Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2018 |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
Trading Symbol | PPDF |
Entity Registrant Name | PPDAI Group Inc. |
Entity Central Index Key | 0001691445 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | true |
Entity Shell Company | false |
Class A and Class B Ordinary Shares [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 1,486,770,169 |
Class A Ordinary Shares [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 827,770,169 |
Class B Ordinary Shares [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 659,000,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Assets | |||
Cash and cash equivalents | ¥ 1,616,164 | $ 235,061 | ¥ 1,891,131 |
Restricted cash (including restricted cash of the consolidated trusts of RMB44,775 and RMB303,667 as of December 31, 2017 and 2018, respectively) | 3,677,557 | 534,878 | 2,392,573 |
Short-term investments | 1,694,660 | 246,478 | 1,958,910 |
Accounts receivable, net of provision for doubtful accounts of RMB nil and RMB123,153 as of December 31, 2017 and 2018, respectively) | 812,042 | 118,107 | 17,773 |
Quality assurance receivable | 2,064,366 | 300,250 | 1,152,769 |
Property, equipment and software, net | 144,002 | 20,944 | 108,248 |
Intangible assets | 68,880 | 10,018 | 63,760 |
Goodwill | 50,411 | 7,332 | 50,411 |
Loans receivable, net of provision for loan losses of RMB47,670 and RMB240,419 as of December 31, 2017 and 2018, respectively (including loans receivable, net of provision for loan losses of the consolidated trusts of RMB647,793 and RMB2,290,082, respectively) | 2,331,108 | 339,046 | 681,794 |
Financial guarantee derivative assets | 56,287 | 8,187 | |
Investments | 167,501 | 24,362 | 12,234 |
Deferred tax assets | 122,763 | 17,855 | 128,361 |
Due from related party | 2,830 | 412 | |
Contract assets | 112,103 | 16,305 | 0 |
Prepaid expenses and other assets | 221,793 | 32,259 | 145,699 |
Total assets | 13,142,467 | 1,911,494 | 8,603,663 |
Liabilities and Shareholders' Equity: | |||
Payable to platform customers (including payable to platform customers of the consolidated variable interest entity ("VIE") and VIE's subsidiaries without recourse to the Company of RMB1,113,966 and RMB905,034 as of December 31, 2017 and 2018, respectively) | 905,034 | 131,632 | 1,113,966 |
Quality assurance payable (including quality assurance payable of the consolidated VIE and VIE's subsidiaries without recourse to the Company of RMB2,062,844 and RMB3,819,379 as of December 31, 2017 and 2018, respectively) | 3,819,379 | 555,506 | 2,062,844 |
Deferred revenue (including deferred revenue of the consolidated VIE and VIE's subsidiaries without recourse to the Company of RMB256,240 and RMB nil as of December 31, 2017 and 2018, respectively) | 265,094 | ||
Payroll and welfare payable (including payroll and welfare payable of the consolidated VIE and VIE's subsidiaries without recourse to the Company of RMB130,533 and RMB129,809 as of December 31, 2017 and 2018, respectively) | 188,254 | 27,380 | 156,831 |
Taxes payable (including taxes payable of the consolidated VIE and VIE's subsidiaries without recourse to the Company of RMB140,064 and RMB208,585 as of December 31, 2017 and 2018, respectively) | 225,101 | 32,740 | 257,143 |
Short-term borrowings (including short-term borrowings of the consolidated VIE and VIE's subsidiaries without recourse to the Company of RMB nil and RMB nil as of December 31, 2017 and 2018, respectively | 25,000 | 3,636 | |
Provision for payment to investor reserve fund investor (including provision for payment to investor reserve fund of the consolidated VIE and VIE's subsidiaries without recourse to the Company of RMB107,660 and RMB nil as of December 31, 2017 and 2018, respectively) | 107,660 | ||
Financial guarantee derivative liabilities (including financial guarantee derivative liabilities of the consolidated VIE and VIE's subsidiaries without recourse to the Company of RMB215,770 and RMB nil as of December 31, 2017 and 2018, respectively) | 215,770 | ||
Funds payable to investors of consolidated trusts (including funds payable to investors of consolidated trusts of RMB502,641 and RMB1,505,909 as of December 31, 2017 and 2018 respectively) | 1,505,909 | 219,025 | 502,641 |
Contract liabilities (including contract liabilities of the consolidated VIE and VIE's subsidiaries without recourse to the Company of RMB nil and RMB158,061 as of December 31, 2017 and 2018, respectively) | 165,469 | 24,066 | |
Due to related party (including due to related party of the consolidated VIE and VIE's subsidiaries without recourse to the Company of RMB11,972 and RMB nil as of December 31, 2017 and 2018, respectively) | 11,972 | ||
Deferred tax liabilities (including deferred tax liabilities of the consolidated VIE and VIE's subsidiaries without recourse to the Company of RMB nil and RMB78,268 as of December 31, 2017 and 2018, respectively) | 100,064 | 14,554 | 15,940 |
Accrued expenses and other liabilities (including accrued expenses and other liabilities of the consolidated VIE and VIE's subsidiaries without recourse to the Company of RMB194,780 and RMB190,406 as of December 31, 2017 and 2018, respectively) | 222,519 | 32,364 | 211,614 |
Total liabilities | 7,156,729 | 1,040,903 | 4,921,475 |
Commitments and contingencies | |||
PPDAI Group Inc. Shareholders' equity : | |||
Additional paid-in capital | 5,896,017 | 857,540 | 5,951,044 |
Treasury stock (nil and 46,301,000 shares as of December 31, 2017 and 2018, respectively) | (332,121) | (48,305) | |
Statutory reserves | 256,006 | 37,235 | 55,090 |
Accumulated other comprehensive income | 58,210 | 8,466 | 14,917 |
Retained earnings (accumulated deficit) | 45,668 | 6,643 | (2,398,984) |
Total PPDAI Group Inc. shareholders' equity | 5,923,882 | 861,594 | 3,622,167 |
Non-controlling Interest | 61,856 | 8,997 | 60,021 |
Total shareholders' equity | 5,985,738 | 870,591 | 3,682,188 |
Total liabilities and shareholders' equity | 13,142,467 | 1,911,494 | 8,603,663 |
Class A Ordinary Shares [Member] | |||
PPDAI Group Inc. Shareholders' equity : | |||
Ordinary shares | 58 | 8 | 56 |
Class B Ordinary Shares [Member] | |||
PPDAI Group Inc. Shareholders' equity : | |||
Ordinary shares | ¥ 44 | $ 7 | ¥ 44 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2017CNY (¥)shares |
Restricted cash | ¥ 3,677,557 | ¥ 2,392,573 |
Provision for doubtful accounts | 123,153 | 0 |
Provision for loan losses | 240,419 | 47,670 |
Loans receivable, net of provision for loan losses | 2,331,108 | 681,794 |
Payable to platform customers | 905,034 | 1,113,966 |
Quality assurance fund payable | 3,819,379 | 2,062,844 |
Deferred revenue | 265,094 | |
Payroll and welfare payable | 188,254 | 156,831 |
Taxes payable | 225,101 | 257,143 |
Short-term borrowings | 25,000 | |
Provision for payment to investor reserve fund investor | 107,660 | |
Financial gurantee derivative liabilities | 215,770 | |
Funds payable to investors of consolidated trusts | 1,505,909 | 502,641 |
Contract liabilities | 165,469 | |
Due to related parties | 11,972 | |
Deferred tax liabilities | 100,064 | 15,940 |
Accrued expenses and other liabilities | ¥ 222,519 | ¥ 211,614 |
Ordinary stock, shares issued | shares | 1,533,071,169 | |
Treasury stock, common shares | shares | 46,301,000 | 0 |
Consolidated VIEs' principal subsidiaries [Member] | ||
Payable to platform customers | ¥ 905,034 | ¥ 1,113,966 |
Quality assurance fund payable | 3,819,379 | 2,062,844 |
Deferred revenue | 0 | 256,240 |
Payroll and welfare payable | 129,809 | 130,533 |
Taxes payable | 208,585 | 140,064 |
Short-term borrowings | 0 | 0 |
Provision for payment to investor reserve fund investor | 0 | 107,660 |
Financial gurantee derivative liabilities | 0 | 215,770 |
Funds payable to investors of consolidated trusts | 1,505,909 | 502,641 |
Contract liabilities | 158,061 | 0 |
Due to related parties | 0 | 11,972 |
Deferred tax liabilities | 78,268 | 0 |
Accrued expenses and other liabilities | ¥ 190,406 | ¥ 194,780 |
Class A Ordinary Shares [Member] | ||
Ordinary stock, authorized | shares | 10,000,000,000 | 10,000,000,000 |
Ordinary stock, shares issued | shares | 874,071,169 | 842,071,169 |
Ordinary Stock, shares outstanding | shares | 827,770,169 | 842,071,169 |
Class B Ordinary Shares [Member] | ||
Ordinary stock, authorized | shares | 10,000,000,000 | 10,000,000,000 |
Ordinary stock, shares issued | shares | 659,000,000 | 661,000,000 |
Ordinary Stock, shares outstanding | shares | 659,000,000 | 661,000,000 |
Consolidated Trust [Member] | ||
Restricted cash | ¥ 303,667 | ¥ 44,775 |
Loans receivable, net of provision for loan losses | 2,290,082 | 647,793 |
VIE's subsidiaries [Member] | ||
Payable to platform customers | 905,034 | 1,113,966 |
Quality assurance fund payable | 3,819,379 | 2,062,844 |
Deferred revenue | 0 | 256,240 |
Payroll and welfare payable | 129,809 | 130,533 |
Taxes payable | 208,585 | 140,064 |
Short-term borrowings | 0 | 0 |
Provision for payment to investor reserve fund investor | 0 | 107,660 |
Financial gurantee derivative liabilities | 0 | 215,770 |
Funds payable to investors of consolidated trusts | 1,505,909 | 502,641 |
Contract liabilities | 158,061 | 0 |
Due to related parties | 0 | 11,972 |
Deferred tax liabilities | 78,268 | 0 |
Accrued expenses and other liabilities | ¥ 190,406 | ¥ 194,780 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | Dec. 31, 2016CNY (¥)¥ / sharesshares | |
Operating revenue: | ||||
Operating revenues | ¥ 4,287,565 | $ 623,600 | ¥ 3,895,846 | ¥ 1,208,674 |
Net interest income (expense) and loan provision losses | 63,359 | 9,215 | (15,209) | 7,084 |
Net revenues | 4,350,924 | 632,815 | 3,880,637 | 1,215,758 |
Operating expenses: | ||||
Origination and servicing expenses | (875,905) | (127,395) | (890,160) | (349,852) |
Origination and servicing expenses-related party | (109,666) | (15,950) | (84,362) | (38,297) |
Sales and marketing expenses | (710,754) | (103,375) | (788,291) | (352,952) |
General and administrative expenses | (701,353) | (102,008) | (588,664) | (237,808) |
Provision for doubtful accounts | (106,652) | (15,512) | ||
Total operating expenses | (2,504,330) | (364,240) | (2,351,477) | (978,909) |
Other income (expenses) | ||||
Gain from quality assurance | 510,894 | 74,307 | 5,885 | 99,961 |
Realized gain (loss) from financial guarantee derivatives | (157,244) | (22,870) | 169,103 | 31,999 |
Fair value change of financial guarantee derivatives | 272,057 | 39,569 | (383,061) | 146,653 |
Gain from disposal of subsidiary | 20,611 | |||
Other income, net | 148,356 | 21,578 | 36,531 | 13,684 |
Profit before income tax expenses | 2,620,657 | 381,159 | 1,357,618 | 549,757 |
Income tax expenses | (151,206) | (21,992) | (274,711) | (48,267) |
Net profit | 2,469,451 | 359,167 | 1,082,907 | 501,490 |
Less: Net profit (loss) attributable to non-controlling interest shareholders | 377 | 55 | (76) | |
Net profit | 2,469,074 | 359,112 | 1,082,983 | 501,490 |
Accretion on convertible redeemable preferred shares to redemption value | (3,073,471) | (562,022) | ||
Net profit (loss) attributable to PPDAI Group Inc.'s ordinary shareholders | 2,469,074 | 359,112 | (1,990,488) | (60,532) |
Net profit | 2,469,451 | 359,167 | 1,082,907 | 501,490 |
Foreign currency translation adjustment, net of nil tax | 43,293 | 6,297 | 99,934 | (60,498) |
Total comprehensive income | 2,512,744 | 365,464 | 1,182,841 | 440,992 |
Total comprehensive income (loss) attributable to non-controlling interests shareholders | 377 | 55 | (76) | |
Total comprehensive income attributable to PPDAI Group Inc. | ¥ 2,512,367 | $ 365,409 | ¥ 1,182,917 | ¥ 440,992 |
Weighted average number of ordinary shares used in computing net income (loss) per share | ||||
Basic | shares | 1,498,780,165 | 1,498,780,165 | 779,804,270 | 665,000,000 |
Diluted | shares | 1,599,592,231 | 1,599,592,231 | 779,804,270 | 665,000,000 |
Net income (loss) per share - Basic | (per share) | ¥ 1.6474 | $ 0.2396 | ¥ (2.5525) | ¥ (0.0910) |
Net income (loss) per share - Diluted | (per share) | ¥ 1.5436 | $ 0.2245 | ¥ (2.5525) | ¥ (0.0910) |
Loan facilitation service fees [Member] | ||||
Operating revenue: | ||||
Operating revenues | ¥ 2,919,234 | $ 424,585 | ¥ 2,843,287 | ¥ 911,448 |
Post-facilitation service fees [Member] | ||||
Operating revenue: | ||||
Operating revenues | 922,797 | 134,215 | 668,819 | 126,823 |
Other Revenue [Member] | ||||
Operating revenue: | ||||
Operating revenues | 376,915 | 54,820 | 491,400 | 170,403 |
Changes in expected discretionary payment to IRF investors [Member] | ||||
Operating revenue: | ||||
Operating revenues | ¥ 68,619 | $ 9,980 | (107,660) | |
Series A Convertible Redeemable Preferred Shares [Member] | ||||
Other income (expenses) | ||||
Accretion on convertible redeemable preferred shares to redemption value | (1,237,274) | (236,662) | ||
Series B Convertible Redeemable Preferred Shares [Member] | ||||
Other income (expenses) | ||||
Accretion on convertible redeemable preferred shares to redemption value | (905,861) | (171,106) | ||
Series C Convertible Redeemable Preferred Shares [Member] | ||||
Other income (expenses) | ||||
Accretion on convertible redeemable preferred shares to redemption value | ¥ (930,336) | ¥ (154,254) | ||
American Depositary Shares [Member] | ||||
Weighted average number of ordinary shares used in computing net income (loss) per share | ||||
Net income (loss) per share - Basic | (per share) | ¥ 8.2369 | $ 1.1980 | ¥ (12.7627) | ¥ (0.4551) |
Net income (loss) per share - Diluted | (per share) | ¥ 7.7178 | $ 1.1225 | ¥ (12.7627) | ¥ (0.4551) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT) ¥ in Thousands, $ in Thousands | CNY (¥)shares | USD ($)shares | Series A Preferred Stock [Member]CNY (¥) | Series B Preferred Stock [Member]CNY (¥) | Series C Preferred Stock [Member]CNY (¥) | Common Stock [Member]CNY (¥)shares | Common Stock [Member]Series A Preferred Stock [Member]CNY (¥)shares | Common Stock [Member]Series B Preferred Stock [Member]CNY (¥)shares | Common Stock [Member]Series C Preferred Stock [Member]CNY (¥)shares | Additional Paid-in Capital [Member]CNY (¥) | Additional Paid-in Capital [Member]Series A Preferred Stock [Member]CNY (¥) | Additional Paid-in Capital [Member]Series B Preferred Stock [Member]CNY (¥) | Additional Paid-in Capital [Member]Series C Preferred Stock [Member]CNY (¥) | Treasury Stock [Member]CNY (¥)shares | Accumulated Other Comprehensive Income (Loss) [Member]CNY (¥) | Statutory Reserves [Member]CNY (¥) | Retained Earnings (Accumulated Deficit) [Member]CNY (¥) | Non-controlling Interest [Member]CNY (¥) |
Balance at Dec. 31, 2015 | ¥ (317,393) | ¥ (24,519) | ¥ (292,874) | |||||||||||||||
Balance, Shares at Dec. 31, 2015 | shares | 665,000,000 | |||||||||||||||||
Accretions to preferred shares redemption value | (562,022) | (562,022) | ||||||||||||||||
Net profit | 501,490 | 501,490 | ||||||||||||||||
Foreign currency translation adjustment | (60,498) | (60,498) | ||||||||||||||||
Appropriation to statutory reserve | ¥ 15,662 | (15,662) | ||||||||||||||||
Balance at Dec. 31, 2016 | (438,423) | (85,017) | 15,662 | (369,068) | ||||||||||||||
Balance, Shares at Dec. 31, 2016 | shares | 665,000,000 | |||||||||||||||||
Issuance of ordinary shares upon Initial Public Offering ("IPO") and Concurrent Private Placement ("CPP"), net of expense | 1,677,222 | ¥ 51 | ¥ 1,677,171 | |||||||||||||||
Issuance of ordinary shares upon Initial Public Offering ("IPO") and Concurrent Private Placement ("CPP"), net of expense, shares | shares | 104,230,769 | |||||||||||||||||
Accretions to preferred shares redemption value | (3,073,471) | (3,073,471) | ||||||||||||||||
Conversion of preferred shares to ordinary shares | ¥ 1,563,908 | ¥ 1,212,295 | ¥ 1,391,567 | ¥ 19 | ¥ 14 | ¥ 16 | ¥ 1,563,889 | ¥ 1,212,281 | ¥ 1,391,551 | |||||||||
Conversion of preferred shares to ordinary shares, Shares | shares | 285,000,000 | 214,285,700 | 234,554,700 | |||||||||||||||
Share-based compensation | 65,324 | 65,324 | ||||||||||||||||
Cancellation of Share-based compensation plan of a subsidiary | 40,828 | 40,828 | ||||||||||||||||
Net profit | 1,082,907 | 1,082,983 | ¥ (76) | |||||||||||||||
Foreign currency translation adjustment | 99,934 | 99,934 | ||||||||||||||||
Business Combination | 60,097 | 60,097 | ||||||||||||||||
Appropriation to statutory reserve | 39,428 | (39,428) | ||||||||||||||||
Balance at Dec. 31, 2017 | 3,682,188 | ¥ 100 | 5,951,044 | 14,917 | 55,090 | (2,398,984) | 60,021 | |||||||||||
Balance, Shares at Dec. 31, 2017 | shares | 1,503,071,169 | |||||||||||||||||
Issuance of ordinary shares for share-based compensation plans | ¥ 2 | ¥ (2) | ||||||||||||||||
Issuance of ordinary shares for share-based compensation plans, shares | shares | 30,000,000 | (30,000,000) | ||||||||||||||||
Repurchase of ordinary shares | ¥ (452,262) | ¥ (452,262) | ||||||||||||||||
Repurchase of ordinary shares, shares | shares | 60,306,360 | 60,306,360 | (60,306,360) | |||||||||||||||
Cumulative effect of accounting change | ¥ 176,494 | 176,494 | ||||||||||||||||
Share-based compensation | 50,319 | 50,319 | ||||||||||||||||
Exercise of share-based compensation plans | 14,797 | (105,346) | ¥ 120,143 | |||||||||||||||
Exercise of share-based compensation plans, shares | shares | 44,005,360 | |||||||||||||||||
Net profit | 2,469,451 | $ 359,167 | 2,469,074 | 377 | ||||||||||||||
Foreign currency translation adjustment | 43,293 | 6,297 | 43,293 | |||||||||||||||
Capital injection from non-controlling interest | 1,458 | 1,458 | ||||||||||||||||
Appropriation to statutory reserve | 200,916 | (200,916) | ||||||||||||||||
Balance at Dec. 31, 2018 | ¥ 5,985,738 | $ 870,591 | ¥ 102 | ¥ 5,896,017 | ¥ (332,121) | ¥ 58,210 | ¥ 256,006 | ¥ 45,668 | ¥ 61,856 | |||||||||
Balance, Shares at Dec. 31, 2018 | shares | 1,533,071,169 | (46,301,000) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Cash flows from operating activities: | ||||
Net profit | ¥ 2,469,451 | $ 359,167 | ¥ 1,082,907 | ¥ 501,490 |
Adjustments to reconcile net profit to net cash provided by (used in) operating activities: | ||||
Provision for loan losses | 192,749 | 28,034 | 46,586 | 34,705 |
Provision for doubtful accounts | 106,652 | 15,512 | ||
Depreciation and amortization | 42,162 | 6,132 | 22,555 | 12,086 |
Change in fair value of short term investments | (16,460) | (2,394) | (3,875) | |
Change in fair value of investments | 77 | 11 | ||
Gain from investment in loans | (256,108) | (37,249) | (31,377) | (41,789) |
Share-based compensation | 50,319 | 7,319 | 106,152 | |
Gain from disposal of subsidiary | (20,611) | |||
Changes in operating assets and liabilities: | ||||
Deferred revenue | (97,080) | (14,120) | 102,198 | 149,216 |
Accounts receivable | (746,753) | (108,611) | (3,578) | 43,758 |
Prepaid expenses and other assets | (115,017) | (16,729) | (70,703) | (3,685) |
Due to related party | (11,972) | (1,741) | (3,539) | 15,634 |
Due from related party | (2,830) | (412) | (123) | |
Accrued expenses and other liabilities | 16,696 | 2,428 | 108,449 | 34,275 |
Payable to platform customers | (208,932) | (30,388) | 692,307 | 245,494 |
Payroll and welfare payable | 31,423 | 4,570 | 72,297 | 49,937 |
Taxes payable | (32,042) | (4,660) | 171,934 | 54,484 |
Deferred tax assets | (27,705) | (4,030) | (112,583) | (16,839) |
Deferred tax liabilities | 84,124 | 12,235 | 15,940 | |
Financial guarantee derivative assets and discretionary payment | (379,717) | (55,228) | 490,721 | (146,653) |
Quality assurance receivable | (911,597) | (132,586) | (865,957) | (171,328) |
Quality assurance payable | 1,756,535 | 255,477 | 1,589,140 | 348,053 |
Contract assets | (59,019) | (8,584) | ||
Contract liabilities | (97,080) | (14,120) | 102,198 | 149,216 |
Net cash provided by operating activities | 1,884,956 | 274,153 | 3,409,451 | 1,088,227 |
Cash flows from investing activities: | ||||
Collection of loans originated and held by the Group | 2,805,940 | 408,107 | 368,953 | 1,024,287 |
Investment in loans originated and held by the Group | (4,331,811) | (630,036) | (1,022,937) | (1,454,890) |
Short-term loan to related party | (11,010) | |||
Purchase of property, equipment and software | (83,584) | (12,157) | (90,871) | (29,804) |
Purchase of investments | (155,286) | (22,585) | (9,953) | (2,428) |
Proceeds from short-term investments | 13,122,058 | 1,908,524 | 6,485,536 | 68,498 |
Purchase of short-term investments | (12,799,210) | (1,861,568) | (8,147,450) | (292,765) |
Proceeds from disposal of a subsidiary | 6,000 | 14,000 | ||
Acquisition of intangible assets | (5,120) | (745) | ||
Cash paid for business combinations, net of cash acquired | (40,078) | |||
Net cash used in investing activities | (1,447,013) | (210,460) | (2,450,800) | (684,112) |
Cash flows from financing activities: | ||||
Cash paid for repurchase of the consolidated trusts | (47,173) | (6,861) | (31,250) | |
Repayment of short-term borrowings | (63,685) | (9,263) | (20,000) | |
Cash received from short-term borrowings | 87,010 | 12,655 | ||
Repurchase of ordinary shares | (452,262) | (65,779) | ||
Proceeds from exercise of share-based compensation plans | 14,009 | 2,038 | ||
Capital injection from non-controlling interest | 1,458 | 212 | ||
Proceeds from issuance of ordinary shares, net | 1,677,222 | |||
Net cash provided by financing activities | 530,097 | 77,100 | 2,132,933 | 438,701 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 41,977 | 6,107 | (15,445) | 2,493 |
Net increase in cash, cash equivalents and restricted cash | 1,010,017 | 146,900 | 3,076,139 | 845,309 |
Cash, cash equivalents and restricted cash at beginning of year | 4,283,704 | 623,039 | 1,207,565 | 362,256 |
Cash, cash equivalents and restricted cash at end of period | 5,293,721 | 769,939 | 4,283,704 | 1,207,565 |
Supplemental disclosure of cash investing and financing activities | ||||
Cash paid for interest including paid to investors of consolidated trusts | (58,312) | (8,481) | (5,376) | (554) |
Cash paid for income taxes | 180,233 | 26,214 | 216,060 | |
Supplemental disclosure of non-cash investing and financing activities Accretion on convertible redeemable preferred shares to redemption value | ||||
Accretion on convertible redeemable preferred shares to redemption value | 3,073,471 | 562,022 | ||
Consideration receivable for disposal of a subsidiary | 6,000 | |||
Payable for purchase of property, equipment and software | 917 | 133 | 6,585 | |
Consolidated Trust [Member] | ||||
Cash flows from financing activities: | ||||
Cash paid to investors | (192,840) | (28,047) | (68,539) | (567) |
Cash received from investors | ¥ 1,183,580 | $ 172,145 | ¥ 555,500 | 30,000 |
Alternative Investment Product [Member] | ||||
Cash flows from financing activities: | ||||
Cash paid to investors | (822,202) | |||
Cash received from investors | ¥ 1,251,470 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) |
Statement of Cash Flows [Abstract] | ||||||
Cash and cash equivalents | ¥ 1,616,164 | $ 235,061 | ¥ 1,891,131 | |||
Restricted cash | 3,677,557 | 534,878 | 2,392,573 | |||
Cash, cash equivalents and restricted cash | ¥ 5,293,721 | $ 769,939 | ¥ 4,283,704 | $ 623,039 | ¥ 1,207,565 | ¥ 362,256 |
Principal activities and reorga
Principal activities and reorganization | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principal activities and reorganization | 1. Principal activities and reorganization (a) Principal activities PPDAI Group Inc. (the “Company”) is an investment holding company and with its consolidated subsidiaries and variable interest entities (“VIEs”) (collectively referred to as the “Group”) operates an online consumer finance marketplace through its platform (www.ppdai.com) registered in the People’s Republic of China (the “PRC” or “China”). As of December 31, 2018, the Company’s principal subsidiaries and consolidated VIEs are as follows: Name Percentage direct or ownership Date of incorporation Place of Subsidiaries PPDAI (HK) LIMITED. (“PPDAI HK”) 100 % June 12, 2012 Hong Kong, China Beijing Prosper Investment Consulting Co., Ltd. (“Beijing Prosper”) 100 % August 21, 2012 Beijing, China Shanghai Guangjian Information Technology Co., Ltd. (“Shanghai Guangjian”) 100 % June 5, 2017 Shanghai, China Shanghai Shanghu Information Technology Co., Ltd. (“Shanghai Shanghu”) Shanghai Manyin Information Technology Co., Ltd. (“Shanghai Manyin”) 100 % June 15, 2017 Shanghai, China Consolidated VIEs Beijing Paipairongxin Investment Consulting Co., Ltd. (“Beijing Paipairongxin”) 100 %* June 15, 2012 Beijing, China Shanghai Zihe Information Technology Co., Ltd. (“Shanghai Zihe”) 100 %* March 21, 2018 Shanghai, China Shanghai Nianqiao Technology Co., Ltd. (“Shanghai Nianqiao”) 100 %* November 29, 2018 Shanghai, China Consolidated VIEs’ principal subsidiaries Shanghai PPDai Financial Information Services Co.,Ltd. (“Shanghai PPDai”) 100 %* January 18, 2011 Shanghai, China Shanghai Erxu Information Technology Co., Ltd. (“Shanghai Erxu”) 100 %* April 28, 2018 Shanghai, China * Controlled via contractual relationships (b) Reorganization Prior to 2012, the operation of the online consumer finance marketplace was carried out by Shanghai PPDAI and Beijing Paipairongxin, both of which were owned by the original shareholders (the “Founders”) and an angel investor. To facilitate offshore financing, an offshore corporate structure was formed in 2012 (the “Reorganization”), which was carried out as follows: 1) PPDAI Group Inc was incorporated in the Cayman Islands on June 6, 2012 by the Founders and angel investor. 2) On June 12, 2012, PPDAI HK was incorporated in Hong Kong as a wholly owned subsidiary of the Company. 3) On June 15, 2012, Beijing Prosper was incorporated in the PRC as a wholly owned subsidiary of PPDAI HK. 4) On August 21, 2012, Beijing Paipairongxin was incorporated in the PRC by the founders of Shanghai PPDAI. By entering into a series of commercial agreements in 2012 to 2014 (the “VIE Agreements”) that included the founders. Beijing Prosper, Beijing Paipairongxin and Shanghai PPai, (i) Shanghai PPDAI became a wholly owned subsidiary of Beijing Paipairongxin and (ii) Beijing Pairongxin became a VIE whose primary beneficiary is Beijing Prosper. Upon entering into the agreements, the shareholders of Beijing Paipairongxin became the “Nominee Shareholders” of Beijing Paipairongxin. The Company further carried out the following reorganization activities in 2017: 1) On June 5, 2017, Shanghai Guangjian was incorporated in the PRC as a wholly owned subsidiary of PPDAI HK. 2) On June 15, 2017, Shanghai Shanghu was incorporated in PRC as a wholly owned subsidiary of Shanghai Guangjian. In June, 2017, Shanghai Guangjian, Shanghai Shanghu, Beijing Prosper, Beijing Paipairongxin, Shanghai PPDAI and the shareholders of Beijing Paipairongxin entered into a new set of contractual arrangements, including an equity pledge agreement, a business operation agreement, a power of attorney, an option agreement and an exclusive technology consulting and service agreement, replacing the previous contractual agreements among Beijing Prosper, Beijing Paipairongxin, Shanghai PPDai and the shareholders of Beijing Paipairongxin. The term of the new set of agreements do not change from the previous ones. As a result, the Company continues to have control over Beijing Paipairongxin. Shanghai Guangjian and Shanghai Manyin are collectively referred to as the WOFEs. Beijing Paipairongxin, Shanghai Zihe and Shanghai Nianqiao are collectively referred to as the VIEs. (c) Share split On October 20, 2017, the Company effected a share split. Each of ordinary share and preferred share of the Company was subdivided into 100 shares at a par value of US$0.00001. All shares and per share amounts presented in these consolidated financial statements and notes have been revised on a retroactive basis to reflect the effect of the share split. The par value per ordinary share has been retroactively revised as if it had been adjusted in proportion to the share split. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | 2. Summary of significant accounting policies (a) Basis of presentation The Group’s consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying consolidated financial statements and related disclosures. Actual results may differ from those estimates. (b) Principle of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries, which include the WOFEs and consolidated VIEs, for which the Company is the ultimate primary beneficiary. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors. Consolidated VIEs are entities in which the WOFEs through their respective contractual arrangements, bear the risks of, and enjoy the rewards normally associated with, ownership of the entities, and therefore the Company is the primary beneficiary of these entities. All transactions and balances among the Company, its subsidiaries, the VIEs and the VIEs’ subsidiaries have been eliminated upon consolidation. Details of the typical structure of the Company’s significant VIEs are set forth below: i) VIE Agreements that give the Company effective control of VIEs Business Operation Agreement Pursuant to the relevant business operation agreements, the shareholders of the VIEs agree that to the extent permitted by law, they will accept and unconditionally execute the WOFEs’ instructions on business operations, such as appointment of directors and executive officers. They further agree that, without the WOFEs’ prior written consent, the VIEs will not take any action that may have material adverse effects on their assets, businesses, human resources, rights, obligations, or business operations. The shareholders of the VIEs agree to transfer any dividends or other similar income or interests they receive as the shareholders of the VIEs, if any, immediately and unconditionally to the WOFEs. This agreement also requires each of the shareholders of the VIEs to issue an irrevocable power of attorney authorizing the WOFEs or any person(s) designated by the WOFEs to execute shareholders’ rights on behalf of such shareholder. Unless the WOFEs terminate this agreements in advance, the agreement will remain effective until the VIEs are dissolved pursuant to PRC law. Power of Attorney Pursuant to each power of attorney, each shareholder of the VIEs have irrevocably appointed the WOFEs or any persons designated by the WOFEs to act as such shareholder’s attorney-in-fact Exclusive Option Agreement Pursuant to the exclusive option agreements, the Nominee Shareholders of the VIEs granted the WOFEs or any third party designated by the WOFEs the exclusive and irrevocable right to purchase from the Nominee Shareholders, to the extent permitted by PRC law and regulations, all or part of its respective equity interests in the VIEs for a purchase price equal to the registered capital. The Nominee Shareholders will then return the purchase price to the WOFEs or any third party designated by the WOFEs after the option is exercised. The WOFEs may transfer all or part of its option to a third party at its own option. The VIEs and the Nominee Shareholders agree that without prior written consent of the WOFEs, they may not transfer or otherwise dispose the equity interests or declare any dividend. The exclusive option agreement will remain effective until the WOFEs or any third party designated by the WOFEs acquire all equity interest of the VIEs. Equity Pledge Agreement Pursuant to relevant equity pledge agreements, each shareholder of the VIEs has pledged all of his or her equity interest held in the VIEs to the WOFEs to guarantee his or her obligations under the business operation agreement, the power of attorney, exclusive option agreement and the exclusive technology consulting and service agreement. In the event that the VIEs breach any obligations under these agreements, the WOFEs as the pledgee, 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. The Nominee Shareholders may not dispose of the equity interests or create or permit any pledges which may have an adverse effect on the rights or benefits of the WOFEs without the prior written consent of the WOFEs. The relevant share pledge agreements will remain effective until the VIEs and its Nominee Shareholders discharge all of their obligations under the VIE Agreements and the pledgee consents such discharge in writing. ii) VIE Agreement Exclusive technology consulting and service agreement Pursuant to the exclusive technology consulting and service agreements, WOFEs have the exclusive right to provide the VIEs and their subsidiaries (as designated in the agreement) with technical support, consulting services and other services. The WOFEs shall exclusively own any intellectual property arising from the performance of the agreement. During the term of this agreement, the VIEs and their designated subsidiaries may not accept any services covered by this agreement provided by any third party. The VIEs and their designated subsidiaries agree to pay service fees equal to 100% of the net profit generated or otherwise determined by the WOFEs. Except by mutual agreement upon early termination by parties in writing, the exclusive business cooperation agreement will remain effective until the VIEs and their designated subsidiaries are dissolved in accordance with PRC law and regulation. Based on these contractual agreements, the Company believes that the VIEs as described above should be considered as VIEs because the equity holders do not have significant equity at risk nor do they have the characteristics of a controlling financial interest. Given that the Company, through the WOFEs, is the primary beneficiary of these VIEs, the Company believes that these VIEs should be consolidated based on the structure as described above. The following table sets forth the assets, liabilities, results of operations and cash flows of the VIEs, which are included in the Group’s consolidated financial statements. Transactions between the VIEs and their subsidiaries are eliminated in the balances presented below: As of December 31, 2017 2018 RMB RMB Cash and cash equivalents 377,470 752,102 Restricted cash 2,347,799 3,341,985 Short-term investments 1,623,656 1,574,090 Account receivable 3,287 800,334 Quality assurance receivable 1,152,769 2,064,366 Property, equipment and software, net 83,802 104,802 Financial guarantee derivative assets — 56,287 Investments 290,168 1,147,569 Deferred tax assets 127,542 88,446 Contract assets — 112,103 Prepaid expenses and other assets 141,321 167,817 Total assets 6,147,814 10,209,901 