Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2020shares | |
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, 2020 |
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 | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Document Accounting Standard | U.S. GAAP |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Entity Shell Company | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Entity Central Index Key | 0001708259 |
Amendment Flag | false |
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 | Craig Yan Zeng |
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 | 364,083,985 |
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 | 267,356,928 |
Class B Ordinary Shares | |
Entity Common Stock, Shares Outstanding | 96,727,057 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Current assets | |||
Cash and cash equivalents | ¥ 1,563,755 | $ 239,656 | ¥ 2,085,234 |
Restricted cash | 1,112,152 | 170,445 | 1,813,855 |
Restricted time deposits | 1,779,458 | 272,714 | 1,962,293 |
Short-term financing receivables, net of allowance for credit losses of RMB318,262 and RMB508,013 as of December 31, 2019 and 2020, respectively | 4,918,548 | 753,800 | 3,752,690 |
Loans at fair value | 381,393 | 58,451 | |
Accrued interest receivable, net of allowance for credit losses of nil and RMB1,681 as of December 31, 2019 and 2020, respectively | 79,793 | 12,229 | 54,284 |
Prepaid expenses and other current assets | 1,004,845 | 153,999 | 1,324,924 |
Amounts due from related parties | 941 | 144 | |
Deposits to insurance companies and guarantee companies | 1,066,281 | 163,415 | 1,251,003 |
Short-term guarantee receivables, net of allowance for credit losses of RMB49,833 and RMB58,771 as of December 31, 2019 and 2020, respectively | 756,197 | 115,892 | 1,183,278 |
Short-term contract assets and service fees receivable, net of allowance for credit losses of RMB94,894 and RMB65,607 as of December 31, 2019 and 2020, respectively | 3,707,649 | 568,222 | 2,971,976 |
Inventories, net | 47,170 | 7,229 | 106,781 |
Total current assets | 16,418,182 | 2,516,196 | 16,506,318 |
Non-current assets | |||
Restricted cash | 163,999 | 25,134 | 86,537 |
Restricted time deposits | 4,350 | ||
Long‑term financing receivables, net of allowance for credit losses of RMB55,283 and RMB21,149 as of December 31, 2019 and 2020, respectively | 204,761 | 31,381 | 658,798 |
Long-term guarantee receivables, net of allowance for credit losses of RMB750 and RMB16,994 as of December 31, 2019 and 2020, respectively | 218,654 | 33,510 | 281,699 |
Long-term contract assets and service fees receivable, net of allowance for credit losses of RMB2,845 and RMB18,970 as of December 31, 2019 and 2020, respectively | 481,989 | 73,868 | 482,875 |
Property, equipment and software, net | 125,694 | 19,263 | 92,553 |
Land use rights, net | 1,000,467 | 153,328 | |
Long‑term investments | 521,802 | 79,970 | 511,605 |
Deferred tax assets | 747,332 | 114,534 | 157,138 |
Other assets | 462,285 | 70,848 | 454,421 |
Total non-current assets | 3,926,983 | 601,836 | 2,729,976 |
TOTAL ASSETS | 20,345,165 | 3,118,032 | 19,236,294 |
Current liabilities | |||
Accounts payable (including amounts of the consolidated VIEs of RMB199,535 and RMB42,961 as of December 31, 2019 and 2020, respectively) | 42,961 | 6,584 | 201,837 |
Amounts due to related parties (including amounts of the consolidated VIEs of RMB40,804 and RMB67,514 as of December 31, 2019 and 2020, respectively) | 67,514 | 10,347 | 40,804 |
Short-term borrowings (including amounts of the consolidated VIEs of RMB1,923,691 and RMB1,751,633 as of December 31, 2019 and 2020, respectively) | 1,827,063 | 280,010 | 1,977,691 |
Short-term funding debts (including amounts of the consolidated VIEs of RMB3,755,528 and RMB4,685,935 as of December 31, 2019 and 2020, respectively) | 4,685,935 | 718,151 | 3,755,528 |
Accrued interest payable (including amounts of the consolidated VIEs of RMB74,866 and RMB26,972 as of December 31, 2019 and 2020, respectively) | 36,484 | 5,591 | 87,003 |
Guarantee liabilities (including amounts of the consolidated VIEs of RMB1,726,368 and nil as of December 31, 2019 and 2020, respectively) | 1,726,368 | ||
Deferred guarantee income (including amounts of the consolidated VIEs of nil and RMB694,582 as of December 31, 2019 and 2020, respectively) | 694,582 | 106,449 | |
Contingent guarantee liabilities (including amounts of the consolidated VIEs of nil and RMB1,738,787 as of December 31, 2019 and 2020, respectively) | 1,738,787 | 266,481 | |
Funds payable to Individual Investors (including amounts of the consolidated VIEs of RMB618,749 and nil as of December 31, 2019 and 2020, respectively) | 618,749 | ||
Accrued expenses and other current liabilities (including amounts of the consolidated VIEs of RMB1,134,178 and RMB2,509,671 as of December 31, 2019 and 2020, respectively) | 2,926,347 | 448,482 | 1,394,639 |
Total current liabilities | 12,019,673 | 1,842,095 | 9,802,619 |
Non-current liabilities | |||
Long-term funding debts (including amounts of the consolidated VIEs of RMB450,595 and RMB825,814 as of December 31, 2019 and 2020, respectively) | 825,814 | 126,562 | 450,595 |
Deferred tax liabilities (including amounts of the consolidated VIEs of RMB309,646 and RMB21,046 as of December 31, 2019 and 2020, respectively) | 21,046 | 3,225 | 309,646 |
Convertible notes | 1,920,227 | 294,288 | 2,046,051 |
Other long-term liabilities (including amounts of the consolidated VIEs of RMB21,079 and RMB23,218 as of December 31, 2019 and 2020, respectively) | 27,667 | 4,240 | 27,844 |
Total non-current liabilities | 2,794,754 | 428,315 | 2,834,136 |
TOTAL LIABILITIES | 14,814,427 | 2,270,410 | 12,636,755 |
Commitments and contingencies (Note 21) | |||
SHAREHOLDERS’ EQUITY: | |||
Additional paid-in capital | 2,724,006 | 417,472 | 2,519,886 |
Statutory reserves | 649,234 | 99,499 | 352,313 |
Accumulated other comprehensive (loss)/income | 3,308 | 507 | (7,288) |
Retained earnings | 2,113,956 | 323,978 | 3,734,397 |
Total equity attributable to owners of the company | 5,490,738 | 841,492 | 6,599,539 |
Non-controlling interests | 40,000 | 6,130 | |
TOTAL SHAREHOLDERS’ EQUITY | 5,530,738 | 847,622 | 6,599,539 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 20,345,165 | 3,118,032 | 19,236,294 |
Class A Ordinary Shares | |||
SHAREHOLDERS’ EQUITY: | |||
Ordinary shares | 176 | 27 | 170 |
Class B Ordinary Shares | |||
SHAREHOLDERS’ EQUITY: | |||
Ordinary shares | ¥ 58 | $ 9 | ¥ 61 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2019CNY (¥)shares |
Current assets | ||
Short-term financing receivables, allowance for credit losses | ¥ 508,013 | ¥ 318,262 |
Accrued interest receivable, allowance for credit losses | 1,681 | |
Short-term guarantee receivables, allowance for credit losses | 58,771 | 49,833 |
Short-term contract assets and service fees receivable, allowance for credit losses | 65,607 | 94,894 |
Non-current assets | ||
Long-term financing receivables, allowance for credit losses | 21,149 | 55,283 |
Long-term guarantee receivables, allowance for credit losses | 16,994 | 750 |
Long-term contract assets and service fees receivable, allowance for credit losses | 18,970 | 2,845 |
Current liabilities | ||
Accounts payable | 42,961 | 201,837 |
Amounts due to related parties | 67,514 | 40,804 |
Short-term borrowings | 1,827,063 | 1,977,691 |
Short-term Funding Debts | 4,685,935 | 3,755,528 |
Accrued interest payable | 36,484 | 87,003 |
Guarantee liabilities | 1,726,368 | |
Deferred guarantee income | 694,582 | |
Contingent guarantee liabilities | 1,738,787 | |
Funds payable to Individual Investors | 618,749 | |
Accrued expenses and other current liabilities | 2,926,347 | 1,394,639 |
Non-current liabilities | ||
Long-term Funding Debts | 825,814 | 450,595 |
Deferred tax liabilities | 21,046 | 309,646 |
Other long-term liabilities | ¥ 27,667 | ¥ 27,844 |
Class A Ordinary Shares | ||
Non-current liabilities | ||
Common stock, shares authorized | shares | 1,889,352,801 | 1,889,352,801 |
Common stock, shares issued | shares | 268,935,832 | 263,614,582 |
Common stock, shares outstanding | shares | 267,356,928 | 258,690,272 |
Class B Ordinary Shares | ||
Non-current liabilities | ||
Common stock, shares authorized | shares | 110,647,199 | 110,647,199 |
Common stock, shares issued | shares | 96,727,057 | 100,727,057 |
Common stock, shares outstanding | shares | 96,727,057 | 100,727,057 |
VIEs | ||
Current liabilities | ||
Accounts payable | ¥ 42,961 | ¥ 199,535 |
Amounts due to related parties | 67,514 | 40,804 |
Short-term borrowings | 1,751,633 | 1,923,691 |
Short-term Funding Debts | 4,685,935 | 3,755,528 |
Accrued interest payable | 26,972 | 74,866 |
Guarantee liabilities | 0 | 1,726,368 |
Deferred guarantee income | 694,582 | 0 |
Contingent guarantee liabilities | 1,738,787 | 0 |
Funds payable to Individual Investors | 0 | 618,749 |
Accrued expenses and other current liabilities | 2,509,671 | 1,134,178 |
Non-current liabilities | ||
Long-term Funding Debts | 825,814 | 450,595 |
Deferred tax liabilities | 21,046 | 309,646 |
Other long-term liabilities | ¥ 23,218 | ¥ 21,079 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | |
Operating revenue: | ||||
Operating revenue | ¥ 11,645,255 | $ 1,784,714 | ¥ 10,603,507 | ¥ 7,596,896 |
Operating cost: | ||||
Cost of sales (including cost of goods purchased from a related party of RMB614,766, RMB827,809 and nil for the years ended December 31, 2018, 2019 and 2020, respectively) | (1,907,508) | (292,338) | (3,624,301) | (2,440,613) |
Funding cost | (589,837) | (90,396) | (508,829) | (898,028) |
Processing and servicing cost (including collection service fee from related parties of nil, RMB9,291 and RMB28,645 for the years ended December 31, 2018, 2019 and 2020, respectively) | (1,413,212) | (216,584) | (642,126) | (324,005) |
Provision for credit losses of financing receivables | (779,235) | (119,423) | (708,684) | (884,056) |
Provision for credit losses of contract assets and receivables | (441,805) | (67,710) | (125,471) | (38,254) |
Provision for credit losses of contingent liabilities of guarantee | (2,880,590) | (441,470) | ||
Total operating cost | (8,012,187) | (1,227,921) | (5,609,411) | (4,584,956) |
Gross profit | 3,633,068 | 556,793 | 4,994,096 | 3,011,940 |
Operating expenses: | ||||
Sales and marketing expenses | (1,274,402) | (195,311) | (1,538,698) | (589,983) |
Research and development expenses | (474,265) | (72,684) | (415,995) | (320,165) |
General and administrative expenses | (451,284) | (69,162) | (412,117) | (279,859) |
Total operating expenses | (2,199,951) | (337,157) | (2,366,810) | (1,190,007) |
Change in fair value of financial guarantee derivatives, net | (707,442) | (108,420) | (212,256) | 197,027 |
Change in fair value of loans at fair value | (47,282) | (7,246) | ||
Gain on guarantee liabilities, net | ¥ | 196,063 | 108,316 | ||
Interest expense, net | (77,542) | (11,884) | (39,215) | (23,059) |
Investment-related impairment | (69,156) | (10,599) | (15,215) | |
Investment income | 7,885 | 1,208 | 52,211 | 18,753 |
Others, net | 146,029 | 22,380 | 82,422 | 1,773 |
Income before income tax expense | 685,609 | 105,075 | 2,706,511 | 2,109,528 |
Income tax expense | (90,629) | (13,890) | (411,959) | (132,222) |
Net income | 594,980 | 91,185 | 2,294,552 | 1,977,306 |
Net income attributable to ordinary shareholders | ¥ 594,980 | $ 91,185 | ¥ 2,294,552 | ¥ 1,977,306 |
Net income per ordinary share | ||||
Diluted | ¥ / shares | ¥ 1.56 | ¥ 6.14 | ¥ 5.45 | |
Weighted average number of ordinary shares outstanding | ||||
Basic | shares | 364,733,164 | 364,733,164 | 355,625,970 | 337,883,964 |
Diluted | shares | 411,229,810 | 411,229,810 | 375,831,131 | 362,762,561 |
Share-based compensation expenses included in: | ||||
Share-based compensation expenses | ¥ | ¥ 198,825 | ¥ 177,262 | ¥ 122,636 | |
Processing and servicing cost | ||||
Share-based compensation expenses included in: | ||||
Share-based compensation expenses | 11,391 | $ 1,746 | 10,472 | 8,111 |
Sales and marketing expenses | ||||
Share-based compensation expenses included in: | ||||
Share-based compensation expenses | 32,486 | 4,979 | 28,611 | 18,223 |
Research and development expenses | ||||
Share-based compensation expenses included in: | ||||
Share-based compensation expenses | 46,116 | 7,068 | 42,977 | 33,169 |
General and administrative expenses | ||||
Share-based compensation expenses included in: | ||||
Share-based compensation expenses | ¥ 108,832 | $ 16,679 | ¥ 95,202 | ¥ 63,133 |
Ordinary shares | ||||
Net income per ordinary share | ||||
Basic | (per share) | ¥ 1.63 | $ 0.25 | ¥ 6.45 | ¥ 5.85 |
Diluted | (per share) | 1.56 | 0.24 | 6.14 | 5.45 |
ADS | ||||
Net income per ordinary share | ||||
Basic | (per share) | 3.26 | 0.50 | 12.90 | 11.70 |
Diluted | (per share) | ¥ 3.13 | $ 0.48 | ¥ 12.29 | ¥ 10.90 |
Online direct sales | ||||
Operating revenue: | ||||
Operating revenue | ¥ 1,900,835 | $ 291,316 | ¥ 3,623,991 | ¥ 2,396,680 |
Membership services | ||||
Operating revenue: | ||||
Operating revenue | 113,107 | 17,334 | 112,558 | 124,066 |
Other Services | ||||
Operating revenue: | ||||
Operating revenue | 68,890 | 10,558 | 92,292 | 79,848 |
Online direct sales and services income | ||||
Operating revenue: | ||||
Operating revenue | 2,082,832 | 319,208 | 3,828,841 | 2,600,594 |
Loan facilitation and servicing fees-credit oriented | ||||
Operating revenue: | ||||
Operating revenue | 3,786,996 | 580,383 | 4,811,868 | 1,875,207 |
Interest and financial services income and other revenues | ||||
Operating revenue: | ||||
Operating revenue | 1,418,892 | 217,455 | 1,146,824 | 2,920,485 |
Guarantee income | ||||
Operating revenue: | ||||
Operating revenue | 2,319,693 | 355,509 | ||
Credit-oriented services income | ||||
Operating revenue: | ||||
Operating revenue | 7,525,581 | 1,153,347 | 5,958,692 | 4,795,692 |
Loan facilitation and servicing fees-performance based | ||||
Operating revenue: | ||||
Operating revenue | 1,930,835 | 295,913 | 648,516 | 149,341 |
Loan facilitation and servicing fees-volume based | ||||
Operating revenue: | ||||
Operating revenue | 106,007 | 16,246 | 167,458 | 51,269 |
Platform-based services income | ||||
Operating revenue: | ||||
Operating revenue | ¥ 2,036,842 | $ 312,159 | ¥ 815,974 | ¥ 200,610 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Commission fee from a related party | ¥ 2,087 | ||
Cost of goods purchased from a related party | 0 | ¥ 827,809 | ¥ 614,766 |
Collection service fee from a related party | ¥ 28,645 | ¥ 9,291 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | ¥ 594,980 | $ 91,185 | ¥ 2,294,552 | ¥ 1,977,306 |
Other comprehensive income | ||||
Foreign currency translation adjustments, net of nil tax | 10,596 | 1,624 | 7,020 | 643 |
Total comprehensive income | 605,576 | 92,809 | 2,301,572 | 1,977,949 |
Total comprehensive income attributable to ordinary shareholders | ¥ 605,576 | $ 92,809 | ¥ 2,301,572 | ¥ 1,977,949 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustments, tax | ¥ 0 | $ 0 | ¥ 0 | ¥ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) | Cumulative Effect Period Of Adoption AdjustmentCNY (¥) | Class A Ordinary Sharesshares | Class B Ordinary Sharesshares | Ordinary sharesClass A Ordinary SharesCNY (¥)shares | Ordinary sharesClass B Ordinary SharesCNY (¥)shares | Additional Paid in CapitalCNY (¥) | Statutory ReservesCNY (¥) | Accumulated Other Comprehensive (Loss)/IncomeCNY (¥) | (Accumulated Deficit)/ Retained EarningsCNY (¥) | (Accumulated Deficit)/ Retained EarningsCumulative Effect Period Of Adoption AdjustmentCNY (¥) | Non-controlling InterestCNY (¥) |
Balances as at beginning of the year at Dec. 31, 2017 | ¥ 1,701,526 | ¥ 209,542 | ¥ 142 | ¥ 68 | ¥ 2,110,957 | ¥ 55,861 | ¥ (14,951) | ¥ (450,551) | ¥ 209,542 | ||||
Balances as at beginning of the year (in shares) at Dec. 31, 2017 | shares | 217,070,940 | 110,647,199 | |||||||||||
Increase (Decrease) in Shareholders' Equity | |||||||||||||
Share issuance upon the underwriters’ exercise of over-allotment options, net of issuance costs | 95,125 | ¥ 2 | 95,123 | ||||||||||
Share issuance upon the underwriters' exercise of over-allotment options, net of issuance costs (in shares) | shares | 3,600,000 | ||||||||||||
Net income | 1,977,306 | 1,977,306 | |||||||||||
Exercise and vesting of share-based awards | 14 | ¥ 14 | |||||||||||
Exercise and vesting of share-based awards (in shares) | shares | 19,919,168 | ||||||||||||
Redesignation of Class B Ordinary Shares into Class A Ordinary Shares | ¥ 2 | ¥ (2) | |||||||||||
Redesignation of Class B Ordinary Shares into Class A Ordinary Shares | shares | 2,500,000 | (2,500,000) | |||||||||||
Share-based compensation expenses | 122,636 | 122,636 | |||||||||||
Appropriation to statutory reserves | 144,400 | 144,401 | (144,401) | ||||||||||
Foreign currency translation adjustments, net of nil tax | 643 | 643 | |||||||||||
Balances as at end of the year at Dec. 31, 2018 | 4,106,792 | ¥ 160 | ¥ 66 | 2,328,716 | 200,262 | (14,308) | 1,591,896 | ||||||
Balances as at end of the year (in shares) at Dec. 31, 2018 | shares | 243,090,108 | 108,147,199 | |||||||||||
Increase (Decrease) in Shareholders' Equity | |||||||||||||
Share issuance upon the initial public offering, net of issuance costs (in shares) | shares | 27,000,000 | ||||||||||||
Net income | 2,294,552 | 2,294,552 | |||||||||||
Exercise of share-based awards | 13,913 | ¥ 5 | 13,908 | ||||||||||
Exercise of share-based awards (in shares) | shares | 8,180,022 | ||||||||||||
Redesignation of Class B Ordinary Shares into Class A Ordinary Shares | ¥ 5 | ¥ (5) | |||||||||||
Redesignation of Class B Ordinary Shares into Class A Ordinary Shares | shares | 7,420,142 | (7,420,142) | |||||||||||
Share-based compensation expenses | 177,262 | 177,262 | |||||||||||
Appropriation to statutory reserves | 152,100 | 152,051 | (152,051) | ||||||||||
Foreign currency translation adjustments, net of nil tax | 7,020 | 7,020 | |||||||||||
Balances as at end of the year at Dec. 31, 2019 | 6,599,539 | ¥ (1,918,500) | ¥ 170 | ¥ 61 | 2,519,886 | 352,313 | (7,288) | 3,734,397 | ¥ (1,918,500) | ||||
Balances as at end of the year (in shares) at Dec. 31, 2019 | shares | 258,690,272 | 100,727,057 | 258,690,272 | 100,727,057 | |||||||||
Increase (Decrease) in Shareholders' Equity | |||||||||||||
Share issuance upon the initial public offering, net of issuance costs (in shares) | shares | 27,000,000 | ||||||||||||
Net income | 594,980 | $ 91,185 | 594,980 | ||||||||||
Exercise of share-based awards | 5,298 | ¥ 3 | 5,295 | ||||||||||
Exercise of share-based awards (in shares) | shares | 4,666,656 | ||||||||||||
Redesignation of Class B Ordinary Shares into Class A Ordinary Shares | ¥ 3 | ¥ (3) | |||||||||||
Redesignation of Class B Ordinary Shares into Class A Ordinary Shares | shares | 4,000,000 | (4,000,000) | |||||||||||
Share-based compensation expenses | 198,825 | 198,825 | |||||||||||
Appropriation to statutory reserves | 296,900 | 296,921 | (296,921) | ||||||||||
Foreign currency translation adjustments, net of nil tax | 10,596 | 1,624 | 10,596 | ||||||||||
Establishment of a partially held subsidiary | 40,000 | ¥ 40,000 | |||||||||||
Balances as at end of the year at Dec. 31, 2020 | ¥ 5,530,738 | $ 847,622 | ¥ 176 | ¥ 58 | ¥ 2,724,006 | ¥ 649,234 | ¥ 3,308 | ¥ 2,113,956 | ¥ 40,000 | ||||
Balances as at end of the year (in shares) at Dec. 31, 2020 | shares | 267,356,928 | 96,727,057 | 267,356,928 | 96,727,057 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Statement Of Stockholders Equity [Abstract] | ||||
Foreign currency translation adjustments, tax | ¥ 0 | $ 0 | ¥ 0 | ¥ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Cash flows from operating activities: | ||||
Net income | ¥ 594,980 | $ 91,185 | ¥ 2,294,552 | ¥ 1,977,306 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Amortization of debt issuance costs and discounts | 6,911 | 1,059 | 2,039 | 2,332 |
Share-based compensation expenses | 198,825 | 30,472 | 177,262 | 122,636 |
Amortization of the right-of-use assets | 53,860 | 8,254 | 47,895 | |
Depreciation and amortization | 53,400 | 8,189 | 39,945 | 30,398 |
Provision for credit losses of financing receivables | 779,235 | 119,423 | 708,684 | 884,056 |
Provision for credit losses of contract assets and receivables | 441,805 | 67,710 | 125,471 | 38,254 |
Provision for credit losses of contingent liabilities of guarantee | 2,880,590 | 441,470 | ||
Change in inventory provision | (394) | (60) | (1,007) | (3,334) |
Net change in fair value of financial guarantee derivatives | 707,442 | 108,420 | 212,256 | (197,027) |
Net change in fair value of loans at fair value | 47,282 | 7,246 | ||
Net gain on guarantee liabilities | (196,063) | (108,316) | ||
Deferred income tax | (503,520) | (77,168) | 59,923 | 58,176 |
Investment-related impairment | 69,156 | 10,599 | 15,215 | |
Gain on disposal of long-term investments | (8,553) | (1,311) | (6,128) | |
Fair value changes of long-term investments | (19,071) | (2,922) | (51,263) | (18,753) |
Share of results of an equity investee | 9,000 | 1,384 | 5,180 | 0 |
Fair value changes of other assets | 10,707 | 1,641 | ||
Foreign exchange loss/(gain) | (85,245) | (13,064) | (23,367) | 4,876 |
Changes in operating assets and liabilities: | ||||
Financing receivables related to online direct sales | 287,660 | 44,086 | 36,076 | 219,450 |
Accrued interest receivable | (27,190) | (4,167) | 28,659 | 46,679 |
Prepaid expenses and other current assets | 272,813 | 41,810 | (730,038) | (136,276) |
Deposits to insurance companies and guarantee companies | 184,722 | 28,310 | (1,251,003) | |
Amounts due from related parties | (941) | (144) | 9,447 | |
Guarantee receivables | 274,799 | 42,115 | (981,449) | (534,112) |
Contract assets and service fees receivable | (1,025,303) | (157,135) | (2,342,245) | (981,958) |
Other long-term liabilities | (177) | (27) | (34,394) | |
Inventories | 60,005 | 9,196 | (48,578) | 47,791 |
Other assets | (74,898) | (11,479) | (297,900) | 4,071 |
Accounts payable | (158,876) | (24,349) | 65,989 | (62,329) |
Amounts due to related parties | (3,333) | (511) | 1,354 | |
Accrued interest payable | (50,189) | (7,692) | (95,192) | (108,166) |
Guarantee liabilities | 1,493,860 | 587,471 | ||
Deferred guarantee income | (787,232) | (120,649) | ||
Contingent guarantee liabilities | (3,566,157) | (546,537) | ||
Funds payable to Individual Investors | (618,749) | (94,827) | (163,360) | 782,109 |
Land use rights | (1,000,467) | (153,328) | ||
Accrued expenses and other current liabilities | 786,019 | 120,463 | 144,338 | 114,714 |
Net cash provided by/(used in) operating activities | (211,019) | (32,338) | (778,504) | 2,794,710 |
Cash flows from investing activities: | ||||
Cash paid on long-term investments | (97,200) | (14,897) | (387,705) | (120,000) |
Proceeds from disposal of investments and refund of prepayment on long-term investments | 39,698 | 6,084 | 9,000 | |
Purchases of property, equipment and software | (86,573) | (13,268) | (49,865) | (54,226) |
Financing receivables originated and purchased (excluding receivables related to online direct sales) | (23,193,607) | (3,554,576) | (10,632,362) | (13,606,064) |
Principal collection on financing receivables and recoveries (excluding receivables related to online direct sales) | 21,447,154 | 3,286,920 | 11,899,784 | 17,721,142 |
Investments in loans at fair value | (7,067,271) | (1,083,106) | ||
Collection of principals of loans at fair value | 6,638,596 | 1,017,409 | ||
Placement of restricted time deposits | (1,831,869) | (280,746) | (2,486,643) | (604,736) |
Withdrawal of restricted time deposits | 2,014,643 | 308,758 | 864,212 | 267,874 |
Net cash provided by/(used in) investing activities | (2,136,429) | (327,422) | (783,579) | 3,603,990 |
Cash flows from financing activities: | ||||
Proceeds from non-controlling shareholders | 40,000 | 6,130 | ||
Proceeds from borrowings | 2,003,977 | 307,123 | 2,652,191 | 834,000 |
Principal payments on borrowings | (2,154,605) | (330,208) | (1,112,510) | (566,819) |
Proceeds from funding debts | 20,546,221 | 3,148,846 | 8,373,790 | 14,918,165 |
Principal payments on funding debts | (19,210,552) | (2,944,146) | (8,946,714) | (20,858,941) |
Proceeds from issuance of convertible notes, net of debt discount | 2,096,408 | |||
Payment of debt issuance costs | (24,048) | (636) | ||
Proceeds from share issuance upon the underwriters’ exercise of over-allotment options, net of issuance costs | 95,125 | |||
Exercise of share-based awards | 7,970 | 1,221 | 10,968 | 14 |
Payment of initial public offering expenses | (38,399) | |||
Proceeds from receivables from Pre-IPO Series C-1 preferred shareholders | 348,264 | 170,790 | ||
Repayment of liabilities to Pre-IPO Series C-1 preferred shareholders | (339,528) | (171,240) | ||
Net cash (used in)/ provided by financing activities | 1,233,011 | 188,966 | 3,058,821 | (5,617,941) |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (27,970) | (4,287) | (8,246) | (18,911) |
Net increase/(decrease) in cash and cash equivalents and restricted cash | (1,142,407) | (175,081) | 1,488,492 | 761,848 |
Cash and cash equivalents and restricted cash at beginning of the year | 3,985,626 | 610,824 | 2,497,134 | 1,735,286 |
Cash and cash equivalents at beginning of the year | 2,085,234 | 319,576 | 1,148,292 | 1,126,475 |
Restricted cash at beginning of the year | 1,900,392 | 291,248 | 1,348,842 | 608,811 |
Cash and cash equivalents and restricted cash at end of the year | 2,839,906 | 435,235 | 3,985,626 | 2,497,134 |
Cash and cash equivalents at beginning of the year | 1,563,755 | 239,656 | 2,085,234 | 1,148,292 |
Restricted cash at beginning of the year | 1,276,151 | 195,579 | 1,900,392 | 1,348,842 |
Supplemental disclosure of cash flows information | ||||
Cash paid for interest expense of borrowings and convertible notes | 120,125 | 18,410 | 32,252 | 25,468 |
Cash paid for income tax expense | 300,232 | 46,013 | ¥ 222,411 | 185,015 |
Cash paid for land use rights | 516,000 | 79,080 | ||
Non-cash investing and financing activities | ||||
Long-term investments financed by accrued expenses and other current liabilities | ¥ 36,414 | |||
Effect Due to the Adoption of ASC 326 (Note 2(g)) | ||||
Cash flows from financing activities: | ||||
Cash and cash equivalents and restricted cash at end of the year | ¥ (3,313) | $ (508) |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - CNY (¥) ¥ in Millions | 1 Months Ended | 12 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | Dec. 31, 2020 | |
Statement Of Cash Flows [Abstract] | |||
Finite-lived intangible assets, cash consideration | ¥ 1,000 | ||
First installment payment | ¥ 516 | ||
Second installment payment | ¥ 516 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2020 | |
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, variable interest entities (“VIEs”) and subsidiaries of the VIEs (collectively referred to as the “Group”). The Group offers online direct sales with installment payment terms and offers installment purchase loans and personal installment loans mainly through its online consumption and consumer finance platform (“Platform”), www.fenqile.com The Group addresses the Borrowers’ credit needs by offering installment purchase loans and personal installment loans. Installment purchase loans are loans offered to Borrowers who want to finance their online direct purchase from the Platform and APP with general terms between one month and thirty‑six months. Personal installment loans are loans provided to Borrowers who have consumption needs (other than online direct purchase) with terms generally ranging from one month to thirty‑six months. The Group primarily finances the loans to Borrowers with proceeds from third-party commercial banks, consumer finance companies and other licensed financial institutions (collectively “Institutional Funding Partners”). The Group also finances the loans through its own online investment platform, www.juzilicai.com Juzi Licai As of December 31, 2020, the Company’s principal subsidiaries, consolidated VIEs and subsidiaries of VIEs are as follows: Date of Incorporation/ Establishment Place of Incorporation/ Establishment Percentage of Direct or Indirect Economic Interest 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 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 Technology”) 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 Qianhai Juzi Information Technology Co., Ltd. (“Qianhai Juzi”) 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. (“Shenzhen Dingsheng Technology”) March 23, 2017 Shenzhen, PRC 100% Financial technology services Shenzhen Lexin Financing Guarantee Co., Ltd. (“Shenzhen Lexin Financing Guarantee”) September 14, 2017 Shenzhen, PRC 100% Financing guarantee services Beihai Aurora Technology Co., Ltd. (“Beihai Aurora”) June 19, 2018 Beihai, PRC 100% Financial technology 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 Qianhai Juzi in June 2014 in order to launch the Group’s online investment platform Juzi Licai 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 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 of the Group 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 of the Group 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 Company’s 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 financial results of these 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 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 RMB95.1 million (US$14.7 million), which represents a total gross capital raise of RMB105.2 million (US$16.2 million) less underwriting discounts and commissions and offering expenses in the aggregate amount of RMB10.1 million (US$1.5 million). . |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
