RMB62,243 for the years ended December 31, 2020, 2021 and 2022, respectively. Cost of goods sold primarily consists of the purchase price of products, packaging material, handling costs and product delivery costs. Cost of goods sold is related to sales income. Cost of goods sold were RMB3,515, RMB59,088, and RMB46,424 for the years ended December 31, 2020, 2021 and 2022, respectively. |
Advertising costs | Advertising costs Advertising costs are expensed as incurred in accordance with ASC 720-35, Other Expense-Advertising costs. Advertising costs are included in sales and marketing expenses in the consolidated statements of comprehensive income. Advertising costs were RMB 20,704, RMB 495 and RMB 19 for the years ended December 31, 2020, 2021 and 2022, respectively. |
Government subsidy income | Government subsidy income The Group receives government grants and subsidies in the PRC from various local governments from time to time which are granted for general corporate purposes and to support its ongoing operations in the region. The grants are determined at the discretion of the relevant government authority and there are no restrictions on their use. The government subsidies are recorded as non-operating income in the consolidated statements of operations and comprehensive income (loss) in the period the cash is received. The government grants received by the Group were RMB27,440, RMB437 and RMB512 for the years ended December 31, 2020, 2021 and 2022, respectively. |
Leases | Leases The Group leases certain office premises in different cities in the PRC and overseas under operating leases. In accordance with FASB ASC Tpoic 842, the Group determines whether an arrangement constitutes a lease and records lease liabilities and right-of-use assets on its consolidated balance sheets at the lease commencement date. The Group measures its lease liabilities based on the present value of the total lease payments to be paid discounted based on the more readily determinable rate implicit in the lease or the Groups incremental borrowing rate, which is the estimated rate the Group would be required to pay for a collateralized borrowing equal to the total lease payments over the term of the lease. The Group estimates its incremental borrowing rate based on an analysis of corporate debt of companies with credit and financial profiles similar to its own. The Group measures right-of-use assets based on the corresponding lease liability adjusted for payments made to the lessor at or before the commencement date, and initial direct costs it incurs under the lease. The Group begins recognizing rent expense when the lessor makes the underlying asset available for use by the Group. The Group’s leases have remaining lease terms of up to three For short-term leases of 12 months or less, the Group records rent expense in its consolidated statements of operations on a straight-line basis over the lease term. |
Income taxes | Income taxes Current income taxes are provided on the basis of net profit (loss) for financial reporting purposes, adjusted for income and expenses which are not assessable or deductible for income tax purposes, in accordance with the laws of the relevant tax jurisdictions. Deferred income taxes are provided using asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are also provided for net operating loss carryforwards. Net deferred tax assets are recognized to the extent that these assets are more likely than not to be realized. In making such a determination, management consider all positive and negative evidence, including future reversals of projected future taxable income and results of recent operations. Net deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more-likely-than-not that a portion of or all of the net deferred tax asset will not be realized. In order to assess uncertain tax positions, the Group applies a more likely than not threshold and a two-step approach for the tax position measurement and financial statement recognition. Under the two-step approach, the first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. The Group recognizes interest and penalties, if any, under accrued expenses and other current liabilities on its consolidated balance sheet and under other expenses in its consolidated statements of operation and comprehensive income (loss). The Group did not have any significant unrecognized uncertain tax positions as of and for the years ended December 31, 2021 and 2022. |
Share-based compensation | Share-based compensation Share-based payment transactions with employees and management, such as share options, are measured based on the grant date fair value of the equity instrument. The Group has elected to recognize compensation expenses using the straight-line method for all employee equity awards granted with graded vesting provided that the amount of compensation cost recognized at any date is at least equal to the portion of the grant-date value of the options that are vested at that date, over the requisite service period of the award, which is generally the vesting period of the award. Compensation expenses for awards with performance conditions is recognized when it is probable that the performance condition will be achieved. The Group elects to recognize forfeitures when they occur. |
Net income (loss) per ordinary share | Net income (loss) per ordinary share Basic net income (loss) per ordinary share is computed by dividing net income (loss) attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Diluted net income per ordinary share reflects the potential dilution that would occur if securities were exercised or converted into ordinary shares. The Group has share options which could potentially dilute basic net income per ordinary share in the future. Diluted net income per ordinary share is computed using the two-class method or the as-if-converted method, whichever is more dilutive. When the Group has a loss, the dilutive effect of these securities is not included as they would be anti-dilutive. |
Foreign currency translation | Foreign currency translation The Group’s functional and reporting currency is RMB. The functional currency of the Group’s entities in Hong Kong is Hong Kong dollars. The functional currency of the Group’s subsidiaries and VIEs in the PRC is Renminbi (“RMB”). Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency at the rates of exchange at the balance sheet date. Transactions in currencies other than the functional currency during the year are converted into the functional currency at the applicable rates of exchange prevailing when the transactions occurred. Transaction gains and losses are recognized in the consolidated statements of operations. Assets and liabilities are translated from each entity’s functional currency to the reporting currency using the exchange rates in effect on the balance sheet date. Equity amounts are translated at historical exchange rates. Revenues, expenses, gains and losses are translated using the average rates for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component in the consolidated statements of comprehensive income (loss). |
Convenience translation | Convenience translation Translations of amounts from RMB into US$ are presented solely for the convenience of the reader and were calculated at the rate of US$1.00 = RMB6.8972 on December 31, 2022, the last business day for the year ended December 31, 2022, representing the exchange rate published by the Federal Reserve Board. No representation is intended to imply that the RMB amounts could have been, or could be, converted, realized or settled into the US$ at such rate, or at any other rate. |
Significant risks and uncertainties | Significant risks and uncertainties i) Foreign currency risk RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into foreign currencies. The value of RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. The cash and cash equivalents of the Group included aggregate amounts of RMB 1,455,089 and RMB1,751,808, which were denominated in RMB at December 31, 2021 and December 31,2022, respectively, representing 53.26% and 71.99% of the cash and cash equivalents at December 31 ,2021 and December 31,2022 respectively. ii) Concentration of credit risk Financial instruments that potentially expose the Group to significant concentration of credit risk primarily consist of cash and cash equivalents, accounts receivable, loans receivable, prepaid expenses and other assets. As of December 31, 2021 and December 31,2022 the majority of the Group’s cash and cash equivalents were deposited in financial institutions located in the PRC. According to the Deposit Insurance Regulation in different areas, RMB25,500 was insured and RMB1,726,308 was not insured in mainland China with the policy of RMB 500,000 insured by each banking financial institution, RMB2,652 was insured and RMB581,686 was not insured in HK, with the policy of HKD 500,000 insured by each banking financial institution, RMB 3,449 was insured and RMB 3,450 was not insured in America with the policy of $250,000 insured by each banking financial institution, RMB 90,235 was not insured in Southeast Asia with the policy of nil insured. Accounts receivable are typically unsecured and are derived from revenue earned from customers in the PRC. The risk with respect to accounts receivable is mitigated by credit evaluations the Group performs on its customers and its ongoing monitoring process of outstanding balances. The Group made loans to third-party companies under loan agreements and is exposed to credit risk in the case of defaults by the debtors. The maximum amount of loss due to credit risk is limited to the total outstanding principal balance plus accrued interest on the balance sheets dates. As of December 31, 2021 and December 31,2022, there was RMB260,224 and RMB151,368 of loans receivable outstanding, respectively. The Group evaluates and monitors the credit worthiness of the debtors and records an allowance for uncollectible accounts based on an assessment of the payment history, the existence of collateral, current information and events, and the facts and circumstances around the credit risk of the debtor. Refer to Note 2 Details of the VIE for concentrations in the geographic areas. There are RMB 185 million (representing 33% ), RMB 145 million (representing 26% ) and RMB 87 million(representing 16% ) from customer A, customer B and customer C individually represented greater than 10% of the total net revenues for the year ended December 31, 2022. There are RMB141 million (representing 19% )and RMB102 million (representing13% )from customer A and customer B individually represented greater than 10% of the total net revenues for the year ended December 31, 2021. There are no customers of the Group that accounted for greater than 10% of the Group’s carrying amount of accounts receivable as of December 31, 2021 and 2022. |
Recent accounting pronouncements not yet adopted | Recent accounting pronouncements adopted In January 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2020-01, Investments—Equity Securities |