Payable to platform customers 1,113,966 905,034 Quality assurance payable 2,062,844 3,819,379 Deferred revenue 256,240 — Payroll and welfare payable 130,533 129,809 Taxes payable 140,064 208,585 Provision for payment to investor reserve fund investor 107,660 — Financial guarantee derivative liabilities 215,770 — Contract liabilities — 158,061 Deferred tax liabilities — 78,268 Due to related parties 700,137 1,609,126 Accrued expenses and other liabilities 194,780 190,406 Total liabilities 4,921,994 7,098,668 For the Years Ended December 31, 2016 2017 2018 RMB RMB RMB Net revenue 1,216,971 3,900,454 4,250,978 Net profit 314,300 730,855 1,604,530 Net cash provided by operating activities 1,164,122 3,233,966 1,356,887 Net cash used in investing activities (712,429 ) (1,642,454 ) (1,031,968 ) Net cash provided by (used in) financing activities 379,835 (31,250 ) 1,043,899 Net increase in cash, cash equivalents and restricted cash 831,528 1,560,262 1,368,818 Cash, cash equivalents and restricted cash at beginning of year 333,479 1,165,007 2,725,269 Cash, cash equivalents and restricted cash at end of year 1,165,007 2,725,269 4,094,087 Under the VIE Arrangements, the Company has the power to direct activities of the VIEs and can have assets transferred out of the VIEs. Therefore, the Company considers that there is no asset in the VIEs that can be used only to settle obligations of the VIEs, except for registered capital and PRC statutory reserves, if any. As the VIEs are incorporated as limited liability company under the Company Law of the PRC, creditors of the VIEs do not have recourse to the general credit of the Company for any of the liabilities of the VIEs. Currently there is no contractual arrangement which requires the Company to provide additional financial support to the VIEs. However, as the Company conducts its businesses primarily based on the licenses and approvals held by the VIEs and their subsidiaries, the Company has provided and will continue to provide financial support to the VIEs. (c) Business combinations and noncontrolling interests The Company accounts for its business combinations using the acquisition method of accounting in accordance with Accounting Standards Codification (“ASC”) 805 “Business Combinations.” The cost of an acquisition is measured as the aggregate of the acquisition date fair values of the assets transferred and liabilities incurred by the Company to the sellers and equity instruments issued. Transaction costs directly attributable to the acquisition are expensed as incurred. Identifiable assets and liabilities acquired or assumed are measured separately at their fair values as of the acquisition date, irrespective of the extent of any noncontrolling interests. The excess of (i) the total costs of acquisition, fair value of the noncontrolling interests and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the consolidated income statements. During the measurement period, which can be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the consolidated statements of operations. In a business combination achieved in stages, the Company re-measures re-measurement When there is a change in ownership interests that result in a loss of control of a subsidiary, the Company deconsolidates the subsidiary from the date control is lost. Any retained noncontrolling investment in the former subsidiary is measured at fair value and is included in the calculation of the gain or loss upon deconsolidation of the subsidiary. For the Company’s majority-owned subsidiaries and VIEs, a noncontrolling interest is recognized to reflect the portion of their equity which is not attributable, directly or indirectly, to the Company. Consolidated net income (loss) on the consolidated income statements includes the net income (loss) attributable to noncontrolling interests and mezzanine equity holders when applicable. Net income (loss) attributable to mezzanine equity holders is included in net income (loss) attributable to noncontrolling interests on the consolidated income statements, while it is excluded from the consolidated statements of changes in shareholders’ equity. The cumulative results of operations attributable to noncontrolling interests, along with adjustments for share-based compensation expense arising from outstanding share-based awards relating to subsidiaries’ shares, are also recorded as noncontrolling interests in the Company’s consolidated balance sheets. Cash flows related to transactions with noncontrolling interests are presented under financing activities in the consolidated statements of cash flows. (d) Use of estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Financial statements amounts that reflect significant accounting estimates and assumptions include revenue recognition, fair value of quality assurance liabilities, valuation allowance for deferred tax assets, allowance for doubtful accounts, allowance for loan losses, determination of uncertain tax positions, accounting for convertible redeemable preferred shares, and valuation of share-based awards. Such accounting estimates are impacted significantly by judgements and assumptions used in the preparation of the Group’s consolidated financial statements, and actual results could differ materially from these estimates. Changes in estimates are recorded in the period they are identified. (e) Foreign currency and foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The US$ is the functional currency of the Group’s entities incorporated in Cayman Islands and Hong Kong, and the RMB is the functional currency of the Group’s PRC subsidiaries. Transactions denominated in other than the functional currencies are re-measured re-measured The financial statements of the Group are translated from the functional currency to the reporting currency, RMB. Assets and liabilities of the subsidiaries are translated into RMB using the exchange rate in effect at each balance sheet date. Income and expenses items are generally translated at the average exchange rates prevailing during the fiscal year. Foreign currency translation adjustments arising from these are accumulated as a separate component of shareholders’ deficit on the consolidated financial statements. The exchange rates used for translation on December 31, 2017 and 2018 were US$1.00= RMB6.5342 and RMB6.8632, respectively, representing the index rates stipulated by the People’s Bank of China. (f) Convenience translation Translations of balances in the Group’s consolidated balance sheet, consolidated statement of operations and comprehensive income (loss) and consolidated statement of cash flows from RMB into US$ as of and for year ended December 31, 2018 are solely for the convenience of the readers and were calculated at the rate of US$1.00=RMB6.8755, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 31, 2018. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2018, or at any other rate. (g) Certain risks and concentration As of December 31, 2017 and 2018, substantially all of the Group’s cash, term deposit and cash equivalents, restricted cash and short-term investments were held in major financial institutions located in the PRC and in Hong Kong, which management considers to be of high credit quality. Accounts receivable are generally unsecured and denominated in RMB, and are derived from revenues earned from operations arising primarily in the PRC. No individual customer accounted for more than 10% of net revenues for the years ended December 31, 2016, 2017 and 2018. No individual customer accounted for more than 10% of accounts receivable as of December 31, 2017 and 2018. (h) 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. (i) Restricted cash Restricted cash represents: (i) Cash in quality assurance is cash managed by the Group through designated bank accounts and cash managed by China United SME Guarantee Corporation (“Sino Guarantee”) under the new quality assurance program. There is no other use of these funds except for making payments to investors for default loans that are subject to quality assurance protection. As of December 31, 2017 and 2018, the restricted cash related to quality assurance amounted to RMB1,058,617 and RMB2,414,449, respectively. (ii) Cash in investor reserve funds is cash managed by the Group through a designated bank account or third party payment company account. There is no other use of these funds except for payments to protect relevant investors from potential losses resulting from delinquent loans and or underperformance of the investment programs. As of December 31, 2017 and 2018, the restricted cash related to investor reserve funds amounted to RMB175,215 and RMB17,971, respectively. (iii) Cash received from investors and borrowers that has not yet been disbursed, due to a settlement time lag. As of December 31, 2017 and 2018, the restricted cash related to cash not yet disbursed amounted to RMB1,113,966 and RMB905,034, respectively. (iv) Cash received via consolidated trusts that has not yet been distributed. As of December 31, 2017 and 2018, the restricted cash related to cash not yet distributed amounted to RMB44,775 and RMB303,667, respectively. (v) Cash held as collateral for short-term borrowings of a subsidiary of the Group. As of December 31, 2017 and 2018, the restricted cash held as collateral amounted to RMB nil and RMB26,000, respectively. (vi) Cash held in escrow accounts that is jointly managed by the Company and institutional funding partners. As of December 31, 2017 and 2018, the restricted cash managed by the Company and institutional funding partners amounted to RMB nil and RMB10,436, respectively. (j) Short-term Investments Short-term investments mainly consist of investments in wealth management products and investments in time deposits placed with banks with original maturities between three months and one year. The wealth management products are certain deposits with variable interest rates or principal not guaranteed with certain financial institutions. Realized and unrealized gain related to the short-term investments is recorded as other income in the consolidated statements of comprehensive income. RMB21,264, RMB35,516 and RMB96,061 was recognized for the year ended December 31, 2016, 2017 and 2018, respectively. (k) Accounts receivable, contract assets and allowance for doubtful accounts Accounts receivable is related to the facilitation and post-facilitation service in relation to loans facilitated by the Group. Contract assets represent the Group’s right to consideration in exchange for facilitation services that the Company has transferred to the customer before payment is due. The Group only recognizes accounts receivable and contract assets to the extent that the Group believes it is probable that it will collect substantially all of the consideration to which it will be entitled to in exchange for the services transferred to the customer. Accounts receivable and contract assets is stated at the historical carrying amount net of write-offs and allowance for doubtful accounts. The Group establishes an allowance for doubtful accounts based on estimates, historical default experience and other factors surrounding the credit risk of borrowers. The Group evaluates and adjusts its allowance for accounts receivable and contract assets on a quarterly basis or more often as necessary. Accounts receivable and contract assets is written off when a settlement is reached for an amount that is less than the outstanding historical balance or when the Group has determined the balance will not be collected. (l) Investments Prior to January 1, 2018, the Group’s investments include equity method investments, cost method investments and available-for-sale The Group applies equity method in accounting for its investments in entities in which the Group has the ability to exercise significant influence but does not have control and the investments are in either common stock or in-substance For equity investments that are not considered as debt securities or equity securities that have readily determinable fair values and over which the Group has neither significant influence nor control through investments in common stock or in-substance The Group has classified its investments in debt securities and equity securities with readily determinable fair value as available-for-sale The Group monitors its investments for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, the operating performance of the companies including current earnings trends and other company-specific information. On January 1, 2018, the Group adopted ASU 2016-01 non-marketable Non-marketable non-marketable The table below sets forth the investments the Group holds as of December 31, 2017 and 2018 respectively. As of December 31, 2017 2018 Equity method investments 6,000 81,000 Cost method investments 2,857 — Available-for-sale 3,377 — Non-marketable — 86,501 12,234 167,501 Equity method investments For the years ended December 31, 2017 and 2018, the Company completed the following investments which were accounted for as equity method investments: In October 2018, the Company made some investments in two third party private equity with the cash consideration of RMB50,000 and RMB20,000 respectively. The Company accounted for these investments under equity methods. As of December 31, 2018, the carrying value of these investments were RMB70,000 as the earnings of these two private funds were immaterial after the Group made its investments. As of December 31, 2017 and 2018, the carrying value of the rest of equity investments were RMB6,000 and RMB11,000. Equity securities without readily determinable fair values For the years ended December 31, 2018, the Company completed the following major investments which were accounted for as non-marketable In September 2018, the Group acquired approximately 2.08% preferred share capital of Beijing Quantum Protection Technology Co., Ltd. (“Beijing Quantum”) for a cash consideration of RMB10,000 and accounted for it as non-marketable start-up In October 2018, the Group acquired approximately 5% preferred share capital of Shanghai Yi Yang automobile service Co., Ltd. (“Yi Yang”) for a cash consideration of RMB30,000 and accounted for it as non-marketable start-up In October 2018, the Group acquired approximately 2% preferred share capital of CDD Holding Limited (“CDD”) for a cash consideration of USD2,000 and accounted for it as non-marketable start-up In October 2018, the Group acquired approximately 3.99% preferred share capital of EMI Agriculture Technology Inc (“EMI”) for a cash consideration of USD2,000 and accounted for it as non-marketable start-up As of December 31, 2018, the carrying value of the rest of non-marketable (m) Fair value measurement 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. The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs that may be used to measure fair value include: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Observable, market-based inputs, other than quoted prices, in active markets for identical assets or liabilities. Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. The Group does not have any non-financial The Group’s financial instruments consist principally of cash and cash equivalents, restricted cash, short-term investments, quality assurance receivable, loans receivable, accounts receivable, contract assets, financial guarantee derivative, payable to platform customers, quality assurance payable, short-term borrowings and other liabilities. As of December 31, 2017 and 2018, the carrying values of cash and cash equivalents, restricted cash, short-term investments, accounts receivable, payable to platform customers, short-term borrowings and other liabilities approximated their fair values reported in the consolidated balance sheets due to the short term maturities of these instruments. The quality assurance receivable is measured using the contractual amounts due from borrowers, taking into account an expected rate of default. Due to the short term nature of the contributions, no discount factor was applied. Subsequently, the carrying value approximates fair value due to the short term nature of the receivable. The quality assurance payable is measured by taking into account the expected payout rate and incorporating a markup margin. On a recurring basis, the Group measures its short-term investments, financial guarantee derivative and contract assets at fair value. Since the contract assets net derivative asset does not have quoted price in active markets, they are valued using valuation model. Management is responsible for determining the fair value. The following table sets forth the Group’s assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy: December 31, 2017 Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Fair value RMB RMB RMB RMB Assets Short-term investments —wealth management products — 1,958,910 — 1,958,910 Investments —available-for-sale — — 3,377 3,377 Total Assets — 1,958,910 3,377 1,962,287 Financial guarantee derivative liabilities — — 215,770 215,770 Total Liabilities — — 215,770 215,770 December 31, 2018 Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Fair value RMB RMB RMB RMB Assets Short-term investments —wealth management products — 1,694,660 — 1,694,660 Investments —non-marketable — — 86,501 86,501 Financial guarantee derivative assets — — 56,287 56,287 Total Assets — 1,694,660 142,788 1,837,448 The Group values its wealth management products held in certain bank accounts and some of its non-marketable The Company did not transfer any assets or liabilities in or out of level 3 during the years ended December 31, 2017 and 2018. Changes in fair value measurement categorized within Level 3 of the fair value hierarchy are analyzed each period for changes in estimates or assumptions. Level 3 Valuation Techniques Level 3 financial assets and liabilities consist of financial guarantee derivatives, available-for-sale securities and non-marketable The fair value of available-for-sale Non-marketable non-marketable start-up non-marketable The Group uses the discounted cash flow model to value financial guarantee derivatives at inception and subsequent valuation dates. The Group analyzes the fair value of this derivative by first defining the cash flows associated with the derivative and then considers the assumptions used in determining the cash flows from a market participant’s perspective. This discounted cash flow model incorporates assumptions such as the expected default rates, discount rates, as well as early repayment rates. The expected default rate is determined based on the historical performance of loans with similar tenure and of similar credit worthiness and adjusted by the inputs that other market participants would use. Aside from the expected default rate, the Group has also considered the discount rate and early repayment rate in determining the fair value of the financial guarantee derivatives. As the term of the loans are short and the market interest rate is relatively stable, the discount rate and early repayment rate assumptions does not have a significant impact on the fair value of the derivative. Changes in the fair value are recorded in fair value change of financial guarantee derivatives in the Group’s consolidated statements of Comprehensive Income (Loss). The following table sets forth the significant unobservable inputs used for fair value measurement of financial guarantee derivatives: As of December 31, 2017 2018 Expected default rate 0.68% - 14.21 % 0.46% - 12.37 % Please refer to Note 2(u) for the movement and gain of financial guarantee contracts and related derivatives. (n) Loans receivable, net Loans receivable represents loan originated by the Group and the consolidated trusts (Note 4), which is due from the borrowers. The Group has the intent and the ability to hold such loans for the foreseeable future or until maturity or payoff. Loans receivable are recorded at unpaid principal balances, net of allowance for loan losses that reflects the Company’s best estimate of the amounts that will not be collected. The loans receivable portfolio consists of personal loans with the term period ranging from 1 month to 36 months. The allowance for loan losses is determined at a level believed to be reasonable to absorb probable losses inherent in the portfolio as of each balance sheet date. The allowance is provided based on an assessment performed on a portfolio basis. All loans are assessed collectively depending on factors such as delinquency rate, size, and other risk characteristics of the portfolio. The Group writes-off (o) Interest income and interest expense related to the loans originated by the Group The Group has originated and held loans. The majority of the loans originated and held by the Group in 2016 were held by Shanghai Hepai Investment Management Co., Ltd (“Hepai”). Hepai was a subsidiary of Beijing Paipairongxin until it was disposed of on September 30, 2016. Prior to its disposition, Hepai sold alternative investment products that paid investors expected rate of return for a specified period of time. Hepai used the funds received from the sale of the alternative investment products to originate loans from the Group’s online consumer marketplace. Cash receipts from loan repayment were used to pay the alternative investment products liability at maturity. Subsequently, the Group, through consolidated trust plans (See Note 4), WOFEs and consolidated subsidiaries of VIEs, originate and hold loans. Interest on loans receivable is accrued based on the contractual interest rates of the loan as earned. Accrual of interest is generally discontinued when reasonable doubt exists as to the full, timely collection of interest or principal. When a loan is discontinued from interest accrual, the Group stops accruing interest and reverses all accrued but unpaid interest as of such date. As the primary beneficiary of the trusts, the Group incorporated the trust plans and recorded return of the other trust parties into interest expense. The interest expense is accrued based on the expected rate of return during the contractual term of the alternative investment products and the trusts. The interest income, interest expense, and loan provision losses in the consolidated statement of comprehensive income (loss) related to the loans originated by the Group recorded for the years ended December 31, 2016, 2017 and 2018 are as follows: For the Years Ended December 31, 2016 2017 2018 RMB RMB RMB Interest income 59,980 46,975 316,193 Less: Interest expe |
Significant equity transactions
Significant equity transactions and acquisitions | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Significant equity transactions and acquisitions | 3. Significant equity transactions and acquisitions (a) Initial public offering On November 10, 2017, the Company completed its initial public offering on the New York Stock Exchange under the symbol “PPDF”. The Company offered 17,000,000 American Depositary Shares (“ADS”). Each ADS represents five ordinary share and was sold to the public at US$13.00 per ADS. Also, the Company offered 3,846,154 ADS through concurrent private placement at US$13.00 per ADS. Net proceeds raised by the Company from the initial public offering and private placement in total amounted to approximately US$253.0 million after deducting underwriting discounts and commissions and other offering expenses. Immediately prior to the completion of the initial public offering, all classes of preferred shares of the Company were converted and redesignated as Class A ordinary shares on a one-for-one SPC-Star In respect of all matters subject to shareholders’ vote, each holder of Class A ordinary share is entitled to one and each holder of Class B ordinary share is entitled to twenty votes. Class B ordinary share is convertible into one Class A ordinary share at any time by the holder thereof. Class A ordinary shares are not convertible into Class B ordinary shares under any circumstances. Upon any sale, transfer, assignment or disposition of any Class B ordinary share by the shareholder to any person who is not an affiliate of such shareholder, or upon a change of ultimate beneficial ownership of any Class B ordinary share to any person who is not an affiliate of the registered shareholder of such share, such Class B ordinary shares shall be automatically and immediately converted into the equivalent number of Class A ordinary shares. (b) Acquisition of HB micro lending company On August 31, 2017, the Group, through one of its subsidiaries, entered into a share purchase agreement to purchase 32% of the common shares of HB micro lending company (“HB”) on National Equities Exchange and Quotations an equity exchange market in China for a total cash consideration of RMB48.2 million. Further in October, the Group, through another subsidiary, entered into an equity pledge agreement with HB and paid cash consideration of RMB42.0 million to acquire 28% of its restricted common shares. As of December 31, 2017, the Group was able to control 60% of the voting rights of HB and has majority seats on the board of directors thus controlling HB. In accordance with ASC Topic 805, the acquisition of HB had been accounted for as a business combination and the results of operations of HB from the acquisition date, i.e. October 31, 2017, have been included in the Group’s consolidated financial statements. The Group made estimates and judgments in determining the fair value of acquired assets and liabilities, based on an independent valuation report and management’s experiences with similar assets and liabilities. The allocation of the purchase price is as follows: As of acquisition date Amortization years RMB Identifiable assets acquired Identifiable intangible asset 63,760 Indefinite Cash 50,068 Other asset 2,337 Identifiable liabilities assumed Deferred tax liability (15,940 ) Other liability (393 ) Goodwill 50,411 Non-controlling (60,097 ) Total purchase price 90,146 |
Loans receivable, net
Loans receivable, net | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Loans receivable, net | 4. Loans receivable, net Loans receivable originated and retained by the Group consist of the following: As of December 31, 2017 2018 RMB RMB Loans 729,464 2,571,527 Allowance for loan losses (47,670 ) (240,419 ) Loans receivable, net 681,794 2,331,108 The whole loans receivable balance represents the outstanding loans made to the borrowers from consolidated trusts and loans held by Shanghai Guangjian and HB, subsidiaries of the Group, as of December 31, 2018. As part of the Group’s efforts to develop new product offerings for institutional funding partners, the Group has established a series of trusts administrated by third-party trust companies. These trusts invest solely in loans on the Company’s platform to provide returns to the beneficiaries. Since the trusts only invest in loans suggested by the Company, the Company has power to direct the activities of the trusts. Also, the Company is either the sole beneficiary of some trusts or has the obligation to absorb losses or the right to receive benefits from some trusts that could potentially be significant to these trusts. As a result, the Company is considered the primary beneficiary of the trusts and their assets, liabilities, results of operations and cash flows are consolidated accordingly. The following table sets forth the activity in the allowance for loan losses for the years ended December 31, 2016, 2017 and 2018. For the Years Ended December 31, 2016 2017 2018 RMB RMB RMB Beginning balance 5,912 1,084 47,670 Current period provision 44,178 65,299 204,442 Current period reversal (9,473 ) (18,713 ) (11,693 ) Release upon derecognition of loans receivable associated with a disposed subsidiary (23,250 ) — — Release upon disposal of loans receivable (16,283 ) — — Ending balance 1,084 47,670 240,419 The following table sets forth the aging of loans as of December 31, 2017 and December 31, 2018: 1-89 days past due 90 days or Total past due Current Total loans December 31, 2017 31,308 8,381 39,689 689,775 729,464 December 31, 2018 59,685 191,990 251,675 2,319,852 2,571,527 The allowance for loan losses is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management performs a quarterly evaluation of the adequacy of the allowance. The allowance is based on the Group’s past loan loss history, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, composition of the loan portfolio, current economic conditions and other relevant factors. The allowance is calculated at portfolio-level since the loans portfolio is typically of smaller balance homogenous loans and is collectively evaluated for impairment. In estimating the probable loss of the loan portfolio, the Group also considers qualitative factors such as current economic conditions and or events in specific industries and geographical areas, including unemployment levels, trends in real estate values, peer comparisons, and other pertinent factors such as regulatory guidance. The following table sets forth the total assets, liabilities, results of operations and cash flows of the above trusts, which are included in the Group’s consolidated financial statements. As of December 31, 2017 2018 RMB RMB Restricted cash 44,775 303,667 Accounts receivable 10,000 — Loans receivable 647,793 2,507,878 Total assets 702,568 2,811,545 Funds payable to investors of consolidated trusts 736,963 2,808,506 Taxes payable — 3,039 Accrued expenses and other liabilities 10,000 — Total liabilities 746,963 2,811,545 For the Years Ended December 31, 2016 2017 2018 RMB RMB RMB Net revenue (673 ) (28,372 ) (164,082 ) Net loss (743 ) (44,396 ) — Net cash provided by (used in) operating activities 972 (16,024 ) (18,008 ) Net cash used in investing activities (29,289 ) (615,971 ) (1,624,784 ) Net cash provided by financing activities 29,433 675,654 1,901,684 Net increase in cash, cash equivalents and restricted cash 1,116 43,659 258,892 Cash, cash equivalents and restricted cash at beginning of year — 1,116 44,775 Cash, cash equivalents and restricted cash at end of period 1,116 44,775 303,667 |
Prepaid expenses and other asse
Prepaid expenses and other assets | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid expenses and other assets | 5. Prepaid expenses and other assets Receivables, prepayments and other assets consist of the following: As of December 31, 2017 2018 RMB RMB Prepaid rental and deposits 109,327 152,974 Prepaid online marketing expenses 13,496 25,975 Advances 13,229 19,517 Interest receivables 2,045 1,947 Others 7,602 21,380 145,699 221,793 |
Property, equipment and softwar
Property, equipment and software, net | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, equipment and software, net | 6. Property, equipment and software, net Property, equipment and software, net consist of the following: As of December 31, 2017 2018 RMB RMB Computer and electronic equipment 81,059 126,842 Office furniture and equipment 12,498 13,843 Leasehold improvement 45,268 55,575 Software 7,588 28,069 Total 146,413 224,329 Less: Accumulated depreciation and amortization (1) (38,165 ) (80,327 ) Property, equipment and software, net 108,248 144,002 (1) Depreciation and amortization expenses for the years ended December 31, 2016, 2017 and 2018 was RMB12,086, RMB22,555 and RMB42,162, respectively. |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets | 7. Intangible assets Intangible assets consist of the following: As of December 31, 2017 2018 RMB RMB Financing guarantee License* — 4,600 Factoring License* — 265 Financial Leasing License* — 255 Micro-Lending License 63,760 63,760 Total 63,760 68,880 Less: Accumulated amortization and impairment — — Intangible assets 63,760 68,880 * The Group acquired Shenzhen Rongze Commerecial Co., Ltd, Zhongyu Financial Leasing and Zhongyisheng Financing Guarantee Co., Ltd in 2018. The acquisitions met the “single or similar asset threshold” and are not considered as business combination in accordance with ASC Topic 805. |
Accounts receivable and contrac
Accounts receivable and contract assets | 12 Months Ended |
Dec. 31, 2018 | |
Text Block [Abstract] | |
Accounts receivable and contract assets | 8. Accounts receivable and contract assets The following table presents the accounts receivable as of December 31, 2017 and 2018: As of December 31, 2017 2018 RMB RMB Accounts receivable 17,773 935,195 Allowance for doubtful accounts — (123,153 ) Accounts receivable, net 17,773 812,042 The following table presents the aging of past-due 1-89 days past due 90 days or Total Current December 31, 2017 — — 17,773 17,773 December 31, 2018 42,965 102,100 935,195 790,130 The following table presents the movement of provision for accounts receivable as of December 31, 2017 and 2018 respectively: For the Years Ended December 31, 2017 2018 RMB RMB Beginning balance — — Impact due to adoption of new revenue standard — 16,501 Current period accrual — 106,652 Ending balance — 123,153 The following table presents the contract assets as of December 31, 2017 and 2018: As of December 31, 2017 2018 RMB RMB Investment management fee for investment programs — 110,321 Contract acquisition cost — 1,782 — 112,103 The following table presents the movement of contract assets for the years ended December 31, 2017 and 2018: For the Years Ended December 31, 2017 2018 RMB RMB Beginning balance — — Impact due to adoption of new revenue standard 53,084 Recognition of investment management fee — 208,471 Recognition of contract acquisition cost 4,186 Settlement upon maturity of investment programs — (146,483 ) Settlement upon fulfilment of contract (7,155 ) Ending balance — 112,103 |
Employee benefits
Employee benefits | 12 Months Ended |
Dec. 31, 2018 | |
Postemployment Benefits [Abstract] | |
Employee benefits | 9. Employee benefits The full time employees of the Group are entitled to staff welfare benefits, including medical insurance, basic pensions, unemployment insurance, work injury insurance, maternity insurance and housing funds. The Group is required to accrue for these benefits based on certain percentages of the employees’ salaries in accordance with the relevant regulations and to make contribution to the state-sponsored pension and medical plans. The total amounts charged to the consolidated statements of comprehensive income (loss) for such employee benefits amounted to approximately RMB64,334, RMB128,554 and RMB143,078 for the years ended December 31, 2016, 2017 and 2018, respectively. |
