Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2023 shares | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2023 |
Entity File Number | 001-38328 |
Entity Registrant Name | LexinFintech Holdings Ltd. |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 27/F CES Tower |
Entity Address, Address Line Two | No. 3099 Keyuan South Road |
Entity Address, Address Line Three | Nanshan District |
Entity Address, City or Town | Shenzhen |
Entity Address, Postal Zip Code | 518057 |
Entity Address, Country | CN |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Accelerated Filer |
Document Accounting Standard | U.S. GAAP |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Document Financial Statement Error Correction [Flag] | false |
Entity Shell Company | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Entity Central Index Key | 0001708259 |
Amendment Flag | false |
Auditor Firm ID | 1424 |
Auditor Name | PricewaterhouseCoopers Zhong Tian LLP |
Auditor Location | Beijing |
Business Contact | |
Entity Address, Address Line One | 27/F CES Tower |
Entity Address, Address Line Two | No. 3099 Keyuan South Road |
Entity Address, Address Line Three | Nanshan District |
Entity Address, City or Town | Shenzhen |
Entity Address, Postal Zip Code | 518057 |
Contact Personnel Name | James Xigui Zheng |
City Area Code | 86 |
Local Phone Number | 755 3637 8888 |
Entity Address, Country | CN |
Contact Personnel Email Address | IR@lexin.com |
ADS | |
Title of 12(b) Security | American depositary shares (one American depositary share representing two Class A ordinary shares, par value US$0.0001 per share) |
Trading Symbol | LX |
Security Exchange Name | NASDAQ |
Ordinary shares | |
Entity Common Stock, Shares Outstanding | 328,260,411 |
Class A Ordinary Shares | |
Title of 12(b) Security | Class A ordinary shares, par value US$0.0001 per share* |
Trading Symbol | LX |
Security Exchange Name | NASDAQ |
Entity Common Stock, Shares Outstanding | 256,918,184 |
Class B Ordinary Shares | |
Entity Common Stock, Shares Outstanding | 71,342,227 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Current assets | |||
Cash and cash equivalents | ¥ 2,624,719 | $ 369,684 | ¥ 1,494,150 |
Restricted cash | 1,433,502 | 201,905 | 1,267,512 |
Restricted term deposit | 105,182 | 14,815 | 1,061,858 |
Short-term investments | 200,000 | 28,169 | 270,000 |
Short-term financing receivables,net of allowance for credit losses of RMB184,187 and RMB58,594 as of December 31, 2022 and December 31, 2023, respectively | 3,944,000 | 555,501 | 6,397,920 |
Short-term contract assets and receivables, net of allowance for credit losses of RMB216,850 and RMB436,136 as of December 31, 2022 and December 31, 2023, respectively | 6,112,981 | 860,995 | 3,894,175 |
Deposits to insurance companies and guarantee companies | 2,613,271 | 368,072 | 2,249,022 |
Prepayments and other current assets | 1,428,769 | 201,238 | 1,086,952 |
Amounts due from related parties | 6,989 | 984 | 6,602 |
Inventories, net | 33,605 | 4,733 | 53,917 |
Total current assets | 18,503,018 | 2,606,096 | 17,782,108 |
Non-current assets | |||
Restricted cash | 144,948 | 20,415 | 168,521 |
Long-term financing receivables, net of allowance for credit losses of RMB13,220 and RMB3,087 as of December 31, 2022 and December 31, 2023, respectively | 200,514 | 28,242 | 460,325 |
Long-term contract assets and receivables, net of allowance for credit losses of RMB52,742 and RMB61,838 as of December 31, 2022 and December 31, 2023, respectively | 599,818 | 84,483 | 605,051 |
Property, equipment and software, net | 446,640 | 62,908 | 284,593 |
Land use rights, net | 897,267 | 126,377 | 931,667 |
Long‑term investments | 255,003 | 35,916 | 348,376 |
Deferred tax assets | 1,232,092 | 173,537 | 1,141,761 |
Other assets, net of allowance of credit losses of RMB19,491 and RMB 224,834 as of December 31, 2022 and December 31, 2023, respectively | 861,491 | 121,338 | 1,048,301 |
Total non-current assets | 4,637,773 | 653,216 | 4,988,595 |
TOTAL ASSETS | 23,140,791 | 3,259,312 | 22,770,703 |
Current liabilities | |||
Accounts payable (including amounts of the consolidated VIEs of RMB25,970 and RMB29,032 as of December 31, 2022 and December 31, 2023, respectively) | 49,801 | 7,014 | 25,970 |
Amounts due to related parties | 2,958 | 417 | 4,669 |
Short term borrowings(including amounts of the consolidated VIEs of RMB1,138,046 and RMB317,888 as of December 31, 2022 and December 31, 2023, respectively) | 502,013 | 70,707 | 1,168,046 |
Short term funding debts (including amounts of the consolidated VIEs of RMB4,385,253 and RMB3,483,196 as of December 31, 2022 and December 31, 2023, respectively) | 3,483,196 | 490,598 | 4,385,253 |
Deferred guarantee income (including amounts of the consolidated VIEs of RMB781,633 and RMB1,215,490 as of December 31, 2022 and December 31, 2023, respectively) | 1,538,385 | 216,677 | 894,858 |
Contingent guarantee liabilities (including amounts of the consolidated VIEs of RMB770,495 and RMB1,232,002 as of December 31, 2022 and December 31, 2023, respectively) | 1,808,540 | 254,728 | 882,107 |
Accruals and other current liabilities(including amounts of the consolidated VIEs of RMB2,550,969 and RMB3,521,896 as of December 31, 2022 and December 31, 2023, respectively) | 4,434,254 | 624,552 | 3,057,469 |
Convertible notes | 505,450 | 71,191 | 2,063,545 |
Total current liabilities | 12,324,597 | 1,735,884 | 12,481,917 |
Non-current liabilities | |||
Long-term borrowings(including amounts of the consolidated VIEs of RMB150,430 and RMB524,270 as of December 31, 2022 and December 31, 2023, respectively) | 524,000 | 73,842 | 150,430 |
Long term funding debts (including amounts of the consolidated VIEs of RMB1,334,105 and RMB455,800 as of December 31, 2022 and December 31, 2023, respectively) | 455,800 | 64,198 | 1,334,105 |
Deferred tax liabilities (including amounts of the consolidated VIEs of RMB52,065 and RMB53,646 as of December 31, 2022 and December 31, 2023, respectively) | 75,340 | 10,611 | 52,559 |
Other long-term liabilities(including amounts of the consolidated VIEs of RMB65,788 and RMB33,495 as of December 31, 2022 and December 31, 2023, respectively) | 50,702 | 7,141 | 102,941 |
Total non-current liabilities | 1,106,112 | 155,792 | 1,640,035 |
TOTAL LIABILITIES | 13,430,709 | 1,891,676 | 14,121,952 |
SHAREHOLDERS’ EQUITY: | |||
Treasury stock (44,369,636 and 44,369,636 shares as of December31, 2022 and 2023, respectively) | (328,764) | (46,305) | (328,764) |
Additional paid-in capital | 3,204,961 | 451,406 | 3,081,254 |
Statutory reserves | 1,106,579 | 155,858 | 1,022,592 |
Accumulated other comprehensive loss | (13,545) | (1,908) | (20,842) |
Retained earnings | 5,740,611 | 808,548 | 4,894,273 |
Total shareholders equity | 9,710,082 | 1,367,636 | 8,648,751 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 23,140,791 | 3,259,312 | 22,770,703 |
Class A Ordinary Shares | |||
SHAREHOLDERS’ EQUITY: | |||
Ordinary shares | 199 | 30 | 191 |
Class B Ordinary Shares | |||
SHAREHOLDERS’ EQUITY: | |||
Ordinary shares | ¥ 41 | $ 7 | ¥ 47 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 CNY (¥) shares |
Current assets | |||
Short-term financing receivables, allowance for credit losses | ¥ 58,594 | ¥ 184,187 | |
Short-term contract assets and service fees receivable, allowance for credit losses | 436,136 | 216,850 | |
Non-current assets | |||
Long-term financing receivables, allowance for credit losses | 3,087 | 13,220 | |
Long-term contract assets and service fees receivable, allowance for credit losses | 61,838 | 52,742 | |
Other assets, allowance of credit losses | 224,834 | 19,491 | |
Current liabilities | |||
Accounts payable | 49,801 | $ 7,014 | 25,970 |
Amounts due to related parties | 2,958 | 417 | 4,669 |
Short-term borrowings | 502,013 | 70,707 | 1,168,046 |
Short-term funding debts | 3,483,196 | 490,598 | 4,385,253 |
Deferred guarantee Income | 1,538,385 | 216,677 | 894,858 |
Contingent guarantee liabilities | 1,808,540 | 254,728 | 882,107 |
Accruals and other current liabilities | 4,434,254 | 624,552 | 3,057,469 |
Non-current liabilities | |||
Long-term borrowings | 524,000 | 73,842 | 150,430 |
Long-term funding debts | 455,800 | 64,198 | 1,334,105 |
Deferred tax liabilities | 75,340 | 10,611 | 52,559 |
Other long-term liabilities | ¥ 50,702 | $ 7,141 | ¥ 102,941 |
Treasury stock | shares | 44,369,636 | 44,369,636 | 44,369,636 |
Class A Ordinary Shares | |||
Non-current liabilities | |||
Common stock, par value | $ / shares | $ 0.0001 | ||
Common stock, shares authorized | shares | 1,889,352,801 | 1,889,352,801 | 1,889,352,801 |
Common stock, shares issued | shares | 300,707,476 | 300,707,476 | 300,707,476 |
Common stock, shares outstanding | shares | 256,918,184 | 256,918,184 | 245,264,614 |
Class B Ordinary Shares | |||
Non-current liabilities | |||
Common stock, par value | $ / shares | $ 0.0001 | ||
Common stock, shares authorized | shares | 110,647,199 | 110,647,199 | 110,647,199 |
Common stock, shares issued | shares | 71,342,227 | 71,342,227 | 80,189,163 |
Common stock, shares outstanding | shares | 71,342,227 | 71,342,227 | 80,189,163 |
VIEs | |||
Current liabilities | |||
Accounts payable | ¥ 29,032 | ¥ 25,970 | |
Amounts due to related parties | 2,958 | 4,669 | |
Short-term borrowings | 317,888 | 1,138,046 | |
Short-term funding debts | 3,483,196 | 4,385,253 | |
Deferred guarantee Income | 1,215,490 | 781,633 | |
Contingent guarantee liabilities | 1,232,002 | 770,495 | |
Accruals and other current liabilities | 3,521,896 | 2,550,969 | |
Non-current liabilities | |||
Long-term borrowings | 524,270 | 150,430 | |
Long-term funding debts | 455,800 | 1,334,105 | |
Deferred tax liabilities | 53,646 | 52,065 | |
Other long-term liabilities | ¥ 33,495 | ¥ 65,788 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) ¥ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | |
Operating revenue: | ||||
Operating revenue | ¥ 13,057,082 | $ 1,839,052 | ¥ 9,865,811 | ¥ 11,380,525 |
Operating cost: | ||||
Cost of sales | (1,635,635) | (230,374) | (2,066,804) | (1,759,956) |
Funding cost | (513,869) | (72,377) | (518,069) | (457,615) |
Processing and servicing cost (including collection service fee from related parties of RMB20,493, RMB16,177 and RMB14,753 for the years ended December 31, 2021, 2022 and 2023, respectively | (1,935,016) | (272,541) | (1,875,292) | (1,858,901) |
Provision for financing receivables | (627,061) | (88,320) | (437,477) | (401,104) |
Provision for contract assets and receivables | (629,308) | (88,636) | (465,188) | (531,237) |
Provision for contingent guarantee liabilities | (3,203,123) | (451,150) | (1,468,265) | (622,438) |
Total operating cost | (8,544,012) | (1,203,398) | (6,831,095) | (5,631,251) |
Gross profit | 4,513,070 | 635,654 | 3,034,716 | 5,749,274 |
Operating expenses: | ||||
Sales and marketing expenses | (1,733,301) | (244,130) | (1,685,438) | (1,658,904) |
Research and development expenses | (513,284) | (72,295) | (583,260) | (549,286) |
General and administrative expenses | (387,387) | (54,562) | (431,571) | (470,661) |
Total operating expenses | (2,633,972) | (370,987) | (2,700,269) | (2,678,851) |
Change in fair value of financial guarantee derivatives, net | (267,677) | (37,701) | 613,873 | (458,846) |
Change in fair value of loans at fair value | 61,309 | 8,635 | 108,508 | 111,762 |
Interest expense, net | (50,483) | (7,110) | (55,636) | (63,125) |
Investment loss | (303,235) | (42,710) | (33,944) | (4,160) |
Others, net | 7,774 | 1,095 | 61,321 | 113,480 |
Income before income tax expense | 1,326,786 | 186,876 | 1,028,569 | 2,769,534 |
Income tax expense | (260,841) | (36,739) | (202,640) | (435,418) |
Net income | 1,065,945 | 150,137 | 825,929 | 2,334,116 |
Less: net income attributable to non-controlling interests | ¥ | 6,177 | 193 | ||
Net income attributable to ordinary shareholders of the Company | ¥ 1,065,945 | $ 150,137 | ¥ 819,752 | ¥ 2,333,923 |
Net income per ordinary share attributable to ordinary shareholders of the Company | ||||
Diluted | ¥ / shares | ¥ 3.17 | ¥ 2.21 | ¥ 5.73 | |
Weighted average number of ordinary shares outstanding | ||||
Basic | shares | 328,523,952 | 328,523,952 | 348,048,245 | 368,460,867 |
Diluted | shares | 359,820,982 | 359,820,982 | 392,756,821 | 414,992,716 |
Share-based compensation expenses included in: | ||||
Share-based compensation expenses | ¥ | ¥ 117,852 | ¥ 156,320 | ¥ 187,884 | |
Credit facilitation service income | ||||
Operating revenue: | ||||
Operating revenue | 9,666,120 | $ 1,361,445 | 5,963,803 | 6,955,810 |
Tech-empowerment service income | ||||
Operating revenue: | ||||
Operating revenue | 1,640,453 | 231,053 | 1,845,943 | 2,762,995 |
Installment e-commerce platform service | ||||
Operating revenue: | ||||
Operating revenue | 1,750,509 | 246,554 | 2,056,065 | 1,661,720 |
Processing and servicing cost | ||||
Share-based compensation expenses included in: | ||||
Share-based compensation expenses | 246 | 35 | 5,179 | 9,968 |
Sales and marketing expenses | ||||
Share-based compensation expenses included in: | ||||
Share-based compensation expenses | 17,454 | 2,458 | 23,142 | 30,508 |
Research and development expenses | ||||
Share-based compensation expenses included in: | ||||
Share-based compensation expenses | 23,547 | 3,317 | 30,386 | 39,413 |
General and administrative expenses | ||||
Share-based compensation expenses included in: | ||||
Share-based compensation expenses | ¥ 76,605 | $ 10,790 | ¥ 97,613 | ¥ 107,995 |
Ordinary shares | ||||
Net income per ordinary share attributable to ordinary shareholders of the Company | ||||
Basic | (per share) | ¥ 3.24 | $ 0.46 | ¥ 2.36 | ¥ 6.33 |
Diluted | (per share) | 3.17 | 0.45 | 2.21 | 5.73 |
ADS | ||||
Net income per ordinary share attributable to ordinary shareholders of the Company | ||||
Basic | (per share) | 6.49 | 0.91 | 4.71 | 12.67 |
Diluted | (per share) | ¥ 6.34 | $ 0.89 | ¥ 4.41 | ¥ 11.46 |
Guarantee income | Credit facilitation service income | ||||
Operating revenue: | ||||
Operating revenue | ¥ 2,519,284 | $ 354,834 | ¥ 1,453,180 | ¥ 774,544 |
Financing income | Credit facilitation service income | ||||
Operating revenue: | ||||
Operating revenue | 2,144,955 | 302,111 | 2,024,096 | 1,732,922 |
Loan facilitation and servicing fees-credit oriented | Credit facilitation service income | ||||
Operating revenue: | ||||
Operating revenue | ¥ 5,001,881 | $ 704,500 | ¥ 2,486,527 | ¥ 4,448,344 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Commission fee from a related party | ¥ 0 | ¥ 631 | ¥ 7,731 |
Collection service fee from a related party | ¥ 14,753 | ¥ 16,177 | ¥ 20,493 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | ¥ 1,065,945 | $ 150,137 | ¥ 825,929 | ¥ 2,334,116 |
Other comprehensive income | ||||
Foreign currency translation adjustments, net of tax | 7,297 | 1,028 | (32,115) | 7,965 |
Total comprehensive income | 1,073,242 | 151,165 | 793,814 | 2,342,081 |
Less: net income attributable to non-controlling interests | 6,177 | 193 | ||
Total comprehensive income attributable to ordinary shareholders | ¥ 1,073,242 | $ 151,165 | ¥ 787,637 | ¥ 2,341,888 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY ¥ in Thousands, $ in Thousands | CNY (¥) shares | USD ($) shares | Class A Ordinary Shares CNY (¥) shares | Class B Ordinary Shares CNY (¥) shares | Ordinary shares Class A Ordinary Shares CNY (¥) shares | Ordinary shares Class B Ordinary Shares CNY (¥) shares | Treasury Stock CNY (¥) shares | Additional Paid in Capital CNY (¥) | Statutory Reserves CNY (¥) | Accumulated Other Comprehensive Income /(Loss) CNY (¥) | Retained Earnings CNY (¥) | Non-controlling Interest CNY (¥) |
Balances as at beginning of the year at Dec. 31, 2020 | ¥ 5,530,738 | ¥ 176 | ¥ 58 | ¥ 2,724,006 | ¥ 649,234 | ¥ 3,308 | ¥ 2,113,956 | ¥ 40,000 | ||||
Balances as at beginning of the year (in shares) at Dec. 31, 2020 | shares | 267,356,928 | 96,727,057 | ||||||||||
Increase (Decrease) in Shareholders' Equity | ||||||||||||
Net income | 2,334,116 | 2,333,923 | 193 | |||||||||
Share-based compensation expenses | 187,884 | 187,884 | ||||||||||
Exercise of share-based awards | 7,106 | ¥ 3 | 7,103 | |||||||||
Exercise of share-based awards (in shares) | shares | 3,651,808 | |||||||||||
Redesignation of Class B Ordinary Shares into Class A Ordinary Shares | ¥ 1 | ¥ (1) | ||||||||||
Redesignation of Class B Ordinary Shares into Class A Ordinary Shares (in shares) | shares | 2,261,364 | (2,261,364) | ||||||||||
Appropriation to statutory reserves | 252,000 | 252,088 | (252,088) | |||||||||
Foreign currency translation adjustments, net of tax | 7,965 | 7,965 | ||||||||||
Balances as at end of the year at Dec. 31, 2021 | 8,067,809 | ¥ 180 | ¥ 57 | 2,918,993 | 901,322 | 11,273 | 4,195,791 | 40,193 | ||||
Balances as at end of the year (in shares) at Dec. 31, 2021 | shares | 273,270,100 | 94,465,693 | ||||||||||
Increase (Decrease) in Shareholders' Equity | ||||||||||||
Net income | 825,929 | 819,752 | 6,177 | |||||||||
Share-based compensation expenses | 156,320 | 156,320 | ||||||||||
Exercise of share-based awards | 2,696 | ¥ 1 | 2,695 | |||||||||
Exercise of share-based awards (in shares) | shares | 2,087,620 | |||||||||||
Redesignation of Class B Ordinary Shares into Class A Ordinary Shares | ¥ 10 | ¥ (10) | ||||||||||
Redesignation of Class B Ordinary Shares into Class A Ordinary Shares (in shares) | shares | 14,276,530 | (14,276,530) | ||||||||||
Appropriation to statutory reserves | 121,000 | 121,270 | (121,270) | |||||||||
Foreign currency translation adjustments, net of tax | (32,115) | (32,115) | ||||||||||
Treasury Repurchases | ¥ (328,764) | ¥ (328,764) | ||||||||||
Treasury Repurchases (Shares) | shares | (22,000,000) | (22,000,000) | (44,369,636) | 44,369,636 | ||||||||
Transaction with non-controlling shareholders | ¥ (2,388) | 3,246 | (5,634) | |||||||||
Disposal of a subsidiary | (40,736) | ¥ (40,736) | ||||||||||
Balances as at end of the year at Dec. 31, 2022 | 8,648,751 | ¥ 191 | ¥ 47 | ¥ (328,764) | 3,081,254 | 1,022,592 | (20,842) | 4,894,273 | ||||
Balances as at end of the year (in shares) at Dec. 31, 2022 | shares | 245,264,614 | 80,189,163 | 245,264,614 | 80,189,163 | 44,369,636 | |||||||
Increase (Decrease) in Shareholders' Equity | ||||||||||||
Net income | 1,065,945 | $ 150,137 | 1,065,945 | |||||||||
Share-based compensation expenses | 117,852 | 117,852 | ||||||||||
Exercise of share-based awards | 5,857 | ¥ 2 | 5,855 | |||||||||
Exercise of share-based awards (in shares) | shares | 2,806,634 | |||||||||||
Redesignation of Class B Ordinary Shares into Class A Ordinary Shares | ¥ 6 | ¥ (6) | ||||||||||
Redesignation of Class B Ordinary Shares into Class A Ordinary Shares (in shares) | shares | 8,846,936 | (8,846,936) | ||||||||||
Appropriation to statutory reserves | 84,000 | 83,987 | (83,987) | |||||||||
Foreign currency translation adjustments, net of tax | 7,297 | 1,028 | 7,297 | |||||||||
Dividends to shareholders | (135,620) | (135,620) | ||||||||||
Balances as at end of the year at Dec. 31, 2023 | ¥ 9,710,082 | $ 1,367,636 | ¥ 199 | ¥ 41 | ¥ (328,764) | ¥ 3,204,961 | ¥ 1,106,579 | ¥ (13,545) | ¥ 5,740,611 | |||
Balances as at end of the year (in shares) at Dec. 31, 2023 | shares | 256,918,184 | 71,342,227 | 256,918,184 | 71,342,227 | 44,369,636 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Cash flows from operating activities: | ||||
Net income | ¥ 1,065,945 | $ 150,137 | ¥ 825,929 | ¥ 2,334,116 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Amortization of debt issuance costs and discounts | 41,402 | 5,831 | 6,717 | 6,446 |
Share-based compensation expenses | 117,852 | 16,599 | 156,320 | 187,884 |
Amortization of right-of-use assets and interest of lease liabilities | 39,733 | 5,596 | 53,199 | 54,552 |
Depreciation and amortization | 105,409 | 14,847 | 94,941 | 90,751 |
Provision for financing and interest receivables | 627,061 | 88,320 | 437,477 | 401,104 |
Provision for contract assets and receivables | 629,308 | 88,636 | 465,188 | 531,237 |
Provision for contingent guarantee liabilities | 3,203,123 | 451,150 | 1,468,265 | 622,438 |
Change in inventory provision | (602) | (85) | (468) | 46 |
Change in fair value of financial guarantee derivatives, net | 267,677 | 37,701 | (613,873) | 458,846 |
Change in fair value of loans at fair value | (61,309) | (8,635) | (108,508) | (111,762) |
Deferred income tax | (67,550) | (9,514) | 33,341 | (396,257) |
Investment-related impairment | 301,760 | 42,502 | 36,930 | |
Loss/(gain) on disposal of long-term investments | (7,067) | 1,984 | ||
Share of results of equity investees | 1,500 | 208 | 4,081 | 3,967 |
Fair value changes of other assets | (1,791) | |||
Foreign exchange (gain)/loss | 35,602 | 5,014 | 28,397 | (12,666) |
(Gain)/loss on disposal of loans at fair value and financing receivables | 2,966 | 418 | (2,532) | |
Changes in operating assets and liabilities: | ||||
Financing receivables related to online direct sales | 515,074 | 72,547 | (399,288) | 205,551 |
Prepayments and other current assets | (247,586) | (34,872) | 183,623 | 74,320 |
Deposits to insurance companies and guarantee companies | (364,249) | (51,303) | (870,533) | (312,208) |
Amounts due from related parties | (387) | (55) | (265) | (5,396) |
Contract assets and receivables | (2,840,791) | (400,117) | (128,116) | (180,564) |
Other long-term liabilities | (52,239) | (7,358) | (34,448) | 109,722 |
Inventories | 20,914 | 2,946 | (5,633) | (692) |
Other assets | (62,016) | (8,735) | (276,182) | (140,492) |
Accounts payable | 23,831 | 3,357 | 12,759 | (27,256) |
Amounts due to related parties | (1,711) | (242) | (4,233) | 1,408 |
Deferred guarantee income | 643,527 | 90,639 | 475,015 | (274,739) |
Contingent guarantee liabilities | (2,276,690) | (320,665) | (1,514,998) | (1,432,385) |
Other payable to Individual Investors | (1,272) | (179) | (5,560) | (56,365) |
Accruals and other current liabilities | 1,120,795 | 157,861 | (214,166) | 538,152 |
Net cash provided by operating activities | 2,787,052 | 392,549 | 98,844 | 2,667,419 |
Cash flows from investing activities: | ||||
Cash proceed for disposal of loans at fair value and financing receivables | 0 | 0 | 35,527 | 43,272 |
Cash paid on long-term investments | (38,657) | |||
Proceeds from disposal of subsidiaries | 43,956 | |||
Cash paid on acquisition of subsidiaries, net of cash acquired | 0 | 0 | 7,958 | |
Proceeds from disposal of investments and refund of prepayment on long-term investments | 4,000 | 65,537 | ||
Purchases of property, equipment and software | (229,523) | (32,328) | (148,816) | (121,533) |
Financing receivables originated and purchased (excluding receivables related to online direct sales) | (18,316,222) | (2,579,786) | (20,238,725) | (18,420,894) |
Principal collection on financing receivables and recoveries (excluding receivables related to online direct sales) | 19,887,574 | 2,801,106 | 17,374,379 | 18,942,385 |
Investments in loans at fair value | (5,154,834) | (726,043) | (4,296,611) | (3,851,997) |
Collection of loans at fair value | 5,120,379 | 721,190 | 4,305,417 | 4,051,776 |
Placement of restricted term deposits and short-term investments | (1,102,968) | (155,350) | (1,260,246) | (2,467,239) |
Withdrawal of restricted term deposit and short-term investments | 2,130,046 | 300,011 | 1,764,124 | 2,504,282 |
Loans to third parties | (292,317) | |||
Net cash (used in)/ provided by investing activities | 2,334,452 | 328,800 | (2,409,037) | 414,615 |
Cash flows from financing activities: | ||||
Proceeds from borrowings | 1,957,888 | 275,763 | 1,384,530 | 2,304,068 |
Principal payments on borrowings | (2,265,540) | (319,095) | (1,868,010) | (2,331,390) |
Proceeds from funding debts | 17,938,230 | 2,526,547 | 19,836,846 | 18,221,528 |
Principal payments on funding debts | (19,718,592) | (2,777,306) | (17,929,921) | (19,980,864) |
Repurchase of treasury stock | (326,942) | |||
Proceeds from non-controlling shareholders | 12,424 | |||
Exercise of share-based awards | 5,880 | 828 | 2,742 | 7,124 |
Dividends to shareholders | (135,620) | (19,102) | ||
Repayments of convertible loans | (1,634,678) | (230,240) | ||
Net cash (used in)/provided by financing activities | (3,852,432) | (542,605) | 1,111,669 | (1,779,534) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 3,914 | 552 | 9,893 | (23,592) |
Net increase/(decrease) in cash, cash equivalents and restricted cash | 1,272,986 | 179,296 | (1,188,631) | 1,278,908 |
Cash, cash equivalents and restricted cash at beginning of the year | 2,930,183 | 412,708 | 4,118,814 | 2,839,906 |
Cash, cash equivalents at beginning of the year | 1,494,150 | 210,447 | 2,664,132 | 1,563,755 |
Restricted cash at beginning of the year | 1,436,033 | 202,261 | 1,454,682 | 1,276,151 |
Cash, cash equivalents and restricted cash at end of the year | 4,203,169 | 592,004 | 2,930,183 | 4,118,814 |
Cash and cash equivalents at the end of the year | 2,624,719 | 369,684 | 1,494,150 | 2,664,132 |
Restricted cash at the end of the year | 1,578,450 | 222,320 | 1,436,033 | 1,454,682 |
Supplemental disclosure of cash flows information | ||||
Cash paid for interest expense of borrowings and convertible notes | 86,411 | 12,171 | 80,411 | 96,837 |
Cash paid for income tax expense | ¥ 255,579 | $ 35,998 | ¥ 614,404 | 522,915 |
Cash paid for land use rights | ¥ 516,000 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Principal Activities | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES LexinFintech Holdings Ltd. (“Lexin” or the “Company”), formerly known as Staging Finance Holding Ltd., was incorporated in the Cayman Islands on November 22, 2013. The Company is a holding company and conducts its business mainly through its subsidiaries, the consolidated variable interest entities (“VIEs”) and the subsidiaries of the consolidated VIEs (collectively referred to as the “Group”). The Group is engaged in matching consumers with credit needs to its financial institution partners through its proprietary platform (“Platform”), www.fenqile.com, and its mobile application (“APP”) to young generation consumers (“Borrowers”) in the People’s Republic of China (“PRC”). The Group primarily finances the loans to Borrowers with proceeds from third-party commercial banks, consumer finance companies, our microcredit company and other licensed financial institutions (collectively “Institutional Funding Partners”). The Group also finances the loans through the establishment of consolidated trusts (“Trusts”) and issuance of asset-backed securitized debts. As of December 31, 2023, the Company’s principal subsidiaries, the consolidated VIEs and subsidiaries of the consolidated VIEs are as follows: Date of Place of Percentage Principal Activities Subsidiaries Installment (HK) Investment Limited (“Installment HK”) December 9, 2013 Hong Kong, PRC 100 % Investment holding Beijing Shijitong Technology Co., Ltd. (“Beijing Shijitong”) July 1, 2014 Beijing, PRC 100 % Technical support and consulting services Shenzhen Lexin Software Technology Co., Ltd. (“Shenzhen Lexin Software”) March 1, 2017 Shenzhen, PRC 100 % Software development Shenzhen Lexin Financing Guarantee Co., Ltd. (“Shenzhen Lexin Financing Guarantee”) September 14, 2017 Shenzhen, PRC 100 % Financing guarantee services Beihai Dulin Information Technology Co. Ltd (“Beihai Dulin”) November 28, 2022 Beihai, PRC 100 % Financial technology services The VIEs Beijing Lejiaxin Network Technology Co., Ltd. (“Beijing Lejiaxin”) October 25, 2013 Beijing, PRC 100 % Investment holding Shenzhen Xinjie Investment Co., Ltd. (“Shenzhen Xinjie”) December 22, 2015 Shenzhen, PRC 100 % Investment holding Shenzhen Qianhai Dingsheng Data Technology Co., Ltd. (“Qianhai Dingsheng”) January 13, 2016 Shenzhen, PRC 100 % Financial technology services Shenzhen Mengtian Technology Co., Ltd. (“Mengtian August 9, 2016 Shenzhen, PRC 100 % Software development Beihai Super Egg E-Commerce Co., Ltd. (“Beihai Super Egg”) May 31, 2018 Beihai, PRC 100 % Investment holding Subsidiaries of the VIEs Shenzhen Fenqile Network Technology Co., Ltd. (“Shenzhen Fenqile”) August 15, 2013 Shenzhen, PRC 100 % Online direct sales and online consumer finance Shenzhen Beizhipiji Technology Co., Ltd. ("Beizhipiji") June 26, 2014 Shenzhen, PRC 100 % Online investment platform Ji’an Fenqile Network Microcredit Co., Ltd. (“Ji’an Microcredit”) December 2, 2016 Ji’an, PRC 100 % Online consumer credit Shenzhen Fenqile Trading Co., Ltd. (“Shenzhen Fenqile Trading”) December 30, 2016 Shenzhen, PRC 100 % Online direct sales Shenzhen Dingsheng Computer Technology Co., Ltd. (“Dingsheng Computer”) March 23, 2017 Shenzhen, PRC 100 % Financial technology services Beihai Aurora Technology Co., Ltd. (“Beihai Aurora”) June 19, 2018 Beihai, PRC 100 % Financial technology services Beihai Lexin Information Technology Co., Ltd. (“Beihai Lexin Information”) June 11, 2018 Beihai, PRC 100 % Financial technology services Ganjiang New Area Mengtian Financing Guarantee Co., Ltd. (“Ganjiang Mengtian”) October 24, 2019 Ganjiang, PRC 100 % Financing guarantee services History of the Group and Basis of Presentation The Group commenced operations through Shenzhen Fenqile in August 2013. Beijing Lejiaxin was incorporated in October 2013 and established its wholly owned subsidiary Beizhipiji (former name “Qianhai Juzi”) in June 2014 in order to launch the Group’s online investment platform Juzi Licai , which offers Investment Programs to the Individual Investors. In November 2013, the Company was incorporated under the Laws of the Cayman Islands to be an offshore holding company for the Group. To comply with the PRC laws and regulations which prohibit or restrict foreign ownership of Internet content, the Company obtained control over Shenzhen Fenqile and Beijing Lejiaxin through Beijing Shijitong by entering into a series of contractual arrangements with Shenzhen Fenqile, Beijing Lejiaxin and their nominee shareholders in July 2014. As a result, Shenzhen Fenqile and Beijing Lejiaxin became the consolidated VIEs through the contractual arrangements. The nominee shareholders are defined as legal owners of an entity; however, the rights of the shareholders have been transferred to the Company through contractual arrangements. The Company obtained control over Shenzhen Xinjie and Qianhai Dingsheng through Beijing Shijitong in December 2015 and January 2016 respectively by entering into a series of contractual arrangements with Shenzhen Xinjie, Qianhai Dingsheng and their nominee shareholders. As a result, Shenzhen Xinjie and Qianhai Dingsheng became the consolidated VIEs through the contractual arrangements. Shenzhen Fenqile then became one of the subsidiaries of Shenzhen Xinjie. In August 2018, Mengtian Technology, which previously was a subsidiary of one of the consolidated VIEs, became a consolidated VIE by entering into a series of contractual arrangements with its nominee shareholders and Shenzhen Lexin Software. Management concluded that the Company is entitled to substantially all of the economic benefits from the VIEs and is obligated to absorb all of their expected losses. As such, the Company is the ultimate primary beneficiary of the VIEs and shall consolidate the VIEs and their subsidiaries in the Group’s consolidated financial statements. Refer to Note 2(b) to the consolidated financial statements for the basis of consolidation. Initial Public Offering On December 26, 2017, the Company completed its initial public offering (“IPO”) on the NASDAQ Global Market in the United States of America. In this offering, 12,000,000 American Depositary Shares (“ADSs”), representing 24,000,000 Class A ordinary shares (“Class A Ordinary Shares”), were issued and sold to the public at a price of US$ 9.00 per ADS. In January 2018, the underwriters of the Company’s IPO exercised the options to purchase an additional 1,800,000 ADSs, representing 3,600,000 Class A Ordinary Shares, par value US$ 0.0001 per share, of the Company to cover over-allotments in full. The net proceeds in connection with 1,800,000 ADSs received by the Company was RMB 95.1 million (US$ 14.7 million), which represents a total gross capital raise of RMB 105.2 million (US$ 16.2 million) less underwriting discounts and commissions and offering expenses in the aggregate amount of RMB 10.1 million (US$ 1.5 million). |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. SIGNIFICANT ACCOUNTING POLICIES (a) Basis of presentation The consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Significant accounting policies followed by the Group in the preparation of the accompanying consolidated financial statements are summarized below. (b) Basis of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIEs and subsidiaries of the VIEs for which the Company is the 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. A consolidated VIE is an entity in which the Company, or its subsidiaries, through contractual arrangements, has the power to direct the activities that most significantly impact the entity’s economic performance, has the obligation to absorb losses of, or the right to receive benefits from the entity that could potentially be significant to the entity, and therefore the Company or its subsidiaries is the primary beneficiary of the entity. All transactions and balances among the Company, its subsidiaries, the VIEs and subsidiaries of the VIEs have been eliminated upon consolidation. VIE Companies (excluding the consolidated Trusts and asset-backed securitized debts as discussed in Note 2(f)) (i) Contractual agreements with the VIEs The following is a summary of the contractual agreements (collectively, “Contractual Agreements”) that the Company’s relevant PRC subsidiaries entered into with the VIEs and their nominee shareholders. Through the Contractual Agreements, the VIEs are effectively controlled by the Company. Exclusive Option Agreements. Pursuant to the Exclusive Option Agreements, the nominee shareholders of the VIEs have irrevocably granted the Group’s relevant PRC subsidiaries an exclusive option to purchase all or part of their respective equity interests in the VIEs. The purchase price shall be the lowest price permitted by law. Without prior written consent of the Group’s relevant PRC subsidiaries, the VIEs shall not, among other things, amend their articles of association, increase or decrease the registered capital, sell, dispose of or set any encumbrance on their assets and equity interests in the VIEs, business or revenue, enter into any material contract outside the ordinary course of business, merge with any other persons or make any investments, distribute dividends, or enter into any transactions which have material adverse effects on their business. These agreements will remain effective until the Group’s relevant PRC subsidiaries and/or any third party designated by the Group’s relevant PRC subsidiaries have acquired all equity interests of the VIEs from their respective nominee shareholders. Power of Attorney. Pursuant to the Power of Attorney, each nominee shareholder of the VIEs irrevocably authorizes the Group’s relevant PRC subsidiaries to act as its attorney‑in‑fact to exercise all of such shareholder’s voting and other rights associated with the shareholder’s equity interests in the VIEs, including the right to attend shareholder meetings on behalf of such shareholder, the right to appoint legal representatives, directors, supervisors and chief executive officers and other senior management, and the right to sell, transfer, pledge and dispose of all or a portion of the shares held by such shareholder. The power of attorney is irrevocable and remains in force continuously upon execution. Exclusive Business Cooperation Agreements. Pursuant to these Exclusive Business Cooperation Agreements, the Group’s relevant PRC subsidiaries have the exclusive right to provide the VIEs with comprehensive business support, technical support and consulting services. Without prior written consent of the Group’s relevant PRC subsidiaries, the VIEs shall not accept any services covered by these agreements from any third party. The VIEs agree to pay service fees in an amount determined by the Group’s relevant PRC subsidiaries based on respective profits calculated as operating revenue minus operating cost of the VIEs for the relevant period on a yearly basis or other service fees for specific services as required and as otherwise agreed by both parties. The Group’s relevant PRC subsidiaries own the intellectual property rights arising out of the services performed under these agreements. Unless the Group’s relevant PRC subsidiaries terminate these agreements or pursuant to other provisions of these agreements, these agreements will remain effective indefinitely. These agreements can be terminated by the Group’s relevant PRC subsidiaries through a 30‑day advance written notice, the VIEs have no right to unilaterally terminate these agreements. Loan Agreements. Pursuant to the relevant loan agreements, the Group’s relevant PRC subsidiaries have granted loans to the relevant nominee shareholders of the VIEs solely for the purpose of providing funds necessary for capital injection into the VIEs to operate their respective businesses. Pursuant to these loan agreements, the nominee shareholders can only repay the loans by the transfer of all their equity interests in the VIEs to the Group’s relevant PRC subsidiaries. The nominee shareholders of the VIEs must pay all of the proceeds from transfer of such equity interests to the Group’s relevant PRC subsidiaries. In the event that the nominee shareholders transfer their equity interests to the Group’s relevant PRC subsidiaries or their designated person(s) with a price equivalent to or less than the amount of the principal, the loans will be interest free. If the price is higher than the amount of the principal, the excess amount will be paid to the Group’s relevant PRC subsidiaries as the loan interest. The loans must be repaid immediately when permitted by PRC laws at the request of the Group’s relevant PRC subsidiaries. Term of both loans is ten years and will be extended automatically for another ten years on each expiration. Equity Pledge Agreements. Pursuant to these Equity Pledge Agreements, each nominee shareholder of the VIEs has pledged all of his, her or its respective equity interests in the VIEs to the Group’s relevant PRC subsidiaries to guarantee the performance by such nominee shareholder and the VIEs of their respective obligations under the Exclusive Option Agreements, the Power of Attorney, the Loan Agreements, where applicable, and the Exclusive Business Cooperation Agreements, and any amendment, supplement or restatement to such agreements. If the VIEs or any of their nominee shareholders breach any obligations under these agreements, the Group’s relevant PRC subsidiaries, as pledgee, will be entitled to dispose of the pledged equity and have priority to be compensated by the proceeds from the disposal of the pledged equity. Each of the nominee shareholders of the VIEs agrees that before his, her or its obligations under the Contractual Agreements are discharged, he, she or it will not dispose of the pledged equity interests, create or allow any encumbrance on the pledged equity interests, which may result in the change of the pledged equity that may have adverse effects on the pledgee’s rights under these agreements without the prior written consent of the Group’s relevant PRC subsidiaries. These Equity Pledge Agreements will remain effective until the VIEs and their nominee shareholders discharge all their respective obligations under the Contractual Agreements. (ii) Risks in relation to the VIE structure Under the Contractual Agreements with the VIEs, the Company has the power to direct activities of the VIEs and the VIEs’ subsidiaries, has the obligation to absorb losses of, or the right to receive benefits from the VIEs and the VIEs’ subsidiaries. Therefore, the Company considers itself the ultimate primary beneficiary of the VIEs and there is no asset of the VIEs that can only be used to settle obligations of the VIEs and the VIEs’ subsidiaries except for registered capitals and PRC statutory reserves of the consolidated VIEs amounting to RMB 4,983 million as of December 31, 2023. Since the VIEs are incorporated as limited liability companies under the PRC Company Law, creditors of the VIEs do not have recourse to the general credit of the Company. There is currently no contractual arrangement that would require the Company to provide additional financial support to the VIEs. However, as the Company is conducting certain businesses mainly through the consolidated VIEs and the VIEs’ subsidiaries, the Company may provide such support on a discretionary basis in the future, which could expose the Company to a loss. In the opinion of the Company’s management, the contractual arrangements among its subsidiaries, the VIEs and their respective nominee shareholders are in compliance with current PRC laws and are legally binding and enforceable. However, uncertainties in the interpretation and enforcement of the PRC laws, regulations and policies could limit the Company’s ability to enforce these contractual arrangements. As a result, the Company may be unable to consolidate the VIEs and the VIEs’ subsidiaries in the consolidated financial statements in the future if changes in the legal interpretation or enforcement of the PRC laws, regulations and policies occur in the future. In March 2019, the Foreign Investment Law was approved by the National People’s Congress, effective on January 1, 2020. In December 2019, the State Council promulgated the Implementation Regulations on the Foreign Investment Law, effective on January 1, 2020, and further clarified and elaborated the relevant provisions of the Foreign Investment Law. Given that there still exist uncertainties in relation to the interpretation and implementation of the Foreign Investment Law and its implementation regulations, the possibility that the VIEs will be deemed as foreign-invested enterprise and subject to relevant restrictions in the future shall not be excluded. The Company’s ability to control the VIEs also depends on the power of attorney the Group’s relevant PRC subsidiaries have to vote on all matters requiring shareholders’ approvals in the VIEs. As noted above, the Company believes this power of attorney is legally binding and enforceable but may not be as effective as direct equity ownership. In addition, if the Group’s corporate structure or the contractual arrangements with the VIEs were found to be in violation of any existing PRC laws and regulations, the PRC regulatory authorities could, within their respective jurisdictions: • revoke the Group’s business and operating licenses; • require the Group to discontinue or restrict its operations; • restrict the Group’s right to collect revenues; • block the Group’s websites; • require the Group to restructure its operations, re‑apply for the necessary licenses or relocate the Group’s businesses, staff and assets; • impose additional conditions or requirements with which the Group may not be able to comply; or • take other regulatory or enforcement actions against the Group that could be harmful to the Group’s business. The imposition of any of these restrictions or actions may result in a material adverse effect on the Group’s ability to conduct its business. In addition, if the imposition of any of these restrictions causes the Group to lose the right to direct the activities of the VIEs or the right to receive their economic benefits, the Group would no longer be able to consolidate the VIEs. In the opinion of management, the likelihood of losing the benefits in respect of the Group’s current ownership structure or the contractual arrangements with the VIEs is remote. All of the consolidated VIEs are incorporated and operated in the PRC, which are effectively controlled by the Company through a series of contractual agreements entered into among the Company’s relevant PRC subsidiaries, the VIEs and their nominee shareholders. The Company believes the possibility that it will no longer be able to control and consolidate the VIEs as a result of the aforementioned risks and uncertainties are remote. Summary of Financial Information of the Consolidated VIEs The following table sets forth the assets, liabilities, results of operations and changes in cash and cash equivalents and restricted cash of the VIEs and their subsidiaries taken as a whole, which were included