Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2019 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity Registrant Name | Weidai Ltd. |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Shell Company | false |
Entity Central Index Key | 0001734902 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Class A ordinary shares | |
Entity Common Stock, Shares Outstanding | 35,390,055 |
Class B ordinary shares | |
Entity Common Stock, Shares Outstanding | 35,071,400 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Current assets: | |||
Cash and cash equivalents | $ 154,494 | ¥ 1,075,557,000 | ¥ 1,741,911,000 |
Restricted cash | 163,868 | 1,140,819,000 | 1,619,937,000 |
Loans and advances, net (net of allowance of RMB764,323 and RMB1,257,824 (US$180,675) as of December 31, 2018 and 2019, respectively) | 218,029 | 1,517,876,000 | 1,482,368,000 |
Short-term investments | 4,100,000 | ||
Prepaid expenses and other assets | 63,393 | 441,332,000 | 560,165,000 |
Amounts due from related parties | 3,455 | 24,052,000 | 21,797,000 |
Total current assets | 603,239 | 4,199,636,000 | 5,430,278,000 |
Non-current assets: | |||
Restricted cash | 19,368,000 | ||
Long-term investments | 1,950 | 13,574,000 | 13,333,000 |
Loans and advances, net (net of allowance of RMB6,027 and RMB1,801 (US$259) as of December 31, 2018 and 2019, respectively) | 7,131 | 49,643,000 | 421,564,000 |
Prepaid expenses and other assets | 3,365 | 23,429,000 | 7,606,000 |
Property, equipment and software, net | 8,587 | 59,783,000 | 88,731,000 |
Goodwill | 835 | 5,812,000 | 5,812,000 |
Deferred tax assets | 96,970 | 675,089,000 | 329,796,000 |
Total non-current assets | 118,838 | 827,330,000 | 886,210,000 |
TOTAL ASSETS | 722,077 | 5,026,966,000 | 6,316,488,000 |
Current liabilities (including current liabilities of the consolidated VIE and subsidiaries without recourse to the primary beneficiary of RMB3,570,407 and RMB2,476,965 (US$355,794) as of December 31, 2018 and 2019, respectively): | |||
Payable to institutional funding partners and online investors | 41,516 | 289,026,000 | 1,005,236,000 |
Current account with online investors and borrowers | 183,172 | 1,275,210,000 | 2,005,605,000 |
Income tax payable | 34,058 | 237,102,000 | 70,679,000 |
Accrued expenses and other liabilities | 57,083 | 397,406,000 | 501,439,000 |
Amounts due to related parties | 4,173 | 29,050,000 | 28,728,000 |
Contract liabilities | 11,962,000 | ||
Deferred revenue | 39,033 | 271,741,000 | |
Total current liabilities | 359,035 | 2,499,535,000 | 3,623,649,000 |
Non-current liabilities (including non-current liabilities of the consolidated VIE and subsidiaries without recourse to the primary beneficiary of RMB475,613 and RMB249,726 (US$35,870) as of December 31, 2018 and 2019, respectively): | |||
Payable to institutional funding partners and online investors | 7,389 | 51,444,000 | 450,160,000 |
Deferred revenue | 11,343,000 | ||
Contract liabilities | 28,481 | 198,282,000 | |
Other non-current liabilities | 14,110,000 | ||
Total non-current liabilities | 35,870 | 249,726,000 | 475,613,000 |
Total liabilities | 394,905 | 2,749,261,000 | 4,099,262,000 |
Commitments and contingencies | |||
Shareholders' equity: | |||
Additional paid-in capital | 177,505 | 1,235,752,000 | 1,170,956,000 |
Accumulated other comprehensive loss | (361) | (2,510,000) | (2,700,000) |
Retained earnings | 149,146 | 1,038,323,000 | 1,040,443,000 |
Total Weidai Ltd. shareholders' equity | 326,290 | 2,271,566,000 | 2,208,700,000 |
Noncontrolling interests | 882 | 6,139,000 | 8,526,000 |
Total shareholders' equity | 327,172 | 2,277,705,000 | 2,217,226,000 |
TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY | 722,077 | 5,026,966,000 | 6,316,488,000 |
Class A ordinary shares | |||
Shareholders' equity: | |||
Ordinary shares | $ 0 | 0 | 0 |
Total shareholders' equity | 35,390,055 | ||
Class B ordinary shares | |||
Shareholders' equity: | |||
Ordinary shares | 1,000 | 1,000 | |
Total shareholders' equity | ¥ 1,000 | ¥ 1,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2018CNY (¥)shares |
Allowance for loans and advances, current | $ 180,675 | ¥ 1,257,824 | ¥ 764,323 |
Allowance for loans and advances, non current | 259 | 1,801 | 6,027 |
Current liabilities of the consolidated VIE and subsidiaries without recourse to the primary beneficiary | 359,035 | 2,499,535 | 3,623,649 |
Non-current liabilities of the consolidated VIE and subsidiaries without recourse to the primary beneficiary | 35,870 | 249,726 | 475,613 |
Weidai (Hangzhou) Financial Information Service Ltd. | |||
Current liabilities of the consolidated VIE and subsidiaries without recourse to the primary beneficiary | 355,794 | 2,476,965 | 3,570,407 |
Non-current liabilities of the consolidated VIE and subsidiaries without recourse to the primary beneficiary | $ 35,870 | ¥ 249,726 | ¥ 475,613 |
Class A ordinary shares | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.000002 | ||
Common stock, share issued | 35,390,055 | 35,390,055 | 35,375,777 |
Common stock, share outstanding | 35,390,055 | 35,390,055 | 35,375,777 |
Class B ordinary shares | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.000002 | ||
Common stock, share issued | 35,071,400 | 35,071,400 | |
Common stock, share outstanding | 35,071,400 | 35,071,400 | 35,071,400 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | |
Net revenues: | ||||
Services and other revenue | $ 39,276 | ¥ 273,433,000 | ||
Financing income | 28,062 | 195,364,000 | ¥ 402,750,000 | ¥ 303,292,000 |
Less: Funding costs | (7,270) | (50,610,000) | (156,138,000) | (39,056,000) |
Net financing income | 20,792 | 144,754,000 | 246,612,000 | 264,236,000 |
Business related taxes and surcharges | (2,261) | (15,743,000) | (20,623,000) | (15,981,000) |
Total net revenues | 482,273 | 3,357,494,000 | 3,913,474,000 | 3,545,430,000 |
Provision for loans and advances | (178,109) | (1,239,962,000) | (751,572,000) | (484,063,000) |
Net revenues after provision for loans and advances | 304,164 | 2,117,532,000 | 3,161,902,000 | 3,061,367,000 |
Operating costs and expenses: | ||||
Provision for financial guarantee liabilities | (2,759) | (19,206,000) | (21,712,000) | |
Origination and servicing (including related party amounts of RMB260,026, RMB162,853 and RMB73,008 (US$10,485) for the years ended December 31, 2017,2018 and 2019, respectively) | (199,466) | (1,388,640,000) | (1,757,935,000) | (1,784,914,000) |
Sales and marketing (including related party amounts of RMB7,978, RMB9,631 and nil for the years ended December 31, 2017,2018 and 2019, respectively) | (19,832) | (138,068,000) | (221,117,000) | (273,838,000) |
General and administrative (including related party amounts of RMB21,387, RMB276 and nil for the years ended December 31, 2017,2018 and 2019, respectively) | (40,500) | (281,956,000) | (379,415,000) | (316,772,000) |
Research and development | (11,730) | (81,664,000) | (139,318,000) | (100,966,000) |
Total operating costs and expenses | (274,287) | (1,909,534,000) | (2,519,497,000) | (2,476,490,000) |
Income from operations | 29,877 | 207,998,000 | 642,405,000 | 584,877,000 |
Interest income, net | 5,690 | 39,616,000 | 66,791,000 | 30,303,000 |
Government subsidies | 15,351 | 106,873,000 | 70,351,000 | 53,616,000 |
Other income (expense), net | 2,011 | 13,998,000 | (15,288,000) | (772,000) |
Net income before income taxes | 52,929 | 368,485,000 | 764,259,000 | 668,024,000 |
Income tax expenses | (15,117) | (105,243,000) | (159,629,000) | (193,203,000) |
Net income | 37,812 | 263,242,000 | 604,630,000 | 474,821,000 |
Net income attributable to noncontrolling interests | (1,384) | (9,632,000) | (3,011,000) | |
Net income attributable to Weidai Ltd.'s shareholders | 36,428 | 253,610,000 | 601,619,000 | 474,821,000 |
Dividends declared to preferred shareholders | (8,604,000) | |||
Reversal of accretion on Series C preferred shares | 120,000,000 | |||
Net income attributable to ordinary shareholders | $ 36,428 | ¥ 253,610,000 | ¥ 721,619,000 | ¥ 466,217,000 |
Earnings per share: | ||||
Basic | (per share) | $ 0.52 | ¥ 3.60 | ¥ 10.93 | ¥ 7.25 |
Diluted | (per share) | $ 0.52 | ¥ 3.60 | ¥ 10.93 | ¥ 7.25 |
Shares used in earnings per share computation: | ||||
Basic (in shares) | shares | 70,449,524 | 70,449,524 | 50,954,061 | 48,392,050 |
Diluted (in shares) | shares | 70,449,524 | 70,449,524 | 50,954,061 | 51,466,450 |
Other comprehensive (loss) income | ||||
Foreign currency translation adjustment | $ 27 | ¥ 190,000 | ¥ (2,700,000) | |
Comprehensive income | 37,839 | 263,432,000 | 601,930,000 | ¥ 474,821,000 |
Comprehensive income attributable to noncontrolling interests | (1,384) | (9,632,000) | (3,011,000) | |
Comprehensive income attributable to Weidai Ltd.'s shareholders | 36,455 | 253,800,000 | 598,919,000 | 474,821,000 |
Dividends declared to preferred shareholders | 0 | 0 | 8,604,000 | |
Reversal of accretion on Series C preferred shares | 120,000,000 | |||
Comprehensive income attributable to ordinary shareholders | 36,455 | 253,800,000 | 718,919,000 | 466,217,000 |
Loan Facilitation Services | ||||
Net revenues: | ||||
Services and other revenue | 3,155,721,000 | 2,691,953,000 | ||
Post facilitation services | ||||
Net revenues: | ||||
Services and other revenue | 342,052,000 | 300,185,000 | ||
Loan service fee | ||||
Net revenues: | ||||
Services and other revenue | 424,466 | 2,955,050,000 | ||
Other revenues | ||||
Net revenues: | ||||
Services and other revenue | $ 39,276 | ¥ 273,433,000 | ¥ 189,712,000 | ¥ 305,037,000 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parentheticals) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Net revenues: | ||||
Net revenues from related party | $ 44 | ¥ 306 | ¥ 781 | ¥ 851 |
Origination and servicing expenses | 10,485 | 73,008 | 162,853 | 260,026 |
Sales and marketing expenses | 0 | 0 | 9,631 | 7,978 |
General and administrative expenses | 0 | 0 | 276 | 21,387 |
Loan Facilitation Services | ||||
Net revenues: | ||||
Net revenues from related party | 0 | 781 | 851 | |
Loan service fee | ||||
Net revenues: | ||||
Net revenues from related party | 44 | 306 | 0 | 0 |
Other revenues | ||||
Net revenues: | ||||
Net revenues from related party | 0 | 13,362 | 3,740 | |
Other revenues | Beijing Lezhihui Technology Co Ltd [Member] | ||||
Net revenues: | ||||
Net revenues from related party | $ 0 | ¥ 0 | ¥ 13,362 | ¥ 3,740 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY $ in Thousands | Class A ordinary sharesCNY (¥)shares | Class B ordinary sharesCNY (¥)shares | Common StockCNY (¥)shares | Preferred Stock [Member]CNY (¥)shares | Additional Paid-in Capital [Member]USD ($) | Additional Paid-in Capital [Member]CNY (¥) | Accumulated other comprehensive lossUSD ($) | Accumulated other comprehensive lossCNY (¥) | Retained earningsUSD ($) | Retained earningsCNY (¥) | Parent [Member]USD ($) | Parent [Member]CNY (¥) | Noncontrolling Interest [Member]USD ($) | Noncontrolling Interest [Member]CNY (¥) | USD ($) | CNY (¥) |
Balance at Dec. 31, 2016 | ¥ 1,000 | ¥ 468,352,000 | ¥ (123,769,000) | ¥ 344,584,000 | ¥ 2,000,000 | ¥ 346,584,000 | ||||||||||
Balance (in shares) at Dec. 31, 2016 | shares | 48,392,050 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Dividends declared by a subsidiary | (32,228,000) | (32,228,000) | (32,228,000) | |||||||||||||
Acquisition of noncontrolling interests | (2,000,000) | (2,000,000) | ||||||||||||||
Net income | 474,821,000 | 474,821,000 | 474,821,000 | |||||||||||||
Balance at Dec. 31, 2017 | ¥ 1,000 | 468,352,000 | 318,824,000 | 787,177,000 | 787,177,000 | |||||||||||
Balance (in shares) at Dec. 31, 2017 | shares | 48,392,050 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Modification of Series A preferred shares | ¥ 18,856,000 | 18,856,000 | 18,856,000 | |||||||||||||
Modification of Series A preferred shares (in shares) | shares | 9,146,250 | |||||||||||||||
Conversion of ordinary shares to Class B ordinary shares | ¥ 1,000 | ¥ (1,000) | ||||||||||||||
Conversion of ordinary shares to Class B ordinary shares (in shares) | shares | 35,071,400 | (35,071,400) | ||||||||||||||
Conversion of ordinary shares to Class A ordinary shares (in shares) | shares | 13,320,650 | (13,320,650) | ||||||||||||||
Conversion of preferred shares to Class A ordinary shares | ¥ (18,856,000) | 268,910,000 | 250,054,000 | 250,054,000 | ||||||||||||
Conversion of preferred shares to Class A ordinary shares (in shares) | shares | 17,098,700 | (9,146,250) | ||||||||||||||
Issuance of ordinary shares upon Initial Public Offering ("IPO") and underwriters' exercise of over-allotment, net of issuance costs | 286,403,000 | 286,403,000 | 286,403,000 | |||||||||||||
Issuance of ordinary shares upon Initial Public Offering ("IPO") and underwriters' exercise of over-allotment, net of issuance costs (in shares) | shares | 4,956,427 | |||||||||||||||
Establishment of a subsidiary | 4,900,000 | 4,900,000 | ||||||||||||||
Acquisition of a subsidiary | 615,000 | 615,000 | ||||||||||||||
Share-based compensation | 147,291,000 | 147,291,000 | 147,291,000 | |||||||||||||
Other Comprehensive loss | ¥ (2,700,000) | (2,700,000) | (2,700,000) | |||||||||||||
Net income | 601,619,000 | 601,619,000 | 3,011,000 | 604,630,000 | ||||||||||||
Reversal of accretion on Series C preferred shares | 120,000,000 | 120,000,000 | 120,000,000 | |||||||||||||
Balance at Dec. 31, 2018 | ¥ 1,000 | 1,170,956,000 | (2,700,000) | 1,040,443,000 | 2,208,700,000 | 8,526,000 | 2,217,226,000 | |||||||||
Balance (in shares) at Dec. 31, 2018 | shares | 35,375,777 | 35,071,400 | ||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Adoption of ASC 606 | (255,730,000) | (255,730,000) | (255,730,000) | |||||||||||||
Balance as of January 1, 2019 | ¥ 1,000 | 1,170,956,000 | (2,700,000) | 784,713,000 | 1,952,970,000 | 8,526,000 | 1,961,496,000 | |||||||||
Balance as of January 1, 2019 (in shares) | shares | 35,375,777 | 35,071,400 | ||||||||||||||
Dividends declared by a subsidiary | (6,646,000) | (6,646,000) | ||||||||||||||
Exercise of restricted shares (in shares) | shares | 14,278 | |||||||||||||||
Disposal of a subsidiary | (5,373,000) | (5,373,000) | ||||||||||||||
Share-based compensation | 64,796,000 | 64,796,000 | 64,796,000 | |||||||||||||
Other Comprehensive loss | 190,000 | 190,000 | 190,000 | |||||||||||||
Net income | 253,610,000 | 253,610,000 | 9,632,000 | $ 37,812 | 263,242,000 | |||||||||||
Balance at Dec. 31, 2019 | ¥ 35,390,055 | ¥ 1,000 | $ 177,505 | ¥ 1,235,752,000 | $ (361) | ¥ (2,510,000) | $ 149,146 | ¥ 1,038,323,000 | $ 326,290 | ¥ 2,271,566,000 | $ 882 | ¥ 6,139,000 | $ 327,172 | ¥ 2,277,705,000 | ||
Balance (in shares) at Dec. 31, 2019 | shares | 35,071,400 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Cash flows from operating activities: | ||||
Net income | $ 37,812 | ¥ 263,242 | ¥ 604,630 | ¥ 474,821 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Provision for loans and advances | 178,109 | 1,239,962 | 751,572 | 484,063 |
Depreciation and amortization | 6,117 | 42,586 | 42,431 | 12,747 |
Loss on disposal of property and equipment | 247 | 1,721 | 7,305 | |
Share-based compensation expenses | 9,307 | 64,796 | 106,571 | 40,719 |
Loss on disposals of cost method investments | 963 | |||
Changes in operating assets and liabilities: | ||||
Prepaid expenses and other assets | 15,803 | 110,010 | (67,408) | (24,895) |
Amounts due from related parties | (324) | (2,255) | (12,629) | 65,032 |
Deferred tax assets | (37,354) | (260,050) | (171,230) | (124,887) |
Current account with online investors and borrowers | (104,915) | (730,395) | 122,159 | 993,254 |
Income tax payable | 23,905 | 166,423 | (172,659) | 131,888 |
Accrued expenses and other liabilities | (16,515) | (114,995) | 30,514 | 231,062 |