Accrued expenses and other liab
Accrued expenses and other liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accrued expenses and other liabilities | 10. Accrued expenses and other liabilities Accrued expenses and other liabilities consist of the following: As of December 31 2017 2018 RMB RMB Accrued marketing expense 105,544 113,568 Accrued payment channel surcharges 26,053 25,728 Accrued professional service fee 21,333 31,446 Accrued technical services expense 16,854 16,510 Management fee payable to trust administrator 10,000 — Payable for purchase of property, equipment and software 6,585 917 Others 25,245 34,350 211,614 222,519 |
Related party balances and tran
Related party balances and transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related party balances and transactions | 11. Related party balances and transactions Transaction with PPcredit Amounts incurred by the Group For the Years ended December 31, 2016 2017 2018 RMB RMB RMB Data collection service expense (i) . 38,297 84,362 109,666 (i) PPcredit Data Service (Shanghai) Co., Ltd. (“PPcredit”) was founded in April 2016 by the founders of the Group to provide data collection services. The Group mainly uses PPcredit as a data provider since PPcredit was established. The price for the service is determined based on the price charged by other market participants. Expenses paid on behalf of related party, for which the Group was reimbursed For the Years Ended December 31, 2016 2017 2018 RMB RMB RMB PPcredit 13,526 — — Amounts due to related party As of December 31, 2017 2018 RMB RMB PPcredit 11,972 — Amounts due from related party As of December 31, 2017 2018 RMB RMB PPcredit — 2,830 In April 2016, the Group entered into a loan agreement with PPcredit, pursuant to which the Group provided a general purpose loan of RMB6 million to PPcredit, which bears no interest with a term of one year. In November 2016, another loan agreement of RMB5 million was signed between the Group and PPcredit, also with no interest in a term of one year. The Group entered into a contract with PPcredit in January 2017 that the RMB11 million loan extended to PPcredit during 2016 was offset with the payable due to PPcredit. The Group entered into a service contract with PPcredit of providing HR and accounting service amount to 3,286 in 2018 among which 1,000 was outstanding as of December 31, 2018. The remaining balance of due from related party is related to prepayment data collection service fee amount to 1,830. |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Taxation | 12. Taxation Cayman Islands Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain. Additionally, upon payments of dividends to the shareholders, no Cayman Islands withholding tax will be imposed. Hong Kong Hong Kong profits tax rate is 16.5% for the years ended December 31, 2016 and 2017. No Hong Kong profits tax was provided for as there was no estimated assessable profits tax during the relevant periods. The PRC On March 16, 2007, the National People’s Congress of the PRC enacted an Enterprise Income Tax Law (“EIT Law”), under which Foreign Investment Enterprises (“FIEs”) and domestic companies would be subject to EIT at a uniform rate of 25%. The EIT law became effective on January 1, 2008. On April 14, 2008, relevant governmental regulatory authorities released qualification criteria, application procedures and assessment processes for “high and new technology enterprises” (“HNTE”), which will be entitled to a favorable statutory tax rate of 15%. An enterprise’s qualification as a HNTE is reassessed by the relevant PRC governmental authorities every three years. In November 2013, the local governments announced that a subsidiary of the Group was qualified as HNTE and was subject to a preferential statutory tax rate of 15% for 2013, 2014 and 2015. In 2016, the subsidiary re-applied The EIT Law also provides that an enterprise established under the laws of a foreign country or region but whose “de facto management body” is located in the PRC be treated as a resident enterprise for PRC tax purposes and consequently be subject to the PRC income tax at the rate of 25% for its global income. The Implementing Rules of the EIT Law merely define the location of the “de facto management body” as “the place where the exercising, in substance, of the overall management and control of the production and business operation, personnel, accounting, properties, etc., of a non-PRC The EIT Law also imposes a withholding income tax of 10% on dividends distributed by a FIE to its immediate holding company outside of China, if such immediate holding company is considered as a non-resident re-invested Composition of income tax expenses The current and deferred portions of income tax expenses included in the consolidated statements of comprehensive income (loss) during the years ended December 31, 2016, 2017 and 2018 are as follows: For the Years Ended December 31, 2016 2017 2018 RMB RMB RMB Current income tax expenses 65,106 371,354 94,787 Deferred income tax benefit (expense) (16,839 ) (96,643 ) 56,419 Total 48,267 274,711 151,206 Reconciliation of the differences between statutory tax rate and the effective tax rate The Group did not identify significant unrecognized tax benefits for the years ended December 31, 2016, 2017 and 2018 and does not anticipate any significant change in unrecognized tax benefits within 12 months from December 31, 2018. Aggregate undistributed earnings of the Company’s subsidiaries and VIE located in the PRC that are available for distribution at December 31, 2018 are considered to be indefinitely reinvested and accordingly, no provision has been made for the Chinese dividend withholding taxes that would be payable upon the distribution of those amounts to any entity within the Group that is outside the PRC. The following table sets forth reconciliation between the computed expected tax expenses (benefit) rate and the effective income tax rate: For the Years Ended December 31, 2016 2017 2018 RMB RMB RMB Statutory tax rate 25 % 25 % 25 % Research and development tax credit (2 )% (2 )% (2 )% Effect of tax holiday* (5 )% (6 )% (19 )% Change in valuation allowance (9 )% — — Undeductable expenses — 2 % 2 % Others — 1 % — Effective income tax rate 9 % 20 % 6 % * Although the subsidiary approved the Software Enterprise Status is entitled to enjoy full exemption from EIT for two years from 2017, it is also subject to the annual tax inspection which was finally settled in 2018. As a result, the Group reversed a total of RMB268,051 tax expenses in the fourth quarter of 2018 including RMB136,424 related to the tax expenses of 2017 and RMB131,627 related to the tax expenses for first three quarters of 2018, which were recorded as tax payable in the balance sheet. The aggregate amount and per share effect of the tax holidays are as follows For the Years Ended December 31, 2016 2017 2018 RMB RMB RMB Tax holiday effect 30,012 153,908 460,333 Net income per share effect - Basic 4.51 0.20 0.31 - Diluted 4.51 0.20 0.29 Deferred tax assets The following table sets forth the significant components of the deferred tax assets: As of December 31, 2017 2018 RMB RMB Deferred tax assets: Contract liabilities — 63,733 Allowance for doubtful accounts and loan provision 819 52,207 Net accumulated losses-carry forward 18,530 38,851 Payroll and welfare payable and other temporary difference 5,988 5,988 Deferred revenue 38,436 — Quality assurance payable 35,947 2,127 Accounts receivable 34,030 — Investor reserve fund 16,149 — Less: valuation allowance (21,538 ) (40,143 ) Total deferred tax assets 128,361 122,763 Deferred tax liabilities: Intangible assets arisen from business combination (15,940 ) (15,940 ) Contract assets — (16,815 ) Investor reserve funds — (23,287 ) Quality assurance payable — (41,799 ) Change in fair value for short-term investment — (2,223 ) Total deferred tax liabilities (15,940 ) (100,064 ) Net deferred tax assets 112,421 22,699 Movement of valuation allowances For the Years Ended December 31, 2016 2017 2018 RMB RMB RMB At beginning of year 49,877 2,906 21,538 Current year additions 1,037 18,688 22,585 Current year reversals (48,008 ) (56 ) (3,980 ) At end of year 2,906 21,538 40,143 Valuation allowances have been provided on deferred tax assets due to the uncertainty surrounding their realization. As of December 31, 2017 and 2018, valuation allowances on deferred tax assets mainly arising from tax loss carry forwards were provided because it was more likely than not that the Group will not be able to utilize tax loss carry forwards and certain deductible expenses generated by certain unprofitable subsidiaries. As of December 31, 2018, total tax loss carry forwards of the Company’s subsidiaries in the PRC of approximately RMB156,508, will expire if not used between 2019 and 2023. The applicable carry-forward limitation period is 5 years under the PRC EIT law. Uncertain tax positions The Group evaluates the level of authority for each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. As of December 31, 2017 and 2018, the Group did not have any significant unrecognized uncertain tax positions. |
Disposal of subsidiary
Disposal of subsidiary | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal of subsidiary | 13. Disposal of subsidiary As a subsidiary of the Company, Shanghai Hepai Investment Management Co., Ltd. (“Hepai”) sourced funds from investors who were investing in alternative investment product and used these funds to originate loans on the PPDAI platform. The funds received from the investors were recorded as funds payable to investors within Accrued expenses and other liabilities. The interest due to investors or the alternative investment product was accrued based on the expected rate of return using the effective interest rate method. Interest due to investors on the alternative investment product, interest earned or the loans receivable from borrowers and the loan provision losses are recorded in net interest income (expense) and loan provision losses in the consolidated statement of comprehensive income (loss). On September 30, 2016, the following transactions were completed pursuant to a share purchase agreement among Beijing Paipairongxin and third parties. Beijing Paipairongxin transferred 100% ownership interest in Hepai to the third parties in return for consideration of RMB20,000 in the form of a note. As a result of the Group’s loss of control over Hepai on September 30, 2016, the Group derecognized the assets and liabilities and recorded a gain of RMB20,611 on the disposal, which is the difference between the consideration of RMB20,000 and the carrying value of the subsidiary, net liability of RMB611. The Group has received the first instalment of RMB14,000 in December 2016 and the remaining RMB6,000 was received in February, 2017. |
Ordinary shares and treasury st
Ordinary shares and treasury stock | 12 Months Ended |
Dec. 31, 2018 | |
Equity Abstract | |
Ordinary shares and treasury stock | 14. Ordinary shares and treasury stock In June 2012, PPDAI Group Inc. was incorporated as Limited Liability Company with authorized share capital of US$50,000 divided into 5,000,000,000 shares, of which 4,266,159,600 shares are designated as ordinary shares at par value of US$0.00001 and 733,840,400 as preferred shares. Immediately prior to the completion of the initial public offering, the Company adopted a dual class share structure. All classes of preferred shares of the Company were converted and designated as Class A ordinary shares on a one-for-one one-for-one one-for-one On November 10, 2017, the Company successfully completed its initial public offering on the New York Stock Exchange. The Company sold 85,000,000 Class A ordinary shares (equivalent to 17,000,000 ADS) at US$2.6 per share (equivalent to US$13.0 per ADS) for a total offering size of approximately RMB1,464.8 million (US$221.0 million). Concurrently with the initial public offering, the Company also closed a private placement with Sun Kung Kai & Co. (CP) Limited and sold 19,230,769 Class A ordinary shares at an aggregate investment amount of RMB331.4 million (US$50.0 million). In May 2018, unanimously approved by the Board, the Company issued 30,000,000 Class A Ordinary Shares to Citi Limited which converted into 6,000,000 ADSs for exercise of share-based compensation plans. During the year ended December 31, 2018, the Company also had repurchased 12,061,272 ADS, or 60,306,360 shares, for US$67,622(RMB452,262) on the open market at a weighted average price of US$5.61 per ADS for exercise of share based compensation. These issued and repurchased shares are considered not outstanding and therefore were accounted for under the cost method and includes such treasury stock as a component of the shareholder’s equity. As of December 31, 2018, a total of 44,005,360 treasury stock were used for exercise of option with 46,301,000 shares not in use and not outstanding. On December 17, 2018, Maggie & Tony Limited sold 2,000,000 Class B ordinary shares, or 400,000 ADS, on the open market which were automatically transferred into Class A ordinary shares upon completion of the transaction. As of December 31, 2018, 1,533,071,169 ordinary shares have been issued at par value of US$0.00001, including (i) 874,071,169 Class A ordinary shares and (ii) 659,000,000 Class B ordinary shares. |
Redeemable convertible preferre
Redeemable convertible preferred shares | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Redeemable convertible preferred shares | 15. Redeemable convertible preferred shares On September 13, 2012, the Company issued 2,850,000 shares of Series A convertible redeemable preferred shares (the “Series A Shares”) for US$1.60 per share for cash of US$4,560. On February 13, 2014, the Company issued 2,142,857 shares of Series B convertible redeemable preferred shares (the “Series B Shares”) for US$7.00 per share for cash of US$15,000. On February 9, 2015, the Company issued 2,345,547 shares of Series C convertible redeemable preferred shares (the “Series C Shares”) for US$19.90 per share for cash of US$46,667. The Series A, Series B and Series C shares are collectively referred to as the Preferred Shares. On October 20, 2017, the Company effected a share split. Each of ordinary share and preferred share of the Company was subdivided into 100 shares at a par value of US$0.00001, such that Series A Shares, Series B Shares and Series C Shares were divided into 285,000,000 Series A Shares, 214,285,700 Series B Shares and 234,554,700 Series C Shares, respectively. All of the preferred shares were converted to Class B ordinary shares immediately upon the completion of the Company’s initial public offering on November 10, 2017. Prior to their conversion, the preferred shares were entitled to certain preference with respect to conversion, redemption, dividends and liquidation. The Company classified the Preferred Shares in the mezzanine section of the consolidated balance sheets because they were redeemable at the holders’ option any time after a certain date and were contingently redeemable upon the occurrence of certain liquidation events outside of the Company’s control. The Company recognized accretion to the respective redemption value of the Preferred Shares over the period starting from issuance date to the earliest redemption date. The Company recognized accretion of the Preferred Shares amounted to RMB562,022, RMB3,073,471 and RMB nil for the years ended December 31, 2016, 2017 and 2018 respectively. |
Share-based compensation
Share-based compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based compensation | 16. Share-based compensation 1) Share based compensation of PPDAI Group Inc. The Company reserved a stock option pool of 221,917,800 ordinary shares for the issuance of Stock options granted to employees are vested upon satisfaction of service condition, which is generally satisfied over four years. Additionally, employees can only exercise vested options upon the occurrence of initial public offering. Share-based compensation expense is recorded net of estimated forfeitures using graded-vesting method, such that expenses are recorded only for those share-based awards that are expected to ultimately vest. The options granted generally have a contractual term of five years and shall vest evenly in 4 equally installments over 4 years. In October 2017, the company adopted 2017 Share Incentive Plan, or the 2017 plan, which allows the company to offer a variety of share-based incentive awards to employees, officers, directors and individual consultants who render services to the company. The plan permits the grant of three types of awards: options, restricted shares and restricted share units. The maximum number of the shares that may be issued pursuant to all awards under the 2017 Plan is 1,000,000,000 ordinary shares after giving effect to the 100-for-1 Share Options The following table sets forth the stock option shares activities under all the option plans for the years ended December 31, 2017 and 2018 is presented below after share split: Options Weighted Weighted Aggregate US$ US$ Outstanding at December 31, 2015 66,860,000 0.0201 3.66 6,766 Granted 49,170,000 0.1260 — — Forfeited (3,460,000 ) 0.0464 — — Outstanding at December 31, 2016 112,570,000 0.0650 3.37 22,688 Granted 26,610,000 0.3020 — — Forfeited (7,538,200 ) 0.0967 — — Outstanding at December 31, 2017 131,641,800 0.1108 2.69 172,618 Granted 12,039,050 0.8942 — — Forfeited (3,722,285 ) 0.1930 — — Expired (300,000 ) 0.0040 — — Exercised (44,005,360 ) 0.0543 — — Outstanding at December 31, 2018 95,653,205 0.2214 2.17 47,689 Vested and expected to vest at December 31, 2018 94,736,802 0.2213 2.17 47,245 Exercisable as of December 31, 2018 42,887,580 0.0919 1.49 26,938 The Company did not recognize the share-based compensation expenses for the options exercisable upon the occurrence of initial public offering. Immediately upon the completion of the Company’s initial public offering, share-based compensation expenses amounting to RMB61,544 were recognized. For the years ended December 31, 2016, 2017 and 2018, total share-based compensation expenses recognized were nil , RMB65,324 and RMB44,490, respectively. As of December 31, 2018, the unrecognized compensation cost was RMB45,044. These amounts are expected to be recognized over a weighted average period of 2.17 years. Total compensation cost may be adjusted for future changes in estimated forfeitures. The aggregate intrinsic value is calculated as the difference between the exercise prices of the options and the per-share The weighted average grant-date per-share The fair value of each option granted under the Company’s Incentive Shares plan was estimated on the date of grant using the binomial model that uses the assumption noted in the following table: Options Granted Options Granted Options Granted RMB RMB RMB Risk-free interest rate 1.27%~1.35% 1.97%~2.04% 2.52%-2.75% Expected life (in years) 5 5 5 Expected dividend yield 0% 0% 0% Expected volatility 43.3%~44.0% 39.0%~41.9% 37.74%-38.74% Exercise multiple 2.8 2.8 2.2-2.8 RSUs The following table summarized the Company’s RSUs activities under all incentive plans (in US$, except shares): Number of RSUs Weighted- average US$ Restricted shares — — Unvested at December 31, 2017 — — Granted 7,822,280 1.4375 Vested — — Forfeited (270,800 ) 1.3233 Unvested at December 31, 2018 7,551,480 1.4416 Total share-based compensation cost for the RSUs amounted to RMB nil, nil and RMB 5,829 for the years ended December 31, 2016, 2017 and 2018, respectively. As of December 31, 2018, there was RMB 63.4 million unrecognized compensation cost, net of estimated forfeitures, related to unvested restricted shares, which are to be recognized over a weighted average vesting period of 4.4 years. Total unrecognized compensation cost may be adjusted for future changes in estimated forfeitures. The Company determined the fair value of RSUs based on its stock price on the date of grant. 2) Share based compensation of Shanghai Paifenle Internet Technology Co., Ltd. (“Paifenle”) In April, 2017, the Group authorized a share based compensation plan (the “Paifenle Plan”) that provides for the issuance of up to 15,000,000 ordinary shares of its subsidiary, Paifenle. Under the Paifenle Plan, the administrator of the plan may, at their discretion grant any officers and employees of Paifenle (i) up to 11,650,000 units of options to subscribe for ordinary shares and (ii) up to 3,350,000 units RSUs. In December, 2017, the Board of Directors decided to cancel the Paifenle Plan since Paifenle has discontinued most of its operations. The share-based compensation expenses for the remaining periods were recognized immediately to the current period totaling at RMB40,828. |
Net income (loss) per share
Net income (loss) per share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net income (loss) per share | 17. Net income (loss) per share Basic earnings per share is computed using the weighted average number of the ordinary shares outstanding during the period. Diluted earnings per share (‘‘EPS’’) is computed using the weighted average number of ordinary shares and potential ordinary shares outstanding during the period under the treasury stock method. For the years ended December 31, 2016 and 2017, stock options to purchase ordinary shares and restricted share units that were anti-dilutive and excluded from the calculation of diluted net loss per share of the Company were nil, 11,302,024 on a weighted average basis, respectively. For the years ended December 31, 2016 and 2017, the Series A, Series B and Series C Preference Shares convertible into ordinary shares that were anti-dilutive and excluded from the calculation of diluted net loss per share of the Company were 733,840,400 and 631,303,796 on a weighted average basis, respectively. Basic earnings (loss) per share and diluted earnings (loss) per share have been calculated in accordance with ASC Topic 260 on computation of earnings per share for the years ended December 31, 2016, 2017 and 2018 as follows: For the years ended December 31, 2016 2017 2018 RMB RMB RMB Numerator: Net profit attributable to PPDAI Group Inc. 501,490 1,082,983 2,469,074 Accretion on Series A convertible redeemable preferred shares redemption value (236,662 ) (1,237,274 ) — Accretion on Series B convertible redeemable preferred shares redemption value (171,106 ) (905,861 ) — Accretion on Series C convertible redeemable preferred shares redemption value (154,254 ) (930,336 ) — Net income (loss) attributable to ordinary shareholders-Basic and diluted (60,532 ) (1,990,488 ) 2,469,074 Denominator: Denominator for basic and diluted loss per share Weighted-average ordinary shares outstanding Basic 665,000,000 779,804,270 1,498,780,165 Diluted 665,000,000 779,804,270 1,599,592,231 Net income (loss) per share - Basic (0.0910 ) (2.5525 ) 1.6474 Net income (loss) per share - Diluted (0.0910 ) (2.5525 ) 1.5436 Net income (loss) per ADS - Basic (0.4551 ) (12.7627 ) 8.2369 Net income (loss) per ADS - Diluted (0.4551 ) (12.7627 ) 7.7178 |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | 18. Commitments and contingencies (a) Operating lease The Company and its subsidiaries have entered into non-cancellable non-cancellable As of December 31, 2018 RMB 2019 58,406 2020 45,077 2021 40,221 2022 14,826 Thereafter 640 Total 159,170 The Group recorded rental expense of RMB18,923, RMB41,951 and RMB62,143 in the consolidated statement of comprehensive income (loss) during the years ended December 31, 2016, 2017 and 2018, respectively. (b) Capital and other commitments The Group did not have capital and other significant commitments, long-term obligations, or guarantees as of December 31, 2017 and December 31, 2018. (c) Contingencies From time to time, the Group is involved in claims and legal proceedings that arise in the ordinary course of business. Based on currently available information, management does not believe that the ultimate outcome of these unresolved matters, individually and in the aggregate, is likely to have a material adverse effect on the Group’s financial position, results of operations or cash flows. However, litigation is subject to inherent uncertainties and the Group’s view of these matters may change in the future. If an unfavorable outcome were to occur, there exists the possibility of a material adverse impact on the Group’s financial position, results of operations and cash flows for the periods in which the unfavorable outcome occurs. The Group accounts for loss contingencies in accordance with ASC Topic 450 “Contingencies” and other related guidance. Set forth below is a description of certain loss contingencies as well as the opinion of management as to the likelihood of loss. Current PRC laws and regulations include limitations on foreign ownership in PRC companies that conduct online business. Specifically, foreign investors are not allowed to own any equity interests in any entity conducting online business. Since the Company is incorporated in the Cayman Islands, neither the Company nor its PRC subsidiary is eligible to conduct online business in China. To comply with PRC laws and regulations, the Company conducts its operations in China through a series of contractual arrangements entered into among its wholly owned PRC subsidiaries, the WOFEs, its affiliated PRC entities, the VIEs and the VIEs’ shareholders. i) VIE Arrangements The VIEs and their subsidiaries hold the licenses that are essential to the operation of the Group’s business. In the opinion of management and the Company’s PRC legal counsel, (i) the ownership structure of the Company, the WOFE and the VIEs are in compliance with existing PRC laws and regulations;(ii) the contractual arrangements with the VIEs and their shareholders are valid and binding, and will not result in any violation of PRC laws or regulations currently in effect; and (iii) the Group’s business operations are in compliance with existing PRC laws and regulations in all material respects. However, there are substantial uncertainties regarding the interpretation and application of current and future PRC laws and regulations. Accordingly, the Company cannot be assured that PRC regulatory authorities will not ultimately take a contrary view to its opinion. If the current ownership structure of the Company and its contractual arrangements with the VIEs were found to be in violation of any existing or future PRC laws and regulations, the Company may be required to restructure its ownership structure and operations in the PRC to comply with the changing and new PRC laws and regulations. Under PRC Ministry of Commerce (“MOFCOM”) security review rules promulgated in September 2011, a national security review is required for certain mergers and acquisitions by foreign investors raising concerns regarding national defense and security. Foreign investors are prohibited from circumventing the national security review requirements by structuring transactions through proxies, trusts, indirect investment, leases, loans, control through contractual arrangements, or offshore transactions. Management, in conjunction with its PRC legal counsel, has concluded there is no need to submit the existing contractual arrangements with its consolidated VIEs and its shareholders to the MOFCOM for national security review based upon analysis of the rules. However, there are substantial uncertainties regarding the interpretation and application of the MOFCOM security review rules, and any new laws, rules, regulations or detailed implementation measures in any form relating to such rules. Therefore, the Company cannot be assured that the relevant PRC regulatory authorities, such as the MOFCOM, would not ultimately take a contrary view to the opinion of management and the Company’s PRC legal counsel. If the MOFCOM or other PRC regulatory authority determines that the Company needs to submit the existing contractual arrangements with the VIEs and its shareholders for national security review, the Company may face sanctions by the MOFCOM or other PRC regulatory authority, which may include, among others, requiring the Company to restructure its ownership structure, discontinuation or restriction of operations in the PRC, or invalidation of the agreements that the VIEs have entered into with the VIEs and its shareholders. In such case, the Company may not be able to operate or control business in the same manner as it currently does, and therefore, may not be able to consolidate the VIEs and their subsidiaries. In addition, the relevant regulatory authorities would have broad discretion in dealing with such violations which may adversely impact the financial statements, operations and cash flows of the Company (including restrictions on the Company to carry out business). If the VIEs and their respective shareholders fail to perform their respective obligations under the current contractual arrangements, the Company may have to incur substantial costs and expend significant resources to enforce those arrangements and rely on legal remedies under PRC laws. The PRC laws, rules and regulations are relatively new, and because of the limited volume of published decisions and their non-binding In the opinion of management, the likelihood of loss in respect of the Company’s current ownership structure or the contractual arrangements with the VIEs is remote. In accordance with the Interim Measures on Administration of Business Activities of Online Lending Information Intermediaries (Interim Measures) jointly issued by China Banking Regulatory Commission, or the CBRC, together with three other PRC regulatory agencies in August, 2016, a record-filing and licensing regime is introduced. It requires online lending information intermediaries to register with the local financial regulatory authority, update their industrial and commercial registration with the local commercial registration authority to include “online lending information intermediary” in their business scope, and obtain telecommunication business license from the relevant telecommunication regulatory authority. As of the date of this report, the local financial regulatory authorities are still in the process of making detailed implementation rules regarding the filing procedures and the Company has not been permitted to submit such filing application. ii) Class Action Starting in September 2018, the Company and certain of its current and former officers and directors, the underwriters of the Company’s initial public offering in November 2017, and the Company’s agent for the service of process in the U.S. have been named as defendants in putative securities class actions captioned Yizhong Huang v. PPDAI Group Inc., et al. Ravindra Vora v. PPDAI Group Inc., et al. Lai v. PPDAI Group Inc., et al. 1:2018-cv-06716 Goyal v. PPDAI Group Inc., et al. 2:2019-cv-00168 These actions allege that defendants made misstatements and omissions in connection with the Company’s initial public offering in November 2017 in violation of the Securities Act of 1933. The Lai Case also advances claims under the Securities Exchange Act of 1934. On October 16, 2018, the Supreme Court of the State of New York consolidated the two state court lawsuits (the Huang Case and the Vora Case) under the caption In re PPDAI Group Securities Litigation In re PPDAI Group Inc. Securities Litigation 18-cv-6716-FB-JO |
Restricted net assets
Restricted net assets | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Restricted net assets | 19. Restricted net assets Relevant PRC laws and regulations permit PRC companies to pay dividends only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. Additionally, the Company’s PRC subsidiaries can only distribute dividends upon approval of the shareholders after they have met the PRC requirements for appropriation to statutory reserves. The statutory general reserve fund requires annual appropriations of 10% of net after-tax |
Condensed financial information