in the Group’s consolidated financial statements. The financial information of the consolidated trusts and asset-backed securities (“ABS”) were also included in the following table, as the consolidated VIE companies are considered the primary beneficiary of these trusts and ABS plans: As of December 31, 2022 2023 (RMB in thousands) Consolidating Schedule of Financial Position ASSETS Cash and cash equivalents 1,273,823 1,834,738 Restricted cash 718,675 916,015 Restricted term deposit and short-term investments 119,678 149,678 Financing receivables, net 6,756,760 3,990,083 Amounts due from Group companies (1) 106,977 201,390 Deposits to insurance companies and guarantee companies 2,214,771 2,605,464 Contract assets and receivables, net 4,151,340 5,586,257 Property, equipment and software, net 213,610 351,688 Land use rights, net and right of use assets 1,029,258 955,250 Long‑term investments 331,560 239,244 Other assets 2,919,516 3,119,999 TOTAL ASSETS 19,835,968 19,949,806 LIABILITIES Amounts due to Group companies (1) 6,285,111 6,546,526 Borrowings 1,288,476 842,158 Funding debts 5,719,358 3,938,996 Deferred guarantee income 781,633 1,215,490 Contingent guarantee liabilities 770,495 1,232,002 Other liabilities 2,699,461 3,641,027 TOTAL LIABILITIES 17,544,534 17,416,199 Total equity attributable to owners of the company 2,291,434 2,533,607 TOTAL SHAREHOLDERS’ EQUITY 2,291,434 2,533,607 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 19,835,968 19,949,806 For the Year Ended December 31, 2021 2022 2023 (RMB in thousands) Condensed Consolidating Schedule of Results of Operations Operating revenue: Third-party revenues 11,091,978 9,297,734 11,264,532 Inter-group revenues (2) 11,429 329 186,968 Total Operating revenue 11,103,407 9,298,063 11,451,500 Operating cost: Third-party costs ( 5,520,994 ) ( 6,484,657 ) ( 7,354,363 ) Inter-group costs (2) ( 1,636 ) ( 36 ) ( 27 ) Total operating cost ( 5,522,630 ) ( 6,484,693 ) ( 7,354,390 ) Gross profit 5,580,777 2,813,370 4,097,110 Operating expense: Third-party expenses ( 1,689,151 ) ( 1,764,902 ) ( 1,766,810 ) Inter-group expenses (2) ( 3,047,627 ) ( 1,629,811 ) ( 1,544,632 ) Total operating expenses ( 4,736,778 ) ( 3,394,713 ) ( 3,311,442 ) Others ( 369,200 ) 617,568 ( 448,109 ) Income before income tax 474,799 36,225 337,559 Income tax expenses ( 142,201 ) ( 13,950 ) ( 100,292 ) Net income 332,598 22,275 237,267 Less: net income attributable to non-controlling interests 193 6,177 — Net income attributable to ordinary shareholders of the Company 332,405 16,098 237,267 For the Year Ended December 31, 2021 2022 2023 (RMB in thousands) Net cash (used in)/provided by operating activities ( 298,268 ) 537,019 1,412,861 Net cash provided by transactions with external parties 3,839,254 2,063,827 2,892,415 Net cash used in transactions with inter-group entities for technical service charges and others (3) ( 4,137,522 ) ( 1,526,808 ) ( 1,479,554 ) Net cash provided by/(used in) investing activities 622,696 ( 2,062,379 ) 1,337,528 Net cash provided by/(used in) transactions with external parties 472,228 ( 2,586,207 ) 1,387,854 Net cash (used in)/provided by funds to Group companies (4) 150,468 ( 61,831 ) ( 50,326 ) Transfer of Shenzhen Lexin Financing Guarantee Co., Ltd from VIE to subsidiary (5) — 585,659 — Net cash provided/(used in) by financing activities 656,269 ( 37,777 ) ( 1,992,134 ) Net cash (used in)/provided by transactions with external parties ( 1,775,038 ) 1,469,679 ( 2,242,139 ) Net cash provided by/(used in) funds from Group companies (6) 2,431,307 ( 1,507,456 ) 250,005 Net increase/(decrease) in cash, cash equivalents and restricted cash 980,697 ( 1,563,137 ) 758,255 Cash, cash equivalents and restricted cash at beginning of the year 2,574,938 3,555,635 1,992,498 Cash, cash equivalents and restricted cash at end of the year 3,555,635 1,992,498 2,750,753 (1) The amounts due from Group companies represent the funds provided by the consolidated VIEs to WFOEs, and the operating receivables resulting from the provision of goods and services to WFOEs; (2) The inter-group revenues and inter-group costs and expenses recognized by the consolidated VIEs were related to the goods and services between the consolidated VIEs and WFOEs; (3) For the years ended December 31, 2021, 2022 and 2023, cash paid by the VIEs to WFOEs for technical service fees were RMB 4,140 million, RMB 1,540 million and RMB 1,647 million, respectively. Cash received by the VIEs to WFOEs for the provision of goods and services were RMB 2.5 million, RMB 13.0 million and RMB 168 million, respectively. (4) Net cash (used in)/provided by funds to Group companies represent the funds provided by the consolidated VIEs to WFOEs, and the collections from the WFOEs for the funds previously provided by the consolidated VIEs. The funds provided to/repayments received from Group companies are presented on a net basis in investing activities. (5) In 2022, the consolidated VIE, Shenzhen Fenqile Network Technology Co., Ltd., transferred all its equity interest in Shenzhen Lexin Financing Guarantee Co., Ltd to primary beneficiary of the VIEs, Shenzhen Lexin Software Technology Co., Ltd. The total consideration for the transfer of equity shares is RMB 586 million. (6) Net cash (used in)/provided by funds from Group companies represent the funds provided by WFOEs to the consolidated VIEs. The funds received from/repayments made to Group companies are presented on a ne t basis in financing activities. (c) Use of estimates The preparation of the Group’s consolidated financial statements is in conformity with the U.S. GAAP, which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of financial statement and reported revenues and expenses during the reported periods. Significant accounting estimates include, but are not limited to (i) revenue recognition; (ii) allowance for credit losses on the financial assets measured at amortized cost and financial guarantees and (iii) initial recognition and subsequent measurement of guarantee derivatives at fair value. Actual results could materially differ from these estimates. (d) Functional currency and foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its subsidiaries incorporated in Hong Kong is United States dollars (“US$”) and the functional currencies of the PRC entities in the Group are RMB. In the consolidated financial statements, the financial information of the Company and its subsidiaries incorporated in Hong Kong have been translated into RMB at the exchange rates quoted by the People’s Bank of China (the “PBOC”). Assets and liabilities are translated at the exchange rates on the balance sheet date, equity amounts are translated at historical exchange rates, and revenues, expenses, gains and losses are translated using the average rate for the period. Translation adjustments arising from these are reported as foreign currency translation adjustments, and are shown as a component of accumulated other comprehensive income on the Consolidated Statements of Changes in Shareholders’ Equity and a component of other comprehensive income on the Consolidated Statements of Comprehensive Income. Foreign currency transactions denominated in currencies other than the functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are remeasured at the applicable rates of exchange in effect at that date. Foreign currency exchange gain or loss resulting from the settlement of such transactions and from remeasurement at period‑end is recognized in “Others, net” on the Consolidated Statements of Operations. Foreign currency translation adjustments included in the Group’s Consolidated Statements of Comprehensive Income for the years ended December 31, 2021, 2022 and 2023 were gain of RMB 8.0 million, loss of RMB 32.1 million and gain of RMB 7.3 million respectively. (e) Convenience translation Translations of balances on the Consolidated Balance Sheets, Consolidated Statements of Operations, Consolidated Statements of Comprehensive Income and Consolidated Statements of Cash Flows from RMB into US$ as of and for the year ended December 31, 2023 are solely for the convenience of the readers and were calculated at the rate of US$1.00=RMB7.0999, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 29, 2023. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2023, or at any other rate. (f) Presentation for on- and off-balance sheet loans The Group finances the loans with the proceeds from various funding partners, which primarily include: (1) the Institutional Funding Partners; and (2) third-party investors of the consolidated Trusts and asset‑backed securitized debts. Depending on the arrangements among the Group, the Borrowers and the funding partners, the underlying loans are accounted for as “on-balance sheet loans” or “off-balance sheet loans,” where applicable. On‑balance sheet loans Loans funded by establishment of the consolidated Trusts and issuance of asset‑backed securitized debts The Group establishes business relationships with Trusts from time to time. Pursuant to applicable arrangements, the Group invested in the financing receivables using funds from the consolidated Trusts. The Trusts are administered by third-party trust companies, which act as the trustees, with funds contributed by the Group and/or the third-party investors for the purposes of providing returns to the beneficiary of the Trusts. Since these Trusts only invest in financing receivables generated from the Group’s Platform and APP, the Group has power to direct the activities of the Trusts. The Group has the obligation to absorb losses or the right to receive benefits from the Trusts that could potentially be significant to the Trusts. As a result, the Trusts are considered consolidated VIEs of the Group under Accounting Standards Codification (“ASC”) 810, Consolidation. The Group also issues private asset-backed securities (“ABS”) to diversify its funding sources. The Group is considered the primary beneficiary of these ABS plans as it has power to direct the activities that most significantly impact economic performance of the ABS plans, and has the obligation to absorb losses of or the right to receive benefits from the ABS plans that could potentially be significant to the ABS plans. As a result, the Group consolidated the ABS plans in the consolidated financial statements under ASC 810, Consolidation . Therefore, loans funded by the consolidated Trusts and asset-backed securitized debts remain at the Group and are recorded as “Financing receivables, net” on the Consolidated Balance Sheets. The proceeds received from third‑party investors of the consolidated Trusts and asset-backed securitized debts are recorded as “Funding Debts” (Note 2(h)). Cash received via consolidated Trusts that has not yet been distributed is recorded as “Restricted cash.” Off‑balance sheet loans Loans funded by certain Institutional Funding Partners such as third-party commercial banks or consumer finance companies For loans funded by the proceeds from certain Institutional Funding Partners such as third-party commercial banks or consumer finance companies, each underlying loan and Borrower has to be approved by the third-party commercial banks or consumer finance companies individually. Once the loan is approved by and originated by the third-party commercial bank or consumer finance company, the fund is provided by the third-party commercial bank or consumer finance company to the Borrower and a lending relationship between the Borrower and the third-party commercial bank or consumer finance company is established through a loan agreement. Effectively, the Group offers loan facilitation and matching services to the Borrowers who have credit needs and the commercial banks or consumer finance companies who originate loans directly to Borrowers referred by the Group. The Group continues to provide account maintenance and payment processing services to the Borrowers over the term of the loan agreement. Under this scenario, the Group determines that it is not the legal lender or borrower in the loan origination and repayment process. Accordingly, the Group does not record financing receivables arising from these loans nor Funding Debts to the Institutional Funding Partners. Measurement of financing receivables Financing receivables are measured at amortized cost and reported on the Consolidated Balance Sheets at outstanding principal adjusted for any charge‑offs, the allowance for credit losses, and net deferred origination fees on originated financing receivables. The Group recognizes financing income over the terms of the financing receivables using the effective interest rate method. Refer to Note 2(l) for details. For financing receivables initially generated from online sales with installment payment terms on the Group’s Platform or APP, if they are subsequently funded by on-balance sheet loans, the Group considers that the financing receivables are not settled or extinguished, and therefore continues to account for these financing receivables according to the installment payment terms. If the financing receivables are subsequently funded by off-balance sheet loans, the Group considers that these financing receivables are settled and extinguished with the proceeds from the off-balance sheet loans as facilitated by the Group. Accrued interest income on financing receivables is calculated based on the effective interest rate of the loan and recorded as financing income as earned. Financing receivables are placed on non‑accrual status upon reaching 90 days past due. When a financing receivable is placed on non‑accrual status, the Group stops accruing interest and reverses all accrued but unpaid interest as of such date. The Group considers a financing receivable to be delinquent when a monthly payment is one day past due. When the Group determines it is probable that it will be unable to collect unpaid principal amount on the receivable, the remaining unpaid principal balance is charged off against the allowance for credit losses. Generally, charge‑offs occur after the 180th day of delinquency. Financing income for non-accrual financing receivables is recognized on a cash basis. Cash receipt of non‑accrual financing receivables would be first applied to any unpaid principal, late payment fees, if any, before recognizing financing income. The Group does not resume accrual of interest after a loan has been placed on non-accrual status. (g) Allowance for credit losses The Group mainly has the following types of financial assets that are subject to credit losses of the customers: financing receivables, contract assets and receivables. The Group applies Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This guidance replaces the existing “incurred loss” methodology, and introduces a forward-looking expected loss approach referred to as a current expected credit losses (“CECL”) methodology. The CECL methodology requires that the full amount of expected credit losses for the lifetime be recorded at the time the financial asset is originated or acquired, and adjusted for changes in expected lifetime credit losses subsequently, which requires earlier recognition of credit losses. The lifetime expected credit losses are determined using a pooled basis within respective credit risk classification levels of the underlying customers, taking into consideration the historical credit loss experience, the current credit quality of the portfolio and application of macroeconomic forecasts. The Group’s CECL model and methodologies are based on the likelihood of customers defaulting (i.e., Probability of Default, or PD) and the resulting losses of customers’ defaults (i.e. Loss Given Default, or LGD) and Exposure at Default (“EAD”), or CECL=PD*LGD*EAD. The Group considers the PD with its historical information of customers’ payment behaviors and loan performance, and further adjusts for the impacts from observed industry experience. PDs are based on respective internal risk grades assigned to each of the customers by the Group. LGD is determined based on historical information of the extent of loss on a defaulted exposure. EAD is calculated based on the amounts the Group expected to be owed at the time of default, over the term of the loans. The Group also incorporates the forward-looking information in the CECL, taking into account a range of forecasts of macroeconomic conditions over the expected life of the loans. The macroeconomic factors used in model include variables that have historically been key drivers of increases and decreases in credit losses, such as Consumer Price Index and M2 (a measurement of broad money supply including cash and deposits, which is published by People's Bank of China on a routine basis). The expected life of each loan is determined based on the contractual term. The allowance for credit losses also includes management overlays which allow management to reflect the uncertain nature of economic forecasting and account for model imprecision and concentration risk. The CECL methodology is applicable to estimation of credit losses of financial assets measured at amortized cost, primarily including financing receivables, contract assets and receivables of the Group. The CECL methodology also applies to certain off-balance sheet credit exposures, such as financial guarantees not accounted for as derivatives. The financial guarantees provided for the Group’s off-balance sheet loans accounted for under ASC 460 are in the scope of ASC 326 and subject to the CECL methodology. The expected credit losses (the contingent aspect) of the guarantee shall be accounted for in addition to and separately from the guarantee liability (the noncontingent aspect) accounted for under ASC 460. Further, the contingent liability is determined using CECL lifetime methodology. (h) Funding debts For the proceeds received from the funding partners, including the third-party investors of the consolidated Trusts and asset-backed securitized debts, and certain Institutional Funding Partners, to fund the Group’s on-balance sheet loans, the Group records them as funding debts (“Funding Debts”) on its Consolidated Balance Sheets. Accrued interest payable is calculated based on the contractual interest rates of funding debts and convertible notes. (i) Guarantee receivables and liabilities For the off-balance sheet loans funded by certain Institutional Funding Partners, the Group provides deposits and replenish such deposits from time to time to the Institutional funding partners by directly compensating them for principal and interest payment in the event of the Borrowers’ defaults, which are accounted for as guarantee liabilities under ASC 460, Guarantees. Starting from 2019, the Group started to cooperate with third-party insurance companies and guarantee companies that directly provide guarantee services to certain Institutional Funding Partners, and no longer replenished the deposits made to these Institutional Funding Partners. According to relevant financial guarantee arrangements, third-party insurance companies and guarantee companies will provide the principal and interest payment to these Institutional Funding Partners, in case of Borrowers’ defaults. However, the Group is required to provide deposits and replenish such deposits from time to time to the bank accounts of these insurance compan |
Financing Receivables, Net
Financing Receivables, Net | 12 Months Ended |
Dec. 31, 2023 | |
Financing Receivable, after Allowance for Credit Loss [Abstract] | |
Financing Receivables, Net | 3. FINANCING RECEIVABLES, NET Financing receivables, net as of December 31, 2022 and 2023 consisted of the followings: As of December 31, 2022 2023 (RMB in thousands) Short-term: Short-term financing receivables 6,478,949 3,933,553 Accrued interest receivable 103,158 69,041 Allowance for credit losses ( 184,187 ) ( 58,594 ) Total short-term financing receivables, net 6,397,920 3,944,000 Long-term: Long-term financing receivables 473,545 203,601 Allowance for credit losses ( 13,220 ) ( 3,087 ) Total long-term financing receivables, net 460,325 200,514 These balances represent short‑term and long‑term financing receivables generated from loans transacted on the Group’s Platform and APP with an original term generally up to three years and do not have collateral. As of December 31, 2022 and 2023, loans that were charged-off in accordance with the Group’s standard charge-off policy were RMB 4,162 million and RMB 4,925 million, respectively. The Group determined it was probable that the Group will be unable to collect the unpaid principal amounts on those loans. The following table summarizes the balances of financing receivables by due date as of December 31, 2022 and 2023: As of December 31, 2022 2023 (RMB in thousands) Due in months 0 - 12 6,478,949 3,933,553 13 - 24 370,652 180,719 25 - 36 59,217 46 Thereafter 43,676 22,836 Total financing receivables (excluding accrued interest receivable) 6,952,494 4,137,154 The activities in the allowance for credit losses of financing receivables for the years ended December 31, 2021, 2022 and 2023, respectively, consisted of the following: For the year ended 2021 2022 2023 (RMB in thousands) Beginning balances ( 529,162 ) ( 328,231 ) ( 197,407 ) Provision for credit losses ( 401,104 ) ( 437,477 ) ( 627,061 ) Charge-offs 912,260 791,046 939,992 Recoveries from prior charge-offs ( 310,225 ) ( 222,745 ) ( 177,204 ) Ending balances ( 328,231 ) ( 197,407 ) ( 61,681 ) Aging analysis of past due financing receivables as of December 31, 2022 and 2023 are as follows: RMB in thousands 1 - 29 30 - 59 60 - 89 90 - 179 180 Days Total Current Total December 31, 2022 151,784 98,289 81,652 209,738 — 541,463 6,411,031 6,952,494 December 31, 2023 94,448 76,449 65,816 183,054 — 419,767 3,717,387 4,137,154 Financing receivables amounting to RMB 210 million and RMB 183 million as of December 31, 2022 and 2023, respectively, were in non‑accrual status. Financing income for non‑accrual financing receivables is recognized on a cash basis. Cash receipt of non‑accrual financing receivables would be first applied to any unpaid principal, late payment fees, if any, before recognizing financing income. For the years ended December 31, 2021, 2022 and 2023, interest and late payment fees earned from non‑accrual financing receivables were RMB 136 million, RMB 107 million and RMB 74.1 million, respectively. As of December 31, 2022 and 2023, financing receivables amounting to RMB 734 million and RMB 190 million have been pledged as collaterals pursuant to investment agreements with certain Institutional Funding Partners (Note 10). Credit Quality Indicators The following table provides information on delinquency, which is the primary credit quality indicator for financing receivables. The amortized cost of loans was presented by year of origination for five origination years and beyond, as of December 31, 2023: Loans originated in RMB in thousands 1 - 29 30 - 59 60 - 89 90 - 179 180 Days Total Current Total 2019 and before — — — — — — — — 2020 2 5 7 36 — 50 8 58 2021 393 269 272 1,255 — 2,189 10,655 12,844 2022 9,838 8,031 8,450 34,667 — 60,986 251,940 312,926 2023 84,215 68,144 57,087 147,096 — 356,542 3,454,784 3,811,326 Total 94,448 76,449 65,816 183,054 — 419,767 3,717,387 4,137,154 |
Contract Assets and Receivables
Contract Assets and Receivables, Net | 12 Months Ended |
Dec. 31, 2023 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Contract Assets and Receivables, Net | 4. CONTRACT ASSETS AND RECEIVABLES, NET The following table provides information about the Group’s contract assets and receivables and guarantee receivables with its customers: As of December 31, 2022 2023 (RMB in thousands) Short-term: Contract assets 2,507,733 4,193,755 Allowance for credit losses of contract assets ( 97,712 ) ( 278,202 ) Contract assets, net 2,410,021 3,915,553 Service fees receivable 631,641 616,617 Allowance for credit losses of service fees receivable ( 68,292 ) ( 56,400 ) Service fees receivable, net 563,349 560,217 Guarantee receivables 971,651 1,738,745 Allowance for credit losses of guarantee receivables ( 50,846 ) ( 101,534 ) Guarantee receivables, net 920,805 1,637,211 Long-term: Contract assets 422,307 404,937 Allowance for credit losses of contract assets ( 40,248 ) ( 46,721 ) Contract assets, net 382,059 358,216 Guarantee receivables 235,486 256,719 Allowance for credit losses of guarantee receivables ( 12,494 ) ( 15,117 ) Guarantee receivables, net 222,992 241,602 The activities in the allowance for credit losses of contract assets and receivables for the years ended December 31, 2021, 2022 and 2023, respectively, consisted of the following: For the Year Ended December 31, 2021 2022 2023 (RMB in thousands) Beginning balances ( 160,342 ) ( 247,301 ) ( 269,592 ) Provisions ( 531,237 ) ( 461,774 ) ( 622,564 ) Charge-offs 523,613 561,988 438,002 Recoveries from prior charge-offs ( 79,335 ) ( 122,505 ) ( 43,820 ) Ending balances ( 247,301 ) ( 269,592 ) ( 497,974 ) As of December 31, 2022 and 2023, the balance of contract assets and receivables past due were RMB 257 million a nd RMB 443 million, respectively. 82 % of c ontract assets and receivables balance as of December 31, 2023 were originated in 2023. |
Prepayments and Other Current A
Prepayments and Other Current Assets | 12 Months Ended |
Dec. 31, 2023 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Prepayments And Other Current Assets | 5. PREPAYMENTS AND OTHER CURRENT ASSETS As of December 31, 2022 2023 (RMB in thousands) Receivables from third-party payment service providers (i) 377,928 553,844 Deposits to Institutional Funding Partners (ii) 212,199 237,823 Prepayment to inventory suppliers 55,958 67,222 Prepaid input value-added tax 37,089 41,214 Rental deposits and other current assets 51,107 108,183 Loans at fair value(iii) 352,672 420,483 Total prepayments and other current assets 1,086,952 1,428,769 (i) The Group opened accounts with third‑party payment service providers mainly to facilitate collection and transfer of the funds, interest and service fees from/to the Borrowers and Institutional Funding Partners. The balance of receivables from third‑party payment service providers represents amounts temporarily held in these accounts. (ii) The balances represent deposits made to the Institutional Funding Partners to directly satisfy the principal and interest payment obligations in case of Borrowers’ defaults. (iii) The Group elected the fair value option for the loans acquired or purchased from the relevant funding partners. As described in Note 2(j ), the Group uses significant unobservable inputs to measure the fair value of these loans. |
Property, Equipment and Softwar
Property, Equipment and Software, Net | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Equipment and Software, Net | 6. PROPERTY, EQUIPMENT AND SOFTWARE, NET As of December 31, 2022 2023 (RMB in thousands) Computers and equipment 204,314 270,236 Furniture and fixtures 19,311 17,967 Leasehold improvement 66,618 69,235 Software 93,309 102,129 Construction in progress 149,777 295,283 Total property, equipment and software 533,329 754,850 Accumulated depreciation and amortization ( 248,736 ) ( 308,210 ) Total property, equipment and software, net 284,593 446,640 Depreciation and amortization expenses on property, equipment and software for the years ended December 31, 2021, 2022 and 2023 were RMB 56.4 million, RMB 60.5 million and RMB 71.0 million, respectively. |
Land Use Rights, Net
Land Use Rights, Net | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Land Use Rights, Net | 7. LAND USE RIGHTS, NET 2022 2023 (RMB in thousands) Gross carrying amount 1,032,000 1,032,000 Accumulated amortization ( 100,333 ) ( 134,733 ) Net carrying amount 931,667 897,267 Land use rights represent the land use rights acquired for the purpose of constructing offices. In 2020, the Group obtained the land use rights from local authorities with a cash consideration of RMB 1.0 billion, which is being amortized on a straight-line basis over the term of the land use right period, approximately 30 years. The Group has made the first installment payment of RMB 516 million in February 2020, and the second installment payment of RMB 516 million in February 2021. Amortization expense related to land use rights for each of the three years in the period ended December 31, 2023 is RMB 34.4 million. The land use rights were pledged for the long-term borrowing of the Group. Refer to Note 11. Borrowings. As of December 31, 2023, amortization expenses for future periods are estimated to be as follows: 2023 (RMB in thousands) 2024 34,400 2025 34,400 2026 34,400 2027 34,400 2028 34,400 Thereafter 725,267 Total expected amortization expenses 897,267 |
Long-Term Investments
Long-Term Investments | 12 Months Ended |
Dec. 31, 2023 | |
Long-Term Investments [Abstract] | |
Long-Term Investments | 8. LONG‑TERM INVESTMENTS Equity investments Equity investments accounted for using the measurement alternative The Group's equity investments that do not have readily determinable fair value are accounted for using the measurement alternative. As of December 31, 2022 and 2023, the carrying value of the Group’s equity investments accounted for using the measurement alternative was RMB 213 million and RMB 120 million, respectively. In 2021, the Group disposed the shares held in a company in India and realized all the previous upward adjustment. The cumulative unrealized up ward adjustments of fair value of equity investments as of December 31, 2021, 2022 and 2023 was nil . In 2021 and 2022, no impairment charges was recorded related to investments without readily determinable fair value. In 2023, the Group recognized RMB 92.3 million impairment related to investments without readily determinable fair value due to the lower-than-expected financial performance. As of December 31, 2023, the cumulative impairment charges to the equity investment accounted for using the measurement alternative method was RMB 176 million. The following table summarizes the movement of the carrying value of the Group’s equity investments accounted for using the measurement alternative for the year ended De cember 31, 2021, 2022 and 2023: As of December 31, 2021 2022 2023 (RMB in thousands) Long-term investment at the beginning of the year 264,151 212,700 212,700 Addition 16,700 — — Disposal ( 67,475 ) — — Impairment — — ( 92,316 ) Foreign currency translation adjustments ( 676 ) — — Long-term investment at the end of the year 212,700 212,700 120,384 Equity investments accounted for using the equity method As of December 31, 2022 and 2023, the carrying value of the Group’s equity investments accounted for using the equity method were RMB 16.8 million and RMB 15.8 million, respectively. In 2021, the Group further invested in the joint venture in Indonesia with a cash consideration of RMB 3.0 million. In 2022, the Group disposed the investment in two joint ventures in China, which resulted in the decrease of RMB 80.0 million in equity investments from December 31, 2021. For the years ended December 31, 2021, 2022 and 2023, the Group recorded investment loss of RMB 4.0 million, RMB 4.1 million and RMB 1.5 million respectively in “Investment loss”, as a result of its proportionate share of equity investees’ net losses. Debt investment The debt investment is in the form of an interest-bearing loan to an investee, acquired by the Group in September 2018, with a principal of RMB 120 million that matures in July 2026 . The coupon rate of the loan acquired by the Group is a floating rate linked to the benchmark rate of the People’s Bank of China. The loan was to provide the initial operating fund to the investee. For the years ended December 31, 2022, the Group recorded expected credit loss of RMB 36.9 million and presented it in “Investment loss.” As of December 31, 2022 and 2023, the Group’s loan receivable recorded at amortized cost were RMB 119 million. The interest income in relation to this loan receivable were nil for the years ended December 31, 2021, 2022 and 2023. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | 9. FAIR VALUE MEASUREMENT Recurring The following table presents the fair value hierarchy for the Group’s assets and liabilities that are measured and recorded at fair value on a recurring basis as of December 31, 2022 and 2023: December 31, 2022 Level 1 Level 2 Level 3 Balances at (RMB in thousands) Assets Restricted term deposit — 1,061,858 — 1,061,858 Short-term investments 270,000 270,000 Loans at fair value — — 352,672 352,672 Total assets — 1,331,858 352,672 1,684,530 Liabilities Guarantee derivative liabilities — — 861,304 861,304 Total liabilities — — 861,304 861,304 December 31, 2023 Level 1 Level 2 Level 3 Balances at (RMB in thousands) Assets Restricted term deposit — 105,182 — 105,182 Short-term investments — 200,000 — 200,000 Loans at fair value — — 420,483 420,483 Total assets — 305,182 420,483 725,665 Liabilities Guarantee derivative liabilities 1,357,601 1,357,601 Total liabilities — — 1,357,601 1,357,601 The fair value of the Group’s restricted term deposit and short-term investments is determined based on the prevailing interest rates for similar products in the market (Level 2). For the off‑balance sheet loans funded by certain Institutional Funding Partners, as the Group’s financial guarantee provided does not trade in an active market with readily observable quoted prices, the Group uses significant unobservable inputs to measure the fair value of these guarantee derivative assets or liabilities (Level 3). For the off-balance sheet loans acquired or purchased by the Group that are not traded in an active market with readily observable prices, the Group uses discounted cash flow methodology involving significant unobservable inputs to measure the fair value of these loans (Level 3). Transfers into or out of fair value hierarchy classifications are made if the significant inputs used in the financial models measuring the fair value of the assets and liabilities became unobservable or observable in the current marketplace. These transfers are considered to be effective as of the beginning of the period in which they occur. The Group did not transfer any assets or liabilities in or out of Level 2 and Level 3 during each of the periods presented. Significant Unobservable Inputs The Group uses a discounted cash flows model to estimate fair value of the guarantee derivative assets or liabilities, and fair value of loans acquired or purchased. The following table presents quantitative information about the significant unobservable inputs used for the Group’s Level 3 fair value measurement as of December 31, 2022 and 2023: Range of Inputs December 31, 2022 December 31, 2023 Financial Unobservable Minimum Maximum Weighted- Minimum Maximum Weighted- Guarantee derivatives Cumulative loss rates (i) 1.3 % 12.1 % 7.8 % 1.4 % 11.8 % 7.4 % Margins on cost of guarantee services 10.0 % 10.0 % 10.0 % 10.0 % 10.0 % 10.0 % Loans at fair value Expected future recovery rates (ii) 4.8 % 4.8 % 4.8 % 4.2 % 4.2 % 4.2 % (i) Expressed as a percentage of the original principal balance of the loans. (ii) Expressed as a percentage of the principal balance of the loans acquired/purchased. The following table summarizes the activities related to fair value of the guarantee derivatives: For the Year Ended December 31, 2021 2022 2023 (RMB in thousands) Fair value of guarantee derivative liabilities at beginning of the year (Level 3) 252,613 1,473,853 861,304 Cash collection 3,107,316 4,436,911 5,512,818 Net cash payout ( 2,344,922 ) ( 4,435,587 ) ( 5,284,198 ) Change in fair value (i) 458,846 ( 613,873 ) 267,677 Fair value of guarantee derivative liabilities at end of the year (Level 3) 1,473,853 861,304 1,357,601 (i) Recognized as “Change in fair value of financial guarantee derivatives, net” on the Consolidated Statements of Operations. The following table summarizes the activities related to fair value of the loans acquired or purchased: For the Year Ended December 31, 2022 2023 (RMB in thousands, except for percentages) Fair value of loans acquired/purchased at beginning of the year (Level 3) 252,970 352,672 Fair value at inception of loans acquired/purchased 4,296,611 5,154,833 Cash collection ( 4,305,417 ) ( 5,120,379 ) Change in fair value (i) 108,508 61,309 Disposal — ( 27,952 ) Fair value of loans acquired/purchased at end of the year (Level 3) 352,672 420,483 (i) Recognized as “Change in fair value of loans at fair value” on the Consolidated Statements of Operations. Significant Recurring Level 3 Fair Value Liability Input Sensitivity Changes in certain of the unobservable inputs noted above may have a significant impact on the fair value of the guarantee derivative assets and liabilities. The following table summarizes the effect adverse changes in estimate would have on the fair value of the guarantee derivative assets and liabilities as of December 31, 2022 and 2023, respectively, given hypothetical changes in the cumulative loss rates: As of December 31, 2022 2023 (RMB in thousands, except for percentages) Weighted average cumulative loss rates(i) 7.8 % 7.4 % Increase/(decrease) in fair value of guarantee derivative liabilities if the cumulative loss rates: Increase by 10% (ii) 443,526 544,318 Decrease by 10% (ii) ( 443,526 ) ( 544,318 ) (i) Expressed as a percentage of the original principal balance of the loans. (ii) Expressed as a percentage of the original cumulative loss rates. Changes in certain of the unobservable inputs noted above may have a significant impact on the fair value of the loans at fair value. The following table summarizes the effect adverse changes in estimate would have on the fair value of the loans at fair value as of December 31, 2022 and 2023, given hypothetical changes in the expected future recovery rates: For the Year Ended December 31, 2022 2023 (RMB in thousands, except for percentages) Weighted average expected future recovery rates(i) 4.8 % 4.2 % Increase/(decrease) in fair value of loans at fair value if the expected future recovery rates: Increase by 10% (ii) 35,267 42,048 Decrease by 10% (ii) ( 35,267 ) ( 42,048 ) (i) Expressed as a percentage of the principal balance of the loans acquired/purchased. (ii) Expressed as a percentage of the original expected future recovery rates. Other financial instruments The followings are other financial instruments not measured at fair value on the Consolidated Balance Sheets, but for which the fair value is estimated for disclosure purposes. Cash and cash equivalents, current restricted cash, short-term investments, amounts due from related parties, deposits to insurance companies and guarantee companies, short-term financing receivables and short-term contract assets and receivables are financial assets with carrying amounts that approximate fair value due to their short-term nature. Accounts payable, amounts due to related parties, short‑term borrowings, short‑term funding debts and convertible notes are financial liabilities with carrying amounts that approximate fair value because of their short-term nature. Non‑recurring The Group measures certain financial assets at fair value on a non-recurring basis only if an impairment charge were to be recognized. The Group’s long-term equity investments are measured at fair value on a nonrecurring basis under measurement alternative, if an impairment loss is charged or fair value adjustment is made for an observable price change in an orderly transaction for identical or similar investments of the same issuer. The related inputs used are classified as Level 3 fair value measurement. The Group’s non‑financial assets, such as property, equipment and software, would be measured at fair value only if they were determined to be impaired. As of December 31, 2023, the company measured one investment at fair value on a nonrecurring basis using valuation methodology under the market approach. The significant unobservable inputs (level 3) include enterprise value to net asset multiple which was determined based on the weighted average of selected comparable companies. The fair value of the long-term investment was RMB 102 million as of December 31, 2023, and the Company recognized an impairment of RMB 92.3 million accordingly. Significant Unobservable Inputs The following table presents quantitative information about the significant unobservable inputs used for the Group’s Level 3 fair value measurement as of December 31, 2023: Range of Inputs December 31, 2023 Unobservable Input Minimum Maximum Weighted-Average Value to net asset multiple 0.34 0.74 0.65 Significant Level 3 Input Sensitivity Changes in certain of the unobservable inputs noted above may have a significant impact on the fair value of the investment. The following table summarizes the effect adverse changes in estimate would have on the fair value of the investment as of December 31, 2023, given hypothetical changes in the value to net asset multiple: For the Year Ended December 31, 2023 (RMB in thousands, except for percentages) Value to net asset multiple 0.65 Increase/(decrease) in fair value of the investment: Increase by 10% 10,388 Decrease by 10% ( 10,388 ) |
Funding Debts
Funding Debts | 12 Months Ended |
Dec. 31, 2023 | |
Funding Debts | |
Debt Instrument [Line Items] | |
Funding Debts | 10. FUNDING DEBTS The following table summarizes the Group’s outstanding funding debts as of December 31, 2022 and 2023, respectively: As of December 31, 2022 2023 (RMB in thousands) Short-term: Liabilities to funding partners 4,385,253 3,483,196 Total short-term funding debts 4,385,253 3,483,196 Long-term: Liabilities to funding partners 1,334,105 455,800 Total long-term funding debts 1,334,105 455,800 For the years ended December 31, 2022 and 2023, the following significant activities took place related to the Group’s funding partners: Liabilities to funding partners The Group finances its on-balance sheet loans using the proceeds from funding partners, including the third-party investors of the consolidated Trusts and asset-backed securitized debts, and certain Institutional Funding Partners. Those liabilities to funding partners were bearing weighted average interest rates of 9.3 % and 9.1 % as of December 31, 2022 and 2023, respectively. As of December 31, 2022 and 2023, funding partners funded an aggregate amount of RMB 6,372 million and RMB 3,893 million in outstanding financing receivables originated by the Group, respectively. As of December 31, 2022 and 2023, financing receivables amounting to RMB 734 million an d RMB 190 m illion were pledged as collaterals to secure the underlying loans funded by funding partners, respectively. Refer to note 21. Commitments and Contingencies for maturities of funding debts. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2023 | |
Short-Term Debt [Abstract] | |
Borrowings | 11. BORROWINGS As of December 31, 2022 and 2023, the Group had short-term borrowings primarily from banks with weighted average interest rates of approximately 3.6 % and 3.6 % pe r annum, respectively. The group also had long-term borrowing from banks with average interest rate of 4.3 % and 4.3 % per annum as of December 31, 2022 and 2023. Such borrowings are all denominated in RMB. All of the borrowings are designated to support the Group’s general operation or construction in progress and could not be used to fund the Group's financing receivables. The Group’s certain short-term borrowings, amounting to RMB 953 million and RMB 100 million, as of December 31, 2022 and 2023, respectively, are collateralized by a pledge of the Group’s time deposits. As of December 31, 2022 and 2023 the outstanding balance of short-term borrowings was secured by RMB 1,062 million and RMB 100 million time deposits of the Group pledged as collateral, respectively. The Group’s long-term borrowings, amounting to RMB 150 million and RMB 524 million, as December 31, 2022 and 2023, are collateralized by a pledge of the Group’s land use right. |
Accruals and Other Current Liab
