Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2021shares | |
Document and Entity Information | |
Entity Registrant Name | X Financial |
Entity Central Index Key | 0001725033 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2021 |
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 | true |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Auditor Name | KPMG Huazhen LLP |
Entity Interactive Data Current | Yes |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-38652 |
Auditor Firm ID | 1186 |
Auditor Location | Shenzhen, China |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 7-8F, Block A, Aerospace Science and Technology Plaza |
Entity Address, Address Line Two | No. 168, Haide Third Avenue, Nanshan District |
Entity Address, City or Town | Shenzhen |
Entity Address, Postal Zip Code | 518067 |
Entity Address, Country | CN |
ICFR Auditor Attestation Flag | false |
Class A ordinary shares | |
Document and Entity Information | |
Entity Common Stock, Shares Outstanding | 231,517,943 |
Title of 12(b) Security | Class A ordinary shares, par value US$0.0001 per share ** |
Security Exchange Name | NYSE |
No Trading Symbol Flag | true |
Class B ordinary shares | |
Document and Entity Information | |
Entity Common Stock, Shares Outstanding | 97,600,000 |
ADS | |
Document and Entity Information | |
Trading Symbol | XYF |
Title of 12(b) Security | American depositary shares, each ADS represents six Class A ordinary shares, par value US$0.0001 per share* |
Security Exchange Name | NYSE |
Business Contact | |
Document and Entity Information | |
City Area Code | 86-755 |
Entity Address, Address Line One | 7-8F, Block A, Aerospace Science and Technology Plaza |
Entity Address, Address Line Two | No. 168, Haide Third Avenue, Nanshan District |
Entity Address, City or Town | Shenzhen |
Entity Address, Postal Zip Code | 518067 |
Entity Address, Country | CN |
Contact Personnel Name | Mr. Frank Fuya Zheng |
Local Phone Number | 8628 2977 |
Contact Personnel Email Address | frank.zheng@xiaoying.com |
Common share | |
Document and Entity Information | |
Entity Common Stock, Shares Outstanding | 329,117,943 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
ASSETS | |||
Cash and cash equivalents | ¥ 584,762,494 | $ 91,761,996 | ¥ 746,388,408 |
Restricted cash (including RMB476,854,616 and RMB212,812,257 from Consolidated Trusts and Partnerships as of December 31, 2020 and 2021, respectively) | 407,276,342 | 63,910,545 | 852,134,486 |
Accounts receivable and contract assets, net of allowance of RMB38,681,680 and RMB25,867,957 as of December 31, 2020 and 2021, respectively (including nil and RMB8,335,518 from Consolidated Trusts and Partnerships as of December 31, 2020 and 2021, respectively) | 747,480,118 | 117,295,942 | 413,307,108 |
Loan receivable from Xiaoying Housing Loans, net | 2,484,072,931 | 389,805,249 | 1,236,026,461 |
Loans at fair value (including RMB1,585,731,888 and RMB389,679,352 from Consolidated Trusts and Partnerships as of December 31, 2020 and 2021, respectively) | 389,679,352 | 61,149,194 | 1,585,731,888 |
Deposits to institutional cooperators, net | 1,500,406,750 | 235,446,560 | 907,923,380 |
Prepaid expenses and other current assets, net (including RMB11,359,212 and RMB7,889,836 from Consolidated Trusts and Partnerships as of December 31, 2020 and 2021, respectively) | 213,127,478 | 33,444,352 | 403,776,319 |
Financial guarantee derivative | 11,816,799 | 1,854,314 | 297,928,066 |
Deferred tax assets, net | 274,868,534 | 43,132,871 | 605,652,593 |
Long-term investments | 560,038,353 | 87,882,238 | 295,615,200 |
Financial investments | 82,843,800 | 13,000,000 | 6,000,000 |
Property and equipment, net | 6,188,262 | 971,073 | 11,136,599 |
Intangible assets, net | 36,816,984 | 5,777,388 | 37,440,407 |
Other non-current assets | 31,277,378 | 4,908,103 | 51,458,356 |
Total assets | 7,342,738,892 | 1,152,235,961 | 7,498,009,708 |
LIABILITIES | |||
Payable to investors at fair value (including RMB1,914,183,650 and RMB462,714,400 from the Consolidated VIEs, Trusts and Partnerships, without recourse to the Company as of December 31, 2020 and 2021, respectively) | 462,714,400 | 72,609,987 | 1,914,183,650 |
Payable to institutional funding partners (including nil and RMB1,466,068,260 from the Consolidated VIEs, Trusts and Partnerships, without recourse to the company as of December 31, 2020 and 2021, respectively) | 1,487,378,613 | 233,402,161 | 1,460,395,100 |
Guarantee liabilities | 9,789,626 | ||
Financial guarantee derivative (including RMB130,442,090 and RMB565,953,269 from the Consolidated VIEs, Trusts and Partnerships, without recourse to the Company as of December 31, 2020 and 2021, respectively) | 565,953,269 | 88,810,418 | 130,442,090 |
Short-term bank borrowings (including RMB18,700,000 and nil from the Consolidated VIEs, Trusts and Partnerships, without recourse to the Company as of December 31, 2020 and 2021, respectively) | 166,500,000 | 26,127,483 | 350,545,000 |
Accrued payroll and welfare (including RMB10,017,308 and RMB8,138,489 from the Consolidated VIEs, Trusts and Partnerships, without recourse to the Company as of December 31, 2020 and 2021, respectively) | 44,605,137 | 6,999,519 | 34,780,834 |
Other tax payable (including RMB37,103,700 and RMB100,272,748 from the Consolidated VIEs, Trusts and Partnerships, without recourse to the Company as of December 31, 2020 and 2021, respectively) | 219,545,929 | 34,451,547 | 73,077,245 |
Income tax payable (including RMB48,349,593 and RMB74,724,658 from the Consolidated VIEs, Trusts and Partnerships, without recourse to the Company as of December 31, 2020 and 2021, respectively) | 117,148,450 | 18,383,148 | 75,916,903 |
Deposit payable to channel cooperators | 21,012,235 | 3,297,278 | 21,472,235 |
Accrued expenses and other current liabilities (including RMB230,564,165 and RMB122,387,645 from the Consolidated VIEs, Trusts and Partnerships, without recourse to the Company as of December 31, 2020 and 2021, respectively) | 268,966,550 | 42,206,721 | 323,748,430 |
Other non-current liabilities (including RMB1,739,541 and nil from the Consolidated VIEs, Trusts and Partnerships, without recourse to the Company as of December 31, 2020 and 2021, respectively) | 12,019,348 | 1,886,098 | 27,614,943 |
Total liabilities | 3,365,843,931 | 528,174,360 | 4,421,966,056 |
Commitments and Contingencies (Note 18) | |||
Equity: | |||
Common shares (US$0.0001 par value; 1,000,000,000 and 1,000,000,000 shares authorized, 323,117,943 and 329,117,943 shares issued and outstanding as of December 31, 2020 and 2021, respectively) | 206,793 | 32,450 | 202,870 |
Additional paid-in capital | 3,159,522,737 | 495,798,063 | 3,068,045,239 |
Retained earnings (accumulated deficit) | 810,855,877 | 127,240,981 | (14,551,146) |
Other comprehensive income | 6,309,554 | 990,107 | 21,059,073 |
Total X Financial shareholders' equity | 3,976,894,961 | 624,061,601 | 3,074,756,036 |
Non-controlling interests | 1,287,616 | ||
TOTAL EQUITY | 3,976,894,961 | 624,061,601 | 3,076,043,652 |
TOTAL LIABILITIES AND EQUITY | 7,342,738,892 | 1,152,235,961 | 7,498,009,708 |
Xiaoying Housing Loan | |||
ASSETS | |||
Loan receivable from Xiaoying Housing Loans, net | 12,083,317 | 1,896,136 | 47,490,437 |
Xiaoying Credit Loans And Revolving Loans | |||
ASSETS | |||
Loan receivable from Xiaoying Housing Loans, net | ¥ 2,484,072,931 | $ 389,805,249 | ¥ 1,236,026,461 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) | Dec. 31, 2021CNY (¥)shares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020USD ($)$ / sharesshares |
Restricted cash | ¥ 407,276,342 | $ 63,910,545 | ¥ 852,134,486 | |
Allowance for doubtful accounts of accounts receivable and contract assets | 25,867,957 | 4,059,247 | 38,681,680 | $ 6,070,000 |
Loan receivable from Xiaoying Housing Loans, net | 2,484,072,931 | 389,805,249 | 1,236,026,461 | |
Loans at fair value | 389,679,352 | 61,149,194 | 1,585,731,888 | |
Prepaid expenses and other current assets | 213,127,478 | 33,444,352 | 403,776,319 | |
Payable to investors at fair value | 462,714,400 | 72,609,987 | 1,914,183,650 | |
Payable to institutional funding partners | 1,487,378,613 | 233,402,161 | 1,460,395,100 | |
Guarantee liabilities | 9,789,626 | $ 1,536,206 | ||
Financial guarantee derivative | 565,953,269 | 88,810,418 | 130,442,090 | |
Short-term bank borrowings | 166,500,000 | 26,127,483 | 350,545,000 | |
Accrued payroll and welfare | 44,605,137 | 6,999,519 | 34,780,834 | |
Other tax payable | 219,545,929 | 34,451,547 | 73,077,245 | |
Income tax payable | 117,148,450 | 18,383,148 | 75,916,903 | |
Accrued expenses and other current liabilities | 268,966,550 | 42,206,721 | 323,748,430 | |
Other non-current liabilities | ¥ 12,019,348 | $ 1,886,098 | ¥ 27,614,943 | |
Common shares, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||
Common shares, shares authorized (in shares) | shares | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 |
Common shares, shares issued (in shares) | shares | 329,117,943 | 329,117,943 | 323,117,943 | 323,117,943 |
Common shares, shares outstanding (in shares) | shares | 329,117,943 | 329,117,943 | 323,117,943 | 323,117,943 |
Xiaoying Credit Loans And Revolving Loans | ||||
Loan receivable from Xiaoying Housing Loans, net | ¥ 2,484,072,931 | $ 389,805,249 | ¥ 1,236,026,461 | |
Consolidated Trusts and Partnerships | ||||
Restricted cash | 212,812,257 | 476,854,616 | ||
Allowance for doubtful accounts of accounts receivable and contract assets | 8,335,518 | 0 | ||
Loans at fair value | 389,679,352 | 1,585,731,888 | ||
Prepaid expenses and other current assets | 7,889,836 | 11,359,212 | ||
Consolidated Trusts and Partnerships | Xiaoying Credit Loans And Revolving Loans | ||||
Loan receivable from Xiaoying Housing Loans, net | 1,622,699,799 | 0 | ||
Consolidated Variable Interest Entities, Trusts and Partnerships | ||||
Payable to investors at fair value | 462,714,400 | 1,914,183,650 | ||
Payable to institutional funding partners | 1,466,068,260 | 0 | ||
Financial guarantee derivative | 565,953,269 | 130,442,090 | ||
Short-term bank borrowings | 0 | 18,700,000 | ||
Accrued payroll and welfare | 8,959,248 | 10,017,308 | ||
Other tax payable | 100,333,129 | 37,103,700 | ||
Income tax payable | 8,189,833 | 48,349,593 | ||
Accrued expenses and other current liabilities | 85,485,440 | 230,564,165 | ||
Other non-current liabilities | ¥ 0 | ¥ 1,739,541 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | 12 Months Ended | |||
Dec. 31, 2021CNY (¥)¥ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | |
Net revenues | ||||
Total net revenue | ¥ 3,626,465,105 | $ 569,071,510 | ¥ 2,192,957,458 | ¥ 3,088,049,995 |
Operating costs and expenses | ||||
Origination and servicing | 1,963,006,006 | 308,038,478 | 2,071,506,464 | 1,634,822,450 |
General and administrative | 187,859,411 | 29,479,241 | 179,225,336 | 227,481,772 |
Sales and marketing | 20,829,534 | 3,268,608 | 35,629,022 | 103,157,613 |
(Reversal of) provision for contingent guarantee liabilities | (24,284) | (3,811) | 880,948 | 7,747,561 |
Provision for accounts receivable and contract assets | 77,247,810 | 12,121,867 | 121,485,215 | 241,186,823 |
(Reversal of) provision for credit losses on deposits to institutional cooperators | (8,291,421) | (1,301,105) | 10,318,117 | |
Impairment loss on deposits to institutional cooperators | 960,000,000 | |||
Reversal of provision of credit losses for other financial assets | (1,223,360) | (191,972) | (975,040) | |
Total operating expenses | 2,315,421,305 | 363,340,128 | 3,623,273,658 | 2,275,470,104 |
Income (Loss) from operations | 1,311,043,800 | 205,731,382 | (1,430,316,200) | 812,579,891 |
Interest income (expenses), net | 19,709,140 | 3,092,794 | 21,724,308 | 19,385,973 |
Foreign exchange gain | 5,147,137 | 807,698 | 15,398,932 | 616,395 |
Investment loss | (12,538,280) | |||
Change in fair value of financial guarantee derivative | (170,338,993) | (26,729,905) | (163,670,115) | (246,371,828) |
Fair value adjustments related to Consolidated Trusts | (7,266,784) | (1,140,317) | (57,380,274) | 64,162,533 |
Other income (loss), net | 32,506,084 | 5,100,914 | 12,709,213 | 26,080,766 |
Income (Loss) before income taxes and gain (loss) from equity in affiliates | 1,190,800,384 | 186,862,566 | (1,601,534,136) | 663,915,450 |
Income tax benefit (expense) | (368,735,701) | (57,862,678) | 299,878,635 | 93,102,643 |
Gain (loss) from equity in affiliates, net of tax | 3,341,862 | 524,411 | (6,805,940) | 17,457,899 |
Net income (loss) | 825,406,545 | 129,524,299 | (1,308,461,441) | 774,475,992 |
Less: net gain (loss) attributable to non-controlling interests | (478) | (75) | 41,134 | 199,863 |
Net income (loss) attributable to X Financial | 825,407,023 | 129,524,374 | (1,308,502,575) | 774,276,129 |
Other comprehensive income (loss), net of tax of nil: | ||||
Foreign currency translation adjustments | (14,749,519) | (2,314,521) | (46,041,729) | 14,606,045 |
Comprehensive income (loss) | 810,657,026 | 127,209,778 | (1,354,503,170) | 789,082,037 |
Less: comprehensive (income) loss attributable to non-controlling interests | (478) | (75) | 41,134 | 199,863 |
Comprehensive income (loss) attributable to X Financial | ¥ 810,657,504 | $ 127,209,853 | ¥ (1,354,544,304) | ¥ 788,882,174 |
Net income (loss) per share-basic | (per share) | ¥ 2.51 | $ 0.39 | ¥ (4.07) | ¥ 2.47 |
Weighted average number of ordinary shares outstanding-basic | shares | 329,230,273 | 329,230,273 | 321,236,089 | 313,757,887 |
Net income (loss) per share-diluted (In dollars per share) | (per share) | ¥ 2.45 | $ 0.38 | ¥ (4.07) | ¥ 2.42 |
Weighted average number of ordinary shares outstanding-diluted (In shares) | shares | 336,881,082 | 336,881,082 | 321,236,089 | 319,747,392 |
Xiaoying Credit Loans And Revolving Loans | ||||
Operating costs and expenses | ||||
(Reversal of) provision for credit losses on deposits to institutional cooperators | ¥ 76,395,168 | $ 11,988,069 | ¥ 227,210,026 | ¥ 37,643,244 |
Xiaoying Housing Loan | ||||
Net revenues | ||||
Total net revenue | 172,960 | 1,063,849 | ||
Operating costs and expenses | ||||
Provision for accounts receivable and contract assets | 77,247,810 | 12,121,867 | 121,485,215 | 241,186,823 |
Provision for Loan and Lease Losses | (377,559) | (59,247) | 17,993,570 | 23,430,641 |
Loan facilitation service-Direct Model | ||||
Net revenues | ||||
Total net revenue | 2,545,431,636 | 399,433,769 | 1,266,532,773 | 1,986,003,343 |
Loan facilitation service-Direct Model | Xiaoying Housing Loan | ||||
Net revenues | ||||
Total net revenue | 578,598 | |||
Loan facilitation service-Intermediary Model | ||||
Net revenues | ||||
Total net revenue | 161,313 | 25,314 | 41,372,812 | 238,867,054 |
Loan facilitation service-Intermediary Model | Xiaoying Housing Loan | ||||
Net revenues | ||||
Total net revenue | 88,225 | |||
Post-origination service | ||||
Net revenues | ||||
Total net revenue | 315,590,118 | 49,522,976 | 203,841,829 | 330,695,212 |
Post-origination service | Xiaoying Housing Loan | ||||
Net revenues | ||||
Total net revenue | 132,382 | |||
Financing income | ||||
Net revenues | ||||
Total net revenue | 671,901,495 | 105,436,006 | 612,863,477 | 408,400,792 |
Other revenue | ||||
Net revenues | ||||
Total net revenue | ¥ 93,380,543 | $ 14,653,445 | 68,346,567 | 124,083,594 |
Other revenue | Xiaoying Housing Loan | ||||
Net revenues | ||||
Total net revenue | ¥ 172,960 | ¥ 264,644 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||
Other comprehensive income (loss), tax portion | ¥ 0 | ¥ 0 | ¥ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY | Equity attributable to X FinancialCumulative effect of accounting changeCNY (¥) | Equity attributable to X FinancialCNY (¥) | Equity attributable to X FinancialUSD ($) | Common shareCumulative effect of accounting changeCNY (¥)shares | Common shareCNY (¥)shares | Common shareUSD ($)shares | Additional paid-in capitalCumulative effect of accounting changeCNY (¥) | Additional paid-in capitalCNY (¥) | Additional paid-in capitalUSD ($) | Retained earnings (Accumulated deficits)Cumulative effect of accounting changeCNY (¥) | Retained earnings (Accumulated deficits)CNY (¥) | Retained earnings (Accumulated deficits)USD ($) | Accumulated other comprehensive incomeCumulative effect of accounting changeCNY (¥) | Accumulated other comprehensive incomeCNY (¥) | Accumulated other comprehensive incomeUSD ($) | Non-controlling interestsCumulative effect of accounting changeCNY (¥) | Non-controlling interestsCNY (¥) | Non-controlling interestsUSD ($) | Cumulative effect of accounting changeCNY (¥) | CNY (¥)shares | USD ($)shares |
Balance at Dec. 31, 2018 | ¥ 3,517,022,233 | ¥ 189,586 | ¥ 2,824,223,031 | ¥ 640,114,859 | ¥ 52,494,757 | ¥ 1,046,619 | ¥ 3,518,068,852 | ||||||||||||||
Balance (in shares) at Dec. 31, 2018 | shares | 303,614,298 | 303,614,298 | |||||||||||||||||||
Exercise of share option | 6,035,665 | ¥ 11,654 | 6,024,011 | 6,035,665 | |||||||||||||||||
Exercise of share option (in shares) | shares | 17,053,645 | 17,053,645 | |||||||||||||||||||
Sharebased compensation (Note 16) | 157,116,095 | 157,116,095 | 157,116,095 | ||||||||||||||||||
Net income (loss) | 774,276,129 | 774,276,129 | 199,863 | 774,475,992 | |||||||||||||||||
Foreign currency translation adjustments | 14,606,045 | 14,606,045 | 14,606,045 | ||||||||||||||||||
Dividend to shareholders | (103,196,981) | (103,196,981) | (103,196,981) | ||||||||||||||||||
Balance (Adoption of ASU 2016-13) at Dec. 31, 2019 | ¥ (17,242,578) | ¥ (17,242,578) | ¥ (17,242,578) | ||||||||||||||||||
Balance at Dec. 31, 2019 | ¥ 4,348,616,608 | 4,365,859,186 | ¥ 201,240 | ¥ 201,240 | ¥ 2,987,363,137 | 2,987,363,137 | ¥ 1,293,951,429 | 1,311,194,007 | ¥ 67,100,802 | 67,100,802 | ¥ 1,246,482 | 1,246,482 | ¥ 4,349,863,090 | 4,367,105,668 | |||||||
Balance (in shares) at Dec. 31, 2019 | shares | 320,667,943 | 320,667,943 | 320,667,943 | ||||||||||||||||||
Issuance of new shares | ¥ 1,806 | (1,806) | |||||||||||||||||||
Issuance of new shares (in shares) | shares | 2,700,000 | 2,700,000 | |||||||||||||||||||
Exercise of share option | 612,530 | 612,530 | 612,530 | ||||||||||||||||||
Cancellation of shares | (68,936) | ¥ (176) | (68,760) | (68,936) | |||||||||||||||||
Sharebased compensation (Note 16) | 80,140,138 | 80,140,138 | 80,140,138 | ||||||||||||||||||
Net income (loss) | (1,308,502,575) | (1,308,502,575) | 41,134 | (1,308,461,441) | |||||||||||||||||
Foreign currency translation adjustments | (46,041,729) | (46,041,729) | (46,041,729) | ||||||||||||||||||
Balance at Dec. 31, 2020 | 3,074,756,036 | $ 482,496,316 | ¥ 202,870 | $ 31,834 | 3,068,045,239 | $ 481,443,247 | (14,551,146) | $ (2,283,393) | 21,059,073 | $ 3,304,628 | 1,287,616 | $ 202,055 | ¥ 3,076,043,652 | $ 482,698,371 | |||||||
Balance (in shares) at Dec. 31, 2020 | shares | 323,117,943 | 323,117,943 | 323,117,943 | 323,117,943 | |||||||||||||||||
Issuance of new shares | ¥ 3,923 | $ 616 | (3,923) | (616) | |||||||||||||||||
Issuance of new shares (in shares) | shares | 6,000,000 | 6,000,000 | |||||||||||||||||||
Exercise of share option | 2,959,511 | 464,412 | 2,959,511 | 464,412 | ¥ 2,959,511 | $ 464,412 | |||||||||||||||
Exercise of share option (in shares) | shares | 3,490,378 | 3,490,378 | |||||||||||||||||||
Cancellation of shares (in shares) | shares | (250,000) | (250,000) | |||||||||||||||||||
Sharebased compensation (Note 16) | 88,434,772 | 13,877,346 | 88,434,772 | 13,877,346 | ¥ 88,434,772 | $ 13,877,346 | |||||||||||||||
Acquisition of non-controlling interests | 87,138 | 13,674 | 87,138 | 13,674 | (1,287,138) | (201,980) | (1,200,000) | (188,306) | |||||||||||||
Net income (loss) | 825,407,023 | 129,524,374 | 825,407,023 | 129,524,374 | ¥ (478) | $ (75) | 825,406,545 | 129,524,299 | |||||||||||||
Foreign currency translation adjustments | (14,749,519) | (2,314,521) | (14,749,519) | (2,314,521) | (14,749,519) | (2,314,521) | |||||||||||||||
Balance at Dec. 31, 2021 | ¥ 3,976,894,961 | $ 624,061,601 | ¥ 206,793 | $ 32,450 | ¥ 3,159,522,737 | $ 495,798,063 | ¥ 810,855,877 | $ 127,240,981 | ¥ 6,309,554 | $ 990,107 | ¥ 3,976,894,961 | $ 624,061,601 | |||||||||
Balance (in shares) at Dec. 31, 2021 | shares | 329,117,943 | 329,117,943 | 329,117,943 | 329,117,943 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net income (loss) | ¥ 825,406,545 | $ 129,524,299 | ¥ (1,308,461,441) | ¥ 774,475,992 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization | 8,135,552 | 1,276,646 | 11,915,528 | 11,379,697 |
Share-based compensation | 88,434,772 | 13,877,346 | 80,140,138 | 157,116,095 |
Impairment of long-term investments | 12,538,280 | |||
Loss (gain) from equity in affiliates | (3,341,862) | (524,411) | 6,805,940 | (17,457,899) |
Loss (gain) from disposal of property and equipment | (180,537) | (28,330) | 59,213 | (2,389) |
Provision for accounts receivable and contract assets | 77,247,810 | 12,121,867 | 121,485,215 | 241,186,823 |
(Reversal of) provision for loan receivable from Xiaoying | 76,395,168 | 11,988,069 | 227,210,026 | |
(Reversal of) provision for credit losses on deposits to institutional cooperators | (8,291,421) | (1,301,105) | 10,318,117 | |
Impairment loss on deposits to institutional cooperators | 960,000,000 | |||
Reversal of provision of credit losses for other financial assets | (1,223,360) | (191,972) | (975,040) | |
Fair value adjustments related to Consolidated Trusts | 7,266,784 | 1,140,317 | 57,380,274 | (64,162,533) |
Change in fair value of financial guarantee derivative | 170,338,993 | 26,729,905 | 163,670,115 | 246,371,828 |
Deferred tax expenses (benefits) | 333,420,104 | 52,320,890 | (142,551,916) | (164,911,933) |
Other non-cash expenses (income) | (117,889) | (18,499) | (978,897) | 247,954 |
Changes in operating assets and liabilities: | ||||
Accounts receivable and contract assets | (411,420,820) | (64,560,904) | 220,837,490 | 366,952,171 |
Deposits to institutional cooperators | (584,191,949) | (91,672,465) | (1,369,521,281) | (518,720,216) |
Prepaid expenses and other current assets | 21,232,196 | 3,331,795 | 123,901,899 | (197,141,775) |
Amount due from related party | 20,000,000 | |||
Origination of loans held for sale | (8,056,664,647) | |||
Sales and maturity of loans held for sale | 8,362,184,896 | |||
Other non-current assets | 162,653 | 25,524 | 265,846 | 299,925 |
Guarantee liabilities | (9,789,626) | (1,536,206) | (7,983,299) | (3,422,898) |
Financial guarantee derivative | 551,283,453 | 86,508,404 | 388,806,171 | (608,084,177) |
Accrued payroll and welfare | 9,824,303 | 1,541,648 | (28,867,642) | (29,815,450) |
Other tax payable | 146,468,684 | 22,984,133 | 14,991,468 | (76,043,291) |
Income tax payable | 41,231,547 | 6,470,129 | (265,078,543) | 28,757,234 |
Deposit payable to channel cooperators | (460,000) | (72,184) | (87,451,225) | (25,118,739) |
Accrued expenses and other current liabilities | (33,694,875) | (5,287,461) | 102,802,015 | 64,392,936 |
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 449,171,181 | 70,484,763 | (679,234,601) | 600,566,742 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Purchase of property and equipment and intangible assets | (2,620,038) | (411,141) | (5,365,436) | (15,143,162) |
Disposal of property and equipment | 236,783 | 37,156 | 79,344 | 115,402 |
Purchase of financial investments | (112,843,800) | (17,707,655) | (6,000,000) | |
Collection of financial investments | 36,000,000 | 5,649,186 | ||
Collection of long-term investments | 40,000,000 | 6,276,873 | ||
Loan to a related party | (150,000,000) | (23,538,273) | ||
Loan repayment from a related party | 150,000,000 | 23,538,273 | ||
Purchase of short-term investment | (315,000,000) | (49,430,374) | (3,500,000) | |
Principle payment of loans at fair value | (2,238,372,299) | (351,249,458) | (4,016,159,473) | (4,938,191,061) |
Principal collection of loans at fair value | 3,427,158,051 | 537,795,884 | 5,155,380,196 | 2,253,437,828 |
Purchase of loans' earnings rights from related party | (380,000,000) | |||
Collections of loans' earnings rights from related party | 160,000,000 | 25,107,491 | 120,000,000 | |
CASH USED IN INVESTING ACTIVITIES | (2,347,593,831) | (368,388,700) | (3,704,848,130) | (3,079,780,993) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from exercise of options | 2,959,511 | 464,412 | 612,530 | 6,035,665 |
Acquisition of non-controlling interests | (1,200,000) | (188,306) | ||
Cancelling of shares | (68,936) | |||
Dividends to shareholders | (103,196,981) | |||
Proceeds from short-term bank borrowings | 266,500,000 | 41,819,665 | 511,545,000 | 203,000,000 |
Repayments of short-term bank borrowings | (450,545,000) | (70,700,342) | (161,000,000) | (401,000,000) |
Cash received from institutional funding partners | 2,052,099,474 | 322,019,187 | 5,707,175,065 | |
Cash paid to institutional funding partners | (583,101,169) | (91,501,298) | (475,385,721) | |
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 1,301,311,826 | 204,204,222 | 4,490,712,113 | 2,711,188,159 |
Effect of foreign exchange rate changes | (9,373,234) | (1,470,865) | (28,409,920) | 10,622,885 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (606,484,058) | (95,170,583) | 78,219,462 | 242,596,793 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR | 1,598,522,894 | 250,843,124 | 1,520,303,432 | 1,277,706,639 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT YEAR END | 992,038,836 | 155,672,541 | 1,598,522,894 | 1,520,303,432 |
Supplemental disclosures of cash flow information: | ||||
Income taxes paid | 30,958,576 | 4,858,076 | 107,751,825 | 43,052,057 |
Interest paid for bank borrowings | 6,719,912 | 1,054,501 | 11,405,162 | 3,474,745 |
Reconciliation to amounts on consolidated balance sheets: | ||||
Cash and cash equivalents | 584,762,494 | 746,388,408 | 1,005,980,251 | |
Restricted cash | 407,276,342 | 852,134,486 | 514,323,181 | |
Total cash and cash equivalents and restricted cash | 992,038,836 | 1,598,522,894 | 1,520,303,432 | |
Consolidated Partnerships | ||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Origination of loans receivables | (2,538,004,837) | (398,268,342) | ||
Principal collection of loans receivables | 915,305,038 | 143,631,334 | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Cash received from investors and institutional funding partners | 1,466,068,260 | 230,058,102 | ||
Consolidated Trusts | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net income (loss) | 105,610,429 | 16,572,581 | (19,795,471) | 227,051,351 |
Changes in operating assets and liabilities: | ||||
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 155,272,678 | 24,365,672 | (20,179,042) | 123,521,027 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
CASH USED IN INVESTING ACTIVITIES | (433,914,047) | (68,090,582) | 1,139,220,723 | (2,684,753,233) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Cash received from investors and institutional funding partners | 454,490,000 | 71,319,399 | 1,537,760,000 | 4,313,060,000 |
Cash paid to investors and institutional funding partners | (1,905,959,250) | (299,086,597) | (2,629,925,825) | (1,306,710,525) |
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 14,599,010 | 2,290,904 | (1,092,165,825) | 3,006,349,475 |
Reconciliation to amounts on consolidated balance sheets: | ||||
Restricted cash | 212,812,257 | 476,854,616 | ||
Xiaoying Credit Loans And Revolving Loans | ||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||
(Reversal of) provision for loan receivable from Xiaoying | 76,395,168 | 11,988,069 | 227,210,026 | 37,643,244 |
(Reversal of) provision for credit losses on deposits to institutional cooperators | 76,395,168 | 11,988,069 | 227,210,026 | 37,643,244 |
Changes in operating assets and liabilities: | ||||
Loan receivable from Xiaoying Loans | (890,372,164) | (139,718,822) | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Origination of loans receivables | (1,755,301,405) | (275,445,094) | (5,746,369,142) | |
Sale and collection of loans receivables from Xiaoying Credit Loans and Xiaoying Revolving Loans | 35,848,676 | 5,625,440 | 797,086,381 | |
Xiaoying Housing Loan | ||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||
Provision for accounts receivable and contract assets | 77,247,810 | 12,121,867 | 121,485,215 | 241,186,823 |
(Reversal of) provision for loan receivable from Xiaoying | (377,559) | (59,247) | 17,993,570 | 23,430,641 |
Changes in operating assets and liabilities: | ||||
Loan receivable from Xiaoying Loans | ¥ 35,784,679 | $ 5,615,397 | ¥ 24,051,658 | ¥ 15,134,973 |
Organization and principal acti
Organization and principal activities | 12 Months Ended |
Dec. 31, 2021 | |
Organization and principal activities | |
Organization and principal activities | 1. Organization and principal activities X Financial (the “Company” or “X Financial”) is an exempted company incorporated with limited liabilities in the Cayman Islands under the laws of the Cayman Islands on January 5, 2015. The Company, its subsidiaries and its variable interest entities (collectively referred to as the “Group”) provides personal finance services in the People’s Republic of China (“PRC”) by connecting borrowers and investors through a proprietary internet platform. The Group began the operations through Shenzhen Ying Zhong Tong Financial Information Service Co., Ltd. (“Shenzhen Ying Zhong Tong”), which was founded in March 2014 in the PRC by Mr. Tang, Chief Executive Officer and Mr. Zhu (the “Founders”) who collectively held more than 50% of the equity holdings. During the period of 2015 to 2016, the Founders also established a number of special purpose vehicles(“SPVs”) to carry out personal finance business in the PRC. At the formation date of each SPV, Shenzhen Ying Zhong Tong entered into a series of contractual agreements with the SPV and its nominal shareholder(s) include Shareholders’ Voting Rights Proxy Agreements, Exclusive Call Option Agreements, Exclusive Business Cooperation Agreements, and Equity Pledge Agreements, through which Shenzhen Ying Zhong Tong (1) has power to direct the activities that most significantly affects the economic performance of the SPV and (2) can receive the economic benefits of the SPVs that could be significant to the SPV. Accordingly, Shenzhen Ying Zhong Tong is the primary beneficiary of the SPVs. On January 5, 2015, X Financial was incorporated in the Cayman Islands by the Founders and one other individual. The Founders collectively held more than 50% of the equity holdings of X Financial. Further, Mr. Zhu designated all of his shareholder rights to Mr. Tang through a proxy agreement. As such, Mr. Tang effectively was the controlling shareholder of the Company since its incorporation. On August 7, 2015, the Company completed its equity financing by issuing 38,095,238 ordinary shares to an unrelated third party investor at a consideration of US$60,000,000. In conjunction with the equity financing, the Company also issued an additional 40,000,000 ordinary shares to Mr. Yue Tang. Mr. Tang remained as the effective controlling shareholder. In order to raise capital through its initial public offering (“IPO”) in the United States, the Group undertook a series of transactions since late 2016 with X Financial being proposed as the listing entity(“Reorganization”): As PRC laws and regulations prohibit and restrict foreign ownership of internet value-added businesses, the Company established a wholly-owned foreign invested subsidiary in the PRC, Xiaoying (Beijing) Information Technology Co., Ltd (“Beijing WFOE”)on October 28, 2015. The existing contractual agreements with the SPVs and SPVs’ shareholders held by Shenzhen Ying Zhong Tong were assigned to Beijing WFOE. On October 19, 2016, Shenzhen Xiaoying Technology Co., Ltd. (“Shenzhen Xiaoying”) was incorporated in the PRC by the same shareholders of the Company with identical shareholdings. In December 2016, Shenzhen Xiaoying acquired Shenzhen Ying Zhong Tong for nominal consideration and Shenzhen Ying Zhong Tong became the wholly owned subsidiary of Shenzhen Xiaoying. As both Shenzhen Xiaoying and Shenzhen Ying Zhong Tong were controlled by Mr. Tang at the time, the transaction was a reorganization under common control. X Financial, through its PRC subsidiary, Beijing WFOE, entered into a series of contractual arrangements with Shenzhen Xiaoying, Beijing Ying Zhong Tong Rongxun Technology Service Co., Ltd (“Beijing Ying Zhong Tong”) in December 2017, and Shenzhen Tangren Financing Guarantee Co., Ltd (“Shenzhen Tangren”) in December 2016 and the shareholders of these entities respectively. Shenzhen Xiaoying, Beijing Ying Zhong Tong, Shenzhen Tangren and the SPVs are collectively referred to as “VIEs”. The series of contractual agreements included Shareholders’ Voting Rights Proxy Agreements, Spouse Consent Agreement, Exclusive Call Option Agreements, Exclusive Business Cooperation Agreements, and Equity Pledge Agreements. The Group believed that these contractual agreements would enable Beijing WFOE to (1) have power to direct the activities that most significantly affects the economic performance of the new VIEs and (2) receive the economic benefits of the VIEs that could be significant to the new VIEs. Accordingly, the Group believes that Beijing WFOE is the primary beneficiary of the VIEs. In conjunction with the Reorganization, the Group completed equity financing of RMB1 billion in June 2017. This round of equity financing was initially conducted by increasing registered capital of Shenzhen Xiaoying by 9 existing and new investors. Subsequently, X Financial issued additional shares to the affiliates of the same shareholders of this round of equity financing such that the shareholder ownership in X Financial mirrored those in Shenzhen Xiaoying. The Group considered the Reorganization as a reorganization of entities under common control. Accordingly, the accompanying financial statements have been prepared using historical cost basis as if the Reorganization had occurred at the beginning of the first period presented. During December 2017, Beijing WFOE acquired two subsidiaries from Shenzhen Xiaoying at cost. During February and March 2018, one of the Group’s wholly owned subsidiaries Shenzhen Xiaoying Puhui Technology Co., Ltd (“Shenzhen Puhui”) acquired four subsidiaries from one of the VIE entities Shenzhen Ying Zhong Tong at cost. During 2018, predominantly all of the SPVs under Shenzhen Xiaoying had been transferred to Shenzhen Xiaoying Puhui Technology Co., Ltd. (“Shenzhen Puhui”). These transactions represented a reorganization of entities under common control as they were already within the consolidated Group, with no impact to the consolidated financials. During September 2018, the Group completed an initial public offering of 11,763,478 American depositary shares (“ADSs”) at an initial offering price of US$9.50 which included the ADSs sold upon the exercise of the over-allotment option granted to the underwriters, representing 23,526,956 Class A ordinary shares. On May 31, 2021, Shenzhen Xiaoying Microcredit Co., Ltd. (“Xiaoying Microcredit”) was incorporated in the PRC with online microcredit business operating license by Shenzhen Xiaoying. Shenzhen Xiaoying had completed the capital contributions of RMB1 billion to Xiaoying Microcredit by the end of November, 2021. As of December 31, 2021, the Company’s principal subsidiaries, VIEs and subsidiaries of the VIEs are as follows: Date of Place of Percentage incorporation/ incorporation/ of legal establishment establishment ownership Principal activities Wholly owned subsidiaries YZT (HK) Limited January 14, 2015 Hong Kong 100 % Investment holding Xiaoying (Beijing) Information Technology Co., Ltd. (“Beijing WFOE”) October 28, 2015 Beijing 100 % Technology development and service, sale of products Shenzhen Xiaoying Puhui Technology Co., Ltd. (“Shenzhen Puhui”) December 6, 2016 Shenzhen 100 % Technology development and service, sale of products Shenzhen Xiaoying Information Technology Co., Ltd. (“Shenzhen Xiaoying IT”) November 28, 2016 Shenzhen 100 % Technology development and service, sale of products VIEs Shenzhen Xiaoying Technology Co., Ltd. (“Shenzhen Xiaoying”) October 19, 2016 Shenzhen 100 % Technology development and service, sale of products Beijing Ying Zhong Tong Rongxun Technology Service Co., Ltd. (“Beijing Ying Zhong Tong”) March 27, 2015 Beijing 100 % Technology development and service, sale of products Shenzhen Tangren Financing Guarantee Co., Ltd. (“Shenzhen Tangren”) December 16, 2016 Shenzhen 100 % Guarantee services Shenzhen Beier Asset Management Co., Ltd ("Shenzhen Beier") July 1, 2018 Shenzhen 100 % Capital management Significant subsidiaries of the VIEs Shenzhen Ying Zhong Tong Financial Information Service Co., Ltd. (“Shenzhen Ying Zhong Tong”) March 7, 2014 Shenzhen 100 % Technology development and service, sale of products Shenzhen Ying Ai Gou Trading Co., Ltd. ("Shenzhen Ying Ai Gou") October 25, 2018 Shenzhen 100 % E-commerce services Shenzhen Xiaoying Microcredit Co., Ltd. (“Xiaoying Microcredit”) May 31,2021 Shenzhen 100 % Microcredit services |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2021 | |
Summary of significant accounting policies | |
Summary of significant accounting policies | 2. Summary of significant accounting policies (a) The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). (b) Variable interest entity The consolidated financial statements include the financial statements of the Company, its wholly-owned subsidiaries, and consolidated VIEs. All intercompany transactions and balances have been eliminated. The Company, through its wholly-owned foreign invested subsidiary, Beijing WFOE in the PRC, entered into a series of contractual arrangements (“VIE agreements”) with Shenzhen Xiaoying, Beijing Ying Zhong Tong, Shenzhen Tangren, and Shenzhen Beier (collectively known as “the VIEs”) and their respective shareholders that enable the Company to (1) have power to direct the activities that most significantly affects the economic performance of the VIEs, and (2) receive the economic benefits of the VIEs that could be significant to the VIEs. As PRC laws and regulations prohibit and restrict foreign ownership of internet value-added businesses, the Company operates its business, primarily through the VIEs and the subsidiaries of the VIEs. Despite the lack of technical majority ownership, there exists a parent-subsidiary relationship between Beijing WFOE and the VIEs through the aforementioned agreements with the nominee shareholders of the VIEs. The following is a summary of the VIE agreements: (1) Shareholders’ Voting Rights Proxy Agreement: Pursuant to the voting rights proxy agreements signed between the VIEs’ nominee shareholders and Beijing WFOE, each nominee shareholder irrevocably appointed Beijing WFOE as its attorney-in-fact to exercise on each shareholder’s behalf and all rights that each shareholder has in respect of its equity interest in the VIEs (including but not limited to executing the exclusive right to the voting rights and the right to appoint directors and executive officers of the VIEs). The nominee shareholders cannot revoke the authorization and entrustment as long as the nominee shareholders remain a shareholder of the VIEs. For the arrangements among Beijing WFOE, each of the VIEs other than Shenzhen Beier, and their shareholders, the power of attorney will remain in force for ten years. Unless a thirty-day (2) Spouse Consent Agreement Under the spouse consent agreement, each signing spouse acknowledges that the shares of the VIEs held by the relevant shareholder of the VIEs are the personal assets of such shareholder and not jointly owned by the couple. Each signing spouse also unconditionally and irrevocably gives up his or her rights to such shares and any associated economic rights or interests to which he or she may be entitled pursuant to applicable laws and undertakes not to make any assertion of rights to such shares and the underlying assets. Each signing spouse agrees that he or she will not carry out in any circumstances any conduct that are contradictory to the contractual arrangements and this consent agreement. (3) Executive Call Option Agreement: Pursuant to the exclusive call option agreement entered into between the VIEs’ nominee shareholders and Beijing WFOE, the nominee shareholders irrevocably granted Beijing WFOE a call option to request the nominee shareholders to transfer or sell any part or all of its equity interests in the VIEs, to Beijing WFOE, or their designees. The purchase price of the equity interests in the VIEs shall be equal to the minimum price required by PRC law. Without Beijing WFOE’s prior written consent, the VIEs and its nominee shareholders shall not amend its articles of association, increase or decrease the registered capital, sell or otherwise dispose of its assets or beneficial interest, issue any additional equity or right to receive equity, provide any loans, distribute dividends in any form, etc. For the agreements among Beijing WFOE, each of the VIEs other than Shenzhen Beier, and their shareholders, these arrangements will remain effective for ten years. Unless notified by Beijing WFOE, the parties to these agreements shall extend the term of these agreements for another ten years. The agreement among Beijing WFOE, Shenzhen Beier and its shareholder does not specify its effective term. (4) Exclusive Business Cooperation Agreement: Pursuant to the exclusive business cooperation agreement entered into by Beijing WFOE and the VIEs, Beijing WFOE provides exclusive technical support and consulting services in return for fees based on 100% of the VIE’s total consolidated profit, which is adjustable at the sole discretion of Beijing WFOE. Without Beijing WFOE’s consent, the VIEs cannot procure services from any third party or enter into similar service arrangements with any other third party, except for those from Beijing WFOE. For the agreements between Beijing WFOE and each of the VIEs other than Shenzhen Beier, unless Beijing WFOE terminates these agreements in advance, these agreements will remain effective for ten years. Unless agreed by both parties in writing, this agreement shall be automatically renewed for another ten years upon its expiration. The agreement between Beijing WFOE and Shenzhen Beier will remain effective permanently, unless early terminated by Beijing WFOE in writing pursuant to this agreement or otherwise required by PRC laws. (5) Equity Pledge Agreement Each nominee shareholder of the VIEs has also entered into an equity pledge agreement with Beijing WFOE, pursuant to which each shareholder pledged his/her interest in Beijing WFOE to guarantee the performance of obligations of Beijing WFOE and its shareholders under the exclusive business cooperation agreement, exclusive call option agreement, and shareholders’ voting rights proxy agreement. If the VIEs or any of the nominee shareholder breaches its contractual obligations, Beijing WFOE will be entitled to certain rights and interests regarding the pledged equity interests including the right to dispose the pledged equity interests. None of the nominee shareholders shall, without the prior written consent of Beijing WFOE, assign or transfer to any third party, create or cause any security interest and any liability in whatsoever form to be created on, all or any part of the equity interests it holds in the VIEs. This agreement is not terminated until all of the agreements under the shareholders’ voting rights proxy agreement, exclusive call option agreement and the exclusive business cooperation agreement are fully performed. The irrevocable power of attorney has conveyed all shareholder rights held by the VIEs’ shareholders to Beijing WFOE or any person designated by Beijing WFOE, including the right to appoint executive directors of the VIEs to conduct day to day management of the VIEs’ businesses, and to approve significant transactions of the VIEs. In addition, the exclusive call option agreement provides Beijing WFOE with a substantive kick-out right of the VIEs shareholders through an exclusive option to purchase all or any part of the shareholders’ equity interest in the VIEs. In addition, through the exclusive business cooperation agreement, Beijing WFOE demonstrates its ability and intention to continue to exercise the ability to absorb substantially all of the profits and all of the expected losses of the VIEs. The equity pledge agreements further secure the obligations of the shareholders of the VIEs under the above agreements. Based on these contractual arrangements, the Company consolidates the VIEs in accordance with SEC Regulation S-X Rule 3A-02 and Accounting Standards Codification (“ASC”) topic 810 (“ASC 810”), Consolidation. The Company believes that the contractual arrangements with the VIEs are in compliance with PRC law and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government could: ● revoke the Group’s and operating licenses; ● levy fines on the Group; ● confiscate any of the Group’s income that they deem to be obtained through illegal operations; ● shut down the Group’s services; ● discontinue or restrict the Group’s operations in China; ● impose conditions or requirements with which the Group may not be able to comply; ● require the Group to change corporate structure and contractual arrangements; ● restrict or prohibit the use of the proceeds from overseas offerings to finance the Group’s PRC consolidated VIEs’ business and operations; and ● take other regulatory or enforcement actions that could be harmful to the Group’s business. Consolidated Trusts As part of the Group’s efforts to develop new product offerings for investors and institutional funding partners, the Group established a business relationship with certain trusts which were administered by third-party trust companies. The trusts were set up to invest solely in the loans facilitated by the Group on its platform to provide returns to the beneficiaries of the trusts through interest payments made by the borrowers. Both direct model and intermediary model are adopted for these trusts. Under direct model, loans are originated from trusts to borrowers while under intermediary model, the Group typically provides credit to the borrowers through an intermediary first and then transfers the loans to the trusts, which issue beneficial interests to the investors and institutional funding partners. The Group determines to consolidate these trusts as the Group is the primary beneficiary, due to the following reasons: 1) the Group has the power to direct the operating activities of the trusts; 2) the Group absorbs or enjoys the potential residual losses or returns of these trusts. Under intermediary model, the transfer of loans to the Consolidated Trusts are not eligible for sale accounting because the trust is consolidated and the loan transfer is considered an intercompany transaction. The Group further elected to apply fair value option to the loans (at the date of origination) and liabilities to investors and institutional funding partners to emphasize the relevancy of the accounting information of its consolidated financial statements. That is, the loans are continued to be recorded on the Group’s consolidated balance sheets as loans held for investment under “Loans at fair value” and the proceeds received from the investors and institutional funding partners are recorded as trust liabilities under “Payable to investors at fair value”. During 2020 and 2021, certain of the subsidiaries of the Group funded RMB64,375,517 and RMB74,051,199 to loan products facilitated on the Group’s platform through third-party trust companies. The trusts are consolidated by the Group and the underlying loans are recorded on the Group’s consolidated balance sheets as loans held for investment under “Loans at fair value”. Consolidated Partnerships In 2021, the Group further developed a new business model with certain trust partners. The Group and certain trusts jointly established several limited partnership enterprises, or LPs, to invest solely in the loans facilitated by the Group on its platform to provide returns to partners of the LPs through interest payments made by the borrowers. Intermediary model is adopted for the Consolidated Partnerships, the Group typically provides credit to the borrowers through an intermediary first and then transfers the loans to the LPs. The Group determines to consolidate these LPs as the Group is the primary beneficiary, due to the following reasons: 1) the Group has the power to direct the operating activities of the LPs; 2) the Group absorbs or enjoys the potential residual losses or returns of these LPs. The transfer of loans to the Consolidated Partnerships are not eligible for sale accounting because the LP is consolidated and the loan transfer is considered an intercompany transaction. The Group further apply amortized cost to the loans and liabilities to trust partners in its consolidated financial statements. That is, the loans are recorded on the Group’s consolidated balance sheets under “Loans receivables from Xiaoying Credit Loans and Xiaoying Revolving Loans” and the proceeds received from the trust partners are recorded as LP liabilities under “Payable to institutional funding partners”. During 2021,one of the subsidiaries of the Group funded RMB141,326,511 to loan products facilitated on the Group’s platform through the limited partnership enterprises. The LPs are consolidated by the Group and the underlying loans are recorded on the Group’s consolidated balance sheets under “Loans at receivables from Xiaoying Credit Loans and Xiaoying Revolving Loans”. The following financial statement amounts and balances of the Consolidated Trusts and Partnerships are included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances: As of December 31, As of December 31, 2020 2021 2021 RMB RMB US$ Assets: Restricted cash 476,854,616 212,812,257 33,394,887 Accounts receivable and contract assets, net — 8,335,518 1,308,025 Loans receivable from Xiaoying Credit Loans and Xiaoying Revolving loans, net — 1,622,699,799 254,637,008 Loans at fair value 1,585,731,888 389,679,352 61,149,194 Prepaid expenses and other current assets 11,359,212 7,889,836 1,238,087 Total assets 2,073,945,716 2,241,416,762 351,727,201 Liabilities: Payable to investors at fair value 1,914,183,650 462,714,400 72,609,987 Payable to institutional funding partners — 1,466,068,260 230,058,102 Other tax payable 3,357,513 5,631,031 883,632 Accrued expenses and other current liabilities 74,596,014 3,259,339 511,460 Total liabilities 1,992,137,177 1,937,673,030 