Condensed financial information of the parent company | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed financial information of the parent company | 20. Condensed financial information of the parent company The Company performed a test on the restricted net assets of consolidated subsidiaries in accordance with Securities and Exchange Commission Regulation S-X 4-08 The subsidiaries did not pay any dividend to the Company for the year presented. For the purpose of presenting parent only financial information, the Company records its investments in its subsidiaries under the equity method of accounting. Such investments are presented on the separate condensed balance sheets of the Company as “Investments in subsidiaries” and the profit (loss) of the subsidiaries is presented as “share of profit (loss) of subsidiaries”. Certain information and footnote disclosures generally included in financial statements prepared in accordance with U.S. GAAP have been condensed and omitted. These statements should be read in conjunction with the notes to the consolidated financial statements of the Company. The Company did not have significant capital and other commitments, long-term obligations, or guarantees as of December 31, 2017 and 2018. As of December 31, 2017 2018 RMB RMB US$ Note2(f) Assets Cash and cash equivalents 934,758 461,054 67,058 Prepaid expenses and other assets 10,350 4,798 698 Investment in and advances to subsidiaries 2,687,270 5,476,363 796,504 Total assets 3,632,378 5,942,215 864,260 Liabilities and Shareholders’ Equity Accrued expenses and other liabilities 10,211 18,333 2,666 Total liabilities 10,211 18,333 2,666 Shareholders’ equity : Class A ordinary shares (US$0.00001 par value; 10,000,000,000 shares authorized as of December 31, 2017 and 2018; 842,071,169 and 874,071,169 issued as of December 31, 2017 and 2018; 842,071,169 and 827,770,169 outstanding as of December 31, 2017 and 2018) 56 58 8 Class B ordinary shares (US$0.00001 par value; 10,000,000,000 shares authorized as of December 31, 2017 and 2018; 661,000,000 and 659,000,000 issued and outstanding as of December 31, 2017 and 2018) 44 44 7 Additional paid-in 5,951,044 5,896,017 857,540 Treasury stock (nil and 46,301,000 shares as of December 31, 2017 and 2018, respectively) — (332,121 ) (48,305 ) Non-controlling — Statutory reserves 55,090 256,006 37,235 Accumulated other comprehensive income 14,917 58,210 8,466 Retained earnings (accumulated deficit) (2,398,984 ) 45,668 6,643 Total shareholders’ equity 3,622,167 5,923,882 861,594 Total liabilities and shareholders’ equity 3,632,378 5,942,215 864,260 Statements of comprehensive loss For the Years Ended December 31, 2016 2017 2018 RMB RMB RMB US$ Operating expenses Sales and marketing expenses — — (2 ) — General and administrative expenses (8,605 ) (71,189 ) (57,448 ) (8,355 ) Profits from operations Other income, net 8 2,515 21,183 3,081 Share of profit of subsidiaries 510,087 1,151,657 2,505,341 364,386 Net profit 501,490 1,082,983 2,469,074 359,112 Accretion on Series A convertible redeemable preferred shares to redemption value (236,662 ) (1,237,274 ) — — Accretion on Series B convertible redeemable preferred shares to redemption value (171,106 ) (905,861 ) — — Accretion on Series C convertible redeemable preferred shares to redemption value (154,254 ) (930,336 ) — — Net profit (loss) attributable to ordinary shareholders (60,532 ) (1,990,488 ) 2,469,074 359,112 Statements of cash flows For the Years Ended December 31, 2016 2017 2018 RMB RMB RMB US$ Note 2(f) Net cash provided by (used in) operating activities 40 (12,178 ) 12,111 1,761 Net cash used in investing activities — (720,259 ) (69,660 ) (10,132 ) Net cash provided by (used in) financing activities — 1,677,222 (438,253 ) (63,741 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash — (13,447 ) 22,098 3,215 Net increase (decrease) in cash, cash equivalents and restricted cash 40 931,338 (473,704 ) (68,897 ) Cash, cash equivalents and restricted cash-beginning of year 3,380 3,420 934,758 135,955 Cash, cash equivalents and restricted cash-end of year 3,420 934,758 461,054 67,058 |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent events | 21. Subsequent events On March 14, 2019, the Board of Directors of the Company unanimously approved a cash dividend of US$ 0.19 per ADS, payable around April 26, 2019 to shareholders of record as of the close of business April 5, 2019. In March 2019, unanimously approved by the Board, the Company issued 17,000,000 Class A Ordinary Shares to Citi Limited which converted into 3,400,000 ADSs for exercise of share-based compensation plans. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of presentation | (a) Basis of presentation The Group’s consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying consolidated financial statements and related disclosures. Actual results may differ from those estimates. |
Principle of consolidation | (b) Principle of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries, which include the WOFEs and consolidated VIEs, for which the Company is the ultimate primary beneficiary. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors. Consolidated VIEs are entities in which the WOFEs through their respective contractual arrangements, bear the risks of, and enjoy the rewards normally associated with, ownership of the entities, and therefore the Company is the primary beneficiary of these entities. All transactions and balances among the Company, its subsidiaries, the VIEs and the VIEs’ subsidiaries have been eliminated upon consolidation. Details of the typical structure of the Company’s significant VIEs are set forth below: i) VIE Agreements that give the Company effective control of VIEs Business Operation Agreement Pursuant to the relevant business operation agreements, the shareholders of the VIEs agree that to the extent permitted by law, they will accept and unconditionally execute the WOFEs’ instructions on business operations, such as appointment of directors and executive officers. They further agree that, without the WOFEs’ prior written consent, the VIEs will not take any action that may have material adverse effects on their assets, businesses, human resources, rights, obligations, or business operations. The shareholders of the VIEs agree to transfer any dividends or other similar income or interests they receive as the shareholders of the VIEs, if any, immediately and unconditionally to the WOFEs. This agreement also requires each of the shareholders of the VIEs to issue an irrevocable power of attorney authorizing the WOFEs or any person(s) designated by the WOFEs to execute shareholders’ rights on behalf of such shareholder. Unless the WOFEs terminate this agreements in advance, the agreement will remain effective until the VIEs are dissolved pursuant to PRC law. Power of Attorney Pursuant to each power of attorney, each shareholder of the VIEs have irrevocably appointed the WOFEs or any persons designated by the WOFEs to act as such shareholder’s attorney-in-fact Exclusive Option Agreement Pursuant to the exclusive option agreements, the Nominee Shareholders of the VIEs granted the WOFEs or any third party designated by the WOFEs the exclusive and irrevocable right to purchase from the Nominee Shareholders, to the extent permitted by PRC law and regulations, all or part of its respective equity interests in the VIEs for a purchase price equal to the registered capital. The Nominee Shareholders will then return the purchase price to the WOFEs or any third party designated by the WOFEs after the option is exercised. The WOFEs may transfer all or part of its option to a third party at its own option. The VIEs and the Nominee Shareholders agree that without prior written consent of the WOFEs, they may not transfer or otherwise dispose the equity interests or declare any dividend. The exclusive option agreement will remain effective until the WOFEs or any third party designated by the WOFEs acquire all equity interest of the VIEs. Equity Pledge Agreement Pursuant to relevant equity pledge agreements, each shareholder of the VIEs has pledged all of his or her equity interest held in the VIEs to the WOFEs to guarantee his or her obligations under the business operation agreement, the power of attorney, exclusive option agreement and the exclusive technology consulting and service agreement. In the event that the VIEs breach any obligations under these agreements, the WOFEs as the pledgee, 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. The Nominee Shareholders may not dispose of the equity interests or create or permit any pledges which may have an adverse effect on the rights or benefits of the WOFEs without the prior written consent of the WOFEs. The relevant share pledge agreements will remain effective until the VIEs and its Nominee Shareholders discharge all of their obligations under the VIE Agreements and the pledgee consents such discharge in writing. ii) VIE Agreement Exclusive technology consulting and service agreement Pursuant to the exclusive technology consulting and service agreements, WOFEs have the exclusive right to provide the VIEs and their subsidiaries (as designated in the agreement) with technical support, consulting services and other services. The WOFEs shall exclusively own any intellectual property arising from the performance of the agreement. During the term of this agreement, the VIEs and their designated subsidiaries may not accept any services covered by this agreement provided by any third party. The VIEs and their designated subsidiaries agree to pay service fees equal to 100% of the net profit generated or otherwise determined by the WOFEs. Except by mutual agreement upon early termination by parties in writing, the exclusive business cooperation agreement will remain effective until the VIEs and their designated subsidiaries are dissolved in accordance with PRC law and regulation. Based on these contractual agreements, the Company believes that the VIEs as described above should be considered as VIEs because the equity holders do not have significant equity at risk nor do they have the characteristics of a controlling financial interest. Given that the Company, through the WOFEs, is the primary beneficiary of these VIEs, the Company believes that these VIEs should be consolidated based on the structure as described above. The following table sets forth the assets, liabilities, results of operations and cash flows of the VIEs, which are included in the Group’s consolidated financial statements. Transactions between the VIEs and their subsidiaries are eliminated in the balances presented below: As of December 31, 2017 2018 RMB RMB Cash and cash equivalents 377,470 752,102 Restricted cash 2,347,799 3,341,985 Short-term investments 1,623,656 1,574,090 Account receivable 3,287 800,334 Quality assurance receivable 1,152,769 2,064,366 Property, equipment and software, net 83,802 104,802 Financial guarantee derivative assets — 56,287 Investments 290,168 1,147,569 Deferred tax assets 127,542 88,446 Contract assets — 112,103 Prepaid expenses and other assets 141,321 167,817 Total assets 6,147,814 10,209,901 Payable to platform customers 1,113,966 905,034 Quality assurance payable 2,062,844 3,819,379 Deferred revenue 256,240 — Payroll and welfare payable 130,533 129,809 Taxes payable 140,064 208,585 Provision for payment to investor reserve fund investor 107,660 — Financial guarantee derivative liabilities 215,770 — Contract liabilities — 158,061 Deferred tax liabilities — 78,268 Due to related parties 700,137 1,609,126 Accrued expenses and other liabilities 194,780 190,406 Total liabilities 4,921,994 7,098,668 For the Years Ended December 31, 2016 2017 2018 RMB RMB RMB Net revenue 1,216,971 3,900,454 4,250,978 Net profit 314,300 730,855 1,604,530 Net cash provided by operating activities 1,164,122 3,233,966 1,356,887 Net cash used in investing activities (712,429 ) (1,642,454 ) (1,031,968 ) Net cash provided by (used in) financing activities 379,835 (31,250 ) 1,043,899 Net increase in cash, cash equivalents and restricted cash 831,528 1,560,262 1,368,818 Cash, cash equivalents and restricted cash at beginning of year 333,479 1,165,007 2,725,269 Cash, cash equivalents and restricted cash at end of year 1,165,007 2,725,269 4,094,087 Under the VIE Arrangements, the Company has the power to direct activities of the VIEs and can have assets transferred out of the VIEs. Therefore, the Company considers that there is no asset in the VIEs that can be used only to settle obligations of the VIEs, except for registered capital and PRC statutory reserves, if any. As the VIEs are incorporated as limited liability company under the Company Law of the PRC, creditors of the VIEs do not have recourse to the general credit of the Company for any of the liabilities of the VIEs. Currently there is no contractual arrangement which requires the Company to provide additional financial support to the VIEs. However, as the Company conducts its businesses primarily based on the licenses and approvals held by the VIEs and their subsidiaries, the Company has provided and will continue to provide financial support to the VIEs. |
Business combinations and noncontrolling interests | (c) Business combinations and noncontrolling interests The Company accounts for its business combinations using the acquisition method of accounting in accordance with Accounting Standards Codification (“ASC”) 805 “Business Combinations.” The cost of an acquisition is measured as the aggregate of the acquisition date fair values of the assets transferred and liabilities incurred by the Company to the sellers and equity instruments issued. Transaction costs directly attributable to the acquisition are expensed as incurred. Identifiable assets and liabilities acquired or assumed are measured separately at their fair values as of the acquisition date, irrespective of the extent of any noncontrolling interests. The excess of (i) the total costs of acquisition, fair value of the noncontrolling interests and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the consolidated income statements. During the measurement period, which can be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the consolidated statements of operations. In a business combination achieved in stages, the Company re-measures re-measurement When there is a change in ownership interests that result in a loss of control of a subsidiary, the Company deconsolidates the subsidiary from the date control is lost. Any retained noncontrolling investment in the former subsidiary is measured at fair value and is included in the calculation of the gain or loss upon deconsolidation of the subsidiary. For the Company’s majority-owned subsidiaries and VIEs, a noncontrolling interest is recognized to reflect the portion of their equity which is not attributable, directly or indirectly, to the Company. Consolidated net income (loss) on the consolidated income statements includes the net income (loss) attributable to noncontrolling interests and mezzanine equity holders when applicable. Net income (loss) attributable to mezzanine equity holders is included in net income (loss) attributable to noncontrolling interests on the consolidated income statements, while it is excluded from the consolidated statements of changes in shareholders’ equity. The cumulative results of operations attributable to noncontrolling interests, along with adjustments for share-based compensation expense arising from outstanding share-based awards relating to subsidiaries’ shares, are also recorded as noncontrolling interests in the Company’s consolidated balance sheets. Cash flows related to transactions with noncontrolling interests are presented under financing activities in the consolidated statements of cash flows. |
Use of estimates | (d) Use of estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Financial statements amounts that reflect significant accounting estimates and assumptions include revenue recognition, fair value of guarantee and quality assurance fund liabilities, valuation allowance for deferred tax assets, allowance for doubtful accounts, allowance for loan losses, determination of uncertain tax positions, accounting for convertible redeemable preferred shares, and valuation of share-based awards. Such accounting estimates are impacted significantly by judgements and assumptions used in the preparation of the Group’s consolidated financial statements, and actual results could differ materially from these estimates. Changes in estimates are recorded in the period they are identified. |
Foreign currency and foreign currency translation | (e) Foreign currency and foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The US$ is the functional currency of the Group’s entities incorporated in Cayman Islands and Hong Kong, and the RMB is the functional currency of the Group’s PRC subsidiaries. Transactions denominated in other than the functional currencies are re-measured re-measured The financial statements of the Group are translated from the functional currency to the reporting currency, RMB. Assets and liabilities of the subsidiaries are translated into RMB using the exchange rate in effect at each balance sheet date. Income and expenses items are generally translated at the average exchange rates prevailing during the fiscal year. Foreign currency translation adjustments arising from these are accumulated as a separate component of shareholders’ deficit on the consolidated financial statements. The exchange rates used for translation on December 31, 2017 and 2018 were US$1.00= RMB6.5342 and RMB6.8632, respectively, representing the index rates stipulated by the People’s Bank of China. |
Convenience translation | (f) Convenience translation Translations of balances in the Group’s consolidated balance sheet, consolidated statement of operations and comprehensive income (loss) and consolidated statement of cash flows from RMB into US$ as of and for year ended December 31, 2018 are solely for the convenience of the readers and were calculated at the rate of US$1.00=RMB6.8755, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 31, 2018. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2018, or at any other rate. |
Certain risks and concentration | (g) Certain risks and concentration As of December 31, 2017 and 2018, substantially all of the Group’s cash, term deposit and cash equivalents, restricted cash and short-term investments were held in major financial institutions located in the PRC and in Hong Kong, which management considers to be of high credit quality. Accounts receivable are generally unsecured and denominated in RMB, and are derived from revenues earned from operations arising primarily in the PRC. No individual customer accounted for more than 10% of net revenues for the years ended December 31, 2016, 2017 and 2018. No individual customer accounted for more than 10% of accounts receivable as of December 31, 2017 and 2018. |
Cash and cash equivalents | (h) 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. |
Restricted cash | (i) Restricted cash Restricted cash represents: (i) Cash in quality assurance is cash managed by the Group through designated bank accounts and cash managed by China United SME Guarantee Corporation (“Sino Guarantee”) under the new quality assurance program. There is no other use of these funds except for making payments to investors for default loans that are subject to quality assurance protection. As of December 31, 2017 and 2018, the restricted cash related to quality assurance amounted to RMB1,058,617 and RMB2,414,449, respectively. (ii) Cash in investor reserve funds is cash managed by the Group through a designated bank account or third party payment company account. There is no other use of these funds except for payments to protect relevant investors from potential losses resulting from delinquent loans and or underperformance of the investment programs. As of December 31, 2017 and 2018, the restricted cash related to investor reserve funds amounted to RMB175,215 and RMB17,971, respectively. (iii) Cash received from investors and borrowers that has not yet been disbursed, due to a settlement time lag. As of December 31, 2017 and 2018, the restricted cash related to cash not yet disbursed amounted to RMB1,113,966 and RMB905,034, respectively. (iv) Cash received via consolidated trusts that has not yet been distributed. As of December 31, 2017 and 2018, the restricted cash related to cash not yet distributed amounted to RMB44,775 and RMB303,667, respectively. (v) Cash held as collateral for short-term borrowings of a subsidiary of the Group. As of December 31, 2017 and 2018, the restricted cash held as collateral amounted to RMB nil and RMB26,000, respectively. (vi) Cash held in escrow accounts that is jointly managed by the Company and institutional funding partners. As of December 31, 2017 and 2018, the restricted cash managed by the Company and institutional funding partners amounted to RMB nil and RMB10,436, respectively. |
Short-term Investments | (j) Short-term Investments Short-term investments mainly consist of investments in wealth management products and investments in time deposits placed with banks with original maturities between three months and one year. The wealth management products are certain deposits with variable interest rates or principal not guaranteed with certain financial institutions. Realized and unrealized gain related to the short-term investments is recorded as other income in the consolidated statements of comprehensive income. RMB21,264, RMB35,516 and RMB96,061 was recognized for the year ended December 31, 2016, 2017 and 2018, respectively. |
Accounts receivable, contract assets and allowance for doubtful accounts | (k) Accounts receivable, contract assets and allowance for doubtful accounts Accounts receivable is related to the facilitation and post-facilitation service in relation to loans facilitated by the Group. Contract assets represent the Group’s right to consideration in exchange for facilitation services that the Company has transferred to the customer before payment is due. The Group only recognizes accounts receivable and contract assets to the extent that the Group believes it is probable that it will collect substantially all of the consideration to which it will be entitled to in exchange for the services transferred to the customer. Accounts receivable and contract assets is stated at the historical carrying amount net of write-offs and allowance for doubtful accounts. The Group establishes an allowance for doubtful accounts based on estimates, historical default experience and other factors surrounding the credit risk of borrowers. The Group evaluates and adjusts its allowance for accounts receivable and contract assets on a quarterly basis or more often as necessary. Accounts receivable and contract assets is written off when a settlement is reached for an amount that is less than the outstanding historical balance or when the Group has determined the balance will not be collected. |
Investments | (l) Investments Prior to January 1, 2018, the Group’s investments include equity method investments, cost method investments and available-for-sale The Group applies equity method in accounting for its investments in entities in which the Group has the ability to exercise significant influence but does not have control and the investments are in either common stock or in-substance For equity investments that are not considered as debt securities or equity securities that have readily determinable fair values and over which the Group has neither significant influence nor control through investments in common stock or in-substance The Group has classified its investments in debt securities and equity securities with readily determinable fair value as available-for-sale The Group monitors its investments for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, the operating performance of the companies including current earnings trends and other company-specific information. On January 1, 2018, the Group adopted ASU 2016-01 non-marketable Non-marketable non-marketable The table below sets forth the investments the Group holds as of December 31, 2017 and 2018 respectively. As of December 31, 2017 2018 Equity method investments 6,000 81,000 Cost method investments 2,857 — Available-for-sale 3,377 — Non-marketable — 86,501 12,234 167,501 Equity method investments For the years ended December 31, 2017 and 2018, the Company completed the following investments which were accounted for as equity method investments: In October 2018, the Company made some investments in two third party private equity with the cash consideration of RMB50,000 and RMB20,000 respectively. The Company accounted for these investments under equity methods. As of December 31, 2018, the carrying value of these investments were RMB70,000 as the earnings of these two private funds were immaterial after the Group made its investments. As of December 31, 2017 and 2018, the carrying value of the rest of equity investments were RMB6,000 and RMB11,000. Equity securities without readily determinable fair values For the years ended December 31, 2018, the Company completed the following major investments which were accounted for as non-marketable In September 2018, the Group acquired approximately 2.08% preferred share capital of Beijing Quantum Protection Technology Co., Ltd. (“Beijing Quantum”) for a cash consideration of RMB10,000 and accounted for it as non-marketable start-up In October 2018, the Group acquired approximately 5% preferred share capital of Shanghai Yi Yang automobile service Co., Ltd. (“Yi Yang”) for a cash consideration of RMB30,000 and accounted for it as non-marketable start-up In October 2018, the Group acquired approximately 2% preferred share capital of CDD Holding Limited (“CDD”) for a cash consideration of USD2,000 and accounted for it as non-marketable start-up In October 2018, the Group acquired approximately 3.99% preferred share capital of EMI Agriculture Technology Inc (“EMI”) for a cash consideration of USD2,000 and accounted for it as non-marketable start-up As of December 31, 2018, the carrying value of the rest of non-marketable |
Fair value measurement | (m) Fair value measurement 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. The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs that may be used to measure fair value include: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Observable, market-based inputs, other than quoted prices, in active markets for identical assets or liabilities. Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. The Group does not have any non-financial The Group’s financial instruments consist principally of cash and cash equivalents, restricted cash, short-term investments, quality assurance receivable, loans receivable, accounts receivable, contract assets, financial guarantee derivative, payable to platform customers, quality assurance payable, short-term borrowings and other liabilities. As of December 31, 2017 and 2018, the carrying values of cash and cash equivalents, restricted cash, short-term investments, accounts receivable, payable to platform customers, short-term borrowings and other liabilities approximated their fair values reported in the consolidated balance sheets due to the short term maturities of these instruments. The quality assurance receivable is measured using the contractual amounts due from borrowers, taking into account an expected rate of default. Due to the short term nature of the contributions, no discount factor was applied. Subsequently, the carrying value approximates fair value due to the short term nature of the receivable. The quality assurance payable is measured by taking into account the expected payout rate and incorporating a markup margin. On a recurring basis, the Group measures its short-term investments, financial guarantee derivative and contract assets at fair value. Since the contract assets net derivative asset does not have quoted price in active markets, they are valued using valuation model. Management is responsible for determining the fair value. The following table sets forth the Group’s assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy: December 31, 2017 Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Fair value RMB RMB RMB RMB Assets Short-term investments —wealth management products — 1,958,910 — 1,958,910 Investments —available-for-sale — — 3,377 3,377 Total Assets — 1,958,910 3,377 1,962,287 Financial guarantee derivative liabilities — — 215,770 215,770 Total Liabilities — — 215,770 215,770 December 31, 2018 Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Fair value RMB RMB RMB RMB Assets Short-term investments —wealth management products — 1,694,660 — 1,694,660 Investments —non-marketable — — 86,501 86,501 Financial guarantee derivative assets — — 56,287 56,287 Total Assets — 1,694,660 142,788 1,837,448 The Group values its wealth management products held in certain bank accounts and some of its non-marketable The Company did not transfer any assets or liabilities in or out of level 3 during the years ended December 31, 2017 and 2018. Changes in fair value measurement categorized within Level 3 of the fair value hierarchy are analyzed each period for changes in estimates or assumptions. Level 3 Valuation Techniques Level 3 financial assets and liabilities consist of financial guarantee derivatives, available-for-sale securities and non-marketable The fair value of available-for-sale Non-marketable non-marketable start-up non-marketable The Group uses the discounted cash flow model to value financial guarantee derivatives at inception and subsequent valuation dates. The Group analyzes the fair value of this derivative by first defining the cash flows associated with the derivative and then considers the assumptions used in determining the cash flows from a market participant’s perspective. This discounted cash flow model incorporates assumptions such as the expected default rates, discount rates, as well as early repayment rates. The expected default rate is determined based on the historical performance of loans with similar tenure and of similar credit worthiness and adjusted by the inputs that other market participants would use. Aside from the expected default rate, the Group has also considered the discount rate and early repayment rate in determining the fair value of the financial guarantee derivatives. As the term of the loans are short and the market interest rate is relatively stable, the discount rate and early repayment rate assumptions does not have a significant impact on the fair value of the derivative. Changes in the fair value are recorded in fair value change of financial guarantee derivatives in the Group’s consolidated statements of Comprehensive Income (Loss). The following table sets forth the significant unobservable inputs used for fair value measurement of financial guarantee derivatives: As of December 31, 2017 2018 Expected default rate 0.68% - 14.21 % 0.46% - 12.37 % Please refer to Note 2(u) for the movement and gain of financial guarantee contracts and related derivatives. |
Loans receivable, net | (n) Loans receivable, net Loans receivable represents loan originated by the Group and the consolidated trusts (Note 4), which is due from the borrowers. The Group has the intent and the ability to hold such loans for the foreseeable future or until maturity or payoff. Loans receivable are recorded at unpaid principal balances, net of allowance for loan losses that reflects the Company’s best estimate of the amounts that will not be collected. The loans receivable portfolio consists of personal loans with the term period ranging from 1 month to 36 months. The allowance for loan losses is determined at a level believed to be reasonable to absorb probable losses inherent in the portfolio as of each balance sheet date. The allowance is provided based on an assessment performed on a portfolio basis. All loans are assessed collectively depending on factors such as delinquency rate, size, and other risk characteristics of the portfolio. The Group writes-off |
Interest income and interest expense related to the loans originated by the Group | (o) Interest income and interest expense related to the loans originated by the Group The Group has originated and held loans. The majority of the loans originated and held by the Group in 2016 were held by Shanghai Hepai Investment Management Co., Ltd (“Hepai”). Hepai was a subsidiary of Beijing Paipairongxin until it was disposed of on September 30, 2016. Prior to its disposition, Hepai sold alternative investment products that paid investors expected rate of return for a specified period of time. Hepai used the funds received from the sale of the alternative investment products to originate loans from the Group’s online consumer marketplace. Cash receipts from loan repayment were used to pay the alternative investment products liability at maturity. Subsequently, the Group, through consolidated trust plans (See Note 4), WOFEs and consolidated subsidiaries of VIEs, originate and hold loans. Interest on loans receivable is accrued based on the contractual interest rates of the loan as earned. Accrual of interest is generally discontinued when reasonable doubt exists as to the full, timely collection of interest or principal. When a loan is discontinued from interest accrual, the Group stops accruing interest and reverses all accrued but unpaid interest as of such date. As the primary beneficiary of the trusts, the Group incorporated the trust plans and recorded return of the other trust parties into interest expense. The interest expense is accrued based on the expected rate of return during the contractual term of the alternative investment products and the trusts. The interest income, interest expense, and loan provision losses in the consolidated statement of comprehensive income (loss) related to the loans originated by the Group recorded for the years ended December 31, 2016, 2017 and 2018 are as follows: For the Years Ended December 31, 2016 2017 2018 RMB RMB RMB Interest income 59,980 46,975 316,193 Less: Interest expense (18,191 ) (15,598 ) (60,085 ) Net interest income 41,789 31,377 256,108 Less: Provision for loan losses (34,705 ) (46,586 ) (192,749 ) Net interest income (expense) and provision for loan losses 7,084 (15,209 ) 63,359 |
Property and equipment, net | (p) Property and equipment, net Property and equipment are stated at cost less accumulated depreciation and amortization. Property and equipment are depreciated over the estimated useful lives of the assets using the straight-line method taking into account the estimated residual value, if any. The table below sets forth the estimated useful life and residual value: Category Estimated useful life Residual value Office furniture and equipment 3-5 5% Computer and electronic equipment 3-5 5% Leasehold improvements shorter of remaining lease period or estimated useful life Nil Software 1-5 Nil Expenditures for maintenance and repairs are expensed as incurred. Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation amortization are removed from the accounts and any resulting gain or loss is recognized in consolidated statement of comprehensive income (loss). |
Intangible assets | (q) Intangible assets Intangible assets that have indefinite useful life primarily include micro-lending license, factoring license, financial leasing license and financing guarantee license as of December 31, 2018. The Company evaluates indefinite-lived intangible assets each reporting period to determine whether events and circumstances continue to support an indefinite useful life. If an intangible asset that is not being amortized is subsequently determined to have a finite useful life, the asset is tested for impairment. No impairment on intangible assets with indefinite useful life was recognized for the years ended December 31, 2016, 2017 and 2018, respectively. |
Goodwill | (r) Goodwill Goodwill represents the excess of the purchase consideration over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed of the acquired entity as a result of the Company’s acquisitions of interests in its subsidiaries and VIEs. Goodwill is not amortized but is tested for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that it might be impaired. The Company first assesses qualitative factors to determine whether it is necessary to perform the two-step In performing the two-step |