Amounts due to related parties | 46 | 322 | (34,172) | 1,352 |
Deferred revenue and Contract liabilities | 15,189 | 105,745 | 6,727 | (1,079) |
Net cash provided by operating activities | 127,427 | 887,112 | 1,214,774 | 2,284,077 |
Cash flows from investing activities: | ||||
Purchase of short-term investments | (790) | (5,500) | (3,687,100) | (11,423,820) |
Redemption of short-term investments | 1,379 | 9,600 | 3,691,500 | 11,415,320 |
Payments to originate loans and advances | (1,587,800) | (11,053,947) | (7,430,624) | (6,885,314) |
Proceeds from collection of loans and advances | 1,458,013 | 10,150,398 | 7,103,783 | 4,360,261 |
Addition of long-term investments | (35) | (241) | (1,513,040) | (346,000) |
Redemption of long-term investments | 1,563,040 | |||
Disposals of cost method investments | 295,037 | |||
Cash paid for business combinations | (4,500) | |||
Cash and cash equivalents acquired from business combinations | 8,045 | |||
Purchase of property, equipment and software | (3,212) | (22,359) | (32,609) | (62,368) |
Net cash used in investing activities | (132,445) | (922,049) | (6,468) | (2,941,921) |
Cash flows from financing activities: | ||||
Proceeds from short-term borrowings | (200,000) | 200,000 | ||
Proceeds from institutional funding partners and online investors | 3,399,266 | 4,627,087 | ||
Payments to institutional funding partners and online investors | (160,149) | (1,114,926) | (4,193,719) | (2,587,336) |
Proceeds (payment) for IPO and underwriters' exercise of over-allotment, net of issuance costs | (2,179) | (15,167) | 302,670 | |
Contribution from noncontrolling interests | 4,900 | |||
Distribution to noncontrolling interests | (2,000) | |||
Payments of dividends to shareholders | (32,228) | |||
Net cash provided by (used in) financing activities | (162,328) | (1,130,093) | (686,883) | 2,205,523 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 27 | 190 | (2,700) | |
Net increase (decrease) in cash, cash equivalents and restricted cash | (167,319) | (1,164,840) | 518,723 | 1,547,679 |
Cash, cash equivalents and restricted cash at the beginning of the year | 485,681 | 3,381,216 | 2,862,493 | 1,314,814 |
Cash, cash equivalents and restricted cash at the end of the year | 318,362 | 2,216,376 | 3,381,216 | 2,862,493 |
Supplemental disclosure of cash flow information: | ||||
Interest paid | 7,270 | 50,610 | 161,735 | 43,524 |
Income taxes paid | $ 36,673 | ¥ 255,309 | 494,928 | ¥ 219,988 |
Non-cash activities: | ||||
Accretion on Series C convertible redeemable preferred shares to redemption value | 120,000 | |||
Deferred IPO costs included in accrued expenses and other liabilities | ¥ 16,267 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Reconciliation of cash, cash equivalents and restricted cash) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) |
Reconciliation of cash, cash equivalents and restricted cash | ||||||
Cash and cash equivalents | $ 154,494 | ¥ 1,075,557 | ¥ 1,741,911 | ¥ 1,765,572 | ||
Restricted cash - current | 163,868 | 1,140,819 | 1,619,937 | 1,092,921 | ||
Restricted cash - non-current | 19,368 | 4,000 | ||||
Total cash, cash equivalents and restricted cash shown in the statements of cash flows | $ 318,362 | ¥ 2,216,376 | $ 485,681 | ¥ 3,381,216 | ¥ 2,862,493 | ¥ 1,314,814 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2019 | |
Organization | |
Organization | 1. Organization Weidai Ltd. (the “Company”) was incorporated as a limited company under the law of Cayman Islands on January 26, 2018. The Company does not conduct any substantive operations on its own but instead conducts its business operations through its subsidiaries, variable interest entity (“VIE”) and subsidiaries of the VIE. The Company, its subsidiaries, VIE and subsidiaries of the VIE are hereinafter collectively referred to as the “Group”. The Company is principally engaged in the online finance marketplace business in the People’s Republic of China (the “PRC”). As described below, the Company, through a series of transactions which is accounted for as a reorganization of entities under common control (the “Reorganization”), became the ultimate parent entity of its subsidiaries, VIE and subsidiaries of VIE. Accordingly, these consolidated financial statements reflect the historical operations of the company as if the current organization structure had been in existence throughout the periods presented. Reorganization transactions In preparation of its IPO in the United States, the following transactions were undertaken to reorganize the legal structure of the Company. On February 5, 2018, the Company set up a wholly-owned subsidiary, Weidai HK Limited (“Weidai HK”) in Hong Kong. On March 15, 2018, Weidai HK set up a wholly-owned subsidiary, Weidai Co., Ltd. (“Weidai Co.”) in the PRC. On April 10, 2018, the Company, through Weidai Co., entered into a series of contractual agreements with Weidai (Hangzhou) Financial Information Service Ltd. (“Weidai (Hangzhou), or the “VIE”) and its shareholders (the “VIE Agreements”) to transfer the business operations of the VIE to the Company. In return, the Company issued 48,392,050 of ordinary shares to YAOH WDAI LTD, an entity controlled by Mr. Yao Hong (“the Founder”) and the other ordinary shareholders of the VIE, as well as 9,146,250 of Series A preferred shares, 1,829,250 of Series A+ preferred shares, 3,048,800 of Series B preferred shares, 3,074,400 of Series C preferred shares to the respective series of preferred shareholders of the VIE. On January 28, 2019, the Company, through Weidai Co., entered into a series of contractual arrangements with Yuntuo Group Co., Ltd. (“Yuntuo”, or the VIE) and its shareholders (the “VIE Agreements”), to conduct a portion of the business through Yuntuo. As all the entities involved in the process of the Reorganization are under common control before and after the Reorganization, the Reorganization is accounted for in a manner similar to a pooling-of-interest with the assets and liabilities of the parties to the Reorganization carried over at their historical amounts. On November 15, 2018, the Company completed its IPO on the New York Stock Exchange (Note 15). As of December 31, 2019, the Company’s subsidiaries, VIEs and primary subsidiaries of VIEs are as follows: Percentage of legal ownership Date of Place of by the Principal Entity incorporation incorporation Company activities Subsidiaries Weidai HK Limited February 5, 2018 Hong Kong 100 % Investment holding Weidai Co., Ltd. March 15, 2018 PRC 100 % Investment holding Rymo Technology Industry Limited September 22, 2009 Hong Kong 100 % Investment holding Weidai Singapore PTE. LTD. February 28, 2019 Singapore 100 % Online finance marketplace business QianTang (Philippines) Lending Inc. May 31, 2019 Philippines 100 % Online finance marketplace business Zhejiang Qunshuo Electronics Co., Ltd. August 7, 2014 PRC 100 % Internet Technology Youxian Weirui Technology Co., Ltd. June 17, 2019 PRC 100 % Internet Technology Shanghai Zaohui Finance Lease Co., Ltd. December 18, 2015 PRC 100 % Asset Management Hangzhou Weian Finance Lease Co., Ltd. October 21, 2016 PRC 100 % Asset Management Percentage of legal ownership Date of Place of by the Principal Entity incorporation incorporation Company activities VIEs Weidai (Hangzhou) Financial Information Service Ltd. December 25, 2014 PRC Nil Online finance marketplace business Yuntuo Group Co., Ltd. January 15, 2019 PRC Nil Online finance marketplace business Percentage of legal ownership Date of Place of by the Entity incorporation incorporation Company Principal activities Subsidiaries of the VIEs Qianwei (Hangzhou) Technology Co., Ltd. September 29, 2015 PRC Nil Asset Management Ruituo (Hangzhou) Internet Financial Information Services Co., Ltd. July 30, 2015 PRC Nil Asset Management Yiwu Weirui Internet Technology Co., Ltd. September 29, 2015 PRC Nil Asset Management Hangzhou Yiqitou Investment Advisory Co., Ltd. October 28, 2016 PRC Nil Consulting Liangche (Hangzhou) Internet Technology Co., Ltd. February 21, 2017 PRC Nil Internet Technology Hangzhou Yaowei Technology Co., Ltd. January 24, 2018 PRC Nil Technology development and service Hangzhou Jiujiu Financial Information Services Co., Ltd. August 25, 2015 PRC Nil Finance information service Hangzhou Hengting Information Consultancy Co., Ltd. December 11, 2019 PRC Nil Information Consulting Shanghai Tingji Technology Co., Ltd. September 24, 2019 PRC Nil Internet Technology Haikou Chengfan Technology Co., Ltd. September 25, 2019 PRC Nil Internet Technology Beihai Hongri Technology Co., Ltd. August 30, 2019 PRC Nil Internet Technology Beijing Jiyun Technology Co., Ltd. July 2, 2019 PRC Nil Internet Technology Fuzhou Weidai Online Microcredit Co., Ltd. June 23, 2017 PRC Nil Micro-loan business Hangzhou Yaohong Technology Co., Ltd. April 7, 2016 PRC Nil Internet Technology As PRC laws and regulations prohibit and restrict foreign ownership of internet value-added businesses, the Company operates its websites and primarily conducts its business in PRC through the VIEs and the subsidiaries of the VIEs. On April 10, 2018 and January 28, 2019, the Company entered into share pledge agreements with the nominee shareholders of the VIEs through its wholly-owned subsidiary in the PRC, for the equity interests in the VIEs held by the shareholders of the VIEs. In addition, the Company entered into a power of attorney and an exclusive call option agreement with the VIEs and nominee shareholders of the VIEs through its wholly-owned subsidiaries in the PRC, which provide its wholly-owned subsidiary the power to direct the activities that most significantly affect the economic performance of the VIEs and to acquire the equity interests in the VIEs when permitted by the PRC laws, respectively. The Company agreed to provide unlimited financial support to the VIEs for its operations which obligated the Company to absorb losses of the VIEs that could potentially be significant to the VIEs. In addition, pursuant to the resolution of all shareholders of the Company and the resolution of the board of directors of the Company on April 10, 2018 and January 28, 2019 (the “Resolutions”), the rights under the aforementioned power of attorney and the exclusive call option agreement were assigned to the board of directors of the Company (the “Board”) or any officer authorized by the Board, which entitle the Company or its wholly-owned subsidiary to receive economic benefits from the VIEs that potentially could be significant to the VIEs. Despite the lack of technical majority ownership, the Company has effective control of the VIEs through a series of VIE Agreements and a parent-subsidiary relationship exists between the Company and the VIEs. Through the VIE Arrangements, the shareholders of the VIEs effectively assigned all of their voting rights underlying their equity interest in the VIEs to the Company. In addition, through the exclusive business operation agreement, the Company, through its wholly-owned subsidiary in the PRC, have the right to receive economic benefits from the VIEs that potentially could be significant to the VIEs. Lastly, through the financial support undertaking letter, the Company has the obligation to absorb losses of the VIEs that could potentially be significant to the VIEs. Therefore, the Company is considered the primary beneficiary of the VIEs and consolidates the VIEs and its subsidiaries as required by SEC Regulation S-X Rule 3A-02 and ASC topic 810 (“ASC 810”), Consolidation . The principal terms of the VIE Agreements are further described below: (1) Power of Attorney: Pursuant to the power of attorney signed between Weidai (Hangzhou)’s and Yuntuo’s nominee shareholders and Weidai Co., each nominee shareholder irrevocably appointed Weidai Co. as its attorney-in-fact to exercise on such shareholder’s behalf any and all rights that such shareholder has in respect of its equity interest in Weidai (Hangzhou) and Yuntuo (including but not limited to executing the exclusive right to purchase agreements, the voting rights and the right to appoint directors and executive officers of Weidai (Hangzhou) and Yuntuo. This agreement is effective and irrevocable as long as the nominee shareholder remains a shareholder of Weidai (Hangzhou) and Yuntuo. (2) Exclusive Call Option Agreement: Pursuant to the exclusive call option agreement entered into amongst the Company, Weidai (Hangzhou)’s and Yuntuo’s nominee shareholders and Weidai Co., the nominee shareholders irrevocably granted Weidai Co. a call option to request the nominee shareholders to transfer or sell any part or all of its equity interests in the VIEs, or any or all of the assets of VIEs, to Weidai Co., or its designees. The purchase price of the equity interests in the VIEs is equal to the minimum price required by PRC law. The purchase price of the VIEs’ assets is equal to the book value of the assets or the minimum price as permitted by applicable PRC law, whichever is higher. Without Weidai Co.’s prior written consent, the VIEs and its nominee shareholders may not amend its articles of association, increase or decrease the registered capital, sell or otherwise dispose of its assets or beneficial interest, create or allow any encumbrance on its assets or other beneficial interests and provide any loans or guarantees, etc. The nominee shareholders cannot request any dividends or other form of assets. If dividends or other form of assets are distributed, the nominee shareholders are required to transfer all distribution received to Weidai Co. or their designees. This agreement is not terminated until all of the equity interest of the VIEs has been transferred to Weidai Co. or the person(s) designated by Weidai Co. None of the nominee shareholders have the right to terminate or revoke the agreement under any circumstance unless otherwise regulated by law. (3) Exclusive Business Cooperation Agreement: Pursuant to the exclusive business cooperation agreement entered into amongst Weidai Co. and Weidai (Hangzhou) and Yuntuo, Weidai Co. provides exclusive technical support and consulting services in return for fees based on 100% of Weidai (Hangzhou)’s net income, which is adjustable at the sole discretion of Weidai Co.. Without Weidai Co.’s consent, the VIEs and its subsidiaries cannot procure services from any third party or enter into similar service arrangements with any other third party, except for the ones appointed by Weidai Co.. This agreement is irrevocable or can only be unilaterally revoked or amended by Weidai Co. (4) Share Pledge Agreement: Pursuant to the share pledge agreements amongst the Company and Weidai (Hangzhou)’s and Yuntuo’s nominee shareholders, each nominee shareholder of the VIEs pledged all of their respective equity interests in the VIEs to Weidai Co. as continuing first priority security interest to guarantee the performance of these nominee shareholders and the VIEs’ obligations under the shareholder voting rights proxy agreement, the exclusive call option agreement and the exclusive business cooperation agreement. Weidai Co. is entitled to all dividends during the effective period of the share pledge except as it agrees otherwise in writing. If Weidai (Hangzhou) and Yuntuo or any of the nominee shareholder breaches its contractual obligations, Weidai Co. is entitled to certain rights regarding the pledged equity interests, including the right to receive proceeds from the auction or sale of all or part of the pledged equity interests of Weidai (Hangzhou) and Yuntuo in accordance with PRC law. None of the nominee shareholders may, without the prior written