Current expected credit losses impairment | Current expected credit losses impairment In June 2016, the FASB issued ASU 2016-13,Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASC 326”), which requires entities to measure all expected credit losses for financial assets held at the reporting date using a current expected credit loss model based on historical experience, current conditions, and reasonable and supportable forecasts. The Group adopted ASC 326 on January 1, 2020 using the modified retrospective transition approach. Based on the nature of the Group’s financial instruments within the scope of this standard, which are primarily accounts receivable and other receivables, the adoption of the new standard did not have a material effect on the Group’s consolidated financial statements. The Group does not believe that other recently issued accounting standards, if currently adopted, will have a material effect on the Group’s consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of assets, liabilities, results of operations and cash flows of the VIEs and their subsidiaries | As of December 31, As of December 31, 2021 2022 RMB RMB Assets: Cash and cash equivalents 1,436,350 1,763,619 Term deposits 85,000 5,000 Investment in marketable securities 78,725 58,384 Accounts receivable, net 79,605 69,549 Other receivables, net 34,439 99,494 Loan receivables, net 234,750 111,306 Amounts due from related parties 41,750 1,425 Prepaid expenses and other assets 705,528 210,450 Contracts assets, net — — Long-term investments, net 490,314 457,757 Operating lease right-of-use assets, net 10,602 5,423 Property, equipment and software, net 32,593 60,254 Goodwill 72,304 21,932 Intangible assets, net 37,386 16,933 Total assets 3,339,346 2,881,526 Liabilities: Deferred revenue 46,175 8,802 Payroll and welfare payable 12,054 15,685 Income taxes payable 255,618 298,785 Accrued expenses and other liabilities 138,144 76,138 Operating lease liabilities 9,700 4,918 Amounts due to related parties 23,967 991,498 Deferred tax liabilities 5,041 4,233 Total liabilities 490,699 1,400,059 For the years ended December 31, 2020 2021 2022 RMB RMB RMB Net revenues 1,145,210 701,329 535,149 Net (loss) (1,479,883 ) (154,732 ) (357,418 ) For the years ended December 31, 2020 2021 2022 RMB RMB RMB Net cash provided by (used in) operating activities (753,416 ) 1,014,571 251,106 Net cash used in investing activities (511,832 ) (51,410 ) 76,163 Net cash provided by (used in) financing activities — 3,305 — |
Schedule of disaggregation by types of revenues and revenue by product offerings | Loan Post facilitation origination Sales Technical Other 2020 services services income services revenues Total RMB RMB RMB RMB RMB RMB Online lending platform revenue Revolving loan products 26,376 203,748 — — — 230,124 Non-revolving loan products 84,485 202,097 — — — 286,582 Direct lending program revenue 66,286 453,257 — — — 519,543 Other revenue — — 5,667 38,313 175,776 219,756 Total 177,147 859,102 5,667 38,313 175,776 1,256,005 Loan Post facilitation origination Sales Technical Other 2021 services services income services revenues Total RMB RMB RMB RMB RMB RMB Online lending platform revenue Revolving loan products — 30,604 — — — 30,604 Non-revolving loan products — — — — — — Direct lending program revenue — 9,178 — — — 9,178 Other revenue — — 202,960 417,566 101,143 721,669 Total — 39,782 202,960 417,566 101,143 761,451 Loan Post facilitation origination Sales Technical Other 2022 services services income services revenues Total RMB RMB RMB RMB RMB RMB Online lending platform revenue Revolving loan products — 35,820 — — — 35,820 Other revenue — — 154,906 327,245 43,696 525,847 Total — 35,820 154,906 327,245 43,696 561,667 |
Schedule of disaggregation of revenues by product offering | December 31, December 31, December 31, 2020 2021 2022 Loan product revenue 847,576 — — Facilitation/post 188,673 39,782 35,820 Sales income 5,667 202,960 154,906 Technical services 38,313 417,566 327,245 Others 175,776 101,143 43,696 1,256,005 761,451 561,667 |
Schedule of movement of allowance for credit losses | Accounts Other Loans receivable receivables receivable Total RMB RMB RMB RMB Balance at December 31, 2020 1,446,994 82,952 329,364 1,859,310 Provision for doubtful accounts — — 23,979 23,979 Reversal (2,994 ) (3,026 ) (2,918 ) (8,938 ) Write-offs — (14,279 ) (14,279 ) Balance at December 31, 2021 1,444,000 65,647 350,425 1,860,072 Provision for doubtful accounts 612 26,854 113,100 140,566 Reversal (30 ) (65,640 ) (7,561 ) (73,231 ) Write-offs (14,605 ) (14,605 ) Balance at December 31, 2022 1,444,582 26,861 441,359 1,912,802 |
Schedule of estimated useful lives of property and equipment | Computer and electronic equipment 3 years Furniture and office equipment 5 years Office Building 20 years License 20 years Software 5 years Leasehold improvements Over the shorter of the remaining lease term or estimated useful life |
LOANS RECEIVABLE, NET (Tables)
LOANS RECEIVABLE, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Schedule of loan receivables | December 31, December 31, 2021 2022 Loans receivable 289,705 587,624 Less: allowance for doubtful accounts (29,481 ) (441,447 ) Total 260,224 146,177 |
Summary of aging of loans | 1 - 89 days 90 days or Total past past due more past due due Current Total loans December 31, 2021 — 23,000 23,000 266,705 289,705 December 31, 2022 1,700 348,264 349,964 237,660 587,624 |
PREPAID EXPENSES AND OTHER AS_2
PREPAID EXPENSES AND OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Prepaid And Other Assets Disclosure [Abstract] | |
Schedule of prepaid expense and other assets | December 31, December 31, 2021 2022 Deposits(i) 68,219 127 Advances to suppliers 19,732 9,971 Prepaid taxes (ii) 304,278 203,661 Prepaid service fee 36,306 7,429 Prepaid investment 304,996 — Others 22,347 5,548 Less: Allowance for doubtful accounts (4,000 ) (4,000 ) Total 751,878 222,736 (i) Deposits mainly include rent deposits and deposits to third-party vendors. (ii) Prepaid taxes were the deductible VAT which can be deducted in the future. |
FAIR VALUE OF ASSETS AND LIAB_2
FAIR VALUE OF ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities measured at fair value | Total December 31, 2021 Level 1 Level 2 Level 3 Fair Value RMB RMB RMB RMB Assets Long-term investments — — 413,959 413,959 Investment in marketable securities 169,815 — — 169,815 Total Assets 169,815 — 413,959 583,774 December 31, 2022 Assets Long-term investments — — 431,301 431,301 Investment in marketable securities 200,679 — — 200,679 Total Assets 200,679 — 431,301 631,980 |
LONG-TERM INVESTMENTS (Tables)
LONG-TERM INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of long term investments | Equity securities Equity Available for sales Held-to- fair value investments investment investment Total RMB RMB RMB RMB Balance at December 31, 2019 543,178 206,823 10,443 15,200 775,644 Additions 396,549 53,929 — 19,100 469,578 Disposals (5,000 ) — (10,443 ) — (15,443 ) Share of (loss) in equity method investments — (21,317 ) — — (21,317 ) Impairment charges (282,076 ) (179,193 ) — (1,221 ) (462,490 ) Impact of exchange rate (4,949 ) (2,751 ) — (7,700 ) Balance at December 31, 2020 647,702 57,491 — 33,079 738,272 Additions 97 19,971 — 38,000 58,068 Disposals — (7,652 ) — (18,983 ) (26,635 ) Loss in held-to-maturity investment — — — (14,096 ) (14,096 ) Share of (loss) in equity method investments — (7,167 ) — — (7,167 ) Impairment charges (23,193 ) (4,229 ) — — (27,422 ) Impact of exchange rate 6,787 (381 ) — — 6,406 Balance at December 31, 2021 631,393 58,033 38,000 727,426 Additions — 3,000 14,207 17,207 Disposal — (14,738 ) (38,000 ) (52,738 ) Loss in held-to-maturity investment — — — — Share of income in equity method investments — 19,432 — 19,432 Impairment charges (164,161 ) (3,452 ) (14,207 ) (181,820 ) Impact of accounting method changes (361,100 ) 361,100 — — Impact of exchange rate (3,622 ) 4,322 — 700 Balance at December 31, 2022 102,510 427,697 — 530,207 |
Schedule of equity securities without readily determinable fair value | December 31, December 31, 2021 2022 RMB RMB EZhou Rural Commercial Bank 40,000 40,000 BitPay, Inc. (Delaware)(i) 25,490 27,589 Zhuhai Yuanxin investment partnership (limited partnership(“ZhuhaiYuanxin”) 15,000 — Ningbo Weilie investment management partnership (limited partnership) (“NingboWeilie”) (ii) 20,000 20,000 Shanghai Xinzheng Financial Information Consulting Co., Ltd. (iii) 129,786 — Hubei Consumption Financial Company (“Hubei Consumption”) 361,100 — Others 40,017 14,921 Total 631,393 102,510 |
Schedule of equity method investments | December 31, December 31, 2021 2022 RMB RMB CSJ Golden Bull (Beijing) Investment Consulting Co., Ltd (“CSJ Golden Bull”) (i) 17,101 10,549 PT.TIRTA Finance(ii) 19,760 24,218 Hubei Consumption Financial Company (“Hubei Consumption”) (iii) — 390,019 Others 21,172 2,911 Total 58,033 427,697 |
PROPERTY, EQUIPMENT AND SOFTW_2
PROPERTY, EQUIPMENT AND SOFTWARE, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, equipment and software, net | December 31, December 31, December 31, 2020 2021 2022 RMB RMB RMB Office building 19,470 19,525 51,142 Computer and electronic equipment 57,856 58,351 60,402 Furniture and office equipment 10,065 10,386 13,895 Leasehold improvements 30,069 28,377 9,339 Software 46,008 54,492 53,563 Total property and equipment 163,468 171,131 188,340 Accumulated depreciation and amortization (79,147 ) (104,284 ) (95,655 ) Impairment loss for technology of discontinued online lending information services (20,925 ) (23,296 ) (23,296 ) Property, equipment, net 63,396 43,551 69,389 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets, net | December 31, December 31, December 31, 2020 2021 2022 RMB RMB RMB Brokerage licenses 51,880 51,152 51,236 Trade Name 6,400 6,400 6,400 Technology 27,600 27,600 27,600 Total Intangible assets 85,880 85,152 85,236 Accumulated amortization (24,247 ) (30,649 ) (32,881 ) Impairment loss of technology with discontinued online lending information platform (17,220 ) (17,220 ) (17,220 ) Intangible assets, net 44,413 37,283 35,135 |
ACCRUED EXPENSES AND OTHER LI_2
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Expenses and Other Liabilities [Abstract] | |
Schedule of accrued expenses and other liabilities | December 31, December 31, 2021 2022 RMB RMB Accrued advertising and marketing fees 52,371 66,786 Payables related to service fees and others 93,897 26,488 Amounts due to customers for the segregated bank balances held on their behalf 273,774 153,701 Deposits 2,575 586 Value added tax and surcharges 13,899 1,165 Other 30,732 1,620 Total accrued expenses and other current liabilities 467,248 250,346 |
RELATED PARTY BALANCES AND TR_2
RELATED PARTY BALANCES AND TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of provided by related parties | Year ended Year ended Year ended December 31, December 31, December 31, 2020 2021 2022 RMB RMB RMB Investors and borrower acquisition and referral services: Beijing Jiuzao 852 — — Shanghai Qiuzhi 49 — — Subtotal 901 — — Insurance agency service: Hainan Chenxi — — 519 Credit inquiry services: Hangzhou Shuyun 358 — — Total 1,259 — 519 |
Schedule of amounts due from related parties | December 31, December 31, 2021 2022 RMB RMB Zhongzheng Jinniu — 25,030 Hainan Chenxi 41,750 67,750 Subtotal 41,750 92,780 Impairment — (92,780 ) Total 41,750 — |
Schedule of amounts due to related parties | December 31, December 31, 2021 2022 RMB RMB Zhuhai Hengqin Payment 27 — Nanjing Lefang 19,218 4,620 Hangzhou Shuyun 18 — Beijing Jiuzao 4,704 — Hainan Chenxi — 519 Diaobiao Zhonghai — 3 Total 23,967 5,142 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of current and deferred components of the income tax expense | Year ended Year ended Year ended December 31, December 31, December 31, 2020 2021 2022 RMB RMB RMB Current tax 42,758 26,735 11,623 Deferred tax 495,564 — — Total 538,322 26,735 11,623 |
Schedule of reconciliation of income tax expenses at statutory tax rate to income tax expense recognized | Year ended Year ended Year ended December 31, December 31, December 31, 2020 2021 2022 RMB RMB RMB Loss before income tax expenses (1,691,563 ) (201,568 ) (602,746 ) Statutory tax rate in the PRC 25 % 25 % 25 % Income tax expense at statutory tax rate (422,891 ) (50,392 ) (150,686 ) Non-deductible expenses 278,303 700 3,486 Change in valuation allowance 504,360 60,421 32,463 Effect of tax holiday and preferential tax rate 104,218 6,522 163,113 Share-based compensation expenses 72,657 13,085 1,332 Effect of different tax rates of subsidiaries operating in other jurisdictions 1,675 (3,601 ) (38,085 ) Income tax expense 538,322 26,735 11,623 |
Schedule of tax holiday and preferential tax rate | December 31, December 31, December 31, 2020 2021 2022 RMB RMB RMB The aggregate amount of tax holiday and preferential tax rate (104,218 ) (6,522 ) (163,113 ) The aggregate effect on basic and diluted net income per ordinary share: -Basic and diluted (0.52 ) (0.03 ) (0.70 ) |
Schedule of deferred tax assets | December 31, December 31, December 31, 2020 2021 2022 RMB RMB RMB Deferred revenue 11,786 — — Accrued expenses 106,404 — — Allowance for doubtful accounts 330,488 368 478 Net operating loss carry forwards 142,722 120,523 52,660 Excess advertising fee 12,630 — Less: valuation allowance (604,030 ) (120,891 ) (53,138 ) Total deferred tax assets, net — — — |
Schedule of movements of valuation allowance | 2020 2021 2022 RMB RMB RMB Balance at beginning of year 99,670 604,030 120,891 Additions 504,360 — 32,463 Reversal — (483,139 ) (100,216 ) Balance at December 31,2021 and 2022 604,030 120,891 53,138 |