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. Reclassification of prior-year presentation Starting from the second quarter of 2020, the Group reports revenue streams in three categories — online direct sales and services income, credit-oriented services income and platform-based services income, to provide more relevant information. The Group also revised the comparative period presentation to conform to current period classification. In providing credit-oriented services, the Group originates on-balance sheet loans, or facilitates the loan origination of off-balance sheet loans where the Group also provides guarantee services. Consequently, the Group takes all credit risks of borrowers in respect of on-balance sheet loans, and off-balance sheet loans through the relevant guarantee arrangements. By nature, revenue earned from off-balance sheet loans where the Group also provides guarantee services is recorded as “Loan facilitation and servicing fees-credit oriented” and “Guarantee income,” and interest income and other fees from on-balance sheet loans is recorded as “Interest and financial services income and other revenues.” In providing platform-based services, the Group does not provide guarantee services and takes no credit risks of borrowers in respect of principal and interests due to the lenders for off-balance sheet loans the Group facilitates. The Group either charges the service fees for loan facilitation and servicing at predetermined rates based on the performance of the underlying off-balance sheet loans, which is referred to as performance-based model, or charges the service fees primarily at predetermined rates of amount of loan originations upon successful matching of borrowing requests, which is referred to as volume-based model. Revenue from “Loan facilitation and servicing fees-credit oriented,” “Loan facilitation and servicing fees-performance based” and “Loan facilitation and servicing fees-volume based” were previously reported as one combined financial statement line item as “Loan facilitation and servicing fees” before the change of presentation. For online direct sales and services income, the Group reports the premium membership fees for the membership packages as “Membership services,” and the commission fee earned from third-party sellers for the online marketplace services the Group rendered and other services revenue as “Other services” within “Online direct sales and services income.” The premium membership fees, commission fee earned from third-party sellers and other services revenue were previously reported as “Services and others” within “Online direct sales and services income” before the change of presentation. Above changes in classification and presentation do not affect previously reported financial position, results of operations, and cash flows for the periods presented. Out-of-period adjustment For the year ended December 31, 2019, the Group recorded an out-of-period adjustment of RMB66.1 million to reduce financial services income, and corresponding RMB63.6 million of financing receivables and RMB2.5 million of contract assets and service fees receivable in the first quarter of 2019, to correct the cumulative effect of errors in recording discounts and interests waived in the periods prior to December 31, 2018. The Group has evaluated the effects of this out-of-period adjustment, both qualitatively and quantitatively, and concluded that the correction of this amount was not material to the Group’s financial position or results of operations for any prior periods or for the year ended December 31, 2019. (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, bears the risks of and enjoys the rewards normally associated with ownership of 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 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 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 but not limited to, 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. The Group’s relevant PRC subsidiaries are entitled to substantially all of the economic benefits of the VIEs. 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 VIEs’ subsidiaries and can have assets transferred out of the VIEs and 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 VIEs’ subsidiaries except for registered capitals and PRC statutory reserves of the Group’s consolidated VIEs amounting to RMB5,227.4 million as of December 31, 2020. 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 its VIEs and 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 VIEs’ subsidiaries in the consolidated financial statements. In March 2019, the Foreign Investment Law was approved by the National People’s Congress on March 15, 2019, 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 the Foreign Investment Law and its implementation regulations are relatively new, substantial uncertainties exist with respect to its implementation and interpretation and 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 financial statements of 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 its 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. In the opinion of the Company’s management, the contractual arrangements 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 VIEs’ subsidiaries in the consolidated financial statements. 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. 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 Company may be subject to fines or other actions. 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 Group’s 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 (including the consolidated Trusts and asset-backed securitized debts) and their subsidiaries taken as a whole, which were included in the Group’s consolidated financial statements with intercompany balances and transactions eliminated: As of December 31, 2019 2020 (RMB in thousands) Total assets 16,592,936 18,748,833 Total liabilities 12,659,845 17,381,265 For the Year Ended December 31, 2018 2019 2020 (RMB in thousands) Revenue from third parties 7,596,896 10,603,507 11,579,992 Revenue from the Company and its subsidiaries — 5,210 449 Total operating revenue 7,596,896 10,608,717 11,580,441 Net income 1,088,805 1,691,019 816,113 For the Year Ended December 31, 2018 2019 2020 (RMB in thousands) Net cash provided by/(used in) operating activities 2,158,663 (1,299,951 ) 1,442,592 Net cash (used in)/provided by investing activities 3,783,432 763,395 (2,905,743 ) Net cash provided by/(used in) financing activities (4,540,746 ) 872,227 1,242,610 Net increase in cash and cash equivalents and restricted cash 1,401,349 335,671 (220,541 ) Cash and cash equivalents and restricted cash at beginning of the year 1,060,785 2,462,134 2,797,805 Effect on the cash and cash equivalents at beginning of the year due to the adoption of ASC 326 (Note 2(g)) — — (2,326 ) Cash and cash equivalents and restricted cash at end of the year 2,462,134 2,797,805 2,574,938 (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 of financing receivables, contract assets, service fees receivable and guarantee receivables; (iii) fair value determination of financial guarantee at loan inceptions; (iv) initial recognition and subsequent measurement of guarantee derivatives at fair value; (v) loans at fair value and (vi) determination of contingent guarantee liabilities. 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, 2018,2019 and 2020 were gain of RMB0.6 million, gain of RMB7.0 million, and gain of RMB10.6 million, respectively. Foreign currency exchange gain or loss recorded was immaterial for each of the periods presented. (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, 2020 are solely for the convenience of the readers and were calculated at the rate of US$1.00=RMB6.5250, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 31, 2020. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2020, 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; (2) the Individual Investors on Juzi Licai On‑balance sheet loans (a) Loans funded by the Individual Investors on Juzi Licai under the Old Model (as defined hereinafter) or certain Institutional Funding Partners For loans funded by the proceeds from the Group’s own online investment platform Juzi Licai The Group noted that the terms of the underlying loan agreements between the Individual Investors or Institutional Funding Partners and the Borrowers (“Underlying Loan Agreements”) did not necessarily match the terms of the Investment Programs or Agreements. The mismatch was mainly due to the fact that some Individual Investors or Institutional Funding Partners may invest in the programs that had shorter investment periods than the terms of the Underlying Loan Agreements. Depending on the types of Investment Programs the Individual Investors choose or the Investment Agreements the Institutional Funding Partners entered into with the Group, the investing periods could be as short as one week he underlying loans were recorded as “Financing receivables, net” on the Consolidated Balance Sheets. As of December 31, 2020, loans funded by the Individual Investors on Juzi Licai (b) 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 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 (a) 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. (b) Loans funded by the Individual Investors on Juzi Licai under the New Model (as defined hereinafter) In late April 2018, the Group made some adjustments Juzi Licai Juzi Licai Juzi Licai the terms of Under the New Model, the Group acted as an intermediary between the Borrower and the Individual Investors. Pursuant to the Underlying Loan Agreement and the Investment Programs, the Individual Investors were entitled to all the interests generated from the underlying loans. Such interests were not generated until the lending relationship has been established between the Borrowers and the Individual Investors, as the lenders, upon entering into the Underlying Loan Agreements. The existing Individual Investor cannot exit from any lending relationship of outstanding loan unless the underlying loan was fully repaid or the outstanding loan principal with the remaining term was successfully re-matched with other Individual Investors. The Group provided ongoing matching and re-matching services to the Individual Investors over the terms of respective Investment Programs while it did not have any obligations to ensure such successful re-matching. The Group considered the terms of the Underlying Loan Agreements and the Investment Programs under the New Model and concluded that the Group was not the legal lender or borrower in the loan origination and repayment process. Accordingly, the Group did not record financing receivables arising from these loans nor Funding Debts to the Individual Investors. The balances of funds payable to Individual Investors represented the investment funds received from the Individual Investors on Juzi Licai As of 2020-12-31, loans funded by the Individual Investors o n Juzi Licai under the Risk safeguard scheme on Juzi Licai Under the New Model, the Group entered into a cooperation agreement with an independent third-party guarantee company (the “Guarantee Company”), to set up a new investor protection program called the Risk Safeguard Scheme (“RSS”). The purpose of the RSS was to provide make-up payments to the Individual Investors on Juzi Licai when the Borrowers default. The RSS only applied to loans newly funded under the New Model and required the Borrowers to contribute to the RSS to protect the Individual Investors. By default, all Borrowers enrolled in the RSS when the Underlying Loan Agreements were entered into. Pursuant to the Underlying Loan Agreement, the Borrower agreed to enroll in the RSS and pay the guarantee fee (the “Guarantee Fee”) into the guarantee fund special account (“Risk Safeguard Fund”) and the relevant guarantee service fees to the Guarantee Company. Accordingly, a certain amount of each monthly repayment from the Borrowers, equal to a certain percentage of the outstanding principal balance of each loan, should be transferred to the Risk Safeguard Fund. The Group had the discretion in determining the percentage, i.e. the amount of the Guarantee Fee, to be paid by the participating Borrowers. The amount of make-up payments was limited to the available balance of the Risk Safeguard Fund. If the Risk Safeguard Fund become insufficient to pay back all Individual Investors with defaulted loans, these Individual Investors would be repaid on a pro rata basis, and their outstanding unpaid loans will be deferred to the next time the Risk Safeguard Fund were replenished, at which time a distribution would again be made to all Individual Investors with those defaulted loans. Therefore, t Guarantees 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 interest and financial services income over the terms of the financing receivables using the effective interest rate method. Refer to Note 2( m ) 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. (a) Accrued interest receivable Accrued interest income on financing receivables is calculated based on the contractual interest rate of the loan and recorded as interest and financial services 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. (b) Nonaccrual financing receivables and charged‑off financing receivables 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. Interest and financial services income for nonaccrual 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 interest and financial services income. The Group does not resume accrual of interest after a loan has been placed on nonaccrual status. (g) Allowance for credit losses The Grou |
Financing Receivables, Net
Financing Receivables, Net | 12 Months Ended |
Dec. 31, 2020 | |
Notes Receivable Net [Abstract] | |
Financing Receivables, Net | 3. FINANCING RECEIVABLES, NET Financing receivables, net as of December 31, 2019 and 2020 consisted of the followings: As of December 31, 2019 2020 (RMB in thousands) Short-term: Installment purchase loans 748,717 457,407 Personal installment loans 3,322,235 4,969,154 Total short-term financing receivables 4,070,952 5,426,561 Allowance for credit losses (318,262 ) (508,013 ) Total short-term financing receivables, net 3,752,690 4,918,548 Long-term: Installment purchase loans 169,080 127,265 Personal installment loans 545,001 98,645 Total long-term financing receivables 714,081 225,910 Allowance for credit losses (55,283 ) (21,149 ) Total long-term financing receivables, net 658,798 204,761 These balances represent short‑term and long‑term financing receivables generated from installment purchase loans and personal installment loans transacted on the Group’s Platform and APP with an original term generally up to three years and do not have collateral. The weighted average interest rates of these financing receivables were 24.7% and 24.9% as of December 31, 2019 and 2020, respectively. As of December 31, 2019, installment purchase loans and personal installment loans that were charged-off in accordance with the Group’s standard charge-off policy were RMB141.5 million and RMB1,995.0 million, respectively. As of December 31, 2020, installment purchase loans and personal installment loans that were charged-off in accordance with the Group’s standard charge-off policy were RMB186.9 million and RMB2,802.9 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, 2019 and 2020: As of December 31, 2019 2020 (RMB in thousands) Due in months 0 - 12 4,070,952 5,426,561 13 - 24 621,957 182,107 25 - 36 92,075 23,388 Thereafter 49 20,415 Total financing receivables 4,785,033 5,652,471 The activities in the provision for credit losses of financing receivables for the years ended December 31, 2018, 2019 and 2020, respectively, consisted of the following: For the year ended December 31, 2018 2019 2020 (RMB in thousands) Beginning balances (370,196 ) (384,036 ) (373,545 ) Cumulative effect due to the adoption of ASC 326 (Note 2(g)) — — (229,661 ) Provision for credit losses (884,056 ) (708,684 ) (779,235 ) Charge-offs 974,483 815,421 1,078,705 Recoveries from prior charge-offs (104,267 ) (96,246 ) (225,426 ) Ending balances (384,036 ) (373,545 ) (529,162 ) Aging analysis of past due financing receivables as of December 31, 2019 and 2020 are as follows: RMB in thousands 1 - 29 Days Past Due 30 - 59 Days Past Due 60 - 89 Days Past Due 90 - 179 Days Past Due 180 Days or Greater Past Due Total Past Due Current Total Installment purchase loans 9,160 5,197 4,217 9,636 — 28,210 889,587 917,797 Personal installment loans 149,574 86,792 74,208 180,822 — 491,396 3,375,840 3,867,236 December 31, 2019 158,734 91,989 78,425 190,458 — 519,606 4,265,427 4,785,033 Installment purchase loans 7,086 4,508 3,839 11,884 — 27,317 557,355 584,672 Personal installment loans 152,523 74,396 54,217 165,982 — 447,118 4,620,681 5,067,799 December 31, 2020 159,609 78,904 58,056 177,866 — 474,435 5,178,036 5,652,471 Financing receivables amounting to RMB190.5 million and RMB177.9 million as of December 31, 2019 and 2020, respectively, were in non‑accrual status. Interest and financial services 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 interest and financial services income. For the years ended December 31, 2018, 2019 and 2020, interest and late payment fees earned from non‑accrual financing receivables were RMB102.8million, RMB53.9million and RMB 78.8 million respectively. As of December 31, 2019 and 2020, financing receivables amounting to RMB420.4 million and RMB325.7 million have been pledged as collaterals pursuant to investment agreements with certain Institutional Funding Partners (Note 10). Credit Quality Indicators The Group developed its credit assessment model based on the historical delinquency performance of the Borrowers as well as information submitted in the Borrowers’ credit applications. The credit assessment model is designed to predict the likelihood that a Borrower will be delinquent in the future. The Group assigns one of the seven credit risk levels to each Borrower, with risk level A representing the lowest risk, risk level F representing the highest risk and risk level N representing Borrowers who are approved for trial purposes only and will be separately tracked accordingly. The key factors the Group considers in determining the credit risk level of each Borrower include geographic location, education background, level of income, etc. The determination of the credit ratings also incorporates assumptions with respect to the nature of and outlook for the borrower’s industry and the economic environment. The Group updates the information for each of the risk levels on a daily basis. The following tables present the amortized cost of installment purchase loans within each credit quality indicator by year of origination for five origination years and beyond, due to the adoption of ASC 326, as of December 31, 2020: Loans originated in Risk Level 2016 and before 2017 2018 2019 2020 Total (RMB in thousands) A — 32 9,128 38,554 165,595 213,309 B — 23 6,454 29,391 107,029 142,897 C — 39 3,877 25,966 100,172 130,054 D — 13 2,291 16,737 70,179 89,220 E — 1 90 548 2,505 3,144 F — 5 415 1,254 4,373 6,047 N and others — — — — 1 1 Total — 113 22,255 112,450 449,854 584,672 The following tables present the amortized cost of personal installment loans within each credit quality indicator by year of origination for five origination years and beyond, due to the adoption of ASC 326, as of December 31, 2020: Loans originated in Risk Level 2016 and before 2017 2018 2019 2020 Total (RMB in thousands) A — 667 8,864 28,794 873,365 911,690 B — 457 7,488 31,108 931,876 970,929 C — 627 7,563 57,490 1,261,182 1,326,862 D — 177 5,200 73,001 1,181,795 1,260,173 E — 13 239 6,859 190,602 197,713 F — 49 1,348 27,267 328,597 357,261 N and others — 32 2,555 25,021 15,563 43,171 Total — 2,022 33,257 249,540 4,782,980 5,067,799 The following tables present the net recorded investment of financing receivables within each credit quality indicator as of December 31, 2019 and 2020: As of December 31, 2019 As of December 31, 2020 Installment Purchase Loans Personal Installment Loans Installment Purchase Loans Personal Installment Loans (RMB in thousands) (RMB in thousands) Risk level: A 383,566 612,958 213,309 911,690 B 262,504 760,986 142,897 970,929 C 133,526 528,162 130,054 1,326,862 D 84,779 771,854 89,220 1,260,173 E 32,136 593,564 3,144 197,713 F 20,665 378,408 6,047 357,261 N and others 621 221,304 1 43,171 Total 917,797 3,867,236 584,672 5,067,799 |
Contract Assets and Service Fee
Contract Assets and Service Fees Receivable, Net and Guarantee Receivables, Net | 12 Months Ended |
Dec. 31, 2020 | |
Accounts Receivable Net [Abstract] | |
Contract Assets and Service Fees Receivable, Net and Guarantee Receivables, Net | 4. CONTRACT ASSETS AND SERVICE FEES RECEIVABLE, NET AND GUARANTEE RECEIVABLES, NET The following table provides information about the Group’s contract assets and service fees receivable and guarantee receivables with its customers: As of December 31, 2019 2020 (RMB in thousands) Short-term: Contract assets 2,799,430 2,964,670 Allowance for credit losses of contract assets (18,582 ) (22,923 ) Contract assets, net 2,780,848 2,941,747 Service fees receivable 267,440 808,586 Allowance for credit losses of service fees receivable (76,312 ) (42,684 ) Service fees receivable, net 191,128 765,902 Guarantee receivables 1,233,111 814,968 Allowance for credit losses of guarantee receivables (49,833 ) (58,771 ) Guarantee receivables, net 1,183,278 756,197 Long-term: Contract assets 485,720 500,959 Allowance for credit losses of contract assets (2,845 ) (18,970 ) Contract assets, net 482,875 481,989 Guarantee receivables 282,449 235,648 Allowance for credit losses of guarantee receivables (750 ) (16,994 ) Guarantee receivables, net 281,699 218,654 The activities in the provision for credit losses of contract assets and service fees receivable and guarantee receivables for the years ended December 31, 2019 and 2020, respectively, consisted of the following: For the Year Ended December 31, 2019 2020 (RMB in thousands) Beginning balances (54,058 ) (148,322 ) Cumulative effect due to the adoption of ASC 326 (Note 2(g)) — (66,433 ) Provisions (153,176 ) (441,805 ) Charge-offs 68,072 529,380 Recoveries from prior charge-offs (9,160 ) (33,162 ) Ending balances (148,322 ) (160,342 ) |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2020 | |
Prepaid Expense And Other Assets Current [Abstract] | |
Prepaid Expenses and Other Current Assets | 5. PREPAID EXPENSES AND OTHER CURRENT ASSETS As of December 31, 2019 2020 (RMB in thousands) Receivables from third-party payment service providers (i) 355,159 587,168 Deposits to Institutional Funding Partners (ii) 495,488 288,215 Prepayment to inventory suppliers 54,486 59,586 Prepaid input value-added tax 54,436 33,695 Staff advances 21,219 12,694 Guarantee derivative assets at fair value (Note 9) 280,998 — Rental deposits and other current assets 63,138 23,487 Total prepaid expenses and other current assets 1,324,924 1,004,845 (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 Individual Investors or 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. |
Property, Equipment and Softwar
Property, Equipment and Software, Net | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Property, Equipment and Software, Net | 6. PROPERTY, EQUIPMENT AND SOFTWARE, NET As of December 31, 2019 2020 (RMB in thousands) Computers and equipment 95,336 138,188 Furniture and fixtures 12,316 15,539 Leasehold improvement 35,499 56,462 Software 36,900 41,849 Construction in progress — 12,572 Total property, equipment and software 180,051 264,610 Accumulated depreciation and amortization (87,498 ) (138,916 ) Total property, equipment and software, net 92,553 125,694 Depreciation and amortization expenses on property, equipment and software for the years ended December 31, 2018, 2019 and 2020 were RMB30.4 million, RMB39.9 million and RMB53.4 million, respectively. |
Land Use Rights, Net
Land Use Rights, Net | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Land Use Rights, Net | 7. LAND USE RIGHTS, NET For the year ended December 31, (RMB in thousands) Gross carrying amount 1,032,000 Accumulated amortization (31,533 ) Impairment — Net carrying amount 1,000,467 Land use rights represent the land 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 RMB1.0 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 RMB516.0 million in February 2020, and the second installment payment of RMB516.0 million in February 2021. Amortization expense related to land use rights for the year ended December 31, 2020 was RMB31.5 million. As of December 31, 2020, amortization expenses for future periods are estimated to be as follows: For the year ended December 31, (RMB in thousands) 2021 34,400 2022 34,400 2023 34,400 2024 34,400 2025 34,400 Thereafter 828,467 Total expected amortization expenses 1,000,467 |
Long-Term Investments
Long-Term Investments | 12 Months Ended |
Dec. 31, 2020 | |
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 accounted for using the measurement alternative primarily included the investment in common shares of a privately held commercial bank in China, as well as the investments in preferred shares that are not considered as in-substance ordinary shares in two privately held companies, each of which operates an online consumer finance platform in India and the U.S., respectively. These equity investments do not have readily determinable fair value and are accounted for using the measurement alternative. The carrying value of the Group’s equity investments accounted for using the measurement alternative was RMB344.4 million and RMB264.2 million as of December 31, 2019 and 2020, respectively. Unrealized upward adjustments of fair value of equity investments for the years ended December 31, 2018, 2019 and 2020 were RMB18.8million, RMB70.0million and RMB87.8 million for the observable price changes in orderly transactions for the identical or similar investment of the same issuer. In 2018, the Group recognized RMB15.2 million impairment related to investments without readily determinable fair value and no other downward adjustment was related to investments without readily determinable fair value. There were no impairment charges to the equity investments accounted for using the measurement alternative for the year ended December 31, 2019. In 2020, the Group recognized RMB69.2 million impairment related to investments without readily determinable fair value due to the lower-than-expected financial performance, and no other downward adjustment was related to investments without readily determinable fair value. The following table summarizes the total carrying value of the Group’s equity investments accounted for using the measurement alternative as of December 31, 2019 and December 31, 2020 including cumulative unrealized upward or downward adjustments and impairment charges: As of December 31, 2019 2020 (RMB in thousands) Initial cost basis 286,842 263,532 Cumulative unrealized upward adjustments 70,016 87,813 Cumulative impairment charges (15,215 ) (84,371 ) Cumulative foreign currency translation adjustments 2,719 (2,823 ) Total carrying value at end of the period 344,362 264,151 Equity investments accounted for using the equity method As of December 31, 2019, and December 31, 2020, the Group’s equity investments accounted for using the equity method totaled RMB7.8 million and RMB101.9 million, respectively. In 2019, the Group invested in a joint venture in Indonesia over which it can exercise significant influence but does not control with a cash consideration of RMB13.0 million. In 2020, the Group further invested in the joint venture in Indonesia with a cash consideration of RMB15.0 million. In addition, the Group invested in three joint ventures in China over which it can exercise significant influence but does not control with a cash consideration of RMB88.0 million. For the years ended December 31, 2018, 2019 and 2020, the Group recorded investment loss of nil, RMB5.2 million and RMB9.0 million, respectively, as a result of its proportionate share of equity investees’ net losses. No impairment charges were recognized for the years ended December 31, 2018, 2019 and 2020, respectively. 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 RMB120.0 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. The Group has the intent and ability to hold the loan to maturity or payoff. As of December 31, 2019, and 2020, the Group’s loan receivable recorded at amortized cost was RMB159.4 million and RMB155.8 million. The Group adopted ASC 326 on January 1, 2020 and recorded an allowance for credit losses of the debt instrument of RMB3.6 million as of January 1, 2020. As of December 31, 2020, the Group’s loan receivable, net of allowance for credit losses was RMB155.8 million. The interest income in relation to this loan receivable were RMB1.5 million, RMB1.5 million and nil for the years ended December 31, 2018, 2019 and 2020, respectively. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2020 | |
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, 2019 and 2020: December 31, 2019 Level 1 Inputs Level 2 Inputs Level 3 Inputs Balances at Fair Value (RMB in thousands) Assets Restricted time deposits-current portion — 1,962,293 — 1,962,293 Restricted time deposits‑noncurrent portion — 4,350 — 4,350 Guarantee derivative assets — — 280,998 280,998 Total assets — 1,966,643 280,998 2,247,641 December 31, 2020 Level 1 Inputs Level 2 Inputs Level 3 Inputs Balances at Fair Value (RMB in thousands) Assets Restricted time deposits-current portion — 1,779,458 — 1,779,458 Loans at fair value — — 381,393 381,393 Total assets — 1,779,458 381,393 2,160,851 Liabilities Guarantee derivative liabilities — — 252,613 252,613 Total liabilities — — 252,613 252,613 The fair value of the Group’s restricted time deposits 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, 2019 and 2020: Range of Inputs December 31, 2019 December 31, 2020 Financial Instrument Unobservable Input Minimum Maximum Weighted- Average Minimum Maximum Weighted- Average Guarantee derivatives Cumulative loss rates (i) 1.4 % 13.6 % 3.3 % 3.1 % 13.3 % 6.3 % Margins on cost of guarantee services 35.0 % 35.0 % 35.0 % 10.0 % 10.0 % 10.0 % Loans at fair value Expected future recovery rates (ii) N/A N/A N/A 9.8 % 9.8 % 9.8 % (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, 2018 2019 2020 (RMB in thousands) Fair value of guarantee derivative liabilities/(assets) at beginning of the year (Level 3) 30,958 52,434 (280,998 ) Cash collection 449,778 1,108,398 1,107,646 Net cash payout (231,275 ) (1,151,504 ) (1,281,477 ) Change in fair value(i) (197,027 ) 212,256 707,442 Transfers of financial guarantee contracts (Note2(j)) — (502,582 ) — Fair value of guarantee derivative liabilities/(assets) at end of the year (Level 3) 52,434 (280,998 ) 252,613 (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, 2020 (RMB in thousands) Fair value of loans acquired/purchased at beginning of the year (Level 3) — Fair value at inception of loans acquired/purchased 7,067,271 Cash collection (6,638,596 ) Change in fair value(i) (47,282 ) Fair value of loans acquired/purchased at end of the year (Level 3) 381,393 (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, 2019 and 2020, respectively, given hypothetical changes in the cumulative loss rates: As of December 31, 2019 2020 (RMB in thousands, except for percentages) Weighted average cumulative loss rates(i) 3.3 % 6.3 % Decrease/(increase) in fair value of guarantee derivative assets if the cumulative loss rates: Increase by 10% (ii) 84,373 — Decrease by 10% (ii) (84,373 ) — Increase/(decrease) in fair value of guarantee derivative liabilities if the cumulative loss rates: Increase by 10% (ii) — 188,349 Decrease by 10% (ii) — (188,349 ) (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, 2020, given hypothetical changes in the expected future recovery rates: For the Year Ended December 31, 2020 (RMB in thousands, except for percentages) Weighted average expected future recovery rates(i) 9.8 % Increase/(decrease) in fair value of loans at fair value if the expected future recovery rates: Increase by 10% (ii) 38,139 Decrease by 10% (ii) (38,139 ) (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, amounts due from related parties and deposits to insurance companies and guarantee companies are financial assets with carrying amounts that approximate fair value due to their short-term nature. Accounts payable and amounts due to related parties 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. |
Funding Debts
Funding Debts | 12 Months Ended |
Dec. 31, 2020 | |
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, 2019 and 2020, respectively: As of December 31, 2019 2020 (RMB in thousands) Short-term: Liabilities to Individual Investors— Juzi Licai 793,356 — Liabilities to other funding partners 2,962,172 4,685,935 Total short-term funding debts 3,755,528 4,685,935 Long-term: Liabilities to other funding partners 450,595 825,814 Total long-term funding debts 450,595 825,814 For the years ended December 31, 2018, 2019 and 2020, the following significant activities took place related to the Group’s funding partners: Liabilities to Individual Investors on Juzi Licai with respect to on-balance sheet loans The Group finances its on-balance sheet loans using the proceeds from Individual Investors on J uzi Licai uzi Licai nil Liabilities to other funding partners The Group finances its on-balance sheet loans using the proceeds from other funding partners, including the third-party investors of the consolidated Trusts and asset-backed securitized debts, and certain Institutional Funding Partners. Those liabilities to other funding partners were bearing weighted average interest rates of 9.7% and 9.3% as of December 31, 2019 and December 31, 2020 2019 and December 31, 2020 2019 and December 31, 2020 Maturities of funding debts The following table summarizes the contractual maturity dates of the Group’s funding debts and associated interest payments as of December 31, 2020. 1 - 12 months 13 - 24 months 25 - 36 months 37 - 48 months 49 - 60 months Total (RMB in thousands) Liabilities to other funding partners 4,685,935 825,814 — — — 5,511,749 Total funding debts 4,685,935 825,814 — — — 5,511,749 Interest payments(i) 270,186 14,529 — — — 284,715 Total interest payments 270,186 14,529 — — — 284,715 (i) Interest payments for funding debts |
Short-Term Borrowings
Short-Term Borrowings | 12 Months Ended |
Dec. 31, 2020 | |
Short Term Borrowings [Abstract] | |
Short-Term Borrowings | 11. SHORT‑TERM BORROWINGS As of December 31, 2019 and 2020, the Group had short-term borrowings primarily from banks with weighted average interest rates of approximately 4.2% and 4.0% per annum, respectively. Such borrowings are all denominated in RMB. All of the borrowings are designated to support the Group’s general operation and could not be used to fund the Group’s financing receivables. The Group’s certain borrowings, amounting to RMB1,774.9 million and RMB1,701.0 million, as of December 31, 2019 and December 31, 2020, respectively, are collateralized by a pledge of the Group’s time deposits. As of December 31, 2019 and 2020, the outstanding balance of short-term borrowings was secured by RMB1,886.6 million and RMB1,781.3 million time deposits of the Group pledged as collateral, respectively. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Payables And Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | 12. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES As of December 31, 2019 2020 (RMB in thousands) Funds payable to Institutional Funding Partners (i) 415,297 670,942 Tax payable 270,163 632,006 Payable for acquisition of land use rights (ii) - 516,000 Accrued payroll and welfare 327,827 364,500 Guarantee derivative liabilities at fair value (Note 9) - 252,613 Other payable to Individual Investors on Juzi Licai - 86,841 Accrued marketing expenses 71,849 78,681 Payable to third‑party sellers 90,133 55,704 Deferred service fees 47,887 51,966 Risk management fees 12,322 48,993 Short-term leasing liabilities 45,764 45,577 Accrued professional fees and outsourcing fees 31,401 37,684 Deferred interest and financial services income and others 36,816 23,038 Security deposits from third‑party sellers 14,087 10,718 Other accrued expenses 31,093 51,084 Total accrued expenses and other current liabilities 1,394,639 2,926,347 (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. (ii) In 2020, the Group obtained the land use rights from local authorities with a cash consideration of RMB1.0 billion. The Group has made the first installment payment of RMB516.0 million in February 2020, and the second installment payment of RMB516.0 million in February 2021. |
Related Party Balances and Tran
