Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Entity Registrant Name | Pintec Technology Holdings Ltd |
Entity Central Index Key | 0001716338 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2018 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Shell Company | false |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
Class A Ordinary Shares | |
Entity Common Stock, Shares Outstanding | 213,811,958 |
Class B Ordinary Shares | |
Entity Common Stock, Shares Outstanding | 51,782,495 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS $ in Thousands | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Current assets: | |||
Cash and cash equivalents | $ 66,532 | ¥ 457,442,000 | ¥ 370,891,000 |
Restricted time deposits | 36,739 | 252,599,000 | 5,000,000 |
Short-term investments | 2,000,000 | ||
Short-term financing receivables, net | 107,936 | 742,117,000 | 1,506,179,000 |
Accrued interest receivable, net | 1,607 | 11,052,000 | 7,637,000 |
Accounts receivable, net | 6,931 | 47,652,000 | 36,556,000 |
Prepayments and other current assets | 33,308 | 229,008,000 | 68,903,000 |
Amounts due from related parties | 69,148 | 475,426,000 | 229,026,000 |
Total current assets | 322,201 | 2,215,296,000 | 2,226,192,000 |
Non-current assets: | |||
Long-term financing receivables, net | 2,746 | 18,882,000 | 178,627,000 |
Long-term investments | 8,441 | 58,038,000 | 6,439,000 |
Deferred tax assets | 5,367 | 36,901,000 | |
Property, equipment and software, net | 1,135 | 7,806,000 | 6,647,000 |
Intangible assets, net | 789 | 5,423,000 | 7,212,000 |
Goodwill | 3,735 | 25,680,000 | 25,680,000 |
Total non-current assets | 22,213 | 152,730,000 | 224,605,000 |
TOTAL ASSETS | 344,414 | 2,368,026,000 | 2,450,797,000 |
Current liabilities: | |||
Short-term borrowings (including amounts of the consolidated VIEs of RMB nil and RMB220,000, respectively) | 31,998 | 220,000,000 | |
Short-term funding debts (including amounts of the consolidated VIEs of RMB1,220,884 and RMB679,957, respectively) | 98,896 | 679,957,000 | 1,220,884,000 |
Accrued interest payable (including amounts of the consolidated VIEs of RMB7,174 and RMB15,021, respectively) | 2,185 | 15,021,000 | 7,174,000 |
Accounts payable (including amounts of the consolidated VIEs of RMB42,985 and RMB37,691, respectively) | 5,648 | 38,850,000 | 43,043,000 |
Amounts due to related parties (including amounts of the consolidated VIEs of RMB344,028 and RMB80,713, respectively) | 14,050 | 96,596,000 | 375,369,000 |
Tax payable (including amounts of the consolidated VIEs of RMB21,327 and RMB51,633 respectively) | 8,302 | 57,081,000 | 22,386,000 |
Convertible loans (including amounts of the consolidated VIEs of RMB nil and RMB nil, respectively) | 242,273,000 | ||
Financial guarantee liabilities (including amounts of the consolidated VIEs of RMB nil and RMB15,537, respectively) | 2,260 | 15,537,000 | |
Accrued expenses and other liabilities (including amounts of the consolidated VIEs of RMB81,180 and RMB123,624, respectively) | 22,902 | 157,462,000 | 112,189,000 |
Total current liabilities | 186,241 | 1,280,504,000 | 2,023,318,000 |
Non-current liabilities: | |||
Long-term funding debts (including amounts of the consolidated VIEs of RMB 469,733, and RMB21, 498, respectively) | 3,127 | 21,498,000 | 469,733,000 |
Other non-current liabilities (including amounts of the consolidated VIEs of RMB nil and RMB nil, respectively) | 1,272 | 8,748,000 | 8,821,000 |
Amounts due to related parties (including amounts of the consolidated VIEs of RMB 11,120 and RMB nil, respectively) | 11,120,000 | ||
Total non-current liabilities | 4,399 | 30,246,000 | 489,674,000 |
TOTAL LIABILITIES | 190,640 | 1,310,750,000 | 2,512,992,000 |
Commitment and contingencies (Note 24) | |||
INVESTED (DEFICIT)/SHAREHOLDERS' EQUITY | |||
Parent company's investment deficit | (62,195,000) | ||
Additional paid-in capital | 275,906 | 1,896,993,000 | |
Statutory reserves | 253 | 1,739,000 | |
Accumulated other comprehensive income | 4,511 | 31,014,000 | |
Accumulated deficit | (126,929) | (872,698,000) | |
TOTAL INVESTED (DEFICIT)/SHAREHOLDERS' EQUITY | 153,774 | 1,057,276,000 | (62,195,000) |
TOTAL LIABILITIES AND INVESTED (DEFICIT)/SHAREHOLDERS' EQUITY | 344,414 | 2,368,026,000 | ¥ 2,450,797,000 |
Class A Ordinary Shares | |||
INVESTED (DEFICIT)/SHAREHOLDERS' EQUITY | |||
Ordinary shares | 27 | 185,000 | |
Class B Ordinary Shares | |||
INVESTED (DEFICIT)/SHAREHOLDERS' EQUITY | |||
Ordinary shares | $ 6 | ¥ 43,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Thousands | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2017CNY (¥)shares |
Short-term borrowings | ¥ 220,000,000 | |
Short-term funding debts | 679,957,000 | ¥ 1,220,884,000 |
Accrued interest payable | 15,021,000 | 7,174,000 |
Accounts payable | 38,850,000 | 43,043,000 |
Amounts due to related parties | 96,596,000 | 375,369,000 |
Tax payable | 57,081,000 | 22,386,000 |
Convertible loans | 242,273,000 | |
Financial guarantee liabilities | 15,537,000 | |
Accrued expenses and other liabilities | 157,462,000 | 112,189,000 |
Long-term funding debts | 21,498,000 | 469,733,000 |
Other non-current liabilities | ¥ 8,748,000 | 8,821,000 |
Amounts due to related parties | ¥ 11,120,000 | |
Class A Ordinary Shares | ||
Ordinary shares authorized (in shares) | shares | 348,217,505 | 0 |
Ordinary shares issued (in shares) | shares | 213,811,958 | 0 |
Ordinary shares outstanding (in shares) | shares | 213,811,958 | 0 |
Class B Ordinary Shares | ||
Ordinary shares authorized (in shares) | shares | 51,782,495 | 0 |
Ordinary shares issued (in shares) | shares | 51,782,495 | 0 |
Ordinary shares outstanding (in shares) | shares | 51,782,495 | 0 |
Consolidated VIEs | ||
Short-term borrowings | ¥ 220,000,000 | ¥ 0 |
Short-term funding debts | 679,957,000 | 1,220,884,000 |
Accrued interest payable | 15,021,000 | 7,174,000 |
Accounts payable | 37,691,000 | 42,985,000 |
Amounts due to related parties | 80,713,000 | 344,028,000 |
Tax payable | 51,633,000 | 21,327,000 |
Convertible loans | 0 | 0 |
Financial guarantee liabilities | 15,537,000 | 0 |
Accrued expenses and other liabilities | 123,624,000 | 81,180,000 |
Long-term funding debts | 21,498,000 | 469,733,000 |
Other non-current liabilities | 0 | 0 |
Amounts due to related parties | ¥ 0 | ¥ 11,120,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS)/INCOME $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | Dec. 31, 2016CNY (¥)¥ / sharesshares | |
Revenues: | ||||
Total revenues | $ 153,100 | ¥ 1,052,641,000 | ¥ 568,720,000 | ¥ 54,874,000 |
Cost of revenues: | ||||
Funding cost (including RMB1,120, RMB1,235 and RMB458 to a related party, respectively) | (23,472) | (161,384,000) | (78,831,000) | (16,643,000) |
Provision for credit losses | (10,241) | (70,411,000) | (115,920,000) | (16,124,000) |
Origination and servicing cost (including RMB2,732, RMB2,720 and RMB580 to a related party, respectively) | (47,028) | (323,342,000) | (177,662,000) | (27,087,000) |
Cost of revenues | (80,741) | (555,137,000) | (372,413,000) | (59,854,000) |
Gross (loss)/profit | 72,359 | 497,504,000 | 196,307,000 | (4,980,000) |
Operating expenses: | ||||
Sales and marketing expenses (including RMB35,444, RMB18,215 and RMB4,916 to a related party, respectively) | (14,496) | (99,671,000) | (72,076,000) | (72,010,000) |
General and administrative expenses (including RMB60,623, RMB45,533 and RMB33,692 to a related party, respectively) | (45,521) | (312,979,000) | (106,323,000) | (72,849,000) |
Research and development expenses (including RMB40,975, RMB35,795 and RMB9,499 to a related party, respectively) | (13,816) | (94,989,000) | (71,517,000) | (51,172,000) |
Total operating expenses | (73,833) | (507,639,000) | (249,916,000) | (196,031,000) |
Operating loss | (1,474) | (10,135,000) | (53,609,000) | (201,011,000) |
Change in fair value of convertible loans | (1,389) | (9,552,000) | (7,042,000) | |
Share of loss from equity method investments | (386) | (2,652,000) | (2,455,000) | |
Impairment from long-term investments | ¥ | (2,000,000) | |||
Other income/(loss), net | 1,283 | 8,822,000 | (1,238,000) | 684,000 |
Gain from financial guarantee liabilities | 3,112 | 21,397,000 | 0 | 0 |
(Loss)/income before income tax expense | 1,146 | 7,880,000 | (66,344,000) | (200,327,000) |
Income tax expense | (831) | (5,709,000) | (18,516,000) | (167,000) |
Net (loss)/income | 315 | 2,171,000 | (84,860,000) | (200,494,000) |
Other comprehensive income: | ||||
Foreign currency translation adjustments net of nil tax | 4,388 | 30,173,000 | 841,000 | |
Total other comprehensive income | 4,388 | 30,173,000 | 841,000 | |
Total comprehensive (loss)/income | $ 4,703 | ¥ 32,344,000 | ¥ (84,019,000) | ¥ (200,494,000) |
Pro forma net loss per ordinary share (unaudited) | ||||
Basic | (per share) | $ (0.10) | ¥ (0.72) | ¥ (2.07) | ¥ (4.23) |
Diluted | (per share) | $ (0.10) | ¥ (0.72) | ¥ (2.07) | ¥ (4.23) |
Pro forma weighted average number of ordinary shares outstanding (unaudited) | ||||
Basic | 103,995,794 | 103,995,794 | 62,875,631 | 57,297,427 |
Diluted | 103,995,794 | 103,995,794 | 62,875,631 | 57,297,427 |
Cost of revenues | ||||
Share-based compensation expenses included in | ||||
Share-based compensation expenses | $ (49) | ¥ (337,000) | ¥ (27,000) | ¥ (27,000) |
Sales and marketing expenses | ||||
Share-based compensation expenses included in | ||||
Share-based compensation expenses | (1,489) | (10,236,000) | (2,470,000) | (1,986,000) |
General and administrative expenses | ||||
Share-based compensation expenses included in | ||||
Share-based compensation expenses | (14,837) | (102,012,000) | (25,263,000) | (21,524,000) |
Research and development expenses | ||||
Share-based compensation expenses included in | ||||
Share-based compensation expenses | (2,716) | (18,675,000) | (3,258,000) | (2,128,000) |
Technical service fees | ||||
Revenues: | ||||
Total revenues | 108,613 | 746,768,000 | 425,311,000 | 34,171,000 |
Installment service fees | ||||
Revenues: | ||||
Total revenues | 42,335 | 291,077,000 | 139,862,000 | 16,394,000 |
Wealth management service fees and others | ||||
Revenues: | ||||
Total revenues | $ 2,152 | ¥ 14,796,000 | ¥ 3,547,000 | ¥ 4,309,000 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS)/INCOME (Parenthetical) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Funding cost | ¥ 161,384,000 | ¥ 78,831,000 | ¥ 16,643,000 |
Origination and servicing cost | 323,342,000 | 177,662,000 | 27,087,000 |
Sales and marketing expenses | 99,671,000 | 72,076,000 | 72,010,000 |
General and administrative expenses | 312,979,000 | 106,323,000 | 72,849,000 |
Research and development expenses | 94,989,000 | 71,517,000 | 51,172,000 |
Foreign currency translation adjustments, tax | 0 | 0 | 0 |
A related party | |||
Funding cost | 458,000 | 1,235,000 | 1,120,000 |
Origination and servicing cost | 580,000 | 2,720,000 | 2,732,000 |
Sales and marketing expenses | 4,916,000 | 18,215,000 | 35,444,000 |
General and administrative expenses | 33,692,000 | 45,533,000 | 60,623,000 |
Research and development expenses | ¥ 9,499,000 | ¥ 35,795,000 | ¥ 40,975,000 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN INVESTED (DEFICIT)/ SHAREHOLDERS' EQUITY ¥ in Thousands, $ in Thousands | Class A Ordinary SharesPre-IPOOrdinary sharesCNY (¥)shares | Class A Ordinary SharesIPOOrdinary sharesCNY (¥)shares | Class A Ordinary SharesOrdinary sharesCNY (¥)shares | Class A Ordinary Sharesshares | Class B Ordinary SharesOrdinary sharesCNY (¥)shares | Class B Ordinary Sharesshares | Pre-IPOCNY (¥) | IPOAdditional Paid-in CapitalCNY (¥) | IPOCNY (¥) | Statutory ReserveCNY (¥) | Additional Paid-in CapitalCNY (¥) | Accumulated Other Comprehensive IncomeCNY (¥) | Accumulated DeficitCNY (¥) | Parent Company's Investment DeficitCNY (¥) | USD ($) | CNY (¥) |
Balance at beginning of year at Dec. 31, 2015 | ¥ 10,567 | ¥ 10,567 | ||||||||||||||
Changes in equity | ||||||||||||||||
Parent company contribution | 155,057 | 155,057 | ||||||||||||||
Share-based compensation expenses allocated from Jimu Parent | 25,665 | 25,665 | ||||||||||||||
Net income/loss | (200,494) | (200,494) | ||||||||||||||
Balance at end of year at Dec. 31, 2016 | (9,205) | (9,205) | ||||||||||||||
Changes in equity | ||||||||||||||||
Share-based compensation expenses allocated from Jimu Parent | 31,018 | 31,018 | ||||||||||||||
Net income/loss | (84,860) | (84,860) | ||||||||||||||
Contribution from shareholders | 11 | 11 | ||||||||||||||
Foreign currency translation adjustments net of nil tax | 841 | 841 | ||||||||||||||
Balance at end of year at Dec. 31, 2017 | (62,195) | (62,195) | ||||||||||||||
Balance at end of year (in shares) at Dec. 31, 2017 | shares | 0 | 0 | ||||||||||||||
Changes in equity | ||||||||||||||||
Net income/loss | ¥ 2,171 | $ 315 | 2,171 | |||||||||||||
Foreign currency translation adjustments net of nil tax | ¥ 30,173 | 4,388 | 30,173 | |||||||||||||
Completion of reorganization | ¥ 59 | ¥ 113,110 | 841 | (873,130) | ¥ 62,195 | (696,925) | ||||||||||
Completion of reorganization (in shares) | shares | 72,000,000 | |||||||||||||||
Share issuance | ¥ 1 | ¥ 25 | ¥ 1 | ¥ 280,448 | ¥ 280,473 | |||||||||||
Share issuance (in shares) | shares | 14,204 | 29,456,490 | ||||||||||||||
Share issuance upon conversion and redesignation of Pre-IPO Preferred Shares into Class A Ordinary Shares | ¥ 144 | 1,437,530 | 209,101 | 1,437,674 | ||||||||||||
Share issuance upon conversion and redesignation of Pre-IPO Preferred Shares into Class A Ordinary Shares (in shares) | shares | 164,664,569 | |||||||||||||||
Repurchase of Class A Ordinary Shares | ¥ (1) | (1) | ||||||||||||||
Repurchase of Class A Ordinary Shares (in shares) | shares | (540,810) | |||||||||||||||
Share issuance upon the redesignation of Pre-IPO Class A Ordinary Shares into Class A and Class B Ordinary Shares | ¥ (58) | ¥ 15 | ¥ 43 | |||||||||||||
Share issuance upon the redesignation of Pre-IPO Class A Ordinary Shares into Class A and Class B Ordinary Shares (in shares) | shares | (71,459,190) | 19,676,695 | 51,782,495 | |||||||||||||
Pre-IPO Preferred Shares redemption value accretion | (65,355) | (65,355) | ||||||||||||||
Appropriation to statutory reserve | ¥ 1,739 | (1,739) | ||||||||||||||
Share-based awards to employee of the Group | 131,260 | 131,260 | ||||||||||||||
Share-based awards to employee of Jimu Parent | 28,914 | 28,914 | ||||||||||||||
Deemed dividend to Jimu Parent in connection with the share-based awards to employee of Jimu Parent | (28,914) | (28,914) | ||||||||||||||
Balance at end of year at Dec. 31, 2018 | ¥ 185 | ¥ 43 | ¥ 1,739 | ¥ 1,896,993 | ¥ 31,014 | ¥ (872,698) | $ 153,774 | ¥ 1,057,276 | ||||||||
Balance at end of year (in shares) at Dec. 31, 2018 | shares | 213,811,958 | 213,811,958 | 51,782,495 | 51,782,495 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN INVESTED (DEFICIT)/ SHAREHOLDERS' EQUITY (Parenthetical) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CONSOLIDATED STATEMENTS OF CHANGES IN INVESTED (DEFICIT)/ SHAREHOLDERS' EQUITY | |||
Foreign currency translation adjustments, tax | ¥ 0 | ¥ 0 | ¥ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Cash flows from operating activities: | ||||
Net (loss)/income | $ 315 | ¥ 2,171,000 | ¥ (84,860,000) | ¥ (200,494,000) |
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities: | ||||
Depreciation and amortization | 684 | 4,701,000 | 4,079,000 | 2,948,000 |
Gain on fair value change on previously held equity interest (Note 4) | (394,000) | |||
Share-based compensation expenses | 19,091 | 131,260,000 | 31,018,000 | 25,665,000 |
Provision for doubtful accounts and credit losses | 25,953 | 178,438,000 | 132,510,000 | 17,275,000 |
Change in fair value of convertible loans | 1,389 | 9,552,000 | 7,042,000 | |
Release of financial guarantee liabilities upon repayment | (3,112) | (21,397,000) | 0 | 0 |
Share of loss from equity-method investments | 386 | 2,652,000 | 2,455,000 | |
Change in fair value of short-term investments | 46 | 315,000 | ||
Impairment from long-term investments | 2,000,000 | |||
Changes in operating assets and liabilities: | ||||
Accounts receivable | (17,326) | (119,123,000) | (45,958,000) | (7,836,000) |
Amounts due from related parties | 5,241 | 36,036,000 | (42,119,000) | (3,778,000) |
Prepayments and other current assets | (3,322) | (22,840,000) | (50,881,000) | (11,822,000) |
Deferred tax assets | (5,367) | (36,901,000) | ||
Accrued interest receivable | (1,231) | (8,461,000) | (9,022,000) | (1,450,000) |
Accounts payable | (610) | (4,193,000) | 36,139,000 | 784,000 |
Amounts due to related parties | (13,789) | (94,812,000) | 92,431,000 | 42,611,000 |
Accrued interest payable | 1,141 | 7,847,000 | 5,941,000 | 369,000 |
Tax payable | 5,046 | 34,695,000 | 20,442,000 | 1,731,000 |
Financial guarantee liabilities | 5,372 | 36,934,000 | ||
Accrued expenses and other liabilities | (4,153) | (28,565,000) | 96,221,000 | 11,325,000 |
Net cash (used in)/provided by operating activities | 15,754 | 108,309,000 | 197,438,000 | (123,066,000) |
Cash flows from investing activities: | ||||
Purchase of property, equipment and software | (592) | (4,071,000) | (2,238,000) | (1,296,000) |
Financing receivables facilitated | (560,509) | (3,853,780,000) | (7,109,958,000) | (1,918,955,000) |
Principal collection on financing receivables | 685,364 | 4,712,223,000 | 5,671,423,000 | 1,811,763,000 |
Loan issued to a third party (Note 8) | (19,964) | (137,264,000) | ||
Net cash advances to Jimu Group | (64,212) | (441,491,000) | ||
Loans issued to Jimu Group and other financing transactions | (8,674) | (59,636,000) | ||
Collection of loan issued to Jimu Group | 7,588 | 52,169,000 | ||
Purchase of short-term investments | (2,000,000) | |||
Proceeds from short-term investments | 245 | 1,685,000 | ||
Purchase of long-term investments | (2,801) | (19,259,000) | (2,000,000) | |
Cash acquired due to acquisition of Shenzhen Minheng (Note 4) | 310,000 | |||
Net cash (used in)/provided by investing activities | 36,445 | 250,576,000 | (1,444,773,000) | (108,178,000) |
Cash flows from financing activities: | ||||
Proceeds from issuance of Pre-IPO Preferred Shares | 59,674 | 410,286,000 | ||
Proceeds from initial public offering and followed offering, net of issuance cost | 46,026 | 316,451,000 | ||
Proceeds from short-term borrowings | 41,908 | 288,141,000 | ||
Repayment of short-term borrowings | (9,911) | (68,141,000) | ||
Cash received from third parties (Note 8) | 74,758 | 514,000,000 | ||
Cash repayment to third parties | (74,758) | (514,000,000) | ||
Net cash advances from Jimu Group | 23,121,000 | 29,790,000 | ||
Cash repayment to Jimu Group | (3,363) | (23,121,000) | ||
Contribution from Jimu Group and shareholders | 11,000 | 155,057,000 | ||
Loan proceeds from Jimu Group | 1,848 | 12,711,000 | 29,270,000 | |
Repayment of loans to Jimu Group | (2,640) | (18,150,000) | ||
Loan proceeds from a Shareholder (Note 2 1(d)) | 21,962 | 151,000,000 | ||
Repayment of loan to a Shareholder (Note 2 1(d)) | (4,263) | (29,313,000) | ||
Proceeds from funding debts | 470,642 | 3,235,901,000 | 6,842,534,000 | 1,737,966,000 |
Principal payments on funding debts | (632,208) | (4,346,749,000) | (5,534,199,000) | (1,666,113,000) |
Proceeds from issuance of convertible loans | 3,160 | 21,730,000 | 235,231,000 | |
Net cash provided/(used in) by financing activities | (7,165) | (49,254,000) | 1,595,968,000 | 256,700,000 |
Effect of exchange rate changes on cash, cash equivalents and restricted time deposits | 3,566 | 24,519,000 | (34,000) | |
Net increase in cash, cash equivalents and restricted time deposits | 48,600 | 334,150,000 | 348,599,000 | 25,456,000 |
Cash, cash equivalents and restricted time deposits at beginning of the year | 54,671 | 375,891,000 | 27,292,000 | 1,836,000 |
Cash and cash equivalents at beginning of the year | 53,944 | 370,891,000 | 27,292,000 | 1,836,000 |
Restricted time deposits at beginning of the year | 727 | 5,000,000 | 0 | |
Cash, cash equivalents and restricted time deposits at end of the year | 103,271 | 710,041,000 | 375,891,000 | 27,292,000 |
Cash and cash equivalents at end of the year | 66,532 | 457,442,000 | 370,891,000 | 27,292,000 |
Restricted time deposits at end of the year | 36,739 | 252,599,000 | 5,000,000 | 0 |
Supplemental disclosure of cash flow information | ||||
Cash paid for interest and funding cost | 23,367 | 160,666,000 | 69,328,000 | 14,473,000 |
Cash paid for the acquisition of Shenzhen Minheng by Jimu Parent on behalf of the Company | ¥ 1,000,000 | |||
Cash paid for income tax expense | 2,654 | 18,248,000 | ¥ 9,971,000 | |
Non-cash financing and investing activities | ||||
Pre-IPO Preferred shares redemption value Accretion | 9,505 | 65,355,000 | ||
Conversion of convertible loans into Pre-IPO Preferred Shares | 38,398 | 264,003,000 | ||
Redesignation of Pre-IPO Preferred Shares into Class A Ordinary Shares | 209,101 | ¥ 1,437,674,000 | ||
Payables related to long-term investments | $ (5,091) |
Organization and principal acti
Organization and principal activities | 12 Months Ended |
Dec. 31, 2018 | |
Organization and principal activities | |
Organization and principal activities | 1. Organization and principal activities (a) Nature of operations Pintec Technology Holdings Limited (the “Company” or “Pintec”) was incorporated in the Cayman Islands on March 2, 2017 as an exempted company with limited liability. The Company (and its predecessor prior to the reorganization) through its subsidiaries, and its variable interest entities (“VIEs”) (collectively, the “Group”) is principally engaged in the operation of an online technology platform enabling financial services (the “Pintec Business”) in the People’s Republic of China (the “PRC” or “China”). The financial services enabled by the Company’s technology platform include: (i) a lending solution for borrowers to originate loans, (ii) a lending solution for borrowers who want to finance online purchases and (iii) a wealth management solution and insurance solution for asset management companies and insurance companies respectively to facilitate the sales of their products. (See Note 2(s) for details of the lending solutions, wealth management solution and insurance solution) (b) Reorganization The Pintec Business commenced operations in June 2015 as a business unit within Jimu Holdings Limited (the “Parent Company” or “Jimu Parent” formerly known as Pintec Holdings Limited), which is a British Virgin Islands (“BVI”) holding company. The Company was established in connection with a group reorganization (the “Reorganization”) of Jimu Parent. As part of the Reorganization, the Pintec Business was transferred to the Group as of March 31, 2018. The Reorganization was approved by the Board of Directors and a restructuring framework agreement was entered into by the Group, Jimu Parent and the shareholders of Jimu Parent in December 2017. To effect the transfer of the Pintec Business to the Group, the following major steps were undertaken: · Pintec, the holding company for the Group, was set up by one of the founding shareholders of Jimu Parent, (one of the “Founders”). · In April 2017, four dormant holding companies of Jimu Parent which were incorporated in BVI or Hong Kong were transferred to Pintec at par value along with two newly established subsidiaries incorporated in China. · In May 2017, Pintec issued common shares at par value to Jimu Parent common shareholders for the respective number of shares that they held in Jimu Parent, subject to the receipt of the share issuance price from the shareholders. · In December, 2017, Pintec issued preferred shares at par value to Jimu Parent preferred shareholders for the respective number of shares that they held in Jimu Parent, subject to the receipt of the share issuance price from the shareholders. · In December, 2017, the Pintec Business was starting to be transferred to the Group. This was done by (1) signing agreements over four variable interest entities which were dormant or were used for the operations of the Pintec Business. These four variable interest entities, together with their five wholly owned subsidiaries, operate the Pintec Business (See Note 1 (c) for details of these agreements), and (2) transferring certain other assets and employees from Jimu Parent’s subsidiaries and variable interest entities to the Group. · In December 2017, options of the Company were issued in connection with the Reorganization to mirror the number and vesting terms of the options originally granted by Jimu Parent. These options have an expiration period of 10 years. · In March 2018, the issuance price of the common shares and preferred shares of the Company, which were outstanding as of December 31, 2017 were fully paid by shareholders, based on the respective number of shares that common and preferred shareholders that they held in Pintec. Also the transfer of the key employees from Jimu Parent’s subsidiaries and variable interest entities to the Group was completed in March 2018. Establishment of Pintec, its subsidiaries and VIEs As of December 31, 2018, the Company’s principal subsidiaries, consolidated VIEs and subsidiaries of VIEs are as follows. Date of incorporation/ acquisition Place of incorporation Percentage of direct or indirect economic interest Principal activities The Company: Pintec Technology Holdings Limited (“Pintec”) March 2, 2017 The Cayman Islands Investment holding Wholly owned subsidiaries: Sky City Holdings Limited (“Sky City BVI”) June 23, 2016 BVI Investment holding Sky City Hong Kong Limited (“Sky City HK”) August 17, 2016 Hong Kong Investment holding Sky City (Beijing) Technology Co., Ltd. (“Sky City WFOE”) December 22, 2016 The PRC Investment holding Next Hop Holdings Limited (“Next Hop BVI”) January 4, 2016 BVI Investment holding Next Hop Hong Kong Limited (“Next Hop HK”) January 20, 2016 Hong Kong Investment holding Pintec (Beijing) Technology Co., Ltd (“Pintec Beijing WFOE”) December 21, 2016 The PRC Investment holding Anxunying (Tianjin) Commercial Factoring Co., Ltd. ("Anxunying Tianjin") December 3, 2018 The PRC Lending solution business Pintec Solutions Pte. Ltd. ("Pintec Solutions") December 21, 2018 Singapore Lending solution business Pintec (Ganzhou) Technology Co.,Ltd ("Pintec Ganzhou") December 24, 2018 The PRC Lending solution business VIEs and VIEs’ subsidiaries (referred to as “Pintec Operating Entities”): Anquying (Tianjin) Technology Co., Ltd. (“Tianjin Anquying”) January 29, 2016 The PRC Lending solution business Shanghai Anquying Technology Co., Ltd. (“Shanghai Anquying”) November 16, 2015 The PRC Lending solution business Ganzhou Dumiao Intelligence Technology Co., Ltd (formerly known as Anquying (Ganzhou) Technology Co., Ltd.) (“Ganzhou Anquying”) May 27, 2017 The PRC Lending solution business Shenzhen Qianhai Minheng Commercial Factoring Co., Ltd. (“Shenzhen Minheng”) June 30, 2016 The PRC Lending solution business Beijing Hongdian Fund Distributor Co., Ltd. (“Beijing Hongdian”) April 13, 2015 The PRC Wealth management solution business Xuanji Intelligence (Beijing) Technology Co., Ltd. (“Beijing Xuanji”) May 31, 2016 The PRC Wealth management solution business Tianjin Xiangmu Asset Management Co., Ltd. (“Tianjin Xiangmu”) June 18, 2015 The PRC Wealth management solution business Pintec Jinke (Beijing) Technology Information Co., Ltd., (formerly known as Hezi (Beijing) Consultants Co., Ltd) (“Beijing Jinke”) January 3, 2017 The PRC Wealth management solution business Myfin Insurance Broker Co., Ltd (“Myfin Insurance”) December 17, 2015 The PRC Insurance solution business Basis of Presentation for the Reorganization The Reorganization consists of transferring the Pintec Business to the Group, which is owned by Jimu Parent’s shareholders immediately before and after the Reorganization. The shareholding percentages and rights of each shareholder are the same in Jimu Parent and Pintec immediately before and after the Reorganization. Accordingly, the Reorganization is accounted for in a manner similar to a common control transaction because it is determined that the transfers lack economic substance. Therefore, the accompanying consolidated financial statements include the assets, liabilities, revenue, expenses and cash flows that are directly attributable to the Pintec Business for the period presented and are prepared as if the corporate structure of Pintec after the Reorganization had been in existence throughout the period presented. Such presentation may not necessarily reflect the results of operations, financial position and cash flows of the Group had it existed on a stand‑alone basis during the period presented. The assets and liabilities are stated at historical carrying amounts. Those assets and liabilities that are specifically related to the Pintec Business are included in the Group’s consolidated balance sheets. Income tax liability is calculated on a separate return basis as if the Group had filed separate tax returns. The Group’s statement of operations and comprehensive loss consists of all the revenues, costs and expenses of the Pintec Business, including allocations to the cost of revenue, sales and marketing expenses, research and development expenses, and general and administrative expenses, which were incurred by Jimu Parent but related to the Pintec Business. These allocated costs and expenses are primarily for office rental expenses, office utilities, information technology support and certain corporate functions, including senior management, finance, legal and human resources, as well as share‑based compensation expense. Generally, the cost of shared employees were allocated to the Group based on the Group’s headcount as a proportion of total headcount in the Jimu Parent group; share based compensation expenses were allocated to the Group based on the compensation expenses attributable to employees of Pintec Business, and shared corporate marketing expenses and bandwidth and server hosting costs were allocated based on the Group’s revenues as a proportion of the total revenue of Jimu Parent group. These allocations are made on a basis considered reasonable by management to estimate what the Company would incur on a stand‑alone basis, as if the Company had operated as an unaffiliated entity, before the consummation of the Reorganization. The following tables set forth the cost of revenues, sales and marketing expenses, research and development expenses, and general and administrative expenses allocated from Jimu Parent for the years ended December 31, 2016 and 2017 and 2018: Share based For the year ended December 31, 2016: compensation Others Total RMB RMB RMB Cost of revenues 27 3,825 3,852 Sales and marketing expenses 1,986 33,458 35,444 General and administrative expenses 21,524 39,099 60,623 Research and development expenses 2,128 38,847 40,975 Total 25,665 115,229 140,894 Out of the total costs and expenses of RMB140,894 allocated from Jimu Parent for the year ended December 31, 2016, RMB25,665 is for share based compensation expenses which are recorded as a contribution from Jimu Parent. With respect to the remaining balance of allocated expenses of RMB115,229, (i) RMB74,367 was deemed to be a contribution from the parent company as it was agreed between the Company and Jimu Parent that payment for allocated expenses up to September 30, 2016, the date the Reorganization was initiated, would be waived by Jimu Parent and (ii) RMB40,862 will be settled with Jimu Parent. For purposes of presentation in the consolidated statement of cash flows for the year ended December 31, 2016, the RMB74,367 contribution related to the allocated expenses, cash contributions of RMB80,690, and cash advances from Jimu Parent to support the Pintec Business are presented as cash flows from financing activities. For purposes of the consolidated statement of changes in invested (deficit)/equity for the year ended December 31, 2016, the allocated cost and expenses and cash contributions are reflected as a contribution from Jimu parent. Funding from Jimu Parent to the Company, net of the repayment by the Company are disclosed as net cash advances from the parent company under financing activities and reflected in the amounts due to related parties on the balance sheet. Share based For the year ended December 31, 2017: compensation Others Total RMB RMB RMB Cost of revenues 27 2,693 2,720 Sales and marketing expenses 2,470 15,745 18,215 General and administrative expenses 25,263 20,270 45,533 Research and development expenses 3,258 32,537 35,795 Total 31,018 71,245 102,263 Out of the total costs and expenses of RMB102,263 allocated from Jimu Parent for the year ended December 31, 2017, RMB31,018 is for share based compensation expenses which are recorded as a contribution from Jimu Parent. With respect to the remaining balance of allocated expenses of RMB71,245, which are primarily billed by Jimu Parent and recognized in the current portion of "Amounts due to related parties" of the consolidated balance sheets, which will be settled with Jimu Parent. Share based For the year ended December 31, 2018: compensation Others Total RMB RMB RMB Cost of revenues 214 366 580 Sales and marketing expenses 3,147 1,769 4,916 General and administrative expenses 28,945 4,747 33,692 Research and development expenses 4,190 5,309 9,499 Total 36,496 12,191 48,687 Out of the total costs and expenses of RMB48,687 allocated from Jimu Parent for the year ended December 31, 2018, RMB36,496 for share based compensation expenses which are allocated from Jimu Parent. With respect to the remaining balance of allocated expenses of RMB12,191, which are primarily billed by Jimu Parent and recognized in the current portion of “Amounts due to related parties” of the consolidated balance sheets, will be settled with Jimu Parent. (c) Variable interest entities (excluding the consolidated Trusts and asset-backed securitized debts as discussed in Note 2(f)) (1) VIE arrangement before the Reorganization Prior to the Reorganization, in order to comply with the PRC laws and regulations which prohibit or restrict foreign control of companies involved in provision of internet content and certain finance businesses, the Jimu Parent operated its restricted businesses in the PRC through its VIEs, whose equity interests are held by certain founders of Jimu Parent. Jimu Parent obtained control over these VIEs by entering into a series of contractual arrangements with the legal shareholders who are also referred to as nominee shareholders. To comply with PRC laws and regulations which prohibit or restrict foreign ownership of internet content and certain finance businesses, the nominee shareholders are the legal owners of an entity. However, the rights of those nominee shareholders have been transferred to Jimu Parent through the contractual arrangements. The contractual arrangements that were used to control the VIEs include powers of attorney, exclusive business cooperation agreements, equity pledge agreements and exclusive option agreements. Management concluded that Jimu Parent, through the contractual arrangements, has the power to direct the activities that most significantly impact the VIEs’ economic performance, bears the risks of and enjoys the rewards normally associated with ownership of the VIEs, and therefore Jimu Parent is the ultimate primary beneficiary of these VIEs constituting the Pintec Business. As such, Jimu Parent consolidated the financial statements of these VIEs. Consequently, the financial results of the VIEs directly attributable to the predecessor operations were included in the Group’s consolidated financial statements in accordance with the basis of presentation for the Reorganization as stated in Note 1. The following is a summary of the contractual agreements that the Jimu Parent, through its wholly foreign owned enterprise subsidiaries (“Jimu WFOE”), entered into with the VIEs and their nominee shareholders: Powers of attorney —Pursuant to the irrevocable power of attorney, Jimu WFOE is authorized by each of the nominee shareholders as their attorney in‑fact to exercise all shareholder rights under PRC law and the relevant articles of association, including but not limited to, the sale or transfer or pledge or disposition of all or part of the nominee shareholders’ equity interests, and designate and appoint directors, chief executive officers and general manager, and other senior management members of the VIEs. Each power of attorney will remain in force during the period when the nominee shareholder continues to be shareholder of the VIEs. Each nominee shareholder has waived all the rights which have been authorized to Jimu WFOE under each power of attorney. The powers of attorney are irrevocable and remains in force continuously upon execution. Exclusive business cooperation agreements —Jimu WFOE and the VIEs entered into exclusive business cooperation agreements under which the VIEs engage Jimu WFOE as their exclusive provider of technical services and business consulting services. The VIEs shall pay services fees to Jimu WFOE, which are determined by Jimu WFOE at its sole discretion. Jimu WFOE shall have exclusive and proprietary rights and interests in all rights, ownership, interests and intellectual properties arising from the performance of the agreement. During the term of the agreement, the VIEs shall not accept any consultations and/or services provided by any third party and shall not cooperate with any third party for the provision of identical or similar services without prior consent of Jimu WFOE. These agreements will remain in effect for ten years, but can be terminated by Jimu WFOE with 30 days’ advance written notice. These agreements can be extended at the sole discretion of Jimu Parent. Equity pledge agreements —Pursuant to the relevant equity pledge agreements, the nominee shareholders of the VIEs have pledged all of their equity interests in the VIEs to Jimu WFOE as collateral for all of the VIEs’ payments due to Jimu WFOE and to secure the VIEs’ obligations under the above agreement. The nominee shareholders shall not transfer or assign the equity interests, the rights and obligations in the equity pledge agreement or create or permit to create any pledges which may have an adverse effect on the rights or benefits of Jimu WFOE without Jimu WFOE’s written consent. Jimu WFOE is entitled to transfer or assign in full or in part the equity interests pledged. In the event of default, Jimu WFOE as the pledgee, will be entitled to request immediate payment of the unpaid service fee and other amounts due to Jimu Parent’s relevant PRC subsidiaries, and/or to dispose of the pledged equity. These equity pledge agreements will remain effective until the variable interest entities and their shareholders discharge all their obligations under the contractual arrangements. Exclusive option agreements —The nominee shareholders of the VIEs have granted Jimu WFOE the exclusive and irrevocable option to purchase from the nominee shareholders, to the extent permitted under PRC laws and regulations, part or all of their equity interests in these entities for a purchase price equal to the actual capital contribution paid in the registered capital of the VIEs by the nominee shareholders for their equity interests. Jimu WFOE may exercise such option at any time. In addition, the VIEs and their nominee shareholders have agreed that without prior written consent of Jimu WFOE, they shall not sell, transfer, mortgage or dispose of any assets or equity interests of the VIEs or declare any dividend. These agreements will remain effective for ten years and can be extended at the sole discretion of Jimu Parent. (2) VIE arrangement after the Reorganization In connection with the Reorganization, contractual arrangements consistent with those in place prior to the reorganization have been entered into among the Company’s wholly owned subsidiaries (i.e. Sky City WFOE and Pintec Beijing WFOE), Tianjin Anquying, Beijing Hongdian, Beijing Xuanji, Beijing Jinke and the respective nominee shareholders of these VIEs. Shanghai Anquying, Shenzhen Minheng and Ganzhou Anquying are wholly owned by Tianjin Anquying, Myfin Insurance is wholly owned by Beijing Jinke, and Tianjin Xiangmu is wholly owned by Beijing Xuanji, thus, no separate contractual arrangement will be entered into with these subsidiaries of the VIEs. The Group has determined that it is the primary beneficiary of these VIEs through the contractual arrangements. Accordingly, the Company will consolidate these VIEs’ results of operations, assets and liabilities in the Group’s consolidated financial statements pursuant to the accounting principles generally accepted in the United States (“U.S. GAAP”) upon the execution of the new contractual arrangements. Refer to Note 2(b) to the consolidated financial statements for the principles of consolidation. (d) Risks in relation to the VIE structure A significant part of the Group’s business is conducted through the VIEs of the Group, of which the Company is the ultimate primary beneficiary. In the opinion of management, the contractual arrangements with the VIEs and the nominee shareholders are in compliance with PRC laws and regulations and are legally binding and enforceable. The nominee shareholders are also shareholders of the Group and have indicated they will not act contrary to the contractual arrangements. However, there are substantial uncertainties regarding the interpretation and application of PRC laws and regulations including those that govern the contractual arrangements, which could limit the Group’s ability to enforce these contractual arrangements and if the nominee shareholders of the VIE were to reduce their interests in the Group, their interest may diverge from that of the Group and that may potentially increase the risk that they would seek to act contrary to the contractual arrangements. The Company’s ability to control the VIEs also depends on the powers of attorney the founders has to vote on all matters requiring shareholder approval in the VIEs. As noted above, the Company believes these powers of attorney are legally enforceable but may not be as effective as direct equity ownership. 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 draft Foreign Investment Law was submitted to the National People’s Congress for review and was approved on March 15, 2019, which will come into effect on January 1, 2020. The approved Foreign Investment Law does not touch upon the relevant concepts and regulatory regimes that were historically suggested for the regulation of VIE structures, and thus this regulatory topic remains unclear under the Foreign Investment Law. Given that the Foreign Investment Law is 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 these power of attorney are 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 the 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 could result in a material adverse effect on the Group’s ability to conduct its business. In such case, the Group may not be able to operate or control the VIEs, which may result in deconsolidation of the VIEs in the Group’s consolidated financial statements. In the opinion of management, the likelihood for the Group to lose such ability is remote based on current facts and circumstances. The Group believes that the contractual arrangements among each of the VIEs, their respective shareholders and relevant wholly foreign-owned enterprise are in compliance with PRC law and are legally enforceable. The Group’s operations depend on the VIEs to honor their contractual arrangements with the Group. These contractual arrangements are governed by PRC law and disputes arising out of these agreements are expected to be decided by arbitration in the PRC. Management believes that each of the contractual arrangements constitutes valid and legally binding obligations of each party to such contractual arrangements under PRC laws. However, the interpretation and implementation of the laws and regulations in the PRC and their application on the legality, binding effect and enforceability of contracts are subject to the discretion of competent PRC authorities, and therefore there is no assurance that relevant PRC authorities will take the same position as the Group herein in respect of the legality, binding effect and enforceability of each of the contractual arrangements. Meanwhile, since the PRC legal system continues to evolve, the interpretations of many laws, regulations and rules are not always uniform and enforcement of these laws, regulations and rules involve uncertainties, which may limit legal protections available to the Group to enforce the contractual arrangements should the VIEs or the nominee shareholders of the VIEs fail to perform their obligations under those arrangements. The following consolidated financial information of the Group’s VIEs directly attributable to the predecessor operations as of December 31, 2017 and 2018 and for the years then ended were included in the accompanying Group’s consolidated financial statements as follows: As of December 31, 2017 2018 RMB RMB ASSETS Cash and cash equivalents 159,189 232,913 Restricted time deposits 5,000 7,033 Short-term investments 2,000 — Short-term financing receivables, net 1,506,179 742,117 Accrued interest receivable, net 7,637 11,052 Accounts receivable, net 36,556 47,148 Prepayments and other current assets 38,516 32,814 Amounts due from the Company and its subsidiaries 337,200 2,321,846 Amounts due from related parties 91,244 56,674 Total current assets 2,183,521 3,451,597 Long-term investments — 35,000 Long-term financing receivables, net 178,627 18,882 Property, equipment and software, net 4,506 4,819 Intangible assets, net 7,163 5,382 Goodwill 25,680 25,680 Deferred tax assets — 36,840 Total non-current assets 215,976 126,603 Total assets 2,399,497 3,578,200 LIABILITIES Short-term borrowings — 220,000 Short-term funding debts 1,220,884 679,957 Accrued interest payable 7,174 15,021 Accounts payable 42,985 37,691 Amounts due to related parties 344,028 80,713 Tax payable 21,327 51,633 Financial guarantee liabilities — 15,537 Accrued expenses and other liabilities 81,180 123,624 Amounts due to the Company and its subsidiaries 239,812 2,261,088 Total current liabilities 1,957,390 3,485,264 Long-term funding debts 469,733 21,498 Amounts due to related parties 11,120 — Total non-current liabilities 480,853 21,498 Total liabilities 2,438,243 3,506,762 For the year ended December 31, 2016 2017 2018 Total net revenues 54,874 661,417 1,080,451 Net (loss)/income (200,494) (31,343) 62,190 For the year ended December 31, 2016 2017 2018 Net cash (used in)/provided by operating activities (123,066) 83,080 86,135 Net cash (used in)/provided by investing activities (108,178) (1,444,358) 725,862 Net cash provided by/(used in) financing activities 256,700 1,498,175 (736,240) Net increase in cash, cash equivalents and restricted time deposits 25,456 136,897 75,757 Cash and cash equivalents at beginning of the year 1,836 27,292 159,189 Restricted time deposits at beginning of the year — — 5,000 Cash, cash equivalents and restricted time deposits at end of the year 27,292 164,189 239,946 Including: Cash and cash equivalents at end of the year 27,292 159,189 232,913 Restricted time deposits at end of the year — 5,000 7,033 In accordance with the contractual arrangements related to post reorganization, the relevant PRC subsidiaries have the power to direct activities of the Group’s VIEs and VIEs’ subsidiaries,and can have assets transferred out of the Group’s VIEs and VIEs’ subsidiaries. There are no assets of the VIEs and VIEs’ subsidiaries that are collateral for the VIEs obligations and can only be used to settle the VIEs’ obligations except for the consolidated assets‑backed securitized debts arrangement and trust arrangements (Note 2(j)). Relevant PRC laws and regulations restrict the VIE from transferring a portion of its net assets, equivalent to the balance of its paid‑in capital, capital reserve and statutory reserves, to the Company in the form of loans and advances or cash dividends. As the VIEs and VIEs’ subsidiaries are incorporated as limited liability companies under the PRC Company Law, the creditors do not have recourse to the general credit of the Company for the liabilities of the VIEs and the VIEs’ subsidiaries. Currently there is no contractual arrangement that could require the relevant PRC subsidiaries or the Group to provide additional financial support to the Group’s VIEs and VIEs’ subsidiaries. As the Group is conducting certain businesses in the PRC through the VIEs and VIEs’ subsidiaries, the Group may provide additional financial support on a discretionary basis in the future, which could expose the Group to a loss. Recognized revenue‑producing assets held by the VIEs include computers and servers, customer database relating to point‑of‑sale installment loan, which was acquired through acquisition. Unrecognized revenue‑producing assets held by VIEs includes the internet content provision license, domain names of pintec.com, idumiao.com, ixuanji.com and hongdianfund.com, patents, copyrights, as well as trademarks including the Chinese name for Dumiao, Hongdian, Myfin and Pintec. There is no VIE where the Company or any subsidiary has a variable interest but is not the primary beneficiary. Initial public offering (“IPO”) and followed offering In October 2018, the Company completed its initial public offering (“IPO”) on the NASDAQ Global Market in the United States of America. In the offering, 3,725,000 American depositary shares (“ADSs”), representing 26,075,000 Class A Ordinary Shares, were issued and sold to the public at a price of US$11.88 per ADS. The net proceeds to the Company from the IPO, after deducting commissions and offering expenses, were approximately US$40.7 million (RMB280.1 million). In November 2018, the Company completed its followed offering of 483,070 ADS, representing 3,381,490 Class A Ordinary Shares, were issued and sold to the public at a price of US$11.88 per ADS. The net proceeds to the Company from the IPO, after deducting commissions and offering expenses, were approximately US$5.3 million (RMB36.4million). In accordance to the written resolutions passed by the Board of Directors of the Company and its shareholders in July 2018, immediately prior to the completion of the IPO, the Company completed the redesignation on a one-for-one basis of: (i) 19,676,695 shares of Pre-IPO Class A Ordinary Shares, into Class A Ordinary Shares; and 51,782,495 shares of Pre-IPO Class A Ordinary Shares into Class B Ordinary Shares; (ii) 2,500,000 shares of Pre-IPO Series Seed-A-1 Preferred Shares into Class A Ordinary Shares, 17,678,568 shares of Pre-IPO Series Seed-A-2 Preferred Shares, 37,257,705 of Pre-IPO Series Seed-B Preferred Shares, 42,747,918 shares of Pre-IPO Series Seed-C Preferred Shares, 25,650,679 shares of Pre-IPO Series A-1 Preferred Shares, 38,829,699 shares of Pre-IPO Series A-2 Preferred Shares into Class A Ordinary Shares. (e) Liquidity Prior to 2017, the Group incurred the net loss of RMB200,494, RMB84,860 for the years ended December 31, 2016 and 2017. It generated net income of RMB 2,171 for the year ended December 31, 2018. The Group had an invested deficit of RMB62,195 as of December 31, 2017 and has accumulated deficit of RMB872,698 as of December 31, 2018. The net cash used in operating activities was RMB123,066 for the year ended December 31, 2016, while the net cash provided by operating activities were RMB 197,438 and RMB108,309 for the years ended December 31, 2017 and 2018, respectively. The Group’s ability to fund its operations is based on its ability to generate cash, its ability to attract investors and its ability to borrow funds on reasonable economic terms. Prior to the Reorganization, the Group’s business had relied principally on Jimu Parent’s financing from its investors to fund the Group’s operations and business development. Post‑Reorganization, the Group’s ability to conti |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2018 | |