304,063,181 Year ended Year ended December 31, December 31, Year ended December 31, 2019 2020 2021 2021 RMB RMB RMB US$ Net revenue 340,613,941 331,300,043 285,859,862 44,857,650 Net income (loss) 227,051,351 (19,795,471) 105,610,429 16,572,581 Year ended Year ended December 31, December 31, Year ended December 31, 2019 2020 2021 2021 RMB RMB RMB US$ Net cash provided by (used in) operating activities 123,521,027 (20,179,042) 155,272,678 24,365,672 Net cash provided by (used in) investing activities (2,684,753,233) 1,139,220,723 (433,914,047) (68,090,582) Net cash provided by (used in) financing activities 3,006,349,475 (1,092,165,825) 14,599,010 2,290,904 The following financial statement amounts and balances of the VIEs and Consolidated Trusts and Partnerships were included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances: As of December 31, As of December 31, 2020 2021 2021 RMB RMB US$ Assets: Cash and cash equivalents 170,390,218 212,766,581 33,387,719 Restricted cash 484,877,600 220,812,257 34,650,262 Accounts receivable and contract assets, net — 67,917,846 10,657,792 Financial investments 6,000,000 — — Loans receivable from Xiaoying Credit Loans and Xiaoying Revolving Loans, net — 2,458,221,481 385,748,593 Loan receivable from Xiaoying Housing Loans, net 47,490,437 12,083,317 1,896,136 Loans at fair value 1,585,731,888 389,679,352 61,149,194 Deposits to institutional cooperators, net 565,372 2,702,000 424,003 Prepaid expenses and other current assets, net 66,235,998 104,088,188 16,333,708 Financial guarantee derivative 297,928,066 11,816,799 1,854,314 Deferred tax assets, net 287,606,896 128,554,651 20,173,030 Long-term investments 292,115,200 556,571,016 87,338,138 Property and equipment, net 6,220,398 2,673,157 419,477 Intangible assets, net 30,431,482 29,554,089 4,637,681 Other non-current assets 6,914,006 4,850,671 761,176 Total assets 3,282,507,561 4,202,291,405 659,431,223 Liabilities: Payable to investors at fair value 1,914,183,650 462,714,400 72,609,987 Payable to institutional funding partners — 1,466,068,260 230,058,102 Financial guarantee derivative 130,442,090 565,953,269 88,810,418 Short-term bank borrowings 18,700,000 — — Accrued payroll and welfare 10,017,308 8,959,248 1,405,902 Other tax payable 37,103,700 100,333,129 15,744,457 Income tax payable 48,349,593 8,189,833 1,285,164 Accrued expenses and other current liabilities 230,564,165 85,485,440 13,414,531 Other non-current liabilities 1,739,541 — — Total liabilities 2,391,100,047 2,697,703,579 423,328,561 Year ended Year ended December 31, December 31, Year ended December 31, 2019 2020 2021 2021 RMB RMB RMB US$ Net revenue 2,650,594,409 754,755,127 1,388,255,858 217,847,638 Net income (loss) (14,609,225) (180,518,614) 695,892,749 109,200,756 Year ended Year ended December 31, December 31, Year ended December 31, 2019 2020 2021 2021 RMB RMB RMB US$ Net cash provided by (used in) operating activities 442,501,953 (190,951,068) 485,090,529 76,121,289 Net cash provided by (used in) investing activities (2,706,673,269) 1,133,193,197 (702,678,519) (110,265,593) Net cash provided by (used in) financing activities 2,808,349,475 (1,073,465,825) (4,100,990) (643,535) The VIEs and Consolidated Trusts and Partnerships contributed 86%, 34% and 38% of the Group’s consolidated revenue for the years ended December 31, 2019, 2020 and 2021 respectively. As of December 31, 2020 and 2021, the VIEs and Consolidated Trusts and Partnerships accounted for an aggregate of 44% and 57% of the consolidated total assets, and 54% and 80% of the consolidated total liabilities. There are no terms in any arrangements, considering both explicit arrangements and implicit variable interests that require the Company or its subsidiaries to provide financial support to the VIEs and Consolidated Trusts and Partnerships. However, if the VIEs were ever to need financial support, the Group may, at its option and subject to statutory limits and restrictions, provide financial support to its VIEs through loans to the shareholders of the VIEs or entrustment loans to the VIEs. The Group believes that there are no assets held in the VIEs that can be used only to settle obligations of the VIEs, except for registered capital and the PRC statutory reserves. As the VIEs are incorporated as limited liability companies under the PRC Company Law, creditors of the VIEs do not have recourse to the general credit of the Company for any of the liabilities of the VIEs. Relevant PRC laws and regulations restrict the VIEs from transferring a portion of their net assets, equivalent to the balance of its statutory reserve and its share capital, to the Company in the form of loans and advances or cash dividends. Please refer to Note 17 for disclosure of restricted net assets. (c) The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ materially from such estimates. Significant accounting estimates reflected in the Group’s consolidated financial statements include share-based compensation, allowance for credit losses of accounts receivables and contract assets, deposits to institutional cooperators, prepaid expenses and other current assets, loans receivables from Xiaoying Housing Loans and loans receivables from Xiaoying Credit Loans and Xiaoying Revolving Loans, allocation of considerations under revenue arrangements with various performance obligations, variable considerations of revenue recognition, valuation allowance for deferred tax assets, unrecognized tax benefits, the indefinite reinvestment assertion, fair value of guarantee liabilities and financial guarantee derivatives, loans at fair value and payable to investors at fair value, impairment of long-term investments and financial investments. (d) The Group provides services as an online marketplace connecting borrowers and investors or institutional funding partners primarily through the use of two business models. The major products offered by the Group include Xiaoying Credit Loan and Xiaoying Revolving Loan. Xiaoying Credit Loan mainly consists of Xiaoying Card Loan and Xiaoying Preferred Loan products. The major product under the category Xiaoying Revolving Loan is Yaoqianhua which was previously named as Xiaoying Wallet. The Group ceased facilitation of Xiaoying Preferred Loan in 2019, and ceased facilitation of Xiaoying Revolving Loan in 2020.Revenue is the transaction price the Group expects to be entitled to in exchange for the promised services in a contract in the ordinary course of the Group’s activities and is recorded net of value-added tax (“VAT”). The services to be accounted for include loan facilitation service, post-origination service (e.g. cash processing and collection services) and guarantee service. The first business model (“Direct Model”) involves the Group matching borrowers with investors or institutional funding partners who directly funds the credit drawdowns to the borrowers. The Group has determined that it is not the legal lender or borrower in the loan origination and repayment process, but acting as an intermediary to bring the lender and the borrower together. Therefore, the Group does not record the loans receivable or payable arising from the loans facilitated between the investors or institutional funding partners and borrowers on its platform. The second business model (“Intermediary Model”) involves the Group initially providing credit to borrowers using its own funds through an intermediary and subsequently selling the loans including all of the creditor rights in the loans to external investors or institutional funding partners on its platform within a short period of time. Loans facilitated by the Group typically have a term of less than 1 year. For each loan facilitated either through the Direct Model or Intermediary Model, the Group charges a service fee from the borrower indirectly through one of the Group’s VIEs, Shenzhen Tangren or external financing guarantee company or from institutional funding partner directly. No application fee is charged to borrowers or investors or institutional funding partners. For the loans the Group is entitled to the full service fee regardless of whether the borrowers choose to early repay or not, the Group has the unconditional right to the consideration. For the loans facilitated with borrowers who have the option of early repayment and upon termination they do not have the obligation to pay the remaining monthly service fees, the Group’s right to consideration for the service fees of facilitation service is conditional on whether or not the borrowers repay in advance. At contract inception, the Group determines that the collection of service fees is probable based on historical experiences as well as the credit due diligence performed on each borrower prior to loan origination. In order to be more competitive by providing a certain level of assurance to the investors or institutional funding partners, for certain loans facilitated by the Group’s platform, either borrowers or institutional funding partners are required to directly sign a credit insurance agreement with ZhongAn Online P&C Insurance Co., Ltd (“ZhongAn”) to protect investors or institutional funding partners against the risk of borrower default. In 2016 and January to September 2017, substantially all of the loans facilitated by the Group’s platform are insured by ZhongAn. The Group did not have direct contractual obligation to the investors for defaulted principal and interest during that period. The Group entered into a strategic cooperation agreement with ZhongAn pursuant to which ZhongAn provided insurance to the investors for the loans facilitated by the Group and reimbursed the loan principal and interest to the investor upon borrower’s default. During the aforementioned period, in order to maintain stable business relationship with ZhongAn, although not contractually obligated by the agreement with ZhongAn, the Group at its sole discretion paid ZhongAn for substantially all the defaulted loan principal and interest but have not been subsequently collected. The Group also provides direct guarantee to investors on certain loan products via its consolidated entities. The Group is compensated for this reimbursement from the contractual service fees collected from the borrowers. Given that the Group is at its sole discretion responsible for the uncollected claims paid, the Group effectively took on substantially all of the losses incurred by the investors due to borrowers’ default, the Group deemed the guarantee as a guarantee service to the investors and recognizes a stand ready obligation for its guarantee exposure in accordance with ASC Topic 460, Guarantees. From September 2017, the Group revised the arrangement with ZhongAn on substantially all of the Xiaoying Credit Loans Starting from 2020, the Group enters into a series of arrangements with various external financing guarantee companies, which is similar to the revised arrangement with ZhongAn. For certain Xiaoying Card Loans newly facilitated since September 2017 and certain Xiaoying Revolving Loans that are repaid in installments by borrowers, borrowers are required to enter into a guarantee agreement with the Group and an insurance/guarantee agreement with ZhongAn/financing guarantee companies, to pay the guarantee fee and insurance fee to the respective party at a pre-agreed rate. For certain loans that were newly facilitated in 2020, borrowers are required to enter into a guarantee agreement with the Group to pay the guarantee fee at a pre-agreed rate while at the same time, it is the institutional investors who enter into an insurance agreement with ZhongAn and the Group voluntarily pay the insurance fee to ZhongAn. The obligation/ credit risk/ exposure of the Group and Zhongan to compensate the defaulted loans has no change. Upon borrower’s default, ZhongAn/financing guarantee companies reimburse the full loan principal and interest to the investors or institutional funding partner first, and has the right to recourse to both the borrower and the Group, and the Group’s contractual obligation is at any time it limited to a cap (the “Cap”) which is the lower of (1) total amount of guarantee fees contractually required to be collected from the borrowers for such loans facilitated during the current period on an aggregated basis, and (2) a certain percentage of the total principal of the loans facilitated stated in an annualized manner, as pre-agreed with ZhongAn/financing guarantee companies (the “Rate”). The contractual guarantee fees in (1) is not influenced by default or early repayment of borrowers. The Group has no obligation or intention to compensate ZhongAn/financing guarantee companies for any losses in excess of the contractual obligation. The Rate will be negotiated prospectively at each quarter between the two parties based on the expected default rate. The actual loss in excess of the Cap is absorbed by ZhongAn/financing guarantee companies. ZhongAn/financing guarantee companies ultimately bear substantially all of the credit risk. The Group’s exposure in this arrangement is limited to the default and prepayment risk in relation to the guarantee fee when the Group cannot collect the guarantee fee under the agreement with the borrower on an individual basis but is still obligated to compensate ZhongAn/financing guarantee companies up to the Cap on a pool basis. The Group evaluated the guarantee arrangement pursuant to ASC Topic 815, and concluded that the arrangement meets the definition of a derivative and that it is not eligible for the guarantee scope exception. Therefore, the guarantee is recognized as a derivative liability/asset at fair value and is not accounted for pursuant to ASC Topic 460 or 450. See accounting policy for financial guarantee derivative. For other Xiaoying Preferred Loan products newly facilitated from September 2017, the borrowers are required to enter into an insurance agreement with ZhongAn only at a rate set by ZhongAn. No separate guarantee agreement is signed by the borrower with the Group and no additional guarantee fee is charged from the borrower. Upon borrower’s default, ZhongAn reimburses the full loan principal and interest to the investor or institutional funding partner. The Group collects the defaulted amount from borrowers on behalf of ZhongAn but has no obligation and it is no longer the Group’s intention to compensate ZhongAn for the defaulted loan principal and interest not subsequently collected in the future. ZhongAn is fully liable for all the borrower’s credit risk associated with the defaulted principal and interest of the loan. Therefore, for these loans, the Group provides loan facilitation and post-origination services but no longer provides guarantee service. The Group does not record guarantee liabilities associated with these loans or corresponding account receivables from guarantee services. Under the Direct Model, the total transaction price is directly allocated to the facilitation service and post-origination service. Under the Intermediary—non-trust model, upon transfer of the loan to third party investors, the Group recognize the difference between (1) the proceeds received from the investors and accounts receivable and (2) the carrying value of the loan as a gain of sale, which effectively represents the service fees earned from facilitation of the loans under Intermediary Model, as the “Loan facilitation service—Intermediary Model” in the consolidated statements of comprehensive income (loss). The Group ceased facilitation of Xiaoying Preferred Loan in October 2019. Direct Model The Group has early adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606) and all subsequent ASUs that modified ASC 606 on January 1, 2017 and has elected to apply it retrospectively for the year ended December 31, 2016. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, the Group applies the following steps: ● Step 1: Identify the contract (s) with a customer ● Step 2: Identify the performance obligations in the contract ● Step 3: Determine the transaction price ● Step 4: Allocate the transaction price to the performance obligations in the contract ● Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation The Group determines its customers to be both the borrowers and the investors or institutional funding partners. The Group considers the loan facilitation service, guarantee service and post-origination service as three separate services of which the guarantee service is accounted for in accordance with ASC Topic 460, Guarantees. While the post-origination service is within the scope of ASC Topic 860, the ASC Topic 606 revenue recognition model is applied due to the lack of definitive guidance in ASC Topic 860. The loan facilitation service and post-origination service are two separate performance obligations under ASC 606, as these two deliverables are distinct in that customers can benefit from each service on its own and the Group’s promises to deliver the services are separately identifiable from each other in the contract. The Group determines the total transaction price to be the service fees chargeable from the borrowers indirectly through one of the VIEs, Shenzhen Tangren or external financing guarantee companies or from certain institutional funding partners directly, including the guarantee fees charged by the Group under the separate guarantee agreement with the borrowers for certain type of Xiaoying Card Loans that are newly facilitated since September 2017. The Group’s transaction price include |
Fair value of assets and liabil
Fair value of assets and liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Fair value of assets and liabilities | |
Fair value of assets and liabilities | 3. Fair value of assets and liabilities For a description of the fair value hierarchy and the Group’s fair value methodologies, see “ Note 2—Summary of Significant Accounting Policies”. Financial Instruments Recorded at Fair Value on a Recurring Basis The following tables present the fair value hierarchy for assets and liabilities measured at fair value on a recurring basis: Balance at Fair Level 1 Level 2 Level 3 Value December 31, 2020 (RMB) (RMB) (RMB) (RMB) Assets Loans at fair value — — 1,585,731,888 1,585,731,888 Financial guarantee derivative — — 297,928,066 297,928,066 Financial investments 6,000,000 — — 6,000,000 Total assets 6,000,000 — 1,883,659,954 1,889,659,954 Liabilities Payable to investors at fair value — — 1,914,183,650 1,914,183,650 Financial guarantee derivative — — 130,442,090 130,442,090 Total liabilities — — 2,044,625,740 2,044,625,740 Balance at Fair Level 1 Level 2 Level 3 Value December 31, 2021 (RMB) (RMB) (RMB) (RMB) Assets Loans at fair value — — 389,679,352 389,679,352 Financial guarantee derivative — — 11,816,799 11,816,799 Total assets — — 401,496,151 401,496,151 Liabilities Payable to investors at fair value — — 462,714,400 462,714,400 Financial guarantee derivative — — 565,953,269 565,953,269 Total liabilities — — 1,028,667,669 1,028,667,669 Balance at Fair Level 1 Level 2 Level 3 Value December 31, 2021 (US$) (US$) (US$) (US$) Assets Loans at fair value — — 61,149,194 61,149,194 Financial guarantee derivative — — 1,854,314 1,854,314 Total assets — — 63,003,508 63,003,508 Liabilities Payable to investors at fair value — — 72,609,987 72,609,987 Financial guarantee derivative — — 88,810,418 88,810,418 Total liabilities — — 161,420,405 161,420,405 Financial guarantee derivative The Group uses the discounted cash flow model to value the financial guarantee derivatives. Net cumulative expected loss rates represent expected default rate, prepayment rate and collection rate at inception, as significant unobservable inputs applied in the discounted cash flow model, which ranged from 4.79% to 17.87% and from 3.43% to 13.29% for the year ended December 31, 2020 and 2021, respectively. The following table sets forth the asset side of Group’s financial guarantee derivative movement activities for the years ended December 31, 2020 and 2021. For loans facilitated in For loans facilitated in 2019 2020 Total Year ended December 31, 2020 RMB RMB RMB Balance at December 31, 2019 (719,962,262) — (719,962,262) Estimated payment to financial institutional cooperators based on the pre-agreed Cap(1) — 1,268,778,377 1,268,778,377 Less: Initially estimated net guarantee service fee to be collected(2) — 1,151,250,106 1,151,250,106 Add : Subsequent changes in estimated net guarantee service fee to be collected for outstanding loans(3) 57,152,814 (41,440,640) 15,712,174 Change in fair value of financial guarantee derivative 57,152,814 76,087,631 133,240,445 Add: Guarantee service fee received from borrowers 818,427,767 622,533,675 1,440,961,442 Less: Compensation paid to financial institutional cooperators 155,618,319 996,549,372 1,152,167,691 Balance at December 31, 2020 — (297,928,066) (297,928,066) Potential maximum undiscounted amount payable (Remaining estimated payment to financial institutional cooperators based on the pre-agreed Cap at December 31, 2020) — 272,229,005 272,229,005 Changes in fair value related to balance outstanding at December 31, 2020 — 39,915,887 39,915,887 For loans facilitated in For loans facilitated in 2020 2021 Total Total Year ended December 31, 2021 RMB RMB RMB USD Balance at December 31, 2020 3,842,853 — 3,842,853 603,027 Estimated payment to financial institutional cooperators based on the pre-agreed Cap — 212,641,902 212,641,902 33,368,155 Less: Initially estimated net guarantee service fee to be collected — 201,562,969 201,562,969 31,629,628 Add : Subsequent changes in estimated net guarantee service fee to be collected for outstanding loans 1,044,741 1,731,660 2,776,401 435,678 Change in fair value of financial guarantee derivative 1,044,741 12,810,593 13,855,334 2,174,204 Add: Guarantee service fee received from borrowers 52,087,120 94,897,894 146,985,014 23,065,156 Less: Compensation paid to financial institutional cooperators 56,974,714 119,525,286 176,500,000 27,696,702 Balance at December 31, 2021 — (11,816,799) (11,816,799) (1,854,314) Potential maximum undiscounted amount payable (Remaining estimated payment to financial institutional cooperators based on the pre-agreed Cap at December 31, 2021) — 93,116,616 93,116,616 14,612,029 Changes in fair value related to balance outstanding at December 31, 2021 — 11,388,942 11,388,942 1,787,174 Note: (1) (2) (3) The following table sets forth the liability side of Group’s financial guarantee derivative movement activities for the years ended December 31, 2020 and 2021. For loans facilitated in 2020 Year ended December 31, 2020 RMB Balance at December 31, 2019 — Estimated payment to financial institutional cooperators based on the pre-agreed Cap (1) 527,660,148 Less: Initially estimated net guarantee service fee to be collected (2) 484,555,120 Add : Subsequent changes in estimated net guarantee service fee to be collected for outstanding loans (3) (12,675,358) Change in fair value of financial guarantee derivative 30,429,670 Add: Guarantee service fee received from borrowers 173,018,461 Less: Compensation paid to financial institutional cooperators 73,006,041 Balance at December 31, 2020 130,442,090 Potential maximum undiscounted amount payable (Remaining estimated payment to financial institutional cooperators based on the pre-agreed Cap at December 31, 2020) 454,654,107 Changes in fair value related to balance outstanding at December 31, 2020 21,496,996 For loans facilitated in For loans facilitated in 2020 2021 Total Total Year ended December 31, 2021 RMB RMB RMB USD Balance at December 31, 2020 (171,328,829) — (171,328,829) (26,885,232) Estimated payment to financial institutional cooperators based on the pre-agreed Cap (1) — 1,927,017,013 1,927,017,013 302,391,020 Less: Initially estimated net guarantee service fee to be collected (2) — 1,827,304,009 1,827,304,009 286,743,874 Add : Subsequent changes in estimated net guarantee service fee to be collected for outstanding loans (3) 3,790,670 52,979,985 56,770,655 8,908,555 Change in fair value of financial guarantee derivative 3,790,670 152,692,989 156,483,659 24,555,701 Add: Guarantee service fee received from borrowers 837,446,557 1,147,827,202 1,985,273,759 311,532,775 Less: Compensation paid to financial institutional cooperators 669,908,398 734,566,922 1,404,475,320 220,392,826 Balance at December 31, 2021 — 565,953,269 565,953,269 88,810,418 Potential maximum undiscounted amount payable (Remaining estimated payment to financial institutional cooperators based on the pre-agreed Cap at December 31, 2021) — 1,192,450,091 1,192,450,091 187,121,440 Changes in fair value related to balance outstanding at December 31, 2021 — 110,763,906 110,763,906 17,381,274 Note: (1) (2) (3) The change in fair value of financial guarantee derivative primarily relates the Group’s estimated exposure in relation to the loans newly facilitated during the corresponding period, as the Group is obligated to compensate financial institutional cooperators under the guarantee arrangement based on the contractual guarantee fees charged to borrowers across the entire portfolio subject to a pre-agreed Cap rather than the actual guarantee fees collected from the borrowers. The change in fair value amount equals to the portion of amounts obligated to pay to financial institutional cooperators that are not expected to be collected from the borrowers due to the estimated default or prepayment. The derivative is increased by the guarantee fees collected from the borrowers upon receipt as the Group expects all the fees to be ultimately paid to financial institutional cooperators. When the payments are made to financial institutional cooperators, the derivative is reduced by the corresponding amount. The total loan products related to guarantee derivatives facilitated during the years ended December 31, 2020 and 2021 were RMB22,050,765,318 and RMB25,229,094,745 (US$ 3,958,995,503), respectively. As of December 31, 2020 and 2021, financial guarantee derivatives related to certain financial institutional cooperators has an asset position of RMB297,928,066 and RMB11,816,799 (US$1,854,314) respectively, primarily due to the time lag between the payments to those financial institutional cooperators and the collection of monthly guarantee service fees from borrowers. As of December 31, 2020 and 2021, the cumulative amount paid to those financial institutional cooperators was less than the cumulative monthly guarantee service fees collected from borrowers. However, the total amount paid to those financial institutional cooperators was still within the pre-agreed Cap. The excess is expected to be fully collected from the borrowers during the remaining term of the underlying loans. As of December 31, 2020 and 2021, financial guarantee derivatives related to certain financial institutional cooperators has a liability position of RMB130,442,090 and RMB565,953,269 (US$88,810,418). As of December 31, 2020 and 2021, the maximum potential undiscounted future payment the Group would be required to make is RMB726,883,112 and RMB1,285,566,707 (US$201,733,469) which also reflects the maximum potential payment to financial institutional cooperators based on the pre-agreed Cap. The following table represents the outstanding loan balance, remaining weighted average contractual term and estimated default rate of the outstanding loans as of December 31, 2020 and 2021, respectively. As of As of As of December 31, December 31, December 31, 2020 2021 2021 RMB RMB US$ Outstanding loan balance 11,349,182,478 9,877,178,724 1,549,944,877 Remaining weighted average contractual term (Month) 8.16 6.76 6.76 Net cumulative expected loss rates (1) 5.75 % 7.74 % 7.74 % (1) Represent the net of default rate, prepayment rate and collection rate. Loans at fair value and Payable to investors at fair value The Group has elected the fair value option for the loan assets and liabilities of the Consolidated Trusts that otherwise would not have been carried at fair value. Such election is irrevocable and is applied to financial instruments on an individual basis at initial recognition. As the Group’s loans and payable to investors in the Consolidated Trusts do not trade in an active market with readily observable prices, the Group uses significant unobservable inputs to measure the fair value of these assets and liabilities. Financial instruments are categorized in the Level 3 valuation hierarchy based on the significance of unobservable factors in the overall fair value measurement. At December 31, 2020 and 2021, the discounted cash flow methodology is used to estimate the fair value of loans and payables to investors and institutional funding partners. As of December 31, 2020 and 2021, the significant unobservable inputs used in the fair value measurement of the loans and payables to investors and institutional funding partners of the Consolidated Trusts include the discount rate, net accumulative expected loss. These inputs in isolation can cause significant increases or decreases in fair value. Increases or decrease in the discount rate can significantly impact the fair value results. The discount rate is determined based on the market rates. Significant Unobservable Inputs December 31, 2020 December 31, 2021 Range of Inputs Range of Inputs Financial Instrument Unobservable Input Weighted-Average Weighted-Average Loans and payable to investors at fair value Discount rates 7.77 % 6.46 % Net cumulative expected loss rates (1) 5.88 % 5.92 % (1) Represents the net of default rate, prepayment rate and collection rate, expressed as a percentage of the loan volume. The following table presents additional information about Level 3 loans and payable to investors measured at fair value on a recurring basis for the years ended December 31, 2020 and 2021. Changes in fair value of loans and payable to investors are reported net as “Fair value adjustments related to Consolidated Trusts” in the consolidated statements of comprehensive income(loss). RMB Changes in fair value related to balance Balance at Origination Balance at outstanding at December 31, of loan Collection of Reinvestment Change in December December 31, 2019 principal principal of principal fair value 31, 2020 2020 Xiaoying Credit Loan 2,782,332,885 1,521,546,428 (5,155,380,196) 2,494,613,045 (57,380,274) 1,585,731,888 5,031,830 RMB Changes in fair value related to balance Balance at Origination Balance at outstanding at December 31, of loan Collection of Reinvestment Change in December December 31, 2020 principal principal of principal fair value 31, 2021 2021 Xiaoying Credit Loan 1,585,731,888 422,081,700 (3,427,158,051) 1,816,290,599 (7,266,784) 389,679,352 (2,234,954) USD Changes in fair value related to balance Balance at Origination Balance at outstanding at December 31, of loan Collection of Reinvestment Change in December December 31, 2020 principal principal of principal fair value 31, 2021 2021 Xiaoying Credit Loan 248,835,936 66,233,829 (537,795,884) 285,015,629 (1,140,317) 61,149,194 (350,713) Payable to investors at fair value of the Consolidated Trusts RMB Balance at December 31, 2019 3,006,349,475 Initial contribution 1,537,760,000 Principal payment (2,629,925,825) Changes in fair value — Balance at December 31, 2020 1,914,183,650 Changes in fair value related to balance outstanding at December 31, 2020 — Payable to investors at fair value of the Consolidated Trusts RMB US$ Balance at December 31, 2020 1,914,183,650 300,377,185 Initial contribution 454,490,000 71,319,399 Principal payment (1,905,959,250) (299,086,597) Changes in fair value — — Balance at December 31, 2021 462,714,400 72,609,987 Changes in fair value related to balance outstanding at December 31, 2021 — — The unpaid balance of loans at fair value as of December 31, 2020 and 2021 were RMB1,580,700,058 and RMB391,914,306 (US$61,499,907). The difference between the aggregate fair value and unpaid principal balance for loans at fair value is primarily attributable to the credit risk associated with the loan collections and time value of money, amounted to RMB5,031,830 and RMB2,234,954 (US$350,713) as of December 31, 2020 and 2021, respectively. The unpaid balance of payable to investors as of December 31, 2020 and 2021 were RMB1,914,183,650 and RMB462,714,400 (US$72,609,987). The difference between the aggregate fair value and unpaid principal balance for payable to investors at fair value is primarily due to the time value of money, amounted nil and nil respectively as of December 31, 2020 and 2021. The difference between the aggregate fair value and unpaid principal balance for both loans at fair value and payable to investors at fair value was recorded in Fair value adjustments related to Consolidated Trusts in the consolidated statements of comprehensive income(loss). Financial Instruments Recorded at Fair Value on a non-recurring basis The Group records its loans held for sale at fair value on a non-recurring basis when the fair value is less than the carrying amount. Given most of loans held for sale are traded with unrelated third party investors or institutional funding partners in a short period of time at face value, the Group determines that the face value of loans approximate its fair value upon origination and are classified as level 2 fair value measurement. Financial Instruments Not Recorded at Fair Value Financial instruments, including cash and cash equivalents, accounts receivable and contract assets, other payable and short-term bank borrowings. The carrying values of cash and cash equivalents, accounts receivable and contract assets, other payable and short-term bank borrowings approximate their fair value reported in the consolidated balance sheets due to the short term nature of these assets and liabilities. |
Prepaid expenses and other curr
Prepaid expenses and other current assets | 12 Months Ended |
Dec. 31, 2021 | |
Prepaid expenses and other current assets | |
Prepaid expenses and other current assets | 4. Prepaid expenses and other current assets Prepaid expenses and other current assets consist of the following: As of December 31, As of December 31, 2020 2021 2021 RMB RMB US$ Earnings rights associated with loan assets(1) 258,012,040 99,235,400 15,572,200 Prepaid expenses(2) 57,084,166 19,325,954 3,032,664 Input VAT to be deducted 64,367,796 63,867,418 10,022,192 Interest receivable of Consolidated Trusts 11,359,212 7,889,836 1,238,087 Dividend receivable(3) — 15,000,000 2,353,827 Advance to employee 1,510,410 1,205,085 189,104 Others 11,442,695 6,603,785 1,036,278 Total prepaid expenses and other current assets 403,776,319 213,127,478 33,444,352 (1) Loan#1 had been fully repaid in 2020. Loan#2 was advanced on May 9, 2019 and was due on November 9, 2019, and the interest rate applied is 8%. In 2019 and 2020, the maturity date of the entire Loan#2 had been extended to November 9, 2020 and November 9, 2021, respectively. As of the date of this report, Loan#2 had been fully repaid. The Group assesses the allowance for credit losses for the earnings rights of loan assets in accordance with ASC 326, taking reference with the credit ratings of the corresponding loan borrowers and applying the probability of default rates, based on the mapping of probability of default rates and external credit ratings. The following table presents the movement of the allowances for the credit losses for earnings rights associated with the loan assets: Reversal of provision of credit losses for As of earnings rights As of December 31, associated with the loan December 31, 2020 assets 2021 RMB RMB RMB Total 1,987,960 (1,223,360) 764,600 Reversal of provision of credit losses for As of earnings rights As of December 31, associated with the loan December 31, 2020 assets 2021 US$ US$ US$ Total 311,954 (191,972) 119,982 (2) Prepaid expenses mainly relate to prepaid service fee to the Group’s service providers. (3) The amount represents dividend receivable from Jiangxi Ruijing, one of the Group’s associates. |
Deposits to institutional coope
Deposits to institutional cooperators, net | 12 Months Ended |
Dec. 31, 2021 | |
Deposits to institutional cooperators, net | |
Deposits to institutional cooperators, net | 5. Deposits to institutional cooperators, net The following table presents the deposits to cooperators as of December 31, 2020 and 2021, respectively: As of December 31, As of December 31, 2020 2021 2021 RMB RMB US$ Deposits to cooperators 918,241,497 1,502,433,446 235,764,593 Provision for credit losses on deposits to institutional cooperators (10,318,117) (2,026,696) (318,033) Deposits to cooperators, net 907,923,380 1,500,406,750 235,446,560 Deposits to cooperators relate to the pledged cash to the Group’s financial institutional cooperators and the amount of deposit is separately agreed with each institutional cooperator.In 2020, to maintain the collaborative relationship with one of its institutional cooperator and to avoid any material adverse impact on the Group’s current business model and future transaction cost, the Group used deposits amounting to RMB970,000,000 to compensate for such institutional cooperator’s loss for the amount it had paid under investors’ or institutional funding partners’ claims arising from borrowers’ default to repay loans. The Group also assumed the right of subrogation and related rights against the defaulting borrowers, which were sold to a third party with the consideration of RMB10,000,000. The Group has recognized above loss of RMB960,000,000 as impairment of the deposits and has also provided an allowance for the potential losses of the remaining deposits, taking into account the underlying assets’ credit quality. As of 31 December, 2020 and 2021, the allowance of deposits to cooperators was RMB10,318,117 and RMB2,026,696(US$318,033), respectively. The following table presents the movement of the provision for deposits to institutional cooperators: Reversal of provision for As of credit losses on Charge-off for As of December 31, deposits to deposits to December 31, 2020 institutional cooperators institutional cooperators 2021 RMB RMB RMB RMB Deposits to institutional cooperators 10,318,117 (8,291,421) — 2,026,696 Reversal of provision for As of credit losses on Charge-off for As of December 31, deposits to deposits to December 31, 2020 institutional cooperators institutional cooperators 2021 US$ US$ US$ US$ Deposits to institutional cooperators 1,619,138 (1,301,105) — 318,033 |
Property and equipment, net
Property and equipment, net | 12 Months Ended |
Dec. 31, 2021 | |
Property and equipment, net | |
Property and equipment, net | 6. Property and equipment, net Property and equipment, net consists of the following: As of December 31, As of December 31, 2020 2021 2021 RMB RMB US$ Computer and transmission equipment 22,107,077 19,521,668 3,063,376 Furniture and office equipment 3,663,257 2,781,360 436,456 Leasehold improvements 21,682,197 22,803,702 3,578,398 Motor vehicles 816,103 816,103 128,064 Total property and equipment 48,268,634 45,922,833 7,206,294 Accumulated depreciation (37,132,035) (39,734,571) (6,235,221) Property and equipment, net 11,136,599 6,188,262 971,073 Depreciation expense was RMB10,544,813, RMB10,114,779 and RMB6,215,253 (US$975,309) for the years ended December 31, 2019, 2020 and 2021, respectively. Disposal of property and equipment resulted in a gain of RMB2,389 during the year ended December 31, 2019, but a loss of RMB59,213 for the year ended December 31, 2020, and a gain of RMB180,537(US$28,330) in the year ended December 31, 2021. |
Intangible assets, net
Intangible assets, net | 12 Months Ended |
Dec. 31, 2021 | |
Intangible assets | |
Intangible assets | 7. Intangible assets, net Intangible assets, net consists of the following: Weighted Average As of Remaining December 31, As of December 31, Amortization 2020 2021 2021 Period in Years RMB RMB US$ Licenses (1) 26,600,000 26,600,000 4,174,120 NA Software and others 15,438,530 16,735,406 2,626,150 3.03 Accumulated amortization (4,598,123) (6,518,422) (1,022,883) Intangible assets, net 37,440,407 36,816,984 5,777,388 (1) Amortization expenses were RMB834,884, RMB1,800,749 and RMB1,920,299 (US$301,337) for the years ended December 31, 2019, 2020 and 2021 respectively. The Group expects to record amortization expenses of RMB1,910,149 (US$299,744), RMB1,531,321 (US$240,298), RMB1,316,290 (US$206,555), RMB1,316,290 (US$206,565) and RMB1,312,187 (US$205,911) for the years ending December 31, 2022, 2023, 2024, 2025 and 2026 respectively. |
Short-term bank borrowings
Short-term bank borrowings | 12 Months Ended |
Dec. 31, 2021 | |
Short-term bank borrowings | |
Short-term bank borrowings | 8. Short-term bank borrowings In January 2020, the Group set up a six -month loan amounting to RMB 161,000,000 and repaid with interest amounting to RMB 3,215,081 in July 2020. As of December 31, 2020, out of the secured one-year borrowings, RMB 350,545,000 were secured by restricted cash of US$ 55,950,000 . The weighted average interest rate of all short-term borrowings is 4.04% per annum as of December 31, 2020. The loan had been fully repaid during the year of 2021. In March 2021, the Group set up a six As of December 31, 2021, out of the secured one-year borrowings, RMB166,500,000 were secured by restricted cash of US$29,050,000. The weighted average interest rate of all short-term borrowings is 3.17% per annum as of December 31, 2021. |
Financial investments
Financial investments | 12 Months Ended |
Dec. 31, 2021 | |
Financial investments | |
Financial investments | 9. Financial investments During the years ended December 31, 2020 and 2021, the Group invested financial products issued by banks of RMB6,000,000 and RMB30,000,000, respectively and these financial products have been fully collected in 2021. During the years ended December 31, 2020 and 2021, the Company recorded interest income from its financial investments of nil and RMB302,460(US$47,463) in the consolidated statements of comprehensive income (loss), respectively. During the year ended December 31, 2021, the Group invested in an aggregate amount of US$13,000,000 in two VC funds, which were elected to be measured at the cost minus impairment. During the year ended December 31, 2021, no gain or loss from investments in VC funds was recognized in the consolidated financial statements. There was no any upward adjustment, downward adjustment including impairment, nor disposal of investment during the year ended December 31, 2021. The following table presents the carrying amount of investments in VC funds as of December 31, 2021: As of December 31, 2021 2021 RMB US$ Opening balance — — Contribution 82,843,800 13,000,000 Upward adjustment — — Downward adjustments including impairment — — Ending Balance 82,843,800 13,000,000 |
Long-term investments
Long-term investments | 12 Months Ended |
Dec. 31, 2021 | |
Long-term investments | |
Long-term investments | 10. Long-term investments During the year ended December 31, 2017, the Group invested RMB15,000,000 in cash for 10% of the equity interest in a private company which mainly operates computer services, advisory and car leasing & financing. The significant influence can be given by the Group as the Group has its representation on the board and thus equity method was applied. As the investee was unable to sustain an earnings capacity that would justify the carrying amount of the investment, the Group fully impaired the investment amounting to RMB12,538,280 and considered that such impairment is other than temporary in 2019. In 2017, the Group also invested RMB40,000,000 in cash of equity interests through nominee arrangement where the Group obtained all shareholder rights associated with the 40% equity holdings through contractual agreements with the nominal shareholder as the Group currently does not meet certain regulatory requirements to directly invest in such investee company. As the Group has significant influence over the private entity through its representation on the board, the investment was accounted for using the equity method. As of the date of this report, the investee company is in the winding up process and the Group has collected its capital contribution of RMB40,000,000 from the investee company. During the year ended December 31, 2018, the Group invested RMB225,000,000 in cash for 15% equity interest of a Jiangxi Ruijing Financial Asset Management Co., Ltd. (‘‘Jiangxi Ruijing’’), a PRC based asset management company through a nominee arrangement where the Group obtained all shareholder rights associated with the 15% equity holdings through contractual agreements with the nominal shareholder. Given that the Group has the ability to significantly influence Jiangxi Ruijing, the equity method of accounting was used. During the year ended December 31, 2020, the Group invested RMB3,500,000 in cash for 20% equity interest of a PRC based digital system service company, whereas the Group obtained less than 17% of the voting power of the investee. Given that the Group does not have the ability to exercise significant influence over investments, the cost method of accounting was used. During the year ended December 31, 2021, the Group invested RMB315,000,000 in cash for 45% equity interest of Shenyang Tianxinhao Technology Limited, a PRC based software and information technology services company. The significant influence can be given by the Group as the Group has its representation on the board and thus equity method was applied. There are no differences between the amount at which these long-term investments were carried and the amount of the underlying equities in net assets. The following table presents the summary combined financial information for the investee companies as of and for the years ended December 31, 2020 and 2021. As of December 31, As of December 31, 2020 2021 2021 RMB RMB US$ Assets: Cash and cash equivalents 1,090,349,265 327,483,767 51,389,349 Financial investments 3,361,800,611 4,291,549,384 673,437,747 Prepaid expenses and other current assets, net 90,141,356 1,331,030,237 208,867,690 Long-term investments — 538,864,786 84,559,644 Other non-current assets 18,428,513 29,069,461 4,561,633 Total assets 4,560,719,745 6,517,997,635 1,022,816,063 Liabilities: Short-term borrowings 118,754,431 136,611,562 21,437,335 Accrued expenses and other current liabilities 742,087,584 742,552,522 116,522,694 Long-term borrowings 1,937,000,000 2,611,819,014 409,851,397 Other non-current liabilities 86,280 5,738,967 900,569 Total liabilities 2,797,928,295 3,496,722,065 548,711,995 Year ended December 31, Year ended December 31, 2020 2021 2021 RMB RMB US$ Net revenues 115,828,103 315,420,375 49,496,340 Net income 72,275,985 123,545,201 19,386,938 |
Accrued expenses and other curr
Accrued expenses and other current liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Accrued expenses and other current liabilities | |
Accrued expenses and other current liabilities | 11. Accrued expenses and other current liabilities Accrued expenses and other current liabilities consist of the following: As of December 31, As of December 31, 2020 2021 2021 RMB RMB US$ Fund attributable to institutional funding partners (1) 16,485,383 68,931,284 10,816,823 Accrued interest payable of Consolidated Trusts 25,320,873 1,219,993 191,443 Professional fee payable 27,648,350 25,874,860 4,060,330 Commission fee payable(2) 101,285,353 81,862,576 12,846,025 Insurance fee payable(3) 65,906,706 14,360,705 2,253,508 Lease liabilities 16,871,785 12,331,166 1,935,029 Other accrued expenses 70,229,980 64,385,966 10,103,563 Total accrued expenses and other current liabilities 323,748,430 268,966,550 42,206,721 (1) (2) (3) |
Guarantee liabilities
Guarantee liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Guarantee liabilities. | |
Guarantee liabilities | 12. Guarantee liabilities The movement of guarantee liabilities during the years ended December 31, 2019, 2020 and 2021 are as follows: RMB As of Provision at As of January 1, the inception Released on Contingent December 31, 2019 of new loans Net payout(1) expiration liability(2) 2019 Xiaoying Credit Loan 19,297,719 — (6,333,472) (3,366,501) 289,211 9,886,957 Xiaoying Housing Loan 1,600,482 184,036 97,593 (1,752,115) — 129,996 Internet Channel — — — — 7,458,350 7,458,350 Total 20,898,201 184,036 (6,235,879) (5,118,616) 7,747,561 17,475,303 RMB As of Provision at As of January 1, Adoption of the inception Released on Contingent December 31, 2020 ASU 2016-13 of new loans Net payout(1) expiration liability 2020 Xiaoying Credit Loan 9,886,957 168,385 — 9,192,069 (14,162,703) 55,034 5,139,742 Xiaoying Housing Loan 129,996 2,214 — 42,660 (174,870) — — Internet Channel 7,458,350 127,023 — (3,761,403) — 825,914 4,649,884 Total 17,475,303 297,622 — 5,473,326 (14,337,573) 880,948 9,789,626 RMB Reversal of As of Provision at provision for As of January 1, the inception Released on contingent December 31, 2021 of new loans Net payout(1) expiration liability 2021 Xiaoying Credit Loan 5,139,742 — 7,821,975 (12,961,717) — — Internet Channel 4,649,884 — (4,625,600) — (24,284) — Total 9,789,626 — 3,196,375 (12,961,717) (24,284) — USD Reversal of As of Provision at provision for As of January 1, the inception Released on contingent December 31, 2021 of new loans Net payout (1) expiration liability 2021 Xiaoying Credit Loan 806,538 — 1,227,439 (2,033,976) — — Internet Channel 729,668 — (725,858) — (3,811) — Total 1,536,206 — 501,581 (2,033,976) (3,811) — (1) (2) The maximum potential undiscounted future payment was nil as of December 31, 2021. The following table presents the maximum potential undiscounted future payments by product, remaining weighted average contractual loan term, and estimated net default rates as of December 31, 2020: Remaining Maximum potential Maximum potential weighted undiscounted future undiscounted future average payment payment contractual Estimated net As of December 31, 2020 (RMB) (USD) term (Month) default rate Xiaoying Credit Loan 10,560,672 1,618,494 3.04 26.06 % Internet Channel (1) 4,649,885 712,626 2.21 100 % Total 15,210,557 2,331,120 (1) As of December 31, 2020, the maximum potential undiscounted future payment that had been secured through use of collateral was nil. From 2018, the Group entered into a series of arrangements with various external asset management companies to provide guarantee service for an identified portfolio of loans facilitated on the Company’s platform and engages directly with the borrowers and investors on the platform. Throughout the loan term, borrowers pay the guarantee fee directly to the asset management companies. Upon the default of the borrower, the asset management companies directly compensate the investors and obtains the creditor’s rights of the loans. As a result, no guarantee liabilities have been recorded by the Group for the loan portfolio that are guaranteed by the asset management companies. |