Schedule of deferred tax liabilities | December 31, December 31, 2021 2022 RMB RMB Intangible asset from acquisition 7,730 7,126 Total deferred tax liabilities 7,730 7,126 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of assumptions using the binomial option pricing model | Year ended Year ended Year ended December 31, December 31, December 31, 2020 2021 2022 Risk free rate of interest 0.27%-1.47% 0.84%~1.61% n/a Volatility 48.8%-59.5% 113.60%~116% n/a Dividend yield — — n/a Exercise multiples 2.2 / 2.8 2.2 n/a Life of option (years) 2.5-6.0 5 n/a |
Schedule of activity in share options | Number of Weighted Weighted Options Price Fair Value RMB RMB Outstanding as of December 31, 2020 29,273,408 17.24 40.24 Granted 4,925,211 0.76 8.00 Exercised (6,885,255 ) 0.07 23.49 Forfeited (7,264,080 ) 9.52 5.88 Outstanding as of December 31, 2021 20,049,284 8.82 42.57 Granted — — — Exercised (4,142,985 ) 0.00 27.02 Forfeited (6,996,980 ) 9.31 72.27 Outstanding as of December 31, 2022 8,909,319 17.61 31.02 |
Schedule of share options outstanding | Options Outstanding Options Exercisable Weighted Weighted Average Average Number Remaining Number Remaining Exercise Price Outstanding Contractual Life Outstanding Contractual Life RMB 0.06 442,521 — 442,521 — 6.74 500,000 4.23 75,000 4.23 7.78 476,000 — 476,000 — 14.32 782,200 0.09 782,200 0.09 14.72 2,466,000 — 2,466,000 — 24.06 610,700 1.10 543,500 1.01 24.11 3,631,898 0.17 3,445,478 0.06 8,909,319 8,230,699 |
Schedule of share based compensation recognized related to share options granted and ordinary shares issued | For the year ended For the year ended For the year ended December 31, December 31, December 31, 2020 2021 2022 RMB RMB RMB General and administrative expenses 290,630 52,338 5,329 |
NET (LOSS) PER ORDINARY SHARE (
NET (LOSS) PER ORDINARY SHARE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted net loss per share | For the years ended December 31, 2020 2021 2022 RMB RMB RMB Numerator: Net (loss) attributable to ordinary shareholders for computing net income per ordinary shares-basic (2,258,895 ) (234,908 ) (594,741 ) Denominator: Weighted average ordinary shares outstanding used in computing net income per ordinary shares-basic and diluted 198,596,879 213,635,470 233,216,045 Net (loss) per ordinary share attributable to ordinary shareholders-basic and diluted (11.37 ) (1.1 ) (2.55 ) |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of information about operating leases | For the year ended December 31, Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 11,620 Non-cash right-of-use assets in exchange for new lease liabilities: Operating leases 4,409 Weighted average remaining lease term Operating leases 0.59 Weighted average discount rate Operating leases 4.38 % Short-term lease cost 291 |
Schedule of maturity of operating lease liabilities | The years ended December 31, RMB 2023 7,137 2024 1,381 2025 5 Subtotal 8,523 Less imputed interest 207 Total 8,316 |
SCHEDULE 1-CONDENSED BALANCE _2
SCHEDULE 1-CONDENSED BALANCE SHEETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of condensed balance sheets | December 31, December 31, December 31, 2021 2022 2022 RMB RMB US$ Assets: Cash and cash equivalents 568,973 411,047 59,596 Amounts due from subsidiaries and VIEs 1,368,526 1,444,870 209,486 Other receivables 1,912 — — Prepaid expenses and other assets 1,993 — — Investments in subsidiaries and VIEs 2,481,330 1,912,666 277,312 Total assets 4,422,734 3,768,583 546,394 Liabilities: Accrued expense and other liability 290,808 112,384 16,294 Amounts due to subsidiaries and VIEs 38 — — Total liabilities 290,846 112,384 16,294 Shareholders’ Equity: Class A ordinary shares (US$0.00001 par value; 460,000,000 shares authorized; 170,161,275 and 174,304,260 shares issued and outstanding as of December 31, 2021 and 2022, respectively) 1 1 — Class B ordinary shares (US$0.00001 par value; 200,000,000 shares authorized; 61,162,400 and 61,162,400 shares issued and outstanding as of December 31, 2021 and 2022, respectively) 1 1 — Additional paid-in capital 5,780,609 5,786,068 838,901 Retained earnings (deficit) (1,591,305 ) (2,220,859 ) (321,994 ) Accumulated other comprehensive income (55107 ) 90,988 13,239 Total shareholders’ equity 4,131,888 3,656,199 530,099 Total liabilities and shareholders’ equity 4,422,734 3,768,583 546,393 |
Schedule of condensed statements of operations | Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, 2020 2021 2022 2022 RMB RMB RMB US$ Equity in loss of subsidiaries and VIEs (1,855,047 ) (150,814 ) (540,947 ) (78,433 ) Operating costs and expenses (333,427 ) (89,245 ) (54,329 ) (7,877 ) Provision for contract assets and receivables — — — — Interest income 12,183 5,151 535 78 Impairment loss of investments (97,892 ) — — — Other income, net 15,288 — — — Net income (loss) (2,258,895 ) (234,908 ) (594,741 ) (86,232 ) Net loss per ordinary share Basic and diluted (227.49 ) (1.10 ) (2.55 ) (0.37 ) Weighted average number of ordinary shares Basic and diluted 9,929,844 213,635,470 233,216,045 233,216,045 |
Schedule of condensed statements of comprehensive income (loss) | Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, 2020 2021 2022 2022 RMB RMB RMB US$ Net income (loss) (2,258,895 ) (234,908 ) (594,741 ) (86,232 ) Other comprehensive income Foreign currency translation adjustments (97,245 ) (48,154 ) 146,098 21,182 Unrealized gains (losses) on available-for-sale investments — — — — Comprehensive Income (Loss) (2,356,140 ) (283,062 ) (448,643 ) (65,050 ) |
Schedule of Condensed statements of cash flow | Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, 2020 2021 2022 2022 RMB RMB RMB US$ Cash Flows from Operating Activities: Net income (loss) (2,258,895 ) (234,908 ) (594,741 ) (86,232 ) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: — — — — Equity in earnings (loss) of subsidiaries and VIEs 1,855,047 150,814 528,114 76,572 Share-based compensation expense 290,630 52,338 5,459 791 Impairment loss of equity securities without readily determinable fair value 97,892 — — — Changes in operating assets and liabilities: — — — — Other receivables — (1,259 ) 1,912 277 Prepaid expenses and other assets 6,667 87 1,993 289 Accrued expense and other liabilities 5,901 282,124 (178,424 ) (25,869 ) Amounts due to subsidiaries and VIEs (147 ) (1 ) (38 ) (6 ) Amounts due from subsidiaries and VIEs 45,654 (476,054 ) (76,344 ) (11,069 ) Net cash provided by (used in) operating activities 42,749 (226,859 ) (312,069 ) (45,247 ) Cash Flows from Investing Activities: Investment in subsidiaries 18,774 — — — Loan to related parties (97,514 ) — — — Disposal of long-term investments — 33,130 99,465 14,421 Net cash provided by (used in) investing activities (78,740 ) 33,130 99,465 14,421 Cash Flows from Financing Activities: Proceeds from exercise of share options — 433 — — Net cash provided by financing activities — 433 — — Effect of exchange rate changes (1 ) (15,828 ) 41,845 6,068 Net increase (decrease) in cash and cash equivalents (35,992 ) (209,124 ) (170,759 ) (24,758 ) Cash and cash equivalents at beginning of year 814,089 778,097 568,973 82,493 Cash and cash equivalents at end of year 778,097 568,973 398,214 57,735 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) ¥ / shares in Units, $ / shares in Units, $ in Thousands, $ in Thousands | 11 Months Ended | 12 Months Ended | ||||||||
Apr. 01, 2019 | Mar. 31, 2019 | Dec. 31, 2022 CNY (¥) ¥ / shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2022 HKD ($) | Dec. 31, 2019 | Aug. 25, 2016 CNY (¥) | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||||||||
Percentage of net revenue contributed by VIE | 94.89% | 94.89% | 92.10% | |||||||
Percentage of consolidated total assets contributed by VIE | 66.66% | 66.66% | 66.16% | |||||||
Percentage of consolidated total liabilities contributed by VIE | 233.49% | 233.49% | 57.08% | |||||||
Sales allowances for sales returns and sales incentives | ¥ 874,000 | ¥ 89,000 | ¥ 1,000 | |||||||
Value added tax rate | 13% | 13% | ||||||||
Value added tax rate for small scale tax payers | 3% | 3% | ||||||||
Additional deductible value added tax rate | 10% | |||||||||
Value added tax | ¥ 32,338,000 | 52,697,000 | ||||||||
Balance of the quality assurance fund | ¥ 287,000,000 | |||||||||
Restricted bank deposits | 198,727,000 | 295,910,000 | $ 28,813 | |||||||
Term deposits | 232,432,000 | 83,294,000 | 33,699 | |||||||
Investment in marketable securities | 200,679,000 | 169,815,000 | $ 29,096 | |||||||
Inventories, net | 2,662,000 | 1,250,000 | ||||||||
Impairment losses | 102,510,000 | 631,393,000 | 282,076,000 | |||||||
Impairment loss of equity method investment | 427,697,000 | 58,033,000 | 179,193,000 | |||||||
Balances of held-to-maturity securities | 38,000,000 | |||||||||
Impairment losses (reverse) on held-to-maturity and available for sale investments | 676,000 | 1,221,000 | ||||||||
Goodwill impairment | 200,000 | $ 29 | 50,291,000 | |||||||
Selling and marketing expenses | 62,243,000 | 165,477,000 | 340,769 | |||||||
Cost of goods sold | 46,424,000 | $ 6,731 | 59,088,000 | 3,515,000 | ||||||
Advertising costs | 19,000 | 495,000 | 20,704,000 | |||||||
Government grants received | ¥ 512,000 | 437,000 | ¥ 27,440,000 | |||||||
Calculated rate at per share | (per share) | ¥ 6.8972 | $ 1 | ||||||||
Deposit insurance insured | ¥ 25,500,000 | |||||||||
Deposit insurance uninsured | 1,726,308,000 | |||||||||
Loan receivable | ¥ 151,368,000 | ¥ 260,224,000 | ||||||||
Revenues percentage | 10% | 10% | 10% | |||||||
Minimum [Member] | ||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||||||||
Voting stock percentage | 20% | 20% | ||||||||
Maximum [Member] | ||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||||||||
Voting stock percentage | 50% | 50% | ||||||||
Remaining lease terms | 3 years | 3 years | ||||||||
Customer Concentration Risk [Member] | ||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||||||||
Deposit insurance insured | ¥ 500,000,000 | $ 500,000 | ||||||||
Loans receivable [Member] | ||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||||||||
Provision for uncollectable loans | 113,110,000 | ¥ 23,979,000 | ||||||||
Foreign currency [Member] | ||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||||||||
Deposit insurance insured | 3,449,000 | |||||||||
Deposit insurance uninsured | ¥ 3,450,000 | |||||||||
Online Lending Information Intermediary Services revenue [Member] | ||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||||||||
Number of services | 2 | 2 | ||||||||
Number of performance obligations | 2 | 2 | ||||||||
Online Lending Information Intermediary Services revenue [Member] | Minimum [Member] | ||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||||||||
Investment, annualized interest rate | 0.50% | 0.50% | ||||||||
Online Lending Information Intermediary Services revenue [Member] | Maximum [Member] | ||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||||||||
Investment, annualized interest rate | 1.50% | 1.50% | ||||||||
Direct lending program revenue [Member] | ||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||||||||
Number of performance obligations | 2 | |||||||||
CHINA [Member] | ||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||||||||
Deposit insurance insured | ¥ 2,652,000 | |||||||||
HONG KONG [Member] | ||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||||||||
Deposit insurance uninsured | 581,686,000 | |||||||||
SOUTH AFRICA | ||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||||||||
Deposit insurance insured | $ | $ 250,000 | |||||||||
Deposit insurance uninsured | ¥ 90,235,000 | |||||||||
Product [Member] | ||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||||||||
Value added tax rate | 16% | |||||||||
Service [Member] | ||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||||||||
Value added tax rate | 6% | 6% | ||||||||
Post-origination services [Member] | ||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||||||||
Deferred revenue | ¥ 38,015,000 | |||||||||
Customer A [Member] | ||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||||||||
Total net revenues | ¥ 185,000,000 | ¥ 141,000,000 | ||||||||
Revenues percentage | 33% | 33% | 19% | |||||||
Customer B [Member] | ||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||||||||