Summary of significant accounting policies | |
Summary of significant accounting policies | 2. Summary of significant accounting policies (a) Basis of presentation The consolidated financial statements of the Group have been prepared in accordance with U.S. GAAP. Significant accounting policies followed by the Group in the preparation of the accompanying consolidated financial statements are summarized below. (b) Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIEs for which the Company is the ultimate primary beneficiary, and the subsidiaries of the VIEs. 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. VIEs are entities in which the Company, or its subsidiary, through contractual arrangements, exercises effective control over the activities that most impact the entities’ economic performance, bears the risks of, and enjoys the rewards normally associated with ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entities. All significant intercompany transactions and balances between the Company, its wholly owned subsidiaries and the VIEs have been eliminated upon consolidation. (c) Use of estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires the Group to make estimates and assumptions that affect the reported amounts of assets and liabilities and related disclosure of contingent assets and liabilities at the balance sheet date, and the reported revenues and expense during the reporting period and disclosed in the consolidated financial statements and accompanying notes. Significant accounting estimates reflected in the Group's consolidated financial statements include revenue recognition, allocations of revenue to multiple elements, provision for doubtful accounts and credit losses, valuation and recognition of share-based compensation expenses, cost and expenses from Jimu Parent to Pintec, valuation allowance of deferred tax assets, fair value of assets and liabilities acquired in business combinations, fair value of convertible loans and impairment of goodwill, determination of the fair value of Pre-IPO Preferred Shares and Pre-IPO Class A Ordinary Shares, and the fair value of financial guarantee liabilities. (d) Foreign currency translation The Group’s reporting currency is Renminbi (“RMB”). The functional currency of the Company and the Group’s subsidiary incorporated in Hong Kong and BVI is United States dollars (“US$”). The Group’s PRC subsidiaries, VIEs and VIEs’ subsidiaries determined their functional currency to be RMB. The determination of the respective functional currency is based on the criteria set out by ASC 830, Foreign Currency Matters. Transactions denominated in foreign currencies other than functional currency are translated into the functional currency at the exchange rates prevailing on the transaction dates. Assets and liabilities denominated in foreign currencies other than functional currency are remeasured into the functional currency at the exchange rates prevailing at the balance sheet date. Exchange gains or losses arising from foreign currency transactions are recorded in the consolidated statements of operations and comprehensive (loss)/income. The financial statements of the Group’s non PRC entities are translated from their respective functional currency into RMB. Assets and liabilities denominated in foreign currencies are translated into RMB using the applicable exchange rates at the balance sheet date. Equity accounts other than earnings generated in current period are translated into RMB at the appropriate historical rates. Revenues, expenses, gains and losses are translated into RMB using the average exchange rates for the relevant period. The resulting foreign currency translation adjustments are recorded as a component of accumulated other comprehensive income/loss in the consolidated statement of changes in invested deficit and a component of other comprehensive income in the consolidated statement of operations and comprehensive (loss)/income. (e) Convenience translation Translations of the consolidated balance sheet, the consolidated statement of operations and comprehensive loss and the consolidated statement of cash flows from RMB into US$ as of and for the year ended December 31, 2018 are solely for the convenience of the readers and were calculated at the rate of US$1.00=RMB6.8755, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 31, 2018. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2018, or at any other rate. (f) Cash and cash equivalents Cash and cash equivalents consist of cash on hand, time deposits, and funds held in deposit accounts with banks, which are highly liquid and have original maturities of three months or less and are unrestricted as to withdrawal or use. All cash and cash equivalents are denominated in RMB and held in PRC. The Group adopted ASU 2016‑18, statement of cash flows (Topic 230): Restricted Cash, using a retrospective method to each period presented. The changes in restricted time deposits in the consolidated cash flow were nil and RMB5 million for the years ended December 31, 2016 and 2017 respectively, which were no longer presented within investing activities and were retrospectively included in the changes of cash, cash equivalents and restricted time deposits as required. (g) Restricted time deposits Cash and time deposits that are restricted as to withdrawal for use or pledged as security is reported separately as restricted time deposits. Cash and term deposits that are restricted as to withdrawal or use for other than current operations is classified as non‑current. The restricted time deposits primarily represent (i) Time deposits securing the Group’s short-term borrowings from financial institutions. The short-term borrowings are designated to support the Group’s general operation and could not be used to fund the Group’s financing receivables. (ii) Cash received via consolidated trusts that has not yet been distributed. (h) Short‑term investments The Group invested in certain financial instruments with variable interest rates indexed to the performance of underlying assets or principal not guaranteed with certain financial institutions. These financial instruments had maturity dates within one year and classified as short‑term investments. The Company elected the fair value method at the date of initial recognition and carried these investments subsequently at fair value. Fair value is estimated based on quoted prices of similar financial products provided by the banks at the end of each period. Changes in the fair value are reflected in the consolidated statements of comprehensive (loss)/income as “other income/(loss), net”. (i) Fair value measurement 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 time deposits, short‑term investments, accounts receivable, 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 third-party commercial banks or consumer finance companies, the Group initially accounts for financial guarantee provided to the commercial banks or consumer finance companies at fair value taking into account the expected default rates (Note 2R). The Group uses significant unobservable inputs to measure the fair value of these guarantee liabilities (Level 3). 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 carrying value of guarantee liability approximates fair value as the guarantee liability is measured at the higher of ASC 460 and ASC 450 component and ASC 450 component reflects the expected payout. Fair value measurements on a non-recurring basis The Group measures certain financial assets, including the long-term investments at fair value on a non-recurring basis only if an impairment charge were to be recognized. 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. (j) Financing receivables, net Nature of the financing receivables and the related funding sources The Group generates financing receivables by providing the following: (1) point‑of‑sale installment services to users of third‑party online travel websites and other e‑commerce websites (the “Business Partners”), where the Group’s main funding sources include (a) the borrowings obtained via the peer‑to‑peer matching services provided by Lerong Duoyuan Information Technology Co., Ltd, which matches the Group with third party individual investors, or the borrowings obtained from other financial partners, and alternatively (b) proceeds from third‑party investors of asset‑backed securitized debt issued by securitization vehicles consolidated by the Group. (c) the borrowing obtained via an individual lender. (d) the borrowing obtained via a shareholder. (2) personal and business installment loans to borrowers which are financed via securitization vehicles in the form of trust arrangements, where the Group’s funding source include the proceeds from third‑party investors of tranches of trust units issued by trust arrangements consolidated by the Group. The Group has the intent and the ability to hold such financing receivables for the foreseeable future or until maturity or payoff. Financing receivables are measured at amortized cost, net of any charge‑offs, and the allowance that reflects the Group’s best estimate of the amounts that will not be collected. The receivable portfolio consists of the financing receivables with the term periods ranging from 30 days to 24 months. (1)(a) On‑balance sheet: Point‑of‑sale financing receivables funded by individual investors via peer to peer matching services provided by Lerong Duoyuan Information Technology Co., Ltd (“Jimu Box”) or by other financial partners. The financing installment receivables due from users of the Business Partners are resulted from the point‑of‑sale installment services provided by the Group to these users (note 2(r)(ii)) who made purchases from the Business Partners. When a user, who qualifies for point‑of‑sale installment services makes an online purchase using a point‑of‑sale installment loan, the Group pays the sales price to the business partner and collects the sales price from the Business Partner’s user with interest and fees. Upon paying the sales price to the business partners, the Group promptly obtains financing for the sales price paid by factoring the receivable due from the Business Partners’ user. Pursuant to ASC 860‑10‑15‑4, the factoring arrangement of the receivable does not satisfy the criteria of financial asset de‑recognition because the Group has a commitment to make monthly repayments. Accordingly, the Group does not derecognize the receivable from users upon factoring and accounts for the transaction as secured borrowings. Accordingly, the financing receivables due from the users of the Business Partners and the loan payables to the third party individual investors matched with the Group via Jimu Box and the loan payables to other financial partners are recorded on the Group’s consolidated balance sheet as financing receivables and funding debts, respectively. (1)(b) On‑balance sheet: Point‑of‑sale financing receivables funded by investors of asset‑backed securitized debts For certain financing receivables arising from the point‑of‑sale installment services to users of the Business Partners, the Group obtains financing from third‑party investors by issuing asset‑backed securitized debts via certain securitization vehicles in the forms of asset backed security arrangements (the “ABSs”) established by the Group during the year ended December 31, 2017 and 2018. The Group periodically securitizes its financing receivables due from users of the Business Partners through transferring those assets to the ABSs vehicles which then issues debt securities to third‑party investors. The ABSs vehicles are considered as variable interest entities under ASC 810. As the Group has power to direct the activities that most significantly impact economic performance of the ABSs vehicles by providing the loan servicing and default loan collection services, and the Group has the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE as the Group purchased all subordinated tranche securities, and the Group is obligated to purchase any loans that are delinquent for more than certain days, accordingly, the Group is considered as the primary beneficiary of the ABSs and has consolidated the ABSs’ assets, liabilities, results of operations, and cash flows in the Group’s consolidated financial statements in accordance with ASC 810. Accordingly, the financing receivables due from the users of the Business Partners and the loan payables to the third party investors of asset‑backed securitized debts are recorded on the Group’s consolidated balance sheet as financing receivables and funding debts, respectively. As of December 31, 2018, the financing receivables due from the users of the Business Partners and the loan payables to the third party investors of asset-backed securitized debts were nil. (1)(c) On-balance sheet: Point-of-sale financing receivables funded by an individual lender Shenzhen Minheng, as one of subsidiaries of the Group, entered into a loan agreement with an individual person (‘‘Lender’’) in January 2018 and a supplementary loan agreement in March 2018. Pursuant to which, during the year ended December 31, 2018, the Group borrowed unsecured RMB denominated loans from this Lender, amounted to RMB563,979 aggregately, with an interest rate of approximately 10.3% for the term of up to one year. The loans were used for early repayment of loan payables to third party individual investors matched with the Group via Jimu Box. As a result of the repayments of RMB563,979 made to the Lender, the remaining outstanding balance as of December 31, 2018 was nil. (1)(d) On-balance sheet: Point-of-sale financing receivables funded by a shareholder On July 14, 2018, Shenzhen Minheng, as one of subsidiaries of the Group, entered into a separate loan agreement with Xijin (Shanghai) Venture Capital Management Co., Ltd (‘‘Xijin’’)., which is one shareholders of the Group. The loan has a principal amount of RMB70,000 (US$10,181), an annual interest rate of 10.3%, and a term of one year. Shenzhen Minheng then entered into a second loan with Xijin on the same terms for additional RMB120,000. The Group planned to use the proceeds of these loans, together with cash on hand, to repay the balance of the loan which the Group borrowed from the individual lender mentioned in (1)(c). As of July 27, 2018, the Group used the proceeds to repay the all of remaining outstanding loan balance to the individual lender, with an aggregate amount of RMB423,000. In August 2018, Shenzhen Minheng and Xijin entered into a supplementary agreement (“1st supplementary agreement”) which changed the maturity date of the loans to December 31, 2018, and changed the interest rate of the loans, retroactive to the first date of each loan, to 0.6%. As of December 31, 2018, the Group repaid the principal amount of RMB68,313 to Xijin, while, the remaining outstanding balance as of December 31, 2018 was RMB121,687. In addition, Shenzhen Minheng and Xijin entered into another supplementary agreement (“2nd supplementary agreement”) which changed only the maturity date for both loans from December 31, 2018 to May 15, 2019. (2) On‑balance sheet: Personal and business financing receivables funded by third party investors of trusts arrangements For certain personal and business installments loans which are not funded via the peer‑to‑peer matching services provided by Jimu Box which matches the borrowers with third party individual, investors, they were alternatively funded by investors of certain trust arrangements (the “Trusts”) established during the year ended December 31, 2017 and 2018. The Group established business relationships with trusts which were administered by third‑party trust companies. The Trusts were set up to invest in loans personal and business installments loans recommended by the Group. The Trusts are considered as variable interest entities under ASC 810. As the Group has power to direct the activities that most significantly impact economic performance of the Trusts by providing the loan servicing and default loan collection services, and the Group has the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE as the Group purchased all subordinated tranche of trust units, and the Group is obligated to repurchase any loans that are delinquent for more than certain days, accordingly, the Group is considered as the primary beneficiary of the Trusts and has consolidated the Trusts’ assets, liabilities, results of operations, and cash flows in the Group’s consolidated financial statements in accordance with ASC 810. Accordingly, the financing receivables due from the borrowers of the personal and business installment loans and the loan payables to the third party investors of the trust units are measured at amortized cost and recorded on the Group’s consolidated balance sheet as financing receivables and funding debts, respectively. Accrued interest receivable Accrued interest income on financing receivables is calculated based on the contractual interest rate of the loan and recorded as installment service fees 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 as of such date. The Group does not resume accrual of interest after a loan has been placed on non‑accrual basis. The Company charges off the accrued interest receivable against the related allowance when management determines that full repayment of a loan is not probable. Generally, charge-off occurs after the 90th day of delinquency. All accrued but unpaid interest as of such date is charged off against the allowance for credit loss. The primary factor in making such determination is the assessment of potential recoverable amounts from the delinquent debtor. Nonaccrual financing receivables and charged‑off financing receivables The Group considers a th day of delinquency. Installment service fees for nonaccrual financing receivables is recognized upon the collection of cash. (k) Accounts receivable, net Accounts receivables are stated at the historical carrying amount net of the allowance for doubtful accounts. The Group reviews the accounts receivable on a periodic basis and makes allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual accounts receivable balances, the Group considers several factors, including the age of the balance, the customer’s payment history, and current credit worthiness, and current economic trends. Accounts receivable balances are charged off after 90 th day of delinquency. (l) Long‑term investments Long‑term investments represent the Group’s investments in privately held companies. In accordance with ASC 323 “Investment‑Equity Method and Joint Ventures”, the Group applies the equity method of accounting to equity investments, in common stock or in‑substance common stock, 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 its investment at cost. The difference between the cost of the equity investment and the amount of the underlying equity in the net assets of the equity investee is recognized as equity method goodwill or as an intangible asset as appropriate, which is included in the equity method investment on the consolidated balance sheets. The Group subsequently adjusts the carrying amount of the investment to recognize the Group’s proportionate share of each equity investee’s net income or loss into consolidated statements of comprehensive loss after the date of acquisition. For long‑term investments in equity securities that are not accounted for using equity method of accounting, and that have no readily determinable fair value, the cost method of accounting is used. The Group assesses its long‑term investments accounted for under the cost method and equity method for other‑than‑temporary impairment by considering factors including, but not limited to, current economic and market conditions, operating performance of the companies, including current earnings trends and undiscounted cash flows, and other company‑specific information, such as recent financing rounds. The fair value determination, particularly for investments in privately‑held companies whose revenue model is still evolving, requires significant judgment to determine appropriate estimates and assumptions. Changes in these estimates and assumptions could affect the calculation of the fair value of the investments and the determination of whether any identified impairment is other‑than‑temporary. If any impairment is considered other‑than‑temporary, the Group will write down the asset to its fair value and take the corresponding charge to the consolidated statements of comprehensive loss. (m) Property, equipment and software, net Property, equipment and software are recorded at cost, less accumulated depreciation and impairment. Depreciation of property and equipment and amortization of software is calculated on a straight‑line basis, after consideration of expected useful lives and estimated residual values. The Group has not recorded any impairments of property, equipment or software for the period presented. The estimated useful lives of these assets are generally as follows: Estimated Category useful life Office furniture and equipment 3 - 5 years Computer and electronic equipment 3 - 5 years Software 5 years Repairs and maintenance costs are charged to expenses as incurred, whereas the costs of renewals and betterment that extend the useful lives of property, equipment and software are capitalized as additions to the related assets. Gains and losses from the disposal of property, equipment and software are the differences between the net sales proceeds and the carrying amounts of the relevant assets and are recognized in the consolidated statements of operations and comprehensive loss. (n) Intangible assets, net The Group performs valuation of the intangible assets arising from business combination to determine the relative fair value to be assigned to each asset acquired. The acquired intangible assets are recognized and measured at fair value and are amortized using the straight‑line approach over the estimated economic useful lives of the assets. (o) Goodwill Goodwill represents the excess of the purchase price over fair value of the identifiable assets and liabilities acquired in a business combination. Goodwill is not depreciated or amortized but is tested for impairment on an annual basis as of December 31 and in between annual tests when an event occurs or circumstances change that could indicate that the asset might be impaired. In accordance with the FASB guidance on ''Testing of Goodwill for Impairment,'' the Company first has the option to assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company decides, as a result of its qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is mandatory. Otherwise, no further testing is required. The quantitative impairment test consists of a comparison of the fair value of each reporting unit with its carrying amount, including goodwill. A goodwill impairment charge will be recorded for the amount by which a reporting unit’s carrying value exceeds its fair value, but not to exceed the carrying amount of goodwill. Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units and determining the fair value of each reporting unit. The judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit. No impairment of goodwill was recognized for the year ended December 31, 2017 and 2018. (p) Impairment of long‑lived assets The Group evaluates its long‑lived assets with finite lives 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 amount of an asset may not be fully recoverable. When these events occur, the Group evaluates the impairment by comparing carrying amount 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 amount of the assets, the Group recognizes an impairment loss based on the excess of the carrying amount of the long‑lived assets over their fair value. No impairment of long‑lived assets was recognized for the years ended December 31, 2017 and 2018. (q) Funding Debts The proceeds received from individual investors, other financial partners, investors of the asset‑backed securitized debts or the consolidated trusts and a shareholder to fund the Group’s on‑balance sheet financing receivables, are recorded as funding debts on the consolidated balance sheets. Accrued interest payable is calculated based on the contractual interest rates of the funding debts. ( r) Financial Guarantee liabilities For the off-balance sheet loans funded by a financial partner, the Group is obligated to compensate the financial partner for the principal and interest repayment of the defaulted loans in the event of borrowers’ default. If a borrower is one day delinquent on an installment of principal and interest of a loan, the Group will repurchase the delinquent installment of principal and interest from the financial partner. Therefore, the Group effectively provides guarantees to the financial partner that include credit risk. The Group is required to record the repurchase obligations in accordance with ASC 460. Accordingly, the liabilities are measured at their fair value at inception. Therefore, the liability recorded based on ASC 460 is determined on a loan by loan basis. As stated in ASC 460-10-35-1, the guarantee liability should generally be reduced by recording a credit to net income as the guarantor is released from the underlying guaranteed risk i.e., as the loan is repaid by the borrower or when the investor is compensated in the event of a default. As the risk is reduced as each payment is made, a systematic and rational amortization method based on when the payments are made may be appropriate. As the risk of the guarantee liability is reduced, it is recognized into the income statement by a systematic and rational amortization method, e.g. over the term of the loan, within the “gain from the financial guarantee liabilities” line item of the income statement. For the years ended December 31, 2016, 2017 and 2018, the amount of gains recorded were nil, nil and RMB21.4 million (US$3.1 million), respectively. Subsequent to initial recognition, the repurchase obligations are measured at the greater of the amount determined based on ASC 460 and the amount determined based on ASC 450. In accordance with ASC 450, a contingent liability determined based on historical default rates, representing the obligation to make future payouts, measured using the guidance in ASC 450 Contingencies. The ASC 450 contingent component is determined on a loan by loan basis, but considers the actual and expected performance of the pool when estimating the contingent liability. If there is no difference between the ASC 460 component and ASC 450 component, no gain or loss is recorded. (s) Revenue recognition The Group is principally engaged in providing lending solutions through its online technology platform. The Group earns its revenues by providing the following: (i) A lending solution which assists borrowers obtain loans from third party investors and certain financial partners. The Group facilitates the loan origination process and provides on‑going loan servicing but does not loan money. For these services, the Group earns technical service fees. (ii) A lending solution for borrowers who want to finance their on‑line purchases from third parties (“Business Partners”) or who have personal or business installment loan requests. The Group provides financing for these borrowers and earns installment service fees (comprising interest). (iii) A wealth management solution and insurance solution for asset management and insurance companies respectively to facilitate the sale of their products. The Group earns a wealth management fee and insurance service fee (a commission on financial products sold by these asset management and insurance companies to their customers). The Group is not a party to the financial products sold. (i) Lending solution to assist borrowers to obtain loans Loan origination assistance and on‑going loan servicing addresses credit needs for individual borrowers, |
Concentration and risks
Concentration and risks | 12 Months Ended |
Dec. 31, 2018 | |
Concentration and risks | |
Concentration and risks | 3. Concentration and risks Concentration of Business Partners The Group generates the majority of revenues through a limited number of Business Partners. For the years ended December 31, 2016, 2017 and 2018, the Group generated the 70.2%, 65.1% and 39.5% of its total revenues through cooperation with five Business Partners, among which 55.8%, 46.2% and 18.4% of total revenues were generated through cooperation with Qunar, which is a large mobile and online travel platform in China. The partnerships with these Business Partners are not on an exclusive basis, and the contract durations are short. If these Business Partners change their policies, terminate their partnership or do not renew their cooperation agreements with the Group, the business and result of operations of the Group may be materially and adversely affected. Concentration of Funding Partners The Group have historically relied on Jimu Group for most of that funding. Jimu Box, Jimu Group's online peer-to-peer lending platform, which was considered as one of the Group's related party, was the funding source for 99% of the outstanding loans facilitated through the Group's platform as of December 31, 2016, 81% of the outstanding loans as of December 31, 2017, and 62% of the outstanding loans as of December 31, 2018. If Jimu Group is unable to meet the Group's demand for funding, and without further diversification of the Group's financial partners, the Group may be unable to obtain the funding that the Group need. If adequate funds are not available to meet the demand for loans, the Group may not be able to attract new business partners or further develop our relationship with existing business partners, which may cause the Group to lose market share or experience slower-than-expected growth and harm the business, financial condition and results of operations. Credit risks The Group’s credit risk primarily arises from financing receivables derived from the point-of-sale installment loans and personal installment loans. 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 time deposits, accounts receivable, accrued interest receivable, prepaid expenses and other current assets, financial guarantee, and amounts due from related parties. The Group holds its cash and cash equivalents, restricted time deposits at reputable financial institutions in the PRC and at international financial institutions with high ratings from internationally recognized rating agencies. Financing receivables, accrued interest receivable, accounts receivable are typically unsecured and are derived from revenues earned from customers in the PRC. Receivables due from customers are typically unsecured in the PRC and the credit risk with respect to which is mitigated by credit evaluations the Group performs on its customers and its ongoing monitoring process of outstanding balances. The Group provides a financial guarantee to the financial partner who fund the loans. As of December 31, 2018, the maximum potential future payment that the Group could be required to make would be RMB606.3 million (US$88.2 million). The unsecured loan was issued to a third party with the outstanding loan principal and related interests of RMB138,089 (US$20,084) as of December 31, 2018. The maximum exposure of such loan receivable to credit risk is the asset's carrying amounts as of the balance sheet dates. This unsecured loan was fully repaid as of May 31, 2019 (Note 25), which indicates the credit risk was reduced. The amounts due from related parties of RMB475,426 as of December 31, 2018. The maximum exposure of such amounts due from related parties to credit risk is the asset’s carrying amounts as of balance sheet dates. The balance of the amounts due from Jimu Group denominated in RMB with the amount of RMB294.9 million (US$42.9 million), which was attributable to the cash advances made to Jimu Group outside of the ordinary course of business, as of December 31, 2018 was settled by the purchase price of RMB230 million related to the acquisition of Ganzhou Jimu Micro Finance Co., Ltd in March, 2019 and prepayment of guarantee deposit under the New Arrangement as of May, 2019. In addition, the balance of the amounts due from Jimu Group denominated in U.S. dollars with the amount of RMB146.6 million (US$21.4 million) as of December 31, 2018 has the maximum exposure of credit risk is the asset’s carrying amounts as of balance sheet dates. The balance of due from Jimu Group would be offset against consulting service payable and asset management fees collected upon Jimu Group’s failure to fully and timely repay the principal and interest due under the loan within 60 days after maturity. (Note 25) Foreign currency exchange rate risk The Group’s operating transactions are mainly denominated in RMB. RMB is not freely convertible into foreign currencies. The value of the RMB is subject to changes by the central government policies and to international economic and political developments. In the PRC, certain foreign exchange transactions are required by law to be transacted only through authorized financial institutions at exchange rates set by the People’s Bank of China (the “PBOC”). Remittances in currencies other than RMB by the Group in China must be processed through PBOC or other China foreign exchange regulatory bodies which require certain supporting documents in order to effect the remittances. Business risk If the cooperation between Shenzhen Minheng and Jimu Box (Jimu Group’s online peer‑to‑peer lending platform) is terminated, the Group may be adversely affected. In July 2017, the Department of Market Supervision of the Ministry of Commerce issued a Notice on the Work of Controlling and Preventing Risks of Commercial Factoring. The notice requires the local departments of the Ministry of Commerce to focus on certain abnormal operating activities, including situations where a commercial factoring company seeks financing through online lending intermediaries on a relatively large scale, and especially where the online lending intermediary is operated by a related party of the commercial factoring company. Although the notice does not explicitly prohibit financing through online lending intermediaries and the Group has not received any notice or penalties from the relevant governmental authorities, the Group cannot be certain that Shenzhen Minheng will not be penalized or required to terminate its cooperation with Jimu Box immediately, which would be materially and adversely affected the business. |
Acquisition of Shenzhen Minheng
Acquisition of Shenzhen Minheng | 12 Months Ended |
Dec. 31, 2018 | |
Acquisition of Shenzhen Minheng | |
Acquisition of Shenzhen Minheng | 4. Acquisition of Shenzhen Minheng On April 22, 2015, the Jimu Parent acquired in 30% equity interest of Shenzhen Minheng, which is an entity established in Mainland China that undertakes factoring business, for a cash consideration of RMB0.001. The investment in the equity of Shenzhen Minheng was accounted for as equity method investment based on the equity interest of 30% attributable to the acquired ordinary shares of Shenzhen Minheng in accordance with ASC 323. On June 30, 2016, the Jimu Parent acquired the remaining 70% equity interest of Shenzhen Minheng for a cash consideration of RMB1,000. The main purpose of the acquisition is to expand the Group’s business scope by providing point‑of‑sale installment loans to customers of the Company’s Business Partners and to obtain financing by factoring the financing receivables to third party investors through a Financial Partner. The step‑acquisition has been accounted for as a business combination and the results of operations of Shenzhen Minheng from June 30, 2016 have been included in the Group’s consolidated financial statements as Shenzhen Minheng is part of the predecessor operation of Pintec Business. The Group engaged an independent valuation firm to assist management in valuing the equity interest acquired by the Group. The income approach was adopted to determine the fair value of equity interest estimated acquired, which was the ascertainable fair value as of June 30, 2016. The Group recorded a gain of RMB394 which was recognized as a result of the revaluation of the previously held equity interest upon obtaining control of Shenzhen Minheng. The gain is included in Other income in the consolidated statement of operations and comprehensive loss for the year ended December 31, 2016. The fair value measurement of the previously held equity interest is based on certain significant inputs not observable in the market, and thus represent Level 3 measurements. The major assumptions used in valuation consists of discount rate of 23%; and a terminal growth rate of 3%. Goodwill arising from this transaction was attributable to the expected synergies from combining Shenzhen Minheng’s operation of point‑of‑sales lending solution with the Group, which is complementary to the Group. The identifiable intangible assets acquired upon acquisition was the customer database amounting to RMB9,697, which has an estimated useful life of approximately 5.5 years. The fair value of the intangible assets acquired was determined by adopting the replacement cost approach. The Group made estimates and judgments in determining the fair value of acquired assets and liabilities, based on management’s experiences with similar assets and liabilities with the assistance from an independent valuation firm. The allocation of the purchase price is as follows: Amortization Amounts Years RMB Cash 310 Financing receivables, net of provision of RMB10,450 268,365 Other current assets 18,648 Amortizable intangible asset Customer database 9,697 5.5 Goodwill 25,680 Funding debts (310,428) Other current liabilities (10,878) Deferred tax assets 2,424 Deferred tax liabilities (2,424) Total 1,394 Total purchase price comprised of —Cash consideration paid by parent company 1,000 —Fair value of previously held equity interests 394 Total 1,394 The following unaudited pro forma information summarizes the results of operations of the Group for the years ended December 31, 2016, as if the acquisition of Shenzhen Minheng had been completed on January 1, 2016. These pro forma results have been prepared for comparative purposes only and do not purport to be indicative of what operating results would have been had the acquisition actually taken place on the date indicated and may not be indicative of future operating results. The pro forma adjustments are based upon available information and certain assumptions that management believes are reasonable. For the year ended December 31, 2016 2016 RMB US$ Pro forma total revenues 59,916 9,055 Pro forma net loss 233,212 35,244 As of December 31, 2018, the Group performed a qualitative analysis on the goodwill arising from the acquisition taking into consideration the events and circumstances listed in ASC350 Intangibles—Goodwill and Other, including consideration of macroeconomic factors, industry and market conditions, and overall financial performance, in addition to other entity‑specific factors. Based on the analysis, the management concluded that it is not more likely than not that a goodwill impairment exists as of December 31, 2018. Nevertheless, the Group voluntarily performed a quantitative assessment of the reporting unit to which goodwill belonged as of December 31, 2018 as a supplement to the qualitative analysis. Based on the analysis result, management concluded that quantitative analysis also did not indicate that there was an impairment of goodwill as of December 31, 2018. |
Financing receivables, net
Financing receivables, net | 12 Months Ended |
Dec. 31, 2018 | |
Financing receivables, net | |
Financing receivables, net | 5. Financing receivables, net The financing receivables, net, as of December 31, 2017 and 2018, consists of the following: As of December 31, 2017 2018 RMB RMB Short-term: Short-term financing receivables 1,569,080 762,854 Allowance for credit losses (62,901) (20,737) Short-term financing receivables, net 1,506,179 742,117 Long-term: Long-term financing receivables 185,136 19,297 Allowance for credit losses (6,509) (415) Long-term financing receivables, net 178,627 18,882 These balances represent short‑term and long‑term financing receivables with an original term generally up to two years and do not have collateral. The following table summarizes the balances of financing receivables by due date as of December 31, 2017 and 2018, respectively. As of December 31, 2017 2018 RMB RMB Due in months: 0 - 12 1,569,080 762,854 13 - 24 185,136 19,297 Total financing receivables 1,754,216 782,151 The movement of the allowance for credit losses for the years ended December 31, 2017 and 2018 consist of the following: For the year ended December 31, 2017 2018 RMB RMB Balance at beginning of the year 11,884 69,410 Additions 113,162 121,341 Reversal — (55,976) Charge-offs (55,636) (113,623) Balance at end of the year 69,410 21,152 Aging analysis of past due financing receivables as of December 31, 2017 and 2018 are as below: 91 Days or 1 - 30 Days 31 - 60 Days 61 - 90 Days Greater Total Financing receivables Past Due Past Due Past Due Past Due Past Due Current Total As of December 31, 2017 34,102 11,346 9,372 — 54,820 1,699,396 1,754,216 As of December 31, 2018 11,123 7,635 7,826 — 26,584 755,567 782,151 |
Accrued interest receivable, ne
Accrued interest receivable, net | 12 Months Ended |
Dec. 31, 2018 | |
Accrued interest receivable, net | |
Accrued interest receivable, net | 6. Accrued interest receivable, net Accrued interest receivable, net, as of December 31, 2017 and 2018, consists of the following: As of December 31, 2017 2018 RMB RMB Accrued interest receivable 8,687 13,083 Allowance for doubtful accounts (1,050) (2,031) Accrued interest receivable, net 7,637 11,052 The movements in the allowance for doubtful accounts for the years ended December 31, 2017 and 2018 were as follows: For the year ended December 31, 2017 2018 RMB RMB Balance at beginning of the year 377 1,050 Additions 2,868 5,914 Reversal — (868) Charge-offs (2,195) (4,065) Balance at end of the year 1,050 2,031 |
Accounts receivable, net
Accounts receivable, net | 12 Months Ended |
Dec. 31, 2018 | |
Accounts receivable, net | |
Accounts receivable, net | 7. Accounts receivable, net Accounts receivable, net, as of December 31, 2017 and 2018, consists of the following: As of December 31, 2017 2018 RMB RMB Receivables for technical service fees from borrowers and financial partners 40,587 56,020 Receivables for marketplace service fees from asset management companies 1,236 1,234 Receivables for marketplace service fees from insurance companies and others 161 4,243 Total accounts receivable 41,984 61,497 Allowance for doubtful accounts (5,428) (13,845) Accounts receivable, net 36,556 47,652 The movements in the allowance for doubtful accounts for the years ended December 31, 2017 and 2018 were as follows: For the year ended December 31, 2017 2018 RMB RMB Balance at beginning of the year 490 5,428 Additions 16,480 110,840 Reversal — (2,813) Charge-offs (11,542) (99,610) Balance at end of the year 5,428 13,845 |