Related Party Balances and Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Balances and Transactions | 13. RELATED PARTY BALANCES AND TRANSACTIONS The table below sets forth 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. Ji'an Aojuxun Information Consulting Service Co., Ltd.(“Ji'an Aojuxun”) Ji’an Aojuxun is controlled by the immediate family member of the Group's senior management. JD.com, Inc. and its subsidiaries (“JD Group”) * JD Group is a shareholder of the Group Individual Director or Officer Directors or Officers of the Group *In considering the equity interests of the Company held by JD, the transaction volumes between the Company and JD as well as other relevant factors, management concluded that JD was no longer a related party of the Company starting from January 1, 2020. (a) The Group entered into the following significant related party transactions: ( i ) Purchases of goods and services from related parties For the Year Ended December 31, 2018 2019 2020 (RMB in thousands) Purchases of goods and services from Ji'an Aoxinlian — 7,200 20,658 Purchases of goods and services from Ji'an Aojuxun — 2,091 7,987 Purchases of goods and services from JD Group 607,086 827,574 — Total 607,086 836,865 28,645 (b) The Group had the following significant related party balances: ( i ) Amounts due to related parties As of December 31, 2019 2020 (RMB in thousands) Due to individual Director or Officer and his/her immediate family members under investment programs offered by the Group 40,804 61,871 Due to Ji'an Aoxinlian — 4,711 Total 40,804 66,582 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 Individual Investors. |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Taxation | 14. TAXATION a) Value‑added tax (“VAT”) During the periods presented, the Group is subject to 16% or 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 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 PRC 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 High and New Technology Enterprises (“HNTEs”) and Software Enterprises. Qianhai Juzi qualified as an HNTE and is entitled for a preferential income tax rate of 15% Shenzhen Lexin Software qualified as Software Enterprises and is entitled to an income tax exemption for the years of 2017 and 2018, a preferential income tax rate of 10% in 2019, and is exempt from the enterprise income tax or is entitled to a preferential income tax rate of 12.5% in 2020. Shenzhen Dingsheng Technology qualify as a Software Enterprise and is entitled to an income tax exemption for the years of 2017 and 2018 and a preferential income tax rate of 12.5% from 2019 to 2021. Beihai Aurora is entitled for a preferential income tax rate of 15% for China’s Western Development Strategy, from 2018 to 2022, and 15% from 2023 to 2030. The Group’s other PRC subsidiaries, VIEs and 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. 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, 2018, 2019 and 2020 are as follows: For the Year Ended December 31, 2018 2019 2020 (RMB in thousands, except for percentages) Income before income tax expense 2,109,528 2,706,511 685,609 Income/ (Loss) from non‑China operations (13,479 ) 41,461 15,143 Income from China operations 2,123,007 2,665,050 670,466 Income tax expense applicable to China operations 132,222 411,959 90,629 Effective tax rate for China operations 6.2 % 15.5 % 13.5 % The Group did not incur any interest and penalties related to potential underpaid income tax expenses. Composition of income tax expense for China operations The following table sets forth current and deferred portion of income tax expense of the Company’s China subsidiaries, VIEs, and subsidiaries of the VIEs: For the Year Ended December 31, 2018 2019 2020 (RMB in thousands) Current income tax expense 74,046 352,036 594,149 Deferred income tax expense 58,176 59,923 (503,520 ) Income tax expense 132,222 411,959 90,629 The following table sets` forth reconciliation between the statutory enterprise income tax (“EIT”) rate and the effective tax rate for the Group’s China operations: For the Year Ended December 31, 2018 2019 2020 Statutory EIT rate 25.0 % 25.0 % 25.0 % Change of tax position* (3.7 )% — (2.4 )% Effect of tax holidays (7.0 )% (9.0 )% (9.9 )% Tax effect of non‑deductible expense (0.5 )% (0.5 )% 1.1 % Changes in valuation allowance (7.6 )% ** (0.3 )% Effective tax rate for China operations 6.2 % 15.5 % 13.5 % * The Group’s PRC subsidiaries completed 2017 annual tax filings with relevant tax authorities in May 2018. The tax filing results provided additional insights as to the pre-tax deduction of qualified provision for credit losses of financing receivables. Accordingly, current income tax liability of RMB78.0 million and valuation allowance of RMB114.7 million recognized as of December 31, 2017 in relation to the Group’s provision for credit losses of financing receivables were reversed in 2018. In the third quarter of 2020, RMB16.2 million income tax provision relating to 2019 was reversed as one subsidiary of the Group was certified to be qualified for using a preferential tax rate of 10% for 2019 annual tax clearance in this quarter. ** Less than 0.1%. The following table sets forth the effect of tax holiday related to China operations: For the Year Ended December 31, 2018 2019 2020 (In thousands, except per share amount) Tax holiday effect 148,350 239,732 66,110 Basic net income per share effect 0.44 0.67 0.18 Diluted net income per share effect 0.41 0.64 0.16 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, 2019 2020 Deferred tax assets - Deferred guarantee income and other accrued expenses — 477,023 - Contingent guarantee liabilities — 434,697 - Provision for credit losses 93,386 359,293 - Advertising expenses in excess of deduction limit 73,970 54,970 - Net operating loss carryforwards 8,648 13,649 - Guarantee liabilities and other accrued expenses 406,973 — Less: valuation allowance (6,662 ) (4,429 ) Total deferred tax assets 576,315 1,335,203 Net deferred tax assets 157,138 747,332 The components of the deferred tax liabilities are as follows: For the Year Ended December 31, 2019 2020 Deferred tax liabilities -Contract assets and service fees receivable 550,425 490,204 -Guarantee receivables 178,398 118,713 Total deferred tax liabilities 728,823 608,917 Net deferred tax liabilities 309,646 21,046 Movement of valuation allowance For the Year Ended December 31, 2018 2019 2020 Balance at beginning of the year (246,508 ) (6,785 ) (6,662 ) Additions (5,245 ) (4,255 ) (2,243 ) Reversals 244,968 4,378 4,476 Balance at end of the year (6,785 ) (6,662 ) (4,429 ) 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 income tax As of December 31, 2017, the Group provided full valuation allowance of RMB241.9 million for the deferred tax assets related to provision for credit losses. Given that the Group had limited successful experience in getting approval from the relevant tax authorities for the deduction of the tax allowance on provision for credit losses at that time, the Group concluded it was more-likely-than-not that these deferred tax assets would not be realized going forward. As of December 31, 2018, the Group evaluated a variety of factors including the successful experiences in pre-tax deduction of provision for credit losses in 2017 annual tax filing completed in May 2018, and concluded that the deferred tax assets arose from provision for credit losses are more-likely-than-not to be realized going forward. Therefore, no valuation allowance was provided for the provision for credit losses as of December 31, 2018, 2019 and 2020, respectively. As of December 31, 2019 and 2020, the Group had net operating loss carryforwards of approximately RMB37.8 million and RMB63.8 million, respectively, which arose from the Group’s certain subsidiaries, VIEs and the VIEs’ subsidiaries established in the PRC. As of December 31, 2019 and 2020, deferred tax assets arose from the net operating loss carryforwards amounted to RMB 20.6 million and RMB 22.7 million was provided for full valuation allowance respectively, while the remaining RMB 17.2 million and RMB 41.1 million is expected to be utilized prior to expiration considering future taxable income for respective entities. As of December 31, 2020, the net operating loss carryforwards of RMB 8.2 million, RMB 6.1 million, RMB 12.6 million and RMB 36.9 million will expire in 2022, 2023,2024 and 2025, respectively, if not utilized. The Company intends to indefinitely reinvest all the undistributed earnings of the Company’s VIEs and subsidiaries of the VIEs in China, and does not plan to have any of its PRC subsidiaries to distribute any dividend; therefore, no withholding tax is expected to be incurred in the foreseeable future. Accordingly, no income tax is accrued on the undistributed earnings of the Company’s VIEs and subsidiaries of the VIEs as of December 31, 2019 and 2020. Although the Company’s certain PRC subsidiaries have generated accumulated earnings as of December 31, 2020, they have not paid any dividends in the past and currently have no plans to pay any dividends. These PRC subsidiaries plan to reinvest their profits into the PRC operations. 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, 2020. |
Convertible Notes
Convertible Notes | 12 Months Ended |
Dec. 31, 2020 | |
Longterm Convertible Debt Current And Noncurrent [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 (RMB1,911.8 million), net of debt discount of US$3.6 million (RMB23.5 million) and issuance costs of US$3.4 million (RMB22.2 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, 2019 and 2020, the interest expense related to the Notes was RMB14.3 million and RMB47.8 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, 2019 and 2020, the principal amount of the debt were RMB 2,092.9 |
Ordinary Shares
Ordinary Shares | 12 Months Ended |
Dec. 31, 2020 | |
Common Stock Number Of Shares Par Value And Other Disclosures [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 RMB651.3 million ($100.1 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 RMB95.1 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, 2019, and 2020, 4,924,310 shares and 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. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020, 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, 2018, 2019 and 2020, 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 were5,785,724 shares, 7,627,967 shares and 11,398,012 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, 2018 2019 2020 (RMB in thousands, except for share and per share data) Basic net income per share calculation: Numerator: Net income attributable to ordinary shareholders 1,977,306 2,294,552 594,980 Denominator: Weighted average number of ordinary shares outstanding—basic 337,883,964 355,625,970 364,733,164 Net income per share attributable to ordinary shareholders—basic 5.85 6.45 1.63 Diluted net income per share calculation: Numerator: Net income attributable to ordinary shareholders 1,977,306 2,294,552 594,980 Interest expense associated with convertible notes reversed — 14,261 47,781 Net income attributable to ordinary shareholders for calculating diluted net income per share 1,977,306 2,308,813 642,761 Denominator: Weighted average number of ordinary shares outstanding—basic 337,883,964 355,625,970 364,733,164 Ordinary shares issuable upon the exercise of outstanding stock options using the treasury stock method 24,875,327 6,470,848 3,255,913 Ordinary shares issuable upon the vesting of outstanding restricted share units using the treasury stock method 3,270 1,170,713 383,590 Ordinary shares issuable upon the conversion of convertible notes using the if—converted method — 12,563,600 42,857,143 Weighted average number of ordinary shares outstanding—diluted 362,762,561 375,831,131 411,229,810 Net income per share attributable to ordinary shareholders—diluted 5.45 6.14 1.56 |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2020 | |
Compensation And Retirement Disclosure [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 RMB102.7 million, RMB128.7 million and RMB85.9 million for the years ended December 31, 2018, 2019 and 2020, respectively. |
Statutory Reserves and Restrict
Statutory Reserves and Restricted Net Assets | 12 Months Ended |
Dec. 31, 2020 | |
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, 2019 and 2020, the restricted net assets of the Group’s relevant PRC entities amounted to RMB3,493.4 million and RMB3,771.9 million, respectively. The restricted net assets of the Group’s relevant PRC entities accounted for 68.2% of the consolidated net assets as of December 31, 2020. As a result of the above restrictions, parent company only condensed financial information is disclosed in Note 22. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | 20. SHARE‑BASED COMPENSATION Share‑based compensation was recognized in operating cost and expenses for the years ended December 31, 2018, 2019 and 2020 as follows: For the Year Ended December 31, 2018 2019 2020 (RMB in thousands) Processing and servicing cost 8,111 10,472 11,391 Sales and marketing expenses 18,223 28,611 32,486 Research and development expenses 33,169 42,977 46,116 General and administrative expenses 63,133 95,202 108,832 Total share‑based compensation expenses 122,636 177,262 198,825 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, 2018, 2019 and 2020. 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 The following table sets forth a summary of the number of shares available for issuance: Shares Available (In thousands) December 31, 2017 20,483 Granted (7,576 ) Cancelled/forfeited 926 December 31, 2018 13,833 Additions 3,512 Granted (10,849 ) Cancelled/forfeited 1,903 December 31, 2019 8,399 Additions 3,594 Granted (3,005 ) Cancelled/forfeited 3,035 Expired (496 ) December 31, 2020 11,527 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 Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (In thousands) US$ (In years) (RMB in thousands) December 31, 2017 34,648 0.0001 7.44 1,573,424 Granted* 6,263 5.1500 Exercised (19,911 ) 0.0001 Cancelled/forfeited (858 ) 1.9962 December 31, 2018 20,142 1.5164 7.95 353,559 Granted* 5,091 0.5000 Exercised (7,798 ) 0.2548 Cancelled/forfeited (1,194 ) 2.3996 December 31, 2019 16,241 1.7386 8.22 589,871 Granted* 2,829 0.5000 Exercised (3,140 ) 0.2399 Cancelled/forfeited (2,270 ) 2.1589 December 31, 2020 13,660 1.7569 7.87 189,072 Vested and expected to vest as of December 31, 2020 12,765 1.7723 7.86 175,919 Exercisable as of December 31, 2020 5,066 2.0893 7.02 64,574 * 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, 2018, 2019 and 2020 was RMB 27.8 (US$4.3), RMB35.6 (US$5.0) and RMB25.5 (US$3.7) per share, respectively. The total intrinsic value of stock options exercised for the years ended December 31, 2018, 2019 and 2020 was RMB788.9 million (US$118.3 million), RMB293.5 million (US$42.8 million) and RMB90.4 million (US$13.1 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, 2018, 2019 and 2020, total share-based compensation expenses recognized for stock options granted to employees, directors and non-employee directors were RMB110.8 million, RMB125.1 million and RMB143.5 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 RMB16.9 million (US$2.5 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, 2020, 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 RMB190.6 million. Total unrecognized compensation cost is expected to be recognized over a weighted‑average period of 2.5 years and may be adjusted for future changes in estimated forfeitures. Prior to completion of the IPO, the exercise price of each granted stock option was US$0.0001, the Company used intrinsic value (approximately the fair value of each of the Company’s ordinary share) on the grant date to estimate the fair value of the stock options granted. After the IPO, the exercise price of each granted stock option is determined by the closing price of the Company’s ordinary share on the grant date, therefore, For the Year Ended December 31, 2018 2019 2020 Expected volatility 52.1%~54.9% 41.81%~42.09% 45.25%~48.26% Risk-free interest rate (per annum) 3.65%~3.74% 1.80%~1.81% 0.67%~0.88% Exercise multiples 2.2~2.8 1.5~2.5 1.5 Expected dividend yield — — — Expected term (in years) 9.8~10.0 10.0 10.0 Fair value of the underlying shares on the date of grants (US$) 3.70~4.57 5.02~6.02 3.15~4.15 2) Stock options granted to non‑employees The following table sets forth the summary of activities for stock options granted to non‑employees: Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (In thousands) US$ (In years) (RMB in thousands) December 31, 2017 500 0.0001 9.58 22,706 Granted — — Exercised — — Cancelled/forfeited — — December 31, 2018 500 0.0001 8.58 12,439 Granted — — Exercised (90 ) 0.0001 Cancelled/forfeited — — December 31, 2019 410 0.0001 7.58 19,864 Granted — — — — Exercised — — — — Cancelled/forfeited — — — — December 31, 2020 410 0.0001 6.58 8,962 Vested and expected to vest as of December 31, 2020 410 0.0001 6.58 8,962 Exercisable as of December 31, 2020 285 0.0001 6.58 6,229 For the years ended December 31, 2018, 2019 and 2020, total share-based compensation expenses recognized for stock options granted to non-employees were RMB2.3 million, RMB3.3 million and RMB3.2 million, respectively. As of December 31, 2020, the unrecognized compensation cost, adjusted for estimated forfeitures, related to non‑vested stock options granted to the Group’s non‑employees was RMB1.4 million. Total unrecognized compensation cost is expected to be recognized over a weighted average period of 0.6 years and may 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 Outstanding Weighted Average Grant Date Fair Value (In thousands) US$ December 31, 2017 — — Granted* 1,313 7.45 Vested (8 ) 7.99 Cancelled/forfeited (68 ) 7.02 December 31, 2018 1,237 7.47 Granted* 5,758 5.10 Vested (292 ) 7.49 Cancelled/forfeited (709 ) 5.78 December 31, 2019 5,994 5.39 Granted* 176 4.27 Vested (1,527 ) 5.43 Cancelled forfeited (989 ) 5.57 December 31, 2020 3,654 5.27 * The fair value and intrinsic value of restricted share units vested for the years ended December 31, 2018, 2019 and 2020 was RMB0.2 million (US$0.03 million), RMB11.6 million (US$1.7 million) and RMB69.9 million (US$10.1 million), respectively. For the years ended December 31, 2018, 2019 and 2020, total share‑based compensation expenses recognized for restricted share units were RMB9.5 million, RMB48.9 million and RMB52.1 million, respectively. As of December 31, 2020, the unrecognized compensation cost, related to unvested restricted share units was RMB86.6 million. Total unrecognized compensation cost is expected to be recognized over a weighted average period of 2.2 years. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
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 Individual Investors on Juzi Licai The expected repayment amount of the debt obligations are as follows: 1 – 12 months 13 – 24 months 25 – 36 months 37 – 48 months 49 – 60 months and beyond Total (RMB in thousands) Funding debts obligations Liabilities to other funding partners 4,685,935 825,814 — — — 5,511,749 Interest payments (i) 270,186 14,529 — — — 284,715 Total funding debts obligations 4,956,121 840,343 — — — 5,796,464 Short–term borrowings 1,827,063 — — — — 1,827,063 Interest payments (i) 39,255 — — — — 39,255 Total short–term borrowings obligations 1,866,318 — — — — 1,866,318 Convertible notes — — — — 1,957,470 1,957,470 Interest payments (i) 39,149 39,149 39,149 39,149 76,668 233,264 Total convertible notes obligations 39,149 39,149 39,149 39,149 2,034,138 2,190,734 Commitment to purchase delinquent loans (ii) 785,177 — — — — 785,177 Total purchase obligations 785,177 — — — — 785,177 (i) Interest payments with variable interest rates are calculated using the interest rate as of December 31, 2020. (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, 2020. 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, 2019 and December 31, 2020. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
SUBSEQUENT EVENTS | 22. SUBSEQUENT EVENTS The Company performed an evaluation of subsequent events through April 28, 2021, which is the date the financial statements were issued, and did not identify any material events or transactions that would require adjustment to or disclosure in the financial statements. |
Parent Company Only Condensed F
Parent Company Only Condensed Financial Information | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Parent Company Only Condensed Financial Information | 23. 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, VIEs and VIEs’ subsidiaries. The subsidiaries did not pay any dividend to the Company for the years presented. 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, 2019 and 2020, 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, 2019 2020 RMB RMB US$ Note 2(e) ASSETS Current assets Cash and cash equivalents 139,917 846 130 Amounts due from subsidiaries and other related parties 2,449,933 2,430,814 372,538 Prepaid expenses and other current assets 15,243 6,272 961 Total current assets 2,605,093 2,437,932 373,629 Non-current assets Investments in subsidiaries, VIEs and VIEs’ subsidiaries 6,021,088 4,945,849 757,985 Long-term investments 77,054 68,151 10,445 Other assets 1,020 — — Total non-current assets 6,099,162 5,014,000 768,430 Total assets 8,704,255 7,451,932 1,142,059 LIABILITIES Current liabilities Amounts due to subsidiaries, VIEs and VIEs’ subsidiaries 18,468 18,264 2,799 Accrued interest payable 12,136 9,233 1,415 Accrued expenses and other current liabilities 28,061 13,470 2,065 Total current liabilities 58,665 40,967 6,279 Non-current liabilities Convertible notes 2,046,051 1,920,227 294,288 Total non-current liabilities 2,046,051 1,920,227 294,288 Total liabilities 2,104,716 1,961,194 300,567 Commitments and contingencies (Note 20) SHAREHOLDERS’ EQUITY: Class A Ordinary Shares ($0.0001 par value per share; 1,889,352,801 shares authorized, 263,614,582 shares issued, 258,690,272 shares outstanding as of December 31, 2019; 1,889,352,801 shares authorized, 268,935,832 shares issued, 267,356,928 shares outstanding as of December 31, 2020) 170 176 27 Class B Ordinary Shares ($0.0001 par value per share; 110,647,199 shares authorized, 100,727,057 shares issued and outstanding as of December 31, 2019; 110,647,199 shares authorized, 96,727,057 shares issued and outstanding as of December 31, 2020) 61 58 9 Additional paid-in capital 2,519,886 2,724,006 417,472 Accumulated other comprehensive (loss)/income (7,288 ) 3,308 507 Retained earnings 4,086,710 2,763,190 423,477 Total shareholders’ equity 6,599,539 5,490,738 841,492 Total liabilities and shareholders’ equity 8,704,255 7,451,932 1,142,059 Condensed Statements of Operations and Comprehensive Income (In thousands) For the Year Ended December 31, 2018 2019 2020 RMB RMB RMB US$ Note 2(e) Operating expenses: General and administrative expenses (15,686 ) (18,514 ) (15,707 ) (2,407 ) Total operating expenses (15,686 ) (18,514 ) (15,707 ) (2,407 ) Interest (expense)/income, net 4,304 (14,085 ) (47,783 ) (7,323 ) Equity in income of subsidiaries, VIEs and VIEs’subsidiaries 1,978,986 2,260,115 626,877 96,073 Other long-term investments related impairment (12,739 ) — — — Investment income 18,753 57,391 27,624 4,234 Others, net 3,688 9,645 3,969 608 Income before income tax expense 1,977,306 2,294,552 594,980 91,185 Income tax expense — — — — Net income 1,977,306 2,294,552 594,980 91,185 Other comprehensive income: Foreign currency translation adjustments, net of nil tax 643 7,020 10,596 1,624 Total comprehensive income 1,977,949 2,301,572 605,576 92,809 Condensed Statements of Cash Flows (In thousands) For the Year Ended December 31, 2018 2019 2020 RMB RMB RMB US$ Note 2(e) Net cash used in operating activities (126,773 ) (2,230,673 ) (143,317 ) (21,963 ) Cash flows from investing activities: — — — — Cash paid on long–term investments (655,959 ) (66,737 ) (17,558 ) (2,691 ) Proceeds from disposal of long-term investments — 9,000 27,557 4,223 Net cash (used in)/provided by investing activities (655,959 ) (57,737 ) 9,999 1,532 Cash flows from financing activities: — — — — Proceeds from share issuance upon the underwriters’ exercise of over–allotment options, net of issuance costs 95,125 — — — Proceeds from receivables from Pre–IPO Series C–1 preferred shareholders 170,790 348,264 — — Proceeds from issuance of convertible notes, net of debt discount — 2,096,408 — — Payment of debt issuance costs — (24,048 ) — — Payment of initial public offering expenses (23,908 ) — — — Exercise of share–based awards 14 10,968 7,970 1,221 Net cash provided by financing activities 242,021 2,431,592 7,970 1,221 Effect of exchange rate changes on cash and cash equivalents and restricted cash (28,773 ) (4,140 ) (13,607 ) (2,085 ) Net (decrease)/increase in cash and cash equivalents and restricted cash (569,484 ) 139,042 (138,955 ) (21,295 ) Cash and cash equivalents and restricted cash at beginning of the year 570,359 875 139,917 21,443 Effect on the cash and cash equivalents at beginning of the year due to the adoption of ASC 326 (Note 2(g)) — — (116 ) (18 ) Cash and cash equivalents and restricted cash at end of the year 875 139,917 846 130 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, VIEs and VIEs’ subsidiaries. For the Company only condensed financial information, the Company records its investments in subsidiaries, VIEs and VIEs’ subsidiaries under the equity method of accounting as prescribed in ASC 323, Investments—Equity Method and Joint Ventures |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
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. Reclassification of prior-year presentation Starting from the second quarter of 2020, the Group reports revenue streams in three categories — online direct sales and services income, credit-oriented services income and platform-based services income, to provide more relevant information. The Group also revised the comparative period presentation to conform to current period classification. In providing credit-oriented services, the Group originates on-balance sheet loans, or facilitates the loan origination of off-balance sheet loans where the Group also provides guarantee services. Consequently, the Group takes all credit risks of borrowers in respect of on-balance sheet loans, and off-balance sheet loans through the relevant guarantee arrangements. By nature, revenue earned from off-balance sheet loans where the Group also provides guarantee services is recorded as “Loan facilitation and servicing fees-credit oriented” and “Guarantee income,” and interest income and other fees from on-balance sheet loans is recorded as “Interest and financial services income and other revenues.” In providing platform-based services, the Group does not provide guarantee services and takes no credit risks of borrowers in respect of principal and interests due to the lenders for off-balance sheet loans the Group facilitates. The Group either charges the service fees for loan facilitation and servicing at predetermined rates based on the performance of the underlying off-balance sheet loans, which is referred to as performance-based model, or charges the service fees primarily at predetermined rates of amount of loan originations upon successful matching of borrowing requests, which is referred to as volume-based model. Revenue from “Loan facilitation and servicing fees-credit oriented,” “Loan facilitation and servicing fees-performance based” and “Loan facilitation and servicing fees-volume based” were previously reported as one combined financial statement line item as “Loan facilitation and servicing fees” before the change of presentation. For online direct sales and services income, the Group reports the premium membership fees for the membership packages as “Membership services,” and the commission fee earned from third-party sellers for the online marketplace services the Group rendered and other services revenue as “Other services” within “Online direct sales and services income.” The premium membership fees, commission fee earned from third-party sellers and other services revenue were previously reported as “Services and others” within “Online direct sales and services income” before the change of presentation. Above changes in classification and presentation do not affect previously reported financial position, results of operations, and cash flows for the periods presented. Out-of-period adjustment For the year ended December 31, 2019, the Group recorded an out-of-period adjustment of RMB66.1 million to reduce financial services income, and corresponding RMB63.6 million of financing receivables and RMB2.5 million of contract assets and service fees receivable in the first quarter of 2019, to correct the cumulative effect of errors in recording discounts and interests waived in the periods prior to December 31, 2018. The Group has evaluated the effects of this out-of-period adjustment, both qualitatively and quantitatively, and concluded that the correction of this amount was not material to the Group’s financial position or results of operations for any prior periods or for the year ended December 31, 2019. |
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, bears the risks of and enjoys the rewards normally associated with ownership of 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 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 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 but not limited to, 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. The Group’s relevant PRC subsidiaries are entitled to substantially all of the economic benefits of the VIEs. 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 VIEs’ subsidiaries and can have assets transferred out of the VIEs and 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 VIEs’ subsidiaries except for registered capitals and PRC statutory reserves of the Group’s consolidated VIEs amounting to RMB5,227.4 million as of December 31, 2020. 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 its VIEs and 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 VIEs’ subsidiaries in the consolidated financial statements. In March 2019, the Foreign Investment Law was approved by the National People’s Congress on March 15, 2019, 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 the Foreign Investment Law and its implementation regulations are relatively new, substantial uncertainties exist with respect to its implementation and interpretation and 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 financial statements of 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 its 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. In the opinion of the Company’s management, the contractual arrangements 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 VIEs’ subsidiaries in the consolidated financial statements. 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. 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 Company may be subject to fines or other actions. 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 Group’s 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 (including the consolidated Trusts and asset-backed securitized debts) and their subsidiaries taken as a whole, which were included in the Group’s consolidated financial statements with intercompany balances and transactions eliminated: As of December 31, 2019 2020 (RMB in thousands) Total assets 16,592,936 18,748,833 Total liabilities 12,659,845 17,381,265 For the Year Ended December 31, 2018 2019 2020 (RMB in thousands) Revenue from third parties 7,596,896 10,603,507 11,579,992 Revenue from the Company and its subsidiaries — 5,210 449 Total operating revenue 7,596,896 10,608,717 11,580,441 Net income 1,088,805 1,691,019 816,113 |
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 of financing receivables, contract assets, service fees receivable and guarantee receivables; (iii) fair value determination of financial guarantee at loan inceptions; (iv) initial recognition and subsequent measurement of guarantee derivatives at fair value; (v) loans at fair value and (vi) determination of contingent guarantee liabilities. 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, 2018,2019 and 2020 were gain of RMB0.6 million, gain of RMB7.0 million, and gain of RMB10.6 million, respectively. Foreign currency exchange gain or loss recorded was immaterial for each of the periods presented. |