consent of Weidai Co., assign or transfer to any third party, distribute dividends and 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 technical support and consulting and service fees are fully paid under the exclusive business cooperation agreement and all of Weidai (Hangzhou)’s and Yuntuo’s obligations have been terminated under the other controlling agreements. As of May 23, 2018, the Company completed the registration of all the equity pledges with the relevant office of the administration for industry and commerce in accordance with the PRC Property Rights Law for Weidai (Hangzhou). As of March 1, 2019, the Company completed the registration of all the equity pledges with the relevant office of the administration for industry and commerce in accordance with the PRC Property Rights Law for Yuntuo. (5) Financial support undertaking letter: Pursuant to the financial support undertaking letter, the Company is obligated to provide unlimited financial support to the Weidai (Hangzhou), to the extent permissible under the applicable PRC laws and regulations. The Company will not request repayment of the loans or borrowings if the Weidai (Hangzhou) or its shareholders do not have sufficient funds or are unable to repay. (6) Resolutions of all shareholders and resolution of the board of directors of Weidai Ltd.: The shareholders and the Company’s Board resolved that the rights under the shareholder voting rights proxy agreements and the exclusive call option agreements were assigned to the board of directors of the Company or any officer authorized by the Board. In the opinion of the Company’s legal counsel, (i) the ownership structure of the Company and its VIEs is in compliance with PRC laws and regulations; (ii) the contractual arrangements with the VIEs and their shareholders are valid and binding, and not in violation of current PRC laws or regulations; (iii) the resolutions are valid in accordance with the articles of association of the Company and Cayman Islands law. However, uncertainties in the PRC legal system could cause the Company’s current ownership structure to be found in violation of existing and/or future PRC laws or regulations and could limit the Company’s ability to enforce its rights under these contractual arrangements. Furthermore, the nominee shareholders of the VIEs may have interests that are different from those of the Company, which could potentially increase the risk that they would seek to act contrary to the terms of the contractual agreements with the VIEs. In addition, if the current structure or any of the contractual arrangements were found to be in violation of any existing or future PRC laws or regulations, the Company may be subject to penalties, including but not be limited to, revocation of business and operating licenses, discontinuing or restricting business operations, restricting the Company’s right to collect revenues, temporary or permanent blocking of the Company’s internet financial services platforms, restructuring of the Company’s operations, imposition of additional conditions or requirements with which the Company may not be able to comply, or other regulatory or enforcement actions against the Company that could be harmful to its business. The imposition of any of these or other penalties could have a material adverse effect on the Company’s ability to conduct its business. The table sets forth the assets and liabilities of the VIEs and subsidiaries of VIEs included in the Company’s consolidated balance sheets: As of December 31, 2018 2019 RMB RMB US$ Current assets: Cash and cash equivalents 1,419,293 539,491 77,493 Restricted cash 1,619,937 1,140,819 163,868 Loans and advances, net 1,482,368 1,517,876 218,029 Short-term investments 4,100 — — Prepaid expenses and other assets 553,251 438,842 63,036 Amounts due from related parties 42,680 49,815 7,155 Total current assets 5,121,629 3,686,843 529,581 Non-current assets: Restricted cash 19,368 — — Long-term investments 13,333 13,333 1,915 Loans and advances, net 421,564 49,643 7,131 Prepaid expenses and other assets 7,606 23,429 3,365 Property, equipment and software, net 88,684 58,638 8,423 Goodwill 3,067 3,067 441 Deferred tax assets 329,796 675,089 96,970 Total non-current assets 883,418 823,199 118,245 Total assets 6,005,047 4,510,042 647,826 Current liabilities: Payable to institutional funding partners and online investors 1,005,236 289,026 41,516 Current account with online investors and borrowers 2,005,605 1,275,210 183,172 Income tax payable 59,461 228,573 32,832 Accrued expenses and other liabilities 459,415 383,365 55,067 Amounts due to related parties 452,518 628,414 90,266 Contract liabilities — 271,741 39,033 Deferred revenue 11,962 — — Total current liabilities 3,994,197 3,076,329 441,886 Non-current liabilities: Payable to institutional funding partners and online investors 450,160 51,444 7,389 Contract liabilities — 198,282 28,481 Deferred revenue 11,343 — — Other non-current liabilities 14,110 — — Total non-current liabilities 475,613 249,726 35,870 Total liabilities 4,469,810 3,326,055 477,756 The table sets forth the results of operations of the VIEs and subsidiaries of VIEs included in the Company’s consolidated statements of comprehensive income: Year ended December 31, 2017 2018 2019 RMB RMB RMB US$ Net revenues 3,545,430 3,917,701 2,709,562 389,204 Net income 474,821 231,872 27,298 3,921 The table sets forth the cash flows of the VIEs and subsidiaries of VIEs included in the Company’s consolidated statements of cash flows: Year ended December 31, 2017 2018 2019 RMB RMB RMB US$ Net cash provided by operating activities 2,284,077 1,204,835 2,242,135 322,063 Net cash used in investing activities (2,941,921) (9,916) (913,760) (131,253) Net cash provided by (used in) financing activities 2,205,523 (998,814) (1,114,926) (160,149) As of December 31, 2018 and 2019, there was no pledge or collateralization of the assets of the VIEs and its subsidiaries. The amount of the net assets of the VIEs and subsidiaries of VIEs was RMB1,535,237 and RMB1,183,987 (US$170,070) as of December 31, 2018 and 2019, respectively. The creditors of the VIEs and subsidiaries of VIEs’ third-party liabilities did not have recourse to the general credit of the primary beneficiary in the normal course of business. The Company did not provide nor intended to provide additional financial or other support not previously contractually required to the VIEs and subsidiaries of VIEs during the years presented. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of presentation The consolidated financial statements of the company have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, VIEs and VIEs’ subsidiaries for which the Company is the primary beneficiary. All significant inter-company balances and transactions between the Company, its subsidiaries, VIEs and VIEs’ subsidiaries are eliminated upon consolidation. Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant accounting estimates reflected in the Company’s consolidated financial statements include, but are not limited to, revenue recognition, allowance for loans and advances, financial assets receivable and guarantee liabilities, useful life of long-lived assets, share-based compensation, valuation allowance for deferred tax assets, uncertain tax positions, short-term and long-term investments, and the purchase price allocation with respect to business combinations and impairment of goodwill. Management bases these estimates on its historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from these estimates. Foreign currency translation and transactions The Company uses Renminbi (“RMB”) as its reporting currency. The functional currencies of the Company’s entities incorporated in Cayman Islands and Hong Kong are US$. The functional currencies of the Company’s PRC subsidiary, VIE and VIE’s subsidiaries are the RMB. The determination of the respective functional currency is based on the criteria stated in ASC 830, Foreign Currency Matters. The financial statements of the Company and Weidai HK are translated from the functional currency to the reporting currency, RMB. Monetary assets and liabilities of the subsidiaries are translated into RMB using the exchange rate in effect at each balance sheet date. Income and expenses items are translated at the average exchange rate prevailing during the fiscal year. Translation gains and losses are accumulated in other comprehensive income, as a component of shareholders’ equity on the consolidated financial statements. Transactions denominated in other than the functional currencies are remeasured into the functional currency of the entity at the exchange rates prevailing on the transaction dates. Financial assets and liabilities denominated in other than the functional currency are re-measured into the functional currency at the exchange rates prevailing at the balance sheet date. The foreign exchange differences are recorded in the consolidated statements of comprehensive income. Convenience translation Translations of amounts from RMB into US$ for the convenience of the readers have been calculated at the exchange rate of RMB6.9618 per US$1.00 on December 31, 2019, the last business day in fiscal year 2019, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be converted, realized or settled into US$ at such rate or at any other rate. Cash and cash equivalents Cash and cash equivalents primarily consist of cash and bank deposits, which are unrestricted as to withdrawal and use. The Company considers all highly liquid investments that are readily convertible to known amounts of cash and with original maturities from the date of purchase of three months or less to be cash equivalents. Restricted cash The Company’s restricted cash mainly represents (i) cash received but has not yet been disbursed, including idle funds due to investors whom recharge to the accounts on the platform but have not yet invested or fully funded the loans and funds due to borrowers that investors lend to borrowers but borrowers have not yet withdrawn. Such funds were processed through a designated bank account. As of December 31, 2018, and 2019, the restricted cash related to cash not yet disbursed amounted to RMB1,583,178 and RMB1,020,151 (US$146,535), respectively; and (ii) cash held by banks as guarantee deposits paid on contracts and other restrictions amounted to RMB56,127 and RMB120,668 (US$17,333) as of December 31, 2018 and 2019, respectively. Short-term investments Short term investments consist of held-to-maturity investments and available-for-sale investments. Investments classified as held-to-maturity investments are stated at amortized cost. Investments classified as available-for-sale investments are carried at their fair values and the unrealized gains or losses from the changes in fair values are reported net of tax in accumulated other comprehensive income until realized. The Company’s available-for-sale debt securities consist of financial products with maturities of less than one year purchased from commercial banks. The Company reviews its investments for other-than-temporary impairment (“OTTI”) based on the specific identification method. The Company considers available quantitative and qualitative evidence in evaluating potential impairment of its investments. If the cost of an investment exceeds the investment’s fair value, the Company considers, among other factors, general market conditions, expected future performance of the investees, the duration and the extent to which the fair value of the investment is less than the cost, and the Company’s intent and ability to hold the investment. OTTI is recognized as a loss in the income statement. Loans and advances, net Loans and advances represent payments due from borrowers. Loans and advances are recorded at amortized cost (i.e. unpaid principal and deferred origination costs), net of allowance for loans and advances. Deferred origination costs are netted against net financing income and amortized over the financing term using the effective interest method. The Company does not accrue interest income on loan principals that are considered impaired or past due. A corresponding allowance is determined under ASC 450‑20 and allocated accordingly. After an impaired loan has been placed on nonaccrual status, interest receivable will be recognized when cash is received by applying first to reduce loan principal and then to interest income thereafter. Interest income accrued but not received is generally reversed against interest income. Interest receivables may be returned to accrual status after all of the borrower’s delinquent balances of loan principal and interest have been settled and the borrower remains current for an appropriate period. Allowance for loans and advances The Company segregates the loans into secured and unsecured, and then into various portfolios, i.e. automobile and home equity, etc. and applies its credit risk management framework to the various portfolio of loans in accordance with ASC 450‑20, Loss Contingencies. The allowance for loans and advances losses is calculated based on the Company’s historical loss experience using a roll rate-based model. The roll rate-based model stratifies the loan principal and interest receivables by delinquency stages (i.e., current, 1‑30 days past due, and 31‑60 days past due etc.) and projected forward in one-month increments using historical roll rates. In each month of the simulation, losses on the loans and advances types are captured, and the ending delinquency stratification serves as the beginning point of the next iteration. This process is repeated on a monthly rolling basis. The loss rate calculated for each delinquency stage is then applied to the respective loans and advances balance. The Company adjusts the allowance that is determined by the roll rate-based model for various Chinese macroeconomic factors i.e. gross-domestic product rates, per capita disposable income, interest rates and consumer price indexes. Each of these macroeconomic factors are equally weighted, and a score is applied to each factor based on year-on-year increases and decreases in that respective factor. Loans are charged off when a settlement is reached for an amount that is less than the outstanding balance or when the Company has determined the balance is uncollectable. In general, unsecured loans are charged off when outstanding loans are 180 days past due. Secured loans may be charged off upon the death of the borrower, significant damage to the collateral, and when the Company considers the balance to be uncollectable. Acquired non-performing loans The Company records acquired non-performing loans in accordance with ASC310‑30, Loan and Debt Securities with Deteriorated Credit Quality, when it voluntarily purchases a delinquent loan. Such acquired non-performing loans are expected to be recovered either through the sale of the loan collateral upon foreclosure or from the subsequent payments made by the borrowers and are initially recorded at their purchase price. As the cash flows expected to be collected cannot be estimated because the timing of the collection and the condition of the collateral are indeterminable, the acquired non-performing loans are placed on non-accrual status and impairment is measured based on the fair value of the collateral less the estimated selling costs. The Company derecognizes the acquired non-performing loan when the non-performing loan is settled through foreclosure or repayment by the borrower. Any difference between the proceeds from sale of the collateral or subsequent payments made by the