Prepayments and other current a
Prepayments and other current assets | 12 Months Ended |
Dec. 31, 2018 | |
Prepayments and other current assets | |
Prepayments and other current assets | 8. Prepayments and other current assets Prepayments and other current assets as of December 31, 2017 and 2018, consist of the following: As of December 31, 2017 2018 RMB RMB Deposits with a Business Partner for point-of-sale installment loans 15,605 — Professional fees capitalized for issuance of new shares upon the initial public offering 13,348 — Tax refund receivables from Tax Bureau* 7,834 — Prepaid input value-added tax 9,309 6,493 Deposits to financial partners and other vendors 8,603 25,206 Prepaid service fees 6,555 19,872 Receivables from third-party online payment platforms 5,802 7,475 Short-term loan to a third party** — 138,089 Financial guarantee assets — 20,610 Others 1,847 11,263 Total 68,903 229,008 * For the year ended December 31, 2017, one of the Group’s subsidiaries Sky City WOFE, prepaid enterprise income tax expense to local PRC tax bureau during the first nine months of 2017. However, Sky City WOFE incurred a tax loss and it was eventually assessed that it not subject to enterprise income tax for the year ended December 31, 2017. Hence, Sky City WOFE is entitled to receive tax refund from the tax bureau upon the completion of its 2017 annual tax filing. ** On July 31, 2018, the Group entered into a loan agreement with an entity, namely Plutux Labs Limited (“Plutux Labs”), which is a digital assets and securities exchange platform in Asia. Pursuant to the loan agreement, it was agreed that the Group provided a loan, with principal amount of US$20 million and an annual interest rate of 10.5% to Plutux Labs, without any requirements to Plutux Labs for collateral or pledge on this loan. The outstanding loan principal is repayable to the Company on the termination date which is defined in the agreement as “(i) one year upon receipt of the loan or (ii) any other date the borrower payoffs the loan to the Company. The term shall extend by written consent from both parties. As of December 31, 2018, the outstanding loan principal and accrued interests were RMB138,089. Subsequent to December 31, 2018, the Group fully collected the outstanding loan principal and interests (Note 25 (a)). *** In February, 2018, Sky City WOFE entered into the loan agreement with one unaffiliated entity to obtain the loans with loan principal amounted to RMB14,000. In the next month, Sky City WOFE fully repaid the loan principals with the interest of RMB 4.6. In September, 2018, Sky City WOFE entered into the loan agreements with three unaffiliated entities, respectively, to obtain the loans, with the aggregated loan principal amounted to RMB500,000. In the same month of 2018, SKY City WOFE fully repaid the abovementioned loan principals to these three unaffiliated entities, with aggregate amount of interests of RMB1,650. |
Property, equipment and softwar
Property, equipment and software, net | 12 Months Ended |
Dec. 31, 2018 | |
Property, equipment and software, net | |
Property, equipment and software, net | 9. Property, equipment and software, net Property, equipment and software, net as of December 31, 2017 and 2018 consist of the following: As of December 31 2017 2018 RMB RMB Computer and electronic equipment 7,737 11,239 Software 3,008 3,705 Office furniture and equipment 1,234 1,106 Total 11,979 16,050 Less: Accumulated depreciation and amortization (5,332) (8,244) Property, equipment and software, net 6,647 7,806 Depreciation and amortization expenses for the years ended December 31, 2017 and 2018 was RMB2,314 and RMB2,912, respectively. |
Long-term investments
Long-term investments | 12 Months Ended |
Dec. 31, 2018 | |
Long-term investments | |
Long-term investments | 10. Long‑term investments Long‑term investments consist of investments in privately held companies. The following table sets forth the changes in the Group’s Long‑term investments: Cost Method Equity Method Total RMB RMB RMB Balance as of December 31, 2016 — — — Investments made 2,000 8,821 10,821 Loss from equity method investments — (2,455) (2,455) Less: Impairment charges (2,000) — (2,000) Less: Foreign currency translation adjustments — 73 73 Balance as of December 31, 2017 — 6,439 6,439 Investments made 35,000 19,259 54,259 Loss from equity method investments — (2,652) (2,652) Less: Foreign currency translation adjustments — (8) (8) Balance as of December 31, 2018 35,000 23,038 58,038 Cost method investment In December 2018, the Group invested in Fullerton Credit (Chongqing) Co., Ltd ("Chongqing Fullerton") by purchasing ordinary shares, with a total cash consideration of RMB35,000. Investment were accounted for under the cost method as the Group had no significant influence over the investee and had no readily determinable fair value. For those investments 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 will be 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 did not disclose the fair value of alternative measure method investments if it is not practicable to estimate the fair value of its alternative measure method investments for which a quoted market price is not available due to both excessive cost as well as lack of available information on fair value of such investments. Specifically, many of the investees are start-up companies in China and operate in emerging industries for which the Group has not been able to estimate their fair values. For those equity investments having observable price changes in orderly transactions for the identical or similar investments of the same issuers, the Group would disclose the fair value of the alternative measure method investments. As of December 31, 2018, the carrying value of equity investments without readily determinable fair value was RMB35,000. As of December 31, 2018, no impairment was recognized on the cost method investment. Equity method investment In October 2017, the Group invested in Pivot Fintech PTE. Ltd (“Pivot”) to purchase ordinary shares, with a total consideration of RMB8,821. The Group applies the equity method of accounting to account for its equity investments, in common stock or in‑substance common stock, over which it has significant influence but does not own a majority equity interest or otherwise control. For the year ended December 31, 2018, the Group recognizes the Group’s proportionate share of the equity investee’s net loss into earnings for the year ended December 31, 2018, with the amount of RMB962. As of December 31, 2017 and 2018, no impairment was recognized on the equity method investment. On April 15, 2018, the Group entered the agreement with United Overseas Bank Limited ("UOB") to establish a joint venture of Avatec.ai (S) Pte. Ltd ("Avatec") in Singapore to develop the lending platform so as to providing credit services and solutions, focusing on data technology based credit assessment, scoring and selection with commercial applications, and supporting consumer and small and medium enterprise lending activities. The Group invested in Avatec to purchase ordinary shares, with a total consideration of RMB19,259 to obtain 40% shareholding interests. The Group applies the equity method of accounting to account for its equity investments, in common stock or in substance common stock, over which it has significant influence but does not own a majority equity interest or otherwise control. For the year ended December 31, 2018, the Group recognized the Group's proportionate share of the equity investee's net loss into earnings after the date of investment, with the amount of RMB1,690. As of December 31, 2018, no impairment was recognized on the equity method investment. |
Loan servicing rights
Loan servicing rights | 12 Months Ended |
Dec. 31, 2018 | |
Loan servicing rights | |
Loan servicing rights | 11. Loan servicing rights For the loans funded by individual investors, the Group is not the legal lender or borrower and only facilitates the loan origination and repayment process. The Group’s obligation related to principal and interest is limited to providing reasonable efforts for collection service. The Group does not provide a guarantee to the investors regarding the recoverability of the principal or collectability of interest; thus, the investors have no recourse to the Group in the event of a default by the borrower. Servicing is comprised of providing credit assessment service to facilitate borrowing from individual investors and post‑lending management services, including collection of principal and interest from borrowers, transferring the repayment amount to lenders, monitoring delinquencies and post‑lending credit assessment. Servicing rights are recorded as either an asset or liability when the benefits of servicing are expected to be more or less than adequate compensation. The Group records servicing assets and liabilities at their estimated fair values, when the off‑balance sheet loans are originated, in “Prepayments and other current assets” and “Accrued expenses and other liabilities,” respectively, on the consolidated balance sheet. Changes in fair value of the servicing assets and liabilities are reported in “Loan origination and servicing cost” in the consolidated statements of operations and comprehensive loss in the period in which the change occurs. The Group utilizes industry standard valuation techniques, such as discounted cash flow models, to arrive at an estimate of fair value with the assistance of an independent valuation firm. Significant assumptions used in valuing the servicing rights are estimates of adequate compensation rates, discount rates, cumulative default rates and cumulative prepayment rates. Changes in certain assumptions may have a significant impact on the fair value of the servicing rights. As of December 31, 2018, the key assumptions include the average period of loan at a range of 6.3 months to 25.3 months, effective prepayment rate at a range of 1.06% to 4.90%, vintage loss rate at a range of 1.00% to 22.17%, discount rate at a range of 9.96% to 29.49%, and cost of servicing. The selection of cumulative default rates and cumulative prepayment rates are based on data derived from historical trends. As of December 31, 2017 and 2018, the servicing assets and liabilities recorded were insignificant. The change in fair value of the servicing assets and liabilities was insignificant for the years ended December 31, 2017 and 2018, respectively. |
Fair value measurement
Fair value measurement | 12 Months Ended |
Dec. 31, 2018 | |
Fair value measurement | |
Fair value measurement | 12. 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, 2017 and 2018: Balance at December 31, 2017 Level 1 Inputs Level 2 Inputs Level 3 Inputs Fair Value RMB RMB RMB RMB Assets Cash and cash equivalents 370,891 — — 370,891 Restricted time deposits — 5,000 — 5,000 Short-term investments — 2,000 — 2,000 Total 370,891 7,000 — 377,891 Liabilities Financial guarantee liabilities — — — — Total — — — — Balance at December 31, 2018 Level 1 Inputs Level 2 Inputs Level 3 Inputs Fair Value RMB RMB RMB RMB Assets Cash and cash equivalents 457,442 — — 457,442 Restricted time deposits — 252,599 — 252,599 Total 457,442 252,599 — 710,041 Liabilities Financial guarantee liabilities — — (15,537) (15,537) Total — — (15,537) (15,537) Restricted time deposits 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). Financial guarantee liabilities For the off-balance sheet loans funded by a certain third-party financial institution, as the Group’s financial guarantee provided to the financial institution does not trade in an active market with readily observable quoted prices, the Group uses significant unobservable inputs to measure the fair value of the guarantee liabilities at inception (Level 3). The Group uses the discounted cash flow model to value these financial guarantee liabilities at inception valuation dates. The Group analyzes the fair value of this liabilities at inception by first defining the cash flows associated with the liabilities and then considers the assumptions used in determining the cash flows from a market participant’s perspective. This discounted cash flow model incorporates assumptions such as the discount rates, and the expected default rates, by taking into account the default probability and expected weighted average loss rate of loan principal and interest, and margin on costs. The expected default rate is determined based on the historical performance of loans with similar tenure and of similar credit worthiness and adjusted by the inputs that other market participants would use. Aside from the expected default rate, the Group has also considered the discount rate and expected margin on costs in determining the fair value of the financial guarantee liabilities. 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, 2018: Unobservable Input Range of Input Discount rates 20.0 % Default probability 1.6%~3.6 % Weighted average loss rates of loan principal 56.9%~62.4 % Weighted average loss rates of loan interest 16.7%~30.4 % Margin on costs 90.0 % The carrying value of the guarantee liability approximates fair value as the guarantee liability is measured at the higher of ASC 460 and ASC 450 component and ASC 450 component reflects the expected payout. Non-recurring The Group measures its intangible assets arising from the acquisition of Shenzhen Minheng under the replacement cost method. The fair value measurements of the intangible assets are based on significant inputs not observable in the market, and thus represent Level 3 measurements. The Group measures investments under the cost method and the equity method at fair value on a non‑recurring basis only if an impairment charge were to be recognized. The Group’s other non‑financial assets, such as property, equipment and software, would be cost measured at fair value only if they were determined to be impaired. The Group measures convertible loans for using the fair value option. The fair value measurements of convertible loans are based on significant inputs not observable in the market, and thus represent Level 3 measurements. |
Intangible assets, net
Intangible assets, net | 12 Months Ended |
Dec. 31, 2018 | |
Intangible assets, net | |
Intangible assets, net | 13. Intangible assets, net Intangible assets, net, as of December 31, 2017 and 2018, consist of the following As of December 31, 2017 2018 RMB RMB Customer database 9,697 9,697 Trademark 162 162 Less: Accumulated amortization (2,647) (4,436) Intangible assets, net 7,212 5,423 Amortization expenses for the years ended December 31, 2017 and 2018 was RMB1,765 and RMB1,789, respectively. As of December 31, 2018, amortization expenses related to the intangible assets for future periods are estimated to be as follows: For the year ended December 31, 2024 and 2019 2020 2021 2022 2023 thereafter RMB RMB RMB RMB RMB RMB Amortization expenses 1,793 1,793 1,793 44 — — |
Funding debts
Funding debts | 12 Months Ended |
Dec. 31, 2018 | |
Funding debts | |
Funding debts | 14. Funding debts The following table summarized the Group’s outstanding funding debts as of December 31, 2017 and 2018, respectively: As of December 31, 2017 2018 RMB RMB Short-term: Loan payables to individual investors via Jimu Box and other financial partners 1,016,113 268,167 Loan payables to investors of consolidated trusts 204,771 290,103 Loan payables to a shareholder — 121,687 Total short-term funding debts 1,220,884 679,957 Long-term: Loan payables to individual investors via financial partners 31,769 21,498 Loan payables to investors of consolidated trusts 194,111 — Loan payables to investors of asset-backed securitized debts 243,853 — Total long-term funding debt 469,733 21,498 The following table summarizes the remaining contractual maturity dates of the Group’s funding debts and associated interest payments. Less than More than 3 1 year 1 - 2 years 2 - 3 years years Total RMB RMB RMB RMB RMB Loan payables to individual investors via financial partners 268,167 — — 21,498 289,665 Loan payables to investors of consolidated trusts 290,103 — — — 290,103 Loan payables to a shareholder 121,687 — — — 121,687 Total funding debts 679,957 — — 21,498 701,455 Interest payments 24,300 2,511 2,511 2,092 31,414 Total interest payments 24,300 2,511 2,511 2,092 31,414 For the years ended December 31, 2017 and 2018, the terms of the most of funding debts borrowed by the Group from individual investors on Jimu Box and investors of certain consolidated trusts ranged from 30 days to 48 months, which were to substantially match with the terms of the corresponding financial receivables due from the borrowers to the Group. And the Group is required to repay the funding debts to the investors on a monthly basis over the term of the debts, where the payment term is substantially matched with the term of financing receivables. In addition, the terms of the funding debts derived from asset‑backed securitized debts is 24 months, which are not matched with the terms of the corresponding financial receivables due from the borrowers to the Group. The funding debts had a weighted average interest rate of 7.61% and 13.49% for the years ended December 31, 2017 and 2018, respectively. The Group securitizes its financing receivables through the transfer of those assets to securitization vehicles which then issue debt securities to third‑party investors. In June 2017, the Group, through its VIE, Shenzhen Minheng, created an asset‑backed securities (the “ABS”) which was issued and listed on the Shanghai Stock Exchange in June 2017. The ABS size was RMB245 million. Of the total commitment, 5 institutional funding partners purchased RMB180.0 million senior tranche securities A, bearing interest at 6%, representing 73.5% of total securities issued by the ABS Plan. Qunar purchased RMB40.0 million senior tranche securities B, bearing interest at 7%, representing 16.3% of total securities. The Group purchased all subordinated tranche securities amounting to RMB25.0 million, representing 10.2% of the total securities issued. Interest payments began in June 2017 and payable monthly through May 2018. Beginning June 2018, monthly payments consists of both principal and interest with a final maturity of June 2019, and repay the payment ahead of the final maturity of November 2018. The Group has power to direct the activities that most significantly impact economic performance of the ABS by providing the loan servicing and default loan collection services. The Group also has the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE as the Group purchased all subordinated tranche securities. Accordingly, the Group is considered as the primary beneficiary of the ABS and has consolidated the ABS’s assets, liabilities, results of operations, and cash flows in the Group’s consolidated financial statements. As of December 31, 2018, the Group, through its VIEs, created several trusts which were administered by third‑party trust companies, including Yunnan Trusts, and Huarun Trusts. These trusts were set up with total assets of RMB200 million each. As of December 31, 2018, the loans held by these trusts are all personal installment loans made to individual borrowers with an original term up to 12 months, which are recognized as short‑term funding debts on the consolidated financial statements. The external investors purchased senior tranche securities, bearing the interest from 6.8% to 8.5%, representing a range of 85% to 96% of total securities issued by these trusts. The Group is obligated to purchase subordinated tranche securities, representing a range of 4% to 15% of total securities issued by these trusts. The Group agreed to repurchase delinquent loans outstanding for more than 60 days during the trust term and to purchase any loans that are due but not been fully paid at the trust termination. Therefore, the Group is considered to hold a significant variable interest in these trusts. Moreover, the Group has power to direct the activities that most significantly impact economic performance of the trusts by providing the assets servicing, default loan collection services and deciding which borrower to issue loan to. The Group also has the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE, as the Group agreed to repurchase delinquent loans, purchase subordinated tranche securities and receive service fees from rendering service. Therefore, the trusts arrangement is considered as the variable interest entity under ASC 810, which was in turn consolidated by the Group. As of December 31, 2018, the Group , through its VIE, created the trusts which were administered by third‑party trust companies, including Yunnan Trusts I and Huarun Trust. The trusts were set up with total assets ranging from RMB100 million to RMB200 million. As of December 31, 2018, the loans held by the trust are all personal installment loans made to individual borrowers with an original term up to 24 months, which are recognized as long‑term funding debts on the consolidated financial statements. The external investors purchased senior tranche securities A, bearing interest from 7% to 8.2%, representing a range of 80% to 90% of total securities issued by these trusts. China Securities Credit Investment purchased senior tranche securities B, bearing interest at 8.5%, representing 10% of total securities issued by the trust. The Group also is obligated to purchase subordinated tranche securities, representing a range of 10% of securities. The Group agreed to repurchase delinquent loans outstanding for more than 60 days during the trust term and to purchase any loans that are due but not been fully paid at the trust termination. Therefore, the Group is considered to hold a significant variable interest in these trusts. Moreover, the Group has power to direct the activities that most significantly impact economic performance of the trusts by providing the assets servicing, default loan collection services and deciding which borrower to issue loan to. The Group also has the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE, as the Group agreed to repurchase delinquent loans, purchase subordinated tranche securities and receive service fees from rendering service. Therefore, the trusts arrangement is considered as the variable interest entity under ASC 810, which was in turn consolidated by the Group. Accordingly, the Group is considered as the primary beneficiary of these trusts and has consolidated these trusts’ assets, liabilities, results of operations, and cash flows in the Group’s consolidated financial statements. (See also note 2(j)) |
Short-term borrowings
Short-term borrowings | 12 Months Ended |
Dec. 31, 2018 | |
Short-term borrowings | |
Short-term borrowings | 15. Short-term borrowings On November 8, and December 5, 2018, the Group entered into three loan agreements with Bank of Jiangsu Co., Ltd(Beijing Branch), pursuant to which the Group is entitled to borrow a secured RMB denominated loan, with the aggregated principal amount of RMB220,000 with the interest rate of approximately 4.35% and 4.785% for less than one year. The loans are intended for general working capital purposes. As of December 31, 2018, the outstanding balance of the loan was secured by RMB245,565 restricted time deposit of the Group. On July 12, 2018, the Group entered into a loan agreement with Xiamen International Bank Co., Ltd, pursuant to which the Group is entitled to borrow a secured RMB denominated loan of RMB68,141 with an interest rate of approximately 2.58%. The loan was fully repaid on December 25, 2018. |
Financial guarantee liabilities
Financial guarantee liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Financial guarantee liabilities | |
Financial guarantee liabilities | 16. Financial guarantee liabilities The following table sets forth the guarantee liability movement activities for the years ended December 31, 2018. For the year ended December 31, 2016 2017 2018 RMB RMB RMB Balance at beginning of the year — — — Fair value of financial guarantee liabilities upon the inception of new loans — — 44,549 Release of financial guarantee liabilities upon repayment — — (21,397) Payouts during the period — — (7,615) Contingent liabilities — — — Balance at the end of the year — — 15,537 As of December 31, 2018, the amounts of maximum potential future payment the Group would be required to make were RMB 606,277. |
Accrued expenses and other liab
Accrued expenses and other liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Accrued expenses and other liabilities | |
Accrued expenses and other liabilities | 17. Accrued expenses and other liabilities Accrued expenses and other liabilities as of December 31, 2017 and 2018, consist of the following: As of December 31, 2017 2018 RMB RMB Payable to Business Partners for point-of-sale installment loans 31,877 4,681 Payable to asset management companies for funds received from customers 22,107 3,516 Payables to individual investors on Jimu Box and financial partners for collecting principal and interests on behalf of borrowers 15,492 9,586 Payroll payable 22,243 21,655 Payable related to professional fees 14,057 16,819 Payable related to service fees and others 3,022 8,937 Payable related to rental fees 1,400 — Payables related to long-term investments — 35,000 Deferred revenue 1,916 54,686 Others 75 2,582 Total 112,189 157,462 |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2018 | |
Taxation | |
Taxation | 18. Taxation Cayman Islands Under the current laws of the Cayman Islands, the Group is not subject to tax on income or capital gain. Additionally, upon payments of dividends to the shareholders, no Cayman Islands withholding tax will be imposed. British Virgin Islands Under the current laws of the British Virgin Islands, entities incorporated in British Virgin Islands are not subject to tax on their income or capital gains. Hong Kong Under the current Hong Kong Inland Revenue Ordinance, the Company’s Hong Kong subsidiary is subject to Hong Kong profits tax at the rate of 16.5% on its taxable income generated from the operations in Hong Kong. Payments of dividends by the subsidiary to the Company are not subject to withholding tax in Hong Kong. PRC Under the PRC Enterprise Income Tax Law (the “EIT Law”), the standard enterprise income tax rate for domestic enterprises and foreign invested enterprises is 25%. Effective January 1, 2008, the EIT Law in China unifies the enterprise income tax rate for the entities incorporated in China at 25% if they are not eligible for any preferential tax treatment. High and new technology enterprises enjoy a preferential tax rate of 15% under the EIT Law. Beijing Hongdian is qualified as a “high and new technology enterprise” under the EIT Law and is eligible for a preferential enterprise income tax rate of 15%, for the period from 2016 to 2019, so long as it obtains approval from the relevant tax authority and if it is profitable during the period. Sky City WFOE is qualified as a "high and new technology enterprise" under the EIT Law and is eligible for a preferential enterprise income tax rate of 15%, for the period from 2018 to 2021, so long as it obtains approval from the relevant tax authority and if it is profitable during the period. Pintec Beijing WFOE is qualified as a "high and new technology enterprise" under the EIT Law and is eligible for a preferential enterprise income tax rate of 15%, for the period from 2018 to 2021, so long as it obtains approval from the relevant tax authority and if it is profitable during the period. The EIT Law also provides that an enterprise established under the laws of a foreign country or region but whose “de facto management body” is located in the PRC be treated as a resident enterprise for PRC tax purposes and consequently be subject to the PRC income tax at the rate of 25% for its global income. The Implementing Rules of the EIT Law merely define the location of the “de facto management body "as" the place where the exercising, in substance, of the overall management and control of the production and business operation, personnel, accounting, property, of a non‑PRC company is located.” For the years ended December 31, 2017 and 2018, the Group did not have operations outside of the PRC, thus would not be subject to this tax. Withholding tax on undistributed dividends The EIT law also imposes a withholding income tax of 10% on dividends distributed by a foreign investment enterprise (“FIE”) to its immediate holding company outside China, if such immediate holding company is considered as a non‑resident enterprise without any establishment or place within China or if the received dividends have no connection with the establishment or place of such immediate holding company within China, unless such immediate holding company’s jurisdiction of incorporation has a tax treaty with China that provides for a different withholding arrangement. The Cayman Islands, where the Company is incorporated, does not have such tax treaty with China. According to the arrangement between Mainland China and Hong Kong Special Administrative Region on the Avoidance of Double Taxation and Prevention of Fiscal Evasion in August 2006, dividends paid by an FIE in China to its immediate holding company in Hong Kong will be subject to withholding tax at a rate of no more than 5%. The Group did not record any dividend withholding tax, as the Group’s FIE, the PRC WFOE, has no retained earnings in any of the period presented. The Group recorded income tax expense of RMB18,516 and RMB5,709 for the years ended December 31, 2017 and 2018. The following table sets forth current and deferred portion of income tax (benefit)/expense of the Company’s China subsidiaries, VIEs, and subsidiaries of the VIEs: For the year ended December 31, 2016 2017 2018 Current income tax expense 167 18,516 42,610 Deferred income tax benefit — — (36,901) Income tax expense 167 18,516 5,709 The following table sets forth reconciliation between the statutory EIT rate and the effective tax rates: For the year ended December 31, 2016 2017 2018 Statutory income tax rate in PRC % % % Tax effect of non-deductible expenses % % % Changes in valuation allowance -25.18 % -52.83 % -211.94 % Tax rate difference from statutory rate in other jurisdictions* — -6.62 % % Tax effect of preferential tax treatments — — -54.78 % Effective tax rate — -27.91 % % * It is primarily due to the tax effect of the Company as a tax-exempt entity incorporated in the Cayman Islands. Deferred tax assets and deferred tax liabilities The following table sets forth the significant components of the deferred tax assets and deferred tax liabilities: As of December 31, 2016 2017 2018 RMB RMB RMB Deferred tax assets: Allowance for doubtful accounts and credit losses and impairment loss of long-term investment 3,188 34,154 45,841 Deductible advertising fees 2,842 1,894 1,894 Net operating loss carry forwards 12,886 14,979 18,191 Accrued expense and other liabilities — — 1,073 Net operating loss carry forwards acquired in a business combination 2,204 1,763 1,322 Subtotal 21,120 52,790 68,321 Less: valuation allowance (18,916) (51,027) (30,098) Total deferred tax assets, net 2,204 1,763 38,223 Deferred tax liabilities: Intangible assets acquired in a business combination 2,204 1,763 1,322 Net deferred tax liabilities 2,204 1,763 1,322 Changes in valuation allowance are as follows: As of December 31, 2016 2017 2018 RMB RMB RMB Balance at beginning of the year 14,018 18,916 51,027 Additions 4,898 32,111 15,305 Reversals — — (36,234) Balance at end of the year 18,916 51,027 30,098 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. As of December 31, 2017, the Group provided full valuation allowance of RMB34,154, for the deferred tax assets related to provision for doubtful accounts and 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, the Group believes it is more-likely-than-not that these deferred tax assets will not be utilized in the future. For the years ended December, 2017 and 2018, Shenzhen Minheng and Sky City WFOE had cumulatively achieved pre-tax profit for the these consecutive years, and the Group forecasted these two subsidiaries are likely to continue to achieve pre-tax profit in 2019. As a result, the Group made an assessment as of December 31, 2018 and considered that the deferred tax assets for these two subsidiaries are more likely than not to be utilized in the future, and therefore concluded that the previously recognized valuation allowance for these two subsidiaries should be reversed in income statement as an income tax benefit (i.e. a credit of income tax expense). As of December 31, 2017 and 2018, the Group had net operating loss carryforwards of approximately RMB70,191 and RMB99,824, respectively, which arose from the Group’s other subsidiaries, VIEs and the VIEs’ subsidiaries established in the PRC, except for Shenzhen Minheng and Sky City WFOE. As of December 31, 2017 and 2018, deferred tax assets arose from the net operating loss carryforwards amounted to RMB14,978 and RMB18,191 million was provided for full valuation allowance respectively. As of December 31, 2018, the net operating loss carryforwards will expire in 2023, if not utilized. |
Share based compensation expens
Share based compensation expenses | 12 Months Ended |
Dec. 31, 2018 | |
Share based compensation expenses | |
Share based compensation expenses | 19. Share based compensation expenses Share based compensation expenses for periods prior to the Reorganization relate to the share options or restricted shares granted by Jimu Parent to the employees of the Pintec Business. For the years ended December 31, 2017 and 2018, total share based compensation expenses allocated from Jimu Parent were RMB31,018 and RMB36,496, respectively. Share options issued by Jimu Parent to employees of the Company Starting from 2014, Jimu Parent granted multiple tranches of share options with tiered vesting commencement dates to employees, including employees of the Pintec Business. The options are generally scheduled to be vested over four years, one‑fourth of the awards shall be vested upon the end of the calendar year in which the awards were granted or the first anniversary dates of the grants, and the remaining of the awards shall be vested on straight line basis. Options granted typically expire in ten years from the respective vesting commencement date as stated in the grant letters. A summary of activities of the service‑based share options granted to the employees of the predecessor operations of Pintec Business for the years ended December 31, 2016, 2017 and 2018 is presented below: Weighted Average Weighted Remaining Average Contractual Average Options Exercise Price Life Intrinsic Value Outstanding US$ (In years) (RMB in thousands) Outstanding as of December 31, 2016 11,612,548 0.82 9.00 2,274 Granted 4,627,563 1.00 Exercised — — Forfeited (353,069) 1.00 Outstanding as of December 31, 2016 15,887,042 0.87 8.63 26,538 Outstanding as of January 1, 2017 15,887,042 0.87 8.63 26,538 Granted 520,000 1.00 Exercised — — Forfeited (204,150) 1.00 Outstanding as of December 31, 2017 16,202,892 0.87 7.75 27,998 Outstanding as of January 1, 2018 16,202,892 0.87 7.75 27,998 Granted — Exercised — Forfeited (333,780) 1.00 Outstanding as of December 31, 2018 15,869,112 0.87 6.46 27,885 Vested and expected to vest as of December 31, 2016 15,887,042 0.87 8.63 26,538 Exercisable as of December 31, 2016 5,627,542 0.74 8.63 2,755 Vested and expected to vest as of December 31, 2017 16,202,892 0.87 7.75 27,998 Exercisable as of December 31, 2017 9,219,980 0.79 7.75 8,824 Vested and expected to vest as of December 31, 2018 15,869,112 0.87 6.46 27,885 Exercisable as of December 31, 2018 12,121,038 0.81 6.46 16,353 There were 4,627,563, 520,000 and nil options granted for the years ended December 31, 2016, 2017 and 2018. The weighted average grant date fair value of options granted for the years ended December 31, 2016, 2017 and 2018 was US$1.5, US$1.88 and nil, respectively. For the years ended December 31, 2016, 2017 and 2018, share‑based compensation expenses recognized associated with the service‑based share options granted to employees of the predecessor operations of Pintec Business and allocated to the Company were RMB13,025, RMB20,910 and RMB26,775, respectively. As of December 31, 2017 and 2018, there was RMB49,854 and RMB27,902 of unrecognized share‑based compensation expenses, adjusted estimated forfeitures, related to the share options granted. The expenses are expected to be recognized over a weighted‑average period of 0.66 years, and may be adjusted for future change in estimated forfeitures. The estimated fair value of each option grant is estimated on the date of grant using the Binominal option‑pricing model with the following assumptions: 2017 and 2018 Expected volatility 34.6%~40.2% Risk-free interest rate (per annum) 2.02%~3.02% Exercise multiples 2.2~2.8 Expected dividend yield 0.00% Expected term (in years) 10 Fair value of the underlying shares on the date of option grants (US$) 0.45~2.70 The use of a valuation model requires the Company to make certain assumptions of Jimu Parent with respect to selected model inputs. The expected volatility is calculated based on the annualized standard deviation of the daily return embedded in historical share prices of comparable companies. The risk free interest rate is estimated based on the yield to maturity of China treasury bonds based on the expected term of the incentive shares. Jimu Parent has not declared or paid any cash dividends on its capital stock, and does not anticipate any dividend payments on its ordinary shares in the foreseeable future. The estimated forfeiture rate is determined based on the fact that vested incentive shares would only be forfeited in the event of misconduct by the holders of the incentive shares. Restriction of ordinary shares held by senior management In connection with Jimu Parent’s issuance of Series A preferred shares on March 5, 2014, 40% of the 72,000,000 ordinary shares held by certain members of Jimu Parent’s senior management became restricted pursuant to the shareholders’ agreement. The 40% of the shares subject to vesting thereafter in 60 equal and continuous monthly installments following the grant date, provided that the founders’ continuous service for the Jimu Parent. This arrangement is accounted for similar to a reverse stock split, followed by the grant of restricted stock awards to the founders subject to service vesting conditions. These shares issued are determined to be share‑based compensation. The fair value of the ordinary shares at the grant date was estimated using the income approach. The difference between the fair value and par value is recognized as compensation expenses using graded vesting method over the requisite service period, which is the vesting period. Grant date fair value per restricted share on March 5, 2014 is USD0.45. As of December 31, 2017 and 2018, an aggregate of 4,096,458 and 1,568,000 of the restricted shares remained unvested, respectively. The activities of the total restricted ordinary shares for the years ended December 31, 2017 and 2018 are summarized as below: Weighted- Average Number of Grant Date shares Fair Value (in US$) Unvested at January 1, 2016 10,772,744 Granted 400,000 1.79 Vested (3,650,143) Unvested at December 31, 2016 7,522,601 Unvested at January 1, 2017 7,522,601 Granted — — Vested (3,426,143) Unvested at December 31, 2017 4,096,458 Unvested at January 1, 2018 4,096,458 Granted — — Vested (1,987,648) Forfeited (540,810) Unvested at December 31, 2018 1,568,000 For the years ended December 31, 2017 and 2018, share‑based compensation expenses recognized associated with the restricted ordinary shares and allocated to the Company were RMB10,108 and RMB9,721, respectively. As of December 31, 2017 and 2018, unrecognized compensation cost, adjusted for estimated forfeitures and related to non‑vested service‑based restricted ordinary shares, was RMB12,833 and RMB2,988, respectively. Share options issued by Pintec to mirror the options originally granted by Jimu Parent In connection with the Reorganization and as a result of the anti-dilution provision in the option plan and agreement regarding the options issued by Jimu Parent, 23,187,818 options to purchase the underlying Pintec ordinary shares were issued by the Company as of March 27, 2018 under the Company's first share incentive plan (the "First Plan"). For each of the outstanding share options granted under the Jimu Plan before the Reorganization, excluding those that were forfeited, it was additionally paired with one share option issued by the Company under the First Plan after the Reorganization, as an equitable adjustment pursuant to the anti-dilution provision. In accordance with ASC 718-20-35-6, exchanges of share options or other equity instruments or changes to their terms in conjunction with an equity restructuring (i.e. the Reorganization) are modifications of the share options and that the accounting for a modification in conjunction with an equity restructuring requires a comparison of the fair value of the modified awards with the fair value of the original award immediately before the modification in accordance with ASC 718-20-35-3. The Company engaged an independent valuation firm to assist the management in valuing the options before and after the modification. It was determined that there was no significant fair value difference before and after the modification. With respect to the Pintec options and Jimu Parent options held by the employees of the Group, the Group determined to recognize share based compensation expense in its consolidated financial statements the remaining unrecognized compensation cost pertaining to the unvested options of Jimu Parent which are retained by the employees of the Company, in addition to the cost pertaining to the unvested options issued by the Company to its employees in connection with the equity restructuring. Incremental fair value, if any, for unvested awards would be recognized prospectively in the consolidated financial statements of the Company in accordance with ASC 718-20-55-104. Since there was no incremental fair value before and after the modification, no additional compensation cost was recognized in accordance with ASC 718-20-55-104 post the Reorganization. Share options granted by Pintec to employees of the Company The Group granted 16,397,500 stock options and 740,000 stock options on May 31, 2018 and July 31, 2018, respectively, to its employees and directors of the Company under the First Plan with an exercise price of US$0.000125. The fair value of the Company's options was estimated to be $1.2785 per option granted on May 31, 2018, and $1.4506 per option granted on July 31, 2018 under the plan. These awards have a service condition and an initial public offering performance condition. For share options granted with performance condition, the share-based compensation expenses are recorded when the performance condition is considered probable. As a result, the cumulative share-based compensation expenses for these options that have satisfied the service condition will only be recorded upon the completion of the IPO. The Group granted 610,000 stock options on November 28, 2018 to its employees and directors of the Company under the Second Plan with an exercise price of US$0.000125. The fair value of the Company’s options was estimated to be $1.5899 per option granted on November 28, 2018. These awards have a service condition. A summary of activities of the service and performance-based share options granted to the employees and directors of the Company for the year ended December 31, 2018 are presented below: Weighted Average Weighted-Average Remaining Aggregate Options Grant-Date Contractual Intrinsic Outstanding Fair Value Life Value US$ (In years) (RMB in thousands) Outstanding as of December 31, 2017 — — — — Granted 17,747,500 1.2964 10 154,775 Exercised — — — — Forfeited (235,936) 1.2785 — — Outstanding as of December 31, 2018 17,511,564 1.2968 8.47 153,999 Expected to vest as of December 31, 2018 17,511,564 1.2968 8.47 153,999 For the year ended December 31, 2018, Share-based Compensation expenses recognized associated with share options granted by the company were RMB94,764. As of December 31, 2018, there was RMB52,959 of unrecognized share-based compensation, adjusted for estimated forfeitures, related to the share options granted to the Group's employees and directors. The estimated fair value of option granted on May and July is estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions: For the year ended December 31, 2018 Expected volatility 37.6 % Risk-free interest rate (per annum) 2.7%~2.89 % Expected dividend yield — Expected term (in years) 10 Fair value of the underlying shares on the date of option grants (US$) 1.2785~1.4506 The estimated fair value of option granted on November is estimated on the date of grant using the Binomial option pricing model. The use of a valuation model requires the Company to make certain assumptions of the Group with respect to selected model inputs. The expected volatility at the grant date is estimated based on the annualized standard deviation of the daily return embedded in historical share prices of comparable companies. The risk free interest rate is estimated based on the yield to maturity of China treasury bonds at the option valuation date. Expected term is the contract life of the option. The Group has not declared or paid any cash dividends on its capital stock, and does not anticipate any dividend payments on its ordinary shares in the foreseeable future. |
Pre-IPO Preferred Shares
Pre-IPO Preferred Shares | 12 Months Ended |
Dec. 31, 2018 | |
Pre-IPO Preferred Shares | |