Accruals and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accruals and Other Current Liabilities | 12. ACCRUALS AND OTHER CURRENT LIABILITIES As of December 31, 2022 2023 (RMB in thousands) Guarantee derivative liabilities at fair value (Note 9) 861,304 1,357,601 Funds payable to Institutional Funding Partners (i) 382,545 1,071,301 Tax payable 746,563 869,529 Accrued payroll and welfare 400,886 392,176 Accrued risk management fees 186,331 220,279 Accrued marketing expenses 130,937 150,927 Other accrued expenses 65,557 83,381 Amount due to third party sellers 102,613 80,099 Other payables 24,916 67,348 Accrued professional fees and outsourcing fees 61,604 59,668 Short-term leasing liabilities 50,747 40,942 Deferred service fees 31,112 36,614 Accrued interest payable 12,354 4,389 Total accruals and other current liabilities 3,057,469 4,434,254 (i) The payable balances mainly include repayment received from Borrowers but not yet transferred to accounts of Institutional Funding Partners due to the settlement time lag. |
Related Party Balances and Tran
Related Party Balances and Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Balances and Transactions | 13. RELATED PARTY BALANCES AND TRANSACTIONS The table below sets three major related parties of the Group and their relationships with the Group: Entity or individual name Relationship with the Group Ji'an Aoxinlian Information Consulting Service Co., Ltd.(“Ji'an Aoxinlian”) Ji’an Aoxinlian is controlled by the immediate family member of the Group's senior management. Shenzhen Aileyou Information Technology Co., Ltd.(Aileyou)* Aileyou is an equity investment of the Group. L.P. Technology Holdings Limited (“L.P.”) L.P. is an equity investment of the Group. *In June 2022, the Company has fully disposed all its shareholding in Aileyou, and which was no longer a related party of the Company after the disposal. (a) The Group entered into the following significant related party transactions: (i) Provision of services to related parties For the Year Ended December 31, 2021 2022 2023 (RMB in thousands) Provision of services to Aileyou 7,731 631 - Total 7,731 631 - (ii) Purchase of goods and services from related parties For the Year Ended December 31, 2021 2022 2023 (RMB in thousands) Purchases of goods and services from Ji'an Aoxinlian 20,493 16,177 14,753 Total 20,493 16,177 14,753 (b) The Group had the following significant related party balances: (i) Amounts due from related parties As of December 31, 2022 2023 (RMB in thousands) Due from L.P. by the Group* 6,602 6,989 Total 6,602 6,989 *The amount represents the funds provided by the Group to L.P., primarily including loan of US$ 940,000 . (ii) Amounts due to related parties As of December 31, 2022 2023 (RMB in thousands) Due to Ji'an Aoxinlian by the Group 4,669 2,958 Total 4,669 2,958 The Group believes that the terms of the transactions with the related parties are comparable to the terms of arm’s‑length transactions with third‑party vendors and customers. |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Taxation | 14. TAXATION a) Value‑added tax (“VAT”) During the periods presented, the Group is subject to 13 % VAT, when applicable, for online direct sales revenues from sales of electronic products, home appliance products and general merchandise products, and 6 % for premium membership fees, third-party sellers’ commission fees, and financial services income earned from rendering services to its customers in the PRC. The Group is also subject to surcharges on VAT payments according to PRC tax law. b) Income tax Cayman Islands The Company was incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, the Company is not subject to tax on either income or capital gain. Additionally, the Cayman Islands does not impose a withholding tax on payments of dividends to shareholders. Hong Kong Under the current Hong Kong Inland Revenue Ordinance, the Company’s subsidiaries incorporated in Hong Kong are subject to 16.5 % income tax on their taxable income generated from operations in Hong Kong. Additionally, payments of dividends by the subsidiaries incorporated in Hong Kong to the Company are not subject to any Hong Kong withholding tax. Commencing from the year of assessment of 2018, the first HK$ 2 million of profits earned by the Company’s subsidiaries incorporated in Hong Kong will be taxed at half the current tax rate (i.e. 8.25 %) while the remaining profits will continue to be taxed at the existing 16.5 % tax rate. Mainland China The Enterprise Income Tax (“EIT”) Law generally applies a statutory income tax rate of 25 % to all enterprises but grants preferential tax treatment to qualified HNTEs and Software Enterprises. Shenzhen Lexin Software qualified as Software Enterprises and was entitled to an income tax exemption for the years of 2017 and 2018, a preferential income tax rate of 10 % for 2019, and was entitled to a preferential income tax rate of 12.5 % for 2020 and 2021. It qualifies as HNTE from 2022 to 2024, and is entitled to a preferential income tax rate of 15 % from 2022 to 2024. The relevant documents should be retained for future examination purpose. Beihai Aurora and Beihai Lexin Information are entitled for a preferential income tax rate of 15 % for China’s Western Development Strategy. Therefore, Beihai Aurora and Beihai Lexin Information applied a preferential income tax rate of 15 % from 2023 to 2030. In the meantime, the local tax bureau in Guangxi exempted 40 % of the income based on the preferential income tax rate of 15 % from 2021 to 2025. Beihai Dulin is entitled to enjoy a preferential income tax rate of 9 % from 2023 to 2028. The relevant documents should be retained for future examination purpose. Shenzhen Lexin Information qualified as “Software Enterprises Encouraged by the State” from 2021. As a result, Shenzhen Lexin Information Service Co.,Ltd. is entitled to an income tax exemption for the years of 2021 and 2022 and a preferential income tax rate of 12.5 % from 2023 to 2025. The “Software Enterprises Encouraged by the State” is subject to review by the relevant authorities every year. The Group’s other PRC subsidiaries, the VIEs and the VIEs’ subsidiaries are subject to the statutory income tax rate of 25 %. PRC Withholding Tax on Dividends Under the EIT Law enacted by the National People’s Congress of PRC on March 16, 2007 and its implementation rules which became effective on January 1, 2008, dividends generated after January 1, 2008 and payable by FIEs in the PRC to its foreign investors who are non‑resident enterprises are subject to a 10 % withholding tax, unless any such foreign investor’s jurisdiction of incorporation has a tax treaty with the PRC that provides for a different withholding arrangement. Under the taxation arrangement between the PRC and Hong Kong, a qualified Hong Kong tax resident which is the “beneficial owner” and directly holds 25% or more of the equity interest in a PRC resident enterprise is entitled to a reduced withholding tax rate of 5 %. The Cayman Islands, where the Company was incorporated, does not have a tax treaty with the PRC. Starting from 2023, the Company decided to remit certain percentage of the annual profits of its PRC subsidiaries to their overseas parent company for dividend distribution purposes. The Group accrued RMB 21.4 million withholding tax liabilities based on 10 % withholding income tax rate for certain percentage of the annual profits. As of December 31, 2023, the unrecognized tax liabilities related to accumulated undistributed profits of RMB 6,268 million from the PRC subsidiaries was RMB 627 million. The Group still intends to indefinitely reinvest these remaining earnings in its PRC subsidiaries. The Company has not accrued any tax for the outside basis difference represented by the accumulated undistributed profits of the consolidated VIEs, with the unrecognized tax liabilities amounted to RMB 208 million at December 31, 2023 as, after review, it was determined that relevant tax laws and regulations provide for tax-free transfer of such amounts to the Company’s PRC subsidiaries. The EIT Law includes a provision specifying that legal entities organized outside of the PRC will be considered resident enterprises for the PRC income tax purposes if the place of effective management or control of the entity is within the PRC. The implementation rules to the EIT Law provide that non‑resident legal entities will be considered as PRC resident enterprises if substantial and overall management and control over the manufacturing and business operations, personnel, accounting, properties, etc., occurs within the PRC. Despite the present uncertainties resulting from the limited PRC tax guidance on the issue, the Group does not believe that the Group’s entities organized outside of the PRC should be treated as resident enterprises for the PRC income tax purposes. If the PRC tax authorities subsequently determine that the Company and its subsidiaries registered outside the PRC should be deemed as resident enterprises, the Company and its subsidiaries registered outside the PRC will be subject to the PRC income tax, at a rate of 25 %. The components of the Group’s income before income tax expense for the years ended December 31, 2021, 2022 and 2023 are as follows: For the Year Ended December 31, 2021 2022 2023 (RMB in thousands, except for percentages) Income before income tax expense 2,769,534 1,028,569 1,326,786 Loss from non-China operations ( 30,047 ) ( 94,806 ) ( 86,910 ) Income from China operations 2,799,581 1,123,375 1,413,696 Income tax expense applicable to China operations 428,267 202,466 239,365 Income tax expense applicable to non-China operations 7,151 174 123 PRC Withholding Tax on Dividends — — 21,353 Total income tax expense 435,418 202,640 260,841 Effective tax rate for China operations 15.3 % 18.0 % 16.9 % Effective tax rate for the Group 15.7 % 19.7 % 19.7 % The Group did not incur any interest and penalties related to potential underpaid income tax expenses. Composition of income tax expense for the Group The following table sets forth current and deferred portion of income tax expense of the Company’s China subsidiaries, the VIEs, and subsidiaries of the VIEs: For the Year Ended December 31, 2021 2022 2023 (RMB in thousands) Current income tax expense 831,675 169,299 328,391 Deferred income tax expense ( 396,257 ) 33,341 ( 67,550 ) Income tax expense 435,418 202,640 260,841 The following table sets forth reconciliation between the statutory enterprise income tax (“EIT”) rate and the effective tax rate for the Group: For the Year Ended December 31, 2021 2022 2023 Statutory EIT rate 25.0 % 25.0 % 25.0 % Effect of tax holidays ( 10.8 )% ( 6.8 )% ( 6.5 )% Effect of non-deductible expenses 3.0 % 4.7 % 2.5 % Effect of research and development tax credit ( 2.1 )% ( 6.1 )% ( 4.7 )% Changes in valuation allowance 0.1 % 0.6 % 4.9 % Tax rate difference from statutory rate in other jurisdictions and others 0.5 % 2.3 % ( 3.1 )% Effect of withholding income tax 0.0 % 0.0 % 1.6 % Effective tax rates for the Group 15.7 % 19.7 % 19.7 % The following table sets forth the effect of tax holiday related to the Group: For the Year Ended December 31, 2021 2022 2023 (In thousands, except per share amount) Tax holiday effect 299,578 69,827 86,655 Basic net income per share effect 0.81 0.20 0.26 Diluted net income per share effect 0.72 0.18 0.24 Deferred tax assets and deferred tax liabilities Deferred income tax expense reflects the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The components of the deferred tax assets are as follows: For the Year Ended December 31, 2022 2023 Deferred tax assets - Provision for credit losses 948,177 1,225,097 - Deferred guarantee income and other accrued expenses 807,224 869,708 - Contingent guarantee liabilities 220,527 452,135 - Net operating loss carryforwards 43,237 105,653 - Advertising expenses in excess of deduction limit 5,683 7,248 -Investment related loss - 75,440 Less: valuation allowance ( 13,038 ) ( 78,471 ) Total deferred tax assets 2,011,810 2,656,810 Net deferred tax assets 1,141,761 1,232,092 The components of the deferred tax liabilities are as follows: For the Year Ended December 31, 2022 2023 Deferred tax liabilities -Contract assets and service fees receivable 636,659 1,009,002 -Guarantee receivables 285,949 469,703 -Withholding income tax - 21,353 Total deferred tax liabilities 922,608 1,500,058 Net deferred tax liabilities 52,559 75,340 Movement of valuation allowance For the Year Ended December 31, 2021 2022 2023 Balance at beginning of the year ( 4,429 ) ( 6,756 ) ( 13,038 ) Additions ( 2,659 ) ( 6,783 ) ( 66,967 ) Reversals 332 501 1,534 Balance at end of the year ( 6,756 ) ( 13,038 ) ( 78,471 ) Valuation allowance is provided against deferred tax assets when the Group determines that it is more likely than not that the deferred tax assets will not be utilized in the future. The Group considers positive and negative evidence to determine whether some portion or all of the deferred tax assets will be more likely than not realized. This assessment considers, among other matters, the nature, frequency and severity of recent losses and forecasts of future profitability. These assumptions require significant judgment and the forecasts of future taxable income are consistent with the plans and estimates the Group is using to manage the underlying businesses. The statutory income tax rate of 25 % or applicable preferential income tax rates were applied when calculating deferred tax assets. The Group evaluates a variety of factors including the successful experiences in pre-tax deduction of provision for credit losses in previous years’ annual tax filings, and concluded that the deferred tax assets arose from provision for credit losses are more-likely-than-not to be realized. Therefore, no valuation allowance was provided for the provision for credit losses as of December 31, 2021, 2022 and 2023, respectively. As of December 31, 2022 and 2023, the Group had net operating loss carryforwards of approximately RMB 175 million and RMB 423 million, respectively, which arose from the Group’s certain subsidiaries, the VIEs and the VIEs’ subsidiaries established in the PRC. As of December 31, 2022 and 2023, deferred tax assets arose from the net operating loss carryforwards amounted to RMB 48.4 million and RMB 312 million was provided for full valuation allowance respectively, while the remaining RMB 126 million and RMB 111 million is expected to be utilized prior to expiration considering future taxable income for respective entities. As of December 31, 2023, the net operating loss carryforwards of RMB 2.4 million, RMB 11.3 million, RMB 35.4 million, RMB 82.5 million and RMB 291 million will expire in 2024, 2025, 2026, 2027 and 2028, respectively, if not utilized. Uncertain Tax Position The Group did not identify any significant unrecognized tax benefits for each of the periods presented. The Group did not incur any interest related to unrecognized tax benefits, did not recognize any penalties as income tax expense and also does not anticipate any significant change in unrecognized tax benefits within 12 months from December 31, 2023. |
Convertible Notes
Convertible Notes | 12 Months Ended |
Dec. 31, 2023 | |
Convertible Debt [Abstract] | |
Convertible Notes | 15. CONVERTIBLE NOTES In September 2019, the Company issued and sold convertible notes (the “Notes”) in an aggregate principal amount of US$ 300.0 million to PAG, a leading Asia-focused private equity firm, through a private placement. The Notes will mature in seven years , bearing interest at a rate of 2.0 % per annum. The Notes are convertible in whole or in part into fully paid Class A Ordinary Shares or ADSs at the holder’s option from the date that is six months after the issuance date to the third business day before the maturity date (i.e., September 16, 2026), at an initial conversion price of US$ 7.0 per Class A Ordinary Share or US$ 14.0 per ADS. The holder of the Notes may require the Company to repurchase all or part of their Notes in cash on September 16, 2023 or in the event of certain fundamental changes at a repurchase price equal to 100 % of the principal amount, plus accrued and unpaid interest. The net proceeds to the Company from the issuance of the Notes were US$ 293.0 million (RMB 2,075 million), net of debt discount of US$ 3.6 million (RMB 25.5 million) and issuance costs of US$ 3.4 million (RMB 24.1 million). The debt discount and issuance costs of the Notes were amortized to interest expense over the contractual life to the maturity date. For the years ended December 31, 2022 and 2023, the interest expense related to the Notes was RMB 46.9 million and RMB 73.8 million, respectively. The Group accounted for the Notes as a single instrument as “Convertible notes” on the Consolidated Balance Sheets. The debt discount and issuance costs were recorded as an adjustment to the carrying value of the Notes and are amortized as interest expense using the effective interest method. As of December 31, 2022 and 2023, the principal amount of the debt were RMB 2,089 million and RMB 503 million and unamortized debt discount and issuance costs were RMB 25.8 million and RMB4.3 million, respectively. On March 13, 2023, the Company entered into a supplemental agreement with PAG regarding the original contract for the convertible bonds. The Company shall pay off the convertible bonds in 14 monthly installments before April 2024 . The interest is charged at an annualized interest rate of 2 % for the first 7 installments and 10 % for the next 7 installments. The agreement supersedes the holder's right under the original Notes to require the Company to repurchase all or any portion of the Notes for cash in September 2023, and the Notes remain convertible into the Company's fully paid Class A ordinary shares or American Depositary Shares at a conversion price of $ 14 per American Depositary share at the holder's option. As of December 31,2023, the first 10 installments with totaling amount of US$ 229 million have been paid, and the next 4 installments with total amount of US$ 71 million were paid by April 2024. |
Ordinary Shares
Ordinary Shares | 12 Months Ended |
Dec. 31, 2023 | |
Common Stock, Number of Shares, Par Value and Other Disclosure [Abstract] | |
Ordinary Shares | 16. ORDINARY SHARES In November 2013, the Company was formed as a limited liability company in the Cayman Islands with issuance of 125,000,000 ordinary shares at a par value of US$ 0.0001 each. In July 2014, the Company became the holding company of the Group pursuant to the reorganization described in Note 1. On December 26, 2017, the Company completed its IPO on the NASDAQ Global Market. In this offering, 12,000,000 ADSs, representing 24,000,000 Class A Ordinary Shares, were issued and sold to the public at a price of US$ 9.00 per ADS. The aggregate proceeds received by the Company from the IPO, net of issuance costs, were approximately RMB 651 million ($ 100 million). Immediately prior to the completion of the IPO, the Company adopted a dual-class share structure, consisting of Class A Ordinary Shares and Class B Ordinary Shares, par value US$ 0.0001 per share. All of the issued and outstanding Pre-IPO Class A Ordinary Shares were automatically re-designated into Class B Ordinary Shares on a one -for-one basis, and all of the issued and outstanding Pre-IPO Preferred Shares were automatically converted and redesignated into Class A Ordinary Shares on a one -for-one basis. Holders of Class A Ordinary Shares and Class B Ordinary Shares have the same rights except that the holders of Class A Ordinary Shares are entitled to one vote per share in respect of matters requiring the votes of shareholders, while holders of Class B Ordinary Shares are entitled to ten votes per share. Each 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. The Group concluded that the adoption of dual-class share structure did not have a material impact on its consolidated financial statements. In January 2018, the underwriters of the Company’s IPO exercised the options to purchase an additional 1,800,000 ADSs, representing 3,600,000 Class A Ordinary Shares, par value US$ 0.0001 per share, of the Company to cover over-allotments in full. The proceeds in connection with 1,800,000 ADSs received by the Company was RMB 95.1 million (US$ 14.7 million). In June 2018, 27,000,000 shares of Class A Ordinary Shares were issued to the Company’s depositary bank for bulk issuance of ADSs reserved for future issuances upon the exercise or vesting of awards under the Group’s share-based incentive plans. As of December 31, 2020, 1,578,904 shares out of 27,000,000 shares of Class A Ordinary Shares respectively were deemed issued but not outstanding as they have not been transferred to grantees. In June 2021, 15,000,000 shares of Class A Ordinary Shares were issued to the Company’s depositary bank for bulk issuance of ADSs reserved for future issuances upon the exercise or vesting of awards under the Group’s share-based incentive plans, totaling the shares for bulk issuance of ADSs to 42,000,000 . On March 16, 2022, the Company’s board of directors authorized a share repurchase program under which the Company c ould repurchase up to an aggregate of US$ 50 million of its shares/ADSs over the next twelve months. As of December 31, 2022, the Company had repurchased approximately 22 million ADSs for approximately US$ 48 million under this repurchase program aggregately. As of December 31, 2022 and 2023, 11,073,226 shares and 8,226,592 shares out of 42,000,000 shares of Class A Ordinary Shares respectively were deemed issued but not outstanding as they have not been transferred to grantees. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | 17. NET INCOME PER SHARE Basic net income per share is the amount of net income available to each share of ordinary shares outstanding during the reporting period. Diluted net income per share is the amount of net income available to each share of ordinary shares outstanding during the reporting period adjusted to include the effect of potentially dilutive ordinary shares. For the year ended December 31, 2023, the Company had potential ordinary shares, including stock options granted, outstanding restricted share units and ordinary shares issuable upon the conversion of the Notes. For the years ended December 31, 2021, 2022 and 2023, stock options to purchase ordinary shares and restricted share units that were anti‑dilutive and excluded from the calculation of diluted net income per share were 9,826,578 shares, 21,959,786 shares, and 17,525,547 shares on a weighted average basis, respectively. The following table sets forth the computation of basic and diluted net income per share for the periods indicated: For the Year Ended December 31, 2021 2022 2023 (RMB in thousands, except for share and per Basic net income per share calculation: Numerator: Net income attributable to ordinary shareholders 2,333,923 819,752 1,065,945 Denominator: Weighted average number of ordinary shares outstanding—basic 368,460,867 348,048,245 328,523,952 Net income per share attributable to ordinary shareholders—basic 6.33 2.36 3.24 Diluted net income per share calculation: Numerator: Net income attributable to ordinary shareholders 2,333,923 819,752 1,065,945 Interest expense associated with convertible notes reversed 44,865 46,903 73,807 Net income attributable to ordinary shareholders for calculating diluted net income per share 2,378,788 866,655 1,139,752 Denominator: Weighted average number of ordinary shares outstanding—basic 368,460,867 348,048,245 328,523,952 Ordinary shares issuable upon the exercise of outstanding stock options using the treasury stock method 3,381,510 1,792,478 2,838,399 Ordinary shares issuable upon the vesting of outstanding restricted share units using the treasury stock method 293,196 58,955 220,666 Ordinary shares issuable upon the conversion of convertible notes using the if—converted method 42,857,143 42,857,143 28,237,965 Weighted average number of ordinary shares outstanding—diluted 414,992,716 392,756,821 359,820,982 Net income per share attributable to ordinary shareholders—diluted 5.73 2.21 3.17 |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | 18. EMPLOYEE BENEFIT PLAN Full‑time employees of the Group in the PRC are entitled to welfare benefits including pension insurance, medical insurance, unemployment insurance, maternity insurance, on‑the‑job injury insurance, and housing fund plans through a PRC government‑mandated defined contribution plan. Chinese labor regulations require that the Group makes contributions to the government for these benefits based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The Group has no legal obligation for the benefits beyond the contributions. Total contributions by the Group for such employee benefits were RMB 146.1 million, RMB 181.7 million and RMB 168.5 million, for the years ended December 31, 2021, 2022 and 2023, respectively. |
Statutory Reserves and Restrict
Statutory Reserves and Restricted Net Assets | 12 Months Ended |
Dec. 31, 2023 | |
Statutory Reserves And Restricted Net Assets [Abstract] | |
Statutory Reserves and Restricted Net Assets | 19. STATUTORY RESERVES AND RESTRICTED NET ASSETS In accordance with the PRC laws and regulations, the Company’s PRC subsidiaries registered as wholly foreign‑owned enterprise are required to make appropriation to certain reserve funds, namely general reserve fund, enterprise expansion fund, and staff bonus and welfare fund, all of which are appropriated from the subsidiaries’ annual after‑tax profits as reported under PRC GAAP. The appropriation must be at least 10 % of the annual after‑tax profits to the general reserve fund until such reserve fund has reached 50 % of the subsidiaries’ registered capital. Additionally, in accordance with the PRC Company Laws, a domestic company is required to provide statutory surplus fund at least 10 % of its annual after‑tax profits as reported under PRC GAAP until such statutory surplus fund has reached 50 % of its registered capital. A domestic company is also required to provide discretionary surplus fund, at the discretion of the board of directors, from its annual after‑tax profits as reported under PRC GAAP. The aforementioned reserve funds can only be used for specific purposes and are not distributable as cash dividends. As a result of the PRC laws and regulations and the requirement that distributions by the PRC entity can only be paid out of distributable profits computed in accordance with PRC GAAP, the PRC entity is restricted from transferring a portion of its net assets to the Company. Amounts restricted include paid‑in capital, additional paid‑in capital and statutory reserves of the Company’s PRC entities. As of December 31, 2022 and 2023, the restricted net assets of the Group’s relevant PRC entities amounted to RMB 5,001 million and RMB 5,054 million, respectively. The restricted net assets of the Group’s relevant PRC entities accounted for 52.0 % of the consolidated net assets as of December 31, 2023. As a result of the above restrictions, parent company only condensed financial information is disclosed in Note 23. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | 20. SHARE‑BASED COMPENSATION Share‑based compensation was recognized in operating cost and expenses for the years ended December 31, 2021, 2022 and 2023 as follows: For the Year Ended December 31, 2021 2022 2023 (RMB in thousands) Processing and servicing cost 9,968 5,179 246 Sales and marketing expenses 30,508 23,142 17,454 Research and development expenses 39,413 30,386 23,547 General and administrative expenses 107,995 97,613 76,605 Total share‑based compensation expenses 187,884 156,320 117,852 The Group recognizes share-based compensation, net of estimated forfeitures, on a straight-line basis over the vesting term of the awards. All the share-based awards granted by the Group are service conditions only. There was no income tax benefit recognized on the Consolidated Statements of Operations for share‑based compensation and the Group did not capitalize any of the share‑based compensation as part of the cost of any asset in the years ended December 31, 2021, 2022 and 2023. In October 2017, the Group adopted its 2017 Share Incentive Plan (“2017 Plan”), which permits the grant of stock options, restricted shares, and restricted share units of the Company to employees, directors and other eligible persons of the Company and its affiliates. Under the 2017 Plan, the maximum number of Class A Ordinary Shares that may be issued pursuant to all awards is 22,859,634 shares, plus an annual increase on the first day of each fiscal year of the Company during the ten-year term of the 2017 Plan commencing with the fiscal year beginning January 1, 2019 , by an amount equal to 1.0 % of the total number of shares issued and outstanding on the last day of the immediately preceding fiscal year. Option awards are granted with an exercise price determined by the board of directors. Those option awards generally vest over a period of four years and expire in ten years . The following table sets forth a summary of the number of shares available for issuance: Shares Available (In thousands) December 31, 2020 11,527 Additions 3,641 Granted ( 13,736 ) Cancelled/forfeited 5,201 December 31, 2021 6,633 Additions 3,677 Granted ( 9,219 ) Cancelled/forfeited 6,249 December 31, 2022 7,340 Additions 3,698 Granted ( 23,570 ) Cancelled/forfeited 55,143 December 31, 2023 42,611 Stock options 1) Stock options granted to employees, directors and non-employee directors The following table sets forth the summary of activities for stock options granted to employees, directors and non-employee directors: Options Weighted Weighted Aggregate (In thousands) US$ (In years) (RMB in December 31, 2020 13,660 1.7569 7.87 189,072 Granted* 13,489 0.5000 — — Exercised ( 2,426 ) 0.4529 — — Cancelled/forfeited ( 4,594 ) 3.2215 — — December 31, 2021 20,129 0.7227 8.43 155,018 Granted* 8,639 0.5000 — — Exercised ( 890 ) 0.3817 — — Cancelled/forfeited ( 6,016 ) 0.6138 — — December 31, 2022 21,862 0.6894 7.89 69,878 Granted* 8,695 1.2697 — — Exercised ( 1,927 ) 0.4644 — — Cancelled/forfeited ( 10,773 ) 0.7456 — — December 31, 2023 17,857 0.8850 7.43 38,242 Vested and expected to vest as of December 31, 2023 17,258 0.8967 7.40 36,126 Exercisable as of December 31, 2023 8,717 0.6669 5.99 27,010 * No stock options were granted to non-employee directors for the years presented. The weighted average grant date fair value of stock options granted to employees, directors and non-employee directors for the years ended December 31, 2021 2022 and 2023 was RMB 23.0 , RMB 4.8 and RMB 5.0 per share, respectively. The total intrinsic value of stock options exercised for the years ended December 31, 2021, 2022 and 2023 was RMB 78.5 million, RMB 5.1 million and RMB 8.9 million, respectively. The intrinsic value is calculated as the difference between the market value on the date of exercise and the exercise price of the stock options. For the years ended December 31, 2021, 2022, and 2023, total share-based compensation expenses recognized for stock options granted to employees, directors and non-employee directors were RMB 147 million, RMB 127 million and RMB 96.3 million, respectively. In August 2018, the Company modified the exercise price of 6,263,000 stock options granted under 2017 Plan to US$ 5.15 . The incremental compensation expenses of RMB 16.9 million was equal to the excess of the fair value of the modified award immediately after the modification over the fair value of the original award immediately before the modification. As of December 31, 2023, the unrecognized compensation cost, adjusted for estimated forfeitures, related to non‑vested stock options granted to the Group’s employees, directors and non-employee directors was RMB 98.0 million. Total unrecognized compensation cost is expected to be recognized over a weighted‑average period of 1.9 years and may be adjusted for future changes in estimated forfeitures. 1,889,800 stock options granted under 2017 Plan were exchanged for new options with exercise price of US$ 1.53 ; the incremental compensation expenses of RMB 0.53 million was equal to the excess of the fair value of the modified award immediately after the modification over the fair value of the original award immediately before the modification. In December 2023, 1,690,700 stock options granted under 2017 Plan were exchanged for new options with exercise price of US$ 0.92 ; 3,820,150 stock options granted under 2017 Plan were replace by the same number of restricted share units. The incremental compensation expenses of RMB 13.4 million was equal to the excess of the fair value of the modified award immediately after the modification over the fair value of the original award immediately before the modification. After the IPO, the exercise price of each granted stock option is determined by the closing price of the Company’s ordinary share on the grant date, therefore, the estimated fair value of each stock option granted is estimated on the date of grant using the binomial option-pricing model with the following assumptions: For the Year Ended December 31, 2021 2022 2023 Expected volatility 46.68 %~ 47.79 % 47.26 %~ 47.52 % 45.96 %~ 46.68 % Risk-free interest rate (per annum) 1.11 %~ 1.64 % 2.41 %~ 4.07 % 3.58 %~ 3.97 % Exercise multiples 1.5 ~ 2.5 1.5 1.5 Expected dividend yield — — — Expected term (in years) 10 10 10 Fair value of the underlying shares on the date of grants (US$) 1.91 ~ 6.31 0.32 ~ 1.48 0.42 ~ 1.66 2) Stock options granted to non‑employees The following table sets forth the summary of activities for stock options granted to non‑employees: Options Weighted Weighted Aggregate (In thousands) US$ (In years) (RMB in December 31, 2020 410 0.0001 6.58 8,962 Granted — — — — Exercised ( 160 ) 0.0001 — — Cancelled/forfeited — — — — December 31, 2021 250 0.0001 5.58 3,076 Granted — — — — Exercised — — — — Cancelled/forfeited — — — — December 31, 2022 250 0.0001 4.58 1,654 Granted — — — — Exercised — — — — Cancelled/forfeited — — — — December 31, 2023 250 0.0001 3.58 1,629 Vested and expected to vest as of December 31, 2023 250 0.0001 3.58 1,629 Exercisable as of December 31, 2023 250 0.0001 3.58 1,629 For the years ended December 31, 2021, 2022, and 2023, total share-based compensation expenses recognized for stock options granted to non-employees were RMB 1.7 million, nil and nil , respectively. As of December 31, 2023, the unrecognized compensation cost, adjusted for estimated forfeitures, related to non‑vested stock options granted to the Group’s non‑employees was nil. The re is no unrecognized compensation cost to be recognized and to be adjusted for future changes in estimated forfeitures. Restricted share units The following table sets forth the summary of activities for restricted share units granted to employees, directors and non-employee directors: Shares Weighted (In thousands) US$ December 31, 2020 3,654 5.27 Granted* 247 3.21 Vested ( 1,226 ) 5.35 Cancelled/forfeited ( 607 ) 5.12 December 31, 2021 2,068 5.02 Granted* 580 0.93 Vested ( 1,037 ) 5.18 Cancelled/forfeited ( 233 ) 5.02 December 31, 2022 1,378 3.17 Granted* 14,875 1.00 Vested ( 880 ) 4.23 Cancelled/forfeited — — December 31, 2023 15,373 1.01 * No restricted share units were granted to non-employee directors for the years presented. The fair value and intrinsic value of restricted share units vested for the years ended December 31, 2021, 2022 and 2023 was RMB 24.2 million, RMB 23.1 million and RMB 17.8 million, respectively. For the years ended December 31, 2021, 2022 and 2023, total share-based compensation expenses recognized for restricted share units were RMB 39.2 million, RMB 29.3 million and RMB 21.6 million, respectively. As of December 31, 2023, the unrecognized compensation cost, related to unvested restricted share units was RMB 12.9 million. Total unrecognized compensation cost is expected to be recognized over a weighted average period of 3.6 years. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 21. COMMITMENTS AND CONTINGENCIES Debt obligations The Group’s debt obligations are associated with 1) the funding debts and interest payable to funding partners; 2) the borrowings to support the Group’s general operations; 3) the convertible notes issued by the Company in September 2019; and 4) the commitment to purchase delinquent loans from certain Institutional Funding Partners. The expected repayment amount of the debt obligations are as follows: 1 – 12 13 – 24 25 – 36 more than 36 months Total (RMB in thousands) Funding debts obligations Liabilities to funding partners 3,483,196 455,800 — — 3,938,996 Interest payments (i) 178,248 8,781 — — 187,029 Total funding debts obligations 3,661,444 464,581 — — 4,126,025 Long–term borrowings — — — 524,270 524,270 Short–term borrowings 502,013 — — — 502,013 Interest payments (i) 36,843 — — 16,005 52,848 Total borrowings obligations 538,856 — — 540,275 1,079,131 Convertible notes 502,872 — — — 502,872 Interest payments (i) 10,388 — — — 10,388 Total convertible notes obligations 513,260 — — — 513,260 Commitment for construction 330,355 — — — 330,355 Commitment to purchase delinquent loans (ii) 771,500 — — — 771,500 Total purchase obligations 1,101,855 — — — 1,101,855 (i) Interest payments with variable interest rates are calculated using the interest rate as of December 31, 2023. (ii) With respect to the arrangements with certain Institutional Funding Partners, the Group is required to purchase the off-balance sheet loans funded by those Institutional Funding Partners when the loans become delinquent for a certain period of time consecutively or cumulatively. Commitment to purchase delinquent loans represents the Group’s noncancelable obligations to purchase those delinquent loans which is yet to be sold by those Institutional Funding Partners as of December 31, 2023. Litigations From time to time, the Group may be subject to various legal or administrative claims and proceedings arising in the ordinary course of business. Litigation is subject to inherent uncertainties and the Group’s view of these matters may change in the future. The Group records a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The Group reviews the need for any such liability on a regular basis. The Group has not recorded any liabilities in this regard as of December 31, 2022 and 2023. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 22. SUBSEQUENT EVENTS On March 19, 2024 , the board of directors of the Company has approved a dividend of US$ 0.033 per ordinary share, or US$ 0.066 per ADS, for the six-month period ended December 31, 2023 in accordance with the Company’s dividend policy, which is expected to be paid on May 24, 2024 to shareholders of record (including holders of ADSs) as of the close of business on April 18, 2024 New York time. No other events or transactions have occurred between year-end and the date of these Consolidated Financial Statements which may significantly affect the Entity’s financial position or results of operations as of December 31, 2023. |
Parent Company Only Condensed F
Parent Company Only Condensed Financial Information | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Only Condensed Financial Information | 2 3. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION The condensed financial information of the Company has been prepared in accordance with SEC Regulation S‑X Rule 5‑04 and Rule 12‑04, using the same accounting policies as set out in the Group’s consolidated financial statements, except that the Company uses the equity method to account for investments in its subsidiaries, the VIEs and the VIEs’ subsidiaries. Certain information and footnote disclosures generally included in financial statements prepared in accordance with U.S. GAAP have been condensed and omitted. The footnote disclosures contain supplemental information relating to the operations of the Company, as such, these statements are not the general‑purpose financial statements of the reporting entity and should be read in conjunction with the notes to the consolidated financial statements of the Group. The Company did not have significant capital and other commitments or guarantees as of December 31, 2022 and 2023, except for those which have been separately disclosed in the consolidated financial statements. Condensed Balance Sheets (In thousands, except for share and per share data) As of December 31, 2022 2023 RMB RMB US$ Note 2(e) ASSETS Current assets Cash and cash equivalents 1,517 48,030 6,765 Amounts due from subsidiaries 335,934 343,091 48,323 Prepayments and other current assets 8,314 6,717 946 Total current assets 345,765 397,838 56,034 Non-current assets Investments in subsidiaries 10,741,234 12,058,899 1,698,460 Other assets 235 103 15 Total non-current assets 10,741,469 12,059,002 1,698,475 Total assets 11,087,234 12,456,840 1,754,509 LIABILITIES Current liabilities Amounts due to subsidiaries, the VIEs and the VIEs’ subsidiaries 357,042 2,230,015 314,091 Accrued interest payable 9,385 2,095 295 Accruals and other current liabilities 8,511 9,198 1,296 Convertible notes 2,063,545 505,450 71,191 Total current liabilities 2,438,483 2,746,758 386,873 Total liabilities 2,438,483 2,746,758 386,873 Commitments and contingencies (Note 21) SHAREHOLDERS’ EQUITY: Class A Ordinary Shares ($ 0.0001 par value per share; 1,889,352,801 shares authorized, 300,707,476 shares issued, 245,264,614 shares outstanding as of December 31, 2022; 1,889,352,801 shares authorized, 300,707,476 shares issued 256,918,184 shares outstanding as of December 31, 2023) 191 199 30 Class B Ordinary Shares ($ 0.0001 par value per share; 110,647,199 shares authorized, 80,189,163 shares issued and outstanding as of December 31, 2022; 110,647,199 shares authorized, 71,342,227 shares issued and outstanding as of December 31, 2023) 47 41 7 Treasury Stock ( 328,764 ) ( 328,764 ) ( 46,305 ) Additional paid-in capital 3,081,254 3,204,961 451,406 Accumulated other comprehensive income ( 20,842 ) ( 13,545 ) ( 1,908 ) Retained earnings 5,916,865 6,847,190 964,406 Total shareholders’ equity 8,648,751 9,710,082 1,367,636 Total liabilities and shareholders’ equity 11,087,234 12,456,840 1,754,509 Condensed Statements of Operations and Comprehensive Income (In thousands) For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB US$ Note 2(e) Operating expenses: General and administrative expenses ( 19,109 ) ( 15,082 ) ( 15,749 ) ( 2,218 ) Total operating expenses ( 19,109 ) ( 15,082 ) ( 15,749 ) ( 2,218 ) Interest expense, net ( 44,865 ) ( 46,912 ) ( 73,750 ) ( 10,387 ) Share of income from subsidiaries 2,395,789 872,049 1,152,654 162,347 Investment loss ( 1,980 ) — — — Others, net 11,239 9,697 2,790 395 Income before income tax expense 2,341,074 819,752 1,065,945 150,137 Income tax expense ( 7,151 ) — — — Net income attributable to ordinary shareholders 2,333,923 819,752 1,065,945 150,137 Other comprehensive income: Foreign currency translation adjustments, net of tax 7,965 ( 32,115 ) 7,297 1,028 Total comprehensive income attributable to ordinary shareholders 2,341,888 787,637 1,073,242 151,165 Condensed Statements of Cash Flows (In thousands) For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB US$ Note 2(e) Net cash (used in)/provided by operating activities 14,196 ( 51,139 ) ( 58,579 ) ( 8,250 ) Cash flows from investing activities: Cash paid on long–term investments ( 18,868 ) — — — Cash paid on acquisition of subsidiaries, net of cash acquired — ( 676 ) — — Proceeds from disposal of long-term investments 65,537 — — — Cash paid on loans to third parties ( 22,317 ) — — — Net cash used in funds to Group companies ( 15,263 ) 36,817 ( 6,040 ) ( 851 ) Net cash provided by investing activities 9,089 36,141 ( 6,040 ) ( 851 ) Cash flows from financing activities: Repurchase of treasury stock — ( 326,942 ) — — Dividends to shareholders — — ( 135,620 ) ( 19,102 ) Repayments of convertible loans — — ( 1,634,678 ) ( 230,240 ) Borrowings under loan from Group companies — 323,446 1,872,954 263,800 Exercise of share–based awards 7,124 2,742 5,880 828 Net cash provided by financing activities 7,124 ( 754 ) 108,536 15,286 Effect of exchange rate changes on cash, cash equivalents and restricted cash ( 29,410 ) 15,424 2,596 366 Net increase/(decrease) in cash, cash equivalents and restricted cash 999 ( 328 ) 46,513 6,551 Cash, cash equivalents and restricted cash at beginning of the year 846 1,845 1,517 214 Cash, cash equivalents and restricted cash at end of the year 1,845 1,517 48,030 6,765 Basis of presentation The Company’s accounting policies are the same as the Group’s accounting policies with the exception of the accounting for the investments in subsidiaries. For the Company only condensed financial information, the Company records its investments in subsidiaries under the equity method of accounting as prescribed in ASC 323, Investments—Equity Method and Joint Ventures. Such assets are presented on the Condensed Balance Sheets as “Investments in subsidiaries” and shares in the subsidiaries are presented as “Share of income from subsidiaries” on the Condensed Statements of Operations and Comprehensive Income. The parent company only condensed financial information should be read in conjunction with the Group’s consolidated financial statements. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | (a) Basis of presentation The consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Significant accounting policies followed by the Group in the preparation of the accompanying consolidated financial statements are summarized below. |