Impairment of long-lived assets other than goodwill | (s) Impairment of long-lived assets other than goodwill The Group evaluates its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability is measured by comparison of the carrying amounts to the expected future undiscounted cash flows attributable to these assets. If it is determined that an asset is not recoverable, an impairment loss is recorded in the amount by which the carrying amount of the assets exceeds the expected discounted cash flows arising from those assets. No impairment of long-lived assets was recognized for the years ended December 31, 2016, 2017 and 2018. |
Guarantee and quality assurance fund payable and receivable | (t) Quality assurance payable and receivable The Company provides quality assurance to investors of its online consumer finance platform and institutional funding partners in the form of various quality assurance programs and, in the case of certain institutional funding partners, direct guarantee. Borrowers may elect to, or in certain circumstances, are required to make contributions to the quality assurance programs, in addition to the transaction fee and payments of loan principal and interest. The quality assurance contribution is maintained in a segregated restricted cash bank account or managed by Sino Guarantee. This contribution, which is a certain percentage of the principal amount, is determined at the time of the loan application based on the borrower’s credit score. The contribution does not change over time after the loan is matched and must be paid in its entirety even if the loan is pre-paid. The Group is required to record its obligation associated with all quality assurance obligation in accordance with ASC Topic 460, Guarantees. Accordingly, the liabilities are measured at their fair value at inception. For quality assurance program, default payments to investors are capped at the quality assurance account balance at any point in time. The Group is not obligated to pay default loans in the event no funds are available in the quality assurance account. Once the investors are paid for a borrower’s default, any future principal and interests recovered are contributed into the quality assurance account. For direct guarantee to institutional funding partners, default payments are not capped and the Group is obligated to compensate the institutional funding partners in the event of any default. The quality assurance obligations are comprised of two components: (i) ASC Topic 460 component; and (ii) ASC Topic 450 component. In accordance with ASC 460-10-25-2 460-10-30-3, non-contingent Subsequent to initial recognition, the quality assurance obligations are measured at the greater of the amount determined based on ASC Topic 460 and the amount determined based on ASC Topic 450. ASC Topic 460 does not prescribe a method for subsequently measuring and recording the non-contingent 460-10-35-1, As the risk of the guarantee liability is reduced, it is recognized into the income statement by a systematic and rational amortization method, e.g. over the term of the loan, within the “gain from the quality assurance” line item of the income statement. For the years ended December 31, 2016, 2017 and 2018, the amount of gains recorded were RMB100.0 million, RMB5.9 million and RMB510.9 million (US$74.3 million), respectively. A quality assurance receivable is recognized at loan inception at its fair value on a loan-by-loan On a loan-by-loan up-to-date. Investors who invested in loans for which the borrower elected to participate in the quality assurance programs bear their own financial risk and may suffer a loss if the restricted cash balance plus the subsequent quality assurance contributions are exhausted by quality assurance payments which are made on a first-loss basis. Payouts from the quality assurance account are made to investors when a borrower delinquent in repaying an installment of principal and interest in the order of default date until the restricted cash balance is reduced to nil, even though there may still be investors protected by quality assurance programs. Amounts recovered from the defaulted borrower will be remitted to replenish the portion of the quality assurance programs used to repay the investors. The following table sets forth the Group’s quality assurance obligations movement activities for the years ended December 31, 2016, 2017 and 2018: For the years ended December 31, 2016 2017 2018 Opening balance 125,651 473,704 2,062,844 Fair value of newly written quality assurance obligation 634,899 3,318,432 5,313,489 Release of quality assurance payable upon repayment (386,304 ) (2,506,141 ) (4,049,457 ) Contingent liability 293,269 2,527,209 3,380,930 Payouts during the year (1,122,039 ) (4,812,797 ) (7,889,277 ) Recoveries during the year 928,228 3,062,437 5,000,850 Ending balance 473,704 2,062,844 3,819,379 The following table sets forth the Group’s quality assurance receivables movement activities for the years ended December 31, 2016, 2017 and 2018: For the years ended December 31, 2016 2017 2018 Opening balance 115,484 286,812 1,152,769 Fair value of newly written quality assurance obligation 634,899 3,318,432 5,313,489 Quality assurance obligation contribution received from borrowers (470,497 ) (2,479,428 ) (4,244,259 ) Gain from quality assurance 6,926 26,953 (157,633 ) Ending balance 286,812 1,152,769 2,064,366 As of December 31, 2017 and 2018, the amounts of maximum potential future payment the Group would be required to make were RMB1,220,980 and RMB2,780,797, respectively. |
Financial guarantee derivative | (u) Financial guarantee derivative For investors who invest in loans without the quality assurance protection through certain Investment Programs (Note 2(v)) from which the investors are entitled to an expected return, they participate in a separate investor reserve fund program. Investors subscribing to these investment programs make contributions to the corresponding investor reserve funds. Under this type of investment program, any surplus gains, less 0.1% of the principal amount invested, are contributed to the investor reserve funds, while the 0.1% of the principal amount invested is paid to the Group. Similar to the quality assurance obligation, the Group maintains a separate dedicated restricted cash account for each of these investment programs. Such funds are maintained solely for the benefit of the investors who invested in loans through the Investment Programs. In general, the investor reserve fund covers underperformance to the extent there are available funds, i.e., it protects investors from not only loan defaults, but also an investment program performing below its stated expected rate of return, which may be due to either a decline in market interest rates during the program’s term, or an inability to timely match repayments with new loans. Payouts will be made from the corresponding investor reserve funds to make up the gap between the actual return and the stated expected rate of return. The capital used for investment purposes in such programs is generated with the cash flows from the borrowers’ monthly repayments of principal and interest. The investor reserve funds are maintained separately and are used to compensate investors in the event of a program’s underperformance. The investor reserve funds are funded upon a program’s maturity, and are capped at a certain percentage of the total funding of each investment program. If an individual investment program underperforms, the Group will use the investor reserve fund to make up for the shortfall, which is paid out upon maturity of the program. An investor who participates in this program is entitled to coverage by the investor reserve fund for the duration he or she participates in the program. In order to determine the accounting method used, the Group considered the criteria of the scope exception under ASC 815-10-15-58. non-payment back-to-back 815-10-15-58(a) Derivative assets and liabilities within the scope of ASC Topic 815 are required to be recorded at fair value at inception and re-measured If there are changes to the expected defaults of loans and expected performance of the investment programs, the Group records these resulting adjustments to the “fair value change of financial guarantee derivatives” line item within “other income (expense)” on the consolidated statement of comprehensive income (loss). Upon the maturity of an investment program, any cumulative gain or loss will be reclassified to the “realized gain or loss from financial guarantee derivatives” line item within “other income (expense).” That is, whenever cash flows occur upon maturity, the fair value changes are reclassified within the income statement and recorded as realized gain or loss. In October 2017, along with the termination of investment program with flexible investment periods, the remaining restricted cash amounting to approximately RMB45,567 were transferred from restricted cash to cash and cash equivalents, as the company was released from the obligation to compensate the investors should the flexible term investment programs under-perform. The following table sets forth the Group’s financial guarantee derivative movement activities for the years ended December 31, 2016, 2017 and 2018. For the years ended December 31, 2016 2017 2018 Opening balance 20,638 167,291 (215,770 ) Initial recognition of and change in fair value of ongoing investor reserve arrangements 178,652 (213,958 ) 114,813 Settlement upon maturity of investor reserve arrangements (31,999 ) (169,103 ) 157,244 Ending balance 167,291 (215,770 ) 56,287 As of December 31, 2017, given the deterioration of performance of investor reserve fund investment programs, the investor reserve fund is expected to be dissolved upon maturity of the investment programs. The Group reverses all the gains recorded historically amounting to RMB213,958. As the expected payout to compensate the investors exceeds the funds available in the investor reserve fund, additional provision outside the Group’s obligation related to the investor reserve fund is recognized as a reduction of revenue amounting to RMB107,660. In 2018, the Group experienced improved loan performance and the actual default rate was lower than previously expected. As a result, a reversal amounting to RMB68,619 was made to the discretionary payment provision. Please refer to Note 2(v) for details. |
Revenue recognition | (v) Revenue recognition The Group engages primarily in operating an online consumer finance marketplace by providing an online platform which matches borrowers with both individual investors, institutional funding partners and assisting facilitation of loans to investors on certain third-party online platforms (collectively referred to as “investors”). The Group determines that it is not the legal lender and legal borrower in the above process. Therefore, the Group does not record loan receivable and payable arising from the loans between investors and borrowers on its balance sheets. Revenue comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the Group’s activities and is recorded net of value-added tax (“VAT”). On January 1, 2018, the Company adopted the revenue standard using the modified retrospective transition method to those contracts which were not completed as of January 1, 2018. Results for periods beginning after January 1, 2018 are presented under ASC Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with historic accounting under ASC Topic 605. Upon initial adoption, the Group recognized the cumulative effect of initially applying the revenue standard as an increase of approximately RMB176.5 million, net of tax, to the opening balances of retained earnings. These adjustments primarily arose from the timing of revenue recognition for transaction fees collected in monthly instalments related to our loan products being recognized earlier under ASC Topic 606. The table below sets forth the cumulative effect of the changes made to the consolidated balance sheet as of January 1, 2018 due to the adoption of ASC Topic 606. Balance at Adjustments due to Balance at Assets Accounts receivable 17,773 154,168 171,941 Deferred tax assets 128,361 (33,303 ) 95,058 Contract assets — 53,084 53,084 Liabilities Deferred revenue 265,094 (265,094 ) — Contract liabilities — 262,549 262,549 Shareholders’ Deficit Accumulated deficit (2,398,984 ) 176,494 (2,222,490 ) The table below sets forth the impact to the consolidated statement of comprehensive income as a result of adoption of ASC Topic 606: For the year ended December 31, 2018 As reported Amounts without Effect of change Loan facilitation service fees 2,919,234 2,141,565 777,669 Post-facilitation service fees 922,797 773,116 149,681 Other Revenue 376,915 793,188 (416,273 ) 4,218,946 3,707,869 511,077 Consistent with the criteria of ASC 606 “Revenue from Contracts with Customers”, the Group recognizes revenue by applying the following five steps: (i) identify the contract with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to performance obligations in the contract; and (v) recognize revenue when (or as) performance obligations are satisfied. Revenue recognition policies for each type of services under ASC Topic 606 are discussed as follows: Revenue from Single Loans The Group determines its customers to be both investors and borrowers. In 2018, the Group charges a transaction fee as part of the borrowers’ monthly repayment. Under certain circumstances, in addition to the loan transaction fee, borrowers pay a monthly contribution to the quality assurance, which provides a protection mechanism to investors who subscribe to these loans. In accordance with the relevant guidance in ASC Topic 606, the amounts associated with the quality assurance is within the scope of ASC Topic 460 and should be accounted for in accordance with the provisions of that Topic. The services not within the scope of other Topics should be accounted for in accordance with the remaining provisions of ASC Topic 606 and the applicable revenue recognition guidance. The Group considers loan facilitation services (covering matching of investors to borrowers and facilitating the execution of loan agreement between investors and borrowers) and post-facilitation services (covering cash processing services and collection services) as two distinctive performance obligations in accordance with ASC Topic 606. The transaction price is first allocate to the guarantee and quality assurance program, if any, which is recorded at fair value in accordance with ASC Topic 460. Then the remaining considerations are allocated to the loan facilitation and post-facilitation services using their relative standalone selling prices. The Group does not have observable standalone selling price for the loan facilitation services or post-facilitation services because it does not provide loan facilitation services or post-facilitation services on a standalone basis in similar circumstances to similar customers. There is no direct observable standalone selling price for similar services in the market that is reasonably available to the Group. As a result, the estimation of standalone selling price involves significant judgment. The Group uses an expected cost plus margin approach to estimate the standalone selling prices of loan facilitation services and post facilitation services as the basis of revenue allocation. When estimating the selling prices, the Group considers the cost related to such services, profit margin, customer demand, effect of competition on services, and other market factors. The transaction price allocated to loan facilitation is recognized as revenue upon execution of loan agreements between investors and borrowers; the consideration allocated to post-facilitation services is recognized over the period of the loan on a straight line method, which approximates the pattern of when the underlying services are performed. In additional to transaction fee, the Group also receives fees on future events, such as collection fees. For loans with no quality assurance protection, collection is considered a separate performance obligation and therefore collection fee is allocated to this specific performance obligation. For loans with quality assurance protection, as the quality assurance will compensate the investors should the borrowers are delinquent, the collection fee is considered a variable consideration for the loan facilitation and post-facilitation performance obligations and therefore is included in the total transaction price which is allocated to these two performance obligation based on their relative standalone selling price. The collection fee is only probable of not reserving upon successful collection and as such is not included in the transaction price until then. For certain loans facilitated by institutional funding partners, the processing and account management services are provided by the respective institutional funding partners. As these loans are typically covered by quality assurance programs or are guaranteed directly by the Group, no substantial post-facilitation services are provided. Therefore, the transaction price after consideration of the fair value of guarantee is allocated to the loan facilitation performance obligation which is recognized upon successful matching. Revenue from Investment Programs For investment programs that only fund loans protected by the quality assurance, the loan transaction fees and monthly contribution to the quality assurance paid by the borrowers are the same as those discussed under “Revenue from Single Loans” above. In addition, the Group charges the surplus gain, i.e., the actual rate of return exceeds the stated expected rate of return in the investment program agreement, as investment program management fee. The investment program management fee is a separate fee charged to investors in a separate contract and therefore is allocate specifically to the investment management performance obligation. The Group determines that the “probable of not reserving” threshold is met for surplus gain and therefore surplus gain is included in the transaction price upon the effective of investment program. The Group estimates the surplus gain on a monthly basis for the duration of an investment program to monitor the expected outcome of the portfolio and the amount is recognized over the term of the investment program as the investor simultaneously receives and consumes the benefits provided by the Company’s performance throughout the term of the investment program. Incentives To expand its market presence, attract new investors and increase activity level on our platform, the Group will occasionally provide incentives to potential investors at its sole discretion. The Group provides the following types of incentives: • When a loan is successfully matched during the relevant incentive program period, the investor receives a cash incentive, either provided upfront as a one-time • In certain other circumstances, the Group may provide a cash incentive to a new potential investor upon signing up as a new user on the platform, without a requirement for the potential investor to fund a loan. This is considered a type of marketing expense to attract potential investors to the platform, and is recorded as expense, rather than a reduction of transaction price. Other revenue Other than the collection fees charged for certain loans and investment management fee for investment programs, other revenue primarily includes service fees charged to borrowers for transfer of loans on the secondary loan market. Revenue disaggregation analysis The following table set forth the Group’s operating revenue from different service type: For the year ended December 31, 2017 2018 With quality Without quality With quality Without quality Loan facilitation service fees 1,467,806 1,375,481 2,404,178 515,056 Post-facilitation service fees 348,489 320,330 678,518 244,279 Other revenue - investment management fee 24,789 — 208,471 — - others 258,470 208,141 54,734 113,710 Changes in expected discretionary payment to IRF investors — (107,660 ) — 68,619 2,099,554 1,796,292 3,345,901 941,664 Contract balances Contract assets represent the Group’s right to consideration in exchange for facilitation and post-facilitation service that the Company has transferred to the customer before payment is due. Contract liabilities represent the Group’s obligation to transfer facilitation and post-facilitation service to the customer due to received payment. The timing of revenue recognition, scheduled payments, and cash collections results in contract assets and contract liability. Practical expedient and exemptions The Group generally expenses sales commission when incurred for loans with a term for one year or less. These costs are recorded within sales and marketing expenses. The Group does not disclose the value of unsatisfied performance obligation as most of the loans facilitated through its platform with an original term of one year or less. Expected discretionary payment to investor reserve fund investors In relation to investor reserve fund, the Group records approximately RMB107,660 as of December 31, 2017 in provision for expected discretionary payment to investors in investment programs protected by investor reserve fund investor as a reduction of revenue as such compensation is deemed beyond its legal obligations. For the year ended December 31, 2018, the Group made in total RMB39,041 payment under such provision. As of December 31, 2018, considering the improved loan performance observed and decrease in expected default rate for remaining IRF investment programs, the Group reversed the provision amounting to RMB68,619. Revenue Recognition Under ASC Topic 605 Consistent with the criteria of ASC 605 “Revenue Recognition” (“ASC 605”), the Group recognizes revenue when the following four revenue recognition criteria are met: (i) Persuasive evidence of an arrangement exists; (ii) Delivery has occurred or services have been provided; (iii) The selling price is fixed or determinable; and, (iv) Collectability is reasonably assured. Revenue recognition policies for each type of service are discussed as follows: Revenue from Single Loans The Group charges fees at the inception of the loan, which are deducted from the amount that borrowers receive from investors, for facilitating loan origination (covering matching of investors to borrowers and facilitating the execution of loan agreement between investors and borrowers) and for providing ongoing monthly services (covering cash processing services and collection services) (“non-contingent The Group considers the loan facilitation services and post-facilitation services as multiple deliverable arrangements. Although the Group does not sell these services separately, the Group determined that all deliverables have standalone value. Thus, all non-contingent non-contingent non-contingent non-contingent, In December 2017, to comply with a series of regulatory requirements, the Group discontinued upfront fee collection. Instead, the transaction fee is collected in monthly installments. In accordance with ASC 605-30-5, In addition to the loan transaction fees, the Group also receives fees which are contingent on future events, such as loan collection fees and fees related to loan transfers on the Group’s secondary loan market. These contingent fees are not recognized until the contingencies are resolved and the fees become fixed and determined, which also coincide with when the services are performed and collectability is reasonably assured. These fees are classified within Other Revenue in the consolidated statement of comprehensive income (loss). Under certain circumstances, in addition to the loan transaction fee, borrowers pay a monthly contribution to the quality assurance fund, which provides a protection mechanism to investors who subscribe to these loans. In accordance with the relevant guidance in ASC 605, Revenue Recognition, the amounts associated with the quality assurance fund is within the scope of another Topic (ASC 460, Guarantees) and should be accounted for in accordance with the provisions of that Topic. The deliverables not within the scope of other Topics should be accounted for in accordance with the remaining provisions of ASC 605 and the applicable revenue recognition guidance. The fair value of the guarantee associated with the quality assurance fund is recorded under ASC 460, with the remaining amount of consideration accounted for under ASC 605. Revenue from Investment Programs For investment programs that only fund loans that are protected by the quality assurance fund, the loan transaction fees and monthly contribution to the quality assurance fund paid by the borrowers are the same as those discussed under “Revenue from Single Loans” above. In addition, under this type of investment program, if there is any surplus gain, i.e., the actual rate of return exceeds the stated expected rate of return in the investment program agreement, this is recognized as an investment program management fee in other revenue upon maturity of such program, when the amount becomes fixed and determinable. Incentives To expand its market presence, attract new investors and increase activity level on our platform, the Group will occasionally provide incentives to potential investors at its sole discretion. The Group provides the following types of incentives: • When a loan is successfully matched during the relevant incentive program period, the investor receives a cash incentive, either provided upfront as a one-time 605-50. • In certain other circumstances, the Group may provide a cash incentive to a new potential investor upon signing up as a new user on the platform, without a requirement for the potential investor to fund a loan. This is considered a type of marketing expense to attract potential investors to the platform, and is recorded as expense, rather than a reduction of revenue. Other revenue Other revenue includes collection fees charged to borrowers, management fees charged to investors for certain investment programs, service fees charged to borrowers for transfer of loans on the secondary loan market and other fees charged to our customers. Deferred revenue Deferred revenues are derived from loan contracts with borrowers and contractual billings in excess of recognized revenue and payments received in advance of revenue recognition, which are from the borrower advance of facilitation services fee Deferred revenues represent the unamortized balance of facilitation service fee paid by borrowers, and the deferred revenues are amortized on a straight-line basis through the service period. |
Origination and servicing expenses | (w) Origination and servicing expenses Origination and servicing expenses primarily consist of salaries and benefits of employees who facilitate loan origination, perform risk pricing, debt-collection service, customer service, data processing and data analysis. Origination and servicing expenses-related party consist of expenses for data collection service provided by PPcredit, a related party of the Group. (See Note 11) |
Sales and marketing expenses | (x) Sales and marketing expenses Sales and marketing expenses consist primarily of advertising and online marketing promotion expenses. Advertising and online marketing expenses, amounting to approximately RMB349,421, RMB779,737 and RMB702,508 for the years ended December 31, 2016, 2017 and 2018, respectively, are charged to the consolidated statements of comprehensive income (loss) as incurred. |
General and administrative expenses | (y) General and administrative expenses General and administrative expenses consist primarily of salaries and benefits for general management, finance and administrative personnel, rental, professional service fees and other expenses. General and administrative expenses include research and development expenditures, amounting to RMB114,648, RMB164,869 and RMB317,965 and share based compensation expenses, amounting to RMB nil, RMB106,152 and RMB50,319 for the years ended December 31, 2016, 2017 and 2018, respectively. |
Share-based compensation | (z) Share-based compensation The Group follows ASC Topic 718, which requires all share-based payments to employees and directors, including grants of employee stock options, to be recognized as compensation expense in the financial statements over the vesting period of the award based on the fair value of the award determined at the grant date. Under ASC Topic 718, the number of share-based awards for which the service is not expected to be rendered for the requisite period should be estimated, and the related compensation cost is not recorded for that number of awards. In accordance with ASC Topic 718, the Group recognize share-based compensation expenses, net of a forfeiture rate, using the straight-line method for awards with services conditions only, and using the graded-vesting attribution method for awards with graded vesting features and performance conditions. Compensation cost is accrued if it is probable that a performance condition will be achieved. |
Operating leases | (aa) Operating leases A lease for which substantially all the benefits and risks incidental to ownership remain with the lessor is classified as an operating lease. All leases of the Group are currently classified as operating leases. When a lease contains rent holidays, the Group records the total expenses on a straight-line basis over the lease term. |
Government grants and subsidy income | (ab) Government grants and subsidy income The Group receives government grants and subsidies in the PRC from various levels of 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 other income in the consolidated statement of comprehensive income (loss) in the period the cash is received. The government grants received by the Group amounting to RMB6,436, RMB1,682 and RMB53,739 for the years ended December 31, 2016, 2017 and 2018, respectively. |
Taxation | (ac) Taxation Current income taxes are provided on the basis of net income for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred income taxes are recognized for temporary differences between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements, net operating loss carry forwards and credits. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided in accordance with the laws of the relevant taxing authorities. Deferred tax assets and liabilities are measured using enacted rates expected to apply to taxable income in which temporary differences are expected to be received or settled. The effect on deferred tax assets and liabilities of changes in tax rates is recognized in the statement of comprehensive income (loss) in the period of the enactment of the change. The Group considers positive and negative evidence when determining whether a portion or all of its deferred tax assets will more likely than not be realized. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of statutory carry-forward periods, its experience with tax attributes expiring unused, and its tax planning strategies. The ultimate realization of deferred tax assets is dependent upon its ability to generate sufficient future taxable income within the carry-forward periods provided for in the tax law and during the periods in which the temporary differences become deductible. When assessing the realization of deferred tax assets, the Group has considered possible sources of taxable income including (i) future reversals of existing taxable temporary differences, (ii) future taxable income exclusive of reversing temporary differences and carry-forwards, (iii) future taxable income arising from implementing tax planning strategies, and (iv) specific known trend of profits expected to be reflected within the industry. The Group recognizes a tax benefit associated with an uncertain tax position when, in its judgment, it is more likely than not that the position will be sustained upon examination by a taxing authority. For a tax position that meets the more-likely-than-not |
Earnings (loss) per share | (ad) Earnings (loss) per share Basic earnings (loss) per share is computed by dividing net income (loss) attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period using the two-class two-class if-converted |
Segment reporting | (ae) Segment reporting The Group’s chief operating decision maker, the Chief Executive Officer, reviews the consolidated results when making decisions about allocating resources and assessing performance of the Group as a whole and therefore, the Group only has one reportable segment. The Group does not distinguish between markets or segments for the purpose of internal reporting. The Group’s long-lived assets are substantially all located in the PRC and substantially all of the Group’s revenues are derived from within the PRC. Therefore, no geographical segments are presented. |
Treasury shares | (af) Treasury shares The Company accounts for treasury shares using the cost method. Under this method, the cost incurred to purchase the shares is recorded in the treasury shares account in the consolidated balance sheets. At retirement, the ordinary shares account is charged only for the aggregate par value of the shares. The excess of the acquisition cost of treasury shares over the aggregate par value is allocated between additional paid-in paid-in |
Statutory reserves | (ag) Statutory reserves In accordance with the relevant regulations and their articles of association, subsidiaries of the Company incorporated in the PRC are required to allocate at least 10% of their after-tax |
Recently issued accounting standards | (ah) Recently issued accounting standards Adoption of new accounting standards In May 2014, the FASB issued ASU 2014-09 2016-08) 2016-10), 2016-12), 2016-20) In January 2016, the FASB issued ASU 2016-01, 825-10)-Recognition 2016-01”), In November 2016, the FASB issued ASU 2016-18, In January 2017, the FASB issued ASU 2017-01, 2017-01”), In February 2017, the FASB issued ASU 2017-05, 2017-05”), 610-20 610-20 In May 2017, the FASB issued ASU 2017-09, 2017-09 New accounting standards not yet adopted In February 2016, the FASB issued ASU 2016-02, 2016-02”), 2016-02 right-to-use 2018-10, 2018-11, In June 2016, the FASB amended guidance related to impairment of financial instruments as part of ASU 2016-13 2018-19): 2016-13. In January 2017, the FASB issued ASU 2017-04, In August 2018, the FASB issued ASU 2018-13, 2018-13 |
Principal activities and reor_2