Pre-IPO Preferred Shares | 20. Pre-IPO Preferred Shares The Pre-IPO Series Seed-A-1, A-2, B, C and Series A-1, and A-2 Preferred Shares are collectively referred to as the “Pre- IPO Preferred Shares”. The major rights, preferences and privileges of the Pre-IPO Preferred Shares are as follows: Conversion rights Each of the Pre-IPO Preferred Shares is convertible, at the option of the holder, into the Company's ordinary shares at an initial conversion ratio of 1:1 at any time after the date of issuance of such Pre-IPO Preferred Shares, subject to adjustments in the event of (i) share splits, share combinations, share dividends or distribution, other dividends, recapitalizations and similar events, or (ii) issuance of ordinary shares (excluding certain events such as issuance of ordinary shares pursuant to a public offering) at a price per share less than the conversion price in effect on the date of or immediately prior to such issuance. The Pre-IPO Preferred Shares shall be automatically converted based on the conversion price, into Ordinary Shares upon the earlier of (i) the closing of a QIPO, or (ii) with respect to the Pre-IPO Series Seed A Shares, the vote or written consent of the holders of more than 50% of the then outstanding Pre-IPO Series Seed A Preferred Shares (voting together as a single class), with respect to the Pre-IPO Series Seed B Shares, the vote or written consent of the holders of more than 50% of the then outstanding Pre-IPO Series Seed B Preferred Shares (voting together as a single class), and with respect to the Pre-IPO Series Seed C Shares, the vote or written consent of the holders of more than 50% of the then outstanding Pre-IPO Series Seed C Preferred Shares (voting together as a single class), with respect to the Pre-IPO Series A-1 Shares, the vote or written consent of the holders of more than 50% of the then outstanding Pre-IPO Series A-1 Preferred Shares (voting together as a single class), with respect to the Pre-IPO Series A-2 Shares, the vote or written consent of the holders of more than 50% of the then outstanding Pre-IPO Series A-2 Preferred Shares (voting together as a single class). Dividend rights The holders of Pre-IPO Preferred Shares are entitled to receive non-cumulative dividends prior and in preference to any declaration or payment of any dividend on Ordinary Shares carried at the rate of 8% of original issuance price per annum as and when declared by the board of directors. After payment of such preferential dividends on Preferred Shares during any year, any further dividends or distribution distributed during such year shall be declared and paid ratably on the outstanding Preferred Shares (on an as-converted basis) and the ordinary shares. No dividends on Preferred Shares and ordinary shares have been declared since the inception through December 31, 2018. Liquidation preferences In the event of any liquidation, dissolution or winding up of the Group, either voluntarily or involuntarily, the holders of Preferred Shares have preference over holders of ordinary shares with respect to payment of dividends and distribution of assets. Upon liquidation, Series A-2 Preferred Shares shall rank senior to Series A-1 Preferred Shares, Series A-1 Preferred Shares shall rank senior to Series Seed-C Preferred Shares, Series Seed C Preferred Shares shall rank senior to Series Seed B Preferred Shares, Series Seed B Preferred Shares shall rank senior to Series Seed A Preferred Shares, and Series Seed A Preferred Shares shall rank senior to ordinary shares. The holders of Series A-2 Preferred Shares shall be entitled to receive an amount equal to 100% of the Series A-2 Preferred Share issue price with respect to each Series A-2 Preferred Share on an as converted basis, plus all dividends declared and unpaid with respect thereon (as adjusted for any share splits, share dividends, combinations, recapitalizations and similar transactions) with respect to each Series A-2 Preferred Share on an as converted basis. The holders of Series A-1 Preferred Shares shall be entitled to receive an amount equal to 100% of the Series A-1 Preferred Share issue price with respect to each Series A-1 Preferred Share on an as converted basis, plus all dividends declared and unpaid with respect thereon (as adjusted for any share splits, share dividends, combinations, recapitalizations and similar transactions) with respect to each Series A-1 Preferred Share on an as converted basis. The holders of Series Seed-C Preferred Shares shall be entitled to receive an amount equal to 100% of the Series Seed-C Preferred Share deemed issue price with respect to each Series Seed-C Preferred Share on an as-converted basis, plus all dividends declared and unpaid with respect thereon (as adjusted for any share splits, share dividends, combinations, recapitalizations and similar transactions) with respect to each Series Seed-C Preferred Share on an as-converted basis. The holders of Series Seed-B Preferred Shares, shall be entitled to receive an amount equal to 100% of the Series Seed-B Preferred Share deemed issue price with respect to each Series Seed-B Preferred Share on an as-converted basis, plus all dividends declared and unpaid with respect thereon (as adjusted for any share splits, share dividends, combinations, recapitalizations and similar transactions) per share, then held by such holder. The holders of Series Seed-A Preferred Shares, shall be entitled to receive an amount equal to 100% of the Series Seed-A Preferred Share deemed issue price with respect to each Series Seed-A Preferred Share on an as converted basis, plus all dividends declared and unpaid with respect thereon (as adjusted for any share splits, share dividends, combinations, recapitalizations and similar transactions) per share, then held by such holder. After distribution or payment in full of the amount distributable or payable on the Series A-2 Preferred Shares, Series A-1 Preferred Shares, Series Seed C Preferred Shares, Series Seed B Preferred Shares, and Series Seed-A Preferred Shares, the remaining assets of the Company available for distribution to members shall be distributed ratably among the holders of outstanding ordinary shares and the holders of outstanding Preferred Shares in proportion to the number of outstanding ordinary shares held by them (on an as converted basis). Voting rights The holder of each ordinary share issued and outstanding has one vote for each ordinary share held and the holder of each Preferred Shares has the number of votes as equals to the number of ordinary shares then issuable upon their conversion into ordinary shares. The holders of the Preferred Shares shall vote together with the holders of ordinary shares on all matters submitted to a vote of the shareholders of the Company and not as a separate class. Redemption rights At any time after May 17, 2022 in the event that a qualified initial public offering ("QIPO") has not occurred and the Preferred Shares have not been converted, or for Series Seed A Preferred Shares, Series Seed B Preferred Shares, Series Seed C Preferred Shares, Series A-1 Preferred Shares and Series A-2 Preferred Shares, if requested by the holders of the respective series of Preferred Shares then outstanding, the Group shall redeem all or part of the respective outstanding Preferred Shares in that series. The redemption prices shall be the sum of (i) the Preferred Shares deemed issue price or issue price; (ii) all dividends declared and unpaid; and (iii) annual interest calculated at 8% per annum on the deemed issue price, compounded annually. The Group accretes changes in the redemption value over the period from the date of original issuance of the Preferred Shares to their respective earliest redemption date using effective interest method. Changes in the redemption value are considered to be changes in accounting estimates. The accretion will be recorded against retained earnings, or in the absence of retained earnings, by charges against additional paid-in capital. Once additional paid-in capital has been exhausted, additional charges should be recorded by increasing the accumulated deficit. Accounting of Preferred Shares The Group records accretion on the Preferred Shares, where applicable, to the redemption value from the original issuance dates to the earliest redemption dates. The accretion of Preferred Shares was RMB65.4 million for the years ended December 31, 2018, respectively. The Preferred Shares are recorded initially at fair value, net of issuance costs. The Group determined that the embedded conversion features and the redemption features do not require bifurcation as they either are clearly and closely related to the Preferred Shares or do not meet the definition of a derivative. The Group has determined that there was no embedded beneficial conversion feature attributable to the Preferred Shares. In making this determination, the Group compared the initial effective conversion prices of the Preferred Shares and the fair values of the Group's ordinary shares determined by the Group at the issuance dates. The Group's preferred shares activities for the years ended December 31, 2018 are summarized below: Series Seed-A-1 Series Seed-A-2 Series Seed-B Series Seed-C Series A-1 Series A-2 Mezzanine Equity Preferred Shares Preferred Shares Preferred Shares Preferred Shares Preferred Shares Preferred Shares Total No. of Amount No. of Amount No. of Amount No. of Amount No. of Amount No. of Amount No. of Total shares in RMB shares in RMB shares in RMB shares in RMB shares in RMB shares in RMB shares Amount Balances as of December 31, 2017 — — — — — — — — — — — — — — Completion of reorganization 2,500,000 2,437 17,678,568 21,975 37,257,705 175,563 42,747,918 497,007 — — — — 100,184,191 696,982 Issuance of Preferred Shares — — — — — — — — 25,650,679 267,893 38,829,699 407,444 64,480,378 675,337 Preferred Shares redemption value accretion — 161 — 1,497 — 11,493 — 32,589 — 7,847 — 11,768 — 65,355 Conversion of Pre-IPO Preferred Shares into Class A Ordinary Shares (2,500,000) (2,598) (17,678,568) (23,472) (37,257,705) (187,056) (42,747,918) (529,596) (25,650,679) (275,740) (38,829,699) (419,212) (164,664,569) (1,437,674) Balances as of December 31, 2018 — — — — — — — — — — — — — — The accretion of the preferred shares presented in the above table is calculated for the period from the date the preferred shares were actually issued upon the completion of the Reorganization to the date these shares were redesignated into ordinary shares upon IPO. Ordinary Shares In October 2018, the Company completed its IPO on the NASDAQ Global Select Market. In the offering, 3,725,000 American depositary shares (“ADSs”), representing 26,075,000 Class A Ordinary Shares, were issued and sold to the public at a price of US$11.88 per ADS. The net proceeds to the Company from the IPO, after deducting commissions and offering expenses, were approximately US$40.7 million (RMB280.1 million). In November 2018, the Company completed its followed offering 483,070 ADS, representing 3,381,490 Class A Ordinary Shares, were issued and sold to the public at a price of US$11.88 per ADS. The net proceeds to the Company from the IPO, after deducting commissions and offering expenses, were approximately US$5.3 million (RMB36.4million). 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$0.000125 per share. All of the issued and outstanding Pre-IPO Class A Ordinary Shares were automatically re-designated into Class A 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 fifteen 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. |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related party transactions | |
Related party transactions | 2 1. Related party transactions The table below sets forth the major related parties and their relationships with the Group as of December 31, 2017 and 2018: Name of related parties Relationship with the Group Jimu Group An entity and its certain subsidiaries that have a high degree of overlap in shareholding with the Group and share three common board members. BBAE Holdings Limited An entity which has two common directors of the Board of Directors with the Company who can significantly influence both the entity and the Company BBAE Advisors LLC An entity which is a wholly owned subsidiary of BBAE Holdings Limited Beijing Liangduo Science and Technology Co. Ltd. An entity which the Group holds 18% equity interests Changsha Liangduo Business Consulting Co., Ltd An entity which Beijing Liangduo Science and Technology Co., Ltd holds 90% equity interests (a) The Group entered into the following transactions with related parties: For the year ended December 31, Transactions 2017 2018 RMB RMB (i) Transactions recorded in costs and expenses —Cost and expenses allocated from Jimu Group 102,263 48,687 —Service fees to Jimu Group for the peer-to-peer matching services for the funding debts 1,235 458 (ii) Financing/investing transactions —Net cash advances from/(to) the Jimu Group 23,121 (441,491) —Cash repayment to Jimu Group — (23,121) —Loan proceeds from Jimu Group documented in loan agreements 29,270 12,711 —Loan issued to Jimu Group documented in loan agreements and other financing transactions — (59,636) —Collection of loan issued to Jimu Group — 52,169 (i) Transactions recorded in costs and expenses The cost and expenses allocated from Jimu Group represents general expenses, including stock based compensation costs, shared corporate marketing expenses, bandwidth and server hosting costs, charged by Jimu Group, pursuant to the Reorganization Agreements. (Note 1(b)). (ii) Financing/investing transactions Net cash advances from/(to) the Jimu Group For the year ended December 31, 2017, the Group received cash advances from Jimu Group with the aggregate amount of RMB23.1 million, which was fully repaid to Jimu Group subsequently in 2018. For the year ended December 31, 2018, the Group made a series of cash advances to Jimu Group that were not documented contemporaneously by loan agreements. The aggregate amount of cash advances made to Jimu Group was RMB441.5 million, including U.S. dollar-denominated cash advances of RMB146.6 million (US$21.4 million), and RMB-denominated cash advances of RMB294.9 million. Loan proceeds from Jimu Group For the year ended December 31, 2017, the Company and certain of its subsidiaries entered into a series of loan agreements with Jimu Group, pursuant to which the Group drew down RMB-denominated loan from Jimu Group, to facilitate the Group’s business operation, with the aggregate amount of RMB29.3 million. All of the loans carried a fixed rate of interest of 12% as of the dates when the loan principal was drawn down. As of December 31, 2018, the Group had repaid the loan principal of RMB18.2 million. For the year ended December 31, 2018, the Company and certain of its subsidiaries entered into a series of loan agreements with Jimu Group, pursuant to which the Group drew down RMB denominated loan from Jimu Group, with the aggregate amount of RMB12.7 million. All of the loans carried a fixed rate of interest ranging from 12.13% to 12.8%. Loan issued to Jimu Group and other financing transactions For the year ended December 31, 2018, the Company had entered into a loan agreement with Jimu Group, pursuant to which Jimu Group drew down U.S. dollar-denominated loan from the Group, with the aggregate amount of RMB52.2 million (US$7.6 million) which was not interest bearing. As of December 31, 2018, such loan to Jimu Group had been fully collected. In addition, the Company had other financing transactions with Jimu Group amounting to RMB7.4 million. (b) The Group had the following balances with the major related parties: As of December 31, 2017 2018 RMB RMB Due from Jimu Group 228,548 475,426 BBAE Holdings Limited 478 — Total 229,026 475,426 Due to Jimu Group 385,035 89,453 BBAE Advisors LLC 527 721 Beijing Liangduo Science and Technology Co. Ltd. 927 4,348 Changsha Liangduo Business Consulting Co., Ltd. — 2,074 Total 96,596 For the year ended December 31, 2018, in addition to payments the Group made to Jimu Group in the ordinary course of business and the U.S. dollar-denominated loan of RMB52.2 million ( US$7.6 million) made to Jimu Group, the Group made a series of cash advances to Jimu Group in both U.S. dollars and Renmibi, that were not documented contemporaneously by loan agreements . As a result of these cash advances, the amounts due from Jimu Group on our balance sheet became much larger than the amounts due to Jimu Group. As of December 31, 2018, the Company had RMB475.4 million (US$69.1 million) in amounts due from Jimu Group including the balance of RMB-denominated cash advances amounting to RMB294.9 million (US$42.9 million) and US dollar denominated cash advances amounting to RMB146.6 million (US$21.4 million), as compared to RMB89.5 million (US$13.0 million) in amounts due to Jimu Group. Subsequent to December 31, 2018, the Group and Jimu Group have entered into certain loan repayment agreements for the above RMB and U.S. dollar denominated cash advances (Note 25(b)(i)). The cash advances denominated in RMB as of December 31, 2018, were fully settled by offsetting against the purchase price of RMB230 million (US$33.5 million) for the acquisition of Jimu Micro Finance (Note 25(c)(i)) and offsetting part of the initial guarantee deposit as required by the information service cooperation agreement entered into by the Group and Jimu Group in July 2019 (Note 25(c)(ii)). In addition, as of July 30, 2019, Jimu Group also has repaid the Group the loan principal and related interest of the U.S. denominated loan with the aggregate amount of RMB21.5 million (US$3.1 million) (Note 25). |
Defined contribution plan
Defined contribution plan | 12 Months Ended |
Dec. 31, 2018 | |
Defined contribution plan | |
Defined contribution plan | 22. Defined contribution plan Full time employees of the Group in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to the employees. Chinese labor regulations require that the PRC subsidiaries, VIEs and VIEs’ subsidiaries of the Group make 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 made. The total amounts for such employee benefit expenses, which were expensed as incurred, were approximately RMB38,378 and RMB32,821 for the years ended December 31, 2017 and 2018. |
Unaudited pro forma net loss pe
Unaudited pro forma net loss per share | 12 Months Ended |
Dec. 31, 2018 | |
Unaudited pro forma net loss per share | |
Unaudited pro forma net loss per share | 23. Unaudited pro forma net loss per share Basic net loss per share is computed using the weighted average number of ordinary shares outstanding during the period. Diluted net loss per share is computed using the weighted average number of ordinary shares and dilutive potential ordinary shares outstanding during the period. The Company issued ordinary shares to Jimu Parent ordinary shareholders in connection with the Reorganization in March 2018 (See Note 1). 72,000,000 ordinary shares and certain preferred shares were issued and outstanding upon the completion of the Reorganization (See Note 1) in March 2018 pro forma basic and diluted net loss per ordinary share reflecting the effect of the issuance of ordinary shares and preferred shares to Jimu Parent shareholders are presented as if they had been existed since January 1, 2016 and the accretion of the preferred shares is calculated as if the preferred shares had been existed since January 1, 2016. For the years ended December 31, 2017 and 2018, the Series Seed‑A‑1 Preferred Shares, Series Seed‑A‑2 Preferred Shares, Series Seed‑B Preferred Shares, Series Seed‑C Preferred Shares, the Series A‑1 Preferred Shares, the Series A‑2 Preferred Shares, and convertible loans convertible into ordinary shares were anti‑dilutive and thus excluded from the calculation of pro forma diluted net (loss)/income per share of the Company. The unaudited pro forma basic and diluted net loss per ordinary share for each of the years are presented as follows: For the year ended December 31, 2017 2018 2018 RMB RMB USD Pro forma basic net loss per ordinary share calculation: Numerator: Net (loss)/income (84,860) 2,171 315 Accretion on Series Seed-A-1 Preferred Shares redemption value (167) (203) (30) Accretion on Series Seed-A-2 Preferred Shares redemption value (1,502) (1,874) (273) Accretion on Series Seed-B Preferred Shares redemption value (11,881) (14,476) (2,105) Accretion on Series Seed-C Preferred Shares redemption value (31,943) (40,602) (5,905) Accretion on Series A-1 Preferred Shares redemption value — (7,847) (1,141) Accretion on Series A-2 Preferred Shares redemption value — (11,768) (1,712) Net loss attributable to ordinary shareholders (130,353) (74,599) (10,851) Denominator: Weighted average ordinary shares outstanding-basic 62,875,631 103,995,794 103,995,794 Pro forma net loss per ordinary share basic (2.07) (0.72) (0.10) Pro forma diluted net loss per ordinary share calculation: Numerator: Net loss attributable to ordinary shareholders-diluted (130,353) (74,599) (10,851) Denominator: Weighted average ordinary shares outstanding-basic 62,875,631 103,995,794 103,995,794 Ordinary shares issuable upon the exercise of outstanding stock option using the treasury stock method — — — Weighted average ordinary shares outstanding-diluted 62,875,631 103,995,794 103,995,794 Pro forma net loss per ordinary share diluted (2.07) (0.72) (0.10) |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and contingencies | |
Commitments and contingencies | 24. Commitments and contingencies Operating lease commitment The Group has entered into non cancellable operating leases covering various facilities. Future minimum lease payments under these non cancellable leases as follows: Payment due by schedule Less than 1 year 1 - 2 years 2 - 3 years Total Office rental 8,851 — — 8,851 Bandwidth leasing 535 — — 535 9,386 — — 9,386 For the years ended December 31, 2017 and 2018, the Group incurred office rental expenses in the amounts of RMB17,028 and RMB15,784, respectively and incurred bandwidth leasing expenses in the amounts of RMB652 and RMB1,072, respectively. Debt Obligation The expected repayment amount of the debt obligations are as follows: Payment due by schedule Less than More than 1 year 1 - 2 years 2 - 3 years 3 years Total Funding Debts obligations Loan payables to individual investors via financial partners 268,167 — — 21,498 289,665 Consolidated trusts 290,103 — — — 290,103 Loan payables to a shareholder 121,687 — — — 121,687 Interest payments 24,300 2,511 2,511 2,092 31,414 Total Funding Debts obligations 704,257 2,511 2,511 23,590 732,869 Legal Proceedings As of December 31, 2017 and 2018, the Group was not involved in any legal or administrative proceedings that may have a material adverse impact on the Group’s business, financial position results of operations, or cash flows. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent events | |
Subsequent events | 25. Subsequent events a) Repayment of loan to Plutux Labs As of May 5, 2019, the Company has received full repayments of the whole outstanding loan principal of RMB 137,510 (US$20.0 million) and interest of RMB 0.83 million (US$0.12 million) from Plutux Labs. Based on the interest rate of 10.5% p.a. pursuant to the original loan agreement with Plutux Labs and the number of days the loan principal was outstanding, as of December 31, 2018, the aggregate interest that the Company should be entitled to receive was RMB 6 million (US$0.88 million). As of May 5, 2019, the Company and Plutux Labs agreed that Plutux Labs was only required to pay RMB 0.83 million (US$0.12 million) as interest to the Company. The Company considered that this was an adjusting event and accordingly the Company wrote down the balance of interest receivable as of December 31, 2018 to the amount of RMB0.83 million (US$0.12 million), which was the amount the Company has actually recovered after the year end. b) Additional cash advances to Jimu Group Subsequent to the year ended December 31, 2018, the Group made additional cash advances to Jimu Group from January to May 2019, without contemporaneous loan agreement in the aggregate amount of RMB449.9 million (US$65.4 million). (i) Cash Advances and Loan Agreements The Group entered into two loan agreements with Jimu Group on July 19, 2019, to formally document the amounts due from Jimu Group that were attributable to the cash advances the Group made to Jimu Group outside of the ordinary course of business. The first loan agreement was denominated in U.S. dollars and had a loan principal amount of RMB146.6 million (US$21.4 million), representing the cash that the Group advanced to Jimu Group in U.S. dollars in 2018. This U.S. dollar-denominated loan bears interest at an annual simple (non-compounding) rate of 3.5%. This loan agreement was supplemented by a supplement dated as of the same date, which revised the maturity date provision of the original agreement to require Jimu Group to repay the principal and interest amounts payable under the original loan agreement on a daily basis over the 215 days from July 1, 2019 to January 31, 2020. The second loan agreement was denominated in Renminbi and had a loan principal amount of RMB294.9 million (US$42.9 million), representing the cash that the Group advanced to Jimu Group in Renminbi in 2018. This Renminbi-denominated loan bears interest at an annual simple (non-compounding) rate of 11%. This loan agreement was supplemented by two supplements dated as of the same date. The first supplement revised the loan principal amount of the loan as of April 30, 2019, to RMB129.6 million (US$18.8 million), representing an additional RMB391.3 million (US$56.9 million) of cash that the Group advanced to Jimu Group between January 1, 2019, and April 30, 2019, minus RMB165.3 million (US$24.0 million) of deposits due from the Group under the information service cooperation agreement relating to the same period, RMB161.3 million (US$23.5 million) of asset management service fees and other service fees collected by the Group for Jimu Group during the same period and RMB230.0 million (US$33.5 million) due from the Group relating to the purchase of Jimu Micro Finance for that amount in March 2019 (Note 25 (c)(i)). The second supplement further revised the loan principal amount of the loan as of May 31, 2019, to RMB154.6 million (US$22.5 million), representing an additional RMB58.6 million (US$8.5 million) of cash that the Group advanced to Jimu Group between May 1, 2019, and May 31, 2019, minus RMB2.5 million (US$0.4 million) of deposits due from the Group under the information service cooperation agreement relating to the same period and RMB31.1 million (US$4.5 million) of asset management service fees and other service fees collected by the Group for Jimu Group during the same period. The second supplement also allows the offset of loan principal against the guarantee deposit payable by the Group from July 2019 through 2020, and provided for repayment on a monthly basis over the 24 months from February 2020 through 2022. (ii) Consulting Service Agreement The Group entered into a consulting service agreement with Jimu Group on January 1, 2017. Pursuant to the agreement, the Group is required to pay Jimu Group a fee for the provision of their consulting services. The consulting service agreement was supplemented on July 19, 2019. The supplement allows the Group to withhold consulting service fees payable in the amount equivalent to the outstanding amount due from Jimu Group under the abovementioned U.S. dollar-denominated loan in the event that Jimu Group fails to fully and timely repay the loan principal and interest as it falls due under that loan agreement. The supplement also allows the Group to offset the consulting service fees payable against the outstanding amount due from Jimu Group under the abovementioned U.S. dollar-denominated loan upon Jimu Group’s failure to fully and timely repay the loan principal and interest due under that loan within 60 days after maturity. As of July 1, 2019, the amount of outstanding consulting service fee payable to Jimu Group was RMB13.0 million (US$1.9 million). (iii) Strategic Cooperation Agreement The Group entered into a strategic cooperation agreement with Jimu Group on December 31, 2017. Pursuant to the agreement, the Group collects asset management fees on behalf of Jimu Group as part of a loan project referral program set up between the Group. The strategic cooperation agreement was supplemented on July 19, 2019. The supplement allows the Group to withhold asset management fees relating to loans made on or before December 31, 2018, collected in the amount equivalent to the outstanding amount due from Jimu Group under the abovementioned U.S. dollar-denominated loan in the event that Jimu Group fails to fully and timely repay the principal and interest as it falls due under that loan agreement. The supplement also allows the Group to deduct the asset management fees collected against the outstanding amount due from Jimu Group under the abovementioned U.S. dollar-denominated loan upon Jimu Group’s failure to fully and timely repay the principal and interest due under that loan within 60 days after maturity and apply them to amounts due under the U.S. dollar-denominated loan agreement. The Group expects to collect approximately RMB133 million (US$19.3 million) in asset management fees on behalf of Jimu Group between July 1, 2019, and November 30, 2020. c) Settlement of the outstanding balance due from Jimu Group The repayment of the outstanding balances due from Jimu Group will be made in accordance with the following agreements entered into with Jimu Group on July, 2019: i) Acquisition of Ganzhou Jimu Micro Finance Co., Ltd On March 18, 2019, the Company entered into an agreement to acquire 100% of the equity of Ganzhou Jimu Micro Finance Co., Ltd. (“Jimu Micro Finance”) from Jimu Group, for a purchase price of RMB230 million (US$33.5 million). With the license to operate small loan businesses, the Group expects the acquisition would enable the Group to carry out pilot financial services that will complement the existing services offerings of the Group, and also to allow the Group to further enhance its data collection capabilities. On March 21, 2019, the Group obtained the control over Jimu Micro Finance by becoming its sole shareholder. The purchase price of RMB 230 million was used to reduce the amounts due from Jimu Group pursuant to an offsetting agreement executed in July 2019. ii) Information Service Cooperation Agreement and guarantee deposit payment to Jimu Group In July, 2019, a new business arrangement (“New Arrangement”) was entered into between the Group and Jimu Group, which changed the existing collaboration arrangement with the peer-to-peer lending platform of Jimu Group for the Group’s lending solution to asset borrowers to obtain credit loans (refer to note 2(r)(i) for details). Under the New Arrangement, while the Group will continue to facilitate the loan origination process and provide on-going loan servicing and does not loan money to borrowers (i.e. they are of off-balance sheet loans from the perspective of the Group), the Group will provide a certain level of limited guarantee to the individual investors registered on the P2P lending platform of Jimu Group regarding the recoverability of the loan principal and interest due by the borrowers referred by the Group (the “Guarantee”). The purpose of entering into the New Arrangement is allow the Group to secure a stable funding partner which can offer a significant amount of funding to cope with the business needs of the Group’s lending solution business. Pursuant to the New Arrangement, the Group entered into an information service cooperation agreement with Jimu Group on July 19, 2019. Pursuant to the agreement, the Group will undertake the credit enhancement measures by purchasing the overdue loan principal and interest up to a cap. The Group is obligated to maintain a guarantee deposit with Jimu Group and reimburse Jimu Group for defaulted loans the Group have facilitated that are funded through Jimu Box, up to a cap. The guarantee deposit must be maintained at an amount equal to 12% of the average outstanding balance of loans the Group have facilitated that are funded through Jimu Box, excluding loans originated before 2019. If the deposit falls below 12% at the end of any calculation period then the Group must deposit additional amounts with Jimu Group to raise it to 12%, and similarly, if the deposit exceeds 12% then Jimu Group must refund the excess to the Group. The cap on the Group’s reimbursement of Jimu Group for defaulted loans in any given month is 1.5% of the average aggregate balance of loans that (1) were facilitated by the Group, excluding loans originated before 2019, (2) were funded through Jimu Box and (3) were outstanding during the month in question, regardless of the vintage or tenor or due date of the loans. The average aggregate balance for the month in question is calculated as the outstanding balance at the beginning of the month plus the outstanding balance at the end of the month, divided by two. There is no catch-up or claw-back mechanism for months where the aggregate amount of defaulted loans is less than the cap on the Group’s reimbursement obligation. The initial deposit under the information service cooperation agreement was RMB165.3 million (US$24.0 million), representing 12% of the loans which the Group had facilitated and which Jimu Group had funded since January 1, 2019 and which remained outstanding on April 30, 2019, excluding amounts that were in default. In lieu of paying the deposit in cash, the Group reduced the amount that would be due from Jimu Group under the RMB denominated loan agreement described above. The RMB-denominated cash advances as of December 31, 2018, were fully settled by the offset of RMB230 million (US$33.5 million) for the acquisition of Jimu Micro Finance and RMB64.9 million (US$9.4 million) of the guarantee deposit. d) Acquisition of Infrarisk In March 2019, the Company entered into an agreement to acquire Infrarisk Pty Limited ("Infrarisk"), an Australia-based SaaS company providing systems to lenders for managing the credit risk origination process, for an aggregate purchase price up to US$3.8 million in the form of newly issued ordinary shares. The acquisition is an integral part of the Company's ongoing efforts to expand its business internationally. |
Parent company only condensed f
Parent company only condensed financial information | 12 Months Ended |
Dec. 31, 2018 | |
Parent company only condensed financial information | |
Parent company only condensed financial information | 26. Parent company only condensed financial information The condensed financial information of the Company has been prepared in accordance with SEC Regulation S-X Rule 5-04 and Rule 12-04, using the same accounting policies as set out in the Group’s consolidated financial statements, except that the Company uses the equity method to account for investments in its subsidiaries, VIEs and VIEs’ subsidiaries. The subsidiaries did not pay any dividend to the Company for the years presented. Certain information and footnote disclosures generally included in financial statements prepared in accordance with U.S. GAAP have been condensed and omitted. The footnote disclosures contain supplemental information relating to the operations of the Company, as such, these statements are not the general purpose financial statements of the reporting entity and should be read in conjunction with the notes to the consolidated financial statements of the Company. Condensed balance sheet (In thousands, except for share and per share data) As of December 31, 2018 2018 RMB US$ Note 2 (e) ASSETS Current assets: Cash and cash equivalents 69,194 10,064 Prepayments and other current assets 143,464 20,866 Amounts due from subsidiaries of the Company 631,414 91,835 Amounts due from related parties 146,835 21,356 Total current assets 990,907 144,121 Non-current assets: Investment in subsidiaries, VIEs and VIEs' subsidiaries 60,167 8,751 Long-term investments 17,564 2,555 Total non-current assets 77,731 11,306 TOTAL ASSETS 1,068,638 155,427 LIABILITIES Current liabilities: Accrued expenses and other liabilities 11,362 1,653 Total current liabilities 11,362 1,653 TOTAL LIABILITIES 11,362 1,653 Commitments and contingencies (Note 24) INVESTED (DEFICIT)/SHAREHOLDERS’ EQUITY Class A Ordinary Shares (US$0.000125 par value per share, 348,217,505 shares authorized; 213,811,958 shares issued and outstanding as of December 31, 2018; non authorized issued and outstanding as of December 31, 2017) 185 27 Class B Ordinary Shares (US$0.000125 par value per share, 51,782,495 shares authorized; 51,782,495 shares issued and outstanding as of December 31, 2018; non authorized issued and outstanding as of December 31, 2017) 43 6 Additional paid-in capital 1,896,993 275,906 Accumulated other comprehensive income 31,014 4,511 Accumulated deficit (870,959) (126,676) TOTAL INVESTED (DEFICIT)/SHAREHOLDERS’ EQUITY 1,057,276 153,774 TOTAL LIABILITIES AND INVESTED (DEFICIT)/SHAREHOLDERS’ EQUITY 1,068,638 155,427 Condensed statements of operations and comprehensive loss (In thousands) For the year ended December 31, 2018 2018 RMB US$ Note 2 (e) Cost of revenues: Origination and servicing cost (337) (49) Cost of revenues (337) (49) Operating expenses: Sales and marketing expenses (11,137) (1,620) General and administrative expenses (102,141) (14,856) Research and development expenses (18,675) (2,716) Total operating expenses (131,953) (19,192) Operating (loss)/income Change in fair value of convertible loans (9,552) (1,389) Equity in gain of subsidiaries, VIEs and VIE's subsidiaries 131,594 19,140 Share of loss from equity method investments (1,690) (246) Other income, net 14,109 2,051 Income before income tax expense 2,171 315 Income tax expense — — Net income 2,171 315 Other comprehensive income: Foreign currency translation adjustments net of nil tax 30,173 4,388 Total other comprehensive income 30,173 4,388 Total comprehensive (loss)/income 32,344 4,703 Condensed statements of cash flows (in thousands) For the year ended December 31, 2018 2018 RMB US$ Note (e) Net cash used in operating activities (581,914) (84,636) Cash flows from investing activities: Net cash advances to Jimu Parent (146,835) (21,356) Short-term loan to a third party (137,264) (19,964) Purchase of long-term investments (19,259) (2,801) Net cash used in investing activities (303,358) (44,121) Cash flows from financing activities: Proceeds from issuance of Pre-IPO Preferred Shares 410,286 59,674 Proceeds from initial public offering and followed offering, net of issuance cost 316,451 46,026 Cash repayment to Jimu Parent (818) (119) Proceeds from issuance of convertible loans 21,730 3,160 Net cash provided by financing activities 747,649 108,741 Effect of exchange rate changes on cash, cash equivalents and restricted time deposits 24,510 3,565 Net decrease in cash, cash equivalents and restricted time deposits (113,113) (16,451) Cash and cash equivalents at beginning of the year 182,307 26,515 Cash and cash equivalents at end of the year 69,194 10,064 |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Summary of significant accounting policies | |
Basis of presentation | (a) Basis of presentation The consolidated financial statements of the Group have been prepared in accordance with U.S. GAAP. Significant accounting policies followed by the Group in the preparation of the accompanying consolidated financial statements are summarized below. |
Principles of consolidation | (b) Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIEs for which the Company is the ultimate primary beneficiary, and the subsidiaries of the VIEs. 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. VIEs are entities in which the Company, or its subsidiary, through contractual arrangements, exercises effective control over the activities that most impact the entities’ economic performance, bears the risks of, and enjoys the rewards normally associated with ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entities. All significant intercompany transactions and balances between the Company, its wholly owned subsidiaries and the VIEs have been eliminated upon consolidation. |
Use of estimates | (c) Use of estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires the Group to make estimates and assumptions that affect the reported amounts of assets and liabilities and related disclosure of contingent assets and liabilities at the balance sheet date, and the reported revenues and expense during the reporting period and disclosed in the consolidated financial statements and accompanying notes. Significant accounting estimates reflected in the Group's consolidated financial statements include revenue recognition, allocations of revenue to multiple elements, provision for doubtful accounts and credit losses, valuation and recognition of share-based compensation expenses, cost and expenses from Jimu Parent to Pintec, valuation allowance of deferred tax assets, fair value of assets and liabilities acquired in business combinations, fair value of convertible loans and impairment of goodwill, determination of the fair value of Pre-IPO Preferred Shares and Pre-IPO Class A Ordinary Shares, and the fair value of financial guarantee liabilities. |
Foreign currency translation | (d) Foreign currency translation The Group’s reporting currency is Renminbi (“RMB”). The functional currency of the Company and the Group’s subsidiary incorporated in Hong Kong and BVI is United States dollars (“US$”). The Group’s PRC subsidiaries, VIEs and VIEs’ subsidiaries determined their functional currency to be RMB. The determination of the respective functional currency is based on the criteria set out by ASC 830, Foreign Currency Matters. Transactions denominated in foreign currencies other than functional currency are translated into the functional currency at the exchange rates prevailing on the transaction dates. Assets and liabilities denominated in foreign currencies other than functional currency are remeasured into the functional currency at the exchange rates prevailing at the balance sheet date. Exchange gains or losses arising from foreign currency transactions are recorded in the consolidated statements of operations and comprehensive (loss)/income. The financial statements of the Group’s non PRC entities are translated from their respective functional currency into RMB. Assets and liabilities denominated in foreign currencies are translated into RMB using the applicable exchange rates at the balance sheet date. Equity accounts other than earnings generated in current period are translated into RMB at the appropriate historical rates. Revenues, expenses, gains and losses are translated into RMB using the average exchange rates for the relevant period. The resulting foreign currency translation adjustments are recorded as a component of accumulated other comprehensive income/loss in the consolidated statement of changes in invested deficit and a component of other comprehensive income in the consolidated statement of operations and comprehensive (loss)/income. |
Convenience translation | (e) Convenience translation Translations of the consolidated balance sheet, the consolidated statement of operations and comprehensive loss and the consolidated statement of cash flows from RMB into US$ as of and for the year ended December 31, 2018 are solely for the convenience of the readers and were calculated at the rate of US$1.00=RMB6.8755, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 31, 2018. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2018, or at any other rate. |
Cash and cash equivalents | (f) Cash and cash equivalents Cash and cash equivalents consist of cash on hand, time deposits, and funds held in deposit accounts with banks, which are highly liquid and have original maturities of three months or less and are unrestricted as to withdrawal or use. All cash and cash equivalents are denominated in RMB and held in PRC. The Group adopted ASU 2016‑18, statement of cash flows (Topic 230): Restricted Cash, using a retrospective method to each period presented. The changes in restricted time deposits in the consolidated cash flow were nil and RMB5 million for the years ended December 31, 2016 and 2017 respectively, which were no longer presented within investing activities and were retrospectively included in the changes of cash, cash equivalents and restricted time deposits as required. |
Restricted time deposits | (g) Restricted time deposits Cash and time deposits that are restricted as to withdrawal for use or pledged as security is reported separately as restricted time deposits. Cash and term deposits that are restricted as to withdrawal or use for other than current operations is classified as non‑current. The restricted time deposits primarily represent (i) Time deposits securing the Group’s short-term borrowings from financial institutions. The short-term borrowings are designated to support the Group’s general operation and could not be used to fund the Group’s financing receivables. (ii) Cash received via consolidated trusts that has not yet been distributed. |
Short-term investments | (h) Short‑term investments The Group invested in certain financial instruments with variable interest rates indexed to the performance of underlying assets or principal not guaranteed with certain financial institutions. These financial instruments had maturity dates within one year and classified as short‑term investments. The Company elected the fair value method at the date of initial recognition and carried these investments subsequently at fair value. Fair value is estimated based on quoted prices of similar financial products provided by the banks at the end of each period. Changes in the fair value are reflected in the consolidated statements of comprehensive (loss)/income as “other income/(loss), net”. |
Fair value measurement | (i) Fair value measurement 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 time deposits, short‑term investments, accounts receivable, 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 third-party commercial banks or consumer finance companies, the Group initially accounts for financial guarantee provided to the commercial banks or consumer finance companies at fair value taking into account the expected default rates (Note 2R). The Group uses significant unobservable inputs to measure the fair value of these guarantee liabilities (Level 3). 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 carrying value of guarantee liability approximates fair value as the guarantee liability is measured at the higher of ASC 460 and ASC 450 component and ASC 450 component reflects the expected payout. Fair value measurements on a non-recurring basis The Group measures certain financial assets, including the long-term investments at fair value on a non-recurring basis only if an impairment charge were to be recognized. 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. |