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, 2020 are solely for the convenience of the readers and were calculated at the rate of US$1.00=RMB6.5250, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 31, 2020. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2020, 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; (2) the Individual Investors on Juzi Licai On‑balance sheet loans (a) Loans funded by the Individual Investors on Juzi Licai under the Old Model (as defined hereinafter) or certain Institutional Funding Partners For loans funded by the proceeds from the Group’s own online investment platform Juzi Licai The Group noted that the terms of the underlying loan agreements between the Individual Investors or Institutional Funding Partners and the Borrowers (“Underlying Loan Agreements”) did not necessarily match the terms of the Investment Programs or Agreements. The mismatch was mainly due to the fact that some Individual Investors or Institutional Funding Partners may invest in the programs that had shorter investment periods than the terms of the Underlying Loan Agreements. Depending on the types of Investment Programs the Individual Investors choose or the Investment Agreements the Institutional Funding Partners entered into with the Group, the investing periods could be as short as one week he underlying loans were recorded as “Financing receivables, net” on the Consolidated Balance Sheets. As of December 31, 2020, loans funded by the Individual Investors on Juzi Licai (b) 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 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 (a) 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. (b) Loans funded by the Individual Investors on Juzi Licai under the New Model (as defined hereinafter) In late April 2018, the Group made some adjustments Juzi Licai Juzi Licai Juzi Licai the terms of Under the New Model, the Group acted as an intermediary between the Borrower and the Individual Investors. Pursuant to the Underlying Loan Agreement and the Investment Programs, the Individual Investors were entitled to all the interests generated from the underlying loans. Such interests were not generated until the lending relationship has been established between the Borrowers and the Individual Investors, as the lenders, upon entering into the Underlying Loan Agreements. The existing Individual Investor cannot exit from any lending relationship of outstanding loan unless the underlying loan was fully repaid or the outstanding loan principal with the remaining term was successfully re-matched with other Individual Investors. The Group provided ongoing matching and re-matching services to the Individual Investors over the terms of respective Investment Programs while it did not have any obligations to ensure such successful re-matching. The Group considered the terms of the Underlying Loan Agreements and the Investment Programs under the New Model and concluded that the Group was not the legal lender or borrower in the loan origination and repayment process. Accordingly, the Group did not record financing receivables arising from these loans nor Funding Debts to the Individual Investors. The balances of funds payable to Individual Investors represented the investment funds received from the Individual Investors on Juzi Licai As of 2020-12-31, loans funded by the Individual Investors o n Juzi Licai under the Risk safeguard scheme on Juzi Licai Under the New Model, the Group entered into a cooperation agreement with an independent third-party guarantee company (the “Guarantee Company”), to set up a new investor protection program called the Risk Safeguard Scheme (“RSS”). The purpose of the RSS was to provide make-up payments to the Individual Investors on Juzi Licai when the Borrowers default. The RSS only applied to loans newly funded under the New Model and required the Borrowers to contribute to the RSS to protect the Individual Investors. By default, all Borrowers enrolled in the RSS when the Underlying Loan Agreements were entered into. Pursuant to the Underlying Loan Agreement, the Borrower agreed to enroll in the RSS and pay the guarantee fee (the “Guarantee Fee”) into the guarantee fund special account (“Risk Safeguard Fund”) and the relevant guarantee service fees to the Guarantee Company. Accordingly, a certain amount of each monthly repayment from the Borrowers, equal to a certain percentage of the outstanding principal balance of each loan, should be transferred to the Risk Safeguard Fund. The Group had the discretion in determining the percentage, i.e. the amount of the Guarantee Fee, to be paid by the participating Borrowers. The amount of make-up payments was limited to the available balance of the Risk Safeguard Fund. If the Risk Safeguard Fund become insufficient to pay back all Individual Investors with defaulted loans, these Individual Investors would be repaid on a pro rata basis, and their outstanding unpaid loans will be deferred to the next time the Risk Safeguard Fund were replenished, at which time a distribution would again be made to all Individual Investors with those defaulted loans. Therefore, t Guarantees 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 interest and financial services income over the terms of the financing receivables using the effective interest rate method. Refer to Note 2( m ) 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. (a) Accrued interest receivable Accrued interest income on financing receivables is calculated based on the contractual interest rate of the loan and recorded as interest and financial services 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. (b) Nonaccrual financing receivables and charged‑off financing receivables 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. Interest and financial services income for nonaccrual 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 interest and financial services income. The Group does not resume accrual of interest after a loan has been placed on nonaccrual 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, accrued interest receivable, contract assets, service fees receivable, and guarantee receivables. Before the adoption of Accounting Standards Codification (“ASC”) 326 on January 1, 2020 The Group assessed the creditworthiness and collectability of the portfolios of respective financial assets, mainly based on historical charge offs of respective underlying on- and off-balance sheet loans, where applicable, using an established systematic process on a pooled basis within each credit risk levels of the Borrowers. The Group considered location, education background, income level, outstanding external borrowings, and external credit references when assigning Borrowers into different credit risk levels. Also, each portfolio of respective financial asset subject to credit losses within each credit risk level consisted of individually small amount of on- and off-balance sheet loans. In the consideration of above factors, the Group determined that each portfolio of respective financial asset subject to credit losses within each credit risk level was homogenous with similar credit characteristics. The Group’s allowance for credit losses of financial assets was calculated separately within each credit risk level of the Borrowers, taking into considerations of flexible repayment options of the underlying on- and off-balance sheet loans, where applicable. For each credit risk level, the Group estimated the probable incurred loss rate based on delinquency status of the respective financial assets within that level: current, 1 to 29, 30 to 59, 60 to 89, 90 to 119, 120 to 149, 150 to 179 calendar days past due. These loss rates in each delinquency status were based on average historical loss rates of financial assets subject to credit losses associated with each of the abovementioned delinquency categories. The probable incurred loss rate of the specific delinquency status category within each risk level was applied to the applicable outstanding balances of respective financial assets within that level to determine the allowance for credit losses for each reporting period. In addition, the Group considered other general economic conditions, if any, when determining the allowance for credit losses. After the adoption of ASC 326 on January 1, 2020 Effective January 1, 2020, the Group adopted Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments 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 The CECL methodology is applicable to estimation of credit losses of financial assets measured at amortized cost, primarily including financing receivables, contract assets, service fees receivable, and guarantee receivables of the Group. As a result, the Group recognized the cumulative effect as a decrease of approximately RMB0.3 billion to the opening balances of retained earnings, and an increase of the corresponding amount to the credit allowance of financial assets measured at amortized cost, which is primarily driven by the longer estimated periods of underlying loans under the CECL lifetime methodology compared to incurred loss methodology before the adoption of the new standard. 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. After the adoption, 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. Before the adoption, the guarantee liabilities subsequent to initial recognition were measured at the greater of the amount determined based on ASC 460 and the amount determined under ASC 450. An excess liability was recorded when the aggregate contingent liabilities under ASC 450 exceeded the balance of guarantee liabilities determined under ASC 460. The initial adoption resulted in a recognition of a separate contingent liability in full amount, in addition to financial guarantee liabilities measured under ASC 460. Further, the contingent liability is determined using CECL lifetime methodology compared to incurred loss methodology before the adoption. Consequently, the Company recognized the cumulative effect as a decrease of approximately RMB2.0 billion to the opening balances of retained earnings. The carrying amount of financial guarantee liabilities under ASC 460 upon the initial adoption has continued to be reduced by recording a credit to net income as the guarantor is released from the guaranteed risk in accordance with ASC 460, but no longer subject to the recording of an excess contingent lability under ASC 450. The financial impacts described above totaled approximately RMB2.3 billion along with the associated deferred tax impact of approximately RMB0.4 billion. As a result, the Group recognized the cumulative effect of approximately RMB1.9 billion, net of tax, as a decrease to the opening balances of retained earnings on January 1, 2020. The following table sets forth the cumulative effect of the changes on the Group’s Consolidated Balance Sheet as of January 1, 2020 due to the adoption of ASC 326: (RMB in thousands) As of December 31, 2019 Adjustments due to the adoption of ASC 326 As of January 1, 2020 Assets Cash and cash equivalents 2,085,234 (1,465 ) 2,083,769 Restricted cash 1,900,392 (1,848 ) 1,898,544 Restricted time deposits 1,966,643 (1,921 ) 1,964,722 Financing receivables, net 4,411,488 (229,661 ) 4,181,827 Accrued interest receivable, net 54,284 (1,681 ) 52,603 Guarantee receivables, net 1,464,977 (40,388 ) 1,424,589 Prepaid expenses and other current assets 1,324,924 (12,077 ) 1,312,847 Deposits to insurance companies and guarantee companies 1,251,003 (3,060 ) 1,247,943 Contract assets and service fees receivable, net 3,454,851 (26,045 ) 3,428,806 Other assets 454,421 (2,466 ) 451,955 Long-term investments 511,605 (3,588 ) 508,017 Liabilities Guarantee liabilities ( 1) (1,726,368) (2) 1,726,368 — Deferred guarantee income ( 1) — (1,481,814) (2) (1,481,814 ) Contingent guarantee liabilities ( 1) — (2,214,128) (2) (2,214,128 ) Total impact to allowance for credit losses (2,293,774 ) Deferred tax assets 157,138 78,803 235,941 Deferred tax liabilities (309,646 ) 296,471 (13,175 ) Total retained earnings impact (1,918,500 ) (1) Before the adoption of ASC 326, the guarantee liabilities subsequent to initial recognition were measured at the greater of the amount determined based on ASC 460 and the amount determined under ASC 450. An excess liability was recorded when the aggregate contingent liabilities under ASC 450 exceeded the balance of guarantee liabilities determined under ASC 460. After the adoption of ASC 326, a contingent liability in full amount determined using CECL lifetime methodology of the guarantee (i.e., the contingent aspect recorded as “Contingent guarantee liabilities”) shall be accounted for in addition to and separately from the guarantee liability (i.e., the noncontingent aspect recorded as “Deferred guarantee income”) accounted for under ASC 460. (2) As of December 31, 2019, the Group determined that the aggregate contingent liabilities under ASC 450 (RMB1,726.4 million) exceeded the balance of guarantee liabilities (RMB1,481.8 million) under ASC 460 and recorded an excess liability of RMB244.6 million. As a result of the adoption, RMB1,481.8 million of guarantee liabilities previously under ASC 460 was recorded as “Deferred guarantee income,” and RMB2,214.1 million of contingent guarantee liabilities is determined using CECL lifetime methodology compared to incurred loss methodology before the adoption. |
Funding Debts | (h) Funding debts For the proceeds received from the Individual Investors on Juzi Licai |
Accrued Interest Payable | (i) Accrued interest payable Accrued interest payable is calculated based on the contractual interest rates of funding debts and convertible notes. |
Guarantee Receivables and Liabilities | (j) Guarantee receivables and liabilities For the off-balance sheet loans funded by the Individual Investors on Juzi Licai Guarantees For the off-balance sheet loans funded by certain Institutional Funding Partners, the Group provides deposits and replenish such deposits from time to time 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 back-to-back guarantee to the insurance companies and guarantee companies and takes on all of the credit risk of the Borrowers. These financial guarantee contracts are accounted for as guarantee liabilities under ASC 460, Guarantees, . 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. Before the adoption of ASC 326 on January 1, 2020 Before the adoption of ASC 326, guarantee liabilities under ASC 460 were comprised of two components: (i) ASC 460 component; and (ii) ASC 450 component. In accordance with ASC 460-10-25-2 and ASC 460-10-30-3, the non-contingent and contingent aspect of the financial guarantee must both be considered at initial measurement. Accordingly, the guarantee liabilities were required to be measured at fair value at inception and reduced as the Group was released from the underlying risk, i.e., as the underlying loan was repaid by the Borrower or when the lender was compensated in the event of a Borrower’s default. This component was a stand ready obligation which was not subject to the probable threshold used to record a contingent obligation. The estimated fair value of the guarantee liabilities at inception of the loans was determined by the Group based on a discounted cash flow model, with reference to estimates of probable incurred loss rate and expected margins on cost of guarantee services. The other component was a contingent liability determined based on historical loss rates, representing the obligation to make future payouts, measured using the guidance in ASC 450, Contingencies Subsequent to initial recognition, the guarantee liabilities were measured at the greater of the amount determined based on ASC 460 and the amount determined based on ASC 450. ASC 460 does not prescribe a method for subsequently measuring and recording the noncontingent guarantee liabilities. However, as stated in ASC 460-10-35-1, the guarantee liabilities should generally be reduced by recording a credit to net income as the guarantor is released from the guaranteed risk. As the risk was reduced as each monthly payment was made, guarantee liabilities were recognized by a systematic and rational amortization method, i.e. over the terms of the underlying loans, as “Gain on guarantee liabilities, net” on the Consolidated Statements of Operations. At each reporting date, on a portfolio basis, when the aggregate contingent liabilities required to be recognized under ASC 450 exceeded the balance of , the Group recorded the excess against Guarantee receivables were recognized and measured at inception at fair value. For loans with original 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, was used in adjusting the guarantee receivables at inception. Interest income resulting from the significant financing component is recorded as “Interest and financial services income and other revenues” on the Consolidated Statements of Operations. At each reporting date, the Group assessed whether there is any indicator of impairment to the guarantee receivables. An impairment loss was recorded if the carrying amounts of the guarantee receivables exceeded the expected collections. After the adoption of ASC 326 on January 1, 2020 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. After the adoption, the estimated fair value of the guarantee liabilities at inception of the loans continues to be determined based on a discounted cash flow model, but 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, compared to incurred loss methodology before the adoption, 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 credit losses of contingent liabilities of guarantee” on the Consolidated Statements of Operations. The following table sets forth the activities of the Group’s obligations associated with the guarantee liabilities for the year ended December 31, 2019 prior to the adoption of ASC 326: For the year ended December 31, 2019 (RMB in thousands) Opening balances 456,276 Fair value of guarantee liabilities at inception of new loans 1,024,331 Release of guarantee liabilities upon the Borrowers’ repayment (424,962 ) Transfer from guarantee previously accounted for as derivatives* 1,325,935 Contingent liability 179,417 Payouts during the period (2,926,080 ) Recoveries during the period 2,091,451 Ending balances 1,726,368 * Since November 2019, the Group ceased to compensate interest repayment under the original terms of the loans to the Institutional Funding Partners, in the event that Borrowers early repay their loans. According to relevant financial guarantee contracts with certain Institutional Funding Partners, the guarantee provided by the Group met the scope exception under ASC 815-10-15-58 thereafter. Consequently, this financial guarantee previously provided for the outstanding off-balance sheet loans and accounted for as derivatives under ASC 815 was derecognized and accounted for as guarantee liabilities thereafter under ASC 460, which resulted in an increase in guarantee liabilities of RMB1.3 billion and corresponding guarantee receivables of RMB0.8 billion during the year ended December 31, 2019. The following table sets forth the activities of the Group’s obligations associated with the deferred guarantee income for the years ended December 31, 2020 after the adoption of ASC 326: For the Year Ended December 31, 2020 (RMB in thousands) Opening balances — Cumulative effect due to the adoption of ASC 326 (Note 2(g)) 1,481,814 Fair value of guarantee liabilities at inception of new loans 1,532,461 Release of deferred guarantee income (2,319,693 ) Ending balances 694,582 The following table sets forth the activities of the Group’s obligations associated with the contingent guarantee liabilities for the year ended December 31, 2020 after the adoption of ASC 326: For the Year Ended December 31, 2020 (RMB in thousands) Opening balances — Cumulative effect due to the adoption of ASC 326 (Note 2(g)) 2,214,128 Provision for credit losses of contingent liabilities of guarantee 2,880,590 Net cash payout (3,355,931 ) Ending balances 1,738,787 |
Loans at Fair Value | (k) Loans at fair value From time to time, the Group acquires the 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 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 repurchase. Changes in fair value of loans are reported net and recorded in “Change in fair value of loans” on the Consolidated Statements of Operations. |
Guarantee Derivatives | (l) 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 a back‑to‑back 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 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 | (m) Revenue recognition On January 1, 2018, the Group adopted ASC 606, Revenue from Contracts with Customers, 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 Receivables Guarantees, 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 “Interest and financial services income and other revenues” on the Group’s Consolidated Statements of Operations. The Group recognized a cumulative effect of approximately RMB209.5 million as an increase to the opening balances of retained earnings on January 1, 2018, as a result of the initial application of ASC 606. The impact primarily resulted from the earlier recognition of revenue under ASC 606 for “Loan facilitation and servicing fees” collectible in monthly installments related to the Group’s off-balance sheet loans. The Group provides the loan facilitation and matching services and post-origination services as multiple deliverable arrangements. Under ASC 605, service fees collectible in monthly installments were considered contingent and, therefore, were not allocable to different deliverables until the contingency was resolved (i.e., upon receipt of the monthly service fees). Under ASC 606, service fees collectible in monthly installments are considered variable consideration which is contingent on a future event occurring. The Group considers the constraint on variable consideration and only recognizes revenue to the extent that it is probable that a significant reversal will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Revenue is recognized when each of the performance obligations is satisfied at a point-in-time or over time separately using the total estimated consideration allocated to the different performance obligations based on their relative standalone selling prices. Revenue from loan facilitation and matching services is recognized upon successful matching of the Borrowers with various funding partners, and revenue from post-origination services is recognized over the terms of the related contracts. The Group’s revenue recognition policies effective on the adoption date of ASC 606 are as follows: Online direct sales and services 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. Online direct sales revenues are 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). 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 “Accrued expenses and other current liabilities” Other services The Group also operates an online marketplace that enable third‑party sellers to sell their products to customers with installment payment terms. The Group charges the third‑party sellers a fixed rate 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 Borrowers. In accordance with ASC 606-10-55-39, the Group recognizes the commission fees as revenues from the third‑party sellers 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 Borrowers, 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-oriented services and platform-based services Loan facilitation and servicing fees – overall 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 as “Loan facilitation and servicing fees-credit oriented,” “Loan facilitation and servicing fees-performance based” and “Loan facilitation and servicing fees-volume based” based on respective arrangements, as applicable. Revenues from loan facilitation and matching and post-origination services 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. Revenues from Investment Program management services The Group provides ongoing management services to the Individual Investors pursuant to the Investment Programs, including (i) initial matching of the investment funds from the Individual Investors and (ii) continuous re-matching of the monthly repayment from the Borrowers with any new borrowing requests to generate investment returns for the Individual Investors over the terms of the Investment Programs. The customers (i.e. the Individual Investors) simultaneously receive and consume the benefits provided by the Group’s performance throughout the terms of the Investment Programs. The Group concludes that the ongoing management services is a distinct service being provided over the time in accordance with ASC 606, therefore the revenues from Investment Program management services are recognized over the terms of the Investment Programs, using a straight-line method. The Group considers the options to the Individual Investors to renew the contract term of Investment Programs to purchase additional future services with a lower service fee rate, if any, as a material right to customers therefore is a separate performance obligation. The transaction price allocated to such options are deferred to be recognized as revenues when the relevant future services are transferred or when the options expire. 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 determines the relative standalone selling price of such options primarily based on historical data of the discounts that the customers obtain from exercising such options. Loan facilitation and servicing fees – credit oriented For the off-balance sheet loans funded by the Individual Investors on Juzi Licai Loan facilitation and servicing fees – performance based 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, and records revenue earned from such loans as “Loan facilitation and servicing fees-performance based.” Loan facilitation and servicing fees – volume based 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 at predetermined rates of amount of loan originations upon successful matching of borrowing requests, and records revenue earned from such loans as “Loan facilitation and servicing fees-volume based.” Interest and financial services income and other revenues The Group generates interest and financial services income and other revenues from its financing receivables. Interest and financial services 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. Interest and financial services income is not recorded 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 coupons: 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 repayment on the installment purchase loans or personal installment loans. 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 RMB319.7 million, RMB281.0 million and RMB196.3 million for the years ended December 31, 2018, 2019 and 2020, 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 RMB13.1 million, RMB19.7 million and RMB17.1 million, were recorded as sales and marketing expenses on the Consolidated Statements of Operations for the years ended December 31, 2018, 2019 and 2020, 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 service fees receivable. An impairment loss, if any, is recorded as “Provision for credit losses of 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 “Accrued expenses 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 RMB92.1 million and RMB47.9 million for the years ended December 31, 2019 and 2020, 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, 2019 and 2020, the aggregate amount of the transaction price allocated to remaining performance obligations related to customer contracts that are unsatisfied or partially unsatisfied was RMB827.1 million and RMB1,101.3 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 two 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. 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, 2018 2019 2020 (RMB in thousands) Online direct sales and services income: Online direct sales 2,396,680 3,623,991 1,900,835 Membership services 124,066 112,558 113,107 Other services 79,848 92,292 68,890 Total 2,600,594 3,828,841 2,082,832 For the Year Ended December 31, 2018 2019 2020 (RMB in thousands) Loan facilitation and servicing fees-credit oriented: Loan facilitation and matching service fee-credit oriented 1,494,822 3,868,044 2,628,941 Post-origination service fees-credit oriented 289,054 643,399 1,087,567 Investment Program management service fees-credit oriented 91,331 300,425 70,488 Total 1,875,207 4,811,868 3,786,996 For the Year Ended December 31, 2018 2019 2020 (RMB in thousands) Platform-based services income: Loan facilitation and matching service fee-performance based 133,841 556,143 1,656,998 Post-origination service fees-performance based 15,500 92,373 273,837 Loan facilitation and servicing fees-volume based 51,269 167,458 106,007 Total 200,610 815,974 2,036,842 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, 2018 2019 2020 (RMB in thousands) Revenues recognized at point-in-time 4,156,460 8,307,928 6,361,671 Revenues recognized over time 519,951 1,148,755 1,544,999 Total 4,676,411 9,456,683 7,906,670 |
Cash and Cash Equivalents | (n) 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, 2019 and 2020, the Group did not have any cash equivalents. |
Restricted Cash | (o) 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; (ii) security deposits set aside for partnering commercial banks or certain Institutional Funding Partners in case of Borrowers’ defaults; and (iii) cash set aside under the RSS through third-party custody bank accounts, the balance of which was nil as of December 31, 2020. |
Restricted Time Deposits | (p) Restricted time deposits Restricted time deposits 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. |
Inventories, Net | (q) Inventories, net Inventories, consisting of products available for sale, are stated at the lower of cost or net realizable value. Cost of inventory is determined using the moving average cost method for the years ended December 31, 2019 and 2020. Prior to 2019 and 2020, cost of inventory was determined using the First-in-first-out cost method. Such change did not have a material impact on the opening balance of retained earnings as of January 1, 2019 and the financial position and results of operations as of and for the year ended December 31, 2019. The accounting change was not applied retrospectively as the cumulative effect was not material to current operations or to the trend of the reported results of operations 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, 2019 and 2020, all inventory balances were products available for sale. The Group also provides fulfillment-related services in connection with the Group’s online marketplace. Third-party sellers maintain ownership of their inventories and therefore these products are not included in the Group’s inventories. |
Long-Term Investments | (r) 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 for which the Group has the intent and ability to hold to maturity or payoff. Equity investments accounted for using the measurement alternative The Group adopted ASU 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities effective January 1, 2018 and 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 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 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. An allowance for doubtful accounts is recorded in the period in which a loss is determined to be probable. |
Property, Equipment and Software, Net | (s) 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. 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 | (t) Land use rights, net Land use rights represent the land use rights acquired 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 | (u) 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. |
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, accrued interest receivable, 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 elected t he fair value option for the loans acquired or purchased from the relevant funding partners 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 Individual Investors on Juzi Licai |
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, 2018, 2019 and 2020, advertising costs totaled RMB199.5 million, RMB1.0 billion and RMB791.2 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) The Group elected to apply practical expedients permitted under the transition method that allow the Group to use the beginning of the period of adoption as the date of initial application, to not recognize lease assets and lease liabilities for leases with a term of twelve months or less, to not separate non-lease components from lease components, and to not reassess lease classification, treatment of initial direct costs, or whether an existing or expired contract contains a lease. The Group did not retrospectively adjust the prior comparative periods. Under the new lease standard, 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. As a result of the adoption, the Group recognized approximately RMB113.2 million of right-of-use assets The Group leases certain office premises under non‑cancelable leases, which expire at various dates through August 2026. As of December 31, 2020, the Group’s operating leases had a weighted average remaining lease term of 2.4 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, 2020 RMB in thousands 2021 46,597 2022 16,554 2023 6,896 2024 2,991 2025 and thereafter 4,709 Total future lease payments 77,747 Impact of discounting remaining lease payments (4,503 ) Total lease liabilities 73,244 - Short-term portion 45,577 - Long-term portion 27,667 Rental expenses under operating leases for the year ended December 31, 2018 were RMB47.5 million. Operating lease cost for the years ended December 31, 2019 and 2020 was RMB54.9 million and RMB57.9 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, 2019 and 2020 was RMB2.5 million and RMB3.9 million, respectively. Supplemental cash flow information related to operating leases was as follows: For the Year ended December 31, 2020 RMB in thousands Cash payments for operating leases 58,501 Right-of-use assets obtained in exchange for operating lease liabilities 52,655 |
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 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. Prior to the adoption of ASU No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting on January 1, 2019, share-based awards granted to non-employees are accounted for in accordance with ASC 505-50, Equity-Based Payments to Non-Employee. All transactions in which services are received in exchange for share-based awards are accounted for based on the fair value of the consideration received or the fair value of the awards issued, whichever is more reliably measurable. Share-based compensation is measured at fair value at the earlier of the commitment date or the date the services are completed. The Group remeasures the awards using the then-current fair value at each reporting date until the measurement date, generally when the services are completed and awards are vested, and attributes the changes in those fair values over the service period by straight-line method. Under ASU No. 2018-07, the accounting for awards to non-employees are similar to the model for employee awards. Stock options and restricted share units granted generally vest over four years. Prior to completion of the IPO, the exercise price of each granted stock option was US$0.0001, the Company used intrinsic value (approximately the fair value of each of the Company’s ordinary share) on the grant date to estimate the fair value of the stock options granted. 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 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 segments for the purpose of internal reports. The Group does not distinguish revenues, costs and expenses between segments 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 reportable segment. As most of the Group’s long‑lived assets are all located in the PRC and all the Group’s revenues are derived from the PRC, no geographical segments are presented. |