Basis of Consolidation | (b) Basis of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIEs and subsidiaries of the VIEs for which the Company is the 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. A consolidated VIE is an entity in which the Company, or its subsidiaries, through contractual arrangements, has the power to direct the activities that most significantly impact the entity’s economic performance, has the obligation to absorb losses of, or the right to receive benefits from the entity that could potentially be significant to the entity, and therefore the Company or its subsidiaries is the primary beneficiary of the entity. All transactions and balances among the Company, its subsidiaries, the VIEs and subsidiaries of the VIEs have been eliminated upon consolidation. VIE Companies (excluding the consolidated Trusts and asset-backed securitized debts as discussed in Note 2(f)) (i) Contractual agreements with the VIEs The following is a summary of the contractual agreements (collectively, “Contractual Agreements”) that the Company’s relevant PRC subsidiaries entered into with the VIEs and their nominee shareholders. Through the Contractual Agreements, the VIEs are effectively controlled by the Company. Exclusive Option Agreements. Pursuant to the Exclusive Option Agreements, the nominee shareholders of the VIEs have irrevocably granted the Group’s relevant PRC subsidiaries an exclusive option to purchase all or part of their respective equity interests in the VIEs. The purchase price shall be the lowest price permitted by law. Without prior written consent of the Group’s relevant PRC subsidiaries, the VIEs shall not, among other things, amend their articles of association, increase or decrease the registered capital, sell, dispose of or set any encumbrance on their assets and equity interests in the VIEs, business or revenue, enter into any material contract outside the ordinary course of business, merge with any other persons or make any investments, distribute dividends, or enter into any transactions which have material adverse effects on their business. These agreements will remain effective until the Group’s relevant PRC subsidiaries and/or any third party designated by the Group’s relevant PRC subsidiaries have acquired all equity interests of the VIEs from their respective nominee shareholders. Power of Attorney. Pursuant to the Power of Attorney, each nominee shareholder of the VIEs irrevocably authorizes the Group’s relevant PRC subsidiaries to act as its attorney‑in‑fact to exercise all of such shareholder’s voting and other rights associated with the shareholder’s equity interests in the VIEs, including the right to attend shareholder meetings on behalf of such shareholder, the right to appoint legal representatives, directors, supervisors and chief executive officers and other senior management, and the right to sell, transfer, pledge and dispose of all or a portion of the shares held by such shareholder. The power of attorney is irrevocable and remains in force continuously upon execution. Exclusive Business Cooperation Agreements. Pursuant to these Exclusive Business Cooperation Agreements, the Group’s relevant PRC subsidiaries have the exclusive right to provide the VIEs with comprehensive business support, technical support and consulting services. Without prior written consent of the Group’s relevant PRC subsidiaries, the VIEs shall not accept any services covered by these agreements from any third party. The VIEs agree to pay service fees in an amount determined by the Group’s relevant PRC subsidiaries based on respective profits calculated as operating revenue minus operating cost of the VIEs for the relevant period on a yearly basis or other service fees for specific services as required and as otherwise agreed by both parties. The Group’s relevant PRC subsidiaries own the intellectual property rights arising out of the services performed under these agreements. Unless the Group’s relevant PRC subsidiaries terminate these agreements or pursuant to other provisions of these agreements, these agreements will remain effective indefinitely. These agreements can be terminated by the Group’s relevant PRC subsidiaries through a 30‑day advance written notice, the VIEs have no right to unilaterally terminate these agreements. Loan Agreements. Pursuant to the relevant loan agreements, the Group’s relevant PRC subsidiaries have granted loans to the relevant nominee shareholders of the VIEs solely for the purpose of providing funds necessary for capital injection into the VIEs to operate their respective businesses. Pursuant to these loan agreements, the nominee shareholders can only repay the loans by the transfer of all their equity interests in the VIEs to the Group’s relevant PRC subsidiaries. The nominee shareholders of the VIEs must pay all of the proceeds from transfer of such equity interests to the Group’s relevant PRC subsidiaries. In the event that the nominee shareholders transfer their equity interests to the Group’s relevant PRC subsidiaries or their designated person(s) with a price equivalent to or less than the amount of the principal, the loans will be interest free. If the price is higher than the amount of the principal, the excess amount will be paid to the Group’s relevant PRC subsidiaries as the loan interest. The loans must be repaid immediately when permitted by PRC laws at the request of the Group’s relevant PRC subsidiaries. Term of both loans is ten years and will be extended automatically for another ten years on each expiration. Equity Pledge Agreements. Pursuant to these Equity Pledge Agreements, each nominee shareholder of the VIEs has pledged all of his, her or its respective equity interests in the VIEs to the Group’s relevant PRC subsidiaries to guarantee the performance by such nominee shareholder and the VIEs of their respective obligations under the Exclusive Option Agreements, the Power of Attorney, the Loan Agreements, where applicable, and the Exclusive Business Cooperation Agreements, and any amendment, supplement or restatement to such agreements. If the VIEs or any of their nominee shareholders breach any obligations under these agreements, the Group’s relevant PRC subsidiaries, as pledgee, will be entitled to dispose of the pledged equity and have priority to be compensated by the proceeds from the disposal of the pledged equity. Each of the nominee shareholders of the VIEs agrees that before his, her or its obligations under the Contractual Agreements are discharged, he, she or it will not dispose of the pledged equity interests, create or allow any encumbrance on the pledged equity interests, which may result in the change of the pledged equity that may have adverse effects on the pledgee’s rights under these agreements without the prior written consent of the Group’s relevant PRC subsidiaries. These Equity Pledge Agreements will remain effective until the VIEs and their nominee shareholders discharge all their respective obligations under the Contractual Agreements. (ii) Risks in relation to the VIE structure Under the Contractual Agreements with the VIEs, the Company has the power to direct activities of the VIEs and the VIEs’ subsidiaries, has the obligation to absorb losses of, or the right to receive benefits from the VIEs and the VIEs’ subsidiaries. Therefore, the Company considers itself the ultimate primary beneficiary of the VIEs and there is no asset of the VIEs that can only be used to settle obligations of the VIEs and the VIEs’ subsidiaries except for registered capitals and PRC statutory reserves of the consolidated VIEs amounting to RMB 4,983 million as of December 31, 2023. Since the VIEs are incorporated as limited liability companies under the PRC Company Law, creditors of the VIEs do not have recourse to the general credit of the Company. There is currently no contractual arrangement that would require the Company to provide additional financial support to the VIEs. However, as the Company is conducting certain businesses mainly through the consolidated VIEs and the VIEs’ subsidiaries, the Company may provide such support on a discretionary basis in the future, which could expose the Company to a loss. In the opinion of the Company’s management, the contractual arrangements among its subsidiaries, the VIEs and their respective nominee shareholders are in compliance with current PRC laws and are legally binding and enforceable. However, uncertainties in the interpretation and enforcement of the PRC laws, regulations and policies could limit the Company’s ability to enforce these contractual arrangements. As a result, the Company may be unable to consolidate the VIEs and the VIEs’ subsidiaries in the consolidated financial statements in the future if changes in the legal interpretation or enforcement of the PRC laws, regulations and policies occur in the future. In March 2019, the Foreign Investment Law was approved by the National People’s Congress, effective on January 1, 2020. In December 2019, the State Council promulgated the Implementation Regulations on the Foreign Investment Law, effective on January 1, 2020, and further clarified and elaborated the relevant provisions of the Foreign Investment Law. Given that there still exist uncertainties in relation to the interpretation and implementation of the Foreign Investment Law and its implementation regulations, the possibility that the VIEs will be deemed as foreign-invested enterprise and subject to relevant restrictions in the future shall not be excluded. The Company’s ability to control the VIEs also depends on the power of attorney the Group’s relevant PRC subsidiaries have to vote on all matters requiring shareholders’ approvals in the VIEs. As noted above, the Company believes this power of attorney is legally binding and enforceable but may not be as effective as direct equity ownership. In addition, if the Group’s corporate structure or the contractual arrangements with the VIEs were found to be in violation of any existing PRC laws and regulations, the PRC regulatory authorities could, within their respective jurisdictions: • revoke the Group’s business and operating licenses; • require the Group to discontinue or restrict its operations; • restrict the Group’s right to collect revenues; • block the Group’s websites; • require the Group to restructure its operations, re‑apply for the necessary licenses or relocate the Group’s businesses, staff and assets; • impose additional conditions or requirements with which the Group may not be able to comply; or • take other regulatory or enforcement actions against the Group that could be harmful to the Group’s business. The imposition of any of these restrictions or actions may result in a material adverse effect on the Group’s ability to conduct its business. In addition, if the imposition of any of these restrictions causes the Group to lose the right to direct the activities of the VIEs or the right to receive their economic benefits, the Group would no longer be able to consolidate the VIEs. In the opinion of management, the likelihood of losing the benefits in respect of the Group’s current ownership structure or the contractual arrangements with the VIEs is remote. All of the consolidated VIEs are incorporated and operated in the PRC, which are effectively controlled by the Company through a series of contractual agreements entered into among the Company’s relevant PRC subsidiaries, the VIEs and their nominee shareholders. The Company believes the possibility that it will no longer be able to control and consolidate the VIEs as a result of the aforementioned risks and uncertainties are remote. Summary of Financial Information of the Consolidated VIEs The following table sets forth the assets, liabilities, results of operations and changes in cash and cash equivalents and restricted cash of the VIEs and their subsidiaries taken as a whole, which were included in the Group’s consolidated financial statements. The financial information of the consolidated trusts and asset-backed securities (“ABS”) were also included in the following table, as the consolidated VIE companies are considered the primary beneficiary of these trusts and ABS plans: As of December 31, 2022 2023 (RMB in thousands) Consolidating Schedule of Financial Position ASSETS Cash and cash equivalents 1,273,823 1,834,738 Restricted cash 718,675 916,015 Restricted term deposit and short-term investments 119,678 149,678 Financing receivables, net 6,756,760 3,990,083 Amounts due from Group companies (1) 106,977 201,390 Deposits to insurance companies and guarantee companies 2,214,771 2,605,464 Contract assets and receivables, net 4,151,340 5,586,257 Property, equipment and software, net 213,610 351,688 Land use rights, net and right of use assets 1,029,258 955,250 Long‑term investments 331,560 239,244 Other assets 2,919,516 3,119,999 TOTAL ASSETS 19,835,968 19,949,806 LIABILITIES Amounts due to Group companies (1) 6,285,111 6,546,526 Borrowings 1,288,476 842,158 Funding debts 5,719,358 3,938,996 Deferred guarantee income 781,633 1,215,490 Contingent guarantee liabilities 770,495 1,232,002 Other liabilities 2,699,461 3,641,027 TOTAL LIABILITIES 17,544,534 17,416,199 Total equity attributable to owners of the company 2,291,434 2,533,607 TOTAL SHAREHOLDERS’ EQUITY 2,291,434 2,533,607 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 19,835,968 19,949,806 For the Year Ended December 31, 2021 2022 2023 (RMB in thousands) Condensed Consolidating Schedule of Results of Operations Operating revenue: Third-party revenues 11,091,978 9,297,734 11,264,532 Inter-group revenues (2) 11,429 329 186,968 Total Operating revenue 11,103,407 9,298,063 11,451,500 Operating cost: Third-party costs ( 5,520,994 ) ( 6,484,657 ) ( 7,354,363 ) Inter-group costs (2) ( 1,636 ) ( 36 ) ( 27 ) Total operating cost ( 5,522,630 ) ( 6,484,693 ) ( 7,354,390 ) Gross profit 5,580,777 2,813,370 4,097,110 Operating expense: Third-party expenses ( 1,689,151 ) ( 1,764,902 ) ( 1,766,810 ) Inter-group expenses (2) ( 3,047,627 ) ( 1,629,811 ) ( 1,544,632 ) Total operating expenses ( 4,736,778 ) ( 3,394,713 ) ( 3,311,442 ) Others ( 369,200 ) 617,568 ( 448,109 ) Income before income tax 474,799 36,225 337,559 Income tax expenses ( 142,201 ) ( 13,950 ) ( 100,292 ) Net income 332,598 22,275 237,267 Less: net income attributable to non-controlling interests 193 6,177 — Net income attributable to ordinary shareholders of the Company 332,405 16,098 237,267 For the Year Ended December 31, 2021 2022 2023 (RMB in thousands) Net cash (used in)/provided by operating activities ( 298,268 ) 537,019 1,412,861 Net cash provided by transactions with external parties 3,839,254 2,063,827 2,892,415 Net cash used in transactions with inter-group entities for technical service charges and others (3) ( 4,137,522 ) ( 1,526,808 ) ( 1,479,554 ) Net cash provided by/(used in) investing activities 622,696 ( 2,062,379 ) 1,337,528 Net cash provided by/(used in) transactions with external parties 472,228 ( 2,586,207 ) 1,387,854 Net cash (used in)/provided by funds to Group companies (4) 150,468 ( 61,831 ) ( 50,326 ) Transfer of Shenzhen Lexin Financing Guarantee Co., Ltd from VIE to subsidiary (5) — 585,659 — Net cash provided/(used in) by financing activities 656,269 ( 37,777 ) ( 1,992,134 ) Net cash (used in)/provided by transactions with external parties ( 1,775,038 ) 1,469,679 ( 2,242,139 ) Net cash provided by/(used in) funds from Group companies (6) 2,431,307 ( 1,507,456 ) 250,005 Net increase/(decrease) in cash, cash equivalents and restricted cash 980,697 ( 1,563,137 ) 758,255 Cash, cash equivalents and restricted cash at beginning of the year 2,574,938 3,555,635 1,992,498 Cash, cash equivalents and restricted cash at end of the year 3,555,635 1,992,498 2,750,753 (1) The amounts due from Group companies represent the funds provided by the consolidated VIEs to WFOEs, and the operating receivables resulting from the provision of goods and services to WFOEs; (2) The inter-group revenues and inter-group costs and expenses recognized by the consolidated VIEs were related to the goods and services between the consolidated VIEs and WFOEs; (3) For the years ended December 31, 2021, 2022 and 2023, cash paid by the VIEs to WFOEs for technical service fees were RMB 4,140 million, RMB 1,540 million and RMB 1,647 million, respectively. Cash received by the VIEs to WFOEs for the provision of goods and services were RMB 2.5 million, RMB 13.0 million and RMB 168 million, respectively. (4) Net cash (used in)/provided by funds to Group companies represent the funds provided by the consolidated VIEs to WFOEs, and the collections from the WFOEs for the funds previously provided by the consolidated VIEs. The funds provided to/repayments received from Group companies are presented on a net basis in investing activities. (5) In 2022, the consolidated VIE, Shenzhen Fenqile Network Technology Co., Ltd., transferred all its equity interest in Shenzhen Lexin Financing Guarantee Co., Ltd to primary beneficiary of the VIEs, Shenzhen Lexin Software Technology Co., Ltd. The total consideration for the transfer of equity shares is RMB 586 million. (6) Net cash (used in)/provided by funds from Group companies represent the funds provided by WFOEs to the consolidated VIEs. The funds received from/repayments made to Group companies are presented on a ne t basis in financing activities. |
Use of Estimates | (c) Use of estimates The preparation of the Group’s consolidated financial statements is in conformity with the U.S. GAAP, which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of financial statement and reported revenues and expenses during the reported periods. Significant accounting estimates include, but are not limited to (i) revenue recognition; (ii) allowance for credit losses on the financial assets measured at amortized cost and financial guarantees and (iii) initial recognition and subsequent measurement of guarantee derivatives at fair value. Actual results could materially differ from these estimates. |
Functional Currency and Foreign Currency Translation | (d) Functional currency and foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its subsidiaries incorporated in Hong Kong is United States dollars (“US$”) and the functional currencies of the PRC entities in the Group are RMB. In the consolidated financial statements, the financial information of the Company and its subsidiaries incorporated in Hong Kong have been translated into RMB at the exchange rates quoted by the People’s Bank of China (the “PBOC”). Assets and liabilities are translated at the exchange rates on the balance sheet date, equity amounts are translated at historical exchange rates, and revenues, expenses, gains and losses are translated using the average rate for the period. Translation adjustments arising from these are reported as foreign currency translation adjustments, and are shown as a component of accumulated other comprehensive income on the Consolidated Statements of Changes in Shareholders’ Equity and a component of other comprehensive income on the Consolidated Statements of Comprehensive Income. Foreign currency transactions denominated in currencies other than the functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are remeasured at the applicable rates of exchange in effect at that date. Foreign currency exchange gain or loss resulting from the settlement of such transactions and from remeasurement at period‑end is recognized in “Others, net” on the Consolidated Statements of Operations. Foreign currency translation adjustments included in the Group’s Consolidated Statements of Comprehensive Income for the years ended December 31, 2021, 2022 and 2023 were gain of RMB 8.0 million, loss of RMB 32.1 million and gain of RMB 7.3 million respectively. |
Convenience Translation | (e) Convenience translation Translations of balances on the Consolidated Balance Sheets, Consolidated Statements of Operations, Consolidated Statements of Comprehensive Income and Consolidated Statements of Cash Flows from RMB into US$ as of and for the year ended December 31, 2023 are solely for the convenience of the readers and were calculated at the rate of US$1.00=RMB7.0999, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 29, 2023. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2023, or at any other rate. |
Presentation for On- and Off-Balance Sheet Loans | (f) Presentation for on- and off-balance sheet loans The Group finances the loans with the proceeds from various funding partners, which primarily include: (1) the Institutional Funding Partners; and (2) third-party investors of the consolidated Trusts and asset‑backed securitized debts. Depending on the arrangements among the Group, the Borrowers and the funding partners, the underlying loans are accounted for as “on-balance sheet loans” or “off-balance sheet loans,” where applicable. On‑balance sheet loans Loans funded by establishment of the consolidated Trusts and issuance of asset‑backed securitized debts The Group establishes business relationships with Trusts from time to time. Pursuant to applicable arrangements, the Group invested in the financing receivables using funds from the consolidated Trusts. The Trusts are administered by third-party trust companies, which act as the trustees, with funds contributed by the Group and/or the third-party investors for the purposes of providing returns to the beneficiary of the Trusts. Since these Trusts only invest in financing receivables generated from the Group’s Platform and APP, the Group has power to direct the activities of the Trusts. The Group has the obligation to absorb losses or the right to receive benefits from the Trusts that could potentially be significant to the Trusts. As a result, the Trusts are considered consolidated VIEs of the Group under Accounting Standards Codification (“ASC”) 810, Consolidation. The Group also issues private asset-backed securities (“ABS”) to diversify its funding sources. The Group is considered the primary beneficiary of these ABS plans as it has power to direct the activities that most significantly impact economic performance of the ABS plans, and has the obligation to absorb losses of or the right to receive benefits from the ABS plans that could potentially be significant to the ABS plans. As a result, the Group consolidated the ABS plans in the consolidated financial statements under ASC 810, Consolidation . Therefore, loans funded by the consolidated Trusts and asset-backed securitized debts remain at the Group and are recorded as “Financing receivables, net” on the Consolidated Balance Sheets. The proceeds received from third‑party investors of the consolidated Trusts and asset-backed securitized debts are recorded as “Funding Debts” (Note 2(h)). Cash received via consolidated Trusts that has not yet been distributed is recorded as “Restricted cash.” Off‑balance sheet loans Loans funded by certain Institutional Funding Partners such as third-party commercial banks or consumer finance companies For loans funded by the proceeds from certain Institutional Funding Partners such as third-party commercial banks or consumer finance companies, each underlying loan and Borrower has to be approved by the third-party commercial banks or consumer finance companies individually. Once the loan is approved by and originated by the third-party commercial bank or consumer finance company, the fund is provided by the third-party commercial bank or consumer finance company to the Borrower and a lending relationship between the Borrower and the third-party commercial bank or consumer finance company is established through a loan agreement. Effectively, the Group offers loan facilitation and matching services to the Borrowers who have credit needs and the commercial banks or consumer finance companies who originate loans directly to Borrowers referred by the Group. The Group continues to provide account maintenance and payment processing services to the Borrowers over the term of the loan agreement. Under this scenario, the Group determines that it is not the legal lender or borrower in the loan origination and repayment process. Accordingly, the Group does not record financing receivables arising from these loans nor Funding Debts to the Institutional Funding Partners. Measurement of financing receivables Financing receivables are measured at amortized cost and reported on the Consolidated Balance Sheets at outstanding principal adjusted for any charge‑offs, the allowance for credit losses, and net deferred origination fees on originated financing receivables. The Group recognizes financing income over the terms of the financing receivables using the effective interest rate method. Refer to Note 2(l) for details. For financing receivables initially generated from online sales with installment payment terms on the Group’s Platform or APP, if they are subsequently funded by on-balance sheet loans, the Group considers that the financing receivables are not settled or extinguished, and therefore continues to account for these financing receivables according to the installment payment terms. If the financing receivables are subsequently funded by off-balance sheet loans, the Group considers that these financing receivables are settled and extinguished with the proceeds from the off-balance sheet loans as facilitated by the Group. Accrued interest income on financing receivables is calculated based on the effective interest rate of the loan and recorded as financing income as earned. Financing receivables are placed on non‑accrual status upon reaching 90 days past due. When a financing receivable is placed on non‑accrual status, the Group stops accruing interest and reverses all accrued but unpaid interest as of such date. The Group considers a financing receivable to be delinquent when a monthly payment is one day past due. When the Group determines it is probable that it will be unable to collect unpaid principal amount on the receivable, the remaining unpaid principal balance is charged off against the allowance for credit losses. Generally, charge‑offs occur after the 180th day of delinquency. Financing income for non-accrual financing receivables is recognized on a cash basis. Cash receipt of non‑accrual financing receivables would be first applied to any unpaid principal, late payment fees, if any, before recognizing financing income. The Group does not resume accrual of interest after a loan has been placed on non-accrual status. |
Allowance for Credit Losses | (g) Allowance for credit losses The Group mainly has the following types of financial assets that are subject to credit losses of the customers: financing receivables, contract assets and receivables. The Group applies Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This guidance replaces the existing “incurred loss” methodology, and introduces a forward-looking expected loss approach referred to as a current expected credit losses (“CECL”) methodology. The CECL methodology requires that the full amount of expected credit losses for the lifetime be recorded at the time the financial asset is originated or acquired, and adjusted for changes in expected lifetime credit losses subsequently, which requires earlier recognition of credit losses. The lifetime expected credit losses are determined using a pooled basis within respective credit risk classification levels of the underlying customers, taking into consideration the historical credit loss experience, the current credit quality of the portfolio and application of macroeconomic forecasts. The Group’s CECL model and methodologies are based on the likelihood of customers defaulting (i.e., Probability of Default, or PD) and the resulting losses of customers’ defaults (i.e. Loss Given Default, or LGD) and Exposure at Default (“EAD”), or CECL=PD*LGD*EAD. The Group considers the PD with its historical information of customers’ payment behaviors and loan performance, and further adjusts for the impacts from observed industry experience. PDs are based on respective internal risk grades assigned to each of the customers by the Group. LGD is determined based on historical information of the extent of loss on a defaulted exposure. EAD is calculated based on the amounts the Group expected to be owed at the time of default, over the term of the loans. The Group also incorporates the forward-looking information in the CECL, taking into account a range of forecasts of macroeconomic conditions over the expected life of the loans. The macroeconomic factors used in model include variables that have historically been key drivers of increases and decreases in credit losses, such as Consumer Price Index and M2 (a measurement of broad money supply including cash and deposits, which is published by People's Bank of China on a routine basis). The expected life of each loan is determined based on the contractual term. The allowance for credit losses also includes management overlays which allow management to reflect the uncertain nature of economic forecasting and account for model imprecision and concentration risk. The CECL methodology is applicable to estimation of credit losses of financial assets measured at amortized cost, primarily including financing receivables, contract assets and receivables of the Group. The CECL methodology also applies to certain off-balance sheet credit exposures, such as financial guarantees not accounted for as derivatives. The financial guarantees provided for the Group’s off-balance sheet loans accounted for under ASC 460 are in the scope of ASC 326 and subject to the CECL methodology. The expected credit losses (the contingent aspect) of the guarantee shall be accounted for in addition to and separately from the guarantee liability (the noncontingent aspect) accounted for under ASC 460. Further, the contingent liability is determined using CECL lifetime methodology. |
Funding Debts | (h) Funding debts For the proceeds received from the funding partners, including the third-party investors of the consolidated Trusts and asset-backed securitized debts, and certain Institutional Funding Partners, to fund the Group’s on-balance sheet loans, the Group records them as funding debts (“Funding Debts”) on its Consolidated Balance Sheets. Accrued interest payable is calculated based on the contractual interest rates of funding debts and convertible notes. |
Guarantee Receivables and Liabilities | (i) Guarantee receivables and liabilities For the off-balance sheet loans funded by certain Institutional Funding Partners, the Group provides deposits and replenish such deposits from time to time to the Institutional funding partners by directly compensating them for principal and interest payment in the event of the Borrowers’ defaults, which are accounted for as guarantee liabilities under ASC 460, Guarantees. Starting from 2019, the Group started to cooperate with third-party insurance companies and guarantee companies that directly provide guarantee services to certain Institutional Funding Partners, and no longer replenished the deposits made to these Institutional Funding Partners. According to relevant financial guarantee arrangements, third-party insurance companies and guarantee companies will provide the principal and interest payment to these Institutional Funding Partners, in case of Borrowers’ defaults. However, the Group is required to provide deposits and replenish such deposits from time to time to the bank accounts of these insurance companies and guarantee companies, in the event that such insurance companies and guarantee companies perform their guarantee obligations upon the Borrowers’ defaults. Effectively, the Group provides risk safeguard measures or a deposit to compensate the insurance companies and guarantee companies in the event that they performed their guarantee or insurance obligations upon the Borrowers’ defaults. These financial guarantee contracts are accounted for as guarantee liabilities under ASC 460, Guarantees, provided that the scope exception under ASC 815-10-15-58 is met. For the off-balance sheet loans funded by certain other Institutional Funding Partners, these Institutional Funding Partners retain the credit exposure of the loans facilitated by the Group and do not require the Group to provide any guarantee pursuant to relevant arrangements. Therefore, the Group does not record guarantee receivables nor guarantee liabilities for the off-balance sheet loans funded by these Institutional Funding Partners. As discussed in Note 2(g) above, the financial guarantees provided for the Group’s off-balance sheet loans accounted for under ASC 460 are in the scope of ASC 326 and subject to the CECL methodology. The estimated fair value of the guarantee liabilities at inception of the loans is determined based on a discounted cash flow model, with reference to estimates of expected loss rates using CECL lifetime methodology. Subsequent to initial recognition, the guarantee liabilities continue to be reduced by recording a credit to net income as the guarantor is released from the guaranteed risk over the terms of the underlying loans, as “Guarantee income” on the Consolidated Statements of Operations. The expected credit losses of the guarantee (the contingent aspect recorded as “Contingent guarantee liabilities”) are accounted for in addition to and separately from the guarantee liability (the noncontingent aspect recorded as “Deferred guarantee income”) accounted for under ASC 460. The contingent guarantee liabilities are determined using CECL lifetime methodology, and recognized in full amount at loan inceptions. At each reporting date, the Group measures the contingent guarantee liabilities of the underlying loans, on a portfolio basis, and the relevant credit losses of guarantee are recorded as “Provision for contingent guarantee liabilities” on the Consolidated Statements of Operations. The following table sets forth the activities of the Group’s obligations associated with the deferred guarantee income for the years ended December 31, 2021, 2022 and 2023: For the Year Ended For the Year Ended For the Year Ended (RMB in thousands) Opening balances 694,582 419,843 894,858 Fair value of deferred guarantee income at inception of new loans 499,805 1,928,195 3,162,811 Release of deferred guarantee income ( 774,544 ) ( 1,453,180 ) ( 2,519,284 ) Ending balances 419,843 894,858 1,538,385 The following table sets forth the activities of the Group’s obligations associated with the contingent guarantee liabilities for the year ended December 31, 2021, 2022 and 2023: |
Loans at Fair Value | (j) Loans at fair value From time to time, the Group acquires the installment of loans when they are one day past due, or purchases the entire loans with certain monthly repayments that are past due over certain days consecutively or cumulatively, from certain funding partners, according to the relevant cooperation agreements with respective funding partners. For those loans the Group acquired or purchased from the relevant funding partners, the Group accounts for them using fair value option pursuant to ASC 825, Financial Instruments, and records them as "Loans at fair value" under “Prepayments and other current assets” on the Consolidated Balance Sheets. As the loans acquired or purchased are not traded in an active market with readily observable prices, the Group estimates the fair value of loans acquired or purchased from funding partners using a discounted cash flow valuation methodology by discounting the estimated future net cash flows using an appropriate discount rate. The future net cash flows are estimated based on the contractual cash flows, taking into consideration of estimated future credit recoveries of the loans upon acquisition or purchase. Changes in fair value of loans are reported net and recorded in “Change in fair value of loans at fair value” on the Consolidated Statements of Operations. |
Guarantee Derivatives | (k) Guarantee derivatives In order to determine the accounting treatment of the guarantee, the Group considered the criteria of scope exception under ASC 815‑10‑15‑58. In order to qualify for this scope exception, the financial guarantee contracts must meet all three of the following criteria: (a) provide for payments to be made solely to reimburse the guaranteed party for failure of the debtor to satisfy its required payment obligations either at prescriptive payment dates or accelerated payment dates as a result of the occurrence of an event of default or notice of acceleration being made to the debtor by the creditor; (b) payment be made only if the debtor’s obligation to make payments as a result of conditions as described in (a) is past due; and (c) the guaranteed party is, as a precondition in the contract for receiving payment of any claim under the guarantee, exposed to the risk of non‑payment both at inception and throughout its term either through direct legal ownership or through other arrangement. For the financial guarantee provided by the Group that does not meet the scope exception under ASC 815‑10‑15‑58, the Group accounts for the financial guarantee contracts with these Institutional Funding Partners as derivatives under ASC 815, Derivatives and Hedging , and records them on the Consolidated Balance Sheets as either assets or liabilities at fair value. Derivative assets and liabilities within the scope of ASC 815 are required to be recorded at fair value at inception and remeasured at fair value on an ongoing basis in accordance with ASC 820, Fair Value Measurement . Therefore, the financial guarantee derivatives will be subsequently marked to market at the end of each reporting period with gains and losses recognized as change in fair value of financial guarantee derivatives. The estimated fair value of the financial guarantee derivatives is determined by the Group based on a discounted cash flow model, with reference to estimates of cumulative loss rates and margins on cost of guarantee services. |