Financing receivables, net | (j) Financing receivables, net Nature of the financing receivables and the related funding sources The Group generates financing receivables by providing the following: (1) point‑of‑sale installment services to users of third‑party online travel websites and other e‑commerce websites (the “Business Partners”), where the Group’s main funding sources include (a) the borrowings obtained via the peer‑to‑peer matching services provided by Lerong Duoyuan Information Technology Co., Ltd, which matches the Group with third party individual investors, or the borrowings obtained from other financial partners, and alternatively (b) proceeds from third‑party investors of asset‑backed securitized debt issued by securitization vehicles consolidated by the Group. (c) the borrowing obtained via an individual lender. (d) the borrowing obtained via a shareholder. (2) personal and business installment loans to borrowers which are financed via securitization vehicles in the form of trust arrangements, where the Group’s funding source include the proceeds from third‑party investors of tranches of trust units issued by trust arrangements consolidated by the Group. The Group has the intent and the ability to hold such financing receivables for the foreseeable future or until maturity or payoff. Financing receivables are measured at amortized cost, net of any charge‑offs, and the allowance that reflects the Group’s best estimate of the amounts that will not be collected. The receivable portfolio consists of the financing receivables with the term periods ranging from 30 days to 24 months. (1)(a) On‑balance sheet: Point‑of‑sale financing receivables funded by individual investors via peer to peer matching services provided by Lerong Duoyuan Information Technology Co., Ltd (“Jimu Box”) or by other financial partners. The financing installment receivables due from users of the Business Partners are resulted from the point‑of‑sale installment services provided by the Group to these users (note 2(r)(ii)) who made purchases from the Business Partners. When a user, who qualifies for point‑of‑sale installment services makes an online purchase using a point‑of‑sale installment loan, the Group pays the sales price to the business partner and collects the sales price from the Business Partner’s user with interest and fees. Upon paying the sales price to the business partners, the Group promptly obtains financing for the sales price paid by factoring the receivable due from the Business Partners’ user. Pursuant to ASC 860‑10‑15‑4, the factoring arrangement of the receivable does not satisfy the criteria of financial asset de‑recognition because the Group has a commitment to make monthly repayments. Accordingly, the Group does not derecognize the receivable from users upon factoring and accounts for the transaction as secured borrowings. Accordingly, the financing receivables due from the users of the Business Partners and the loan payables to the third party individual investors matched with the Group via Jimu Box and the loan payables to other financial partners are recorded on the Group’s consolidated balance sheet as financing receivables and funding debts, respectively. (1)(b) On‑balance sheet: Point‑of‑sale financing receivables funded by investors of asset‑backed securitized debts For certain financing receivables arising from the point‑of‑sale installment services to users of the Business Partners, the Group obtains financing from third‑party investors by issuing asset‑backed securitized debts via certain securitization vehicles in the forms of asset backed security arrangements (the “ABSs”) established by the Group during the year ended December 31, 2017 and 2018. The Group periodically securitizes its financing receivables due from users of the Business Partners through transferring those assets to the ABSs vehicles which then issues debt securities to third‑party investors. The ABSs vehicles are considered as variable interest entities under ASC 810. As the Group has power to direct the activities that most significantly impact economic performance of the ABSs vehicles by providing the loan servicing and default loan collection services, and the Group has the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE as the Group purchased all subordinated tranche securities, and the Group is obligated to purchase any loans that are delinquent for more than certain days, accordingly, the Group is considered as the primary beneficiary of the ABSs and has consolidated the ABSs’ assets, liabilities, results of operations, and cash flows in the Group’s consolidated financial statements in accordance with ASC 810. Accordingly, the financing receivables due from the users of the Business Partners and the loan payables to the third party investors of asset‑backed securitized debts are recorded on the Group’s consolidated balance sheet as financing receivables and funding debts, respectively. As of December 31, 2018, the financing receivables due from the users of the Business Partners and the loan payables to the third party investors of asset-backed securitized debts were nil. (1)(c) On-balance sheet: Point-of-sale financing receivables funded by an individual lender Shenzhen Minheng, as one of subsidiaries of the Group, entered into a loan agreement with an individual person (‘‘Lender’’) in January 2018 and a supplementary loan agreement in March 2018. Pursuant to which, during the year ended December 31, 2018, the Group borrowed unsecured RMB denominated loans from this Lender, amounted to RMB563,979 aggregately, with an interest rate of approximately 10.3% for the term of up to one year. The loans were used for early repayment of loan payables to third party individual investors matched with the Group via Jimu Box. As a result of the repayments of RMB563,979 made to the Lender, the remaining outstanding balance as of December 31, 2018 was nil. (1)(d) On-balance sheet: Point-of-sale financing receivables funded by a shareholder On July 14, 2018, Shenzhen Minheng, as one of subsidiaries of the Group, entered into a separate loan agreement with Xijin (Shanghai) Venture Capital Management Co., Ltd (‘‘Xijin’’)., which is one shareholders of the Group. The loan has a principal amount of RMB70,000 (US$10,181), an annual interest rate of 10.3%, and a term of one year. Shenzhen Minheng then entered into a second loan with Xijin on the same terms for additional RMB120,000. The Group planned to use the proceeds of these loans, together with cash on hand, to repay the balance of the loan which the Group borrowed from the individual lender mentioned in (1)(c). As of July 27, 2018, the Group used the proceeds to repay the all of remaining outstanding loan balance to the individual lender, with an aggregate amount of RMB423,000. In August 2018, Shenzhen Minheng and Xijin entered into a supplementary agreement (“1st supplementary agreement”) which changed the maturity date of the loans to December 31, 2018, and changed the interest rate of the loans, retroactive to the first date of each loan, to 0.6%. As of December 31, 2018, the Group repaid the principal amount of RMB68,313 to Xijin, while, the remaining outstanding balance as of December 31, 2018 was RMB121,687. In addition, Shenzhen Minheng and Xijin entered into another supplementary agreement (“2nd supplementary agreement”) which changed only the maturity date for both loans from December 31, 2018 to May 15, 2019. (2) On‑balance sheet: Personal and business financing receivables funded by third party investors of trusts arrangements For certain personal and business installments loans which are not funded via the peer‑to‑peer matching services provided by Jimu Box which matches the borrowers with third party individual, investors, they were alternatively funded by investors of certain trust arrangements (the “Trusts”) established during the year ended December 31, 2017 and 2018. The Group established business relationships with trusts which were administered by third‑party trust companies. The Trusts were set up to invest in loans personal and business installments loans recommended by the Group. The Trusts are considered as variable interest entities under ASC 810. As the Group has power to direct the activities that most significantly impact economic performance of the Trusts by providing the loan servicing and default loan collection services, and the Group has the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE as the Group purchased all subordinated tranche of trust units, and the Group is obligated to repurchase any loans that are delinquent for more than certain days, accordingly, the Group is considered as the primary beneficiary of the Trusts and has consolidated the Trusts’ assets, liabilities, results of operations, and cash flows in the Group’s consolidated financial statements in accordance with ASC 810. Accordingly, the financing receivables due from the borrowers of the personal and business installment loans and the loan payables to the third party investors of the trust units are measured at amortized cost and recorded on the Group’s consolidated balance sheet as financing receivables and funding debts, respectively. Accrued interest receivable Accrued interest income on financing receivables is calculated based on the contractual interest rate of the loan and recorded as installment service fees 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 as of such date. The Group does not resume accrual of interest after a loan has been placed on non‑accrual basis. The Company charges off the accrued interest receivable against the related allowance when management determines that full repayment of a loan is not probable. Generally, charge-off occurs after the 90th day of delinquency. All accrued but unpaid interest as of such date is charged off against the allowance for credit loss. The primary factor in making such determination is the assessment of potential recoverable amounts from the delinquent debtor. Nonaccrual financing receivables and charged‑off financing receivables The Group considers a th day of delinquency. Installment service fees for nonaccrual financing receivables is recognized upon the collection of cash. |
Accounts receivable, net | (k) Accounts receivable, net Accounts receivables are stated at the historical carrying amount net of the allowance for doubtful accounts. The Group reviews the accounts receivable on a periodic basis and makes allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual accounts receivable balances, the Group considers several factors, including the age of the balance, the customer’s payment history, and current credit worthiness, and current economic trends. Accounts receivable balances are charged off after 90 th day of delinquency. |
Long-term investments | (l) Long‑term investments Long‑term investments represent the Group’s investments in privately held companies. In accordance with ASC 323 “Investment‑Equity Method and Joint Ventures”, the Group applies the equity method of accounting to equity investments, in common stock or in‑substance common stock, 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 its investment at cost. The difference between the cost of the equity investment and the amount of the underlying equity in the net assets of the equity investee is recognized as equity method goodwill or as an intangible asset as appropriate, which is included in the equity method investment on the consolidated balance sheets. The Group subsequently adjusts the carrying amount of the investment to recognize the Group’s proportionate share of each equity investee’s net income or loss into consolidated statements of comprehensive loss after the date of acquisition. For long‑term investments in equity securities that are not accounted for using equity method of accounting, and that have no readily determinable fair value, the cost method of accounting is used. The Group assesses its long‑term investments accounted for under the cost method and equity method for other‑than‑temporary impairment by considering factors including, but not limited to, current economic and market conditions, operating performance of the companies, including current earnings trends and undiscounted cash flows, and other company‑specific information, such as recent financing rounds. The fair value determination, particularly for investments in privately‑held companies whose revenue model is still evolving, requires significant judgment to determine appropriate estimates and assumptions. Changes in these estimates and assumptions could affect the calculation of the fair value of the investments and the determination of whether any identified impairment is other‑than‑temporary. If any impairment is considered other‑than‑temporary, the Group will write down the asset to its fair value and take the corresponding charge to the consolidated statements of comprehensive loss. |
Property, equipment and software, net | (m) Property, equipment and software, net Property, equipment and software are recorded at cost, less accumulated depreciation and impairment. Depreciation of property and equipment and amortization of software is calculated on a straight‑line basis, after consideration of expected useful lives and estimated residual values. The Group has not recorded any impairments of property, equipment or software for the period presented. The estimated useful lives of these assets are generally as follows: Estimated Category useful life Office furniture and equipment 3 - 5 years Computer and electronic equipment 3 - 5 years Software 5 years Repairs and maintenance costs are charged to expenses as incurred, whereas the costs of renewals and betterment that extend the useful lives of property, equipment and software are capitalized as additions to the related assets. Gains and losses from the disposal of property, equipment and software are the differences between the net sales proceeds and the carrying amounts of the relevant assets and are recognized in the consolidated statements of operations and comprehensive loss. |
Intangible assets, net | (n) Intangible assets, net The Group performs valuation of the intangible assets arising from business combination to determine the relative fair value to be assigned to each asset acquired. The acquired intangible assets are recognized and measured at fair value and are amortized using the straight‑line approach over the estimated economic useful lives of the assets. |
Goodwill | (o) Goodwill Goodwill represents the excess of the purchase price over fair value of the identifiable assets and liabilities acquired in a business combination. Goodwill is not depreciated or amortized but is tested for impairment on an annual basis as of December 31 and in between annual tests when an event occurs or circumstances change that could indicate that the asset might be impaired. In accordance with the FASB guidance on ''Testing of Goodwill for Impairment,'' the Company first has the option to assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company decides, as a result of its qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is mandatory. Otherwise, no further testing is required. The quantitative impairment test consists of a comparison of the fair value of each reporting unit with its carrying amount, including goodwill. A goodwill impairment charge will be recorded for the amount by which a reporting unit’s carrying value exceeds its fair value, but not to exceed the carrying amount of goodwill. Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units and determining the fair value of each reporting unit. The judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit. No impairment of goodwill was recognized for the year ended December 31, 2017 and 2018. |
Impairment of long-lived assets | (p) Impairment of long‑lived assets The Group evaluates its long‑lived assets with finite lives 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 amount of an asset may not be fully recoverable. When these events occur, the Group evaluates the impairment by comparing carrying amount 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 amount of the assets, the Group recognizes an impairment loss based on the excess of the carrying amount of the long‑lived assets over their fair value. No impairment of long‑lived assets was recognized for the years ended December 31, 2017 and 2018. |
Funding Debts | (q) Funding Debts The proceeds received from individual investors, other financial partners, investors of the asset‑backed securitized debts or the consolidated trusts and a shareholder to fund the Group’s on‑balance sheet financing receivables, are recorded as funding debts on the consolidated balance sheets. Accrued interest payable is calculated based on the contractual interest rates of the funding debts. |
Financial Guarantee liabilities | ( r) Financial Guarantee liabilities For the off-balance sheet loans funded by a financial partner, the Group is obligated to compensate the financial partner for the principal and interest repayment of the defaulted loans in the event of borrowers’ default. If a borrower is one day delinquent on an installment of principal and interest of a loan, the Group will repurchase the delinquent installment of principal and interest from the financial partner. Therefore, the Group effectively provides guarantees to the financial partner that include credit risk. The Group is required to record the repurchase obligations in accordance with ASC 460. Accordingly, the liabilities are measured at their fair value at inception. Therefore, the liability recorded based on ASC 460 is determined on a loan by loan basis. As stated in ASC 460-10-35-1, the guarantee liability should generally be reduced by recording a credit to net income as the guarantor is released from the underlying guaranteed risk i.e., as the loan is repaid by the borrower or when the investor is compensated in the event of a default. As the risk is reduced as each payment is made, a systematic and rational amortization method based on when the payments are made may be appropriate. As the risk of the guarantee liability is reduced, it is recognized into the income statement by a systematic and rational amortization method, e.g. over the term of the loan, within the “gain from the financial guarantee liabilities” line item of the income statement. For the years ended December 31, 2016, 2017 and 2018, the amount of gains recorded were nil, nil and RMB21.4 million (US$3.1 million), respectively. Subsequent to initial recognition, the repurchase obligations are measured at the greater of the amount determined based on ASC 460 and the amount determined based on ASC 450. In accordance with ASC 450, a contingent liability determined based on historical default rates, representing the obligation to make future payouts, measured using the guidance in ASC 450 Contingencies. The ASC 450 contingent component is determined on a loan by loan basis, but considers the actual and expected performance of the pool when estimating the contingent liability. If there is no difference between the ASC 460 component and ASC 450 component, no gain or loss is recorded. |
Revenue recognition | (s) Revenue recognition The Group is principally engaged in providing lending solutions through its online technology platform. The Group earns its revenues by providing the following: (i) A lending solution which assists borrowers obtain loans from third party investors and certain financial partners. The Group facilitates the loan origination process and provides on‑going loan servicing but does not loan money. For these services, the Group earns technical service fees. (ii) A lending solution for borrowers who want to finance their on‑line purchases from third parties (“Business Partners”) or who have personal or business installment loan requests. The Group provides financing for these borrowers and earns installment service fees (comprising interest). (iii) A wealth management solution and insurance solution for asset management and insurance companies respectively to facilitate the sale of their products. The Group earns a wealth management fee and insurance service fee (a commission on financial products sold by these asset management and insurance companies to their customers). The Group is not a party to the financial products sold. (i) Lending solution to assist borrowers to obtain loans Loan origination assistance and on‑going loan servicing addresses credit needs for individual borrowers, sole proprietors, and small and medium enterprises (“SMEs”). The Group facilitates the borrowing from third parties by entering into service agreements with the borrowers and the Group’s financial partners which include peer‑to‑peer lending platforms, commercial banks and other financial institutions. Pursuant to a financing service agreement, the Group provides an online credit assessment and post‑lending management services to borrowers or certain financial partners. For these services, which are provided using credit data analysis and machine learning technologies, the Group earns technical service fees. The Group does not provide loans to the borrowers. For the years ended December 31, 2016, 2017 and 2018, the majority of lending solutions were provided in collaboration with a peer‑to‑peer lending platform of Jimu Parent, who both enter into the service agreement with the borrowers. The service fees earned from the borrowers are allocated between the Group and Jimu Parent based on relative fair values of services provided that have been mutually agreed between the two parties. For the lending solutions were provided in collaboration with certain financial partners, including commercial banks and other financial institutions, the Group provides intermediary services to both the borrowers and commercial banks and other financial institutions. The intermediary services provided include online credit assessment and post lending management services to the borrowers and the commercial banks and other financial institutions. For these transactions, the Group earns online credit assessment and post-lending management service fees from the commercial banks and other financial institutions. (ii) Lending solution for borrowers to finance on‑line purchases/personal and business installment loans The lending solution for borrowers addresses the credit needs of the users of third‑party online travel websites and other e‑commerce websites (“Business Partners”) to finance their on‑line purchases, or the credit needs of personal and business installment loans. Some of the Business Partners’ customers require immediate installment financing for their on‑line purchases. For credit worthy users, the Group offers installment financing (“point‑of‑sale installment service”). When a user, who qualifies for point‑of‑sale installment services makes an online purchase using a point‑of‑sale installment loan, the Group pays the sales price to the Business Partners and collects the sales price from the Business Partners’ users with interest and fees. Upon paying the sales price to the Business Partners, the Group promptly obtains financing for the sales price paid by factoring the receivable due from the Business Partners’ users. The Group may subsequently factor the receivables to individual investors on the Jimu Box or to other financial partners. Pursuant to ASC 860‑10‑15‑4, the factoring arrangement of the financing receivable due from users of Business Partners or borrowers does not satisfy the criteria of financial asset de‑recognition because the Group has a commitment to make monthly repayments. Accordingly, the Group does not derecognize the receivable from users upon factoring and accounts for the transaction as secured borrowings. For the year ended December 31, 2017, the majority of borrowings were obtained by the Group via the peer‑to‑peer matching services provided by Lerong Duoyuan Information Technology Co., Ltd, which matches the Group with third party investors. For the year ended December 31, 2018, the majority of borrowings were funded by third-party investors of asset-backed securitized debt issued by securitization vehicle consolidated by the Group and trust arrangement consolidated by the Group, an individual lender and a shareholder. The installment receivables due from the Business Partners’ customers and the loan payables to the third party individual investors and the loan payables to other financial partners are recorded on the Group’s consolidated balance sheets as financing receivables and funding debts, respectively. The Group also periodically securitizes its financing receivables arising from users of Business Partners through the transfer of those assets to securitization vehicles. The securitization vehicles are considered as consolidated variable interest entities under ASC 810. Therefore, the financing receivables are recorded as financing receivables in the consolidated balance sheets. The personal and business installment loans may be funded via trust arrangements, which are also considered as consolidated variable interest entities under ASC 810. As a result, the installment receivables due from borrowers, generated from personal and business installment loans are also recorded as financing receivables in the consolidated balance sheets. The Group recognizes installment service fees over the terms of the financing receivables using the effective interest rate method. The proceeds from third party individual investors, investors of asset‑backed securitized debts and investors of the consolidated trusts , an individual lender and a shareholder are recorded as funding debts. (see also note 2(j)) (iii) Wealth management solution and insurance solution For the wealth management solution business, the Group operates online mutual fund marketplace and online insurance product marketplace platforms to enable asset management companies and insurance companies to offer and sell their mutual fund products and insurance products to their customers. The Group earns transaction service commissions from the asset management companies and the insurance companies (“wealth management service fee and others”). The Group does not operate or manage any mutual funds or insurance companies. Consistent with the criteria of ASC 605, Revenue Recognition, the Group recognizes revenues when the following four revenue recognition criteria are met: 1) Persuasive evidence of an arrangement exists; 2) Services have been rendered; 3) Pricing is fixed or determinable; and, 4) Collectability is reasonably assured. Revenue recognition policies for each type of service are discussed as follows: Technical service fees The Group earns technical service fees by providing online credit assessment services and post-lending management services, such as cash processing services and collection services to borrowers or certain financial partners, including commercial banks and other financial institutions. The Group has determined that the arrangement to provide technical services to borrowers and commercial banks and other financial institutions contains the following multiple elements: online credit assessment services and post‑lending management services. The Group has determined that the borrowers and commercial banks and other financial institutions are its customers. The Group allocates the technical service fees among the deliverables at the inception of the arrangement on the basis of their relative selling prices according to the selling price hierarchy established by ASC 605‑25‑30. The hierarchy requires the Group to first use vendor‑specific objective evidence of selling price, if it exists. If vendor‑specific objective evidence of selling price does not exist, the Group is then required to use third‑party evidence of selling price. If neither vendor‑specific objective evidence of selling price nor third‑party evidence of selling price exists, the Group uses management’s best estimate of selling price for the deliverables. The Group uses management’s best estimate of selling price for the deliverables of the technical service fees. Revenue from Online credit assessment and post-lending management service from borrowers via Jimu Box The Group can only charge the technical service fees from the borrowers upon the successful matching of the loans by a financial partner. The non‑contingent portion of the selling price is collected upfront, if any, upon the loan matching, and the contingent portion of the selling price is collected over the term of the loans when the monthly repayment occurs. As the borrowers are able to prepay the loan amounts before maturity date for a prepayment fee, the aggregate amount of the contingent portion of the fees that can ultimately collected by the Group for online credit assessment service and post‑lending management service earned from a loan transaction is dependent upon the actual term over which the borrowers made their loan repayments. In accordance with ASC 605‑25‑30‑5, the amount allocated by the Group to the delivered credit assessment service is limited to that amount that is not contingent upon the delivery of additional units or meeting other specified performance conditions. Therefore, the non‑contingent portion of the credit assessment service fees are recognized revenue upon cash collection and execution of loan agreements between financial partners and borrowers. In situations where the upfront cash collected is less than the relative selling price of the credit assessment service, the remaining contingent portion of the credit assessment fees, together with the fees allocated to post‑lending management services, are recognized each month when the service is provided over the period of the loan as the monthly repayments occur. Prepayment fees charged by the Group are recognized when the prepayment occurs and the payments are made by the borrowers. The Group also charges fees for collection services related to defaulted payments. These fees are recognized when the contingent events occur and the payments are made by the borrowers as that is the point in time collectability is reasonably assured. Revenue from loan facilitation and post-origination service from financial partners For the off-balance sheet loans funded by certain financial partners such as third-party commercial banks or other financial institutions, the Group does not record financing receivables arising from these loans nor loans payable to the commercial banks or other financial institutions. For these transactions, the Group earns loan facilitation and post-origination service fees from these certain financial partners. The Group provides intermediary services to both the borrowers and the commercial banks or other financial institutions. The intermediary services provided include (1) loan facilitation and online credit assessment services, (2) post-origination services (i.e. account maintenance, and collection) to the borrowers and the commercial banks or other financial institutions, and (3) a financial guarantee to the commercial banks or other financial institutions. The Group determined that the financial guarantee is within the scope of ASC 460 and recorded it at fair value at inception, with the remaining consideration recognized as revenues under ASC 605-25. Under the off-balance sheet loan arrangements, service fees for loan facilitation and online credit assessment and post-origination services are charged and collected through deduction from the monthly repayments from the borrowers to the commercial banks or financial institutions, and no fees are collected upfront. While the loan facilitation and online credit assessment services are rendered upfront, the amount allocable to these services based on relative selling prices is limited to nil under ASC 605-25-30-5, because all fees are contingent on ongoing servicing as well as the borrowers not prepaying. In considering that, the revenue is recognized each month when the fee is received over the terms of the loans as the monthly repayments occur in line with the resolution of the contingency. Installment service fee The Group generates installment service fee revenue through the point‑of‑sale installment payment services that the Group provides to the users of the Business Partners’ platforms or the provision of personal and business installment loans to borrowers through trusts arrangements. Installment service fee revenue is recognized over the terms of financing receivables using the effective interest rate method. Installment service fee revenue is not recorded when reasonable doubt exists as to the full, timely collection of installment service fee or principal. The Group also receives miscellaneous fees, such as penalty fees for late payments. The fees, which are contingent fees, are recognized when the event occurs and the payment is made by the customer as that is the point in time collectability is reasonably assured. Wealth management service fee and others The wealth management service fee and others primarily consists of commission fees charged to third-party asset management companies and insurance companies for their use of the Group's online wealth management platform and online insurance platform. The Group is not the primary obligor, as it does not have the ability to establish the price or control the related content of the investment or insurance products offered on the online wealth management platform and online insurance platform, respectively. Such commissions are generally determined as a percentage based on the fees charged to customers by the asset management companies and insurance companies, through the online wealth management platform and online insurance platform. Transaction service commissions are recognized on a net basis when the services are rendered, which occurs when the underlying transaction is executed. |
Funding cost | (t) Funding cost Funding cost mainly consists of interest expense the Group pays in relation to the funding debts, to fund its financing receivables and certain fees incurred in connection with obtaining these funding debts, such as origination and management fees and legal fees. |
Provision for credit loss | (u) Provision for credit loss The allowance for loan losses is determined at a level believed to be reasonable to absorb probable losses inherent in the portfolio of the financing receivables as of each balance sheet date. The allowance is provided based on the Company’s assessments performed both on an individual‑loan basis and collective basis. For individual loans that are past due for 90 days or where there is an observable indicator of impairment, a specific allowance is provided. All other loans not already included in the individual assessment are assessed collectively depending on factors such as delinquency rate, size, and other risk characteristics of the portfolio. The Company estimates the expected credit losses rate based on delinquency status of the financing receivables within the level: current, 1 to 30, 31 to 60, 61 to 90 calendar dates past due. These loss rates in each delinquency status are based on average historical loss rates of financing receivables associated with each of the abovementioned delinquency categories. In addition, the Company considers other general economic conditions, if any, when determining the provision for credit losses. The expected loss rates will be applied to the outstanding loan balances to determine the allowance for credit loss for each reporting period. The Company evaluates and adjusts its allowance for loan losses on a quarterly basis or more often as necessary. The Company charges off the financing receivables against the related allowance when management determines that full repayment of a loan is not probable. Generally, charges off occurs after the 90 th day of delinquency. The primary factor in making such determination is the assessment of potential recoverable amounts from the delinquent debtor. |
Origination and servicing cost | (v) Origination and servicing cost Origination and servicing cost mainly consists of costs that are paid for data used in credit assessments, users acquisition costs relating to revenue from lending solutions, salaries and benefits (including share‑based compensation expenses) of employees engaged in providing collection services, bandwidth and data center costs, customer service support costs and fees paid to third‑party payment channels. |
Sales and marketing expenses | (w) Sales and marketing expenses Sales and marketing expenses consist primarily of salaries and benefits (including share‑based compensation expenses) of sales department, advertising and marketing promotion expenses and other expenses incurred by the Group’s sales and marketing personnel. |
General and administrative expenses | (x) General and administrative expenses General and administrative expenses consist primarily of salaries and benefits (including share‑based compensation expenses) and related expenses for employees involved in general corporate functions, including finance, legal and human resources, rental fees and professional fees. |
Research and development expenses | (y) Research and development expenses Research and development expenses consist primarily of salaries and benefits (including share‑based compensation expenses) of employees and related expenses for IT professionals involved in developing technology platforms and websites, server and other equipment depreciation, bandwidth and data center costs, and rental fees. All research and development costs have been expensed as incurred as the costs qualifying for capitalization have been insignificant. |
Share-based compensation expenses | (z) Share‑based compensation expenses All share based awards granted to employees, including restricted ordinary shares and share options, are measured at fair value on grant date. Share based compensation expense is recognized using the straight line method or graded vesting method, net of estimated forfeitures, over the requisite service period, which is the vesting period. Prior to the Reorganization, all the options and restricted ordinary shares were granted by Jimu Parent with its own underlying shares. The Binomial option pricing model is used to estimate fair value of the share options and restricted ordinary shares. The determination of estimated fair value of share based payment awards on the grant date using an option pricing model is affected by the fair value of Jimu Parent’s ordinary shares as well as assumptions regarding a number of complex and subjective variables. These variables include the expected value volatility of Jimu Parent’s shares over the expected term of the awards, actual and projected employee share option exercise behaviors, a risk free interest rate and any expected dividends. Shares of Jimu Parent, which do not have quoted market prices, were valued based on the income approach. Determination of estimated fair value of Jimu Parent’s shares requires complex and subjective judgments due to their limited financial and operating history, unique business risks and limited public information on companies in China similar to Jimu Parent. 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 pre-vesting option and records share based compensation expenses only for those awards that are expected to vest. In connection with the Reorganization and as a result of the anti-dilution provision in the option plan and agreement regarding the options issued by Jimu Parent, all the options to purchase the underlying Pintec ordinary shares were issued by the Company as of March 27, 2018. In accordance with ASC 718, exchanges of share options or other equity instruments or changes to their terms in conjunction with an equity restructuring (i.e. the Reorganization) are modifications of the share options and that the accounting for a modification in conjunction with an equity restructuring requires a comparison of the fair value of the modified awards with the fair value of the original award immediately before the modification in accordance with ASC 718. With respect to the Pintec options and Jimu Parent options held by the employees of the Group, the Group determined to recognize share based compensation expense in its consolidated financial statements the remaining unrecognized compensation cost pertaining to the unvested options of Jimu Parent which are retained by the employees of the Company, in addition to the cost pertaining to the unvested options issued by the Company to its employees in connection with the equity restructuring. Incremental fair value, if any, for unvested awards would be recognized prospectively in the consolidated financial statements of the Company in accordance with ASC 718. After the completion of reorganization, all the options were granted by the Company with its own underlying shares. The Group accounts for share-based awards granted to its employees in accordance with ASC 718. For share options for the purchase of ordinary shares granted to employees determined to be equity classified awards, the related share-based compensation expenses are recognized in the consolidated financial statements based on their grant date fair values which are calculated using the binomial option pricing model. The determination of the fair value is affected by the share price as well as assumptions regarding a number of complex and subjective variables, including the expected share price volatility, actual and projected employee share option exercise behavior, risk-free interest rates and expected dividends. For share options granted with service condition and the occurrence of an IPO as performance condition, share-based compensation expenses are recorded net of estimated forfeitures using graded-vesting method during the requisite service period. Cumulative share-based compensation expenses for the options that have satisfied the service condition, amounting to RMB94.8million, were recorded upon the completion of the IPO. The Company’s share-based awards granted to employees of the Jimu Parent should be recognized as a deemed dividend from the Group to Jimu Parent at the fair value determined as of the grant date. |
Fair value of Pre-IPO Preferred Shares and Pre-IPO Class A Ordinary Shares | (aa) Fair value of Pre-IPO Preferred Shares and Pre-IPO Class A Ordinary Shares Shares of the Company, which do not have quoted market prices, were valued based on the income approach. The income approach involves applying the discounted cash flow analysis based on projected cash flow using the Group's best estimate as of the valuation dates. Estimating future cash flow requires the Group to analyze projected revenue growth, gross margins, effective tax rates, capital expenditures and working capital requirements. In determining an appropriate discount rate, the Group considered the cost of equity and the rate of return expected by venture capitalists. The Group also applied a discount for lack of marketability given that the shares underlying the award were not publicly traded at the time of grant. Determination of estimated fair value of the Group requires complex and subjective judgments due to its limited financial and operating history, unique business risks and limited public information on companies in China similar to the Group. Option-pricing method was used to allocate enterprise value to preferred shares and ordinary shares. The method treats preferred shares and ordinary shares as call options on the enterprise's value, with exercise prices based on the liquidation preference of the preferred shares. The strike prices of the "options" based on the characteristics of the Group's capital structure, including number of shares of each class of ordinary shares, seniority levels, liquidation preferences, and conversion values for the preferred shares. The option-pricing method also involves making estimates of the anticipated timing of a potential liquidity event, such as a sale of the Group or an initial public offering, and estimates of the volatility of the Group's equity securities. The anticipated timing is based on the plans of board of directors and management of the Group. Estimating the volatility of the share price of a privately held company is complex because there is no readily available market for the shares. Volatility is estimated based on annualized standard deviation of daily stock price return of comparable companies. |
Leases | (bb) Leases Leases where substantially all the rewards and risks of ownership of assets remain with the lessor are accounted for as operating leases. Rental expense is recognized from the date of initial possession of the leased property on a straight-line basis over the term of the lease. Certain lease agreements contain rent holidays, which are recognized on a straight-line basis over the lease term. Lease renewal periods are considered on a lease-by-lease basis and are generally not included in the initial lease terms. |
Taxation | (cc) Taxation Income taxes Current income taxes are provided on the basis of net (loss)/income for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred income taxes are recognized for temporary differences between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements, net operating loss carry forwards and credits. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided in accordance with the laws of the relevant taxing authorities. Deferred tax assets and liabilities are measured using enacted rates expected to apply to taxable income in which temporary differences are expected to be reversed or settled. The effect on deferred tax assets and liabilities of changes in tax rates is recognized in the statement of comprehensive income (loss) in the period of the enactment of the change. The Group considers positive and negative evidence when determining whether a portion or all of its deferred tax assets will more likely than not be realized. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of statutory carry‑forward periods, its experience with tax attributes expiring unused, and its tax planning strategies. The ultimate realization of deferred tax assets is dependent upon its ability to generate sufficient future taxable income within the carry‑forward periods provided for in the tax law and during the periods in which the temporary differences become deductible. When assessing the realization of deferred tax assets, the Group has considered possible sources of taxable income including (i) future reversals of existing taxable temporary differences, (ii) future taxable income exclusive of reversing temporary differences and carry‑forwards, (iii) future taxable income arising from implementing tax planning strategies, and (iv) specific known trend of profits expected to be reflected within the industry. The Group 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 In order to assess uncertain tax positions, the Group applies a more-likely-than-not threshold and a two-step approach for the tax position measurement and financial statement recognition. Under the two-step approach, the first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more-likely-than-not that the position will be sustained, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likelihood of being realized upon settlement. The Group recognizes interest and penalties, if any, under accrued expenses and other current liabilities on its consolidated balance sheets and under income tax expenses in its consolidated statements of operations and comprehensive loss. The Group did not have any significant unrecognized uncertain tax positions as of and for the years ended December 31, 2016, 2017 and 2018. The Group also did not expect any significant increase or decrease in unrecognized tax liability within 12 months following the reporting date. Value added Tax (“VAT”) The Group is subject to VAT at the rate of 6% depending on whether the entity is a general tax payer, and related surcharges on revenue generated from providing services. Entities that are VAT general taxpayers are allowed to offset qualified input VAT, paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded in the line item of tax payable on the face of balance sheet. The Group records revenue net of value added tax and related surcharges. |
Segment reporting | (dd) Segment reporting The Group’s chief operating decision maker, the Chief Executive Officer, reviews the consolidated results when making decisions about allocating resources and assessing performance of the Group as a whole and hence, the Group has only one reportable segment. The Company does not distinguish between markets or segments for the purpose of internal reporting. The Group’s long‑lived assets are substantially all located in the PRC and substantially all of the Group’s revenues are derived from within the PRC. Therefore, no geographical segments are presented. |