borrowers, and the acquired non-performing loan balance is recognized in other revenues in the consolidated statements of comprehensive income. Borrowings For certain transactions with the borrowers, the Company may provide a loan to borrowers and then transfers the loan to investors at varying rates and tenures. Although the loan is transferred to the investors, the loan principal is not derecognized upon transfer, as the transaction does not represent a transfer of an entire financial asset or a participating interest and the loan is not legally isolated from the Company. Additionally, the terms of the transfer require the Company to guarantee the principal and interest in case of default by the borrowers. As a result, the arrangement is accounted for as a secured borrowing in accordance with ASC 860, Transfers and Servicing . The loan remains on the Company’s consolidated balance sheets and the funds received from the investors are recorded as payable to institutional funding partners and online investors in the Company’s consolidated balance sheets. Borrowings are initially recognized at fair value which is the cash received from investors, and measured subsequently at amortized cost using the effective interest method. Guarantee liabilities The Company provides guarantee to various institutional funding partners and online investors. The guarantee requires the Company to either make delinquent installment repayments or purchase the loans after a specified period on an individual loan basis. The guarantee liability is exempted from being accounted for as a derivative in accordance with ASC 815-10-15-58. The guarantee liability consists of two components. The Company’s obligation to stand ready to make delinquent payments or to purchase the loan over the term of the arrangement (the non-contingent aspect) is accounted for in accordance with ASC 460, Guarantees (“ASC 460”). The contingent obligation relating to the contingent loss arising from the arrangement is accounted for in accordance with ASC 450, Contingencies (“ASC 450”). At inception, the Company recognizes the non-contingent aspect of the guarantee liability at fair value, which considers the premium required by a third party market participant to issue the same risk assurance in a standalone transaction. Subsequent to the initial recognition, the non-contingent aspect of the risk assurance liability is reduced over the term of the arrangement as the Company is released from its stand ready obligation on a loan-by-loan basis based on the borrower’s repayment of the loan principal. The contingent loss arising from the obligation to make future payments is recognized when borrower default is probable and the amount of loss is estimable. The Company considers the underlying risk profile including delinquency status, overdue period, and historical loss experience when assessing the probability of contingent loss. Borrowers are grouped based on common risk characteristics, such as product type. The Company measured contingent loss based on the future payout of the arrangement estimated using the historical default rates of a portfolio of similar loans less the fair value of the recoverable collateral. The amount of provision for financial guarantee liabilities was nil, RMB21,712 and RMB19,206 (US$2,759) for the years ended December 31, 2017, 2018 and 2019. The maximum potential undiscounted future payment which the Company would be required to make under its guarantee obligation is RMB2,938,661 and RMB3,030,654 (US$435,326) as of December 31, 2018 and 2019, respectively. Long-term Investments The Company’s long-term investments consist of cost method investments. In accordance with ASC subtopic 325‑20 (“ASC 325‑20”), Investments-Other: Cost Method Investments , for investments in an investee over which the Company does not have control or significant influence and for which there is no readily determinable fair value, the Company carries the investment at cost and only adjusts for other-than-temporary declines in fair value and distributions of earnings that exceed the Company’s share of earnings since its investment. The Company regularly evaluates the impairment of the investment based on the performance and the financial position of the investee as well as other evidence of market value. Such evaluation includes, but is not limited to, reviewing the investee’s cash position, recent financing, projected and historical financial performance, cash flow forecasts and financing needs. An impairment loss recognized in earnings is equal to the excess of the investment’s cost over its fair value at the balance sheet date of the reporting period for which the assessment is made. The fair value would then become the new cost basis of investment. No impairment loss on the cost method investments was recognized for the years ended December 31, 2017, 2018 and 2019. Business combinations The Company accounts for its business combinations using the purchase method of accounting in accordance with ASC 805, Business Combinations (“ASC 805”). The purchase method of accounting requires that the consideration transferred to be allocated to the assets, including separately identifiable assets and liabilities the Company acquired, based on their estimated fair values. The consideration transferred in an acquisition is measured as the aggregate of the fair values at the date of exchange of the assets given, liabilities incurred, and equity instruments issued as well as the contingent considerations and all contractual contingencies as of the acquisition date. The costs directly attributable to the acquisition are expensed as incurred. Identifiable assets, liabilities and contingent liabilities acquired or assumed are measured separately at their fair value as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of (i) the total of cost of acquisition, fair value of the non-controlling interests and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree, is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in earnings. The Company early adopted ASU No. 2017‑01, Business Combinations (Topic 802): Clarifying the Definition of a Business , in determining whether it has acquired a business. The determination and allocation of fair values to the identifiable assets acquired, liabilities assumed and non-controlling interests is based on various assumptions and valuation methodologies requiring considerable judgment from management. The most significant variables in these valuations are discount rates, terminal values, the number of years on which to base the cash flow projections, as well as the assumptions and estimates used to determine the cash inflows and outflows. The Company determines discount rates to be used based on the risk inherent in the related activity’s current business model and industry comparisons. Terminal values are based on the expected life of assets, forecasted life cycle and forecasted cash flows over that period. Goodwill The Company assesses goodwill for impairment in accordance with ASC 350‑20, Intangibles — Goodwill and Other: Goodwill (“ASC 350‑20”), which requires that goodwill be tested for impairment at the reporting unit level at least annually and more frequently upon the occurrence of certain events, as defined by ASC 350‑20. The Company has determined that it has one reporting unit. The Company has the option to assess qualitative factors first to determine whether it is necessary to perform the quantitative impairment test in accordance with ASC 350‑20. If the Company believes, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount, the quantitative impairment test is required. Otherwise, no further testing is required. In the qualitative assessment, the Company considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. The Company early adopted ASU No. 2017-04, Simplifying the Test for Goodwill Impairment, which simplifies the accounting for goodwill impairment by eliminating Step two from the goodwill quantitative impairment test. Under the new guidance, if a reporting unit’s carrying amount exceeds its fair value, an entity will record an impairment charge based on that difference. The impairment charge will be limited to the amount of goodwill allocated to that reporting unit. Fair value is primarily determined by computing the future discounted cash flows expected to be generated by the reporting unit. Fair value measurements of financial instruments Financial instruments of the Company primarily consist of cash and cash equivalents, restricted cash, available-for-sale debt securities, long-term time deposits, amounts due from and due to related parties, loans and advances, cost method investments, short-term borrowings, payable to institutional funding partners and online investors and current account with online investors and borrowers. The carrying amounts of these financial instruments, except for long-term time deposit, long-term loans and advances, cost method investments and long-term payable to institutional funding partners and online investors approximate their fair values because of their generally short maturities. The Company applies ASC topic 820 (“ASC 820”), Fair Value Measurements and Disclosures , in measuring fair value. ASC 820 defines fair value, establishes a framework for measuring fair value and requires disclosures to be provided on fair value measurement. ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: · Level 1 - Observable inputs that reflect quoted prices in active markets for identical assets or liabilities. · Level 2 - Include other inputs that are directly or indirectly observable in the marketplace. · Level 3 - Unobservable inputs which are supported by little or no market activity. ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach; and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. In accordance with ASC 820, the Company measures available-for-sale investments at fair value on a recurring basis. The fair value of the Company’s available-for-sale debt securities are measured using the income approach, based on quoted market interest rates of similar instruments and other significant inputs derived from or corroborated by observable market data. The fair value of time deposits is determined based on the prevailing interest rates in the market. The fair values of the Company’s long-term loans and advances and long-term payable to institutional funding partners as disclosed are determined based on the discounted cash flow model using the discount curve of market interest rates. The Company did not disclose the fair value of its cost method investments since the fair value cannot be determined without undue cost and effort. Fair value measurement or disclosure at December 31, 2018 using Significant Quoted prices in other Significant active markets for observable unobservable Total fair value at identical assets inputs inputs December 31, 2018 (Level 1) (Level 2) (Level 3) RMB RMB RMB RMB Fair value disclosure Loans and advances, net – non-current 421,564 — 421,564 — Long-term payable to institutional funding partners and online investors 419,039 — 419,039 — Fair value measurements Recurring Recurring short-term investments Available-for-sale debt securities 4,100 — 4,100 — Fair value measurement or disclosure at December 31, 2019 using Quoted prices in Significant Significant active markets for other unobservable Total fair value at identical assets observable inputs December 31, 2019 (Level 1) inputs (Level 2) (Level 3) RMB US$ RMB RMB RMB Fair value disclosure Loans and advances, net – non-current 49,643 7,131 — 49,643 — Long-term payable to institutional funding partners and online investors 49,866 7,163 — 49,866 — Fair value measurements Recurring Recurring short-term investments Available-for-sale debt securities — — — — — The Company had no financial assets and liabilities measured and recorded at fair value on a non-recurring basis as of December 31, 2018 and 2019. Property, equipment and software, net Property, equipment and software are stated at cost less accumulated depreciation and amortization using the straight-line method with the residual value over the estimated useful lives of the assets, as follows: Estimated Estimated Category: Useful Life Residual Value Computer and electronic equipment 3~5 years 5 % Office furniture and equipment 3~5 years 5 % Vehicles 3~4 years 5 % Software 3~10 years 0 % Leasehold improvement Lessor of useful life or lease term 0 % Costs associated with the repair and maintenance of property and equipment are expensed as incurred. Impairment of long-lived assets The Company evaluates its long-lived assets or asset group, including intangible assets with finite lives, for impairment whenever events or changes in circumstances indicate that the carrying value of an asset or a group of long-lived assets may not be recoverable. When these events occur, the Company evaluates for impairment by comparing 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 based on the excess of carrying value of the asset over its fair value. No impairment loss was recognized for the years ended December 31, 2017, 2018 and 2019. Research and development expenses Research and development expenses are primarily incurred in the development of new services, new features and general improvement of the Company’s technology infrastructure to support its business operations. Research and development costs are expensed as incurred unless such costs qualify for capitalization as software development costs. In order to qualify for capitalization, (i) the preliminary project should be completed, (ii) management has committed to funding the project and it is probable that the project will be completed and the software will be used to perform the function intended, and (iii) it will result in significant additional functionality in the Company’s services. No research and development costs were capitalized during the years ended December 31, 2017, 2018 and 2019. The Company recognized research and development expenses amounted to RMB100,966, RMB139,318 and RMB81,664 (US$11,730) for the years ended December 31, 2017, 2018 and 2019, respectively. Government subsidies Government subsidies primarily consist of financial subsidies received from provincial and local governments for operating a business in their jurisdictions and compliance with specific policies promoted by the local governments. There are no defined rules and regulations to govern the criteria necessary for companies to receive such benefits, and the amount of financial subsidy is determined at the discretion of the relevant government authorities. The government subsidies of non-operating nature with no further conditions to be met are recorded as non-operating income when received. The government subsidies with certain operating conditions are recorded as liabilities when received and will be recorded as operating income when the conditions are met. Modification of equity-classified preferred shares The Company assesses whether an amendment to the terms of its equity-classified preferred shares is an extinguishment or a modification based on the change in the fair value of the preferred shares. If the change in fair value of equity-classified preferred shares immediately after the amendment exceeds 10% from the fair value of the equity-classified preferred shares immediately before the amendment, the amendment is considered an extinguishment. An amendment that does not meet this criteria is a modification. When equity-classified preferred shares are extinguished, the difference between the fair value of the consideration