Related party balances and tran
Related party balances and transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related party balances and transactions | |
Related party balances and transactions | 13. Related party balances and transactions In 2019, the Group transferred loan portfolios with an aggregate amount of RMB108.7 million to Zijinzhonghao(Zhejiang) Investment Co., Ltd. The considerations received by the Group were determined based on the outstanding loan balances on the transaction dates. In 2019, the Group purchased earnings rights of two loans from Jiangxi Ruijing. The considerations paid amounted to RMB100,000,000 and RMB280,000,000, respectively, which equal to the principal amounts of the underlying loans. In 2020, earnings right of the former loan (Loan#1) had been fully repaid. Earnings right of the latter loan (Loan#2) had been partially repaid by RMB20,000,000 and RMB160,000,000 in 2020 and 2021, respectively, and the remaining RMB100,000,000 had been fully repaid in January 2022. (Note 4(1)). The associated interest income amounted to RMB27,111,557, RMB28,774,549 and RMB17,269,246(US$2,709,921) in 2019, 2020 and 2021, respectively. In 2021, the Company entered into agreements with a financing guarantee company, which is a wholly-owned subsidiary of the Company's equity investee obtained in 2020. This financing guarantee company provides guarantee service for an identified portfolio of loans the Company facilitated and charges borrowers a guarantee fee, a portion of which will be subsequently paid to the Company as the service fee for the intermediary service the Company provide. During the year of 2021, this financing guarantee company provided guarantee service for 5.9% of the total loans the Company facilitated. The Company recognized total net revenue of RMB78,801,582(US$12,365,688) during the year of 2021 in connection with the service fees of facilitation service for loans that covered by this financing guarantee company. As of December 31, 2021, contract assets of RMB66,761,250(US$10,476,297) will be subsequently collected from this financing guarantee company. In 2021, the Group provided a loan of RMB150,000,000(US$23,538,273) to an associate of the Group, Shenyang Tianxinhao Technology Limited, and the monthly interest rate applied is 0.5%. The loan had been fully repaid during the year of 2021. The associated interest income amounted to RMB750,000(US$117,691) in 2021. |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income taxes | |
Income taxes | 14. Income taxes Cayman Islands X Financial is a company incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, the Company is not subject to tax on either income or capital gain. Hong Kong Under the current Hong Kong Inland Revenue Ordinance, YZT (HK) Limited, a subsidiary of the Group located in Hong Kong, is subject to 16.5% income tax on its taxable income generated from operations in Hong Kong. No income tax expense for this entity has been recognized in the consolidated financial statements as it has no assessable income for the years ended December 31, 2019, 2020 and 2021. PRC The Company’s subsidiaries and consolidated VIEs established in the PRC are subject to an income tax rate of 25% for the years presented. As stipulated by the Taxation Law of the PRC, entities founded in certain industrial cooperation zones can be subject to a reduced enterprise income tax rate of 15%. One subsidiary became a qualified enterprise eligible to enjoy the preferential income tax rate of 15% in 2019, and it was not qualified to enjoy the preferential income tax rate of 15% from 2020. One VIE in Shenzhen was a qualified enterprise eligible to enjoy the preferential income tax rate of 15% from 2019 to 2021. Moreover, a qualified software enterprise is entitled to a tax holiday consisting of a two-year exemption starting from the first profit-making year and 50% reduction for the subsequent three years. One subsidiary was a qualified software enterprise and was subject to the preferential tax rate of 12.5% from 2019 to 2021. Uncertainties exist with respect to how the current income tax law in the PRC applies to the Group’s overall operations, and more specifically, with regard to tax residency status. The EIT Law includes a provision specifying that legal entities organized outside of the PRC will be considered residents for Chinese Income Tax purposes if the place of effective management or control is within the PRC. The implementation rules to the EIT Law provide that non-resident legal entities will be considered PRC residents if substantial and overall management and control over the manufacturing and business operations, personnel, accounting and properties, occurs within the PRC. Despite the present uncertainties resulting from the limited PRC tax guidance on the issue, the Group does not believe that the legal entities organized outside of the PRC within the Group should be treated as residents for EIT law purposes. If the PRC tax authorities subsequently determine that the Company and its subsidiaries registered outside the PRC should be deemed resident enterprises, the Company and its subsidiaries registered outside the PRC will be subject to PRC income taxes, at a statutory income tax rate of 25%. According to PRC Tax Administration and Collection Law, the statute of limitations is three years if an underpayment of taxes is due to computational errors made by the taxpayer or withholding agent. The statute of limitations will be extended five years under special circumstances, which are not clearly defined (but an underpayment of tax liability exceeding RMB0.1 million is specifically listed as a special circumstance). In the case of a related party transaction, the statute of limitations is ten years. There is no Current tax expense (benefit) and deferred tax expense (benefit), which are substantially all attributable to the Company’s PRC subsidiaries, VIEs and subsidiaries of the VIEs, are as follows: Year ended Year ended December 31, December 31, Year ended December 31, 2019 2020 2021 2021 RMB RMB RMB US$ Current tax expense (benefit) 71,809,290 (157,326,719) 35,315,597 5,541,788 Deferred tax expense (benefit) (164,911,933) (142,551,916) 333,420,104 52,320,890 Total income tax expense (benefit) (93,102,643) (299,878,635) 368,735,701 57,862,678 Income (loss) before income taxes and gain (loss) from equity affiliates for different jurisdictions is shown as follows: Year ended Year ended December 31, December 31, Year ended December 31, 2019 2020 2021 2021 RMB RMB RMB US$ Cayman Islands (9,978,594) (15,160,941) (6,463,771) (1,014,307) Hong Kong entities (140,208) 911,529 948,973 148,915 PRC entities 674,034,252 (1,587,284,724) 1,196,315,182 187,727,958 Total 663,915,450 (1,601,534,136) 1,190,800,384 186,862,566 A reconciliation between income tax expense computed by applying the PRC tax rate of 25% to income (loss) before income taxes and gain (loss) from equity in affiliates and the reported amount of income tax expense (benefit) is as follows: Year ended Year ended December 31, December 31, Year ended December 31, 2019 2020 2021 2021 RMB RMB RMB US$ Expected tax at PRC rate 165,978,862 (400,383,534) 297,700,096 46,715,642 Other expenses not deductible for income tax purposes 27,243,710 26,628,325 24,325,078 3,817,136 Share based compensation expense not deductible for income tax purposes 39,101,140 20,035,035 22,108,693 3,469,336 Effect of tax holiday and preferential tax rate(1) (279,823,276) 2,160,562 (25,716,398) (4,035,464) Effect of different tax rate of subsidiary operation in other jurisdictions 2,853,547 3,712,755 1,535,280 240,919 Effect of change in tax rate — (1,547,465) — — Research and development tax deduction (12,657,389) — (14,040,027) (2,203,187) Unrecognized tax benefits for prior years' transfer pricing arrangement — 32,092,388 (22,239,451) (3,489,855) Tax on undistributed loss of VIEs (46,419,145) — — — Valuation allowance movement 4,451,281 9,155,075 99,384,200 15,595,550 Others 6,168,627 8,268,224 (14,321,770) (2,247,399) Total (93,102,643) (299,878,635) 368,735,701 57,862,678 (1) The aggregate amount and per share effect of the tax holiday and preferential tax rate are as follows: Year ended Year ended December 31, December 31, Year ended December 31, 2019 2020 2021 2021 RMB RMB RMB US$ The aggregate amount tax benefit(expense) of the tax holiday and preferential tax rate 279,823,276 (2,160,562) 25,716,398 4,035,464 The aggregate effect on basic and diluted net income per share: —Basic 0.89 (0.01) 0.08 0.01 —Diluted 0.88 (0.01) 0.08 0.01 The tax effects of temporary differences and carry forwards that give rise to the deferred tax balances at December 31, 2020 and 2021 are as follows: As of December 31, As of December 31, 2020 2021 2021 RMB RMB US$ Deferred tax assets: Long-term investments 5,325,000 5,325,000 835,609 Accrued expenses 27,280,677 36,045,445 5,656,317 Accounts receivable and contract assets 79,593,687 28,982,373 4,547,967 Guarantee liabilities 62,048,651 1,017,108 159,606 Financial guarantee derivatives 157,281,000 199,865,748 31,363,297 Loan receivable from Xiaoying Housing Loans 16,551,270 16,456,881 2,582,444 Loans receivable from Xiaoying Credit Loans and Xiaoying Revolving Loans 60,479,731 79,578,524 12,487,607 Operating loss carryforwards 214,313,889 43,644,917 6,848,840 Earnings rights associated with loan assets 496,990 191,150 29,996 Deposits to institutional cooperators 2,579,529 506,674 79,508 Investment in Consolidated Trusts 808,113 11,509,170 1,806,040 Lease liabilities 9,479,662 6,599,483 1,035,602 Total deferred tax assets 636,238,199 429,722,473 67,432,833 Valuation allowance (14,010,030) (113,394,230) (17,794,029) Total deferred tax assets, net of valuation allowance 622,228,169 316,328,243 49,638,804 Deferred tax liabilities: Property and equipment 581,854 488,150 76,601 Long-term investments 6,778,801 4,142,756 650,088 Right-of-use assets 9,214,921 6,299,837 988,583 Investment in Consolidated Partnerships — 30,528,966 4,790,661 Total deferred tax liabilities 16,575,576 41,459,709 6,505,933 On January 1, 2020, the Group adopted the ASC 326. The transition adjustment included a tax benefit of RMB5.75 million in retained earnings, which increased deferred tax assets by a corresponding amount. Movement of the valuation allowance is as follows: As of December 31, As of December 31, 2020 2021 2021 RMB RMB US$ Balance as of January 1 (4,854,955) (14,010,030) (2,198,479) Addition (9,155,075) (99,384,200) (15,595,550) Balance as of December 31 (14,010,030) (113,394,230) (17,794,029) The Company operates through its subsidiaries, VIEs and subsidiaries of the VIEs. The valuation allowance is considered on an individual entity basis. As of December 31, 2020 and 2021, the Company had operating loss carryforwards of RMB921,429,605 and RMB207,062,455 (US$32,492,618) respectively from its subsidiaries, VIEs and subsidiaries of the VIEs registered in the PRC. The net operating loss will expire in years 2022 to 2026, if not utilized. The tax benefit, net of valuation allowance, recognized during the year due to the generation of net operating losses that can be carried forward to future years amounted to RMB200,303,859 and RMB25,408,164 (US$3,987,095), respectively. The tax benefit utilised during the year ended December 31, 2020 and 2021 amounted to nil and RMB196,077,136 (US$30,768,781) respectively. During the year ended December 31, 2021, the Company recognized a deferred tax expense of RMB103,563,700 (US$16,251,404) for an increase in a valuation allowance as a result of a change in judgment about the ability of a subsidiary to utilize a beginning-of-the-year deferred tax asset in future years. The Group assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. The ultimate realization of deferred tax assets is dependent upon its ability to generate sufficient future taxable income within the carryforward 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 carryforwards, including consideration of specific known trend of profits expected to be reflected within the industry, (iii) taxable income in prior carryback years and (iv) tax-planning strategies. On the basis of this evaluation, as of December 31, 2020 and 2021 a valuation allowance of RMB14,010,030 and RMB113,394,230 (US$17,794,029) was recorded respectively to reduce the deferred tax assets to the amount that is not more likely than not to be realized. The amount of the deferred tax assets considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are reduced or increased or if objective negative evidence in the form of cumulative losses is no longer present and additional weight is given to subjective evidence such as the Group’s projections for growth. In accordance with the EIT Law, dividends, which arise from profits of foreign invested enterprises (“FIEs”) earned after January 1, 2008, are subject to a 10% withholding income tax. In addition, under tax treaty between the PRC and Hong Kong, if the foreign investor is incorporated in Hong Kong and qualifies as the beneficial owner, the applicable withholding tax rate is reduced to 5%, if the investor holds at least 25% in the FIE, or 10%, if the investor holds less than 25% in the FIE. A deferred tax liability should be recognized for the undistributed profits of PRC subsidiaries unless the Company has sufficient evidence to demonstrate that the undistributed dividends will be reinvested and the remittance of the dividends will be postponed indefinitely. Management has asserted it intends to indefinitely reinvest the undistributed earnings of the subsidiaries located in the PRC. As of December 31, 2021, the FIE of the Group had cumulative profits of RMB2,265,192,430 (US$355,458,122). The related unrecognized deferred tax liabilities were RMB226,519,243(US$35,545,812) as of December 31, 2021. A deferred tax liability should be recorded for taxable temporary differences attributable to the excess of financial reporting amounts over tax basis amounts, including those differences attributable to a more than 50% interest in a domestic subsidiary. However, recognition is not required in situations where the tax law provides a means by which the reported amount of that investment can be recovered tax-free and the enterprise expects that it will ultimately use that means. The Group accrued deferred tax liabilities on the earnings of the VIEs of nil and nil as of December 31, 2020 and 2021. Unrecognized tax benefits A roll-forward of unrecognized tax benefits is as follows: Year ended December 31, Year ended December 31, 2020 2021 2021 RMB RMB US$ Balance at beginning of the year 246,394,607 159,483,176 25,026,390 Additions for tax positions taken in prior years 32,092,388 — — Additions for tax positions taken in current year 34,252,413 19,087,010 2,995,168 Reductions for tax positions taken in prior years (153,256,232) (139,959,819) (21,962,750) Balance at end of the year 159,483,176 38,610,367 6,058,808 The accrued interest and penalties related to income taxes at December 31, 2020 and 2021 is set forth below: Year ended December 31, Year ended December 31, 2020 2021 2021 RMB RMB US$ Accrued interest and penalties 11,885,624 1,154,145 181,111 As of December 31, 2020 and 2021, the Group’s unrecognized tax benefits consisted of: 1) RMB79,593,688 and RMB28,757,431(US$4,512,668) arising from impairment losses and charge-offs of accounts receivable and contract assets; 2) RMB47,797,100 and nil related to the provision for contingent guarantee liabilities; and 3) RMB32,092,388 and RMB9,852,936(US$1,546,140) arising from prior years’ transfer pricing arrangement. As of December 31, 2020 and 2021, RMB34,252,413 and nil of the unrecognized tax benefits was presented in the consolidated financial statements as a reduction to a deferred tax asset for a net operating loss carryforward. As at December 31, 2020 and 2021, the unrecognized tax benefit balance of RMB32,092,388 and nil, if recognized upon examination settlement or statute expiration, would affect the effective tax rate. For the year ended December 31, 2020, interest expense related to unrecognized tax benefits was RMB8,079,661, which was recorded as part of the income tax expense in the consolidated financial statements. For the year ended December 31, 2021, interest income related to unrecognized tax benefits was RMB10,731,479(US$1,684,003), which was recorded as part of the income tax expense in the consolidated financial statements. |
Net income (loss) per share and
Net income (loss) per share and net income (loss) attributable to common stockholders | 12 Months Ended |
Dec. 31, 2021 | |
Net income (loss) per share and net income (loss) attributable to common stockholders | |
Net income (loss) per share and net income (loss) attributable to common stockholders | 15. Net income (loss) per share and net income (loss) attributable to common stockholders The following table details the computation of the basic and diluted net income (loss) per share: Year ended Year ended December 31, December 31, Year ended December 31, 2019 2020 2021 2021 RMB RMB RMB US$ Net income (loss) attributable to X Financial 774,276,129 (1,308,502,575) 825,407,023 129,524,374 Shares (denominator): Weighted average number of ordinary shares used in computing basic EPS 313,757,887 321,236,089 329,230,273 329,230,273 Basic net income (loss) per share 2.47 (4.07) 2.51 0.39 Diluted effects of stock options and RSUs 5,989,505 — 7,650,808 7,650,808 Weighted average number of ordinary shares used in computing diluted EPS 319,747,392 321,236,089 336,881,082 336,881,082 Diluted net income (loss) per share 2.42 (4.07) 2.45 0.38 Diluted income (loss) per share do not include the following instruments as their inclusion would have been anti-dilutive: Year ended Year ended Year ended December 31, December 31, December 31, 2019 2020 2021 Stock options 52,405,826 52,198,603 32,139,614 Restricted stocks units 3,689,400 6,285,294 27,100,812 |
Share-based compensation
Share-based compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based compensation | |
Share-based compensation | 16. Share-based compensation Share options On January 25, 2015, the Board of Directors of X Financial approved the Share Incentive Plan for the purpose of providing incentives and rewards to employees and executives who contribute to the success of the Company’s operations, and granted 13,843,645 of stock options. On June 29, 2015, May 3, 2016, October 11, 2017, April 30, 2018, October 31, 2018 and April 30, 2019, the Board of Directors of X Financial granted 630,000, 7,425,000, 16,616,000, 841,054, 475,000 and 155,000 stock options respectively to certain employees, directors and officers. The stock options shall expire 10 years from the date of grant and vest over a period from three On May 9, 2018, the Board of Directors of X Financial granted 40,000,000 share options to certain senior management. The exercise price was the offering price per share of the Group’s IPO which was US$4.75, and were eligible to vest, in whole or in part, when both the market capitalization milestone as well as the targeted adjusted net earnings were achieved subsequent to the IPO. The Company determined the service inception date to be May 9, 2018 and the grant date to be the date of the IPO. On November 10, 2021, the board of directors of X Financial decided to cancel 9,429,984 of unvested share options granted to certain senior management. The Company used the Binomial model to estimate the fair value of the options granted on the respective grant dates with assistance from independent valuation firms. The fair value per option was estimated at the date of grant using the assumptions. The weighted-average grant date fair value of the options for the years ended December 31,2019, 2020 and 2021 were RMB10.33, RMB9.99 and RMB9.58 per share respectively January 25, June 29, May 3, October 11, April 30, May 9, October 31, April 30, 2015 2015 2016 2017 2018 2018 2018 2019 RMB RMB RMB RMB RMB RMB RMB RMB Fair value of underlying ordinary shares 4.91 9.66 16.98 30.29 41.33 38.14 26.74 16.65 Exercise Price 0.27 0.27 0.27 - 10.71 0.27 - 27.02 25.42 30.27 27.93 31.96 Expected Volatility per annum (“p.a.”) 43.00 % 38.00 % 42.00 % 38.60 % 45.47 % 39.3 % 43.90 % 30.15 % Risk-Free Rate (p.a.) 1.81 % 2.33 % 1.81 % 2.35 % 2.96 % 2.94 % 3.15 % 2.97 % Exercise Multiple 2.5 2.5 2.5 2.5 2.5 5.58-38.33 2.5 NIL Dividend Yield (p.a.) NIL NIL NIL NIL NIL NIL NIL NIL Time to Maturity (Years) 10 10 10 10 10 5 10 10 The risk-free rate of interest is based on the yield curve of government bonds in the PRC as of valuation date. The expected volatility is estimated based on annualized standard deviation of daily stock price return of comparable companies for the period before valuation date and with similar span as the expected expiration term. Prior to the IPO, the fair value of the ordinary shares was through a retrospective valuation as at each grant date, which used management’s best estimate for projected cash flows as of the valuation date with the assistance of an independent third-party appraiser. Subsequent to the IPO, the fair value of ordinary shares was determined by observable market price. A summary of option activity during the year ended December 31, 2021 is presented below: Intrinsic value of Number of Exercise Price Remaining options Options RMB Contractual RMB Outstanding, as of January 1, 2021 52,198,603 0.27-31.96 4.07-8.33 19,538,815 Granted — — — — Exercised 3,490,378 0.27 — — Forfeited/Cancelled 9,959,692 0.27-30.27 — — Outstanding, as of December 31, 2021 38,748,533 0.27-31.96 3.07-7.33 20,378,161 Vested and expected to vest as of December 31, 2021 38,748,533 0.27-31.96 3.07-7.33 20,378,161 Exercisable as of December 31, 2021 6,154,008 0.27-31.96 3.07-7.33 14,821,392 The Group recognized the compensation cost for the stock options on a straight line basis. For the years ended December 31, 2019, 2020 and 2021 the Group recorded compensation expenses of RMB150,943,580, RMB70,588,710 and RMB71,849,299 (US$11,274,723) respectively for the stock options granted to the Group’s employees. The Group allocated share-based compensation expense for share option as follows: Year ended Year ended December 31, December 31, Year ended December 31, 2019 2020 2021 2021 RMB RMB RMB US$ Origination and servicing 88,671,136 35,885,086 21,345,909 3,349,639 General and administrative 60,445,030 32,794,113 48,655,490 7,635,108 Sales and marketing 1,827,414 1,909,511 1,847,900 289,976 As of December 31, 2019, 2020 and 2021, there were RMB232,061,272, RMB85,785,176 and RMB11,094,017 (US$1,718,377) respectively of total unrecognized compensation expense related to unvested stock options granted. As of December 31, 2021 that cost is expected to be recognized over a weighted-average period of 1.27 years. There were no income tax benefits recognized for the year ended December 31, 2019, 2020 and 2021 for share options. Restricted stocks unit On April 15, 2019, the Board of Directors of X Financial granted 150,000 of restricted stock units to certain directors. The restricted stock units shall vest over a period from two no three three On August 13, 2019 and November 20, 2019, the Board of Directors decided to cancel 1,500,000 and 250,000 of unvested options of certain senior managements and concurrently granted 1,500,000 and 250,000 of restricted stock units as replacement awards to the senior managements. The incremental compensation expenses of RMB360,592 (US$51,796) was equal to the excess of the fair value of the modified award immediately after the modification over the fair value of the original award immediately before the modification. A summary of restricted share units activity during the year ended December 31, 2021 is presented below: Weighted-Average Grant-Date Number of Fair Value Restricted Shares RMB Outstanding, as of January 1, 2021 7,535,294 6.49 Granted 26,657,998 4.97 Vested 1,469,751 6.19 Forfeited 307,926 5.65 Outstanding, as of December 31, 2021 32,415,615 5.18 For the year ended December 31,2019, 2020 and 2021, the Group recorded compensation expenses of RMB6,172,515, RMB9,551,428 and RMB16,585,473 (US$2,602,623) respectively for the restricted shares granted to the Group’s directors and employees. The Group allocated share-based compensation expense for restricted share as follows: Year ended Year ended December 31, December 31, Year ended December 31, 2019 2020 2021 2021 RMB RMB RMB US$ Origination and servicing 446,808 6,173,735 10,819,642 1,697,839 General and administrative 5,717,025 3,064,908 5,321,620 835,078 Sales and marketing 8,682 312,785 444,211 69,706 As of December 31,2019, 2020 and 2021, there was RMB34,246,159, RMB33,499,672 and RMB141,127,667(US$21,859,585) respectively of total unrecognized compensation expense related to unvested restricted shares granted. As of December 31, 2021, the cost is expected to be recognized over a weighted-average period of 3.66 years. There were no income tax benefits recognized for the year ended December 31, 2019, 2020 and 2021 for restricted stocks unit. |
Statutory reserves and restrict
Statutory reserves and restricted net assets | 12 Months Ended |
Dec. 31, 2021 | |
Statutory reserves and restricted net assets | |
Statutory reserves and restricted net assets | 17. Statutory reserves and restricted net assets The Company’s ability to pay dividends is primarily dependent on the Company receiving distributions of funds from its subsidiaries. Relevant PRC statutory laws and regulations permit payments of dividends by the VIEs and subsidiaries of the VIEs incorporated in PRC only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The consolidated results of operations reflected in the consolidated financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Company’s subsidiaries. Under PRC law, the Company’s subsidiaries, VIEs and the subsidiaries of the VIEs located in the PRC (collectively referred as the “PRC entities”) are required to provide for certain statutory reserves, namely a general reserve, an enterprise expansion fund and a staff welfare and bonus fund. The PRC entities are required to allocate at least 10% of their after tax profits on an individual company basis as determined under PRC accounting standards to the statutory reserve and has the right to discontinue allocations to the statutory reserve if such reserve has reached 50% of registered capital on an individual company basis. In addition, the registered capital of the PRC entities is also restricted. Amounts restricted that include paid-in capital, additional paid-in capital and statutory reserve funds, as determined pursuant to PRC GAAP, are RMB3,565,880,640 and RMB4,531,337,021 (US$711,065,659) as of December 31, 2020 and 2021 respectively |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and contingencies | |
Commitments and contingencies | 18. Commitments and contingencies Operating lease as lessee As disclosed in note 2, the Group has adopted ASC Topic 842 on 1 January, 2019. These lease payments have been recognized as “Other non-current assets” and the current and non-current portions of lease liabilities have been recorded as “Accrued expenses and other current liabilities” and “Other non-current liabilities” in the balance sheet as at December 31, 2020 and 2021, except for short-term leases. Contingencies On November 26, 2019, a putative class action complaint captioned Shivakumar Ningappa v. X Financial, et al., No. 657033/2019, was filed in the Supreme Court of the State of New York, New York County against the Group, certain of officers and directors, and the underwriters of initial public offering, asserting violations of the Securities Act of 1933 based on the Group’s September 2018 initial public offering. Two additional lawsuits were subsequently filed in the same court, containing substantially identical allegations. On February 5, 2020, all three lawsuits were consolidated under the caption “In re X Financial Securities Litigation,” No. 657033/2019, and a consolidated amended complaint (the “CAC”) was filed on February 14, 2020. On May 11, 2020, the Group filed a motion to dismiss the CAC in its entirety. On February 8, 2022, the matter was reassigned to a new judge. Following such reassignment, oral argument on Defendants’ motion to dismiss was scheduled for July 12, 2022. On December 9, 2019 a putative class action complaint captioned Xiangdong Chen v. X Financial, et al., No. 19-cv-06908-KAM-SJB, was filed in the Eastern District of New York against the Group and certain officers and directors, asserting violations of the Securities Act of 1933 based on the Group’s September 2018 initial public offering. The lead plaintiff filed an amended complaint (the “AC”) on July 13, 2020. The Group filed a motion to dismiss the AC on December 7, 2020. The court has referred the motion to the magistrate judge for a report and recommendation. On December 9, 2021, the magistrate judge issued a report and recommendation (the “R&R”) concluding that Defendants’ motion to dismiss the Federal Action should be granted in full. The magistrate judge determined that all claims under the Securities Act of 1933 were time-barred by the applicable one-year statute of limitations and should be dismissed with prejudice, while the claims under the Securities Exchange Act of 1934 failed for deficient allegations of fraudulent scienter and should be dismissed with leave to replead. The lead plaintiff in the Federal Action timely filed objections to the R&R on December 23, 2021, and Defendants submitted a response to plaintiff’s objections on January 6, 2022. On March 13, 2022, presiding District Judge issued a memorandum and order overruling plaintiffs’ objections, adopting the R&R in full, dismissing the Securities Act claims without leave to replead, and dismissing the Exchange Act claims with leave to file a further amended complaint within 30 days. On April 12, 2022, plaintiffs voluntarily dismiss the above-captioned action, with prejudice, as to all defendants. The Group is subject to periodic legal or administrative proceedings in the ordinary course of business. The Group does not have any pending legal or administrative proceeding to which the Group is a party that will have a material effect on its business or financial condition. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent events | |
Subsequent events | 19. Subsequent events In January 2022 and February 2022, the Group committed to invest US$10 million and US$3 million in two VC funds, respectively. As of the date of this annual report, the Group had made the capital contribution of US$2.5 million and US$3 million to those two funds, respectively. On March 3, 2022, the board of directors of X Financial granted 810,000 restricted stock unites to certain directors. The restricted stock unites shall vest over a period of three years. The restricted stock unites have no expiration period. |
CONDENSED FINANCIAL INFORMATION
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY | 12 Months Ended |
Dec. 31, 2021 | |
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY | |
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY | SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY BALANCE SHEETS (in Renminbi “RMB”, except share and per share data) As of December 31, As of December 31, 2020 2021 2021 RMB RMB US$ Assets: Cash and cash equivalents 6,041,648 4,771,477 748,749 Prepaid expenses and other current assets 1,862,127 371,460 58,290 Amount due from subsidiaries and VIEs 1,008,811,092 1,077,449,147 169,075,283 Investments in subsidiaries and VIEs 2,067,921,292 2,899,792,086 455,040,656 Total assets 3,084,636,159 3,982,384,170 624,922,978 Liabilities: Accrued expenses and other current liabilities 9,880,123 5,489,209 861,377 Total liabilities 9,880,123 5,489,209 861,377 Equity: Common shares 202,870 206,793 32,450 Additional paid-in capital 3,068,045,239 3,159,522,737 495,798,063 Retained earnings (accumulated deficit) (14,551,146) 810,855,877 127,240,981 Accumulated other comprehensive income 21,059,073 6,309,554 990,107 Total equity 3,074,756,036 3,976,894,961 624,061,601 Total liabilities and equity 3,084,636,159 3,982,384,170 624,922,978 CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in Renminbi “RMB”, except share and per share data) Year ended Year ended December 31, December 31, Year ended December 31, 2019 2020 2021 2021 RMB RMB RMB US$ General and administrative expenses (14,451,949) (18,494,095) (9,577,576) (1,502,931) Interest income 77,030 4,416 590 93 Equity in profit (loss) of subsidiaries and VIEs 785,350,473 (1,293,341,634) 831,870,794 130,538,680 Other income, net 3,300,575 3,328,738 3,113,215 488,531 Net income (loss) 774,276,129 (1,308,502,575) 825,407,023 129,524,373 Other comprehensive income (loss) 14,606,045 (46,041,729) (14,749,519) (2,314,521) Comprehensive income (loss) 788,882,174 (1,354,544,304) 810,657,504 127,209,852 CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY STATEMENT OF CASH FLOWS (in Renminbi “RMB”, except share and per share data) Year ended Year ended December 31, December 31, Year ended December 31, 2019 2020 2021 2021 RMB RMB RMB US$ Net cash by used in operating activities (10,004,797) (14,708,389) (8,630,238) (1,354,273) (Loan to) Received from subsidiaries and VIEs (199,179,173) 6,818,106 4,545,040 713,216 Net cash provided (used in) investing activities (199,179,173) 6,818,106 4,545,040 713,216 Contribution from shareholders 6,035,665 543,594 2,959,511 464,412 Dividend paid (103,196,981) — — — Net cash provided by (used in) financing activities (97,161,316) 543,594 2,959,511 464,412 Effect of foreign exchange rate changes 10,892,988 (663,453) (144,484) (22,672) Net decrease in cash and cash equivalents (295,452,298) (8,010,142) (1,270,171) (199,317) Cash and cash equivalents, beginning of year 309,504,088 14,051,790 6,041,648 948,066 Cash and cash equivalents, end of year 14,051,790 6,041,648 4,771,477 748,749 SCHEDULE I—NOTES TO CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY 1. 2. 3. 4. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of significant accounting policies | |
Basis of Presentation and Consolidation | (a) The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Principles of Consolidation | (b) Variable interest entity The consolidated financial statements include the financial statements of the Company, its wholly-owned subsidiaries, and consolidated VIEs. All intercompany transactions and balances have been eliminated. The Company, through its wholly-owned foreign invested subsidiary, Beijing WFOE in the PRC, entered into a series of contractual arrangements (“VIE agreements”) with Shenzhen Xiaoying, Beijing Ying Zhong Tong, Shenzhen Tangren, and Shenzhen Beier (collectively known as “the VIEs”) and their respective shareholders that enable the Company to (1) have power to direct the activities that most significantly affects the economic performance of the VIEs, and (2) receive the economic benefits of the VIEs that could be significant to the VIEs. As PRC laws and regulations prohibit and restrict foreign ownership of internet value-added businesses, the Company operates its business, primarily through the VIEs and the subsidiaries of the VIEs. Despite the lack of technical majority ownership, there exists a parent-subsidiary relationship between Beijing WFOE and the VIEs through the aforementioned agreements with the nominee shareholders of the VIEs. The following is a summary of the VIE agreements: (1) Shareholders’ Voting Rights Proxy Agreement: Pursuant to the voting rights proxy agreements signed between the VIEs’ nominee shareholders and Beijing WFOE, each nominee shareholder irrevocably appointed Beijing WFOE as its attorney-in-fact to exercise on each shareholder’s behalf and all rights that each shareholder has in respect of its equity interest in the VIEs (including but not limited to executing the exclusive right to the voting rights and the right to appoint directors and executive officers of the VIEs). The nominee shareholders cannot revoke the authorization and entrustment as long as the nominee shareholders remain a shareholder of the VIEs. For the arrangements among Beijing WFOE, each of the VIEs other than Shenzhen Beier, and their shareholders, the power of attorney will remain in force for ten years. Unless a thirty-day (2) Spouse Consent Agreement Under the spouse consent agreement, each signing spouse acknowledges that the shares of the VIEs held by the relevant shareholder of the VIEs are the personal assets of such shareholder and not jointly owned by the couple. Each signing spouse also unconditionally and irrevocably gives up his or her rights to such shares and any associated economic rights or interests to which he or she may be entitled pursuant to applicable laws and undertakes not to make any assertion of rights to such shares and the underlying assets. Each signing spouse agrees that he or she will not carry out in any circumstances any conduct that are contradictory to the contractual arrangements and this consent agreement. (3) Executive Call Option Agreement: Pursuant to the exclusive call option agreement entered into between the VIEs’ nominee shareholders and Beijing WFOE, the nominee shareholders irrevocably granted Beijing WFOE a call option to request the nominee shareholders to transfer or sell any part or all of its equity interests in the VIEs, to Beijing WFOE, or their designees. The purchase price of the equity interests in the VIEs shall be equal to the minimum price required by PRC law. Without Beijing WFOE’s prior written consent, the VIEs and its nominee shareholders shall not amend its articles of association, increase or decrease the registered capital, sell or otherwise dispose of its assets or beneficial interest, issue any additional equity or right to receive equity, provide any loans, distribute dividends in any form, etc. For the agreements among Beijing WFOE, each of the VIEs other than Shenzhen Beier, and their shareholders, these arrangements will remain effective for ten years. Unless notified by Beijing WFOE, the parties to these agreements shall extend the term of these agreements for another ten years. The agreement among Beijing WFOE, Shenzhen Beier and its shareholder does not specify its effective term. (4) Exclusive Business Cooperation Agreement: Pursuant to the exclusive business cooperation agreement entered into by Beijing WFOE and the VIEs, Beijing WFOE provides exclusive technical support and consulting services in return for fees based on 100% of the VIE’s total consolidated profit, which is adjustable at the sole discretion of Beijing WFOE. Without Beijing WFOE’s consent, the VIEs cannot procure services from any third party or enter into similar service arrangements with any other third party, except for those from Beijing WFOE. For the agreements between Beijing WFOE and each of the VIEs other than Shenzhen Beier, unless Beijing WFOE terminates these agreements in advance, these agreements will remain effective for ten years. Unless agreed by both parties in writing, this agreement shall be automatically renewed for another ten years upon its expiration. The agreement between Beijing WFOE and Shenzhen Beier will remain effective permanently, unless early terminated by Beijing WFOE in writing pursuant to this agreement or otherwise required by PRC laws. (5) Equity Pledge Agreement Each nominee shareholder of the VIEs has also entered into an equity pledge agreement with Beijing WFOE, pursuant to which each shareholder pledged his/her interest in Beijing WFOE to guarantee the performance of obligations of Beijing WFOE and its shareholders under the exclusive business cooperation agreement, exclusive call option agreement, and shareholders’ voting rights proxy agreement. If the VIEs or any of the nominee shareholder breaches its contractual obligations, Beijing WFOE will be entitled to certain rights and interests regarding the pledged equity interests including the right to dispose the pledged equity interests. None of the nominee shareholders shall, without the prior written consent of Beijing WFOE, assign or transfer to any third party, create or cause any security interest and any liability in whatsoever form to be created on, all or any part of the equity interests it holds in the VIEs. This agreement is not terminated until all of the agreements under the shareholders’ voting rights proxy agreement, exclusive call option agreement and the exclusive business cooperation agreement are fully performed. The irrevocable power of attorney has conveyed all shareholder rights held by the VIEs’ shareholders to Beijing WFOE or any person designated by Beijing WFOE, including the right to appoint executive directors of the VIEs to conduct day to day management of the VIEs’ businesses, and to approve significant transactions of the VIEs. In addition, the exclusive call option agreement provides Beijing WFOE with a substantive kick-out right of the VIEs shareholders through an exclusive option to purchase all or any part of the shareholders’ equity interest in the VIEs. In addition, through the exclusive business cooperation agreement, Beijing WFOE demonstrates its ability and intention to continue to exercise the ability to absorb substantially all of the profits and all of the expected losses of the VIEs. The equity pledge agreements further secure the obligations of the shareholders of the VIEs under the above agreements. Based on these contractual arrangements, the Company consolidates the VIEs in accordance with SEC Regulation S-X Rule 3A-02 and Accounting Standards Codification (“ASC”) topic 810 (“ASC 810”), Consolidation. The Company believes that the contractual arrangements with the VIEs are in compliance with PRC law and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government could: ● revoke the Group’s and operating licenses; ● levy fines on the Group; ● confiscate any of the Group’s income that they deem to be obtained through illegal operations; ● shut down the Group’s services; ● discontinue or restrict the Group’s operations in China; ● impose conditions or requirements with which the Group may not be able to comply; ● require the Group to change corporate structure and contractual arrangements; ● restrict or prohibit the use of the proceeds from overseas offerings to finance the Group’s PRC consolidated VIEs’ business and operations; and ● take other regulatory or enforcement actions that could be harmful to the Group’s business. Consolidated Trusts As part of the Group’s efforts to develop new product offerings for investors and institutional funding partners, the Group established a business relationship with certain trusts which were administered by third-party trust companies. The trusts were set up to invest solely in the loans facilitated by the Group on its platform to provide returns to the beneficiaries of the trusts through interest payments made by the borrowers. Both direct model and intermediary model are adopted for these trusts. Under direct model, loans are originated from trusts to borrowers while under intermediary model, the Group typically provides credit to the borrowers through an intermediary first and then transfers the loans to the trusts, which issue beneficial interests to the investors and institutional funding partners. The Group determines to consolidate these trusts as the Group is the primary beneficiary, due to the following reasons: 1) the Group has the power to direct the operating activities of the trusts; 2) the Group absorbs or enjoys the potential residual losses or returns of these trusts. Under intermediary model, the transfer of loans to the Consolidated Trusts are not eligible for sale accounting because the trust is consolidated and the loan transfer is considered an intercompany transaction. The Group further elected to apply fair value option to the loans (at the date of origination) and liabilities to investors and institutional funding partners to emphasize the relevancy of the accounting information of its consolidated financial statements. That is, the loans are continued to be recorded on the Group’s consolidated balance sheets as loans held for investment under “Loans at fair value” and the proceeds received from the investors and institutional funding partners are recorded as trust liabilities under “Payable to investors at fair value”. During 2020 and 2021, certain of the subsidiaries of the Group funded RMB64,375,517 and RMB74,051,199 to loan products facilitated on the Group’s platform through third-party trust companies. The trusts are consolidated by the Group and the underlying loans are recorded on the Group’s consolidated balance sheets as loans held for investment under “Loans at fair value”. Consolidated Partnerships In 2021, the Group further developed a new business model with certain trust partners. The Group and certain trusts jointly established several limited partnership enterprises, or LPs, to invest solely in the loans facilitated by the Group on its platform to provide returns to partners of the LPs through interest payments made by the borrowers. Intermediary model is adopted for the Consolidated Partnerships, the Group typically provides credit to the borrowers through an intermediary first and then transfers the loans to the LPs. The Group determines to consolidate these LPs as the Group is the primary beneficiary, due to the following reasons: 1) the Group has the power to direct the operating activities of the LPs; 2) the Group absorbs or enjoys the potential residual losses or returns of these LPs. The transfer of loans to the Consolidated Partnerships are not eligible for sale accounting because the LP is consolidated and the loan transfer is considered an intercompany transaction. The Group further apply amortized cost to the loans and liabilities to trust partners in its consolidated financial statements. That is, the loans are recorded on the Group’s consolidated balance sheets under “Loans receivables from Xiaoying Credit Loans and Xiaoying Revolving Loans” and the proceeds received from the trust partners are recorded as LP liabilities under “Payable to institutional funding partners”. During 2021,one of the subsidiaries of the Group funded RMB141,326,511 to loan products facilitated on the Group’s platform through the limited partnership enterprises. The LPs are consolidated by the Group and the underlying loans are recorded on the Group’s consolidated balance sheets under “Loans at receivables from Xiaoying Credit Loans and Xiaoying Revolving Loans”. The following financial statement amounts and balances of the Consolidated Trusts and Partnerships are included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances: As of December 31, As of December 31, 2020 2021 2021 RMB RMB US$ Assets: Restricted cash 476,854,616 212,812,257 33,394,887 Accounts receivable and contract assets, net — 8,335,518 1,308,025 Loans receivable from Xiaoying Credit Loans and Xiaoying Revolving loans, net — 1,622,699,799 254,637,008 Loans at fair value 1,585,731,888 389,679,352 61,149,194 Prepaid expenses and other current assets 11,359,212 7,889,836 1,238,087 Total assets 2,073,945,716 2,241,416,762 351,727,201 Liabilities: Payable to investors at fair value 1,914,183,650 462,714,400 72,609,987 Payable to institutional funding partners — 1,466,068,260 230,058,102 Other tax payable 3,357,513 5,631,031 883,632 Accrued expenses and other current liabilities 74,596,014 3,259,339 511,460 Total liabilities 1,992,137,177 1,937,673,030 304,063,181 Year ended Year ended December 31, December 31, Year ended December 31, 2019 2020 2021 2021 RMB RMB RMB US$ Net revenue 340,613,941 331,300,043 285,859,862 44,857,650 Net income (loss) 227,051,351 (19,795,471) 105,610,429 16,572,581 Year ended Year ended December 31, December 31, Year ended December 31, 2019 2020 2021 2021 RMB RMB RMB US$ Net cash provided by (used in) operating activities 123,521,027 (20,179,042) 155,272,678 24,365,672 Net cash provided by (used in) investing activities (2,684,753,233) 1,139,220,723 (433,914,047) (68,090,582) Net cash provided by (used in) financing activities 3,006,349,475 (1,092,165,825) 14,599,010 2,290,904 The following financial statement amounts and balances of the VIEs and Consolidated Trusts and Partnerships were included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances: As of December 31, As of December 31, 2020 2021 2021 RMB RMB US$ Assets: Cash and cash equivalents 170,390,218 212,766,581 33,387,719 Restricted cash 484,877,600 220,812,257 34,650,262 Accounts receivable and contract assets, net — 67,917,846 10,657,792 Financial investments 6,000,000 — — Loans receivable from Xiaoying Credit Loans and Xiaoying Revolving Loans, net — 2,458,221,481 385,748,593 Loan receivable from Xiaoying Housing Loans, net 47,490,437 12,083,317 1,896,136 Loans at fair value 1,585,731,888 389,679,352 61,149,194 Deposits to institutional cooperators, net 565,372 2,702,000 424,003 Prepaid expenses and other current assets, net 66,235,998 104,088,188 16,333,708 Financial guarantee derivative 297,928,066 11,816,799 1,854,314 Deferred tax assets, net 287,606,896 128,554,651 20,173,030 Long-term investments 292,115,200 556,571,016 87,338,138 Property and equipment, net 6,220,398 2,673,157 419,477 Intangible assets, net 30,431,482 29,554,089 4,637,681 Other non-current assets 6,914,006 4,850,671 761,176 Total assets 3,282,507,561 4,202,291,405 659,431,223 Liabilities: Payable to investors at fair value 1,914,183,650 462,714,400 72,609,987 Payable to institutional funding partners — 1,466,068,260 230,058,102 Financial guarantee derivative 130,442,090 565,953,269 88,810,418 Short-term bank borrowings 18,700,000 — — Accrued payroll and welfare 10,017,308 8,959,248 1,405,902 Other tax payable 37,103,700 100,333,129 15,744,457 Income tax payable 48,349,593 8,189,833 1,285,164 Accrued expenses and other current liabilities 230,564,165 85,485,440 13,414,531 Other non-current liabilities 1,739,541 — — Total liabilities 2,391,100,047 2,697,703,579 423,328,561 Year ended Year ended December 31, December 31, Year ended December 31, 2019 2020 2021 2021 RMB RMB RMB US$ Net revenue 2,650,594,409 754,755,127 1,388,255,858 217,847,638 Net income (loss) (14,609,225) (180,518,614) 695,892,749 109,200,756 Year ended Year ended December 31, December 31, Year ended December 31, 2019 2020 2021 2021 RMB RMB RMB US$ Net cash provided by (used in) operating activities 442,501,953 (190,951,068) 485,090,529 76,121,289 Net cash provided by (used in) investing activities (2,706,673,269) 1,133,193,197 (702,678,519) (110,265,593) Net cash provided by (used in) financing activities 2,808,349,475 (1,073,465,825) (4,100,990) (643,535) The VIEs and Consolidated Trusts and Partnerships contributed 86%, 34% and 38% of the Group’s consolidated revenue for the years ended December 31, 2019, 2020 and 2021 respectively. As of December 31, 2020 and 2021, the VIEs and Consolidated Trusts and Partnerships accounted for an aggregate of 44% and 57% of the consolidated total assets, and 54% and 80% of the consolidated total liabilities. There are no terms in any arrangements, considering both explicit arrangements and implicit variable interests that require the Company or its subsidiaries to provide financial support to the VIEs and Consolidated Trusts and Partnerships. However, if the VIEs were ever to need financial support, the Group may, at its option and subject to statutory limits and restrictions, provide financial support to its VIEs through loans to the shareholders of the VIEs or entrustment loans to the VIEs. The Group believes that there are no assets held in the VIEs that can be used only to settle obligations of the VIEs, except for registered capital and the PRC statutory reserves. As the VIEs are incorporated as limited liability companies under the PRC Company Law, creditors of the VIEs do not have recourse to the general credit of the Company for any of the liabilities of the VIEs. Relevant PRC laws and regulations restrict the VIEs from transferring a portion of their net assets, equivalent to the balance of its statutory reserve and its share capital, to the Company in the form of loans and advances or cash dividends. Please refer to Note 17 for disclosure of restricted net assets. |