Principal activities and reorganization (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Principal Subsidiaries and Consolidated VIEs' | As of December 31, 2018, the Company’s principal subsidiaries and consolidated VIEs are as follows: Name Percentage direct or ownership Date of incorporation Place of Subsidiaries PPDAI (HK) LIMITED. (“PPDAI HK”) 100 % June 12, 2012 Hong Kong, China Beijing Prosper Investment Consulting Co., Ltd. (“Beijing Prosper”) 100 % August 21, 2012 Beijing, China Shanghai Guangjian Information Technology Co., Ltd. (“Shanghai Guangjian”) 100 % June 5, 2017 Shanghai, China Shanghai Shanghu Information Technology Co., Ltd. (“Shanghai Shanghu”) Shanghai Manyin Information Technology Co., Ltd. (“Shanghai Manyin”) 100 % June 15, 2017 Shanghai, China Consolidated VIEs Beijing Paipairongxin Investment Consulting Co., Ltd. (“Beijing Paipairongxin”) 100 %* June 15, 2012 Beijing, China Shanghai Zihe Information Technology Co., Ltd. (“Shanghai Zihe”) 100 %* March 21, 2018 Shanghai, China Shanghai Nianqiao Technology Co., Ltd. (“Shanghai Nianqiao”) 100 %* November 29, 2018 Shanghai, China Consolidated VIEs’ principal subsidiaries Shanghai PPDai Financial Information Services Co.,Ltd. (“Shanghai PPDai”) 100 %* January 18, 2011 Shanghai, China Shanghai Erxu Information Technology Co., Ltd. (“Shanghai Erxu”) 100 %* April 28, 2018 Shanghai, China * Controlled via contractual relationships |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of Investments | The table below sets forth the investments the Group holds as of December 31, 2017 and 2018 respectively. As of December 31, 2017 2018 Equity method investments 6,000 81,000 Cost method investments 2,857 — Available-for-sale 3,377 — Non-marketable — 86,501 12,234 167,501 |
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table sets forth the Group’s assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy: December 31, 2017 Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Fair value RMB RMB RMB RMB Assets Short-term investments —wealth management products — 1,958,910 — 1,958,910 Investments —available-for-sale — — 3,377 3,377 Total Assets — 1,958,910 3,377 1,962,287 Financial guarantee derivative liabilities — — 215,770 215,770 Total Liabilities — — 215,770 215,770 December 31, 2018 Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Fair value RMB RMB RMB RMB Assets Short-term investments —wealth management products — 1,694,660 — 1,694,660 Investments —non-marketable — — 86,501 86,501 Financial guarantee derivative assets — — 56,287 56,287 Total Assets — 1,694,660 142,788 1,837,448 |
Summary of Significant Unobservable Inputs used for Fair Value Measurement of Financial Guarantee Derivatives | The following table sets forth the significant unobservable inputs used for fair value measurement of financial guarantee derivatives: As of December 31, 2017 2018 Expected default rate 0.68% - 14.21 % 0.46% - 12.37 % |
Schedule of Interest Income, Interest Expense and Loan Provision Losses Related to Loans | The interest income, interest expense, and loan provision losses in the consolidated statement of comprehensive income (loss) related to the loans originated by the Group recorded for the years ended December 31, 2016, 2017 and 2018 are as follows: For the Years Ended December 31, 2016 2017 2018 RMB RMB RMB Interest income 59,980 46,975 316,193 Less: Interest expense (18,191 ) (15,598 ) (60,085 ) Net interest income 41,789 31,377 256,108 Less: Provision for loan losses (34,705 ) (46,586 ) (192,749 ) Net interest income (expense) and provision for loan losses 7,084 (15,209 ) 63,359 |
Schedule of Estimated Useful Life and Residual Value of Property and Equipment, Net | The table below sets forth the estimated useful life and residual value: Category Estimated useful life Residual value Office furniture and equipment 3-5 5% Computer and electronic equipment 3-5 5% Leasehold improvements shorter of remaining lease period or estimated useful life Nil Software 1-5 Nil |
Schedule of Guarantee and Quality Assurance Fund Obligations Movement Activities | The following table sets forth the Group’s quality assurance obligations movement activities for the years ended December 31, 2016, 2017 and 2018: For the years ended December 31, 2016 2017 2018 Opening balance 125,651 473,704 2,062,844 Fair value of newly written quality assurance obligation 634,899 3,318,432 5,313,489 Release of quality assurance payable upon repayment (386,304 ) (2,506,141 ) (4,049,457 ) Contingent liability 293,269 2,527,209 3,380,930 Payouts during the year (1,122,039 ) (4,812,797 ) (7,889,277 ) Recoveries during the year 928,228 3,062,437 5,000,850 Ending balance 473,704 2,062,844 3,819,379 |
Schedule of Quality and Assurance Fund Receivable Movement Activities | The following table sets forth the Group’s quality assurance receivables movement activities for the years ended December 31, 2016, 2017 and 2018: For the years ended December 31, 2016 2017 2018 Opening balance 115,484 286,812 1,152,769 Fair value of newly written quality assurance obligation 634,899 3,318,432 5,313,489 Quality assurance obligation contribution received from borrowers (470,497 ) (2,479,428 ) (4,244,259 ) Gain from quality assurance 6,926 26,953 (157,633 ) Ending balance 286,812 1,152,769 2,064,366 |
Schedule of Financial Guarantee Derivative Movement Activities | The following table sets forth the Group’s financial guarantee derivative movement activities for the years ended December 31, 2016, 2017 and 2018. For the years ended December 31, 2016 2017 2018 Opening balance 20,638 167,291 (215,770 ) Initial recognition of and change in fair value of ongoing investor reserve arrangements 178,652 (213,958 ) 114,813 Settlement upon maturity of investor reserve arrangements (31,999 ) (169,103 ) 157,244 Ending balance 167,291 (215,770 ) 56,287 |
Disaggregation of Revenue | The following table set forth the Group’s operating revenue from different service type: For the year ended December 31, 2017 2018 With quality Without quality With quality Without quality Loan facilitation service fees 1,467,806 1,375,481 2,404,178 515,056 Post-facilitation service fees 348,489 320,330 678,518 244,279 Other revenue - investment management fee 24,789 — 208,471 — - others 258,470 208,141 54,734 113,710 Changes in expected discretionary payment to IRF investors — (107,660 ) — 68,619 2,099,554 1,796,292 3,345,901 941,664 |
Beijing Paipairongxin Investment Consulting Co., Ltd [Member] | |
Summary of Financial Information of VIE and its Subsidiaries | The following table sets forth the assets, liabilities, results of operations and cash flows of the VIEs, which are included in the Group’s consolidated financial statements. Transactions between the VIEs and their subsidiaries are eliminated in the balances presented below: As of December 31, 2017 2018 RMB RMB Cash and cash equivalents 377,470 752,102 Restricted cash 2,347,799 3,341,985 Short-term investments 1,623,656 1,574,090 Account receivable 3,287 800,334 Quality assurance receivable 1,152,769 2,064,366 Property, equipment and software, net 83,802 104,802 Financial guarantee derivative assets — 56,287 Investments 290,168 1,147,569 Deferred tax assets 127,542 88,446 Contract assets — 112,103 Prepaid expenses and other assets 141,321 167,817 Total assets 6,147,814 10,209,901 Payable to platform customers 1,113,966 905,034 Quality assurance payable 2,062,844 3,819,379 Deferred revenue 256,240 — Payroll and welfare payable 130,533 129,809 Taxes payable 140,064 208,585 Provision for payment to investor reserve fund investor 107,660 — Financial guarantee derivative liabilities 215,770 — Contract liabilities — 158,061 Deferred tax liabilities — 78,268 Due to related parties 700,137 1,609,126 Accrued expenses and other liabilities 194,780 190,406 Total liabilities 4,921,994 7,098,668 For the Years Ended December 31, 2016 2017 2018 RMB RMB RMB Net revenue 1,216,971 3,900,454 4,250,978 Net profit 314,300 730,855 1,604,530 Net cash provided by operating activities 1,164,122 3,233,966 1,356,887 Net cash used in investing activities (712,429 ) (1,642,454 ) (1,031,968 ) Net cash provided by (used in) financing activities 379,835 (31,250 ) 1,043,899 Net increase in cash, cash equivalents and restricted cash 831,528 1,560,262 1,368,818 Cash, cash equivalents and restricted cash at beginning of year 333,479 1,165,007 2,725,269 Cash, cash equivalents and restricted cash at end of year 1,165,007 2,725,269 4,094,087 |
Accounting Standards Update 2014-09 [Member] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The table below sets forth the cumulative effect of the changes made to the consolidated balance sheet as of January 1, 2018 due to the adoption of ASC Topic 606. Balance at Adjustments due to Balance at Assets Accounts receivable 17,773 154,168 171,941 Deferred tax assets 128,361 (33,303 ) 95,058 Contract assets — 53,084 53,084 Liabilities Deferred revenue 265,094 (265,094 ) — Contract liabilities — 262,549 262,549 Shareholders’ Deficit Accumulated deficit (2,398,984 ) 176,494 (2,222,490 ) The table below sets forth the impact to the consolidated statement of comprehensive income as a result of adoption of ASC Topic 606: For the year ended December 31, 2018 As reported Amounts without Effect of change Loan facilitation service fees 2,919,234 2,141,565 777,669 Post-facilitation service fees 922,797 773,116 149,681 Other Revenue 376,915 793,188 (416,273 ) 4,218,946 3,707,869 511,077 |
Significant equity transactio_2
Significant equity transactions and acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Allocation of the Purchase Price | The allocation of the purchase price is as follows: As of acquisition date Amortization years RMB Identifiable assets acquired Identifiable intangible asset 63,760 Indefinite Cash 50,068 Other asset 2,337 Identifiable liabilities assumed Deferred tax liability (15,940 ) Other liability (393 ) Goodwill 50,411 Non-controlling (60,097 ) Total purchase price 90,146 |
Loans receivable, net (Tables)
Loans receivable, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounts Receivable and Related Allowance for Doubtful Accounts | Loans receivable originated and retained by the Group consist of the following: As of December 31, 2017 2018 RMB RMB Loans 729,464 2,571,527 Allowance for loan losses (47,670 ) (240,419 ) Loans receivable, net 681,794 2,331,108 |
Schedule of Allowance for Loan Losses | The following table sets forth the activity in the allowance for loan losses for the years ended December 31, 2016, 2017 and 2018. For the Years Ended December 31, 2016 2017 2018 RMB RMB RMB Beginning balance 5,912 1,084 47,670 Current period provision 44,178 65,299 204,442 Current period reversal (9,473 ) (18,713 ) (11,693 ) Release upon derecognition of loans receivable associated with a disposed subsidiary (23,250 ) — — Release upon disposal of loans receivable (16,283 ) — — Ending balance 1,084 47,670 240,419 |
Schedule of Aging of Loans | The following table sets forth the aging of loans as of December 31, 2017 and December 31, 2018: 1-89 days past due 90 days or Total past due Current Total loans December 31, 2017 31,308 8,381 39,689 689,775 729,464 December 31, 2018 59,685 191,990 251,675 2,319,852 2,571,527 |
Schedule of Total Assets, Liabilities, Results of Operations and Cash Flows of Trusts | The following table sets forth the total assets, liabilities, results of operations and cash flows of the above trusts, which are included in the Group’s consolidated financial statements. As of December 31, 2017 2018 RMB RMB Restricted cash 44,775 303,667 Accounts receivable 10,000 — Loans receivable 647,793 2,507,878 Total assets 702,568 2,811,545 Funds payable to investors of consolidated trusts 736,963 2,808,506 Taxes payable — 3,039 Accrued expenses and other liabilities 10,000 — Total liabilities 746,963 2,811,545 For the Years Ended December 31, 2016 2017 2018 RMB RMB RMB Net revenue (673 ) (28,372 ) (164,082 ) Net loss (743 ) (44,396 ) — Net cash provided by (used in) operating activities 972 (16,024 ) (18,008 ) Net cash used in investing activities (29,289 ) (615,971 ) (1,624,784 ) Net cash provided by financing activities 29,433 675,654 1,901,684 Net increase in cash, cash equivalents and restricted cash 1,116 43,659 258,892 Cash, cash equivalents and restricted cash at beginning of year — 1,116 44,775 Cash, cash equivalents and restricted cash at end of period 1,116 44,775 303,667 |
Accounts Receivable [Member] | |
Accounts Receivable and Related Allowance for Doubtful Accounts | The following table presents the accounts receivable as of December 31, 2017 and 2018: As of December 31, 2017 2018 RMB RMB Accounts receivable 17,773 935,195 Allowance for doubtful accounts — (123,153 ) Accounts receivable, net 17,773 812,042 |
Schedule of Aging of Loans | The following table presents the aging of past-due 1-89 days past due 90 days or Total Current December 31, 2017 — — 17,773 17,773 December 31, 2018 42,965 102,100 935,195 790,130 |
Prepaid expenses and other as_2
Prepaid expenses and other assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Receivables, Prepayments and Other Assets | Receivables, prepayments and other assets consist of the following: As of December 31, 2017 2018 RMB RMB Prepaid rental and deposits 109,327 152,974 Prepaid online marketing expenses 13,496 25,975 Advances 13,229 19,517 Interest receivables 2,045 1,947 Others 7,602 21,380 145,699 221,793 |
Property, equipment and softw_2
Property, equipment and software, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Equipment and Software, Net | Property, equipment and software, net consist of the following: As of December 31, 2017 2018 RMB RMB Computer and electronic equipment 81,059 126,842 Office furniture and equipment 12,498 13,843 Leasehold improvement 45,268 55,575 Software 7,588 28,069 Total 146,413 224,329 Less: Accumulated depreciation and amortization (1) (38,165 ) (80,327 ) Property, equipment and software, net 108,248 144,002 (1) Depreciation and amortization expenses for the years ended December 31, 2016, 2017 and 2018 was RMB12,086, RMB22,555 and RMB42,162, respectively. |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets consist of the following: As of December 31, 2017 2018 RMB RMB Financing guarantee License* — 4,600 Factoring License* — 265 Financial Leasing License* — 255 Micro-Lending License 63,760 63,760 Total 63,760 68,880 Less: Accumulated amortization and impairment — — Intangible assets 63,760 68,880 * The Group acquired Shenzhen Rongze Commerecial Co., Ltd, Zhongyu Financial Leasing and Zhongyisheng Financing Guarantee Co., Ltd in 2018. The acquisitions met the “single or similar asset threshold” and are not considered as business combination in accordance with ASC Topic 805. |
Accounts receivable and contr_2
Accounts receivable and contract assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text Block [Abstract] | |
Schedule of Movement of Provision for Accounts Receivable | The following table presents the movement of provision for accounts receivable as of December 31, 2017 and 2018 respectively: For the Years Ended December 31, 2017 2018 RMB RMB Beginning balance — — Impact due to adoption of new revenue standard — 16,501 Current period accrual — 106,652 Ending balance — 123,153 |
Schedule of Contract with Customer, Assets | The following table presents the contract assets as of December 31, 2017 and 2018: As of December 31, 2017 2018 RMB RMB Investment management fee for investment programs — 110,321 Contract acquisition cost — 1,782 — 112,103 |
Schedule of Movement of Contract Assets | The following table presents the movement of contract assets for the years ended December 31, 2017 and 2018: For the Years Ended December 31, 2017 2018 RMB RMB Beginning balance — — Impact due to adoption of new revenue standard 53,084 Recognition of investment management fee — 208,471 Recognition of contract acquisition cost 4,186 Settlement upon maturity of investment programs — (146,483 ) Settlement upon fulfilment of contract (7,155 ) Ending balance — 112,103 |
Accrued expenses and other li_2
Accrued expenses and other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consist of the following: As of December 31 2017 2018 RMB RMB Accrued marketing expense 105,544 113,568 Accrued payment channel surcharges 26,053 25,728 Accrued professional service fee 21,333 31,446 Accrued technical services expense 16,854 16,510 Management fee payable to trust administrator 10,000 — Payable for purchase of property, equipment and software 6,585 917 Others 25,245 34,350 211,614 222,519 |
Related party balances and tr_2
Related party balances and transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Summary of Amount Incurred by the Group | Amounts incurred by the Group For the Years ended December 31, 2016 2017 2018 RMB RMB RMB Data collection service expense (i) . 38,297 84,362 109,666 (i) PPcredit Data Service (Shanghai) Co., Ltd. (“PPcredit”) was founded in April 2016 by the founders of the Group to provide data collection services. The Group mainly uses PPcredit as a data provider since PPcredit was established. The price for the service is determined based on the price charged by other market participants. |
Summary of Expenses Paid on Behalf of Related Party | Expenses paid on behalf of related party, for which the Group was reimbursed For the Years Ended December 31, 2016 2017 2018 RMB RMB RMB PPcredit 13,526 — — |
Summary of Amounts Due to Related Party | Amounts due to related party As of December 31, 2017 2018 RMB RMB PPcredit 11,972 — |
Summary of Amounts Due From Related Party | Amounts due from related party As of December 31, 2017 2018 RMB RMB PPcredit — 2,830 |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Current and Deferred Portions of Income Tax Expenses | The current and deferred portions of income tax expenses included in the consolidated statements of comprehensive income (loss) during the years ended December 31, 2016, 2017 and 2018 are as follows: For the Years Ended December 31, 2016 2017 2018 RMB RMB RMB Current income tax expenses 65,106 371,354 94,787 Deferred income tax benefit (expense) (16,839 ) (96,643 ) 56,419 Total 48,267 274,711 151,206 |
Summary of Reconciliation Between the Computed Expected Tax Expenses (Benefit) Rate and the Effective Income Tax Rate | The following table sets forth reconciliation between the computed expected tax expenses (benefit) rate and the effective income tax rate: For the Years Ended December 31, 2016 2017 2018 RMB RMB RMB Statutory tax rate 25 % 25 % 25 % Research and development tax credit (2 )% (2 )% (2 )% Effect of tax holiday* (5 )% (6 )% (19 )% Change in valuation allowance (9 )% — — Undeductable expenses — 2 % 2 % Others — 1 % — Effective income tax rate 9 % 20 % 6 % * Although the subsidiary approved the Software Enterprise Status is entitled to enjoy full exemption from EIT for two years from 2017, it is also subject to the annual tax inspection which was finally settled in 2018. As a result, the Group reversed a total of RMB268,051 tax expenses in the fourth quarter of 2018 including RMB136,424 related to the tax expenses of 2017 and RMB131,627 related to the tax expenses for first three quarters of 2018, which were recorded as tax payable in the balance sheet. |
Summary of Aggregate Amount and Per Share Effect of Tax Holidays | The aggregate amount and per share effect of the tax holidays are as follows For the Years Ended December 31, 2016 2017 2018 RMB RMB RMB Tax holiday effect 30,012 153,908 460,333 Net income per share effect - Basic 4.51 0.20 0.31 - Diluted 4.51 0.20 0.29 |
Significant Components of Deferred Tax Assets | The following table sets forth the significant components of the deferred tax assets: As of December 31, 2017 2018 RMB RMB Deferred tax assets: Contract liabilities — 63,733 Allowance for doubtful accounts and loan provision 819 52,207 Net accumulated losses-carry forward 18,530 38,851 Payroll and welfare payable and other temporary difference 5,988 5,988 Deferred revenue 38,436 — Quality assurance payable 35,947 2,127 Accounts receivable 34,030 — Investor reserve fund 16,149 — Less: valuation allowance (21,538 ) (40,143 ) Total deferred tax assets 128,361 122,763 Deferred tax liabilities: Intangible assets arisen from business combination (15,940 ) (15,940 ) Contract assets — (16,815 ) Investor reserve funds — (23,287 ) Quality assurance payable — (41,799 ) Change in fair value for short-term investment — (2,223 ) Total deferred tax liabilities (15,940 ) (100,064 ) Net deferred tax assets 112,421 22,699 |
Movement of Valuation Allowances | Movement of valuation allowances For the Years Ended December 31, 2016 2017 2018 RMB RMB RMB At beginning of year 49,877 2,906 21,538 Current year additions 1,037 18,688 22,585 Current year reversals (48,008 ) (56 ) (3,980 ) At end of year 2,906 21,538 40,143 |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock Option Shares Activities | The following table sets forth the stock option shares activities under all the option plans for the years ended December 31, 2017 and 2018 is presented below after share split: Options Weighted Weighted Aggregate US$ US$ Outstanding at December 31, 2015 66,860,000 0.0201 3.66 6,766 Granted 49,170,000 0.1260 — — Forfeited (3,460,000 ) 0.0464 — — Outstanding at December 31, 2016 112,570,000 0.0650 3.37 22,688 Granted 26,610,000 0.3020 — — Forfeited (7,538,200 ) 0.0967 — — Outstanding at December 31, 2017 131,641,800 0.1108 2.69 172,618 Granted 12,039,050 0.8942 — — Forfeited (3,722,285 ) 0.1930 — — Expired (300,000 ) 0.0040 — — Exercised (44,005,360 ) 0.0543 — — Outstanding at December 31, 2018 95,653,205 0.2214 2.17 47,689 Vested and expected to vest at December 31, 2018 94,736,802 0.2213 2.17 47,245 Exercisable as of December 31, 2018 42,887,580 0.0919 1.49 26,938 |
Schedule of Fair Value of Each Option Granted Estimated Using Binomial Model Assumption | The fair value of each option granted under the Company’s Incentive Shares plan was estimated on the date of grant using the binomial model that uses the assumption noted in the following table: Options Granted Options Granted Options Granted RMB RMB RMB Risk-free interest rate 1.27%~1.35% 1.97%~2.04% 2.52%-2.75% Expected life (in years) 5 5 5 Expected dividend yield 0% 0% 0% Expected volatility 43.3%~44.0% 39.0%~41.9% 37.74%-38.74% Exercise multiple 2.8 2.8 2.2-2.8 |
Summary of Restricted Stock Units Activities Under All Incentive Plans | The following table summarized the Company’s RSUs activities under all incentive plans (in US$, except shares): Number of RSUs Weighted- average US$ Restricted shares — — Unvested at December 31, 2017 — — Granted 7,822,280 1.4375 Vested — — Forfeited (270,800 ) 1.3233 Unvested at December 31, 2018 7,551,480 1.4416 |
Net income (loss) per share (Ta
Net income (loss) per share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Earnings Per Share | Basic earnings (loss) per share and diluted earnings (loss) per share have been calculated in accordance with ASC Topic 260 on computation of earnings per share for the years ended December 31, 2016, 2017 and 2018 as follows: For the years ended December 31, 2016 2017 2018 RMB RMB RMB Numerator: Net profit attributable to PPDAI Group Inc. 501,490 1,082,983 2,469,074 Accretion on Series A convertible redeemable preferred shares redemption value (236,662 ) (1,237,274 ) — Accretion on Series B convertible redeemable preferred shares redemption value (171,106 ) (905,861 ) — Accretion on Series C convertible redeemable preferred shares redemption value (154,254 ) (930,336 ) — Net income (loss) attributable to ordinary shareholders-Basic and diluted (60,532 ) (1,990,488 ) 2,469,074 Denominator: Denominator for basic and diluted loss per share Weighted-average ordinary shares outstanding Basic 665,000,000 779,804,270 1,498,780,165 Diluted 665,000,000 779,804,270 1,599,592,231 Net income (loss) per share - Basic (0.0910 ) (2.5525 ) 1.6474 Net income (loss) per share - Diluted (0.0910 ) (2.5525 ) 1.5436 Net income (loss) per ADS - Basic (0.4551 ) (12.7627 ) 8.2369 Net income (loss) per ADS - Diluted (0.4551 ) (12.7627 ) 7.7178 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments under Non-Cancellable Leases | Future minimum lease payments under these non-cancellable As of December 31, 2018 RMB 2019 58,406 2020 45,077 2021 40,221 2022 14,826 Thereafter 640 Total 159,170 |
Condensed financial informati_2
Condensed financial information of the parent company (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Condensed Balance Sheet | The Company did not have significant capital and other commitments, long-term obligations, or guarantees as of December 31, 2017 and 2018. As of December 31, 2017 2018 RMB RMB US$ Note2(f) Assets Cash and cash equivalents 934,758 461,054 67,058 Prepaid expenses and other assets 10,350 4,798 698 Investment in and advances to subsidiaries 2,687,270 5,476,363 796,504 Total assets 3,632,378 5,942,215 864,260 Liabilities and Shareholders’ Equity Accrued expenses and other liabilities 10,211 18,333 2,666 Total liabilities 10,211 18,333 2,666 Shareholders’ equity : Class A ordinary shares (US$0.00001 par value; 10,000,000,000 shares authorized as of December 31, 2017 and 2018; 842,071,169 and 874,071,169 issued as of December 31, 2017 and 2018; 842,071,169 and 827,770,169 outstanding as of December 31, 2017 and 2018) 56 58 8 Class B ordinary shares (US$0.00001 par value; 10,000,000,000 shares authorized as of December 31, 2017 and 2018; 661,000,000 and 659,000,000 issued and outstanding as of December 31, 2017 and 2018) 44 44 7 Additional paid-in 5,951,044 5,896,017 857,540 Treasury stock (nil and 46,301,000 shares as of December 31, 2017 and 2018, respectively) — (332,121 ) (48,305 ) Non-controlling — Statutory reserves 55,090 256,006 37,235 Accumulated other comprehensive income 14,917 58,210 8,466 Retained earnings (accumulated deficit) (2,398,984 ) 45,668 6,643 Total shareholders’ equity 3,622,167 5,923,882 861,594 Total liabilities and shareholders’ equity 3,632,378 5,942,215 864,260 |
Schedule of Comprehensive Loss | Statements of comprehensive loss For the Years Ended December 31, 2016 2017 2018 RMB RMB RMB US$ Operating expenses Sales and marketing expenses — — (2 ) — General and administrative expenses (8,605 ) (71,189 ) (57,448 ) (8,355 ) Profits from operations Other income, net 8 2,515 21,183 3,081 Share of profit of subsidiaries 510,087 1,151,657 2,505,341 364,386 Net profit 501,490 1,082,983 2,469,074 359,112 Accretion on Series A convertible redeemable preferred shares to redemption value (236,662 ) (1,237,274 ) — — Accretion on Series B convertible redeemable preferred shares to redemption value (171,106 ) (905,861 ) — — Accretion on Series C convertible redeemable preferred shares to redemption value (154,254 ) (930,336 ) — — Net profit (loss) attributable to ordinary shareholders (60,532 ) (1,990,488 ) 2,469,074 359,112 |
Schedule of Cash Flow Statement | Statements of cash flows For the Years Ended December 31, 2016 2017 2018 RMB RMB RMB US$ Note 2(f) Net cash provided by (used in) operating activities 40 (12,178 ) 12,111 1,761 Net cash used in investing activities — (720,259 ) (69,660 ) (10,132 ) Net cash provided by (used in) financing activities — 1,677,222 (438,253 ) (63,741 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash — (13,447 ) 22,098 3,215 Net increase (decrease) in cash, cash equivalents and restricted cash 40 931,338 (473,704 ) (68,897 ) Cash, cash equivalents and restricted cash-beginning of year 3,380 3,420 934,758 135,955 Cash, cash equivalents and restricted cash-end of year 3,420 934,758 461,054 67,058 |
Principal Activities and Reor_3
Principal Activities and Reorganization - Schedule of Principal Subsidiaries and Consolidated VIE (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Principal Activities And Reorganization [Line Items] | |
Date of incorporation | Jun. 6, 2012 |
Place of incorporation | Cayman Islands |
PPDAI (HK) LIMITED [Member] | Subsidiaries [Member] | |
Principal Activities And Reorganization [Line Items] | |
Percentage of direct or indirect ownership | 100.00% |
Date of incorporation | Jun. 12, 2012 |
Place of incorporation | Hong Kong, China |
Beijing Prosper Investment Consulting Co., Ltd [Member] | Subsidiaries [Member] | |
Principal Activities And Reorganization [Line Items] | |
Percentage of direct or indirect ownership | 100.00% |
Date of incorporation | Aug. 21, 2012 |
Place of incorporation | Beijing, China |
Shanghai Guangjian Information Technology Co., Ltd [Member] | Subsidiaries [Member] | |
Principal Activities And Reorganization [Line Items] | |
Percentage of direct or indirect ownership | 100.00% |
Date of incorporation | Jun. 5, 2017 |
Place of incorporation | Shanghai, China |
Shanghai Manyin Information Technology Co., Ltd. [Member] | Subsidiaries [Member] | |
Principal Activities And Reorganization [Line Items] | |
Percentage of direct or indirect ownership | 100.00% |
Date of incorporation | Jun. 15, 2017 |
Place of incorporation | Shanghai, China |
Consolidated VIEs' [Member] | Beijing Paipairongxin Investment Consulting Co., Ltd [Member] | |
Principal Activities And Reorganization [Line Items] | |
Percentage of direct or indirect ownership | 100.00% |
Date of incorporation | Jun. 15, 2012 |
Place of incorporation | Beijing, China |
Consolidated VIEs' [Member] | Shanghai Zihe Information Technology Co., Ltd [Member] | |
Principal Activities And Reorganization [Line Items] | |
Percentage of direct or indirect ownership | 100.00% |
Date of incorporation | Mar. 21, 2018 |
Place of incorporation | Shanghai, China |
Consolidated VIEs' [Member] | Shanghai Nianqiao Technology Co., Ltd [Member] | |
Principal Activities And Reorganization [Line Items] | |
Percentage of direct or indirect ownership | 100.00% |
Date of incorporation | Nov. 29, 2018 |
Place of incorporation | Shanghai, China |
Consolidated VIEs' principal subsidiaries [Member] | Shanghai PPDai Financial Information Services Co.,Ltd [Member] | |
Principal Activities And Reorganization [Line Items] | |
Percentage of direct or indirect ownership | 100.00% |
Date of incorporation | Jan. 18, 2011 |
Place of incorporation | Shanghai, China |
Consolidated VIEs' principal subsidiaries [Member] | Shanghai Erxu Information Technology Co., Ltd [Member] | |
Principal Activities And Reorganization [Line Items] | |
Percentage of direct or indirect ownership | 100.00% |
Date of incorporation | Apr. 28, 2018 |
Place of incorporation | Shanghai, China |
Principal Activities and Reor_4
Principal Activities and Reorganization - Additional Information (Detail) | Oct. 20, 2017$ / shares | Dec. 31, 2018$ / shares | Jun. 30, 2012$ / shares |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Date of incorporation | Jun. 6, 2012 | ||
Place of incorporation | Cayman Islands | ||
Share split, description | Each of ordinary share and preferred share of the Company was subdivided into 100 shares at a par value of US$0.00001 | ||
Preferred stock shares converted and designated | 100 | ||
Ordinary shares, par value | $ 0.00001 | $ 0.00001 | $ 0.00001 |
Preferred shares, par value | $ 0.00001 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 12 Months Ended | |||||||||
Dec. 31, 2018CNY (¥)Segmentsshares | Dec. 31, 2018USD ($)Segments | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2016CNY (¥) | Dec. 31, 2018USD ($)shares | Oct. 31, 2018CNY (¥) | Oct. 31, 2018USD ($) | Sep. 30, 2018CNY (¥) | Jan. 01, 2018CNY (¥) | Oct. 31, 2017CNY (¥) | |
Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Exchange rates used for translation | 6.8632 | 6.5342 | 6.8632 | |||||||
Convenience translation rate | 6.8755 | 6.8755 | ||||||||
Restricted cash | ¥ 3,677,557,000 | ¥ 2,392,573,000 | $ 534,878 | |||||||
Cash collateral for borrowed securities | 26,000,000 | 0 | ||||||||
Cash held in escrow accounts | 10,436,000 | 0 | ||||||||
Cash consideration for equity interests | 81,000,000 | 6,000,000 | ||||||||
Equity method investment carrying value | 11,000,000 | 6,000,000 | ||||||||
Non marketable Securities carrying value | 19,049,000 | |||||||||
Transfer of assets into level 3 | 0 | 0 | ||||||||
Transfer of assets out of level 3 | 0 | 0 | ||||||||
Transfer of liabilities into level 3 | 0 | 0 | ||||||||
Transfer of liabilities out of level 3 | 0 | 0 | ||||||||
Impairment of intangible assets with indefinite useful life | 0 | 0 | ¥ 0 | |||||||
Impairment of long-lived assets | 0 | 0 | 0 | |||||||
Gain from quality assurance fund | 510,894,000 | $ 74,307 | 5,885,000 | 99,961,000 | ||||||
Maximum potential future payment of quality assurance fund | ¥ 2,780,797,000 | 1,220,980,000 | ||||||||
Percentage of principal amount invested received | 0.10% | 0.10% | ||||||||
Restricted cash transferred to cash and cash equivalents | ¥ 45,567,000 | |||||||||
Reversal of gains | 213,958,000 | |||||||||
Expected discretionary payment to investor reserve | ¥ 39,041,000 | 107,660,000 | ||||||||
Accumulated deficit | 45,668,000 | (2,398,984,000) | $ 6,643 | |||||||
Discretionary payment to investor reserve | 68,619,000 | |||||||||
Share based compensation expenses | 44,490,000 | 65,324,000 | 0 | |||||||
Operating revenues | ¥ 4,287,565,000 | $ 623,600 | ¥ 3,895,846,000 | 1,208,674,000 | ||||||
Percentage on statutory reserve contribution from net profit | 50.00% | 50.00% | ||||||||
Number of reportable segments | Segments | 1 | 1 | ||||||||
Number of geographical segments | Segments | 0 | 0 | ||||||||
Treasury stock, common shares | shares | 46,301,000 | 0 | 46,301,000 | |||||||
Appropriations to the general reserve | ¥ 200,916,000 | ¥ 39,428,000 | 15,662,000 | |||||||
Beijing Quantum Protection Technology Co Ltd [Member] | ||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Cash consideration for equity interests | 10,000,000 | ¥ 10,000,000 | ||||||||
Acquired of equity interest | 2.08% | |||||||||
Shanghai Yi Yang Automobile Service Co Ltd [Member] | ||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Cash consideration for equity interests | 30,000,000 | ¥ 30,000,000 | ||||||||
Acquired of equity interest | 5.00% | 5.00% | ||||||||
CDD Holding Limited [Member] | ||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Cash consideration for equity interests | $ | $ 2,000 | $ 2,000 | ||||||||
Acquired of equity interest | 2.00% | 2.00% | ||||||||
EMI Agriculture Technology Inc [Member] | ||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Cash consideration for equity interests | $ | $ 2,000 | $ 2,000 | ||||||||