Related parties | (ee) Related parties Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or significant influence, such as a family member or relative, shareholder, or a related corporation. |
Loss per share | (ff) Loss per share Loss per share is computed in accordance with ASC 260. The two-class method is used for computing earnings per share in the event the Group has net income available for distribution. Under the two-class method, net income is allocated between ordinary shares and participating securities based on dividends declared (or accumulated) and participating rights in undistributed earnings as if all the earnings for the reporting period had been distributed. The Company’s Pre-IPO Preferred Shares are participating securities because they are entitled to receive dividends or distributions on an as-converted basis. Prior to the IPO, the computation of basic loss per share using the two-class method is not applicable as the Group is in a net loss position and net loss is not allocated to other participating securities because in accordance with their contractual terms they are not obligated to share in the losses. Basic net loss per share is computed using the weighted average number of ordinary shares outstanding during the period. Diluted net loss per share is computed using the weighted average number of ordinary shares and potential ordinary shares outstanding during the period. Potential ordinary shares include ordinary shares issuable upon the conversion of the Pre-IPO Preferred Shares, using the if-converted method, for periods prior to the completion of the IPO, and ordinary shares issuable upon the exercise of outstanding share options using the treasury stock method. The computation of diluted net loss per share does not assume conversion, exercise, or contingent issuance of securities that would have an anti-dilutive effect (i.e. an increase in earnings per share amounts or a decrease in loss per share amounts) on net loss per share. After the completion of the IPO, net loss per ordinary share is computed on Class A Ordinary Shares and Class B Ordinary Shares on the combined basis, because both classes have the same dividend rights in the Company’s undistributed net income. |
Statutory reserves | (gg) Statutory reserves In accordance with China’s Company Laws, the Company’s VIEs in the PRC must make appropriations from their after-tax profit (as determined under the accounting principles generally acceptable in the People’s Republic of China (“PRC GAAP”)) to non-distributable reserve funds including (i) statutory surplus fund and (ii) discretionary surplus fund. The appropriation to the statutory surplus fund must be at least 10% of the after-tax profits calculated in accordance with PRC GAAP. Appropriation is not required if the statutory surplus fund has reached 50% of the registered capital of the respective company. Appropriation to the discretionary surplus fund is made at the discretion of the respective company. Pursuant to the laws applicable to China’s Foreign Investment Enterprises, the Company’s subsidiary that is a foreign investment enterprise in China has to make appropriations from its after-tax profit (as determined under PRC GAAP) to reserve funds including (i) general reserve fund, (ii) enterprise expansion fund and (iii) staff bonus and welfare fund. The appropriation to the general reserve fund must be at least 10% of the 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 respective company. Appropriations to the other two reserve funds are at the respective companies’ 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, 2016, 2017 and 2018, profit appropriation to general reserve fund and statutory surplus fund for the Group’s entities incorporated in the PRC was approximately nil, nil and RMB1.7 million respectively. No appropriation to other reserve funds was made for any of the periods presented. |
Comprehensive income/(loss) | (hh) Comprehensive income/(loss) Comprehensive income/(loss) is defined to include all changes in equity/(deficit) of the Group during a period arising from transactions and other events and circumstances excluding transactions resulting from investments by shareholders and distributions to shareholders. Accumulated other comprehensive income/(loss), as presented on the consolidated balance sheets, consists of accumulated foreign currency translation adjustments. |
Recently issued accounting pronouncements | (ii) Recently issued accounting pronouncements The Group qualifies as an “emerging growth company”, or EGC, pursuant to the Jumpstart Our Business Startups Act of 2012, as amended, or the JOBS Act. As an EGC, the Group does not need to comply with any new or revised financial accounting standards until such date that a private company is otherwise required to comply with such new or revised accounting standards. In May 2014, the FASB issued ASU 2014-09 Revenue from Contracts with Customers (Topic 606), which will be effective for fiscal years, and interim periods within those years, beginning on or after January 1, 2018 for public companies. The guidance clarifies that revenue from contracts with customers should be recognized in a manner that depicts both the likelihood of payment and the timing of the related transfer of goods or performance of services. In March 2016, the FASB issued an amendment (ASU 2016-08) to the new revenue recognition guidance clarifying how to determine if an entity is a principal or agent in a transaction. In April (ASU 2016-10), May (ASU 2016-12), and December (ASU 2016-20) of 2016, the FASB further amended the guidance to include performance obligation identification, licensing implementation, collectability assessment and other presentation and transition clarifications. The effective date and transition requirements for this amendment is the same as those for the new revenue guidance. The Group will adopt this ASU on January 1, 2019 and the Group is currently in the process of assessing and quantity in the impact on its consolidated financial statements. In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, Leases, which specifies the accounting for leases. For operating leases, ASU 2016-02 requires a lessee to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in its balance sheet. The standard also requires a lessee to recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term, on a generally straight-line basis. In addition, this standard requires both lessees and lessors to disclose certain key information about lease transactions. ASU 2016-02 is effective for publicly traded companies for annual reporting periods, and interim periods within those years, beginning after December 15, 2018. The standard is effective for the Group beginning on January 1, 2020. Early adoption is permitted. The Group is currently evaluating the impact of adopting this standard on its consolidated financial statements. In June 2016, the FASB issued ASU 2016 13, "Financial Instruments—Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments", which will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years for public companies. The standard is effective for the Group beginning on January 1, 2021. The guidance replaces the incurred loss impairment methodology with an expected credit loss model for which a Group recognizes an allowance based on the estimate of expected credit loss. The Group is currently evaluating the impact of adopting this standard on its consolidated financial statements. In January 2017, the FASB issued Accounting Standards Update ("ASU") 2017 04, "Simplifying the Test for Goodwill Impairment." The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The guidance should be adopted on a prospective basis for the annual or any interim goodwill impairment tests beginning after December 15, 2019 for public companies. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Group early adopted the amendments from January 1, 2018 on a prospective basis. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which eliminates, adds and modifies certain disclosure requirements for fair value measurements. Under the guidance, public companies will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. The guidance is effective for all entities for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years, but entities are permitted to early adopt either the entire standard or only the provisions that eliminate or modify the requirements. The Group is currently in the process of evaluating the impact of the adoption of this guidance on its consolidated financial statements. |
Organization and principal ac_2
Organization and principal activities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization and principal activities | |
Schedule of ownership structure of the subsidiaries and VIEs | Date of incorporation/ acquisition Place of incorporation Percentage of direct or indirect economic interest Principal activities The Company: Pintec Technology Holdings Limited (“Pintec”) March 2, 2017 The Cayman Islands Investment holding Wholly owned subsidiaries: Sky City Holdings Limited (“Sky City BVI”) June 23, 2016 BVI Investment holding Sky City Hong Kong Limited (“Sky City HK”) August 17, 2016 Hong Kong Investment holding Sky City (Beijing) Technology Co., Ltd. (“Sky City WFOE”) December 22, 2016 The PRC Investment holding Next Hop Holdings Limited (“Next Hop BVI”) January 4, 2016 BVI Investment holding Next Hop Hong Kong Limited (“Next Hop HK”) January 20, 2016 Hong Kong Investment holding Pintec (Beijing) Technology Co., Ltd (“Pintec Beijing WFOE”) December 21, 2016 The PRC Investment holding Anxunying (Tianjin) Commercial Factoring Co., Ltd. ("Anxunying Tianjin") December 3, 2018 The PRC Lending solution business Pintec Solutions Pte. Ltd. ("Pintec Solutions") December 21, 2018 Singapore Lending solution business Pintec (Ganzhou) Technology Co.,Ltd ("Pintec Ganzhou") December 24, 2018 The PRC Lending solution business VIEs and VIEs’ subsidiaries (referred to as “Pintec Operating Entities”): Anquying (Tianjin) Technology Co., Ltd. (“Tianjin Anquying”) January 29, 2016 The PRC Lending solution business Shanghai Anquying Technology Co., Ltd. (“Shanghai Anquying”) November 16, 2015 The PRC Lending solution business Ganzhou Dumiao Intelligence Technology Co., Ltd (formerly known as Anquying (Ganzhou) Technology Co., Ltd.) (“Ganzhou Anquying”) May 27, 2017 The PRC Lending solution business Shenzhen Qianhai Minheng Commercial Factoring Co., Ltd. (“Shenzhen Minheng”) June 30, 2016 The PRC Lending solution business Beijing Hongdian Fund Distributor Co., Ltd. (“Beijing Hongdian”) April 13, 2015 The PRC Wealth management solution business Xuanji Intelligence (Beijing) Technology Co., Ltd. (“Beijing Xuanji”) May 31, 2016 The PRC Wealth management solution business Tianjin Xiangmu Asset Management Co., Ltd. (“Tianjin Xiangmu”) June 18, 2015 The PRC Wealth management solution business Pintec Jinke (Beijing) Technology Information Co., Ltd., (formerly known as Hezi (Beijing) Consultants Co., Ltd) (“Beijing Jinke”) January 3, 2017 The PRC Wealth management solution business Myfin Insurance Broker Co., Ltd (“Myfin Insurance”) December 17, 2015 The PRC Insurance solution business |
Schedule of expenses allocated from Jimu Parent | Share based For the year ended December 31, 2016: compensation Others Total RMB RMB RMB Cost of revenues 27 3,825 3,852 Sales and marketing expenses 1,986 33,458 35,444 General and administrative expenses 21,524 39,099 60,623 Research and development expenses 2,128 38,847 40,975 Total 25,665 115,229 140,894 Share based For the year ended December 31, 2018: compensation Others Total RMB RMB RMB Cost of revenues 214 366 580 Sales and marketing expenses 3,147 1,769 4,916 General and administrative expenses 28,945 4,747 33,692 Research and development expenses 4,190 5,309 9,499 Total 36,496 12,191 48,687 Share based For the year ended December 31, 2017: compensation Others Total RMB RMB RMB Cost of revenues 27 2,693 2,720 Sales and marketing expenses 2,470 15,745 18,215 General and administrative expenses 25,263 20,270 45,533 Research and development expenses 3,258 32,537 35,795 Total 31,018 71,245 102,263 |
Schedule of consolidated financial information of the VIEs directly attributable to the predecessor operations were included in Group's consolidated financial statements | As of December 31, 2017 2018 RMB RMB ASSETS Cash and cash equivalents 159,189 232,913 Restricted time deposits 5,000 7,033 Short-term investments 2,000 — Short-term financing receivables, net 1,506,179 742,117 Accrued interest receivable, net 7,637 11,052 Accounts receivable, net 36,556 47,148 Prepayments and other current assets 38,516 32,814 Amounts due from the Company and its subsidiaries 337,200 2,321,846 Amounts due from related parties 91,244 56,674 Total current assets 2,183,521 3,451,597 Long-term investments — 35,000 Long-term financing receivables, net 178,627 18,882 Property, equipment and software, net 4,506 4,819 Intangible assets, net 7,163 5,382 Goodwill 25,680 25,680 Deferred tax assets — 36,840 Total non-current assets 215,976 126,603 Total assets 2,399,497 3,578,200 LIABILITIES Short-term borrowings — 220,000 Short-term funding debts 1,220,884 679,957 Accrued interest payable 7,174 15,021 Accounts payable 42,985 37,691 Amounts due to related parties 344,028 80,713 Tax payable 21,327 51,633 Financial guarantee liabilities — 15,537 Accrued expenses and other liabilities 81,180 123,624 Amounts due to the Company and its subsidiaries 239,812 2,261,088 Total current liabilities 1,957,390 3,485,264 Long-term funding debts 469,733 21,498 Amounts due to related parties 11,120 — Total non-current liabilities 480,853 21,498 Total liabilities 2,438,243 3,506,762 For the year ended December 31, 2016 2017 2018 Total net revenues 54,874 661,417 1,080,451 Net (loss)/income (200,494) (31,343) 62,190 For the year ended December 31, 2016 2017 2018 Net cash (used in)/provided by operating activities (123,066) 83,080 86,135 Net cash (used in)/provided by investing activities (108,178) (1,444,358) 725,862 Net cash provided by/(used in) financing activities 256,700 1,498,175 (736,240) Net increase in cash, cash equivalents and restricted time deposits 25,456 136,897 75,757 Cash and cash equivalents at beginning of the year 1,836 27,292 159,189 Restricted time deposits at beginning of the year — — 5,000 Cash, cash equivalents and restricted time deposits at end of the year 27,292 164,189 239,946 Including: Cash and cash equivalents at end of the year 27,292 159,189 232,913 Restricted time deposits at end of the year — 5,000 7,033 |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Summary of significant accounting policies | |
Schedule of estimated useful lives of property, equipment and software, net | Estimated Category useful life Office furniture and equipment 3 - 5 years Computer and electronic equipment 3 - 5 years Software 5 years |
Acquisition of Shenzhen Minhe_2
Acquisition of Shenzhen Minheng (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Acquisition of Shenzhen Minheng | |
Schedule of allocation of the purchase price | Amortization Amounts Years RMB Cash 310 Financing receivables, net of provision of RMB10,450 268,365 Other current assets 18,648 Amortizable intangible asset Customer database 9,697 5.5 Goodwill 25,680 Funding debts (310,428) Other current liabilities (10,878) Deferred tax assets 2,424 Deferred tax liabilities (2,424) Total 1,394 Total purchase price comprised of —Cash consideration paid by parent company 1,000 —Fair value of previously held equity interests 394 Total 1,394 |
Schedule of pro forma adjustments | For the year ended December 31, 2016 2016 RMB US$ Pro forma total revenues 59,916 9,055 Pro forma net loss 233,212 35,244 |
Financing receivables, net (Tab
Financing receivables, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financing receivables, net | |
Schedule of financing receivables, net | As of December 31, 2017 2018 RMB RMB Short-term: Short-term financing receivables 1,569,080 762,854 Allowance for credit losses (62,901) (20,737) Short-term financing receivables, net 1,506,179 742,117 Long-term: Long-term financing receivables 185,136 19,297 Allowance for credit losses (6,509) (415) Long-term financing receivables, net 178,627 18,882 |
Schedule of balances of financing receivables by due date | As of December 31, 2017 2018 RMB RMB Due in months: 0 - 12 1,569,080 762,854 13 - 24 185,136 19,297 Total financing receivables 1,754,216 782,151 |
Schedule of movement of the allowance for credit losses | For the year ended December 31, 2017 2018 RMB RMB Balance at beginning of the year 11,884 69,410 Additions 113,162 121,341 Reversal — (55,976) Charge-offs (55,636) (113,623) Balance at end of the year 69,410 21,152 |
Schedule of aging analysis of past due financing receivables | 91 Days or 1 - 30 Days 31 - 60 Days 61 - 90 Days Greater Total Financing receivables Past Due Past Due Past Due Past Due Past Due Current Total As of December 31, 2017 34,102 11,346 9,372 — 54,820 1,699,396 1,754,216 As of December 31, 2018 11,123 7,635 7,826 — 26,584 755,567 782,151 |
Accrued interest receivable, _2
Accrued interest receivable, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accrued interest receivable, net | |
Schedule of accrued interest receivable, net | As of December 31, 2017 2018 RMB RMB Accrued interest receivable 8,687 13,083 Allowance for doubtful accounts (1,050) (2,031) Accrued interest receivable, net 7,637 11,052 |
Schedule of movements in the allowance for doubtful accounts | For the year ended December 31, 2017 2018 RMB RMB Balance at beginning of the year 377 1,050 Additions 2,868 5,914 Reversal — (868) Charge-offs (2,195) (4,065) Balance at end of the year 1,050 2,031 |
Accounts receivable, net (Table
Accounts receivable, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounts receivable, net | |
Schedule of accounts receivable, net | As of December 31, 2017 2018 RMB RMB Receivables for technical service fees from borrowers and financial partners 40,587 56,020 Receivables for marketplace service fees from asset management companies 1,236 1,234 Receivables for marketplace service fees from insurance companies and others 161 4,243 Total accounts receivable 41,984 61,497 Allowance for doubtful accounts (5,428) (13,845) Accounts receivable, net 36,556 47,652 |
Schedule of movement of allowance for doubtful accounts | For the year ended December 31, 2017 2018 RMB RMB Balance at beginning of the year 490 5,428 Additions 16,480 110,840 Reversal — (2,813) Charge-offs (11,542) (99,610) Balance at end of the year 5,428 13,845 |
Prepayments and other current_2
Prepayments and other current assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Prepayments and other current assets | |
Schedule of prepayments and other current assets | As of December 31, 2017 2018 RMB RMB Deposits with a Business Partner for point-of-sale installment loans 15,605 — Professional fees capitalized for issuance of new shares upon the initial public offering 13,348 — Tax refund receivables from Tax Bureau* 7,834 — Prepaid input value-added tax 9,309 6,493 Deposits to financial partners and other vendors 8,603 25,206 Prepaid service fees 6,555 19,872 Receivables from third-party online payment platforms 5,802 7,475 Short-term loan to a third party** — 138,089 Financial guarantee assets — 20,610 Others 1,847 11,263 Total 68,903 229,008 * For the year ended December 31, 2017, one of the Group’s subsidiaries Sky City WOFE, prepaid enterprise income tax expense to local PRC tax bureau during the first nine months of 2017. However, Sky City WOFE incurred a tax loss and it was eventually assessed that it not subject to enterprise income tax for the year ended December 31, 2017. Hence, Sky City WOFE is entitled to receive tax refund from the tax bureau upon the completion of its 2017 annual tax filing. ** On July 31, 2018, the Group entered into a loan agreement with an entity, namely Plutux Labs Limited (“Plutux Labs”), which is a digital assets and securities exchange platform in Asia. Pursuant to the loan agreement, it was agreed that the Group provided a loan, with principal amount of US$20 million and an annual interest rate of 10.5% to Plutux Labs, without any requirements to Plutux Labs for collateral or pledge on this loan. The outstanding loan principal is repayable to the Company on the termination date which is defined in the agreement as “(i) one year upon receipt of the loan or (ii) any other date the borrower payoffs the loan to the Company. The term shall extend by written consent from both parties. As of December 31, 2018, the outstanding loan principal and accrued interests were RMB138,089. Subsequent to December 31, 2018, the Group fully collected the outstanding loan principal and interests (Note 25 (a)). |
Property, equipment and softw_2
Property, equipment and software, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, equipment and software, net | |
Schedule of property, equipment and software, net | As of December 31 2017 2018 RMB RMB Computer and electronic equipment 7,737 11,239 Software 3,008 3,705 Office furniture and equipment 1,234 1,106 Total 11,979 16,050 Less: Accumulated depreciation and amortization (5,332) (8,244) Property, equipment and software, net 6,647 7,806 |
Long-term investments (Tables)
Long-term investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Long-term investments | |
Schedule of changes in long-term investments | Cost Method Equity Method Total RMB RMB RMB Balance as of December 31, 2016 — — — Investments made 2,000 8,821 10,821 Loss from equity method investments — (2,455) (2,455) Less: Impairment charges (2,000) — (2,000) Less: Foreign currency translation adjustments — 73 73 Balance as of December 31, 2017 — 6,439 6,439 Investments made 35,000 19,259 54,259 Loss from equity method investments — (2,652) (2,652) Less: Foreign currency translation adjustments — (8) (8) Balance as of December 31, 2018 35,000 23,038 58,038 |
Fair value measurement (Tables)
Fair value measurement (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair value measurement | |
Schedule of assets and liabilities that are measured and recorded at fair value on a recurring basis | Balance at December 31, 2017 Level 1 Inputs Level 2 Inputs Level 3 Inputs Fair Value RMB RMB RMB RMB Assets Cash and cash equivalents 370,891 — — 370,891 Restricted time deposits — 5,000 — 5,000 Short-term investments — 2,000 — 2,000 Total 370,891 7,000 — 377,891 Liabilities Financial guarantee liabilities — — — — Total — — — — Balance at December 31, 2018 Level 1 Inputs Level 2 Inputs Level 3 Inputs Fair Value RMB RMB RMB RMB Assets Cash and cash equivalents 457,442 — — 457,442 Restricted time deposits — 252,599 — 252,599 Total 457,442 252,599 — 710,041 Liabilities Financial guarantee liabilities — — (15,537) (15,537) Total — — (15,537) (15,537) |
Schedule of significant unobservable inputs used for the Group's Level 3 fair value measurement | 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, 2018: Unobservable Input Range of Input Discount rates 20.0 % Default probability 1.6%~3.6 % Weighted average loss rates of loan principal 56.9%~62.4 % Weighted average loss rates of loan interest 16.7%~30.4 % Margin on costs 90.0 % |
Intangible assets, net (Tables)
Intangible assets, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Intangible assets, net | |
Schedule of Intangible assets, net | As of December 31, 2017 2018 RMB RMB Customer database 9,697 9,697 Trademark 162 162 Less: Accumulated amortization (2,647) (4,436) Intangible assets, net 7,212 5,423 |
Schedule of amortization expenses related to the intangible assets for future periods | For the year ended December 31, 2024 and 2019 2020 2021 2022 2023 thereafter RMB RMB RMB RMB RMB RMB Amortization expenses 1,793 1,793 1,793 44 — — |
Funding debts (Tables)
Funding debts (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Funding debts | |
Schedule of outstanding funding debts | As of December 31, 2017 2018 RMB RMB Short-term: Loan payables to individual investors via Jimu Box and other financial partners 1,016,113 268,167 Loan payables to investors of consolidated trusts 204,771 290,103 Loan payables to a shareholder — 121,687 Total short-term funding debts 1,220,884 679,957 Long-term: Loan payables to individual investors via financial partners 31,769 21,498 Loan payables to investors of consolidated trusts 194,111 — Loan payables to investors of asset-backed securitized debts 243,853 — Total long-term funding debt 469,733 21,498 |
Schedule of remaining contractual maturity dates of the Group's funding debts and associated interest payments | Less than More than 3 1 year 1 - 2 years 2 - 3 years years Total RMB RMB RMB RMB RMB Loan payables to individual investors via financial partners 268,167 — — 21,498 289,665 Loan payables to investors of consolidated trusts 290,103 — — — 290,103 Loan payables to a shareholder 121,687 — — — 121,687 Total funding debts 679,957 — — 21,498 701,455 Interest payments 24,300 2,511 2,511 2,092 31,414 Total interest payments 24,300 2,511 2,511 2,092 31,414 |
Financial guarantee liabiliti_2
Financial guarantee liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial guarantee liabilities | |
Schedule of guarantee liability movement activities | For the year ended December 31, 2016 2017 2018 RMB RMB RMB Balance at beginning of the year — — — Fair value of financial guarantee liabilities upon the inception of new loans — — 44,549 Release of financial guarantee liabilities upon repayment — — (21,397) Payouts during the period — — (7,615) Contingent liabilities — — — Balance at the end of the year — — 15,537 |
Accrued expenses and other li_2
Accrued expenses and other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accrued expenses and other liabilities | |
Schedule of accrued expenses and other liabilities | As of December 31, 2017 2018 RMB RMB Payable to Business Partners for point-of-sale installment loans 31,877 4,681 Payable to asset management companies for funds received from customers 22,107 3,516 Payables to individual investors on Jimu Box and financial partners for collecting principal and interests on behalf of borrowers 15,492 9,586 Payroll payable 22,243 21,655 Payable related to professional fees 14,057 16,819 Payable related to service fees and others 3,022 8,937 Payable related to rental fees 1,400 — Payables related to long-term investments — 35,000 Deferred revenue 1,916 54,686 Others 75 2,582 Total 112,189 157,462 |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Taxation | |
Schedule of current and deferred portion of income tax (benefit)/expense of the Company's China subsidiaries, VIEs, and subsidiaries of the VIEs | For the year ended December 31, 2016 2017 2018 Current income tax expense 167 18,516 42,610 Deferred income tax benefit — — (36,901) Income tax expense 167 18,516 5,709 |
Schedule of reconciliation between the statutory EIT rate and the effective tax rates | For the year ended December 31, 2016 2017 2018 Statutory income tax rate in PRC % % % Tax effect of non-deductible expenses % % % Changes in valuation allowance -25.18 % -52.83 % -211.94 % Tax rate difference from statutory rate in other jurisdictions* — -6.62 % % Tax effect of preferential tax treatments — — -54.78 % Effective tax rate — -27.91 % % * It is primarily due to the tax effect of the Company as a tax-exempt entity incorporated in the Cayman Islands. |
Schedule of components of the deferred tax assets and deferred tax liabilities | As of December 31, 2016 2017 2018 RMB RMB RMB Deferred tax assets: Allowance for doubtful accounts and credit losses and impairment loss of long-term investment 3,188 34,154 45,841 Deductible advertising fees 2,842 1,894 1,894 Net operating loss carry forwards 12,886 14,979 18,191 Accrued expense and other liabilities — — 1,073 Net operating loss carry forwards acquired in a business combination 2,204 1,763 1,322 Subtotal 21,120 52,790 68,321 Less: valuation allowance (18,916) (51,027) (30,098) Total deferred tax assets, net 2,204 1,763 38,223 Deferred tax liabilities: Intangible assets acquired in a business combination 2,204 1,763 1,322 Net deferred tax liabilities 2,204 1,763 1,322 |
Schedule of changes in valuation allowance | As of December 31, 2016 2017 2018 RMB RMB RMB Balance at beginning of the year 14,018 18,916 51,027 Additions 4,898 32,111 15,305 Reversals — — (36,234) Balance at end of the year 18,916 51,027 30,098 |
Share based compensation expe_2
Share based compensation expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Share based compensation expenses | |
Schedule of activities of the total restricted ordinary shares | Weighted- Average Number of Grant Date shares Fair Value (in US$) Unvested at January 1, 2016 10,772,744 Granted 400,000 1.79 Vested (3,650,143) Unvested at December 31, 2016 7,522,601 Unvested at January 1, 2017 7,522,601 Granted — — Vested (3,426,143) Unvested at December 31, 2017 4,096,458 Unvested at January 1, 2018 4,096,458 Granted — — Vested (1,987,648) Forfeited (540,810) Unvested at December 31, 2018 1,568,000 |
Schedule of estimated fair value of each option grant | For the year ended December 31, 2018 Expected volatility 37.6 % Risk-free interest rate (per annum) 2.7%~2.89 % Expected dividend yield — Expected term (in years) 10 Fair value of the underlying shares on the date of option grants (US$) 1.2785~1.4506 |
Schedule of activities of the service-based share options granted to the employees of the predecessor operations of Pintec Business | Weighted Average Weighted-Average Remaining Aggregate Options Grant-Date Contractual Intrinsic Outstanding Fair Value Life Value US$ (In years) (RMB in thousands) Outstanding as of December 31, 2017 — — — — Granted 17,747,500 1.2964 10 154,775 Exercised — — — — Forfeited (235,936) 1.2785 — — Outstanding as of December 31, 2018 17,511,564 1.2968 8.47 153,999 Expected to vest as of December 31, 2018 17,511,564 1.2968 8.47 153,999 |
Jimu Parent | |
Share based compensation expenses | |
Schedule of estimated fair value of each option grant | 2017 and 2018 Expected volatility 34.6%~40.2% Risk-free interest rate (per annum) 2.02%~3.02% Exercise multiples 2.2~2.8 Expected dividend yield 0.00% Expected term (in years) 10 Fair value of the underlying shares on the date of option grants (US$) 0.45~2.70 |
Schedule of activities of the service-based share options granted to the employees of the predecessor operations of Pintec Business | Weighted Average Weighted Remaining Average Contractual Average Options Exercise Price Life Intrinsic Value Outstanding US$ (In years) (RMB in thousands) Outstanding as of December 31, 2016 11,612,548 0.82 9.00 2,274 Granted 4,627,563 1.00 Exercised — — Forfeited (353,069) 1.00 Outstanding as of December 31, 2016 15,887,042 0.87 8.63 26,538 Outstanding as of January 1, 2017 15,887,042 0.87 8.63 26,538 Granted 520,000 1.00 Exercised — — Forfeited (204,150) 1.00 Outstanding as of December 31, 2017 16,202,892 0.87 7.75 27,998 Outstanding as of January 1, 2018 16,202,892 0.87 7.75 27,998 Granted — Exercised — Forfeited (333,780) 1.00 Outstanding as of December 31, 2018 15,869,112 0.87 6.46 27,885 Vested and expected to vest as of December 31, 2016 15,887,042 0.87 8.63 26,538 Exercisable as of December 31, 2016 5,627,542 0.74 8.63 2,755 Vested and expected to vest as of December 31, 2017 16,202,892 0.87 7.75 27,998 Exercisable as of December 31, 2017 9,219,980 0.79 7.75 8,824 Vested and expected to vest as of December 31, 2018 15,869,112 0.87 6.46 27,885 Exercisable as of December 31, 2018 12,121,038 0.81 6.46 16,353 |
Pre-IPO Preferred Shares (Table
Pre-IPO Preferred Shares (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Pre-IPO Preferred Shares | |
Schedule of preferred shares | Series Seed-A-1 Series Seed-A-2 Series Seed-B Series Seed-C Series A-1 Series A-2 Mezzanine Equity Preferred Shares Preferred Shares Preferred Shares Preferred Shares Preferred Shares Preferred Shares Total No. of Amount No. of Amount No. of Amount No. of Amount No. of Amount No. of Amount No. of Total shares in RMB shares in RMB shares in RMB shares in RMB shares in RMB shares in RMB shares Amount Balances as of December 31, 2017 — — — — — — — — — — — — — — Completion of reorganization 2,500,000 2,437 17,678,568 21,975 37,257,705 175,563 42,747,918 497,007 — — — — 100,184,191 696,982 Issuance of Preferred Shares — — — — — — — — 25,650,679 267,893 38,829,699 407,444 64,480,378 675,337 Preferred Shares redemption value accretion — 161 — 1,497 — 11,493 — 32,589 — 7,847 — 11,768 — 65,355 Conversion of Pre-IPO Preferred Shares into Class A Ordinary Shares (2,500,000) (2,598) (17,678,568) (23,472) (37,257,705) (187,056) (42,747,918) (529,596) (25,650,679) (275,740) (38,829,699) (419,212) (164,664,569) (1,437,674) Balances as of December 31, 2018 — — — — — — — — — — — — — — |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related party transactions | |
Schedule of major related parties and their relationships with the Group | The table below sets forth the major related parties and their relationships with the Group as of December 31, 2017 and 2018: Name of related parties Relationship with the Group Jimu Group An entity and its certain subsidiaries that have a high degree of overlap in shareholding with the Group and share three common board members. BBAE Holdings Limited An entity which has two common directors of the Board of Directors with the Company who can significantly influence both the entity and the Company BBAE Advisors LLC An entity which is a wholly owned subsidiary of BBAE Holdings Limited Beijing Liangduo Science and Technology Co. Ltd. An entity which the Group holds 18% equity interests Changsha Liangduo Business Consulting Co., Ltd An entity which Beijing Liangduo Science and Technology Co., Ltd holds 90% equity interests |
Schedule of transactions with related parties | For the year ended December 31, Transactions 2017 2018 RMB RMB (i) Transactions recorded in costs and expenses —Cost and expenses allocated from Jimu Group 102,263 48,687 —Service fees to Jimu Group for the peer-to-peer matching services for the funding debts 1,235 458 (ii) Financing/investing transactions —Net cash advances from/(to) the Jimu Group 23,121 (441,491) —Cash repayment to Jimu Group — (23,121) —Loan proceeds from Jimu Group documented in loan agreements 29,270 12,711 —Loan issued to Jimu Group documented in loan agreements and other financing transactions — (59,636) —Collection of loan issued to Jimu Group — 52,169 (i) Transactions recorded in costs and expenses The cost and expenses allocated from Jimu Group represents general expenses, including stock based compensation costs, shared corporate marketing expenses, bandwidth and server hosting costs, charged by Jimu Group, pursuant to the Reorganization Agreements. (Note 1(b)). (ii) Financing/investing transactions Net cash advances from/(to) the Jimu Group For the year ended December 31, 2017, the Group received cash advances from Jimu Group with the aggregate amount of RMB23.1 million, which was fully repaid to Jimu Group subsequently in 2018. For the year ended December 31, 2018, the Group made a series of cash advances to Jimu Group that were not documented contemporaneously by loan agreements. The aggregate amount of cash advances made to Jimu Group was RMB441.5 million, including U.S. dollar-denominated cash advances of RMB146.6 million (US$21.4 million), and RMB-denominated cash advances of RMB294.9 million. Loan proceeds from Jimu Group For the year ended December 31, 2017, the Company and certain of its subsidiaries entered into a series of loan agreements with Jimu Group, pursuant to which the Group drew down RMB-denominated loan from Jimu Group, to facilitate the Group’s business operation, with the aggregate amount of RMB29.3 million. All of the loans carried a fixed rate of interest of 12% as of the dates when the loan principal was drawn down. As of December 31, 2018, the Group had repaid the loan principal of RMB18.2 million. For the year ended December 31, 2018, the Company and certain of its subsidiaries entered into a series of loan agreements with Jimu Group, pursuant to which the Group drew down RMB denominated loan from Jimu Group, with the aggregate amount of RMB12.7 million. All of the loans carried a fixed rate of interest ranging from 12.13% to 12.8%. Loan issued to Jimu Group and other financing transactions For the year ended December 31, 2018, the Company had entered into a loan agreement with Jimu Group, pursuant to which Jimu Group drew down U.S. dollar-denominated loan from the Group, with the aggregate amount of RMB52.2 million (US$7.6 million) which was not interest bearing. As of December 31, 2018, such loan to Jimu Group had been fully collected. In addition, the Company had other financing transactions with Jimu Group amounting to RMB7.4 million. |
Schedule of balances with the major related parties | As of December 31, 2017 2018 RMB RMB Due from Jimu Group 228,548 475,426 BBAE Holdings Limited 478 — Total 229,026 475,426 Due to Jimu Group 385,035 89,453 BBAE Advisors LLC 527 721 Beijing Liangduo Science and Technology Co. Ltd. 927 4,348 Changsha Liangduo Business Consulting Co., Ltd. — 2,074 Total 96,596 |
Unaudited pro forma net loss _2
Unaudited pro forma net loss per share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Unaudited pro forma net loss per share | |
Schedule of pro forma basic and diluted net loss per ordinary share | For the year ended December 31, 2017 2018 2018 RMB RMB USD Pro forma basic net loss per ordinary share calculation: Numerator: Net (loss)/income (84,860) 2,171 315 Accretion on Series Seed-A-1 Preferred Shares redemption value (167) (203) (30) Accretion on Series Seed-A-2 Preferred Shares redemption value (1,502) (1,874) (273) Accretion on Series Seed-B Preferred Shares redemption value (11,881) (14,476) (2,105) Accretion on Series Seed-C Preferred Shares redemption value (31,943) (40,602) (5,905) Accretion on Series A-1 Preferred Shares redemption value — (7,847) (1,141) Accretion on Series A-2 Preferred Shares redemption value — (11,768) (1,712) Net loss attributable to ordinary shareholders (130,353) (74,599) (10,851) Denominator: Weighted average ordinary shares outstanding-basic 62,875,631 103,995,794 103,995,794 Pro forma net loss per ordinary share basic (2.07) (0.72) (0.10) Pro forma diluted net loss per ordinary share calculation: Numerator: Net loss attributable to ordinary shareholders-diluted (130,353) (74,599) (10,851) Denominator: Weighted average ordinary shares outstanding-basic 62,875,631 103,995,794 103,995,794 Ordinary shares issuable upon the exercise of outstanding stock option using the treasury stock method — — — Weighted average ordinary shares outstanding-diluted 62,875,631 103,995,794 103,995,794 Pro forma net loss per ordinary share diluted (2.07) (0.72) (0.10) |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and contingencies | |
Schedule of future minimum lease payments under these non-cancellable leases | Payment due by schedule Less than 1 year 1 - 2 years 2 - 3 years Total Office rental 8,851 — — 8,851 Bandwidth leasing 535 — — 535 9,386 — — 9,386 |
Schedule of expected repayment amount of the debt obligations | Payment due by schedule Less than More than 1 year 1 - 2 years 2 - 3 years 3 years Total Funding Debts obligations Loan payables to individual investors via financial partners 268,167 — — 21,498 289,665 Consolidated trusts 290,103 — — — 290,103 Loan payables to a shareholder 121,687 — — — 121,687 Interest payments 24,300 2,511 2,511 2,092 31,414 Total Funding Debts obligations 704,257 2,511 2,511 23,590 732,869 |
Parent company only condensed_2
Parent company only condensed financial information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Parent company only condensed financial information | |
Condensed balance sheets of parent company | Condensed balance sheet (In thousands, except for share and per share data) As of December 31, 2018 2018 RMB US$ Note 2 (e) ASSETS Current assets: Cash and cash equivalents 69,194 10,064 Prepayments and other current assets 143,464 20,866 Amounts due from subsidiaries of the Company 631,414 91,835 Amounts due from related parties 146,835 21,356 Total current assets 990,907 144,121 Non-current assets: Investment in subsidiaries, VIEs and VIEs' subsidiaries 60,167 8,751 Long-term investments 17,564 2,555 Total non-current assets 77,731 11,306 TOTAL ASSETS 1,068,638 155,427 LIABILITIES Current liabilities: Accrued expenses and other liabilities 11,362 1,653 Total current liabilities 11,362 1,653 TOTAL LIABILITIES 11,362 1,653 Commitments and contingencies (Note 24) INVESTED (DEFICIT)/SHAREHOLDERS’ EQUITY Class A Ordinary Shares (US$0.000125 par value per share, 348,217,505 shares authorized; 213,811,958 shares issued and outstanding as of December 31, 2018; non authorized issued and outstanding as of December 31, 2017) 185 27 Class B Ordinary Shares (US$0.000125 par value per share, 51,782,495 shares authorized; 51,782,495 shares issued and outstanding as of December 31, 2018; non authorized issued and outstanding as of December 31, 2017) 43 6 Additional paid-in capital 1,896,993 275,906 Accumulated other comprehensive income 31,014 4,511 Accumulated deficit (870,959) (126,676) TOTAL INVESTED (DEFICIT)/SHAREHOLDERS’ EQUITY 1,057,276 153,774 TOTAL LIABILITIES AND INVESTED (DEFICIT)/SHAREHOLDERS’ EQUITY 1,068,638 155,427 |
Condensed statements of operations and comprehensive loss of parent company | Condensed statements of operations and comprehensive loss (In thousands) For the year ended December 31, 2018 2018 RMB US$ Note 2 (e) Cost of revenues: Origination and servicing cost (337) (49) Cost of revenues (337) (49) Operating expenses: Sales and marketing expenses (11,137) (1,620) General and administrative expenses (102,141) (14,856) Research and development expenses (18,675) (2,716) Total operating expenses (131,953) (19,192) Operating (loss)/income Change in fair value of convertible loans (9,552) (1,389) Equity in gain of subsidiaries, VIEs and VIE's subsidiaries 131,594 19,140 Share of loss from equity method investments (1,690) (246) Other income, net 14,109 2,051 Income before income tax expense 2,171 315 Income tax expense — — Net income 2,171 315 Other comprehensive income: Foreign currency translation adjustments net of nil tax 30,173 4,388 Total other comprehensive income 30,173 4,388 Total comprehensive (loss)/income 32,344 4,703 |
Condensed statements of cash flows of parent company | Condensed statements of cash flows (in thousands) For the year ended December 31, 2018 2018 RMB US$ Note (e) Net cash used in operating activities (581,914) (84,636) Cash flows from investing activities: Net cash advances to Jimu Parent (146,835) (21,356) Short-term loan to a third party (137,264) (19,964) Purchase of long-term investments (19,259) (2,801) Net cash used in investing activities (303,358) (44,121) Cash flows from financing activities: Proceeds from issuance of Pre-IPO Preferred Shares 410,286 59,674 Proceeds from initial public offering and followed offering, net of issuance cost 316,451 46,026 Cash repayment to Jimu Parent (818) (119) Proceeds from issuance of convertible loans 21,730 3,160 Net cash provided by financing activities 747,649 108,741 Effect of exchange rate changes on cash, cash equivalents and restricted time deposits 24,510 3,565 Net decrease in cash, cash equivalents and restricted time deposits (113,113) (16,451) Cash and cash equivalents at beginning of the year 182,307 26,515 Cash and cash equivalents at end of the year 69,194 10,064 |
Organization and principal ac_3
Organization and principal activities - Effect the transfer of the Pintec Business to the Group (Details) | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Apr. 30, 2017subsidiarycompany | Dec. 31, 2018entitysubsidiaryshareholder | |
Effect the transfer of the Pintec Business to the Group | |||
Number of founding shareholders | shareholder | 1 | ||
Number of dormant holding companies | company | 4 | ||
Number of newly established subsidiaries | 2 | ||
Number of variable interest entities | entity | 4 | ||
Number of wholly owned subsidiaries, operate the Pintec Business | 5 | ||
Service-based share options | |||
Effect the transfer of the Pintec Business to the Group | |||
Options expiration period | 10 years |
Organization and principal ac_4
Organization and principal activities - Establishment of Pintec, its subsidiaries and VIEs (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Anquying (Tianjin) Technology Co., Ltd. | |
Establishment of Pintec, its subsidiaries and VIEs | |
Percentage of direct or indirect economic interest | 100.00% |
Shanghai Anquying Technology Co., Ltd. | |
Establishment of Pintec, its subsidiaries and VIEs | |
Percentage of direct or indirect economic interest | 100.00% |
Ganzhou Dumiao Intelligence Technology Co., Ltd | |
Establishment of Pintec, its subsidiaries and VIEs | |
Percentage of direct or indirect economic interest | 100.00% |
Shenzhen Qianhai Minheng Commercial Factoring Co., Ltd. | |
Establishment of Pintec, its subsidiaries and VIEs | |
Percentage of direct or indirect economic interest | 100.00% |
Beijing Hongdian Fund Distributor Co., Ltd. | |
Establishment of Pintec, its subsidiaries and VIEs | |
Percentage of direct or indirect economic interest | 100.00% |
Xuanji Intelligence (Beijing) Technology Co., Ltd. | |
Establishment of Pintec, its subsidiaries and VIEs | |
Percentage of direct or indirect economic interest | 100.00% |
Tianjin Xiangmu Asset Management Co., Ltd. | |
Establishment of Pintec, its subsidiaries and VIEs | |
Percentage of direct or indirect economic interest | 100.00% |
Pintec Jinke (Beijing) Technology Information Co., Ltd., (formerly known as Hezi (Beijing) Consultants Co., Ltd) | |
Establishment of Pintec, its subsidiaries and VIEs | |
Percentage of direct or indirect economic interest | 100.00% |
Myfin Insurance Broker Co., Ltd. | |
Establishment of Pintec, its subsidiaries and VIEs | |
Percentage of direct or indirect economic interest | 100.00% |
Sky City Holdings Limited | |
Establishment of Pintec, its subsidiaries and VIEs | |
Percentage of direct or indirect economic interest | 100.00% |
Sky City Hong Kong Limited | |
Establishment of Pintec, its subsidiaries and VIEs | |
Percentage of direct or indirect economic interest | 100.00% |
Sky City (Beijing) Technology Co., Ltd. | |
Establishment of Pintec, its subsidiaries and VIEs | |
Percentage of direct or indirect economic interest | 100.00% |
Next Hop Holdings Limited | |
Establishment of Pintec, its subsidiaries and VIEs | |
Percentage of direct or indirect economic interest | 100.00% |
Next Hop Hong Kong Limited | |
Establishment of Pintec, its subsidiaries and VIEs | |
Percentage of direct or indirect economic interest | 100.00% |
Pintec (Beijing) Technology Co., Ltd | |
Establishment of Pintec, its subsidiaries and VIEs | |
Percentage of direct or indirect economic interest | 100.00% |
Anxunying (Tianjin) Commercial Factoring Co., Ltd. | |
Establishment of Pintec, its subsidiaries and VIEs | |
Percentage of direct or indirect economic interest | 100.00% |
Pintec Solutions Pte. Ltd. | |
Establishment of Pintec, its subsidiaries and VIEs | |
Percentage of direct or indirect economic interest | 100.00% |
Pintec (Ganzhou) Technology Co.,Ltd | |
Establishment of Pintec, its subsidiaries and VIEs | |
Percentage of direct or indirect economic interest | 100.00% |