Total net revenues | ¥ 145,000,000 | ¥ 102,000,000 | ||||||||
Revenues percentage | 26% | 26% | 10% | |||||||
Customer C [Member] | ||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||||||||
Total net revenues | ¥ 87,000,000 | |||||||||
Revenues percentage | 16% | 16% | ||||||||
China, Yuan Renminbi [Member] | ||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||||||||
Cash and cash equivalents | ¥ 1,751,808,000 | ¥ 1,455,089,000 | ||||||||
China, Yuan Renminbi [Member] | Cash and Cash Equivalents [Member] | Foreign currency risk | ||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||||||||
Concentration risk percentage | 71.99% | 71.99% | 53.26% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of assets, liabilities, results of operations and cash flows of the VIEs and their subsidiaries - Variable Interest Entity, Primary Beneficiary [Member] - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Assets: | |||
Cash and cash equivalents | ¥ 1,763,619 | ¥ 1,436,350 | |
Term deposits | 5,000 | 85,000 | |
Investment in marketable securities | 58,384 | 78,725 | |
Accounts receivable, net | 69,549 | 79,605 | |
Other receivables, net | 99,494 | 34,439 | |
Loan receivables, net | 111,306 | 234,750 | |
Amounts due from related parties | 1,425 | 41,750 | |
Prepaid expenses and other assets | 210,450 | 705,528 | |
Contracts assets, net | |||
Long-term investments, net | 457,757 | 490,314 | |
Operating lease right-of-use assets, net | 5,423 | 10,602 | |
Property, equipment and software, net | 60,254 | 32,593 | |
Goodwill | 21,932 | 72,304 | |
Intangible assets, net | 16,933 | 37,386 | |
Total assets | 2,881,526 | 3,339,346 | |
Liabilities: | |||
Deferred revenue | 8,802 | 46,175 | |
Payroll and welfare payable | 15,685 | 12,054 | |
Income taxes payable | 298,785 | 255,618 | |
Accrued expenses and other liabilities | 76,138 | 138,144 | |
Operating lease liabilities | 4,918 | 9,700 | |
Amounts due to related parties | 991,498 | 23,967 | |
Deferred tax liabilities | 4,233 | 5,041 | |
Total liabilities | 1,400,059 | 490,699 | |
Net revenues | 535,149 | 701,329 | ¥ 1,145,210 |
Net (loss) | (357,418) | (154,732) | (1,479,883) |
Net cash provided by (used in) operating activities | 251,106 | 1,014,571 | (753,416) |
Net cash used in investing activities | 76,163 | (51,410) | (511,832) |
Net cash provided by (used in) financing activities | ¥ 3,305 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of disaggregation by types of revenues and revenue by product offerings ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2020 USD ($) | |
Online lending platform revenue | ||||||
Total | ¥ 561,667 | ¥ 761,451 | ¥ 1,256,005 | |||
Revolving loan products [Member] | ||||||
Online lending platform revenue | ||||||
Total | 35,820 | 30,604 | 230,124 | |||
Non-revolving loan products [Member] | ||||||
Online lending platform revenue | ||||||
Total | 286,582 | |||||
Direct lending program revenue | ||||||
Online lending platform revenue | ||||||
Total | 9,178 | 519,543 | ||||
Other revenue [Member] | ||||||
Online lending platform revenue | ||||||
Total | 525,847 | 721,669 | 219,756 | |||
Loan facilitation services [Member] | ||||||
Online lending platform revenue | ||||||
Total | 177,147 | |||||
Loan facilitation services [Member] | Revolving loan products [Member] | ||||||
Online lending platform revenue | ||||||
Total | 26,376 | |||||
Loan facilitation services [Member] | Non-revolving loan products [Member] | ||||||
Online lending platform revenue | ||||||
Total | 84,485 | |||||
Loan facilitation services [Member] | Direct lending program revenue | ||||||
Online lending platform revenue | ||||||
Total | 66,286 | |||||
Loan facilitation services [Member] | Other revenue [Member] | ||||||
Online lending platform revenue | ||||||
Total | ||||||
Post origination services [Member] | ||||||
Online lending platform revenue | ||||||
Total | 35,820 | 39,782 | 859,102 | |||
Post origination services [Member] | Revolving loan products [Member] | ||||||
Online lending platform revenue | ||||||
Total | 35,820 | 30,604 | 203,748 | |||
Post origination services [Member] | Non-revolving loan products [Member] | ||||||
Online lending platform revenue | ||||||
Total | 202,097 | |||||
Post origination services [Member] | Direct lending program revenue | ||||||
Online lending platform revenue | ||||||
Total | 9,178 | 453,257 | ||||
Post origination services [Member] | Other revenue [Member] | ||||||
Online lending platform revenue | ||||||
Total | ||||||
Sales income [Member] | ||||||
Online lending platform revenue | ||||||
Total | $ | $ 154,906 | $ 202,960 | $ 5,667 | |||
Sales income [Member] | Revolving loan products [Member] | ||||||
Online lending platform revenue | ||||||
Total | $ | ||||||
Sales income [Member] | Non-revolving loan products [Member] | ||||||
Online lending platform revenue | ||||||
Total | $ | ||||||
Sales income [Member] | Direct lending program revenue | ||||||
Online lending platform revenue | ||||||
Total | $ | ||||||
Sales income [Member] | Other revenue [Member] | ||||||
Online lending platform revenue | ||||||
Total | $ | $ 154,906 | $ 202,960 | $ 5,667 | |||
Technical services [Member] | ||||||
Online lending platform revenue | ||||||
Total | 327,245 | 417,566 | 38,313 | |||
Technical services [Member] | Revolving loan products [Member] | ||||||
Online lending platform revenue | ||||||
Total | ||||||
Technical services [Member] | Non-revolving loan products [Member] | ||||||
Online lending platform revenue | ||||||
Total | ||||||
Technical services [Member] | Direct lending program revenue | ||||||
Online lending platform revenue | ||||||
Total | ||||||
Technical services [Member] | Other revenue [Member] | ||||||
Online lending platform revenue | ||||||
Total | 327,245 | 417,566 | 38,313 | |||
Other revenues [Member] | ||||||
Online lending platform revenue | ||||||
Total | 43,696 | 101,143 | 175,776 | |||
Other revenues [Member] | Revolving loan products [Member] | ||||||
Online lending platform revenue | ||||||
Total | ||||||
Other revenues [Member] | Non-revolving loan products [Member] | ||||||
Online lending platform revenue | ||||||
Total | ||||||
Other revenues [Member] | Direct lending program revenue | ||||||
Online lending platform revenue | ||||||
Total | ||||||
Other revenues [Member] | Other revenue [Member] | ||||||
Online lending platform revenue | ||||||
Total | ¥ 43,696 | ¥ 101,143 | ¥ 175,776 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of disaggregation of revenues by product offering - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of disaggregation of revenues by product offering [Line Items] | |||
Net revenues | ¥ 561,667 | ¥ 761,451 | ¥ 1,256,005 |
Loan product revenue [Member] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of disaggregation of revenues by product offering [Line Items] | |||
Net revenues | 847,576 | ||
Facilitation/post [Member] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of disaggregation of revenues by product offering [Line Items] | |||
Net revenues | 35,820 | 39,782 | 188,673 |
Sales income [Member] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of disaggregation of revenues by product offering [Line Items] | |||
Net revenues | 154,906 | 202,960 | 5,667 |
Technical services [Member] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of disaggregation of revenues by product offering [Line Items] | |||
Net revenues | 327,245 | 417,566 | 38,313 |
Others [Member] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of disaggregation of revenues by product offering [Line Items] | |||
Net revenues | ¥ 43,696 | ¥ 101,143 | ¥ 175,776 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of movement of allowance for credit losses - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of movement of allowance for credit losses [Line Items] | ||
Balance | ¥ 1,860,072 | ¥ 1,859,310 |
Provision for doubtful accounts | 140,566 | 23,979 |
Reversal | (73,231) | (8,938) |
Write-offs | (14,605) | (14,279) |
Balance | 1,912,802 | 1,860,072 |
Accounts receivable [Member] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of movement of allowance for credit losses [Line Items] | ||
Balance | 1,444,000 | 1,446,994 |
Provision for doubtful accounts | 612 | |
Reversal | (30) | (2,994) |
Write-offs | ||
Balance | 1,444,582 | 1,444,000 |
Other receivables [Member] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of movement of allowance for credit losses [Line Items] | ||
Balance | 65,647 | 82,952 |
Provision for doubtful accounts | 26,854 | |
Reversal | (65,640) | (3,026) |
Write-offs | (14,279) | |
Balance | 26,861 | 65,647 |
Loans receivable [Member] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of movement of allowance for credit losses [Line Items] | ||
Balance | 350,425 | 329,364 |
Provision for doubtful accounts | 113,100 | 23,979 |
Reversal | (7,561) | (2,918) |
Write-offs | (14,605) | |
Balance | ¥ 441,359 | ¥ 350,425 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of estimated useful lives of property and equipment | 12 Months Ended |
Dec. 31, 2022 | |
Computer and electronic equipment | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of estimated useful lives of property and equipment [Line Items] | |
Estimated useful lives | 3 years |
Furniture and office equipment | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of estimated useful lives of property and equipment [Line Items] | |
Estimated useful lives | 5 years |
Building [Member] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of estimated useful lives of property and equipment [Line Items] | |
Estimated useful lives | 20 years |
License [Member] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of estimated useful lives of property and equipment [Line Items] | |
Estimated useful lives | 20 years |
Software and Software Development Costs [Member] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of estimated useful lives of property and equipment [Line Items] | |
Estimated useful lives | 5 years |
Leasehold Improvements [Member] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of estimated useful lives of property and equipment [Line Items] | |
Estimated useful lives | Over the shorter of the remaining lease term or estimated useful life |
BUSINESS ACQUISITIONS (Details)
BUSINESS ACQUISITIONS (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2022 CNY (¥) | |
Business Combinations [Abstract] | |
Remeasured to fair value | ¥ 5,811 |
LOANS RECEIVABLE, NET (Details)
LOANS RECEIVABLE, NET (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | |
LOANS RECEIVABLE, NET (Details) [Line Items] | |||
Loan receivables, net | ¥ 146,177 | $ 21,194 | ¥ 260,224 |
Allowance for doubtful accounts for other loan receivables | 441,400 | ||
Loan receivables on non-accrual status | 25,000 | ¥ 23,000 | |
Certain third-party loan borrowers | |||
LOANS RECEIVABLE, NET (Details) [Line Items] | |||
Loan receivables, net | ¥ 146,000 | ||
Zhongji Wealth Guarantee Co., Ltd. | Certain post loan service companies | |||
LOANS RECEIVABLE, NET (Details) [Line Items] | |||
Interest rate | 14% | 14% | |
Zhongji Wealth Guarantee Co., Ltd. | Certain post loan service companies | Minimum [Member] | |||
LOANS RECEIVABLE, NET (Details) [Line Items] | |||
Term of loan | 6 years | ||
Interest rate | |||
Zhongji Wealth Guarantee Co., Ltd. | Certain post loan service companies | Maximum [Member] | |||
LOANS RECEIVABLE, NET (Details) [Line Items] | |||
Term of loan | 48 months |
LOANS RECEIVABLE, NET (Detail_2
LOANS RECEIVABLE, NET (Details) - Schedule of loan receivables ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Schedule Of Loan Receivables Abstract | |||
Loans receivable | ¥ 587,624 | ¥ 289,705 | |
Less: allowance for doubtful accounts | (441,447) | (29,481) | |
Total | ¥ 146,177 | $ 21,194 | ¥ 260,224 |
LOANS RECEIVABLE, NET (Detail_3
LOANS RECEIVABLE, NET (Details) - Summary of aging of loans - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
LOANS RECEIVABLE, NET (Details) - Summary of aging of loans [Line Items] | ||
Total loans | ¥ 587,624 | ¥ 289,705 |
1 - 89 days past due | ||
LOANS RECEIVABLE, NET (Details) - Summary of aging of loans [Line Items] | ||
Total loans | 1,700 | 0 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
LOANS RECEIVABLE, NET (Details) - Summary of aging of loans [Line Items] | ||