Use of Estimates | (c) The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ materially from such estimates. Significant accounting estimates reflected in the Group’s consolidated financial statements include share-based compensation, allowance for credit losses of accounts receivables and contract assets, deposits to institutional cooperators, prepaid expenses and other current assets, loans receivables from Xiaoying Housing Loans and loans receivables from Xiaoying Credit Loans and Xiaoying Revolving Loans, allocation of considerations under revenue arrangements with various performance obligations, variable considerations of revenue recognition, valuation allowance for deferred tax assets, unrecognized tax benefits, the indefinite reinvestment assertion, fair value of guarantee liabilities and financial guarantee derivatives, loans at fair value and payable to investors at fair value, impairment of long-term investments and financial investments. |
Revenue recognition | (d) The Group provides services as an online marketplace connecting borrowers and investors or institutional funding partners primarily through the use of two business models. The major products offered by the Group include Xiaoying Credit Loan and Xiaoying Revolving Loan. Xiaoying Credit Loan mainly consists of Xiaoying Card Loan and Xiaoying Preferred Loan products. The major product under the category Xiaoying Revolving Loan is Yaoqianhua which was previously named as Xiaoying Wallet. The Group ceased facilitation of Xiaoying Preferred Loan in 2019, and ceased facilitation of Xiaoying Revolving Loan in 2020.Revenue is the transaction price the Group expects to be entitled to in exchange for the promised services in a contract in the ordinary course of the Group’s activities and is recorded net of value-added tax (“VAT”). The services to be accounted for include loan facilitation service, post-origination service (e.g. cash processing and collection services) and guarantee service. The first business model (“Direct Model”) involves the Group matching borrowers with investors or institutional funding partners who directly funds the credit drawdowns to the borrowers. The Group has determined that it is not the legal lender or borrower in the loan origination and repayment process, but acting as an intermediary to bring the lender and the borrower together. Therefore, the Group does not record the loans receivable or payable arising from the loans facilitated between the investors or institutional funding partners and borrowers on its platform. The second business model (“Intermediary Model”) involves the Group initially providing credit to borrowers using its own funds through an intermediary and subsequently selling the loans including all of the creditor rights in the loans to external investors or institutional funding partners on its platform within a short period of time. Loans facilitated by the Group typically have a term of less than 1 year. For each loan facilitated either through the Direct Model or Intermediary Model, the Group charges a service fee from the borrower indirectly through one of the Group’s VIEs, Shenzhen Tangren or external financing guarantee company or from institutional funding partner directly. No application fee is charged to borrowers or investors or institutional funding partners. For the loans the Group is entitled to the full service fee regardless of whether the borrowers choose to early repay or not, the Group has the unconditional right to the consideration. For the loans facilitated with borrowers who have the option of early repayment and upon termination they do not have the obligation to pay the remaining monthly service fees, the Group’s right to consideration for the service fees of facilitation service is conditional on whether or not the borrowers repay in advance. At contract inception, the Group determines that the collection of service fees is probable based on historical experiences as well as the credit due diligence performed on each borrower prior to loan origination. In order to be more competitive by providing a certain level of assurance to the investors or institutional funding partners, for certain loans facilitated by the Group’s platform, either borrowers or institutional funding partners are required to directly sign a credit insurance agreement with ZhongAn Online P&C Insurance Co., Ltd (“ZhongAn”) to protect investors or institutional funding partners against the risk of borrower default. In 2016 and January to September 2017, substantially all of the loans facilitated by the Group’s platform are insured by ZhongAn. The Group did not have direct contractual obligation to the investors for defaulted principal and interest during that period. The Group entered into a strategic cooperation agreement with ZhongAn pursuant to which ZhongAn provided insurance to the investors for the loans facilitated by the Group and reimbursed the loan principal and interest to the investor upon borrower’s default. During the aforementioned period, in order to maintain stable business relationship with ZhongAn, although not contractually obligated by the agreement with ZhongAn, the Group at its sole discretion paid ZhongAn for substantially all the defaulted loan principal and interest but have not been subsequently collected. The Group also provides direct guarantee to investors on certain loan products via its consolidated entities. The Group is compensated for this reimbursement from the contractual service fees collected from the borrowers. Given that the Group is at its sole discretion responsible for the uncollected claims paid, the Group effectively took on substantially all of the losses incurred by the investors due to borrowers’ default, the Group deemed the guarantee as a guarantee service to the investors and recognizes a stand ready obligation for its guarantee exposure in accordance with ASC Topic 460, Guarantees. From September 2017, the Group revised the arrangement with ZhongAn on substantially all of the Xiaoying Credit Loans Starting from 2020, the Group enters into a series of arrangements with various external financing guarantee companies, which is similar to the revised arrangement with ZhongAn. For certain Xiaoying Card Loans newly facilitated since September 2017 and certain Xiaoying Revolving Loans that are repaid in installments by borrowers, borrowers are required to enter into a guarantee agreement with the Group and an insurance/guarantee agreement with ZhongAn/financing guarantee companies, to pay the guarantee fee and insurance fee to the respective party at a pre-agreed rate. For certain loans that were newly facilitated in 2020, borrowers are required to enter into a guarantee agreement with the Group to pay the guarantee fee at a pre-agreed rate while at the same time, it is the institutional investors who enter into an insurance agreement with ZhongAn and the Group voluntarily pay the insurance fee to ZhongAn. The obligation/ credit risk/ exposure of the Group and Zhongan to compensate the defaulted loans has no change. Upon borrower’s default, ZhongAn/financing guarantee companies reimburse the full loan principal and interest to the investors or institutional funding partner first, and has the right to recourse to both the borrower and the Group, and the Group’s contractual obligation is at any time it limited to a cap (the “Cap”) which is the lower of (1) total amount of guarantee fees contractually required to be collected from the borrowers for such loans facilitated during the current period on an aggregated basis, and (2) a certain percentage of the total principal of the loans facilitated stated in an annualized manner, as pre-agreed with ZhongAn/financing guarantee companies (the “Rate”). The contractual guarantee fees in (1) is not influenced by default or early repayment of borrowers. The Group has no obligation or intention to compensate ZhongAn/financing guarantee companies for any losses in excess of the contractual obligation. The Rate will be negotiated prospectively at each quarter between the two parties based on the expected default rate. The actual loss in excess of the Cap is absorbed by ZhongAn/financing guarantee companies. ZhongAn/financing guarantee companies ultimately bear substantially all of the credit risk. The Group’s exposure in this arrangement is limited to the default and prepayment risk in relation to the guarantee fee when the Group cannot collect the guarantee fee under the agreement with the borrower on an individual basis but is still obligated to compensate ZhongAn/financing guarantee companies up to the Cap on a pool basis. The Group evaluated the guarantee arrangement pursuant to ASC Topic 815, and concluded that the arrangement meets the definition of a derivative and that it is not eligible for the guarantee scope exception. Therefore, the guarantee is recognized as a derivative liability/asset at fair value and is not accounted for pursuant to ASC Topic 460 or 450. See accounting policy for financial guarantee derivative. For other Xiaoying Preferred Loan products newly facilitated from September 2017, the borrowers are required to enter into an insurance agreement with ZhongAn only at a rate set by ZhongAn. No separate guarantee agreement is signed by the borrower with the Group and no additional guarantee fee is charged from the borrower. Upon borrower’s default, ZhongAn reimburses the full loan principal and interest to the investor or institutional funding partner. The Group collects the defaulted amount from borrowers on behalf of ZhongAn but has no obligation and it is no longer the Group’s intention to compensate ZhongAn for the defaulted loan principal and interest not subsequently collected in the future. ZhongAn is fully liable for all the borrower’s credit risk associated with the defaulted principal and interest of the loan. Therefore, for these loans, the Group provides loan facilitation and post-origination services but no longer provides guarantee service. The Group does not record guarantee liabilities associated with these loans or corresponding account receivables from guarantee services. Under the Direct Model, the total transaction price is directly allocated to the facilitation service and post-origination service. Under the Intermediary—non-trust model, upon transfer of the loan to third party investors, the Group recognize the difference between (1) the proceeds received from the investors and accounts receivable and (2) the carrying value of the loan as a gain of sale, which effectively represents the service fees earned from facilitation of the loans under Intermediary Model, as the “Loan facilitation service—Intermediary Model” in the consolidated statements of comprehensive income (loss). The Group ceased facilitation of Xiaoying Preferred Loan in October 2019. Direct Model The Group has early adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606) and all subsequent ASUs that modified ASC 606 on January 1, 2017 and has elected to apply it retrospectively for the year ended December 31, 2016. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, the Group applies the following steps: ● Step 1: Identify the contract (s) with a customer ● Step 2: Identify the performance obligations in the contract ● Step 3: Determine the transaction price ● Step 4: Allocate the transaction price to the performance obligations in the contract ● Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation The Group determines its customers to be both the borrowers and the investors or institutional funding partners. The Group considers the loan facilitation service, guarantee service and post-origination service as three separate services of which the guarantee service is accounted for in accordance with ASC Topic 460, Guarantees. While the post-origination service is within the scope of ASC Topic 860, the ASC Topic 606 revenue recognition model is applied due to the lack of definitive guidance in ASC Topic 860. The loan facilitation service and post-origination service are two separate performance obligations under ASC 606, as these two deliverables are distinct in that customers can benefit from each service on its own and the Group’s promises to deliver the services are separately identifiable from each other in the contract. The Group determines the total transaction price to be the service fees chargeable from the borrowers indirectly through one of the VIEs, Shenzhen Tangren or external financing guarantee companies or from certain institutional funding partners directly, including the guarantee fees charged by the Group under the separate guarantee agreement with the borrowers for certain type of Xiaoying Card Loans that are newly facilitated since September 2017. The Group’s transaction price includes variable consideration in the form of default risk of the borrowers for the service fees collected from certain institutional funding partners or through external financing guarantee companies and prepayment risk of the borrowers. The Group reflects, in the transaction price, the default risk and the prepayment risk. The Group estimates variable consideration for these contracts using the expected value approach on the basis of historical information and current trends of the default and prepayment percentage of the borrowers. The transaction price is allocated amongst the guarantee service, if any, and two performance obligations. The Group first allocates the transaction price to the guarantee liabilities or financial guarantee, if any, that is recognized in accordance with either (1) ASC Topic 460, Guarantees which requires the guarantee to be measured initially at fair value based on the stand-ready obligation or (2) ASC Topic 815, which requires the guarantee to be measured initially and subsequently at fair value. Then the remaining considerations are allocated to the loan facilitation services and post-origination services using their relative standalone selling prices consistent with the guidance in ASC 606. For certain loans facilitated since September 2017, the total transaction price is allocated to facilitation service and post-origination service only. The Group does not have observable standalone selling price information for the loan facilitation services or post-origination services because it does not provide loan facilitation services or post-origination services on a standalone basis. There is no direct observable standalone selling price for similar services in the market that is reasonably available to the Group. As a result, the estimation of standalone selling price involves significant judgment. The Group uses an expected cost plus margin approach to estimate the standalone selling prices of loan facilitation services and post origination services as the basis of revenue allocation. In estimating its standalone selling price for the loan facilitation services and post-origination services, the Group considers the cost incurred to deliver such services, profit margin for similar arrangements, customer demand, effect of competitors on the Group’s services, and other market factors. For each type of service, the Group recognizes revenue when (or as) the entity satisfies the service/performance obligation by transferring a promised good or service (that is, an asset) to a customer. Revenues from loan facilitation are recognized at the time a loan is originated between the borrower and the investor or institutional funding partner and the principal loan balance is transferred to the borrower, at which time the facilitation service is considered completed. Revenues from post-origination services are recognized on a straight-line basis over the term of the underlying loans as the services are provided. Revenues from guarantee services are recognized at the expiry of the guarantee term when there had been no defaults. Except for certain loan products offered since September 2017, the collection of service fees is not conditional on the provision of subsequent post-origination or guarantee services. Intermediary Model Starting from 2018, the Group cooperate with several microcredit companies who use their own funds to provide credit to borrowers first; the Group provide facilitation and post-origination services for these loans and receive service fee from borrowers. These microcredit companies transfer their rights as creditors shortly to SPVs controlled by the Group at the price of the carrying amount of the outstanding loan principal balance and accumulated accrued interest not paid by the borrowers as of the day on which the creditor’s rights are legally transferred to SPVs. The SPVs usually further transfer their creditor’s rights to third party investors or institutional funding partners in a short period at the price of the carrying amount of the outstanding loan principal balance and the accumulated accrued interest not paid by the borrowers as of the day on which the creditor’s rights are legally transferred to investors or institutional funding partners. The Group accounts the relevant interest and service fees received from the borrowers as the financing income and the fee charged by the microcredit companies which is proportionate to the loans facilitated as the origination and servicing cost in its consolidated financial statements. Under the Intermediary business model, the Group provides the funds that are loaned to borrowers and agrees to take predominantly all the risk arising from potential breaches of agreement by the borrowers receiving financing. The Group provides financing to borrowers on their platform and the loans are initially recorded on the consolidated balance sheet as loans held for sale or loans receivable from Xiaoying credit loans and Xiaoying revolving loans. These loans carry the same insurance/ guarantee agreement with external financial institutional co-operators as loans facilitated under the Direct Model, which is attached to the loan and transfers along with the loan. The Group also charges service fees in the same manner as loans facilitated under the Direct Model. Intermediary Model—Non-Trust Model The transfer of loans (including the creditor rights) to external investors or institutional funding partners not involving trust structure is accounted for as a true sale under ASC 860 (see accounting policy under “Sales and Transfers of Financial Instruments”). Upon sale, the Group records a guarantee liability in accordance with ASC 460 in relation to the on-going guarantee services to be provided to the investors or institutional funding partners, consistent with the loans facilitated under the Direct Model. The Group continues to provide post-origination services to the loans subsequent to their sale in the same manner as the Group services the loans facilitated under the Direct Model. No additional service fee is charged. Similar to the loans facilitated under the Direct Model, the Group charges and collects service fees from the borrowers or institutional funding partners in relation to the transferred loans on a monthly basis. The difference between (1) the proceeds received from the investors or institutional funding partners and accounts receivable and contract assets (see accounting policy on “Accounts receivable and contract assets and allowance for uncollectible accounts receivable and contract assets”) and (2) the sum of the carrying value of the loans and the fair value of the guarantee liability is recognized as a gain of sale, which effectively represents the service fees earned from facilitation of the loans under Intermediary Model, as the “Loan facilitation service—Intermediary Model” in the consolidated statements of comprehensive income (loss). For certain loans facilitated since September 2017, given the Group no longer provides guarantee services and the Group does not record any guarantee liabilities associated with those loans or related account receivable from guarantee services, the gain of sale is the difference between (1) the proceeds received from the investors or institutional funding partners and accounts receivable and contract assets and (2) the carrying value of the loan. The subsequent accounting for post-origination service and guarantee services is consistent with that for loans facilitated under the Direct Model. Intermediary Model—Trust Model The transfer of loans to institutional funding partners under the Intermediary Model often involves transferring the loans to a trust formed and operated by unrelated third party trust companies. The Group consolidates such trusts under the VIE model (see accounting policy on “Consolidated Trusts”). The Group also elects to apply fair value option to these loans at the date of origination. Loans transferred to Consolidated Trusts do not qualify for sales accounting as the transfer is to a consolidated subsidiary. The loans are recorded as “Loans at fair value” in the consolidated balance sheets. The Group recognizes as revenue under “financing income” the service fees and interests charged to the borrowers over the lifetime of the loans using effective interest method. Intermediary Model—Partnership Model The transfer of loans to institutional funding partners under the Intermediary Model involves transferring the loans to a limited partnership enterprise, or LP, formed and operated by unrelated third-party trust companies and the Group. The Group consolidates such partnerships under the VIE model (see accounting policy on “Consolidated Partnerships”). The Group also elects to measure these loans at amortized cost at the time of origination. Loans transferred to Consolidated Partnerships do not qualify for sales accounting as the transfer is to a consolidated subsidiary. The loans are recorded as “Loans receivables from Xiaoying Credit Loans and Xiaoying Revolving Loans” in the consolidated balance sheets. The Group recognizes as revenue under “financing income” the service fees and interests charged to the borrowers over the lifetime of the loans using effective interest method. The online Intermediary Model ceased in April 2017 and the offline Intermediary Model with funding from banking financial institution partners ceased in February 2018 to comply with the promulgated regulatory requirements. The Group continues the operations through the offline Intermediary Model with funding from other partners to the extent permitted under applicable laws and regulations. Disaggregation of revenues All of the Group’s revenue for the years ended December 31, 2019, 2020 and 2021 were generated from the PRC. As the remaining duration of the Group’s performance obligations of the contracts is one year or less, the Group elects to apply the exemption of disclosing the aggregate amount of transaction price allocated to the performance obligations at the end of 31 December, 2019, 2020 and 2021, The following table illustrates the disaggregation of revenue by product the Group offered in 2019, 2020 and 2021: Loan Loan facilitation facilitation service- service-Direct Intermediary Post-origination Financing Other Model Model service income revenue Total 2019 (RMB) (RMB) (RMB) (RMB) (RMB) (RMB) Major products Xiaoying Credit Loan 1,834,813,952 223,668,549 314,767,947 396,039,771 71,024,093 2,840,314,312 Xiaoying Revolving Loan 63,667,334 13,174,930 8,163,362 12,361,021 9,069,408 106,436,055 Xiaoying Housing Loan 578,598 88,225 132,382 — 264,644 1,063,849 Internet Channel(1) 86,733,843 1,703,032 7,568,757 — 1,890,227 97,895,859 Other loan products 209,616 232,318 62,764 — 10,403 515,101 Other service(2) — — — — 41,824,819 41,824,819 Total 1,986,003,343 238,867,054 330,695,212 408,400,792 124,083,594 3,088,049,995 Loan Loan facilitation facilitation service- service-Direct Intermediary Post-origination Financing Other Model Model service income revenue Total 2020 (RMB) (RMB) (RMB) (RMB) (RMB) (RMB) Major products Xiaoying Credit Loan 1,190,088,566 19,755,482 176,229,908 538,869,175 39,537,661 1,964,480,792 Xiaoying Revolving Loan 76,444,207 21,571,881 26,000,468 73,991,011 597,911 198,605,478 Xiaoying Housing Loan — — — — 172,960 172,960 Internet Channel(1) — 45,449 1,611,453 3,291 11 1,660,204 Other loan products — — — — 226,720 226,720 Other service(2) — — — — 27,811,304 27,811,304 Total 1,266,532,773 41,372,812 203,841,829 612,863,477 68,346,567 2,192,957,458 Loan Loan facilitation facilitation service- service-Direct Intermediary Post-origination Financing Other Model Model service income revenue Total 2021 (RMB) (RMB) (RMB) (RMB) (RMB) (RMB) Major products Xiaoying Credit Loan 2,545,431,636 161,313 312,373,187 644,009,587 31,877,690 3,533,853,413 Xiaoying Revolving Loan — — 3,216,931 27,891,908 537,311 31,646,150 Other loan products — — — — 130,768 130,768 Other service(2) — — — — 60,834,774 60,834,774 Total 2,545,431,636 161,313 315,590,118 671,901,495 93,380,543 3,626,465,105 Loan Loan facilitation facilitation service- service-Direct Intermediary Post-origination Financing Other Model Model service income revenue Total 2021 (US$) (US$) (US$) (US$) (US$) (US$) Major products Xiaoying Credit Loan 399,433,769 25,314 49,018,169 101,059,157 5,002,305 554,538,714 Xiaoying Revolving Loan — — 504,807 4,376,849 84,316 4,965,972 Other loan products — — — — 20,520 20,520 Other services(2) — — — — 9,546,304 9,546,304 Total 399,433,769 25,314 49,522,976 105,436,006 14,653,445 569,071,510 (1) (2) Contract balances The Group did not enter into contracts with customers that were greater than one year for substantially all products for the years ended December 31, 2019, 2020 and 2021. The Group historically did not record any contract liabilities for both 2020 and 2021 and did not record any contract asset prior to September 2017. For the loans the Group is entitled to the full service fee regardless of whether the borrowers choose to early repay or not, the Group has the unconditional right to the consideration and an accounts receivable is recorded. For the loans facilitated with borrowers who have the option of early repayment and upon termination they do not have the obligation to pay the remaining monthly service fees, the Group’s right to consideration for the service fees of facilitation service is conditional on whether or not the borrowers repay in advance. In these instances, the Group records a corresponding contract asset when recognizing revenue from loan facilitation service. The contract asset will not be reclassified to a receivable given that the right to invoice and the payment due date is the same date. Revenue for these loan products are recognized when the collection of consideration becomes probable. Remaining unsatisfied performance obligations as of December 31, 2019, 2020 and 2021 pertained to post-origination service in the amount of RMB106,147,877 , RMB61,415,170 , and RMB113,840,873 (US$17,864,117) respectively. All remaining unsatisfied performance obligations would be recognized as revenue in the subsequent year. The revenues recognized in 2019, 2020 and 2021 from performance obligations satisfied (or partially satisfied) in prior periods are RMB2,240,572, nil and nil, respectively. Incentives to investors To expand its market presence, the Group provides incentives to investors in a variety of forms that either reduces the amount of investment required to purchase financial products or entitles them to receive higher interest rates in the products they purchase. During the relevant incentive program period, the Group sets certain thresholds for the investor to qualify to enjoy the incentive. Such incentives are accounted for as a reduction of revenue in accordance with ASC 606. Financing income Financing income consists primarily the financing fees the Group charges for the loans facilitated through the Consolidated Trusts and Consolidated Partnerships, including interest income and service fees generated from providing loan facilitation, guarantee and post-origination services to the investors and institutional funding partners of the Consolidated Trusts and Consolidated Partnerships, and are recorded as revenue over the life of the underlying financing using the effective interest method. Financing income also includes financing fees, including interest income and service fee, from loans held for sale and loans receivables from Xiaoying Credit Loans and Xiaoying Revolving Loans that have not yet been transferred to external investors or institutional funding partners or have been transferred but such transaction does not qualify for sale accounting under the Intermediary Model. For the years ended December 31, 2021, financing income also includes interest income generated from providing loans by the Group’s own fund from microcredit business, and are recorded as revenue over the life of the underlying financing using the effective interest method. Other revenue Other revenue primarily includes penalty fees for loan prepayment and late payment, referral service fees for introducing borrowers to other platforms, technology service fees received for providing assistant technology development services and commission fees from Xiaoying Online Mall. The penalty fees, which are fees paid to the Group, will be received as a certain percentage of past due amounts in the case of late payments or a certain percentage of interest over the prepaid principal loan amount in the case of prepayment. Penalty fees are contingency-based variable considerations and constrained by the occurrence of delinquency or prepayment. They are recognized when the uncertainty associated with the variability is resolved, that is, when the underlying event occurs. The referral service fees for introducing borrowers to other platforms are recognized when the obligation is fulfilled and is confirmed by the other platforms. The technology service fees are recognized when the assistant technology development services to third parties provided. Xiaoying Online Mall launched in March 2019 is a product that provides loan installments to the Group’s individual customers enabling them to purchase goods online. The loan installment revenue is recognized as loan facilitation revenue and post origination revenue. The gross amount of product sales and related costs or the net amount earned is recorded as commissions. The Group was evaluated as an agent and its obligation is to facilitate third parties in fulfilling their performance obligation for specified goods or services, revenues should be recognized in the net amount for the amount of commission which the Group earns in exchange for arranging for the specified goods or services to be provided by other parties. Revenue is recorded net of value-added taxes. |
Sales and transfers of financial instruments | (e) Sales and transfers of financial instruments are accounted under authoritative guidance for the transfers and servicing of financial assets and extinguishment of liabilities. Specifically, a transfer of a financial asset, a group of financial assets, or a participating interest in a financial asset is accounted for as a sale only if all the following conditions are met: 1. 2. 3. a. b. c. Under the Intermediary Model, the Group, through its Intermediary, facilitates credits to borrowers and subsequently transfers the loans (including the creditor rights) to third party investors or institutional funding partners at face value within a short period of time. When the loan (including the creditor rights) is transferred, the transferee becomes the direct counterparty to the borrower and the legal record holder of the loan upon transfer. The transfer is accounted for as a sale, when (1) the transferred loans are considered legally isolated from the assets of the Group and its creditors even in the bankruptcies under the PRC laws and regulations, (2) the investors or institutional funding partners (transferees) can freely pledge or exchange the transferred loans, and (3) the Group does not maintain effective control over the transferred loans. The cash flows related to the origination and transfer of these loans are presented as “Origination of loans held for sale”and “Sale of loans held for sale”, respectively, within operating cash flows in the consolidated statement of cash flows. When a transfer does not qualify for sale accounting, e.g. when the Group sells loans with recourse to the Group, the transferred financial asset remains in the statement of financial position and a financial liability is recognized for any consideration received. For Xiaoying Housing Loans facilitated through the Intermediary Model, borrowers are required to pledge properties to one of the Group’s consolidated VIE entities (other than the Intermediary or the SPV conducting the facilitation and transfer of the loan) as collateral for the guarantee that the Group is providing to ZhongAn against borrower’s default. It is a separate arrangement with different counterparties from the loan provided by the Group. While the loan (including creditor’s rights) is transferred to third party investors or institutional funding partners, the lien remains under the Group’s name and in security for the Group agreeing to provide the guarantee to ZhongAn. The holding of the lien does not affect the creditor’s right in the loan being fully transferred. Provided all aforementioned conditions under sales accounting are met, the transfer of such loans with collateral are accounted for as a sale. The Group ceased facilitation of Xiaoying Housing Loan in 2019. |
Foreign currency translation | (f) The functional currency of X Financial is in US dollars (“US$”). The functional currency of the Group’s subsidiaries and VIEs in the PRC is Renminbi (“RMB”). The determination of the respective functional currency is based on the criteria stated in ASC 830, Foreign Currency Matters. The Group also uses RMB as its reporting currency. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency at the rates of exchange ruling at the balance sheet date. Transactions in currencies other than the functional currency are measured and recorded in the functional currency at the exchange rate prevailing on the transaction date. Translation gains and losses are recognized in the statements of comprehensive income (loss). The Company with functional currency of US$ translates its operating results and financial positions into RMB, the Group’s reporting currency. Assets and liabilities are translated using the exchange rates in effect on the balance sheet date. Equity amounts are translated at historical exchange rates. Revenues, expenses, gains and losses are translated using the average rates for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component in the statements of comprehensive income (loss). |
Guarantee liabilities | (g) The Group has guarantee service which is directly and indirectly provided to the investors or institutional funding partners. The Group also provides direct guarantee to investors or institutional funding partners on certain loan products via its consolidated entities. If a borrower defaults, the Group makes its best efforts to collect the default loan. The Group directly or indirectly makes payment to the defaulted principal and interest to each investor or institutional funding partner. Prior to September 2017, ZhongAn initially reimbursed the loan principal and interest to the investor or institutional funding partner upon the borrower’s default. In order to maintain stable business relationship with ZhongAn, although not contractually obligated, the Group at its sole discretion compensated ZhongAn for substantially all loan principal and interest default but not subsequently collected. At the inception of each loan, the Group recognizes the guarantee liability at fair value in accordance with ASC 460-10, which incorporates the expectation of potential future payments under the guarantee and takes into both non-contingent and contingent aspects of the guarantee. Subsequent to the loan’s inception, the guarantee liability is composed of two components: (i) ASC Topic 460 component; and (ii) ASC Topic 450 component. The liability recorded based on ASC Topic 460 is determined on a loan by loan basis and it is reduced when the Group is released from the underlying risk, i.e. as the loan is repaid by the borrower or when the investor or institutional funding partner is compensated in the event of a default. This component is a stand-ready obligation which is not subject to the probable threshold used to record a contingent obligation. When the Group is released from the stand-ready liability upon expiration of the underlying loan, the Group records a corresponding amount as “Other revenue” in the consolidated statement of comprehensive income. The other component is a contingent liability determined based on probable loss considering the actual historical performance and current conditions, representing the obligation to make future payouts under the guarantee liability in excess of the stand-ready liability, measured using the guidance in ASC Topic 450. The ASC Topic 450 contingent component is determined on a collective basis and loans with similar risk characteristics are pooled into cohorts for purposes of measuring incurred losses. The ASC 450 contingent component is recognized as part of operating expenses in the consolidated statement of comprehensive income. At all times the recognized liability (including the stand-ready liability and contingent liability) is at least equal to the probable estimated losses of the guarantee portfolio. The Group measures its guarantee liabilities at inception at fair value based on the Group’s expected payouts and also incorporating a markup margin. As the Group’s guarantee liabilities are not traded in an active market with readily observable prices, the Group applies a discounted cash flow methodology to measure the fair value of guarantee liabilities. The impact of credit losses is also considered by applying discounted cash flow method for the subsequent measurement of guarantee liabilities, based on the consideration of reasonable and supportable forecasts of future economic conditions. The significant unobservable inputs used include expected future payout and discount rate. The expected future payouts were estimated based on expected default rates and collection rates for each product type, taking into consideration of historical loss experiences for both contingent and noncontingent elements. The expected future payouts take into account missed payments initially compensated by ZhongAn within two Refer to Note 12 for additional information about guarantee liabilities for the years ended December 31, 2019, 2020 and 2021. From September 2017, the Group revised the arrangement with Zhongan on Xiaoying Credit Loan products, which is the major product offered by Group. The Group no longer records any guarantee liabilities in accordance with ASC Topic 460 for substantially all Xiaoying Preferred Loans. For most Xiaoying Card Loans, the Group records financial guarantee derivatives in accordance with ASC 815. See accounting policy of revenue recognition and financial guarantee derivatives. |
Financial guarantee derivatives | (h) Starting from September 2017, for newly facilitated Xiaoying Credit Loans and Xiaoying Revolving Loans, the Group entered into a series of arrangements with various financial institutional cooperators in which it has agreed that the Group’s exposure is limited to the contractual guarantee fee that the Group cannot collect under the agreement from the borrower as a result of default or prepayment but are still obligated to compensate those financial institutional cooperators based on the contractual guarantee fee up to the pre-agreed cap. See accounting policy in Revenue Recognition. The financial guarantee is accounted for as a derivative under ASC 815 because the financial guarantee scope exemption in ASC 815-10-15-58 is not met. The derivative is remeasured at each reporting period. The change in fair value of the derivative is recorded as a change in fair value of financial guarantee derivatives in the consolidated statements of comprehensive income(loss). The derivative is increased by the guarantee fees collected from the borrowers upon receipt as the Group expects all the fees to be ultimately paid to those financial institutional cooperators. When the Group settles the guarantee through performance of the guarantee by making payments to those financial institutional cooperators, the Company records a corresponding deduction to the derivative. The Group uses the discounted cash flow model to value these financing guarantee derivatives at inception and subsequent valuation dates. This discounted cash flow model incorporates assumptions such as the expected delinquency rates, prepayment rate and discount rate. The expected delinquency rate and prepayment rate is estimated by taking into consideration of historical loss experiences. The discount rate is determined based on the market rates. The Group considers that the impact of discount rate to the fair value of financial guarantee derivatives is immaterial. |
Fair value | (i) Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Authoritative literature provides a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: ● Level 1—inputs are based upon unadjusted quoted prices for identical assets or liabilities traded in active markets. ● Level 2—inputs are based upon quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3—inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair value is therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques. |
Cash and Cash Equivalents | (j) Cash and cash equivalents primarily consist of cash on hand and cash in bank which are highly liquid. As of December 31, 2021, cash equivalents were comprised of current deposits and money market funds stated at cost plus accrued interest. All cash and cash equivalents are unrestricted as to withdrawal and use. |
Restricted Cash | (k) Restricted cash consists primarily of cash held by the Consolidated Trusts and Partnerships through segregated bank accounts which can only be used by the Trusts and Partnerships to specified activities as stipulated in the Trust or Partnership agreements. Cash in the Consolidated Trusts and Partnerships is not available to fund the general liquidity needs of the Group. Restricted cash also includes cash deposited with banks as collateral for borrowings from the respective banks. Restriction on the use of such cash and the interest earned thereon is imposed by the banks and remains effective throughout the terms of the borrowings. See Note 8. |
Accounts receivable and contract assets, net | (l) Accounts receivable and contract assets, net Accounts receivable and contract assets consist of accounts receivable and contract assets from the facilitation and post-origination service in relation to loans facilitated under both Direct and Intermediary Models. Contract assets represent the Group’s right to consideration in exchange for facilitation services that the Company has transferred to the customer before payment is due. The Group only recognizes accounts receivable and contract assets to the extent that the Group believes it is probable that they will collect substantially all of the consideration to which it will be entitled in exchange for the services transferred to the customer. The general life time of accounts receivable and contract assets lasts no more than 12 months. Accounts receivable and contract assets from facilitation service is stated at the historical carrying amount net of write-offs and allowance for credit losses. The Group establishes an allowance for credit losses in accordance with ASC 326 based on estimates, historical experience of net default rates, current economic conditions, reasonable and supportable forecasts of future economic conditions and other factors surrounding the credit risk of customers. The profile of the borrowers is similar under each product therefore the Group applies a consistent credit risk management framework to the entire portfolio of borrowers under each product. For individual customers where there is an observable indicator of impairment such as fraud, a specific allowance is provided. The Group also constantly monitor the financial condition and evaluates the credit quality of certain institutional funding partners and external financing guarantee companies from which the Group’s service fees are collected directly or indirectly. The Group evaluates and adjusts its allowance for credit losses for accounts receivable and contract assets on a quarterly basis or more often as necessary. Uncollectible accounts receivable or contract assets are written off when a settlement is reached for an amount that is less than the outstanding historical balance or when accounts receivable or contract assets are deemed uncollectible. The following table presents the accounts receivable and contract assets from facilitation and post-origination as of December 31, 2020 and 2021, respectively: Accounts receivable Accounts from receivable from Accounts facilitation post-origination receivable from Allowance for As of December 31, 2020 services services financing income credit losses Total RMB RMB RMB RMB RMB Xiaoying Credit Loan 422,694,249 1,897,119 9,160,182 (37,529,193) 396,222,357 Xiaoying Revolving Loan 14,438,096 1,295,993 2,503,149 (1,152,487) 17,084,751 Total 437,132,345 3,193,112 11,663,331 (38,681,680) 413,307,108 Accounts Accounts receivable receivable Accounts and contract and contract receivable assests from assests from and contract facilitation post-origination assests from Allowance for As of December 31, 2021 services services financing income credit losses Total RMB RMB RMB RMB RMB Accounts receivable: Xiaoying Credit Loan 189,556,149 2,468,496 26,080,407 (8,092,404) 210,012,648 Contract assests: Xiaoying Credit Loan 529,311,240 25,931,783 — (17,775,553) 537,467,470 Total 718,867,389 28,400,279 26,080,407 (25,867,957) 747,480,118 . Accounts Accounts receivable receivable Accounts and contract and contract receivable assests from assests from and contract facilitation post-origination assests from Allowance for As of December 31, 2021 services services financing income credit losses Total US$ US$ US$ US$ US$ Accounts receivable: Xiaoying Credit Loan 29,745,496 387,361 4,092,585 (1,269,875) 32,955,567 Contract assests: Xiaoying Credit Loan 83,060,484 4,069,263 — (2,789,372) 84,340,375 Total 112,805,980 4,456,624 4,092,585 (4,059,247) 117,295,942 The following tables present the aging of accounts receivable as of December 31, 2020 and 2021 respectively. The Group charges off accounts receivable overdue more than 60 days. As of December 31, 2020 Aging Not past-due 1 - 30 days 30 - 60 days Total RMB RMB RMB RMB Xiaoying Credit Loan 426,728,851 3,680,132 3,342,567 433,751,550 Xiaoying Revolving Loan 16,016,508 986,663 1,234,067 18,237,238 Total 442,745,359 4,666,795 4,576,634 451,988,788 As of December 31, 2021 Aging Not past-due 1 - 30 days 30 - 60 days Total RMB RMB RMB RMB Xiaoying Credit Loan 205,943,964 6,352,735 5,808,353 218,105,052 Total 205,943,964 6,352,735 5,808,353 218,105,052 As of December 31, 2021 Aging Not past-due 1 - 30 days 30 - 60 days Total US$ US$ US$ US$ Xiaoying Credit Loan 32,317,102 996,883 911,457 34,225,442 Total 32,317,102 996,883 911,457 34,225,442 The following tables present the movement of provision for accounts receivable and contract assets as of December 31, 2019 and in the allowance for credit losses for accounts receivables and contract assets as of December 31, 2020 and 2021: Provision for As of accounts receivable Charge-off for As of January 1, (net of recovery) accounts December 31, 2019 (1) receivable 2019 RMB RMB RMB RMB Xiaoying Credit Loan 206,575,845 230,589,301 (252,080,117) 185,085,029 Xiaoying Revolving Loan — 10,303,996 (2,479,118) 7,824,878 Xiaoying Housing Loan 119,616 — (119,616) — Internet Channel 133,707 — (133,707) — Other products 14,384,158 293,526 (14,677,684) — Total 221,213,326 241,186,823 (269,490,242) 192,909,907 As of Provision for Charge-off for As of January 1, Adoption of ASU accounts receivable accounts December 31, 2020 2016-13 (net of recovery) (1) receivable 2020 RMB RMB RMB RMB RMB Xiaoying Credit Loan 185,085,029 11,480,592 112,833,743 (271,870,171) 37,529,193 Xiaoying Revolving Loan 7,824,878 811,579 11,883,737 (19,367,707) 1,152,487 Internet Channel — 3,232,265 (3,232,265) — — Total 192,909,907 15,524,436 121,485,215 (291,237,878) 38,681,680 Provision for accounts receivable Charge-off for As of and contract assets accounts As of January 1, (net of recovery) receivable and December 31, 2021 (1) contract assets 2021 RMB RMB RMB RMB Accounts receivable: Xiaoying Credit Loan 37,529,193 46,512,298 (75,949,087) 8,092,404 Xiaoying Revolving Loan 1,152,487 1,612,419 (2,764,906) — Contract assests: Xiaoying Credit Loan — 29,123,093 (11,347,540) 17,775,553 Total 38,681,680 77,247,810 (90,061,533) 25,867,957 Provision for Charge-off for As of accounts receivable accounts As of January 1, and contract assets receivable and December 31, 2021 (net of recovery) (1) contract assets 2021 US$ US$ US$ US$ Accounts receivable: Xiaoying Credit Loan 5,889,150 7,298,794 (11,918,069) 1,269,875 Xiaoying Revolving Loan 180,850 253,024 (433,874) — Contract assests: Xiaoying Credit Loan — 4,570,049 (1,780,677) 2,789,372 Total 6,070,000 12,121,867 (14,132,620) 4,059,247 (1) The recoveries of charge-off of accounts receivables and contract assets amounted to RMB3,690,460, RMB4,243,262 and RMB850,597 (US$133,477) during the year ended December 31, 2019, 2020 and 2021, respectively. |