Organization and principal ac_5
Organization and principal activities - Basis of Presentation for the Reorganization (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share based compensation | ¥ 36,496 | ¥ 31,018 | ¥ 25,665 |
Others | 12,191 | 71,245 | 115,229 |
Total | 48,687 | 102,263 | 140,894 |
Deemed contribution from the parent company related to the allocated expenses | 74,367 | ||
Allocated cost and expenses will be settled with Jimu Parent | 40,862 | ||
Cash contributions | 80,690 | ||
Cost of revenues | |||
Share based compensation | 214 | 27 | 27 |
Others | 366 | 2,693 | 3,825 |
Total | 580 | 2,720 | 3,852 |
Sales and marketing expenses | |||
Share based compensation | 3,147 | 2,470 | 1,986 |
Others | 1,769 | 15,745 | 33,458 |
Total | 4,916 | 18,215 | 35,444 |
General and administrative expenses | |||
Share based compensation | 28,945 | 25,263 | 21,524 |
Others | 4,747 | 20,270 | 39,099 |
Total | 33,692 | 45,533 | 60,623 |
Research and development expenses | |||
Share based compensation | 4,190 | 3,258 | 2,128 |
Others | 5,309 | 32,537 | 38,847 |
Total | ¥ 9,499 | ¥ 35,795 | ¥ 40,975 |
Organization and principal ac_6
Organization and principal activities - Exclusive Business Cooperation Agreements and Exclusive option agreements (Details) - Jimu WFOE | 12 Months Ended |
Dec. 31, 2018 | |
Exclusive Business Cooperation Agreements | |
Exclusive Business Cooperation Agreements and Exclusive option agreements | |
Term of the agreements | 10 years |
Advance notice period for termination of agreement | 30 days |
Exclusive option agreements | |
Exclusive Business Cooperation Agreements and Exclusive option agreements | |
Term of the agreements | 10 years |
Organization and principal ac_7
Organization and principal activities - Risks in relation to the VIE structure (Details) $ in Thousands | 12 Months Ended | |||||||||
Dec. 31, 2018USD ($)agreementitem | Dec. 31, 2018CNY (¥)agreementitem | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
ASSETS | ||||||||||
Cash and cash equivalents | $ 53,944 | ¥ 370,891,000 | ¥ 27,292,000 | ¥ 1,836,000 | $ 66,532 | ¥ 457,442,000 | $ 53,944 | ¥ 370,891,000 | ¥ 27,292,000 | ¥ 1,836,000 |
Restricted time deposits | 727 | 5,000,000 | 0 | 0 | 36,739 | 252,599,000 | 727 | 5,000,000 | 0 | |
Short-term investments | 2,000,000 | |||||||||
Short-term financing receivables, net | 107,936 | 742,117,000 | 1,506,179,000 | |||||||
Accrued interest receivable, net | 1,607 | 11,052,000 | 7,637,000 | |||||||
Accounts receivable, net | 6,931 | 47,652,000 | 36,556,000 | |||||||
Prepayments and other current assets | 33,308 | 229,008,000 | 68,903,000 | |||||||
Amounts due from related parties | 69,148 | 475,426,000 | 229,026,000 | |||||||
Total current assets | 322,201 | 2,215,296,000 | 2,226,192,000 | |||||||
Long-term investments | 8,441 | 58,038,000 | 6,439,000 | |||||||
Long-term financing receivables, net | 2,746 | 18,882,000 | 178,627,000 | |||||||
Property, equipment and software, net | 1,135 | 7,806,000 | 6,647,000 | |||||||
Intangible assets, net | 789 | 5,423,000 | 7,212,000 | |||||||
Goodwill | 3,735 | 25,680,000 | 25,680,000 | |||||||
Deferred tax assets | 5,367 | 36,901,000 | ||||||||
Total non-current assets | 22,213 | 152,730,000 | 224,605,000 | |||||||
TOTAL ASSETS | 344,414 | 2,368,026,000 | 2,450,797,000 | |||||||
LIABILITIES | ||||||||||
Short-term borrowings | 31,998 | 220,000,000 | ||||||||
Short-term funding debts | 98,896 | 679,957,000 | 1,220,884,000 | |||||||
Accrued interest payable | 2,185 | 15,021,000 | 7,174,000 | |||||||
Accounts payable | 5,648 | 38,850,000 | 43,043,000 | |||||||
Amounts due to related parties | 14,050 | 96,596,000 | 375,369,000 | |||||||
Tax payable | 8,302 | 57,081,000 | 22,386,000 | |||||||
Financial guarantee liabilities | 2,260 | 15,537,000 | ||||||||
Accrued expenses and other liabilities | 22,902 | 157,462,000 | 112,189,000 | |||||||
Total current liabilities | 186,241 | 1,280,504,000 | 2,023,318,000 | |||||||
Long-term funding debts | 3,127 | 21,498,000 | 469,733,000 | |||||||
Amounts due to related parties | 11,120,000 | |||||||||
Total non-current liabilities | 4,399 | 30,246,000 | 489,674,000 | |||||||
TOTAL LIABILITIES | 190,640 | 1,310,750,000 | 2,512,992,000 | |||||||
Total net revenues | 153,100 | 1,052,641,000 | 568,720,000 | 54,874,000 | ||||||
Net (loss)/income | 315 | 2,171,000 | (84,860,000) | (200,494,000) | ||||||
Net cash (used in)/provided by operating activities | 15,754 | 108,309,000 | 197,438,000 | (123,066,000) | ||||||
Net cash (used in)/provided by investing activities | 36,445 | 250,576,000 | (1,444,773,000) | (108,178,000) | ||||||
Net cash provided by/(used in) financing activities | (7,165) | (49,254,000) | 1,595,968,000 | 256,700,000 | ||||||
Net increase in cash, cash equivalents and restricted time deposits | 48,600 | 334,150,000 | 348,599,000 | 25,456,000 | ||||||
Cash and cash equivalents at beginning of the year | 53,944 | 370,891,000 | 27,292,000 | 1,836,000 | ||||||
Restricted time deposits at beginning of the year | 727 | 5,000,000 | 0 | |||||||
Cash, cash equivalents and restricted time deposits at end of the year | $ 103,271 | 710,041,000 | $ 54,671 | 375,891,000 | 27,292,000 | 1,836,000 | ||||
Cash and cash equivalents at end of the year | 66,532 | 457,442,000 | 370,891,000 | 27,292,000 | ||||||
Restricted time deposits at end of the year | $ 36,739 | 252,599,000 | 5,000,000 | 0 | ||||||
Consolidated VIEs | ||||||||||
ASSETS | ||||||||||
Cash and cash equivalents | 159,189,000 | 27,292,000 | 1,836,000 | 232,913,000 | 159,189,000 | 27,292,000 | ¥ 1,836,000 | |||
Restricted time deposits | 5,000,000 | 5,000,000 | 7,033,000 | 5,000,000 | ||||||
Short-term investments | 2,000,000 | |||||||||
Short-term financing receivables, net | 742,117,000 | 1,506,179,000 | ||||||||
Accrued interest receivable, net | 11,052,000 | 7,637,000 | ||||||||
Accounts receivable, net | 47,148,000 | 36,556,000 | ||||||||
Prepayments and other current assets | 32,814,000 | 38,516,000 | ||||||||
Amounts due from the Company and its subsidiaries | 2,321,846,000 | 337,200,000 | ||||||||
Amounts due from related parties | 56,674,000 | 91,244,000 | ||||||||
Total current assets | 3,451,597,000 | 2,183,521,000 | ||||||||
Long-term investments | 35,000,000 | |||||||||
Long-term financing receivables, net | 18,882,000 | 178,627,000 | ||||||||
Property, equipment and software, net | 4,819,000 | 4,506,000 | ||||||||
Intangible assets, net | 5,382,000 | 7,163,000 | ||||||||
Goodwill | 25,680,000 | 25,680,000 | ||||||||
Deferred tax assets | 36,840,000 | |||||||||
Total non-current assets | 126,603,000 | 215,976,000 | ||||||||
TOTAL ASSETS | 3,578,200,000 | 2,399,497,000 | ||||||||
LIABILITIES | ||||||||||
Short-term borrowings | 220,000,000 | 0 | ||||||||
Short-term funding debts | 679,957,000 | 1,220,884,000 | ||||||||
Accrued interest payable | 15,021,000 | 7,174,000 | ||||||||
Accounts payable | 37,691,000 | 42,985,000 | ||||||||
Amounts due to related parties | 80,713,000 | 344,028,000 | ||||||||
Tax payable | 51,633,000 | 21,327,000 | ||||||||
Financial guarantee liabilities | 15,537,000 | 0 | ||||||||
Accrued expenses and other liabilities | 123,624,000 | 81,180,000 | ||||||||
Amounts due to the Company and its subsidiaries | 2,261,088,000 | 239,812,000 | ||||||||
Total current liabilities | 3,485,264,000 | 1,957,390,000 | ||||||||
Long-term funding debts | 21,498,000 | 469,733,000 | ||||||||
Amounts due to related parties | 0 | 11,120,000 | ||||||||
Total non-current liabilities | 21,498,000 | 480,853,000 | ||||||||
TOTAL LIABILITIES | 3,506,762,000 | 2,438,243,000 | ||||||||
Total net revenues | 1,080,451,000 | 661,417,000 | 54,874,000 | |||||||
Net (loss)/income | 62,190,000 | (31,343,000) | (200,494,000) | |||||||
Net cash (used in)/provided by operating activities | 86,135,000 | 83,080,000 | (123,066,000) | |||||||
Net cash (used in)/provided by investing activities | 725,862,000 | (1,444,358,000) | (108,178,000) | |||||||
Net cash provided by/(used in) financing activities | (736,240,000) | 1,498,175,000 | 256,700,000 | |||||||
Net increase in cash, cash equivalents and restricted time deposits | 75,757,000 | 136,897,000 | 25,456,000 | |||||||
Cash and cash equivalents at beginning of the year | 159,189,000 | 27,292,000 | 1,836,000 | |||||||
Restricted time deposits at beginning of the year | 5,000,000 | |||||||||
Cash, cash equivalents and restricted time deposits at end of the year | ¥ 239,946,000 | ¥ 164,189,000 | ¥ 27,292,000 | |||||||
Cash and cash equivalents at end of the year | 232,913,000 | 159,189,000 | ¥ 27,292,000 | |||||||
Restricted time deposits at end of the year | 7,033,000 | ¥ 5,000,000 | ||||||||
Assets of the VIEs and VIEs' subsidiaries that are collateral | ¥ 0 | |||||||||
Contractual arrangement that could require the relevant PRC subsidiaries | agreement | 0 | 0 | ||||||||
Amount of VIE where the Company or any subsidiary has a variable interest | item | 0 | 0 |
Organization and principal ac_8
Organization and principal activities - Initial public offering ("IPO") and followed offering (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Nov. 30, 2018USD ($)$ / sharesshares | Nov. 30, 2018CNY (¥)shares | Oct. 31, 2018USD ($)$ / sharesshares | Oct. 31, 2018CNY (¥)shares | Jul. 31, 2018shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2018CNY (¥)shares | |
Ordinary Shares | |||||||
Proceeds from initial public offering and followed offering, net of issuance cost | $ 46,026 | ¥ 316,451 | |||||
Conversion of Pre-IPO Preferred Shares into Class A Ordinary Shares (in shares) | (164,664,569) | (164,664,569) | |||||
Stock conversion basis | 1 | 1 | 1 | ||||
Class A Ordinary Shares | |||||||
Ordinary Shares | |||||||
Share issuance upon the redesignation of Pre-IPO Class A Ordinary Shares into Class A and Class B Ordinary Shares (in shares) | 19,676,695 | ||||||
Class B Ordinary Shares | |||||||
Ordinary Shares | |||||||
Share issuance upon the redesignation of Pre-IPO Class A Ordinary Shares into Class A and Class B Ordinary Shares (in shares) | 51,782,495 | ||||||
Stock conversion basis | 1 | 1 | |||||
Pre-IPO Preferred Shares | |||||||
Ordinary Shares | |||||||
Stock conversion basis | 1 | 1 | |||||
Series Seed-A-1 Preferred Shares | |||||||
Ordinary Shares | |||||||
Conversion of Pre-IPO Preferred Shares into Class A Ordinary Shares (in shares) | 2,500,000 | (2,500,000) | (2,500,000) | ||||
Series Seed-A-2 Preferred Shares | |||||||
Ordinary Shares | |||||||
Conversion of Pre-IPO Preferred Shares into Class A Ordinary Shares (in shares) | 17,678,568 | (17,678,568) | (17,678,568) | ||||
Series Seed-B Preferred Shares | |||||||
Ordinary Shares | |||||||
Conversion of Pre-IPO Preferred Shares into Class A Ordinary Shares (in shares) | 37,257,705 | (37,257,705) | (37,257,705) | ||||
Series Seed-C Preferred Shares | |||||||
Ordinary Shares | |||||||
Conversion of Pre-IPO Preferred Shares into Class A Ordinary Shares (in shares) | 42,747,918 | (42,747,918) | (42,747,918) | ||||
Series A-1 Preferred Shares | |||||||
Ordinary Shares | |||||||
Conversion of Pre-IPO Preferred Shares into Class A Ordinary Shares (in shares) | 25,650,679 | (25,650,679) | (25,650,679) | ||||
Series A-2 Preferred Shares | |||||||
Ordinary Shares | |||||||
Conversion of Pre-IPO Preferred Shares into Class A Ordinary Shares (in shares) | 38,829,699 | (38,829,699) | (38,829,699) | ||||
IPO | |||||||
Ordinary Shares | |||||||
Proceeds from initial public offering and followed offering, net of issuance cost | $ 5,300 | ¥ 36,400 | $ 40,700 | ¥ 280,100 | |||
IPO | Class A Ordinary Shares | |||||||
Ordinary Shares | |||||||
Number of new shares issued (in shares) | 3,381,490 | 3,381,490 | 26,075,000 | 26,075,000 | |||
IPO | ADSs | |||||||
Ordinary Shares | |||||||
Number of new shares issued (in shares) | 483,070 | 483,070 | 3,725,000 | 3,725,000 | |||
Price per share | $ / shares | $ 11.88 | $ 11.88 |
Organization and principal ac_9
Organization and principal activities - Liquidity (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2015CNY (¥) | |
Organization and principal activities | ||||||
Net income/loss | $ 315 | ¥ 2,171 | ¥ (84,860) | ¥ (200,494) | ||
Invested deficit | (153,774) | 62,195 | 9,205 | ¥ (1,057,276) | ¥ (10,567) | |
Accumulated deficit | (126,929) | ¥ (872,698) | ||||
Net cash (used in)/provided by operating activities | $ 15,754 | ¥ 108,309 | ¥ 197,438 | ¥ (123,066) |
Summary of significant accoun_4
Summary of significant accounting policies - Convenience translation, Cash and cash equivalents and Financing receivables, net (Details) $ in Thousands | Jul. 14, 2018USD ($)item | Jan. 31, 2018item | Dec. 31, 2018USD ($)¥ / $ | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2018CNY (¥)¥ / $ | Dec. 05, 2018CNY (¥) | Nov. 08, 2018 | Aug. 31, 2018 | Jul. 27, 2018CNY (¥) | Jul. 14, 2018CNY (¥) | Jul. 12, 2018CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) |
Convenience translation | |||||||||||||||
Convenience translation rate (in RMB/USD) | ¥ / $ | 0.1454 | 0.1454 | |||||||||||||
Cash and cash equivalents | |||||||||||||||
Restricted time deposits | $ 36,739 | ¥ 0 | ¥ 252,599,000 | $ 727 | ¥ 5,000,000 | ||||||||||
Financing receivables, net | |||||||||||||||
Financing receivables due from the users of the Business Partners | 0 | ||||||||||||||
Principal Amount | ¥ 220,000,000 | ¥ 68,141,000 | |||||||||||||
Interest rate (as a percent) | 4.785% | 4.35% | 2.58% | ||||||||||||
Repayment of debt | $ 632,208 | ¥ 4,346,749,000 | ¥ 5,534,199,000 | ¥ 1,666,113,000 | |||||||||||
Financing receivables non accrual status period | 90 days | 90 days | |||||||||||||
Financing receivable delinquent period | 1 day | 1 day | |||||||||||||
Third party investors of asset-backed securitized debts | |||||||||||||||
Financing receivables, net | |||||||||||||||
Loan payables | 0 | ||||||||||||||
Loan agreement with lender | |||||||||||||||
Financing receivables, net | |||||||||||||||
Number of Subsidiaries entered in to loan agreement | item | 1 | ||||||||||||||
Unsecured RMB denominated loans from Lender | |||||||||||||||
Financing receivables, net | |||||||||||||||
Loan payables | 0 | ||||||||||||||
Principal Amount | ¥ 563,979,000 | ||||||||||||||
Interest rate (as a percent) | 10.30% | 10.30% | |||||||||||||
Term of loan | 1 year | 1 year | |||||||||||||
Repayment of debt | ¥ 563,979,000 | ||||||||||||||
First loan agreement with Xijin | |||||||||||||||
Financing receivables, net | |||||||||||||||
Principal Amount | $ 10,181 | ¥ 70,000,000 | |||||||||||||
Interest rate (as a percent) | 10.30% | 10.30% | |||||||||||||
Term of loan | 1 year | ||||||||||||||
Number of subsidiaries of shareholders of the group | item | 1 | ||||||||||||||
Second loan agreement with Xijin | |||||||||||||||
Financing receivables, net | |||||||||||||||
Loan payables | ¥ 423,000,000 | ||||||||||||||
Principal Amount | ¥ 120,000,000 | ||||||||||||||
Shenzhen Minheng and Xijin,1st supplementary agreement | |||||||||||||||
Financing receivables, net | |||||||||||||||
Loan payables | ¥ 121,687,000 | ||||||||||||||
Interest rate (as a percent) | 0.60% | ||||||||||||||
Repayment of debt | ¥ 68,313,000 | ||||||||||||||
Minimum | |||||||||||||||
Financing receivables, net | |||||||||||||||
Term periods of financing receivables | 30 days | 30 days | |||||||||||||
Maximum | |||||||||||||||
Financing receivables, net | |||||||||||||||
Term periods of financing receivables | 24 months | 24 months |
Summary of significant accoun_5
Summary of significant accounting policies - Estimated useful lives of property, equipment and software, net (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Office furniture and equipment | Minimum | |
Estimated useful lives | |
Estimated useful lives | 3 years |
Office furniture and equipment | Maximum | |
Estimated useful lives | |
Estimated useful lives | 5 years |
Computer and electronic equipment | Minimum | |
Estimated useful lives | |
Estimated useful lives | 3 years |
Computer and electronic equipment | Maximum | |
Estimated useful lives | |
Estimated useful lives | 5 years |
Software | |
Estimated useful lives | |
Estimated useful lives | 5 years |
Summary of significant accoun_6
Summary of significant accounting policies - Others (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($)segmentitem | Dec. 31, 2018CNY (¥)segmentitem | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Goodwill | ||||
Impairment of goodwill | ¥ 0 | ¥ 0 | ||
Impairment of Long-lived Assets | ||||
Impairment of long-lived assets | ¥ 0 | 0 | ||
Financial Guarantee liabilities | ||||
Period of delinquent on an installment of principal and interest of a loan | 1 day | 1 day | ||
Gain from financial guarantee liabilities | $ 3,112 | ¥ 21,397,000 | 0 | ¥ 0 |
Revenue recognition | ||||
Fees collected as upfront | 0 | |||
Limited Upfront fees on selling prices | ¥ 0 | |||
Provision for credit loss | ||||
Individual loans allowance period | 90 days | 90 days | ||
Share-based compensation expenses | ||||
Cumulative share-based compensation expenses for the options that have satisfied the service condition | ¥ 94,800,000 | |||
Value added Tax ("VAT") | ||||
Percentage of value added tax | 6.00% | 6.00% | ||
Segment reporting | ||||
Number of reportable segment | segment | 1 | 1 | ||
Statutory reserves | ||||
Appropriation to the statutory surplus fund, minimum percentage of after-tax profits | 10.00% | 10.00% | ||
Maximum percentage of statutory surplus fund to registered capital | 50.00% | 50.00% | ||
Appropriation to the general reserve fund, minimum percentage of after-tax profits | 10.00% | 10.00% | ||
Maximum percentage of general reserve fund to registered capital | 50.00% | 50.00% | ||
Number of reserve funds | item | 2 | 2 | ||
Transfer of reserves | ¥ 0 | |||
Profit appropriation to general reserve fund and statutory surplus fund | 1,700,000 | 0 | 0 | |
Appropriation to other reserve funds | ¥ 0 | ¥ 0 | ¥ 0 |
Concentration and risks (Detail
Concentration and risks (Details) ¥ in Thousands, $ in Thousands | Mar. 18, 2019USD ($) | Mar. 18, 2019CNY (¥) | Mar. 31, 2019CNY (¥) | Dec. 31, 2018USD ($)item | Dec. 31, 2018CNY (¥)item | Dec. 31, 2017CNY (¥)item | Dec. 31, 2016 | Dec. 31, 2018CNY (¥) |
Concentration and risks | ||||||||
Amount of principal and interest of unsecured loan | ¥ 138,089 | |||||||
Maximum potential future payment | 606,277 | |||||||
Amounts due from related parties | $ 69,148 | ¥ 229,026 | 475,426 | |||||
Ganzhou Jimu Micro Finance Co., Ltd | ||||||||
Concentration and risks | ||||||||
Purchase price | 33,500 | ¥ 230,000 | ||||||
Ganzhou Jimu Micro Finance Co., Ltd | Subsequent event | ||||||||
Concentration and risks | ||||||||
Purchase price | ¥ 230,000 | |||||||
Jimu Group | ||||||||
Concentration and risks | ||||||||
Amounts due from related parties | 69,100 | ¥ 228,548 | 475,426 | |||||
Jimu Group | RMB dominated | ||||||||
Concentration and risks | ||||||||
Amounts due from related parties | 42,900 | 294,900 | ||||||
Jimu Group | US dominated | ||||||||
Concentration and risks | ||||||||
Amounts due from related parties | $ 21,400 | 146,600 | ||||||
Jimu Group | Ganzhou Jimu Micro Finance Co., Ltd | Subsequent event | ||||||||
Concentration and risks | ||||||||
Purchase price | $ 33,500 | ¥ 230,000 | ||||||
Cooperation concentration risk | Total Revenue | Five Business Partners | ||||||||
Concentration and risks | ||||||||
Concentration risk (as a percentage) | 39.50% | 39.50% | 65.10% | 70.20% | ||||
Number of Business Partners | item | 5 | 5 | 5 | |||||
Cooperation concentration risk | Total Revenue | Qunar | ||||||||
Concentration and risks | ||||||||
Concentration risk (as a percentage) | 18.40% | 18.40% | 46.20% | 55.80% | ||||
Concentration of Funding Partners | Loans facilitated | Jimu Box | ||||||||
Concentration and risks | ||||||||
Concentration risk (as a percentage) | 62.00% | 62.00% | 81.00% | 99.00% | ||||
Credit risk | ||||||||
Concentration and risks | ||||||||
Amount of principal and interest of unsecured loan | $ 20,084 | 138,089 | ||||||
Maximum potential future payment | $ 88,200 | ¥ 606,300 | ||||||
Number of timely repay the principal and interest due (in days) | 60 days | 60 days |
Acquisition of Shenzhen Minhe_3
Acquisition of Shenzhen Minheng (Details) - CNY (¥) | Jun. 30, 2016 | Apr. 22, 2015 | Dec. 31, 2016 |
Acquisition of Shenzhen Minheng | |||
Gain on fair value of equity interest | ¥ 394,000 | ||
Shenzhen Qianhai Minheng Commercial Factoring Co., Ltd. | |||
Acquisition of Shenzhen Minheng | |||
Cash consideration | ¥ 1,000,000 | ||
Gain on fair value of equity interest | ¥ 394,000 | ||
Shenzhen Qianhai Minheng Commercial Factoring Co., Ltd. | Jimu Parent | |||
Acquisition of Shenzhen Minheng | |||
Equity interest (as a percent) | 70.00% | 30.00% | |
Cash consideration | ¥ 1,000,000 | ¥ 1 | |
Shenzhen Qianhai Minheng Commercial Factoring Co., Ltd. | Discount rate | |||
Acquisition of Shenzhen Minheng | |||
Major assumptions | 23.00% | ||
Shenzhen Qianhai Minheng Commercial Factoring Co., Ltd. | Terminal growth rate | |||
Acquisition of Shenzhen Minheng | |||
Major assumptions | 3.00% |
Acquisition of Shenzhen Minhe_4
Acquisition of Shenzhen Minheng - Allocation of the purchase price (Details) ¥ in Thousands, $ in Thousands | Jun. 30, 2016CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Amortizable intangible asset | |||||
Goodwill | $ 3,735 | ¥ 25,680 | ¥ 25,680 | ||
Total purchase price comprised of | |||||
Fair value of previously held equity interests | ¥ 394 | ||||
Shenzhen Qianhai Minheng Commercial Factoring Co., Ltd. | |||||
Allocation of the purchase price | |||||
Cash | ¥ 310 | ||||
Financing receivables, net of provision of RMB10,450 | 268,365 | ||||
Other current assets | 18,648 | ||||
Amortizable intangible asset | |||||
Customer database | 9,697 | ||||
Goodwill | 25,680 | ||||
Funding debts | (310,428) | ||||
Other current liabilities | (10,878) | ||||
Deferred tax assets | 2,424 | ||||
Deferred tax liabilities | (2,424) | ||||
Total | 1,394 | ||||
Provision for financing receivables | ¥ 10,450 | ||||
Amortization Years | 5 years 6 months | ||||
Total purchase price comprised of | |||||
Cash consideration paid by parent company | ¥ 1,000 | ||||
Fair value of previously held equity interests | 394 | ||||
Total | ¥ 1,394 |
Acquisition of Shenzhen Minhe_5
Acquisition of Shenzhen Minheng - Pro forma adjustments (Details) - 12 months ended Dec. 31, 2016 ¥ in Thousands, $ in Thousands | USD ($) | CNY (¥) |
Pro forma adjustments | ||
Pro forma total revenues | $ 9,055 | ¥ 59,916 |
Pro forma net loss | $ 35,244 | ¥ 233,212 |
Financing receivables, net (Det
Financing receivables, net (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2018CNY (¥) | |
Short-term: | |||
Short-term financing receivables | ¥ 1,569,080 | ¥ 762,854 | |
Allowance for credit losses | (62,901) | (20,737) | |
Short-term financing receivables, net | $ 107,936 | 1,506,179 | 742,117 |
Long-term: | |||
Long-term financing receivables | 185,136 | 19,297 | |
Allowance for credit losses | (6,509) | (415) | |
Long-term financing receivables, net | $ 2,746 | ¥ 178,627 | ¥ 18,882 |
Maximum term of short-term and long-term financing receivables | 2 years | 2 years |
Financing receivables, net - Ba
Financing receivables, net - Balances of financing receivables by due date (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing receivables, net | ||
Due in 0 - 12 months | ¥ 762,854 | ¥ 1,569,080 |
Due in 13 - 24 months | 19,297 | 185,136 |
Total financing receivables | ¥ 782,151 | ¥ 1,754,216 |
Financing receivables, net - Mo
Financing receivables, net - Movement of the allowance for credit losses (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Movement of the allowance for credit losses | ||
Balance at beginning of the year | ¥ 69,410 | ¥ 11,884 |
Additions | 121,341 | 113,162 |
Reversal | (55,976) | |
Charge-offs | (113,623) | (55,636) |
Balance at end of the year | ¥ 21,152 | ¥ 69,410 |
Financing receivables, net - Ag
Financing receivables, net - Aging analysis of past due (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing receivables | ||
Past Due | ¥ 26,584 | ¥ 54,820 |
Current | 755,567 | 1,699,396 |
Total financing receivables | 782,151 | 1,754,216 |
1 - 30 Days Past Due | ||
Financing receivables | ||
Past Due | 11,123 | 34,102 |
31 - 60 Days Past Due | ||
Financing receivables | ||
Past Due | 7,635 | 11,346 |
61 - 90 Days Past Due | ||
Financing receivables | ||
Past Due | ¥ 7,826 | ¥ 9,372 |
Accrued interest receivable, _3
Accrued interest receivable, net (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) |
Accrued interest receivable, net | ||||
Accrued interest receivable | ¥ 13,083 | ¥ 8,687 | ||
Allowance for doubtful accounts | (2,031) | (1,050) | ¥ (377) | |
Accrued interest receivable, net | $ 1,607 | ¥ 11,052 | ¥ 7,637 |
Accrued interest receivable, _4
Accrued interest receivable, net - Movements in the allowance for doubtful accounts (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Movements in the allowance for doubtful accounts | ||
Balance at beginning of the year | ¥ 1,050 | ¥ 377 |
Additions | 5,914 | 2,868 |
Reversal | (868) | |
Charge-offs | (4,065) | (2,195) |
Balance at end of the year | ¥ 2,031 | ¥ 1,050 |
Accounts receivable, net (Detai
Accounts receivable, net (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) |
Accounts receivable, net | ||||
Receivables for technical service fees from borrowers and financial partners | ¥ 56,020 | ¥ 40,587 | ||
Receivables for marketplace service fees from asset management companies | 1,234 | 1,236 | ||
Receivables for marketplace service fees from insurance companies and others | 4,243 | 161 | ||
Total accounts receivable | 61,497 | 41,984 | ||
Allowance for doubtful accounts | (13,845) | (5,428) | ¥ (490) | |
Accounts receivable, net | $ 6,931 | ¥ 47,652 | ¥ 36,556 |
Accounts receivable, net - Allo
Accounts receivable, net - Allowance for doubtful accounts (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts receivable, net | ||
Balance at beginning of the year | ¥ 5,428 | ¥ 490 |
Additions | 110,840 | 16,480 |
Reversal | (2,813) | |
Charge-offs | (99,610) | (11,542) |
Balance at end of the year | ¥ 13,845 | ¥ 5,428 |
Prepayments and other current_3
Prepayments and other current assets (Details) ¥ in Thousands, $ in Thousands | Jul. 31, 2018USD ($) | Sep. 30, 2018CNY (¥)entity | Mar. 31, 2018CNY (¥) | Feb. 28, 2018CNY (¥)entity | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 05, 2018CNY (¥) | Jul. 12, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Prepayments and other current assets | |||||||||
Deposits with a Business Partner for point-of-sale installment loans | ¥ 15,605 | ||||||||
Professional fees capitalized for issuance of new shares upon the initial public offering | 13,348 | ||||||||
Tax refund receivables from Tax Bureau | 7,834 | ||||||||
Prepaid input value-added tax | ¥ 6,493 | 9,309 | |||||||
Deposits to financial partners and other vendors | 25,206 | 8,603 | |||||||
Prepaid service fees | 19,872 | 6,555 | |||||||
Receivables from third-party online payment platforms | 7,475 | 5,802 | |||||||
Short-term loan to a third party | 138,089 | ||||||||
Financial guarantee assets | 20,610 | ||||||||
Others | 11,263 | 1,847 | |||||||
Total | $ 33,308 | ¥ 229,008 | ¥ 68,903 | ||||||
Loan principal amount | ¥ 220,000 | ¥ 68,141 | |||||||
Plutux Labs | |||||||||
Prepayments and other current assets | |||||||||
Principal amount | $ | $ 20,000 | ||||||||
Annual interest rate (in percent) | 10.50% | ||||||||
Repayment term of loan | 1 year | ||||||||
Unaffiliated entities | Sky City WFOE | |||||||||
Prepayments and other current assets | |||||||||
Number of unaffiliated entities | entity | 3 | 1 | |||||||
Loan principal amount | ¥ 500,000 | ¥ 14,000 | |||||||
Aggregate amount of interests repaid | ¥ 1,650 | ¥ 4,600 |
Property, equipment and softw_3
Property, equipment and software, net (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | |
Property, equipment and software, net | ||||
Total | ¥ 11,979 | ¥ 16,050 | ||
Less: Accumulated depreciation and amortization | (5,332) | (8,244) | ||
Property, equipment and software, net | 6,647 | $ 1,135 | 7,806 | |
Depreciation and amortization expenses | ¥ 2,912 | 2,314 | ||
Computer and electronic equipment | ||||
Property, equipment and software, net | ||||
Total | 7,737 | 11,239 | ||
Software | ||||
Property, equipment and software, net | ||||
Total | 3,008 | 3,705 | ||
Office furniture and equipment | ||||
Property, equipment and software, net | ||||
Total | ¥ 1,234 | ¥ 1,106 |
Long-term investments (Details)
Long-term investments (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Long-term investments | |||
Balance as of beginning of the year | ¥ 6,439 | ||
Investments made | 54,259 | ¥ 10,821 | |
Loss from equity method investments | $ (386) | (2,652) | (2,455) |
Less: Impairment charges | (2,000) | ||
Less: Foreign currency translation adjustments | (8) | 73 | |
Balance as of end of the year | $ 8,441 | 58,038 | 6,439 |
Cost Method | |||
Long-term investments | |||
Investments made | 35,000 | 2,000 | |
Less: Impairment charges | (2,000) | ||
Balance as of end of the year | 35,000 | ||
Equity Method | |||
Long-term investments | |||
Balance as of beginning of the year | 6,439 | ||
Investments made | 19,259 | 8,821 | |
Loss from equity method investments | (2,652) | (2,455) | |
Less: Foreign currency translation adjustments | (8) | 73 | |
Balance as of end of the year | ¥ 23,038 | ¥ 6,439 |
Long-term investments - Cost an
Long-term investments - Cost and Equity method investment (Details) $ in Thousands | Apr. 15, 2018CNY (¥) | Dec. 31, 2018CNY (¥) | Oct. 31, 2017CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Long-term investments | ||||||
Total consideration paid | ¥ 54,259,000 | ¥ 10,821,000 | ||||
Impairment from long-term investments | 2,000,000 | |||||
Share of loss from equity method investments | $ 386 | 2,652,000 | 2,455,000 | |||
Cost Method | ||||||
Long-term investments | ||||||
Carrying value of equity investments without readily determinable fair value | ¥ 35,000,000 | 35,000,000 | ||||
Impairment from long-term investments | 0 | |||||
Chongqing Fullerton | Cost Method | ||||||
Long-term investments | ||||||
Total consideration paid | ¥ 35,000,000 | |||||
Pivot Fintech PTE. Ltd | Equity Method | ||||||
Long-term investments | ||||||
Total consideration paid | ¥ 8,821,000 | |||||
Impairment from long-term investments | 0 | ¥ 0 | ||||
Share of loss from equity method investments | (962,000) | |||||
Avatec | Equity Method | ||||||
Long-term investments | ||||||
Total consideration paid | ¥ 19,259,000 | |||||
Shareholding interests (as a percent) | 40.00% | |||||
Impairment from long-term investments | 0 | |||||
Share of loss from equity method investments | ¥ (1,690,000) |
Loan servicing rights (Details)
Loan servicing rights (Details) - Loan servicing rights | 12 Months Ended |
Dec. 31, 2018 | |
Minimum | |
Loan servicing rights | |
Average period for loan serviced | 6 months 9 days |
Percentage of effective prepayment rate | 1.06% |
Percentage of vintage loss rate | 1.00% |
Percentage of discount rate | 9.96% |
Maximum | |
Loan servicing rights | |
Average period for loan serviced | 25 months 9 days |
Percentage of effective prepayment rate | 4.90% |
Percentage of vintage loss rate | 22.17% |
Percentage of discount rate | 29.49% |
Fair value measurement - Assets
Fair value measurement - Assets and liabilities (Details) $ in Thousands | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) |
Fair value measurement | |||||
Restricted time deposits | $ 36,739 | ¥ 252,599,000 | $ 727 | ¥ 5,000,000 | ¥ 0 |
Recurring | |||||
Fair value measurement | |||||
Cash and cash equivalents | 457,442,000 | 370,891,000 | |||
Restricted time deposits | 252,599,000 | 5,000,000 | |||
Short-term investments | 2,000,000 | ||||
Total | 710,041,000 | 377,891,000 | |||
Financial guarantee liabilities | (15,537,000) | ||||
Total | (15,537,000) | ||||
Recurring | Level 1 Inputs | |||||
Fair value measurement | |||||
Cash and cash equivalents | 457,442,000 | 370,891,000 | |||
Total | 457,442,000 | 370,891,000 | |||
Recurring | Level 2 Inputs | |||||
Fair value measurement | |||||
Restricted time deposits | 252,599,000 | 5,000,000 | |||
Short-term investments | 2,000,000 | ||||
Total | 252,599,000 | ¥ 7,000,000 | |||
Recurring | Level 3 | |||||
Fair value measurement | |||||
Financial guarantee liabilities | (15,537,000) | ||||
Total | ¥ (15,537,000) |
Fair value measurement - Signif
Fair value measurement - Significant unobservable inputs (Details) | Dec. 31, 2018 |
Financial guarantee liabilities | |
Valuation technique | us-gaap:ValuationTechniqueDiscountedCashFlowMember |
Financial guarantee liabilities | Level 3 | Discount rate | |
Financial guarantee liabilities | |
Range of Input | 20 |
Financial guarantee liabilities | Level 3 | Margin on costs | |
Financial guarantee liabilities | |
Range of Input | 90 |
Financial guarantee liabilities | Level 3 | Minimum | Default probability | |
Financial guarantee liabilities | |
Range of Input | 1.6 |
Financial guarantee liabilities | Level 3 | Minimum | Weighted average loss rates of loan principal | |
Financial guarantee liabilities | |
Range of Input | 56.9 |
Financial guarantee liabilities | Level 3 | Minimum | Weighted average loss rates of loan interest | |
Financial guarantee liabilities | |
Range of Input | 16.7 |
Financial guarantee liabilities | Level 3 | Maximum | Default probability | |
Financial guarantee liabilities | |
Range of Input | 3.6 |
Financial guarantee liabilities | Level 3 | Maximum | Weighted average loss rates of loan principal | |
Financial guarantee liabilities | |
Range of Input | 62.4 |
Financial guarantee liabilities | Level 3 | Maximum | Weighted average loss rates of loan interest | |
Financial guarantee liabilities | |
Range of Input | 30.4 |
Intangible assets, net (Details
Intangible assets, net (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | |
Intangible assets, net | ||||
Less: Accumulated amortization | ¥ (2,647) | ¥ (4,436) | ||
Intangible assets, net | 7,212 | $ 789 | 5,423 | |
Amortization expenses | ¥ 1,789 | 1,765 | ||
Estimated amortization expenses to the intangible assets for future periods | ||||
2019 | 1,793 | |||
2020 | 1,793 | |||
2021 | 1,793 | |||
2022 | 44 | |||
Customer database | ||||
Intangible assets, net | ||||
Intangible assets, gross | 9,697 | 9,697 | ||
Trademark | ||||
Intangible assets, net | ||||
Intangible assets, gross | ¥ 162 | ¥ 162 |
Funding debts - Outstanding fun
Funding debts - Outstanding funding debts (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Short-term: | |||
Short-term funding debts | $ 98,896 | ¥ 679,957 | ¥ 1,220,884 |
Long-term: | |||
Long-term funding debts | $ 3,127 | 21,498 | 469,733 |
Loan payables to individual investors via Jimu Box and other financial partners | |||
Short-term: | |||
Short-term funding debts | 268,167 | 1,016,113 | |
Loan payables to individual investors via financial partners | |||
Long-term: | |||
Long-term funding debts | 21,498 | 31,769 | |
Loan payables to investors of consolidated trusts | |||
Short-term: | |||
Short-term funding debts | 290,103 | 204,771 | |
Long-term: | |||
Long-term funding debts | 194,111 | ||
Loan payables to a shareholder | |||
Short-term: | |||
Short-term funding debts | ¥ 121,687 | ||
Loan payables to investors of asset-backed securitized debts | |||
Long-term: | |||
Long-term funding debts | ¥ 243,853 |
Funding debts - Remaining contr
Funding debts - Remaining contractual maturity (Details) ¥ in Thousands | Dec. 31, 2018CNY (¥) |
Funding debts | |
Funding debts | |
Less than 1 year | ¥ 679,957 |
More than 3 years | 21,498 |
Total | 701,455 |
Loan payables to individual investors via financial partners | |
Funding debts | |
Less than 1 year | 268,167 |
More than 3 years | 21,498 |
Total | 289,665 |
Loan payables to investors of consolidated trusts | |
Funding debts | |
Less than 1 year | 290,103 |
Total | 290,103 |
Loan payables to a shareholder | |
Funding debts | |
Less than 1 year | 121,687 |
Total | 121,687 |
Associated interest payments | |
Funding debts | |
Less than 1 year | 24,300 |
1 - 2 years | 2,511 |
2 - 3 years | 2,511 |
More than 3 years | 2,092 |
Total | 31,414 |
Interest payments | |
Funding debts | |
Less than 1 year | 24,300 |
1 - 2 years | 2,511 |
2 - 3 years | 2,511 |
More than 3 years | 2,092 |
Total | ¥ 31,414 |
Funding debts - Terms of the fu
Funding debts - Terms of the funding debts borrowed and asset-backed securities (Details) ¥ in Millions | 1 Months Ended | 12 Months Ended | ||||
Jun. 30, 2017CNY (¥)item | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 05, 2018 | Nov. 08, 2018 | Jul. 12, 2018 | |
Funding debts | ||||||
Weighted average interest rate on funding debts | 13.49% | 7.61% | ||||
Interest rate (as a percent) | 4.785% | 4.35% | 2.58% | |||
ABS | ||||||
Funding debts | ||||||
ABS value | ¥ 245 | |||||
Senior tranche securities A | Institutional funding partners | ||||||
Funding debts | ||||||
ABS value | ¥ 180 | |||||
Number of institutional funding partners | item | 5 | |||||
Interest rate (as a percent) | 6.00% | |||||
Percentage of total securities issued under plan | 73.50% | |||||
Senior tranche securities B | Qunar | ||||||
Funding debts | ||||||
ABS value | ¥ 40 | |||||
Interest rate (as a percent) | 7.00% | |||||
Percentage of total securities issued under plan | 16.30% | |||||
Subordinated tranche securities | ||||||
Funding debts | ||||||
ABS value | ¥ 25 | |||||
Percentage of total securities issued under plan | 10.20% | |||||
Loan payables to individual investors via Jimu Box and investors of certain consolidated trusts | Minimum | ||||||
Funding debts | ||||||
Terms of the funding debts | 30 days | 30 days | ||||
Loan payables to individual investors via Jimu Box and investors of certain consolidated trusts | Maximum | ||||||
Funding debts | ||||||
Terms of the funding debts | 48 months | 48 months | ||||
Loan payables to investors of asset-backed securitized debts | ||||||
Funding debts | ||||||
Terms of the funding debts | 24 months | 24 months |
Funding debts - Trusts were adm
Funding debts - Trusts were administered by third-party trust companies (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 05, 2018 | Nov. 08, 2018 | Jul. 12, 2018 | Dec. 31, 2017CNY (¥) | Jun. 30, 2017 | |
Funding debts | |||||||
Total assets | $ 344,414 | ¥ 2,368,026 | ¥ 2,450,797 | ||||
Interest rate (as a percent) | 4.785% | 4.35% | 2.58% | ||||
Third-party trust companies, including Yunnan Trusts II, and Oriental Trusts | |||||||
Funding debts | |||||||
Total assets | ¥ 200,000 | ||||||
Minimum period of the delinquent loans outstanding agreed to repurchase | 60 days | ||||||
Third-party trust companies, including Yunnan Trusts I and Huarun Trust | |||||||
Funding debts | |||||||
Minimum period of the delinquent loans outstanding agreed to repurchase | 60 days | ||||||
Senior tranche securities B | Third-party trust companies, including Yunnan Trusts I and Huarun Trust | China Securities Credit Investment | |||||||
Funding debts | |||||||
Interest rate (as a percent) | 8.50% | 8.50% | |||||
Percentage of total securities issued by trusts | 10.00% | 10.00% | |||||
Subordinated tranche securities | |||||||
Funding debts | |||||||
Percentage of total securities issued by trusts | 10.20% | ||||||
Subordinated tranche securities | Third-party trust companies, including Yunnan Trusts I and Huarun Trust | |||||||
Funding debts | |||||||
Percentage of total securities issued by trusts | 10.00% | 10.00% | |||||
Minimum | Third-party trust companies, including Yunnan Trusts I and Huarun Trust | |||||||
Funding debts | |||||||
Total assets | ¥ 100,000 | ||||||
Minimum | Senior tranche securities | Third-party trust companies, including Yunnan Trusts II, and Oriental Trusts | External investors | |||||||
Funding debts | |||||||
Interest rate (as a percent) | 6.80% | 6.80% | |||||
Percentage of total securities issued by trusts | 85.00% | 85.00% | |||||
Minimum | Senior tranche securities A | Third-party trust companies, including Yunnan Trusts I and Huarun Trust | External investors | |||||||
Funding debts | |||||||
Interest rate (as a percent) | 7.00% | 7.00% | |||||
Percentage of total securities issued by trusts | 80.00% | 80.00% | |||||
Minimum | Subordinated tranche securities | Third-party trust companies, including Yunnan Trusts II, and Oriental Trusts | |||||||
Funding debts | |||||||
Percentage of total securities issued by trusts | 4.00% | 4.00% | |||||
Maximum | Third-party trust companies, including Yunnan Trusts II, and Oriental Trusts | |||||||
Funding debts | |||||||
Term of installment loans made to individual borrowers | 12 months | ||||||
Maximum | Third-party trust companies, including Yunnan Trusts I and Huarun Trust | |||||||
Funding debts | |||||||
Total assets | ¥ 200,000 | ||||||
Term of installment loans made to individual borrowers | 24 months | ||||||
Maximum | Senior tranche securities | Third-party trust companies, including Yunnan Trusts II, and Oriental Trusts | External investors | |||||||
Funding debts | |||||||
Interest rate (as a percent) | 8.50% | 8.50% | |||||
Percentage of total securities issued by trusts | 96.00% | 96.00% | |||||
Maximum | Senior tranche securities A | Third-party trust companies, including Yunnan Trusts I and Huarun Trust | External investors | |||||||
Funding debts | |||||||
Interest rate (as a percent) | 8.20% | 8.20% | |||||
Percentage of total securities issued by trusts | 90.00% | 90.00% | |||||
Maximum | Subordinated tranche securities | Third-party trust companies, including Yunnan Trusts II, and Oriental Trusts | |||||||
Funding debts | |||||||
Percentage of total securities issued by trusts | 15.00% | 15.00% |
Short-term borrowings (Details)
Short-term borrowings (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | ||||
Dec. 05, 2018CNY (¥)item | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Nov. 08, 2018 | Jul. 12, 2018CNY (¥) | |
Short-term borrowings | |||||
Number of loans | item | 3 | ||||
Principal Amount | ¥ 220,000 | ¥ 68,141 | |||
Interest Rate Per Annum (as a percent) | 4.785% | 4.35% | 2.58% | ||
Short-term borrowings | $ 31,998 | ¥ 220,000 | |||
Restricted time deposit | |||||
Short-term borrowings | |||||
Loan secured | ¥ 245,565 |
Financial guarantee liabiliti_3
Financial guarantee liabilities (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Financial guarantee liabilities | ||||
Fair value of financial guarantee liabilities upon the inception of new loans | ¥ 44,549,000 | |||
Release of financial guarantee liabilities upon repayment | $ (3,112) | (21,397,000) | ¥ 0 | ¥ 0 |
Payouts during the period | (7,615,000) | |||
Contingent liabilities | 0 | ¥ 0 | ¥ 0 | |
Balance at the end of the year | $ 2,260 | 15,537,000 | ||
Maximum potential future payment | ¥ 606,277,000 |
Accrued expenses and other li_3
Accrued expenses and other liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Accrued expenses and other liabilities | |||
Payable to Business Partners for point-of-sale installment loans | ¥ 4,681 | ¥ 31,877 | |
Payable to asset management companies for funds received from customers | 3,516 | 22,107 | |
Payables to individual investors on Jimu Box and financial partners for collecting principal and interests on behalf of borrowers | 9,586 | 15,492 | |
Payroll payable | 21,655 | 22,243 | |
Payable related to professional fees | 16,819 | 14,057 | |
Payable related to service fees and others | 8,937 | 3,022 | |
Payable related to rental fees | 1,400 | ||
Payables related to long-term investments | $ 5,091 | 35,000 | |
Deferred revenue | 54,686 | 1,916 | |
Others | 2,582 | 75 | |
Total | $ 22,902 | ¥ 157,462 | ¥ 112,189 |
Taxation (Details)
Taxation (Details) $ in Thousands | 12 Months Ended | 48 Months Ended | |||||
Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2021 | Dec. 31, 2019 | Dec. 31, 2018CNY (¥) | |
Taxation | |||||||
Enterprise income tax rate (as a percent) | 25.00% | 25.00% | 25.00% | 25.00% | |||
Retained earnings | $ (126,929) | ¥ (872,698,000) | |||||
Income tax expense | $ 831 | ¥ 5,709,000 | ¥ 18,516,000 | ¥ 167,000 | |||
High and new technology enterprises | |||||||
Taxation | |||||||
Preferential tax rate (as a percent) | 15.00% | 15.00% | |||||
High and new technology enterprises | Beijing Hongdian Fund Distributor Co., Ltd. | |||||||
Taxation | |||||||
Preferential tax rate (as a percent) | 15.00% | ||||||
Cayman Islands | |||||||
Taxation | |||||||
Withholding tax to be imposed upon payments of dividends to shareholders (as a percent) | 0.00% | 0.00% | |||||
Hong Kong | |||||||
Taxation | |||||||
Enterprise income tax rate (as a percent) | 16.50% | 16.50% | |||||
PRC | |||||||
Taxation | |||||||
Enterprise income tax rate (as a percent) | 25.00% | 25.00% | |||||
PRC | High and new technology enterprises | Sky City WFOE | |||||||
Taxation | |||||||
Preferential tax rate (as a percent) | 15.00% | ||||||
PRC | High and new technology enterprises | Pintec Beijing WFOE | |||||||
Taxation | |||||||
Preferential tax rate (as a percent) | 15.00% | ||||||
PRC | FIE | |||||||
Taxation | |||||||
Withholding income tax rate on dividends Distributed (as a percent) | 10.00% | 10.00% | |||||
Maximum withholding income tax rate on dividends paid (as a percent) | 5.00% | 5.00% | |||||
Retained earnings | ¥ 0 |
Taxation - Current and deferred
Taxation - Current and deferred portion of income tax (benefit)/expense (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Current and deferred portion of income tax (benefit)/expense | ||||
Current income tax expense | ¥ 42,610 | ¥ 18,516 | ¥ 167 | |
Deferred income tax benefit | (36,901) | |||
Income tax expense | $ 831 | ¥ 5,709 | ¥ 18,516 | ¥ 167 |
Taxation - Reconciliation betwe
Taxation - Reconciliation between the statutory EIT rate and the effective tax rates (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Taxation | |||
Statutory income tax rate in PRC | 25.00% | 25.00% | 25.00% |
Tax effect of non-deductible expenses | 272.15% | 6.54% | 0.18% |
Changes in valuation allowance | (211.94%) | (52.83%) | (25.18%) |
Tax rate difference from statutory rate in other jurisdictions | 42.03% | (6.62%) | |
Tax effect of preferential tax treatments | (54.78%) | ||
Effective tax rate | 72.46% | (27.91%) |
Taxation - Deferred tax assets
Taxation - Deferred tax assets and deferred tax liabilities (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||||
Allowance for doubtful accounts and credit losses and impairment loss of long-term investment | ¥ 45,841 | ¥ 34,154 | ¥ 3,188 | |
Deductible advertising fees | 1,894 | 1,894 | 2,842 | |
Net operating loss carry forwards | 18,191 | 14,979 | 12,886 | |
Accrued expense and other liabilities | 1,073 | |||
Net operating loss carry forwards acquired in a business combination | 1,322 | 1,763 | 2,204 | |
Subtotal | 68,321 | 52,790 | 21,120 | |
Less: valuation allowance | (30,098) | (51,027) | (18,916) | ¥ (14,018) |
Total deferred tax assets, net | 38,223 | 1,763 | 2,204 | |
Deferred tax liabilities: | ||||
Intangible assets acquired in a business combination | 1,322 | 1,763 | 2,204 | |
Net deferred tax liabilities | ¥ 1,322 | ¥ 1,763 | ¥ 2,204 |
Taxation - Changes in valuation
Taxation - Changes in valuation allowance (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | |
Taxation | |||||
Balance at beginning of the year | ¥ 51,027 | ¥ 18,916 | ¥ 14,018 | ||
Additions | 15,305 | 32,111 | 4,898 | ||
Reversals | (36,234) | ||||
Balance at end of the year | 30,098 | 51,027 | 18,916 | ||