Statutory Reserves | (hh) Statutory reserves The Company’s subsidiaries, VIEs and 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 Group’s VIEs and VIE’s 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, 2018, 2019 and 2020, profit appropriation to general reserve fund and statutory surplus fund for the Group’s entities incorporated in the PRC was approximately RMB144.4 million, RMB152.1 million and RMB296.9 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 time deposits denominated in RMB that are subject to such government controls amounted to RMB5,018.1 million and RMB4,276.9 million as of December 31, 2019 and December 31, 2020, 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 Chinese Banking and Insurance Regulatory Commission, or 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 direct deposits, and back-to-back guarantees to the insurance companies and guarantee companies. 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 could 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, including increasing the proportion of investor protection measures through its own financial guarantee companies. Concentration of credit risk Credit risk is one of the most significant risks for the Group’s installment purchase loans and personal installment 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 time deposits, accrued interest receivable, prepaid expenses 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 time deposits at reputable financial institutions in the PRC and at international financial institutions with high ratings from internationally recognized rating agencies. As of December 31, 2020, approximately 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, contract assets and service fees receivable and guarantee receivables due from customers of the Group that individually accounted for greater than 10% of the Group’s carrying amount of financing receivables, contract assets and service fees receivable and guarantee receivables as of December 31, 2019 and December 31, 2020, respectively. There were two, two and three inventory suppliers accounted for more than 10% of the Group’s total purchases for the years ended December 31, 2018, 2019 and 2020, respectively. As of December 31, 2019 2020 Inventory supplier A 11.9 % 16.9 % Inventory supplier B 11.4 % 16.8 % Inventory supplier C 12.7 % 10.7 % Inventory supplier D * 24.4 % * Less than 10%. There was no funding partner, including Individual Investor or Institutional Funding Partner, that accounted for more than 10% of the Group’s total funding cost for the years ended December 31 , 2018 and 2019, respectively. There was one 2020 As of December 31, 2019 2020 Institutional Funding Partner A 10.7 % 21.4 % There was no funding partner, including Individual Investor or Institutional Funding Partner, that accounted for There were one Institutional Funding Partners that accounted , 2019. , 2020. As of December 31, 2019, one insurance company and two guarantee companies accounted for more than 10% of the Group’s deposits to insurance companies and guarantee companies. As of December 31, 2020, one insurance company and three guarantee companies accounted for more than 10% of the Group’s deposits to insurance companies and guarantee companies. As of December 31, 2019 2020 Guarantee Company A 17.6 % 19.6 % Insurance Company B 39.1 % 18.8 % Guarantee Company C 16.1 % * Guarantee Company D * 13.6 % Guarantee Company E * 12.6 % * Less than 10%. Impact of COVID-19 The COVID-19 pandemic h The Group has assessed various accounting estimates and other matters, including credit losses for financial assets, long-term investments, share-based compensation, valuation allowances for deferred tax assets and revenue recognition. Based on current assessment of these estimates, although the COVID-19 outbreak adversely affected the Group’s business in early 2020, the Group concluded that there would be no material impact on the Group’s long-term forecast. While the adverse impact from COVID-19 is currently expected to be temporary, there is uncertainty around the duration of these disruptions and the possibility of other adverse effects on the Group’s business, and the Group will continue to monitor for potential credit risk as the impact of the COVID-19 pandemic evolves. |
Recent Accounting Pronouncements | (jj) Recent accounting pronouncements In January 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-01, Investments — Equity Securities (Topic 321), Investments — Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) — Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 Financial Instruments In March 2020, the FASB issued ASU No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting", which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In January 2021, FASB issued ASU No. 2021-01, “Reference Rate Reform (Topic 848)”, which clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The amendments are effective for all entities beginning on March 12, 2020, and the Company may elect to apply the amendments prospectively through December 31, 2022. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial statements. In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40)—Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020, the Company’s principal subsidiaries, consolidated VIEs and subsidiaries of VIEs are as follows: Date of Incorporation/ Establishment Place of Incorporation/ Establishment Percentage of Direct or Indirect Economic Interest 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 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 Technology”) 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 Qianhai Juzi Information Technology Co., Ltd. (“Qianhai Juzi”) 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. (“Shenzhen Dingsheng Technology”) March 23, 2017 Shenzhen, PRC 100% Financial technology services Shenzhen Lexin Financing Guarantee Co., Ltd. (“Shenzhen Lexin Financing Guarantee”) September 14, 2017 Shenzhen, PRC 100% Financing guarantee services Beihai Aurora Technology Co., Ltd. (“Beihai Aurora”) June 19, 2018 Beihai, PRC 100% Financial technology services |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2019 2020 (RMB in thousands) Total assets 16,592,936 18,748,833 Total liabilities 12,659,845 17,381,265 For the Year Ended December 31, 2018 2019 2020 (RMB in thousands) Revenue from third parties 7,596,896 10,603,507 11,579,992 Revenue from the Company and its subsidiaries — 5,210 449 Total operating revenue 7,596,896 10,608,717 11,580,441 Net income 1,088,805 1,691,019 816,113 |
Schedule of Obligations Associated with Guarantee Liabilities Prior to Adoption of ASC 326 | The following table sets forth the activities of the Group’s obligations associated with the guarantee liabilities for the year ended December 31, 2019 prior to the adoption of ASC 326: For the year ended December 31, 2019 (RMB in thousands) Opening balances 456,276 Fair value of guarantee liabilities at inception of new loans 1,024,331 Release of guarantee liabilities upon the Borrowers’ repayment (424,962 ) Transfer from guarantee previously accounted for as derivatives* 1,325,935 Contingent liability 179,417 Payouts during the period (2,926,080 ) Recoveries during the period 2,091,451 Ending balances 1,726,368 * Since November 2019, the Group ceased to compensate interest repayment under the original terms of the loans to the Institutional Funding Partners, in the event that Borrowers early repay their loans. According to relevant financial guarantee contracts with certain Institutional Funding Partners, the guarantee provided by the Group met the scope exception under ASC 815-10-15-58 thereafter. Consequently, this financial guarantee previously provided for the outstanding off-balance sheet loans and accounted for as derivatives under ASC 815 was derecognized and accounted for as guarantee liabilities thereafter under ASC 460, which resulted in an increase in guarantee liabilities of RMB1.3 billion and corresponding guarantee receivables of RMB0.8 billion during the year ended December 31, 2019. |
Schedule of Obligations Associated with Deferred Guarantee Income After Adoption of ASC 326 | The following table sets forth the activities of the Group’s obligations associated with the deferred guarantee income for the years ended December 31, 2020 after the adoption of ASC 326: For the Year Ended December 31, 2020 (RMB in thousands) Opening balances — Cumulative effect due to the adoption of ASC 326 (Note 2(g)) 1,481,814 Fair value of guarantee liabilities at inception of new loans 1,532,461 Release of deferred guarantee income (2,319,693 ) Ending balances 694,582 |
Schedule of Obligations Associated with Contingent Guarantee Liabilities After Adoption of ASC 326 | The following table sets forth the activities of the Group’s obligations associated with the contingent guarantee liabilities for the year ended December 31, 2020 after the adoption of ASC 326: For the Year Ended December 31, 2020 (RMB in thousands) Opening balances — Cumulative effect due to the adoption of ASC 326 (Note 2(g)) 2,214,128 Provision for credit losses of contingent liabilities of guarantee 2,880,590 Net cash payout (3,355,931 ) Ending balances 1,738,787 |
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, 2018 2019 2020 (RMB in thousands) Online direct sales and services income: Online direct sales 2,396,680 3,623,991 1,900,835 Membership services 124,066 112,558 113,107 Other services 79,848 92,292 68,890 Total 2,600,594 3,828,841 2,082,832 For the Year Ended December 31, 2018 2019 2020 (RMB in thousands) Loan facilitation and servicing fees-credit oriented: Loan facilitation and matching service fee-credit oriented 1,494,822 3,868,044 2,628,941 Post-origination service fees-credit oriented 289,054 643,399 1,087,567 Investment Program management service fees-credit oriented 91,331 300,425 70,488 Total 1,875,207 4,811,868 3,786,996 For the Year Ended December 31, 2018 2019 2020 (RMB in thousands) Platform-based services income: Loan facilitation and matching service fee-performance based 133,841 556,143 1,656,998 Post-origination service fees-performance based 15,500 92,373 273,837 Loan facilitation and servicing fees-volume based 51,269 167,458 106,007 Total 200,610 815,974 2,036,842 |
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, 2018 2019 2020 (RMB in thousands) Revenues recognized at point-in-time 4,156,460 8,307,928 6,361,671 Revenues recognized over time 519,951 1,148,755 1,544,999 Total 4,676,411 9,456,683 7,906,670 |
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, 2020 RMB in thousands 2021 46,597 2022 16,554 2023 6,896 2024 2,991 2025 and thereafter 4,709 Total future lease payments 77,747 Impact of discounting remaining lease payments (4,503 ) Total lease liabilities 73,244 - Short-term portion 45,577 - Long-term portion 27,667 |
Schedule of Supplemental Cash Flow Information Related to Operating Leases | For the Year ended December 31, 2020 RMB in thousands Cash payments for operating leases 58,501 Right-of-use assets obtained in exchange for operating lease liabilities 52,655 |
Inventory Supplier | Supplier Concentration Risk | |
Schedule of Concentration Risk | Four suppliers accounted for more than 10% of the Group’s accounts payable as of December 31, 2020 as follows: As of December 31, 2019 2020 Inventory supplier A 11.9 % 16.9 % Inventory supplier B 11.4 % 16.8 % Inventory supplier C 12.7 % 10.7 % Inventory supplier D * 24.4 % * Less than 10%. |
Long Term Funding Debt | Lender Concentration Risk | |
Schedule of Concentration Risk | Only one Institutional Funding Partner accounted for more than 10% of the Group’s funding debts as of December 31, 2019 and December 31, 2020 respectively as follows: |
Deposits to Insurance and Guarantee Companies | Deposits Concentration Risk | |
Schedule of Concentration Risk | As of December 31, 2020, one insurance company and three guarantee companies accounted for more than 10% of the Group’s deposits to insurance companies and guarantee companies. As of December 31, 2019 2020 Guarantee Company A 17.6 % 19.6 % Insurance Company B 39.1 % 18.8 % Guarantee Company C 16.1 % * Guarantee Company D * 13.6 % Guarantee Company E * 12.6 % * Less than 10%. |
ASC 326 | |
Schedule of Cumulative Effect of Changes on Consolidated Balance Sheet Due to Adoption of ASC 326 | The following table sets forth the cumulative effect of the changes on the Group’s Consolidated Balance Sheet as of January 1, 2020 due to the adoption of ASC 326: (RMB in thousands) As of December 31, 2019 Adjustments due to the adoption of ASC 326 As of January 1, 2020 Assets Cash and cash equivalents 2,085,234 (1,465 ) 2,083,769 Restricted cash 1,900,392 (1,848 ) 1,898,544 Restricted time deposits 1,966,643 (1,921 ) 1,964,722 Financing receivables, net 4,411,488 (229,661 ) 4,181,827 Accrued interest receivable, net 54,284 (1,681 ) 52,603 Guarantee receivables, net 1,464,977 (40,388 ) 1,424,589 Prepaid expenses and other current assets 1,324,924 (12,077 ) 1,312,847 Deposits to insurance companies and guarantee companies 1,251,003 (3,060 ) 1,247,943 Contract assets and service fees receivable, net 3,454,851 (26,045 ) 3,428,806 Other assets 454,421 (2,466 ) 451,955 Long-term investments 511,605 (3,588 ) 508,017 Liabilities Guarantee liabilities ( 1) (1,726,368) (2) 1,726,368 — Deferred guarantee income ( 1) — (1,481,814) (2) (1,481,814 ) Contingent guarantee liabilities ( 1) — (2,214,128) (2) (2,214,128 ) Total impact to allowance for credit losses (2,293,774 ) Deferred tax assets 157,138 78,803 235,941 Deferred tax liabilities (309,646 ) 296,471 (13,175 ) Total retained earnings impact (1,918,500 ) (1) Before the adoption of ASC 326, the guarantee liabilities subsequent to initial recognition were measured at the greater of the amount determined based on ASC 460 and the amount determined under ASC 450. An excess liability was recorded when the aggregate contingent liabilities under ASC 450 exceeded the balance of guarantee liabilities determined under ASC 460. After the adoption of ASC 326, a contingent liability in full amount determined using CECL lifetime methodology of the guarantee (i.e., the contingent aspect recorded as “Contingent guarantee liabilities”) shall be accounted for in addition to and separately from the guarantee liability (i.e., the noncontingent aspect recorded as “Deferred guarantee income”) accounted for under ASC 460. (2) As of December 31, 2019, the Group determined that the aggregate contingent liabilities under ASC 450 (RMB1,726.4 million) exceeded the balance of guarantee liabilities (RMB1,481.8 million) under ASC 460 and recorded an excess liability of RMB244.6 million. As a result of the adoption, RMB1,481.8 million of guarantee liabilities previously under ASC 460 was recorded as “Deferred guarantee income,” and RMB2,214.1 million of contingent guarantee liabilities is determined using CECL lifetime methodology compared to incurred loss methodology before the adoption. |
Financing Receivables, Net (Ta
Financing Receivables, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of Financing Receivables, Net | Financing receivables, net as of December 31, 2019 and 2020 consisted of the followings: As of December 31, 2019 2020 (RMB in thousands) Short-term: Installment purchase loans 748,717 457,407 Personal installment loans 3,322,235 4,969,154 Total short-term financing receivables 4,070,952 5,426,561 Allowance for credit losses (318,262 ) (508,013 ) Total short-term financing receivables, net 3,752,690 4,918,548 Long-term: Installment purchase loans 169,080 127,265 Personal installment loans 545,001 98,645 Total long-term financing receivables 714,081 225,910 Allowance for credit losses (55,283 ) (21,149 ) Total long-term financing receivables, net 658,798 204,761 |
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, 2019 and 2020: As of December 31, 2019 2020 (RMB in thousands) Due in months 0 - 12 4,070,952 5,426,561 13 - 24 621,957 182,107 25 - 36 92,075 23,388 Thereafter 49 20,415 Total financing receivables 4,785,033 5,652,471 |
Summary of Activities in Provision for Credit Losses | The activities in the provision for credit losses of financing receivables for the years ended December 31, 2018, 2019 and 2020, respectively, consisted of the following: For the year ended December 31, 2018 2019 2020 (RMB in thousands) Beginning balances (370,196 ) (384,036 ) (373,545 ) Cumulative effect due to the adoption of ASC 326 (Note 2(g)) — — (229,661 ) Provision for credit losses (884,056 ) (708,684 ) (779,235 ) Charge-offs 974,483 815,421 1,078,705 Recoveries from prior charge-offs (104,267 ) (96,246 ) (225,426 ) Ending balances (384,036 ) (373,545 ) (529,162 ) |
Summary of Aging Analysis of Past Due Financing Receivables | Aging analysis of past due financing receivables as of December 31, 2019 and 2020 are as follows: RMB in thousands 1 - 29 Days Past Due 30 - 59 Days Past Due 60 - 89 Days Past Due 90 - 179 Days Past Due 180 Days or Greater Past Due Total Past Due Current Total Installment purchase loans 9,160 5,197 4,217 9,636 — 28,210 889,587 917,797 Personal installment loans 149,574 86,792 74,208 180,822 — 491,396 3,375,840 3,867,236 December 31, 2019 158,734 91,989 78,425 190,458 — 519,606 4,265,427 4,785,033 Installment purchase loans 7,086 4,508 3,839 11,884 — 27,317 557,355 584,672 Personal installment loans 152,523 74,396 54,217 165,982 — 447,118 4,620,681 5,067,799 December 31, 2020 159,609 78,904 58,056 177,866 — 474,435 5,178,036 5,652,471 |
Summary of Net Recorded Investment of Financing Receivables by Credit Quality Indicator | The following tables present the net recorded investment of financing receivables within each credit quality indicator as of December 31, 2019 and 2020: As of December 31, 2019 As of December 31, 2020 Installment Purchase Loans Personal Installment Loans Installment Purchase Loans Personal Installment Loans (RMB in thousands) (RMB in thousands) Risk level: A 383,566 612,958 213,309 911,690 B 262,504 760,986 142,897 970,929 C 133,526 528,162 130,054 1,326,862 D 84,779 771,854 89,220 1,260,173 E 32,136 593,564 3,144 197,713 F 20,665 378,408 6,047 357,261 N and others 621 221,304 1 43,171 Total 917,797 3,867,236 584,672 5,067,799 |
Installment Purchase Loans | |
Summary of Amortized Cost within Each Credit Quality Indicator by Year of Origination for Five Origination Years and Beyond | The following tables present the amortized cost of installment purchase loans within each credit quality indicator by year of origination for five origination years and beyond, due to the adoption of ASC 326, as of December 31, 2020: Loans originated in Risk Level 2016 and before 2017 2018 2019 2020 Total (RMB in thousands) A — 32 9,128 38,554 165,595 213,309 B — 23 6,454 29,391 107,029 142,897 C — 39 3,877 25,966 100,172 130,054 D — 13 2,291 16,737 70,179 89,220 E — 1 90 548 2,505 3,144 F — 5 415 1,254 4,373 6,047 N and others — — — — 1 1 Total — 113 22,255 112,450 449,854 584,672 |
Personal Installment Loans | |
Summary of Amortized Cost within Each Credit Quality Indicator by Year of Origination for Five Origination Years and Beyond | The following tables present the amortized cost of personal installment loans within each credit quality indicator by year of origination for five origination years and beyond, due to the adoption of ASC 326, as of December 31, 2020: Loans originated in Risk Level 2016 and before 2017 2018 2019 2020 Total (RMB in thousands) A — 667 8,864 28,794 873,365 911,690 B — 457 7,488 31,108 931,876 970,929 C — 627 7,563 57,490 1,261,182 1,326,862 D — 177 5,200 73,001 1,181,795 1,260,173 E — 13 239 6,859 190,602 197,713 F — 49 1,348 27,267 328,597 357,261 N and others — 32 2,555 25,021 15,563 43,171 Total — 2,022 33,257 249,540 4,782,980 5,067,799 |
Contract Assets and Service F_2
Contract Assets and Service Fees Receivable, Net and Guarantee Receivables, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounts Receivable Net [Abstract] | |
Schedule of Contract Assets, Service Fees Receivable, and Guarantee Receivables | The following table provides information about the Group’s contract assets and service fees receivable and guarantee receivables with its customers: As of December 31, 2019 2020 (RMB in thousands) Short-term: Contract assets 2,799,430 2,964,670 Allowance for credit losses of contract assets (18,582 ) (22,923 ) Contract assets, net 2,780,848 2,941,747 Service fees receivable 267,440 808,586 Allowance for credit losses of service fees receivable (76,312 ) (42,684 ) Service fees receivable, net 191,128 765,902 Guarantee receivables 1,233,111 814,968 Allowance for credit losses of guarantee receivables (49,833 ) (58,771 ) Guarantee receivables, net 1,183,278 756,197 Long-term: Contract assets 485,720 500,959 Allowance for credit losses of contract assets (2,845 ) (18,970 ) Contract assets, net 482,875 481,989 Guarantee receivables 282,449 235,648 Allowance for credit losses of guarantee receivables (750 ) (16,994 ) Guarantee receivables, net 281,699 218,654 |
Schedule of Activities in the Provision for Credit Losses | The activities in the provision for credit losses of contract assets and service fees receivable and guarantee receivables for the years ended December 31, 2019 and 2020, respectively, consisted of the following: For the Year Ended December 31, 2019 2020 (RMB in thousands) Beginning balances (54,058 ) (148,322 ) Cumulative effect due to the adoption of ASC 326 (Note 2(g)) — (66,433 ) Provisions (153,176 ) (441,805 ) Charge-offs 68,072 529,380 Recoveries from prior charge-offs (9,160 ) (33,162 ) Ending balances (148,322 ) (160,342 ) |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Prepaid Expense And Other Assets Current [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | (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 Individual Investors or 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. |
Property, Equipment and Softw_2
Property, Equipment and Software, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property, Equipment and Software, Net | As of December 31, 2019 2020 (RMB in thousands) Computers and equipment 95,336 138,188 Furniture and fixtures 12,316 15,539 Leasehold improvement 35,499 56,462 Software 36,900 41,849 Construction in progress — 12,572 Total property, equipment and software 180,051 264,610 Accumulated depreciation and amortization (87,498 ) (138,916 ) Total property, equipment and software, net 92,553 125,694 |
Land Use Rights, Net (Tables)
Land Use Rights, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Land Use Rights, Net | For the year ended December 31, (RMB in thousands) Gross carrying amount 1,032,000 Accumulated amortization (31,533 ) Impairment — Net carrying amount 1,000,467 |
Schedule of Amortization Expenses For Future Periods | As of December 31, 2020, amortization expenses for future periods are estimated to be as follows: For the year ended December 31, (RMB in thousands) 2021 34,400 2022 34,400 2023 34,400 2024 34,400 2025 34,400 Thereafter 828,467 Total expected amortization expenses 1,000,467 |
Long-Term Investments (Tables)
Long-Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Long Term Investments [Abstract] | |
Carrying Value of Equity Investments Accounted Using Measurement Alternative | The following table summarizes the total carrying value of the Group’s equity investments accounted for using the measurement alternative as of December 31, 2019 and December 31, 2020 including cumulative unrealized upward or downward adjustments and impairment charges: As of December 31, 2019 2020 (RMB in thousands) Initial cost basis 286,842 263,532 Cumulative unrealized upward adjustments 70,016 87,813 Cumulative impairment charges (15,215 ) (84,371 ) Cumulative foreign currency translation adjustments 2,719 (2,823 ) Total carrying value at end of the period 344,362 264,151 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
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, 2019 and 2020: December 31, 2019 Level 1 Inputs Level 2 Inputs Level 3 Inputs Balances at Fair Value (RMB in thousands) Assets Restricted time deposits-current portion — 1,962,293 — 1,962,293 Restricted time deposits‑noncurrent portion — 4,350 — 4,350 Guarantee derivative assets — — 280,998 280,998 Total assets — 1,966,643 280,998 2,247,641 December 31, 2020 Level 1 Inputs Level 2 Inputs Level 3 Inputs Balances at Fair Value (RMB in thousands) Assets Restricted time deposits-current portion — 1,779,458 — 1,779,458 Loans at fair value — — 381,393 381,393 Total assets — 1,779,458 381,393 2,160,851 Liabilities Guarantee derivative liabilities — — 252,613 252,613 Total liabilities — — 252,613 252,613 |
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, 2019 and 2020: Range of Inputs December 31, 2019 December 31, 2020 Financial Instrument Unobservable Input Minimum Maximum Weighted- Average Minimum Maximum Weighted- Average Guarantee derivatives Cumulative loss rates (i) 1.4 % 13.6 % 3.3 % 3.1 % 13.3 % 6.3 % Margins on cost of guarantee services 35.0 % 35.0 % 35.0 % 10.0 % 10.0 % 10.0 % Loans at fair value Expected future recovery rates (ii) N/A N/A N/A 9.8 % 9.8 % 9.8 % (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. |
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, 2018 2019 2020 (RMB in thousands) Fair value of guarantee derivative liabilities/(assets) at beginning of the year (Level 3) 30,958 52,434 (280,998 ) Cash collection 449,778 1,108,398 1,107,646 Net cash payout (231,275 ) (1,151,504 ) (1,281,477 ) Change in fair value(i) (197,027 ) 212,256 707,442 Transfers of financial guarantee contracts (Note2(j)) — (502,582 ) — Fair value of guarantee derivative liabilities/(assets) at end of the year (Level 3) 52,434 (280,998 ) 252,613 (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, 2020 (RMB in thousands) Fair value of loans acquired/purchased at beginning of the year (Level 3) — Fair value at inception of loans acquired/purchased 7,067,271 Cash collection (6,638,596 ) Change in fair value(i) (47,282 ) Fair value of loans acquired/purchased at end of the year (Level 3) 381,393 (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, 2019 and 2020, respectively, given hypothetical changes in the cumulative loss rates: As of December 31, 2019 2020 (RMB in thousands, except for percentages) Weighted average cumulative loss rates(i) 3.3 % 6.3 % Decrease/(increase) in fair value of guarantee derivative assets if the cumulative loss rates: Increase by 10% (ii) 84,373 — Decrease by 10% (ii) (84,373 ) — Increase/(decrease) in fair value of guarantee derivative liabilities if the cumulative loss rates: Increase by 10% (ii) — 188,349 Decrease by 10% (ii) — (188,349 ) (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, 2020, given hypothetical changes in the expected future recovery rates: For the Year Ended December 31, 2020 (RMB in thousands, except for percentages) Weighted average expected future recovery rates(i) 9.8 % Increase/(decrease) in fair value of loans at fair value if the expected future recovery rates: Increase by 10% (ii) 38,139 Decrease by 10% (ii) (38,139 ) (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. |
Funding Debts (Tables)
Funding Debts (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2019 and 2020, respectively: As of December 31, 2019 2020 (RMB in thousands) Short-term: Liabilities to Individual Investors— Juzi Licai 793,356 — Liabilities to other funding partners 2,962,172 4,685,935 Total short-term funding debts 3,755,528 4,685,935 Long-term: Liabilities to other funding partners 450,595 825,814 Total long-term funding debts 450,595 825,814 |
Summary of the Remaining Contractual Maturity Dates of the Group's Funding Debts and Associated Interest Payments | The following table summarizes the contractual maturity dates of the Group’s funding debts and associated interest payments as of December 31, 2020. 1 - 12 months 13 - 24 months 25 - 36 months 37 - 48 months 49 - 60 months Total (RMB in thousands) Liabilities to other funding partners 4,685,935 825,814 — — — 5,511,749 Total funding debts 4,685,935 825,814 — — — 5,511,749 Interest payments(i) 270,186 14,529 — — — 284,715 Total interest payments 270,186 14,529 — — — 284,715 (i) Interest payments for funding debts |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | As of December 31, 2019 2020 (RMB in thousands) Funds payable to Institutional Funding Partners (i) 415,297 670,942 Tax payable 270,163 632,006 Payable for acquisition of land use rights (ii) - 516,000 Accrued payroll and welfare 327,827 364,500 Guarantee derivative liabilities at fair value (Note 9) - 252,613 Other payable to Individual Investors on Juzi Licai - 86,841 Accrued marketing expenses 71,849 78,681 Payable to third‑party sellers 90,133 55,704 Deferred service fees 47,887 51,966 Risk management fees 12,322 48,993 Short-term leasing liabilities 45,764 45,577 Accrued professional fees and outsourcing fees 31,401 37,684 Deferred interest and financial services income and others 36,816 23,038 Security deposits from third‑party sellers 14,087 10,718 Other accrued expenses 31,093 51,084 Total accrued expenses and other current liabilities 1,394,639 2,926,347 (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. (ii) In 2020, the Group obtained the land use rights from local authorities with a cash consideration of RMB1.0 billion. The Group has made the first installment payment of RMB516.0 million in February 2020, and the second installment payment of RMB516.0 million in February 2021. |
Related Party Balances and Tr_2
Related Party Balances and Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Related Parties and Their Relationships | 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. Ji'an Aojuxun Information Consulting Service Co., Ltd.(“Ji'an Aojuxun”) Ji’an Aojuxun is controlled by the immediate family member of the Group's senior management. JD.com, Inc. and its subsidiaries (“JD Group”) * JD Group is a shareholder of the Group Individual Director or Officer Directors or Officers of the Group *In considering the equity interests of the Company held by JD, the transaction volumes between the Company and JD as well as other relevant factors, management concluded that JD was no longer a related party of the Company starting from January 1, 2020. |
Schedule of Significant Related Party Transactions | For the Year Ended December 31, 2018 2019 2020 (RMB in thousands) Purchases of goods and services from Ji'an Aoxinlian — 7,200 20,658 Purchases of goods and services from Ji'an Aojuxun — 2,091 7,987 Purchases of goods and services from JD Group 607,086 827,574 — Total 607,086 836,865 28,645 |
Schedule of Amounts Due to Related Parties | As of December 31, 2019 2020 (RMB in thousands) Due to individual Director or Officer and his/her immediate family members under investment programs offered by the Group 40,804 61,871 Due to Ji'an Aoxinlian — 4,711 Total 40,804 66,582 |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2018, 2019 and 2020 are as follows: For the Year Ended December 31, 2018 2019 2020 (RMB in thousands, except for percentages) Income before income tax expense 2,109,528 2,706,511 685,609 Income/ (Loss) from non‑China operations (13,479 ) 41,461 15,143 Income from China operations 2,123,007 2,665,050 670,466 Income tax expense applicable to China operations 132,222 411,959 90,629 Effective tax rate for China operations 6.2 % 15.5 % 13.5 % |
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, VIEs, and subsidiaries of the VIEs: For the Year Ended December 31, 2018 2019 2020 (RMB in thousands) Current income tax expense 74,046 352,036 594,149 Deferred income tax expense 58,176 59,923 (503,520 ) Income tax expense 132,222 411,959 90,629 |
Schedule of Reconciliation Between Statutory EIT Rate and Effective Tax Rate for Group's China Operations | The following table sets` forth reconciliation between the statutory enterprise income tax (“EIT”) rate and the effective tax rate for the Group’s China operations: For the Year Ended December 31, 2018 2019 2020 Statutory EIT rate 25.0 % 25.0 % 25.0 % Change of tax position* (3.7 )% — (2.4 )% Effect of tax holidays (7.0 )% (9.0 )% (9.9 )% Tax effect of non‑deductible expense (0.5 )% (0.5 )% 1.1 % Changes in valuation allowance (7.6 )% ** (0.3 )% Effective tax rate for China operations 6.2 % 15.5 % 13.5 % * The Group’s PRC subsidiaries completed 2017 annual tax filings with relevant tax authorities in May 2018. The tax filing results provided additional insights as to the pre-tax deduction of qualified provision for credit losses of financing receivables. Accordingly, current income tax liability of RMB78.0 million and valuation allowance of RMB114.7 million recognized as of December 31, 2017 in relation to the Group’s provision for credit losses of financing receivables were reversed in 2018. In the third quarter of 2020, RMB16.2 million income tax provision relating to 2019 was reversed as one subsidiary of the Group was certified to be qualified for using a preferential tax rate of 10% for 2019 annual tax clearance in this quarter. ** Less than 0.1%. |
Schedule of Effect of Tax Holiday Related to China Operations | The following table sets forth the effect of tax holiday related to China operations: For the Year Ended December 31, 2018 2019 2020 (In thousands, except per share amount) Tax holiday effect 148,350 239,732 66,110 Basic net income per share effect 0.44 0.67 0.18 Diluted net income per share effect 0.41 0.64 0.16 |