Total loans | 348,264 | 23,000 |
Financial Asset, Past Due [Member] | ||
LOANS RECEIVABLE, NET (Details) - Summary of aging of loans [Line Items] | ||
Total loans | 349,964 | 23,000 |
Financial Asset, Not Past Due [Member] | ||
LOANS RECEIVABLE, NET (Details) - Summary of aging of loans [Line Items] | ||
Total loans | ¥ 237,660 | ¥ 266,705 |
PREPAID EXPENSES AND OTHER AS_3
PREPAID EXPENSES AND OTHER ASSETS (Details) - Schedule of prepaid expense and other assets ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | |
Schedule Of Prepaid Expense And Other Assets Abstract | ||||
Deposits | [1] | ¥ 127 | ¥ 68,219 | |
Advances to suppliers | 9,971 | 19,732 | ||
Prepaid taxes | [2] | 203,661 | 304,278 | |
Prepaid service fee | 7,429 | 36,306 | ||
Prepaid investment | 304,996 | |||
Others | 5,548 | 22,347 | ||
Less: Allowance for doubtful accounts | (4,000) | (4,000) | ||
Total | ¥ 222,736 | $ 32,294 | ¥ 751,878 | |
[1]Deposits mainly include rent deposits and deposits to third-party vendors.[2]Prepaid taxes were the deductible VAT which can be deducted in the future. |
FAIR VALUE OF ASSETS AND LIAB_3
FAIR VALUE OF ASSETS AND LIABILITIES (Details) - Schedule of assets and liabilities measured at fair value - Fair Value, Recurring [Member] - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Long-term investments | ¥ 431,301 | ¥ 413,959 |
Investment in marketable securities | 200,679 | 169,815 |
Total Assets | 631,980 | 583,774 |
Level 1 [Member] | ||
Assets | ||
Long-term investments | ||
Investment in marketable securities | 200,679 | 169,815 |
Total Assets | 200,679 | 169,815 |
Level 2 [Member] | ||
Assets | ||
Long-term investments | ||
Investment in marketable securities | ||
Total Assets | ||
Level 3 [Member] | ||
Assets | ||
Long-term investments | 431,301 | 413,959 |
Investment in marketable securities | ||
Total Assets | ¥ 431,301 | ¥ 413,959 |
LONG-TERM INVESTMENTS (Details)
LONG-TERM INVESTMENTS (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2018 USD ($) | Jun. 30, 2021 CNY (¥) | Dec. 31, 2019 USD ($) | Mar. 31, 2018 USD ($) | Dec. 31, 2017 CNY (¥) | Sep. 30, 2017 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2019 CNY (¥) | |
LONG-TERM INVESTMENTS (Details) [Line Items] | |||||||||||
Record a loss | |||||||||||
Fair value at the disposal | ¥ 49,927 | ||||||||||
Payments to Acquire Held-to-Maturity Securities | ¥ 38,000 | 19,100 | ¥ 15,200 | ||||||||
BitPay, Inc. (Delaware) [Member] | |||||||||||
LONG-TERM INVESTMENTS (Details) [Line Items] | |||||||||||
Cash consideration | $ | $ 4,000 | ||||||||||
Ningbo Weilie [Member] | |||||||||||
LONG-TERM INVESTMENTS (Details) [Line Items] | |||||||||||
Cash consideration | ¥ 20,000,000 | ||||||||||
CSJ Golden Bull [Member] | |||||||||||
LONG-TERM INVESTMENTS (Details) [Line Items] | |||||||||||
Cash consideration | ¥ 40,900 | ||||||||||
Hubei Consumer [Member] | |||||||||||
LONG-TERM INVESTMENTS (Details) [Line Items] | |||||||||||
Cash in exchange (in Dollars) | $ | $ 361,100 | ||||||||||
BitPay, Inc. (Delaware) [Member] | |||||||||||
LONG-TERM INVESTMENTS (Details) [Line Items] | |||||||||||
Equity interest | 1.11% | 1.11% | 1.11% | 1.11% | |||||||
Ningbo Weilie [Member] | |||||||||||
LONG-TERM INVESTMENTS (Details) [Line Items] | |||||||||||
Equity interest | 8.50% | ||||||||||
Shanghai Xinzheng | |||||||||||
LONG-TERM INVESTMENTS (Details) [Line Items] | |||||||||||
Equity interest | 15% | 15% | 15% | 15% | |||||||
Cash consideration | $ | $ 129,786 | ||||||||||
CSJ Golden Bull [Member] | |||||||||||
LONG-TERM INVESTMENTS (Details) [Line Items] | |||||||||||
Equity interest | 25% | 25% | 25% | ||||||||
Equity income | ¥ 6,552 | ¥ 5,034 | 4,540 | ||||||||
PT.TIRTA Finance to Trusty Cars Pte. Ltd [Member] | |||||||||||
LONG-TERM INVESTMENTS (Details) [Line Items] | |||||||||||
Equity interest | 40% | ||||||||||
Equity income | 136 | 211 | |||||||||
PT.TIRTA Finance to PT SAHABAT MITRA [Member] | |||||||||||
LONG-TERM INVESTMENTS (Details) [Line Items] | |||||||||||
Equity interest | 5% | ||||||||||
PT.TIRTA Finance [Member] | |||||||||||
LONG-TERM INVESTMENTS (Details) [Line Items] | |||||||||||
Equity interest | 40% | ||||||||||
Record a loss | ¥ 582 | ||||||||||
Hubei Consumer [Member] | |||||||||||
LONG-TERM INVESTMENTS (Details) [Line Items] | |||||||||||
Equity interest | 24.47% | 24.47% | |||||||||
Hubei Consumption Financial Company (“Hubei Consumption”) [Member] | |||||||||||
LONG-TERM INVESTMENTS (Details) [Line Items] | |||||||||||
Equity income | ¥ 28,919 |
LONG-TERM INVESTMENTS (Detail_2
LONG-TERM INVESTMENTS (Details) - Schedule of long term investments - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Marketable Securities [Line Items] | |||
Beginning Balance | ¥ 727,426 | ¥ 738,272 | ¥ 775,644 |
Ending Balance | 530,207 | 727,426 | 738,272 |
Additions | 17,207 | 58,068 | 469,578 |
Disposals | (52,738) | (26,635) | (15,443) |
Loss in held-to-maturity investment | (14,096) | ||
Share of (loss) in equity method investments | 19,432 | (7,167) | (21,317) |
Impairment charges | (181,820) | (27,422) | (462,490) |
Impact of accounting method changes | |||
Impact of exchange rate | 700 | 6,406 | (7,700) |
Equity securities without readily determinable fair value [Member] | |||
Marketable Securities [Line Items] | |||
Beginning Balance | 631,393 | 647,702 | 543,178 |
Ending Balance | 102,510 | 631,393 | 647,702 |
Additions | 97 | 396,549 | |
Disposals | (5,000) | ||
Loss in held-to-maturity investment | |||
Share of (loss) in equity method investments | |||
Impairment charges | (164,161) | (23,193) | (282,076) |
Impact of accounting method changes | (361,100) | ||
Impact of exchange rate | (3,622) | 6,787 | (4,949) |
Equity Method Investments [Member] | |||
Marketable Securities [Line Items] | |||
Beginning Balance | 58,033 | 57,491 | 206,823 |
Ending Balance | 427,697 | 58,033 | 57,491 |
Additions | 3,000 | 19,971 | 53,929 |
Disposals | (14,738) | (7,652) | |
Loss in held-to-maturity investment | |||
Share of (loss) in equity method investments | 19,432 | (7,167) | (21,317) |
Impairment charges | (3,452) | (4,229) | (179,193) |
Impact of accounting method changes | 361,100 | ||
Impact of exchange rate | 4,322 | (381) | (2,751) |
Available for sales investment [Member] | |||
Marketable Securities [Line Items] | |||
Beginning Balance | 10,443 | ||
Ending Balance | |||
Additions | |||
Disposals | (10,443) | ||
Loss in held-to-maturity investment | |||
Share of (loss) in equity method investments | |||
Impairment charges | |||
Impact of exchange rate | |||
Held-to- maturity investment [Member] | |||
Marketable Securities [Line Items] | |||
Beginning Balance | 38,000 | 33,079 | 15,200 |
Ending Balance | 38,000 | 33,079 | |
Additions | 14,207 | 38,000 | 19,100 |
Disposals | (38,000) | (18,983) | |
Loss in held-to-maturity investment | (14,096) | ||
Share of (loss) in equity method investments | |||
Impairment charges | (14,207) | ¥ (1,221) | |
Impact of accounting method changes | |||
Impact of exchange rate |
LONG-TERM INVESTMENTS (Detail_3
LONG-TERM INVESTMENTS (Details) - Schedule of equity securities without readily determinable fair value - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Equity Securities without Readily Determinable Fair Value [Line Items] | |||
Equity securities without readily determinable fair value | ¥ 102,510 | ¥ 631,393 | |
EZhou Rural Commercial Bank [Member] | |||
Equity Securities without Readily Determinable Fair Value [Line Items] | |||
Equity securities without readily determinable fair value | 40,000 | 40,000 | |
BitPay, Inc. (Delaware) [Member] | |||
Equity Securities without Readily Determinable Fair Value [Line Items] | |||
Equity securities without readily determinable fair value | [1] | 27,589 | 25,490 |
Zhuhai Yuanxin investment partnership (limited partnership(“ZhuhaiYuanxin”) [Member] | |||
Equity Securities without Readily Determinable Fair Value [Line Items] | |||
Equity securities without readily determinable fair value | 15,000 | ||
Ningbo Weilie investment management partnership (limited partnership)(“NingboWeilie”) [Member] | |||
Equity Securities without Readily Determinable Fair Value [Line Items] | |||
Equity securities without readily determinable fair value | [2] | 20,000 | 20,000 |
Shanghai Xinzheng Financial Information Consulting Co., Ltd. [Member] | |||
Equity Securities without Readily Determinable Fair Value [Line Items] | |||
Equity securities without readily determinable fair value | 129,786 | ||
Hubei Consumption Financial Company (“Hubei Consumption”) [Member] | |||
Equity Securities without Readily Determinable Fair Value [Line Items] | |||
Equity securities without readily determinable fair value | 361,100 | ||
Others [Member] | |||
Equity Securities without Readily Determinable Fair Value [Line Items] | |||
Equity securities without readily determinable fair value | ¥ 14,921 | ¥ 40,017 | |
[1]In March 2018, the Group acquired a 1.11% of equity interest in BitPay, Inc. (Delaware) for a cash consideration of US$4,000. The Group holds 1.11% equity interest as of December 31, 2021 and December 31,2022. No impairment existed at December 31, 2021 and December 31,2022,and there were no observable price changes for the year ended December 31, 2022.[2]In December 2017, the Group purchased a 8.50% equity interest in Ningbo Weilie for a total cash consideration of RMB 20,000,000.No impairment existed at December 31, 2021 and December 31,2022, and there were no observable price changes for the year ended December 31,2022. |
LONG-TERM INVESTMENTS (Detail_4
LONG-TERM INVESTMENTS (Details) - Schedule of equity method investments - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | ¥ 427,697 | ¥ 58,033 | |
CSJ Golden Bull (Beijing) Investment Consulting Co., Ltd (“CSJ Golden Bull” [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | [1] | 10,549 | 17,101 |
PT.TIRTA Finance [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | [2] | 24,218 | 19,760 |
Hubei Consumption Financial Company (“Hubei Consumption”) [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | [3] | 390,019 | |
Others [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | ¥ 2,911 | ¥ 21,172 | |
[1]In September 2017, the Group purchased an equity interest of CSJ Golden Bull for a total cash consideration of RMB40,900. The Group holds a 25% equity interest as of December 31, 2021 and December 31, 2022.Equity loss of CSJ Golden Bull for the years ended December 31, 2020,2021 and 2022 was RMB4,540, RMB5,034 and RMB6,552 respectively.[2]In June 2021, the Group sold 40% of PT.TIRTA Finance to Trusty Cars Pte. Ltd (a third party) and 5% of PT.TIRTA Finance to PT SAHABAT MITRA (a third party), and therefore deconsolidated PT.TIRTA Finance and record a loss of RMB582. The fair value at the disposal day was RMB 49,927 using the asset-based method based on various assumptions, e.g. Fair market, going concern, policy stability, etc. The Group continued to have significant influence on PT.TIRTA Finance and account for a 40% equity interest in it. After the transaction, Trusty Cars Pte. Ltd became a related party. Nil transaction between Trusty Cars Pte. Ltd and the Group after the transaction. No impairment existed at December 31, 2022, and there were no observable price changes for the year ended December 31, 2022.Equity loss of PT.TIRTA Finance for the years ended December 31, 2020,2021 and 2022 was nil, RMB211 and RMB (136) respectively.[3]In December 2019, the Group paid RMB361,100 in cash in exchange for a 24.47% equity interest in Hubei Consumption. No impairment existed at December 31, 2021 and December 31, 2022, and there were no observable price changes for the year ended December 31, 2022.Equity income of Hubei Consumption for the years ended December 31, 2020,2021 and 2022 was RMB 4,540, nil and RMB 28,919 respectively. |
PROPERTY, EQUIPMENT AND SOFTW_3
PROPERTY, EQUIPMENT AND SOFTWARE, NET (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
PROPERTY, EQUIPMENT AND SOFTWARE, NET (Details) [Line Items] | |||
Depreciation and amortization expense | ¥ 25,137 | ¥ 14,500 | |
Property, Plant and Equipment [Member] | |||
PROPERTY, EQUIPMENT AND SOFTWARE, NET (Details) [Line Items] | |||
Depreciation and amortization expense | ¥ 18,767 |
PROPERTY, EQUIPMENT AND SOFTW_4
PROPERTY, EQUIPMENT AND SOFTWARE, NET (Details) - Schedule of property, equipment and software, net - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | ¥ 188,340 | ¥ 171,131 | ¥ 163,468 |