Valuation allowance | 51,027 | 18,916 | ¥ 14,018 | ¥ 30,098 | ¥ 51,027 |
Operating loss carryforwards | 99,824 | 70,191 | |||
Valuation allowance for net operating loss carryforwards | ¥ 18,191 | 14,978 | |||
Provision for credit losses | |||||
Taxation | |||||
Balance at beginning of the year | 34,154 | ||||
Balance at end of the year | 34,154 | ||||
Valuation allowance | ¥ 34,154 | ¥ 34,154 | ¥ 34,154 |
Share based compensation expe_3
Share based compensation expenses - Share options issued by Jimu Parent to employees of the Company (Details) | Nov. 28, 2018$ / sharesshares | Jul. 31, 2018$ / sharesshares | May 31, 2018$ / sharesshares | Mar. 27, 2018shares | Dec. 31, 2017$ / sharesshares | Dec. 31, 2018$ / shares | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2017$ / shares | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2016$ / shares | Dec. 31, 2016CNY (¥)shares | Dec. 31, 2015CNY (¥)$ / sharesshares | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2016CNY (¥)shares |
Share based compensation expenses | |||||||||||||||
Share-based compensation expenses allocated from Jimu Parent | ¥ | ¥ 36,496,000 | ¥ 31,018,000 | ¥ 25,665,000 | ||||||||||||
Options Outstanding | |||||||||||||||
Outstanding at beginning of the year (in shares) | shares | 0 | ||||||||||||||
Granted (in shares) | shares | 610,000 | 740,000 | 16,397,500 | 23,187,818 | 17,747,500 | ||||||||||
Exercised (in shares) | shares | 0 | ||||||||||||||
Forfeited (in shares) | shares | (235,936) | ||||||||||||||
Outstanding at end of the year (in shares) | shares | 0 | 17,511,564 | 0 | ||||||||||||
Vested and expected to vest at end of the year (in shares) | shares | 17,511,564 | ||||||||||||||
Weighted Average Remaining Contractual Life | |||||||||||||||
Outstanding (in years) | 8 years 5 months 19 days | 0 years | |||||||||||||
Vested and expected to vest (in years) | 8 years 5 months 19 days | ||||||||||||||
Average Intrinsic Value | |||||||||||||||
Outstanding | ¥ | ¥ 153,999,000 | ¥ 0 | |||||||||||||
Vested and expected to vest at end of the year | ¥ | 153,999,000 | ||||||||||||||
Additional Information | |||||||||||||||
Weighted average grant date fair value of options granted | $ 1.2964 | ||||||||||||||
Fair value assumptions | |||||||||||||||
Fair value of the underlying shares on the date of option grants | $ 1.5899 | $ 1.4506 | $ 1.2785 | ||||||||||||
Service-based share options | |||||||||||||||
Share based compensation expenses | |||||||||||||||
Share-based compensation expenses allocated from Jimu Parent | ¥ | ¥ 26,775,000 | ¥ 20,910,000 | ¥ 13,025,000 | ||||||||||||
Options expiration period | 10 years | ||||||||||||||
Additional Information | |||||||||||||||
Unrecognized share-based compensation expenses | ¥ | ¥ 52,959,000 | ||||||||||||||
Fair value assumptions | |||||||||||||||
Risk-free interest rate, minimum (per annum) | 2.70% | ||||||||||||||
Risk-free interest rate, maximum (per annum) | 2.89% | ||||||||||||||
Expected term (in years) | 10 years | ||||||||||||||
Service-based share options | Minimum | |||||||||||||||
Fair value assumptions | |||||||||||||||
Fair value of the underlying shares on the date of option grants | 1.2785 | ||||||||||||||
Service-based share options | Maximum | |||||||||||||||
Fair value assumptions | |||||||||||||||
Fair value of the underlying shares on the date of option grants | 1.4506 | ||||||||||||||
Jimu Parent | |||||||||||||||
Options Outstanding | |||||||||||||||
Outstanding at beginning of the year (in shares) | shares | 16,202,892 | 15,887,042 | 11,612,548 | ||||||||||||
Granted (in shares) | shares | 0 | 520,000 | 4,627,563 | ||||||||||||
Exercised (in shares) | shares | 0 | 0 | 0 | ||||||||||||
Forfeited (in shares) | shares | (333,780) | (204,150) | (353,069) | ||||||||||||
Outstanding at end of the year (in shares) | shares | 16,202,892 | 15,869,112 | 16,202,892 | 15,887,042 | 11,612,548 | ||||||||||
Vested and expected to vest at end of the year (in shares) | shares | 15,869,112 | 16,202,892 | 15,887,042 | ||||||||||||
Exercisable at end of the year (in shares) | shares | 12,121,038 | 9,219,980 | 5,627,542 | ||||||||||||
Weighted Average Exercise Price | |||||||||||||||
Outstanding at beginning of the year (in dollars per share) | 0.87 | $ 0.87 | $ 0.82 | ||||||||||||
Granted (in dollars per share) | 0 | 1 | 1 | ||||||||||||
Exercised (in dollars per share) | 0 | 0 | 0 | ||||||||||||
Forfeited (in dollars per share) | 1 | 1 | 1 | ||||||||||||
Outstanding at end of the year (in dollars per share) | $ 0.87 | 0.87 | 0.87 | 0.87 | $ 0.82 | ||||||||||
Vested and expected to vest at end of the year (in dollars per share) | 0.87 | 0.87 | 0.87 | 0.87 | |||||||||||
Exercisable at end of the year (in dollars per share) | 0.79 | 0.81 | 0.79 | 0.74 | |||||||||||
Weighted Average Remaining Contractual Life | |||||||||||||||
Outstanding (in years) | 6 years 5 months 16 days | 7 years 9 months | 8 years 7 months 17 days | 9 years | |||||||||||
Vested and expected to vest (in years) | 6 years 5 months 16 days | 7 years 9 months | 8 years 7 months 17 days | ||||||||||||
Exercisable (in years) | 6 years 5 months 16 days | 7 years 9 months | 8 years 7 months 17 days | ||||||||||||
Average Intrinsic Value | |||||||||||||||
Outstanding | ¥ | $ 2,274,000 | ¥ 27,885,000 | ¥ 27,998,000 | ¥ 26,538,000 | |||||||||||
Vested and expected to vest at end of the year | ¥ | 27,885,000 | 27,998,000 | 26,538,000 | ||||||||||||
Exercisable at end of the year | ¥ | 16,353,000 | 8,824,000 | ¥ 2,755,000 | ||||||||||||
Jimu Parent | Service-based share options | |||||||||||||||
Share based compensation expenses | |||||||||||||||
Vesting period of options | 4 years | ||||||||||||||
Awards vested upon the end of the calendar year or the first anniversary dates of the grants (in percent) | 25.00% | ||||||||||||||
Options expiration period | 10 years | ||||||||||||||
Additional Information | |||||||||||||||
Weighted average grant date fair value of options granted | 0 | 1.88 | $ 1.5 | ||||||||||||
Unrecognized share-based compensation expenses | ¥ | ¥ 27,902,000 | ¥ 49,854,000 | |||||||||||||
Unrecognized share-based compensation expenses to be recognized, weighted-average period | 7 months 28 days | 7 months 28 days | |||||||||||||
Fair value assumptions | |||||||||||||||
Expected volatility, minimum | 34.60% | 34.60% | |||||||||||||
Expected volatility, maximum | 40.20% | 40.20% | |||||||||||||
Risk-free interest rate, minimum (per annum) | 2.02% | 2.02% | |||||||||||||
Risk-free interest rate, maximum (per annum) | 3.02% | 3.02% | |||||||||||||
Exercise multiples, Minimum | 2.2 | 2.2 | |||||||||||||
Exercise multiples, Maximum | 2.8 | 2.8 | |||||||||||||
Expected dividend yield | 0.00% | 0.00% | |||||||||||||
Expected term (in years) | 10 years | 10 years | |||||||||||||
Jimu Parent | Service-based share options | Minimum | |||||||||||||||
Fair value assumptions | |||||||||||||||
Fair value of the underlying shares on the date of option grants | 0.45 | 0.45 | 0.45 | ||||||||||||
Jimu Parent | Service-based share options | Maximum | |||||||||||||||
Fair value assumptions | |||||||||||||||
Fair value of the underlying shares on the date of option grants | $ 2.70 | $ 2.70 | $ 2.70 |
Share based compensation expe_4
Share based compensation expenses - Restriction of ordinary shares held by senior management (Details) ¥ in Thousands | 12 Months Ended | |||||||||
Dec. 31, 2018CNY (¥)$ / shares | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2017CNY (¥)$ / shares | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2016$ / shares | Dec. 31, 2016CNY (¥)shares | Nov. 28, 2018$ / shares | Jul. 31, 2018$ / shares | May 31, 2018$ / shares | Mar. 05, 2014installment$ / sharesshares | |
Share based compensation expenses | ||||||||||
Weighted average grant date fair value of options granted (in dollars per share) | $ 1.5899 | $ 1.4506 | $ 1.2785 | |||||||
Additional information | ||||||||||
Share-based compensation expenses allocated from Jimu Parent | ¥ | ¥ 36,496 | ¥ 31,018 | ¥ 25,665 | |||||||
Restricted share | ||||||||||
Number of shares | ||||||||||
Unvested at beginning of the year (in shares) | shares | 4,096,458 | 7,522,601 | 10,772,744 | |||||||
Granted (in shares) | shares | 400,000 | |||||||||
Vested (in shares) | shares | (1,987,648) | (3,426,143) | (3,650,143) | |||||||
Forfeited (in shares) | shares | (540,810) | |||||||||
Unvested at end of the year (in shares) | shares | 1,568,000 | 4,096,458 | 7,522,601 | |||||||
Weighted-Average Grant Date Fair Value | ||||||||||
Unvested at beginning of the year (in shares) | $ 0 | $ 0 | $ 0 | |||||||
Granted (in dollars per share) | 0 | 0 | 1.79 | |||||||
Vested (in dollars per share) | 0 | 0 | 0 | |||||||
Forfeited (in dollars per share) | 0 | |||||||||
Unvested at end of the year (in shares) | $ 0 | $ 0 | $ 0 | |||||||
Additional information | ||||||||||
Share-based compensation expenses allocated from Jimu Parent | ¥ | ¥ 9,721 | ¥ 10,108 | ||||||||
Unrecognized compensation cost | ¥ | $ 2,988 | ¥ 2,988 | $ 12,833 | ¥ 12,833 | ||||||
Jimu Parent | Restricted share | ||||||||||
Share based compensation expenses | ||||||||||
Ordinary shares became restricted (as a percent) | 40.00% | |||||||||
Ordinary shares held by certain members of senior management | shares | 72,000,000 | |||||||||
Number of equal and continuous monthly installments upon meting the vesting criteria | installment | 60 | |||||||||
Weighted average grant date fair value of options granted (in dollars per share) | $ 0.45 |
Share based compensation expe_5
Share based compensation expenses - Share options issued by Pintec (Details) $ / shares in Units, $ in Thousands | Nov. 28, 2018$ / sharesshares | Jul. 31, 2018$ / sharesshares | May 31, 2018$ / sharesshares | Mar. 27, 2018shares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2017CNY (¥)$ / shares | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2016CNY (¥) | Dec. 31, 2018CNY (¥)shares |
Share based compensation expenses | ||||||||||
Additional numbers of share options paired for each outstanding option | shares | 1 | |||||||||
Exercise price | $ 0.000125 | $ 0.000125 | $ 0.000125 | |||||||
Options Outstanding | ||||||||||
Outstanding at beginning of the year (in shares) | shares | 0 | 0 | ||||||||
Granted (in shares) | shares | 610,000 | 740,000 | 16,397,500 | 23,187,818 | 17,747,500 | 17,747,500 | ||||
Exercised (in shares) | shares | 0 | 0 | ||||||||
Forfeited (in shares) | shares | (235,936) | (235,936) | ||||||||
Outstanding at end of the year (in shares) | shares | 17,511,564 | 17,511,564 | 0 | |||||||
Expected to vest (in shares) | shares | 17,511,564 | |||||||||
Weighted-Average Grant-Date Fair Value | ||||||||||
Outstanding at beginning of the year (in dollars per share) | $ 0 | |||||||||
Granted (in dollars per share) | 1.2964 | |||||||||
Exercised (in dollars per share) | 0 | |||||||||
Forfeited (in dollars per share) | 1.2785 | |||||||||
Outstanding at end of the year (in dollars per share) | 1.2968 | $ 0 | ||||||||
Expected to vest (in shares) | $ 1.2968 | |||||||||
Weighted Average Remaining Contractual Life | ||||||||||
Granted (in years) | 10 years | 10 years | ||||||||
Outstanding (in years) | 8 years 5 months 19 days | 8 years 5 months 19 days | 0 years | |||||||
Expected to vest (in years) | 8 years 5 months 19 days | 8 years 5 months 19 days | ||||||||
Average Intrinsic Value | ||||||||||
Outstanding | ¥ | $ 0 | ¥ 0 | ¥ 153,999,000 | |||||||
Granted | ¥ | 154,775,000 | |||||||||
Vested and expected to vest at end of the year | ¥ | 153,999,000 | |||||||||
Additional Information | ||||||||||
Share-based compensation expenses | $ 19,091 | ¥ 131,260,000 | ¥ 31,018,000 | ¥ 25,665,000 | ||||||
Fair value assumptions | ||||||||||
Fair value of the underlying shares on the date of option grants | $ 1.5899 | $ 1.4506 | $ 1.2785 | |||||||
Service-based share options | ||||||||||
Additional Information | ||||||||||
Share-based compensation expenses | ¥ | ¥ 94,764,000 | |||||||||
Unrecognized share-based compensation expenses | ¥ | ¥ 52,959,000 | |||||||||
Fair value assumptions | ||||||||||
Expected volatility | 37.60% | 37.60% | ||||||||
Risk-free interest rate, minimum (per annum) | 2.70% | 2.70% | ||||||||
Risk-free interest rate, maximum (per annum) | 2.89% | 2.89% | ||||||||
Expected term (in years) | 10 years | 10 years | ||||||||
Minimum | Service-based share options | ||||||||||
Fair value assumptions | ||||||||||
Fair value of the underlying shares on the date of option grants | $ 1.2785 | |||||||||
Maximum | Service-based share options | ||||||||||
Fair value assumptions | ||||||||||
Fair value of the underlying shares on the date of option grants | $ 1.4506 |
Pre-IPO Preferred Shares (Detai
Pre-IPO Preferred Shares (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Jul. 31, 2018shares | Dec. 31, 2018USD ($)Voteshares | Dec. 31, 2018CNY (¥)Voteshares | |
Preferred shares activities | |||
Balance at beginning of year (in shares) | shares | 0 | 0 | |
Balance at beginning of year | ¥ 0 | ||
Completion of reorganization (in shares) | shares | 100,184,191 | 100,184,191 | |
Completion of reorganization | ¥ 696,982,000 | ||
Issuance of Preferred Shares (in shares) | shares | 64,480,378 | 64,480,378 | |
Issuance of Preferred Shares | ¥ 675,337,000 | ||
Preferred Shares redemption value accretion | $ 9,505 | ¥ 65,355,000 | |
Conversion of Pre-IPO Preferred Shares into Class A Ordinary Shares (in shares) | shares | (164,664,569) | (164,664,569) | |
Conversion of Pre-IPO Preferred Shares into Class A Ordinary Shares | ¥ (1,437,674,000) | ||
Balance at end of year (in shares) | shares | 0 | 0 | |
Balance at end of year | ¥ 0 | ||
Pre-IPO Preferred Shares | |||
Pre-IPO Preferred Shares | |||
Preferred stock dividends percentage on original issuance price | 8.00% | 8.00% | |
Dividend declared | ¥ 0 | ||
Preferred shares redemption rights, percentage of annual interest on deemed issue price | 8.00% | 8.00% | |
Pre-IPO Preferred shares redemption value accretion | ¥ 65,400,000 | ||
Embedded beneficial conversion feature | ¥ 0 | ||
Pre-IPO Series Seed-A Preferred Shares | |||
Pre-IPO Preferred Shares | |||
Minimum percentage of consent triggers automatic conversion | 50.00% | 50.00% | |
Liquidation preferences percentage on issue price | 100.00% | 100.00% | |
Series Seed-A-1 Preferred Shares | |||
Preferred shares activities | |||
Balance at beginning of year (in shares) | shares | 0 | 0 | |
Balance at beginning of year | ¥ 0 | ||
Completion of reorganization (in shares) | shares | 2,500,000 | 2,500,000 | |
Completion of reorganization | ¥ 2,437,000 | ||
Preferred Shares redemption value accretion | ¥ 161,000 | ||
Conversion of Pre-IPO Preferred Shares into Class A Ordinary Shares (in shares) | shares | 2,500,000 | (2,500,000) | (2,500,000) |
Conversion of Pre-IPO Preferred Shares into Class A Ordinary Shares | ¥ (2,598,000) | ||
Balance at end of year (in shares) | shares | 0 | 0 | |
Balance at end of year | ¥ 0 | ||
Series Seed-A-2 Preferred Shares | |||
Preferred shares activities | |||
Balance at beginning of year (in shares) | shares | 0 | 0 | |
Balance at beginning of year | ¥ 0 | ||
Completion of reorganization (in shares) | shares | 17,678,568 | 17,678,568 | |
Completion of reorganization | ¥ 21,975,000 | ||
Preferred Shares redemption value accretion | ¥ 1,497,000 | ||
Conversion of Pre-IPO Preferred Shares into Class A Ordinary Shares (in shares) | shares | 17,678,568 | (17,678,568) | (17,678,568) |
Conversion of Pre-IPO Preferred Shares into Class A Ordinary Shares | ¥ (23,472,000) | ||
Balance at end of year (in shares) | shares | 0 | 0 | |
Balance at end of year | ¥ 0 | ||
Series Seed-B Preferred Shares | |||
Pre-IPO Preferred Shares | |||
Minimum percentage of consent triggers automatic conversion | 50.00% | 50.00% | |
Liquidation preferences percentage on issue price | 100.00% | 100.00% | |
Preferred shares activities | |||
Balance at beginning of year (in shares) | shares | 0 | 0 | |
Balance at beginning of year | ¥ 0 | ||
Completion of reorganization (in shares) | shares | 37,257,705 | 37,257,705 | |
Completion of reorganization | ¥ 175,563,000 | ||
Preferred Shares redemption value accretion | ¥ 11,493,000 | ||
Conversion of Pre-IPO Preferred Shares into Class A Ordinary Shares (in shares) | shares | 37,257,705 | (37,257,705) | (37,257,705) |
Conversion of Pre-IPO Preferred Shares into Class A Ordinary Shares | ¥ (187,056,000) | ||
Balance at end of year (in shares) | shares | 0 | 0 | |
Balance at end of year | ¥ 0 | ||
Series Seed-C Preferred Shares | |||
Pre-IPO Preferred Shares | |||
Minimum percentage of consent triggers automatic conversion | 50.00% | 50.00% | |
Liquidation preferences percentage on issue price | 100.00% | 100.00% | |
Preferred shares activities | |||
Balance at beginning of year (in shares) | shares | 0 | 0 | |
Balance at beginning of year | ¥ 0 | ||
Completion of reorganization (in shares) | shares | 42,747,918 | 42,747,918 | |
Completion of reorganization | ¥ 497,007,000 | ||
Preferred Shares redemption value accretion | ¥ 32,589,000 | ||
Conversion of Pre-IPO Preferred Shares into Class A Ordinary Shares (in shares) | shares | 42,747,918 | (42,747,918) | (42,747,918) |
Conversion of Pre-IPO Preferred Shares into Class A Ordinary Shares | ¥ (529,596,000) | ||
Balance at end of year (in shares) | shares | 0 | 0 | |
Balance at end of year | ¥ 0 | ||
Series A-1 Preferred Shares | |||
Pre-IPO Preferred Shares | |||
Minimum percentage of consent triggers automatic conversion | 50.00% | 50.00% | |
Liquidation preferences percentage on issue price | 100.00% | 100.00% | |
Preferred shares activities | |||
Balance at beginning of year (in shares) | shares | 0 | 0 | |
Balance at beginning of year | ¥ 0 | ||
Issuance of Preferred Shares (in shares) | shares | 25,650,679 | 25,650,679 | |
Issuance of Preferred Shares | ¥ 267,893,000 | ||
Preferred Shares redemption value accretion | ¥ 7,847,000 | ||
Conversion of Pre-IPO Preferred Shares into Class A Ordinary Shares (in shares) | shares | 25,650,679 | (25,650,679) | (25,650,679) |
Conversion of Pre-IPO Preferred Shares into Class A Ordinary Shares | ¥ (275,740,000) | ||
Balance at end of year (in shares) | shares | 0 | 0 | |
Balance at end of year | ¥ 0 | ||
Series A-2 Preferred Shares | |||
Pre-IPO Preferred Shares | |||
Minimum percentage of consent triggers automatic conversion | 50.00% | 50.00% | |
Liquidation preferences percentage on issue price | 100.00% | 100.00% | |
Preferred shares activities | |||
Balance at beginning of year (in shares) | shares | 0 | 0 | |
Balance at beginning of year | ¥ 0 | ||
Issuance of Preferred Shares (in shares) | shares | 38,829,699 | 38,829,699 | |
Issuance of Preferred Shares | ¥ 407,444,000 | ||
Preferred Shares redemption value accretion | ¥ 11,768,000 | ||
Conversion of Pre-IPO Preferred Shares into Class A Ordinary Shares (in shares) | shares | 38,829,699 | (38,829,699) | (38,829,699) |
Conversion of Pre-IPO Preferred Shares into Class A Ordinary Shares | ¥ (419,212,000) | ||
Balance at end of year (in shares) | shares | 0 | 0 | |
Balance at end of year | ¥ 0 | ||
Ordinary shares | |||
Pre-IPO Preferred Shares | |||
Pre-IPO preferred stock conversion ratio | shares | 1 | ||
Dividend declared | ¥ 0 | ||
Number of votes | Vote | 1 | 1 |
Pre-IPO Preferred Shares - Ordi
Pre-IPO Preferred Shares - Ordinary Shares (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Nov. 30, 2018USD ($)Vote$ / sharesshares | Nov. 30, 2018CNY (¥)Voteshares | Oct. 31, 2018USD ($)$ / sharesshares | Oct. 31, 2018CNY (¥)shares | Jul. 31, 2018 | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2018CNY (¥) | Dec. 31, 2017$ / shares | |
Ordinary Shares | ||||||||
Proceeds from initial public offering and followed offering, net of issuance cost | $ 46,026 | ¥ 316,451 | ||||||
Stock conversion basis | 1 | 1 | 1 | |||||
Class A Ordinary Shares | ||||||||
Ordinary Shares | ||||||||
Ordinary shares par value (in dollars per share) | $ 0.000125 | $ 0.000125 | ||||||
Number of votes per share | Vote | 1 | 1 | ||||||
Class B Ordinary Shares | ||||||||
Ordinary Shares | ||||||||
Ordinary shares par value (in dollars per share) | $ 0.000125 | $ 0.000125 | ||||||
Stock conversion basis | 1 | 1 | ||||||
Number of votes per share | Vote | 15 | 15 | ||||||
Pre-IPO Preferred Shares | ||||||||
Ordinary Shares | ||||||||
Stock conversion basis | 1 | 1 | ||||||
IPO | ||||||||
Ordinary Shares | ||||||||
Proceeds from initial public offering and followed offering, net of issuance cost | $ 5,300 | ¥ 36,400 | $ 40,700 | ¥ 280,100 | ||||
IPO | Class A Ordinary Shares | ||||||||
Ordinary Shares | ||||||||
Number of new shares issued (in shares) | shares | 3,381,490 | 3,381,490 | 26,075,000 | 26,075,000 | ||||
Ordinary shares par value (in dollars per share) | $ 0.000125 | |||||||
IPO | Class B Ordinary Shares | ||||||||
Ordinary Shares | ||||||||
Ordinary shares par value (in dollars per share) | $ 0.000125 | |||||||
IPO | ADSs | ||||||||
Ordinary Shares | ||||||||
Number of new shares issued (in shares) | shares | 483,070 | 483,070 | 3,725,000 | 3,725,000 | ||||
Price per share | $ 11.88 | $ 11.88 |
Related party transactions (Det
Related party transactions (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2018USD ($)director | Dec. 31, 2018CNY (¥)director | Dec. 31, 2017CNY (¥)director | Dec. 31, 2016CNY (¥) | Dec. 05, 2018 | Nov. 08, 2018 | Jul. 12, 2018 | |
Related party transactions | |||||||
Cost and expenses allocated from Jimu Group | ¥ 48,687 | ¥ 102,263 | ¥ 140,894 | ||||
Cash repayment to Jimu Group | $ (3,363) | (23,121) | |||||
Loan proceeds from Jimu Group documented in loan agreements | ¥ 23,121 | ¥ 29,790 | |||||
Loan issued to Jimu Group documented in loan agreements and other financing transactions | (8,674) | (59,636) | |||||
Collection of loan issued to Jimu Group | $ 7,588 | ¥ 52,169 | |||||
Interest rate (as a percent) | 4.785% | 4.35% | 2.58% | ||||
BBAE Holdings Limited | |||||||
Related party transactions | |||||||
Number of common directors of the board of directors | director | 2 | 2 | 2 | ||||
Beijing Liangduo Science and Technology Co. Ltd | |||||||
Related party transactions | |||||||
Equity interests (as a percent) | 18.00% | 18.00% | |||||
Changsha Liangduo Business Consulting Co.,Ltd | Beijing Liangduo Science and Technology Co. Ltd | |||||||
Related party transactions | |||||||
Equity interests (as a percent) | 90.00% | ||||||
Jimu Group | Transactions recorded in costs and expenses | |||||||
Related party transactions | |||||||
Cost and expenses allocated from Jimu Group | ¥ 48,687 | ¥ 102,263 | |||||
Service fees to Jimu Group for the peer-to-peer matching services for the funding debts | 458 | 1,235 | |||||
Jimu Group | Financing transactions | |||||||
Related party transactions | |||||||
Net cash advances from/(to) the Jimu Group | (441,491) | 23,121 | |||||
Cash repayment to Jimu Group | (23,121) | ||||||
Loan proceeds from Jimu Group documented in loan agreements | 12,711 | ¥ 29,270 | |||||
Loan issued to Jimu Group documented in loan agreements and other financing transactions | (59,636) | ||||||
Collection of loan issued to Jimu Group | 52,169 | ||||||
Jimu Group | Financing transactions | US dominated | |||||||
Related party transactions | |||||||
Net cash advances from/(to) the Jimu Group | $ 21,400 | 146,600 | |||||
Loan issued to Jimu Group documented in loan agreements and other financing transactions | $ (7,600) | ¥ (52,200) | |||||
Interest rate (as a percent) | 0.00% | ||||||
Jimu Group | Financing transactions | RMB dominated | |||||||
Related party transactions | |||||||
Net cash advances from/(to) the Jimu Group | ¥ 294,900 | ||||||
Interest rate (as a percent) | 12.00% | ||||||
Loan principal repaid to Jimu Group | ¥ 18,200 | ||||||
Jimu Group | Financing transactions | RMB dominated | Minimum | |||||||
Related party transactions | |||||||
Interest rate (as a percent) | 12.13% | ||||||
Jimu Group | Financing transactions | RMB dominated | Maximum | |||||||
Related party transactions | |||||||
Interest rate (as a percent) | 12.80% | ||||||
Jimu Group | Other financing transactions | |||||||
Related party transactions | |||||||
Loan issued to Jimu Group documented in loan agreements and other financing transactions | ¥ (7,400) |
Related party transactions - Ba
Related party transactions - Balances with the major related parties (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Related party transactions | ||||
Amounts due from related parties | $ 69,148 | ¥ 475,426 | ¥ 229,026 | |
Amounts due to related parties | 96,596 | 386,489 | ||
Loan issued to Jimu Group documented in loan agreements and other financing transactions | (8,674) | ¥ (59,636) | ||
Ganzhou Jimu Micro Finance Co., Ltd | ||||
Related party transactions | ||||
Purchase price | 33,500 | 230,000 | ||
US dominated | ||||
Related party transactions | ||||
Loan principal and related interest repaid | 3,100 | 21,500 | ||
Jimu Group | ||||
Related party transactions | ||||
Amounts due from related parties | 69,100 | 475,426 | 228,548 | |
Amounts due to related parties | 13,000 | 89,453 | 385,035 | |
Jimu Group | US dominated | ||||
Related party transactions | ||||
Amounts due from related parties | 21,400 | 146,600 | ||
Jimu Group | RMB dominated | ||||
Related party transactions | ||||
Amounts due from related parties | 42,900 | 294,900 | ||
Jimu Group | Financing transactions | ||||
Related party transactions | ||||
Loan issued to Jimu Group documented in loan agreements and other financing transactions | (59,636) | |||
Jimu Group | Financing transactions | US dominated | ||||
Related party transactions | ||||
Loan issued to Jimu Group documented in loan agreements and other financing transactions | $ (7,600) | ¥ (52,200) | ||
BBAE Holdings Limited | ||||
Related party transactions | ||||
Amounts due from related parties | 478 | |||
BBAE Advisors LLC | ||||
Related party transactions | ||||
Amounts due to related parties | 721 | 527 | ||
Beijing Liangduo Science and Technology Co. Ltd | ||||
Related party transactions | ||||
Amounts due to related parties | 4,348 | ¥ 927 | ||
Changsha Liangduo Business Consulting Co.,Ltd | ||||
Related party transactions | ||||
Amounts due to related parties | ¥ 2,074 |
Defined contribution plan (Deta
Defined contribution plan (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined contribution plan | ||
Employee benefit expenses | ¥ 32,821 | ¥ 38,378 |
Unaudited pro forma net loss _3
Unaudited pro forma net loss per share (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | Dec. 31, 2016CNY (¥)¥ / sharesshares | Mar. 31, 2018shares | |
Unaudited pro forma net loss per share | |||||
Ordinary shares issued | 72,000,000 | ||||
Ordinary shares outstanding | 72,000,000 | ||||
Numerator: | |||||
Net (loss)/income | $ 315 | ¥ 2,171 | ¥ (84,860) | ¥ (200,494) | |
Net loss attributable to ordinary shareholders | $ (10,851) | ¥ (74,599) | ¥ (130,353) | ||
Denominator: | |||||
Weighted average ordinary shares outstanding-basic | 103,995,794 | 103,995,794 | 62,875,631 | 57,297,427 | |
Pro forma net loss per ordinary share basic | (per share) | $ (0.10) | ¥ (0.72) | ¥ (2.07) | ¥ (4.23) | |
Numerator: | |||||
Net loss attributable to ordinary shareholders-diluted | $ (10,851) | ¥ (74,599) | ¥ (130,353) | ||
Denominator: | |||||
Weighted average ordinary shares outstanding-basic | 103,995,794 | 103,995,794 | 62,875,631 | 57,297,427 | |
Weighted average ordinary shares outstanding-diluted | 103,995,794 | 103,995,794 | 62,875,631 | 57,297,427 | |
Pro forma net loss per ordinary share diluted | (per share) | $ (0.10) | ¥ (0.72) | ¥ (2.07) | ¥ (4.23) | |
Accretion on Series Seed-A-1 Preferred Shares redemption value | |||||
Numerator: | |||||
Preferred Shares redemption value | $ (30) | ¥ (203) | ¥ (167) | ||
Accretion on Series Seed-A-2 Preferred Shares redemption value | |||||
Numerator: | |||||
Preferred Shares redemption value | (273) | (1,874) | (1,502) | ||
Accretion on Series Seed-B Preferred Shares redemption value | |||||
Numerator: | |||||
Preferred Shares redemption value | (2,105) | (14,476) | (11,881) | ||
Accretion on Series Seed-C Preferred Shares redemption value | |||||
Numerator: | |||||
Preferred Shares redemption value | (5,905) | (40,602) | ¥ (31,943) | ||
Accretion on Series A-1 Preferred Shares redemption value | |||||
Numerator: | |||||
Preferred Shares redemption value | (1,141) | (7,847) | |||
Accretion on Series A-2 Preferred Shares redemption value | |||||
Numerator: | |||||
Preferred Shares redemption value | $ (1,712) | ¥ (11,768) |
Commitments and contingencies -
Commitments and contingencies - Operating lease commitment (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Payment due by schedule | ||
Less than 1 year | ¥ 9,386 | |
Total | 9,386 | |
Office rental | ||
Payment due by schedule | ||
Less than 1 year | 8,851 | |
Total | 8,851 | |
Operating lease expenses | 15,784 | ¥ 17,028 |
Bandwidth leasing | ||
Payment due by schedule | ||
Less than 1 year | 535 | |
Total | 535 | |
Operating lease expenses | ¥ 1,072 | ¥ 652 |
Commitments and contingencies_2
Commitments and contingencies - Debt Obligation (Details) ¥ in Thousands | Dec. 31, 2018CNY (¥) |
Debt Obligation | |
Payment due by schedule | |
Less than 1 year | ¥ 704,257 |
1 - 2 years | 2,511 |
2 - 3 years | 2,511 |
More than 3 years | 23,590 |
Total | 732,869 |
Funding debts | |
Payment due by schedule | |
Less than 1 year | 679,957 |
More than 3 years | 21,498 |
Total | 701,455 |
Loan payables to individual investors via Jimu Box and other financial partners | Debt Obligation | |
Payment due by schedule | |
Less than 1 year | 268,167 |
More than 3 years | 21,498 |
Total | 289,665 |
Loan payables to investors of consolidated trusts | |
Payment due by schedule | |
Less than 1 year | 290,103 |
Total | 290,103 |
Loan payables to investors of consolidated trusts | Debt Obligation | |
Payment due by schedule | |
Less than 1 year | 290,103 |
Total | 290,103 |
Loan payables to a shareholder | |
Payment due by schedule | |
Less than 1 year | 121,687 |
Total | 121,687 |
Loan payables to a shareholder | Debt Obligation | |
Payment due by schedule | |
Less than 1 year | 121,687 |
Total | 121,687 |
Interest payments | |
Payment due by schedule | |
Less than 1 year | 24,300 |
1 - 2 years | 2,511 |
2 - 3 years | 2,511 |
More than 3 years | 2,092 |
Total | 31,414 |
Interest payments | Debt Obligation | |
Payment due by schedule | |
Less than 1 year | 24,300 |
1 - 2 years | 2,511 |
2 - 3 years | 2,511 |
More than 3 years | 2,092 |
Total | ¥ 31,414 |
Subsequent events (Details)
Subsequent events (Details) ¥ in Thousands, $ in Thousands | Jul. 19, 2019USD ($)loan | Jul. 19, 2019CNY (¥)loan | May 31, 2019USD ($) | May 31, 2019CNY (¥) | May 05, 2019USD ($) | May 05, 2019CNY (¥) | Apr. 30, 2019USD ($) | Apr. 30, 2019CNY (¥) | Mar. 18, 2019USD ($) | Mar. 18, 2019CNY (¥) | Jul. 31, 2018USD ($) | May 31, 2019USD ($) | May 31, 2019CNY (¥) | Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | May 05, 2019USD ($) | Apr. 30, 2019USD ($) | Apr. 30, 2019CNY (¥) | May 31, 2019USD ($) | May 31, 2019CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Jul. 19, 2019CNY (¥) | Jul. 01, 2019USD ($) | Jul. 01, 2019CNY (¥) | May 31, 2019CNY (¥) | May 05, 2019CNY (¥) | Apr. 30, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Loan principal collected | $ 685,364 | ¥ 4,712,223 | ¥ 5,671,423 | ¥ 1,811,763 | |||||||||||||||||||||||||||
Cash advances | 64,212 | ¥ 441,491 | |||||||||||||||||||||||||||||
Amounts due to related parties | 386,489 | ¥ 96,596 | |||||||||||||||||||||||||||||
Amounts due from related parties | $ 69,148 | 229,026 | 475,426 | ||||||||||||||||||||||||||||
Credit risk | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Number of timely repay the principal and interest due (in days) | 60 days | 60 days | |||||||||||||||||||||||||||||
RMB dominated | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Deposits under the guarantee deposit agreement | $ 9,400 | ¥ 64,900 | |||||||||||||||||||||||||||||
Jimu Group | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Cash advances | $ 65,400 | ¥ 449,900 | |||||||||||||||||||||||||||||
Amounts due to related parties | 13,000 | 385,035 | 89,453 | ||||||||||||||||||||||||||||
Amounts due from related parties | 69,100 | ¥ 228,548 | 475,426 | ||||||||||||||||||||||||||||
Jimu Group | US dominated | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Amounts due from related parties | 21,400 | 146,600 | |||||||||||||||||||||||||||||
Jimu Group | RMB dominated | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Amounts due from related parties | 42,900 | 294,900 | |||||||||||||||||||||||||||||
Ganzhou Jimu Micro Finance Co., Ltd | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Purchase price | 33,500 | ¥ 230,000 | |||||||||||||||||||||||||||||
Plutux Labs | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Interest rate (as a percent) | 10.50% | ||||||||||||||||||||||||||||||
Aggregate interest receivable | 120 | 830 | |||||||||||||||||||||||||||||
Loan principal amount | $ | $ 20,000 | ||||||||||||||||||||||||||||||
Plutux Labs | Previously reported | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Aggregate interest receivable | $ 880 | 6,000 | |||||||||||||||||||||||||||||
First Loan Agreement | Jimu Group | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Interest rate (as a percent) | 3.50% | 3.50% | |||||||||||||||||||||||||||||
Loan principal amount | $ 21,400 | 146,600 | |||||||||||||||||||||||||||||
Second Loan Agreement | Jimu Group | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Interest rate (as a percent) | 11.00% | 11.00% | |||||||||||||||||||||||||||||
Loan principal amount | $ 42,900 | ¥ 294,900 | |||||||||||||||||||||||||||||
First Supplement Agreement | Ganzhou Jimu Micro Finance Co., Ltd | RMB dominated | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Purchase price | $ 33,500 | ¥ 230,000 | |||||||||||||||||||||||||||||
Subsequent event | Jimu Group | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Number of loan agreements | loan | 2 | 2 | |||||||||||||||||||||||||||||
Subsequent event | Ganzhou Jimu Micro Finance Co., Ltd | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Purchase price | ¥ 230,000 | ||||||||||||||||||||||||||||||
Subsequent event | Ganzhou Jimu Micro Finance Co., Ltd | Jimu Group | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Purchase price | $ 33,500 | ¥ 230,000 | |||||||||||||||||||||||||||||
Equity interest acquired (as a percent) | 100.00% | 100.00% | |||||||||||||||||||||||||||||
Subsequent event | Infrarisk | Maximum | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Purchase price | $ | $ 3,800 | ||||||||||||||||||||||||||||||
Subsequent event | Plutux Labs | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Loan principal collected | $ 20,000 | ¥ 137,510 | |||||||||||||||||||||||||||||
Loan interest collected | ¥ 830 | ||||||||||||||||||||||||||||||
Interest rate (as a percent) | 10.50% | ||||||||||||||||||||||||||||||
Aggregate interest receivable | $ 120 | $ 120 | ¥ 830 | ||||||||||||||||||||||||||||
Subsequent event | First Loan Agreement | Jimu Group | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Number of timely repay the principal and interest due (in days) | 215 days | 215 days | |||||||||||||||||||||||||||||
Subsequent event | First Supplement Agreement | Jimu Group | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Cash advances | $ 56,900 | ¥ 391,300 | |||||||||||||||||||||||||||||
Loan principal amount | $ 18,800 | 18,800 | ¥ 129,600 | ||||||||||||||||||||||||||||
Service fees and other service fees collected | $ 23,500 | ¥ 161,300 | |||||||||||||||||||||||||||||
Deposits under the information service cooperation agreement | $ 24,000 | ¥ 165,300 | |||||||||||||||||||||||||||||
Subsequent event | First Supplement Agreement | Ganzhou Jimu Micro Finance Co., Ltd | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Purchase price | $ 33,500 | ¥ 230,000 | |||||||||||||||||||||||||||||
Subsequent event | Second Supplement Agreement | Jimu Group | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Cash advances | $ 8,500 | ¥ 58,600 | |||||||||||||||||||||||||||||
Loan principal amount | $ 22,500 | $ 22,500 | $ 22,500 | ¥ 154,600 | |||||||||||||||||||||||||||
Service fees and other service fees collected | 4,500 | ¥ 31,100 | |||||||||||||||||||||||||||||
Deposits under the information service cooperation agreement | $ 400 | ¥ 2,500 | |||||||||||||||||||||||||||||
Maturity of repay the principal amount due (in months) | 24 months | 24 months | |||||||||||||||||||||||||||||
Subsequent event | Consulting Service Agreement | Jimu Group | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Amounts due to related parties | $ 1,900 | ¥ 13,000 | |||||||||||||||||||||||||||||
Subsequent event | Strategic Cooperation Agreement | Jimu Group | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Number of timely repay the principal and interest due (in days) | 60 days | 60 days | |||||||||||||||||||||||||||||
Amounts due from related parties | $ 19,300 | ¥ 133,000 | |||||||||||||||||||||||||||||
Subsequent event | Information Service Cooperation Agreement | Jimu Group | |||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||
Deposits under the information service cooperation agreement | $ 24,000 | ¥ 165,300 | |||||||||||||||||||||||||||||
Percentage of outstanding off-balance sheet loan balances as a guarantee deposit to Jimu Group | 12.00% | 12.00% | |||||||||||||||||||||||||||||
Average aggregate balance (in percent) | 1.50% | 1.50% |
Parent company only condensed_3
Parent company only condensed financial information - Balance sheets (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥)shares | Mar. 31, 2018shares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) |
Current assets: | |||||||
Cash and cash equivalents | $ 66,532 | ¥ 457,442 | $ 53,944 | ¥ 370,891 | ¥ 27,292 | ¥ 1,836 | |
Prepayments and other current assets | 33,308 | 229,008 | 68,903 | ||||
Amounts due from related parties | 69,148 | 475,426 | 229,026 | ||||
Total current assets | 322,201 | 2,215,296 | 2,226,192 | ||||
Non-current assets: | |||||||
Long-term investments | 8,441 | 58,038 | 6,439 | ||||
Total non-current assets | 22,213 | 152,730 | 224,605 | ||||
TOTAL ASSETS | 344,414 | 2,368,026 | 2,450,797 | ||||
Current liabilities: | |||||||
Accrued expenses and other liabilities | 22,902 | 157,462 | 112,189 | ||||
Total current liabilities | 186,241 | 1,280,504 | 2,023,318 | ||||
TOTAL LIABILITIES | 190,640 | 1,310,750 | 2,512,992 | ||||
Commitment and contingencies (Note 24) | |||||||
INVESTED (DEFICIT)/SHAREHOLDERS' EQUITY | |||||||
Additional paid-in capital | 275,906 | 1,896,993 | |||||
Accumulated other comprehensive income | 4,511 | 31,014 | |||||
Accumulated deficit | (126,929) | (872,698) | |||||
TOTAL INVESTED (DEFICIT)/SHAREHOLDERS' EQUITY | 153,774 | 1,057,276 | (62,195) | ¥ (9,205) | ¥ 10,567 | ||
TOTAL LIABILITIES AND INVESTED (DEFICIT)/SHAREHOLDERS' EQUITY | 344,414 | 2,368,026 | ¥ 2,450,797 | ||||
Ordinary shares issued (in shares) | 72,000,000 | ||||||
Ordinary shares outstanding (in shares) | 72,000,000 | ||||||
Class A Ordinary Shares | |||||||
INVESTED (DEFICIT)/SHAREHOLDERS' EQUITY | |||||||
Ordinary shares | $ 27 | ¥ 185 | |||||
Ordinary shares par value (in dollars per share) | $ / shares | $ 0.000125 | $ 0.000125 | |||||
Ordinary shares authorized (in shares) | 348,217,505 | 348,217,505 | 0 | 0 | |||
Ordinary shares issued (in shares) | 213,811,958 | 213,811,958 | 0 | 0 | |||
Ordinary shares outstanding (in shares) | 213,811,958 | 213,811,958 | 0 | 0 | |||
Class B Ordinary Shares | |||||||
INVESTED (DEFICIT)/SHAREHOLDERS' EQUITY | |||||||
Ordinary shares | $ 6 | ¥ 43 | |||||
Ordinary shares par value (in dollars per share) | $ / shares | $ 0.000125 | $ 0.000125 | |||||
Ordinary shares authorized (in shares) | 51,782,495 | 51,782,495 | 0 | 0 | |||
Ordinary shares issued (in shares) | 51,782,495 | 51,782,495 | 0 | 0 | |||
Ordinary shares outstanding (in shares) | 51,782,495 | 51,782,495 | 0 | 0 | |||
Parent Company | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ 10,064 | ¥ 69,194 | |||||
Prepayments and other current assets | 20,866 | 143,464 | |||||
Amounts due from subsidiaries of the Company | 91,835 | 631,414 | |||||
Amounts due from related parties | 21,356 | 146,835 | |||||
Total current assets | 144,121 | 990,907 | |||||
Non-current assets: | |||||||
Investment in subsidiaries, VIEs and VIEs' subsidiaries | 8,751 | 60,167 | |||||
Long-term investments | 2,555 | 17,564 | |||||
Total non-current assets | 11,306 | 77,731 | |||||
TOTAL ASSETS | 155,427 | 1,068,638 | |||||
Current liabilities: | |||||||
Accrued expenses and other liabilities | 1,653 | 11,362 | |||||
Total current liabilities | 1,653 | 11,362 | |||||
TOTAL LIABILITIES | 1,653 | 11,362 | |||||
Commitment and contingencies (Note 24) | |||||||
INVESTED (DEFICIT)/SHAREHOLDERS' EQUITY | |||||||
Additional paid-in capital | 275,906 | 1,896,993 | |||||
Accumulated other comprehensive income | 4,511 | 31,014 | |||||
Accumulated deficit | (126,676) | (870,959) | |||||
TOTAL INVESTED (DEFICIT)/SHAREHOLDERS' EQUITY | 153,774 | 1,057,276 | |||||
TOTAL LIABILITIES AND INVESTED (DEFICIT)/SHAREHOLDERS' EQUITY | 155,427 | 1,068,638 | |||||
Parent Company | Class A Ordinary Shares | |||||||
INVESTED (DEFICIT)/SHAREHOLDERS' EQUITY | |||||||
Ordinary shares | $ 27 | ¥ 185 | |||||
Ordinary shares authorized (in shares) | 348,217,505 | 348,217,505 | 0 | 0 | |||
Ordinary shares issued (in shares) | 213,811,958 | 213,811,958 | 0 | 0 | |||
Ordinary shares outstanding (in shares) | 213,811,958 | 213,811,958 | 0 | 0 | |||
Parent Company | Class B Ordinary Shares | |||||||
INVESTED (DEFICIT)/SHAREHOLDERS' EQUITY | |||||||
Ordinary shares | $ 6 | ¥ 43 | |||||
Ordinary shares authorized (in shares) | 51,782,495 | 51,782,495 | |||||
Ordinary shares issued (in shares) | 51,782,495 | 51,782,495 | 0 | 0 | |||
Ordinary shares outstanding (in shares) | 51,782,495 | 51,782,495 | 0 | 0 |
Parent company only condensed_4
Parent company only condensed financial information - Condensed statements of operations and comprehensive loss (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Cost of revenues: | ||||
Origination and servicing cost | $ (47,028) | ¥ (323,342,000) | ¥ (177,662,000) | ¥ (27,087,000) |
Cost of revenues | (80,741) | (555,137,000) | (372,413,000) | (59,854,000) |
Operating expenses: | ||||
Sales and marketing expenses | (14,496) | (99,671,000) | (72,076,000) | (72,010,000) |
General and administrative expenses | (45,521) | (312,979,000) | (106,323,000) | (72,849,000) |
Research and development expenses | (13,816) | (94,989,000) | (71,517,000) | (51,172,000) |
Total operating expenses | (73,833) | (507,639,000) | (249,916,000) | (196,031,000) |
Change in fair value of convertible loans | (1,389) | (9,552,000) | (7,042,000) | |
Share of loss from equity method investments | (386) | (2,652,000) | (2,455,000) | |
Other income, net | 1,283 | 8,822,000 | (1,238,000) | 684,000 |
(Loss)/income before income tax expense | 1,146 | 7,880,000 | (66,344,000) | (200,327,000) |
Income tax expense | (831) | (5,709,000) | (18,516,000) | (167,000) |
Net (loss)/income | 315 | 2,171,000 | (84,860,000) | (200,494,000) |
Other comprehensive income: | ||||
Foreign currency translation adjustments net of nil tax | 4,388 | 30,173,000 | 841,000 | |
Total other comprehensive income | 4,388 | 30,173,000 | 841,000 | |
Total comprehensive (loss)/income | 4,703 | 32,344,000 | (84,019,000) | (200,494,000) |
Foreign currency translation adjustments, tax | 0 | ¥ 0 | ¥ 0 | |
Parent Company | ||||
Cost of revenues: | ||||
Origination and servicing cost | (49) | (337,000) | ||
Cost of revenues | (49) | (337,000) | ||
Operating expenses: | ||||
Sales and marketing expenses | (1,620) | (11,137,000) | ||
General and administrative expenses | (14,856) | (102,141,000) | ||
Research and development expenses | (2,716) | (18,675,000) | ||
Total operating expenses | (19,192) | (131,953,000) | ||
Change in fair value of convertible loans | (1,389) | (9,552,000) | ||
Equity in gain of subsidiaries, VIEs and VIE's subsidiaries | 19,140 | 131,594,000 | ||
Share of loss from equity method investments | (246) | (1,690,000) | ||
Other income, net | 2,051 | 14,109,000 | ||
(Loss)/income before income tax expense | 315 | 2,171,000 | ||
Income tax expense | 0 | 0 | ||
Net (loss)/income | 315 | 2,171,000 | ||
Other comprehensive income: | ||||
Foreign currency translation adjustments net of nil tax | 4,388 | 30,173,000 | ||
Total other comprehensive income | 4,388 | 30,173,000 | ||
Total comprehensive (loss)/income | $ 4,703 | 32,344,000 | ||
Foreign currency translation adjustments, tax | ¥ 0 |
Parent company only condensed_5
Parent company only condensed financial information - Condensed statements of cash flows (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Cash flows from operating activities: | ||||
Net cash (used in)/provided by operating activities | $ 15,754 | ¥ 108,309 | ¥ 197,438 | ¥ (123,066) |
Cash flows from investing activities: | ||||
Net cash advances to Jimu Group | (64,212) | (441,491) | ||
Short-term loan to a third party | (19,964) | (137,264) | ||
Purchase of long-term investments | (2,801) | (19,259) | (2,000) | |
Net cash (used in)/provided by investing activities | 36,445 | 250,576 | (1,444,773) | (108,178) |
Cash flows from financing activities: | ||||
Proceeds from issuance of Pre-IPO Preferred Shares | 59,674 | 410,286 | ||
Proceeds from initial public offering and followed offering, net of issuance cost | 46,026 | 316,451 | ||
Cash repayment to Jimu Group | (3,363) | (23,121) | ||
Proceeds from issuance of convertible loans | 3,160 | 21,730 | 235,231 | |
Net cash provided/(used in) by financing activities | (7,165) | (49,254) | 1,595,968 | 256,700 |
Effect of exchange rate changes on cash, cash equivalents and restricted time deposits | 3,566 | 24,519 | (34) | |
Net increase in cash, cash equivalents and restricted time deposits | 48,600 | 334,150 | 348,599 | 25,456 |
Cash, cash equivalents and restricted time deposits at beginning of the year | 54,671 | 375,891 | 27,292 | 1,836 |
Cash, cash equivalents and restricted time deposits at end of the year | 103,271 | 710,041 | 375,891 | ¥ 27,292 |
Parent Company | ||||
Cash flows from operating activities: | ||||
Net cash (used in)/provided by operating activities | (84,636) | (581,914) | ||
Cash flows from investing activities: | ||||
Net cash advances to Jimu Group | (21,356) | (146,835) | ||
Short-term loan to a third party | (19,964) | (137,264) | ||
Purchase of long-term investments | (2,801) | (19,259) | ||
Net cash (used in)/provided by investing activities | (44,121) | (303,358) | ||
Cash flows from financing activities: | ||||
Proceeds from issuance of Pre-IPO Preferred Shares | 59,674 | 410,286 | ||
Proceeds from initial public offering and followed offering, net of issuance cost | 46,026 | 316,451 | ||
Cash repayment to Jimu Group | (119) | (818) | ||
Proceeds from issuance of convertible loans | 3,160 | 21,730 | ||
Net cash provided/(used in) by financing activities | 108,741 | 747,649 | ||
Effect of exchange rate changes on cash, cash equivalents and restricted time deposits | 3,565 | 24,510 | ||
Net increase in cash, cash equivalents and restricted time deposits | (16,451) | (113,113) | ||
Cash, cash equivalents and restricted time deposits at beginning of the year | 26,515 | 182,307 | ||
Cash, cash equivalents and restricted time deposits at end of the year | $ 10,064 | ¥ 69,194 | ¥ 182,307 |