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, 2019 2020 Deferred tax assets - Deferred guarantee income and other accrued expenses — 477,023 - Contingent guarantee liabilities — 434,697 - Provision for credit losses 93,386 359,293 - Advertising expenses in excess of deduction limit 73,970 54,970 - Net operating loss carryforwards 8,648 13,649 - Guarantee liabilities and other accrued expenses 406,973 — Less: valuation allowance (6,662 ) (4,429 ) Total deferred tax assets 576,315 1,335,203 Net deferred tax assets 157,138 747,332 The components of the deferred tax liabilities are as follows: For the Year Ended December 31, 2019 2020 Deferred tax liabilities -Contract assets and service fees receivable 550,425 490,204 -Guarantee receivables 178,398 118,713 Total deferred tax liabilities 728,823 608,917 Net deferred tax liabilities 309,646 21,046 |
Schedule of Movement of Valuation Allowance | For the Year Ended December 31, 2018 2019 2020 Balance at beginning of the year (246,508 ) (6,785 ) (6,662 ) Additions (5,245 ) (4,255 ) (2,243 ) Reversals 244,968 4,378 4,476 Balance at end of the year (6,785 ) (6,662 ) (4,429 ) |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2018 2019 2020 (RMB in thousands, except for share and per share data) Basic net income per share calculation: Numerator: Net income attributable to ordinary shareholders 1,977,306 2,294,552 594,980 Denominator: Weighted average number of ordinary shares outstanding—basic 337,883,964 355,625,970 364,733,164 Net income per share attributable to ordinary shareholders—basic 5.85 6.45 1.63 Diluted net income per share calculation: Numerator: Net income attributable to ordinary shareholders 1,977,306 2,294,552 594,980 Interest expense associated with convertible notes reversed — 14,261 47,781 Net income attributable to ordinary shareholders for calculating diluted net income per share 1,977,306 2,308,813 642,761 Denominator: Weighted average number of ordinary shares outstanding—basic 337,883,964 355,625,970 364,733,164 Ordinary shares issuable upon the exercise of outstanding stock options using the treasury stock method 24,875,327 6,470,848 3,255,913 Ordinary shares issuable upon the vesting of outstanding restricted share units using the treasury stock method 3,270 1,170,713 383,590 Ordinary shares issuable upon the conversion of convertible notes using the if—converted method — 12,563,600 42,857,143 Weighted average number of ordinary shares outstanding—diluted 362,762,561 375,831,131 411,229,810 Net income per share attributable to ordinary shareholders—diluted 5.45 6.14 1.56 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Share-based Compensation Expenses | Share‑based compensation was recognized in operating cost and expenses for the years ended December 31, 2018, 2019 and 2020 as follows: For the Year Ended December 31, 2018 2019 2020 (RMB in thousands) Processing and servicing cost 8,111 10,472 11,391 Sales and marketing expenses 18,223 28,611 32,486 Research and development expenses 33,169 42,977 46,116 General and administrative expenses 63,133 95,202 108,832 Total share‑based compensation expenses 122,636 177,262 198,825 |
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, 2017 20,483 Granted (7,576 ) Cancelled/forfeited 926 December 31, 2018 13,833 Additions 3,512 Granted (10,849 ) Cancelled/forfeited 1,903 December 31, 2019 8,399 Additions 3,594 Granted (3,005 ) Cancelled/forfeited 3,035 Expired (496 ) December 31, 2020 11,527 |
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 Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (In thousands) US$ (In years) (RMB in thousands) December 31, 2017 34,648 0.0001 7.44 1,573,424 Granted* 6,263 5.1500 Exercised (19,911 ) 0.0001 Cancelled/forfeited (858 ) 1.9962 December 31, 2018 20,142 1.5164 7.95 353,559 Granted* 5,091 0.5000 Exercised (7,798 ) 0.2548 Cancelled/forfeited (1,194 ) 2.3996 December 31, 2019 16,241 1.7386 8.22 589,871 Granted* 2,829 0.5000 Exercised (3,140 ) 0.2399 Cancelled/forfeited (2,270 ) 2.1589 December 31, 2020 13,660 1.7569 7.87 189,072 Vested and expected to vest as of December 31, 2020 12,765 1.7723 7.86 175,919 Exercisable as of December 31, 2020 5,066 2.0893 7.02 64,574 * 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 Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (In thousands) US$ (In years) (RMB in thousands) December 31, 2017 500 0.0001 9.58 22,706 Granted — — Exercised — — Cancelled/forfeited — — December 31, 2018 500 0.0001 8.58 12,439 Granted — — Exercised (90 ) 0.0001 Cancelled/forfeited — — December 31, 2019 410 0.0001 7.58 19,864 Granted — — — — Exercised — — — — Cancelled/forfeited — — — — December 31, 2020 410 0.0001 6.58 8,962 Vested and expected to vest as of December 31, 2020 410 0.0001 6.58 8,962 Exercisable as of December 31, 2020 285 0.0001 6.58 6,229 |
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, 2018 2019 2020 Expected volatility 52.1%~54.9% 41.81%~42.09% 45.25%~48.26% Risk-free interest rate (per annum) 3.65%~3.74% 1.80%~1.81% 0.67%~0.88% Exercise multiples 2.2~2.8 1.5~2.5 1.5 Expected dividend yield — — — Expected term (in years) 9.8~10.0 10.0 10.0 Fair value of the underlying shares on the date of grants (US$) 3.70~4.57 5.02~6.02 3.15~4.15 |
Summary of Activities for Restricted Shares Units | The following table sets forth the summary of activities for restricted share units granted to employees, directors and non-employee directors: Shares Outstanding Weighted Average Grant Date Fair Value (In thousands) US$ December 31, 2017 — — Granted* 1,313 7.45 Vested (8 ) 7.99 Cancelled/forfeited (68 ) 7.02 December 31, 2018 1,237 7.47 Granted* 5,758 5.10 Vested (292 ) 7.49 Cancelled/forfeited (709 ) 5.78 December 31, 2019 5,994 5.39 Granted* 176 4.27 Vested (1,527 ) 5.43 Cancelled forfeited (989 ) 5.57 December 31, 2020 3,654 5.27 * |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 months 13 – 24 months 25 – 36 months 37 – 48 months 49 – 60 months and beyond Total (RMB in thousands) Funding debts obligations Liabilities to other funding partners 4,685,935 825,814 — — — 5,511,749 Interest payments (i) 270,186 14,529 — — — 284,715 Total funding debts obligations 4,956,121 840,343 — — — 5,796,464 Short–term borrowings 1,827,063 — — — — 1,827,063 Interest payments (i) 39,255 — — — — 39,255 Total short–term borrowings obligations 1,866,318 — — — — 1,866,318 Convertible notes — — — — 1,957,470 1,957,470 Interest payments (i) 39,149 39,149 39,149 39,149 76,668 233,264 Total convertible notes obligations 39,149 39,149 39,149 39,149 2,034,138 2,190,734 Commitment to purchase delinquent loans (ii) 785,177 — — — — 785,177 Total purchase obligations 785,177 — — — — 785,177 (i) Interest payments with variable interest rates are calculated using the interest rate as of December 31, 2020. (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, 2020. |
Parent Company Only Condensed_2
Parent Company Only Condensed Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheets | Condensed Balance Sheets (In thousands, except for share and per share data) As of December 31, 2019 2020 RMB RMB US$ Note 2(e) ASSETS Current assets Cash and cash equivalents 139,917 846 130 Amounts due from subsidiaries and other related parties 2,449,933 2,430,814 372,538 Prepaid expenses and other current assets 15,243 6,272 961 Total current assets 2,605,093 2,437,932 373,629 Non-current assets Investments in subsidiaries, VIEs and VIEs’ subsidiaries 6,021,088 4,945,849 757,985 Long-term investments 77,054 68,151 10,445 Other assets 1,020 — — Total non-current assets 6,099,162 5,014,000 768,430 Total assets 8,704,255 7,451,932 1,142,059 LIABILITIES Current liabilities Amounts due to subsidiaries, VIEs and VIEs’ subsidiaries 18,468 18,264 2,799 Accrued interest payable 12,136 9,233 1,415 Accrued expenses and other current liabilities 28,061 13,470 2,065 Total current liabilities 58,665 40,967 6,279 Non-current liabilities Convertible notes 2,046,051 1,920,227 294,288 Total non-current liabilities 2,046,051 1,920,227 294,288 Total liabilities 2,104,716 1,961,194 300,567 Commitments and contingencies (Note 20) SHAREHOLDERS’ EQUITY: Class A Ordinary Shares ($0.0001 par value per share; 1,889,352,801 shares authorized, 263,614,582 shares issued, 258,690,272 shares outstanding as of December 31, 2019; 1,889,352,801 shares authorized, 268,935,832 shares issued, 267,356,928 shares outstanding as of December 31, 2020) 170 176 27 Class B Ordinary Shares ($0.0001 par value per share; 110,647,199 shares authorized, 100,727,057 shares issued and outstanding as of December 31, 2019; 110,647,199 shares authorized, 96,727,057 shares issued and outstanding as of December 31, 2020) 61 58 9 Additional paid-in capital 2,519,886 2,724,006 417,472 Accumulated other comprehensive (loss)/income (7,288 ) 3,308 507 Retained earnings 4,086,710 2,763,190 423,477 Total shareholders’ equity 6,599,539 5,490,738 841,492 Total liabilities and shareholders’ equity 8,704,255 7,451,932 1,142,059 |
Condensed Statements of Operations and Comprehensive Income | Condensed Statements of Operations and Comprehensive Income (In thousands) For the Year Ended December 31, 2018 2019 2020 RMB RMB RMB US$ Note 2(e) Operating expenses: General and administrative expenses (15,686 ) (18,514 ) (15,707 ) (2,407 ) Total operating expenses (15,686 ) (18,514 ) (15,707 ) (2,407 ) Interest (expense)/income, net 4,304 (14,085 ) (47,783 ) (7,323 ) Equity in income of subsidiaries, VIEs and VIEs’subsidiaries 1,978,986 2,260,115 626,877 96,073 Other long-term investments related impairment (12,739 ) — — — Investment income 18,753 57,391 27,624 4,234 Others, net 3,688 9,645 3,969 608 Income before income tax expense 1,977,306 2,294,552 594,980 91,185 Income tax expense — — — — Net income 1,977,306 2,294,552 594,980 91,185 Other comprehensive income: Foreign currency translation adjustments, net of nil tax 643 7,020 10,596 1,624 Total comprehensive income 1,977,949 2,301,572 605,576 92,809 |
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows (In thousands) For the Year Ended December 31, 2018 2019 2020 RMB RMB RMB US$ Note 2(e) Net cash used in operating activities (126,773 ) (2,230,673 ) (143,317 ) (21,963 ) Cash flows from investing activities: — — — — Cash paid on long–term investments (655,959 ) (66,737 ) (17,558 ) (2,691 ) Proceeds from disposal of long-term investments — 9,000 27,557 4,223 Net cash (used in)/provided by investing activities (655,959 ) (57,737 ) 9,999 1,532 Cash flows from financing activities: — — — — Proceeds from share issuance upon the underwriters’ exercise of over–allotment options, net of issuance costs 95,125 — — — Proceeds from receivables from Pre–IPO Series C–1 preferred shareholders 170,790 348,264 — — Proceeds from issuance of convertible notes, net of debt discount — 2,096,408 — — Payment of debt issuance costs — (24,048 ) — — Payment of initial public offering expenses (23,908 ) — — — Exercise of share–based awards 14 10,968 7,970 1,221 Net cash provided by financing activities 242,021 2,431,592 7,970 1,221 Effect of exchange rate changes on cash and cash equivalents and restricted cash (28,773 ) (4,140 ) (13,607 ) (2,085 ) Net (decrease)/increase in cash and cash equivalents and restricted cash (569,484 ) 139,042 (138,955 ) (21,295 ) Cash and cash equivalents and restricted cash at beginning of the year 570,359 875 139,917 21,443 Effect on the cash and cash equivalents at beginning of the year due to the adoption of ASC 326 (Note 2(g)) — — (116 ) (18 ) Cash and cash equivalents and restricted cash at end of the year 875 139,917 846 130 |
Organization and Principal Ac_3
Organization and Principal Activities - Product Information - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Minimum | |
Product information | |
Age of borrowers | 18 years |
Minimum | Installment Purchase Loans | |
Product information | |
Term of the loan | 1 month |
Minimum | Personal Installment Loans | |
Product information | |
Term of the loan | 1 month |
Maximum | |
Product information | |
Age of borrowers | 36 years |
Maximum | Installment Purchase Loans | |
Product information | |
Term of the loan | 36 months |
Maximum | Personal Installment Loans | |
Product information | |
Term of the loan | 36 months |
Organization and Principal Ac_4
Organization and Principal Activities - Schedule of Percentage of Ownership in Principal Subsidiaries, Consolidated VIEs and Subsidiaries of VIEs (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Installment HK | |
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs | |
Direct or Indirect Economic Interest in Subsidiary (as a percent) | 100.00% |
Beijing Shijitong | |
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs | |
Direct or Indirect Economic Interest in Subsidiary (as a percent) | 100.00% |
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) | 100.00% |
Shenzhen Fenqile | |
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs | |
Direct or Indirect Economic Interest in Subsidiary (as a percent) | 100.00% |
Qianhai Juzi | |
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs | |
Direct or Indirect Economic Interest in Subsidiary (as a percent) | 100.00% |
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) | 100.00% |
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) | 100.00% |
Shenzhen Dingsheng Technology | |
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs | |
Direct or Indirect Economic Interest in Subsidiary (as a percent) | 100.00% |
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) | 100.00% |
Beihai Aurora | |
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs | |
Direct or Indirect Economic Interest in Subsidiary (as a percent) | 100.00% |
Beijing Lejiaxin | |
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs | |
Direct or Indirect Economic Interest in VIEs (as a percent) | 100.00% |
Shenzhen Xinjie | |
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs | |
Direct or Indirect Economic Interest in VIEs (as a percent) | 100.00% |
Qianhai Dingsheng | |
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs | |
Direct or Indirect Economic Interest in VIEs (as a percent) | 100.00% |
Mengtian Technology | |
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs | |
Direct or Indirect Economic Interest in VIEs (as a percent) | 100.00% |
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) | 100.00% |
Organization and Principal Ac_5
Organization and Principal Activities - Reorganization (Details) $ / shares in Units, ¥ in Millions, $ in Millions | Dec. 26, 2017$ / sharesshares | Jun. 30, 2018shares | Jan. 31, 2018CNY (¥)shares | Jan. 31, 2018USD ($)$ / sharesshares | Nov. 30, 2013$ / sharesshares | Dec. 31, 2020shares | Dec. 31, 2019shares | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) |
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 | $ 14.7 | ¥ 651.3 | $ 100.1 | |||||
Class A Ordinary Shares | |||||||||
Class Of Stock [Line Items] | |||||||||
Number of new shares issued (in shares) | shares | 27,000,000 | 27,000,000 | 27,000,000 | ||||||
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) $ / shares in Units, ¥ in Thousands | Jan. 01, 2020CNY (¥) | Dec. 31, 2020CNY (¥)itemSegment | Dec. 31, 2020USD ($)itemSegment$ / shares | Dec. 31, 2019CNY (¥)item | Dec. 31, 2018CNY (¥)item | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jan. 01, 2019CNY (¥) | Jan. 01, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Significant Accounting Policies [Line Items] | ||||||||||
Operating revenue | ¥ 11,645,255 | $ 1,784,714,000 | ¥ 10,603,507 | ¥ 7,596,896 | ||||||
Financing receivables reduced | 204,761 | 658,798 | $ 31,381,000 | |||||||
Contract assets and service fees receivable reduced | 3,454,851 | |||||||||
Foreign currency translation adjustments, net of nil tax | ¥ 10,596 | $ 1,624,000 | 7,020 | 643 | ||||||
Translation rate | 6.5250 | 6.5250 | ||||||||
Retained earnings | ¥ 2,113,956 | 3,734,397 | $ 323,978,000 | |||||||
Credit allowance of financial assets | ¥ 529,162 | 373,545 | 384,036 | ¥ 370,196 | ||||||
Number of major types of incentive coupons | item | 2 | 2 | ||||||||
Cash coupons and repayment coupon expense | ¥ 196,300 | 281,000 | 319,700 | |||||||
Referral code incentives recorded as sales and marketing expenses | 17,100 | 19,700 | 13,100 | |||||||
Revenue recognized that was included in the contract liabilities balance | ¥ 47,900 | 92,100 | ||||||||
Practical expedients, contract duration | true | true | ||||||||
Transaction price allocated to remaining performance | ¥ 1,101,300 | 827,100 | ||||||||
Remaining performance obligation is expected to be recognized as revenue (in years) | 2 years | 2 years | ||||||||
Practical expedients, amortization period | true | true | ||||||||
Cash equivalents | $ | 0 | $ 0 | ||||||||
Restricted cash under RSS through third-party custody bank | $ | $ 0 | |||||||||
Straight line basis amortized over land use right period | 30 years | 30 years | ||||||||
Advertising costs | ¥ 199,500 | ¥ 1,000,000 | 791,200 | |||||||
Lease, Practical Expedients, Package | true | true | ||||||||
Right-of-use assets | ¥ 113,200 | |||||||||
Operating Lease, Right-of-Use Asset, Statement of Financial Position | Other assets | Other assets | ||||||||
Weighted average remaining lease term | 2 years 4 months 24 days | 2 years 4 months 24 days | ||||||||
Weighted average discount rate | 4.91% | 4.91% | ||||||||
Rental expenses under operating leases | 47,500 | |||||||||
Operating lease cost | ¥ 57,900 | ¥ 54,900 | ||||||||
Short-term lease cost | ¥ 3,900 | 2,500 | ||||||||
Vesting period (in years) | 4 years | 4 years | ||||||||
Number of reportable segments | Segment | 1 | 1 | ||||||||
Minimum percentage of after-tax profit transferred by Chinese subsidiaries to general reserve fund (as a percent) | 10.00% | 10.00% | ||||||||
Maximum percentage criteria for appropriation of after-tax profit of Chinese subsidiaries to general reserve fund (as a percent) | 50.00% | 50.00% | ||||||||
Minimum percentage of after-tax profit transferred by VIEs to statutory surplus fund (as a percent) | 10.00% | 10.00% | ||||||||
Maximum percentage criteria for in appropriation of after-tax profit by VIEs to certain statutory surplus funds (as a percent) | 50.00% | 50.00% | ||||||||
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 | ¥ 296,900 | ¥ 152,100 | ¥ 144,400 | |||||||
Number of Individual Investor or Institutional Funding Partner that accounted for more than 10% of the Group's total funding cost | item | 1 | 1 | 0 | 0 | ||||||
Number of Individual Investor or Institutional Funding Partner that accounted for more than 10% of the Group's Funding Debts | item | 1 | 1 | 1 | |||||||
Number of institutional funding partners that accounted for more than 10% of the Group's origination of off-balance sheet loans | item | 2 | 2 | 1 | 0 | ||||||
Number of insurance company accounted for more than 10% of the Group's deposits to insurance companies and guarantee companies | item | 1 | 1 | 1 | |||||||
Number of guarantee company accounted for more than 10% of the Group's deposits to insurance companies and guarantee companies | item | 3 | 3 | 2 | |||||||
Revenue Concentration - Number of Borrowers Over 10% of Revenue | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Concentration risk (as a percent) | 0.00% | 0.00% | 0.00% | |||||||
Financing Receivables | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Concentration risk (as a percent) | 0.00% | 0.00% | 0.00% | |||||||
10% or More of Total Purchases, Number of Suppliers | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Number of inventory suppliers | item | 3 | 3 | 2 | 2 | ||||||
10% or More of Accounts Payable, Number of Suppliers | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Number of inventory suppliers | item | 4 | 4 | 3 | |||||||
Geographic Concentration Risk | Cash and Cash Equivalents, Restricted Cash and Restricted Time Deposits | PRC | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Cash and cash equivalents, restricted cash and restricted time deposits denominated in RMB that are subject to government controls | ¥ 5,018,100 | ¥ 4,276,900 | ||||||||
Concentration risk (as a percent) | 95.00% | 95.00% | ||||||||
Stock Options | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Vesting period (in years) | 4 years | 4 years | ||||||||
Exercise Price | $ / shares | $ 0.0001 | |||||||||
Restricted Share Units | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Vesting period (in years) | 4 years | 4 years | ||||||||
ASC 326 | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Credit allowance of financial assets | 229,661 | |||||||||
ASC 326 | Cumulative Effect Period Of Adoption Adjustment | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Contract assets and service fees receivable reduced | ¥ (26,045) | |||||||||
Retained earnings | (1,918,500) | |||||||||
Credit allowance of financial assets | 2,293,774 | |||||||||
Cumulative effect on retained earnings, tax | 400,000 | |||||||||
ASC 326 | Cumulative Effect Period Of Adoption Adjustment | Application of CECL Methodology on Credit Losses of Financial Assets Measured at Amortized Cost | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Retained earnings | (300,000) | |||||||||
Credit allowance of financial assets | 300,000 | |||||||||
ASC 326 | Cumulative Effect Period Of Adoption Adjustment | Application of CECL Methodology on Certain Off-balance Sheet Credit Exposures | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Retained earnings | ¥ (2,000,000) | |||||||||
ASC 606 | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | true | ||||||||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 1, 2018 | Jan. 1, 2018 | ||||||||
ASC 606 | Cumulative Effect Period Of Adoption Adjustment | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Retained earnings | ¥ 209,500 | |||||||||
ASU 2016-01 | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | true | ||||||||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 1, 2018 | Jan. 1, 2018 | ||||||||
Minimum | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Investor period term | 7 days | 7 days | ||||||||
Maximum | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Investor period term | 24 months | 24 months | ||||||||
VIEs | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Operating revenue | ¥ 11,580,441 | 10,608,717 | ¥ 7,596,896 | |||||||
Registered capitals and PRC statutory reserves | ¥ 5,227,400 | |||||||||
Beijing Shijitong | Nominee Shareholders | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Extension term of the loan | 10 years | 10 years | ||||||||
Credit-oriented services income | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Operating revenue | ¥ 7,525,581 | $ 1,153,347,000 | 5,958,692 | ¥ 4,795,692 | ||||||
Out-of-period Adjustment | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Financing receivables reduced | 63,600 | |||||||||
Contract assets and service fees receivable reduced | 2,500 | |||||||||
Out-of-period Adjustment | Credit-oriented services income | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Operating revenue | ¥ 66,100 |
Significant Accounting Polici_5
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, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | |
Variable Interest Entity [Line Items] | |||||
Total assets | ¥ 20,345,165 | ¥ 19,236,294 | $ 3,118,032 | ||
Total liabilities | 14,814,427 | 12,636,755 | $ 2,270,410 | ||
Operating revenue | 11,645,255 | $ 1,784,714 | 10,603,507 | ¥ 7,596,896 | |
Net income | 594,980 | 91,185 | 2,294,552 | 1,977,306 | |
Net cash provided by/(used in) operating activities | (211,019) | (32,338) | (778,504) | 2,794,710 | |
Net cash (used in)/provided by investing activities | (2,136,429) | (327,422) | (783,579) | 3,603,990 | |
Net cash provided by/(used in) financing activities | 1,233,011 | 188,966 | 3,058,821 | (5,617,941) | |
Net increase in cash and cash equivalents and restricted cash | (1,142,407) | (175,081) | 1,488,492 | 761,848 | |
Cash and cash equivalents and restricted cash at beginning of the year | 3,985,626 | 610,824 | 2,497,134 | 1,735,286 | |
Cash and cash equivalents and restricted cash at end of the year | 2,839,906 | 435,235 | 3,985,626 | 2,497,134 | |
Effect Due to the Adoption of ASC 326 (Note 2(g)) | |||||
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents and restricted cash at end of the year | (3,313) | $ (508) | |||
VIEs | |||||
Variable Interest Entity [Line Items] | |||||
Total assets | 18,748,833 | 16,592,936 | |||
Total liabilities | 17,381,265 | 12,659,845 | |||
Operating revenue | 11,580,441 | 10,608,717 | 7,596,896 | ||
Net income | 816,113 | 1,691,019 | 1,088,805 | ||
Net cash provided by/(used in) operating activities | 1,442,592 | (1,299,951) | 2,158,663 | ||
Net cash (used in)/provided by investing activities | (2,905,743) | 763,395 | 3,783,432 | ||
Net cash provided by/(used in) financing activities | 1,242,610 | 872,227 | (4,540,746) | ||
Net increase in cash and cash equivalents and restricted cash | (220,541) | 335,671 | 1,401,349 | ||
Cash and cash equivalents and restricted cash at beginning of the year | 2,797,805 | 2,462,134 | 1,060,785 | ||
Cash and cash equivalents and restricted cash at end of the year | 2,574,938 | 2,797,805 | 2,462,134 | ||
VIEs | Effect Due to the Adoption of ASC 326 (Note 2(g)) | |||||
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents and restricted cash at end of the year | (2,326) | ||||
VIEs | Revenue from Third Parties | |||||
Variable Interest Entity [Line Items] | |||||
Operating revenue | 11,579,992 | 10,603,507 | ¥ 7,596,896 | ||
VIEs | Revenue from Company and its Subsidiaries | |||||
Variable Interest Entity [Line Items] | |||||
Operating revenue | ¥ 449 | ¥ 5,210 |
Significant Accounting Polici_6
Significant Accounting Policies - Schedule of Cumulative Effect of Changes on Consolidated Balance Sheet Due to Adoption of ASC 326 (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Jan. 01, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
ASSETS | |||||||
Cash and cash equivalents | ¥ 1,563,755 | $ 239,656 | ¥ 2,085,234 | $ 319,576 | ¥ 1,148,292 | ¥ 1,126,475 | |
Restricted cash | 1,900,392 | ||||||
Restricted time deposits | 1,966,643 | ||||||
Financing receivables, net | 4,411,488 | ||||||
Accrued interest receivable, net | 54,284 | ||||||
Guarantee receivables, net | 1,464,977 | ||||||
Prepaid expenses and other current assets | 1,004,845 | 153,999 | 1,324,924 | ||||
Deposits to insurance companies and guarantee companies | 1,066,281 | 163,415 | 1,251,003 | ||||
Contract assets and service fees receivable, net | 3,454,851 | ||||||
Other assets | 462,285 | 70,848 | 454,421 | ||||
Long‑term investments | 521,802 | 79,970 | 511,605 | ||||
LIABILITIES | |||||||
Guarantee liabilities | (1,726,368) | ||||||
Deferred guarantee income | (694,582) | (106,449) | |||||
Allowance for credit losses | (529,162) | (373,545) | ¥ (384,036) | ¥ (370,196) | |||
Deferred tax assets | 747,332 | 114,534 | 157,138 | ||||
Deferred tax liabilities | (21,046) | (3,225) | (309,646) | ||||
Retained earnings | 2,113,956 | $ 323,978 | 3,734,397 | ||||
ASC 326 | |||||||
LIABILITIES | |||||||
Contingent guarantee liabilities | ¥ (1,738,787) | ||||||
Allowance for credit losses | (229,661) | ||||||
ASC 326 | Cumulative Effect Period Of Adoption Adjustment | |||||||
ASSETS | |||||||
Cash and cash equivalents | ¥ (1,465) | ||||||
Restricted cash | (1,848) | ||||||
Restricted time deposits | (1,921) | ||||||
Financing receivables, net | (229,661) | ||||||
Accrued interest receivable, net | (1,681) | ||||||
Guarantee receivables, net | (40,388) | ||||||
Prepaid expenses and other current assets | (12,077) | ||||||
Deposits to insurance companies and guarantee companies | (3,060) | ||||||
Contract assets and service fees receivable, net | (26,045) | ||||||
Other assets | (2,466) | ||||||
Long‑term investments | (3,588) | ||||||
LIABILITIES | |||||||
Guarantee liabilities | 1,726,368 | ||||||
Deferred guarantee income | (1,481,814) | ||||||
Contingent guarantee liabilities | (2,214,128) | ¥ (2,214,128) | |||||
Allowance for credit losses | (2,293,774) | ||||||
Deferred tax assets | 78,803 | ||||||
Deferred tax liabilities | 296,471 | ||||||
Retained earnings | (1,918,500) | ||||||
ASC 326 | Cumulative Effect, Period of Adoption, Adjusted Balance | |||||||
ASSETS | |||||||
Cash and cash equivalents | 2,083,769 | ||||||
Restricted cash | 1,898,544 | ||||||
Restricted time deposits | 1,964,722 | ||||||
Financing receivables, net | 4,181,827 | ||||||
Accrued interest receivable, net | 52,603 | ||||||
Guarantee receivables, net | 1,424,589 | ||||||
Prepaid expenses and other current assets | 1,312,847 | ||||||
Deposits to insurance companies and guarantee companies | 1,247,943 | ||||||
Contract assets and service fees receivable, net | 3,428,806 | ||||||
Other assets | 451,955 | ||||||
Long‑term investments | 508,017 | ||||||
LIABILITIES | |||||||
Deferred guarantee income | (1,481,814) | ||||||
Contingent guarantee liabilities | (2,214,128) | ||||||
Deferred tax assets | 235,941 | ||||||
Deferred tax liabilities | ¥ (13,175) |
Significant Accounting Polici_7
Significant Accounting Policies - Schedule of Cumulative Effect of Changes on Consolidated Balance Sheet Due to Adoption of ASC 326 (Parenthetical) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Jan. 01, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Guarantee liabilities | ¥ 1,726,368 | |||
Excess Liability | 244,600 | |||
Deferred guarantee income | ¥ 694,582 | $ 106,449 | ||
ASC 460 | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Guarantee liabilities | 1,481,800 | |||
ASC 326 | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Contingent guarantee liabilities | ¥ 1,738,787 | |||
ASC 326 | Cumulative Effect Period Of Adoption Adjustment | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Guarantee liabilities | ¥ (1,726,368) | |||
Deferred guarantee income | 1,481,814 | |||
Contingent guarantee liabilities | ¥ 2,214,128 | ¥ 2,214,128 |
Significant Accounting Polici_8
Significant Accounting Policies - Schedule of Group Obligations Associated with Guarantee Liabilities Prior To Adoption of ASC 326 (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2019CNY (¥) | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Opening balances | |
Ending balances | ¥ 1,726,368 |
Guarantee Obligations | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Opening balances | 456,276 |
Fair value of guarantee liabilities at inception of new loans | 1,024,331 |
Release of guarantee liabilities upon the Borrowers’ repayment | (424,962) |
Transfer from guarantee previously accounted for as derivatives* | 1,325,935 |
Contingent liability | 179,417 |
Payouts during the period | (2,926,080) |
Recoveries during the period | 2,091,451 |
Ending balances | ¥ 1,726,368 |
Significant Accounting Polici_9
Significant Accounting Policies - Schedule of Group Obligations Associated with Guarantee Liabilities Prior To Adoption of ASC 326 (Parenthetical) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Guarantee liabilities | ¥ 1,493,860 | ¥ 587,471 | ||
Increase in guarantee receivables | ¥ (274,799) | $ (42,115) | 981,449 | ¥ 534,112 |
ASC 460 | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Guarantee liabilities | 1,300,000 | |||
Increase in guarantee receivables | ¥ 800,000 |
Significant Accounting Polic_10
Significant Accounting Policies - Schedule of Obligations Associated with Deferred Guarantee Income After Adoption of ASC 326 (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Ending balances | ¥ 694,582 | $ 106,449 |
Accounting Standards Update 2014-09 | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Fair value of guarantee liabilities at inception of new loans | 1,532,461 | |
Release of deferred guarantee income | (2,319,693) | |
Ending balances | 694,582 | |
Accounting Standards Update 2014-09 | Cumulative Effect Period Of Adoption Adjustment | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Opening balances | ¥ 1,481,814 | |
Ending balances |
Significant Accounting Polic_11
Significant Accounting Policies - Schedule of Obligations Associated with Contingent Guarantee Liabilities After Adoption of ASC 326 (Details) - 12 months ended Dec. 31, 2020 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Provision for credit losses of contingent liabilities of guarantee | ¥ 2,880,590 | $ 441,470 |
ASC 326 | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Provision for credit losses of contingent liabilities of guarantee | 2,880,590 | |
Net cash payout | (3,355,931) | |
Ending balances | 1,738,787 | |
ASC 326 | Effect Due to the Adoption of ASC 326 (Note 2(g)) | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Opening balances | ¥ 2,214,128 |
Significant Accounting Polic_12
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | |||
Revenue | ¥ 7,906,670 | ¥ 9,456,683 | ¥ 4,676,411 |
Online direct sales | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 1,900,835 | 3,623,991 | 2,396,680 |
Membership services | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 113,107 | 112,558 | 124,066 |
Other Services | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 68,890 | 92,292 | 79,848 |
Online direct sales and services income | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 2,082,832 | 3,828,841 | 2,600,594 |
Loan facilitation and servicing fees-credit oriented | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 3,786,996 | 4,811,868 | 1,875,207 |
Loan facilitation and servicing fees-credit oriented | Loan Facilitation and Matching Service Fee Credit Oriented | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 2,628,941 | 3,868,044 | 1,494,822 |
Loan facilitation and servicing fees-credit oriented | Post-Origination Service Fees-Credit Oriented | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 1,087,567 | 643,399 | 289,054 |
Loan facilitation and servicing fees-credit oriented | Investment Program Management Service Fees-Credit Oriented | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 70,488 | 300,425 | 91,331 |
Platform-based services income | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 2,036,842 | 815,974 | 200,610 |
Platform-based services income | Loan Facilitation and Matching Service Fee-Performance Based | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 1,656,998 | 556,143 | 133,841 |