Accumulated depreciation and amortization | (95,655) | (104,284) | (79,147) |
Impairment loss for technology of discontinued online lending information services | (23,296) | (23,296) | (20,925) |
Property, equipment, net | 69,389 | 43,551 | 63,396 |
Office building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 51,142 | 19,525 | 19,470 |
Computer and electronic equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 60,402 | 58,351 | 57,856 |
Furniture and office equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 13,895 | 10,386 | 10,065 |
Leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 9,339 | 28,377 | 30,069 |
Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | ¥ 53,563 | ¥ 54,492 | ¥ 46,008 |
INTANGIBLE ASSETS, NET (Details
INTANGIBLE ASSETS, NET (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
INTANGIBLE ASSETS, NET (Details) [Line Items] | |||
Amortization expense | ¥ 2,233 | ¥ 6,402 | ¥ 9,717 |
Finite-Lived Intangible Asset, Expected Amortization, Year One | 5,124 | ||
Finite-Lived Intangible Asset, Expected Amortization, Year Two | 5,046 | ||
Finite-Lived Intangible Asset, Expected Amortization, Year Three | 4,087 | ||
Finite-Lived Intangible Asset, Expected Amortization, Year Four | 4,087 | ||
Finite-Lived Intangible Asset, Expected Amortization, after Year Five | ¥ 4,087 | ||
Minimum [Member] | |||
INTANGIBLE ASSETS, NET (Details) [Line Items] | |||
Amortization periods | 5 years | ||
Maximum [Member] | |||
INTANGIBLE ASSETS, NET (Details) [Line Items] | |||
Amortization periods | 20 years |
INTANGIBLE ASSETS, NET (Detai_2
INTANGIBLE ASSETS, NET (Details) - Schedule of intangible assets, net - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | |||
Total Intangible assets | ¥ 85,236 | ¥ 85,152 | ¥ 85,880 |
Accumulated amortization | (32,881) | (30,649) | (24,247) |
Impairment loss of technology with discontinued online lending information platform | (17,220) | (17,220) | (17,220) |
Intangible assets, net | 35,135 | 37,283 | 44,413 |
Brokerage licenses [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total Intangible assets | 51,236 | 51,152 | 51,880 |
Trade Name [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total Intangible assets | 6,400 | 6,400 | 6,400 |
Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total Intangible assets | ¥ 27,600 | ¥ 27,600 | ¥ 27,600 |
ACCRUED EXPENSES AND OTHER LI_3
ACCRUED EXPENSES AND OTHER LIABILITIES (Details) - Schedule of accrued expenses and other liabilities - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of accrued expenses and other liabilities [Abstract] | ||
Accrued advertising and marketing fees | ¥ 66,786 | ¥ 52,371 |
Payables related to service fees and others | 26,488 | 93,897 |
Amounts due to customers for the segregated bank balances held on their behalf | 153,701 | 273,774 |
Deposits | 586 | 2,575 |
Value added tax and surcharges | 1,165 | 13,899 |
Other | 1,620 | 30,732 |
Total accrued expenses and other current liabilities | ¥ 250,346 | ¥ 467,248 |
RELATED PARTY BALANCES AND TR_3
RELATED PARTY BALANCES AND TRANSACTIONS (Details) | 12 Months Ended |
Dec. 31, 2022 CNY (¥) | |
RELATED PARTY BALANCES AND TRANSACTIONS (Details) [Line Items] | |
Interest rate on loans receivable | 14% |
Nanjing Lefang [Member] | |
RELATED PARTY BALANCES AND TRANSACTIONS (Details) [Line Items] | |
Payable | ¥ 4,620 |
Hainan Chenxi [Member] | |
RELATED PARTY BALANCES AND TRANSACTIONS (Details) [Line Items] | |
Payable | 519 |
Hainan Chenxi | |
RELATED PARTY BALANCES AND TRANSACTIONS (Details) [Line Items] | |
Amounts due from related parties | ¥ 67,800,000 |
Outstanding terms | 12 months |
Interest rate on loans receivable | 6% |
Zhongzheng Jinniu [Member] | |
RELATED PARTY BALANCES AND TRANSACTIONS (Details) [Line Items] | |
Amounts due from related parties | ¥ 25,000,000 |
Outstanding terms | 6 months |
Interest rate on loans receivable | 6% |
RELATED PARTY BALANCES AND TR_4
RELATED PARTY BALANCES AND TRANSACTIONS (Details) - Schedule of provided by related parties - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Investors and borrower acquisition and referral services: | |||
Subtotal | ¥ 901 | ||
Credit inquiry services: | |||
Subtotal | |||
Total | 519 | 1,259 | |
Beijing Jiuzao [Member] | |||
Investors and borrower acquisition and referral services: | |||
Subtotal | 852 | ||
Shanghai Qiuzhi [Member] | |||
Investors and borrower acquisition and referral services: | |||
Subtotal | 49 | ||
Hainan Chenxi [Member] | |||
Insurance agency service: | |||
Subtotal | 519 | ||
Hangzhou Shuyun [Member] | |||
Credit inquiry services: | |||
Subtotal | ¥ 358 |
RELATED PARTY BALANCES AND TR_5
RELATED PARTY BALANCES AND TRANSACTIONS (Details) - Schedule of amounts due from related parties - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
RELATED PARTY BALANCES AND TRANSACTIONS (Details) - Schedule of amounts due from related parties [Line Items] | ||
Subtotal | ¥ 92,780 | ¥ 41,750 |
Impairment | (92,780) | |
Total | 41,750 | |
Zhongzheng Jinniu [Member] | ||
RELATED PARTY BALANCES AND TRANSACTIONS (Details) - Schedule of amounts due from related parties [Line Items] | ||
Subtotal | 25,030 | |
Hainan Chenxi [Member] | ||
RELATED PARTY BALANCES AND TRANSACTIONS (Details) - Schedule of amounts due from related parties [Line Items] | ||
Subtotal | ¥ 67,750 | ¥ 41,750 |
RELATED PARTY BALANCES AND TR_6
RELATED PARTY BALANCES AND TRANSACTIONS (Details) - Schedule of amounts due to related parties - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
RELATED PARTY BALANCES AND TRANSACTIONS (Details) - Schedule of amounts due to related parties [Line Items] | ||
Total | ¥ 5,142 | ¥ 23,967 |
Zhuhai Hengqin Payment [Member] | ||
RELATED PARTY BALANCES AND TRANSACTIONS (Details) - Schedule of amounts due to related parties [Line Items] | ||
Total | 27 | |
Nanjing Lefang [Member] | ||
RELATED PARTY BALANCES AND TRANSACTIONS (Details) - Schedule of amounts due to related parties [Line Items] | ||
Total | 4,620 | 19,218 |
Hangzhou Shuyun [Member] | ||
RELATED PARTY BALANCES AND TRANSACTIONS (Details) - Schedule of amounts due to related parties [Line Items] | ||
Total | 18 | |
Beijing Jiuzao [Member] | ||
RELATED PARTY BALANCES AND TRANSACTIONS (Details) - Schedule of amounts due to related parties [Line Items] | ||
Total | 4,704 | |
Hainan Chenxi [Member] | ||
RELATED PARTY BALANCES AND TRANSACTIONS (Details) - Schedule of amounts due to related parties [Line Items] | ||
Total | 519 | |
Diaobiao Zhonghai [Member] | ||
RELATED PARTY BALANCES AND TRANSACTIONS (Details) - Schedule of amounts due to related parties [Line Items] | ||
Total | ¥ 3 |
INCOME TAXES (Details)
INCOME TAXES (Details) ¥ in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 HKD ($) | Dec. 31, 2021 CNY (¥) | |
INCOME TAXES (Details) [Line Items] | |||
Profits earned (in Dollars) | $ | $ 2 | ||
Profits earned percentage | 8.25% | 8.25% | |
Existing tax rate | 16.50% | ||
Preferential income tax rate | 25% | 25% | |
Income tax rate percentage | 15% | 15% | |
Reassessed by relevant governmental authorities | 3 years | 3 years | |
Preferential income tax rate | 15% | 15% | |
Exemption on income tax | 5 years | 5 years | |
Statute of limitations period | 3 years | 3 years | |
Statute of limitations period | 5 years | 5 years | |
Underpayment of tax liability (in Yuan Renminbi) | ¥ 100 | ||
Statute of limitations period | 10 years | 10 years | |
Statute of limitations | |||
Withholding income tax | 10% | 10% | |
Least percentage | 25% | 25% | |
Investor percentage | 25% | 25% | |
Withholding income taxes (in Yuan Renminbi) | ¥ 0 | ||
Minimum [Member] | |||
INCOME TAXES (Details) [Line Items] | |||
Income tax rate percentage | 15% | 15% | |
EIT rate percentage | 15% | 15% | |
Maximum [Member] | |||
INCOME TAXES (Details) [Line Items] | |||
Income tax rate percentage | 20% | 20% | |
EIT rate percentage | 25% | 25% | |
Jiufu Shuke Technology Group Co, Ltd [Member] | |||
INCOME TAXES (Details) [Line Items] | |||
Income tax rate percentage | 15% | 15% | |
Fuben [Member] | |||
INCOME TAXES (Details) [Line Items] | |||
Preferential income tax rate | 15% | 15% | |
Foreign Invested Enterprises [Member] | |||
INCOME TAXES (Details) [Line Items] | |||
Withholding income tax | 10% | 10% | |
2023 [Member] | |||
INCOME TAXES (Details) [Line Items] | |||
Income tax rate percentage | 15% | 15% | |
PRC [Member] | |||
INCOME TAXES (Details) [Line Items] | |||
Preferential income tax rate | 25% | 25% | |
Statutory rate [Member] | |||
INCOME TAXES (Details) [Line Items] | |||
Preferential income tax rate | 25% | 25% | |
South Aisa [Member] | |||
INCOME TAXES (Details) [Line Items] | |||
Preferential income tax rate | 20% | 20% | |
Hong Kong [Member] | |||
INCOME TAXES (Details) [Line Items] | |||
Withholding income tax | 5% | 5% |
INCOME TAXES (Details) - Schedu
INCOME TAXES (Details) - Schedule of current and deferred components of the income tax expense - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Reconciliation of Income Tax Expenses at Statutory Tax Rate to Income Tax Expense Recognized [Abstract] | |||
Current tax | ¥ 11,623 | ¥ 26,735 | ¥ 42,758 |
Deferred tax | 495,564 | ||
Total | ¥ 11,623 | ¥ 26,735 | ¥ 538,322 |
INCOME TAXES (Details) - Sche_2
INCOME TAXES (Details) - Schedule of reconciliation of income tax expenses at statutory tax rate to income tax expense recognized - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Reconciliation Of Income Tax Expenses At Statutory Tax Rate To Income Tax Expense Recognized Abstract | |||
Loss before income tax expenses | ¥ (602,746) | ¥ (201,568) | ¥ (1,691,563) |
Statutory tax rate in the PRC | 25% | 25% | 25% |
Income tax expense at statutory tax rate | ¥ (150,686) | ¥ (50,392) | ¥ (422,891) |
Non-deductible expenses | 3,486 | 700 | 278,303 |
Change in valuation allowance | 32,463 | 60,421 | 504,360 |
Effect of tax holiday and preferential tax rate | 163,113 | 6,522 | 104,218 |
Share-based compensation expenses | 1,332 | 13,085 | 72,657 |
Effect of different tax rates of subsidiaries operating in other jurisdictions | (38,085) | (3,601) | 1,675 |
Income tax expense | ¥ 11,623 | ¥ 26,735 | ¥ 538,322 |
INCOME TAXES (Details) - Sche_3
INCOME TAXES (Details) - Schedule of tax holiday and preferential tax rate - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Tax Holiday And Preferential Tax Rate Abstract | |||
The aggregate amount of tax holiday and preferential tax rate | ¥ (163,113) | ¥ (6,522) | ¥ (104,218) |
-Basic and diluted | ¥ (0.7) | ¥ (0.03) | ¥ (0.52) |
INCOME TAXES (Details) - Sche_4
INCOME TAXES (Details) - Schedule of tax holiday and preferential tax rate (Parentheticals) - ¥ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Tax Holiday And Preferential Tax Rate Abstract | |||
Diluted | ¥ (13.78) | ¥ (0.6) | ¥ (10.4) |
INCOME TAXES (Details) - Sche_5
INCOME TAXES (Details) - Schedule of deferred tax assets - CNY (¥) ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule Of Deferred Tax Assets Abstract | ||||
Deferred revenue | ¥ 11,786 | |||
Accrued expenses | 106,404 | |||
Allowance for doubtful accounts | 478 | 368 | 330,488 | |
Net operating loss carry forwards | 52,660 | 120,523 | 142,722 | |
Excess advertising fee | 12,630 | |||
Less: valuation allowance | (53,138) | (120,891) | (604,030) | ¥ (99,670) |
Total deferred tax assets, net |
INCOME TAXES (Details) - Sche_6
INCOME TAXES (Details) - Schedule of movements of valuation allowance - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Movements Of Valuation Allowance Abstract | |||
Balance at beginning of year | ¥ 120,891 | ¥ 604,030 | ¥ 99,670 |
Additions | 32,463 | 504,360 | |
Reversal | (100,216) | (483,139) | |
Balance at December 31,2021 and 2022 | ¥ 53,138 | ¥ 120,891 | ¥ 604,030 |
INCOME TAXES (Details) - Sche_7
INCOME TAXES (Details) - Schedule of deferred tax liabilities - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Deferred Tax Liabilities Abstract | ||
Intangible asset from acquisition | ¥ 7,126 | ¥ 7,730 |
Total deferred tax liabilities | ¥ 7,126 | ¥ 7,730 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands | 12 Months Ended | |||||||||||||