transferred to the equity-classified preferred shareholders and the carrying amount of the equity-classified preferred shares (net of issuance costs) is treated as a deemed dividend to the equity-classified preferred shareholders. When equity-classified preferred shares are modified, the increase of the fair value immediately after the amendment is treated as a deemed dividend to the equity-classified preferred shareholders. Modifications that result in a decrease in the fair value of the equity-classified preferred shares are not recognized. Revenue recognition The Company operates an online platform which matches borrowers with investors. The Company’s platform enables investors to directly invest in individual loans or subscribe to the Company’s investment programs which provide them with pre-specified investment returns while minimizing the time needed to manage their investments. The Company’s arrangements with customers can be broadly categorized into three types of arrangements. In the first type of arrangement, the Company may advance funds to the borrowers while the loan is being listed on the online platform for online investors to subscribe to. However, the Company does not provide a guarantee to investors and is not the legal title holder of the underlying collateral. The Company determined that it is not the legal lender and legal borrower in the loan origination and repayment process, respectively, because when the loan is fully subscribed by investors, the investors’ funds will be used to settle the advance made by the Company to the borrowers. Therefore, the Company does not record loan receivables and payables arising from the loans between borrowers and investors on its consolidated balance sheets. In the second type of arrangement, the Company does not advance funds to the borrowers prior to a loan being subscribed by the institutional funding partners and online investors. Furthermore, the Company may provide a guarantee to the institutional funding partners and online investors which guarantees the contractual payments of the loan in the event the borrower defaults. The Company determined it is not the legal lender and legal borrower in the loan origination and repayment process, respectively. Therefore, the Company does not record loan receivables and payables arising from the loans between borrowers and the institutional funding partners and online investors on its consolidated balance sheets. In the third type of arrangement, the Company advances funds to the borrowers prior to a loan being subscribed by the investors. The Company provides a guarantee which guarantees the contractual payments of the loan in the event the borrower defaults. As the transaction does not represent a transfer of an entire financial asset or a participating interest and is not legally isolated from the Company, the arrangement is accounted for as loan origination by the Company and a secured borrowing in accordance with ASC 860, Transfers and Servicing. After adoption of ASU 2014-09, "Revenue from Contracts with Customers" (Topic 606)" with modified retrospective method The Company provides loan solution services which include facilitating and monitoring the execution of loan agreements. Borrowers make repayments through the Company, and the Company will then remit the requisite returns to the investors on a periodic basis. The Company also generates revenue from other contingent fees, such as late payment penalties and net revenue from sale of collateral. On January 1, 2019, the Company adopted the revenue standard using the modified retrospective method to those contracts which were not completed as of January 1, 2019. Results for periods beginning after January 1, 2019 are presented under ASC 606 Revenue from Contracts with Customers (“ASC 606”), while prior period amounts are not adjusted and continue to be reported in accordance with historic accounting under ASC 605 Revenue recognition (“ASC 605”). Upon initial adoption, the Company recognized the cumulative effect of initially applying the revenue standard as a decrease of approximately RMB255,730, net of tax, to the opening balances of retained earnings. These adjustments primarily arose from the timing of revenue recognition for transaction fees collected upfront at loan inception to being recognized overtime under ASC 606. The table below sets forth the cumulative effect of the changes made to the consolidated balance sheet as of January 1, 2019 due to the adoption of ASC 606. Balance at Adjustments Balance at Assets December 31, 2018 due to ASC 606 January 1, 2019 RMB RMB RMB Deferred tax assets Liabilities Deferred revenue 23,305 (23,305) — Contract liabilities — 364,278 364,278 Shareholders’ equity Retained earnings 1,040,443 (255,730) 784,713 The table below sets forth the impact to the consolidated statement of comprehensive income as a result of adoption of ASC 606: For the year ended December 31, 2019 Amounts without adoption As reported of ASC 606 Effect of change RMB RMB RMB Revenue from loan services fee 2,955,050 3,090,589 (135,539) Consistent with the criteria of ASC 606 "Revenue from Contracts with Customers", the Company recognizes revenue by applying the following five steps: (i) identify the contract with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to performance obligations in the contract; and (v) recognize revenue when (or as) performance obligations are satisfied. The Company determines that both the borrowers and the investors are its customers because they both receive services provided by the Company pursuant to the contractual terms among the Company, the borrowers and the investor |
Concentration of risks
Concentration of risks | 12 Months Ended |
Dec. 31, 2019 | |
Concentration of risks | |
Concentration of risks | 3. Concentration of risks Currency convertibility risk Substantially all of the Company’s business are transacted in RMB, which is not freely convertible into foreign currencies. On January 1, 1994, the PRC government abolished the dual rate system and introduced a single rate of exchange as quoted daily by the People’s Bank of China (the “PBOC”). However, the unification of the exchange rates does not imply that the RMB may be readily convertible into United States dollars or other foreign currencies. All foreign exchange transactions take place either through the Peoples’ Bank of China (“PBOC”) or other authorized financial institution at exchange rates quoted by PBOC. Approval of foreign currency payments by the PBOC or other regulatory institutions requires submitting a payment application form together with suppliers’ invoices and signed contracts. Concentration of credit risk Financial assets that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, loans and advances, financial assets receivable, guarantee deposits and short-term investment. The Company places its cash and cash equivalents, restricted cash and short-term investment, with reputable financial institutions that have high-credit ratings and quality. There has been no recent history of default in relation to these financial institutions. The Company manages credit risk of loan principal by performing credit assessments on its borrowers and its ongoing monitoring of the outstanding balances. No individual borrower represented 10% or more of total revenue, and loan and advances for the years ended December 31, 2017, 2018 and 2019. Interest rate risk The Company is exposed to interest rate risk on its interest-bearing assets and liabilities. As part of its asset and liability risk management, the Company reviews and takes appropriate steps to manage its interest rate exposures on its interest-bearing assets and liabilities. The Company has not been exposed to material risks due to changes in market interest rates, and the Company has not used any derivative financial instruments to manage the interest risk exposure during years presented. Business and economic risk The Company believes that changes in any of the following areas could have a material adverse effect on the Company’s future financial position, results of operations or cash flows: changes in the overall demand for services and products; competitive pressures due to new entrants; advances and new trends in new technologies and industry standards; changes in certain strategic relationships; regulatory considerations and risks associated with the Company’s ability to attract employees necessary to support its growth. The Company’s operations could also be adversely affected by significant political, economic and social uncertainties in the PRC. Foreign currency exchange rate risk From July 21, 2005, the RMB is permitted to fluctuate within a narrow and managed band against a basket of certain foreign currencies. For RMB against U.S. dollar, there was appreciation of 5.8% in the year ended December 31, 2017, depreciation of 5.4% in the year ended December 31, 2018, and depreciation of 1.3% in the year ended December 31, 2019. It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the RMB and the U.S. dollar in the future. To the extent that the Company needs to convert U.S. dollar into RMB for capital expenditures and working capital and other business purposes, appreciation of RMB against U.S. dollar would have an adverse effect on the RMB amount the Company would receive from the conversion. Conversely, if the Company decides to convert RMB into U.S. dollar for the purpose of making payments for dividends on ordinary shares, strategic acquisitions or investments or other business purposes, appreciation of U.S. dollar against RMB would have a negative effect on the U.S. dollar amount available to the Company. In addition, a significant depreciation of the RMB against the U.S. dollar may significantly reduce the U.S. dollar equivalent of the Company’s earnings or losses. |
Loans and advances, net
Loans and advances, net | 12 Months Ended |
Dec. 31, 2019 | |
Loans and advances, net | |
Loans and advances, net | 4. Loans and advances, net Loans and advances originated and retained by the Company consist of the following: As of December 31 2018 2019 RMB RMB US$ Current portion: Loans receivable (i) Auto-backed loans 233,893 125,058 17,963 Other secured loans 139,939 126,251 18,135 Unsecured loans 587,211 97,465 14,000 Sub-total 961,043 348,774 50,098 Acquired non-performing loans (ii) Auto-backed loans 723,404 1,641,865 235,839 Other secured loans 364,424 358,535 51,500 Unsecured loans 197,820 426,526 61,267 Sub-total 1,285,648 2,426,926 348,606 Total current loans and advances 2,246,691 2,775,700 398,704 Allowance for loans and advances (764,323) (1,257,824) (180,675) Loans and advances, net 1,482,368 1,517,876 218,029 Non-current portion: Loans receivable (i) Auto-backed loans 176,923 16,858 2,422 Other secured loans 196,409 34,586 4,968 Unsecured loans 54,259 — — Total non-current loans and advances 427,591 51,444 7,390 Allowance for loans and advances (6,027) (1,801) (259) Loans and advances, net 421,564 49,643 7,131 (i) Loans receivable represent loans originated by the Company with an original term up to three years and annual interest rate primarily ranging between 6%~36%; (ii) Acquired non-performing loans are overdue loans purchased by the Company from online investors and institutional funding partners; The following table sets forth the activities in the allowance for loans and advances for the years ended December 31, 2017, 2018 and 2019: 2017 Loans receivable Acquired non-performing loans Other Other Auto- backed secured Unsecured Auto- backed secured Unsecured loans loans loans loans loans loans Total RMB RMB RMB RMB RMB RMB RMB Beginning balance — — — (67,156) — (372) (67,528) Current year provision (5,149) (913) (64,515) (327,453) (4,832) (81,201) (484,063) Recoveries of loans previously written off — — — (18,943) — — (18,943) Write-offs — — — 161,378 1,077 1,789 164,244 Ending balance (5,149) (913) (64,515) (252,174) (3,755) (79,784) (406,290) 2018 Loans receivable Acquired non-performing loans Other Other Auto-backed secured Unsecured Auto-backed secured Unsecured loans loans loans loans loans loans Total RMB RMB RMB RMB RMB RMB RMB Beginning balance (5,149) (913) (64,515) (252,174) (3,755) (79,784) (406,290) Current year provision (7,864) (4,427) 4,106 (430,213) (53,245) (259,929) (751,572) Recoveries of loans previously written off — — — (27,879) (24) (355) (28,258) Write-offs — — — 242,492 18,323 154,955 415,770 Ending balance (13,013) (5,340) (60,409) (467,774) (38,701) (185,113) (770,350) 2019 Loans receivable Acquired non-performing loans Other Other Auto-backed secured Unsecured Auto-backed secured Unsecured loans loans loans loans loans loans Total RMB RMB RMB RMB RMB RMB RMB US$ Beginning balance (13,013) (5,340) (60,409) (467,774) (38,701) (185,113) (770,350) (110,654) Current year provision 9,803 2,447 34,844 (790,565) (42,696) (453,795) (1,239,962) (178,109) Recoveries of Loans previously written off — — — (33,587) (1,180) (340) (35,107) (5,043) Write-offs — — — 388,541 3,979 385,878 778,398 111,810 Deregistration of subsidiary — — — — — 7,396 7,396 1,062 Ending balance (3,210) (2,893) (25,565) (903,385) (78,598) (245,974) (1,259,625) (180,934) The following table sets forth the aging of loans receivable as of December 31, 2018 and 2019: 1‑30 31‑60 61‑90 91‑120 121‑150 151‑180 181‑360 Over 360 days past days past days past days past days past days past days past days past As of December 31, 2018 Current due due due due due due due due Total RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB Loans receivable Auto-backed loans 383,469 15,939 3,523 3,663 578 — 496 3,148 — 410,816 Other secured loans 324,102 7,929 3,168 1,149 — — — — — 336,348 Unsecured loans 557,229 53,294 8,749 5,287 4,619 3,895 2,629 5,768 — 641,470 Total 1,264,800 77,162 15,440 10,099 5,197 3,895 3,125 8,916 — 1,388,634 1‑30 31‑60 61‑90 91‑120 121‑150 151‑180 181‑360 Over 360 days past days past days past days past days past days past days past days past As of December 31, 2019 Current due due due due due due due due Total RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB US$ Loans receivable Auto-backed loans 143,019 2,339 1,457 1,314 — 109 198 480 — 148,916 21,391 Other secured loans 148,007 3,600 1,087 1,143 — — — — — 153,837 22,097 Unsecured loans 51,578 17,162 3,450 2,740 3,354 3,271 3,570 11,437 903 97,465 14,000 Total 342,604 23,101 5,994 5,197 3,354 3,380 3,768 11,917 903 400,218 57,488 |
Short-term investments
Short-term investments | 12 Months Ended |
Dec. 31, 2019 | |
Short-term investments | |
Short-term investments | 5. Short-term investments As of December 31, 2018 and 2019, the Company’s short-term investments consist of available-for-sale debt securities with maturities of less than one year purchased from commercial banks. During the years ended December 31, 2017, 2018 and 2019, the Company recorded interest income from short-term investments of RMB17,202, RMB11,685 and RMB10,979 (US$1,577) in the consolidated statements of comprehensive income, respectively. |
Prepaid expenses and other asse
Prepaid expenses and other assets | 12 Months Ended |
Dec. 31, 2019 | |
Prepaid expenses and other assets | |
Prepaid expenses and other assets | 6. Prepaid expenses and other assets As of December 31, 2018 2019 RMB RMB US$ Current: Guarantee deposits (i) 116,535 99,785 14,333 Amounts due from third-party payment platforms (ii) 85,127 36,160 5,194 Prepaid rental and deposits 49,893 52,309 7,514 Others 308,610 253,078 36,352 Total 560,165 441,332 63,393 Non-current: Guarantee deposits 2,000 — — Prepaid rental and deposits 5,606 11,836 1,700 Others — 11,593 1,665 Total 7,606 23,429 3,365 (i) Guarantee deposits are mainly deposits paid to institutional funding partners for cooperation with these funding partners. (ii) Amount due from third-party payment platforms are mainly restricted cash held by third-party payment platform that belong to the borrowers and online investors as of December 31, 2018 and 2019. |