Platform-based services income | Post-Origination Service Fees-Performance Based | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 273,837 | 92,373 | 15,500 |
Platform-based services income | Loan facilitation and servicing fees-volume based | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | ¥ 106,007 | ¥ 167,458 | ¥ 51,269 |
Significant Accounting Polic_13
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | |||
Revenue | ¥ 7,906,670 | ¥ 9,456,683 | ¥ 4,676,411 |
At Point-in-Time | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 6,361,671 | 8,307,928 | 4,156,460 |
Over Time | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | ¥ 1,544,999 | ¥ 1,148,755 | ¥ 519,951 |
Significant Accounting Polic_14
Significant Accounting Policies - Schedule of Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2020 | |
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] | |
Estimated Useful Lives | Over the shorter of the expected life of leasehold improvement or the lease term |
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_15
Significant Accounting Policies - Schedule of Future Minimum Lease Payments - ASC 842 (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||
2021 | ¥ 46,597 | |
2022 | 16,554 | |
2023 | 6,896 | |
2024 | 2,991 | |
2025 and thereafter | 4,709 | |
Total future lease payments | 77,747 | |
Impact of discounting remaining lease payments | (4,503) | |
Total lease liabilities | ¥ 73,244 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Total lease liabilities | |
- Short-term portion | ¥ 45,577 | ¥ 45,764 |
Operating Lease, Liability, Current, Statement of Financial Position | - Short-term portion | |
- Long-term portion | ¥ 27,667 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position | - Long-term portion |
Significant Accounting Polic_16
Significant Accounting Policies - Schedule of Supplemental Cash Flow Information Related to Operating Leases (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2020CNY (¥) | |
Accounting Policies [Abstract] | |
Cash payments for operating leases | ¥ 58,501 |
Right-of-use assets obtained in exchange for operating lease liabilities | ¥ 52,655 |
Significant Accounting Polic_17
Significant Accounting Policies - Schedule of Concentration Risk (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Supplier Concentration Risk | Inventories | Inventory Supplier A | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 16.90% | 11.90% |
Supplier Concentration Risk | Inventories | Inventory Supplier B | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 16.80% | 11.40% |
Supplier Concentration Risk | Inventories | Inventory Supplier C | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 10.70% | 12.70% |
Supplier Concentration Risk | Inventories | Inventory Supplier D | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 24.40% | |
Lender Concentration Risk | Long-term debt | Institutional Funding Partner A | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 21.40% | 10.70% |
Deposits Concentration Risk | Deposits to Insurance and Guarantee Companies | Guarantee Company A | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 19.60% | 17.60% |
Deposits Concentration Risk | Deposits to Insurance and Guarantee Companies | Insurance Company B | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 18.80% | 39.10% |
Deposits Concentration Risk | Deposits to Insurance and Guarantee Companies | Guarantee Company C | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 16.10% | |
Deposits Concentration Risk | Deposits to Insurance and Guarantee Companies | Guarantee Company D | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 13.60% | |
Deposits Concentration Risk | Deposits to Insurance and Guarantee Companies | Guarantee Company E | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 12.60% |
Financing Receivable, Net - Sch
Financing Receivable, Net - Schedule of Financing Receivables, Net (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Short-term: | |||
Short-term financing receivables | ¥ 5,426,561 | ¥ 4,070,952 | |
Allowance for credit losses | (508,013) | (318,262) | |
Total short-term financing receivables, net | 4,918,548 | $ 753,800 | 3,752,690 |
Long-term: | |||
Long-term financing receivables | 225,910 | 714,081 | |
Allowance for credit losses | (21,149) | (55,283) | |
Total long-term financing receivables, net | 204,761 | $ 31,381 | 658,798 |
Installment Purchase Loans | |||
Short-term: | |||
Short-term financing receivables | 457,407 | 748,717 | |
Long-term: | |||
Long-term financing receivables | 127,265 | 169,080 | |
Personal Installment Loans | |||
Short-term: | |||
Short-term financing receivables | 4,969,154 | 3,322,235 | |
Long-term: | |||
Long-term financing receivables | ¥ 98,645 | ¥ 545,001 |
Financing Receivable, Net - Add
Financing Receivable, Net - Additional Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts Notes And Loans Receivable [Line Items] | |||
Weighted average interest rates of financing receivables (as a percent) | 24.90% | 24.70% | |
Financing receivable, charged-off | ¥ 1,078,705 | ¥ 815,421 | ¥ 974,483 |
Financing receivables, non-accrual status | 177,900 | 190,500 | |
Interest and late payment fees earned from non-accrual financing receivables | 78,800 | 53,900 | ¥ 102,800 |
Loan VII | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Collateral amount | 325,700 | 420,400 | |
Installment Purchase Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Financing receivable, charged-off | 186,900 | 141,500 | |
Personal Installment Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Financing receivable, charged-off | ¥ 2,802,900 | ¥ 1,995,000 | |
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, 2020 | Dec. 31, 2019 |
Notes Receivable Net [Abstract] | ||
Due in 0-12 months | ¥ 5,426,561 | ¥ 4,070,952 |
Due in 13-24 months | 182,107 | 621,957 |
Due in 25-36 months | 23,388 | 92,075 |
Due thereafter | 20,415 | 49 |
Total financing receivables | ¥ 5,652,471 | ¥ 4,785,033 |
Financing Receivable, Net - S_2
Financing Receivable, Net - Summary of Activities in Provision for Credit Losses (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Beginning balances | ¥ (373,545) | ¥ (384,036) | ¥ (370,196) | |
Provision for credit losses | (779,235) | $ (119,423) | (708,684) | (884,056) |
Charge-offs | 1,078,705 | 815,421 | 974,483 | |
Recoveries from prior charge-offs | (225,426) | (96,246) | (104,267) | |
Ending balances | (529,162) | (373,545) | ¥ (384,036) | |
ASC 326 | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Beginning balances | ¥ (229,661) | |||
Ending balances | ¥ (229,661) |
Financing Receivable, Net - S_3
Financing Receivable, Net - Summary of Aging Analysis of Past Due Financing Receivables (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Aging analysis of past due financing receivables | ||
Financing receivables, past due | ¥ 474,435 | ¥ 519,606 |
Financing receivables, current | 5,178,036 | 4,265,427 |
Total financing receivables | 5,652,471 | 4,785,033 |
Installment Purchase Loans | ||
Aging analysis of past due financing receivables | ||
Financing receivables, past due | 27,317 | 28,210 |
Financing receivables, current | 557,355 | 889,587 |
Total financing receivables | 584,672 | 917,797 |
Personal Installment Loans | ||
Aging analysis of past due financing receivables | ||
Financing receivables, past due | 447,118 | 491,396 |
Financing receivables, current | 4,620,681 | 3,375,840 |
Total financing receivables | 5,067,799 | 3,867,236 |
1-29 Days Past Due | ||
Aging analysis of past due financing receivables | ||
Financing receivables, past due | 159,609 | 158,734 |
1-29 Days Past Due | Installment Purchase Loans | ||
Aging analysis of past due financing receivables | ||
Financing receivables, past due | 7,086 | 9,160 |
1-29 Days Past Due | Personal Installment Loans | ||
Aging analysis of past due financing receivables | ||
Financing receivables, past due | 152,523 | 149,574 |
30-59 Days Past Due | ||
Aging analysis of past due financing receivables | ||
Financing receivables, past due | 78,904 | 91,989 |
30-59 Days Past Due | Installment Purchase Loans | ||
Aging analysis of past due financing receivables | ||
Financing receivables, past due | 4,508 | 5,197 |
30-59 Days Past Due | Personal Installment Loans | ||
Aging analysis of past due financing receivables | ||
Financing receivables, past due | 74,396 | 86,792 |
60-89 Days Past Due | ||
Aging analysis of past due financing receivables | ||
Financing receivables, past due | 58,056 | 78,425 |
60-89 Days Past Due | Installment Purchase Loans | ||
Aging analysis of past due financing receivables | ||
Financing receivables, past due | 3,839 | 4,217 |
60-89 Days Past Due | Personal Installment Loans | ||
Aging analysis of past due financing receivables | ||
Financing receivables, past due | 54,217 | 74,208 |
90-179 Days Past Due | ||
Aging analysis of past due financing receivables | ||
Financing receivables, past due | 177,866 | 190,458 |
90-179 Days Past Due | Installment Purchase Loans | ||
Aging analysis of past due financing receivables | ||
Financing receivables, past due | 11,884 | 9,636 |
90-179 Days Past Due | Personal Installment Loans | ||
Aging analysis of past due financing receivables | ||
Financing receivables, past due | ¥ 165,982 | ¥ 180,822 |
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, 2020 | Dec. 31, 2019 |
Financing receivables credit quality indicator | ||
Total financing receivables | ¥ 5,652,471 | ¥ 4,785,033 |
Installment Purchase Loans | ||
Financing receivables credit quality indicator | ||
Total financing receivables | 584,672 | 917,797 |
Personal Installment Loans | ||
Financing receivables credit quality indicator | ||
Total financing receivables | 5,067,799 | ¥ 3,867,236 |
ASC 326 | Installment Purchase Loans | ||
Financing receivables credit quality indicator | ||
Loans originated in 2017 | 113 | |
Loans originated in 2018 | 22,255 | |
Loans originated in 2019 | 112,450 | |
Loans originated in 2020 | 449,854 | |
Total financing receivables | 584,672 | |
ASC 326 | Installment Purchase Loans | Risk Level A | ||
Financing receivables credit quality indicator | ||
Loans originated in 2017 | 32 | |
Loans originated in 2018 | 9,128 | |
Loans originated in 2019 | 38,554 | |
Loans originated in 2020 | 165,595 | |
Total financing receivables | 213,309 | |
ASC 326 | Installment Purchase Loans | Risk Level B | ||
Financing receivables credit quality indicator | ||
Loans originated in 2017 | 23 | |
Loans originated in 2018 | 6,454 | |
Loans originated in 2019 | 29,391 | |
Loans originated in 2020 | 107,029 | |
Total financing receivables | 142,897 | |
ASC 326 | Installment Purchase Loans | Risk Level C | ||
Financing receivables credit quality indicator | ||
Loans originated in 2017 | 39 | |
Loans originated in 2018 | 3,877 | |
Loans originated in 2019 | 25,966 | |
Loans originated in 2020 | 100,172 | |
Total financing receivables | 130,054 | |
ASC 326 | Installment Purchase Loans | Risk Level D | ||
Financing receivables credit quality indicator | ||
Loans originated in 2017 | 13 | |
Loans originated in 2018 | 2,291 | |
Loans originated in 2019 | 16,737 | |
Loans originated in 2020 | 70,179 | |
Total financing receivables | 89,220 | |
ASC 326 | Installment Purchase Loans | Risk Level E | ||
Financing receivables credit quality indicator | ||
Loans originated in 2017 | 1 | |
Loans originated in 2018 | 90 | |
Loans originated in 2019 | 548 | |
Loans originated in 2020 | 2,505 | |
Total financing receivables | 3,144 | |
ASC 326 | Installment Purchase Loans | Risk Level F | ||
Financing receivables credit quality indicator | ||
Loans originated in 2017 | 5 | |
Loans originated in 2018 | 415 | |
Loans originated in 2019 | 1,254 | |
Loans originated in 2020 | 4,373 | |
Total financing receivables | 6,047 | |
ASC 326 | Installment Purchase Loans | Risk Level N and Others | ||
Financing receivables credit quality indicator | ||
Loans originated in 2020 | 1 | |
Total financing receivables | 1 | |
ASC 326 | Personal Installment Loans | ||
Financing receivables credit quality indicator | ||
Loans originated in 2017 | 2,022 | |
Loans originated in 2018 | 33,257 | |
Loans originated in 2019 | 249,540 | |
Loans originated in 2020 | 4,782,980 | |
Total financing receivables | 5,067,799 | |
ASC 326 | Personal Installment Loans | Risk Level A | ||
Financing receivables credit quality indicator | ||
Loans originated in 2017 | 667 | |
Loans originated in 2018 | 8,864 | |
Loans originated in 2019 | 28,794 | |
Loans originated in 2020 | 873,365 | |
Total financing receivables | 911,690 | |
ASC 326 | Personal Installment Loans | Risk Level B | ||
Financing receivables credit quality indicator | ||
Loans originated in 2017 | 457 | |
Loans originated in 2018 | 7,488 | |
Loans originated in 2019 | 31,108 | |
Loans originated in 2020 | 931,876 | |
Total financing receivables | 970,929 | |
ASC 326 | Personal Installment Loans | Risk Level C | ||
Financing receivables credit quality indicator | ||
Loans originated in 2017 | 627 | |
Loans originated in 2018 | 7,563 | |
Loans originated in 2019 | 57,490 | |
Loans originated in 2020 | 1,261,182 | |
Total financing receivables | 1,326,862 | |
ASC 326 | Personal Installment Loans | Risk Level D | ||
Financing receivables credit quality indicator | ||
Loans originated in 2017 | 177 | |
Loans originated in 2018 | 5,200 | |
Loans originated in 2019 | 73,001 | |
Loans originated in 2020 | 1,181,795 | |
Total financing receivables | 1,260,173 | |
ASC 326 | Personal Installment Loans | Risk Level E | ||
Financing receivables credit quality indicator | ||
Loans originated in 2017 | 13 | |
Loans originated in 2018 | 239 | |
Loans originated in 2019 | 6,859 | |
Loans originated in 2020 | 190,602 | |
Total financing receivables | 197,713 | |
ASC 326 | Personal Installment Loans | Risk Level F | ||
Financing receivables credit quality indicator | ||
Loans originated in 2017 | 49 | |
Loans originated in 2018 | 1,348 | |
Loans originated in 2019 | 27,267 | |
Loans originated in 2020 | 328,597 | |
Total financing receivables | 357,261 | |
ASC 326 | Personal Installment Loans | Risk Level N and Others | ||
Financing receivables credit quality indicator | ||
Loans originated in 2017 | 32 | |
Loans originated in 2018 | 2,555 | |
Loans originated in 2019 | 25,021 | |
Loans originated in 2020 | 15,563 | |
Total financing receivables | ¥ 43,171 |
Financing Receivable, Net - S_5
Financing Receivable, Net - Summary of Net Recorded Investment of Financing Receivables by Credit Quality Indicator (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financing receivables credit quality indicator | ||
Financing receivables, net | ¥ 4,411,488 | |
Installment Purchase Loans | ||
Financing receivables credit quality indicator | ||
Financing receivables, net | ¥ 584,672 | 917,797 |
Personal Installment Loans | ||
Financing receivables credit quality indicator | ||
Financing receivables, net | 5,067,799 | 3,867,236 |
Risk Level A | Installment Purchase Loans | ||
Financing receivables credit quality indicator | ||
Financing receivables, net | 213,309 | 383,566 |
Risk Level A | Personal Installment Loans | ||
Financing receivables credit quality indicator | ||
Financing receivables, net | 911,690 | 612,958 |
Risk Level B | Installment Purchase Loans | ||
Financing receivables credit quality indicator | ||
Financing receivables, net | 142,897 | 262,504 |
Risk Level B | Personal Installment Loans | ||
Financing receivables credit quality indicator | ||
Financing receivables, net | 970,929 | 760,986 |
Risk Level C | Installment Purchase Loans | ||
Financing receivables credit quality indicator | ||
Financing receivables, net | 130,054 | 133,526 |
Risk Level C | Personal Installment Loans | ||
Financing receivables credit quality indicator | ||
Financing receivables, net | 1,326,862 | 528,162 |
Risk Level D | Installment Purchase Loans | ||
Financing receivables credit quality indicator | ||
Financing receivables, net | 89,220 | 84,779 |
Risk Level D | Personal Installment Loans | ||
Financing receivables credit quality indicator | ||
Financing receivables, net | 1,260,173 | 771,854 |
Risk Level E | Installment Purchase Loans | ||
Financing receivables credit quality indicator | ||
Financing receivables, net | 3,144 | 32,136 |
Risk Level E | Personal Installment Loans | ||
Financing receivables credit quality indicator | ||
Financing receivables, net | 197,713 | 593,564 |
Risk Level F | Installment Purchase Loans | ||
Financing receivables credit quality indicator | ||
Financing receivables, net | 6,047 | 20,665 |
Risk Level F | Personal Installment Loans | ||
Financing receivables credit quality indicator | ||
Financing receivables, net | 357,261 | 378,408 |
Risk Level N and Others | Installment Purchase Loans | ||
Financing receivables credit quality indicator | ||
Financing receivables, net | 1 | 621 |
Risk Level N and Others | Personal Installment Loans | ||
Financing receivables credit quality indicator | ||
Financing receivables, net | ¥ 43,171 | ¥ 221,304 |
Contract Assets and Service F_3
Contract Assets and Service Fees Receivable, Net and Guarantee Receivables, Net - Schedule of Contract Assets, Service Fees Receivable, and Guarantee Receivables (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Contract Assets | ||
Short-term: | ||
Gross | ¥ 2,964,670 | ¥ 2,799,430 |
Allowance | (22,923) | (18,582) |
Net | 2,941,747 | 2,780,848 |
Long-term: | ||
Gross | 500,959 | 485,720 |
Allowance | (18,970) | (2,845) |
Net | 481,989 | 482,875 |
Service Fees Receivable | ||
Short-term: | ||
Gross | 808,586 | 267,440 |
Allowance | (42,684) | (76,312) |
Net | 765,902 | 191,128 |
Guarantee Receivable | ||
Short-term: | ||
Gross | 814,968 | 1,233,111 |
Allowance | (58,771) | (49,833) |
Net | 756,197 | 1,183,278 |
Long-term: | ||
Gross | 235,648 | 282,449 |
Allowance | (16,994) | (750) |
Net | ¥ 218,654 | ¥ 281,699 |
Contract Assets and Service F_4
Contract Assets and Service Fees Receivable, Net and Guarantee Receivables, Net - Schedule of Activities in the Provision for Credit Losses (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Activities in the provision for credit losses | ||
Beginning balances | ¥ (148,322) | ¥ (54,058) |
Provisions | (441,805) | (153,176) |
Charge-offs | 529,380 | 68,072 |
Recoveries from prior charge-offs | (33,162) | (9,160) |
Ending balances | (160,342) | ¥ (148,322) |
ASC 326 | Cumulative Effect Period Of Adoption Adjustment | ||
Activities in the provision for credit losses | ||
Ending balances | ¥ (66,433) |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Prepaid Expense And Other Assets Current [Abstract] | |||
Receivables from third-party payment service providers | ¥ 587,168 | ¥ 355,159 | |
Deposits to Institutional Funding Partners | 288,215 | 495,488 | |
Prepayment to inventory suppliers | 59,586 | 54,486 | |
Prepaid input value-added tax | 33,695 | 54,436 | |
Staff advances | 12,694 | 21,219 | |
Guarantee derivative assets at fair value (Note 9) | 280,998 | ||
Rental deposits and other current assets | 23,487 | 63,138 | |
Total prepaid expenses and other current assets | ¥ 1,004,845 | $ 153,999 | ¥ 1,324,924 |
Property, Equipment and Softw_3
Property, Equipment and Software, Net - Schedule of Property, Equipment and Software, Net (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Property Plant And Equipment [Line Items] | |||
Total property, equipment and software, gross | ¥ 264,610 | ¥ 180,051 | |
Accumulated depreciation and amortization | (138,916) | (87,498) | |
Total property, equipment and software, net | 125,694 | $ 19,263 | 92,553 |
Computers and Equipment | |||
Property Plant And Equipment [Line Items] | |||
Total property, equipment and software, gross | 138,188 | 95,336 | |
Furniture and Fixtures | |||
Property Plant And Equipment [Line Items] | |||
Total property, equipment and software, gross | 15,539 | 12,316 | |
Leasehold Improvement | |||
Property Plant And Equipment [Line Items] | |||
Total property, equipment and software, gross | 56,462 | 35,499 | |
Software | |||
Property Plant And Equipment [Line Items] | |||
Total property, equipment and software, gross | 41,849 | ¥ 36,900 | |
Construction In Progress | |||
Property Plant And Equipment [Line Items] | |||
Total property, equipment and software, gross | ¥ 12,572 |
Property, Equipment and Softw_4
Property, Equipment and Software, Net - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Property Plant And Equipment [Abstract] | ||||
Depreciation and amortization | ¥ 53,400 | $ 8,189 | ¥ 39,945 | ¥ 30,398 |
Land Use Rights, Net - Schedule
Land Use Rights, Net - Schedule of Land Use Rights, Net (Details) ¥ in Thousands | Dec. 31, 2020CNY (¥) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Gross carrying amount | ¥ 1,032,000 |
Accumulated amortization | (31,533) |
Net carrying amount | ¥ 1,000,467 |
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, 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 | ¥ 31.5 |
Land Use Rights, Net - Schedu_2
Land Use Rights, Net - Schedule of Amortization Expenses For Future Periods (Details) ¥ in Thousands | Dec. 31, 2020CNY (¥) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2021 | ¥ 34,400 |
2022 | 34,400 |
2023 | 34,400 |
2024 | 34,400 |
2025 | 34,400 |
Thereafter | 828,467 |
Total expected amortization expenses | ¥ 1,000,467 |
Long-Term Investments - Additio
Long-Term Investments - Additional Information (Details) | 1 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2018CNY (¥) | Dec. 31, 2020CNY (¥)JointVenture | Dec. 31, 2020USD ($)JointVenture | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Jan. 01, 2020CNY (¥) | |
Summary Of Investment Holdings [Line Items] | ||||||||
Carrying value of equity investments | ¥ 264,200,000 | ¥ 344,400,000 | ||||||
Unrealized gains (upward adjustments) | 87,800,000 | 70,000,000 | ¥ 18,800,000 | |||||
Impairment charges | $ | $ 0 | $ 0 | $ 0 | |||||
Impairment related to investments without readily determinable fair value recognized | 69,200,000 | 15,200,000 | ||||||
Other downward adjustment related to investments without readily determinable fair value | 0 | 0 | ||||||
Equity method investments | 101,900,000 | 7,800,000 | ||||||
Loss from equity method investments | (9,000,000) | $ (1,384,000) | (5,180,000) | 0 | ||||
Carrying amount of held-to-maturity debt investments | ¥ 120,000,000 | |||||||
Maturity term | 2026-07 | |||||||
Loan receivable recorded at amortized cost | 155,800,000 | 159,400,000 | ||||||
Allowance for credit losses of debt instrument | ¥ 3,600,000 | |||||||
Interest income | 0 | 1,500,000 | ¥ 1,500,000 | |||||
Indonesia | ||||||||
Summary Of Investment Holdings [Line Items] | ||||||||
Cash consideration | 15,000,000 | ¥ 13,000,000 | ||||||
PRC | ||||||||
Summary Of Investment Holdings [Line Items] | ||||||||
Cash consideration | ¥ 88,000,000 | |||||||
Number of investments in joint venture | JointVenture | 3 | 3 |
Long-Term Investments - Carryin
Long-Term Investments - Carrying Value of Equity Investments Accounted Using Measurement Alternative (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Long Term Investments [Abstract] | ||
Initial cost basis | ¥ 263,532 | ¥ 286,842 |
Cumulative unrealized upward adjustments | 87,813 | 70,016 |
Cumulative impairment charges | (84,371) | (15,215) |
Cumulative foreign currency translation adjustments | (2,823) | 2,719 |
Total carrying value at end of the period | ¥ 264,151 | ¥ 344,362 |
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, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Assets | |||
Restricted time deposits | ¥ 1,779,458 | $ 272,714 | ¥ 1,962,293 |
Restricted time deposits | 4,350 | ||
Recurring Basis | Fair Value | |||
Assets | |||
Restricted time deposits | 1,779,458 | 1,962,293 | |
Restricted time deposits | 4,350 | ||
Guarantee derivative assets | 280,998 | ||
Loans at fair value | 381,393 | ||
Total assets | 2,160,851 | 2,247,641 | |
Liabilities | |||
Guarantee derivative liabilities | 252,613 | ||
Total liabilities | 252,613 | ||
Recurring Basis | Fair Value | Level 2 Inputs | |||
Assets | |||
Restricted time deposits | 1,779,458 | 1,962,293 | |
Restricted time deposits | 4,350 | ||
Total assets | 1,779,458 | 1,966,643 | |
Recurring Basis | Fair Value | Level 3 Inputs | |||
Assets | |||
Guarantee derivative assets | 280,998 | ||
Loans at fair value | 381,393 | ||
Total assets | 381,393 | ¥ 280,998 | |
Liabilities | |||
Guarantee derivative liabilities | 252,613 | ||
Total liabilities | ¥ 252,613 |
Fair Value Measurement - Summar
Fair Value Measurement - Summary of Quantitative Information About The Significant Unobservable Inputs (Details) - Level 3 Inputs - Recurring Basis | Dec. 31, 2020 | Dec. 31, 2019 |
Expected Future Recovery Rates | Minimum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Loans at fair value | 9.8 | |
Expected Future Recovery Rates | Maximum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Loans at fair value | 9.8 | |
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 | 9.8 | |
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 | 3.1 | 1.4 |
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 | 13.3 | 13.6 |
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 | 6.3 | 3.3 |
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 | 10 | 35 |
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 | 10 | 35 |
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 | 10 | 35 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
Fair value of guarantee derivative liabilities/(assets) at beginning of the year (Level 3) | ¥ (280,998) | ¥ 52,434 | ¥ 30,958 |
Cash collection | 1,107,646 | 1,108,398 | 449,778 |
Net cash payout | (1,281,477) | (1,151,504) | (231,275) |
Change in fair value | 707,442 | 212,256 | (197,027) |
Transfers of financial guarantee contracts | (502,582) | ||
Fair value of guarantee derivative liabilities/(assets) at end of the year (Level 3) | ¥ 252,613 | ¥ (280,998) | ¥ 52,434 |
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 ¥ in Thousands | 12 Months Ended |
Dec. 31, 2020CNY (¥) | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Fair value at inception of loans acquired/purchased | ¥ 7,067,271 |
Cash collection | (6,638,596) |
Change in fair value | (47,282) |
Fair value of loans acquired/purchased at end of the year (Level 3) | ¥ 381,393 |
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, 2020 | Dec. 31, 2019 | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Weighted average cumulative loss rates | 6.30% | 3.30% |
Increase by 10% | ¥ 84,373 | |
Decrease by 10% | ¥ (84,373) | |
Increase by 10% | ¥ 188,349 | |
Decrease by 10% | ¥ (188,349) |
Fair Value Measurement - Summ_4
Fair Value Measurement - Summary of Effect Adverse Changes in Estimated Fair Value of the Loans (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2020CNY (¥) | |
Fair Value Disclosures [Abstract] | |
Weighted average expected future recovery rates | 9.80% |
Increase by 10% | ¥ 38,139 |
Decrease by 10% | ¥ (38,139) |
Funding Debts - Summary of the
Funding Debts - Summary of the Group's Outstanding Funding Debts (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Debt Instrument [Line Items] | |||
Short-term Funding Debts | ¥ 4,685,935 | $ 718,151 | ¥ 3,755,528 |
Long-term Funding Debts | 825,814 | $ 126,562 | 450,595 |
Liabilities to Individual Investors - Juzi Licai | |||
Debt Instrument [Line Items] | |||
Short-term Funding Debts | 793,356 | ||
Liabilities to Other Funding Partners | |||
Debt Instrument [Line Items] | |||
Short-term Funding Debts | 4,685,935 | 2,962,172 | |
Long-term Funding Debts | ¥ 825,814 | ¥ 450,595 |
Funding Debts - Liabilities to
Funding Debts - Liabilities to Individual Investors and Institutional Funding Partners (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Debt Instrument [Line Items] | ||||
Aggregate amount funded from funding sources | ¥ 20,546,221 | $ 3,148,846 | ¥ 8,373,790 | ¥ 14,918,165 |
Financing receivables, net | ¥ 4,411,488 | |||
Liabilities to Individual Investors - Juzi Licai | ||||
Debt Instrument [Line Items] | ||||
Term | 24 months | |||
Weighted average interest rate | 7.70% | |||
Aggregate amount funded from funding sources | ¥ 821,400 | |||
Liabilities to Other Funding Partners | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate | 9.30% | 9.70% | ||
Aggregate amount funded from funding sources | ¥ 5,092,300 | ¥ 3,005,000 | ||
Financing receivables, net | ¥ 325,700 | ¥ 420,400 |
Funding Debts - Summary of th_2
Funding Debts - Summary of the Remaining Contractual Maturity Dates of the Group's Funding Debts and Associated Interest Payments (Details) ¥ in Thousands | Dec. 31, 2020CNY (¥) |
Maturities of Funding Debts | |
1 - 12 months | ¥ 4,685,935 |
13 - 24 months | 825,814 |
Total Funding Debts | 5,511,749 |
Maturities of interest payments | |
1 - 12 months | 270,186 |
13 - 24 months | 14,529 |
Total interest payments | 284,715 |
Liabilities to Other Funding Partners | |
Maturities of Funding Debts | |
1 - 12 months | 4,685,935 |
13 - 24 months | 825,814 |
Total Funding Debts | 5,511,749 |
Interest payments | |
Maturities of interest payments | |
1 - 12 months | 270,186 |
13 - 24 months | 14,529 |
Total interest payments | ¥ 284,715 |
Short-Term Borrowings (Details)
Short-Term Borrowings (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Short Term Debt [Line Items] | ||
weighted average interest rates of short-term borrowings | 4.00% | 4.20% |
Borrowings | ¥ 1,701 | ¥ 1,774.9 |
Time deposit | ||
Short Term Debt [Line Items] | ||
Collateral amount | ¥ 1,781.3 | ¥ 1,886.6 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Payables And Accruals [Abstract] | |||
Funds payable to Institutional Funding Partners | ¥ 670,942 | ¥ 415,297 | |
Tax payable | 632,006 | 270,163 | |
Payable for acquisition of land use rights | 516,000 | ||
Accrued payroll and welfare | 364,500 | 327,827 | |
Guarantee derivative liabilities at fair value (Note 9) | 252,613 | ||
Other payable to Individual Investors on Juzi Licai | 86,841 | ||
Accrued marketing expenses | 78,681 | 71,849 | |
Payable to third‑party sellers | 55,704 | 90,133 | |
Deferred service fees | 51,966 | 47,887 | |
Risk management fees | 48,993 | 12,322 | |
Short-term leasing liabilities | 45,577 | 45,764 | |
Accrued professional fees and outsourcing fees | 37,684 | 31,401 | |
Deferred interest and financial services income and others | 23,038 | 36,816 | |
Security deposits from third‑party sellers | 10,718 | 14,087 | |
Other accrued expenses | 51,084 | 31,093 | |
Total accrued expenses and other current liabilities | ¥ 2,926,347 | $ 448,482 | ¥ 1,394,639 |
Accrued Expenses and Other Cu_4
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Parenthetical) (Details) - CNY (¥) ¥ in Millions | 1 Months Ended | 12 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | Dec. 31, 2020 | |
Accrued Expenses And Other Current Liabilities Disclosure [Line Items] | |||
Cash consideration on obtaining land use right | ¥ 516 | ¥ 1,000 | |
Subsequent Event | |||
Accrued Expenses And Other Current Liabilities Disclosure [Line Items] | |||
Cash consideration on obtaining land use right | ¥ 516 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||
Purchases of goods/services from related parties | ¥ 28,645 | ¥ 836,865 | ¥ 607,086 |
Ji'an Aoxinlian | |||
Related Party Transaction [Line Items] | |||
Purchases of goods/services from related parties | 20,658 | 7,200 | |
Ji'an Aojuxun | |||
Related Party Transaction [Line Items] | |||
Purchases of goods/services from related parties | ¥ 7,987 | 2,091 | |
JD Group | |||
Related Party Transaction [Line Items] | |||
Purchases of goods/services from related parties | ¥ 827,574 | ¥ 607,086 |
Related Party Balances and Tr_4
Related Party Balances and Transactions - Schedule of Amounts Due to Related Parties (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Related Party Transaction [Line Items] | |||
Amounts due to related parties (including amounts of the consolidated VIEs of RMB40,804 and RMB67,514 as of December 31, 2019 and 2020, respectively) | ¥ 67,514 | $ 10,347 | ¥ 40,804 |
Individual Director or Officer and his/her immediate family members under investment programs offered by the Group | |||
Related Party Transaction [Line Items] | |||
Amounts due to related parties (including amounts of the consolidated VIEs of RMB40,804 and RMB67,514 as of December 31, 2019 and 2020, respectively) | 61,871 | 40,804 | |
Due to Ji'an Aoxinlian | |||
Related Party Transaction [Line Items] | |||
Amounts due to related parties (including amounts of the consolidated VIEs of RMB40,804 and RMB67,514 as of December 31, 2019 and 2020, respectively) | 4,711 | ||
Individual Director or Officer and his/her immediate family members under investment programs offered by the Group and Due to Ji'an Aoxinlian | |||
Related Party Transaction [Line Items] | |||
Amounts due to related parties (including amounts of the consolidated VIEs of RMB40,804 and RMB67,514 as of December 31, 2019 and 2020, respectively) | ¥ 66,582 | ¥ 40,804 |
Taxation - Tax rates (Details)
Taxation - Tax rates (Details) - USD ($) $ in Millions | Jan. 01, 2008 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Income Taxes [Line Items] | ||||||
Statutory tax rate (as a percentage) | 25.00% | 25.00% | 25.00% | |||
PRC | ||||||
Income Taxes [Line Items] | ||||||
Statutory tax rate (as a percentage) | 10.00% | 25.00% | ||||
Withholding income tax rate for dividend paid to foreign tax resident investors (as a percentage) | 10.00% | |||||
Reduced withholding tax rate for beneficial owner (as a percentage) | 5.00% | |||||
PRC | Qianhai Juzi | ||||||
Income Taxes [Line Items] | ||||||
Statutory tax rate (as a percentage) | 25.00% | 15.00% | 15.00% | 15.00% | ||
PRC | Shenzhen Lexin Software | ||||||
Income Taxes [Line Items] | ||||||
Statutory tax rate (as a percentage) | 12.50% | 10.00% | ||||