Revenue Recognition | (l) Revenue recognition The Group considered relevant accounting guidance and concluded that arrangements for its on-balance sheet loans and guarantee services provided for its off-balance sheet loans are out of scope of ASC 606, Revenue from Contracts with Customers . Therefore, “Financing income” and “Guarantee income” included in “Credit facilitation service income” on the Consolidated Statements of Operations should be accounted for in accordance with ASC 310, Receivables and ASC 460, Guarantees, respectively. Other revenue streams are accounted for in accordance with ASC 606. Under ASC 606, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services, net of value-added tax. The Group identifies its contracts with customers and all performance obligations within those contracts. The Group then determines the transaction price and allocates the transaction price to the performance obligations within the Group’s contracts with customers, recognizing revenue when, or as, the Group satisfies its performance obligations. For considerations with original payment terms greater than 12 months, the Group determines a significant financing component exists in the arrangements. The discount rate, which reflects the credit risk of the customers, is used in adjusting the consideration at inception for revenue recognition. Interest income resulting from a significant financing component is recorded as “Financing income” on the Group’s Consolidated Statements of Operations. Disaggregation of revenues within the scope of ASC 606 The following table presents the Group’s operating revenue within the scope of ASC 606 disaggregated by revenue sources: For the Year Ended December 31, 2021 2022 2023 (RMB in thousands) Installment e-commerce platform service income Installment e-commerce platform service income 1,661,156 1,997,838 1,585,625 Other services 564 58,227 164,884 Total installment e-commerce platform service income 1,661,720 2,056,065 1,750,509 Credit facilitation service income Loan facilitation and matching servicing fees-credit oriented 3,120,892 1,404,507 4,178,477 Post-origination servicing fees-credit oriented 1,327,452 1,082,020 823,404 Total credit facilitation service income 4,448,344 2,486,527 5,001,881 Tech-empowerment service income Loan facilitation and matching servicing fees- performance based 1,727,794 935,234 702,774 Post-origination servicing fees- performance based 561,658 427,404 280,574 Loan facilitation and servicing fees- volume based 279,902 252,460 349,927 Membership services 107,901 82,256 133,211 Other services 85,740 148,589 173,967 Total tech-empowerment service income 2,762,995 1,845,943 1,640,453 Total revenue from loan facilitation and servicing fees 7,017,698 4,101,625 6,335,156 Total operating revenue within the scope of ASC 606 8,873,059 6,388,535 8,392,843 The following table presents the Group’s operating revenue within the scope of ASC 606 disaggregated by timing of revenue recognition: For the Year Ended December 31, 2021 2022 2023 (RMB in thousands) Revenues recognized at point-in-time 6,876,048 4,796,855 7,155,654 Revenues recognized over time 1,997,011 1,591,680 1,237,189 Total operating revenue within scope of ASC 606 8,873,059 6,388,535 8,392,843 The Group’s revenue recognition policies under ASC 606 are as follows: Installment e-commerce platform service Online direct sales The Group engages in the online direct sales of electronic products, and to a lesser extent, home appliance products and general merchandise products with installment payment terms mainly through its retail website www.fenqile.com and its APP. The income from online direct sales is recognized at point-in-time when control of promised goods or services is transferred to the customers, which generally occurs upon the acceptance of the goods or services by the customers. For arrangements where the Group controls the goods or services before they are transferred to the customers as a principal, as it is primarily responsible for fulfilling the promise to provide the goods or services, is subject to inventory risk, and has discretion in establishing prices, revenues are recorded on a gross basis. Otherwise, revenues are recorded on a net basis. The goods or services are generally sold with a right of return, which is accounted for as variable consideration when determining the amount of revenue to recognize. Return allowances are estimated based on historical experiences and insignificant for all of the periods presented. For these transactions, the Group generates financing receivables due from the Borrowers who place orders. The online direct sales revenues and related financing receivables are accounted for as sales of products or services to the Borrowers with extended payment terms and recorded at present value of the contractual cash flows when the Group’s performance obligations are satisfied. The financing receivables initially generated from online direct sales may be subsequently funded with the proceeds from on- or off-balance sheet loans as discussed in Note 2(f). Other services The Group also operates online marketplace that enable third party sellers to provide their goods or services to customers. The Group earns commission fee based on the sales amount for the services rendered. Revenues are recognized at point-in-time when the underlying transactions are completed, i.e., upon acceptance of the underlying goods or services by the customers. In accordance with ASC 606-10-55-39, the Group recognizes the service fees as revenues on a net basis, as the Group is acting as an agent and does not have general inventory risk or does not have discretion to establish prices. For these transactions whereby the Group pays to the third party sellers on behalf of the customers where the customers select the installment payment terms, the Group generates financing receivables due from the Borrowers, which may be subsequently funded with the proceeds from on- or off-balance sheet loans as discussed in Note 2(f). Credit facilitation service and tech-empowerment service income Loan facilitation and servicing fees With respect to the off‑balance sheet loans, the Group does not record financing receivables arising from these loans nor funding debts to the funding partners. The Group earns loan facilitation and servicing fees and records them under “Credit facilitation service income,” “Tech-empowerment service income” based on respective arrangements, as applicable. Revenues from loan facilitation and matching and post-origination services-overall The Group provides intermediary services to the Borrowers and funding partners as the lenders. The intermediary services provided include (i) loan facilitation and matching services, (ii) post-origination services (i.e. account maintenance, collection, and payment processing), and (iii) a financial guarantee, if any. The Group has assessed all these services and concludes that loan facilitation and matching services and post-origination services are distinct and therefore are separate performance obligations. The financial guarantee, if any, is within the scope of ASC 815, Derivatives and Hedging or ASC 460, Guarantees, where applicable, and recorded at fair value at inception of the loans. The remaining consideration is allocated to each of the performance obligations based on relative standalone selling price of each of the services being provided to customers. The Group primarily uses the expected cost plus a margin approach to determine the relative standalone selling price as a result of the adoption of ASC 606. The transaction price is the amount of consideration to which the Group expects to be entitled in exchange for transferring the promised services to its customers, net of value-added tax. The transaction price includes variable service fees which is estimated using the expected value method and is limited to the amount of variable consideration that is probable not to be reversed in future periods. The Group assesses whether the estimate of variable consideration is constrained. Revenues from loan facilitation and matching services are recognized at point-in-time upon the successful matching of the borrowing requests from the Borrowers with the funding partners as the lenders. Revenues from post-origination services are recognized ratably over the terms of the underlying loans as this performance obligation is satisfied over time. For the off-balance sheet loans funded by certain Institutional Funding Partners, where the Group also provides guarantee services, revenue from loan facilitation and matching and post-origination services under this business model is recorded as “Loan facilitation and matching servicing fees-credit oriented” and “Post-origination servicing fees-credit oriented” respectively under “Credit facilitation service income.” Revenue from guarantee services is recorded as “Guarantee income” under ASC 460 (Note 2(f)) under Credit facilitation service income. For the off-balance sheet loans funded by certain other Institutional Funding Partners, where the Group does not provide guarantee services and takes no credit risks of Borrowers in respect of principal and interests due to the lenders, the Group charges the service fees for loan facilitation and servicing at predetermined rates based on the performance of the underlying off-balance sheet loans. Revenue from loan facilitation and matching and post-origination services under this business model is recorded as “Loan facilitation and matching servicing fees-performance based” and “Post-origination servicing fees-performance based” under “Tech-empowerment service income.” The Group refer users on our platform for whom the group may temporarily not in an appropriate position to provide services to other third-party online lending platforms and charges a referral fee based on the loan origination volume, cost per-click or other criteria. Revenue from loan facilitation and matching under this business model is recognized as “Loan facilitation and servicing fees-volume based” under “Tech-empowerment service income” upon loan origination, each click or other performance obligation is satisfied. Membership services The Group offers membership packages to the subscribing members with access to benefits of sales of products and services on the Group’s Platform and APP that represent a single stand-ready obligation, in exchange for upfront premium membership fees. The receipt of premium membership fees is initially recorded as “Deferred service fees” included in “Accruals and other current liabilities” and membership fees are recognized ratably over the terms of the membership packages as the Group’s performance obligation is satisfied over time under “Tech-empowerment service income.” Other services under tech-empowerment service income The Group also engages in other business, which consists primarily of technical services to financial institutions. Revenues generated by the Group from these businesses are recorded under “Tech-empowerment service income” when performance obligation is satisfied. Financing income The Group generates financing income from its financing receivables, which comprises of interest income and others. Interest income is recognized over the terms of financing receivables using the effective interest method. Direct origination costs include costs directly attributable to originating financing receivables, including vendor costs and personnel costs directly related to the time spent by those individuals performing activities related to the origination of financing receivables. Considering the credit risk characteristics of the Borrowers as well as the relatively small amount of each individual financing receivable, the Group determined that direct origination costs incurred for originating individual financing receivables are insignificant and expensed as incurred and recorded in “Processing and servicing cost” on the Consolidated Statements of Operations. The Group stops accruing interest income and reverses all accrued but unpaid interest as of such date when reasonable doubt exists as to the full, timely collection of interest or principal. Other revenues include fees collected for prepayment and late payment for on‑balance sheet loans, which are calculated as certain percentages of interest over the prepaid principal loan amount in case of prepayment or certain percentages of past due amounts in case of late payment. Customer incentives In order to incentivize the individual customers to use the Platform and APP, the Group primarily provides two major types of incentive c oupons: cash coupons that have a stated discount amount that reduces the selling price of a future purchase of product and repayment coupons that have a stated discount amount that reduce a future installment repayment. Both cash coupons and repayment coupons are given for free at the Group’s discretion, which are not linked to any transactions or previous transactions from the Platform and APP when they are given. In accordance with ASC 606-10-32-27, cash coupons and repayment coupons are accounted for as a reduction of revenue of the Group upon the future purchase or application by the customers. The amount of cash coupons and repayment coupons recognized as a reduction of revenue was RMB 200 million, RMB 122 million and RMB 105 million for the years ended December 31, 2021, 2022 and 2023, respectively. The Group offers a referral code incentive in cash to existing Borrowers for promoting its Platform and APP. Referral code incentives are granted to existing Borrowers for each new Borrower who successfully signs up on the Platform and APP using the existing Borrowers’ referral codes and has been granted a credit line. Referral code incentives, amounting to RMB 27.3 million, RMB 11.9 million an d negative RMB 3.0 million w ere recorded as sales and marketing expenses on the Consolidated Statements of Operations for the years ended December 31, 2021, 2022, and 2023, respectively. Contract balances The Group classifies its right to consideration in exchange for products or services transferred to a customer as either a receivable or a contract asset. A receivable is a right to consideration that is unconditional as compared to a contract asset which is a right to consideration that is conditional upon factors other than the passage of time. Generally, the amount of revenue recognized from loan facilitation and matching services and Investment Program management services exceeds the amount billed to customers following the predetermined payment schedules at inception of the loans. The Group does not have an unconditional right to such exceeding amount. Service fees receivable represent the considerations for which the Group has satisfied its performance obligations and has the unconditional right to consideration. At each reporting date, the Group assesses whether there is any indicator of impairment to the contract assets and receivables. An impairment loss, if any, is recorded as “Provision for contract assets and receivables” on the Consolidated Statements of Operations. Contract liabilities relate to unsatisfied performance obligations at the end of each reporting period and consist of cash payment received in advance from customers in membership services and post-origination services, which is recorded as “Deferred service fees” included in “Accruals and other current liabilities” on the Consolidated Balance Sheets. The amount of revenue recognized that was included in the contract liabilities balance at the beginning of the years were RMB 26.7 million and RMB 31.1 million for the years ended December 31, 2022 and 2023, respectively. Remaining performance obligations The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be recognized as of the end of the reporting period and an explanation as to when the Group expects to recognize these amounts in revenue. Additionally, as a practical expedient, the Group does not include contracts that have an original duration of one year or less. As of December 31, 2022 and 2023, the aggregate amount of the transaction price allocated to remaining performance obligations related to customer contracts that are unsatisfied or partially unsatisfied was RMB 312 million and RMB 339 million , respectively. Given the profile of contract terms, substantially all of the remaining performance obligation is expected to be recognized as revenue over the next three years . Practical expedients The Group has used the following practical expedients as allowed under ASC 606: The remaining performance obligation has not been disclosed when the performance obligation is part of a contract that has an original duration of one year or less. The Group expenses sales commissions as incurred when the amortization period is one year or less. Sales commission expenses are recorded within “Sales and marketing expenses” on the Consolidated Statements of Operations. |
Cash and Cash Equivalents | (m) Cash and cash equivalents Cash and cash equivalents represent cash on hand, demand deposits placed with banks or other financial institutions, which are unrestricted to withdrawal or use. As of December 31, 2022 and 2023, the Group did no t have any cash equivalents. |
Restricted Cash | (n) Restricted cash Restricted cash mainly represents: (i) cash received from the Borrowers but not yet been repaid to the funding partners or received from the funding partners but not yet been distributed to the Borrowers which is not available to fund the general liquidity needs of the Group; and (ii) security deposits set aside for partnering commercial banks in case of Borrowers’ defaults; and (iii) cash received via consolidated trust and ABS that has not been distributed. |
Restricted term deposit and short-term investments | (o) Restricted term deposit and short-term investments Restricted term deposit include (i) time deposits securing the Group’s borrowings from financial institutions, and (ii) time deposits placed with and set aside for partnering commercial banks as Institutional Funding Partners in case of Borrowers' defaults. Short-term investments represent bank time deposits and structured deposit which are certain deposits with variable interest rates and principal guaranteed with certain financial institutions. Their original maturities are of greater than three months but less than one year. In accordance with ASC 825, Financial Instruments, for structured deposit with the interest rate indexed to performance of underlying assets, the Group elected the fair value method at the date of initial recognition and carried these investments at fair value. Changes in the fair value are reflected by the market value of the investment. |
Inventories, Net | (p) Inventories, net Inventories, consisting of products available for sale, are stated at the lower of cost or net realizable value. Prior to September 2023, and for the years ended December 31, 2022 and 2021, cost of inventory is determined using the moving average cost method. Starting from September 2023, cost of inventory is determined using the first-in-first-out cost method. Such change did not have a material impact on the financial position and results of operations and therefore was not applied retrospectively in accordance with ASC 250-10-S99-3. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of disposal and transportation. Adjustments are recorded to write down the cost of inventory to the net realizable value due to slow-moving merchandise and damaged goods, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. The Group takes ownership, risks and rewards of the products purchased. Write-downs are recorded in cost of revenues in the Consolidated Statements of Operations. As of December 31, 2022 and 2023, all inventory balances were products available for sale. The Group also provides fulfillment-related services in connection with the Group’s online marketplace, with revenue from the related commission fee recognized under “Installment e-commerce platform service income. Third-party sellers maintain ownership of their inventories and therefore these products are not included in the Group’s inventories. |
Long-Term Investments | (q) Long-term investments The Group’s long-term investments consist of equity investments in privately held companies accounted for using the measurement alternative, equity investments accounted for using the equity method and a debt investment in forms of a loan. Equity investments accounted for using the measurement alternative The Group measures long-term equity investments, other than equity method investments, at fair value through earnings. For those investments over which the Group does not have significant influence and without readily determinable fair value, the Group elected to record these investments at cost, less impairment, and plus or minus subsequent adjustments for observable price changes. Under this measurement alternative, changes in the carrying value of the equity investments are required to be made whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. The Group makes reasonable efforts to identify price changes that are known or that can reasonably be known. The Group also makes a qualitative assessment of whether these investments are impaired at each reporting date. If a qualitative assessment indicates that the investment is impaired, the Group has to estimate the investment’s fair value in accordance with the principles of ASC 820. If the fair value is less than the investment’s carrying value, the Group has to recognize an impairment loss equal to the difference between the carrying value and fair value under “Investment loss” on its Consolidated Statements of Operations. Equity investments accounted for using the equity method The Group applies the equity method of accounting to account for its equity investments, according to ASC 323 Investment-Equity Method and Joint Ventures, over which it has significant influence but does not own a majority equity interest or otherwise control. Under the equity method, the Group initially records the investments at cost and the difference between the cost of the equity investee and the fair value of the underlying equity in the net assets of the equity investee is recognized as equity method goodwill, which is included in the equity method investments on the Consolidated Balance Sheets. The Group subsequently adjusts the carrying amount of the investments to recognize its proportionate share of each equity investee's net income or loss into earnings and cash distributions from investees, if any, after the date of investment. The Group evaluates the equity method investments for impairment under ASC 323. An impairment loss on the equity method investment is recognized in earnings under “Investment-related impairment” when the decline in value is determined to be other-than-temporary. Debt investment The loan held for long-term investment is carried at outstanding principal adjusted for any write-offs, and allowance for loan losses, any deferred fees or cost, and any unamortized premiums or discounts on the Consolidated Balance Sheets. The Group records the interest income associated with the debt investment using effective interest rate method on the Consolidated Statements of Operations. The allowance for credit losses was recognized that reflects the Group’s best estimate of the amounts that will not be collected. |
Property, Equipment and Software, Net | (r) Property, equipment and software, net Property, equipment and software, net are stated at cost less accumulated depreciation, amortization and impairment, if any. Depreciation and amortization is computed using the straight‑line method over the estimated useful lives of the assets. Construction in progress represents buildings and related premises under construction, which is stated at actual construction cost less any impairment loss. Construction in progress is transferred to the respective category of property and equipment when completed and ready for its intended use. Costs of repairs and maintenance are expensed as incurred and asset improvements are capitalized. The cost and related accumulated depreciation of assets disposed of or retired are removed from the accounts, and any resulting gain or loss is reflected under “Others, net” on its Consolidated Statements of Operations. The estimated useful lives are as follows: Category Estimated Useful Lives Computers and equipment 3 years Furniture and fixtures 4 ‑ 5 years Leasehold improvement Over the shorter of the expected life of leasehold improvement or the lease term Software 3 ‑ 10 years |
Land Use Rights, Net | (s) Land use rights, net Land use rights represent the land use rights obtained for the purpose of constructing offices, which was amortized on a straight-line basis over the term of the land use right period, approximately 30 years . |
Impairment of Long-Lived Assets | (t) Impairment of long‑lived assets Long‑lived assets are evaluated for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be fully recoverable or that the useful life is shorter than the Group had originally estimated. When these events occur, the Group evaluates the impairment for the long‑lived assets by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Group recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. |
Other Assets | (u) Other assets Other assets on the Consolidated Balance Sheets mainly represent the long-term deposits made to the institutional funding partners, insurance companies and guarantee companies, the investment related prepayment, and other long-term assets. The Group assesses the recoverability of these assets and establishes allowances to reflect the net amounts expected to be recovered. The allowance is management’s estimate of expected credit losses after considering historical collection activity, nature of assets, current business environment and relevant forward-looking elements that may affect the recoverability. As of December 31, 2022 and 2023, the allowances for expected credit losses for other assets were RMB 19 million and RMB 225 million respectively, and out of which, the allowance related to such investment related prepayment were RMB 17 million and RMB 223 million, respectively. The Group assessed the recoverability of RMB 270 million investment related prepayment for equity interest in a domestic private bank, and recognized an additional loss of RMB 206 million for the year ended December 31, 2023, considering the operating difficulties and liquidity issues of the counterparty encountered, which is recorded in “investment loss” on the Consolidated Statement of Operations. |
Fair Value Measurements | (v) Fair value measurements Financial instruments Accounting guidance defines fair value as 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. Accounting guidance establishes a fair value hierarchy that 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. Accounting guidance establishes three levels of inputs that may be used to measure fair value: • Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. • Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical asset or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model‑derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. • Level 3 applies to asset or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Fair value measurements on a recurring basis The carrying amount of cash and cash equivalents, restricted cash, amounts due from related parties, accounts payable, and amounts due to related parties approximates fair value because of their short‑term nature. Financing receivables are measured at amortized cost. Funding debts and accrued interest payable are carried at amortized cost. The carrying amount of the financing receivables, funding debts, and accrued interest payable approximates their respective fair value as the interest rates applied reflect the current quoted market yield for comparable financial instruments. For the off‑balance sheet loans funded by certain Institutional Funding Partners, the Group accounts for financial guarantee provided at fair value. The Group uses significant unobservable inputs to measure the fair value of these guarantee liabilities. The Group considers unobservable inputs to be significant, if, by their exclusion, the estimated fair value of a Level 3 asset or liability would be impacted by a significant percentage change, or based on qualitative factors such as the nature of the instrument and significance of the unobservable inputs relative to other inputs used within the valuation. The Group’s restricted term deposit and short-term investments are measured at fair value. The fair value is determined based on the prevailing interest rates for similar products in the market (Level 2). The Group elected the fair value option for the loans acquired or purchased from the relevant funding partners. The Group uses significant unobservable inputs to measure the fair value of these loans (Level 3). Fair value measurements on a non-recurring basis The Group measures certain financial assets at fair value on a non-recurring basis only if an impairment charge were to be recognized. The Group’s long-term equity investments are measured at fair value on a nonrecurring basis under measurement alternative, if an impairment loss is charged or fair value adjustment is made for an observable price change in an orderly transaction for identical or similar investments of the same issuer. The Group’s non‑financial assets, such as property, equipment and software, would be measured at fair value only if they were determined to be impaired. |
Cost of Sales | (w) Cost of sales Cost of sales consists of purchase price of the products, shipping charges and handling costs, as well as write‑downs of inventory. Shipping charges to receive products from suppliers are included in the inventories, and recognized as cost of sales upon sale of the products to customers. For each of the periods presented, write‑downs of inventory were insignificant. |
Funding Cost | (x) Funding cost Funding cost consists of interest expense the Group pays to funding partners, including certain Institutional Funding Partners and third-party investors of the consolidated Trusts and the asset backed securitized debts, to fund its on-balance sheet loans, certain fees and amortization of deferred debt issuance costs incurred in connection with obtaining these debts, such as origination fees and legal fees. |
Processing and Servicing Cost | (y) Processing and servicing cost Processing and servicing cost consists primarily of vendor costs related to credit assessment, customer and system support, payment processing services and collection services associated with originating, facilitating and servicing the loans. |
Sales and Marketing Expenses | (z) Sales and marketing expenses Sales and marketing expenses consist primarily of advertising costs and payroll and related expenses for personnel engaged in marketing and business development activities. Advertising costs, which consist primarily costs of online advertising and offline outdoor promotion activities, are expensed as incurred and are included within sales and marketing expenses on the Consolidated Statements of Operations. For the years ended December 31, 2021, 2022 and 2023, advertising costs totaled RMB 1,021 million, RMB 873 million and RMB 990 million, respectively. |
Research and Development Expenses | (aa) Research and development expenses Research and development expenses consist primarily of payroll and related expenses for IT professionals involved in developing technology platform and website, server and other equipment depreciation, bandwidth and data center costs. All research and development costs have been expensed as incurred as the costs qualifying for capitalization have been insignificant. |
General and Administrative Expenses | (bb) General and administrative expenses General and administrative expenses consist of payroll and related expenses for employees involved in general corporate functions, including finance, legal and human resources; costs associated with use of facilities and equipment, such as depreciation expenses, rental and other general corporate related expenses. |
Leases | (cc) Leases On January 1, 2019, the Group adopted ASU No. 2016-02, Leases (Topic 842). Under ASC Topic 842(leases), the Group determines if an arrangement is or contains a lease at inception. Right-of-use assets and liabilities are recognized at lease commencement date based on the present value of remaining lease payments over the lease terms. The Group considers only payments that are fixed and determinable at the time of lease commencement. The Group leases certain office premises under non‑cancelable leases, which expire at various dates through August 2026. As of December 31, 2023, the Group’s operating leases had a weighted average remaining lease term of 2.5 years and a weighted average discount rate of 4.91 %. Future minimum lease payments under non‑cancelable operating leases agreements are as follows: For the Year ended December 31, 2023 RMB in thousands 2024 41,627 2025 36,285 2026 21,263 Total future lease payments 99,175 Impact of discounting remaining lease payments ( 7,531 ) Total lease liabilities 91,644 - Short-term portion 40,942 - Long-term portion 50,702 Operating lease cost for the years ended December 31, 2021, 2022 and 2023 was RMB 59.7 million, RMB 53.2 million and RMB 45.3 million, respectively, which excluded cost of leasing contracts with original terms less than 12 months. Short-term lease cost for the years ended December 31, 2021, 2022 and 2023 was RMB 6.4 million, RMB 13.1 million and RMB 19.8 million, respectively. Supplemental cash flow information related to operating leases was as follows: For the Year ended December 31, 2023 RMB in thousands Cash payments for operating leases 48,943 Right-of-use assets obtained in exchange for operating lease liabilities 29,915 |
Share-Based Compensation | (dd) Share‑based compensation Share-based awards granted to the Group’s employees and non-employees, directors and non-employee directors, such as stock options and restricted share units, are measured at the grant date based on the fair value of the awards in accordance with ASC 718, Compensation-Stock Compensation . Share-based compensation, net of estimated forfeitures, is recognized as expenses on a straight-line basis over the requisite service period, which is the vesting period. The modification of the terms or conditions of the existing shared-based award is treated as an exchange of the original award for a new award. The incremental compensation expenses are equal to the excess of the fair value of the modified award immediately after the modification over the fair value of the original award immediately before the modification. For stock options already vested as of the modification date, the Group immediately recognized the incremental value as compensation expenses. For stock options still unvested as of the modification date, the incremental compensation expenses are recognized over the remaining service period of these stock options. Stock options and restricted share units granted generally vest over four years . The exercise price of each granted stock option is determined by the closing price of the Company’s ordinary share on the grant date. Therefore, the Company utilizes the binomial option pricing model to estimate the fair value of stock options granted after the IPO. The fair value of each granted restricted share unit is determined by the closing price of the Company’s ordinary share on the grant date. Forfeitures are estimated at the time of grant and revised in subsequent periods if actual forfeitures differ from those estimates. The Group uses historical data to estimate forfeitures of share-based awards and records share-based compensation expenses only for those awards that are expected to vest. |
Taxation | (ee) Taxation Income tax Current income tax is provided for in accordance with the laws of the relevant tax jurisdictions. Deferred income tax is provided using assets and liabilities method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are recognized to the extent that these assets are more‑likely‑than‑not to be realized. In making such a determination, the Group considers all positive and negative evidence, including future reversals of projected future taxable income and results of recent operation. The Group records a valuation allowance to reduce the amount of deferred tax assets if based on the weight of available evidence, it is more‑likely‑than‑not that some portion, or all, of the deferred tax assets will not be realized. Uncertain tax positions To assess uncertain tax positions, the Group applies a more‑likely‑than‑not threshold and a two‑step approach for the tax position measurement and financial statement recognition. Under the two‑step approach, the first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more‑likely‑than‑not that the position will be sustained, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likelihood of being realized upon settlement. The Group classifies interest and penalties related to income tax matters, if any, in income tax expense. |
Net Income Per Share | (ff) Net income per share Basic net income per share is computed by dividing net income attributable to ordinary shareholders. Net income per ordinary share are computed on Class A Ordinary Shares and Class B Ordinary Shares together, because both classes have the same dividend rights in the Company’s undistributed net income. Diluted net income per share is calculated by dividing net income attributable to ordinary shareholders by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Ordinary equivalent shares consist of ordinary shares issuable upon the conversion of convertible notes using the if-converted method, and ordinary shares issuable upon the exercise of outstanding stock options and vesting of restricted share units, using the treasury stock method. Ordinary equivalent shares are not included in the denominator of the diluted income per share calculation when inclusion of such shares would be anti-dilutive. |
Segment Reporting | (gg) Segment reporting The Group engages primarily in online direct sales services and online consumer finance services for its customers in the PRC. The Group does not distinguish between markets or business lines for the purpose of internal reports. The Group does not distinguish revenues, costs and expenses between business lines in its internal reporting, and reports costs and expenses by nature as a whole. The Group’s chief operating decision maker, who has been identified as the Chief Executive Officer, reviews the consolidated results when making decisions about allocating resources and assessing performance of the Group as a whole and hence, the Group has only one segment. As most of the Group’s long lived assets are all located in the PRC and the Group’s revenues are primarily derived from the PRC, no geographical segments are presented. |
Statutory Reserves | (hh) Statutory reserves The Company’s subsidiaries, the VIEs and the VIEs’ subsidiaries established in the PRC are required to make appropriations to certain non‑distributable reserve funds. In accordance with the laws applicable to the Foreign Investment Enterprises (“FIEs”) established in the PRC, the Group’s subsidiaries registered as wholly foreign‑owned enterprises (“WFOEs”) have to make appropriations from its annual after‑tax profits as determined under Generally Accepted Accounting Principles in the PRC (“PRC GAAP”) to reserve funds including general reserve fund, enterprise expansion fund and staff bonus and welfare fund. The appropriation to the general reserve fund must be at least 10 % of the annual after‑tax profits calculated in accordance with PRC GAAP. Appropriation is not required if the general reserve fund has reached 50 % of the registered capital of the company. Appropriations to the enterprise expansion fund and staff bonus and welfare fund are made at the respective company’s discretion. In addition, in accordance with the PRC Company Laws, the consolidated VIEs and the VIEs’ subsidiaries, registered as Chinese domestic companies, must make appropriations from their annual after‑tax profits as determined under PRC GAAP to non‑distributable reserve funds including statutory surplus fund and discretionary surplus fund. The appropriation to the statutory surplus fund must be 10 % of the annual after‑tax profits as determined under PRC GAAP. Appropriation is not required if the statutory surplus fund has reached 50 % of the registered capital of the company. Appropriation to the discretionary surplus fund is made at the respective company’s discretion. The use of the general reserve fund, enterprise expansion fund, statutory surplus fund and discretionary surplus fund are restricted to offsetting of losses or increasing of the registered capital of the respective company. The staff bonus and welfare fund is a liability in nature and is restricted to fund payments of special bonus to employees and for the collective welfare of all employees. None of these reserves are allowed to be transferred to the company in terms of cash dividends, loans or advances, nor can they be distributed except under liquidation. For the years ended December 31, 2021, 2022 and 2023, profit appropriation to general reserve fund and statutory surplus fund for the Group’s entities incorporated in the PRC was approximately RMB 252 million, RMB 121 million and RMB 84 million respectively. |
Significant Risks and Uncertainties | (ii) Significant risks and uncertainties Foreign currency risk The PRC government imposes controls on the convertibility of RMB into foreign currencies. The Group’s cash and cash equivalents, restricted cash and restricted term deposit and short-term investments denominated in RMB that are subject to such government controls amounted to RMB 3,159 million and RMB 4,253 million as of December 31, 2022 and December 31, 2023, respectively. The value of RMB is subject to changes in the central government policies and to international economic and political developments affecting supply and demand in the PRC foreign exchange trading system market. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the PBOC. Remittances in currencies other than RMB by the Group in the PRC must be processed through PBOC or other Chinese foreign exchange regulatory bodies which require certain supporting documentation in order to process the remittance. Operation and compliance risk In August 2017, the State Council promulgated the Regulations on the Supervision and Administration of Financing Guarantee Companies, or the Financing Guarantee Regulations, effective October 1, 2017. In October 2019, the CBIRC and other eight PRC regulatory agencies promulgated the Supplementary Provisions on the Supervision and Administration of Financing Guarantee Companies, or the Financing Guarantee Supplementary Provisions. The Financing Guarantee Supplementary Provisions provides that, among others, institutions providing services such as client recommendation and credit assessment to various institutional funding partners shall not render any financing guarantee service, whether directly or in disguised form, without the necessary approval. Otherwise, the penalties set forth in the Financing Guarantee Regulations may be imposed by the regulatory authorities, and the Group’s existing business shall be properly settled. Due to a lack of further interpretations, the exact definition and scope of “operating financing guarantee business” under the Financing Guarantee Regulations or “providing financing guarantee services in disguised form” under the Financing Guarantee Supplementary Provisions are still unclear. The Group provided various investor protection measures to Institutional Funding Partners through different kinds of arrangements, including providing a deposit, and risk safeguard measures to compensate the insurance companies and guarantee companies in the event that they performed their guarantee or insurance obligations upon the Borrowers’ defaults. It is uncertain whether these or certain of these arrangements would be deemed to have operated financing guarantee business or provided financing guarantee services in disguised form. If such arrangements were deemed to be in violation of any applicable laws and regulations, the Group could be subject to penalties and/or be required to change its current business model, and as a result, the Group’s business, financial condition, and results of operations would be materially and adversely affected. In an effort to ensure compliance with applicable laws and regulations, the Group has currently conducted part of the investor protection measures through its own financial guarantee companies, which are qualified to provide financing guarantee services. The Group is continuously making efforts to adjust its business model and practice to mitigate the relevant compliance risk. Concentration of credit risk Credit risk is one of the most significant risks for the Group’s loans businesses. The Group records provision for credit losses based on its estimated probable losses against its financing receivables. Apart from the financing receivables, financial instruments that potentially expose the Group to significant concentration of credit risk primarily included in the financial statement line items of cash and cash equivalents, restricted cash, restricted term deposit and short-term investments, prepayments and other current assets, guarantee receivables, service fees receivable and contract assets, and deposits to insurance companies and guarantee companies. The Group holds its cash and cash equivalents, restricted cash and restricted term deposit and short-term investments at reputable financial institutions in the PRC and at international financial institutions with high ratings from internationally recognized rating agencies. As of December 31, 2023, approximately 98 % of the Group’s cash and cash equivalents, restricted cash and restricted term deposit and short-term investments were hel d in the financial institutions in the PRC and the remaining cash and cash equivalents, restricted cash and restricted term deposit and short-term investments were held in financial institutions outside the PRC. Financing receivables, service fees receivable and contract assets are typically unsecured and are derived from revenues earned from customers in the PRC. The risk with respect to these receivables and contract assets are mitigated by credit evaluations the Group performs on its Borrowers and the Group’s ongoing monitoring process of outstanding balances. Concentration of customers, suppliers, and funding partners There was no revenue from customers which individually represented greater than 10% of the total operating revenue for any of the periods presented. There were no financing receivables or contract assets and receivables due from customers of the Group that individually accounted for greater than 10% of the Group’s carrying amount of financing receivables and contract assets and receivables as of December 31, 2022 and 2023, respectively. There were two , nil and one inventory suppliers accounted for more than 10% of the Group’s total purchases for the years ended December 31, 2021, 2022 and 2023, respectively. Four and two suppliers accounted for more than 10% of the Group’s accounts payable as of December 31, 2022 and 2023, respectively, as follows: As of December 31, 2022 2023 Inventory supplier A — 13.9 % Inventory supplier B 28.9 % 12.6 % Inventory supplier C 23.4 % * Inventory supplier D 17.5 % * Inventory supplier E 11.6 % * * Less than 10%. There were two Institutional Funding Partners that accounted for more than 10% of the Group’s total funding cost for the year ended December 31, 2021, 2022 and 2023. Institutional Funding Partners accounted for more than 10% of the Group’s funding debts as of December 31, 2022 and 2023 respectively as follows: As of December 31, 2022 2023 Institutional Funding Partner A 16.9 % 33.9 % Institutional Funding Partner B 16.5 % 36.3 % There were no Institutional Funding Partner that accounted for more than 10% of the Group’s origination of off-balance sheet loans for the year ended December 31, 2022 and 2023. As of December 31, 2022, one guarantee company accounted for more than 10% of the Group’s deposits to insurance companies and guarantee companies. As of December 31, 2023, three guarantee companies accounted for more than 10% of the Group’s deposits to insurance companies and guarantee companies. As of December 31, 2022 2023 Guarantee Company A 23.4 % 17.1 % Guarantee Company B * 11.3 % Guarantee Company C * 11.2 % * Less than 10%. |