Long-term investments
Long-term investments | 12 Months Ended |
Dec. 31, 2019 | |
Long-term Investments | |
Long-term investments | 7. Long-term investments As of December 31, 2018 and 2019, the Company's long-term investments consist of cost method investments, which are investments in an investee over which the Company does not have control or significant influence and for which there is no readily determinable fair value. |
Property, equipment and softwar
Property, equipment and software, net | 12 Months Ended |
Dec. 31, 2019 | |
Property and equipment and software, net | |
Property, equipment and software, net | 8. Property and equipment and software, net Property, equipment and software, net consist of the following: As of December 31, 2018 2019 RMB RMB US$ Computer and electronic equipment 55,523 57,061 8,197 Leasehold improvement 46,596 55,954 8,037 Vehicles 20,615 10,731 1,541 Office furniture and equipment 4,321 3,732 536 Software 18,089 24,325 3,494 Total 145,144 151,803 21,805 Less: Accumulated depreciation and amortization (56,413) (92,020) (13,218) Property, equipment and software, net 88,731 59,783 8,587 Depreciation and amortization expenses of the property, equipment and software were RMB12,747, RMB42,431 and RMB 42,586 (US$6,117) for the years ended December 31, 2017, 2018 and 2019, respectively. |
Payable to institutional fundin
Payable to institutional funding partners and online investors | 12 Months Ended |
Dec. 31, 2019 | |
Payable to institutional funding partners and online investors | |
Payable to institutional funding partners and online investors | 9. Payable to institutional funding partners and online investors The following table presents payable to institutional funding partners and online investors as of December 31, 2018 and 2019: Fixed annual Rate (%) Term As of December 31, 2018 2019 RMB RMB US$ Current: Institutional funding partners 3% to 11% 7 to 12 months 390,908 242,056 34,769 Online investors 3% to 11% 2 to 12 months 614,328 46,970 6,747 1,005,236 289,026 41,516 Non-current: Institutional funding partners 3% to 11% 13 to 36 months 395,901 51,444 7,389 Online investors 5% to 13% 13 to 24 months 54,259 — — 450,160 51,444 7,389 The following table sets forth the contractual obligations which has not included the impact of discount of time value as of December 31, 2018 and 2019: Payment due by period Long-term borrowings and Greater than 2 interest payable: Less than 1 year 1‑2 years years Total As of December 31, 2018 (RMB) 485,878 412,650 54,275 952,803 As of December 31, 2019 (RMB) 386,337 54,067 — 440,404 As of December 31, 2019 (US$) 55,494 7,766 — 63,260 |
Current account with online inv
Current account with online investors and borrowers | 12 Months Ended |
Dec. 31, 2019 | |
Current account with online investors and borrowers | |
Current account with online investors and borrowers | 10. Current account with online investors and borrowers As of December 31, 2018 2019 RMB RMB US$ Investor deposits 1,461,080 853,283 122,566 Undrawn borrower funds and deposits 544,525 421,927 60,606 Total 2,005,605 1,275,210 183,172 |
Accrued expenses and other liab
Accrued expenses and other liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Accrued expenses and other liabilities | |
Accrued expenses and other liabilities | 11. Accrued expenses and other liabilities Accrued expenses and other liabilities consist of the following: As of December 31, 2018 2019 RMB RMB US$ Payroll and welfare payable 264,600 164,226 23,590 Accrued marketing expense 38,536 25,683 3,689 Other taxes payable 24,399 18,540 2,663 Others 173,904 188,957 27,141 Total 501,439 397,406 57,083 |
Interest income, net
Interest income, net | 12 Months Ended |
Dec. 31, 2019 | |
Interest income, net | |
Interest income, net | 12. Interest income, net Interest income, net consist of the following: Year Ended December 31, 2017 2018 2019 RMB RMB RMB US$ Interest income 35,742 73,729 42,013 6,035 Interest expense (4,949) (5,597) — — Bank charges (490) (1,341) (3,491) (501) Exchange gains — — 1,094 156 Interest income, net 30,303 66,791 39,616 5,690 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes | |
Income Taxes | 13. Income taxes Enterprise income tax Cayman Islands Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gains. In addition, upon payments of dividends by the Company to its shareholders, no withholding tax is imposed. Hong Kong The subsidiary incorporated in Hong Kong is subject to income tax at the rate of 16.5% on the estimated assessable profits arising in Hong Kong. For the years ended December 31, 2017, 2018 and 2019, the Company did not make any provisions for Hong Kong profit tax as there were no assessable profits derived from or earned in Hong Kong for any of the periods presented. Under the Hong Kong tax law, Weidai HK is exempted from income tax on its foreign-derived income and there is no withholding taxes in Hong Kong on remittance of dividends. China The Company’s subsidiary, VIE and VIE’s subsidiaries domiciled in the PRC were subject to 25% statutory income tax rate in the periods presented. Zhejiang Qunshuo Electronics Co., Ltd. and Hangzhou Yaohong Technology Co., Ltd. qualify as High and New Technology Enterprise ("HNTE") companies in the PRC, and are entitled to pay a reduced income tax rate of 15% for the period from January 1, 2019 to December 31, 2021. A HNTE Certificate is valid for three years. An entity may re-apply for an HNTE certificate when the prior certificate expires. The Enterprise Income Tax Law (the “EIT Law”) of the PRC includes a provision specifying that legal entities organized outside PRC will be considered residents for Chinese income tax purposes if their place of effective management or control is within the PRC. If legal entities organized outside PRC were considered residents for Chinese income tax purpose, they would become subject to the EIT Law on their worldwide income. This would cause any income from legal entities organized outside PRC earned to be subject to PRC’s 25% EIT. The Implementation Rules to the EIT Law provides that non-resident legal entities will be considered as PRC residents if substantial and overall management and control over the manufacturing and business operations, personnel, accounting, and properties, etc. reside within PRC. Despite the present uncertainties resulting from the limited PRC tax guidance on the issue, the Company does not believe that the legal entities organized outside PRC should be characterized as PRC residents for EIT Law purposes. Withholding tax on undistributed dividends The EIT law also imposes a withholding income tax of 10% on dividends distributed by a foreign invested enterprise (“FIE”) to its immediate holding company outside of China, if such immediate holding company is considered as a non-resident enterprise without any establishment or place within China or if the received dividends have no connection with the establishment or place of such immediate holding company within China, unless such immediate holding company’s jurisdiction of incorporation has a tax treaty with China that provides for a different withholding arrangement. According to the Arrangement between Mainland China and Hong Kong Special Administrative Region on the Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to Taxes on Income in August 2006, dividends paid by an FIE in China to its immediate holding company in Hong Kong will be subject to withholding tax at a rate of no more than 5% (if the foreign investor owns directly at least 25% of the shares of the FIE). The Company did not provide for foreign withholding taxes on the undistributed earnings of foreign subsidiaries during the years presented on the basis of its intent to permanently reinvest its foreign subsidiaries’ earnings. As of December 31, 2019, the total amount of undistributed earnings from the PRC subsidiaries for which no withholding tax has been accrued was RMB1,075,678 (US$154,511). Super deduction on research and development (“R&D”) expenses Under the EIT law of the PRC, qualified enterprises can enjoy a 150% super deduction for eligible R&D expenses in the year ended 2017, and 175% in the years ended in December 31, 2018 and 2019. During the years ended December 31, 2017, 2018 and 2019, RMB95,295, RMB86,686 and RMB85,810 (US$12,326) of R&D expense was eligible for the super deduction, which accounts for an RMB11,912, RMB16,254 and RMB13,919 (US$1,999) decrease in tax expense, respectively. The Company generates substantially all of its profit before income tax in the PRC. The current and deferred components of income tax expenses appearing in the consolidated statements of comprehensive income are as follows: Year ended December 31, 2017 2018 2019 RMB RMB RMB US$ Current income tax 318,090 330,859 365,292 52,471 Deferred income tax (124,887) (171,230) (260,049) (37,354) 193,203 159,629 105,243 15,117 The principal components of the deferred tax assets are as follows: As of December 31, 2018 2019 RMB RMB US$ Deferred tax assets Allowance for loans and advances 235,415 492,923 70,804 Net operating loss carry forwards 46,550 48,715 6,997 Accruals for share-based compensation 29,637 41,518 5,964 Accruals for payroll and other costs 19,925 13,590 1,952 Accruals for other liabilities — 4,801 690 Contract liabilities — 86,573 12,435 Less: valuation allowance (1,731) (13,031) (1,872) Balance at the end of the year 329,796 675,089 96,970 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, 2018 and 2019, valuation allowances on deferred tax assets are mainly arising from tax loss carry forwards because the Company believes that it is more-likely-than-not that certain of the subsidiaries, VIEs and subsidiaries of the VIE registered in the PRC will not be able to generate sufficient taxable income in the near future, to utilize the tax loss carry forwards. A reconciliation of the differences between the PRC statutory tax rate is as follows: Year ended December 31, 2017 2018 2019 RMB RMB RMB US$ Income before provision of income tax 668,024 764,259 368,485 52,930 PRC statutory income tax rate 25 % 25 % 25 % 25 % Income tax computed at statutory tax rate 167,006 191,065 92,121 13,233 Difference on tax rate — — (18,427) (2,647) Research and development super-deduction (11,912) (16,254) (13,919) (1,999) Non-deductible/non-taxable items 1,499 29,916 34,168 4,908 Changes in valuation allowance 36,610 (45,098) 11,300 1,622 Income tax expenses 193,203 159,629 105,243 15,117 The Company did not identify significant unrecognized tax benefits for the years ended December 31, 2017, 2018 and 2019. The Company did not incur any interest and penalties related to potential underpaid income tax expenses. In general, the PRC tax authority has up to five years to conduct examinations of the Company’s tax filings. Accordingly, the PRC subsidiaries’ and VIEs and subsidiaries of the VIEs’ tax years 2015 through 2019 remain open to examination by the taxing jurisdictions. According to PRC tax regulations, the PRC net operating loss can generally carry forward for no longer than five years starting from the year subsequent to the year in which the loss was incurred. Carryback of losses is not permitted. As of December 31, 2019, the Company had net operating losses of RMB194,860 (US$27,990) which will be available to offset future taxable income. If not used, these carryforwards will expire between the year ended December 31, 2022 and 2024. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings per share | |
Earnings per share | 14. Earnings per share Basic earnings per share for each of the years presented are calculated as follows: Year ended December 31, 2017 2018 2019 Ordinary shares Class A Class B Class A Class B RMB RMB RMB RMB US$ RMB US$ Numerator: Net income attributable to ordinary shareholders 466,217 338,385 383,234 127,357 18,293 126,253 18,135 Allocation of net income attributable to preferred shares (115,555) (164,830) — — — — — Numerator for computing basic earnings per share 350,662 173,555 383,234 127,357 18,293 126,253 18,135 Denominator: Weighted average number of ordinary shares outstanding - basic 48,392,050 15,882,661 35,071,400 35,378,124 35,378,124 35,071,400 35,071,400 Earnings per share - basic 7.25 10.93 10.93 3.60 0.52 3.60 0.52 Diluted earnings per share for each of the years presented are calculated as follows: Year ended December 31, 2017 2018 2019 Ordinary shares Class A Class B Class A Class B RMB RMB RMB RMB US$ RMB US$ Numerator: Numerator for computing basic earnings per share 350,662 173,555 383,234 127,357 18,293 126,253 18,135 Allocation of net income attributable to Series C redeemable convertible preferred shares 22,324 — — — — — — Numerator for computing diluted earnings per share 372,986 173,555 383,234 127,357 18,293 126,253 18,135 Denominator: Weighted average number of ordinary shares outstanding 48,392,050 15,882,661 35,071,400 35,378,124 35,378,124 35,071,400 35,071,400 Conversion of Series C redeemable convertible preferred shares to ordinary shares 3,074,400 — — — — — — Weighted average number of ordinary shares outstanding - diluted 51,466,450 15,882,661 35,071,400 35,378,124 35,378,124 35,071,400 35,071,400 Earnings per share - diluted 7.25 10.93 10.93 3.60 0.52 3.60 0.52 |
Share capital
Share capital | 12 Months Ended |
Dec. 31, 2019 | |
Share capital | |
Share capital | 15. Share capital Ordinary shares On January 26, 2018, the Company issued 48,392,050 ordinary shares with par value of US$0.000002 to its shareholders in connection with the incorporation of the Company (Note 1). As of December 31, 2017, 24,982,901,300 ordinary shares were authorized and 48,392,050 ordinary shares were issued and outstanding, on a retrospective basis. Pursuant to the Company’s memorandum and articles of association, upon the completion of the IPO, all the outstanding Preferred Shares will automatically be converted into 17,098,700 Class A ordinary shares, and all the outstanding ordinary shares are re-designated into 13,320,650 Class A ordinary shares and 35,071,400 Class B ordinary shares, respectively. The rights of the holders of Class A and Class B ordinary shares are identical, except with respect to voting and conversion rights. Each share of Class A ordinary shares is entitled to one vote per share and is not convertible into Class B ordinary shares under any circumstances. Each share of Class B ordinary shares is entitled to five vote per share and is convertible into one Class A ordinary share at any time by the holder thereof. Upon any transfer of Class B ordinary shares by the holder thereof to any person or entity which is not an affiliate of such holder, such Class B ordinary shares would be automatically converted into equal number of Class A ordinary shares. On November 15, 2018, the Company completed its IPO on the New York Stock Exchange. The Company offered 4,500,000 Class A ordinary shares at US$10.00 per ADS. Additionally, on December 14, 2018, the underwriters exercised their options to purchase an additional 456,427 ADS at US$10.00 per ADS, representing 456,427 Class A ordinary shares, from the Company, respectively. Net proceeds from the IPO including the over-allotment option after deducting underwriting discount were RMB311,931. Deferred IPO costs of RMB25,528 were recorded as a reduction of the proceeds from the IPO in shareholders’ equity. As of December 31, 2018, there were 35,375,777 and 35,071,400 Class A and Class B ordinary shares outstanding respectively. As of December 31, 2019, there were and 35,390,055 and 35,071,400 Class A and Class B ordinary shares outstanding respectively. Dividends On April 14, 2017, the VIE’s Board of Directors declared dividends of RMB32,228 which was 10% of distributable net income of the year ended December 31, 2016 to all the holders of ordinary shares and preferred shares outstanding as of December 31, 2016 proportionately. The dividends per share was RMB0.50 and the aggregate dividends declared for the ordinary shares, Series A, A+, B and C preferred shares was RMB23,624, RMB4,602, RMB920, RMB1,534 and RMB1,548, respectively. The dividends were paid in 2017. No dividend was declared for the years ended December 31, 2018 and 2019. |