PRC | Shenzhen Dinsheng Computer Technology | ||||||
Income Taxes [Line Items] | ||||||
Statutory tax rate (as a percentage) | 12.50% | |||||
PRC | Beihai Aurora, Guangxi | ||||||
Income Taxes [Line Items] | ||||||
Statutory tax rate (as a percentage) | 15.00% | |||||
Tax exempt income rate (as a percent) | 40.00% | |||||
Statutory tax rate (as a percentage) from 2018 to 2022 | 15.00% | |||||
PRC | Beihai Aurora | ||||||
Income Taxes [Line Items] | ||||||
Statutory tax rate (as a percentage) from 2018 to 2022 | 9.00% | |||||
Statutory tax rate (as a percentage) from 2023 to 2030 | 15.00% | |||||
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 | PRC | Maximum | ||||||
Income Taxes [Line Items] | ||||||
Value added tax rate (as a percent) | 16.00% | |||||
Online direct sales and services income | PRC | Minimum | ||||||
Income Taxes [Line Items] | ||||||
Value added tax rate (as a percent) | 13.00% | |||||
Premium membership fees, third-party sellers' commission fees, and financial services income | PRC | ||||||
Income Taxes [Line Items] | ||||||
Value added tax rate (as a percent) | 6.00% |
Taxation - Components of Income
Taxation - Components of Income Before Income Tax (Benefit)/Expense (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Components of (loss)/income before income tax expense | ||||
Income before income tax expense | ¥ 685,609 | $ 105,075 | ¥ 2,706,511 | ¥ 2,109,528 |
Income/ (Loss) from non‑China operations | 15,143 | 41,461 | (13,479) | |
Income from China operations | 670,466 | 2,665,050 | 2,123,007 | |
Income tax expense applicable to China operations | ¥ 90,629 | $ 13,890 | ¥ 411,959 | ¥ 132,222 |
Effective tax rate for China operations | 13.50% | 13.50% | 15.50% | 6.20% |
Taxation - Current and Deferred
Taxation - Current and Deferred Portions of Income Tax (Benefit)/Expense (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Current and deferred portion of income tax expense | ||||
Current income tax expense | ¥ 594,149 | ¥ 352,036 | ¥ 74,046 | |
Deferred income tax expense | (503,520) | $ (77,168) | 59,923 | 58,176 |
Income tax expense | ¥ 90,629 | $ 13,890 | ¥ 411,959 | ¥ 132,222 |
Taxation - Reconciliation Betwe
Taxation - Reconciliation Between Statutory Enterprise Income Tax Rate and Effective Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation between the statutory EIT rate and the effective tax rate | |||
Statutory EIT rate | 25.00% | 25.00% | 25.00% |
Change of tax position | (2.40%) | (3.70%) | |
Effect of tax holidays | (9.90%) | (9.00%) | (7.00%) |
Tax effect of non‑deductible expense | 1.10% | (0.50%) | (0.50%) |
Changes in valuation allowance | (0.30%) | (7.60%) | |
Effective tax rate for China operations | 13.50% | 15.50% | 6.20% |
Taxation - Reconciliation Bet_2
Taxation - Reconciliation Between Statutory Enterprise Income Tax Rate and Effective Tax Rate (Parenthetical) (Details) ¥ in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2020CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Income Taxes [Line Items] | ||||||
Current income tax expense | ¥ 594,149 | ¥ 352,036 | ¥ 74,046 | |||
Deferred tax assets, valuation allowance | 4,429 | 6,662 | 6,785 | ¥ 246,508 | ||
Income tax expense applicable to China operations | ¥ 90,629 | $ 13,890 | ¥ 411,959 | ¥ 132,222 | ||
Statutory tax rate (as a percentage) | 25.00% | 25.00% | 25.00% | 25.00% | ||
Changes in valuation allowance | (0.30%) | (0.30%) | (7.60%) | |||
Maximum | ||||||
Income Taxes [Line Items] | ||||||
Changes in valuation allowance | 0.10% | |||||
PRC | ||||||
Income Taxes [Line Items] | ||||||
Current income tax expense | 78,000 | |||||
Deferred tax assets, valuation allowance | ¥ 114,700 | |||||
Statutory tax rate (as a percentage) | 10.00% | 25.00% | 25.00% | |||
PRC | Revision of Prior Period Correction | ||||||
Income Taxes [Line Items] | ||||||
Income tax expense applicable to China operations | ¥ 16,200 |
Taxation - Effect of Tax Holida
Taxation - Effect of Tax Holiday Related to China Operations (Details) - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Tax holiday effect | ¥ 66,110 | ¥ 239,732 | ¥ 148,350 |
Basic net income per share effect | ¥ 0.18 | ¥ 0.67 | ¥ 0.44 |
Diluted net income per share effect | ¥ 0.16 | ¥ 0.64 | ¥ 0.41 |
Taxation - Components of Deferr
Taxation - Components of Deferred Tax Assets and Deferred Tax Liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Deferred tax assets | |||||
Deferred guarantee income and other accrued expenses | ¥ 477,023 | ||||
Contingent guarantee liabilities | 434,697 | ||||
Provision for credit losses | 359,293 | ¥ 93,386 | |||
Advertising expenses in excess of deduction limit | 54,970 | 73,970 | |||
Net operating loss carryforwards | 13,649 | 8,648 | |||
Guarantee liabilities and other accrued expenses | 406,973 | ||||
Less: valuation allowance | (4,429) | (6,662) | ¥ (6,785) | ¥ (246,508) | |
Total deferred tax assets | 1,335,203 | 576,315 | |||
Net deferred tax assets | 747,332 | $ 114,534 | 157,138 | ||
Deferred tax liabilities | |||||
Contract assets and service fees receivable | 490,204 | 550,425 | |||
Guarantee receivables | 118,713 | 178,398 | |||
Total deferred tax liabilities | 608,917 | 728,823 | |||
Deferred tax liabilities | ¥ 21,046 | $ 3,225 | ¥ 309,646 |
Taxation - Movement of Valuatio
Taxation - Movement of Valuation Allowance (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of the year | ¥ (6,662) | ¥ (6,785) | ¥ (246,508) |
Additions | (2,243) | (4,255) | (5,245) |
Reversals | 4,476 | 4,378 | 244,968 |
Balance at end of the year | ¥ (4,429) | ¥ (6,662) | ¥ (6,785) |
Taxation - Others (Details)
Taxation - Others (Details) - CNY (¥) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Line Items] | ||||
Statutory tax rate (as a percentage) | 25.00% | 25.00% | 25.00% | |
Valuation allowance | ¥ 4,429,000 | ¥ 6,662,000 | ¥ 6,785,000 | ¥ 246,508,000 |
Operating loss carryforwards | 63,800,000 | 37,800,000 | ||
Valuation allowance for net operating loss carryforwards | 22,700,000 | 20,600,000 | ||
Net operating loss carryforwards | 13,649,000 | 8,648,000 | ||
Net operating loss carryforwards, expires in 2022 | 8,200,000 | |||
Net operating loss carryforwards, expires in 2023 | 6,100,000 | |||
Net operating loss carryforwards, expires in 2024 | 12,600,000 | |||
Net operating loss carryforwards, expires in 2025 | 36,900,000 | |||
VIEs | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | 41,100,000 | 17,200,000 | ||
Income tax accrued on the undistributed earnings | 0 | 0 | ||
Provision for credit losses | ||||
Income Taxes [Line Items] | ||||
Valuation allowance | ¥ 0 | ¥ 0 | ¥ 0 | ¥ 241,900,000 |
Convertible Notes - Additional
Convertible Notes - Additional Information (Details) - Convertible Notes $ / shares in Units, ¥ in Thousands, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Sep. 30, 2019CNY (¥) | Sep. 30, 2019USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Sep. 30, 2019USD ($)$ / shares | |
Debt Instrument [Line Items] | |||||
Principal amount | $ | $ 300 | ||||
Term of the loan | 7 years | 7 years | |||
Interest rate (as a percent) | 2.00% | 2.00% | |||
Maturity date | 6 months | 6 months | |||
Debt instrument percentage | 100.00% | 100.00% | |||
Net proceeds | ¥ 1,911,800 | $ 293 | |||
Net of debt discount | 23,500 | $ 3.6 | |||
Issuance costs | ¥ 22,200 | $ 3.4 | |||
Interest expense | ¥ 47,800 | ¥ 14,300 | |||
Convertible notes | 1,957,470 | 2,092,860 | |||
Unamortized debt discount and issuance costs | ¥ 37,300 | ¥ 46,800 | |||
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 |
Ordinary Shares - Additional In
Ordinary Shares - Additional Information (Details) $ / shares in Units, ¥ in Millions, $ in Millions | Dec. 26, 2017Vote$ / sharesshares | Jun. 30, 2018shares | Jan. 31, 2018CNY (¥)shares | Jan. 31, 2018USD ($)$ / sharesshares | Nov. 30, 2013$ / sharesshares | Dec. 31, 2020shares | Dec. 31, 2019shares | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) |
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 | $ 14.7 | ¥ 651.3 | $ 100.1 | |||||
Class A Ordinary Shares | |||||||||
Class Of Stock [Line Items] | |||||||||
Number of new shares issued (in shares) | shares | 27,000,000 | 27,000,000 | 27,000,000 | ||||||
Par value of shares | $ / shares | $ 0.0001 | ||||||||
Stock conversion basis | 1 | ||||||||
Number of votes per share | Vote | 1 | ||||||||
Number of shares deemed issued | shares | 1,578,904 | 4,924,310 | |||||||
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) | 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 | |||||||
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 |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
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 | 11,398,012 | 7,627,967 | 5,785,724 |
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, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Net income attributable to ordinary shareholders | ¥ 594,980 | $ 91,185 | ¥ 2,294,552 | ¥ 1,977,306 |
Denominator: | ||||
Weighted average number of ordinary shares outstanding—basic | 364,733,164 | 364,733,164 | 355,625,970 | 337,883,964 |
Numerator: | ||||
Net income attributable to ordinary shareholders | ¥ 594,980 | $ 91,185 | ¥ 2,294,552 | ¥ 1,977,306 |
Interest expense associated with convertible notes reversed | ¥ | 47,781 | 14,261 | ||
Net income attributable to ordinary shareholders for calculating diluted net income per share | ¥ | ¥ 642,761 | ¥ 2,308,813 | ¥ 1,977,306 | |
Denominator: | ||||
Weighted average number of ordinary shares outstanding—basic | 364,733,164 | 364,733,164 | 355,625,970 | 337,883,964 |
Ordinary shares issuable upon the conversion of convertible notes using the if—converted method | 42,857,143 | 42,857,143 | 12,563,600 | |
Weighted average number of ordinary shares outstanding—diluted | 411,229,810 | 411,229,810 | 375,831,131 | 362,762,561 |
Net income per share attributable to ordinary shareholders—diluted | ¥ / shares | ¥ 1.56 | ¥ 6.14 | ¥ 5.45 | |
Ordinary shares | ||||
Denominator: | ||||
Net income per share attributable to ordinary shareholders—basic | (per share) | 1.63 | $ 0.25 | 6.45 | 5.85 |
Denominator: | ||||
Net income per share attributable to ordinary shareholders—diluted | (per share) | ¥ 1.56 | $ 0.24 | ¥ 6.14 | ¥ 5.45 |
Stock Options | ||||
Denominator: | ||||
Ordinary shares issuable of outstanding using the treasury stock method | 3,255,913 | 3,255,913 | 6,470,848 | 24,875,327 |
Restricted Share Units | ||||
Denominator: | ||||
Ordinary shares issuable of outstanding using the treasury stock method | 383,590 | 383,590 | 1,170,713 | 3,270 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |||
Contributions for employee benefits | ¥ 85.9 | ¥ 128.7 | ¥ 102.7 |
Statutory Reserves and Restri_2
Statutory Reserves and Restricted Net Assets (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statutory Reserves And Restricted Net Assets [Abstract] | ||
Appropriation to the general reserve fund (as a percent) | 10.00% | |
Required subsidiaries registered capital to avoid net profit allocation to general reserve (as a percent) | 50.00% | |
Portion of after-tax profit to be allocated to statutory surplus fund under PRC law (as a percent) | 10.00% | |
Required statutory surplus fund/registered capital ratio to avoid net profit allocation to statutory surplus fund (as a percent) | 50.00% | |
Amount of net assets of the relevant PRC in the group, not available for distribution | ¥ 3,771.9 | ¥ 3,493.4 |
Percentage of restricted net assets | 68.20% |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Share-based Compensation Expenses (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
SHARE-BASED COMPENSATION | ||||
Share-based compensation expenses | ¥ 198,825 | ¥ 177,262 | ¥ 122,636 | |
Processing and servicing cost | ||||
SHARE-BASED COMPENSATION | ||||
Share-based compensation expenses | 11,391 | $ 1,746 | 10,472 | 8,111 |
Sales and marketing expenses | ||||
SHARE-BASED COMPENSATION | ||||
Share-based compensation expenses | 32,486 | 4,979 | 28,611 | 18,223 |
Research and development expenses | ||||
SHARE-BASED COMPENSATION | ||||
Share-based compensation expenses | 46,116 | 7,068 | 42,977 | 33,169 |
General and administrative expenses | ||||
SHARE-BASED COMPENSATION | ||||
Share-based compensation expenses | ¥ 108,832 | $ 16,679 | ¥ 95,202 | ¥ 63,133 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) ¥ / shares in Units, $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||
Aug. 31, 2018CNY (¥)shares | Aug. 31, 2018USD ($)$ / sharesshares | Oct. 31, 2017shares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017$ / shares | |
SHARE-BASED COMPENSATION | ||||||||||
Income tax benefit | ¥ 0 | ¥ 0 | ¥ 0 | |||||||
Expiration period (in years) | 10 years | 10 years | ||||||||
Option granted vesting period (in years) | 4 years | 4 years | ||||||||
Total intrinsic value of stock options | ¥ 90,400,000 | $ 13,100 | ¥ 293,500,000 | $ 42,800 | ¥ 788,900,000 | $ 118,300 | ||||
Granted (in shares) | shares | 3,005,000 | 3,005,000 | 10,849,000 | 10,849,000 | 7,576,000 | 7,576,000 | ||||
Share-based compensation expenses | ¥ 198,825,000 | ¥ 177,262,000 | ¥ 122,636,000 | |||||||
Restricted Share Units | ||||||||||
SHARE-BASED COMPENSATION | ||||||||||
Option granted vesting period (in years) | 4 years | 4 years | ||||||||
Share-based compensation expenses | ¥ 52,100,000 | 48,900,000 | 9,500,000 | |||||||
Period over which remaining unrecognized stock-based compensation expense is recognized | 2 years 2 months 12 days | 2 years 2 months 12 days | ||||||||
Fair value and intrinsic value of restricted share units vested | ¥ 69,900,000 | $ 10,100 | ¥ 11,600,000 | $ 1,700 | ¥ 200,000 | $ 30 | ||||
Unrecognized compensation cost | ¥ 86,600,000 | |||||||||
Employees, Directors and Non-employee Directors | ||||||||||
SHARE-BASED COMPENSATION | ||||||||||
Weighted average grant date fair value of options granted (in CNY/dollars per share) | (per share) | ¥ 25.5 | $ 3.7 | ¥ 35.6 | $ 5 | ¥ 27.8 | $ 4.3 | ||||
Total share-based compensation expense recognized for stock options granted | ¥ 143,500,000 | ¥ 125,100,000 | ¥ 110,800,000 | |||||||
Granted (in shares) | shares | 2,829,000 | 2,829,000 | 5,091,000 | 5,091,000 | 6,263,000 | 6,263,000 | ||||
Exercised (in dollars per share) | $ / shares | $ 0.2399 | $ 0.2548 | $ 0.0001 | |||||||
Unrecognized share-based compensation cost related to non-vested stock options granted | ¥ 190,600,000 | |||||||||
Period over which remaining unrecognized stock-based compensation expense is recognized | 2 years 6 months | 2 years 6 months | ||||||||
Exercise Price | $ / shares | $ 0.5000 | 0.5000 | $ 5.1500 | $ 0.0001 | ||||||
Non-employees | ||||||||||
SHARE-BASED COMPENSATION | ||||||||||
Total share-based compensation expense recognized for stock options granted | ¥ 3,200,000 | ¥ 3,300,000 | ¥ 2,300,000 | |||||||
Exercised (in dollars per share) | $ / shares | $ 0.0001 | |||||||||
Unrecognized share-based compensation cost related to non-vested stock options granted | ¥ 1,400,000 | |||||||||
Period over which remaining unrecognized stock-based compensation expense is recognized | 7 months 6 days | 7 months 6 days | ||||||||
2017 Share Incentive Plan | Employees, Directors and Non-employee Directors | ||||||||||
SHARE-BASED COMPENSATION | ||||||||||
Granted (in shares) | shares | 6,263,000 | 6,263,000 | ||||||||
Exercised (in dollars per share) | $ / shares | $ 5.15 | |||||||||
Share-based compensation expenses | ¥ 16,900,000 | $ 2,500 | ||||||||
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 | 1.00% | |||||||||
Ordinary shares issued commencing date | Jan. 1, 2019 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Shares available for issuance | |||
Balance at the beginning of the period (in shares) | 8,399 | 13,833 | 20,483 |
Additions (in shares) | 3,594 | 3,512 | |
Granted (in shares) | (3,005) | (10,849) | (7,576) |
Cancelled/forfeited (in shares) | 3,035 | 1,903 | 926 |
Expired (in shares) | (496) | ||
Balance at the end of the period (in shares) | 11,527 | 8,399 | 13,833 |
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, 2020CNY (¥)$ / sharesshares | Dec. 31, 2019CNY (¥)$ / sharesshares | Dec. 31, 2018CNY (¥)$ / sharesshares | Dec. 31, 2017CNY (¥)$ / sharesshares | Dec. 31, 2020$ / shares | |
Options Outstanding | |||||
Granted (in shares) | 3,005 | 10,849 | 7,576 | ||
Cancelled/forfeited (in shares) | (3,035) | (1,903) | (926) | ||
Employees, Directors and Non-employee Directors | |||||
Options Outstanding | |||||
Balance at the beginning of the period (in shares) | 16,241 | 20,142 | 34,648 | ||
Granted (in shares) | 2,829 | 5,091 | 6,263 | ||
Exercised (in shares) | (3,140) | (7,798) | (19,911) | ||
Cancelled/forfeited (in shares) | (2,270) | (1,194) | (858) | ||
Balance at the end of the period (in shares) | 13,660 | 16,241 | 20,142 | 34,648 | |
Vested and expected to vest at the end of the period (in shares) | 12,765 | ||||
Exercisable at the end of the period (in shares) | 5,066 | ||||
Weighted Average Exercise Price | |||||
Balance at the beginning of the period (in dollars per share) | $ / shares | $ 1.7386 | $ 1.5164 | $ 0.0001 | ||
Exercise Price | $ / shares | 0.5000 | 0.5000 | 5.1500 | $ 0.0001 | |
Exercised (in dollars per share) | $ / shares | 0.2399 | 0.2548 | 0.0001 | ||
Cancelled/forfeited (in dollars per share) | $ / shares | 2.1589 | 2.3996 | 1.9962 | ||
Balance at the end of the period (in dollars per share) | $ / shares | $ 1.7569 | $ 1.7386 | $ 1.5164 | $ 0.0001 | |
Vested and expected to vest at the end of the period (in dollars per share) | $ / shares | $ 1.7723 | ||||
Exercisable at the end of the period (in dollars per share) | $ / shares | 2.0893 | ||||
Weighted Average Remaining Contractual Life and Aggregate Intrinsic Value | |||||
Weighted average remaining contractual life (in years) | 7 years 10 months 13 days | 8 years 2 months 19 days | 7 years 11 months 12 days | 7 years 5 months 8 days | |
Vested and expected to vest at the end of the period, weighted average remaining contractual life | 7 years 10 months 9 days | ||||
Exercisable at the end of the period, weighted average remaining contractual life | 7 years 7 days | ||||
Aggregate Intrinsic Value | ¥ | $ 189,072 | $ 589,871 | $ 353,559 | $ 1,573,424 | |
Vested and expected to vest at the end of the period, Aggregate intrinsic value | ¥ | 175,919 | ||||
Exercisable at the end of the period, Aggregate intrinsic value | ¥ | $ 64,574 | ||||
Non-employees | |||||
Options Outstanding | |||||
Balance at the beginning of the period (in shares) | 410 | 500 | 500 | ||
Exercised (in shares) | (90) | ||||
Balance at the end of the period (in shares) | 410 | 410 | 500 | 500 | |
Vested and expected to vest at the end of the period (in shares) | 410 | ||||
Exercisable at the end of the period (in shares) | 285 | ||||
Weighted Average Exercise Price | |||||
Balance at the beginning of the period (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 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 | $ 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 | ||||
Weighted Average Remaining Contractual Life and Aggregate Intrinsic Value | |||||
Weighted average remaining contractual life (in years) | 6 years 6 months 29 days | 7 years 6 months 29 days | 8 years 6 months 29 days | 9 years 6 months 29 days | |
Vested and expected to vest at the end of the period, weighted average remaining contractual life | 6 years 6 months 29 days | ||||
Exercisable at the end of the period, weighted average remaining contractual life | 6 years 6 months 29 days | ||||
Aggregate Intrinsic Value | ¥ | $ 8,962 | $ 19,864 | $ 12,439 | $ 22,706 | |
Vested and expected to vest at the end of the period, Aggregate intrinsic value | ¥ | 8,962 | ||||
Exercisable at the end of the period, Aggregate intrinsic value | ¥ | $ 6,229 |
Share-Based Compensation - Sc_3
Share-Based Compensation - Schedule of Activities for Stock Options (Parenthetical) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
SHARE-BASED COMPENSATION | |||
Granted (in shares) | 3,005,000 | 10,849,000 | 7,576,000 |
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, 2020$ / shares | Dec. 31, 2020$ / shares¥ / shares | Dec. 31, 2019$ / shares | Dec. 31, 2019$ / shares¥ / shares | Dec. 31, 2018$ / shares | Dec. 31, 2018$ / shares¥ / shares | |
Expected volatility, minimum | 45.25% | 45.25% | 41.81% | 41.81% | 52.10% | 52.10% |
Expected volatility, maximum | 48.26% | 48.26% | 42.09% | 42.09% | 54.90% | 54.90% |
Risk-free interest rate, minimum (per annum) | 0.67% | 0.67% | 1.80% | 1.80% | 3.65% | 3.65% |
Risk-free interest rate,maximum (per annum) | 0.88% | 0.88% | 1.81% | 1.81% | 3.74% | 3.74% |
Exercise multiples | $ 1.5 | $ 1.5 | ||||
Expected term (in years) | 10 years | 10 years | 10 years | 10 years | ||
Fair value of the underlying shares on the date of grants (US$) | (per share) | $ 3.7 | $ 25.5 | $ 5 | ¥ 35.6 | $ 4.3 | ¥ 27.8 |
Minimum | ||||||
Exercise multiples | 1.5 | ¥ 1.5 | $ 2.2 | ¥ 2.2 | ||
Expected term (in years) | 9 years 9 months 18 days | 9 years 9 months 18 days | ||||
Fair value of the underlying shares on the date of grants (US$) | 3.15 | 5.02 | $ 3.70 | |||
Maximum | ||||||
Exercise multiples | 2.5 | ¥ 2.5 | $ 2.8 | ¥ 2.8 | ||
Expected term (in years) | 10 years | 10 years | ||||
Fair value of the underlying shares on the date of grants (US$) | $ 4.15 | $ 6.02 | $ 4.57 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Options Outstanding | |||
Balance at the beginning of the period (in shares) | 5,994 | 1,237 | |
Granted (in shares) | 176 | 5,758 | 1,313 |
Vested (in shares) | (1,527) | (292) | (8) |
Cancelled/forfeited (in shares) | (989) | (709) | (68) |
Balance at the end of the period (in shares) | 3,654 | 5,994 | 1,237 |
Weighted-Average Grant Date Fair Value | |||
Balance at the beginning of the period (in dollars per share) | $ 5.39 | $ 7.47 | |
Granted (in dollars per share) | 4.27 | 5.10 | $ 7.45 |
Vested (in dollars per share) | 5.43 | 7.49 | 7.99 |
Cancelled (in dollars per share) | 5.57 | 5.78 | 7.02 |
Balance at the end of the period (in dollars per share) | $ 5.27 | $ 5.39 | $ 7.47 |
Share-Based Compensation - Su_3
Share-Based Compensation - Summary of Activities for Restricted Shares Units (Parenthetical) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Non-employee directors | Restricted Share Units | |||
SHARE-BASED COMPENSATION | |||
Granted (in shares) | 0 | 0 | 0 |
Commitments and Contingencies -
Commitments and Contingencies - Debt Obligations (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Expected repayment amount of debt obligation | ||
1 – 12 months | ¥ 1,866,318 | |
Total debt obligations | 1,866,318 | |
Interest payments | ||
Total interest payments | 284,715 | |
Expected repayment amount of debt obligation | ||
1 – 12 months | 785,177 | |
Total | 785,177 | |
Commitment to Purchase Delinquent Loans | ||
Expected repayment amount of debt obligation | ||
1 – 12 months | 785,177 | |
Total | 785,177 | |
Funding Debts | ||
Expected repayment amount of debt obligation | ||
1 – 12 months | 4,956,121 | |
13 – 24 months | 840,343 | |
Total debt obligations | 5,796,464 | |
Interest payments | ||
1 – 12 months | 270,186 | |
13 – 24 months | 14,529 | |
Total interest payments | 284,715 | |
Short-term Borrowings | ||
Expected repayment amount of debt obligation | ||
1 – 12 months | 1,827,063 | |
Total debt obligations | 1,827,063 | |
Interest payments | ||
1 – 12 months | 39,255 | |
Total interest payments | 39,255 | |
Convertible Notes | ||
Expected repayment amount of debt obligation | ||
1 – 12 months | 39,149 | |
13 – 24 months | 39,149 | |
25 – 36 months | 39,149 | |
37 – 48 months | 39,149 | |
49 – 60 months and beyond | 2,034,138 | |
Interest payments | ||
1 – 12 months | 39,149 | |
13 – 24 months | 39,149 | |
25 – 36 months | 39,149 | |
37 – 48 months | 39,149 | |
49 – 60 months and beyond | 76,668 | |
Total interest payments | 233,264 | |
Convertible notes | 1,957,470 | ¥ 2,092,860 |
Total convertible notes | 2,190,734 | |
Liabilities to Other Funding Partners | Funding Debts | ||
Expected repayment amount of debt obligation | ||
1 – 12 months | 4,685,935 | |
13 – 24 months | 825,814 | |
Total debt obligations | ¥ 5,511,749 |
Parent Company Only Condensed_3
Parent Company Only Condensed Financial Information - Condensed Balance Sheets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Current assets | ||||||
Cash and cash equivalents | ¥ 1,563,755 | $ 239,656 | ¥ 2,085,234 | $ 319,576 | ¥ 1,148,292 | ¥ 1,126,475 |
Prepaid expenses and other current assets | 1,004,845 | 153,999 | 1,324,924 | |||
Total current assets | 16,418,182 | 2,516,196 | 16,506,318 | |||
Non-current assets | ||||||
Long‑term investments | 521,802 | 79,970 | 511,605 | |||
Other assets | 462,285 | 70,848 | 454,421 | |||
Total non-current assets | 3,926,983 | 601,836 | 2,729,976 | |||
TOTAL ASSETS | 20,345,165 | 3,118,032 | 19,236,294 | |||
Current liabilities | ||||||
Accrued interest payable | 36,484 | 5,591 | 87,003 | |||
Accrued expenses and other current liabilities | 2,926,347 | 448,482 | 1,394,639 | |||
Total current liabilities | 12,019,673 | 1,842,095 | 9,802,619 | |||
Non-current liabilities | ||||||
Convertible notes | 1,920,227 | 294,288 | 2,046,051 | |||
Total non-current liabilities | 2,794,754 | 428,315 | 2,834,136 | |||
TOTAL LIABILITIES | 14,814,427 | 2,270,410 | 12,636,755 | |||
Commitments and contingencies (Note 21) | ||||||
SHAREHOLDERS’ EQUITY: | ||||||
Additional paid-in capital | 2,724,006 | 417,472 | 2,519,886 | |||
Accumulated other comprehensive (loss)/income | 3,308 | 507 | (7,288) | |||
Retained earnings | 2,113,956 | 323,978 | 3,734,397 | |||
Total equity attributable to owners of the company | 5,490,738 | 841,492 | 6,599,539 | |||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 20,345,165 | 3,118,032 | 19,236,294 | |||
Class A Ordinary Shares | ||||||
SHAREHOLDERS’ EQUITY: | ||||||
Ordinary shares | 176 | 27 | 170 | |||
Class B Ordinary Shares | ||||||
SHAREHOLDERS’ EQUITY: | ||||||
Ordinary shares | 58 | 9 | 61 | |||
Parent | ||||||
Current assets | ||||||
Cash and cash equivalents | 846 | 130 | 139,917 | |||
Amounts due from subsidiaries and other related parties | 2,430,814 | 372,538 | 2,449,933 | |||
Prepaid expenses and other current assets | 6,272 | 961 | 15,243 | |||
Total current assets | 2,437,932 | 373,629 | 2,605,093 | |||
Non-current assets | ||||||
Investments in subsidiaries, VIEs and VIEs’ subsidiaries | 4,945,849 | 757,985 | 6,021,088 | |||
Long‑term investments | 68,151 | 10,445 | 77,054 | |||
Other assets | 1,020 | |||||
Total non-current assets | 5,014,000 | 768,430 | 6,099,162 | |||
TOTAL ASSETS | 7,451,932 | 1,142,059 | 8,704,255 | |||
Current liabilities | ||||||
Amounts due to subsidiaries, VIEs and VIEs’ subsidiaries | 18,264 | 2,799 | 18,468 | |||
Accrued interest payable | 9,233 | 1,415 | 12,136 | |||
Accrued expenses and other current liabilities | 13,470 | 2,065 | 28,061 | |||
Total current liabilities | 40,967 | 6,279 | 58,665 | |||
Non-current liabilities | ||||||
Convertible notes | 1,920,227 | 294,288 | 2,046,051 | |||
Total non-current liabilities | 1,920,227 | 294,288 | 2,046,051 | |||
TOTAL LIABILITIES | 1,961,194 | 300,567 | 2,104,716 | |||
Commitments and contingencies (Note 21) | ||||||
SHAREHOLDERS’ EQUITY: | ||||||
Additional paid-in capital | 2,724,006 | 417,472 | 2,519,886 | |||
Accumulated other comprehensive (loss)/income | 3,308 | 507 | (7,288) | |||
Retained earnings | 2,763,190 | 423,477 | 4,086,710 | |||
Total equity attributable to owners of the company | 5,490,738 | 841,492 | 6,599,539 | |||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 7,451,932 | 1,142,059 | 8,704,255 | |||
Parent | Class A Ordinary Shares | ||||||
SHAREHOLDERS’ EQUITY: | ||||||
Ordinary shares | 176 | 27 | 170 | |||
Parent | Class B Ordinary Shares | ||||||
SHAREHOLDERS’ EQUITY: | ||||||
Ordinary shares | ¥ 58 | $ 9 | ¥ 61 |
Parent Company Only Condensed_4
Parent Company Only Condensed Financial Information - Condensed Balance Sheets (Parenthetical) (Details) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
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 | 268,935,832 | 263,614,582 |
Common stock, shares outstanding | 267,356,928 | 258,690,272 |
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 | 96,727,057 | 100,727,057 |
Common stock, shares outstanding | 96,727,057 | 100,727,057 |
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 | 268,935,832 | 263,614,582 |
Common stock, shares outstanding | 267,356,928 | 258,690,272 |
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 | 96,727,057 | 100,727,057 |
Common stock, shares outstanding | 96,727,057 | 100,727,057 |
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, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Operating expenses: | ||||
General and administrative expenses | ¥ (451,284) | $ (69,162) | ¥ (412,117) | ¥ (279,859) |
Total operating expenses | (2,199,951) | (337,157) | (2,366,810) | (1,190,007) |
Other long-term investments related impairment | (69,156) | (10,599) | (15,215) | |
Investment income | 7,885 | 1,208 | 52,211 | 18,753 |
Others, net | 146,029 | 22,380 | 82,422 | 1,773 |
Income before income tax expense | 685,609 | 105,075 | 2,706,511 | 2,109,528 |
Income tax expense applicable to China operations | 90,629 | 13,890 | 411,959 | 132,222 |
Net income | 594,980 | 91,185 | 2,294,552 | 1,977,306 |
Other comprehensive income | ||||
Foreign currency translation adjustments, net of nil tax | 10,596 | 1,624 | 7,020 | 643 |
Total comprehensive income | 605,576 | 92,809 | 2,301,572 | 1,977,949 |
Parent | ||||
Operating expenses: | ||||
General and administrative expenses | (15,707) | (2,407) | (18,514) | (15,686) |
Total operating expenses | (15,707) | (2,407) | (18,514) | (15,686) |
Interest (expense)/income, net | (47,783) | (7,323) | (14,085) | 4,304 |
Equity in income of subsidiaries, VIEs and VIEs’ subsidiaries | 626,877 | 96,073 | 2,260,115 | 1,978,986 |
Other long-term investments related impairment | (12,739) | |||
Investment income | 27,624 | 4,234 | 57,391 | 18,753 |
Others, net | 3,969 | 608 | 9,645 | 3,688 |
Income before income tax expense | 594,980 | 91,185 | 2,294,552 | 1,977,306 |
Net income | 594,980 | 91,185 | 2,294,552 | 1,977,306 |
Other comprehensive income | ||||
Foreign currency translation adjustments, net of nil tax | 10,596 | 1,624 | 7,020 | 643 |
Total comprehensive income | ¥ 605,576 | $ 92,809 | ¥ 2,301,572 | ¥ 1,977,949 |
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, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Condensed Cash Flow Statements Captions [Line Items] | ||||
Net cash used in operating activities | ¥ (211,019) | $ (32,338) | ¥ (778,504) | ¥ 2,794,710 |
Cash flows from investing activities: | ||||
Cash paid on long-term investments | (97,200) | (14,897) | (387,705) | (120,000) |
Net cash provided by/(used in) investing activities | (2,136,429) | (327,422) | (783,579) | 3,603,990 |
Cash flows from financing activities: | ||||
Proceeds from share issuance upon the underwriters’ exercise of over-allotment options, net of issuance costs | 95,125 | |||
Proceeds from receivables from Pre-IPO Series C-1 preferred shareholders | 348,264 | 170,790 | ||
Proceeds from issuance of convertible notes, net of debt discount | 2,096,408 | |||
Payment of debt issuance costs | (24,048) | (636) | ||
Payment of initial public offering expenses | (38,399) | |||
Exercise of share-based awards | 7,970 | 1,221 | 10,968 | 14 |
Net cash (used in)/ provided by financing activities | 1,233,011 | 188,966 | 3,058,821 | (5,617,941) |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (27,970) | (4,287) | (8,246) | (18,911) |
Net increase/(decrease) in cash and cash equivalents and restricted cash | (1,142,407) | (175,081) | 1,488,492 | 761,848 |
Cash and cash equivalents and restricted cash at beginning of the year | 3,985,626 | 610,824 | 2,497,134 | 1,735,286 |
Cash and cash equivalents and restricted cash at end of the year | 2,839,906 | 435,235 | 3,985,626 | 2,497,134 |
Effect Due to the Adoption of ASC 326 (Note 2(g)) | ||||
Cash flows from financing activities: | ||||
Cash and cash equivalents and restricted cash at end of the year | (3,313) | (508) | ||
Parent | ||||
Condensed Cash Flow Statements Captions [Line Items] | ||||
Net cash used in operating activities | (143,317) | (21,963) | (2,230,673) | (126,773) |
Cash flows from investing activities: | ||||
Cash paid on long-term investments | (17,558) | (2,691) | (66,737) | (655,959) |
Proceeds from disposal of long-term investments | 27,557 | 4,223 | 9,000 | |
Net cash provided by/(used in) investing activities | 9,999 | 1,532 | (57,737) | (655,959) |
Cash flows from financing activities: | ||||
Proceeds from share issuance upon the underwriters’ exercise of over-allotment options, net of issuance costs | 95,125 | |||
Proceeds from receivables from Pre-IPO Series C-1 preferred shareholders | 348,264 | 170,790 | ||
Proceeds from issuance of convertible notes, net of debt discount | 2,096,408 | |||
Payment of debt issuance costs | (24,048) | |||
Payment of initial public offering expenses | (23,908) | |||
Exercise of share-based awards | 7,970 | 1,221 | 10,968 | 14 |
Net cash (used in)/ provided by financing activities | 7,970 | 1,221 | 2,431,592 | 242,021 |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (13,607) | (2,085) | (4,140) | (28,773) |
Net increase/(decrease) in cash and cash equivalents and restricted cash | (138,955) | (21,295) | 139,042 | (569,484) |
Cash and cash equivalents and restricted cash at beginning of the year | 139,917 | 21,443 | 875 | 570,359 |
Cash and cash equivalents and restricted cash at end of the year | 846 | 130 | 139,917 | ¥ 875 |
Parent | Effect Due to the Adoption of ASC 326 (Note 2(g)) | ||||
Cash flows from financing activities: | ||||
Cash and cash equivalents and restricted cash at beginning of the year | ¥ (116) | $ (18) | ||
Cash and cash equivalents and restricted cash at end of the year | ¥ (116) |