Loans held for sale | (m) From time to time, the Group provides credits to borrowers through an intermediary first to enhance borrowers’ service satisfaction and transfers the loans to third party investors or institutional funding partners on its platform immediately thereafter (typically within a short period of time). These loans are accounted for as held for sale at lower of cost or fair value, as the Group has a clear marketing plan to transfer these loans to external investors or institutional funding partners and does not have intention to hold loans for the foreseeable future. During the period presented, the direct origination costs were inconsequential and were expensed as incurred. As at December 31, 2019, the Group reclassified loans held for sale to loans receivables from Xiaoying Credit Loans and Xiaoying Revolving loans after reassessing its intent and ability to transfer these loans. Loans receivables from Xiaoying Credit Loans and Xiaoying Revolving Loans includes those loans that the Group acquired from unaffiliated third parties who were the initial lenders of such loans. The Group believes that acquiring loans from unaffiliated third parties is not prohibited under the Interim Measures on Administration of Business Activities of Online Lending Information Intermediaries (the “Interim Measures”) because the Interim Measures prohibit an online finance information intermediary from providing its own funds to borrowers on the platform directly but do not prohibit an online finance information intermediary acquiring loans from others. The Group acquired loans from unaffiliated third parties who were the initial lenders of such loans in 2020 and 2021. As of December 31, 2020 and 2021, such loans had a weighted average term of 10~11 months and a remaining weighted average term of 7 ~ 8 months, respectively. The loans were initially recognized as “Loans held for sale” as the Group did not have intention to retain such loans. The loans were not covered by any credit enhancement from qualified institutional partners. And the Group had no ability to transfer out the loans without recourse to the Group due to the illiquid market. Therefore, as of December 31,2019, the Group reclassified loans held for sale to loans receivables from Xiaoying Credit Loans and Xiaoying Revolving loans after reassessing its ability to transfer these loans. The cash flows related to the origination and transfer of these loans are presented as “Origination of loans held for sale” and “Sale of loans held for sale”, respectively, within operating cash flows in the consolidated statement of cash flows. |
Loans receivables from Xiaoying Credit Loans and Xiaoying Revolving Loans, net | (n) For those loans that the Group provides credits to borrowers using its own fund and has intention to hold for the foreseeable future, or has no intention to hold but fail to have certain marketing plans to transfer, or those transfer of loans that fails to meet to criteria of true sale under ASC 860 (see accounting policy under “Sale and Transfers of Financial Instruments”), they are accounted for as loans receivables from Xiaoying Credit Loans and Xiaoying Revolving Loans at amortized cost. As of December 31, 2020 and 2021, loans receivables from Xiaoying Credit Loans and Xiaoying Revolving Loans amounted to RMB1,236,026,461 and RMB2,484,072,931(US$389,805,249) respectively. The general life time of Loans receivables from Xiaoying Credit Loans and Xiaoying Revolving Loans lasts no more than 12 months. For the loans that were unable to be transferred to external investors or institutional funding partners in a transaction that fails to meet to the criteria of true sale under ASC 860, the corresponding considerations received from the institutional funding partners were recorded in “Payable to institutional funding partners” in the consolidated balance sheet. The considerations received by the Group were determined based on the outstanding loan balances on the transaction dates. As the Group entitles them to receive a fixed interest rate in the loans which the institutional funding partners purchased, an accrued interest expenses payable to them was also recorded in “Payable to institutional funding partners” in the consolidated balance sheet. Loans receivables from Xiaoying Credit Loans and Xiaoying Revolving Loans are stated at the historical carrying amount net of write-offs and allowance for credit losses. The Group establishes an allowance for credit losses in accordance with ASC 326 based on estimates, historical experience of net default rates, current economic conditions, reasonable and supportable forecasts of future economic conditions and other factors surrounding the credit risk of customers. The profile of the borrowers is similar under each product therefore the Group applies a consistent credit risk management framework to the entire portfolio of borrowers under each product. For individual customers where there is an observable indicator of impairment such as fraud, a specific allowance is provided. The Group evaluates and adjusts its allowance for credit losses for loans receivables on a quarterly basis or more often as necessary. Uncollectible loans receivables are written off when a settlement is reached for an amount that is less than the outstanding historical balance or when loans receivables are deemed uncollectible. The Group excluded the accrued interest receivable balance from the disclosed amortized cost basis, amounting to RMB26,080,407(US$4,092,585) as of December 31, 2021. The accrued interest receivables were recorded in Accounts receivables in the consolidated balance sheet. The Group does not measure the allowance for credit losses for accrued interest receivables as the Group writes off the uncollectable accrued interest receivables when the corresponding Loans receivables from Xiaoying Credit Loans and Xiaoying Revolving Loans are written off. In 2020 and 2021, the Group charges off Loan receivables from Xiaoying Credit Loans and Xiaoying Revolving Loans overdue more than 60 days. The following table presents the loans receivable from Xiaoying Credit Loans and Xiaoying Revolving Loans originated and retained by the Company as of December 31,2020 and 2021, respectively: Loans receivables from Xiaoying Credit Loans and Xiaoying Revolving Allowance for As of December 31, 2020 Loans credit losses Total RMB RMB RMB Xiaoying Credit Loan 1,027,762,930 (70,615,780) 957,147,150 Xiaoying Revolving Loan 310,819,315 (31,940,004) 278,879,311 Total 1,338,582,245 (102,555,784) 1,236,026,461 Loans receivables from Xiaoying Credit Loans and Xiaoying Revolving Allowance for As of December 31, 2021 Loans credit losses Total RMB RMB RMB Xiaoying Credit Loan 2,537,161,361 (54,725,057) 2,482,436,304 Xiaoying Revolving Loan 2,247,311 (610,684) 1,636,627 Total 2,539,408,672 (55,335,741) 2,484,072,931 Loans receivables from Xiaoying Credit Loans and Xiaoying Revolving Allowance for As of December 31, 2021 Loans credit losses Total US$ US$ US$ Xiaoying Credit Loan 398,135,982 (8,587,555) 389,548,427 Xiaoying Revolving Loan 352,652 (95,830) 256,822 Total 398,488,634 (8,683,385) 389,805,249 The following tables present the movement of provision for loans receivable from Xiaoying Credit Loans and Xiaoying Revolving Loans as of December 31, 2020 and 2021, respectively: Provision for loans receivable from Xiaoying Credit Loans and Revolving As of December Adoption of ASU Loans (net of As of December 31, 2019 2016-13 recovery) (1) Charge-off 31, 2020 RMB RMB RMB RMB RMB Xiaoying Credit Loans — — 74,934,783 (4,319,003) 70,615,780 Xiaoying Revolving Loans 24,709,468 4,205,046 152,275,243 (149,249,753) 31,940,004 Total 24,709,468 4,205,046 227,210,026 (153,568,756) 102,555,784 (Reversal of) provision for loans receivable from Xiaoying Credit Loans and As of December 31, Revolving Loans (net of As of December 31, 2020 recovery) (1) Charge-off 2021 RMB RMB RMB RMB Xiaoying Credit Loans 70,615,780 80,823,776 (96,714,499) 54,725,057 Xiaoying Revolving Loans 31,940,004 (4,428,608) (26,900,712) 610,684 Total 102,555,784 76,395,168 (123,615,211) 55,335,741 (Reversal of) provision for loans receivable from Xiaoying Credit Loans and As of December 31, Revolving Loans (net of As of December 31, 2020 recovery) (1) Charge-off 2021 US$ US$ US$ US$ Xiaoying Credit Loans 11,081,156 12,683,014 (15,176,615) 8,587,555 Xiaoying Revolving Loans 5,012,084 (694,945) (4,221,309) 95,830 Total 16,093,240 11,988,069 (19,397,924) 8,683,385 (1) The following table presents the aging of loans receivable from Xiaoying Credit Loans and Revolving Loans as of December 31, 2020 and 2021, respectively: As of December 31, 2020 Aging Not past-due 1 - 30 days 30 - 60 days Total RMB RMB RMB RMB Xiaoying Credit Loans 1,012,188,463 10,394,739 5,179,728 1,027,762,930 Xiaoying Revolving Loans 294,056,208 9,930,164 6,832,943 310,819,315 Total 1,306,244,671 20,324,903 12,012,671 1,338,582,245 As of December 31, 2021 Aging Not past-due 1 - 30 days 30 - 60 days Total RMB RMB RMB RMB Xiaoying Credit Loans 2,514,735,264 13,800,724 8,625,373 2,537,161,361 Xiaoying Revolving Loans 2,241,915 — 5,396 2,247,311 Total 2,516,977,179 13,800,724 8,630,769 2,539,408,672 As of December 31, 2021 Aging Not past-due 1 - 30 days 30 - 60 days Total US$ US$ US$ US$ Xiaoying Credit Loans 394,616,838 2,165,635 1,353,509 398,135,982 Xiaoying Revolving Loans 351,805 — 847 352,652 Total 394,968,643 2,165,635 1,354,356 398,488,634 |
Loans and payable to investors of Consolidated Trusts | (o) The Group has elected the fair value option for the loan assets and liabilities of the Consolidated Trusts that otherwise would not have been carried at fair value. Such election is irrevocable and is applied to financial instruments on an individual basis at initial recognition. The Group estimates the fair value of loans and payable using a discounted cash flow valuation methodology by discounting the estimated future net cash flows using an appropriate discount rate. The future net cash flows are estimated based on contractual cash flows, taking into consideration of estimated delinquency rate, prepayment rate and collection rate of the loans, and the pre-determined Rate of the Group’s guarantee exposure for certain products. Loans and payable to investors of Consolidated Trusts are recorded as “Loans at fair value” and “Payable to investors at fair value” in the consolidated balance sheet. Changes in fair value of loans and payable to investors are reported net as recorded in “Fair value adjustments related to Consolidated Trusts” in the consolidated statement of comprehensive income. See Note 3 for further disclosure on financial instruments of the Consolidated Trusts for which the fair value option has been elected. |
Loan receivable from Xiaoying Housing Loans, net | (p) The Group directly or indirectly guarantees on borrowers’ defaults to the investors or institutional funding partners of Xiaoying Housing Loan products and obtains a collateral right from the borrowers for such guarantees. The collaterals include apartments, houses and properties, which can fully cover the underlying loan principle and interest. Upon default of the loan, the Group compensates the investor or ZhongAn for defaulted loan principal and interest and obtains the creditor’s right of the underlying loan. The payout amount in relation to the original guarantee provision provided at loan inception was recorded as a deduction of guarantee liability, reflected in net payouts in the guarantee liabilities rollforward. The remaining payout amount in relation to the acquisition of the creditor’s right of the underlying loan is recorded as loan receivable upon payment of compensation in “Loan receivable from Xiaoying Housing Loans” in the consolidated balance sheets as the collection cycle typically will be more than one year. No loan receivables are recorded at loan inception. Loan receivable from Xiaoying Housing Loans is recorded based on the present value of the expected amount to be collected from the exercise of the collateral right. Given the deterioration of the credit related to those loans upon acquisition, the Group determined that those loans are in non-accrual status and should only recognize related service and penalty fees upon cash received in other revenues. Allowance for loan receivable is established through periodic charges to the provision for loan receivable when the Group believes that the future collection of defaulted loan principal and interest is unlikely. Allowance for credit losses for loan receivables from Xiaoying Housing loans is also recognized when the fair value is below the original recorded present value of the expected amount to be collected. In order to accelerate the collection process, the Group transferred the creditor rights of certain defaulted loans as well as the underlying collateral right to third party companies at a discount in 2019, 2020 and 2021. The discounted amount was recorded as an allowance for loan receivables which represent the amount that the Group expects not able to collect from the proceedings. In addition, the Group also recorded an allowance for the remaining outstanding loans not transferred benchmarked to the discounted amount. The Group also institutes proceedings to collect the payout amount from collaterals. Uncollectible loan receivable from Xiaoying Housing Loans is written off when a settlement is reached for an amount that is less than the outstanding historical balance or when loan receivables are deemed uncollectible. The outstanding balance of loan receivable from Xiaoying Housing Loans were RMB47,490,437 and RMB12,083,317 (US$1,896,136)as of December 31, 2020 and 2021, respectively. The contractually required payments that are receivable for loans acquired during 2020 and 2021 were RMB14,165,030 and nil, respectively. The outstanding undiscounted balance including the principal, interest, fees, penalties under Xiaoying Housing Loans receivable were RMB129,940,425 and RMB121,854,733(US$19,121,667), as of December 31, 2020 and 2021, respectively. The following tables presents the movement in provision for loans receivable from Xiaoying Housing Loans for the years ended December 31, 2020 and 2021. Provision for Loans Receivable As of December 31, 2019 from Xiaoying Housing Loans Charge-off As of December 31, 2020 RMB RMB RMB RMB 48,211,512 17,993,570 (66,205,082) — Reversal of provision for Loans Receivable Recoveries of As of December 31, 2020 from Xiaoying Housing Loans charge-off As of December 31, 2021 RMB RMB RMB RMB — (377,559) 377,559 — Reversal of provision for Loans Receivable Recoveries of As of December 31, 2020 from Xiaoying Housing Loans charge-off As of December 31, 2021 US$ US$ US$ US$ — (59,247) 59,247 — The following tables presents the aging of Loan receivables from Xiaoying Housing Loans as of December 31, 2020 and 2021, respectively: As of December 31, 2020 Over due 1 – 2 Over due 2 – 3 Over due over 3 Aging years years years Total RMB RMB RMB RMB Xiaoying Housing Loans 3,043,453 8,691,640 35,755,344 47,490,437 As of December 31, 2021 Over due 1 – 2 Over due 2 – 3 Over due over 3 Aging years years years Total RMB RMB RMB RMB Xiaoying Housing Loans — 1,392,439 10,690,878 12,083,317 As of December 31, 2021 Over due Over due Over due Aging 1 – 2 years 2 – 3 years over 3 years Total US$ US$ US$ US$ Xiaoying Housing Loans — 218,504 1,677,632 1,896,136 |
Short-term investment | (q) The Group classifies certain financial assets such as financial products issued by banks expected to be realized in cash with highly liquid as financial investments. Those financial assets were accounted as fair value. Interest income, related realized and unrealized gains and losses are included in earnings. The Group regularly evaluates its financial investments for impairment or when events or changes in circumstances indicate that it might be impaired. Financial investments also include investments in the Venture Capital funds (“VC funds”). The Group elected to use the measurement alternative to measure these investments at cost minus impairment, because their fair value is not readily determinable and do not qualify for the NAV practical expedient according to ASC topic 321, Investment-Equity Securities. |
Deposits to institutional cooperators, net | (r) Starting from November 2019, the Group enter into a series of deposit arrangements with financing institutional cooperators, such as insurance company and financing guarantee company. The Group is required to pay deposits to those financial institutional cooperators monthly or in accordance with an agreed payment schedule. The amount of deposit is separately agreed with each institutional cooperator, usually calculated by multiplying the outstanding loan balance on the reconciliation date by an agreed percent rate (“the standard amount “). The agreed percent rate may be adjusted from time to time. If the balance of the deposits exceeds the standard amount or supplementary payment of deposit is needed, the financial institutional cooperators shall refund the excess part to the Group or the Group shall make supplementary payment of deposit in accordance with an agreed payment schedule. Deposits to institutional cooperators is stated at the historical carrying amount net of write-offs and allowance for credit losses. The Group establishes an allowance based on estimates, the current and expected default rates, insurance premium/guarantee fee, the historical pay-out amounts, the outstanding loan balances, the forecasted loan facilitation amounts and the credit risk of institutional cooperators. The Group evaluates and adjusts its allowance for deposits to institutional cooperators on a quarterly basis or more often as necessary. Deposits to institutional cooperators are written off when deposits are deemed uncollectible. Deposits to institutional cooperators are recorded as current assets because the term of the underlying loan assets was 12 months or less. As of December 31, 2021, all deposits are refundable and none of them passed the original due date. |
Property and equipment, net | (s) Furniture and equipment are recorded at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated on a straight-line basis over the following estimated useful lives: Computer and transmission equipment 3 years Furniture and office equipment 5 years Motor vehicles 4 years Leasehold improvements Over the shorter of the lease term or expected useful lives Gains and losses from the disposal are included in ‘Other income (loss), net’. |
Intangible assets | (t) Intangible assets with finite lives represent domain name and purchased computer software. These intangible assets are amortized on a straight line basis over their estimated useful lives of the respective asset, which varies from 1 Intangible assets with an indefinite useful life represent the insurance broker license purchased during 2018 and insurance sale on line license authorized in 2019, See Note 7. Intangible assets with an indefinite life is not amortized and is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired. |
Impairment of long-lived assets | (u) Long-lived assets including intangible assets with definite lives, are assessed for impairment, whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable in accordance with ASC 360, Property, Plant and Equipment. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Group measures the carrying amount of long-lived assets against the estimated undiscounted future cash flows associated with it. Impairment exists when the estimated undiscounted future cash flows are less than the carrying value of the asset being evaluated. Impairment loss is calculated as the amount by which the carrying value of the asset exceeds its fair value. No impairment loss was recognized for the years ended December 31, 2019, 2020 and 2021. Intangible assets with an indefinite useful life are tested for impairment annually or more frequently, if events or changes in circumstances indicate that they might be impaired accordance with ASC subtopic 350-30, Intangibles-Goodwill and Other: General Intangibles Other than Goodwill (“ASC 350-30 “). |
Long-term investments | (v) The Group accounts for long-term investments using either the cost or equity method of accounting depending upon whether the Group has the ability to exercise significant influence over investments. As part of this evaluation, the Group considers the participating and protective rights in the investments as well as its legal form. The Group uses the equity method of accounting for the long-term investments when the Group has the ability to significantly influence the operations or financial activities of the investee. The Group record the equity method long-term investments at historical cost and subsequently adjusts the carrying amount each period for share of the earnings or losses of the investee and other adjustments required by the equity method of accounting. Dividends received from the equity method investments are recorded as reductions in the cost of such investments. The Group records the cost method long-term investments at historical cost and subsequently record any dividends received from the net accumulated earnings of the investee as income. Dividends received in excess of earnings are considered a return of investment and are recorded as reductions in the cost of the investments. Long-term investments are evaluated for impairment when facts or circumstances indicate that the fair value of the long-term investments is less than its carrying value. An impairment is recognized when a decline in fair value is determined to be other-than-temporary. The Group reviews several factors to determine whether a loss is other-than-temporary. These factors include, but are not limited to, the: (i) nature of the investment; (ii) cause and duration of the impairment; (iii) extent to which fair value is less than cost; (iv) financial condition and near term prospects of the investments; and (v) ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. Long-term investments of the Group consist of five equity investments of PRC private companies. |
Deposit payable to channel cooperators | (w) The Group co-operates with selected Fintech and other financial companies by connecting the borrowers referred by those companies to investors on the Group’s platform. As part of the arrangements, the selected companies also provide credit enhancements on the loans facilitated to the borrowers referred by them and are required to pay a certain amount of cash as deposit to the Group, from which the Group is entitled to deduct if they fail to compensate the defaulted loans on a timely basis. Any remaining balance of the deposit is released upon expiry of the co-operation agreements. As of December 31, 2020 and 2021 the total deposit amount that the Group received from Fintech and other financial companies were RMB21,472,235 and RMB21,012,235 (US$3,297,278) respectively. |
Employee defined contribution plan | (x) Full time employees of the Group in the PRC participate in a government mandated multi-employer defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require that the Group make contributions to the government for these benefits based on a certain percentage of the employee’s salaries. The Group has no legal obligation for the benefits beyond the contributions. The total amount that was expensed as incurred were RMB53,997,224 , RMB28,891,339 and RMB35,601,429(US$5,586,641) for the years ended December 31, 2019, 2020 and 2021 respectively. |
Advertising cost | (y) Advertising costs are expensed as incurred in accordance with ASC 720-35 Other Expense—Advertising costs. Advertising costs were RMB64,357,939,RMB25,594,249 and RMB7,395,353 (US$1,160,492) for the years ended December 31, 2019, 2020 and 2021 respectively. Advertising costs are included in sales and marketing expense in the consolidated statements of comprehensive income (loss). |
Origination and servicing expense | (z) Origination and servicing expense consists primarily of variable expenses and vendor costs, including labor costs, costs related to credit assessment, borrower acquisitions, payment processing services, fees paid to third party collection agencies, as well as interest expense paid to institutional investors and institutional funding partners of the Consolidated Trusts and Partnerships. |
Income taxes | (aa) Current taxes are provided for in accordance with the laws of the relevant tax authorities. Deferred taxes are provided using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax return. Under this method, deferred tax assets and liabilities are recognized for the differences between financial statement carrying amount and the tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are then evaluated to determine the extent to which they are more likely than not to be realized. In making such a determination, management considers all positive and negative evidence, including future reversals of existing taxable temporary differences and projected future taxable income exclusive of reversing temporary differences and carryforwards. Deferred tax assets are then reduced by a valuation allowance to the amount, in the opinion of management, that is more like than not to be realized. The Group accounts for uncertainty in income taxes recognized in the consolidated financial statements by applying a two-step process to determine the amount of the benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination by the taxing authorities. If the tax position is deemed more-likely-than-not to be sustained (defined as a likelihood of more than fifty percent of being sustained upon an audit, based on the technical merits of the tax position), the tax position is then assessed to determine the amount of benefits to recognize in the consolidated financial statements. The amount of the benefits that may be recognized is the largest amount that has a greater than 50 percent likelihood of being realized upon settlement. Interest and penalties on income taxes are classified as a component of income taxes. |
Value added taxes ("VAT") | (ab) The Group is subject to VAT at the rate of 6% and 13% given that they are classified as general tax payers and at the rate of 3% as certain Consolidated Trusts and Consolidated Partnerships of the Group are classified as small-scale tax payers. VAT is reported as a deduction to revenue when incurred and amounted to RMB231,454,037 , RMB197,016,590 and RMB228,029,948(US$35,782,875) for the years ended December 31, 2019, 2020 and 2021 respectively. 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 accrued expense and other liabilities on the consolidated balance sheets. |
Segment information | (ac) The Group uses management approach to determine operation segment. The management approach considers the internal organization and reporting used by the Group’s chief operating decision maker (“CODM”)for making decisions, allocation of resource and assessing performance. The Group’s CODM has been identified as the Chief Executive Officer who reviews the consolidated results of operations when making decisions about allocating resources and assessing performance of the Group. The Group operates and manages its business as a single segment. All of the Group’s revenue for the years ended December 31, 2019, 2020 and 2021 were generated from the PRC. As of December 31, 2019, 2020 and 2021, all of long-lived assets of the Group were located in the PRC. As the Group generates all of its revenues in the PRC, no geographical segments are presented. |
Leases | (ad) The Group adopted ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”) from January 1, 2019 by using the modified retrospective method and did not restate the comparable periods. The Group has elected the package of practical expedients, which allows the Group not to reassess (1) whether any expired or existing contracts as of the adoption date are or contain a lease, (2) lease classification for any expired or existing leases as of the adoption date and (3) initial direct costs for any expired or existing leases as of the adoption date. The Group also elected the practical expedient not to separate lease and non-lease components of contracts. Lastly, the Group elected the short-term lease exemption for all contracts with lease terms of 12 months or less. The Group determines if an arrangement is a lease or contains a lease at lease inception. For operating leases, the Group recognizes a ROU asset and a lease liability based on the present value of the lease payments over the lease term on the consolidated balance sheets at commencement date. For finance leases, assets are included in property and equipment on the consolidated balance sheets. As most of the Group’s leases do not provide an implicit rate, the Group estimates its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located. The Group’s leases often include options to extend and lease terms include such extended terms when the Group is reasonably certain to exercise those options. Lease terms also include periods covered by options to terminate the leases when the Group is reasonably certain not to exercise those options. Lease expense is recorded on a straight-line basis over the lease term. The ROU assets were recorded as “Other non-current assets”, and the current and non-current portions of the lease liabilities were recorded as “Accrued expenses and other current liabilities “Other non-current liabilities As of December 31, 2020 and 2021, the Group recognized operating lease ROU assets of RMB45,217,671 and RMB25,199,346 (US$3,954,327), total lease liabilities RMB44,486,728 and RMB24,350,514 (US$3,821,127), including current portion of RMB16,871,785 and RMB12,331,166 (US$1,935,029) for operating leases. The Group’s operating leases mainly related to office facilitates. As of December 31 2021, the weighted average remaining lease term was 1.38 years and the weighted average discount rate was 6.2% for the Group’s operating leases. Operating lease cost for the year ended 31 December, 2021 was RMB17,943,753(US$2,815,766), which excluded cost of short-term contracts. Short-term lease cost for the year ended 31 December, 2021 was insignificant. For the year ended 31 December, 2021, no lease cost for operating or finance leases was capitalized. Supplemental cash flow information related to operating leases was as follows: As of December 31, 2021 RMB US$ Cash payments for operating leases 20,298,560 3,185,287 ROU assets obtained in exchange for operating lease liabilities — — Future lease payments under operating leases as of December 31, 2021 were as follows: Operating leases RMB US$ Year ending December 31, 2022 17,559,142 2,755,413 2023 4,753,618 745,946 2024 4,844,256 760,169 2025 and thereafter 3,503,856 549,831 Total future lease payments 30,660,872 4,811,359 Less: Imputed interest 6,310,358 990,232 Total lease liability balance 24,350,514 3,821,127 As of December 31, 2021, additional operating leases that have not yet commenced were immaterial. |
Net income (loss) per share | (ae) Basic income (loss) per share is computed by dividing net income (loss) attributable to the holders of ordinary shares by the weighted average number of ordinary shares outstanding during the year. Diluted income (loss) per share is calculated by dividing net income (loss) attributable to the holders of ordinary shares as adjusted for the effect of dilutive ordinary share equivalents, if any, by the weighted average number of ordinary shares and dilutive ordinary share equivalents outstanding during the period. Ordinary share equivalents of stock options are calculated using the treasury stock method. However, ordinary share equivalents are not included in the denominator of the diluted earnings per share calculation when inclusion of such shares would be anti-dilutive, such as in a period in which a net loss is recorded. |
Share-based compensation | (af) Share-based payment transactions with employees, such as stock options and restricted stocks, are measured based on the grant date fair value of the awards, with the resulting expense generally recognized on a straight-line basis in the consolidated statements of income over the period during which the employee is required to perform service in exchange for the award. |
Certain risks and concentrations | (ag) Financial instruments that potentially expose the Group to concentrations of credit risk consist principally of cash, restricted cash, financial investments, accounts receivable and contract assets, deposits to institutional cooperators, loans receivables and loans at fair value. The Group’s investment policy requires cash and restricted cash to be placed with high-quality financial institutions and to limit the amount of credit risk from any one issuer. The Group regularly evaluates the credit standing of the counterparties or financial institutions. Financial investments that potentially subject the Group to credit risk mainly consist of investments in VC funds. The Group limits its exposure to credit risks associated with financial instruments by regularly conducting a credit review of the funds and their underlying investments. Accounts receivable and contract assets are typically unsecured and are derived from revenue earned from customers in the PRC. The risk with respect to accounts receivable and contract assets is mitigated through the Group’s consistent credit risk management framework to the entire portfolio of loans in accordance with ASC 450-20. The Group also constantly monitor the financial condition and evaluates the credit quality of certain institutional funding partners and external financing guarantee companies from which the Group’s service fees are collected. Deposits to institutional cooperators are placed with financial institutional cooperators. The Group regularly monitors the financial condition and evaluates the credit quality of each institutional cooperator. Credit of loans receivables and loans at fair value is controlled by the application of credit approval, limit and monitoring procedures. No investor represented greater than 10% or more of the total net revenues for the years ended December 31, 2019, 2020 and 2021. There were no and two contract assets due from institutional funding partner and financing guarantee company that individually accounted for greater than 10% of the Group's carrying amount of accounts receivable and contract assets as of December 31, 2020 and 2021, respectively. As of December 31, As of December 31, 2020 2021 Financing guarantee company A Nil 15.5 % Institutional funding partner B Nil 11.0 % As of December 31, 2020 and 2021, three and two institutional cooperators accounted for more than 10% of the Group's deposits to institutional cooperators, respectively. As of December 31, As of December 31, 2020 2021 Institutional cooperator A 43.9 % 30.7 % Institutional cooperator B * 23.1 % Institutional cooperator C 17.5 % * Institutional cooperator D 14.6 % * * Less than 10%. The Company manages current payment risk of guarantee liabilities / financial guarantee derivative through a self-developed risk management model. The rating scale of risk management model takes into account factors such as identity characteristics, credit history, payment overdue history, payment capacity, behavioral characteristics and online social network activity. As of December 31, 2021, substantially all of the loans facilitated by the Group were insured/guaranteed by external insurance company or financing guarantee companies. |
Credit losses | (ah) In June 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326). The ASU introduced a new credit loss methodology, the current expected credit losses (CECL) methodology, which requires earlier recognition of credit losses while also providing additional disclosure about credit risk. The Group adopted the ASU as of January 1, 2020, which resulted in an increase in the Group’s Allowance for credit losses (ACL) and a decrease to opening Retained earnings, net of deferred income taxes, at January 1, 2020. The CECL methodology utilizes a lifetime “expected credit loss” measurement objective for the recognition of credit losses for loans, receivables and other financial assets measured at amortized cost at the time the financial asset is originated or acquired. The ACL is adjusted each period for changes in expected lifetime credit losses. The CECL methodology represents a significant change from prior U.S. GAAP and replaced the prior multiple existing impairment methods, which generally required that a loss be incurred before it was recognized. Within the life cycle of a loan or other financial asset, the methodology generally results in the earlier recognition of the provision for credit losses and the related ACL than prior U.S. GAAP. The CECL methodology’s impact on expected credit losses, among other things, reflects the Group’s view of the current state of the economy, forecasted macroeconomic conditions and the Group’s portfolios. The CECL methodology also applies to certain off-balance sheet credit exposures, such as financial guarantees not accounted for as derivatives. The financial guarantees provided for the Group’s off-balance sheet loans accounted for under ASC 460 are in the scope of ASC 326 and subject to the CECL methodology. At the January 1, 2020 date of adoption, based on forecasts of macroeconomic conditions and exposures at that time, the aggregate impact to the Group was an approximate RMB22.99 million, or an approximate 8.03%, pre tax increase in the Allowance for credit losses, along with a RMB17.24 million after-tax decrease in Retained earnings and a deferred tax asset increase of RMB5.75 million. This transition impact reflects (i) a RMB11.64 million build to the Allowance for credit losses for the Group’s accounts receivable and contract assets; (ii) an increase of RMB3.15 million of Allowance for credit losses for the Group’s loans receivable from Xiaoying Credit Loans and Xiaoying Revolving Loans; (iii) an increase of RMB2.10 million of Allowance for credit losses for the Group’s earnings rights associated with loan assets; (iv) an increase of RMB0.12 million of cash and equivalents; and (v) an increase of RMB0.22 million of guarantee liabilities. Under the CECL methodology, the Allowance for credit losses is model based and utilizes a forward-looking macroeconomic forecast in estimating expected credit losses. The model of the Allowance for credit losses would be considers (i) the uncertainty of forward-looking scenarios based on the likelihood and severity of a possible recession as another possible scenario; (ii) certain portfolio characteristics, such as portfolio concentration and collateral coverage; and (iii) model limitations as well as idiosyncratic events. |
Impact of COVID-19 | (ai) Impact of COVID-19 The Company’s results of operations have been adversely affected by the COVID-19 which harms the Chinese and global economy in general in 2020. In the early onset of the third quarter of 2020, the Group’s business was already on track for a steady recovery. In July 2020, the Group’s total loan facilitation amount was back to the level in January 2020 before COVID-19, and so were the delinquency rates for outstanding loans. In 2021, the Group’s operational and financial results continued to show progress against the Group’s strategic objectives. The Company has also provided additional credit losses for accounts receivable and contract assets, other current assets and loans receivables in 2020 and 2021, due to the impact of COVID-19, other economic conditions and other factors. There are still uncertainties of COVID-19’s future impact, and the extent of the impact will depend on a number of factors, including the duration and severity of COVID-19, possibility of a second wave in China, the development and progress of distribution of COVID-19 vaccine and other medical treatment, the potential change in user behavior, especially on internet usage due to the prolonged impact of COVID-19, the actions taken by government authorities, particularly to contain the outbreak, stimulate the economy to improve business condition, almost all of which are beyond the Company’s control. As a result, certain of the Company’s estimates and assumptions, including the allowance for credit losses, require significant judgments and carry a higher degree of variabilities and volatilities that could result in material changes to the Company’s current estimates in future periods. |
Revisions of prior year | (aj) In 2020, the Company identified certain amount should have been excluded from both origination and collection of loan principals related to Consolidated Trusts for the year ended December 31, 2019. As a result, the additional information about Level 3 loans and payable to investors measured at fair value, and “Principal payment of loans at fair value” and “Principal collection of loans at fair value” in the cash flows from investing activities of consolidated statement of cash flows for 2019 have been revised accordingly to reflect the immaterial error, which did not affect loans at fair value, payable to investors at fair value, cash and cash equivalent, cash flows from investing activities, or any other subtotal on the accompanying consolidated statement of cash flows. |
Recent accounting pronouncements | (ak) In May 2021, the FASB issued Accounting Standards Update 2021-04—Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options (a consensus of the FASB Emerging Issues Task Force). The FASB is issuing this Update to clarify and reduce diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options that remain equity classified after modification or exchange. The amendments in this Update are effective for all entities for fiscal years beginning July 1, 2022, including interim periods within those fiscal years. The Group is currently evaluating the impact of this new guidance on the consolidated financial statements but does not expect this guidance will have a material impact on its consolidated financial statements. |
Translation into United States Dollars | (al) The financial statements of the Group are stated in RMB. Translations of amounts from RMB into United States dollars are solely for the convenience of the reader and were calculated at the rate of US$1.00 = RMB6.3726, on December 31, 2021, as set forth in H.10 statistical release of the Federal Reserve Board. The translation is not intended to imply that the RMB amounts could have been, or could be, converted, realized or settled into United States dollars at that rate on December 31, 2021, or at any other rate. |
Organization and principal ac_2
Organization and principal activities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization and principal activities | |
Schedule of principal subsidiaries, VIEs and subsidiaries of the VIEs | As of December 31, 2021, the Company’s principal subsidiaries, VIEs and subsidiaries of the VIEs are as follows: Date of Place of Percentage incorporation/ incorporation/ of legal establishment establishment ownership Principal activities Wholly owned subsidiaries YZT (HK) Limited January 14, 2015 Hong Kong 100 % Investment holding Xiaoying (Beijing) Information Technology Co., Ltd. (“Beijing WFOE”) October 28, 2015 Beijing 100 % Technology development and service, sale of products Shenzhen Xiaoying Puhui Technology Co., Ltd. (“Shenzhen Puhui”) December 6, 2016 Shenzhen 100 % Technology development and service, sale of products Shenzhen Xiaoying Information Technology Co., Ltd. (“Shenzhen Xiaoying IT”) November 28, 2016 Shenzhen 100 % Technology development and service, sale of products VIEs Shenzhen Xiaoying Technology Co., Ltd. (“Shenzhen Xiaoying”) October 19, 2016 Shenzhen 100 % Technology development and service, sale of products Beijing Ying Zhong Tong Rongxun Technology Service Co., Ltd. (“Beijing Ying Zhong Tong”) March 27, 2015 Beijing 100 % Technology development and service, sale of products Shenzhen Tangren Financing Guarantee Co., Ltd. (“Shenzhen Tangren”) December 16, 2016 Shenzhen 100 % Guarantee services Shenzhen Beier Asset Management Co., Ltd ("Shenzhen Beier") July 1, 2018 Shenzhen 100 % Capital management Significant subsidiaries of the VIEs Shenzhen Ying Zhong Tong Financial Information Service Co., Ltd. (“Shenzhen Ying Zhong Tong”) March 7, 2014 Shenzhen 100 % Technology development and service, sale of products Shenzhen Ying Ai Gou Trading Co., Ltd. ("Shenzhen Ying Ai Gou") October 25, 2018 Shenzhen 100 % E-commerce services Shenzhen Xiaoying Microcredit Co., Ltd. (“Xiaoying Microcredit”) May 31,2021 Shenzhen 100 % Microcredit services |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
VIEs and Consolidated Trusts | |
Schedule of disaggregation of revenue by product | Loan Loan facilitation facilitation service- service-Direct Intermediary Post-origination Financing Other Model Model service income revenue Total 2019 (RMB) (RMB) (RMB) (RMB) (RMB) (RMB) Major products Xiaoying Credit Loan 1,834,813,952 223,668,549 314,767,947 396,039,771 71,024,093 2,840,314,312 Xiaoying Revolving Loan 63,667,334 13,174,930 8,163,362 12,361,021 9,069,408 106,436,055 Xiaoying Housing Loan 578,598 88,225 132,382 — 264,644 1,063,849 Internet Channel(1) 86,733,843 1,703,032 7,568,757 — 1,890,227 97,895,859 Other loan products 209,616 232,318 62,764 — 10,403 515,101 Other service(2) — — — — 41,824,819 41,824,819 Total 1,986,003,343 238,867,054 330,695,212 408,400,792 124,083,594 3,088,049,995 Loan Loan facilitation facilitation service- service-Direct Intermediary Post-origination Financing Other Model Model service income revenue Total 2020 (RMB) (RMB) (RMB) (RMB) (RMB) (RMB) Major products Xiaoying Credit Loan 1,190,088,566 19,755,482 176,229,908 538,869,175 39,537,661 1,964,480,792 Xiaoying Revolving Loan 76,444,207 21,571,881 26,000,468 73,991,011 597,911 198,605,478 Xiaoying Housing Loan — — — — 172,960 172,960 Internet Channel(1) — 45,449 1,611,453 3,291 11 1,660,204 Other loan products — — — — 226,720 226,720 Other service(2) — — — — 27,811,304 27,811,304 Total 1,266,532,773 41,372,812 203,841,829 612,863,477 68,346,567 2,192,957,458 Loan Loan facilitation facilitation service- service-Direct Intermediary Post-origination Financing Other Model Model service income revenue Total 2021 (RMB) (RMB) (RMB) (RMB) (RMB) (RMB) Major products Xiaoying Credit Loan 2,545,431,636 161,313 312,373,187 644,009,587 31,877,690 3,533,853,413 Xiaoying Revolving Loan — — 3,216,931 27,891,908 537,311 31,646,150 Other loan products — — — — 130,768 130,768 Other service(2) — — — — 60,834,774 60,834,774 Total 2,545,431,636 161,313 315,590,118 671,901,495 93,380,543 3,626,465,105 Loan Loan facilitation facilitation service- service-Direct Intermediary Post-origination Financing Other Model Model service income revenue Total 2021 (US$) (US$) (US$) (US$) (US$) (US$) Major products Xiaoying Credit Loan 399,433,769 25,314 49,018,169 101,059,157 5,002,305 554,538,714 Xiaoying Revolving Loan — — 504,807 4,376,849 84,316 4,965,972 Other loan products — — — — 20,520 20,520 Other services(2) — — — — 9,546,304 9,546,304 Total 399,433,769 25,314 49,522,976 105,436,006 14,653,445 569,071,510 (1) (2) |
Schedule of accounts receivable and contract assets | Accounts receivable Accounts from receivable from Accounts facilitation post-origination receivable from Allowance for As of December 31, 2020 services services financing income credit losses Total RMB RMB RMB RMB RMB Xiaoying Credit Loan 422,694,249 1,897,119 9,160,182 (37,529,193) 396,222,357 Xiaoying Revolving Loan 14,438,096 1,295,993 2,503,149 (1,152,487) 17,084,751 Total 437,132,345 3,193,112 11,663,331 (38,681,680) 413,307,108 Accounts Accounts receivable receivable Accounts and contract and contract receivable assests from assests from and contract facilitation post-origination assests from Allowance for As of December 31, 2021 services services financing income credit losses Total RMB RMB RMB RMB RMB Accounts receivable: Xiaoying Credit Loan 189,556,149 2,468,496 26,080,407 (8,092,404) 210,012,648 Contract assests: Xiaoying Credit Loan 529,311,240 25,931,783 — (17,775,553) 537,467,470 Total 718,867,389 28,400,279 26,080,407 (25,867,957) 747,480,118 . Accounts Accounts receivable receivable Accounts and contract and contract receivable assests from assests from and contract facilitation post-origination assests from Allowance for As of December 31, 2021 services services financing income credit losses Total US$ US$ US$ US$ US$ Accounts receivable: Xiaoying Credit Loan 29,745,496 387,361 4,092,585 (1,269,875) 32,955,567 Contract assests: Xiaoying Credit Loan 83,060,484 4,069,263 — (2,789,372) 84,340,375 Total 112,805,980 4,456,624 4,092,585 (4,059,247) 117,295,942 |
Schedule of aging of past due accounts receivables | As of December 31, 2020 Aging Not past-due 1 - 30 days 30 - 60 days Total RMB RMB RMB RMB Xiaoying Credit Loan 426,728,851 3,680,132 3,342,567 433,751,550 Xiaoying Revolving Loan 16,016,508 986,663 1,234,067 18,237,238 Total 442,745,359 4,666,795 4,576,634 451,988,788 As of December 31, 2021 Aging Not past-due 1 - 30 days 30 - 60 days Total RMB RMB RMB RMB Xiaoying Credit Loan 205,943,964 6,352,735 5,808,353 218,105,052 Total 205,943,964 6,352,735 5,808,353 218,105,052 As of December 31, 2021 Aging Not past-due 1 - 30 days 30 - 60 days Total US$ US$ US$ US$ Xiaoying Credit Loan 32,317,102 996,883 911,457 34,225,442 Total 32,317,102 996,883 911,457 34,225,442 |