Related party balances and tran
Related party balances and transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related party balances and transactions | |
Related party balances and transactions | 16. Related party balances and transactions a) Related parties Name of related parties Relationship with the Company Mr. Hong Yao Founder, chief executive officer and principal shareholder of the Company Hangzhou Ruituo Technology Co., Ltd. Entity controlled by Founder Zhejiang Ruituo Information Technology Co., Ltd. Entity controlled by Founder Shanghai Zaohui Finance Lease Co., Ltd. Entity controlled by Director prior to June 6, 2018 Zhejiang Qunshuo Electronics Co., Ltd. Entity significantly influenced by Founder prior to October 10, 2017 Beijing Lezhihui Technology Co., Ltd. Entity significantly influenced by Founder Hangzhou Qiandaohuyaodage Trading Co., Ltd. Entity controlled by immediate family members of Founder Zhejiang Hongrui Investment Management Co., Ltd. Entity controlled by immediate family members of Founder Weiyi (Hangzhou) Internet Financial Information Service Co., Ltd. Entity controlled by immediate family members of Founder prior to May 2018 Chunan Yunxiu Financial Information Advisory Services Partnership (GP) (formerly known as Chunan Yuntong Information Advisory Services Company) Entity controlled by immediate family members of Director Chunan Wenbei Financial Information Advisory Services Partnership (GP) (formerly known as Chunan Wencai Information Advisory Services Company) Entity controlled by immediate family members of Founder Chunan Wenbing Financial Information Advisory Services Partnership (GP) (formerly known as Chunan Wencai Information Advisory Services Company) Entity controlled by immediate family members of Founder Chunan Wenhai Financial Information Advisory Services Partnership (GP) (formerly known as Chunan Wencai Information Advisory Services Company) Entity controlled by immediate family members of Founder Chunan Wenjun Financial Information Advisory Services Partnership (GP) (formerly known as Chunan Wencai Information Advisory Services Company) Entity controlled by immediate family members of Founder Chunan Wenkang Financial Information Advisory Services Partnership (GP) (formerly known as Chunan Wencai Information Advisory Services Company) Entity controlled by immediate family members of Founder Chunan Wenlin Financial Information Advisory Services Partnership (GP) (formerly known as Chunan Wencai Information Advisory Services Company) Entity controlled by immediate family members of Founder Chunan Wenrong Financial Information Advisory Services Partnership (GP) (formerly known as Chunan Wencai Information Advisory Services Company) Entity controlled by immediate family members of Founder Chunan Wenshe Financial Information Advisory Services Partnership (GP) (formerly known as Chunan Wencai Information Advisory Services Company) Entity controlled by immediate family members of Founder Chunan Wensheng Financial Information Advisory Services Partnership (GP) (formerly known as Chunan Wencai Information Advisory Services Company) Entity controlled by immediate family members of Founder Chunan Wenyang Financial Information Advisory Services Partnership (GP) (formerly known as Chunan Wencai Information Advisory Services Company) Entity controlled by immediate family members of Founder Chunan Wanglin Financial Information Advisory Services Partnership (GP) (formerly known as Chunan Wangcai Information Advisory Services Company) Entity controlled by immediate family members of Director Chunan Wangqi Financial Information Advisory Services Partnership (GP) (formerly known as Chunan Wangcai Information Advisory Services Company) Entity controlled by immediate family members of Director Chunan Wangqian Financial Information Advisory Services Partnership (GP) (formerly known as Chunan Wangcai Information Advisory Services Company) Entity controlled by immediate family members of Director Chunan Wangqun Financial Information Advisory Services Partnership (GP) (formerly known as Chunan Wangcai Information Advisory Services Company) Entity controlled by immediate family members of Director Chunan Wangxia Financial Information Advisory Services Partnership (GP) (formerly known as Chunan Wangcai Information Advisory Services Company) Entity controlled by immediate family members of Director Chunan Wanglan Financial Information Advisory Services Partnership (GP) (formerly known as Chunan Wangcai Information Advisory Services Company) Entity controlled by immediate family members of Director Chunan Wangzhi Financial Information Advisory Services Partnership (GP) Entity controlled by immediate family members of Director Suzhou Weixin Zhonghua Venture Capital Partnership (LLP) The Company’s shareholder Zhejiang Zhongbo Finance Lease Co., Ltd. Entity controlled by Director Zhejiang Ruituo Non-financing Guarantee Co., Ltd. Entity controlled by Founder PT PENDANAAN GOTONG ROYONG Entity significantly influenced by the Company Weiwu (Hangzhou) Network Technology Co., Ltd. Entity controlled by Founder Deqing Jingxiu Management Consultant Partnership (LLP) The Company’s shareholder Key management and their immediate family members The Company’s key management and their immediate family members b) The Company had the following related party transactions: Year ended December 31, 2017 2018 2019 RMB RMB RMB US$ Loan facilitation service fee from: Key management and their immediate family members 851 742 — — Hangzhou Ruituo Technology Co., Ltd. — 39 — — Loan service fee from: Key management and their immediate family members — — 274 39 Hangzhou Ruituo Technology Co., Ltd. — — 32 5 Total 851 781 306 44 Other revenues: Beijing Lezhihui Technology Co., Ltd. 3,740 13,362 — — Origination and servicing expenses: Beijing Lezhihui Technology Co., Ltd. 49,377 22,739 — — Chunan Wanglan Financial Information Advisory Services Partnership (GP) — 18,077 1,729 248 Chunan Wenjun Financial Information Advisory Services Partnership (GP) — 11,290 6,927 995 Chunan Wenkang Financial Information Advisory Services Partnership (GP) — 9,103 4,518 649 Chunan Wenhai Financial Information Advisory Services Partnership (GP) — 8,743 3,518 505 Chunan Wenbing Financial Information Advisory Services Partnership (GP) — 8,455 6,228 895 Chunan Wenlin Financial Information Advisory Services Partnership (GP) — 8,408 4,693 674 Chunan Wenrong Financial Information Advisory Services Partnership (GP) — 8,357 5,902 848 Chunan Wenshe Financial Information Advisory Services Partnership (GP) — 8,047 — — Chunan Wenbei Financial Information Advisory Services Partnership (GP) — 7,717 6,900 991 Chunan Wensheng Financial Information Advisory Services Partnership (GP) — 7,600 6,509 935 Chunan Wenyang Financial Information Advisory Services Partnership (GP) — 6,924 1,709 245 Chunan Wangxia Financial Information Advisory Services Partnership (GP) — 6,761 3,027 435 Chunan Wanglin Financial Information Advisory Services Partnership (GP) — 5,133 6,900 991 Chunan Wangqi Financial Information Advisory Services Partnership (GP) — 4,969 4,250 610 Chunan Wangqun Financial Information Advisory Services Partnership (GP) — 4,948 9,255 1,329 Chunan Wangqian Financial Information Advisory Services Partnership (GP) — 2,424 — — Chunan Yunxiu Financial Information Advisory Services Partnership (GP) — 1,909 943 135 Chunan Wencai Information Advisory Services Company 99,601 — — — Chunan Wangcai Information Advisory Services Company 62,496 — — — Chunan Yuntong Information Advisory Services Company 2,793 — — — Collecting costs to: Zhejiang Hongrui Investment Management Co., Ltd. 20,469 6,253 — — Zhejiang Ruituo Information Technology Co., Ltd. — 4,996 — — GPS costs to: Zhejiang Qunshuo Electronics Co., Ltd 25,290 — — — Total 260,026 162,853 73,008 10,485 General and administrative expenses: Consulting expenses to: Suzhou Weinxin Zhonghua Venture Capital Partnership (LLP) 20,000 — — — Welfare expenses to: Hangzhou Qiandaohuyaodage Trading Co., Ltd. 1,387 276 — — Total 21,387 276 — — Sales and marketing expenses: Promotion expenses to: Weiyi (Hangzhou) Internet Financial Information Service Co., Ltd 7,916 9,631 — — Trademark expenses to: Zhejiang Ruituo Information Technology Co., Ltd. 62 — — — Total 7,978 9,631 — — c) The Company had the following related party balances: Amounts due from related parties As of December 31, 2018 2019 RMB RMB US$ Zhejiang Zhongbo Finance Lease Co., Ltd. (i) 10,010 — — Hangzhou Ruituo Technology Co., Ltd. (ii) 7,081 7,036 1,011 Zhejiang Ruituo Non-financing Guarantee Co., Ltd. 2,679 385 PT PENDANAAN GOTONG ROYONG — 1,918 276 Others 2,014 12,419 1,783 Total 21,797 24,052 3,455 (i) The balance represents loans provided to Zhejiang Zhongbo Finance Lease Co., Ltd. ("Zhongbo") for the advances of certain type of loan product of the Company as of December 31, 2018. (ii) The balance mainly represents loans provided to Hangzhou Ruituo Technology Co., Ltd. and receivable from the disposal of vehicle collaterals for overdue loans as of December 31, 2018 and 2019. Amounts due to related parties As of December 31, 2018 2019 RMB RMB US$ Hangzhou Ruituo Technology Co., Ltd. (iii) 714 23,743 3,410 Key management and their immediate family members (iii) 7,626 3,831 550 Mr. Hong Yao (iii) 950 328 47 Zhejiang Zhongbo Finance Lease Co., Ltd. (iv) 9,471 — — Chunan Wangqi Financial Information Advisory Services Partnership (GP) 1,806 — — Chunan Wangzhi Financial Information Advisory Services Partnership (GP) 1,290 — — Chunan Wangqun Financial Information Advisory Services Partnership (GP) 1,110 — — Other related service center operation partners 4,833 74 11 Beijing Lezhihui Technology Co., Ltd. 275 275 40 Others 653 799 115 Total 28,728 29,050 4,173 (iii) The balance mainly represents investment balance due to related parties who are also investors on the platform. (iv) The balance represents account balance of Zhongbo on the platform which is borrowed from the Company and used for the advances of certain type of loan product of the Company. |
Share-based compensation
Share-based compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based compensation | |
Share-based compensation | 18. Share-based compensation Restricted shares On January 16, 2018, the Founder granted 131,000 restricted shares in aggregate for nil consideration to certain directors and executives. The restricted shares granted are immediately vested. The Company calculated the estimated fair value of the shares on the respective grant dates using the income approach with assistance from an independent valuation firm. The fair value of the granted shares was RMB134.42 per share as at the grant date. The share-based compensation of RMB17,610 in total was charged to the consolidated statement of comprehensive income for the year ended December 31, 2018. Stock appreciation rights On December 18, 2015, the Board of Directors of the Company approved the plan to issue stock appreciation rights (the “Weimi Share Plan”) for the purpose of providing incentives and rewards to employees and executives who contribute to the success of VIE’s operations. During the years ended December 31, 2017 and 2018, the Company issued a total of 2.72 % and 2.13% of the equity interest of the Company under the Weimi Share Plan. These stock appreciation rights have no exercise price and will be settled in cash at the amount of the fair value of the respective equity interest percentages of the Company on the exercise date over their fair value at the grant date. These stock appreciation rights are exercisable prior to the Company’s successful IPO and are classified as liability awards. Also, at the discretion of the Company, each grantee may receive a certain percentage of annual attributable net profit as annual dividend which is settled in cash. In addition, the grantee has the option to purchase the Company’s shares when the grantee’s accumulated stock appreciation rights granted exceed 0.1% of the Company’s total paid-in-capital (the purchase price will be determined by the Company at the time when such event occurs). These stock appreciation rights are subject to vesting of 33%, 33% and 34% on the second, third and fourth anniversary of the vest commencement date, respectively. The vested stock appreciation rights are exercisable within five years from the grant date. During the years ended December 31, 2017, 2018 and 2019, no dividend was declared to the grantee and none of the grantee’s accumulated stock appreciation rights granted exceeded 0.1% of the Company’s total paid-in-capital. On October 1, 2018, the Company modified the stock appreciation rights by replacing the cash-settlement feature with a net share settlement feature, which converts the award from a liability award to an equity award because the Company no longer has an obligation to transfer cash to settle the arrangement. All of the outstanding vested virtual share options were exchanged for restricted shares of the Company with no other terms or conditions changed. These restricted shares are held by one of the Company’s ordinary shareholders on behalf of the grantees, and are considered outstanding as the shareholder is entitled to dividends if declared. The Company compared the fair value of the instrument immediately before the modification to the fair value of the modified equity award, no incremental compensation cost was noted and recognized. The modified award would be accounted for as an equity award from the date of modification with a fair value of RMB216.43 per share. Therefore, at the modification date, the Company reclassified the liability of RMB106,465 recognized on September 30, 2018, as additional paid-in capital. In addition, the Company also will recognize the remaining compensation expenses over the remaining service requisite period using the accelerated method. The share-based compensation of RMB40,719, RMB88,961 and RMB26,858 (US$3,858) were charged to the consolidated statements of comprehensive income for the year ended December 31, 2017, 2018 and 2019. The Company calculated the estimated fair value of the stock appreciation rights on December 31, 2017 and September 30, 2018 using the Black-Scholes option pricing model with assistance from independent valuation firm. Assumptions used to determine the fair value of the virtual share options granted are summarized as follows: December 31, 2017 September 30, 2018 Fair value per ordinary share 134.42 148.37 Risk-free interest rate 4.35 % 4.35 % Dividend yield nil nil Expected volatility range 61.00 % 61.00 % Weighted average expected life (years) 2.92-3.75 2.17-3.75 The estimated fair value of the Company’s enterprise value, which was used in calculating the fair value per ordinary shares, as of December 31, 2017 and September 30, 2018 was determined with the assistance of an independent third party valuation firm using the Income Approach. The risk-free interest rate for periods within the contractual life of the options is based on the U.S. Treasury yield curve in effect at the time of grant for a term consistent with the contractual term of the awards. The dividend yield is estimated based on our expected dividend policy over the expected term of the options. Expected volatility is estimated based on the historical volatility ordinary shares of several comparable companies in the same industry. The weighted average expected life was estimated using simplified method for “plain-vanilla” options as the Company considers the options granted to have “plain-vanilla” characteristics. 