Acquired of equity interest | 3.99% | 3.99% | ||||||||
Third Party [Member] | ||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Cash consideration for equity interests | 70,000,000 | |||||||||
Third Parties One [Member] | ||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Cash consideration for equity interests | ¥ 50,000,000 | |||||||||
Third Parties Two [Member] | ||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Cash consideration for equity interests | ¥ 20,000,000 | |||||||||
Guarantee and Quality Assurance Fund [Member] | ||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Restricted cash | 2,414,449,000 | 1,058,617,000 | ||||||||
Investor Reserve Funds [Member] | ||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Restricted cash | 17,971,000 | 175,215,000 | ||||||||
Cash Received From Investors Or Borrowers Not Yet Disbursed [Member] | ||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Restricted cash | 905,034,000 | 1,113,966,000 | ||||||||
Cash Received Via Consolidated Trust Not Yet Distributed [Member] | ||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Restricted cash | 303,667,000 | 44,775,000 | ||||||||
Accounting Standards Update 2014-09 [Member] | ||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Accumulated deficit | ¥ (2,222,490,000) | |||||||||
Operating revenues | 4,218,946,000 | |||||||||
Grants [Member] | ||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Operating revenues | 53,739,000 | 1,682,000 | 6,436,000 | |||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Accumulated deficit | 176,494,000 | ¥ 176,494,000 | ||||||||
Operating revenues | 511,077,000 | |||||||||
Other Income [Member] | ||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Realized and unrealized gain on short-term investments | 96,061,000 | 35,516,000 | 21,264,000 | |||||||
Selling and Marketing Expense [Member] | ||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Advertising and online marketing expenses | 702,508,000 | 779,737,000 | 349,421,000 | |||||||
General and Administrative Expense [Member] | ||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Research and development expenditures | 317,965,000 | 164,869,000 | 114,648,000 | |||||||
Share based compensation expenses | ¥ 50,319,000 | ¥ 106,152,000 | ¥ 0 | |||||||
Maximum [Member] | ||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Cash and cash equivalents, original maturities period | 3 months | 3 months | ||||||||
Loans receivable portfolio, personal loans term | 36 months | 36 months | ||||||||
Minimum [Member] | ||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Statutory reserve contribution percentage on net profit | 10.00% | 10.00% | 10.00% | 10.00% | ||||||
Loans receivable portfolio, personal loans term | 1 month | 1 month | ||||||||
Beijing Prosper Investment Consulting Co., Ltd [Member] | ||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Percentage to pay service fees by VIE's | 100.00% | 100.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Financial Information of VIE and its Subsidiaries (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Variable Interest Entity [Line Items] | |||
Cash and cash equivalents | ¥ 1,616,164 | $ 235,061 | ¥ 1,891,131 |
Restricted cash | 3,677,557 | 534,878 | 2,392,573 |
Short-term investments | 1,694,660 | 246,478 | 1,958,910 |
Account receivable | 812,042 | 118,107 | 17,773 |
Property, equipment and software, net | 144,002 | 20,944 | 108,248 |
Financial guarantee derivative assets | 56,287 | 8,187 | |
Investments | 81,000 | 6,000 | |
Deferred tax assets | 122,763 | 17,855 | 128,361 |
Contract assets | 112,103 | 16,305 | 0 |
Prepaid expenses and other assets | 221,793 | 32,259 | 145,699 |
Total assets | 13,142,467 | 1,911,494 | 8,603,663 |
Payable to platform customers | 905,034 | 131,632 | 1,113,966 |
Deferred revenue | 265,094 | ||
Payroll and welfare payable | 188,254 | 27,380 | 156,831 |
Taxes payable | 225,101 | 32,740 | 257,143 |
Provision for payment to investor reserve fund investor | 107,660 | ||
Financial guarantee derivative liabilities | 215,770 | ||
Contract liabilities | 165,469 | 24,066 | |
Deferred tax liabilities | 100,064 | 14,554 | 15,940 |
Due to related parties | 11,972 | ||
Accrued expenses and other liabilities | 222,519 | 32,364 | 211,614 |
Total liabilities | 7,156,729 | $ 1,040,903 | 4,921,475 |
Beijing Paipairongxin Investment Consulting Co., Ltd [Member] | |||
Variable Interest Entity [Line Items] | |||
Cash and cash equivalents | 752,102 | 377,470 | |
Restricted cash | 3,341,985 | 2,347,799 | |
Short-term investments | 1,574,090 | 1,623,656 | |
Account receivable | 800,334 | 3,287 | |
Quality assurance receivable | 2,064,366 | 1,152,769 | |
Property, equipment and software, net | 104,802 | 83,802 | |
Financial guarantee derivative assets | 56,287 | ||
Investments | 1,147,569 | 290,168 | |
Deferred tax assets | 88,446 | 127,542 | |
Contract assets | 112,103 | ||
Prepaid expenses and other assets | 167,817 | 141,321 | |
Total assets | 10,209,901 | 6,147,814 | |
Payable to platform customers | 905,034 | 1,113,966 | |
Quality assurance payable | 3,819,379 | 2,062,844 | |
Deferred revenue | 256,240 | ||
Payroll and welfare payable | 129,809 | 130,533 | |
Taxes payable | 208,585 | 140,064 | |
Provision for payment to investor reserve fund investor | 107,660 | ||
Financial guarantee derivative liabilities | 215,770 | ||
Contract liabilities | 158,061 | ||
Deferred tax liabilities | 78,268 | ||
Due to related parties | 1,609,126 | 700,137 | |
Accrued expenses and other liabilities | 190,406 | 194,780 | |
Total liabilities | ¥ 7,098,668 | ¥ 4,921,994 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Financial Information of VIE and its Subsidiaries (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Variable Interest Entity [Line Items] | ||||
Net revenue | ¥ 4,287,565 | $ 623,600 | ¥ 3,895,846 | ¥ 1,208,674 |
Net profit | 2,469,451 | 359,167 | 1,082,907 | 501,490 |
Net increase in cash, cash equivalents and restricted cash | 1,010,017 | 146,900 | 3,076,139 | 845,309 |
Cash, cash equivalents and restricted cash at beginning of year | 4,283,704 | 623,039 | 1,207,565 | 362,256 |
Cash, cash equivalents and restricted cash at end of period | 5,293,721 | $ 769,939 | 4,283,704 | 1,207,565 |
Beijing Paipairongxin Investment Consulting Co., Ltd [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Net revenue | 4,250,978 | 3,900,454 | 1,216,971 | |
Net profit | 1,604,530 | 730,855 | 314,300 | |
Net cash provided by operating activities | 1,356,887 | 3,233,966 | 1,164,122 | |
Net cash used in investing activities | (1,031,968) | (1,642,454) | (712,429) | |
Net cash provided by (used in) financing activities | 1,043,899 | (31,250) | 379,835 | |
Net increase in cash, cash equivalents and restricted cash | 1,368,818 | 1,560,262 | 831,528 | |
Cash, cash equivalents and restricted cash at beginning of year | 2,725,269 | 1,165,007 | 333,479 | |
Cash, cash equivalents and restricted cash at end of period | ¥ 4,094,087 | ¥ 2,725,269 | ¥ 1,165,007 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Investments (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Summary Of Significant Accounting Policies [Abstract] | |||
Equity method investments | ¥ 81,000 | ¥ 6,000 | |
Cost method investments | 2,857 | ||
Available-for-sale securities | 3,377 | ||
Non-marketable equity investments | 86,501 | ||
Investments | ¥ 167,501 | $ 24,362 | ¥ 12,234 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - CNY (¥) ¥ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Total Assets | ¥ 1,837,448 | ¥ 1,962,287 |
Total Liabilities | 215,770 | |
Available-for-sale Securities [Member] | ||
Assets | ||
Total Assets | 3,377 | |
Non Marketable Equity Investments [Member] | ||
Assets | ||
Total Assets | 86,501 | |
Wealth Management Products [Member] | ||
Assets | ||
Total Assets | 1,694,660 | 1,958,910 |
Derivative Financial Instruments, Liabilities [Member] | ||
Assets | ||
Total Liabilities | 215,770 | |
Financial guarantee derivative [Member] | ||
Assets | ||
Total Assets | 56,287 | |
Fair Value, Inputs, Level 2 [Member] | ||
Assets | ||
Total Assets | 1,694,660 | 1,958,910 |
Fair Value, Inputs, Level 2 [Member] | Wealth Management Products [Member] | ||
Assets | ||
Total Assets | 1,694,660 | 1,958,910 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets | ||
Total Assets | 142,788 | 3,377 |
Total Liabilities | 215,770 | |
Fair Value, Inputs, Level 3 [Member] | Available-for-sale Securities [Member] | ||
Assets | ||
Total Assets | 3,377 | |
Fair Value, Inputs, Level 3 [Member] | Non Marketable Equity Investments [Member] | ||
Assets | ||
Total Assets | 86,501 | |
Fair Value, Inputs, Level 3 [Member] | Derivative Financial Instruments, Liabilities [Member] | ||
Assets | ||
Total Liabilities | ¥ 215,770 | |
Fair Value, Inputs, Level 3 [Member] | Financial guarantee derivative [Member] | ||
Assets | ||
Total Assets | ¥ 56,287 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Summary of Significant Unobservable Inputs used for Fair Value Measurement of Financial Guarantee Derivatives (Detail) - Measurement Input, Default Rate [Member] - Financial guarantee derivative [Member] | Dec. 31, 2018 | Dec. 31, 2017 |
Minimum [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Expected default rate | 0.0046 | 0.0068 |
Maximum [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Expected default rate | 0.1237 | 0.1421 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Schedule of Interest Income, Interest Expense and Loan Provision Losses Related to Loans (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Accounting Policies [Abstract] | ||||
Interest income | ¥ 316,193 | ¥ 46,975 | ¥ 59,980 | |
Less: Interest expense | (60,085) | (15,598) | (18,191) | |
Net interest income | 256,108 | 31,377 | 41,789 | |
Less: Provision for loan losses | (192,749) | (46,586) | (34,705) | |
Net interest income (expense) and provision for loan losses | ¥ 63,359 | $ 9,215 | ¥ (15,209) | ¥ 7,084 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Schedule of Estimated Useful Life and Residual Value of Property and Equipment Net (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Office Furniture and Equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Residual value | 5.00% |
Computer and Electronic Equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Residual value | 5.00% |
Leasehold Improvements [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful life | Shorter of remaining lease period or estimated useful life |
Minimum [Member] | Office Furniture and Equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful life | 3 years |
Minimum [Member] | Computer and Electronic Equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful life | 3 years |
Minimum [Member] | Software [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful life | 1 year |
Maximum [Member] | Office Furniture and Equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful life | 5 years |
Maximum [Member] | Computer and Electronic Equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful life | 5 years |
Maximum [Member] | Software [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful life | 5 years |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Schedule of Guarantee and Quality Assurance Fund Obligations Movement Activities (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Accounting Policies [Abstract] | ||||
Opening balance | ¥ 2,062,844 | ¥ 473,704 | ¥ 125,651 | |
Fair value of newly written quality assurance obligation | 5,313,489 | 3,318,432 | 634,899 | |
Release of quality assurance payable upon repayment | (4,049,457) | (2,506,141) | (386,304) | |
Contingent liability | 3,380,930 | 2,527,209 | 293,269 | |
Payouts during the year | (7,889,277) | (4,812,797) | (1,122,039) | |
Recoveries during the year | 5,000,850 | 3,062,437 | 928,228 | |
Ending balance | ¥ 3,819,379 | $ 555,506 | ¥ 2,062,844 | ¥ 473,704 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Schedule of Guarantee and Quality Assurance Fund Receivable Movement Activities (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Accounting Policies [Abstract] | ||||
Opening balance | ¥ 1,152,769 | ¥ 286,812 | ¥ 115,484 | |
Fair value of newly written quality assurance obligation | 5,313,489 | 3,318,432 | 634,899 | |
Quality assurance obligation contribution received from borrowers | (4,244,259) | (2,479,428) | (470,497) | |
Gain from quality assurance | (157,633) | 26,953 | 6,926 | |
Ending balance | ¥ 2,064,366 | $ 300,250 | ¥ 1,152,769 | ¥ 286,812 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Schedule of Financial Guarantee Derivative Movement Activities (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Opening balance | ¥ 215,770 | |||
Settlement upon maturity of investor reserve arrangements | 272,057 | $ 39,569 | ¥ (383,061) | ¥ 146,653 |
Ending balance | 215,770 | |||
Financial Guarantee [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Opening balance | (215,770) | 167,291 | 20,638 | |
Initial recognition of and change in fair value of ongoing investor reserve arrangements | 114,813 | (213,958) | 178,652 | |
Settlement upon maturity of investor reserve arrangements | 157,244 | (169,103) | (31,999) | |
Ending balance | ¥ 56,287 | ¥ (215,770) | ¥ 167,291 |
Summary of Significant Accou_15
Summary of Significant Accounting Policies - Cumulative Effect of the Changes made to the Consolidated Balance Sheet (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Jan. 01, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Assets | ||||
Accounts receivable | ¥ 812,042 | $ 118,107 | ¥ 17,773 | |
Deferred tax assets | 122,763 | 17,855 | 128,361 | |
Contract assets | 112,103 | 16,305 | 0 | |
Liabilities | ||||
Deferred revenue | 265,094 | |||
Contract liabilities | 165,469 | 24,066 | ||
PPDAI Group Inc. Shareholders' equity : | ||||
Accumulated deficit | ¥ 45,668 | $ 6,643 | (2,398,984) | |
Accounting Standards Update 2014-09 [Member] | ||||
Assets | ||||
Accounts receivable | ¥ 171,941 | |||
Deferred tax assets | 95,058 | |||
Contract assets | 53,084 | |||
Liabilities | ||||
Contract liabilities | 262,549 | |||
PPDAI Group Inc. Shareholders' equity : | ||||
Accumulated deficit | (2,222,490) | |||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Assets | ||||
Accounts receivable | 154,168 | |||
Deferred tax assets | (33,303) | |||
Contract assets | 53,084 | |||
Liabilities | ||||
Deferred revenue | (265,094) | |||
Contract liabilities | 262,549 | |||
PPDAI Group Inc. Shareholders' equity : | ||||
Accumulated deficit | ¥ 176,494 | ¥ 176,494 |
Summary of Significant Accou_16
Summary of Significant Accounting Policies - Impact to the Consolidated Statement of Comprehensive Income (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Revenue | ¥ 4,287,565 | $ 623,600 | ¥ 3,895,846 | ¥ 1,208,674 |
Accounting Standards Update 2014-09 [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Revenue | 4,218,946 | |||
Loan facilitation service fees [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Revenue | 2,919,234 | 424,585 | 2,843,287 | 911,448 |
Loan facilitation service fees [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Revenue | 2,919,234 | |||
Post-facilitation service fees [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Revenue | 922,797 | 134,215 | 668,819 | 126,823 |
Post-facilitation service fees [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Revenue | 922,797 | |||
Other Revenue [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Revenue | 376,915 | $ 54,820 | ¥ 491,400 | ¥ 170,403 |
Other Revenue [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Revenue | 376,915 | |||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Revenue | 3,707,869 | |||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Loan facilitation service fees [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Revenue | 2,141,565 | |||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Post-facilitation service fees [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Revenue | 773,116 | |||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Other Revenue [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Revenue | 793,188 | |||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Revenue | 511,077 | |||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Loan facilitation service fees [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Revenue | 777,669 | |||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Post-facilitation service fees [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Revenue | 149,681 | |||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Other Revenue [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Revenue | ¥ (416,273) |
Summary of Significant Accou_17
Summary of Significant Accounting Policies - Disaggregation of Revenue (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Quality Assurance Program [Member] | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Changes in expected discretionary payment to IRF investors | ¥ 3,345,901 | ¥ 2,099,554 |
Without Quality Assurance Program [Member] | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Changes in expected discretionary payment to IRF investors | 941,664 | 1,796,292 |
Loan facilitation service fees [Member] | Quality Assurance Program [Member] | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Changes in expected discretionary payment to IRF investors | 2,404,178 | 1,467,806 |
Loan facilitation service fees [Member] | Without Quality Assurance Program [Member] | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Changes in expected discretionary payment to IRF investors | 515,056 | 1,375,481 |
Post-facilitation service fees [Member] | Quality Assurance Program [Member] | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Changes in expected discretionary payment to IRF investors | 678,518 | 348,489 |
Post-facilitation service fees [Member] | Without Quality Assurance Program [Member] | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Changes in expected discretionary payment to IRF investors | 244,279 | 320,330 |
Other Revenue [Member] | Quality Assurance Program [Member] | Investment Management Fees [Member] | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Changes in expected discretionary payment to IRF investors | 208,471 | 24,789 |
Other Revenue [Member] | Quality Assurance Program [Member] | Other Revenues [Member] | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Changes in expected discretionary payment to IRF investors | 54,734 | 258,470 |
Other Revenue [Member] | Without Quality Assurance Program [Member] | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Changes in expected discretionary payment to IRF investors | 68,619 | (107,660) |
Other Revenue [Member] | Without Quality Assurance Program [Member] | Other Revenues [Member] | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Changes in expected discretionary payment to IRF investors | ¥ 113,710 | ¥ 208,141 |
Significant Equity Transactio_3
Significant Equity Transactions and Acquisitions - Additional Information (Detail) ¥ in Millions | Nov. 10, 2017CNY (¥)Foundersshares | Oct. 31, 2017CNY (¥) | Aug. 31, 2017CNY (¥) | Dec. 31, 2017 | Nov. 10, 2017$ / sharesshares | Jun. 30, 2012shares |
Significant Equity Transactions And Acquisitions [Line Items] | ||||||
Common stock shares redesignated | 4,000,000 | |||||
HB Micro Lending Company [Member] | ||||||
Significant Equity Transactions And Acquisitions [Line Items] | ||||||
Percentage of voting rights | 60.00% | |||||
Acquisition date | Oct. 31, 2017 | |||||
American Depositary Shares [Member] | ||||||
Significant Equity Transactions And Acquisitions [Line Items] | ||||||
Net proceeds from initial public offering and private placement | ¥ | ¥ 253 | |||||
Share Purchase Agreement [Member] | HB Micro Lending Company [Member] | ||||||
Significant Equity Transactions And Acquisitions [Line Items] | ||||||
Percentage of common shares acquired | 32.00% | |||||
Cash consideration | ¥ | ¥ 48.2 | |||||
Equity Pledge Agreement [Member] | HB Micro Lending Company [Member] | ||||||
Significant Equity Transactions And Acquisitions [Line Items] | ||||||
Percentage of common shares acquired | 28.00% | |||||
Cash consideration | ¥ | ¥ 42 | |||||
Gf Sino Vest Fund Spc Star Six SP [Member] | ||||||
Significant Equity Transactions And Acquisitions [Line Items] | ||||||
Common stock shares redesignated | 4,000,000 | |||||
Number of founders | Founders | 4 | |||||
IPO [Member] | American Depositary Shares [Member] | ||||||
Significant Equity Transactions And Acquisitions [Line Items] | ||||||
Number of shares offered | 17,000,000 | |||||
Number of ordinary shares represented by each ADS | 5 | |||||
Share price | $ / shares | $ 13 | |||||
Private Placement [Member] | American Depositary Shares [Member] | ||||||
Significant Equity Transactions And Acquisitions [Line Items] | ||||||
Number of shares offered | 3,846,154 |
Significant Equity Transactio_4
Significant Equity Transactions and Acquisitions - Summary of Allocation of the Purchase Price (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | |
Identifiable liabilities assumed | |||
Goodwill | ¥ 50,411 | $ 7,332 | ¥ 50,411 |
HB Micro Lending Company [Member] | |||
Identifiable assets acquired | |||
Identifiable intangible asset | 63,760 | ||
Cash | 50,068 | ||
Other asset | 2,337 | ||
Identifiable liabilities assumed | |||
Deferred tax liability | (15,940) | ||
Other liability | (393) | ||
Goodwill | 50,411 | ||
Non-controlling interest | (60,097) | ||
Total purchase price | ¥ 90,146 | ||
Amortization years | Indefinite |
Loans Receivable, Net - Schedul
Loans Receivable, Net - Schedule of Loans Receivable Originated and Retained (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||||
Loans | ¥ 2,571,527 | ¥ 729,464 | ||
Allowance for loan losses | (240,419) | (47,670) | ¥ (1,084) | ¥ (5,912) |
Loans receivable, net | ¥ 2,331,108 | ¥ 681,794 |
Loans Receivable, Net - Sched_2
Loans Receivable, Net - Schedule of Allowance for Loan Losses (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Receivables [Abstract] | |||
Beginning balance | ¥ 47,670 | ¥ 1,084 | ¥ 5,912 |
Current period provision | 204,442 | 65,299 | 44,178 |
Current period reversal | (11,693) | (18,713) | (9,473) |
Release upon derecognition of loans receivable associated with a disposed subsidiary | (23,250) | ||
Release upon disposal of loans receivable | (16,283) | ||
Ending balance | ¥ 240,419 | ¥ 47,670 | ¥ 1,084 |
Loans Receivable, Net - Sched_3
Loans Receivable, Net - Schedule of Aging of Loans (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due | ¥ 251,675 | ¥ 39,689 |
Current | 2,319,852 | 689,775 |
Total loans | 2,571,527 | 729,464 |
1-89 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due | 59,685 | 31,308 |
90 Days or More Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total past due | ¥ 191,990 | ¥ 8,381 |
Loans Receivable, Net - Sched_4
Loans Receivable, Net - Schedule of Total Assets, Liabilities of Trusts (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Loans And Leases Receivable Disclosure [Line Items] | |||
Restricted cash | ¥ 3,677,557 | $ 534,878 | ¥ 2,392,573 |
Loans receivable | 2,331,108 | 339,046 | 681,794 |
Total assets | 13,142,467 | 1,911,494 | 8,603,663 |
Taxes payable | 225,101 | 32,740 | 257,143 |
Accrued expenses and other liabilities | 222,519 | 32,364 | 211,614 |
Total liabilities | 7,156,729 | $ 1,040,903 | 4,921,475 |
YN Trust I, YN Trust II, Fotic Trust I, Fotic Trust II and Fotic Trust III [Member] | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Restricted cash | 303,667 | 44,775 | |
Accounts receivable | 10,000 | ||
Loans receivable | 2,507,878 | 647,793 | |
Total assets | 2,811,545 | 702,568 | |
Funds payable to investors of consolidated trusts | 2,808,506 | 736,963 | |
Taxes payable | 3,039 | ||
Accrued expenses and other liabilities | 10,000 | ||
Total liabilities | ¥ 2,811,545 | ¥ 746,963 |
Loans Receivable, Net - Sched_5
Loans Receivable, Net - Schedule of Results of Operations and Cash Flows of Trusts (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Loans And Leases Receivable Disclosure [Line Items] | ||||
Net profit attributable to PPDai Group Inc. | ¥ 2,469,074 | $ 359,112 | ¥ 1,082,983 | ¥ 501,490 |
Net increase in cash, cash equivalents and restricted cash | 1,010,017 | 146,900 | 3,076,139 | 845,309 |
Cash, cash equivalents and restricted cash at beginning of year | 4,283,704 | 623,039 | 1,207,565 | 362,256 |
Cash, cash equivalents and restricted cash at end of period | 5,293,721 | $ 769,939 | 4,283,704 | 1,207,565 |
YN Trust I, YN Trust II, Fotic Trust I, Fotic Trust II and Fotic Trust III [Member] | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Net revenue | (164,082) | (28,372) | (673) | |
Net profit attributable to PPDai Group Inc. | (44,396) | (743) | ||
Net cash provided by (used in) operating activities | (18,008) | (16,024) | 972 | |
Net cash used in investing activities | (1,624,784) | (615,971) | (29,289) | |
Net cash provided by financing activities | 1,901,684 | 675,654 | 29,433 | |
Net increase in cash, cash equivalents and restricted cash | 258,892 | 43,659 | 1,116 | |
Cash, cash equivalents and restricted cash at beginning of year | 44,775 | 1,116 | ||
Cash, cash equivalents and restricted cash at end of period | ¥ 303,667 | ¥ 44,775 | ¥ 1,116 |
Prepaid Expenses and Other As_3
Prepaid Expenses and Other Assets - Receivables, Prepayments and Other Assets (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Prepaid Expense and Other Assets [Abstract] | |||
Prepaid rental and deposits | ¥ 152,974 | ¥ 109,327 | |
Prepaid online marketing expenses | 25,975 | 13,496 | |
Advances | 19,517 | 13,229 | |
Interest receivables | 1,947 | 2,045 | |
Others | 21,380 | 7,602 | |
Prepaid expense and other assets | ¥ 221,793 | $ 32,259 | ¥ 145,699 |
Property, Equipment and Softw_3
Property, Equipment and Software, Net - Schedule of Property, Equipment and Software, Net (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | |
Property Plant And Equipment [Line Items] | ||||
Property, equipment and software, gross | ¥ 224,329 | ¥ 146,413 | ||
Less: Accumulated depreciation and amortization | [1] | (80,327) | (38,165) | |
Property, equipment and software, net | 144,002 | $ 20,944 | 108,248 | |
Computer and Electronic Equipment [Member] | ||||
Property Plant And Equipment [Line Items] | ||||
Property, equipment and software, gross | 126,842 | 81,059 | ||
Office Furniture and Equipment [Member] | ||||
Property Plant And Equipment [Line Items] | ||||
Property, equipment and software, gross | 13,843 | 12,498 | ||
Leasehold Improvements [Member] | ||||
Property Plant And Equipment [Line Items] | ||||
Property, equipment and software, gross | 55,575 | 45,268 | ||
Software [Member] | ||||
Property Plant And Equipment [Line Items] | ||||
Property, equipment and software, gross | ¥ 28,069 | ¥ 7,588 | ||
[1] | Depreciation and amortization expenses for the years ended December 31, 2016, 2017 and 2018 was RMB12,086, RMB22,555 and RMB42,162, respectively. |
Property, Equipment and Softw_4
Property, Equipment and Software, Net - Schedule of Property, Equipment and Software, Net (Parenthetical) (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation and amortization | ¥ 42,162 | $ 6,132 | ¥ 22,555 | ¥ 12,086 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Identifiable intangible asset | ¥ 68,880 | ¥ 63,760 | |
Less: Accumulated amortization and impairment | 0 | 0 | |
Intangible assets | 68,880 | 63,760 | |
Financing Guarantee License [Member] | |||
Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Identifiable intangible asset | [1] | 4,600 | |
Factoring License [Member] | |||
Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Identifiable intangible asset | [1] | 265 | |
Financial Leasing License [Member] | |||
Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Identifiable intangible asset | [1] | 255 | |
HB Micro Lending Company [Member] | |||
Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Identifiable intangible asset | ¥ 63,760 | ¥ 63,760 | |
[1] | The Group acquired Shenzhen Rongze Commerecial Co., Ltd, Zhongyu Financial Leasing and Zhongyisheng Financing Guarantee Co., Ltd in 2018. The acquisitions met the "single or similar asset threshold" and are not considered as business combination in accordance with ASC Topic 805. |
Accounts Receivable and Contr_3
Accounts Receivable and Contract Assets - Accounts Receivable and Related Allowance for Doubtful Accounts (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Receivables [Abstract] | |||
Accounts receivable | ¥ 935,195 | ¥ 17,773 | |
Allowance for doubtful accounts | (123,153) | 0 | |
Accounts receivable, net | ¥ 812,042 | $ 118,107 | ¥ 17,773 |
Accounts Receivable and Contr_4
Accounts Receivable and Contract Assets - Summary of Aging of Loans (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Past Due Finance Lease Receivables [Line Items] | ||
Total past due | ¥ 935,195 | ¥ 17,773 |
Current | 790,130 | ¥ 17,773 |
1-89 Days Past Due [Member] | ||
Past Due Finance Lease Receivables [Line Items] | ||
Total past due | 42,965 | |
90 Days or More Past Due [Member] | ||
Past Due Finance Lease Receivables [Line Items] | ||
Total past due | ¥ 102,100 |
Accounts Receivable and Contr_5
Accounts Receivable and Contract Assets - Schedule of Movement of Provision for Accounts Receivable (Detail) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2018CNY (¥) | |
Receivables [Abstract] | |
Beginning balance | ¥ 0 |
Impact due to adoption of new revenue standard | 16,501 |
Current period accrual | 106,652 |
Ending balance | ¥ 123,153 |
Accounts Receivable and Contr_6
Accounts Receivable and Contract Assets - Schedule of Contract with Customer Assets (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Contract with Customer, Asset and Liability [Line Items] | |||
Contract with customer, asset, Net | ¥ 112,103 | $ 16,305 | ¥ 0 |
Investment Advisory, Management and Administrative Service [Member] | |||
Contract with Customer, Asset and Liability [Line Items] | |||
Contract with customer, asset, Net | 110,321 | ||
Contract Acquisition Cost [Member] | |||
Contract with Customer, Asset and Liability [Line Items] | |||
Contract with customer, asset, Net | ¥ 1,782 |
Accounts Receivable and Contr_7
Accounts Receivable and Contract Assets - Schedule of Movement of Contract Assets (Detail) - 12 months ended Dec. 31, 2018 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Receivables [Abstract] | ||
Beginning balance | ¥ 0 | |
Impact due to adoption of new revenue standard | 53,084 | |
Recognition of investment management fee | 208,471 | |
Recognition of contract acquisition cost | 4,186 | |
Settlement upon maturity of investment programs | (146,483) | |
Settlement upon fulfilment of contract | (7,155) | |
Ending balance | ¥ 112,103 | $ 16,305 |
Employee Benefits - Additional
Employee Benefits - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan [Abstract] | |||
Amount of employee benefits charged | ¥ 143,078 | ¥ 128,554 | ¥ 64,334 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities - Schedule of Accrued Expenses and Other Liabilities (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Accrued Expenses And Other Liabilities [Abstract] | |||
Accrued marketing expense | ¥ 113,568 | ¥ 105,544 | |
Accrued payment channel surcharges | 25,728 | 26,053 | |
Accrued professional service fee | 31,446 | 21,333 | |
Accrued technical services expense | 16,510 | 16,854 | |
Management fee payable to trust administrator | 10,000 | ||
Payable for purchase of property, equipment and software | 917 | 6,585 | |
Others | 34,350 | 25,245 | |
Total accrued expenses and other liabilities | ¥ 222,519 | $ 32,364 | ¥ 211,614 |
Related Party Balances and Tr_3
Related Party Balances and Transactions - Summary of Amount Incurred by the Group (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
PP Credit Data Service Shanghai Company Limited [Member] | Data Collection Service [Member] | |||
Related Party Transaction [Line Items] | |||
Data collection service expense | ¥ 109,666 | ¥ 84,362 | ¥ 38,297 |
Related Party Balances and Tr_4
Related Party Balances and Transactions - Summary of Expenses Paid on Behalf of Related Party (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
PP Credit Data Service Shanghai Company Limited [Member] | |||
Related Party Transaction [Line Items] | |||
Expenses paid on behalf of related party | ¥ 13,526 |
Related Party Balances and Tr_5
Related Party Balances and Transactions - Summary of Amounts Due to Related Party (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Related Party Transaction [Line Items] | ||
Due to related parties | ¥ 11,972 | |
PP Credit Data Service Shanghai Company Limited [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | ¥ 11,972 |
Related Party Balances and Tr_6
Related Party Balances and Transactions - Summary of Loan Extended to Related Party (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Jan. 31, 2017CNY (¥) |
Related Party Transaction [Line Items] | ||||
Due from related parties | ¥ 2,830 | $ 412 | ||
Service Agreements [Member] | PP Credit Data Service Shanghai Company Limited [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due from related parties | ¥ 2,830 | ¥ 11,000 |
Related Party Balances and Tr_7
Related Party Balances and Transactions - Additional Information (Detail) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Nov. 30, 2016CNY (¥) | Apr. 30, 2016CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Jan. 31, 2017CNY (¥) | |
Related Party Transaction [Line Items] | |||||||
Loan agreement amount with related party | ¥ 2,830 | $ 412 | |||||
Service agreement amount due from related party | ¥ 11,972 | ||||||
PP Credit Data Service Shanghai Company Limited [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Payable due | ¥ 11,000 | ||||||
Service agreement amount due from related party | 11,972 | ||||||
Loan Agreement [Member] | PP Credit Data Service Shanghai Company Limited [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Loan agreement amount with related party | ¥ 5,000 | ¥ 6,000 | |||||
Interest on loan agreement | 0.00% | 0.00% | |||||
Term of agreement | 1 year | 1 year | |||||
Service Agreements [Member] | PP Credit Data Service Shanghai Company Limited [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Loan agreement amount with related party | ¥ 2,830 | ¥ 11,000 | |||||