Schedule of movement of provision for accounts receivable and contract assets | Provision for As of accounts receivable Charge-off for As of January 1, (net of recovery) accounts December 31, 2019 (1) receivable 2019 RMB RMB RMB RMB Xiaoying Credit Loan 206,575,845 230,589,301 (252,080,117) 185,085,029 Xiaoying Revolving Loan — 10,303,996 (2,479,118) 7,824,878 Xiaoying Housing Loan 119,616 — (119,616) — Internet Channel 133,707 — (133,707) — Other products 14,384,158 293,526 (14,677,684) — Total 221,213,326 241,186,823 (269,490,242) 192,909,907 As of Provision for Charge-off for As of January 1, Adoption of ASU accounts receivable accounts December 31, 2020 2016-13 (net of recovery) (1) receivable 2020 RMB RMB RMB RMB RMB Xiaoying Credit Loan 185,085,029 11,480,592 112,833,743 (271,870,171) 37,529,193 Xiaoying Revolving Loan 7,824,878 811,579 11,883,737 (19,367,707) 1,152,487 Internet Channel — 3,232,265 (3,232,265) — — Total 192,909,907 15,524,436 121,485,215 (291,237,878) 38,681,680 Provision for accounts receivable Charge-off for As of and contract assets accounts As of January 1, (net of recovery) receivable and December 31, 2021 (1) contract assets 2021 RMB RMB RMB RMB Accounts receivable: Xiaoying Credit Loan 37,529,193 46,512,298 (75,949,087) 8,092,404 Xiaoying Revolving Loan 1,152,487 1,612,419 (2,764,906) — Contract assests: Xiaoying Credit Loan — 29,123,093 (11,347,540) 17,775,553 Total 38,681,680 77,247,810 (90,061,533) 25,867,957 Provision for Charge-off for As of accounts receivable accounts As of January 1, and contract assets receivable and December 31, 2021 (net of recovery) (1) contract assets 2021 US$ US$ US$ US$ Accounts receivable: Xiaoying Credit Loan 5,889,150 7,298,794 (11,918,069) 1,269,875 Xiaoying Revolving Loan 180,850 253,024 (433,874) — Contract assests: Xiaoying Credit Loan — 4,570,049 (1,780,677) 2,789,372 Total 6,070,000 12,121,867 (14,132,620) 4,059,247 (1) The recoveries of charge-off of accounts receivables and contract assets amounted to RMB3,690,460, RMB4,243,262 and RMB850,597 (US$133,477) during the year ended December 31, 2019, 2020 and 2021, respectively. |
Schedule of estimated useful lives of property and equipment | Computer and transmission equipment 3 years Furniture and office equipment 5 years Motor vehicles 4 years Leasehold improvements Over the shorter of the lease term or expected useful lives |
Summary of remaining contractual maturities of the group's lease liabilities at the date of transition | As of December 31, 2021 RMB US$ Cash payments for operating leases 20,298,560 3,185,287 ROU assets obtained in exchange for operating lease liabilities — — |
Summary of remaining contractual maturities of the group's lease liabilities at the end of the current reporting period | Future lease payments under operating leases as of December 31, 2021 were as follows: Operating leases RMB US$ Year ending December 31, 2022 17,559,142 2,755,413 2023 4,753,618 745,946 2024 4,844,256 760,169 2025 and thereafter 3,503,856 549,831 Total future lease payments 30,660,872 4,811,359 Less: Imputed interest 6,310,358 990,232 Total lease liability balance 24,350,514 3,821,127 |
Schedule of accounts receivables due from institutional funding partner and institutional cooperators | As of December 31, As of December 31, 2020 2021 Financing guarantee company A Nil 15.5 % Institutional funding partner B Nil 11.0 % As of December 31, As of December 31, 2020 2021 Institutional cooperator A 43.9 % 30.7 % Institutional cooperator B * 23.1 % Institutional cooperator C 17.5 % * Institutional cooperator D 14.6 % * * Less than 10%. |
Xiaoying Housing Loan | |
VIEs and Consolidated Trusts | |
Schedule of aging of past due accounts receivables | As of December 31, 2020 Over due 1 – 2 Over due 2 – 3 Over due over 3 Aging years years years Total RMB RMB RMB RMB Xiaoying Housing Loans 3,043,453 8,691,640 35,755,344 47,490,437 As of December 31, 2021 Over due 1 – 2 Over due 2 – 3 Over due over 3 Aging years years years Total RMB RMB RMB RMB Xiaoying Housing Loans — 1,392,439 10,690,878 12,083,317 As of December 31, 2021 Over due Over due Over due Aging 1 – 2 years 2 – 3 years over 3 years Total US$ US$ US$ US$ Xiaoying Housing Loans — 218,504 1,677,632 1,896,136 |
Schedule of movement in provision for loans receivable | Provision for Loans Receivable As of December 31, 2019 from Xiaoying Housing Loans Charge-off As of December 31, 2020 RMB RMB RMB RMB 48,211,512 17,993,570 (66,205,082) — Reversal of provision for Loans Receivable Recoveries of As of December 31, 2020 from Xiaoying Housing Loans charge-off As of December 31, 2021 RMB RMB RMB RMB — (377,559) 377,559 — Reversal of provision for Loans Receivable Recoveries of As of December 31, 2020 from Xiaoying Housing Loans charge-off As of December 31, 2021 US$ US$ US$ US$ — (59,247) 59,247 — |
Xiaoying Credit Loans And Revolving Loans | |
VIEs and Consolidated Trusts | |
Schedule of aging of past due accounts receivables | As of December 31, 2020 Aging Not past-due 1 - 30 days 30 - 60 days Total RMB RMB RMB RMB Xiaoying Credit Loans 1,012,188,463 10,394,739 5,179,728 1,027,762,930 Xiaoying Revolving Loans 294,056,208 9,930,164 6,832,943 310,819,315 Total 1,306,244,671 20,324,903 12,012,671 1,338,582,245 As of December 31, 2021 Aging Not past-due 1 - 30 days 30 - 60 days Total RMB RMB RMB RMB Xiaoying Credit Loans 2,514,735,264 13,800,724 8,625,373 2,537,161,361 Xiaoying Revolving Loans 2,241,915 — 5,396 2,247,311 Total 2,516,977,179 13,800,724 8,630,769 2,539,408,672 As of December 31, 2021 Aging Not past-due 1 - 30 days 30 - 60 days Total US$ US$ US$ US$ Xiaoying Credit Loans 394,616,838 2,165,635 1,353,509 398,135,982 Xiaoying Revolving Loans 351,805 — 847 352,652 Total 394,968,643 2,165,635 1,354,356 398,488,634 |
Schedule of loans receivable from Xiaoying Credit Loans and Revolving Loans | Loans receivables from Xiaoying Credit Loans and Xiaoying Revolving Allowance for As of December 31, 2020 Loans credit losses Total RMB RMB RMB Xiaoying Credit Loan 1,027,762,930 (70,615,780) 957,147,150 Xiaoying Revolving Loan 310,819,315 (31,940,004) 278,879,311 Total 1,338,582,245 (102,555,784) 1,236,026,461 Loans receivables from Xiaoying Credit Loans and Xiaoying Revolving Allowance for As of December 31, 2021 Loans credit losses Total RMB RMB RMB Xiaoying Credit Loan 2,537,161,361 (54,725,057) 2,482,436,304 Xiaoying Revolving Loan 2,247,311 (610,684) 1,636,627 Total 2,539,408,672 (55,335,741) 2,484,072,931 Loans receivables from Xiaoying Credit Loans and Xiaoying Revolving Allowance for As of December 31, 2021 Loans credit losses Total US$ US$ US$ Xiaoying Credit Loan 398,135,982 (8,587,555) 389,548,427 Xiaoying Revolving Loan 352,652 (95,830) 256,822 Total 398,488,634 (8,683,385) 389,805,249 |
Schedule of movement in provision for loans receivable | Provision for loans receivable from Xiaoying Credit Loans and Revolving As of December Adoption of ASU Loans (net of As of December 31, 2019 2016-13 recovery) (1) Charge-off 31, 2020 RMB RMB RMB RMB RMB Xiaoying Credit Loans — — 74,934,783 (4,319,003) 70,615,780 Xiaoying Revolving Loans 24,709,468 4,205,046 152,275,243 (149,249,753) 31,940,004 Total 24,709,468 4,205,046 227,210,026 (153,568,756) 102,555,784 (Reversal of) provision for loans receivable from Xiaoying Credit Loans and As of December 31, Revolving Loans (net of As of December 31, 2020 recovery) (1) Charge-off 2021 RMB RMB RMB RMB Xiaoying Credit Loans 70,615,780 80,823,776 (96,714,499) 54,725,057 Xiaoying Revolving Loans 31,940,004 (4,428,608) (26,900,712) 610,684 Total 102,555,784 76,395,168 (123,615,211) 55,335,741 (Reversal of) provision for loans receivable from Xiaoying Credit Loans and As of December 31, Revolving Loans (net of As of December 31, 2020 recovery) (1) Charge-off 2021 US$ US$ US$ US$ Xiaoying Credit Loans 11,081,156 12,683,014 (15,176,615) 8,587,555 Xiaoying Revolving Loans 5,012,084 (694,945) (4,221,309) 95,830 Total 16,093,240 11,988,069 (19,397,924) 8,683,385 (1) |
Consolidated Trusts | |
VIEs and Consolidated Trusts | |
Schedule of financial statements | As of December 31, As of December 31, 2020 2021 2021 RMB RMB US$ Assets: Restricted cash 476,854,616 212,812,257 33,394,887 Accounts receivable and contract assets, net — 8,335,518 1,308,025 Loans receivable from Xiaoying Credit Loans and Xiaoying Revolving loans, net — 1,622,699,799 254,637,008 Loans at fair value 1,585,731,888 389,679,352 61,149,194 Prepaid expenses and other current assets 11,359,212 7,889,836 1,238,087 Total assets 2,073,945,716 2,241,416,762 351,727,201 Liabilities: Payable to investors at fair value 1,914,183,650 462,714,400 72,609,987 Payable to institutional funding partners — 1,466,068,260 230,058,102 Other tax payable 3,357,513 5,631,031 883,632 Accrued expenses and other current liabilities 74,596,014 3,259,339 511,460 Total liabilities 1,992,137,177 1,937,673,030 304,063,181 Year ended Year ended December 31, December 31, Year ended December 31, 2019 2020 2021 2021 RMB RMB RMB US$ Net revenue 340,613,941 331,300,043 285,859,862 44,857,650 Net income (loss) 227,051,351 (19,795,471) 105,610,429 16,572,581 Year ended Year ended December 31, December 31, Year ended December 31, 2019 2020 2021 2021 RMB RMB RMB US$ Net cash provided by (used in) operating activities 123,521,027 (20,179,042) 155,272,678 24,365,672 Net cash provided by (used in) investing activities (2,684,753,233) 1,139,220,723 (433,914,047) (68,090,582) Net cash provided by (used in) financing activities 3,006,349,475 (1,092,165,825) 14,599,010 2,290,904 |
VIEs and Consolidated Trusts | |
VIEs and Consolidated Trusts | |
Schedule of financial statements | As of December 31, As of December 31, 2020 2021 2021 RMB RMB US$ Assets: Cash and cash equivalents 170,390,218 212,766,581 33,387,719 Restricted cash 484,877,600 220,812,257 34,650,262 Accounts receivable and contract assets, net — 67,917,846 10,657,792 Financial investments 6,000,000 — — Loans receivable from Xiaoying Credit Loans and Xiaoying Revolving Loans, net — 2,458,221,481 385,748,593 Loan receivable from Xiaoying Housing Loans, net 47,490,437 12,083,317 1,896,136 Loans at fair value 1,585,731,888 389,679,352 61,149,194 Deposits to institutional cooperators, net 565,372 2,702,000 424,003 Prepaid expenses and other current assets, net 66,235,998 104,088,188 16,333,708 Financial guarantee derivative 297,928,066 11,816,799 1,854,314 Deferred tax assets, net 287,606,896 128,554,651 20,173,030 Long-term investments 292,115,200 556,571,016 87,338,138 Property and equipment, net 6,220,398 2,673,157 419,477 Intangible assets, net 30,431,482 29,554,089 4,637,681 Other non-current assets 6,914,006 4,850,671 761,176 Total assets 3,282,507,561 4,202,291,405 659,431,223 Liabilities: Payable to investors at fair value 1,914,183,650 462,714,400 72,609,987 Payable to institutional funding partners — 1,466,068,260 230,058,102 Financial guarantee derivative 130,442,090 565,953,269 88,810,418 Short-term bank borrowings 18,700,000 — — Accrued payroll and welfare 10,017,308 8,959,248 1,405,902 Other tax payable 37,103,700 100,333,129 15,744,457 Income tax payable 48,349,593 8,189,833 1,285,164 Accrued expenses and other current liabilities 230,564,165 85,485,440 13,414,531 Other non-current liabilities 1,739,541 — — Total liabilities 2,391,100,047 2,697,703,579 423,328,561 Year ended Year ended December 31, December 31, Year ended December 31, 2019 2020 2021 2021 RMB RMB RMB US$ Net revenue 2,650,594,409 754,755,127 1,388,255,858 217,847,638 Net income (loss) (14,609,225) (180,518,614) 695,892,749 109,200,756 Year ended Year ended December 31, December 31, Year ended December 31, 2019 2020 2021 2021 RMB RMB RMB US$ Net cash provided by (used in) operating activities 442,501,953 (190,951,068) 485,090,529 76,121,289 Net cash provided by (used in) investing activities (2,706,673,269) 1,133,193,197 (702,678,519) (110,265,593) Net cash provided by (used in) financing activities 2,808,349,475 (1,073,465,825) (4,100,990) (643,535) |
Fair value of assets and liab_2
Fair value of assets and liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair value of assets and liabilities | |
Schedule of fair value hierarchy for assets and liabilities measured at fair value on a recurring basis | Balance at Fair Level 1 Level 2 Level 3 Value December 31, 2020 (RMB) (RMB) (RMB) (RMB) Assets Loans at fair value — — 1,585,731,888 1,585,731,888 Financial guarantee derivative — — 297,928,066 297,928,066 Financial investments 6,000,000 — — 6,000,000 Total assets 6,000,000 — 1,883,659,954 1,889,659,954 Liabilities Payable to investors at fair value — — 1,914,183,650 1,914,183,650 Financial guarantee derivative — — 130,442,090 130,442,090 Total liabilities — — 2,044,625,740 2,044,625,740 Balance at Fair Level 1 Level 2 Level 3 Value December 31, 2021 (RMB) (RMB) (RMB) (RMB) Assets Loans at fair value — — 389,679,352 389,679,352 Financial guarantee derivative — — 11,816,799 11,816,799 Total assets — — 401,496,151 401,496,151 Liabilities Payable to investors at fair value — — 462,714,400 462,714,400 Financial guarantee derivative — — 565,953,269 565,953,269 Total liabilities — — 1,028,667,669 1,028,667,669 Balance at Fair Level 1 Level 2 Level 3 Value December 31, 2021 (US$) (US$) (US$) (US$) Assets Loans at fair value — — 61,149,194 61,149,194 Financial guarantee derivative — — 1,854,314 1,854,314 Total assets — — 63,003,508 63,003,508 Liabilities Payable to investors at fair value — — 72,609,987 72,609,987 Financial guarantee derivative — — 88,810,418 88,810,418 Total liabilities — — 161,420,405 161,420,405 |
Schedule of financial guarantee derivative movement activities | For loans facilitated in For loans facilitated in 2019 2020 Total Year ended December 31, 2020 RMB RMB RMB Balance at December 31, 2019 (719,962,262) — (719,962,262) Estimated payment to financial institutional cooperators based on the pre-agreed Cap(1) — 1,268,778,377 1,268,778,377 Less: Initially estimated net guarantee service fee to be collected(2) — 1,151,250,106 1,151,250,106 Add : Subsequent changes in estimated net guarantee service fee to be collected for outstanding loans(3) 57,152,814 (41,440,640) 15,712,174 Change in fair value of financial guarantee derivative 57,152,814 76,087,631 133,240,445 Add: Guarantee service fee received from borrowers 818,427,767 622,533,675 1,440,961,442 Less: Compensation paid to financial institutional cooperators 155,618,319 996,549,372 1,152,167,691 Balance at December 31, 2020 — (297,928,066) (297,928,066) Potential maximum undiscounted amount payable (Remaining estimated payment to financial institutional cooperators based on the pre-agreed Cap at December 31, 2020) — 272,229,005 272,229,005 Changes in fair value related to balance outstanding at December 31, 2020 — 39,915,887 39,915,887 For loans facilitated in For loans facilitated in 2020 2021 Total Total Year ended December 31, 2021 RMB RMB RMB USD Balance at December 31, 2020 3,842,853 — 3,842,853 603,027 Estimated payment to financial institutional cooperators based on the pre-agreed Cap — 212,641,902 212,641,902 33,368,155 Less: Initially estimated net guarantee service fee to be collected — 201,562,969 201,562,969 31,629,628 Add : Subsequent changes in estimated net guarantee service fee to be collected for outstanding loans 1,044,741 1,731,660 2,776,401 435,678 Change in fair value of financial guarantee derivative 1,044,741 12,810,593 13,855,334 2,174,204 Add: Guarantee service fee received from borrowers 52,087,120 94,897,894 146,985,014 23,065,156 Less: Compensation paid to financial institutional cooperators 56,974,714 119,525,286 176,500,000 27,696,702 Balance at December 31, 2021 — (11,816,799) (11,816,799) (1,854,314) Potential maximum undiscounted amount payable (Remaining estimated payment to financial institutional cooperators based on the pre-agreed Cap at December 31, 2021) — 93,116,616 93,116,616 14,612,029 Changes in fair value related to balance outstanding at December 31, 2021 — 11,388,942 11,388,942 1,787,174 Note: (1) (2) (3) The following table sets forth the liability side of Group’s financial guarantee derivative movement activities for the years ended December 31, 2020 and 2021. For loans facilitated in 2020 Year ended December 31, 2020 RMB Balance at December 31, 2019 — Estimated payment to financial institutional cooperators based on the pre-agreed Cap (1) 527,660,148 Less: Initially estimated net guarantee service fee to be collected (2) 484,555,120 Add : Subsequent changes in estimated net guarantee service fee to be collected for outstanding loans (3) (12,675,358) Change in fair value of financial guarantee derivative 30,429,670 Add: Guarantee service fee received from borrowers 173,018,461 Less: Compensation paid to financial institutional cooperators 73,006,041 Balance at December 31, 2020 130,442,090 Potential maximum undiscounted amount payable (Remaining estimated payment to financial institutional cooperators based on the pre-agreed Cap at December 31, 2020) 454,654,107 Changes in fair value related to balance outstanding at December 31, 2020 21,496,996 For loans facilitated in For loans facilitated in 2020 2021 Total Total Year ended December 31, 2021 RMB RMB RMB USD Balance at December 31, 2020 (171,328,829) — (171,328,829) (26,885,232) Estimated payment to financial institutional cooperators based on the pre-agreed Cap (1) — 1,927,017,013 1,927,017,013 302,391,020 Less: Initially estimated net guarantee service fee to be collected (2) — 1,827,304,009 1,827,304,009 286,743,874 Add : Subsequent changes in estimated net guarantee service fee to be collected for outstanding loans (3) 3,790,670 52,979,985 56,770,655 8,908,555 Change in fair value of financial guarantee derivative 3,790,670 152,692,989 156,483,659 24,555,701 Add: Guarantee service fee received from borrowers 837,446,557 1,147,827,202 1,985,273,759 311,532,775 Less: Compensation paid to financial institutional cooperators 669,908,398 734,566,922 1,404,475,320 220,392,826 Balance at December 31, 2021 — 565,953,269 565,953,269 88,810,418 Potential maximum undiscounted amount payable (Remaining estimated payment to financial institutional cooperators based on the pre-agreed Cap at December 31, 2021) — 1,192,450,091 1,192,450,091 187,121,440 Changes in fair value related to balance outstanding at December 31, 2021 — 110,763,906 110,763,906 17,381,274 Note: (1) (2) (3) |
Schedule of outstanding loan balance, remaining weighted average contractual term and estimated default rate of the outstanding loans | As of As of As of December 31, December 31, December 31, 2020 2021 2021 RMB RMB US$ Outstanding loan balance 11,349,182,478 9,877,178,724 1,549,944,877 Remaining weighted average contractual term (Month) 8.16 6.76 6.76 Net cumulative expected loss rates (1) 5.75 % 7.74 % 7.74 % |
Schedule of significant unobservable inputs | December 31, 2020 December 31, 2021 Range of Inputs Range of Inputs Financial Instrument Unobservable Input Weighted-Average Weighted-Average Loans and payable to investors at fair value Discount rates 7.77 % 6.46 % Net cumulative expected loss rates (1) 5.88 % 5.92 % (1) Represents the net of default rate, prepayment rate and collection rate, expressed as a percentage of the loan volume. |
Schedule of loans receivable measured at fair value on recurring basis | RMB Changes in fair value related to balance Balance at Origination Balance at outstanding at December 31, of loan Collection of Reinvestment Change in December December 31, 2019 principal principal of principal fair value 31, 2020 2020 Xiaoying Credit Loan 2,782,332,885 1,521,546,428 (5,155,380,196) 2,494,613,045 (57,380,274) 1,585,731,888 5,031,830 RMB Changes in fair value related to balance Balance at Origination Balance at outstanding at December 31, of loan Collection of Reinvestment Change in December December 31, 2020 principal principal of principal fair value 31, 2021 2021 Xiaoying Credit Loan 1,585,731,888 422,081,700 (3,427,158,051) 1,816,290,599 (7,266,784) 389,679,352 (2,234,954) USD Changes in fair value related to balance Balance at Origination Balance at outstanding at December 31, of loan Collection of Reinvestment Change in December December 31, 2020 principal principal of principal fair value 31, 2021 2021 Xiaoying Credit Loan 248,835,936 66,233,829 (537,795,884) 285,015,629 (1,140,317) 61,149,194 (350,713) |
Schedule of loans payable measured at fair value on recurring basis | Payable to investors at fair value of the Consolidated Trusts RMB Balance at December 31, 2019 3,006,349,475 Initial contribution 1,537,760,000 Principal payment (2,629,925,825) Changes in fair value — Balance at December 31, 2020 1,914,183,650 Changes in fair value related to balance outstanding at December 31, 2020 — Payable to investors at fair value of the Consolidated Trusts RMB US$ Balance at December 31, 2020 1,914,183,650 300,377,185 Initial contribution 454,490,000 71,319,399 Principal payment (1,905,959,250) (299,086,597) Changes in fair value — — Balance at December 31, 2021 462,714,400 72,609,987 Changes in fair value related to balance outstanding at December 31, 2021 — — |
Prepaid expenses and other cu_2
Prepaid expenses and other current assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Prepaid expenses and other current assets | |
Summary of prepaid expenses and other current assets | As of December 31, As of December 31, 2020 2021 2021 RMB RMB US$ Earnings rights associated with loan assets(1) 258,012,040 99,235,400 15,572,200 Prepaid expenses(2) 57,084,166 19,325,954 3,032,664 Input VAT to be deducted 64,367,796 63,867,418 10,022,192 Interest receivable of Consolidated Trusts 11,359,212 7,889,836 1,238,087 Dividend receivable(3) — 15,000,000 2,353,827 Advance to employee 1,510,410 1,205,085 189,104 Others 11,442,695 6,603,785 1,036,278 Total prepaid expenses and other current assets 403,776,319 213,127,478 33,444,352 (1) |
Schedule of movement of the allowances for the credit losses for earnings rights associated with the loan assets | Reversal of provision of credit losses for As of earnings rights As of December 31, associated with the loan December 31, 2020 assets 2021 RMB RMB RMB Total 1,987,960 (1,223,360) 764,600 Reversal of provision of credit losses for As of earnings rights As of December 31, associated with the loan December 31, 2020 assets 2021 US$ US$ US$ Total 311,954 (191,972) 119,982 (2) Prepaid expenses mainly relate to prepaid service fee to the Group’s service providers. (3) The amount represents dividend receivable from Jiangxi Ruijing, one of the Group’s associates. |
Deposits to institutional coo_2
Deposits to institutional cooperators, net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deposits to institutional cooperators, net | |
Schedule of deposits to cooperators | As of December 31, As of December 31, 2020 2021 2021 RMB RMB US$ Deposits to cooperators 918,241,497 1,502,433,446 235,764,593 Provision for credit losses on deposits to institutional cooperators (10,318,117) (2,026,696) (318,033) Deposits to cooperators, net 907,923,380 1,500,406,750 235,446,560 |
Schedule of movement of the provision for deposits to institutional co-operators | Reversal of provision for As of credit losses on Charge-off for As of December 31, deposits to deposits to December 31, 2020 institutional cooperators institutional cooperators 2021 RMB RMB RMB RMB Deposits to institutional cooperators 10,318,117 (8,291,421) — 2,026,696 Reversal of provision for As of credit losses on Charge-off for As of December 31, deposits to deposits to December 31, 2020 institutional cooperators institutional cooperators 2021 US$ US$ US$ US$ Deposits to institutional cooperators 1,619,138 (1,301,105) — 318,033 |
Property and equipment, net (Ta
Property and equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property and equipment, net | |
Schedule of property and equipment, net | As of December 31, As of December 31, 2020 2021 2021 RMB RMB US$ Computer and transmission equipment 22,107,077 19,521,668 3,063,376 Furniture and office equipment 3,663,257 2,781,360 436,456 Leasehold improvements 21,682,197 22,803,702 3,578,398 Motor vehicles 816,103 816,103 128,064 Total property and equipment 48,268,634 45,922,833 7,206,294 Accumulated depreciation (37,132,035) (39,734,571) (6,235,221) Property and equipment, net 11,136,599 6,188,262 971,073 |
Intangible assets, net (Tables)
Intangible assets, net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Intangible assets | |
Schedule of intangible assets | Weighted Average As of Remaining December 31, As of December 31, Amortization 2020 2021 2021 Period in Years RMB RMB US$ Licenses (1) 26,600,000 26,600,000 4,174,120 NA Software and others 15,438,530 16,735,406 2,626,150 3.03 Accumulated amortization (4,598,123) (6,518,422) (1,022,883) Intangible assets, net 37,440,407 36,816,984 5,777,388 (1) |
Financial investments (Tables)
Financial investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Financial investments | |
Schedule of carrying amount of investments in VC funds | As of December 31, 2021 2021 RMB US$ Opening balance — — Contribution 82,843,800 13,000,000 Upward adjustment — — Downward adjustments including impairment — — Ending Balance 82,843,800 13,000,000 |
Long-term investments (Tables)
Long-term investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Long-term investments | |
Summary of combined financial information for the investee companies | As of December 31, As of December 31, 2020 2021 2021 RMB RMB US$ Assets: Cash and cash equivalents 1,090,349,265 327,483,767 51,389,349 Financial investments 3,361,800,611 4,291,549,384 673,437,747 Prepaid expenses and other current assets, net 90,141,356 1,331,030,237 208,867,690 Long-term investments — 538,864,786 84,559,644 Other non-current assets 18,428,513 29,069,461 4,561,633 Total assets 4,560,719,745 6,517,997,635 1,022,816,063 Liabilities: Short-term borrowings 118,754,431 136,611,562 21,437,335 Accrued expenses and other current liabilities 742,087,584 742,552,522 116,522,694 Long-term borrowings 1,937,000,000 2,611,819,014 409,851,397 Other non-current liabilities 86,280 5,738,967 900,569 Total liabilities 2,797,928,295 3,496,722,065 548,711,995 Year ended December 31, Year ended December 31, 2020 2021 2021 RMB RMB US$ Net revenues 115,828,103 315,420,375 49,496,340 Net income 72,275,985 123,545,201 19,386,938 |
Accrued expenses and other cu_2
Accrued expenses and other current liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accrued expenses and other current liabilities | |
Schedule of accrued expenses and other current liabilities | As of December 31, As of December 31, 2020 2021 2021 RMB RMB US$ Fund attributable to institutional funding partners (1) 16,485,383 68,931,284 10,816,823 Accrued interest payable of Consolidated Trusts 25,320,873 1,219,993 191,443 Professional fee payable 27,648,350 25,874,860 4,060,330 Commission fee payable(2) 101,285,353 81,862,576 12,846,025 Insurance fee payable(3) 65,906,706 14,360,705 2,253,508 Lease liabilities 16,871,785 12,331,166 1,935,029 Other accrued expenses 70,229,980 64,385,966 10,103,563 Total accrued expenses and other current liabilities 323,748,430 268,966,550 42,206,721 (1) (2) (3) |
Guarantee liabilities (Tables)
Guarantee liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Guarantee liabilities. | |
Schedule of movement of guarantee liabilities | RMB As of Provision at As of January 1, the inception Released on Contingent December 31, 2019 of new loans Net payout(1) expiration liability(2) 2019 Xiaoying Credit Loan 19,297,719 — (6,333,472) (3,366,501) 289,211 9,886,957 Xiaoying Housing Loan 1,600,482 184,036 97,593 (1,752,115) — 129,996 Internet Channel — — — — 7,458,350 7,458,350 Total 20,898,201 184,036 (6,235,879) (5,118,616) 7,747,561 17,475,303 RMB As of Provision at As of January 1, Adoption of the inception Released on Contingent December 31, 2020 ASU 2016-13 of new loans Net payout(1) expiration liability 2020 Xiaoying Credit Loan 9,886,957 168,385 — 9,192,069 (14,162,703) 55,034 5,139,742 Xiaoying Housing Loan 129,996 2,214 — 42,660 (174,870) — — Internet Channel 7,458,350 127,023 — (3,761,403) — 825,914 4,649,884 Total 17,475,303 297,622 — 5,473,326 (14,337,573) 880,948 9,789,626 RMB Reversal of As of Provision at provision for As of January 1, the inception Released on contingent December 31, 2021 of new loans Net payout(1) expiration liability 2021 Xiaoying Credit Loan 5,139,742 — 7,821,975 (12,961,717) — — Internet Channel 4,649,884 — (4,625,600) — (24,284) — Total 9,789,626 — 3,196,375 (12,961,717) (24,284) — USD Reversal of As of Provision at provision for As of January 1, the inception Released on contingent December 31, 2021 of new loans Net payout (1) expiration liability 2021 Xiaoying Credit Loan 806,538 — 1,227,439 (2,033,976) — — Internet Channel 729,668 — (725,858) — (3,811) — Total 1,536,206 — 501,581 (2,033,976) (3,811) — (1) (2) |
Schedule of maximum potential undiscounted future payments by product, remaining weighted average contractual loan term, and estimated net default rates | Remaining Maximum potential Maximum potential weighted undiscounted future undiscounted future average payment payment contractual Estimated net As of December 31, 2020 (RMB) (USD) term (Month) default rate Xiaoying Credit Loan 10,560,672 1,618,494 3.04 26.06 % Internet Channel (1) 4,649,885 712,626 2.21 100 % Total 15,210,557 2,331,120 (1) |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income taxes | |
Schedule of current and deferred component of income tax expenses | Year ended Year ended December 31, December 31, Year ended December 31, 2019 2020 2021 2021 RMB RMB RMB US$ Current tax expense (benefit) 71,809,290 (157,326,719) 35,315,597 5,541,788 Deferred tax expense (benefit) (164,911,933) (142,551,916) 333,420,104 52,320,890 Total income tax expense (benefit) (93,102,643) (299,878,635) 368,735,701 57,862,678 |
Schedule of pre-tax income for different jurisdiction | Year ended Year ended December 31, December 31, Year ended December 31, 2019 2020 2021 2021 RMB RMB RMB US$ Cayman Islands (9,978,594) (15,160,941) (6,463,771) (1,014,307) Hong Kong entities (140,208) 911,529 948,973 148,915 PRC entities 674,034,252 (1,587,284,724) 1,196,315,182 187,727,958 Total 663,915,450 (1,601,534,136) 1,190,800,384 186,862,566 |
Schedule of reconciliation between the income taxes expense computed by applying the PRC tax rate and the actual provision for income taxes | Year ended Year ended December 31, December 31, Year ended December 31, 2019 2020 2021 2021 RMB RMB RMB US$ Expected tax at PRC rate 165,978,862 (400,383,534) 297,700,096 46,715,642 Other expenses not deductible for income tax purposes 27,243,710 26,628,325 24,325,078 3,817,136 Share based compensation expense not deductible for income tax purposes 39,101,140 20,035,035 22,108,693 3,469,336 Effect of tax holiday and preferential tax rate(1) (279,823,276) 2,160,562 (25,716,398) (4,035,464) Effect of different tax rate of subsidiary operation in other jurisdictions 2,853,547 3,712,755 1,535,280 240,919 Effect of change in tax rate — (1,547,465) — — Research and development tax deduction (12,657,389) — (14,040,027) (2,203,187) Unrecognized tax benefits for prior years' transfer pricing arrangement — 32,092,388 (22,239,451) (3,489,855) Tax on undistributed loss of VIEs (46,419,145) — — — Valuation allowance movement 4,451,281 9,155,075 99,384,200 15,595,550 Others 6,168,627 8,268,224 (14,321,770) (2,247,399) Total (93,102,643) (299,878,635) 368,735,701 57,862,678 (1) The aggregate amount and per share effect of the tax holiday and preferential tax rate are as follows: |
Schedule of aggregate amount and per share effect of the tax holiday and preferential tax rate | Year ended Year ended December 31, December 31, Year ended December 31, 2019 2020 2021 2021 RMB RMB RMB US$ The aggregate amount tax benefit(expense) of the tax holiday and preferential tax rate 279,823,276 (2,160,562) 25,716,398 4,035,464 The aggregate effect on basic and diluted net income per share: —Basic 0.89 (0.01) 0.08 0.01 —Diluted 0.88 (0.01) 0.08 0.01 |
Schedule of tax effects of temporary differences that give rise to the deferred tax balances | As of December 31, As of December 31, 2020 2021 2021 RMB RMB US$ Deferred tax assets: Long-term investments 5,325,000 5,325,000 835,609 Accrued expenses 27,280,677 36,045,445 5,656,317 Accounts receivable and contract assets 79,593,687 28,982,373 4,547,967 Guarantee liabilities 62,048,651 1,017,108 159,606 Financial guarantee derivatives 157,281,000 199,865,748 31,363,297 Loan receivable from Xiaoying Housing Loans 16,551,270 16,456,881 2,582,444 Loans receivable from Xiaoying Credit Loans and Xiaoying Revolving Loans 60,479,731 79,578,524 12,487,607 Operating loss carryforwards 214,313,889 43,644,917 6,848,840 Earnings rights associated with loan assets 496,990 191,150 29,996 Deposits to institutional cooperators 2,579,529 506,674 79,508 Investment in Consolidated Trusts 808,113 11,509,170 1,806,040 Lease liabilities 9,479,662 6,599,483 1,035,602 Total deferred tax assets 636,238,199 429,722,473 67,432,833 Valuation allowance (14,010,030) (113,394,230) (17,794,029) Total deferred tax assets, net of valuation allowance 622,228,169 316,328,243 49,638,804 Deferred tax liabilities: Property and equipment 581,854 488,150 76,601 Long-term investments 6,778,801 4,142,756 650,088 Right-of-use assets 9,214,921 6,299,837 988,583 Investment in Consolidated Partnerships — 30,528,966 4,790,661 Total deferred tax liabilities 16,575,576 41,459,709 6,505,933 |
Schedule of movement of the valuation allowance | As of December 31, As of December 31, 2020 2021 2021 RMB RMB US$ Balance as of January 1 (4,854,955) (14,010,030) (2,198,479) Addition (9,155,075) (99,384,200) (15,595,550) Balance as of December 31 (14,010,030) (113,394,230) (17,794,029) |
Schedule of roll-forward of unrecognized tax benefits | Year ended December 31, Year ended December 31, 2020 2021 2021 RMB RMB US$ Balance at beginning of the year 246,394,607 159,483,176 25,026,390 Additions for tax positions taken in prior years 32,092,388 — — Additions for tax positions taken in current year 34,252,413 19,087,010 2,995,168 Reductions for tax positions taken in prior years (153,256,232) (139,959,819) (21,962,750) Balance at end of the year 159,483,176 38,610,367 6,058,808 |
Schedule of accrued interest and penalties related to income taxes | Year ended December 31, Year ended December 31, 2020 2021 2021 RMB RMB US$ Accrued interest and penalties 11,885,624 1,154,145 181,111 |
Net income (loss) per share a_2
Net income (loss) per share and net income (loss) attributable to common stockholders (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Net income (loss) per share and net income (loss) attributable to common stockholders | |
Schedule of computation of the basic and diluted net income (loss) per share | Year ended Year ended December 31, December 31, Year ended December 31, 2019 2020 2021 2021 RMB RMB RMB US$ Net income (loss) attributable to X Financial 774,276,129 (1,308,502,575) 825,407,023 129,524,374 Shares (denominator): Weighted average number of ordinary shares used in computing basic EPS 313,757,887 321,236,089 329,230,273 329,230,273 Basic net income (loss) per share 2.47 (4.07) 2.51 0.39 Diluted effects of stock options and RSUs 5,989,505 — 7,650,808 7,650,808 Weighted average number of ordinary shares used in computing diluted EPS 319,747,392 321,236,089 336,881,082 336,881,082 Diluted net income (loss) per share 2.42 (4.07) 2.45 0.38 |
Schedule of instruments not included in the computation of diluted income (loss) per share | Year ended Year ended Year ended December 31, December 31, December 31, 2019 2020 2021 Stock options 52,405,826 52,198,603 32,139,614 Restricted stocks units 3,689,400 6,285,294 27,100,812 |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of assumptions used to determine fair value of stock options granted | January 25, June 29, May 3, October 11, April 30, May 9, October 31, April 30, 2015 2015 2016 2017 2018 2018 2018 2019 RMB RMB RMB RMB RMB RMB RMB RMB Fair value of underlying ordinary shares 4.91 9.66 16.98 30.29 41.33 38.14 26.74 16.65 Exercise Price 0.27 0.27 0.27 - 10.71 0.27 - 27.02 25.42 30.27 27.93 31.96 Expected Volatility per annum (“p.a.”) 43.00 % 38.00 % 42.00 % 38.60 % 45.47 % 39.3 % 43.90 % 30.15 % Risk-Free Rate (p.a.) 1.81 % 2.33 % 1.81 % 2.35 % 2.96 % 2.94 % 3.15 % 2.97 % Exercise Multiple 2.5 2.5 2.5 2.5 2.5 5.58-38.33 2.5 NIL Dividend Yield (p.a.) NIL NIL NIL NIL NIL NIL NIL NIL Time to Maturity (Years) 10 10 10 10 10 5 10 10 |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of stock option activity | Intrinsic value of Number of Exercise Price Remaining options Options RMB Contractual RMB Outstanding, as of January 1, 2021 52,198,603 0.27-31.96 4.07-8.33 19,538,815 Granted — — — — Exercised 3,490,378 0.27 — — Forfeited/Cancelled 9,959,692 0.27-30.27 — — Outstanding, as of December 31, 2021 38,748,533 0.27-31.96 3.07-7.33 20,378,161 Vested and expected to vest as of December 31, 2021 38,748,533 0.27-31.96 3.07-7.33 20,378,161 Exercisable as of December 31, 2021 6,154,008 0.27-31.96 3.07-7.33 14,821,392 |
Schedule of allocated share-based compensation expense | Year ended Year ended December 31, December 31, Year ended December 31, 2019 2020 2021 2021 RMB RMB RMB US$ Origination and servicing 88,671,136 35,885,086 21,345,909 3,349,639 General and administrative 60,445,030 32,794,113 48,655,490 7,635,108 Sales and marketing 1,827,414 1,909,511 1,847,900 289,976 |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of stock option activity | Weighted-Average Grant-Date Number of Fair Value Restricted Shares RMB Outstanding, as of January 1, 2021 7,535,294 6.49 Granted 26,657,998 4.97 Vested 1,469,751 6.19 Forfeited 307,926 5.65 Outstanding, as of December 31, 2021 32,415,615 5.18 |
Schedule of allocated share-based compensation expense | Year ended Year ended December 31, December 31, Year ended December 31, 2019 2020 2021 2021 RMB RMB RMB US$ Origination and servicing 446,808 6,173,735 10,819,642 1,697,839 General and administrative 5,717,025 3,064,908 5,321,620 835,078 Sales and marketing 8,682 312,785 444,211 69,706 |
CONDENSED FINANCIAL INFORMATI_2
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY | |
CONDENSED BALANCE SHEETS OF PARENT COMPANY | As of December 31, As of December 31, 2020 2021 2021 RMB RMB US$ Assets: Cash and cash equivalents 6,041,648 4,771,477 748,749 Prepaid expenses and other current assets 1,862,127 371,460 58,290 Amount due from subsidiaries and VIEs 1,008,811,092 1,077,449,147 169,075,283 Investments in subsidiaries and VIEs 2,067,921,292 2,899,792,086 455,040,656 Total assets 3,084,636,159 3,982,384,170 624,922,978 Liabilities: Accrued expenses and other current liabilities 9,880,123 5,489,209 861,377 Total liabilities 9,880,123 5,489,209 861,377 Equity: Common shares 202,870 206,793 32,450 Additional paid-in capital 3,068,045,239 3,159,522,737 495,798,063 Retained earnings (accumulated deficit) (14,551,146) 810,855,877 127,240,981 Accumulated other comprehensive income 21,059,073 6,309,554 990,107 Total equity 3,074,756,036 3,976,894,961 624,061,601 Total liabilities and equity 3,084,636,159 3,982,384,170 624,922,978 |
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) OF PARENT COMPANY | Year ended Year ended December 31, December 31, Year ended December 31, 2019 2020 2021 2021 RMB RMB RMB US$ General and administrative expenses (14,451,949) (18,494,095) (9,577,576) (1,502,931) Interest income 77,030 4,416 590 93 Equity in profit (loss) of subsidiaries and VIEs 785,350,473 (1,293,341,634) 831,870,794 130,538,680 Other income, net 3,300,575 3,328,738 3,113,215 488,531 Net income (loss) 774,276,129 (1,308,502,575) 825,407,023 129,524,373 Other comprehensive income (loss) 14,606,045 (46,041,729) (14,749,519) (2,314,521) Comprehensive income (loss) 788,882,174 (1,354,544,304) 810,657,504 127,209,852 |
CONDENSED STATEMENT OF CASH FLOWS OF PARENT COMPANY | Year ended Year ended December 31, December 31, Year ended December 31, 2019 2020 2021 2021 RMB RMB RMB US$ Net cash by used in operating activities (10,004,797) (14,708,389) (8,630,238) (1,354,273) (Loan to) Received from subsidiaries and VIEs (199,179,173) 6,818,106 4,545,040 713,216 Net cash provided (used in) investing activities (199,179,173) 6,818,106 4,545,040 713,216 Contribution from shareholders 6,035,665 543,594 2,959,511 464,412 Dividend paid (103,196,981) — — — Net cash provided by (used in) financing activities (97,161,316) 543,594 2,959,511 464,412 Effect of foreign exchange rate changes 10,892,988 (663,453) (144,484) (22,672) Net decrease in cash and cash equivalents (295,452,298) (8,010,142) (1,270,171) (199,317) Cash and cash equivalents, beginning of year 309,504,088 14,051,790 6,041,648 948,066 Cash and cash equivalents, end of year 14,051,790 6,041,648 4,771,477 748,749 |
Organization and principal ac_3
Organization and principal activities (Details) $ / shares in Units, ¥ in Billions | Aug. 07, 2015USD ($)shares | Sep. 30, 2018$ / sharesshares | Dec. 31, 2017subsidiary | Mar. 31, 2018subsidiary | Nov. 30, 2021CNY (¥) | Dec. 31, 2021 | Jun. 30, 2017CNY (¥) | Jan. 05, 2015 | Mar. 31, 2014 |
Subsidiaries, VIEs and subsidiaries of the VIEs | |||||||||
Equity financing | ¥ | ¥ 1 | ||||||||
IPO | ADS | |||||||||
Subsidiaries, VIEs and subsidiaries of the VIEs | |||||||||
Issuance of new shares | 11,763,478 | ||||||||
Issuance of new shares (in dollars per share) | $ / shares | $ 9.50 | ||||||||
IPO | Class A ordinary shares | |||||||||
Subsidiaries, VIEs and subsidiaries of the VIEs | |||||||||
Issuance of new shares | 23,526,956 | ||||||||
Shenzhen Xiaoying | |||||||||
Subsidiaries, VIEs and subsidiaries of the VIEs | |||||||||
Ownership percentage in variable interest entity's | 100.00% | ||||||||
Shenzhen Xiaoying Microcredit Co., Ltd | |||||||||
Subsidiaries, VIEs and subsidiaries of the VIEs | |||||||||
Capital Contribution | ¥ | ¥ 1 | ||||||||
Beijing Ying Zhong Tong | |||||||||
Subsidiaries, VIEs and subsidiaries of the VIEs | |||||||||
Ownership percentage in variable interest entity's | 100.00% | ||||||||
Shenzhen Tangren | |||||||||
Subsidiaries, VIEs and subsidiaries of the VIEs | |||||||||
Ownership percentage in variable interest entity's | 100.00% | ||||||||
Shenzhen Beier | |||||||||
Subsidiaries, VIEs and subsidiaries of the VIEs | |||||||||
Ownership percentage in variable interest entity's | 100.00% | ||||||||
Shenzhen Ying Zhong Tong | |||||||||
Subsidiaries, VIEs and subsidiaries of the VIEs | |||||||||
Ownership percentage in variable interest entity's | 100.00% | ||||||||
Shenzhen Ying Ai Gou | |||||||||
Subsidiaries, VIEs and subsidiaries of the VIEs | |||||||||
Ownership percentage in variable interest entity's | 100.00% | ||||||||
Xiaoying Microcredit | |||||||||
Subsidiaries, VIEs and subsidiaries of the VIEs | |||||||||
Ownership percentage in variable interest entity's | 100.00% | ||||||||
Mr. Tang Yue (Founder and CEO) | |||||||||
Subsidiaries, VIEs and subsidiaries of the VIEs | |||||||||
Issuance of new shares | 40,000,000 | ||||||||
Equity interest acquired (in percentage) | 50.00% | 50.00% | |||||||
YZT (HK) Limited | |||||||||
Subsidiaries, VIEs and subsidiaries of the VIEs | |||||||||
Ownership percentage in subsidiary | 100.00% | ||||||||
Beijing WFOE | |||||||||
Subsidiaries, VIEs and subsidiaries of the VIEs | |||||||||
Ownership percentage in subsidiary | 100.00% | ||||||||
Shenzhen Puhui | |||||||||
Subsidiaries, VIEs and subsidiaries of the VIEs | |||||||||
Ownership percentage in subsidiary | 100.00% | ||||||||
Shenzhen Xiaoying IT | |||||||||
Subsidiaries, VIEs and subsidiaries of the VIEs | |||||||||
Ownership percentage in subsidiary | 100.00% | ||||||||
Unrelated third party investor | |||||||||
Subsidiaries, VIEs and subsidiaries of the VIEs | |||||||||
Issuance of new shares | 38,095,238 | ||||||||
Issuance of new shares, Consideration | $ | $ 60,000,000 | ||||||||
Shenzhen Xiaoying | Beijing WFOE | |||||||||
Subsidiaries, VIEs and subsidiaries of the VIEs | |||||||||
Number of subsidiaries acquired | subsidiary | 2 | ||||||||
Shenzhen Ying Zhong Tong | Shenzhen Puhui | |||||||||
Subsidiaries, VIEs and subsidiaries of the VIEs | |||||||||
Number of subsidiaries acquired | subsidiary | 4 |
Summary of significant accoun_4
Summary of significant accounting policies - Variable interest entity (Details) - Beijing WFOE | 12 Months Ended |
Dec. 31, 2021 | |
Shareholders' Voting Rights Proxy Agreement | |
Significant accounting policies | |
Power of attorney, term | 10 years |
Notice period for termination of agreement | 30 days |
Power of attorney, renewal period | 1 year |
Executive Call Option Agreement | |
Significant accounting policies | |
Term of agreement | 10 years |
Extended term of agreement | 10 years |
Exclusive Business Cooperation Agreements | |
Significant accounting policies | |
Term of agreement | 10 years |
Extended term of agreement | 10 years |
Percentage of consolidated profit, base for fees on technical support and consulting services | 100.00% |
Summary of significant accoun_5
Summary of significant accounting policies - Consolidated Trusts (Details) | 12 Months Ended | ||||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2018CNY (¥) | |
Assets: | |||||||
Cash and cash equivalents | ¥ 584,762,494 | ¥ 746,388,408 | ¥ 1,005,980,251 | $ 91,761,996 | |||
Restricted cash | 407,276,342 | 852,134,486 | 514,323,181 | 63,910,545 | |||
Accounts receivable and contract assets, net | 747,480,118 | 413,307,108 | 117,295,942 | ||||
Financial investments | 82,843,800 | 6,000,000 | 13,000,000 | ||||
Loans receivable from Xiaoying | 2,484,072,931 | 1,236,026,461 | 389,805,249 | ||||
Loans at fair value | 389,679,352 | 1,585,731,888 | 61,149,194 | ||||
Deposits to institutional cooperators, net | 1,500,406,750 | 907,923,380 | 235,446,560 | ||||
Prepaid expenses and other current assets | 213,127,478 | 403,776,319 | 33,444,352 | ||||
Financial guarantee derivative | 11,816,799 | 297,928,066 | 1,854,314 | ||||
Deferred tax assets, net | 316,328,243 | 622,228,169 | 49,638,804 | ||||
Long-term investments | 560,038,353 | 295,615,200 | 87,882,238 | ||||
Property and equipment, net | 6,188,262 | 11,136,599 | 971,073 | ||||
Intangible assets, net | 36,816,984 | 37,440,407 | 5,777,388 | ||||
Other non-current assets | 31,277,378 | 51,458,356 | 4,908,103 | ||||
Total assets | 7,342,738,892 | 7,498,009,708 | 1,152,235,961 | ||||
Liabilities: | |||||||
Payable to investors at fair value | 462,714,400 | 1,914,183,650 | 72,609,987 | ||||
Payable to institutional funding partners | 1,487,378,613 | 1,460,395,100 | 233,402,161 | ||||
Guarantee liabilities | 9,789,626 | 17,475,303 | $ 1,536,206 | ¥ 20,898,201 | |||
Financial guarantee derivative | 565,953,269 | 130,442,090 | 88,810,418 | ||||
Short-term bank borrowings | 166,500,000 | 350,545,000 | 26,127,483 | ||||
Accrued payroll and welfare | 44,605,137 | 34,780,834 | 6,999,519 | ||||
Other tax payable | 219,545,929 | 73,077,245 | 34,451,547 | ||||
Income tax payable | 117,148,450 | 75,916,903 | 18,383,148 | ||||
Accrued expenses and other current liabilities | 268,966,550 | 323,748,430 | 42,206,721 | ||||
Other non-current liabilities | 12,019,348 | 27,614,943 | 1,886,098 | ||||
Total liabilities | 3,365,843,931 | 4,421,966,056 | 528,174,360 | ||||
Net income (loss) | 825,406,545 | $ 129,524,299 | (1,308,461,441) | 774,475,992 | |||
Net cash provided by (used in) operating activities | 449,171,181 | 70,484,763 | (679,234,601) | 600,566,742 | |||
Net cash provided by (used in) investing activities | (2,347,593,831) | (368,388,700) | (3,704,848,130) | (3,079,780,993) | |||
Net cash provided by (used in) financing activities | 1,301,311,826 | 204,204,222 | 4,490,712,113 | 2,711,188,159 | |||
Xiaoying Housing Loan | |||||||
Assets: | |||||||
Loans receivable from Xiaoying | 12,083,317 | 47,490,437 | 1,896,136 | ||||
Liabilities: | |||||||
Guarantee liabilities | 129,996 | ¥ 1,600,482 | |||||
Xiaoying Credit Loans And Revolving Loans | |||||||
Assets: | |||||||
Loans receivable from Xiaoying | 2,484,072,931 | 1,236,026,461 | 389,805,249 | ||||
One of the subsidiaries | |||||||
Assets: | |||||||
Loans receivable from Xiaoying | 141,326,511 | ||||||
Consolidated Trusts | |||||||
Assets: | |||||||
Restricted cash | 212,812,257 | 476,854,616 | 33,394,887 | ||||
Accounts receivable and contract assets, net | 8,335,518 | 1,308,025 | |||||
Loans receivable from Xiaoying | 1,622,699,799 | 254,637,008 | |||||
Loans at fair value | 389,679,352 | 1,585,731,888 | 61,149,194 | ||||
Prepaid expenses and other current assets | 7,889,836 | 11,359,212 | 1,238,087 | ||||
Total assets | 2,241,416,762 | 2,073,945,716 | 351,727,201 | ||||
Liabilities: | |||||||
Payable to investors at fair value | 462,714,400 | 1,914,183,650 | 72,609,987 | ||||
Payable to institutional funding partners | 1,466,068,260 | 230,058,102 | |||||
Other tax payable | 5,631,031 | 3,357,513 | 883,632 | ||||
Accrued expenses and other current liabilities | 3,259,339 | 74,596,014 | 511,460 | ||||
Total liabilities | 1,937,673,030 | 1,992,137,177 | 304,063,181 | ||||
Net revenue | 285,859,862 | 44,857,650 | 331,300,043 | 340,613,941 | |||
Net income (loss) | 105,610,429 | 16,572,581 | (19,795,471) | 227,051,351 | |||
Net cash provided by (used in) operating activities | 155,272,678 | 24,365,672 | (20,179,042) | 123,521,027 | |||
Net cash provided by (used in) investing activities | (433,914,047) | (68,090,582) | 1,139,220,723 | (2,684,753,233) | |||
Net cash provided by (used in) financing activities | 14,599,010 | 2,290,904 | (1,092,165,825) | 3,006,349,475 | |||
Consolidated Trusts | One of the subsidiaries | |||||||
Assets: | |||||||
Loans at fair value | 74,051,199 | 64,375,517 | |||||
VIEs and Consolidated Trusts | |||||||
Assets: | |||||||
Cash and cash equivalents | 212,766,581 | 170,390,218 | 33,387,719 | ||||
Restricted cash | 220,812,257 | 484,877,600 | 34,650,262 | ||||
Accounts receivable and contract assets, net | 67,917,846 | 10,657,792 | |||||
Financial investments | 6,000,000 | ||||||
Loans at fair value | 389,679,352 | 1,585,731,888 | 61,149,194 | ||||
Deposits to institutional cooperators, net | 2,702,000 | 565,372 | 424,003 | ||||
Prepaid expenses and other current assets | 104,088,188 | 66,235,998 | 16,333,708 | ||||