Recent Accounting Pronouncements | (a) Recent accounting pronouncements In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (ASU 2021-08) , which clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. The new amendments are effective for us are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The amendments should be applied prospectively to business combinations occurring on or after the effective date of the amendments, with early adoption permitted. The adoption of this standard did no t have a material impact on our consolidated financial statements. In March, 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures , which eliminates the accounting guidance for TDRs in ASC 310-40, Receivables - Troubled Debt Restructurings by Creditors . ASU 2022-02 also requires an issuer to disclose current-period gross writeoffs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost. The amendments in ASU 2022-02 are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. The amendments should be applied prospectively, with one possible exception. The adoption of this standard did no t have a material impact on our consolidated financial statements. In June 2022, the FASB issued ASU 2022-03 F air Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions . The update clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The update also clarifies that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. The update also requires certain additional disclosures for equity securities subject to contractual sale restrictions. The amendments in this update are effective for the Company beginning January 1, 2024 on a prospective basis. Early adoption is permitted for both interim and annual financial statements that have not yet been issued or made available for issuance. The Group is currently in the process of evaluating the impact of the new guidance on its consolidated financial statements. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280)- Improvements to Reportable Segment Disclosures . ASU No. 2023-07 requires an enhanced disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (CODM) and included within each reported measure of segment profit or loss, on an annual and interim basis. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Adoption of this guidance should be applied retrospectively to all prior periods presented. Early adoption is permitted. The Group is currently in the process of evaluating the impact of the new guidance on its consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740)- Improvements to Income Tax Disclosures . ASU No. 2023-09 requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional information on income taxes paid. The guidance is effective for annual periods beginning after December 15, 2024 on a prospective basis. Early adoption is permitted. The Group is currently in the process of evaluating the impact of the new guidance on its consolidated financial statements. |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Percentage of Ownership in Principal Subsidiaries, Consolidated VIEs and Subsidiaries of VIEs | As of December 31, 2023, the Company’s principal subsidiaries, the consolidated VIEs and subsidiaries of the consolidated VIEs are as follows: Date of Place of Percentage Principal Activities Subsidiaries Installment (HK) Investment Limited (“Installment HK”) December 9, 2013 Hong Kong, PRC 100 % Investment holding Beijing Shijitong Technology Co., Ltd. (“Beijing Shijitong”) July 1, 2014 Beijing, PRC 100 % Technical support and consulting services Shenzhen Lexin Software Technology Co., Ltd. (“Shenzhen Lexin Software”) March 1, 2017 Shenzhen, PRC 100 % Software development Shenzhen Lexin Financing Guarantee Co., Ltd. (“Shenzhen Lexin Financing Guarantee”) September 14, 2017 Shenzhen, PRC 100 % Financing guarantee services Beihai Dulin Information Technology Co. Ltd (“Beihai Dulin”) November 28, 2022 Beihai, PRC 100 % Financial technology services The VIEs Beijing Lejiaxin Network Technology Co., Ltd. (“Beijing Lejiaxin”) October 25, 2013 Beijing, PRC 100 % Investment holding Shenzhen Xinjie Investment Co., Ltd. (“Shenzhen Xinjie”) December 22, 2015 Shenzhen, PRC 100 % Investment holding Shenzhen Qianhai Dingsheng Data Technology Co., Ltd. (“Qianhai Dingsheng”) January 13, 2016 Shenzhen, PRC 100 % Financial technology services Shenzhen Mengtian Technology Co., Ltd. (“Mengtian August 9, 2016 Shenzhen, PRC 100 % Software development Beihai Super Egg E-Commerce Co., Ltd. (“Beihai Super Egg”) May 31, 2018 Beihai, PRC 100 % Investment holding Subsidiaries of the VIEs Shenzhen Fenqile Network Technology Co., Ltd. (“Shenzhen Fenqile”) August 15, 2013 Shenzhen, PRC 100 % Online direct sales and online consumer finance Shenzhen Beizhipiji Technology Co., Ltd. ("Beizhipiji") June 26, 2014 Shenzhen, PRC 100 % Online investment platform Ji’an Fenqile Network Microcredit Co., Ltd. (“Ji’an Microcredit”) December 2, 2016 Ji’an, PRC 100 % Online consumer credit Shenzhen Fenqile Trading Co., Ltd. (“Shenzhen Fenqile Trading”) December 30, 2016 Shenzhen, PRC 100 % Online direct sales Shenzhen Dingsheng Computer Technology Co., Ltd. (“Dingsheng Computer”) March 23, 2017 Shenzhen, PRC 100 % Financial technology services Beihai Aurora Technology Co., Ltd. (“Beihai Aurora”) June 19, 2018 Beihai, PRC 100 % Financial technology services Beihai Lexin Information Technology Co., Ltd. (“Beihai Lexin Information”) June 11, 2018 Beihai, PRC 100 % Financial technology services Ganjiang New Area Mengtian Financing Guarantee Co., Ltd. (“Ganjiang Mengtian”) October 24, 2019 Ganjiang, PRC 100 % Financing guarantee services |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Schedule of the Assets, Liabilities, Results of Operations and Changes in Cash and Cash Equivalents and Restricted Cash of the VIEs and their Subsidiaries | As of December 31, 2022 2023 (RMB in thousands) Consolidating Schedule of Financial Position ASSETS Cash and cash equivalents 1,273,823 1,834,738 Restricted cash 718,675 916,015 Restricted term deposit and short-term investments 119,678 149,678 Financing receivables, net 6,756,760 3,990,083 Amounts due from Group companies (1) 106,977 201,390 Deposits to insurance companies and guarantee companies 2,214,771 2,605,464 Contract assets and receivables, net 4,151,340 5,586,257 Property, equipment and software, net 213,610 351,688 Land use rights, net and right of use assets 1,029,258 955,250 Long‑term investments 331,560 239,244 Other assets 2,919,516 3,119,999 TOTAL ASSETS 19,835,968 19,949,806 LIABILITIES Amounts due to Group companies (1) 6,285,111 6,546,526 Borrowings 1,288,476 842,158 Funding debts 5,719,358 3,938,996 Deferred guarantee income 781,633 1,215,490 Contingent guarantee liabilities 770,495 1,232,002 Other liabilities 2,699,461 3,641,027 TOTAL LIABILITIES 17,544,534 17,416,199 Total equity attributable to owners of the company 2,291,434 2,533,607 TOTAL SHAREHOLDERS’ EQUITY 2,291,434 2,533,607 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 19,835,968 19,949,806 For the Year Ended December 31, 2021 2022 2023 (RMB in thousands) Condensed Consolidating Schedule of Results of Operations Operating revenue: Third-party revenues 11,091,978 9,297,734 11,264,532 Inter-group revenues (2) 11,429 329 186,968 Total Operating revenue 11,103,407 9,298,063 11,451,500 Operating cost: Third-party costs ( 5,520,994 ) ( 6,484,657 ) ( 7,354,363 ) Inter-group costs (2) ( 1,636 ) ( 36 ) ( 27 ) Total operating cost ( 5,522,630 ) ( 6,484,693 ) ( 7,354,390 ) Gross profit 5,580,777 2,813,370 4,097,110 Operating expense: Third-party expenses ( 1,689,151 ) ( 1,764,902 ) ( 1,766,810 ) Inter-group expenses (2) ( 3,047,627 ) ( 1,629,811 ) ( 1,544,632 ) Total operating expenses ( 4,736,778 ) ( 3,394,713 ) ( 3,311,442 ) Others ( 369,200 ) 617,568 ( 448,109 ) Income before income tax 474,799 36,225 337,559 Income tax expenses ( 142,201 ) ( 13,950 ) ( 100,292 ) Net income 332,598 22,275 237,267 Less: net income attributable to non-controlling interests 193 6,177 — Net income attributable to ordinary shareholders of the Company 332,405 16,098 237,267 For the Year Ended December 31, 2021 2022 2023 (RMB in thousands) Net cash (used in)/provided by operating activities ( 298,268 ) 537,019 1,412,861 Net cash provided by transactions with external parties 3,839,254 2,063,827 2,892,415 Net cash used in transactions with inter-group entities for technical service charges and others (3) ( 4,137,522 ) ( 1,526,808 ) ( 1,479,554 ) Net cash provided by/(used in) investing activities 622,696 ( 2,062,379 ) 1,337,528 Net cash provided by/(used in) transactions with external parties 472,228 ( 2,586,207 ) 1,387,854 Net cash (used in)/provided by funds to Group companies (4) 150,468 ( 61,831 ) ( 50,326 ) Transfer of Shenzhen Lexin Financing Guarantee Co., Ltd from VIE to subsidiary (5) — 585,659 — Net cash provided/(used in) by financing activities 656,269 ( 37,777 ) ( 1,992,134 ) Net cash (used in)/provided by transactions with external parties ( 1,775,038 ) 1,469,679 ( 2,242,139 ) Net cash provided by/(used in) funds from Group companies (6) 2,431,307 ( 1,507,456 ) 250,005 Net increase/(decrease) in cash, cash equivalents and restricted cash 980,697 ( 1,563,137 ) 758,255 Cash, cash equivalents and restricted cash at beginning of the year 2,574,938 3,555,635 1,992,498 Cash, cash equivalents and restricted cash at end of the year 3,555,635 1,992,498 2,750,753 |
Schedule of Obligations Associated with Deferred Guarantee Income | The following table sets forth the activities of the Group’s obligations associated with the deferred guarantee income for the years ended December 31, 2021, 2022 and 2023: For the Year Ended For the Year Ended For the Year Ended (RMB in thousands) Opening balances 694,582 419,843 894,858 Fair value of deferred guarantee income at inception of new loans 499,805 1,928,195 3,162,811 Release of deferred guarantee income ( 774,544 ) ( 1,453,180 ) ( 2,519,284 ) Ending balances 419,843 894,858 1,538,385 |
Schedule of Obligations Associated with Contingent Guarantee Liabilities | The following table sets forth the activities of the Group’s obligations associated with the contingent guarantee liabilities for the year ended December 31, 2021, 2022 and 2023: For the Year Ended For the Year Ended For the Year Ended (RMB in thousands) Opening balances 1,738,787 928,840 882,107 Provision for contingent liabilities of guarantee 622,438 1,468,265 3,203,123 Net cash payout ( 1,432,385 ) ( 1,514,998 ) ( 2,276,690 ) Ending balances 928,840 882,107 1,808,540 |
Schedule of Operating Revenue Within Scope of ASC 606 Disaggregated by Revenue Sources | The following table presents the Group’s operating revenue within the scope of ASC 606 disaggregated by revenue sources: For the Year Ended December 31, 2021 2022 2023 (RMB in thousands) Installment e-commerce platform service income Installment e-commerce platform service income 1,661,156 1,997,838 1,585,625 Other services 564 58,227 164,884 Total installment e-commerce platform service income 1,661,720 2,056,065 1,750,509 Credit facilitation service income Loan facilitation and matching servicing fees-credit oriented 3,120,892 1,404,507 4,178,477 Post-origination servicing fees-credit oriented 1,327,452 1,082,020 823,404 Total credit facilitation service income 4,448,344 2,486,527 5,001,881 Tech-empowerment service income Loan facilitation and matching servicing fees- performance based 1,727,794 935,234 702,774 Post-origination servicing fees- performance based 561,658 427,404 280,574 Loan facilitation and servicing fees- volume based 279,902 252,460 349,927 Membership services 107,901 82,256 133,211 Other services 85,740 148,589 173,967 Total tech-empowerment service income 2,762,995 1,845,943 1,640,453 Total revenue from loan facilitation and servicing fees 7,017,698 4,101,625 6,335,156 Total operating revenue within the scope of ASC 606 8,873,059 6,388,535 8,392,843 |
Schedule of Operating Revenue Within Scope of ASC 606 Disaggregated by Revenue Timing | The following table presents the Group’s operating revenue within the scope of ASC 606 disaggregated by timing of revenue recognition: For the Year Ended December 31, 2021 2022 2023 (RMB in thousands) Revenues recognized at point-in-time 6,876,048 4,796,855 7,155,654 Revenues recognized over time 1,997,011 1,591,680 1,237,189 Total operating revenue within scope of ASC 606 8,873,059 6,388,535 8,392,843 |
Schedule of Estimated Useful Lives | Category Estimated Useful Lives Computers and equipment 3 years Furniture and fixtures 4 ‑ 5 years Leasehold improvement Over the shorter of the expected life of leasehold improvement or the lease term Software 3 ‑ 10 years |
Schedule of Future Minimum Lease Payments under Non Cancelable Operating Leases - ASC 842 | Future minimum lease payments under non‑cancelable operating leases agreements are as follows: For the Year ended December 31, 2023 RMB in thousands 2024 41,627 2025 36,285 2026 21,263 Total future lease payments 99,175 Impact of discounting remaining lease payments ( 7,531 ) Total lease liabilities 91,644 - Short-term portion 40,942 - Long-term portion 50,702 |
Schedule of Supplemental Cash Flow Information Related to Operating Leases | For the Year ended December 31, 2023 RMB in thousands Cash payments for operating leases 48,943 Right-of-use assets obtained in exchange for operating lease liabilities 29,915 |
Inventory Supplier | Supplier Concentration Risk | |
Schedule of Concentration Risk | As of December 31, 2022 2023 Inventory supplier A — 13.9 % Inventory supplier B 28.9 % 12.6 % Inventory supplier C 23.4 % * Inventory supplier D 17.5 % * Inventory supplier E 11.6 % * * Less than 10%. |
Long Term Funding Debt | Lender Concentration Risk | |
Schedule of Concentration Risk | As of December 31, 2022 2023 Institutional Funding Partner A 16.9 % 33.9 % Institutional Funding Partner B 16.5 % 36.3 % |
Deposits to Insurance and Guarantee Companies | Deposits Concentration Risk | |
Schedule of Concentration Risk | As of December 31, 2022 2023 Guarantee Company A 23.4 % 17.1 % Guarantee Company B * 11.3 % Guarantee Company C * 11.2 % * Less than 10%. |
Financing Receivables, Net (Ta
Financing Receivables, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Schedule of Financing Receivables, Net | Financing receivables, net as of December 31, 2022 and 2023 consisted of the followings: As of December 31, 2022 2023 (RMB in thousands) Short-term: Short-term financing receivables 6,478,949 3,933,553 Accrued interest receivable 103,158 69,041 Allowance for credit losses ( 184,187 ) ( 58,594 ) Total short-term financing receivables, net 6,397,920 3,944,000 Long-term: Long-term financing receivables 473,545 203,601 Allowance for credit losses ( 13,220 ) ( 3,087 ) Total long-term financing receivables, net 460,325 200,514 |
Summary of Balances of Financing Receivables by Due Date | The following table summarizes the balances of financing receivables by due date as of December 31, 2022 and 2023: As of December 31, 2022 2023 (RMB in thousands) Due in months 0 - 12 6,478,949 3,933,553 13 - 24 370,652 180,719 25 - 36 59,217 46 Thereafter 43,676 22,836 Total financing receivables (excluding accrued interest receivable) 6,952,494 4,137,154 |
Summary of Activities in Allowance for Credit Losses | The activities in the allowance for credit losses of financing receivables for the years ended December 31, 2021, 2022 and 2023, respectively, consisted of the following: For the year ended 2021 2022 2023 (RMB in thousands) Beginning balances ( 529,162 ) ( 328,231 ) ( 197,407 ) Provision for credit losses ( 401,104 ) ( 437,477 ) ( 627,061 ) Charge-offs 912,260 791,046 939,992 Recoveries from prior charge-offs ( 310,225 ) ( 222,745 ) ( 177,204 ) Ending balances ( 328,231 ) ( 197,407 ) ( 61,681 ) |
Summary of Aging Analysis of Past Due Financing Receivables | Aging analysis of past due financing receivables as of December 31, 2022 and 2023 are as follows: RMB in thousands 1 - 29 30 - 59 60 - 89 90 - 179 180 Days Total Current Total December 31, 2022 151,784 98,289 81,652 209,738 — 541,463 6,411,031 6,952,494 December 31, 2023 94,448 76,449 65,816 183,054 — 419,767 3,717,387 4,137,154 |
Summary of Amortized Cost within Each Credit Quality Indicator by Year of Origination for Five Origination Years and Beyond | The following table provides information on delinquency, which is the primary credit quality indicator for financing receivables. The amortized cost of loans was presented by year of origination for five origination years and beyond, as of December 31, 2023: Loans originated in RMB in thousands 1 - 29 30 - 59 60 - 89 90 - 179 180 Days Total Current Total 2019 and before — — — — — — — — 2020 2 5 7 36 — 50 8 58 2021 393 269 272 1,255 — 2,189 10,655 12,844 2022 9,838 8,031 8,450 34,667 — 60,986 251,940 312,926 2023 84,215 68,144 57,087 147,096 — 356,542 3,454,784 3,811,326 Total 94,448 76,449 65,816 183,054 — 419,767 3,717,387 4,137,154 |
Contract Assets and Receivabl_2
Contract Assets and Receivables, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Schedule of Contract Assets and Receivables and Guarantee Receivables | The following table provides information about the Group’s contract assets and receivables and guarantee receivables with its customers: As of December 31, 2022 2023 (RMB in thousands) Short-term: Contract assets 2,507,733 4,193,755 Allowance for credit losses of contract assets ( 97,712 ) ( 278,202 ) Contract assets, net 2,410,021 3,915,553 Service fees receivable 631,641 616,617 Allowance for credit losses of service fees receivable ( 68,292 ) ( 56,400 ) Service fees receivable, net 563,349 560,217 Guarantee receivables 971,651 1,738,745 Allowance for credit losses of guarantee receivables ( 50,846 ) ( 101,534 ) Guarantee receivables, net 920,805 1,637,211 Long-term: Contract assets 422,307 404,937 Allowance for credit losses of contract assets ( 40,248 ) ( 46,721 ) Contract assets, net 382,059 358,216 Guarantee receivables 235,486 256,719 Allowance for credit losses of guarantee receivables ( 12,494 ) ( 15,117 ) Guarantee receivables, net 222,992 241,602 |
Schedule of Activities in the Allowance for Credit Losses | The activities in the allowance for credit losses of contract assets and receivables for the years ended December 31, 2021, 2022 and 2023, respectively, consisted of the following: For the Year Ended December 31, 2021 2022 2023 (RMB in thousands) Beginning balances ( 160,342 ) ( 247,301 ) ( 269,592 ) Provisions ( 531,237 ) ( 461,774 ) ( 622,564 ) Charge-offs 523,613 561,988 438,002 Recoveries from prior charge-offs ( 79,335 ) ( 122,505 ) ( 43,820 ) Ending balances ( 247,301 ) ( 269,592 ) ( 497,974 ) |
Prepayments and Other Current_2
Prepayments and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Schedule of Prepayments and Other Current Assets | As of December 31, 2022 2023 (RMB in thousands) Receivables from third-party payment service providers (i) 377,928 553,844 Deposits to Institutional Funding Partners (ii) 212,199 237,823 Prepayment to inventory suppliers 55,958 67,222 Prepaid input value-added tax 37,089 41,214 Rental deposits and other current assets 51,107 108,183 Loans at fair value(iii) 352,672 420,483 Total prepayments and other current assets 1,086,952 1,428,769 (i) The Group opened accounts with third‑party payment service providers mainly to facilitate collection and transfer of the funds, interest and service fees from/to the Borrowers and Institutional Funding Partners. The balance of receivables from third‑party payment service providers represents amounts temporarily held in these accounts. (ii) The balances represent deposits made to the Institutional Funding Partners to directly satisfy the principal and interest payment obligations in case of Borrowers’ defaults. (iii) The Group elected the fair value option for the loans acquired or purchased from the relevant funding partners. As described in Note 2(j ), the Group uses significant unobservable inputs to measure the fair value of these loans. |
Property, Equipment and Softw_2
Property, Equipment and Software, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Equipment and Software, Net | As of December 31, 2022 2023 (RMB in thousands) Computers and equipment 204,314 270,236 Furniture and fixtures 19,311 17,967 Leasehold improvement 66,618 69,235 Software 93,309 102,129 Construction in progress 149,777 295,283 Total property, equipment and software 533,329 754,850 Accumulated depreciation and amortization ( 248,736 ) ( 308,210 ) Total property, equipment and software, net 284,593 446,640 |
Land Use Rights, Net (Tables)
Land Use Rights, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Land Use Rights, Net | 2022 2023 (RMB in thousands) Gross carrying amount 1,032,000 1,032,000 Accumulated amortization ( 100,333 ) ( 134,733 ) Net carrying amount 931,667 897,267 |
Schedule of Amortization Expenses For Future Periods | As of December 31, 2023, amortization expenses for future periods are estimated to be as follows: 2023 (RMB in thousands) 2024 34,400 2025 34,400 2026 34,400 2027 34,400 2028 34,400 Thereafter 725,267 Total expected amortization expenses 897,267 |
Long-Term Investments (Tables)
Long-Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Long-Term Investments [Abstract] | |
Summary of Movement of Carrying Value of Equity Investments Accounted Using Measurement Alternative | The following table summarizes the movement of the carrying value of the Group’s equity investments accounted for using the measurement alternative for the year ended De cember 31, 2021, 2022 and 2023: As of December 31, 2021 2022 2023 (RMB in thousands) Long-term investment at the beginning of the year 264,151 212,700 212,700 Addition 16,700 — — Disposal ( 67,475 ) — — Impairment — — ( 92,316 ) Foreign currency translation adjustments ( 676 ) — — Long-term investment at the end of the year 212,700 212,700 120,384 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Schedule of Fair Value of Hierarchy For Assets and Liabilities Measured on Recurring Basis | The following table presents the fair value hierarchy for the Group’s assets and liabilities that are measured and recorded at fair value on a recurring basis as of December 31, 2022 and 2023: December 31, 2022 Level 1 Level 2 Level 3 Balances at (RMB in thousands) Assets Restricted term deposit — 1,061,858 — 1,061,858 Short-term investments 270,000 270,000 Loans at fair value — — 352,672 352,672 Total assets — 1,331,858 352,672 1,684,530 Liabilities Guarantee derivative liabilities — — 861,304 861,304 Total liabilities — — 861,304 861,304 December 31, 2023 Level 1 Level 2 Level 3 Balances at (RMB in thousands) Assets Restricted term deposit — 105,182 — 105,182 Short-term investments — 200,000 — 200,000 Loans at fair value — — 420,483 420,483 Total assets — 305,182 420,483 725,665 Liabilities Guarantee derivative liabilities 1,357,601 1,357,601 Total liabilities — — 1,357,601 1,357,601 |
Summary of Activities Related to Fair Value of the Guarantee Derivatives | The following table summarizes the activities related to fair value of the guarantee derivatives: For the Year Ended December 31, 2021 2022 2023 (RMB in thousands) Fair value of guarantee derivative liabilities at beginning of the year (Level 3) 252,613 1,473,853 861,304 Cash collection 3,107,316 4,436,911 5,512,818 Net cash payout ( 2,344,922 ) ( 4,435,587 ) ( 5,284,198 ) Change in fair value (i) 458,846 ( 613,873 ) 267,677 Fair value of guarantee derivative liabilities at end of the year (Level 3) 1,473,853 861,304 1,357,601 (i) Recognized as “Change in fair value of financial guarantee derivatives, net” on the Consolidated Statements of Operations. |
Summary of Activities Related to Fair Value of the Loans Acquired or Purchased | The following table summarizes the activities related to fair value of the loans acquired or purchased: For the Year Ended December 31, 2022 2023 (RMB in thousands, except for percentages) Fair value of loans acquired/purchased at beginning of the year (Level 3) 252,970 352,672 Fair value at inception of loans acquired/purchased 4,296,611 5,154,833 Cash collection ( 4,305,417 ) ( 5,120,379 ) Change in fair value (i) 108,508 61,309 Disposal — ( 27,952 ) Fair value of loans acquired/purchased at end of the year (Level 3) 352,672 420,483 (i) Recognized as “Change in fair value of loans at fair value” on the Consolidated Statements of Operations. |
Schedule of Effect Adverse Change in Derivative Assets and Liabilities | The following table summarizes the effect adverse changes in estimate would have on the fair value of the guarantee derivative assets and liabilities as of December 31, 2022 and 2023, respectively, given hypothetical changes in the cumulative loss rates: As of December 31, 2022 2023 (RMB in thousands, except for percentages) Weighted average cumulative loss rates(i) 7.8 % 7.4 % Increase/(decrease) in fair value of guarantee derivative liabilities if the cumulative loss rates: Increase by 10% (ii) 443,526 544,318 Decrease by 10% (ii) ( 443,526 ) ( 544,318 ) (i) Expressed as a percentage of the original principal balance of the loans. (ii) Expressed as a percentage of the original cumulative loss rates. |
Summary of Effect Adverse Changes in Estimated Fair Value of the Loans | The following table summarizes the effect adverse changes in estimate would have on the fair value of the loans at fair value as of December 31, 2022 and 2023, given hypothetical changes in the expected future recovery rates: For the Year Ended December 31, 2022 2023 (RMB in thousands, except for percentages) Weighted average expected future recovery rates(i) 4.8 % 4.2 % Increase/(decrease) in fair value of loans at fair value if the expected future recovery rates: Increase by 10% (ii) 35,267 42,048 Decrease by 10% (ii) ( 35,267 ) ( 42,048 ) (i) Expressed as a percentage of the principal balance of the loans acquired/purchased. (ii) Expressed as a percentage of the original expected future recovery rates. |
Summary of Effect Adverse Changes in Estimated Fair Value of Investment | The following table summarizes the effect adverse changes in estimate would have on the fair value of the investment as of December 31, 2023, given hypothetical changes in the value to net asset multiple: For the Year Ended December 31, 2023 (RMB in thousands, except for percentages) Value to net asset multiple 0.65 Increase/(decrease) in fair value of the investment: Increase by 10% 10,388 Decrease by 10% ( 10,388 ) |
Recurring Basis | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Summary of Quantitative Information About The Significant Unobservable Inputs | The following table presents quantitative information about the significant unobservable inputs used for the Group’s Level 3 fair value measurement as of December 31, 2022 and 2023: Range of Inputs December 31, 2022 December 31, 2023 Financial Unobservable Minimum Maximum Weighted- Minimum Maximum Weighted- Guarantee derivatives Cumulative loss rates (i) 1.3 % 12.1 % 7.8 % 1.4 % 11.8 % 7.4 % Margins on cost of guarantee services 10.0 % 10.0 % 10.0 % 10.0 % 10.0 % 10.0 % Loans at fair value Expected future recovery rates (ii) 4.8 % 4.8 % 4.8 % 4.2 % 4.2 % 4.2 % (i) Expressed as a percentage of the original principal balance of the loans. (ii) Expressed as a percentage of the principal balance of the loans acquired/purchased. |
Non-recurring Basis | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Summary of Quantitative Information About The Significant Unobservable Inputs | The following table presents quantitative information about the significant unobservable inputs used for the Group’s Level 3 fair value measurement as of December 31, 2023: Range of Inputs December 31, 2023 Unobservable Input Minimum Maximum Weighted-Average Value to net asset multiple 0.34 0.74 0.65 |
Funding Debts (Tables)
Funding Debts (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Summary of the Group's Outstanding Funding Debts | The following table summarizes the Group’s outstanding funding debts as of December 31, 2022 and 2023, respectively: As of December 31, 2022 2023 (RMB in thousands) Short-term: Liabilities to funding partners 4,385,253 3,483,196 Total short-term funding debts 4,385,253 3,483,196 Long-term: Liabilities to funding partners 1,334,105 455,800 Total long-term funding debts 1,334,105 455,800 |
Accruals and Other Current Li_2
Accruals and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of accruals and other current liabilities | As of December 31, 2022 2023 (RMB in thousands) Guarantee derivative liabilities at fair value (Note 9) 861,304 1,357,601 Funds payable to Institutional Funding Partners (i) 382,545 1,071,301 Tax payable 746,563 869,529 Accrued payroll and welfare 400,886 392,176 Accrued risk management fees 186,331 220,279 Accrued marketing expenses 130,937 150,927 Other accrued expenses 65,557 83,381 Amount due to third party sellers 102,613 80,099 Other payables 24,916 67,348 Accrued professional fees and outsourcing fees 61,604 59,668 Short-term leasing liabilities 50,747 40,942 Deferred service fees 31,112 36,614 Accrued interest payable 12,354 4,389 Total accruals and other current liabilities 3,057,469 4,434,254 (i) The payable balances mainly include repayment received from Borrowers but not yet transferred to accounts of Institutional Funding Partners due to the settlement time lag. |
Related Party Balances and Tr_2
Related Party Balances and Transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Related Parties and Their Relationships | The table below sets three major related parties of the Group and their relationships with the Group: Entity or individual name Relationship with the Group Ji'an Aoxinlian Information Consulting Service Co., Ltd.(“Ji'an Aoxinlian”) Ji’an Aoxinlian is controlled by the immediate family member of the Group's senior management. Shenzhen Aileyou Information Technology Co., Ltd.(Aileyou)* Aileyou is an equity investment of the Group. L.P. Technology Holdings Limited (“L.P.”) L.P. is an equity investment of the Group. *In June 2022, the Company has fully disposed all its shareholding in Aileyou, and which was no longer a related party of the Company after the disposal. |
Schedule of Significant Related Party Transactions | (i) Provision of services to related parties For the Year Ended December 31, 2021 2022 2023 (RMB in thousands) Provision of services to Aileyou 7,731 631 - Total 7,731 631 - (ii) Purchase of goods and services from related parties For the Year Ended December 31, 2021 2022 2023 (RMB in thousands) Purchases of goods and services from Ji'an Aoxinlian 20,493 16,177 14,753 Total 20,493 16,177 14,753 |
Schedule of Amounts Due from Related Parties | (i) Amounts due from related parties As of December 31, 2022 2023 (RMB in thousands) Due from L.P. by the Group* 6,602 6,989 Total 6,602 6,989 *The amount represents the funds provided by the Group to L.P., primarily including loan of US$ 940,000 . |
Schedule of Amounts Due to Related Parties | (ii) Amounts due to related parties As of December 31, 2022 2023 (RMB in thousands) Due to Ji'an Aoxinlian by the Group 4,669 2,958 Total 4,669 2,958 |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Group's (loss)/income Before Income Tax Expense | The components of the Group’s income before income tax expense for the years ended December 31, 2021, 2022 and 2023 are as follows: For the Year Ended December 31, 2021 2022 2023 (RMB in thousands, except for percentages) Income before income tax expense 2,769,534 1,028,569 1,326,786 Loss from non-China operations ( 30,047 ) ( 94,806 ) ( 86,910 ) Income from China operations 2,799,581 1,123,375 1,413,696 Income tax expense applicable to China operations 428,267 202,466 239,365 Income tax expense applicable to non-China operations 7,151 174 123 PRC Withholding Tax on Dividends — — 21,353 Total income tax expense 435,418 202,640 260,841 Effective tax rate for China operations 15.3 % 18.0 % 16.9 % Effective tax rate for the Group 15.7 % 19.7 % 19.7 % |
Schedule of Current and Deferred Portion of Income Tax Expense of Company's China Subsidiaries, VIEs, and Subsidiaries of VIEs | The following table sets forth current and deferred portion of income tax expense of the Company’s China subsidiaries, the VIEs, and subsidiaries of the VIEs: For the Year Ended December 31, 2021 2022 2023 (RMB in thousands) Current income tax expense 831,675 169,299 328,391 Deferred income tax expense ( 396,257 ) 33,341 ( 67,550 ) Income tax expense 435,418 202,640 260,841 |
Schedule of Reconciliation Between Statutory EIT Rate and Effective Tax Rate for Group | The following table sets forth reconciliation between the statutory enterprise income tax (“EIT”) rate and the effective tax rate for the Group: For the Year Ended December 31, 2021 2022 2023 Statutory EIT rate 25.0 % 25.0 % 25.0 % Effect of tax holidays ( 10.8 )% ( 6.8 )% ( 6.5 )% Effect of non-deductible expenses 3.0 % 4.7 % 2.5 % Effect of research and development tax credit ( 2.1 )% ( 6.1 )% ( 4.7 )% Changes in valuation allowance 0.1 % 0.6 % 4.9 % Tax rate difference from statutory rate in other jurisdictions and others 0.5 % 2.3 % ( 3.1 )% Effect of withholding income tax 0.0 % 0.0 % 1.6 % Effective tax rates for the Group 15.7 % 19.7 % 19.7 % |
Schedule of Effect of Tax Holiday Related to Group | The following table sets forth the effect of tax holiday related to the Group: For the Year Ended December 31, 2021 2022 2023 (In thousands, except per share amount) Tax holiday effect 299,578 69,827 86,655 Basic net income per share effect 0.81 0.20 0.26 Diluted net income per share effect 0.72 0.18 0.24 |
Schedule of Components of Deferred Tax Assets and Deferred Tax Liabilities | Deferred income tax expense reflects the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The components of the deferred tax assets are as follows: For the Year Ended December 31, 2022 2023 Deferred tax assets - Provision for credit losses 948,177 1,225,097 - Deferred guarantee income and other accrued expenses 807,224 869,708 - Contingent guarantee liabilities 220,527 452,135 - Net operating loss carryforwards 43,237 105,653 - Advertising expenses in excess of deduction limit 5,683 7,248 -Investment related loss - 75,440 Less: valuation allowance ( 13,038 ) ( 78,471 ) Total deferred tax assets 2,011,810 2,656,810 Net deferred tax assets 1,141,761 1,232,092 The components of the deferred tax liabilities are as follows: For the Year Ended December 31, 2022 2023 Deferred tax liabilities -Contract assets and service fees receivable 636,659 1,009,002 -Guarantee receivables 285,949 469,703 -Withholding income tax - 21,353 Total deferred tax liabilities 922,608 1,500,058 Net deferred tax liabilities 52,559 75,340 |
Schedule of Movement of Valuation Allowance | For the Year Ended December 31, 2021 2022 2023 Balance at beginning of the year ( 4,429 ) ( 6,756 ) ( 13,038 ) Additions ( 2,659 ) ( 6,783 ) ( 66,967 ) Reversals 332 501 1,534 Balance at end of the year ( 6,756 ) ( 13,038 ) ( 78,471 ) |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Income Per Share | The following table sets forth the computation of basic and diluted net income per share for the periods indicated: For the Year Ended December 31, 2021 2022 2023 (RMB in thousands, except for share and per Basic net income per share calculation: Numerator: Net income attributable to ordinary shareholders 2,333,923 819,752 1,065,945 Denominator: Weighted average number of ordinary shares outstanding—basic 368,460,867 348,048,245 328,523,952 Net income per share attributable to ordinary shareholders—basic 6.33 2.36 3.24 Diluted net income per share calculation: Numerator: Net income attributable to ordinary shareholders 2,333,923 819,752 1,065,945 Interest expense associated with convertible notes reversed 44,865 46,903 73,807 Net income attributable to ordinary shareholders for calculating diluted net income per share 2,378,788 866,655 1,139,752 Denominator: Weighted average number of ordinary shares outstanding—basic 368,460,867 348,048,245 328,523,952 Ordinary shares issuable upon the exercise of outstanding stock options using the treasury stock method 3,381,510 1,792,478 2,838,399 Ordinary shares issuable upon the vesting of outstanding restricted share units using the treasury stock method 293,196 58,955 220,666 Ordinary shares issuable upon the conversion of convertible notes using the if—converted method 42,857,143 42,857,143 28,237,965 Weighted average number of ordinary shares outstanding—diluted 414,992,716 392,756,821 359,820,982 Net income per share attributable to ordinary shareholders—diluted 5.73 2.21 3.17 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation Expenses | Share‑based compensation was recognized in operating cost and expenses for the years ended December 31, 2021, 2022 and 2023 as follows: For the Year Ended December 31, 2021 2022 2023 (RMB in thousands) Processing and servicing cost 9,968 5,179 246 Sales and marketing expenses 30,508 23,142 17,454 Research and development expenses 39,413 30,386 23,547 General and administrative expenses 107,995 97,613 76,605 Total share‑based compensation expenses 187,884 156,320 117,852 |
Summary of Number of Shares Available for Issuance | The following table sets forth a summary of the number of shares available for issuance: Shares Available (In thousands) December 31, 2020 11,527 Additions 3,641 Granted ( 13,736 ) Cancelled/forfeited 5,201 December 31, 2021 6,633 Additions 3,677 Granted ( 9,219 ) Cancelled/forfeited 6,249 December 31, 2022 7,340 Additions 3,698 Granted ( 23,570 ) Cancelled/forfeited 55,143 December 31, 2023 42,611 |
Schedule of Activities for Stock Options | The following table sets forth the summary of activities for stock options granted to employees, directors and non-employee directors: Options Weighted Weighted Aggregate (In thousands) US$ (In years) (RMB in December 31, 2020 13,660 1.7569 7.87 189,072 Granted* 13,489 0.5000 — — Exercised ( 2,426 ) 0.4529 — — Cancelled/forfeited ( 4,594 ) 3.2215 — — December 31, 2021 20,129 0.7227 8.43 155,018 Granted* 8,639 0.5000 — — Exercised ( 890 ) 0.3817 — — Cancelled/forfeited ( 6,016 ) 0.6138 — — December 31, 2022 21,862 0.6894 7.89 69,878 Granted* 8,695 1.2697 — — Exercised ( 1,927 ) 0.4644 — — Cancelled/forfeited ( 10,773 ) 0.7456 — — December 31, 2023 17,857 0.8850 7.43 38,242 Vested and expected to vest as of December 31, 2023 17,258 0.8967 7.40 36,126 Exercisable as of December 31, 2023 8,717 0.6669 5.99 27,010 * No stock options were granted to non-employee directors for the years presented. The following table sets forth the summary of activities for stock options granted to non‑employees: Options Weighted Weighted Aggregate (In thousands) US$ (In years) (RMB in December 31, 2020 410 0.0001 6.58 8,962 Granted — — — — Exercised ( 160 ) 0.0001 — — Cancelled/forfeited — — — — December 31, 2021 250 0.0001 5.58 3,076 Granted — — — — Exercised — — — — Cancelled/forfeited — — — — December 31, 2022 250 0.0001 4.58 1,654 Granted — — — — Exercised — — — — Cancelled/forfeited — — — — December 31, 2023 250 0.0001 3.58 1,629 Vested and expected to vest as of December 31, 2023 250 0.0001 3.58 1,629 Exercisable as of December 31, 2023 250 0.0001 3.58 1,629 |
Schedule of Estimated Fair Value of Stock Option Granted | the estimated fair value of each stock option granted is estimated on the date of grant using the binomial option-pricing model with the following assumptions: For the Year Ended December 31, 2021 2022 2023 Expected volatility 46.68 %~ 47.79 % 47.26 %~ 47.52 % 45.96 %~ 46.68 % Risk-free interest rate (per annum) 1.11 %~ 1.64 % 2.41 %~ 4.07 % 3.58 %~ 3.97 % Exercise multiples 1.5 ~ 2.5 1.5 1.5 Expected dividend yield — — — Expected term (in years) 10 10 10 Fair value of the underlying shares on the date of grants (US$) 1.91 ~ 6.31 0.32 ~ 1.48 0.42 ~ 1.66 |
Summary of Activities for Restricted Shares Units | The following table sets forth the summary of activities for restricted share units granted to employees, directors and non-employee directors: Shares Weighted (In thousands) US$ December 31, 2020 3,654 5.27 Granted* 247 3.21 Vested ( 1,226 ) 5.35 Cancelled/forfeited ( 607 ) 5.12 December 31, 2021 2,068 5.02 Granted* 580 0.93 Vested ( 1,037 ) 5.18 Cancelled/forfeited ( 233 ) 5.02 December 31, 2022 1,378 3.17 Granted* 14,875 1.00 Vested ( 880 ) 4.23 Cancelled/forfeited — — December 31, 2023 15,373 1.01 * No restricted share units were granted to non-employee directors for the years presented. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of the Expected Repayment Amount of the Debt Obligations | The expected repayment amount of the debt obligations are as follows: 1 – 12 13 – 24 25 – 36 more than 36 months Total (RMB in thousands) Funding debts obligations Liabilities to funding partners 3,483,196 455,800 — — 3,938,996 Interest payments (i) 178,248 8,781 — — 187,029 Total funding debts obligations 3,661,444 464,581 — — 4,126,025 Long–term borrowings — — — 524,270 524,270 Short–term borrowings 502,013 — — — 502,013 Interest payments (i) 36,843 — — 16,005 52,848 Total borrowings obligations 538,856 — — 540,275 1,079,131 Convertible notes 502,872 — — — 502,872 Interest payments (i) 10,388 — — — 10,388 Total convertible notes obligations 513,260 — — — 513,260 Commitment for construction 330,355 — — — 330,355 Commitment to purchase delinquent loans (ii) 771,500 — — — 771,500 Total purchase obligations 1,101,855 — — — 1,101,855 (i) Interest payments with variable interest rates are calculated using the interest rate as of December 31, 2023. (ii) With respect to the arrangements with certain Institutional Funding Partners, the Group is required to purchase the off-balance sheet loans funded by those Institutional Funding Partners when the loans become delinquent for a certain period of time consecutively or cumulatively. Commitment to purchase delinquent loans represents the Group’s noncancelable obligations to purchase those delinquent loans which is yet to be sold by those Institutional Funding Partners as of December 31, 2023. |
Parent Company Only Condensed_2
Parent Company Only Condensed Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheets | Condensed Balance Sheets (In thousands, except for share and per share data) As of December 31, 2022 2023 RMB RMB US$ Note 2(e) ASSETS Current assets Cash and cash equivalents 1,517 48,030 6,765 Amounts due from subsidiaries 335,934 343,091 48,323 Prepayments and other current assets 8,314 6,717 946 Total current assets 345,765 397,838 56,034 Non-current assets Investments in subsidiaries 10,741,234 12,058,899 1,698,460 Other assets 235 103 15 Total non-current assets 10,741,469 12,059,002 1,698,475 Total assets 11,087,234 12,456,840 1,754,509 LIABILITIES Current liabilities Amounts due to subsidiaries, the VIEs and the VIEs’ subsidiaries 357,042 2,230,015 314,091 Accrued interest payable 9,385 2,095 295 Accruals and other current liabilities 8,511 9,198 1,296 Convertible notes 2,063,545 505,450 71,191 Total current liabilities 2,438,483 2,746,758 386,873 Total liabilities 2,438,483 2,746,758 386,873 Commitments and contingencies (Note 21) SHAREHOLDERS’ EQUITY: Class A Ordinary Shares ($ 0.0001 par value per share; 1,889,352,801 shares authorized, 300,707,476 shares issued, 245,264,614 shares outstanding as of December 31, 2022; 1,889,352,801 shares authorized, 300,707,476 shares issued 256,918,184 shares outstanding as of December 31, 2023) 191 199 30 Class B Ordinary Shares ($ 0.0001 par value per share; 110,647,199 shares authorized, 80,189,163 shares issued and outstanding as of December 31, 2022; 110,647,199 shares authorized, 71,342,227 shares issued and outstanding as of December 31, 2023) 47 41 7 Treasury Stock ( 328,764 ) ( 328,764 ) ( 46,305 ) Additional paid-in capital 3,081,254 3,204,961 451,406 Accumulated other comprehensive income ( 20,842 ) ( 13,545 ) ( 1,908 ) Retained earnings 5,916,865 6,847,190 964,406 Total shareholders’ equity 8,648,751 9,710,082 1,367,636 Total liabilities and shareholders’ equity 11,087,234 12,456,840 1,754,509 |
Condensed Statements of Operations and Comprehensive Income | Condensed Statements of Operations and Comprehensive Income (In thousands) For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB US$ Note 2(e) Operating expenses: General and administrative expenses ( 19,109 ) ( 15,082 ) ( 15,749 ) ( 2,218 ) Total operating expenses ( 19,109 ) ( 15,082 ) ( 15,749 ) ( 2,218 ) Interest expense, net ( 44,865 ) ( 46,912 ) ( 73,750 ) ( 10,387 ) Share of income from subsidiaries 2,395,789 872,049 1,152,654 162,347 Investment loss ( 1,980 ) — — — Others, net 11,239 9,697 2,790 395 Income before income tax expense 2,341,074 819,752 1,065,945 150,137 Income tax expense ( 7,151 ) — — — Net income attributable to ordinary shareholders 2,333,923 819,752 1,065,945 150,137 Other comprehensive income: Foreign currency translation adjustments, net of tax 7,965 ( 32,115 ) 7,297 1,028 Total comprehensive income attributable to ordinary shareholders 2,341,888 787,637 1,073,242 151,165 |