Sep. 30, 2021 shares | Jun. 30, 2021 shares | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2022 CNY (¥) ¥ / shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | Dec. 31, 2020 USD ($) shares | Dec. 31, 2020 ¥ / shares shares | Dec. 31, 2018 shares | Dec. 31, 2017 shares | May 28, 2020 shares | Apr. 20, 2020 shares | Mar. 20, 2020 shares | Dec. 31, 2015 shares | |
SHARE-BASED COMPENSATION (Details) [Line Items] | ||||||||||||||
Ordinary shares | 3,518,000 | 35,867,400 | ||||||||||||
Granted shares | 500,000 | 2,853,911 | ||||||||||||
Exercise price per share (in Yuan Renminbi per share) | ¥ / shares | ¥ 6.74 | ¥ 24.11 | ||||||||||||
Share options | 442,521 | 680,300 | 680,300 | |||||||||||
Instalment years | 5 years | 5 years | ||||||||||||
Vested options | 1,327,563 | 2,655,127 | ||||||||||||
Exercise price per share (in Yuan Renminbi per share) | $ / shares | $ 0 | $ 0.07 | ||||||||||||
Share options granted (in Yuan Renminbi per share) | ¥ / shares | ¥ 8 | ¥ 35.88 | ||||||||||||
Estimated exercise | 2.2 | |||||||||||||
Unvested option awards (in Yuan Renminbi) | ¥ | ¥ 13,786 | ¥ 4,891 | ||||||||||||
Weighted average period | 2 years 8 months 12 days | |||||||||||||
Expected cost (in Dollars) | $ | $ 3,514 | $ 4,271 | $ 4,527 | |||||||||||
2015 Plan [Member] | ||||||||||||||
SHARE-BASED COMPENSATION (Details) [Line Items] | ||||||||||||||
Ordinary shares | 15,094,700 | |||||||||||||
2017 Plan [Member] | ||||||||||||||
SHARE-BASED COMPENSATION (Details) [Line Items] | ||||||||||||||
Ordinary shares | 16,771,900 | |||||||||||||
Maximum [Member] | ||||||||||||||
SHARE-BASED COMPENSATION (Details) [Line Items] | ||||||||||||||
Granted shares | 3,345,098 | |||||||||||||
Estimated exercise | 2.8 | 2.8 | ||||||||||||
Minimum [Member] | ||||||||||||||
SHARE-BASED COMPENSATION (Details) [Line Items] | ||||||||||||||
Estimated exercise | 2.2 | 2.2 | ||||||||||||
Exercise Price 6.74 [Member] | ||||||||||||||
SHARE-BASED COMPENSATION (Details) [Line Items] | ||||||||||||||
Granted shares | 4,425,211 | |||||||||||||
Exercise price per share (in Yuan Renminbi per share) | ¥ / shares | ¥ 0.06 | |||||||||||||
Share options | 4,425,211 | |||||||||||||
Exercise Price 7.78 [Member] | ||||||||||||||
SHARE-BASED COMPENSATION (Details) [Line Items] | ||||||||||||||
Share options | 500,000 | |||||||||||||
Exercise Price Usd 3.6953 Per Share [Member] | ||||||||||||||
SHARE-BASED COMPENSATION (Details) [Line Items] | ||||||||||||||
Granted shares | 680,300 | |||||||||||||
Exercise price per share (in Yuan Renminbi per share) | ¥ / shares | 24.11 | |||||||||||||
Exercise Price Usd 2.1199 Per Share [Member] | ||||||||||||||
SHARE-BASED COMPENSATION (Details) [Line Items] | ||||||||||||||
Granted shares | 178,900 | |||||||||||||
Exercise price per share (in Yuan Renminbi per share) | ¥ / shares | 13.83 | |||||||||||||
Exercise Price 3.70 [Member] | ||||||||||||||
SHARE-BASED COMPENSATION (Details) [Line Items] | ||||||||||||||
Granted shares | 445,280 | |||||||||||||
Exercise price per share (in Yuan Renminbi per share) | ¥ / shares | ¥ 24.11 | |||||||||||||
Option 1 [Member] | Share-Based Payment Arrangement, Tranche One [Member] | ||||||||||||||
SHARE-BASED COMPENSATION (Details) [Line Items] | ||||||||||||||
Vesting rate | 15% | |||||||||||||
Option 1 [Member] | Share-Based Payment Arrangement, Tranche Two [Member] | ||||||||||||||
SHARE-BASED COMPENSATION (Details) [Line Items] | ||||||||||||||
Vesting rate | 20% | |||||||||||||
Option 1 [Member] | Share-Based Payment Arrangement, Tranche Three [Member] | ||||||||||||||
SHARE-BASED COMPENSATION (Details) [Line Items] | ||||||||||||||
Vesting rate | 20% | |||||||||||||
Option 1 [Member] | Tranche Four [Member] | ||||||||||||||
SHARE-BASED COMPENSATION (Details) [Line Items] | ||||||||||||||
Vesting rate | 20% | |||||||||||||
Option 1 [Member] | Tranche Five [Member] | ||||||||||||||
SHARE-BASED COMPENSATION (Details) [Line Items] | ||||||||||||||
Vesting rate | 25% | |||||||||||||
Option 2 [Member] | ||||||||||||||
SHARE-BASED COMPENSATION (Details) [Line Items] | ||||||||||||||
Share options | 2,853,911 | 2,853,911 | 1,426,956 | 1,426,955 | ||||||||||
Option 3 [Member] | ||||||||||||||
SHARE-BASED COMPENSATION (Details) [Line Items] | ||||||||||||||
Share options | 3,345,098 | |||||||||||||
Option 4 [Member] | ||||||||||||||
SHARE-BASED COMPENSATION (Details) [Line Items] | ||||||||||||||
Share options | 178,900 | 178,900 | ||||||||||||
Instalment years | 4 years | |||||||||||||
Option 4 [Member] | Share-Based Payment Arrangement, Tranche One [Member] | ||||||||||||||
SHARE-BASED COMPENSATION (Details) [Line Items] | ||||||||||||||
Vesting rate | 20% | |||||||||||||
Option 4 [Member] | Share-Based Payment Arrangement, Tranche Two [Member] | ||||||||||||||
SHARE-BASED COMPENSATION (Details) [Line Items] | ||||||||||||||
Vesting rate | 20% | |||||||||||||
Option 4 [Member] | Share-Based Payment Arrangement, Tranche Three [Member] | ||||||||||||||
SHARE-BASED COMPENSATION (Details) [Line Items] | ||||||||||||||
Vesting rate | 30% | |||||||||||||
Option 4 [Member] | Tranche Four [Member] | ||||||||||||||
SHARE-BASED COMPENSATION (Details) [Line Items] | ||||||||||||||
Vesting rate | 30% | |||||||||||||
Option 5 [Member] | ||||||||||||||
SHARE-BASED COMPENSATION (Details) [Line Items] | ||||||||||||||
Share options | 445,280 | 445,280 | ||||||||||||
Instalment years | 5 years |
SHARE-BASED COMPENSATION (Det_2
SHARE-BASED COMPENSATION (Details) - Schedule of assumptions using the binomial option pricing model | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SHARE-BASED COMPENSATION (Details) - Schedule of assumptions using the binomial option pricing model [Line Items] | |||
Risk free rate of interest | |||
Volatility | |||
Dividend yield | |||
Exercise multiples | 2.2 | ||
Life of option (years) | 5 years | ||
Minimum [Member] | |||
SHARE-BASED COMPENSATION (Details) - Schedule of assumptions using the binomial option pricing model [Line Items] | |||
Risk free rate of interest | 0.84% | 0.27% | |
Volatility | 113.60% | 48.80% | |
Exercise multiples | 2.2 | 2.2 | |
Life of option (years) | 2 years 6 months | ||
Maximum [Member] | |||
SHARE-BASED COMPENSATION (Details) - Schedule of assumptions using the binomial option pricing model [Line Items] | |||
Risk free rate of interest | 1.61% | 1.47% | |
Volatility | 116% | 59.50% | |
Exercise multiples | 2.8 | 2.8 | |
Life of option (years) | 6 years |
SHARE-BASED COMPENSATION (Det_3
SHARE-BASED COMPENSATION (Details) - Schedule of activity in share options - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Activity in Share Options [Abstract] | ||
Number of Options, Outstanding Beginning (in Shares) | 20,049,284 | 29,273,408 |
Weighted Average Exercise Price, Outstanding Beginning | $ 8.82 | $ 17.24 |
Weighted Average Grant-date Fair Value, Outstanding Beginning | $ 42.57 | $ 40.24 |
Number of Options, Granted (in Shares) | 4,925,211 | |
Weighted Average Exercise Price, Granted | $ 0.76 | |
Weighted Average Grant-date Fair Value, Granted | $ 8 | |
Number of Options, Exercised (in Shares) | (4,142,985) | (6,885,255) |
Weighted Average Exercise Price, Exercised | $ 0 | $ 0.07 |
Weighted Average Grant-date Fair Value, Exercised | $ 27.02 | $ 23.49 |
Number of Options, Forfeited (in Shares) | (6,996,980) | (7,264,080) |
Weighted Average Exercise Price, Forfeited | $ 9.31 | $ 9.52 |
Weighted Average Grant-date Fair Value, Forfeited | $ 72.27 | $ 5.88 |
Number of Options, Outstanding Ending (in Shares) | 8,909,319 | 20,049,284 |
Weighted Average Exercise Price, Outstanding Ending | $ 17.61 | $ 8.82 |
Weighted Average Grant-date Fair Value, Outstanding Ending | $ 31.02 | $ 42.57 |
SHARE-BASED COMPENSATION (Det_4
SHARE-BASED COMPENSATION (Details) - Schedule of share options outstanding | 12 Months Ended |
Dec. 31, 2022 shares | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
8,909,319 | |
8,230,699 | |
Exercise Price 0.06 [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding | 442,521 |
Options Outstanding, Weighted Average Remaining Contractual Life | |
Options Exercisable, Number Outstanding | 442,521 |
Options Exercisable, Weighted Average Remaining Contractual Life | |
Exercise Price 6.74 [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding | 500,000 |
Options Outstanding, Weighted Average Remaining Contractual Life | 4 years 2 months 23 days |
Options Exercisable, Number Outstanding | 75,000 |
Options Exercisable, Weighted Average Remaining Contractual Life | 4 years 2 months 23 days |
Exercise Price 7.78 [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding | 476,000 |
Options Outstanding, Weighted Average Remaining Contractual Life | |
Options Exercisable, Number Outstanding | 476,000 |
Options Exercisable, Weighted Average Remaining Contractual Life | |
Exercise Price 14.32 [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding | 782,200 |
Options Outstanding, Weighted Average Remaining Contractual Life | 1 month 2 days |
Options Exercisable, Number Outstanding | 782,200 |
Options Exercisable, Weighted Average Remaining Contractual Life | 1 month 2 days |
Exercise Price 14.72 [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding | 2,466,000 |
Options Outstanding, Weighted Average Remaining Contractual Life | |
Options Exercisable, Number Outstanding | 2,466,000 |
Options Exercisable, Weighted Average Remaining Contractual Life | |
Exercise Price 24.06 [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding | 610,700 |
Options Outstanding, Weighted Average Remaining Contractual Life | 1 year 1 month 6 days |
Options Exercisable, Number Outstanding | 543,500 |
Options Exercisable, Weighted Average Remaining Contractual Life | 1 year 3 days |
Exercise Price 24.11 [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding | 3,631,898 |
Options Outstanding, Weighted Average Remaining Contractual Life | 2 months 1 day |
Options Exercisable, Number Outstanding | 3,445,478 |
Options Exercisable, Weighted Average Remaining Contractual Life | 21 days |
SHARE-BASED COMPENSATION (Det_5
SHARE-BASED COMPENSATION (Details) - Schedule of share based compensation recognized related to share options granted and ordinary shares issued - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Share Based Compensation Recognized Related to Share Options Granted and Ordinary Shares Issued [Abstract] | |||
General and administrative expenses | ¥ 5,329 | ¥ 52,338 | ¥ 290,630 |
ORDINARY SHARES (Details)
ORDINARY SHARES (Details) ¥ in Thousands | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2019 CNY (¥) shares | Dec. 31, 2021 CNY (¥) shares | Jan. 31, 2023 shares | Dec. 31, 2022 $ / shares shares | Dec. 31, 2021 $ / shares shares | |
ORDINARY SHARES (Details) [Line Items] | |||||
Net of issuance cost (in Yuan Renminbi) | ¥ | ¥ 31,776 | ||||
The option holder | 1 | ||||
Aggregate investment amount (in Yuan Renminbi) | ¥ | ¥ 199,197 | ||||
IPO [Member] | |||||
ORDINARY SHARES (Details) [Line Items] | |||||
Common stock, shares outstanding | 9,759,550 | ||||
Over-Allotment Option [Member] | |||||
ORDINARY SHARES (Details) [Line Items] | |||||
Underwriters amount (in Yuan Renminbi) | ¥ | ¥ 463,065 | ||||
Class A ordinary shares [Member] | |||||
ORDINARY SHARES (Details) [Line Items] | |||||
Price per share (in Dollars per share) | $ / shares | $ 0.00001 | $ 0.00001 | |||
Share issued | 174,304,260 | 170,161,275 | |||
Common stock, shares outstanding | 128,228,600 | 174,304,260 | 170,161,275 | ||
Number of votes | one | ||||
Aggregate investment amount (in Yuan Renminbi) | ¥ | ¥ 212,800 | ||||
Exercise ordinary shares | 4,142,985 | ||||
Common stock, shares authorized | 460,000,000 | 460,000,000 | |||
Common stock, shares outstanding | 174,304,260 | 170,161,275 | |||
Class A ordinary shares [Member] | IPO [Member] | |||||
ORDINARY SHARES (Details) [Line Items] | |||||
Number of shares represented by american depository shares | 8,085,000 | ||||
Class A ordinary shares [Member] | Private Placement [Member] | |||||
ORDINARY SHARES (Details) [Line Items] | |||||
Share issued | 20,927,739 | ||||
Aggregate investment amount (in Yuan Renminbi) | ¥ | ¥ 199,199,000,000 | ||||
Class B ordinary shares [Member] | |||||
ORDINARY SHARES (Details) [Line Items] | |||||
Price per share (in Dollars per share) | $ / shares | $ 0.00001 | $ 0.00001 | |||
Share issued | 61,162,400 | 61,162,400 | |||
Common stock, shares outstanding | 66,962,400 | 61,162,400 | 61,162,400 | ||
Number of votes | five | ||||
Common stock, shares authorized | 200,000,000 | 200,000,000 | |||