Financial guarantee derivative | 11,816,799 | 297,928,066 | 1,854,314 | ||||
Deferred tax assets, net | 128,554,651 | 287,606,896 | 20,173,030 | ||||
Long-term investments | 556,571,016 | 292,115,200 | 87,338,138 | ||||
Property and equipment, net | 2,673,157 | 6,220,398 | 419,477 | ||||
Intangible assets, net | 29,554,089 | 30,431,482 | 4,637,681 | ||||
Other non-current assets | 4,850,671 | 6,914,006 | 761,176 | ||||
Total assets | 4,202,291,405 | 3,282,507,561 | 659,431,223 | ||||
Liabilities: | |||||||
Payable to investors at fair value | 462,714,400 | 1,914,183,650 | 72,609,987 | ||||
Payable to institutional funding partners | 1,466,068,260 | 230,058,102 | |||||
Financial guarantee derivative | 565,953,269 | 130,442,090 | 88,810,418 | ||||
Short-term bank borrowings | 18,700,000 | ||||||
Accrued payroll and welfare | 8,959,248 | 10,017,308 | 1,405,902 | ||||
Other tax payable | 100,333,129 | 37,103,700 | 15,744,457 | ||||
Income tax payable | 8,189,833 | 48,349,593 | 1,285,164 | ||||
Accrued expenses and other current liabilities | 85,485,440 | 230,564,165 | 13,414,531 | ||||
Other non-current liabilities | 1,739,541 | ||||||
Total liabilities | 2,697,703,579 | 2,391,100,047 | 423,328,561 | ||||
Net revenue | 1,388,255,858 | 217,847,638 | 754,755,127 | 2,650,594,409 | |||
Net income (loss) | 695,892,749 | 109,200,756 | (180,518,614) | (14,609,225) | |||
Net cash provided by (used in) operating activities | 485,090,529 | 76,121,289 | (190,951,068) | 442,501,953 | |||
Net cash provided by (used in) investing activities | (702,678,519) | (110,265,593) | 1,133,193,197 | (2,706,673,269) | |||
Net cash provided by (used in) financing activities | ¥ (4,100,990) | $ (643,535) | ¥ (1,073,465,825) | ¥ 2,808,349,475 | |||
Percentage of consolidated revenues | 38.00% | 38.00% | 34.00% | 86.00% | |||
Percentage of consolidated total assets | 57.00% | 57.00% | 44.00% | ||||
Percentage of consolidated total liabilities | 80.00% | 80.00% | 54.00% | ||||
VIEs and Consolidated Trusts | Xiaoying Housing Loan | |||||||
Assets: | |||||||
Loans receivable from Xiaoying | ¥ 12,083,317 | ¥ 47,490,437 | 1,896,136 | ||||
VIEs and Consolidated Trusts | Xiaoying Credit Loans And Revolving Loans | |||||||
Assets: | |||||||
Loans receivable from Xiaoying | ¥ 2,458,221,481 | $ 385,748,593 |
Summary of significant accoun_6
Summary of significant accounting policies - Revenue recognition (Details) | 12 Months Ended | ||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | |
Revenue recognition | |||||
Number of business models | $ | 2 | ||||
Term of Loan | 1 year | 1 year | |||
Remaining unsatisfied performance obligations | ¥ 113,840,873 | ¥ 61,415,170 | ¥ 106,147,877 | $ 17,864,117 | |
Revenue recognized for obligations satisfied | $ 0 | 0 | 2,240,572 | ||
Total net revenue | 3,626,465,105 | 569,071,510 | 2,192,957,458 | 3,088,049,995 | |
Loan facilitation service-Direct Model | |||||
Revenue recognition | |||||
Total net revenue | 2,545,431,636 | 399,433,769 | 1,266,532,773 | 1,986,003,343 | |
Loan facilitation service-Intermediary Model | |||||
Revenue recognition | |||||
Total net revenue | 161,313 | 25,314 | 41,372,812 | 238,867,054 | |
Post-origination service | |||||
Revenue recognition | |||||
Total net revenue | 315,590,118 | 49,522,976 | 203,841,829 | 330,695,212 | |
Financing income | |||||
Revenue recognition | |||||
Total net revenue | 671,901,495 | 105,436,006 | 612,863,477 | 408,400,792 | |
Other revenue | |||||
Revenue recognition | |||||
Total net revenue | 93,380,543 | 14,653,445 | 68,346,567 | 124,083,594 | |
Xiaoying Credit Loans | |||||
Revenue recognition | |||||
Total net revenue | 3,533,853,413 | 554,538,714 | 1,964,480,792 | 2,840,314,312 | |
Xiaoying Credit Loans | Loan facilitation service-Direct Model | |||||
Revenue recognition | |||||
Total net revenue | 2,545,431,636 | 399,433,769 | 1,190,088,566 | 1,834,813,952 | |
Xiaoying Credit Loans | Loan facilitation service-Intermediary Model | |||||
Revenue recognition | |||||
Total net revenue | 161,313 | 25,314 | 19,755,482 | 223,668,549 | |
Xiaoying Credit Loans | Post-origination service | |||||
Revenue recognition | |||||
Total net revenue | 312,373,187 | 49,018,169 | 176,229,908 | 314,767,947 | |
Xiaoying Credit Loans | Financing income | |||||
Revenue recognition | |||||
Total net revenue | 644,009,587 | 101,059,157 | 538,869,175 | 396,039,771 | |
Xiaoying Credit Loans | Other revenue | |||||
Revenue recognition | |||||
Total net revenue | 31,877,690 | 5,002,305 | 39,537,661 | 71,024,093 | |
Xiaoying Revolving Loans | |||||
Revenue recognition | |||||
Loans held for sale | 2,484,072,931 | 1,236,026,461 | $ 389,805,249 | ||
Total net revenue | 31,646,150 | 4,965,972 | 198,605,478 | 106,436,055 | |
Xiaoying Revolving Loans | Loan facilitation service-Direct Model | |||||
Revenue recognition | |||||
Total net revenue | 76,444,207 | 63,667,334 | |||
Xiaoying Revolving Loans | Loan facilitation service-Intermediary Model | |||||
Revenue recognition | |||||
Total net revenue | 21,571,881 | 13,174,930 | |||
Xiaoying Revolving Loans | Post-origination service | |||||
Revenue recognition | |||||
Total net revenue | 3,216,931 | 504,807 | 26,000,468 | 8,163,362 | |
Xiaoying Revolving Loans | Financing income | |||||
Revenue recognition | |||||
Total net revenue | 27,891,908 | 4,376,849 | 73,991,011 | 12,361,021 | |
Xiaoying Revolving Loans | Other revenue | |||||
Revenue recognition | |||||
Total net revenue | 537,311 | 84,316 | 597,911 | 9,069,408 | |
Xiaoying Housing Loan | |||||
Revenue recognition | |||||
Total net revenue | 172,960 | 1,063,849 | |||
Xiaoying Housing Loan | Loan facilitation service-Direct Model | |||||
Revenue recognition | |||||
Total net revenue | 578,598 | ||||
Xiaoying Housing Loan | Loan facilitation service-Intermediary Model | |||||
Revenue recognition | |||||
Total net revenue | 88,225 | ||||
Xiaoying Housing Loan | Post-origination service | |||||
Revenue recognition | |||||
Total net revenue | 132,382 | ||||
Xiaoying Housing Loan | Other revenue | |||||
Revenue recognition | |||||
Total net revenue | 172,960 | 264,644 | |||
Internet Channel | |||||
Revenue recognition | |||||
Total net revenue | 1,660,204 | 97,895,859 | |||
Internet Channel | Loan facilitation service-Direct Model | |||||
Revenue recognition | |||||
Total net revenue | 86,733,843 | ||||
Internet Channel | Loan facilitation service-Intermediary Model | |||||
Revenue recognition | |||||
Total net revenue | 45,449 | 1,703,032 | |||
Internet Channel | Post-origination service | |||||
Revenue recognition | |||||
Total net revenue | 1,611,453 | 7,568,757 | |||
Internet Channel | Financing income | |||||
Revenue recognition | |||||
Total net revenue | 3,291 | ||||
Internet Channel | Other revenue | |||||
Revenue recognition | |||||
Total net revenue | 11 | 1,890,227 | |||
Other loan products | |||||
Revenue recognition | |||||
Total net revenue | 130,768 | 20,520 | 226,720 | 515,101 | |
Other loan products | Loan facilitation service-Direct Model | |||||
Revenue recognition | |||||
Total net revenue | 209,616 | ||||
Other loan products | Loan facilitation service-Intermediary Model | |||||
Revenue recognition | |||||
Total net revenue | 232,318 | ||||
Other loan products | Post-origination service | |||||
Revenue recognition | |||||
Total net revenue | 62,764 | ||||
Other loan products | Other revenue | |||||
Revenue recognition | |||||
Total net revenue | 130,768 | 20,520 | 226,720 | 10,403 | |
Other service | |||||
Revenue recognition | |||||
Total net revenue | 60,834,774 | 9,546,304 | 27,811,304 | 41,824,819 | |
Other service | Other revenue | |||||
Revenue recognition | |||||
Total net revenue | ¥ 60,834,774 | $ 9,546,304 | ¥ 27,811,304 | ¥ 41,824,819 |
Summary of significant accoun_7
Summary of significant accounting policies - Guarantee liabilities and Financial guarantee derivative (Details) | 12 Months Ended |
Dec. 31, 2021 | |
ZhongAn | |
Guarantee liabilities and Financial guarantee derivative | |
Period for compensation in case of default by borrowers | 2 days |
Summary of significant accoun_8
Summary of significant accounting policies - Accounts receivable and contract assets and allowance for uncollectible accounts receivable and contract assets (Details) | 12 Months Ended | ||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | |
Accounts, Notes and Loans Receivables | |||||
Allowance for doubtful accounts | ¥ (25,867,957) | ¥ (38,681,680) | ¥ (192,909,907) | $ (4,059,247) | |
Accounts receivable and contract assets, net | 747,480,118 | 413,307,108 | 117,295,942 | ||
Past-due accounts receivables | 218,105,052 | 451,988,788 | 34,225,442 | ||
Provision for accounts receivable and contract assets | |||||
Accounts receivable, Provision of accounts receivable and contract assets (net of recovery) | 850,597 | $ 133,477 | 4,243,262 | 3,690,460 | |
Accounts receivable, Charge-off for accounts receivable and contract assets | 291,237,878 | 269,490,242 | |||
Provision for doubtful accounts | 121,485,215 | 241,186,823 | |||
Accounts Receivable, Credit Loss Expense (Reversal) | 121,485,215 | 241,186,823 | |||
Charge-off for accounts receivable assets | (291,237,878) | (269,490,242) | |||
Allowance for accounts receivable and contract assets, Beginning balance | 38,681,680 | 6,070,000 | 192,909,907 | 221,213,326 | |
Allowance for accounts receivable and contract assets, Ending balance | 25,867,957 | 4,059,247 | 38,681,680 | 192,909,907 | |
Provision for accounts receivable and contract assets | 77,247,810 | 12,121,867 | 121,485,215 | 241,186,823 | |
Charge-off for accounts receivable and contract assets | $ | (14,132,620) | ||||
Recoveries of charge-off of accounts receivables and contract assets | 850,597 | 133,477 | 4,243,262 | 3,690,460 | |
Not past-due | |||||
Accounts, Notes and Loans Receivables | |||||
Past-due accounts receivables | 205,943,964 | 442,745,359 | 32,317,102 | ||
1 - 30 days | |||||
Accounts, Notes and Loans Receivables | |||||
Past-due accounts receivables | 6,352,735 | 4,666,795 | 996,883 | ||
30 - 60 days | |||||
Accounts, Notes and Loans Receivables | |||||
Past-due accounts receivables | 5,808,353 | 4,576,634 | 911,457 | ||
Adoption of ASU 2016-13 | |||||
Accounts, Notes and Loans Receivables | |||||
Allowance for doubtful accounts | (15,524,436) | ||||
Provision for accounts receivable and contract assets | |||||
Allowance for accounts receivable and contract assets, Beginning balance | 15,524,436 | ||||
Allowance for accounts receivable and contract assets, Ending balance | 15,524,436 | ||||
Credit losses | |||||
Accounts, Notes and Loans Receivables | |||||
Allowance for doubtful accounts | (25,867,957) | (38,681,680) | (4,059,247) | ||
Provision for accounts receivable and contract assets | |||||
Allowance for accounts receivable and contract assets, Beginning balance | 38,681,680 | ||||
Allowance for accounts receivable and contract assets, Ending balance | 25,867,957 | 4,059,247 | 38,681,680 | ||
Loan facilitation service | |||||
Accounts, Notes and Loans Receivables | |||||
Accounts receivable gross | 437,132,345 | ||||
Accounts receivable and contract assets, net | 718,867,389 | 112,805,980 | |||
Post-origination service | |||||
Accounts, Notes and Loans Receivables | |||||
Accounts receivable gross | 3,193,112 | ||||
Accounts receivable and contract assets, net | 28,400,279 | 4,456,624 | |||
Financing income | |||||
Accounts, Notes and Loans Receivables | |||||
Accounts receivable gross | 11,663,331 | ||||
Accounts receivable and contract assets, net | 26,080,407 | 4,092,585 | |||
Xiaoying Credit Loans | |||||
Accounts, Notes and Loans Receivables | |||||
Accounts receivable gross | 210,012,648 | 32,955,567 | |||
Contract assets gross | 537,467,470 | 84,340,375 | |||
Allowance for doubtful accounts | (37,529,193) | (185,085,029) | |||
Accounts receivable and contract assets, net | 396,222,357 | ||||
Past-due accounts receivables | 218,105,052 | 433,751,550 | 34,225,442 | ||
Provision for accounts receivable and contract assets | |||||
Accounts Receivable, Allowance for Credit Loss, Beginning Balance | $ | 5,889,150 | ||||
Accounts receivable, Provision of accounts receivable and contract assets (net of recovery) | $ | 7,298,794 | ||||
Accounts receivable, Charge-off for accounts receivable and contract assets | 11,918,069 | 271,870,171 | 252,080,117 | ||
Accounts Receivable, Allowance for Credit Loss, Ending Balance | $ | 1,269,875 | ||||
Contract assets, Provision of accounts receivable and contract assets (net of recovery) | $ | 4,570,049 | ||||
Contract assets, Charge-off for accounts receivable and contract assets | $ | 1,780,677 | ||||
Contract assets, ending balance | $ | 2,789,372 | ||||
Provision for doubtful accounts | 112,833,743 | 230,589,301 | |||
Accounts Receivable, Credit Loss Expense (Reversal) | 112,833,743 | 230,589,301 | |||
Charge-off for accounts receivable assets | (11,918,069) | (271,870,171) | (252,080,117) | ||
Allowance for accounts receivable and contract assets, Beginning balance | 37,529,193 | 185,085,029 | 206,575,845 | ||
Allowance for accounts receivable and contract assets, Ending balance | 37,529,193 | 185,085,029 | |||
Recoveries of charge-off of accounts receivables and contract assets | $ | 7,298,794 | ||||
Xiaoying Credit Loans | Not past-due | |||||
Accounts, Notes and Loans Receivables | |||||
Past-due accounts receivables | 205,943,964 | 426,728,851 | 32,317,102 | ||
Xiaoying Credit Loans | 1 - 30 days | |||||
Accounts, Notes and Loans Receivables | |||||
Past-due accounts receivables | 6,352,735 | 3,680,132 | 996,883 | ||
Xiaoying Credit Loans | 30 - 60 days | |||||
Accounts, Notes and Loans Receivables | |||||
Past-due accounts receivables | 5,808,353 | 3,342,567 | 911,457 | ||
Xiaoying Credit Loans | Adoption of ASU 2016-13 | |||||
Accounts, Notes and Loans Receivables | |||||
Allowance for doubtful accounts | (11,480,592) | ||||
Provision for accounts receivable and contract assets | |||||
Allowance for accounts receivable and contract assets, Beginning balance | 11,480,592 | ||||
Allowance for accounts receivable and contract assets, Ending balance | 11,480,592 | ||||
Xiaoying Credit Loans | Credit losses | |||||
Accounts, Notes and Loans Receivables | |||||
Contract assets gross | 17,775,553 | 2,789,372 | |||
Allowance for doubtful accounts | (8,092,404) | (37,529,193) | (1,269,875) | ||
Provision for accounts receivable and contract assets | |||||
Allowance for accounts receivable and contract assets, Beginning balance | 37,529,193 | ||||
Allowance for accounts receivable and contract assets, Ending balance | 8,092,404 | 1,269,875 | 37,529,193 | ||
Xiaoying Credit Loans | Loan facilitation service | |||||
Accounts, Notes and Loans Receivables | |||||
Accounts receivable gross | 189,556,149 | 422,694,249 | 29,745,496 | ||
Contract assets gross | 529,311,240 | 83,060,484 | |||
Xiaoying Credit Loans | Post-origination service | |||||
Accounts, Notes and Loans Receivables | |||||
Accounts receivable gross | 2,468,496 | 1,897,119 | 387,361 | ||
Contract assets gross | 25,931,783 | 4,069,263 | |||
Xiaoying Credit Loans | Financing income | |||||
Accounts, Notes and Loans Receivables | |||||
Accounts receivable gross | 26,080,407 | 9,160,182 | $ 4,092,585 | ||
Xiaoying Revolving Loans | |||||
Accounts, Notes and Loans Receivables | |||||
Allowance for doubtful accounts | (1,152,487) | (7,824,878) | |||
Accounts receivable and contract assets, net | 17,084,751 | ||||
Past-due accounts receivables | 18,237,238 | ||||
Provision for accounts receivable and contract assets | |||||
Accounts Receivable, Allowance for Credit Loss, Beginning Balance | $ | 180,850 | ||||
Accounts receivable, Provision of accounts receivable and contract assets (net of recovery) | $ | 253,024 | ||||
Accounts receivable, Charge-off for accounts receivable and contract assets | 433,874 | 19,367,707 | 2,479,118 | ||
Accounts Receivable, Allowance for Credit Loss, Ending Balance | $ | |||||
Provision for doubtful accounts | 11,883,737 | 10,303,996 | |||
Accounts Receivable, Credit Loss Expense (Reversal) | 11,883,737 | 10,303,996 | |||
Charge-off for accounts receivable assets | (433,874) | (19,367,707) | (2,479,118) | ||
Allowance for accounts receivable and contract assets, Beginning balance | 1,152,487 | 7,824,878 | |||
Allowance for accounts receivable and contract assets, Ending balance | 1,152,487 | 7,824,878 | |||
Recoveries of charge-off of accounts receivables and contract assets | $ | 253,024 | ||||
Xiaoying Revolving Loans | Not past-due | |||||
Accounts, Notes and Loans Receivables | |||||
Past-due accounts receivables | 16,016,508 | ||||
Xiaoying Revolving Loans | 1 - 30 days | |||||
Accounts, Notes and Loans Receivables | |||||
Past-due accounts receivables | 986,663 | ||||
Xiaoying Revolving Loans | 30 - 60 days | |||||
Accounts, Notes and Loans Receivables | |||||
Past-due accounts receivables | 1,234,067 | ||||
Xiaoying Revolving Loans | Adoption of ASU 2016-13 | |||||
Accounts, Notes and Loans Receivables | |||||
Allowance for doubtful accounts | (811,579) | ||||
Provision for accounts receivable and contract assets | |||||
Allowance for accounts receivable and contract assets, Beginning balance | 811,579 | ||||
Allowance for accounts receivable and contract assets, Ending balance | 811,579 | ||||
Xiaoying Revolving Loans | Credit losses | |||||
Accounts, Notes and Loans Receivables | |||||
Allowance for doubtful accounts | (1,152,487) | ||||
Provision for accounts receivable and contract assets | |||||
Allowance for accounts receivable and contract assets, Beginning balance | 1,152,487 | ||||
Allowance for accounts receivable and contract assets, Ending balance | 1,152,487 | ||||
Xiaoying Revolving Loans | Loan facilitation service | |||||
Accounts, Notes and Loans Receivables | |||||
Accounts receivable gross | 14,438,096 | ||||
Xiaoying Revolving Loans | Post-origination service | |||||
Accounts, Notes and Loans Receivables | |||||
Accounts receivable gross | 1,295,993 | ||||
Xiaoying Revolving Loans | Financing income | |||||
Accounts, Notes and Loans Receivables | |||||
Accounts receivable gross | 2,503,149 | ||||
Xiaoying Housing Loan | |||||
Accounts, Notes and Loans Receivables | |||||
Allowance for doubtful accounts | |||||
Provision for accounts receivable and contract assets | |||||
Accounts receivable, Charge-off for accounts receivable and contract assets | 119,616 | ||||
Charge-off for accounts receivable assets | (119,616) | ||||
Allowance for accounts receivable and contract assets, Beginning balance | 119,616 | ||||
Provision for accounts receivable and contract assets | 77,247,810 | $ 12,121,867 | 121,485,215 | 241,186,823 | |
Internet Channel | |||||
Accounts, Notes and Loans Receivables | |||||
Allowance for doubtful accounts | |||||
Provision for accounts receivable and contract assets | |||||
Accounts receivable, Charge-off for accounts receivable and contract assets | 133,707 | ||||
Provision for doubtful accounts | (3,232,265) | ||||
Accounts Receivable, Credit Loss Expense (Reversal) | (3,232,265) | ||||
Charge-off for accounts receivable assets | (133,707) | ||||
Allowance for accounts receivable and contract assets, Beginning balance | 133,707 | ||||
Internet Channel | Adoption of ASU 2016-13 | |||||
Accounts, Notes and Loans Receivables | |||||
Allowance for doubtful accounts | (3,232,265) | ||||
Provision for accounts receivable and contract assets | |||||
Allowance for accounts receivable and contract assets, Beginning balance | ¥ 3,232,265 | ||||
Allowance for accounts receivable and contract assets, Ending balance | ¥ 3,232,265 | ||||
Other Products | |||||
Accounts, Notes and Loans Receivables | |||||
Allowance for doubtful accounts | |||||
Provision for accounts receivable and contract assets | |||||
Accounts receivable, Charge-off for accounts receivable and contract assets | 14,677,684 | ||||
Provision for doubtful accounts | 293,526 | ||||
Accounts Receivable, Credit Loss Expense (Reversal) | 293,526 | ||||
Charge-off for accounts receivable assets | (14,677,684) | ||||
Allowance for accounts receivable and contract assets, Beginning balance | ¥ 14,384,158 |
Summary of significant accoun_9
Summary of significant accounting policies - Loan receivables from Xiaoying Credit Loans and Xiaoying Revolving Loans, net (Details) | 12 Months Ended | ||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | |
Summary of significant accounting policies | |||
Loan receivable from Xiaoying Housing Loans, net | ¥ 2,484,072,931 | $ 389,805,249 | ¥ 1,236,026,461 |
Accrued interest receivable | ¥ 26,080,407 | $ 4,092,585 | |
Charges off policy of Loans receivables (in days) | 60 days |
Summary of significant accou_10
Summary of significant accounting policies - Loan receivables from Xiaoying Credit Loans and Revolving Loans originated and retained by the Company (Details) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Loans and Leases Receivable Disclosure [Line Items] | |||||
Loans receivables from Xiaoying Credit Loans and Revolving Loans | ¥ 2,539,408,672 | $ 398,488,634 | ¥ 1,338,582,245 | ||
Allowance for credit losses | (55,335,741) | (8,683,385) | (102,555,784) | $ (16,093,240) | ¥ (24,709,468) |
Loans receivable from Xiaoying Credit Loans and Revolving Loans, net | 2,484,072,931 | 389,805,249 | 1,236,026,461 | ||
Xiaoying Credit Loans | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Loans receivables from Xiaoying Credit Loans and Revolving Loans | 2,537,161,361 | 398,135,982 | 1,027,762,930 | ||
Allowance for credit losses | (54,725,057) | (8,587,555) | (70,615,780) | (11,081,156) | |
Loans receivable from Xiaoying Credit Loans and Revolving Loans, net | 2,482,436,304 | 389,548,427 | 957,147,150 | ||
Xiaoying Revolving Loans | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Loans receivables from Xiaoying Credit Loans and Revolving Loans | 2,247,311 | 352,652 | 310,819,315 | ||
Allowance for credit losses | (610,684) | (95,830) | (31,940,004) | $ (5,012,084) | ¥ (24,709,468) |
Loans receivable from Xiaoying Credit Loans and Revolving Loans, net | ¥ 1,636,627 | $ 256,822 | ¥ 278,879,311 |
Summary of significant accou_11
Summary of significant accounting policies - Movement of provision for loan receivables from Xiaoying Credit Loans and Revolving Loans (Details) | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Loans and Leases Receivable Disclosure [Line Items] | ||||
Allowance for loans receivable at beginning of the year | ¥ 102,555,784 | $ 16,093,240 | ¥ 24,709,468 | |
(Reversal of) provision for loan receivable from Xiaoying | 76,395,168 | 11,988,069 | 227,210,026 | |
Less: Charge-offs | (123,615,211) | (19,397,924) | (153,568,756) | |
Allowance for loans receivable at end of the year | 55,335,741 | 8,683,385 | 102,555,784 | ¥ 24,709,468 |
Recoveries of charge-off of loans receivables from Xiaoying Credit Loans and Xiaoying Revolving Loans | 8,803,265 | 1,318,424 | 11,249,305 | |
Xiaoying Credit Loans And Revolving Loans | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
(Reversal of) provision for loan receivable from Xiaoying | 76,395,168 | 11,988,069 | 227,210,026 | 37,643,244 |
Xiaoying Housing Loan | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Allowance for loans receivable at beginning of the year | 48,211,512 | |||
(Reversal of) provision for loan receivable from Xiaoying | (377,559) | (59,247) | 17,993,570 | 23,430,641 |
Less: Charge-offs | 377,559 | 59,247 | (66,205,082) | |
Allowance for loans receivable at end of the year | 48,211,512 | |||
Xiaoying Credit Loans | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Allowance for loans receivable at beginning of the year | 70,615,780 | 11,081,156 | ||
(Reversal of) provision for loan receivable from Xiaoying | 80,823,776 | 12,683,014 | 74,934,783 | |
Less: Charge-offs | (96,714,499) | (15,176,615) | (4,319,003) | |
Allowance for loans receivable at end of the year | 54,725,057 | 8,587,555 | 70,615,780 | |
Xiaoying Revolving Loans | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Allowance for loans receivable at beginning of the year | 31,940,004 | 5,012,084 | 24,709,468 | |
(Reversal of) provision for loan receivable from Xiaoying | (4,428,608) | (694,945) | 152,275,243 | |
Less: Charge-offs | (26,900,712) | (4,221,309) | (149,249,753) | |
Allowance for loans receivable at end of the year | 610,684 | $ 95,830 | 31,940,004 | ¥ 24,709,468 |
Adoption of ASU 2016-13 | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Allowance for loans receivable at beginning of the year | 4,205,046 | |||
Allowance for loans receivable at end of the year | 4,205,046 | |||
Adoption of ASU 2016-13 | Xiaoying Revolving Loans | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Allowance for loans receivable at beginning of the year | ¥ 4,205,046 | |||
Allowance for loans receivable at end of the year | ¥ 4,205,046 |
Summary of significant accou_12
Summary of significant accounting policies - Aging of loan receivables from Xiaoying Credit Loans and Revolving Loans (Details) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Loans and Leases Receivable Disclosure [Line Items] | |||
Past-due loans receivables | ¥ 2,539,408,672 | $ 398,488,634 | ¥ 1,338,582,245 |
Xiaoying Credit Loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Past-due loans receivables | 2,537,161,361 | 398,135,982 | 1,027,762,930 |
Xiaoying Revolving Loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Past-due loans receivables | 2,247,311 | 352,652 | 310,819,315 |
1 - 30 days | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Past-due loans receivables | 13,800,724 | 2,165,635 | 20,324,903 |
1 - 30 days | Xiaoying Credit Loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Past-due loans receivables | 13,800,724 | 2,165,635 | 10,394,739 |
1 - 30 days | Xiaoying Revolving Loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Past-due loans receivables | 9,930,164 | ||
30 - 60 days | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Past-due loans receivables | 8,630,769 | 1,354,356 | 12,012,671 |
30 - 60 days | Xiaoying Credit Loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Past-due loans receivables | 8,625,373 | 1,353,509 | 5,179,728 |
30 - 60 days | Xiaoying Revolving Loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Past-due loans receivables | 5,396 | 847 | 6,832,943 |
Not past-due | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Past-due loans receivables | 2,516,977,179 | 394,968,643 | 1,306,244,671 |
Not past-due | Xiaoying Credit Loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Past-due loans receivables | 2,514,735,264 | 394,616,838 | 1,012,188,463 |
Not past-due | Xiaoying Revolving Loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Past-due loans receivables | ¥ 2,241,915 | $ 351,805 | ¥ 294,056,208 |
Summary of significant accou_13
Summary of significant accounting policies - Loan receivable from Xiaoying Housing Loans, net (Details) | 12 Months Ended | ||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | |
Loan receivable from Xiaoying Housing Loans | |||||
Allowance for loan principal and interest receivables | ¥ 55,335,741 | ¥ 102,555,784 | ¥ 24,709,468 | $ 8,683,385 | |
Loan receivable from Xiaoying Housing Loans, net | 2,484,072,931 | 1,236,026,461 | 389,805,249 | ||
Allowance for loans receivable at beginning of the year | 102,555,784 | $ 16,093,240 | 24,709,468 | ||
Provision for Loans Receivable from Xiaoying Housing Loans | 76,395,168 | 11,988,069 | 227,210,026 | ||
Less: Charge-off | (123,615,211) | (19,397,924) | (153,568,756) | ||
Allowance for loans receivable at end of the year | 55,335,741 | 8,683,385 | 102,555,784 | 24,709,468 | |
Over due loans receivable | 2,539,408,672 | 1,338,582,245 | 398,488,634 | ||
Xiaoying Housing Loan | |||||
Loan receivable from Xiaoying Housing Loans | |||||
Allowance for loan principal and interest receivables | 48,211,512 | ||||
Loan receivable from Xiaoying Housing Loans, net | 12,083,317 | 47,490,437 | 1,896,136 | ||
Loans receivable acquired during the year | 0 | 14,165,030 | |||
Amount of outstanding undiscounted loan receivable | 121,854,733 | 129,940,425 | 19,121,667 | ||
Allowance for loans receivable at beginning of the year | 48,211,512 | ||||
Provision for Loans Receivable from Xiaoying Housing Loans | (377,559) | (59,247) | 17,993,570 | 23,430,641 | |
Less: Charge-off | 377,559 | $ 59,247 | (66,205,082) | ||
Allowance for loans receivable at end of the year | ¥ 48,211,512 | ||||
Over due loans receivable | 12,083,317 | 47,490,437 | 1,896,136 | ||
Xiaoying Housing Loan | Over due 1 - 2 years | |||||
Loan receivable from Xiaoying Housing Loans | |||||
Over due loans receivable | 3,043,453 | ||||
Xiaoying Housing Loan | Over due 2 - 3 years | |||||
Loan receivable from Xiaoying Housing Loans | |||||
Over due loans receivable | 1,392,439 | 8,691,640 | 218,504 | ||
Xiaoying Housing Loan | Over due over 3 years | |||||
Loan receivable from Xiaoying Housing Loans | |||||
Over due loans receivable | ¥ 10,690,878 | ¥ 35,755,344 | $ 1,677,632 |
Summary of significant accou_14
Summary of significant accounting policies - Property and equipment, net, Intangible assets and Impairment long-lived assets (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property and equipment, net | |||
Impairment of long-lived assets | ¥ 0 | ¥ 0 | ¥ 0 |
Minimum | |||
Property and equipment, net | |||
Intangible assets useful life | 1 year | ||
Maximum | |||
Property and equipment, net | |||
Intangible assets useful life | 10 years | ||
Computer and transmission equipment | |||
Property and equipment, net | |||
Property and equipment useful life | 3 years | ||
Furniture and office equipment | |||
Property and equipment, net | |||
Property and equipment useful life | 5 years | ||
Motor vehicles | |||
Property and equipment, net | |||
Property and equipment useful life | 4 years |
Summary of significant accou_15
Summary of significant accounting policies - Others (Details) | 12 Months Ended | ||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | |
Other disclosures | |||||
Deposit payable to channel cooperators | ¥ 21,012,235 | ¥ 21,472,235 | $ 3,297,278 | ||
Defined contribution plan cost | 35,601,429 | $ 5,586,641 | 28,891,339 | ¥ 53,997,224 | |
Advertising cost | ¥ 7,395,353 | $ 1,160,492 | 25,594,249 | 64,357,939 | |
VAT rate (as a percent) | 6.00% | 6.00% | |||
VAT | ¥ 228,029,948 | $ 35,782,875 | ¥ 197,016,590 | ¥ 231,454,037 | |
Loan facilitated | 10.00% | 10.00% | 10.00% | 10.00% | |
Translation into USD | 6.3726 | 6.3726 | |||
Consolidated Trusts | |||||
Other disclosures | |||||
VAT rate (as a percent) | 3.00% | 3.00% | |||
ZhongAn | |||||
Other disclosures | |||||
VAT rate (as a percent) | 13.00% | 13.00% |
Summary of significant accou_16
Summary of significant accounting policies - Leases (Details) | 12 Months Ended | |||
Dec. 31, 2021USD ($) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||||
2022 | $ 2,755,413 | ¥ 17,559,142 | ||
2023 | 745,946 | 4,753,618 | ||
2024 | 760,169 | 4,844,256 | ||
2025 and thereafter | 549,831 | 3,503,856 | ||
Total future lease payments | 4,811,359 | 30,660,872 | ||
Less: Imputed interest | 990,232 | 6,310,358 | ||
Total lease liability balance | $ 3,821,127 | ¥ 24,350,514 | ¥ 44,486,728 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Accrued Liabilities and Other Liabilities, Other Liabilities, Noncurrent | |||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets, Noncurrent | Other Assets, Noncurrent | Other Assets, Noncurrent | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued Liabilities and Other Liabilities | Accrued Liabilities and Other Liabilities | ||
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent | ||
ROU assets | $ 3,954,327 | ¥ 25,199,346 | ¥ 45,217,671 | |
Current lease liabilities | $ 1,935,029 | ¥ 12,331,166 | ¥ 16,871,785 | |
Weighted average remaining lease term (in years) | 1 year 4 months 17 days | 1 year 4 months 17 days | ||
Weighted average discount rate (as a percent) | 6.20% | 6.20% | ||
Operating lease cost | $ 2,815,766 | ¥ 17,943,753 | ||
Lease Cost Capitalized | ¥ 0 | |||
Supplemental cash flow information related to operating leases | ||||
Cash payments for operating leases | $ 3,185,287 | ¥ 20,298,560 |
Summary of significant accou_17
Summary of significant accounting policies - Certain risks and concentrations (Details) | 12 Months Ended | |
Dec. 31, 2021itemInstitution | Dec. 31, 2020itemInstitution | |
Concentration Risk [Line Items] | ||
Number of accounts receivables | item | 2 | 0 |
Number of institutional cooperators | Institution | 2 | 3 |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Financing guarantee company | ||
Concentration Risk [Line Items] | ||
Concentration, risk percentage | 15.50% | 0.00% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Institutional funding partner B | ||
Concentration Risk [Line Items] | ||
Concentration, risk percentage | 11.00% | 0.00% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Institutional cooperator A | ||
Concentration Risk [Line Items] | ||
Concentration, risk percentage | 30.70% | 43.90% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Institutional cooperator B | ||
Concentration Risk [Line Items] | ||
Concentration, risk percentage | 23.10% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Institutional cooperator C | ||
Concentration Risk [Line Items] | ||
Concentration, risk percentage | 17.50% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Institutional cooperator D | ||
Concentration Risk [Line Items] | ||
Concentration, risk percentage | 14.60% |
Summary of significant accou_18
Summary of significant accounting policies - Change in Accounting Principle (Details) | Jan. 01, 2020CNY (¥) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Retained earnings | ¥ 810,855,877 | $ 127,240,981 | ¥ (14,551,146) | ||||
Increase in deferred tax asset | 274,868,534 | 43,132,871 | 605,652,593 | ||||
Increase in Allowance for credit losses for the accounts receivable and contract assets | 25,867,957 | 4,059,247 | 38,681,680 | $ 6,070,000 | ¥ 192,909,907 | ¥ 221,213,326 | |
Increase in Allowance for credit losses for the loans receivable | 55,335,741 | 8,683,385 | 102,555,784 | 16,093,240 | 24,709,468 | ||
Increase in Allowance for credit losses for the earnings rights associated with loan assets | 764,600 | 119,982 | 1,987,960 | 311,954 | |||
Increase in cash and equivalents | ¥ 584,762,494 | $ 91,761,996 | 746,388,408 | 1,005,980,251 | |||
Increase in guarantee liabilities | 9,789,626 | $ 1,536,206 | ¥ 17,475,303 | ¥ 20,898,201 | |||
Adoption of ASU 2016-13 | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Increase in Allowance for credit losses for the accounts receivable and contract assets | 15,524,436 | ||||||
Increase in Allowance for credit losses for the loans receivable | 4,205,046 | ||||||
Adoption of ASU 2016-13 | Cumulative effect of accounting change | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Pre tax increase in the Allowance for credit losses | ¥ 22,990,000 | ||||||
Pre tax increase in the Allowance for credit losses (in percent) | 8.03% | ||||||
Retained earnings | ¥ 17,240,000 | ||||||
Increase in deferred tax asset | 5,750,000 | ||||||
Increase in Allowance for credit losses for the accounts receivable and contract assets | 11,640,000 | ||||||
Increase in Allowance for credit losses for the loans receivable | 3,150,000 | ||||||
Increase in Allowance for credit losses for the earnings rights associated with loan assets | 2,100,000 | ||||||
Increase in cash and equivalents | 120,000 | ||||||
Increase in guarantee liabilities | ¥ 220,000 | ¥ 297,622 |
Fair value of assets and liab_3
Fair value of assets and liabilities - Financial Instruments Recorded at Fair Value on a Recurring Basis (Details) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Assets | |||||
Loans at fair value | ¥ 389,679,352 | $ 61,149,194 | ¥ 1,585,731,888 | ||
Financial guarantee derivative | 11,816,799 | 1,854,314 | 297,928,066 | ||
Liabilities | |||||
Payable to investors at fair value | 462,714,400 | 72,609,987 | 1,914,183,650 | ||
Financial guarantee derivative | 565,953,269 | 88,810,418 | 130,442,090 | ||
Recurring | |||||
Assets | |||||
Loans at fair value | 389,679,352 | 61,149,194 | 1,585,731,888 | ||
Financial guarantee derivative | 11,816,799 | 1,854,314 | 297,928,066 | ||
Financial investments | 6,000,000 | ||||
Total assets | 401,496,151 | 63,003,508 | 1,889,659,954 | ||
Liabilities | |||||
Payable to investors at fair value | 462,714,400 | 72,609,987 | 1,914,183,650 | ||
Financial guarantee derivative | 565,953,269 | 88,810,418 | 130,442,090 | ||
Total liabilities | 1,028,667,669 | 161,420,405 | 2,044,625,740 | ||
Level 1 | Recurring | |||||
Assets | |||||
Financial investments | 6,000,000 | ||||
Total assets | 6,000,000 | ||||
Level 3 | Recurring | |||||
Assets | |||||
Loans at fair value | 389,679,352 | 61,149,194 | 1,585,731,888 | ||
Financial guarantee derivative | 11,816,799 | 1,854,314 | 297,928,066 | ||
Total assets | 401,496,151 | 63,003,508 | 1,883,659,954 | ||
Liabilities | |||||
Payable to investors at fair value | 462,714,400 | 72,609,987 | 1,914,183,650 | $ 300,377,185 | ¥ 3,006,349,475 |
Financial guarantee derivative | 565,953,269 | 88,810,418 | 130,442,090 | ||
Total liabilities | ¥ 1,028,667,669 | $ 161,420,405 | ¥ 2,044,625,740 |
Fair value of assets and liab_4
Fair value of assets and liabilities - Asset of financial guarantee derivative movements (Details) | 12 Months Ended | ||||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Fair value of assets and liabilities | |||||||
Balance at the beginning | ¥ 297,928,066 | ||||||
Change in fair value of financial guarantee derivative | 170,338,993 | $ 26,729,905 | ¥ 163,670,115 | ¥ 246,371,828 | |||
Balance at the end | 11,816,799 | 1,854,314 | 297,928,066 | ||||
Potential maximum undiscounted amount payable (Remaining estimated payment to financial institutional cooperators based on the pre-agreed Cap at December 31, 2020) | 15,210,557 | $ 2,331,120 | |||||
Financial guarantee derivative | |||||||
Fair value of assets and liabilities | |||||||
Balance at the beginning | 297,928,066 | ||||||
Balance at the end | 11,816,799 | 1,854,314 | 297,928,066 | ||||
Potential maximum undiscounted amount payable (Remaining estimated payment to financial institutional cooperators based on the pre-agreed Cap at December 31, 2020) | 1,285,566,707 | 726,883,112 | $ 201,733,469 | ||||
Guarantee assets | Financial guarantee derivative | |||||||
Fair value of assets and liabilities | |||||||
Balance at the beginning | (297,928,066) | 3,842,853 | $ 603,027 | (719,962,262) | |||
Estimated payment to financial institutional cooperators based on the pre-agreed Cap(1) | 212,641,902 | 33,368,155 | 1,268,778,377 | ||||
Less: Initially estimated net guarantee service fee to be collected | 201,562,969 | 31,629,628 | 1,151,250,106 | ||||
Add : Subsequent changes in estimated net guarantee service fee to be collected for outstanding loans | 2,776,401 | 435,678 | (15,712,174) | ||||
Change in fair value of financial guarantee derivative | 13,855,334 | 2,174,204 | 133,240,445 | ||||
Add: Guarantee service fee received from borrowers | 146,985,014 | 23,065,156 | 1,440,961,442 | ||||
Less: Compensation paid to financial institutional cooperators | 176,500,000 | 27,696,702 | 1,152,167,691 | ||||
Balance at the end | (11,816,799) | (1,854,314) | (297,928,066) | 3,842,853 | |||
Potential maximum undiscounted amount payable (Remaining estimated payment to financial institutional cooperators based on the pre-agreed Cap at December 31, 2020) | 93,116,616 | 272,229,005 | 14,612,029 | ||||
Changes in fair value related to balance outstanding | 11,388,942 | 39,915,887 | 1,787,174 | ||||
Guarantee assets | Loans facilitated in 2019 | |||||||
Fair value of assets and liabilities | |||||||
Balance at the beginning | 0 | (719,962,262) | |||||
Estimated payment to financial institutional cooperators based on the pre-agreed Cap(1) | 0 | ||||||
Less: Initially estimated net guarantee service fee to be collected | 0 | ||||||
Add : Subsequent changes in estimated net guarantee service fee to be collected for outstanding loans | (57,152,814) | ||||||
Change in fair value of financial guarantee derivative | 57,152,814 | ||||||
Add: Guarantee service fee received from borrowers | 818,427,767 | ||||||
Less: Compensation paid to financial institutional cooperators | 155,618,319 | ||||||
Balance at the end | 0 | (719,962,262) | |||||
Potential maximum undiscounted amount payable (Remaining estimated payment to financial institutional cooperators based on the pre-agreed Cap at December 31, 2020) | 0 | ||||||
Changes in fair value related to balance outstanding | 0 | ||||||
Guarantee assets | Loans Facilitated In 2020 | |||||||
Fair value of assets and liabilities | |||||||
Balance at the beginning | (297,928,066) | 3,842,853 | |||||
Estimated payment to financial institutional cooperators based on the pre-agreed Cap(1) | 1,268,778,377 | ||||||
Less: Initially estimated net guarantee service fee to be collected | 1,151,250,106 | ||||||
Add : Subsequent changes in estimated net guarantee service fee to be collected for outstanding loans | 1,044,741 | 41,440,640 | |||||
Change in fair value of financial guarantee derivative | 1,044,741 | 76,087,631 | |||||
Add: Guarantee service fee received from borrowers | 52,087,120 | 622,533,675 | |||||
Less: Compensation paid to financial institutional cooperators | ¥ 56,974,714 | 996,549,372 | |||||
Balance at the end | (297,928,066) | ¥ 3,842,853 | |||||
Potential maximum undiscounted amount payable (Remaining estimated payment to financial institutional cooperators based on the pre-agreed Cap at December 31, 2020) | 272,229,005 | ||||||
Changes in fair value related to balance outstanding | ¥ 39,915,887 | ||||||
Guarantee assets | Loans Facilitated In 2021 | |||||||
Fair value of assets and liabilities | |||||||
Estimated payment to financial institutional cooperators based on the pre-agreed Cap(1) | $ | 212,641,902 | ||||||
Less: Initially estimated net guarantee service fee to be collected | $ | 201,562,969 | ||||||
Add : Subsequent changes in estimated net guarantee service fee to be collected for outstanding loans | $ | 1,731,660 | ||||||
Change in fair value of financial guarantee derivative | $ | 12,810,593 | ||||||
Add: Guarantee service fee received from borrowers | $ | 94,897,894 | ||||||
Less: Compensation paid to financial institutional cooperators | $ | 119,525,286 | ||||||
Balance at the end | $ | $ (11,816,799) | ||||||
Potential maximum undiscounted amount payable (Remaining estimated payment to financial institutional cooperators based on the pre-agreed Cap at December 31, 2020) | $ | 93,116,616 | ||||||
Changes in fair value related to balance outstanding | $ | $ 11,388,942 | ||||||
Minimum | Level 3 | Financial guarantee derivative | |||||||
Fair value of assets and liabilities | |||||||
Financial guarantee derivative input | 3.43 | 3.43 | |||||
Minimum | Default rates | Level 3 | Financial guarantee derivative | |||||||
Fair value of assets and liabilities | |||||||
Financial guarantee derivative input | 4.79 | 4.79 | |||||
Maximum | Default rates | Level 3 | |||||||
Fair value of assets and liabilities | |||||||
Financial guarantee derivative input | 13.29 | 17.87 | 13.29 | 17.87 |
Fair value of assets and liab_5
Fair value of assets and liabilities - Liability of financial guarantee derivative movements (Details) | 12 Months Ended | |||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Fair value of assets and liabilities | ||||||
Balance at the beginning | ¥ 130,442,090 | |||||
Change in fair value of financial guarantee derivative | 170,338,993 | $ 26,729,905 | ¥ 163,670,115 | ¥ 246,371,828 | ||
Balance at the end | 565,953,269 | 88,810,418 | 130,442,090 | |||
Potential maximum undiscounted amount payable (Remaining estimated payment to financial institutional cooperators based on the pre-agreed Cap at December 31, 2020) | 15,210,557 | $ 2,331,120 | ||||
Financial guarantee derivative | ||||||
Fair value of assets and liabilities | ||||||
Balance at the beginning | 130,442,090 | |||||
Balance at the end | 565,953,269 | 88,810,418 | 130,442,090 | |||
Potential maximum undiscounted amount payable (Remaining estimated payment to financial institutional cooperators based on the pre-agreed Cap at December 31, 2020) | 1,285,566,707 | 726,883,112 | $ 201,733,469 | |||
Guarantee liabilities | Financial guarantee derivative | ||||||
Fair value of assets and liabilities | ||||||
Balance at the beginning | (171,328,829) | (26,885,232) | ||||
Estimated payment to financial institutional cooperators based on the pre-agreed Cap(1) | 1,927,017,013 | 302,391,020 | ||||
Less: Initially estimated net guarantee service fee to be collected | 1,827,304,009 | 286,743,874 | ||||
Add : Subsequent changes in estimated net guarantee service fee to be collected for outstanding loans | 56,770,655 | 8,908,555 | ||||
Change in fair value of financial guarantee derivative | 156,483,659 | 24,555,701 | ||||
Add: Guarantee service fee received from borrowers | 1,985,273,759 | 311,532,775 | ||||
Less: Compensation paid to financial institutional cooperators | 1,404,475,320 | 220,392,826 | ||||
Balance at the end | 565,953,269 | $ 88,810,418 | (171,328,829) | |||
Potential maximum undiscounted amount payable (Remaining estimated payment to financial institutional cooperators based on the pre-agreed Cap at December 31, 2020) | 1,192,450,091 | 187,121,440 | ||||
Changes in fair value related to balance outstanding | 110,763,906 | $ 17,381,274 | ||||
Guarantee liabilities | Loans Facilitated In 2020 | ||||||
Fair value of assets and liabilities | ||||||
Balance at the beginning | 130,442,090 | (171,328,829) | ||||
Estimated payment to financial institutional cooperators based on the pre-agreed Cap(1) | 527,660,148 | |||||
Less: Initially estimated net guarantee service fee to be collected | 484,555,120 | |||||
Add : Subsequent changes in estimated net guarantee service fee to be collected for outstanding loans | 3,790,670 | (12,675,358) | ||||
Change in fair value of financial guarantee derivative | 3,790,670 | 30,429,670 | ||||
Add: Guarantee service fee received from borrowers | 837,446,557 | 173,018,461 | ||||
Less: Compensation paid to financial institutional cooperators | 669,908,398 | 73,006,041 | ||||
Balance at the end | 130,442,090 | ¥ (171,328,829) | ||||
Potential maximum undiscounted amount payable (Remaining estimated payment to financial institutional cooperators based on the pre-agreed Cap at December 31, 2020) | 454,654,107 | |||||
Changes in fair value related to balance outstanding | ¥ 21,496,996 | |||||
Guarantee liabilities | Loans Facilitated In 2021 | ||||||
Fair value of assets and liabilities | ||||||
Estimated payment to financial institutional cooperators based on the pre-agreed Cap(1) | 1,927,017,013 | |||||
Less: Initially estimated net guarantee service fee to be collected | 1,827,304,009 | |||||
Add : Subsequent changes in estimated net guarantee service fee to be collected for outstanding loans | 52,979,985 | |||||
Change in fair value of financial guarantee derivative | 152,692,989 | |||||
Add: Guarantee service fee received from borrowers | 1,147,827,202 | |||||
Less: Compensation paid to financial institutional cooperators | 734,566,922 | |||||
Balance at the end | 565,953,269 | |||||
Potential maximum undiscounted amount payable (Remaining estimated payment to financial institutional cooperators based on the pre-agreed Cap at December 31, 2020) | 1,192,450,091 | |||||
Changes in fair value related to balance outstanding | ¥ 110,763,906 |
Fair value of assets and liab_6
Fair value of assets and liabilities - Xiaoying card loan products and Significant unobservable inputs (Details) | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Fair value of assets and liabilities | ||||
Financial guarantee derivative | ¥ 11,816,799 | ¥ 297,928,066 | $ 1,854,314 | |
Financial guarantee derivative | 565,953,269 | 130,442,090 | 88,810,418 | |
Potential maximum undiscounted amount payable (Remaining estimated payment to financial institutional cooperators based on the pre-agreed Cap at December 31, 2020) | 15,210,557 | $ 2,331,120 | ||
Loans at fair value | 389,679,352 | 1,585,731,888 | 61,149,194 | |
Financial guarantee derivative | ||||
Fair value of assets and liabilities | ||||
Financial guarantee derivative | 11,816,799 | 297,928,066 | 1,854,314 | |
Financial guarantee derivative | 565,953,269 | 130,442,090 | 88,810,418 | |
Potential maximum undiscounted amount payable (Remaining estimated payment to financial institutional cooperators based on the pre-agreed Cap at December 31, 2020) | 1,285,566,707 | 726,883,112 | 201,733,469 | |
Loan products | ||||
Fair value of assets and liabilities | ||||
Financial guarantee derivative | 25,229,094,745 | 22,050,765,318 | 3,958,995,503 | |
Loans at fair value | ¥ 9,877,178,724 | ¥ 11,349,182,478 | $ 1,549,944,877 | |
Remaining weighted average contractual term (Month) | 6 months 23 days | 8 months 4 days | ||
Estimated net default rate (in percentage) | 7.74% | 5.75% | 7.74% | 5.75% |
Fair value of assets and liab_7
Fair value of assets and liabilities - Loans, Payables to investors at fair value (Details) | 12 Months Ended | ||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | |
Loans at fair value | |||||
Balance at beginning of the year | ¥ 1,585,731,888 | ||||
Balance at the end of the year | 389,679,352 | $ 61,149,194 | ¥ 1,585,731,888 | ||
Changes in fair value related to balance outstanding at the end of the year | 5,031,830 | $ (350,713) | |||
Payables to investors at fair value | |||||
Balance at beginning of the year | 1,914,183,650 | ||||
Change in fair value | 7,266,784 | 1,140,317 | 57,380,274 | ¥ (64,162,533) | |
Balance at the end of the year | 462,714,400 | 72,609,987 | 1,914,183,650 | ||
Changes in fair value related to balance outstanding at the end of the year | 2,234,954 | ||||
Xiaoying Credit Loans | |||||
Loans at fair value | |||||
Changes in fair value related to balance outstanding at the end of the year | 2,234,954 | 5,031,830 | 350,713 | ||
Recurring | |||||
Loans at fair value | |||||
Balance at beginning of the year | 1,585,731,888 | ||||
Balance at the end of the year | 389,679,352 | 61,149,194 | 1,585,731,888 | ||
Payables to investors at fair value | |||||
Balance at beginning of the year | 1,914,183,650 | ||||
Balance at the end of the year | 462,714,400 | 72,609,987 | 1,914,183,650 | ||
Recurring | Level 3 | |||||
Loans at fair value | |||||
Balance at beginning of the year | 1,585,731,888 | ||||