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows (In thousands) For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB US$ Note 2(e) Net cash (used in)/provided by operating activities 14,196 ( 51,139 ) ( 58,579 ) ( 8,250 ) Cash flows from investing activities: Cash paid on long–term investments ( 18,868 ) — — — Cash paid on acquisition of subsidiaries, net of cash acquired — ( 676 ) — — Proceeds from disposal of long-term investments 65,537 — — — Cash paid on loans to third parties ( 22,317 ) — — — Net cash used in funds to Group companies ( 15,263 ) 36,817 ( 6,040 ) ( 851 ) Net cash provided by investing activities 9,089 36,141 ( 6,040 ) ( 851 ) Cash flows from financing activities: Repurchase of treasury stock — ( 326,942 ) — — Dividends to shareholders — — ( 135,620 ) ( 19,102 ) Repayments of convertible loans — — ( 1,634,678 ) ( 230,240 ) Borrowings under loan from Group companies — 323,446 1,872,954 263,800 Exercise of share–based awards 7,124 2,742 5,880 828 Net cash provided by financing activities 7,124 ( 754 ) 108,536 15,286 Effect of exchange rate changes on cash, cash equivalents and restricted cash ( 29,410 ) 15,424 2,596 366 Net increase/(decrease) in cash, cash equivalents and restricted cash 999 ( 328 ) 46,513 6,551 Cash, cash equivalents and restricted cash at beginning of the year 846 1,845 1,517 214 Cash, cash equivalents and restricted cash at end of the year 1,845 1,517 48,030 6,765 |
Organization and Principal Ac_3
Organization and Principal Activities - Schedule of Percentage of Ownership in Principal Subsidiaries, Consolidated VIEs and Subsidiaries of VIEs (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Installment HK | |
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs | |
Direct or Indirect Economic Interest in Subsidiary (as a percent) | 100% |
Beijing Shijitong | |
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs | |
Direct or Indirect Economic Interest in Subsidiary (as a percent) | 100% |
Shenzhen Lexin Software | |
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs | |
Direct or Indirect Economic Interest in Subsidiary (as a percent) | 100% |
Shenzhen Lexin Financing Guarantee | |
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs | |
Direct or Indirect Economic Interest in Subsidiary (as a percent) | 100% |
Beihai Dulin Information Technology Co. Ltd | |
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs | |
Direct or Indirect Economic Interest in Subsidiary (as a percent) | 100% |
Shenzhen Fenqile | |
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs | |
Direct or Indirect Economic Interest in Subsidiary (as a percent) | 100% |
Beizhipiji | |
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs | |
Direct or Indirect Economic Interest in Subsidiary (as a percent) | 100% |
Ji'an Microcredit | |
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs | |
Direct or Indirect Economic Interest in Subsidiary (as a percent) | 100% |
Shenzhen Fenqile Trading | |
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs | |
Direct or Indirect Economic Interest in Subsidiary (as a percent) | 100% |
Dingsheng Computer | |
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs | |
Direct or Indirect Economic Interest in Subsidiary (as a percent) | 100% |
Beihai Aurora | |
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs | |
Direct or Indirect Economic Interest in Subsidiary (as a percent) | 100% |
Beihai Lexin Information | |
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs | |
Direct or Indirect Economic Interest in Subsidiary (as a percent) | 100% |
Ganjiang New Area Mengtian Financing Guarantee | |
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs | |
Direct or Indirect Economic Interest in Subsidiary (as a percent) | 100% |
Beijing Lejiaxin | |
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs | |
Direct or Indirect Economic Interest in VIEs (as a percent) | 100% |
Shenzhen Xinjie | |
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs | |
Direct or Indirect Economic Interest in VIEs (as a percent) | 100% |
Qianhai Dingsheng | |
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs | |
Direct or Indirect Economic Interest in VIEs (as a percent) | 100% |
Mengtian Technology | |
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs | |
Direct or Indirect Economic Interest in VIEs (as a percent) | 100% |
Beihai Super Egg | |
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs | |
Direct or Indirect Economic Interest in VIEs (as a percent) | 100% |
Organization and Principal Ac_4
Organization and Principal Activities - Reorganization (Details) $ / shares in Units, ¥ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | 37 Months Ended | |||||||||
Dec. 26, 2017 $ / shares shares | Jun. 30, 2021 shares | Jun. 30, 2018 shares | Jan. 31, 2018 CNY (¥) shares | Jan. 31, 2018 USD ($) $ / shares shares | Nov. 30, 2013 $ / shares shares | Dec. 31, 2023 shares | Dec. 31, 2022 shares | Dec. 31, 2020 shares | Dec. 31, 2017 CNY (¥) | Dec. 31, 2017 USD ($) | Jun. 30, 2021 shares | |
Class Of Stock [Line Items] | ||||||||||||
Number of new shares issued (in shares) | shares | 125,000,000 | |||||||||||
Par value of shares | $ / shares | $ 0.0001 | |||||||||||
Proceeds from initial public offering, net of issuance costs | ¥ 95.1 | ¥ 651 | $ 100 | |||||||||
Class A Ordinary Shares | ||||||||||||
Class Of Stock [Line Items] | ||||||||||||
Number of new shares issued (in shares) | shares | 15,000,000 | 27,000,000 | 42,000,000 | 42,000,000 | 27,000,000 | 42,000,000 | ||||||
Par value of shares | $ / shares | $ 0.0001 | |||||||||||
IPO | ADS | ||||||||||||
Class Of Stock [Line Items] | ||||||||||||
Number of new shares issued (in shares) | shares | 12,000,000 | 1,800,000 | 1,800,000 | |||||||||
Price per share | $ / shares | $ 9 | |||||||||||
Proceeds from initial public offering, net of issuance costs | ¥ 95.1 | $ 14.7 | ||||||||||
Total gross capital raise | 105.2 | 16.2 | ||||||||||
Net capital raise | ¥ 10.1 | $ 1.5 | ||||||||||
IPO | Class A Ordinary Shares | ||||||||||||
Class Of Stock [Line Items] | ||||||||||||
Number of new shares issued (in shares) | shares | 24,000,000 | 3,600,000 | 3,600,000 | |||||||||
Par value of shares | $ / shares | $ 0.0001 |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) Item | Dec. 31, 2023 USD ($) Item | Dec. 31, 2022 CNY (¥) Item | Dec. 31, 2021 CNY (¥) Item | |
Significant Accounting Policies [Line Items] | ||||
Foreign currency translation adjustments, net of tax | ¥ 7,297,000 | $ 1,028 | ¥ (32,115,000) | ¥ 7,965,000 |
Number of major types of incentive coupons | Item | 2 | 2 | ||
Cash coupons and repayment coupon expense | ¥ 105,000,000 | 122,000,000 | 200,000,000 | |
Referral code incentives recorded as sales and marketing expenses | ¥ 3,000,000 | 11,900,000 | 27,300,000 | |
Remaining performance obligation is expected to be recognized as revenue (in years) | 3 years | 3 years | ||
Transaction price allocated to remaining performance obligations related to customer contracts | ¥ 339,000,000 | 312,000,000 | ||
Revenue recognized that was included in the contract liabilities balance | ¥ 31,100,000 | 26,700,000 | ||
Practical expedients, contract duration | true | true | ||
Practical expedients, amortization period | true | true | ||
Cash equivalents | ¥ 0 | 0 | ||
Straight line basis amortized over land use right period | 30 years | 30 years | ||
Additional loss recognized | ¥ 206,000,000 | |||
Allowanced for credit losses for other asset | 225,000,000 | 19,000,000 | ||
Prepayment investment amount | 223,000,000 | 17,000,000 | ||
Investment Related Prepayment For Equity Interest | 270,000,000 | |||
Advertising costs | ¥ 990,000,000 | 873,000,000 | 1,021,000,000 | |
Weighted average remaining lease term | 2 years 6 months | |||
Weighted average discount rate | 4.91% | |||
Operating lease cost | ¥ 45,300,000 | 53,200,000 | 59,700,000 | |
Short-term lease cost | ¥ 19,800,000 | 13,100,000 | 6,400,000 | |
Vesting period (in years) | 4 years | 4 years | ||
Minimum percentage of after-tax profit transferred by Chinese subsidiaries to general reserve fund (as a percent) | 10% | |||
Maximum percentage criteria for appropriation of after-tax profit of Chinese subsidiaries to general reserve fund (as a percent) | 50% | |||
Minimum percentage of after-tax profit transferred by VIEs to statutory surplus fund (as a percent) | 10% | |||
Maximum percentage criteria for in appropriation of after-tax profit by VIEs to certain statutory surplus funds (as a percent) | 50% | |||
Reserves allowed to transfer in terms of cash dividends, loans or advances, nor can they be distributed except under liquidation | ¥ 0 | |||
Appropriation to statutory reserves | ¥ 84,000,000 | ¥ 121,000,000 | ¥ 252,000,000 | |
Number of Individual Investor or Institutional Funding Partner that accounted for more than 10% of the Group's total funding cost | Item | 2 | 2 | 2 | |
Number of institutional funding partners that accounted for more than 10% of the Group's origination of off-balance sheet loans | Item | 0 | 0 | 0 | |
Number of guarantee company accounted for more than 10% of the Group's deposits to insurance companies and guarantee companies | Item | 3 | 3 | 1 | |
10% or More of Total Purchases, Number of Suppliers | ||||
Significant Accounting Policies [Line Items] | ||||
Number of inventory suppliers | Item | 1 | 1 | 0 | 2 |
10% or More of Accounts Payable, Number of Suppliers | ||||
Significant Accounting Policies [Line Items] | ||||
Number of inventory suppliers | Item | 2 | 2 | 4 | |
Geographic Concentration Risk | Cash and Cash Equivalents, Restricted Cash and Restricted Time Deposits | CHINA | ||||
Significant Accounting Policies [Line Items] | ||||
Cash and cash equivalents, restricted cash and restricted time deposits denominated in RMB that are subject to government controls | ¥ 4,253,000,000 | ¥ 3,159,000,000 | ||
Concentration risk (as a percent) | 98% | 98% | ||
Stock Options | ||||
Significant Accounting Policies [Line Items] | ||||
Vesting period (in years) | 4 years | 4 years | ||
Restricted Share Units | ||||
Significant Accounting Policies [Line Items] | ||||
Vesting period (in years) | 4 years | |||
ASC 606 | ||||
Significant Accounting Policies [Line Items] | ||||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | |||
ASU 2021-08 | ||||
Significant Accounting Policies [Line Items] | ||||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | |||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | |||
ASU 2022-02 | ||||
Significant Accounting Policies [Line Items] | ||||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | |||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | |||
VIEs | ||||
Significant Accounting Policies [Line Items] | ||||
Registered capitals and PRC statutory reserves | ¥ 4,983,000,000 | |||
Beijing Shijitong | Nominee Shareholders | ||||
Significant Accounting Policies [Line Items] | ||||
Extension term of the loan | 10 years | 10 years |
Significant Accounting Polici_5
Significant Accounting Policies - Summary of Financial Information of the Group's VIEs (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) |
ASSETS | ||||||
Cash and cash equivalents | ¥ 2,624,719 | $ 369,684 | ¥ 1,494,150 | $ 210,447 | ¥ 2,664,132 | ¥ 1,563,755 |
Restricted cash | 1,578,450 | 222,320 | 1,436,033 | $ 202,261 | 1,454,682 | 1,276,151 |
Restricted term deposit and short-term investments | 105,182 | 14,815 | 1,061,858 | |||
Deposits to insurance companies and guarantee companies | 2,613,271 | 368,072 | 2,249,022 | |||
Property, equipment and software, net | 446,640 | 62,908 | 284,593 | |||
Land use rights, net and right of use assets | 897,267 | 126,377 | 931,667 | |||
TOTAL ASSETS | 23,140,791 | 3,259,312 | 22,770,703 | |||
Liabilities [Abstract] | ||||||
Deferred guarantee income | 1,538,385 | 216,677 | 894,858 | 419,843 | 694,582 | |
Contingent guarantee liabilities | 1,808,540 | 882,107 | 928,840 | 1,738,787 | ||
TOTAL LIABILITIES | 13,430,709 | 1,891,676 | 14,121,952 | |||
SHAREHOLDERS’ EQUITY: | ||||||
Total shareholders equity | 9,710,082 | 1,367,636 | 8,648,751 | ¥ 8,067,809 | ¥ 5,530,738 | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 23,140,791 | $ 3,259,312 | 22,770,703 | |||
VIEs | ||||||
ASSETS | ||||||
Cash and cash equivalents | 1,834,738 | 1,273,823 | ||||
Restricted cash | 916,015 | 718,675 | ||||
Restricted term deposit and short-term investments | 149,678 | 119,678 | ||||
Financing receivables, net | 3,990,083 | 6,756,760 | ||||
Amounts due from Group companies | 201,390 | 106,977 | ||||
Deposits to insurance companies and guarantee companies | 2,605,464 | 2,214,771 | ||||
Contract assets and receivables, net | 5,586,257 | 4,151,340 | ||||
Property, equipment and software, net | 351,688 | 213,610 | ||||
Land use rights, net and right of use assets | 955,250 | 1,029,258 | ||||
Long-term investments | 239,244 | 331,560 | ||||
Other assets | 3,119,999 | 2,919,516 | ||||
TOTAL ASSETS | 19,949,806 | 19,835,968 | ||||
Liabilities [Abstract] | ||||||
Amounts due to Group companies | 6,546,526 | 6,285,111 | ||||
Borrowings | 842,158 | 1,288,476 | ||||
Funding debts | 3,938,996 | 5,719,358 | ||||
Deferred guarantee income | 1,215,490 | 781,633 | ||||
Contingent guarantee liabilities | 1,232,002 | 770,495 | ||||
Amounts due to related parties | 3,641,027 | 2,699,461 | ||||
TOTAL LIABILITIES | 17,416,199 | 17,544,534 | ||||
SHAREHOLDERS’ EQUITY: | ||||||
Total equity attributable to owners of the company | 2,533,607 | 2,291,434 | ||||
Total shareholders equity | 2,533,607 | 2,291,434 | ||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | ¥ 19,949,806 | ¥ 19,835,968 |
Significant Accounting Polici_6
Significant Accounting Policies - Schedule of the Assets, Liabilities, Results of Operations and Changes in Cash and Cash Equivalents and Restricted Cash of the VIEs and their Subsidiaries (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Operating revenue: | ||||
Operating revenue | ¥ 13,057,082 | $ 1,839,052 | ¥ 9,865,811 | ¥ 11,380,525 |
Operating cost: | ||||
Operating cost | (8,544,012) | (1,203,398) | (6,831,095) | (5,631,251) |
Gross profit | 4,513,070 | 635,654 | 3,034,716 | 5,749,274 |
Operating expenses: | ||||
Total operating expenses | (2,633,972) | (370,987) | (2,700,269) | (2,678,851) |
Others | 7,774 | 1,095 | 61,321 | 113,480 |
Income before income tax expense | 1,326,786 | 186,876 | 1,028,569 | 2,769,534 |
Income tax expenses | (260,841) | (36,739) | (202,640) | (435,418) |
Net income | 1,065,945 | 150,137 | 825,929 | 2,334,116 |
Less: net income attributable to non-controlling interests | 6,177 | 193 | ||
Net income attributable to ordinary shareholders of the Company | 1,065,945 | 150,137 | 819,752 | 2,333,923 |
Net cash (used in) / provided by operating activities | 2,787,052 | 392,549 | 98,844 | 2,667,419 |
Net cash provided by/(used in) investing activities | 2,334,452 | 328,800 | (2,409,037) | 414,615 |
Net cash provided by/(used in) financing activities | (3,852,432) | (542,605) | 1,111,669 | (1,779,534) |
Net increase/(decrease) in cash, cash equivalents and restricted cash | 1,272,986 | 179,296 | (1,188,631) | 1,278,908 |
Cash, cash equivalents and restricted cash at beginning of the year | 2,930,183 | 412,708 | 4,118,814 | 2,839,906 |
Cash, cash equivalents and restricted cash at end of the year | 4,203,169 | $ 592,004 | 2,930,183 | 4,118,814 |
VIEs | ||||
Operating revenue: | ||||
Operating revenue | 11,451,500 | 9,298,063 | 11,103,407 | |
Operating cost: | ||||
Operating cost | (7,354,390) | (6,484,693) | (5,522,630) | |
Gross profit | 4,097,110 | 2,813,370 | 5,580,777 | |
Operating expenses: | ||||
Total operating expenses | (3,311,442) | (3,394,713) | (4,736,778) | |
Others | (448,109) | 617,568 | (369,200) | |
Income before income tax expense | 337,559 | 36,225 | 474,799 | |
Income tax expenses | (100,292) | (13,950) | (142,201) | |
Net income | 237,267 | 22,275 | 332,598 | |
Less: net income attributable to non-controlling interests | 6,177 | 193 | ||
Net income attributable to ordinary shareholders of the Company | 237,267 | 16,098 | 332,405 | |
Net cash (used in) / provided by operating activities | 1,412,861 | 537,019 | (298,268) | |
Net cash provided by/(used in) investing activities | 1,337,528 | (2,062,379) | 622,696 | |
Net cash provided by/(used in) financing activities | (1,992,134) | (37,777) | 656,269 | |
Net increase/(decrease) in cash, cash equivalents and restricted cash | 758,255 | (1,563,137) | 980,697 | |
Cash, cash equivalents and restricted cash at beginning of the year | 1,992,498 | 3,555,635 | 2,574,938 | |
Cash, cash equivalents and restricted cash at end of the year | 2,750,753 | 1,992,498 | 3,555,635 | |
VIEs | Third-party | ||||
Operating revenue: | ||||
Operating revenue | 11,264,532 | 9,297,734 | 11,091,978 | |
Operating cost: | ||||
Operating cost | (7,354,363) | (6,484,657) | (5,520,994) | |
Operating expenses: | ||||
Total operating expenses | (1,766,810) | (1,764,902) | (1,689,151) | |
VIEs | Inter-group | ||||
Operating revenue: | ||||
Operating revenue | 186,968 | 329 | 11,429 | |
Operating cost: | ||||
Operating cost | (27) | (36) | (1,636) | |
Operating expenses: | ||||
Total operating expenses | (1,544,632) | (1,629,811) | (3,047,627) | |
Net cash (used in) / provided by operating activities | (1,479,554) | (1,526,808) | (4,137,522) | |
Net cash provided by/(used in) investing activities | (50,326) | (61,831) | 150,468 | |
Transfer of Shenzhen Lexin Financing Guarantee Co., Ltd from VIE to subsidiary | 585,659 | |||
Net cash provided by/(used in) financing activities | 250,005 | (1,507,456) | 2,431,307 | |
VIEs | External Parties | ||||
Operating expenses: | ||||
Net cash (used in) / provided by operating activities | (2,242,139) | 1,469,679 | (1,775,038) | |
Net cash provided by/(used in) investing activities | 1,387,854 | (2,586,207) | 472,228 | |
Net cash provided by/(used in) financing activities | ¥ 2,892,415 | ¥ 2,063,827 | ¥ 3,839,254 |
Significant Accounting Polici_7
Significant Accounting Policies - Schedule of the Assets, Liabilities, Results of Operations and Changes in Cash and Cash Equivalents and Restricted Cash of the VIEs and their Subsidiaries (Parenthetical) (Details) - VIEs - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Variable Interest Entity [Line Items] | |||
Cash paid for technical service fees. | ¥ 1,647 | ¥ 1,540 | ¥ 4,140 |
Consideration for transfer of equity shares | 586 | ||
Cash received for provision of goods and services | ¥ 168 | ¥ 13 | ¥ 2.5 |
Significant Accounting Polici_8
Significant Accounting Policies - Schedule of Obligations Associated with Deferred Guarantee Income (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Opening balances | ¥ 894,858 | ¥ 419,843 | ¥ 694,582 | |
Fair value of deferred guarantee income at inception of new loans | 3,162,811 | 1,928,195 | 499,805 | |
Release of deferred guarantee income | (2,519,284) | (1,453,180) | (774,544) | |
Ending balances | ¥ 1,538,385 | $ 216,677 | ¥ 894,858 | ¥ 419,843 |
Significant Accounting Polici_9
Significant Accounting Policies - Schedule of Obligations Associated with Contingent Guarantee Liabilities (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Opening balances | ¥ 882,107 | ¥ 928,840 | ¥ 1,738,787 | |
Provision for contingent liabilities of guarantee | 3,203,123 | $ 451,150 | 1,468,265 | 622,438 |
Net cash payout | (2,276,690) | (1,514,998) | (1,432,385) | |
Ending balances | ¥ 1,808,540 | ¥ 882,107 | ¥ 928,840 |
Significant Accounting Polic_10
Significant Accounting Policies - Schedule of Operating Revenue within Scope of ASC 606 Disaggregated by Revenue Sources (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation Of Revenue [Line Items] | |||
Revenue | ¥ 8,392,843 | ¥ 6,388,535 | ¥ 8,873,059 |
Installment e-commerce platform service income | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 1,585,625 | 1,997,838 | 1,661,156 |
Other Services | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 164,884 | 58,227 | 564 |
Online direct sales and services income | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 1,750,509 | 2,056,065 | 1,661,720 |
Credit facilitation service income | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 5,001,881 | 2,486,527 | 4,448,344 |
Credit facilitation service income | Loan Facilitation and Matching Servicing Fees-Credit Oriented | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 4,178,477 | 1,404,507 | 3,120,892 |
Credit facilitation service income | Post-Origination Servicing Fees-Credit Oriented | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 823,404 | 1,082,020 | 1,327,452 |
Tech-empowerment service income | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 1,640,453 | 1,845,943 | 2,762,995 |
Tech-empowerment service income | Loan Facilitation and Matching Servicing Fees-Performance Based | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 702,774 | 935,234 | 1,727,794 |
Tech-empowerment service income | Post-Origination Servicing Fees-Performance Based | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 280,574 | 427,404 | 561,658 |
Tech-empowerment service income | Loan facilitation and servicing fees-volume based | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 349,927 | 252,460 | 279,902 |
Tech-empowerment service income | Membership Services | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 133,211 | 82,256 | 107,901 |
Tech-empowerment service income | Other Services | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 173,967 | 148,589 | 85,740 |
Loan facilitation and servicing fees | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | ¥ 6,335,156 | ¥ 4,101,625 | ¥ 7,017,698 |
Significant Accounting Polic_11
Significant Accounting Policies - Schedule of Operating Revenue Within Scope of ASC 606 Disaggregated by Revenue Timing (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation Of Revenue [Line Items] | |||
Revenue | ¥ 8,392,843 | ¥ 6,388,535 | ¥ 8,873,059 |
At Point-in-Time | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 7,155,654 | 4,796,855 | 6,876,048 |
Over Time | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | ¥ 1,237,189 | ¥ 1,591,680 | ¥ 1,997,011 |
Significant Accounting Polic_12
Significant Accounting Policies - Schedule of Estimated Useful Lives (Details) | Dec. 31, 2023 |
Computers and Equipment | |
Property Plant And Equipment [Line Items] | |
Estimated Useful Lives | 3 years |
Furniture and Fixtures | Minimum | |
Property Plant And Equipment [Line Items] | |
Estimated Useful Lives | 4 years |
Furniture and Fixtures | Maximum | |
Property Plant And Equipment [Line Items] | |
Estimated Useful Lives | 5 years |
Leasehold Improvement | |
Property Plant And Equipment [Line Items] | |
Property, Plant, and Equipment, Useful Life, Term, Description [Extensible Enumeration] | us-gaap:UsefulLifeShorterOfTermOfLeaseOrAssetUtilityMember |
Software | Minimum | |
Property Plant And Equipment [Line Items] | |
Estimated Useful Lives | 3 years |
Software | Maximum | |
Property Plant And Equipment [Line Items] | |
Estimated Useful Lives | 10 years |
Significant Accounting Polic_13
Significant Accounting Policies - Schedule of Future Minimum Lease Payments - ASC 842 (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
2024 | ¥ 41,627 | |
2025 | 36,285 | |
2026 | 21,263 | |
Total future lease payments | 99,175 | |
Impact of discounting remaining lease payments | (7,531) | |
Total lease liabilities | 91,644 | |
- Short-term portion | ¥ 40,942 | ¥ 50,747 |
Operating Lease, Liability, Current, Statement of Financial Position | Accruals and other current liabilities(including amounts of the consolidated VIEs of RMB2,550,969 and RMB3,521,896 as of December 31, 2022 and December 31, 2023, respectively) | Accruals and other current liabilities(including amounts of the consolidated VIEs of RMB2,550,969 and RMB3,521,896 as of December 31, 2022 and December 31, 2023, respectively) |
- Long-term portion | ¥ 50,702 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position | Other long-term liabilities(including amounts of the consolidated VIEs of RMB65,788 and RMB33,495 as of December 31, 2022 and December 31, 2023, respectively) |
Significant Accounting Polic_14
Significant Accounting Policies - Schedule of Supplemental Cash Flow Information Related to Operating Leases (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2023 CNY (¥) | |
Accounting Policies [Abstract] | |
Cash payments for operating leases | ¥ 48,943 |
Right-of-use assets obtained in exchange for operating lease liabilities | ¥ 29,915 |
Significant Accounting Polic_15
Significant Accounting Policies - Schedule of Concentration Risk (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Supplier Concentration Risk | Inventories | Inventory Supplier A | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 13.90% | |
Supplier Concentration Risk | Inventories | Inventory Supplier B | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 12.60% | 28.90% |
Supplier Concentration Risk | Inventories | Inventory Supplier C | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 23.40% | |
Supplier Concentration Risk | Inventories | Inventory Supplier D | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 17.50% | |
Supplier Concentration Risk | Inventories | Inventory Supplier E | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 11.60% | |
Lender Concentration Risk | Long-term debt | Institutional Funding Partner A | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 33.90% | 16.90% |
Lender Concentration Risk | Long-term debt | Institutional Funding Partner B | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 36.30% | 16.50% |
Deposits Concentration Risk | Deposits to Insurance and Guarantee Companies | Guarantee Company A | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 17.10% | 23.40% |
Deposits Concentration Risk | Deposits to Insurance and Guarantee Companies | Guarantee Company B | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 11.30% | |
Deposits Concentration Risk | Deposits to Insurance and Guarantee Companies | Guarantee Company C | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 11.20% |
Financing Receivable, Net - Sch
Financing Receivable, Net - Schedule of Financing Receivables, Net (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Short-term: | |||
Short-term financing receivables | ¥ 3,933,553 | ¥ 6,478,949 | |
Accrued interest receivable | 69,041 | 103,158 | |
Allowance for credit losses | (58,594) | (184,187) | |
Total short-term financing receivables, net | 3,944,000 | $ 555,501 | 6,397,920 |
Long-term: | |||
Long-term financing receivables | 203,601 | 473,545 | |
Allowance for credit losses | (3,087) | (13,220) | |
Total long-term financing receivables, net | ¥ 200,514 | $ 28,242 | ¥ 460,325 |
Financing Receivable, Net - Add
Financing Receivable, Net - Additional Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts Notes And Loans Receivable [Line Items] | |||
Financing receivable, charged-off | ¥ 939,992 | ¥ 791,046 | ¥ 912,260 |
Financing receivables, non-accrual status | 183,000 | 210,000 | |
Interest and late payment fees earned from non-accrual financing receivables | 74,100 | 107,000 | ¥ 136,000 |
Loan VII | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Collateral amount | 190,000 | 734,000 | |
Installment Purchase Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Financing receivable, charged-off | ¥ 4,925,000 | ¥ 4,162,000 | |
Maximum | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Installment purchase loans and personal installment loans original term | 3 years |
Financing Receivable, Net - Sum
Financing Receivable, Net - Summary of Balances of Financing Receivables by Due Date (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, after Allowance for Credit Loss [Abstract] | ||
Due in 0-12 months | ¥ 3,933,553 | ¥ 6,478,949 |
Due in 13-24 months | 180,719 | 370,652 |
Due in 25-36 months | 46 | 59,217 |
Due thereafter | 22,836 | 43,676 |
Total financing receivables (excluding accrued interest receivable) | ¥ 4,137,154 | ¥ 6,952,494 |
Financing Receivable, Net - S_2
Financing Receivable, Net - Summary of Activities in Allowance for Credit Losses (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning balances | ¥ (197,407) | ¥ (328,231) | ¥ (529,162) |
Provision for credit losses | (627,061) | (437,477) | (401,104) |
Charge-offs | 939,992 | 791,046 | 912,260 |
Recoveries from prior charge-offs | (177,204) | (222,745) | (310,225) |
Ending balances | ¥ (61,681) | ¥ (197,407) | ¥ (328,231) |
Financing Receivable, Net - S_3
Financing Receivable, Net - Summary of Aging Analysis of Past Due Financing Receivables (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Aging analysis of past due financing receivables | ||
Total financing receivables (excluding accrued interest receivable) | ¥ 4,137,154 | ¥ 6,952,494 |
1-29 Days Past Due | ||
Aging analysis of past due financing receivables | ||
Total financing receivables (excluding accrued interest receivable) | 94,448 | 151,784 |
30-59 Days Past Due | ||
Aging analysis of past due financing receivables | ||
Total financing receivables (excluding accrued interest receivable) | 76,449 | 98,289 |
60-89 Days Past Due | ||
Aging analysis of past due financing receivables | ||
Total financing receivables (excluding accrued interest receivable) | 65,816 | 81,652 |
90-179 Days Past Due | ||
Aging analysis of past due financing receivables | ||
Total financing receivables (excluding accrued interest receivable) | 183,054 | 209,738 |
Total Past Due | ||
Aging analysis of past due financing receivables | ||
Total financing receivables (excluding accrued interest receivable) | 419,767 | 541,463 |
Current | ||
Aging analysis of past due financing receivables | ||
Total financing receivables (excluding accrued interest receivable) | ¥ 3,717,387 | ¥ 6,411,031 |
Financing Receivable, Net - S_4
Financing Receivable, Net - Summary of Amortized Cost within Each Credit Quality Indicator by Year of Origination for Five Origination Years and Beyond (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing receivables credit quality indicator | ||
Loans originated in 2020 | ¥ 58 | |
Loans originated in 2021 | 12,844 | |
Loans originated in 2022 | 312,926 | |
Loans originated in 2023 | 3,811,326 | |
Total financing receivables (excluding accrued interest receivable) | 4,137,154 | ¥ 6,952,494 |
1-29 Days Past Due | ||
Financing receivables credit quality indicator | ||
Loans originated in 2020 | 2 | |
Loans originated in 2021 | 393 | |
Loans originated in 2022 | 9,838 | |
Loans originated in 2023 | 84,215 | |
Total financing receivables (excluding accrued interest receivable) | 94,448 | 151,784 |
30-59 Days Past Due | ||
Financing receivables credit quality indicator | ||
Loans originated in 2020 | 5 | |
Loans originated in 2021 | 269 | |
Loans originated in 2022 | 8,031 | |
Loans originated in 2023 | 68,144 | |
Total financing receivables (excluding accrued interest receivable) | 76,449 | 98,289 |
60-89 Days Past Due | ||
Financing receivables credit quality indicator | ||
Loans originated in 2020 | 7 | |
Loans originated in 2021 | 272 | |
Loans originated in 2022 | 8,450 | |
Loans originated in 2023 | 57,087 | |
Total financing receivables (excluding accrued interest receivable) | 65,816 | 81,652 |
90-179 Days Past Due | ||
Financing receivables credit quality indicator | ||
Loans originated in 2020 | 36 | |
Loans originated in 2021 | 1,255 | |
Loans originated in 2022 | 34,667 | |
Loans originated in 2023 | 147,096 | |
Total financing receivables (excluding accrued interest receivable) | 183,054 | 209,738 |
Total Past Due | ||
Financing receivables credit quality indicator | ||
Loans originated in 2020 | 50 | |
Loans originated in 2021 | 2,189 | |
Loans originated in 2022 | 60,986 | |
Loans originated in 2023 | 356,542 | |
Total financing receivables (excluding accrued interest receivable) | 419,767 | 541,463 |
Current | ||
Financing receivables credit quality indicator | ||
Loans originated in 2020 | 8 | |
Loans originated in 2021 | 10,655 | |
Loans originated in 2022 | 251,940 | |
Loans originated in 2023 | 3,454,784 | |
Total financing receivables (excluding accrued interest receivable) | ¥ 3,717,387 | ¥ 6,411,031 |
Contract Assets and Receivabl_3
Contract Assets and Receivables, Net - Schedule of Contract Assets and Receivables and Guarantee Receivables (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Contract Assets | ||
Short-term: | ||
Gross | ¥ 4,193,755 | ¥ 2,507,733 |
Allowance | (278,202) | (97,712) |
Net | 3,915,553 | 2,410,021 |
Long-term: | ||
Gross | 404,937 | 422,307 |
Allowance | (46,721) | (40,248) |
Net | 358,216 | 382,059 |
Service Fees Receivable | ||
Short-term: | ||
Gross | 616,617 | 631,641 |
Allowance | (56,400) | (68,292) |
Net | 560,217 | 563,349 |
Guarantee Receivable | ||
Short-term: | ||
Gross | 1,738,745 | 971,651 |
Allowance | (101,534) | (50,846) |
Net | 1,637,211 | 920,805 |
Long-term: | ||
Gross | 256,719 | 235,486 |
Allowance | (15,117) | (12,494) |
Net | ¥ 241,602 | ¥ 222,992 |
Contract Assets and Receivabl_4
Contract Assets and Receivables, Net - Schedule of Activities in the Allowance for Credit Losses (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Activities in the provision for credit losses | |||
Beginning balances | ¥ (269,592) | ¥ (247,301) | ¥ (160,342) |
Provisions | (622,564) | (461,774) | (531,237) |
Charge-offs | 438,002 | 561,988 | 523,613 |
Recoveries from prior charge-offs | (43,820) | (122,505) | (79,335) |
Ending balances | ¥ (497,974) | ¥ (269,592) | ¥ (247,301) |
Contract Assets and Receivabl_5
Contract Assets and Receivables, Net - Additional Information (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||
Contract with Customer, Asset, before Allowance for Credit Loss | ¥ 443 | ¥ 257 |
Percentage of contract assets and receivables | 82% |
Prepayments and Other Current_3
Prepayments and Other Current Assets - Schedule of Prepayments and Other Current Assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Prepaid Expense and Other Assets, Current [Abstract] | |||
Receivables from third-party payment service providers | ¥ 553,844 | ¥ 377,928 | |
Deposits to Institutional Funding Partners | 237,823 | 212,199 | |
Prepayment to inventory suppliers | 67,222 | 55,958 | |
Prepaid input value-added tax | 41,214 | 37,089 | |
Rental deposits and other current assets | 108,183 | 51,107 | |
Loans at fair value | 420,483 | 352,672 | |
Total prepayments and other current assets | ¥ 1,428,769 | $ 201,238 | ¥ 1,086,952 |
Property, Equipment and Softw_3
Property, Equipment and Software, Net - Schedule of Property, Equipment and Software, Net (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Property Plant And Equipment [Line Items] | |||
Total property, equipment and software, gross | ¥ 754,850 | ¥ 533,329 | |
Accumulated depreciation and amortization | (308,210) | (248,736) | |
Total property, equipment and software, net | 446,640 | $ 62,908 | 284,593 |
Computers and Equipment | |||
Property Plant And Equipment [Line Items] | |||
Total property, equipment and software, gross | 270,236 | 204,314 | |
Furniture and Fixtures | |||
Property Plant And Equipment [Line Items] | |||
Total property, equipment and software, gross | 17,967 | 19,311 | |
Leasehold Improvement | |||
Property Plant And Equipment [Line Items] | |||
Total property, equipment and software, gross | 69,235 | 66,618 | |
Software | |||
Property Plant And Equipment [Line Items] | |||
Total property, equipment and software, gross | 102,129 | 93,309 | |
Construction In Progress | |||
Property Plant And Equipment [Line Items] | |||
Total property, equipment and software, gross | ¥ 295,283 | ¥ 149,777 |
Property, Equipment and Softw_4
Property, Equipment and Software, Net - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization | ¥ 105,409 | $ 14,847 | ¥ 94,941 | ¥ 90,751 |
Property, equipment and software | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization | ¥ 71,000 | ¥ 60,500 | ¥ 56,400 |
Land Use Rights, Net - Schedule
Land Use Rights, Net - Schedule of Land Use Rights, Net (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Gross carrying amount | ¥ 1,032,000 | ¥ 1,032,000 |
Accumulated amortization | (134,733) | (100,333) |
Net carrying amount | ¥ 897,267 | ¥ 931,667 |
Land Use Rights, Net - Addition
Land Use Rights, Net - Additional Information (Details) - CNY (¥) ¥ in Millions | 1 Months Ended | 12 Months Ended | ||||
Feb. 28, 2021 | Feb. 29, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||
Finite-lived intangible assets, cash consideration | ¥ 1,000 | |||||
Land use right period | 30 years | |||||
First installment payment | ¥ 516 | |||||
Second installment payment | ¥ 516 | |||||
Amortization expense | ¥ 34.4 | ¥ 34.4 | ¥ 34.4 |
Land Use Rights, Net - Schedu_2
Land Use Rights, Net - Schedule of Amortization Expenses For Future Periods (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 | ¥ 34,400 | |
2025 | 34,400 | |
2026 | 34,400 | |
2027 | 34,400 | |
2028 | 34,400 | |
Thereafter | 725,267 | |
Net carrying amount | ¥ 897,267 | ¥ 931,667 |
Long-Term Investments - Additio
Long-Term Investments - Additional Information (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 CNY (¥) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Summary Of Investment Holdings [Line Items] | |||||
Carrying value of equity investments | ¥ 120,000,000 | ¥ 213,000,000 | |||
Unrealized gains (upward adjustment) | 0 | 0 | ¥ 0 | ||
Cumulative impairment charges | 176,000,000 | ||||
Impairment related to investments without readily determinable fair value recognized | 92,300,000 | 0 | 0 | ||
Equity method investments | 15,800,000 | 16,800,000 | |||
Loss from equity method investments | (1,500,000) | $ (208) | (4,081,000) | (3,967,000) | |
Expected credit loss | 36,900,000 | ||||
Carrying amount of held-to-maturity debt investments | 119,000,000 | 119,000,000 | |||
Debt investment principle amount | ¥ 120,000,000 | ||||
Maturity term | 2026-07 | ||||
Interest income | ¥ 0 | 0 | 0 | ||
Indonesia | |||||
Summary Of Investment Holdings [Line Items] | |||||
Cash consideration | ¥ 3,000,000 | ||||
PRC | |||||
Summary Of Investment Holdings [Line Items] | |||||
Decrease in equity investments due to disposal of two joint ventures | ¥ 80,000,000 |
Long-Term Investments - Summary
Long-Term Investments - Summary of Movement of Carrying Value of Equity Investments Accounted Using Measurement Alternative (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Long-Term Investments [Abstract] | |||
Long-term investment at the beginning of the year | ¥ 212,700 | ¥ 212,700 | ¥ 264,151 |
Addition | 16,700 | ||
Disposal | 0 | 0 | (67,475) |
Impairment | (92,316) | ||
Foreign currency translation adjustments | (676) | ||
Long-term investment at the end of the year | ¥ 120,384 | ¥ 212,700 | ¥ 212,700 |
Fair Value Measurement - Schedu
Fair Value Measurement - Schedule of Fair Value of Hierarchy For Assets and Liabilities Measured on Recurring Basis (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Assets | |||
Restricted term deposit | ¥ 105,182 | $ 14,815 | ¥ 1,061,858 |
Short-term investments | 200,000 | $ 28,169 | 270,000 |
Loans at fair value | 420,483 | 352,672 | |
Recurring Basis | Fair Value | |||
Assets | |||
Restricted term deposit | 105,182 | 1,061,858 | |
Short-term investments | 200,000 | 270,000 | |
Loans at fair value | 420,483 | 352,672 | |
Total assets | 725,665 | 1,684,530 | |
Liabilities | |||
Guarantee derivative liabilities | 1,357,601 | 861,304 | |
Total liabilities | 1,357,601 | 861,304 | |
Recurring Basis | Fair Value | Level 2 Inputs | |||
Assets | |||
Restricted term deposit | 105,182 | 1,061,858 | |
Short-term investments | 200,000 | 270,000 | |
Total assets | 305,182 | 1,331,858 | |
Recurring Basis | Fair Value | Level 3 Inputs | |||
Assets | |||
Loans at fair value | 420,483 | 352,672 | |
Total assets | 420,483 | 352,672 | |
Liabilities | |||
Guarantee derivative liabilities | 1,357,601 | 861,304 | |
Total liabilities | ¥ 1,357,601 | ¥ 861,304 |
Fair Value Measurement - Summar
Fair Value Measurement - Summary of Quantitative Information About The Significant Unobservable Inputs (Details) - Level 3 Inputs - Recurring Basis | Dec. 31, 2023 | Dec. 31, 2022 |
Expected Future Recovery Rates | Minimum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Loans at fair value | 0.042 | 0.048 |
Expected Future Recovery Rates | Maximum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Loans at fair value | 0.042 | 0.048 |
Expected Future Recovery Rates | Weighted-Average | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Loans at fair value | 0.042 | 0.048 |
Guarantee Derivative Assets or Liabilities | Cumulative Loss Rates | Minimum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Guarantee derivatives assets or liabilities | 0.014 | 0.013 |
Guarantee Derivative Assets or Liabilities | Cumulative Loss Rates | Maximum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Guarantee derivatives assets or liabilities | 0.118 | 0.121 |
Guarantee Derivative Assets or Liabilities | Cumulative Loss Rates | Weighted-Average | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Guarantee derivatives assets or liabilities | 0.074 | 0.078 |
Guarantee Derivative Assets or Liabilities | Margins on Cost of Guarantee Services | Minimum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Guarantee derivatives assets or liabilities | 0.10 | 0.100 |
Guarantee Derivative Assets or Liabilities | Margins on Cost of Guarantee Services | Maximum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Guarantee derivatives assets or liabilities | 0.10 | 0.100 |
Guarantee Derivative Assets or Liabilities | Margins on Cost of Guarantee Services | Weighted-Average | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Guarantee derivatives assets or liabilities | 0.10 | 0.100 |
Fair Value Measurement - Summ_2
Fair Value Measurement - Summary of Activities Related to Fair Value of the Guarantee Derivatives (Details) - Guarantee Derivative Assets or Liabilities - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
Fair value of guarantee derivative liabilities at beginning of the year (Level 3) | ¥ 861,304 | ¥ 1,473,853 | ¥ 252,613 |
Cash collection | 5,512,818 | 4,436,911 | 3,107,316 |
Net cash payout | (5,284,198) | (4,435,587) | (2,344,922) |
Change in fair value | ¥ 267,677 | ¥ (613,873) | 458,846 |
Fair Value, Net Derivative Asset (Liability), Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Fair Value, Net Derivative Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss) | Fair Value, Net Derivative Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss) | |
Fair value of guarantee derivative liabilities at end of the year (Level 3) | ¥ 1,357,601 | ¥ 861,304 | ¥ 1,473,853 |
Fair Value Measurement - Summ_3
Fair Value Measurement - Summary of Activities Related to Fair Value of the Loans Acquired or Purchased (Details) - Loans At Fair Value - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value of loans acquired/purchased at beginning of the year (Level 3) | ¥ 352,672 | ¥ 252,970 |
Fair value at inception of loans acquired/purchased | 5,154,833 | 4,296,611 |
Cash collection | (5,120,379) | (4,305,417) |
Change in fair value | ¥ 61,309 | ¥ 108,508 |
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Fair Value, Net Derivative Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss) | Fair Value, Net Derivative Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss) |
Disposal | ¥ (27,952) | |
Fair value of loans acquired/purchased at end of the year (Level 3) | ¥ 420,483 | ¥ 352,672 |
Fair Value Measurement - Sche_2
Fair Value Measurement - Schedule of Effect Adverse Change in Derivative Assets and Liabilities (Details) - Guarantee Derivative Assets or Liabilities - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Weighted average cumulative loss rates | 7.40% | 7.80% |
Increase by 10% | ¥ 544,318 | ¥ 443,526 |
Decrease by 10% | ¥ (544,318) | ¥ (443,526) |
Fair Value Measurement - Summ_4
Fair Value Measurement - Summary of Effect Adverse Changes in Estimated Fair Value of the Loans (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | ||
Weighted average expected future recovery rates | 4.20% | 4.80% |
Increase by 10% | ¥ 42,048 | ¥ 35,267 |
Decrease by 10% | ¥ (42,048) | ¥ (35,267) |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2023 CNY (¥) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Impairment | ¥ 92,316 |
Non-recurring Basis | Level 3 Inputs | Valuation, Market Approach | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value of long-term investment | 102,000 |
Impairment | ¥ 92,300 |
Fair Value Measurement - Summ_5
Fair Value Measurement - Summary of Quantitative Information About The Significant Unobservable Inputs of Investment (Details) - Level 3 Inputs - Value to Net Asset Multiple - Non-recurring Basis | Dec. 31, 2023 |
Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Value to net asset multiple | 0.74 |
Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Value to net asset multiple | 0.34 |
Weighted-Average | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Value to net asset multiple | 0.65 |
Fair Value Measurement - Summ_6
Fair Value Measurement - Summary of Effect Adverse Changes in Estimated Fair Value of Investment (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2023 CNY (¥) | |
Fair Value Disclosures [Abstract] | |
Value to net asset multiple | 0.65% |
Increase by 10% | ¥ 10,388 |
Decrease by 10% | ¥ (10,388) |
Funding Debts - Summary of the
Funding Debts - Summary of the Group's Outstanding Funding Debts (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Debt Instrument [Line Items] | |||
Short-term Funding Debts | ¥ 3,483,196 | $ 490,598 | ¥ 4,385,253 |
Long-term funding debts | 455,800 | $ 64,198 | 1,334,105 |
Liabilities to Funding Partners | |||
Debt Instrument [Line Items] | |||
Short-term Funding Debts | 3,483,196 | 4,385,253 | |
Long-term funding debts | ¥ 455,800 | ¥ 1,334,105 |
Funding Debts - Liabilities to
Funding Debts - Liabilities to Individual Investors and Institutional Funding Partners (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Debt Instrument [Line Items] | ||||
Aggregate amount funded from funding sources | ¥ 17,938,230 | $ 2,526,547 | ¥ 19,836,846 | ¥ 18,221,528 |
Liabilities to Funding Partners | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate | 9.10% | 9.30% | ||
Aggregate amount funded from funding sources | ¥ 3,893,000 | ¥ 6,372,000 | ||
Financing receivables, net | ¥ 190,000 | ¥ 734,000 |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Short Term Debt [Line Items] | |||
Weighted average interest rates of short-term borrowings | 3.60% | 3.60% | 3.60% |
Weighted average interest rates of long-term borrowings | 4.30% | 4.30% | 4.30% |
Short-term borrowings | ¥ 100,000 | ¥ 953,000 | |
Long-term borrowings | 524,000 | $ 73,842 | 150,430 |
Time deposit | |||
Short Term Debt [Line Items] | |||
Collateral amount | ¥ 100,000 | ¥ 1,062,000 |
Accruals and Other Current Li_3
Accruals and Other Current Liabilities - Schedule of Accruals and Other Current Liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | |
Payables and Accruals [Abstract] | ||||
Guarantee derivative liabilities at fair value (Note 9) | ¥ 1,357,601 | ¥ 861,304 | ||
Funds payable to Institutional Funding Partners | [1] | 1,071,301 | 382,545 | |
Tax payable | 869,529 | 746,563 | ||
Accrued payroll and welfare | 392,176 | 400,886 | ||
Accrued risk management fees | 220,279 | 186,331 | ||
Accrued marketing expenses | 150,927 | 130,937 | ||
Other accrued expenses | 83,381 | 65,557 | ||
Amount due to third party sellers | 80,099 | 102,613 | ||
Other payables | 67,348 | 24,916 | ||
Accrued professional fees and outsourcing fees | 59,668 | 61,604 | ||
Short-term leasing liabilities | ¥ 40,942 | ¥ 50,747 | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Total accruals and other current liabilities | Total accruals and other current liabilities | Total accruals and other current liabilities | |
Deferred service fees | ¥ 36,614 | ¥ 31,112 | ||
Accrued interest payable | 4,389 | 12,354 | ||
Total accruals and other current liabilities | ¥ 4,434,254 | $ 624,552 | ¥ 3,057,469 | |
[1] The payable balances mainly include repayment received from Borrowers but not yet transferred to accounts of Institutional Funding Partners due to the settlement time lag. |
Related Party Balances and Tr_3
Related Party Balances and Transactions - Schedule of Significant Related Party Transactions (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Provision of services to related parties | ¥ 0 | ¥ 631 | ¥ 7,731 |
Purchases of goods/services from related parties | 14,753 | 16,177 | 20,493 |
Aileyou | |||
Related Party Transaction [Line Items] | |||
Provision of services to related parties | 631 | 7,731 | |
Ji'an Aoxinlian | |||
Related Party Transaction [Line Items] | |||
Purchases of goods/services from related parties | ¥ 14,753 | ¥ 16,177 | ¥ 20,493 |
Related Party Balances and Tr_4
Related Party Balances and Transactions - Schedule of Amounts Due from Related Parties (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Related Party Transaction [Line Items] | |||
Amounts due from related parties | ¥ 6,989 | $ 984 | ¥ 6,602 |
Due from L.P. by the Group | |||
Related Party Transaction [Line Items] | |||
Amounts due from related parties | ¥ 6,989 | ¥ 6,602 |
Related Party Balances and Tr_5
Related Party Balances and Transactions - Schedule of Amounts Due from Related Parties (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Due from L.P. by the Group | |
Related Party Transaction [Line Items] | |
Funds, loan amount | $ 940,000 |
Related Party Balances and Tr_6
Related Party Balances and Transactions - Schedule of Amounts Due to Related Parties (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Related Party Transaction [Line Items] | |||
Amounts due to related parties | ¥ 2,958 | $ 417 | ¥ 4,669 |
Due to Ji'an Aoxinlian by the Group | |||
Related Party Transaction [Line Items] | |||
Amounts due to related parties | ¥ 2,958 | ¥ 4,669 |
Taxation - Tax rates (Details)
Taxation - Tax rates (Details) ¥ in Millions, $ in Millions | 12 Months Ended | ||||||
Jan. 01, 2008 | Dec. 31, 2023 HKD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2023 CNY (¥) | |
Income Taxes [Line Items] | |||||||
Statutory tax rate (as a percentage) | 25% | 25% | 25% | ||||
Tax exempt income rate (as a percent) | 6.50% | 6.80% | 10.80% | ||||
Unrecognized tax liabilities related to undistributed profits | ¥ 6,268 | ||||||
Mainland China | |||||||
Income Taxes [Line Items] | |||||||
Statutory tax rate (as a percentage) | 25% | 25% | |||||
Withholding income tax rate for dividend paid to foreign tax resident investors (as a percentage) | 10% | ||||||
Reduced withholding tax rate for beneficial owner (as a percentage) | 5% | ||||||
Accrued withholding tax liabilities | 21.4 | ||||||
Withholding income tax rate for percentage of annual profits | 10% | ||||||
Unrecognized tax liabilities related to undistributed profits | 627 | ||||||
Mainland China | VIEs | |||||||
Income Taxes [Line Items] | |||||||
Unrecognized tax liabilities related to undistributed profits | ¥ 208 | ||||||
Mainland China | Shenzhen Lexin Software | |||||||
Income Taxes [Line Items] | |||||||
Preferential tax rate (as a percentage) | 12.50% | 12.50% | 10% | ||||
Preferential income tax rate (as a percentage) from 2022 to 2024 | 15% | ||||||
Mainland China | Beihai Aurora and Beihai Lexin | |||||||
Income Taxes [Line Items] | |||||||
Preferential tax rate (as a percentage) | 15% | ||||||
Tax exempt income rate (as a percent) | 40% | ||||||
Preferential income tax rate (as a percentage) from 2023 to 2030 | 15% | ||||||
Preferential income tax rate (as a percentage) from 2021 to 2025 | 15% | ||||||
Preferential income tax rate (as a percentage) from 2023 to 2028 | 9% | ||||||
Mainland China | Shenzhen Lexin Information | |||||||
Income Taxes [Line Items] | |||||||
Preferential income tax rate (as a percentage) from 2023 to 2025 | 12.50% | ||||||
Hong Kong | |||||||
Income Taxes [Line Items] | |||||||
Statutory tax rate (as a percentage) | 16.50% | ||||||
Assessable profits | $ | $ 2 | ||||||
Withholding income tax rate for dividend paid to foreign tax resident investors (as a percentage) | 8.25% | ||||||
Online direct sales and services income | Mainland China | |||||||
Income Taxes [Line Items] | |||||||
Value added tax rate (as a percent) | 13% | ||||||
Premium membership fees, third-party sellers' commission fees, and financial services income | Mainland China | |||||||
Income Taxes [Line Items] | |||||||
Value added tax rate (as a percent) | 6% |
Taxation - Components of Income
Taxation - Components of Income Before Income Tax (Benefit)/Expense (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Components of (loss)/income before income tax expense | ||||
Income before income tax expense | ¥ 1,326,786 | $ 186,876 | ¥ 1,028,569 | ¥ 2,769,534 |
Loss from non-China operations | (86,910) | (94,806) | (30,047) | |
Income from China operations | 1,413,696 | 1,123,375 | 2,799,581 | |
Income tax expense applicable to China operations | 239,365 | 202,466 | 428,267 | |
Income tax expense applicable to non-China operations | 123 | 174 | 7,151 | |
PRC Withholding Tax on Dividends | 21,353 | |||
Income tax expense | ¥ 260,841 | $ 36,739 | ¥ 202,640 | ¥ 435,418 |
Effective tax rate | 19.70% | 19.70% | 19.70% | 15.70% |
China Operations | ||||
Components of (loss)/income before income tax expense | ||||
Effective tax rate | 16.90% | 16.90% | 18% | 15.30% |
Taxation - Current and Deferred
Taxation - Current and Deferred Portions of Income Tax (Benefit)/Expense (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Current and deferred portion of income tax expense | ||||
Current income tax expense | ¥ 328,391 | ¥ 169,299 | ¥ 831,675 | |
Deferred income tax expense | (67,550) | $ (9,514) | 33,341 | (396,257) |
Income tax expense | ¥ 260,841 | $ 36,739 | ¥ 202,640 | ¥ 435,418 |
Taxation - Reconciliation Betwe
Taxation - Reconciliation Between Statutory Enterprise Income Tax Rate and Effective Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation between the statutory EIT rate and the effective tax rate | |||
Statutory EIT rate | 25% | 25% | 25% |
Effect of tax holidays | (6.50%) | (6.80%) | (10.80%) |
Effect of non-deductible expenses | 2.50% | 4.70% | 3% |
Effect of research and development tax credit | (4.70%) | (6.10%) | (2.10%) |
Changes in valuation allowance | 4.90% | 0.60% | 0.10% |
Tax rate difference from statutory rate in other jurisdictions and others | (3.10%) | 2.30% | 0.50% |
Effect of withholding income tax | 1.60% | 0% | 0% |
Effective tax rate for the Group | 19.70% | 19.70% | 15.70% |
Taxation - Effect of Tax Holida
Taxation - Effect of Tax Holiday Related to Group (Details) - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Tax holiday effect | ¥ 86,655 | ¥ 69,827 | ¥ 299,578 |
Basic net income per share effect | ¥ 0.26 | ¥ 0.20 | ¥ 0.81 |
Diluted net income per share effect | ¥ 0.24 | ¥ 0.18 | ¥ 0.72 |
Taxation - Components of Deferr
Taxation - Components of Deferred Tax Assets and Deferred Tax Liabilities (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets | ||||
Provision for credit losses | ¥ 1,225,097 | ¥ 948,177 | ||
Deferred guarantee income and other accrued expenses | 869,708 | 807,224 | ||
Contingent guarantee liabilities | 452,135 | 220,527 | ||
Net operating loss carryforwards | 105,653 | 43,237 | ||
Advertising expenses in excess of deduction limit | 7,248 | 5,683 | ||
Investment related loss | 75,440 | |||
Less: valuation allowance | (78,471) | (13,038) | ¥ (6,756) | ¥ (4,429) |
Total deferred tax assets | 2,656,810 | 2,011,810 | ||
Net deferred tax assets | 1,232,092 | 1,141,761 | ||
Deferred tax liabilities | ||||
Contract assets and service fees receivable | 1,009,002 | 636,659 | ||
Guarantee receivables | 469,703 | 285,949 | ||
Withholding income tax | 21,353 | 0 | ||
Total deferred tax liabilities | 1,500,058 | 922,608 | ||
Net deferred tax liabilities | ¥ 75,340 | ¥ 52,559 |
Taxation - Movement of Valuatio
Taxation - Movement of Valuation Allowance (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of the year | ¥ (13,038) | ¥ (6,756) | ¥ (4,429) |
Additions | (66,967) | (6,783) | (2,659) |
Reversals | 1,534 | 501 | 332 |
Balance at end of the year | ¥ (78,471) | ¥ (13,038) | ¥ (6,756) |
Taxation - Others (Details)
Taxation - Others (Details) - CNY (¥) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes [Line Items] | ||||
Statutory tax rate (as a percentage) | 25% | 25% | 25% | |
Valuation allowance | ¥ 78,471,000 | ¥ 13,038,000 | ¥ 6,756,000 | ¥ 4,429,000 |
Operating loss carryforwards | 423,000,000 | 175,000,000 | ||
Valuation allowance for net operating loss carryforwards | 312,000,000 | 48,400,000 | ||
Net operating loss carryforwards | 105,653,000 | 43,237,000 | ||
Net operating loss carryforwards, expires in 2024 | 2,400,000 | |||
Net operating loss carryforwards, expires in 2025 | 11,300,000 | |||
Net operating loss carryforwards, expires in 2026 | 35,400,000 | |||
Net operating loss carryforwards, expires in 2027 | 82,500,000 | |||
Net operating loss carryforwards, expires in 2028 | 291,000,000 | |||
VIEs | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | 111,000,000 | 126,000,000 | ||
Provision for credit losses | ||||
Income Taxes [Line Items] | ||||
Valuation allowance | ¥ 0 | ¥ 0 | ¥ 0 |
Convertible Notes - Additional
Convertible Notes - Additional Information (Details) - Convertible Notes $ / shares in Units, ¥ in Thousands, $ in Millions | 1 Months Ended | 10 Months Ended | 12 Months Ended | |||||
Mar. 13, 2023 Installment $ / shares | Apr. 29, 2024 USD ($) Installment | Sep. 30, 2019 USD ($) $ / shares | Sep. 30, 2019 CNY (¥) | Dec. 31, 2023 USD ($) Installment | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | Sep. 30, 2019 CNY (¥) | |
Debt Instrument [Line Items] | ||||||||
Principal amount | $ | $ 300 | |||||||
Term of the loan | 7 years | 7 years | ||||||
Interest rate (as a percent) | 2% | 2% | ||||||
Maturity date | 6 months | 6 months | ||||||
Debt instrument percentage | 100% | 100% | ||||||
Net proceeds | $ 293 | ¥ 2,075,000 | ||||||
Net of debt discount | 3.6 | ¥ 25,500 | ||||||
Issuance costs | $ 3.4 | ¥ 24,100 | ||||||
Interest expense | ¥ | ¥ 73,800 | ¥ 46,900 | ||||||
Convertible notes | ¥ | ¥ 502,872 | 2,089,000 | ||||||
Unamortized debt discount and issuance costs | ¥ | ¥ 25,800 | |||||||
Number of monthly installments of principal | 14 | |||||||
Notes payment term | 2024-04 | |||||||
Debt Instrument, Redemption, Period One | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument percentage | 2% | |||||||
Number of monthly installments of principal | 7 | 10 | ||||||
Repayment of installment amount | $ | $ 229 | |||||||
Debt Instrument, Redemption, Period Two | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument percentage | 10% | |||||||
Number of monthly installments of principal | 7 | |||||||
Debt Instrument, Redemption, Period Two | Subsequent Events | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of monthly installments of principal | 4 | |||||||
Repayment of installment amount | $ | $ 71 | |||||||
Class A Ordinary Shares | ||||||||
Debt Instrument [Line Items] | ||||||||
Conversion price per share | $ / shares | $ 7 | |||||||
ADS | ||||||||
Debt Instrument [Line Items] | ||||||||
Conversion price per share | $ / shares | $ 14 | $ 14 |
Ordinary Shares - Additional In
Ordinary Shares - Additional Information (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | 37 Months Ended | ||||||||||||
Dec. 26, 2017 Vote $ / shares shares | Jun. 30, 2021 shares | Jun. 30, 2018 shares | Jan. 31, 2018 CNY (¥) shares | Jan. 31, 2018 USD ($) $ / shares shares | Nov. 30, 2013 $ / shares shares | Dec. 31, 2023 CNY (¥) shares | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2020 shares | Dec. 31, 2017 CNY (¥) | Dec. 31, 2017 USD ($) | Jun. 30, 2021 shares | Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 USD ($) shares | Mar. 16, 2022 USD ($) | |
Class Of Stock [Line Items] | |||||||||||||||
Number of new shares issued (in shares) | 125,000,000 | ||||||||||||||
Par value of shares | $ / shares | $ 0.0001 | ||||||||||||||
Proceeds from initial public offering, net of issuance costs | ¥ 95,100 | ¥ 651,000 | $ 100,000 | ||||||||||||
Share repurchase program, authorized amount | $ | $ 50,000 | ||||||||||||||
Shares repurchase program, Number of shares acquired | 22,000,000 | ||||||||||||||
Shares repurchase program, Share acquired amount | ¥ 328,764 | ¥ 328,764 | $ 46,305 | $ 48,000 | |||||||||||
Class A Ordinary Shares | |||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||
Number of new shares issued (in shares) | 15,000,000 | 27,000,000 | 42,000,000 | 42,000,000 | 27,000,000 | 42,000,000 | |||||||||
Par value of shares | $ / shares | $ 0.0001 | ||||||||||||||
Stock conversion basis | 1 | ||||||||||||||
Number of votes per share | Vote | 1 | ||||||||||||||
Number of shares deemed issued | 8,226,592 | 11,073,226 | 1,578,904 | 8,226,592 | 11,073,226 | ||||||||||
Class B Ordinary Shares | |||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||
Par value of shares | $ / shares | $ 0.0001 | ||||||||||||||
Stock conversion basis | 1 | ||||||||||||||
Number of votes per share | Vote | 10 | ||||||||||||||
IPO | ADS | |||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||
Number of new shares issued (in shares) | 12,000,000 | 1,800,000 | 1,800,000 | ||||||||||||
Price per share | $ / shares | $ 9 | ||||||||||||||
Proceeds from initial public offering, net of issuance costs | ¥ 95,100 | $ 14,700 | |||||||||||||
IPO | Class A Ordinary Shares | |||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||
Number of new shares issued (in shares) | 24,000,000 | 3,600,000 | 3,600,000 | ||||||||||||
Par value of shares | $ / shares | $ 0.0001 |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Options to purchase ordinary shares and restricted share units | |||
Antidilutive securities excluded from computation of earnings per share | |||
Number of shares that were anti-dilutive and excluded from the calculation of diluted net (loss)/income per share | 17,525,547 | 21,959,786 | 9,826,578 |
Net Income Per Share - Computat
Net Income Per Share - Computation of Basic and Diluted Net Income Per Share (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) ¥ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | |
Numerator: | ||||
Net income attributable to ordinary shareholders | ¥ 1,065,945 | $ 150,137 | ¥ 819,752 | ¥ 2,333,923 |
Denominator: | ||||
Weighted average number of ordinary shares outstanding—basic | 328,523,952 | 328,523,952 | 348,048,245 | 368,460,867 |
Numerator: | ||||
Net income attributable to ordinary shareholders | ¥ 1,065,945 | $ 150,137 | ¥ 819,752 | ¥ 2,333,923 |
Interest expense associated with convertible notes reversed | ¥ | 73,807 | 46,903 | 44,865 | |
Net income attributable to ordinary shareholders for calculating diluted net income per share | ¥ | ¥ 1,139,752 | ¥ 866,655 | ¥ 2,378,788 | |
Denominator: | ||||
Weighted average number of ordinary shares outstanding—basic | 328,523,952 | 328,523,952 | 348,048,245 | 368,460,867 |
Ordinary shares issuable upon the conversion of convertible notes using the if—converted method | 28,237,965 | 28,237,965 | 42,857,143 | 42,857,143 |
Weighted average number of ordinary shares outstanding—diluted | 359,820,982 | 359,820,982 | 392,756,821 | 414,992,716 |
Net income per share attributable to ordinary shareholders—diluted | ¥ / shares | ¥ 3.17 | ¥ 2.21 | ¥ 5.73 | |
Ordinary shares | ||||
Denominator: | ||||
Net income per share attributable to ordinary shareholders—basic | (per share) | 3.24 | $ 0.46 | 2.36 | 6.33 |
Denominator: | ||||
Net income per share attributable to ordinary shareholders—diluted | (per share) | ¥ 3.17 | $ 0.45 | ¥ 2.21 | ¥ 5.73 |
Stock Options | ||||
Denominator: | ||||
Ordinary shares issuable of outstanding using the treasury stock method | 2,838,399 | 2,838,399 | 1,792,478 | 3,381,510 |
Restricted Share Units | ||||
Denominator: | ||||
Ordinary shares issuable of outstanding using the treasury stock method | 220,666 | 220,666 | 58,955 | 293,196 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |||
Contributions for employee benefits | ¥ 168.5 | ¥ 181.7 | ¥ 146.1 |
Statutory Reserves and Restri_2
Statutory Reserves and Restricted Net Assets (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Statutory Reserves And Restricted Net Assets [Abstract] | ||
Appropriation to the general reserve fund (as a percent) | 10% | |
Required subsidiaries registered capital to avoid net profit allocation to general reserve (as a percent) | 50% | |
Portion of after-tax profit to be allocated to statutory surplus fund under PRC law (as a percent) | 10% | |
Required statutory surplus fund/registered capital ratio to avoid net profit allocation to statutory surplus fund (as a percent) | 50% | |
Amount of net assets of the relevant PRC in the group, not available for distribution | ¥ 5,054 | ¥ 5,001 |
Percentage of restricted net assets | 52% |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Share-based Compensation Expenses (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
SHARE-BASED COMPENSATION | ||||
Share-based compensation expenses | ¥ 117,852 | ¥ 156,320 | ¥ 187,884 | |
Processing and servicing cost | ||||
SHARE-BASED COMPENSATION | ||||
Share-based compensation expenses | 246 | $ 35 | 5,179 | 9,968 |
Sales and marketing expenses | ||||
SHARE-BASED COMPENSATION | ||||
Share-based compensation expenses | 17,454 | 2,458 | 23,142 | 30,508 |
Research and development expenses | ||||
SHARE-BASED COMPENSATION | ||||
Share-based compensation expenses | 23,547 | 3,317 | 30,386 | 39,413 |
General and administrative expenses | ||||
SHARE-BASED COMPENSATION | ||||
Share-based compensation expenses | ¥ 76,605 | $ 10,790 | ¥ 97,613 | ¥ 107,995 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) | 1 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2023 CNY (¥) $ / shares shares | Mar. 31, 2023 CNY (¥) shares | Mar. 31, 2023 $ / shares | Aug. 31, 2018 CNY (¥) shares | Aug. 31, 2018 $ / shares | Oct. 31, 2017 shares | Dec. 31, 2023 CNY (¥) ¥ / shares shares | Dec. 31, 2023 CNY (¥) $ / shares | Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2022 CNY (¥) $ / shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | Dec. 31, 2021 $ / shares | ||
SHARE-BASED COMPENSATION | |||||||||||||
Income tax benefit | ¥ 0 | ¥ 0 | ¥ 0 | ||||||||||
Expiration period (in years) | 10 years | ||||||||||||
Option granted vesting period (in years) | 4 years | ||||||||||||
Granted (in shares) | shares | 23,570,000 | 9,219,000 | 13,736,000 | ||||||||||
Share-based compensation expenses | ¥ 117,852,000 | ¥ 156,320,000 | ¥ 187,884,000 | ||||||||||
Restricted Share Units | |||||||||||||
SHARE-BASED COMPENSATION | |||||||||||||
Option granted vesting period (in years) | 4 years | ||||||||||||
Share-based compensation expenses | ¥ 21,600,000 | ¥ 29,300,000 | 39,200,000 | ||||||||||
Period over which remaining unrecognized stock-based compensation expense is recognized | 3 years 7 months 6 days | ||||||||||||
Fair value and intrinsic value of restricted share units vested | ¥ 17,800,000 | ¥ 23,100,000 | ¥ 24,200,000 | ||||||||||
Unrecognized compensation cost related to unvested restricted share units | ¥ 12,900,000 | ¥ 12,900,000 | ¥ 12,900,000 | ||||||||||
Employees, Directors and Non-employee Directors | |||||||||||||
SHARE-BASED COMPENSATION | |||||||||||||
Weighted average grant date fair value of options granted (in CNY/dollars per share) | ¥ / shares | ¥ 5 | ¥ 4.8 | ¥ 23 | ||||||||||
Total intrinsic value of stock options | ¥ 8,900,000 | ¥ 5,100,000 | ¥ 78,500,000 | ||||||||||
Total share-based compensation expense recognized for stock options granted | ¥ 96,300,000 | ¥ 127,000,000 | ¥ 147,000,000 | ||||||||||
Granted (in shares) | shares | [1] | 8,695,000 | 8,639,000 | 13,489,000 | |||||||||
Exercised (in dollars per share) | $ / shares | ¥ 0.4644 | $ 0.3817 | $ 0.4529 | ||||||||||
Unrecognized compensation cost to be recognized and adjusted for future changes | ¥ 98,000,000 | ¥ 98,000,000 | ¥ 98,000,000 | ||||||||||
Period over which remaining unrecognized stock-based compensation expense is recognized | 1 year 10 months 24 days | ||||||||||||
Non-employees | |||||||||||||
SHARE-BASED COMPENSATION | |||||||||||||
Total share-based compensation expense recognized for stock options granted | ¥ 0 | ¥ 1,700,000 | |||||||||||
Exercised (in dollars per share) | $ / shares | $ 0.0001 | ||||||||||||
Unrecognized compensation cost to be recognized and adjusted for future changes | ¥ 0 | $ 0 | |||||||||||
2017 Share Incentive Plan | Employees, Directors and Non-employee Directors | |||||||||||||
SHARE-BASED COMPENSATION | |||||||||||||
Granted (in shares) | shares | 1,690,700 | 1,889,800 | 6,263,000 | 3,820,150 | |||||||||
Exercised (in dollars per share) | $ / shares | ¥ 0.92 | $ 1.53 | $ 5.15 | ||||||||||
Share-based compensation expenses | ¥ 530,000 | ¥ 16,900,000 | ¥ 13,400,000 | ||||||||||
Class A Ordinary Shares | 2017 Share Incentive Plan | |||||||||||||
SHARE-BASED COMPENSATION | |||||||||||||
Maximum number of ordinary shares authorized for stock based compensation | shares | 22,859,634 | ||||||||||||
Expiration period (in years) | 10 years | ||||||||||||
Annual increase percentage on number of shares issued and outstanding | 1% | ||||||||||||
Ordinary shares issued commencing date | Jan. 01, 2019 | ||||||||||||
[1] No stock options were granted to non-employee directors for the years presented. |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Number of Shares Available for Issuance (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Shares available for issuance | |||
Balance at the beginning of the period (in shares) | 7,340 | 6,633 | 11,527 |
Additions (in shares) | 3,698 | 3,677 | 3,641 |
Granted (in shares) | (23,570) | (9,219) | (13,736) |
Cancelled/forfeited (in shares) | 55,143 | 6,249 | 5,201 |
Balance at the end of the period (in shares) | 42,611 | 7,340 | 6,633 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of Activities for Stock Options (Details) ¥ in Thousands, shares in Thousands | 12 Months Ended | |||||||
Dec. 31, 2023 $ / shares shares | Dec. 31, 2022 $ / shares shares | Dec. 31, 2021 $ / shares shares | Dec. 31, 2020 CNY (¥) $ / shares shares | Dec. 31, 2023 CNY (¥) shares | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | ||
Options Outstanding | ||||||||
Granted (in shares) | 23,570 | 9,219 | 13,736 | |||||
Cancelled/forfeited (in shares) | (55,143) | (6,249) | (5,201) | |||||
Employees, Directors and Non-employee Directors | ||||||||
Options Outstanding | ||||||||
Balance at the beginning of the period (in shares) | 21,862 | 20,129 | 13,660 | |||||
Granted (in shares) | [1] | 8,695 | 8,639 | 13,489 | ||||
Exercised (in shares) | (1,927) | (890) | (2,426) | |||||
Cancelled/forfeited (in shares) | (10,773) | (6,016) | (4,594) | |||||
Balance at the end of the period (in shares) | 17,857 | 21,862 | 20,129 | 13,660 | ||||
Vested and expected to vest at the end of the period (in shares) | 17,258 | |||||||
Exercisable at the end of the period (in shares) | 8,717 | |||||||
Weighted Average Exercise Price | ||||||||
Balance at the beginning of the period (in dollars per share) | $ / shares | $ 0.6894 | $ 0.7227 | $ 1.7569 | |||||
Exercise Price | $ / shares | [1] | 1.2697 | 0.5 | 0.5000 | ||||
Exercised (in dollars per share) | $ / shares | 0.4644 | 0.3817 | 0.4529 | |||||
Cancelled/forfeited (in dollars per share) | $ / shares | 0.7456 | 0.6138 | 3.2215 | |||||
Balance at the end of the period (in dollars per share) | $ / shares | 0.8850 | $ 0.6894 | $ 0.7227 | $ 1.7569 | ||||
Vested and expected to vest at the end of the period (in dollars per share) | $ / shares | 0.8967 | |||||||
Exercisable at the end of the period (in dollars per share) | $ / shares | $ 0.6669 | |||||||
Weighted Average Remaining Contractual Life and Aggregate Intrinsic Value | ||||||||
Weighted average remaining contractual life (in years) | 7 years 5 months 4 days | 7 years 10 months 20 days | 8 years 5 months 4 days | 7 years 10 months 13 days | ||||
Vested and expected to vest at the end of the period, weighted average remaining contractual life | 7 years 4 months 24 days | |||||||
Exercisable at the end of the period, weighted average remaining contractual life | 5 years 11 months 26 days | |||||||
Aggregate Intrinsic Value | ¥ | $ 189,072 | ¥ 38,242 | ¥ 69,878 | ¥ 155,018 | ||||
Vested and expected to vest at the end of the period, Aggregate intrinsic value | ¥ | 36,126 | |||||||
Exercisable at the end of the period, Aggregate intrinsic value | ¥ | ¥ 27,010 | |||||||
Non-employees | ||||||||
Options Outstanding | ||||||||
Balance at the beginning of the period (in shares) | 250 | 250 | 410 | |||||
Exercised (in shares) | (160) | |||||||
Balance at the end of the period (in shares) | 250 | 250 | 250 | 410 | ||||
Vested and expected to vest at the end of the period (in shares) | 250 | |||||||
Exercisable at the end of the period (in shares) | 250 | |||||||
Weighted Average Exercise Price | ||||||||
Balance at the beginning of the period (in dollars per share) | $ / shares | $ 0.0001 | |||||||
Exercised (in dollars per share) | $ / shares | 0.0001 | |||||||
Balance at the end of the period (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||||||
Vested and expected to vest at the end of the period (in dollars per share) | $ / shares | 0.0001 | |||||||
Exercisable at the end of the period (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Weighted Average Remaining Contractual Life and Aggregate Intrinsic Value | ||||||||
Weighted average remaining contractual life (in years) | 3 years 6 months 29 days | 4 years 6 months 29 days | 5 years 6 months 29 days | 6 years 6 months 29 days | ||||
Vested and expected to vest at the end of the period, weighted average remaining contractual life | 3 years 6 months 29 days | |||||||
Exercisable at the end of the period, weighted average remaining contractual life | 3 years 6 months 29 days | |||||||
Aggregate Intrinsic Value | ¥ | $ 8,962 | ¥ 1,629 | ¥ 1,654 | ¥ 3,076 | ||||
Vested and expected to vest at the end of the period, Aggregate intrinsic value | ¥ | 1,629 | |||||||
Exercisable at the end of the period, Aggregate intrinsic value | ¥ | ¥ 1,629 | |||||||
[1] No stock options were granted to non-employee directors for the years presented. |
Share-Based Compensation - Sc_3
Share-Based Compensation - Schedule of Activities for Stock Options (Parenthetical) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SHARE-BASED COMPENSATION | |||
Granted (in shares) | 23,570,000 | 9,219,000 | 13,736,000 |
Non-employee directors | |||
SHARE-BASED COMPENSATION | |||
Granted (in shares) | 0 | 0 | 0 |
Share-Based Compensation - Sc_4
Share-Based Compensation - Schedule of Estimated Fair Value of Stock Option Granted (Details) - Employees, Directors and Non-employee Directors | 12 Months Ended | |||||
Dec. 31, 2023 ¥ / shares | Dec. 31, 2023 $ / shares ¥ / shares | Dec. 31, 2022 ¥ / shares | Dec. 31, 2022 $ / shares ¥ / shares | Dec. 31, 2021 $ / shares ¥ / shares | Dec. 31, 2021 $ / shares | |
Expected volatility, minimum | 45.96% | 45.96% | 47.26% | 47.26% | 46.68% | 46.68% |
Expected volatility, maximum | 46.68% | 46.68% | 47.52% | 47.52% | 47.79% | 47.79% |
Risk-free interest rate, minimum (per annum) | 3.58% | 3.58% | 2.41% | 2.41% | 1.11% | 1.11% |
Risk-free interest rate, maximum (per annum) | 3.97% | 3.97% | 4.07% | 4.07% | 1.64% | 1.64% |
Exercise multiples | ¥ / shares | ¥ 1.5 | ¥ 1.5 | ¥ 1.5 | ¥ 1.5 | ||
Expected term (in years) | 10 years | 10 years | 10 years | 10 years | 10 years | 10 years |
Fair value of the underlying shares on the date of grants (US$) | ¥ / shares | ¥ 5 | ¥ 4.8 | ¥ 23 | |||
Minimum | ||||||
Exercise multiples | ¥ 1.5 | $ 1.5 | ||||
Fair value of the underlying shares on the date of grants (US$) | ¥ 0.42 | ¥ 0.32 | 1.91 | |||
Maximum | ||||||
Exercise multiples | ¥ 2.5 | 2.5 | ||||
Fair value of the underlying shares on the date of grants (US$) | ¥ 1.66 | ¥ 1.48 | $ 6.31 |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Activities for Restricted Shares Units (Details) - Restricted Share Units - Employees, Directors and Non-employee Directors - $ / shares shares in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Options Outstanding | ||||
Balance at the beginning of the period (in shares) | 1,378 | 2,068 | 3,654 | |
Granted (in shares) | [1] | 14,875 | 580 | 247 |
Vested (in shares) | (880) | (1,037) | (1,226) | |
Cancelled/forfeited (in shares) | (233) | (607) | ||
Balance at the end of the period (in shares) | 15,373 | 1,378 | 2,068 | |
Weighted-Average Grant Date Fair Value | ||||
Balance at the beginning of the period (in dollars per share) | $ 3.17 | $ 5.02 | $ 5.27 | |
Granted (in dollars per share) | [1] | 1 | 0.93 | 3.21 |
Vested (in dollars per share) | 4.23 | 5.18 | 5.35 | |
Cancelled (in dollars per share) | 5.02 | 5.12 | ||
Balance at the end of the period (in dollars per share) | $ 1.01 | $ 3.17 | $ 5.02 | |
[1] No restricted share units were granted to non-employee directors for the years presented. |
Share-Based Compensation - Su_3
Share-Based Compensation - Summary of Activities for Restricted Shares Units (Parenthetical) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Non-employee directors | Restricted Share Units | |||
SHARE-BASED COMPENSATION | |||
Granted (in shares) | 0 | 0 | 0 |
Commitments and Contingencies -
Commitments and Contingencies - Debt Obligations (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Expected repayment amount of debt obligation | |||
Long-term borrowings | ¥ 524,000 | $ 73,842 | ¥ 150,430 |
Total debt obligations | 100,000 | 953,000 | |
Purchase obligations | |||
1 – 12 months | 1,101,855 | ||
Total | 1,101,855 | ||
Commitment for Construction | |||
Contractual Obligation | |||
1 - 12 months | 330,355 | ||
Total | 330,355 | ||
Commitment to Purchase Delinquent Loans | |||
Purchase obligations | |||
1 – 12 months | 771,500 | ||
Total | 771,500 | ||
Funding Debts Obligations | |||
Expected repayment amount of debt obligation | |||
1 – 12 months | 3,661,444 | ||
13 – 24 months | 464,581 | ||
Total debt obligations | 4,126,025 | ||
Interest payments | |||
1 – 12 months | 178,248 | ||
13 – 24 months | 8,781 | ||
Total interest payments | 187,029 | ||
Borrowings Obligations | |||
Expected repayment amount of debt obligation | |||
1 – 12 months | 502,013 | ||
1 - 12 months | 538,856 | ||
more than 36 months | 524,270 | ||
more than 36 months | 540,275 | ||
Long-term borrowings | 524,270 | ||
Total debt obligations | 502,013 | ||
Total borrowings obligations | 1,079,131 | ||
Interest payments | |||
1 – 12 months | 36,843 | ||
more than 36 months | 16,005 | ||
Total interest payments | 52,848 | ||
Convertible Notes | |||
Expected repayment amount of debt obligation | |||
1 – 12 months | 513,260 | ||
Interest payments | |||
1 – 12 months | 10,388 | ||
Total interest payments | 10,388 | ||
Convertible notes | 502,872 | ¥ 2,089,000 | |
Total convertible notes | 513,260 | ||
Liabilities to Funding Partners | Funding Debts Obligations | |||
Expected repayment amount of debt obligation | |||
1 – 12 months | 3,483,196 | ||
13 – 24 months | 455,800 | ||
Total debt obligations | ¥ 3,938,996 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Subsequent Events | Mar. 19, 2024 $ / shares |
Subsequent Event [Line Items] | |
Dividends payable, amount per share | $ 0.033 |
Dividends payable, approved and declared date | Mar. 19, 2024 |
Dividends payable, record date | Apr. 18, 2024 |
Dividends payable, date to be paid | May 24, 2024 |
ADS | |
Subsequent Event [Line Items] | |
Dividends payable, amount per share | $ 0.066 |
Parent Company Only Condensed_3
Parent Company Only Condensed Financial Information - Condensed Balance Sheets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) |
Current assets | ||||||
Cash and cash equivalents | ¥ 2,624,719 | $ 369,684 | ¥ 1,494,150 | $ 210,447 | ¥ 2,664,132 | ¥ 1,563,755 |
Amounts due from subsidiaries | 6,989 | 984 | 6,602 | |||
Prepayments and other current assets | 1,428,769 | 201,238 | 1,086,952 | |||
Total current assets | 18,503,018 | 2,606,096 | 17,782,108 | |||
Non-current assets | ||||||
Other assets | 861,491 | 121,338 | 1,048,301 | |||
Total non-current assets | 4,637,773 | 653,216 | 4,988,595 | |||
TOTAL ASSETS | 23,140,791 | 3,259,312 | 22,770,703 | |||
Current liabilities | ||||||
Amounts due to subsidiaries, the VIEs and the VIEs' subsidiaries | 2,958 | 417 | 4,669 | |||
Accrued interest payable | 4,389 | 12,354 | ||||
Accruals and other current liabilities | 4,434,254 | 624,552 | 3,057,469 | |||
Convertible notes | 505,450 | 71,191 | 2,063,545 | |||
Total current liabilities | 12,324,597 | 1,735,884 | 12,481,917 | |||
Non-current liabilities | ||||||
Deferred tax liabilities | 75,340 | 10,611 | 52,559 | |||
Total non-current liabilities | 1,106,112 | 155,792 | 1,640,035 | |||
TOTAL LIABILITIES | 13,430,709 | 1,891,676 | 14,121,952 | |||
SHAREHOLDERS’ EQUITY: | ||||||
Treasury Stock | (328,764) | (46,305) | (328,764) | $ (48,000) | ||
Additional paid-in capital | 3,204,961 | 451,406 | 3,081,254 | |||
Accumulated other comprehensive income | (13,545) | (1,908) | (20,842) | |||
Retained earnings | 5,740,611 | 808,548 | 4,894,273 | |||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 23,140,791 | 3,259,312 | 22,770,703 | |||
Class A Ordinary Shares | ||||||
SHAREHOLDERS’ EQUITY: | ||||||
Ordinary shares | 199 | 30 | 191 | |||
Class B Ordinary Shares | ||||||
SHAREHOLDERS’ EQUITY: | ||||||
Ordinary shares | 41 | 7 | 47 | |||
Parent | ||||||
Current assets | ||||||
Cash and cash equivalents | 48,030 | 6,765 | 1,517 | |||
Prepayments and other current assets | 6,717 | 946 | 8,314 | |||
Total current assets | 397,838 | 56,034 | 345,765 | |||
Non-current assets | ||||||
Investments in subsidiaries | 12,058,899 | 1,698,460 | 10,741,234 | |||
Other assets | 103 | 15 | 235 | |||
Total non-current assets | 12,059,002 | 1,698,475 | 10,741,469 | |||
TOTAL ASSETS | 12,456,840 | 1,754,509 | 11,087,234 | |||
Current liabilities | ||||||
Accrued interest payable | 2,095 | 295 | 9,385 | |||
Accruals and other current liabilities | 9,198 | 1,296 | 8,511 | |||
Convertible notes | 505,450 | 71,191 | 2,063,545 | |||
Total current liabilities | 2,746,758 | 386,873 | 2,438,483 | |||
Non-current liabilities | ||||||
TOTAL LIABILITIES | 2,746,758 | 386,873 | 2,438,483 | |||
Commitments and contingencies (Note 21) | ||||||
SHAREHOLDERS’ EQUITY: | ||||||
Treasury Stock | (328,764) | (46,305) | (328,764) | |||
Additional paid-in capital | 3,204,961 | 451,406 | 3,081,254 | |||
Accumulated other comprehensive income | (13,545) | (1,908) | (20,842) | |||
Retained earnings | 6,847,190 | 964,406 | 5,916,865 | |||
Total equity attributable to owners of the company | 9,710,082 | 1,367,636 | 8,648,751 | |||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 12,456,840 | 1,754,509 | 11,087,234 | |||
Parent | Class A Ordinary Shares | ||||||
SHAREHOLDERS’ EQUITY: | ||||||
Ordinary shares | 199 | 30 | 191 | |||
Parent | Class B Ordinary Shares | ||||||
SHAREHOLDERS’ EQUITY: | ||||||
Ordinary shares | 41 | 7 | 47 | |||
Parent | Affiliated Entity | ||||||
Current assets | ||||||
Amounts due from subsidiaries | 343,091 | 48,323 | 335,934 | |||
Current liabilities | ||||||
Amounts due to subsidiaries, the VIEs and the VIEs' subsidiaries | ¥ 2,230,015 | $ 314,091 | ¥ 357,042 |
Parent Company Only Condensed_4
Parent Company Only Condensed Financial Information - Condensed Balance Sheets (Parenthetical) (Details) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Class A Ordinary Shares | ||
Condensed Balance Sheet Statements Captions [Line Items] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 1,889,352,801 | 1,889,352,801 |
Common stock, shares issued | 300,707,476 | 300,707,476 |
Common stock, shares outstanding | 256,918,184 | 245,264,614 |
Class B Ordinary Shares | ||
Condensed Balance Sheet Statements Captions [Line Items] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 110,647,199 | 110,647,199 |
Common stock, shares issued | 71,342,227 | 80,189,163 |
Common stock, shares outstanding | 71,342,227 | 80,189,163 |
Parent | Class A Ordinary Shares | ||
Condensed Balance Sheet Statements Captions [Line Items] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 1,889,352,801 | 1,889,352,801 |
Common stock, shares issued | 300,707,476 | 300,707,476 |
Common stock, shares outstanding | 256,918,184 | 245,264,614 |
Parent | Class B Ordinary Shares | ||
Condensed Balance Sheet Statements Captions [Line Items] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 110,647,199 | 110,647,199 |
Common stock, shares issued | 71,342,227 | 80,189,163 |
Common stock, shares outstanding | 71,342,227 | 80,189,163 |
Parent Company Only Condensed_5
Parent Company Only Condensed Financial Information - Condensed Statements of Operations and Comprehensive Income (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Operating expenses: | ||||
General and administrative expenses | ¥ (387,387) | $ (54,562) | ¥ (431,571) | ¥ (470,661) |
Total operating expenses | (2,633,972) | (370,987) | (2,700,269) | (2,678,851) |
Interest expense, net | (50,483) | (7,110) | (55,636) | (63,125) |
Investment loss | (303,235) | (42,710) | (33,944) | (4,160) |
Others, net | 7,774 | 1,095 | 61,321 | 113,480 |
Income before income tax expense | 1,326,786 | 186,876 | 1,028,569 | 2,769,534 |
Income tax expense | (260,841) | (36,739) | (202,640) | (435,418) |
Other comprehensive income: | ||||
Foreign currency translation adjustments, net of tax | 7,297 | 1,028 | (32,115) | 7,965 |
Parent | ||||
Operating expenses: | ||||
General and administrative expenses | (15,749) | (2,218) | (15,082) | (19,109) |
Total operating expenses | (15,749) | (2,218) | (15,082) | (19,109) |
Interest expense, net | (73,750) | (10,387) | (46,912) | (44,865) |
Share of income from subsidiaries | 1,152,654 | 162,347 | 872,049 | 2,395,789 |
Investment loss | (1,980) | |||
Others, net | 2,790 | 395 | 9,697 | 11,239 |
Income before income tax expense | 1,065,945 | 150,137 | 819,752 | 2,341,074 |
Income tax expense | (7,151) | |||
Net income | 1,065,945 | 150,137 | 819,752 | 2,333,923 |
Other comprehensive income: | ||||
Foreign currency translation adjustments, net of tax | 7,297 | 1,028 | (32,115) | 7,965 |
Total comprehensive income attributable to ordinary shareholders | ¥ 1,073,242 | $ 151,165 | ¥ 787,637 | ¥ 2,341,888 |
Parent Company Only Condensed_6
Parent Company Only Condensed Financial Information - Condensed Statements of Cash Flows (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Condensed Cash Flow Statements Captions [Line Items] | ||||
Net cash (used in) / provided by operating activities | ¥ 2,787,052 | $ 392,549 | ¥ 98,844 | ¥ 2,667,419 |
Cash flows from investing activities: | ||||
Cash paid on long-term investments | (38,657) | |||
Cash paid on loans to third parties | (292,317) | |||
Net cash (used in)/ provided by investing activities | 2,334,452 | 328,800 | (2,409,037) | 414,615 |
Cash flows from financing activities: | ||||
Repurchase of treasury stock | (326,942) | |||
Dividends to shareholders | (135,620) | (19,102) | ||
Repayments of convertible loans | (1,634,678) | (230,240) | ||
Exercise of share-based awards | 5,880 | 828 | 2,742 | 7,124 |
Net cash (used in)/provided by financing activities | (3,852,432) | (542,605) | 1,111,669 | (1,779,534) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 3,914 | 552 | 9,893 | (23,592) |
Net increase/(decrease) in cash, cash equivalents and restricted cash | 1,272,986 | 179,296 | (1,188,631) | 1,278,908 |
Cash, cash equivalents and restricted cash at beginning of the year | 2,930,183 | 412,708 | 4,118,814 | 2,839,906 |
Cash, cash equivalents and restricted cash at end of the year | 4,203,169 | 592,004 | 2,930,183 | 4,118,814 |
Parent | ||||
Condensed Cash Flow Statements Captions [Line Items] | ||||
Net cash (used in) / provided by operating activities | (58,579) | (8,250) | (51,139) | 14,196 |
Cash flows from investing activities: | ||||
Cash paid on long-term investments | (18,868) | |||
Cash paid on acquisition of subsidiaries, net of cash acquired | (676) | |||
Proceeds from disposal of long-term investments | 65,537 | |||
Cash paid on loans to third parties | (22,317) | |||
Net cash used in funds to Group companies | (6,040) | (851) | 36,817 | (15,263) |
Net cash (used in)/ provided by investing activities | (6,040) | (851) | 36,141 | 9,089 |
Cash flows from financing activities: | ||||
Repurchase of treasury stock | (326,942) | |||
Dividends to shareholders | (135,620) | (19,102) | ||
Repayments of convertible loans | (1,634,678) | (230,240) | ||
Borrowings under loan from Group companies | 1,872,954 | 263,800 | 323,446 | |
Exercise of share-based awards | 5,880 | 828 | 2,742 | 7,124 |
Net cash (used in)/provided by financing activities | 108,536 | 15,286 | (754) | 7,124 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 2,596 | 366 | 15,424 | (29,410) |
Net increase/(decrease) in cash, cash equivalents and restricted cash | 46,513 | 6,551 | (328) | 999 |
Cash, cash equivalents and restricted cash at beginning of the year | 1,517 | 214 | 1,845 | 846 |
Cash, cash equivalents and restricted cash at end of the year | ¥ 48,030 | $ 6,765 | ¥ 1,517 | ¥ 1,845 |