Common stock, shares outstanding | 61,162,400 | 61,162,400 | |||
ADR [Member] | IPO [Member] | |||||
ORDINARY SHARES (Details) [Line Items] | |||||
Share issued | 404,250 | ||||
Others [Member] | |||||
ORDINARY SHARES (Details) [Line Items] | |||||
Price per share (in Dollars per share) | $ / shares | $ 0.00001 | ||||
Share issued | 0 | 0 | |||
Common stock, shares authorized | 200,000,000 | ||||
Subsequent Event [Member] | |||||
ORDINARY SHARES (Details) [Line Items] | |||||
Ordinary share | 20 | ||||
Amended and Restated Memorandum of Association | |||||
ORDINARY SHARES (Details) [Line Items] | |||||
Ordinary shares authorizes | 4,600,000,000 | ||||
Price per share (in Dollars per share) | $ / shares | $ 0.00001 | $ 0.00001 | |||
Amended and Restated Memorandum of Association | Class A ordinary shares [Member] | |||||
ORDINARY SHARES (Details) [Line Items] | |||||
Share issued | 231,323,675 | ||||
Share outstanding | 235,466,660 | ||||
Amended and Restated Memorandum of Association | Class B ordinary shares [Member] | |||||
ORDINARY SHARES (Details) [Line Items] | |||||
Share issued | 231,323,675 | ||||
Share outstanding | 235,466,660 |
EMPLOYEE BENEFITS (Details)
EMPLOYEE BENEFITS (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Employee Benefit Plan [Abstract] | |||
Total contribution for employee benefits | ¥ 39,756 | ¥ 42,931 | ¥ 69,370 |
STATUTORY RESERVES AND RESTRI_2
STATUTORY RESERVES AND RESTRICTED NET ASSETS (Details) ¥ in Thousands | Dec. 31, 2022 CNY (¥) |
Statutory Reserves and Restricted Net Assets [Abstract] | |
Minimum percentage of after-tax profit transferred by PRC subsidiaries to general reserve fund (as a percent) | 10% |
Maximum percentage criteria for appropriation of after-tax profit of PRC subsidiaries to general reserve fund (as a percent) | 50% |
Restricted net assets (in Yuan Renminbi) | ¥ 2,612,000 |
NET (LOSS) PER ORDINARY SHARE_2
NET (LOSS) PER ORDINARY SHARE (Details) | 12 Months Ended |
Dec. 31, 2022 shares | |
Earnings Per Share [Abstract] | |
Additional stocks | 8,230,699 |
NET (LOSS) PER ORDINARY SHARE_3
NET (LOSS) PER ORDINARY SHARE (Details) - Schedule of basic and diluted net loss per share ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2022 $ / shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | Dec. 31, 2020 CNY (¥) ¥ / shares shares | |
Numerator: | ||||
Net (loss) attributable to ordinary shareholders for computing net income per ordinary shares-basic | ¥ | ¥ (594,741) | ¥ (234,908) | ¥ (2,258,895) | |
Denominator: | ||||
Weighted average ordinary shares outstanding used in computing net income per ordinary shares-basic and diluted | shares | 233,216,045 | 213,635,470 | 198,596,879 | |
Net (loss) per ordinary share attributable to ordinary shareholders-basic and diluted | (per share) | ¥ (2.55) | $ (0.37) | ¥ (1.1) | ¥ (11.37) |
LEASES (Details)
LEASES (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Total rental expense for all operating leases | ¥ 22,566 | ¥ 30,442 | ¥ 58,831 |
LEASES (Details) - Schedule of
LEASES (Details) - Schedule of information about operating leases ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 $ / shares | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | ¥ 11,620 | |
Non-cash right-of-use assets in exchange for new lease liabilities: | ||
Operating leases | ¥ 4,409 | |
Weighted average remaining lease term | ||
Operating leases (in Dollars per share) | $ / shares | $ 0.59 | |
Weighted average discount rate | ||
Operating leases | 4.38% | 4.38% |
Short-term lease cost | ¥ 291 |
LEASES (Details) - Schedule o_2
LEASES (Details) - Schedule of maturity of operating lease liabilities ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Schedule Of Maturity Of Operating Lease Liabilities Abstract | |||
2023 | ¥ 7,137 | ||
2024 | 1,381 | ||
2025 | 5 | ||
Subtotal | 8,523 | ||
Less imputed interest | 207 | ||
Total | ¥ 8,316 | $ 1,206 | ¥ 17,909 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) ¥ in Billions | 1 Months Ended |
May 31, 2020 CNY (¥) | |
Commitments and Contingencies [Abstract] | |
Amount charged from the insurance company to cover the outstanding service fees and related late payment losses ¥ 2.3 | ¥ 2.3 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended |
Jan. 31, 2023 | Dec. 31, 2022 | |
SUBSEQUENT EVENTS (Details) [Line Items] | ||
Reimbursement from the depository | $ 1.3 | |
Subsequent Event [Member] | ||
SUBSEQUENT EVENTS (Details) [Line Items] | ||
Return reimbursement to the depositary | $ 2.8 |
SCHEDULE 1-CONDENSED BALANCE _3
SCHEDULE 1-CONDENSED BALANCE SHEETS (Details) - Schedule of condensed balance sheets - Parent Company [Member] - Reportable Legal Entities [Member] ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2022 USD ($) | |
Assets: | ||||
Cash and cash equivalents | ¥ 411,047 | ¥ 568,973 | $ 59,596 | |
Amounts due from subsidiaries and VIEs | 1,444,870 | $ 209,486 | 1,368,526 | |
Other receivables | 1,912 | |||
Prepaid expenses and other assets | 1,993 | |||
Investments in subsidiaries and VIEs | 1,912,666 | 2,481,330 | 277,312 | |
Total assets | 3,768,583 | 4,422,734 | 546,394 | |
Liabilities: | ||||
Accrued expense and other liability | 112,384 | 290,808 | 16,294 | |
Amounts due to subsidiaries and VIEs | 38 | |||
Total liabilities | 112,384 | 290,846 | 16,294 | |
Shareholders’ Equity: | ||||
Additional paid-in capital | 5,786,068 | 5,780,609 | 838,901 | |
Retained earnings (deficit) | (2,220,859) | (1,591,305) | (321,994) | |
Accumulated other comprehensive income | 90,988 | (55,107) | 13,239 | |
Total shareholders’ equity | 3,656,199 | 4,131,888 | 530,099 | |
Total liabilities and shareholders’ equity | 3,768,583 | 4,422,734 | 546,393 | |
Common Class A [Member] | ||||
Shareholders’ Equity: | ||||
Ordinary shares | 1 | 1 | ||
Common Class B [Member] | ||||
Shareholders’ Equity: | ||||
Ordinary shares | ¥ 1 | ¥ 1 |
SCHEDULE 1-CONDENSED BALANCE _4
SCHEDULE 1-CONDENSED BALANCE SHEETS (Details) - Schedule of condensed balance sheets (Parentheticals) - Parent Company [Member] - Reportable Legal Entities [Member] - ¥ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Common Class A [Member] | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Ordinary shares, par value (in Dollars per share and Yuan Renminbi per share) | ¥ 0.00001 | ¥ 0.00001 |
Ordinary shares, shares authorized | 460,000,000 | 460,000,000 |
Ordinary shares, shares issued | 174,304,260 | 170,161,275 |
Ordinary shares, shares outstanding | 174,304,260 | 170,161,275 |
Common Class B [Member] | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Ordinary shares, par value (in Dollars per share and Yuan Renminbi per share) | ¥ 0.00001 | ¥ 0.00001 |
Ordinary shares, shares authorized | 200,000,000 | 200,000,000 |
Ordinary shares, shares issued | 61,162,400 | 61,162,400 |
Ordinary shares, shares outstanding | 61,162,400 | 61,162,400 |
SCHEDULE 1-CONDENSED BALANCE _5
SCHEDULE 1-CONDENSED BALANCE SHEETS (Details) - Schedule of condensed statements of operations - Parent Company [Member] - Reportable Legal Entities [Member] ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | Dec. 31, 2020 CNY (¥) ¥ / shares shares | |
Condensed Income Statements, Captions [Line Items] | ||||
Equity in loss of subsidiaries and VIEs | ¥ (540,947) | $ (78,433) | ¥ (150,814) | ¥ (1,855,047) |
Operating costs and expenses | (54,329) | (7,877) | (89,245) | (333,427) |
Provision for contract assets and receivables | ||||
Interest income | 535 | 78 | 5,151 | 12,183 |
Impairment loss of investments | (97,892) | |||
Other income, net | 15,288 | |||
Net income (loss) | ¥ (594,741) | $ (86,232) | ¥ (234,908) | ¥ (2,258,895) |
Net loss per ordinary share | ||||
Basic and diluted (in Dollars per share and Yuan Renminbi per share) | (per share) | ¥ (2.55) | $ (0.37) | ¥ (1.1) | ¥ (227.49) |
Weighted average number of ordinary shares | ||||
Basic and diluted (in Shares) | 233,216,045 | 233,216,045 | 213,635,470 | 9,929,844 |
SCHEDULE 1-CONDENSED BALANCE _6
SCHEDULE 1-CONDENSED BALANCE SHEETS (Details) - Schedule of condensed statements of operations (Parentheticals) - Parent Company [Member] - Reportable Legal Entities [Member] | 12 Months Ended | |||
Dec. 31, 2022 $ / shares shares | Dec. 31, 2022 ¥ / shares shares | Dec. 31, 2021 ¥ / shares shares | Dec. 31, 2020 ¥ / shares shares | |
Condensed Income Statements, Captions [Line Items] | ||||
Net loss per ordinary share diluted (in Dollars per share and Yuan Renminbi per share) | (per share) | $ (7.24) | ¥ (49.90) | ¥ (21.99) | ¥ (227.49) |
Weighted average number of ordinary shares diluted | 11,660,802 | 11,660,802 | 10,681,774 | 9,929,844 |
SCHEDULE 1-CONDENSED BALANCE _7
SCHEDULE 1-CONDENSED BALANCE SHEETS (Details) - Schedule of condensed statements of comprehensive income (loss) - Parent Company [Member] - Reportable Legal Entities [Member] ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Condensed Statement of Income Captions [Line Items] | ||||
Net income (loss) | ¥ (594,741) | $ (86,232) | ¥ (234,908) | ¥ (2,258,895) |
Foreign currency translation adjustments | 146,098 | 21,182 | (48,154) | (97,245) |
Unrealized gains (losses) on available-for-sale investments | ||||
Comprehensive Income (Loss) | ¥ (448,643) | $ (65,050) | ¥ (283,062) | ¥ (2,356,140) |
SCHEDULE 1-CONDENSED BALANCE _8
SCHEDULE 1-CONDENSED BALANCE SHEETS (Details) - Schedule of condensed statements of cash flow ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net income (loss) | ¥ (594,741) | $ (86,232) | ¥ (234,908) | ¥ (2,258,895) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||
Share-based compensation expense | 5,459 | 791 | 52,338 | 290,630 |
Impairment loss of equity securities without readily determinable fair value | 476 | 69 | ||
Changes in operating assets and liabilities: | ||||
Prepaid expenses and other assets | (254,145) | (36,848) | (37,214) | (570,392) |
Accrued expense and other liabilities | (216,903) | (31,448) | (322,953) | (807,117) |
Net cash provided by (used in) operating activities | 63,320 | 9,181 | (229,724) | (1,744,600) |
Cash Flows from Investing Activities: | ||||
Loan to related parties | ||||
Net cash provided by (used in) investing activities | (277,767) | (40,273) | (321,521) | 39,466 |
Cash Flows from Financing Activities: | ||||
Proceeds from exercise of share options | 433 | |||
Net cash provided by financing activities | 199,630 | 12,896 | ||
Effect of exchange rate changes | 107,124 | 15,532 | (26,683) | 212 |
Net increase (decrease) in cash and cash equivalents | (107,323) | (15,560) | (378,298) | (1,692,026) |
Parent Company [Member] | Reportable Legal Entities [Member] | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net income (loss) | (594,741) | (86,232) | (234,908) | (2,258,895) |
Equity in earnings (loss) of subsidiaries and VIEs | 528,114 | 76,572 | 150,814 | 1,855,047 |
Share-based compensation expense | 5,459 | 791 | 52,338 | 290,630 |
Changes in operating assets and liabilities: | ||||
Other receivables | 1,912 | 277 | (1,259) | |
Prepaid expenses and other assets | 1,993 | 289 | 87 | 6,667 |
Accrued expense and other liabilities | (178,424) | (25,869) | 282,124 | 5,901 |
Amounts due to subsidiaries and VIEs | (38) | (6) | (1) | (147) |
Amounts due from subsidiaries and VIEs | (76,344) | (11,069) | (476,054) | 45,654 |
Net cash provided by (used in) operating activities | (312,069) | (45,247) | (226,859) | 42,749 |
Cash Flows from Investing Activities: | ||||
Investment in subsidiaries | 18,774 | |||
Loan to related parties | (97,514) | |||
Disposal of long-term investments | 99,465 | 14,421 | 33,130 | |
Net cash provided by (used in) investing activities | 99,465 | 14,421 | 33,130 | (78,740) |
Cash Flows from Financing Activities: | ||||
Proceeds from exercise of share options | 433 | |||
Net cash provided by financing activities | 433 | |||
Effect of exchange rate changes | 41,845 | 6,068 | (15,828) | (1) |
Net increase (decrease) in cash and cash equivalents | (170,759) | (24,758) | (209,124) | (35,992) |
Cash and cash equivalents at beginning of year | 568,973 | 82,493 | 778,097 | 814,089 |
Cash and cash equivalents at end of year | 398,214 | 57,735 | 568,973 | 778,097 |
Principal Owner [Member] | Reportable Legal Entities [Member] | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Impairment loss of equity securities without readily determinable fair value | ¥ 97,892 |