Service agreement amount with related party | $ | $ 3,286 | ||||||
Service agreement amount due from related party | $ | 1,000 | ||||||
Prepayment data collection service fee amount | $ | $ 1,830 |
Taxation - Additional Informati
Taxation - Additional Information (Detail) $ in Thousands | Apr. 14, 2008 | Mar. 16, 2007 | Jan. 31, 2018 | Aug. 31, 2006 | Dec. 31, 2018CNY (¥) | Sep. 30, 2018CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax Disclosure [Line Items] | |||||||||||||
Profits tax rate | 6.00% | 6.00% | 20.00% | 9.00% | |||||||||
Cash paid for income taxes | ¥ 180,233,000 | $ 26,214 | ¥ 216,060,000 | ||||||||||
Preferential statutory tax rate for high and new technology enterprises | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | ||||||
Period of full tax exemption | 2 years | 2 years | 2 years | ||||||||||
Income taxes reduction percentage | 50.00% | ||||||||||||
Income tax reduction period | 3 years | ||||||||||||
Significant unrecognized tax benefits | ¥ 0 | ¥ 0 | ¥ 0 | ¥ 0 | |||||||||
Significant change in unrecognized tax benefits within 12 months | 0 | 0 | |||||||||||
Provision made for dividend withholding taxes | ¥ 0 | ||||||||||||
Reversal of income tax expense | 268,051,000 | ¥ 131,627,000 | ¥ 136,424,000 | ||||||||||
Tax loss carry-forward limitation period | The applicable carry-forward limitation period is 5 years under the PRC EIT law. | The applicable carry-forward limitation period is 5 years under the PRC EIT law. | |||||||||||
Subsidiaries [Member] | |||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||
Total tax loss carry forwards | ¥ 156,508,000 | ¥ 156,508,000 | |||||||||||
Earliest Tax Year [Member] | |||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||
Tax loss carry forwards, expiration year | 2019 | 2019 | |||||||||||
Latest Tax Year [Member] | |||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||
Tax loss carry forwards, expiration year | 2023 | 2023 | |||||||||||
PRC Subsidiary [Member] | |||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||
Statutory tax rate | 25.00% | ||||||||||||
Preferential statutory tax rate for high and new technology enterprises | 15.00% | ||||||||||||
Percentage of income tax rate for its global income | 25.00% | 25.00% | |||||||||||
Foreign investment enterprise tax withholding rate | 10.00% | 10.00% | |||||||||||
Dividend withholding tax | ¥ 0 | ||||||||||||
Micro Small Entities [Member] | |||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||
Statutory tax rate | 20.00% | ||||||||||||
Income taxes reduction percentage | 50.00% | ||||||||||||
Hong Kong [Member] | |||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||
Profits tax rate | 16.50% | 16.50% | |||||||||||
Cash paid for income taxes | ¥ 0 | ¥ 0 | |||||||||||
Estimated assessable profits tax | ¥ 0 | ¥ 0 | |||||||||||
Hong Kong [Member] | Maximum [Member] | |||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||
Foreign investment enterprise tax withholding rate | 5.00% | ||||||||||||
Hong Kong [Member] | PRC Subsidiary [Member] | Minimum [Member] | |||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||
Minimum foreign investor direct ownership percentage to be subject to maximum tax of 5% | 25.00% |
Taxation - Schedule of Current
Taxation - Schedule of Current and Deferred Portions of Income Tax Expense (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Current income tax expenses | ¥ 94,787 | ¥ 371,354 | ¥ 65,106 | |
Deferred income tax benefit (expense) | 56,419 | (96,643) | (16,839) | |
Total | ¥ 151,206 | $ 21,992 | ¥ 274,711 | ¥ 48,267 |
Taxation - Summary of Reconcili
Taxation - Summary of Reconciliation Between the Computed Expected Tax Expense (Benefit) Rate and the Effective Income Tax Rate (Detail) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Income Tax Disclosure [Abstract] | ||||
Statutory tax rate | 25.00% | 25.00% | 25.00% | |
Research and development tax credit | (2.00%) | (2.00%) | (2.00%) | |
Effect of tax holiday | [1] | (19.00%) | (6.00%) | (5.00%) |
Change in valuation allowance | (9.00%) | |||
Undeductable expenses | 2.00% | 2.00% | ||
Others | 1.00% | |||
Effective income tax rate | 6.00% | 20.00% | 9.00% | |
[1] | Although the subsidiary approved the Software Enterprise Status is entitled to enjoy full exemption from EIT for two years from 2017, it is also subject to the annual tax inspection which was finally settled in 2018. As a result, the Group reversed a total of RMB268,051 tax expenses in the fourth quarter of 2018 including RMB136,424 related to the tax expenses of 2017 and RMB131,627 related to the tax expenses for first three quarters of 2018, which were recorded as tax payable in the balance sheet. |
Taxation - Summary of Aggregate
Taxation - Summary of Aggregate Amount and Per Share Effect of Tax Holidays (Detail) - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Tax holiday effect | ¥ 460,333 | ¥ 153,908 | ¥ 30,012 |
Net income per share effect - Basic | ¥ 0.31 | ¥ 0.20 | ¥ 4.51 |
Net income per share effect - Diluted | ¥ 0.29 | ¥ 0.20 | ¥ 4.51 |
Taxation - Significant Componen
Taxation - Significant Components of Deferred Tax Assets (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||||
Contract liabilities | ¥ 63,733 | |||
Allowance for doubtful accounts and loan provision | 52,207 | ¥ 819 | ||
Net accumulated losses-carry forward | 38,851 | 18,530 | ||
Payroll and welfare payable and other temporary difference | 5,988 | 5,988 | ||
Deferred revenue | 38,436 | |||
Guarantee and quality assurance fund payable | 2,127 | 35,947 | ||
Accounts receivable | 34,030 | |||
Investor reserve fund | 16,149 | |||
Less: valuation allowance | (40,143) | (21,538) | ¥ (2,906) | ¥ (49,877) |
Total deferred tax assets | 122,763 | 128,361 | ||
Deferred tax liabilities: | ||||
Intangible assets arisen from business combination | (15,940) | (15,940) | ||
Contract assets | (16,815) | |||
Investor reserve funds | (23,287) | |||
Guarantee and quality assurance fund payable | (41,799) | |||
Change in fair value for short-term investment | (2,223) | |||
Total deferred tax liabilities | (100,064) | (15,940) | ||
Net deferred tax assets | ¥ 22,699 | ¥ 112,421 |
Taxation - Movement of Valuatio
Taxation - Movement of Valuation Allowances (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
At beginning of year | ¥ 21,538 | ¥ 2,906 | ¥ 49,877 |
Current year additions | 22,585 | 18,688 | 1,037 |
Current year reversals | (3,980) | (56) | (48,008) |
At end of year | ¥ 40,143 | ¥ 21,538 | ¥ 2,906 |
Disposal of Subsidiary - Additi
Disposal of Subsidiary - Additional Information (Detail) - Consolidated VIEs' principal subsidiaries [Member] - Shanghai Hepai Investment Management Company Limited [Member] - Beijing Paipairongxin Investment Consulting Co., Ltd [Member] - Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] - CNY (¥) ¥ in Thousands | 1 Months Ended | 12 Months Ended | |
Feb. 28, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Percentage of direct or indirect ownership | 100.00% | ||
Consideration in the form of a note in return for ownership interest transferred | ¥ 20,000 | ||
Gain on disposal of subsidiary | 20,611 | ||
First installment received | ¥ 14,000 | ||
Remaining installment received | ¥ 6,000 | ||
Net liability on disposal | ¥ 611 |
Ordinary shares and treasury _2
Ordinary shares and treasury stock - Additional Information (Detail) $ / shares in Units, ¥ in Thousands, $ in Thousands | Nov. 10, 2017CNY (¥)shares | Nov. 10, 2017USD ($)$ / sharesshares | May 31, 2018shares | Jun. 30, 2012USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017CNY (¥)shares | Dec. 17, 2018shares | Oct. 20, 2017$ / shares |
Class of Stock [Line Items] | |||||||||
Authorized share capital | $ | $ 50,000 | ||||||||
Ordinary and preferred shares authorized | 5,000,000,000 | ||||||||
Ordinary stock, authorized | 4,266,159,600 | ||||||||
Ordinary stock, par value | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.00001 | ||||||
Preferred stock, shares authorized | 733,840,400 | ||||||||
Common stock shares redesignated | 4,000,000 | ||||||||
Issuance of ordinary shares upon Initial Public Offering ("IPO") and Concurrent Private Placement ("CPP"), net of expense | ¥ | ¥ 1,677,222 | ||||||||
Ordinary stock, shares issued | 1,533,071,169 | ||||||||
Stock repurchased, Shares | 60,306,360 | 60,306,360 | |||||||
Stock Repurchased, Value | ¥ | ¥ 452,262 | ||||||||
Treasury Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Stock repurchased, Shares | (60,306,360) | (60,306,360) | |||||||
Stock Repurchased, Value | ¥ | ¥ 452,262 | ||||||||
Exercise of share-based compensation plans, shares | 44,005,360 | 44,005,360 | |||||||
Shares not in use and not outstanding | 46,301,000 | ||||||||
Class A Ordinary Shares [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Ordinary stock, authorized | 10,000,000,000 | 10,000,000,000 | |||||||
Ordinary stock, par value | $ / shares | $ 0.00001 | ||||||||
Preferred stock shares converted and designated | 1 | ||||||||
Common stock shares redesignated | 1 | ||||||||
Ordinary stock, shares issued | 30,000,000 | 874,071,169 | 842,071,169 | ||||||
Class B Ordinary Shares [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Ordinary stock, authorized | 10,000,000,000 | 10,000,000,000 | |||||||
Ordinary stock, par value | $ / shares | $ 0.00001 | ||||||||
Preferred stock shares converted and designated | 1 | ||||||||
Ordinary stock, shares issued | 659,000,000 | 661,000,000 | 2,000,000 | ||||||
American Depositary Shares [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Ordinary stock, shares issued | 400,000 | ||||||||
Ordinary stock, shares converted | 6,000,000 | ||||||||
Stock repurchased, Shares | 12,061,272 | 12,061,272 | |||||||
Stock Repurchased, Value | ¥ 452,262 | $ 67,622 | |||||||
Weighted Average Price per shares | $ / shares | $ 5.61 | ||||||||
IPO [Member] | Class A Ordinary Shares [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
"Issuance of ordinary shares upon Initial Public Offering (""IPO"") and Concurrent Private Placement (""CPP""), net of expense, Shares " | 85,000,000 | 85,000,000 | |||||||
Common stock shares sold price per share | $ / shares | $ 2.6 | ||||||||
Issuance of ordinary shares upon Initial Public Offering ("IPO") and Concurrent Private Placement ("CPP"), net of expense | ¥ 1,464,800 | $ 221,000 | |||||||
IPO [Member] | American Depositary Shares [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
"Issuance of ordinary shares upon Initial Public Offering (""IPO"") and Concurrent Private Placement (""CPP""), net of expense, Shares " | 17,000,000 | 17,000,000 | |||||||
Common stock shares sold price per share | $ / shares | $ 13 | ||||||||
Private Placement [Member] | Class A Ordinary Shares [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
"Issuance of ordinary shares upon Initial Public Offering (""IPO"") and Concurrent Private Placement (""CPP""), net of expense, Shares " | 19,230,769 | 19,230,769 | |||||||
Issuance of ordinary shares upon Initial Public Offering ("IPO") and Concurrent Private Placement ("CPP"), net of expense | ¥ 331,400 | $ 50,000 | |||||||
Private Placement [Member] | American Depositary Shares [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
"Issuance of ordinary shares upon Initial Public Offering (""IPO"") and Concurrent Private Placement (""CPP""), net of expense, Shares " | 3,846,154 | 3,846,154 |
Redeemable Convertible Prefer_2
Redeemable Convertible Preferred Shares - Additional Information (Detail) $ / shares in Units, $ in Thousands | Oct. 20, 2017$ / sharesshares | Feb. 09, 2015USD ($)$ / sharesshares | Feb. 13, 2014USD ($)$ / sharesshares | Sep. 13, 2012USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2018$ / shares | Dec. 31, 2017$ / shares | Dec. 31, 2016$ / shares | Jun. 30, 2012$ / shares |
Temporary Equity [Line Items] | |||||||||||
Convertible redeemable preferred shares, issued, price per share | $ / shares | $ 0.7200 | $ 1.4220 | $ 0.2671 | ||||||||
Share split, description | Each of ordinary share and preferred share of the Company was subdivided into 100 shares at a par value of US$0.00001 | ||||||||||
Preferred stock shares converted and designated | 100 | ||||||||||
Ordinary shares, par value | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.00001 | ||||||||
Preferred shares, par value | $ / shares | $ 0.00001 | ||||||||||
Preferred shares accretion recognized | ¥ | ¥ 3,073,471 | ¥ 562,022 | |||||||||
Series A Convertible Redeemable Preferred Shares [Member] | |||||||||||
Temporary Equity [Line Items] | |||||||||||
Convertible redeemable preferred shares, issued | shares | 2,850,000 | ||||||||||
Proceeds from issuance of convertible redeemable preferred shares | $ | $ 4,560 | ||||||||||
Convertible redeemable preferred shares, issued, price per share | $ / shares | $ 1.60 | ||||||||||
Convertible redeemable preferred shares, outstanding | shares | 285,000,000 | ||||||||||
Series B Convertible Redeemable Preferred Shares [Member] | |||||||||||
Temporary Equity [Line Items] | |||||||||||
Convertible redeemable preferred shares, issued | shares | 2,142,857 | ||||||||||
Proceeds from issuance of convertible redeemable preferred shares | $ | $ 15,000 | ||||||||||
Convertible redeemable preferred shares, issued, price per share | $ / shares | $ 7 | ||||||||||
Convertible redeemable preferred shares, outstanding | shares | 214,285,700 | ||||||||||
Series C Convertible Redeemable Preferred Shares [Member] | |||||||||||
Temporary Equity [Line Items] | |||||||||||
Convertible redeemable preferred shares, issued | shares | 2,345,547 | ||||||||||
Proceeds from issuance of convertible redeemable preferred shares | $ | $ 46,667 | ||||||||||
Convertible redeemable preferred shares, issued, price per share | $ / shares | $ 19.90 | ||||||||||
Convertible redeemable preferred shares, outstanding | shares | 234,554,700 |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Detail) ¥ in Thousands | Oct. 20, 2017 | Oct. 31, 2017shares | Dec. 31, 2018$ / shares | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2017$ / shares | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2016CNY (¥)shares | Dec. 31, 2018CNY (¥)shares | Apr. 30, 2017shares | Dec. 31, 2016$ / shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Reserved stock option | 221,917,800 | |||||||||
Share split, conversion ratio | 100 | |||||||||
Share based compensation expenses | ¥ | ¥ 44,490 | ¥ 65,324 | ¥ 0 | |||||||
Unrecognized compensation cost | ¥ | ¥ 45,044 | |||||||||
Weighted average recognition period | 2 years 2 months 1 day | |||||||||
Per Share fair value of ordinary shares | $ / shares | $ 0.7200 | $ 1.4220 | $ 0.2671 | |||||||
Weighted average grant-date per-share fair value of options granted | $ / shares | $ 0.7595 | $ 0.2599 | ||||||||
2011 Share Incentive Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Maximum number of shares issued under share incentive plan | 1,000,000,000 | |||||||||
Share split, conversion ratio | 100 | |||||||||
Paifenle Plan [Member] | Common Stock [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Reserved stock option | 15,000,000 | |||||||||
Paifenle Plan [Member] | Discontinued Most of Operation of Shanghai Paifenle Internet Technology Company Limited [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share based compensation expenses | ¥ | ¥ 40,828 | |||||||||
Employee Stock Option [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period | 12,039,050 | 26,610,000 | 49,170,000 | |||||||
Employee Stock Option [Member] | 2011 Share Incentive Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period | 7,670,000 | |||||||||
Share-based compensation arrangement by share-based payment award, award vesting period | 4 years | |||||||||
Employee Stock Option [Member] | Paifenle Plan [Member] | Officer and Employees [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Reserved stock option | 11,650,000 | |||||||||
Restricted Stock Units (RSUs) [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period | 7,822,280 | |||||||||
Share based compensation expenses | ¥ | ¥ 5,829,000 | ¥ 0 | ¥ 0 | |||||||
Weighted average recognition period | 4 years 4 months 24 days | |||||||||
Unrecognized compensation cost of unvested restricted shares | ¥ | ¥ 63,400 | |||||||||
Restricted Stock Units (RSUs) [Member] | 2011 Share Incentive Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based compensation arrangement by share-based payment award, award vesting period | 4 years | |||||||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period | 7,822,280 | |||||||||
Restricted Stock Units (RSUs) [Member] | Paifenle Plan [Member] | Officer and Employees [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Reserved stock option | 3,350,000 | |||||||||
IPO [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share based compensation expenses | ¥ | ¥ 61,544 |
Share-based Compensation - Sche
Share-based Compensation - Schedule of Stock Option Shares Activities (Detail) - Employee Stock Option [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options Outstanding, Beginning Balance | 131,641,800 | 112,570,000 | 66,860,000 | |
Options, Granted | 12,039,050 | 26,610,000 | 49,170,000 | |
Options, Forfeited | (3,722,285) | (7,538,200) | (3,460,000) | |
Options,Expired | (300,000) | |||
Options,Exercised | (44,005,360) | |||
Options Outstanding, Ending Balance | 95,653,205 | 131,641,800 | 112,570,000 | 66,860,000 |
Options Outstanding, Vested and expected to vest | 94,736,802 | |||
Outstanding, Weighted Average Exercise Price, Beginning balance | $ 0.1108 | $ 0.0650 | $ 0.0201 | |
Options Outstanding, Exercisable | 42,887,580 | |||
Granted, Weighted Average Exercise Price | $ 0.8942 | 0.3020 | 0.1260 | |
Forfeited, Weighted Average Exercise Price | 0.1930 | 0.0967 | 0.0464 | |
Expired, Weighted Average Exercise Price | 0.0040 | |||
Exercised, Weighted Average Exercise Price | 0.0543 | |||
Outstanding, Weighted Average Exercise Price, Ending balance | 0.2214 | $ 0.1108 | $ 0.0650 | $ 0.0201 |
Vested and expected to vest, Weighted Average Exercise Price | 0.2213 | |||
Exercisable, Weighted Average Exercise Price | $ 0.0919 | |||
Outstanding, Weighted Average Remaining Contractual Life | 2 years 2 months 1 day | 2 years 8 months 8 days | 3 years 4 months 13 days | 3 years 7 months 28 days |
Vested and expected to vest, Weighted Average Remaining Contractual Life | 2 years 2 months 1 day | |||
Exercisable, Weighted Average Remaining Contractual Life | 1 year 5 months 26 days | |||
Outstanding, Aggregate Intrinsic Value | $ 47,689 | $ 172,618 | $ 22,688 | $ 6,766 |
Vested and expected to vest, Aggregate Intrinsic Value | 47,245 | |||
Exercisable, Aggregate Intrinsic Value | $ 26,938 |
Share-based Compensation - Sc_2
Share-based Compensation - Schedule of Fair Value of Each Option Granted Estimated Using Binomial Model Assumption (Detail) - Incentive Shares Plan [Member] - ¥ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate, minimum | 2.52% | 1.97% | 1.27% |
Risk-free interest rate, maximum | 2.75% | 2.04% | 1.35% |
Expected life (in years) | 5 years | 5 years | 5 years |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility, minimum | 37.74% | 39.00% | 43.30% |
Expected volatility, maximum | 38.74% | 41.90% | 44.00% |
Exercise multiple | ¥ 2.8 | ¥ 2.8 | |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise multiple | ¥ 2.2 | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise multiple | ¥ 2.8 |
Share-based compensation - Summ
Share-based compensation - Summary of Restricted Stock Units Activities Under All Incentive Plans (Detail) - Restricted Stock Units (RSUs) [Member] | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of RSUs unvested at beginning of period | shares | 0 |
Number of RSUs, granted | shares | 7,822,280 |
Number of RSUs, vested | shares | 0 |
Number of RSUs, forfeited | shares | (270,800) |
Number of RSUs unvested at end of period | shares | 7,551,480 |
Weighted-average grant date fair value at beginning of period | $ / shares | $ 0 |
Weighted-average grant date fair value, granted | $ / shares | 1.4375 |
Weighted-average grant date fair value, vested | $ / shares | 0 |
Weighted-average grant date fair value, forfeited | $ / shares | 1.3233 |
Weighted-average grant date fair value at end of period | $ / shares | $ 1.4416 |
Net income (loss) per share - A
Net income (loss) per share - Additional Information (Detail) - shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Stock Option [Member] | ||
Earnings Per Share [Line Items] | ||
Shares that anti-dilutive and excluded from the calculation of diluted net loss per share on weighted average basis | 11,302,024 | 0 |
Series A Series B and Series C Preference Shares Convertible into Ordinary Shares [Member] | ||
Earnings Per Share [Line Items] | ||
Shares that anti-dilutive and excluded from the calculation of diluted net loss per share on weighted average basis | 631,303,796 | 733,840,400 |
Net income (loss) per share - S
Net income (loss) per share - Schedule of Computation of Earnings Per Share (Detail) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | Dec. 31, 2016CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Net profit attributable to PPDai Group Inc. | ¥ 2,469,074 | $ 359,112 | ¥ 1,082,983 | ¥ 501,490 |
Accretion on convertible redeemable preferred shares redemption value | (3,073,471) | (562,022) | ||
Net income (loss) attributable to ordinary shareholders-Basic and diluted | ¥ 2,469,074 | ¥ (1,990,488) | ¥ (60,532) | |
Denominator: | ||||
Denominator for basic and diluted loss per share Weighted-average ordinary shares outstanding | shares | 0 | 0 | 0 | 0 |
Basic | shares | 1,498,780,165 | 1,498,780,165 | 779,804,270 | 665,000,000 |
Diluted | shares | 1,599,592,231 | 1,599,592,231 | 779,804,270 | 665,000,000 |
Net income (loss) per ADS - Basic | (per share) | ¥ 1.6474 | $ 0.2396 | ¥ (2.5525) | ¥ (0.0910) |
Net income (loss) per ADS - Diluted | (per share) | 1.5436 | 0.2245 | ¥ (2.5525) | ¥ (0.0910) |
Series A Convertible Redeemable Preferred Shares [Member] | ||||
Numerator: | ||||
Accretion on convertible redeemable preferred shares redemption value | ¥ (1,237,274) | ¥ (236,662) | ||
Series B Convertible Redeemable Preferred Shares [Member] | ||||
Numerator: | ||||
Accretion on convertible redeemable preferred shares redemption value | (905,861) | (171,106) | ||
Series C Convertible Redeemable Preferred Shares [Member] | ||||
Numerator: | ||||
Accretion on convertible redeemable preferred shares redemption value | ¥ (930,336) | ¥ (154,254) | ||
American Depositary Shares [Member] | ||||
Denominator: | ||||
Net income (loss) per ADS - Basic | (per share) | 8.2369 | 1.1980 | ¥ (12.7627) | ¥ (0.4551) |
Net income (loss) per ADS - Diluted | (per share) | ¥ 7.7178 | $ 1.1225 | ¥ (12.7627) | ¥ (0.4551) |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Lease Payments under Non-Cancellable Leases (Detail) ¥ in Thousands | Dec. 31, 2018CNY (¥) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2019 | ¥ 58,406 |
2020 | 45,077 |
2021 | 40,221 |
2022 | 14,826 |
Thereafter | 640 |
Total | ¥ 159,170 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rental expense | ¥ 62,143,000 | ¥ 41,951,000 | ¥ 18,923,000 |
Capital and other significant commitments | ¥ 0 | ¥ 0 |
Restricted Net Assets - Additio
Restricted Net Assets - Additional Information (Detail) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2018CNY (¥) | |
Restrictions for Consolidated and Unconsolidated Subsidiaries [Abstract] | |
Percentage of annual appropriations net of tax income prior to payment of dividends as the statutory general reserve | 10.00% |
Restricted net assets | ¥ 3,634,673 |
Percentage of restricted net assets | 60.70% |
Condensed Financial Informati_3
Condensed Financial Information of the Parent Company - Schedule of Condensed Balance Sheet (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) |
Assets | ||||||
Cash and cash equivalents | ¥ 1,616,164 | $ 235,061 | ¥ 1,891,131 | |||
Prepaid expenses and other assets | 221,793 | 32,259 | 145,699 | |||
Investment in and advances to subsidiaries | 81,000 | 6,000 | ||||
Total assets | 13,142,467 | 1,911,494 | 8,603,663 | |||
Liabilities and Shareholders' Equity | ||||||
Accrued expenses and other liabilities | 222,519 | 32,364 | 211,614 | |||
Total liabilities | 7,156,729 | 1,040,903 | 4,921,475 | |||
Shareholders' equity : | ||||||
Additional paid-in capital | 5,896,017 | 857,540 | 5,951,044 | |||
Treasury stock | (332,121) | (48,305) | ||||
Non-controlling Interest | 61,856 | 8,997 | 60,021 | |||
Statutory reserves | 256,006 | 37,235 | 55,090 | |||
Accumulated other comprehensive income | 58,210 | 8,466 | 14,917 | |||
Retained earnings (accumulated deficit) | 45,668 | 6,643 | (2,398,984) | |||
Total shareholders' equity | 5,985,738 | 870,591 | 3,682,188 | ¥ (438,423) | ¥ (317,393) | |
Total liabilities and shareholders' equity | 13,142,467 | 1,911,494 | 8,603,663 | |||
Parent Company [Member] | ||||||
Assets | ||||||
Cash and cash equivalents | 461,054 | 67,058 | 934,758 | $ 135,955 | ¥ 3,420 | ¥ 3,380 |
Prepaid expenses and other assets | 4,798 | 698 | 10,350 | |||
Investment in and advances to subsidiaries | 5,476,363 | 796,504 | 2,687,270 | |||
Total assets | 5,942,215 | 864,260 | 3,632,378 | |||
Liabilities and Shareholders' Equity | ||||||
Accrued expenses and other liabilities | 18,333 | 2,666 | 10,211 | |||
Total liabilities | 18,333 | 2,666 | 10,211 | |||
Shareholders' equity : | ||||||
Additional paid-in capital | 5,896,017 | 857,540 | 5,951,044 | |||
Treasury stock | (332,121) | (48,305) | ||||
Non-controlling Interest | 0 | 0 | 0 | |||
Statutory reserves | 256,006 | 37,235 | 55,090 | |||
Accumulated other comprehensive income | 58,210 | 8,466 | 14,917 | |||
Retained earnings (accumulated deficit) | 45,668 | 6,643 | (2,398,984) | |||
Total shareholders' equity | 5,923,882 | 861,594 | 3,622,167 | |||
Total liabilities and shareholders' equity | 5,942,215 | 864,260 | 3,632,378 | |||
Class A Ordinary Shares [Member] | ||||||
Shareholders' equity : | ||||||
Class A ordinary shares (US$0.00001 par value; 10,000,000,000 shares authorized as of December 31, 2017 and 2018; 842,071,169 and 874,071,169 issued as of December 31, 2017 and 2018; 842,071,169 and 827,770,169 outstanding as of December 31, 2017 and 2018) | 58 | 8 | 56 | |||
Class A Ordinary Shares [Member] | Parent Company [Member] | ||||||
Shareholders' equity : | ||||||
Class A ordinary shares (US$0.00001 par value; 10,000,000,000 shares authorized as of December 31, 2017 and 2018; 842,071,169 and 874,071,169 issued as of December 31, 2017 and 2018; 842,071,169 and 827,770,169 outstanding as of December 31, 2017 and 2018) | 58 | 8 | 56 | |||
Class B Ordinary Shares [Member] | ||||||
Shareholders' equity : | ||||||
Class A ordinary shares (US$0.00001 par value; 10,000,000,000 shares authorized as of December 31, 2017 and 2018; 842,071,169 and 874,071,169 issued as of December 31, 2017 and 2018; 842,071,169 and 827,770,169 outstanding as of December 31, 2017 and 2018) | 44 | 7 | 44 | |||
Class B Ordinary Shares [Member] | Parent Company [Member] | ||||||
Shareholders' equity : | ||||||
Class A ordinary shares (US$0.00001 par value; 10,000,000,000 shares authorized as of December 31, 2017 and 2018; 842,071,169 and 874,071,169 issued as of December 31, 2017 and 2018; 842,071,169 and 827,770,169 outstanding as of December 31, 2017 and 2018) | ¥ 44 | $ 7 | ¥ 44 |
Condensed Financial Informati_4
Condensed Financial Information of the Parent Company - Schedule of Condensed Balance Sheet (Parenthetical) (Detail) - $ / shares | Dec. 31, 2018 | Dec. 17, 2018 | May 31, 2018 | Dec. 31, 2017 | Oct. 20, 2017 | Jun. 30, 2012 |
Consolidated Balance Sheet Statements Captions [Line Items] | ||||||
Ordinary stock, par value | $ 0.00001 | $ 0.00001 | $ 0.00001 | |||
Ordinary stock, authorized | 4,266,159,600 | |||||
Ordinary stock, shares issued | 1,533,071,169 | |||||
Class A Ordinary Shares [Member] | ||||||
Consolidated Balance Sheet Statements Captions [Line Items] | ||||||
Ordinary stock, par value | $ 0.00001 | |||||
Ordinary stock, authorized | 10,000,000,000 | 10,000,000,000 | ||||
Ordinary stock, shares issued | 874,071,169 | 30,000,000 | 842,071,169 | |||
Ordinary Stock, shares outstanding | 827,770,169 | 842,071,169 | ||||
Class B Ordinary Shares [Member] | ||||||
Consolidated Balance Sheet Statements Captions [Line Items] | ||||||
Ordinary stock, par value | $ 0.00001 | |||||
Ordinary stock, authorized | 10,000,000,000 | 10,000,000,000 | ||||
Ordinary stock, shares issued | 659,000,000 | 2,000,000 | 661,000,000 | |||
Ordinary Stock, shares outstanding | 659,000,000 | 661,000,000 | ||||
Parent Company [Member] | ||||||
Consolidated Balance Sheet Statements Captions [Line Items] | ||||||
Treasury stock,shares | 46,301,000 | 0 | ||||
Parent Company [Member] | Class A Ordinary Shares [Member] | ||||||
Consolidated Balance Sheet Statements Captions [Line Items] | ||||||
Ordinary stock, par value | $ 0.00001 | |||||
Ordinary stock, authorized | 10,000,000,000 | 10,000,000,000 | ||||
Ordinary stock, shares issued | 874,071,169 | 842,071,169 | ||||
Ordinary Stock, shares outstanding | 827,770,169 | 842,071,169 | ||||
Parent Company [Member] | Class B Ordinary Shares [Member] | ||||||
Consolidated Balance Sheet Statements Captions [Line Items] | ||||||
Ordinary stock, par value | $ 0.00001 | |||||
Ordinary stock, authorized | 10,000,000,000 | 10,000,000,000 | ||||
Ordinary stock, shares issued | 659,000,000 | 661,000,000 | ||||
Ordinary Stock, shares outstanding | 659,000,000 | 661,000,000 |
Condensed Financial Informati_5
Condensed Financial Information of the Parent Company - Schedule of Comprehensive Loss (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Operating expenses | ||||
Sales and marketing expenses | ¥ (710,754) | $ (103,375) | ¥ (788,291) | ¥ (352,952) |
General and administrative expenses | (701,353) | (102,008) | (588,664) | (237,808) |
Profits from operations | ||||
Other income, net | 148,356 | 21,578 | 36,531 | 13,684 |
Net profit | 2,469,074 | 359,112 | 1,082,983 | 501,490 |
Accretion on convertible redeemable preferred shares to redemption value | (3,073,471) | (562,022) | ||
Net profit(loss) attributable to ordinary shareholders | 2,469,074 | 359,112 | (1,990,488) | (60,532) |
Parent Company [Member] | ||||
Operating expenses | ||||
Sales and marketing expenses | (2) | |||
General and administrative expenses | (57,448) | (8,355) | (71,189) | (8,605) |
Profits from operations | ||||
Other income, net | 21,183 | 3,081 | 2,515 | 8 |
Share of profit of subsidiaries | 2,505,341 | 364,386 | 1,151,657 | 510,087 |
Net profit | 2,469,074 | 359,112 | 1,082,983 | 501,490 |
Net profit(loss) attributable to ordinary shareholders | ¥ 2,469,074 | $ 359,112 | (1,990,488) | (60,532) |
Series A Convertible Redeemable Preferred Shares [Member] | ||||
Profits from operations | ||||
Accretion on convertible redeemable preferred shares to redemption value | (1,237,274) | (236,662) | ||
Series A Convertible Redeemable Preferred Shares [Member] | Parent Company [Member] | ||||
Profits from operations | ||||
Accretion on convertible redeemable preferred shares to redemption value | (1,237,274) | (236,662) | ||
Series B Convertible Redeemable Preferred Shares [Member] | ||||
Profits from operations | ||||
Accretion on convertible redeemable preferred shares to redemption value | (905,861) | (171,106) | ||
Series B Convertible Redeemable Preferred Shares [Member] | Parent Company [Member] | ||||
Profits from operations | ||||
Accretion on convertible redeemable preferred shares to redemption value | (905,861) | (171,106) | ||
Series C Convertible Redeemable Preferred Shares [Member] | ||||
Profits from operations | ||||
Accretion on convertible redeemable preferred shares to redemption value | (930,336) | (154,254) | ||
Series C Convertible Redeemable Preferred Shares [Member] | Parent Company [Member] | ||||
Profits from operations | ||||
Accretion on convertible redeemable preferred shares to redemption value | ¥ (930,336) | ¥ (154,254) |
Condensed Financial Informati_6
Condensed Financial Information of the Parent Company - Schedule of Cash Flow Statement (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash provided by/(used in) operating activities | ¥ 1,884,956 | $ 274,153 | ¥ 3,409,451 | ¥ 1,088,227 |
Net cash used in investing activities | (1,447,013) | (210,460) | (2,450,800) | (684,112) |
Net cash provided by (used in) financing activities | 530,097 | 77,100 | 2,132,933 | 438,701 |
Cash, cash equivalents and restricted cash-beginning of year | 1,891,131 | |||
Cash, cash equivalents and restricted cash-end of year | 1,616,164 | 235,061 | 1,891,131 | |
Parent Company [Member] | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash provided by/(used in) operating activities | 12,111 | 1,761 | (12,178) | 40 |
Net cash used in investing activities | (69,660) | (10,132) | (720,259) | |
Net cash provided by (used in) financing activities | (438,253) | (63,741) | 1,677,222 | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 22,098 | 3,215 | (13,447) | |
Net increase (decrease) in cash, cash equivalents and restricted cash | (473,704) | (68,897) | 931,338 | 40 |
Cash, cash equivalents and restricted cash-beginning of year | 934,758 | 135,955 | 3,420 | 3,380 |
Cash, cash equivalents and restricted cash-end of year | ¥ 461,054 | $ 67,058 | ¥ 934,758 | ¥ 3,420 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - $ / shares | Mar. 14, 2019 | Mar. 31, 2019 | May 31, 2018 | Dec. 31, 2018 | Dec. 17, 2018 | Dec. 31, 2017 |
Subsequent Event [Line Items] | ||||||
Ordinary stock, shares issued | 1,533,071,169 | |||||
Class A Ordinary Shares [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Ordinary stock, shares issued | 30,000,000 | 874,071,169 | 842,071,169 | |||
American Depositary Shares [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Ordinary stock, shares issued | 400,000 | |||||
Ordinary stock, shares converted | 6,000,000 | |||||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Dividend , per share | $ 0.19 | |||||
Dividends Payable, date to be paid | Apr. 26, 2019 | |||||
Dividends Payable, date of record | Apr. 5, 2019 | |||||
Subsequent Event [Member] | Class A Ordinary Shares [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Ordinary stock, shares issued | 17,000,000 | |||||
Subsequent Event [Member] | American Depositary Shares [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Ordinary stock, shares converted | 3,400,000 |