Balance at the end of the year | 389,679,352 | 61,149,194 | 1,585,731,888 | ||
Payables to investors at fair value | |||||
Balance at beginning of the year | 1,914,183,650 | 300,377,185 | 3,006,349,475 | ||
Initial contribution | 454,490,000 | 71,319,399 | 1,537,760,000 | ||
Principal payment | (1,905,959,250) | (299,086,597) | (2,629,925,825) | ||
Balance at the end of the year | 462,714,400 | 72,609,987 | 1,914,183,650 | 3,006,349,475 | |
Unpaid balance of loans at fair value | 1,580,700,058 | 391,914,306 | 61,499,907 | ||
Unpaid balance of payable to investors | 1,914,183,650 | 462,714,400 | $ 72,609,987 | ||
Recurring | Level 3 | Xiaoying Credit Loans | |||||
Loans at fair value | |||||
Balance at beginning of the year | 1,585,731,888 | 248,835,936 | 2,782,332,885 | ||
Origination of loan principal | 422,081,700 | 66,233,829 | 1,521,546,428 | ||
Collection of principal | (3,427,158,051) | (537,795,884) | (5,155,380,196) | ||
Reinvestment of principal | 1,816,290,599 | 285,015,629 | 2,494,613,045 | ||
Change in fair value | (7,266,784) | (1,140,317) | (57,380,274) | ||
Balance at the end of the year | ¥ 389,679,352 | $ 61,149,194 | ¥ 1,585,731,888 | ¥ 2,782,332,885 | |
Weighted average | Discount rates | Level 3 | |||||
Fair value of assets and liabilities | |||||
Loans and payable to investors, input | 6.46 | 7.77 | 6.46 | ||
Weighted average | Net cumulative expected loss rates | Level 3 | |||||
Fair value of assets and liabilities | |||||
Loans and payable to investors, input | 5.92 | 5.88 | 5.92 |
Prepaid expenses and other cu_3
Prepaid expenses and other current assets (Details) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Prepaid expenses and other current assets | |||
Earnings rights associated with loan assets(2) | ¥ 99,235,400 | $ 15,572,200 | ¥ 258,012,040 |
Prepaid expenses(3) | 19,325,954 | 3,032,664 | 57,084,166 |
Input VAT to be deducted | 63,867,418 | 10,022,192 | 64,367,796 |
Interest receivable of Consolidated Trusts | 7,889,836 | 1,238,087 | 11,359,212 |
Advance to employee | 15,000,000 | 2,353,827 | |
Receivables from borrowers | 1,205,085 | 189,104 | 1,510,410 |
Others | 6,603,785 | 1,036,278 | 11,442,695 |
Total prepaid expenses and other current assets | ¥ 213,127,478 | $ 33,444,352 | ¥ 403,776,319 |
Prepaid expenses and other cu_4
Prepaid expenses and other current assets - Additional information (Details) | Nov. 09, 2019 | Dec. 31, 2021CNY (¥)item | Dec. 31, 2019CNY (¥)item | Jan. 31, 2022CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Prepaid Expense and Other Assets, Current, Disclosure [Line Items] | ||||||
Remaining amount receivable | ¥ 99,235,400 | $ 15,572,200 | ¥ 258,012,040 | |||
Jiangxi Ruijing | ||||||
Prepaid Expense and Other Assets, Current, Disclosure [Line Items] | ||||||
Number of earnings rights purchased | item | 2 | 2 | ||||
Jiangxi Ruijing | Loan 1 | ||||||
Prepaid Expense and Other Assets, Current, Disclosure [Line Items] | ||||||
Principal amount of loan assets | ¥ 100,000,000 | ¥ 100,000,000 | ||||
Jiangxi Ruijing | Loan 2 | ||||||
Prepaid Expense and Other Assets, Current, Disclosure [Line Items] | ||||||
Principal amount of loan assets | ¥ 280,000,000 | ¥ 280,000,000 | ||||
Interest rate (as a percent) | 8.00% | |||||
Remaining amount receivable | ¥ 100,000,000 |
Prepaid expenses and other cu_5
Prepaid expenses and other current assets - Movement of the allowances for the credit losses (Details) - 12 months ended Dec. 31, 2021 | CNY (¥) | USD ($) |
Prepaid expenses and other current assets | ||
Balance at beginning of year | ¥ 1,987,960 | $ 311,954 |
Credit losses for earnings rights associated with the loan assets | (1,223,360) | (191,972) |
Balance at end of year | ¥ 764,600 | $ 119,982 |
Deposits to institutional coo_3
Deposits to institutional cooperators, net (Details) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) |
Deposits to institutional cooperators, net | ||||
Deposits to cooperators | ¥ 1,502,433,446 | $ 235,764,593 | ¥ 918,241,497 | |
Provision for deposits to institutional cooperators | (2,026,696) | (318,033) | (10,318,117) | $ (1,619,138) |
Deposits to cooperators, net | ¥ 1,500,406,750 | $ 235,446,560 | ¥ 907,923,380 |
Deposits to institutional coo_4
Deposits to institutional cooperators, net - Additional information (Details) | 12 Months Ended | ||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | |
Deposits to institutional cooperators, net | |||
Deposit assets used to compensate institutional cooperator's loss | ¥ 970,000,000 | ||
Consideration from sale to third party | 10,000,000 | ||
Allowance of deposits to cooperators | 2,026,696 | $ 318,033 | ¥ 10,318,117 |
Allowance for impairment loss of deposits | ¥ 960,000,000 |
Deposits to institutional coo_5
Deposits to institutional cooperators, net - Movement of the provision (Details) | 12 Months Ended | ||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | |
Deposits to institutional cooperators, net | |||
Balance at beginning of the year | ¥ 10,318,117 | $ 1,619,138 | |
Rerversal of provision for deposits to institutional cooperators | (8,291,421) | (1,301,105) | ¥ 10,318,117 |
Balance at end of the year | ¥ 2,026,696 | $ 318,033 | ¥ 10,318,117 |
Property and equipment, net (De
Property and equipment, net (Details) | 12 Months Ended | ||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | |
Property and equipment, net | |||||
Total property and equipment | ¥ 45,922,833 | ¥ 48,268,634 | $ 7,206,294 | ||
Accumulated depreciation | (39,734,571) | (37,132,035) | (6,235,221) | ||
Property and equipment, net | 6,188,262 | 11,136,599 | 971,073 | ||
Depreciation | 6,215,253 | $ 975,309 | 10,114,779 | ¥ 10,544,813 | |
Gains (loss) from the disposal of property and equipment | 180,537 | $ 28,330 | (59,213) | ¥ 2,389 | |
Computer and transmission equipment | |||||
Property and equipment, net | |||||
Total property and equipment | 19,521,668 | 22,107,077 | 3,063,376 | ||
Furniture and office equipment | |||||
Property and equipment, net | |||||
Total property and equipment | 2,781,360 | 3,663,257 | 436,456 | ||
Leasehold improvements | |||||
Property and equipment, net | |||||
Total property and equipment | 22,803,702 | 21,682,197 | 3,578,398 | ||
Motor vehicles | |||||
Property and equipment, net | |||||
Total property and equipment | ¥ 816,103 | ¥ 816,103 | $ 128,064 |
Intangible assets, net (Details
Intangible assets, net (Details) | 12 Months Ended | ||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | |
Intangible assets | |||||
Accumulated amortization | ¥ (6,518,422) | ¥ (4,598,123) | $ (1,022,883) | ||
Intangible assets, net | 36,816,984 | 37,440,407 | 5,777,388 | ||
Insurance broker license | 600,000 | ¥ 26,000,000 | |||
Amortization expenses | 1,920,299 | $ 301,337 | 1,800,749 | ¥ 834,884 | |
Future amortization expenses | |||||
2022 | 1,910,149 | 299,744 | |||
2023 | 1,531,321 | 240,298 | |||
2024 | 1,316,290 | 206,555 | |||
2025 | 1,316,290 | 206,565 | |||
2026 | 1,312,187 | 205,911 | |||
License | |||||
Intangible assets | |||||
Intangible assets, Gross | 26,600,000 | 26,600,000 | 4,174,120 | ||
Software and others | |||||
Intangible assets | |||||
Intangible assets, Gross | ¥ 16,735,406 | ¥ 15,438,530 | $ 2,626,150 | ||
Weighted Average Remaining Amortization Period in Years | 3 years 10 days | 3 years 10 days |
Short-term bank borrowings (Det
Short-term bank borrowings (Details) | 1 Months Ended | 12 Months Ended | ||||||||
Aug. 31, 2021CNY (¥) | Mar. 31, 2021CNY (¥) | Jul. 31, 2020CNY (¥) | Jan. 31, 2020CNY (¥) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Short-term bank borrowings | ||||||||||
Term of short term borrowings | 6 months | 6 months | ||||||||
Short term borrowings | ¥ | ¥ 100,000,000 | ¥ 161,000,000 | ¥ 166,500,000 | ¥ 350,545,000 | ||||||
Repayment of short term borrowings | ¥ 1,715,417 | ¥ 3,215,081 | ¥ 450,545,000 | $ 70,700,342 | ¥ 161,000,000 | ¥ 401,000,000 | ||||
Borrowings secured by Restricted cash | $ | $ 29,050,000 | $ 55,950,000 | ||||||||
weighted average interest rate | 3.17% | 4.04% | 3.17% | 4.04% |
Financial investments (Details)
Financial investments (Details) | 12 Months Ended | ||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | |
Financial investments made during the period | ¥ 112,843,800 | $ 17,707,655 | ¥ 6,000,000 | ||
Interest income | 19,709,140 | 3,092,794 | 21,724,308 | ¥ 19,385,973 | |
Opening balance | 6,000,000 | ||||
Contribution | 112,843,800 | 17,707,655 | 6,000,000 | ||
Downward adjustments including impairment | ¥ 12,538,280 | ||||
Ending Balance | 82,843,800 | 13,000,000 | 6,000,000 | ||
Financial products issued by banks | |||||
Financial investments made during the period | 30,000,000 | 6,000,000 | |||
Interest income | 302,460 | 47,463 | $ 0 | ||
Contribution | 30,000,000 | ¥ 6,000,000 | |||
VC Funds | |||||
Financial investments made during the period | 82,843,800 | 13,000,000 | |||
Gain loss from investments | $ | 0 | ||||
Contribution | 82,843,800 | 13,000,000 | |||
Upward adjustment | $ | 0 | ||||
Ending Balance | ¥ 82,843,800 | $ 13,000,000 |
Long-term investments - Combine
Long-term investments - Combined financial information for the investee companies (Details) | 12 Months Ended | ||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | |
Assets: | |||||
Cash and cash equivalents | ¥ 584,762,494 | ¥ 746,388,408 | ¥ 1,005,980,251 | $ 91,761,996 | |
Financial investments | 82,843,800 | 6,000,000 | 13,000,000 | ||
Prepaid expenses and other current assets | 213,127,478 | 403,776,319 | 33,444,352 | ||
Long-term investments | 560,038,353 | 295,615,200 | 87,882,238 | ||
Other non-current assets | 31,277,378 | 51,458,356 | 4,908,103 | ||
Total assets | 7,342,738,892 | 7,498,009,708 | 1,152,235,961 | ||
Liabilities: | |||||
Short-term bank borrowings | 166,500,000 | 350,545,000 | 26,127,483 | ||
Accrued expenses and other current liabilities | 268,966,550 | 323,748,430 | 42,206,721 | ||
Other non-current liabilities | 12,019,348 | 27,614,943 | 1,886,098 | ||
Total liabilities | 3,365,843,931 | 4,421,966,056 | 528,174,360 | ||
Total net revenue | 3,626,465,105 | $ 569,071,510 | 2,192,957,458 | 3,088,049,995 | |
Net income (loss) | 825,407,023 | 129,524,374 | (1,308,502,575) | ¥ 774,276,129 | |
Consolidated investee companies | |||||
Assets: | |||||
Cash and cash equivalents | 327,483,767 | 1,090,349,265 | 51,389,349 | ||
Financial investments | 4,291,549,384 | 3,361,800,611 | 673,437,747 | ||
Prepaid expenses and other current assets | 1,331,030,237 | 90,141,356 | 208,867,690 | ||
Long-term investments | 538,864,786 | 84,559,644 | |||
Other non-current assets | 29,069,461 | 18,428,513 | 4,561,633 | ||
Total assets | 6,517,997,635 | 4,560,719,745 | 1,022,816,063 | ||
Liabilities: | |||||
Short-term bank borrowings | 136,611,562 | 118,754,431 | 21,437,335 | ||
Accrued expenses and other current liabilities | 742,552,522 | 742,087,584 | 116,522,694 | ||
Long-term borrowings | 2,611,819,014 | 1,937,000,000 | 409,851,397 | ||
Other non-current liabilities | 5,738,967 | 86,280 | 900,569 | ||
Total liabilities | 3,496,722,065 | 2,797,928,295 | $ 548,711,995 | ||
Total net revenue | 315,420,375 | 49,496,340 | 115,828,103 | ||
Net income (loss) | ¥ 123,545,201 | $ 19,386,938 | ¥ 72,275,985 |
Long-term investments - Additio
Long-term investments - Additional Information (Details) - CNY (¥) | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Long-term investments | |||||
Impairment of long-term investments | ¥ 12,538,280 | ||||
Acquired equity interest through nominee arrangement | |||||
Long-term investments | |||||
Payments to acquire equity interest | ¥ 40,000,000 | ||||
Equity interest acquired (in percentage) | 15.00% | 40.00% | |||
Capital contribution received in the process of winding up | ¥ 40,000,000 | ||||
Jiangxi Ruijing | |||||
Long-term investments | |||||
Payments to acquire equity interest | ¥ 225,000,000 | ||||
Equity interest acquired (in percentage) | 15.00% | ||||
Private entities | |||||
Long-term investments | |||||
Payments to acquire equity interest | ¥ 3,500,000 | ¥ 15,000,000 | |||
Equity interest acquired (in percentage) | 20.00% | 10.00% | |||
Maximum percentage of voting power of the investee | 17.00% | ||||
Shenyang Tianxinhao Technology Limited | |||||
Long-term investments | |||||
Payments to acquire equity interest | ¥ 315,000,000 | ||||
Equity interest acquired (in percentage) | 45.00% |
Accrued expenses and other cu_3
Accrued expenses and other current liabilities (Details) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Accrued expenses and other current liabilities | |||
Fund attributable to institutional investors(1) | ¥ 68,931,284 | $ 10,816,823 | ¥ 16,485,383 |
Accrued interest payable of Consolidated Trusts | 1,219,993 | 191,443 | 25,320,873 |
Professional fee payable | 25,874,860 | 4,060,330 | 27,648,350 |
Commission fee payable(2) | 81,862,576 | 12,846,025 | 101,285,353 |
Insurance fee payable(3) | 14,360,705 | 2,253,508 | 65,906,706 |
Lease liabilities | ¥ 12,331,166 | $ 1,935,029 | 16,871,785 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Total accrued expenses and other current liabilities | Total accrued expenses and other current liabilities | |
Other accrued expenses | ¥ 64,385,966 | $ 10,103,563 | 70,229,980 |
Total accrued expenses and other current liabilities | ¥ 268,966,550 | $ 42,206,721 | ¥ 323,748,430 |
Guarantee liabilities (Details)
Guarantee liabilities (Details) | 12 Months Ended | |||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2020USD ($) | |
Guarantee liabilities | ||||||
Guarantee liabilities at beginning of the year | ¥ 9,789,626 | $ 1,536,206 | ¥ 17,475,303 | ¥ 20,898,201 | ||
Provision at the inception of new loans | 184,036 | |||||
Net payout | (12,961,717) | 501,581 | 5,473,326 | (6,235,879) | ||
Released on expiration | (24,284) | (2,033,976) | (14,337,573) | (5,118,616) | ||
Contingent liability | (3,811) | 880,948 | 7,747,561 | |||
Guarantee liabilities at end of the year | 9,789,626 | $ 1,536,206 | 17,475,303 | |||
Maximum potential undiscounted future payment | 15,210,557 | $ 2,331,120 | ||||
Xiaoying Credit Loans | ||||||
Guarantee liabilities | ||||||
Guarantee liabilities at beginning of the year | 5,139,742 | 806,538 | 9,886,957 | 19,297,719 | ||
Net payout | (12,961,717) | 1,227,439 | 9,192,069 | (6,333,472) | ||
Released on expiration | (2,033,976) | (14,162,703) | (3,366,501) | |||
Contingent liability | 55,034 | 289,211 | ||||
Guarantee liabilities at end of the year | ¥ 5,139,742 | $ 806,538 | 9,886,957 | |||
Remaining weighted average contractual term (Month) | 3 months 1 day | 3 months 1 day | ||||
Estimated net default rate (in percentage) | 26.06% | 26.06% | ||||
Maximum potential undiscounted future payment | ¥ 10,560,672 | $ 1,618,494 | ||||
Xiaoying Housing Loan | ||||||
Guarantee liabilities | ||||||
Guarantee liabilities at beginning of the year | 129,996 | 1,600,482 | ||||
Provision at the inception of new loans | 184,036 | |||||
Net payout | 42,660 | 97,593 | ||||
Released on expiration | (174,870) | (1,752,115) | ||||
Guarantee liabilities at end of the year | 129,996 | |||||
Internet Channel | ||||||
Guarantee liabilities | ||||||
Guarantee liabilities at beginning of the year | 4,649,884 | 729,668 | 7,458,350 | |||
Net payout | (725,858) | (3,761,403) | ||||
Released on expiration | (24,284) | |||||
Contingent liability | $ (3,811) | 825,914 | 7,458,350 | |||
Guarantee liabilities at end of the year | ¥ 4,649,884 | $ 729,668 | ¥ 7,458,350 | |||
Remaining weighted average contractual term (Month) | 2 months 6 days | 2 months 6 days | ||||
Estimated net default rate (in percentage) | 100.00% | 100.00% | ||||
Maximum potential undiscounted future payment | ¥ 4,649,885 | $ 712,626 | ||||
Adoption of ASU 2016-13 | ||||||
Guarantee liabilities | ||||||
Provision at the inception of new loans | 3,196,375 | |||||
Adoption of ASU 2016-13 | Xiaoying Credit Loans | ||||||
Guarantee liabilities | ||||||
Provision at the inception of new loans | 7,821,975 | |||||
Adoption of ASU 2016-13 | Internet Channel | ||||||
Guarantee liabilities | ||||||
Provision at the inception of new loans | (4,625,600) | |||||
Adoption of ASU 2016-13 | Cumulative effect of accounting change | ||||||
Guarantee liabilities | ||||||
Guarantee liabilities at beginning of the year | 297,622 | |||||
Guarantee liabilities at end of the year | 297,622 | |||||
Adoption of ASU 2016-13 | Cumulative effect of accounting change | Xiaoying Credit Loans | ||||||
Guarantee liabilities | ||||||
Guarantee liabilities at beginning of the year | 168,385 | |||||
Guarantee liabilities at end of the year | 168,385 | |||||
Adoption of ASU 2016-13 | Cumulative effect of accounting change | Xiaoying Housing Loan | ||||||
Guarantee liabilities | ||||||
Guarantee liabilities at beginning of the year | 2,214 | |||||
Guarantee liabilities at end of the year | 2,214 | |||||
Adoption of ASU 2016-13 | Cumulative effect of accounting change | Internet Channel | ||||||
Guarantee liabilities | ||||||
Guarantee liabilities at beginning of the year | ¥ 127,023 | |||||
Guarantee liabilities at end of the year | ¥ 127,023 |
Related party balances and tr_2
Related party balances and transactions (Details) | 12 Months Ended | |||||
Dec. 31, 2021CNY (¥)item | Dec. 31, 2021USD ($)item | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥)item | Jan. 31, 2022CNY (¥) | Dec. 31, 2021USD ($) | |
Related party balances and transactions | ||||||
Remaining amount receivable | ¥ 99,235,400 | ¥ 258,012,040 | $ 15,572,200 | |||
Interest income | 17,269,246 | $ 2,709,921 | 28,774,549 | ¥ 27,111,557 | ||
Total net revenue recognized related to service fees of facilitation service for loans | 0 | 0 | ¥ 2,240,572 | |||
Loan to a related party | 150,000,000 | 23,538,273 | ||||
Interest income amount | ¥ 150,000,000 | $ 23,538,273 | ||||
Jiangxi Ruijing | ||||||
Related party balances and transactions | ||||||
Number of earnings rights purchased | item | 2 | 2 | 2 | |||
Jiangxi Ruijing | Loan 1 | ||||||
Related party balances and transactions | ||||||
Loan portfolios transferred | ¥ 100,000,000 | ¥ 100,000,000 | ||||
Jiangxi Ruijing | Loan 2 | ||||||
Related party balances and transactions | ||||||
Amount received from repayments | 160,000,000 | ¥ 20,000,000 | ||||
Remaining amount receivable | ¥ 100,000,000 | |||||
Loan portfolios transferred | ¥ 280,000,000 | 280,000,000 | ||||
Zijinzhonghao (Zhejiang) Investment Co., Ltd. | ||||||
Related party balances and transactions | ||||||
Loan portfolios transferred | ¥ 108,700,000 | |||||
Financing guarantee company | ||||||
Related party balances and transactions | ||||||
Total loan facilidated, service fee percentage | 5.90% | 5.90% | ||||
Total net revenue recognized related to service fees of facilitation service for loans | ¥ 78,801,582 | $ 12,365,688 | ||||
Contract assets | 66,761,250 | $ 10,476,297 | ||||
Shenyang Tianxinhao Technology Limited | ||||||
Related party balances and transactions | ||||||
Loan to a related party | 150,000,000 | 23,538,273 | ||||
Interest income amount | ¥ 750,000 | $ 117,691 | ||||
Interest rate | 0.50% | 0.50% |
Income taxes - Tax rates (Detai
Income taxes - Tax rates (Details) | 12 Months Ended | |||||
Dec. 31, 2021CNY (¥)entitysubsidiary | Dec. 31, 2021USD ($)entitysubsidiary | Dec. 31, 2020CNY (¥)entity | Dec. 31, 2020USD ($)entity | Dec. 31, 2019CNY (¥)subsidiaryentity | Dec. 31, 2019USD ($)subsidiaryentity | |
Income taxes | ||||||
Income tax rate (as a percent) | 25.00% | 25.00% | ||||
Income tax benefit (expense) | ¥ 368,735,701 | $ 57,862,678 | ¥ (299,878,635) | ¥ (93,102,643) | ||
Tax holiday period (in years) | 2 years | 2 years | ||||
Hong Kong | ||||||
Income taxes | ||||||
Income tax rate (as a percent) | 16.50% | 16.50% | ||||
Income tax benefit (expense) | $ | $ 0 | $ 0 | $ 0 | |||
Pre tax income | ¥ | ¥ 0 | ¥ 0 | ¥ 0 | |||
PRC. | ||||||
Income taxes | ||||||
Income tax rate (as a percent) | 25.00% | 25.00% | ||||
Percentage of reduced enterprise income tax rate | 15.00% | 15.00% | ||||
Statute of limitations period (in years) | 3 years | 3 years | ||||
Extension period for statute of limitations under special circumstances (in years) | 5 years | 5 years | ||||
Underpayment of tax liability listed as special circumstance | ¥ | ¥ 100,000 | |||||
Statute of limitations period for related party transaction (in years) | 10 years | 10 years | ||||
Statute of limitations period for tax evasion (in years) | 0 years | 0 years | ||||
PRC. | Subsidiaries in Shenzhen | Tax year 2019 to 2021 | ||||||
Income taxes | ||||||
Income tax rate (as a percent) | 12.50% | 12.50% | ||||
VIE in Shenzhen | ||||||
Income taxes | ||||||
Number of Variable Interest Entities | entity | 1 | 1 | 1 | 1 | 1 | 1 |
VIE in Shenzhen | Tax year 2019 to 2021 | ||||||
Income taxes | ||||||
Income tax rate (as a percent) | 15.00% | 15.00% | ||||
Qualified software enterprise | PRC. | ||||||
Income taxes | ||||||
Number of subsidiary | subsidiary | 1 | 1 | ||||
Tax reduction (as a percent) | 50.00% | 50.00% | ||||
Tax reduction period (in years) | 3 years | 3 years | ||||
Qualified Enterprise | ||||||
Income taxes | ||||||
Number of subsidiary | subsidiary | 1 | 1 | ||||
Income tax rate (as a percent) | 15.00% | 15.00% | ||||
Not Qualified Enterprise | ||||||
Income taxes | ||||||
Income tax rate (as a percent) | 15.00% | 15.00% |
Income taxes - Current and defe
Income taxes - Current and deferred component of income tax expense (benefit) (Details) | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Income taxes | ||||
Current tax expense (benefit) | ¥ 35,315,597 | $ 5,541,788 | ¥ (157,326,719) | ¥ 71,809,290 |
Deferred tax expense (benefit) | 333,420,104 | 52,320,890 | (142,551,916) | (164,911,933) |
Total income tax expense (benefit) | ¥ 368,735,701 | $ 57,862,678 | ¥ (299,878,635) | ¥ (93,102,643) |
Income taxes - Pre-tax income (
Income taxes - Pre-tax income (Details) | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Income taxes [Line Items] | ||||
Pre-tax income | ¥ 1,190,800,384 | $ 186,862,566 | ¥ (1,601,534,136) | ¥ 663,915,450 |
Cayman Islands | ||||
Income taxes [Line Items] | ||||
Pre-tax income | (6,463,771) | (1,014,307) | (15,160,941) | (9,978,594) |
Hong Kong | ||||
Income taxes [Line Items] | ||||
Pre-tax income | 948,973 | 148,915 | 911,529 | (140,208) |
PRC. | ||||
Income taxes [Line Items] | ||||
Pre-tax income | ¥ 1,196,315,182 | $ 187,727,958 | ¥ (1,587,284,724) | ¥ 674,034,252 |
Income taxes - Reconciliation b
Income taxes - Reconciliation between the income taxes expense (benefit) computed by applying the PRC tax rate and the actual provision for income taxes (Details) | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Income taxes | ||||
Income tax rate (as a percent) | 25.00% | 25.00% | ||
Expected tax at PRC rate | ¥ 297,700,096 | $ 46,715,642 | ¥ (400,383,534) | ¥ 165,978,862 |
Other expenses not deductible for income tax purposes | 24,325,078 | 3,817,136 | 26,628,325 | 27,243,710 |
Share based compensation expense not deductible for income tax purposes | 22,108,693 | 3,469,336 | 20,035,035 | 39,101,140 |
Effect of tax holiday and preferential tax rate | (25,716,398) | (4,035,464) | 2,160,562 | (279,823,276) |
Effect of different tax rate of foreign subsidiary operation in other jurisdictions | 1,535,280 | 240,919 | 3,712,755 | 2,853,547 |
Effect of change in tax rate | (1,547,465) | |||
Research and development tax deduction | (14,040,027) | (2,203,187) | (12,657,389) | |
Unrecognized tax benefits for prior years' transfer pricing arrangement | (22,239,451) | (3,489,855) | 32,092,388 | |
Tax on undistributed loss of VIEs | (46,419,145) | |||
Valuation allowance movement | 99,384,200 | 15,595,550 | 9,155,075 | 4,451,281 |
Others | (14,321,770) | (2,247,399) | 8,268,224 | 6,168,627 |
Total income tax expense (benefit) | ¥ 368,735,701 | $ 57,862,678 | ¥ (299,878,635) | ¥ (93,102,643) |
Income taxes - Effect of Tax ho
Income taxes - Effect of Tax holiday and preferential tax rate (Details) | 12 Months Ended | |||
Dec. 31, 2021CNY (¥)¥ / shares | Dec. 31, 2021USD ($)$ / shares | Dec. 31, 2020CNY (¥)¥ / shares | Dec. 31, 2019CNY (¥)¥ / shares | |
Income taxes | ||||
The aggregate amount tax benefit(expense) of the tax holiday and preferential tax rate | ¥ 25,716,398 | $ 4,035,464 | ¥ 2,160,562 | ¥ 279,823,276 |
Aggregate effect on basic net income per share | (per share) | ¥ 0.08 | $ 0.01 | ¥ 0.01 | ¥ 0.89 |
Aggregate effect on diluted net income per share | (per share) | ¥ 0.08 | $ 0.01 | ¥ (0.01) | ¥ 0.88 |
Income taxes - Components of th
Income taxes - Components of the deferred tax assets and liabilities (Details) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Jan. 01, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
Deferred tax assets: | ||||||
Long-term investments | ¥ 5,325,000 | $ 835,609 | ¥ 5,325,000 | |||
Accrued expenses | 36,045,445 | 5,656,317 | 27,280,677 | |||
Accounts receivables contract assets | 28,982,373 | 4,547,967 | 79,593,687 | |||
Guarantee liabilities | 1,017,108 | 159,606 | 62,048,651 | |||
Financial guarantee derivatives | 199,865,748 | 31,363,297 | 157,281,000 | |||
Loan receivable from Xiaoying Housing Loans | 16,456,881 | 2,582,444 | 16,551,270 | |||
Loans receivable from Xiaoying Credit Loans and Xiaoying Revolving Loans | 79,578,524 | 12,487,607 | 60,479,731 | |||
Operating loss carryforwards | 43,644,917 | 6,848,840 | 214,313,889 | |||
Earnings rights associated with loan assets | 191,150 | 29,996 | 496,990 | |||
Deposits to institutional cooperators | 506,674 | 79,508 | 2,579,529 | |||
Investment in Consolidated Trusts | 11,509,170 | 1,806,040 | 808,113 | |||
Lease liabilities | 6,599,483 | 1,035,602 | 9,479,662 | |||
Total deferred tax assets | 429,722,473 | 67,432,833 | 636,238,199 | |||
Valuation allowance | (113,394,230) | (17,794,029) | (14,010,030) | $ (2,198,479) | ¥ (4,854,955) | |
Total deferred tax assets, net of valuation allowance | 316,328,243 | 49,638,804 | 622,228,169 | |||
Deferred tax liabilities: | ||||||
Property and equipment | 488,150 | 76,601 | 581,854 | |||
Long-term investments | 4,142,756 | 650,088 | 6,778,801 | |||
Right-of-use assets | 6,299,837 | 988,583 | 9,214,921 | |||
Investment in Consolidated Partnerships | 30,528,966 | 4,790,661 | ||||
Total deferred tax liabilities | 41,459,709 | 6,505,933 | 16,575,576 | |||
Increase in deferred tax asset | ¥ 274,868,534 | $ 43,132,871 | ¥ 605,652,593 | |||
Cumulative effect of accounting change | Adoption of ASU 2016-13 | ||||||
Deferred tax liabilities: | ||||||
Increase in deferred tax asset | ¥ 5,750,000 |
Income taxes - Movement of the
Income taxes - Movement of the valuation allowance (Details) | 12 Months Ended | ||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2021USD ($) | |
Income taxes | |||||
Balance at the beginning of the year | ¥ 14,010,030 | $ 2,198,479 | ¥ 4,854,955 | ||
Addition | 99,384,200 | 15,595,550 | 9,155,075 | ||
Balance at the end of the year | 113,394,230 | 17,794,029 | 14,010,030 | $ 2,198,479 | |
Operating loss carryforwards | 43,644,917 | 214,313,889 | $ 6,848,840 | ||
Operating loss carry forwards from subsidiaries | 921,429,605 | 207,062,455 | 32,492,618 | ||
Tax benefit on operating loss carry forwards | 25,408,164 | 200,303,859 | 3,987,095 | ||
Tax benefits utilised amount | 196,077,136 | ¥ 0 | 30,768,781 | ||
Deferred tax expense | ¥ 103,563,700 | $ 16,251,404 | |||
Withholding tax rate on dividends (as a percent) | 10.00% | 10.00% | |||
Withholding tax rate on dividends if investors qualifies as beneficial owner with holdings above the threshold percentage (as a percent) | 5.00% | 5.00% | |||
Threshold beneficial owner percentage determining withholding income tax rate (as a percent) | 25.00% | 25.00% | 25.00% | 25.00% | |
Withholding tax rate on dividends if investors qualifies as beneficial owner with holdings below the threshold percentage (as a percent) | 10.00% | 10.00% | |||
Cumulative profits | ¥ 2,265,192,430 | 355,458,122 | |||
Unrecognized deferred tax liabilities | 226,519,243 | $ 35,545,812 | |||
Tax effects of distribution of VIE's earnings | ¥ 0 | ¥ 0 | |||
Subsidiaries and VIEs and subsidiaries of the VIEs | |||||
Income taxes | |||||
Threshold beneficial owner percentage determining withholding income tax rate (as a percent) | 50.00% | 50.00% |
Income taxes - Unrecognized tax
Income taxes - Unrecognized tax benefit (Details) | Dec. 31, 2020CNY (¥) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2021USD ($) |
Roll-forward of unrecognized tax benefits | |||||
Balance at beginning of the year | ¥ 159,483,176 | $ 25,026,390 | ¥ 246,394,607 | ||
Additions for tax positions taken in prior years | 32,092,388 | ||||
Additions for tax positions taken in current year | 19,087,010 | 2,995,168 | 34,252,413 | ||
Reductions for tax positions | (139,959,819) | (21,962,750) | (153,256,232) | ||
Balance at end of the year | ¥ 159,483,176 | 38,610,367 | 6,058,808 | 159,483,176 | |
Accrued interest | 11,885,624 | 1,154,145 | 11,885,624 | $ 181,111 | |
Tax impact arising from impairment losses and charge-offs of accounts receivable and contract assets | 28,757,431 | 4,512,668 | 79,593,688 | ||
Tax impact arising from impairment losses and charge-offs of accounts receivable and contract assets | 0 | 47,797,100 | |||
Tax impact related to the provision for contingent guarantee liabilities | 32,092,388 | 9,852,936 | 1,546,140 | ||
Deferred tax to be recognized for unrecognized tax position of prior year | 34,252,413 | 0 | |||
Unrecognized tax benefit, if recognized upon examination settlement or statute expiration would effect tax rate | ¥ 32,092,388 | 0 | 32,092,388 | ||
Interest related to unrecognized tax benefit | ¥ 10,731,479 | $ 1,684,003 | ¥ 8,079,661 |
Net income (loss) per share a_3
Net income (loss) per share and net income (loss) attributable to common stockholders (Details) | 12 Months Ended | |||
Dec. 31, 2021CNY (¥)¥ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | |
Net income (loss) per share and net income (loss) attributable to common stockholders | ||||
Net income (loss) attributable to X Financial | ¥ 825,407,023 | $ 129,524,374 | ¥ (1,308,502,575) | ¥ 774,276,129 |
Shares (denominator): | ||||
Weighted average number of ordinary shares used in computing basic EPS | 329,230,273 | 329,230,273 | 321,236,089 | 313,757,887 |
Basic net income (loss) per share | (per share) | ¥ 2.51 | $ 0.39 | ¥ (4.07) | ¥ 2.47 |
Diluted effects of stock options and RSUs | 7,650,808 | 7,650,808 | 5,989,505 | |
Weighted average number of ordinary shares used in computing diluted EPS | 336,881,082 | 336,881,082 | 321,236,089 | 319,747,392 |
Diluted net income (loss) per share | (per share) | ¥ 2.45 | $ 0.38 | ¥ (4.07) | ¥ 2.42 |
Net income (loss) per share a_4
Net income (loss) per share and net income (loss) attributable to common stockholders - Anti-dilutive shares (Details) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stock options. | |||
Anti-dilutive shares | |||
Anti-dilutive shares not included in the computation of diluted income (loss) per share | 32,139,614 | 52,198,603 | 52,405,826 |
Restricted stock units | |||
Anti-dilutive shares | |||
Anti-dilutive shares not included in the computation of diluted income (loss) per share | 27,100,812 | 6,285,294 | 3,689,400 |
Share-based compensation (Detai
Share-based compensation (Details) | Nov. 10, 2021shares | Apr. 30, 2019shares | Oct. 31, 2018shares | May 09, 2018$ / sharesshares | Apr. 30, 2018shares | Oct. 11, 2017shares | May 03, 2016shares | Jun. 29, 2015shares | Jan. 25, 2015shares | Dec. 31, 2021CNY (¥)¥ / shares | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥)¥ / shares | Dec. 31, 2019CNY (¥)¥ / shares |
Share-based compensation | |||||||||||||
Number of shares granted | 155,000 | 475,000 | 40,000,000 | 841,054 | 16,616,000 | 7,425,000 | 630,000 | 13,843,645 | |||||
Expiration period (in years) | 10 years | 10 years | |||||||||||
Exercise price (in dollars per share) | $ / shares | $ 4.75 | ||||||||||||
Share-based compensation expense | ¥ 70,588,710 | $ 11,274,723 | ¥ 150,943,580 | ¥ 71,849,299 | |||||||||
Weighted-average grant date fair value of the options | ¥ / shares | ¥ 9.58 | ¥ 9.99 | ¥ 10.33 | ||||||||||
Minimum | |||||||||||||
Share-based compensation | |||||||||||||
Vesting period (in years) | 3 years | 3 years | |||||||||||
Maximum | |||||||||||||
Share-based compensation | |||||||||||||
Vesting period (in years) | 4 years | 4 years | |||||||||||
Stock options. | |||||||||||||
Share-based compensation | |||||||||||||
Unvested share options granted | 9,429,984 |
Share-based compensation - Stoc
Share-based compensation - Stock option valuation (Details) | Apr. 30, 2019¥ / shares | Oct. 31, 2018¥ / shares | May 09, 2018¥ / shares | Apr. 30, 2018¥ / shares | Oct. 11, 2017¥ / shares | May 03, 2016¥ / shares | Jun. 29, 2015¥ / shares | Jan. 25, 2015¥ / shares | Dec. 31, 2021¥ / shares | Dec. 31, 2020¥ / shares |
Share-based compensation | ||||||||||
Fair value of underlying ordinary shares (in dollars per share) | ¥ 16.65 | ¥ 26.74 | ¥ 38.14 | ¥ 41.33 | ¥ 30.29 | ¥ 16.98 | ¥ 9.66 | ¥ 4.91 | ||
Exercise Price (in dollars per share) | ¥ 31.96 | ¥ 27.93 | ¥ 30.27 | ¥ 25.42 | ¥ 0.27 | ¥ 0.27 | ||||
Expected Volatility per annum (as a percent) | 30.15% | 43.90% | 39.30% | 45.47% | 38.60% | 42.00% | 38.00% | 43.00% | ||
Risk-Free Rate (as a percent) | 2.97% | 3.15% | 2.94% | 2.96% | 2.35% | 1.81% | 2.33% | 1.81% | ||
Exercise Multiple | 2.5 | 2.5 | 2.5 | 2.5 | 2.5 | 2.5 | ||||
Dividend Yield ( as a percent ) | ||||||||||
Time to Maturity (Years) | 10 years | 10 years | 5 years | 10 years | 10 years | 10 years | 10 years | 10 years | ||
Minimum | ||||||||||
Share-based compensation | ||||||||||
Exercise Price (in dollars per share) | ¥ 0.27 | ¥ 0.27 | ¥ 0.27 | ¥ 0.27 | ||||||
Exercise Multiple | 5.58 | |||||||||
Maximum | ||||||||||
Share-based compensation | ||||||||||
Exercise Price (in dollars per share) | ¥ 27.02 | ¥ 10.71 | ¥ 31.96 | ¥ 31.96 | ||||||
Exercise Multiple | 38.33 |
Share-based compensation - St_2
Share-based compensation - Stock option activity (Details) | Apr. 30, 2019¥ / sharesshares | Oct. 31, 2018¥ / sharesshares | May 09, 2018$ / sharesshares | May 09, 2018¥ / sharesshares | Apr. 30, 2018¥ / sharesshares | Oct. 11, 2017¥ / sharesshares | May 03, 2016¥ / sharesshares | Jun. 29, 2015¥ / sharesshares | Jan. 25, 2015¥ / sharesshares | Dec. 31, 2021CNY (¥)¥ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares |
Number of Options | |||||||||||
Outstanding at beginning of the year (in shares) | shares | 52,198,603 | ||||||||||
Granted (in shares) | shares | 155,000 | 475,000 | 40,000,000 | 40,000,000 | 841,054 | 16,616,000 | 7,425,000 | 630,000 | 13,843,645 | ||
Exercised (in shares) | shares | 3,490,378 | ||||||||||
Forfeited/Cancelled (in shares) | shares | 9,959,692 | ||||||||||
Outstanding at end of the year (in shares) | shares | 38,748,533 | 52,198,603 | |||||||||
Vested and expected to vest, Number of Options (in shares) | shares | 38,748,533 | ||||||||||
Exercisable, Number of Options (in shares) | shares | 6,154,008 | ||||||||||
Exercise Price | |||||||||||
Granted (in dollars per share) | $ / shares | $ 4.75 | ||||||||||
Exercised (in dollars per share) | ¥ 0.27 | ||||||||||
Outstanding at end of the year (in dollars per share) | ¥ 31.96 | ¥ 27.93 | ¥ 30.27 | ¥ 25.42 | ¥ 0.27 | ¥ 0.27 | |||||
Remaining Contractual | |||||||||||
Granted (in years) | 0 years | ||||||||||
Exercised (in years) | 0 years | ||||||||||
Forfeited/Cancelled (in years) | 0 years | ||||||||||
Intrinsic value of options | |||||||||||
Outstanding at beginning of the year | ¥ | ¥ 19,538,815 | ||||||||||
Outstanding at end of the year | ¥ | 20,378,161 | ¥ 19,538,815 | |||||||||
Vested and expected to vest, Intrinsic value of options | ¥ | 20,378,161 | ||||||||||
Exercisable, Intrinsic value of options | ¥ | ¥ 14,821,392 | ||||||||||
Minimum | |||||||||||
Exercise Price | |||||||||||
Outstanding at beginning of the year (in dollars per share) | ¥ 0.27 | ||||||||||
Forfeited/Cancelled (in dollars per share) | 0.27 | ||||||||||
Outstanding at end of the year (in dollars per share) | ¥ 0.27 | ¥ 0.27 | 0.27 | ¥ 0.27 | |||||||
Vested and expected to vest, Exercise Price (in dollars per share) | 0.27 | ||||||||||
Exercisable, Exercise Price (in dollars per share) | ¥ 0.27 | ||||||||||
Remaining Contractual | |||||||||||
Outstanding remaining contractual term(in years) | 3 years 25 days | 4 years 25 days | |||||||||
Vested and expected to vest, Remaining Contractual (in years) | 3 years 25 days | ||||||||||
Exercisable, Remaining Contractual (in years) | 3 years 25 days | ||||||||||
Maximum | |||||||||||
Exercise Price | |||||||||||
Outstanding at beginning of the year (in dollars per share) | ¥ 31.96 | ||||||||||
Forfeited/Cancelled (in dollars per share) | 30.27 | ||||||||||
Outstanding at end of the year (in dollars per share) | ¥ 27.02 | ¥ 10.71 | 31.96 | ¥ 31.96 | |||||||
Vested and expected to vest, Exercise Price (in dollars per share) | 31.96 | ||||||||||
Exercisable, Exercise Price (in dollars per share) | ¥ 31.96 | ||||||||||
Remaining Contractual | |||||||||||
Outstanding remaining contractual term(in years) | 7 years 3 months 29 days | 8 years 3 months 29 days | |||||||||
Vested and expected to vest, Remaining Contractual (in years) | 7 years 3 months 29 days | ||||||||||
Exercisable, Remaining Contractual (in years) | 7 years 3 months 29 days |
Share-based compensation - Comp
Share-based compensation - Compensation cost (Details) | 12 Months Ended | ||||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2021USD ($) | |
Share-based compensation expense | |||||||
Share-based compensation expense | ¥ 70,588,710 | $ 11,274,723 | ¥ 150,943,580 | ¥ 71,849,299 | |||
Total unrecognized compensation expense | ¥ 11,094,017 | 85,785,176 | 232,061,272 | $ 1,718,377 | |||
weighted-average period (in years) | 1 year 3 months 7 days | 1 year 3 months 7 days | |||||
Deferred tax benefit recognized | $ | $ 0 | $ 0 | $ 0 | ||||
Origination and servicing | |||||||
Share-based compensation expense | |||||||
Share-based compensation expense | ¥ 21,345,909 | 3,349,639 | 35,885,086 | 88,671,136 | |||
General and administrative | |||||||
Share-based compensation expense | |||||||
Share-based compensation expense | 48,655,490 | 7,635,108 | 32,794,113 | 60,445,030 | |||
Sales and marketing | |||||||
Share-based compensation expense | |||||||
Share-based compensation expense | 1,847,900 | 289,976 | 1,909,511 | 1,827,414 | |||
Stock options | Origination and servicing | |||||||
Share-based compensation expense | |||||||
Share-based compensation expense | 10,819,642 | 1,697,839 | 6,173,735 | 446,808 | |||
Stock options | General and administrative | |||||||
Share-based compensation expense | |||||||
Share-based compensation expense | 5,321,620 | 835,078 | 3,064,908 | 5,717,025 | |||
Stock options | Sales and marketing | |||||||
Share-based compensation expense | |||||||
Share-based compensation expense | 444,211 | 69,706 | 312,785 | 8,682 | |||
Restricted stock units | |||||||
Share-based compensation expense | |||||||
Share-based compensation expense | 16,585,473 | $ 2,602,623 | 9,551,428 | 6,172,515 | |||
Total unrecognized compensation expense | ¥ 141,127,667 | 33,499,672 | 34,246,159 | $ 21,859,585 | |||
weighted-average period (in years) | 3 years 7 months 28 days | 3 years 7 months 28 days | |||||
Deferred tax benefit recognized | ¥ | ¥ 0 | ¥ 0 | ¥ 0 |
Share-based compensation - Rest
Share-based compensation - Restricted stocks unit (Details) | Nov. 10, 2021shares | Oct. 31, 2020shares | Apr. 30, 2020shares | Jan. 21, 2020shares | Nov. 20, 2019shares | Aug. 13, 2019shares | Apr. 15, 2019shares | Dec. 31, 2021CNY (¥)¥ / sharesshares | Dec. 31, 2021USD ($)shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Expiration term | 10 years | 10 years | |||||||
Stock options cancelled (in shares) | 9,959,692 | 9,959,692 | |||||||
Share-based Goods and Nonemployee Services Transaction, Modification of Terms, Incremental Compensation Cost | ¥ | ¥ 360,592 | ||||||||
Minimum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting term | 3 years | 3 years | |||||||
Maximum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting term | 4 years | 4 years | |||||||
Restricted stock units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares granted | 26,657,998 | 26,657,998 | |||||||
Expiration term | 0 years | 10 years | 10 years | ||||||
Share-based Goods and Nonemployee Services Transaction, Modification of Terms, Incremental Compensation Cost | $ | $ 51,796 | ||||||||
Number of Restricted Shares | |||||||||
Outstanding opening balance (in shares) | 7,535,294 | 7,535,294 | |||||||
Granted (in shares) | 26,657,998 | 26,657,998 | |||||||
Vested (in shares) | 1,469,751 | 1,469,751 | |||||||
Forfeited (in shares) | 307,926 | 307,926 | |||||||
Outstanding ending balance (in shares) | 32,415,615 | 32,415,615 | |||||||
Weighted-Average Grant-Date Fair Value | |||||||||
Outstanding opening balance (in dollars per share) | ¥ / shares | ¥ 6.49 | ||||||||
Granted (in dollars per share) | ¥ / shares | 4.97 | ||||||||
Vested (in dollars per share) | ¥ / shares | 6.19 | ||||||||
Forfeited (in dollars per share) | ¥ / shares | 5.65 | ||||||||
Outstanding ending balance (in dollars per share) | ¥ / shares | ¥ 5.18 | ||||||||
Restricted stock units | Minimum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting term | 2 years | 3 years | 3 years | ||||||
Restricted stock units | Maximum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting term | 3 years | 4 years | 4 years | ||||||
Restricted stock units | Directors | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares granted | 150,000 | ||||||||
Number of Restricted Shares | |||||||||
Granted (in shares) | 150,000 | ||||||||
Restricted stock units | Certain employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares granted | 550,000 | 673,300 | 4,600,000 | 1,789,400 | |||||
Number of Restricted Shares | |||||||||
Granted (in shares) | 550,000 | 673,300 | 4,600,000 | 1,789,400 | |||||
Restricted stock units | Certain senior managements | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares granted | 250,000 | 1,500,000 | |||||||
Stock options cancelled (in shares) | 250,000 | 1,500,000 | |||||||
Number of Restricted Shares | |||||||||
Granted (in shares) | 250,000 | 1,500,000 | |||||||
Restricted stock units | Certain Senior Managements And Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Unvested share options granted | 26,657,998 | ||||||||
Expiration term | 10 years | ||||||||
Restricted stock units | Certain Senior Managements And Employees | Minimum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting term | 3 years | ||||||||
Restricted stock units | Certain Senior Managements And Employees | Maximum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting term | 4 years |
Statutory reserves and restri_2
Statutory reserves and restricted net assets (Details) | 12 Months Ended | ||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | |
Statutory reserves and restricted net assets | |||
Minimum percentage of after tax profit to be allocated to statutory reserve | 10.00% | ||
Required statutory reserve registered capital ratio to deforce compulsory net profit allocation to statutory reserve | 50.00% | ||
Amounts restricted that include paid in capital, additional paid-in capital and statutory reserve funds, as determined pursuant to PRC GAAP | ¥ 4,531,337,021 | $ 711,065,659 | ¥ 3,565,880,640 |
Subsequent events (Details)
Subsequent events (Details) | Mar. 03, 2022shares | Apr. 15, 2019shares | Feb. 28, 2022USD ($)item | Jan. 31, 2022USD ($)item | Dec. 31, 2021CNY (¥)shares | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Subsequent events | |||||||
Deposits to institutional cooperators, net | ¥ 1,500,406,750 | $ 235,446,560 | ¥ 907,923,380 | ||||
Restricted stock units | |||||||
Subsequent events | |||||||
Granted (in shares) | shares | 26,657,998 | ||||||
Restricted stock units | Directors | |||||||
Subsequent events | |||||||
Granted (in shares) | shares | 150,000 | ||||||
Subsequent Event | |||||||
Subsequent events | |||||||
Number of funds | item | 2 | 2 | |||||
Subsequent Event | Restricted stock units | |||||||
Subsequent events | |||||||
Vesting term | 3 years | ||||||
Subsequent Event | Restricted stock units | Directors | |||||||
Subsequent events | |||||||
Granted (in shares) | shares | 810,000 | ||||||
Subsequent Event | Dragonfly Ventures II, L.P. | |||||||
Subsequent events | |||||||
Deposits to institutional cooperators, net | $ 10,000,000 | ||||||
Capital contribution by owner | $ 2,500,000 | ||||||
Subsequent Event | IOSG FUND II, L.P., | |||||||
Subsequent events | |||||||
Deposits to institutional cooperators, net | $ 3,000,000 | ||||||
Capital contribution by owner | $ 3,000,000 |
CONDENSED FINANCIAL INFORMATI_3
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY - BALANCE SHEETS (Details) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
ASSETS | ||||
Cash and cash equivalents | ¥ 584,762,494 | $ 91,761,996 | ¥ 746,388,408 | ¥ 1,005,980,251 |
Prepaid expenses and other current assets | 213,127,478 | 33,444,352 | 403,776,319 | |
Total assets | 7,342,738,892 | 1,152,235,961 | 7,498,009,708 | |
LIABILITIES | ||||
Accrued expenses and other current liabilities | 268,966,550 | 42,206,721 | 323,748,430 | |
Total liabilities | 3,365,843,931 | 528,174,360 | 4,421,966,056 | |
Equity: | ||||
Common Shares | 206,793 | 32,450 | 202,870 | |
Additional paid-in capital | 3,159,522,737 | 495,798,063 | 3,068,045,239 | |
Retained earnings (accumulated deficit) | 810,855,877 | 127,240,981 | (14,551,146) | |
Accumulated other comprehensive income | 6,309,554 | 990,107 | 21,059,073 | |
Total X Financial shareholders' equity | 3,976,894,961 | 624,061,601 | 3,074,756,036 | |
TOTAL LIABILITIES AND EQUITY | 7,342,738,892 | 1,152,235,961 | 7,498,009,708 | |
Parent Company | Reportable legal entity | ||||
ASSETS | ||||
Cash and cash equivalents | 4,771,477 | 748,749 | 6,041,648 | |
Prepaid expenses and other current assets | 371,460 | 58,290 | 1,862,127 | |
Amount due from subsidiaries and VIEs | 1,077,449,147 | 169,075,283 | 1,008,811,092 | |
Investments in subsidiaries and VIEs | 2,899,792,086 | 455,040,656 | 2,067,921,292 | |
Total assets | 3,982,384,170 | 624,922,978 | 3,084,636,159 | |
LIABILITIES | ||||
Accrued expenses and other current liabilities | 5,489,209 | 861,377 | 9,880,123 | |
Total liabilities | 5,489,209 | 861,377 | 9,880,123 | |
Equity: | ||||
Common Shares | 206,793 | 32,450 | 202,870 | |
Additional paid-in capital | 3,159,522,737 | 495,798,063 | 3,068,045,239 | |
Retained earnings (accumulated deficit) | 810,855,877 | 127,240,981 | (14,551,146) | |
Accumulated other comprehensive income | 6,309,554 | 990,107 | 21,059,073 | |
Total X Financial shareholders' equity | 3,976,894,961 | 624,061,601 | 3,074,756,036 | |
TOTAL LIABILITIES AND EQUITY | ¥ 3,982,384,170 | $ 624,922,978 | ¥ 3,084,636,159 |
CONDENSED FINANCIAL INFORMATI_4
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY - STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Details) | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
General and administrative | ¥ (187,859,411) | $ (29,479,241) | ¥ (179,225,336) | ¥ (227,481,772) |
Equity in profit (loss) of subsidiaries and VIEs | 3,341,862 | 524,411 | (6,805,940) | 17,457,899 |
Other income (loss), net | 32,506,084 | 5,100,914 | 12,709,213 | 26,080,766 |
Net income (loss) attributable to X Financial | 825,407,023 | 129,524,374 | (1,308,502,575) | 774,276,129 |
Comprehensive income attributable to X Financial | 810,657,504 | 127,209,853 | (1,354,544,304) | 788,882,174 |
Parent Company | Reportable legal entity | ||||
STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
General and administrative | (9,577,576) | (1,502,931) | (18,494,095) | (14,451,949) |
Interest income | 590 | 93 | 4,416 | 77,030 |
Equity in profit (loss) of subsidiaries and VIEs | 831,870,794 | 130,538,680 | (1,293,341,634) | 785,350,473 |
Other income (loss), net | 3,113,215 | 488,531 | 3,328,738 | 3,300,575 |
Net income (loss) attributable to X Financial | 825,407,023 | 129,524,373 | (1,308,502,575) | 774,276,129 |
Other comprehensive income (loss) | (14,749,519) | (2,314,521) | (46,041,729) | 14,606,045 |
Comprehensive income attributable to X Financial | ¥ 810,657,504 | $ 127,209,852 | ¥ (1,354,544,304) | ¥ 788,882,174 |
CONDENSED FINANCIAL INFORMATI_5
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY - STATEMENT OF CASH FLOWS (Details) | 12 Months Ended | ||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | |
STATEMENT OF CASH FLOWS | |||||
Net cash by used in operating activities | ¥ 449,171,181 | $ 70,484,763 | ¥ (679,234,601) | ¥ 600,566,742 | |
Loan to subsidiaries and VIE | (2,238,372,299) | (351,249,458) | (4,016,159,473) | (4,938,191,061) | |
Net cash provided (used in) investing activities | (2,347,593,831) | (368,388,700) | (3,704,848,130) | (3,079,780,993) | |
Dividend paid | (103,196,981) | ||||
Net cash provided by (used in) financing activities | 1,301,311,826 | 204,204,222 | 4,490,712,113 | 2,711,188,159 | |
Effect of foreign exchange rate changes | (9,373,234) | (1,470,865) | (28,409,920) | 10,622,885 | |
Net increase (decrease) in cash and cash equivalents | (606,484,058) | (95,170,583) | 78,219,462 | 242,596,793 | |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR | 1,598,522,894 | 250,843,124 | 1,520,303,432 | 1,277,706,639 | |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT YEAR END | ¥ 992,038,836 | $ 155,672,541 | 1,598,522,894 | $ 250,843,124 | 1,520,303,432 |
Currency exchange rate | 6.3726 | 6.3726 | |||
Parent Company | Reportable legal entity | |||||
STATEMENT OF CASH FLOWS | |||||
Net cash by used in operating activities | ¥ (8,630,238) | $ (1,354,273) | (14,708,389) | (10,004,797) | |
Loan to subsidiaries and VIE | 4,545,040 | 713,216 | 6,818,106 | (199,179,173) | |
Net cash provided (used in) investing activities | 4,545,040 | 713,216 | 6,818,106 | (199,179,173) | |
Contribution from shareholders | 2,959,511 | 464,412 | 543,594 | 6,035,665 | |
Dividend paid | (103,196,981) | ||||
Net cash provided by (used in) financing activities | 2,959,511 | 464,412 | 543,594 | (97,161,316) | |
Effect of foreign exchange rate changes | (144,484) | (22,672) | (663,453) | 10,892,988 | |
Net increase (decrease) in cash and cash equivalents | (1,270,171) | (199,317) | (8,010,142) | (295,452,298) | |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR | 6,041,648 | 948,066 | 14,051,790 | 309,504,088 | |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT YEAR END | ¥ 4,771,477 | $ 748,749 | ¥ 6,041,648 | $ 948,066 | ¥ 14,051,790 |
Currency exchange rate | 6.3726 | 6.3726 |