2018 share incentive plan In August 2018, the Company’s board of directors approved 2018 share incentive plan, or the 2018 Plan. The maximum number of ordinary shares that may be issued under the 2018 Plan is 3,300,000 after giving effect to the 50 for 1 share split effected by the Company in September 2018. The 2018 Plan permits the awards of options, restricted shares, restricted share units or any other type of awards that the board of directors or the chairman of the board of directors (the plan administrator) decides, to directors, officers, employees and consultants of the company or any of the Company’s subsidiaries. Unless terminated earlier, the 2018 Plan has a term of ten years. The terms and conditions of the awards, including vesting schedule and the exercise price for each award, will be determined by the plan administrator, and will be stipulated in the award agreement. As of December 31, 2019, the Company has granted 1,972,951 share awards under the 2018 Plan, including 1,901,561 options and 71,390 restricted share units. As of December 31, 2019, nil of option and 14,278 restricted share units were exercised, respectively. The Company calculated the estimated fair value of the stock options on each grant date during the year ended December 31, 2019, using the Black-Scholes option pricing model with the assistance of an independent third party valuation firm. Assumptions used to determine the fair value of the virtual share options granted are summarized as follows: Each grant date during the year ended December 31, 2019 Fair value per ordinary share The closing stock price at the grant date Risk-free interest rate Dividend yield nil Expected volatility range Weighted average expected life (years) 5.25-6.17 The risk-free interest rate for periods within the contractual life of the stock options is based on the U.S. Treasury yield curve in effect at the time of grant for a term consistent with the contractual term of the awards. The dividend yield is estimated based on our expected dividend policy over the expected term of the stock options. Expected volatility is estimated based on the historical volatility ordinary shares of several comparable companies in the same industry. The weighted average expected life was estimated using simplified method for “plain-vanilla” stock options as the Company considers the stock options granted to have “plain-vanilla” characteristics. Restricted shares activities The following table summarizes the Company’s Restricted Shares activity: Number of shares Weighted average grant-date fair value Outstanding, December 31, 2017 — — Granted 131,000 134.42 Vested (131,000) 134.42 Converted from stock appreciation rights 1,349,367 216.43 Forfeited — — Outstanding, December 31, 2018 1,349,367 216.43 Granted 71,390 64.47 Vested — — Converted from stock appreciation rights — — Forfeited (465,604) 133.53 Outstanding, December 31, 2019 955,153 245.48 The weighted average grant-date fair value of Restricted Shares granted during the year ended December 31, 2019 was RMB245.48 per share, which was derived from the fair value of the underlying ordinary shares. As of December 31, 2019, there was RMB 40,445 (US$5,810) of total unrecognized employee share-based compensation expenses related to unvested Restricted Shares expected to vest which are expected to be recognized over a weighted-average period of 0.8 years. Total unrecognized compensation cost may be adjusted for actual forfeitures occurring in the future. Share-based compensation expenses For the years ended December 31, 2017, 2018 and 2019, the Company allocated share-based compensation expenses as follows: Year ended December 31, 2017 2018 2019 RMB RMB RMB US$ Origination and servicing — 46,687 21,279 3,056 General and administrative 35,223 45,104 35,162 5,051 Research and development 5,496 14,780 8,355 1,200 Total 40,719 106,571 64,796 9,307 |
Accumulated other comprehensive
Accumulated other comprehensive loss | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated other comprehensive loss | |
Accumulated other comprehensive loss | 19. Accumulated other comprehensive loss RMB Balance as of December 31, 2017 — Foreign currency transaction adjustments (2,700) Balance as of December 31, 2018 (2,700) Foreign currency transaction adjustments 190 Balance as of December 31, 2019 (2,510) Balance as of December 31, 2019 (US$) (361) There has been no reclassification out of accumulated other comprehensive loss to net loss for all the years presented. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and contingencies | |
Commitments and contingencies | 20. Commitments and contingencies Operating lease commitments The Company leases certain office premises under non-cancelable leases. Rental expenses under operating leases for the years ended December 31, 2017, 2018 and 2019 were RMB107,911, RMB131,808 and RMB105,038 (US$15,088), respectively. Future minimum lease payments under non-cancelable operating leases agreements consist of the following as of December 31, 2019: RMB US$ 2020 59,420 8,534 2021 19,978 2,870 2022 4,746 682 2023 272 39 2024 and thereafter 354 51 Total 84,770 12,176 Capital and other commitments Future minimum capital commitments, mainly representing renovating expense under non-cancellable agreements, consist of the following as of December 31, 2019: RMB US$ 2020 13,900 1,997 2021 11,700 1,681 2022 and thereafter 1,600 229 Total 27,200 3,907 |
Preferred shares
Preferred shares | 12 Months Ended |
Dec. 31, 2019 | |
Preferred shares | |
Preferred shares | 21. Preferred shares On September 6, 2015, the Company issued 9,146,250 Series A preferred shares to Hangzhou Handing Yuyou Share Investment Partnership (LLP) at a per share purchase price of RMB1.00 for a total cash consideration of RMB18,293. On October 15, 2015, the Company issued 1,829,250 Series A+ preferred shares to Zhejiang Zheshang Lihai Venture Capital Partnership (LLP) and Hangzhou Lihai Hulian Venture Capital Partnership (LLP) for a total cash consideration of RMB3,658. On March 16, 2016, 3,048,800 ordinary shares which were originally issued for a total cash consideration of RMB6,098 were transferred to Zhejiang Handing Yuyou Financial Service Co., Ltd. and redesignated as Series B preferred shares. On October 24, 2016, the Company issued a total of 3,074,400 Series C redeemable convertible preferred shares to Hefei Zhongan Runxin Fund Investment Partnership (LLP), Suzhou Weixin Zhonghua Investment Partnership (LLP) and Wenjing Yisheng Investment Co.,Ltd. for a total cash consideration of RMB240,000. The Series A, A+, B and C preferred shares issued by the Company are collectively referred to as the “Preferred Shares”. The key terms of the Preferred Shares are summarized below: Dividends No dividends may be declared or paid on the ordinary shares or any future series of preferred shares, unless and until a dividend in like amount is declared and paid on each outstanding preferred share on an as-if converted basis. The holders of preferred shares is entitled to receive on a pari passu basis, when as and if declared at the sole discretion of the Board, but only out of funds that are legally available therefor, cash dividends at the rate or in the amount as the Board considers appropriate. For the year ended December 31, 2017, dividends of RMB8,604 have been declared for the Preferred Shares. For the years ended December 31, 2018 and 2019, no dividend was declared for the Preferred Shares. Voting Rights Each preferred shareholder is entitled to the number of votes equal to the number of ordinary shares into which such holder’s preferred shares could be converted. Unless otherwise disclosed elsewhere, preferred shareholders will vote together with ordinary shareholders, and not as a separate class or series, on all matters put before the shareholders. Redemption The Series A, A+ and B preferred shares are not entitled to any redemption rights. The Series C redeemable convertible preferred shares become redeemable at the holders’ option if the following event is triggered: (i) the Company fails to complete a qualified IPO before a specified date; (ii) the Company fails to be acquired by an listed company with a price or valuation exceeding predetermined valuation amount; (iii) the occurrence of a material breach of the Transaction Documents by any of the Founder or the Company, (iv) the Company fails to meet certain performance target in the each year of 2015, 2016 and 2017; (v) the Company fails to follow the custody requirement as discussed in the investment agreement or misuses the proceeds. In the event that the Series C preferred shares are redeemable, the holders of Series C preferred shares can request the founder to purchase or redeem all or portion of its shares subscribed, or request the founder or the Company to redeem all or portion of its shares subscribed by deregistering the share capital at the following redemption price, which is the greater of: (i) 100% of Series C preferred shares original issuance price, together with a 15% annual simple return plus all declared but unpaid dividends, and minus all dividends that have been paid on such shares; (ii) Series C preferred shares original issuance price x (150%)N; (iii) Series C shareholders’ portion of the net assets of the VIE (as indicated in the audited financial statements ending on the last month immediately prior to the above redeemable trigger event). N = a fraction, the numerator of which is the number of calendar days between the date the holder of the preferred share acquired the preferred share and the date on which such preferred share is redeemed and the denominator of which is 365. On March 23, 2018, the terms of Series C preferred shares were amended such that upon certain redemption trigger events, the Series C preferred shares will be redeemable by the founder and will no longer be redeemable by the Company. The Series C preferred shares continued to be classified as mezzanine equity subsequent to the modification due to its deemed liquidation rights. However, the previously recorded accretion charge to the redemption value of Series C preferred shares of RMB 120,000 was reversed during the year ended December 31, 2018 due to the amendments to the contingent redemption provisions. The amendment is accounted for as a modification as the fair value of Series C preferred share immediately after the amendment is decreased, but not significantly different from its fair value immediately before the amendment. Modifications that result in a decrease in the fair value are not recognized. Liquidation Preference The holders of Series A, A+ and B preferred shares are not entitled to any liquidation preference upon the initial issuance and are subsequently modified to be entitled to liquidation preference upon the issuance of Series C preferred shares on September 9, 2016. In the event of liquidation, dissolution or winding up of the Company or any deemed liquidation event as defined in the preferred shares agreements, the assets of the Company available for distribution will be made as follows: The holders of Series C preferred shares are entitled to receive an amount equal to the greater of (a) original issuance price together with an annual simple return rate of fifteen percent (15%) plus all declared but unpaid dividends and distributions, (b) original issuance price x (150%)N, and (c) the holder of Series C preferred shares’ portion of net assets of the Company, in preference to all other classes or series of Preferred Shares and the ordinary shareholders of the Company. N = a fraction, the numerator of which is the number of calendar days between the date the holder of the preferred share acquired the preferred share and the date on which such preferred share is redeemed and the denominator of which is 365. After distribution or payment in full to the holders of Series C preferred shares, the holders of Series A, A+ and B shares are entitled to receive, on a pari passu basis, for each outstanding share held, an amount equal to each share’s original issuance price plus all declared but unpaid dividends and distributions, in preference to any distribution to the ordinary shareholders of the Company. After payment has been made to the holders of the Preferred Shares in accordance with the above, the remaining assets of the Company available for distribution to shareholders shall be distributed ratably among the holders of ordinary shares and Preferred Shares based on the number of ordinary shares into which such Preferred Shares are convertible. The liquidation preference amount for Series A, A+, B and C preferred shares was RMB18,293, RMB3,658, RMB6,098 and RMB360,000, respectively, as of December 31, 2017. On April 10, 2018, holders of Series A are further modified to be not entitled to liquidation preference. After payment has been made to the holders of Series A+, B and C preferred shares in accordance with the liquidation preference amount mentioned above, the remaining asset of the Company available for distribution to shareholders shall be distributed ratably among the holders of ordinary shares and the Preferred Shares (including Series A preferred shares) based on the number of ordinary shares into which such Preferred Shares are convertible. Conversion rights The Series A, A+ and B preferred shares are not entitled to any conversion rights at their initial issuance. The holders of Series C preferred shares have the rights, at each holder’s discretion, to convert at any time and from time to time, all or any portion of the Series C preferred shares into ordinary shares. The initial conversion ratio shall be on a one for one basis, subject to certain anti-dilution adjustments. Starting April 10, 2018, the holders of the Series A, A+ and B preferred shares are given the rights, at each holder’s discretion, to convert at any time and from time to time, all or any portion of the Series A, A+ and B preferred shares into ordinary share, at the initial conversion ratio on a one for one basis, subject to certain general anti-dilution adjustments. In addition, all the Preferred Shares are automatically converted into ordinary shares on the then-effective conversion price applicable to such Preferred Shares upon the earlier of (i) election in writing by the holders of at least a majority of the then issued and outstanding Preferred Shares with respect to the conversion of the respective class; or (ii) the closing of an initial public offering. Upon completion of the IPO on November 19, 2018, each convertible preferred share automatically converted into Class A ordinary share. 17,098,700 Class A ordinary shares were issued upon conversion of all outstanding convertible preferred shares. Accounting for Preferred Shares Series A, A+ and B preferred shares The Series A, A+ and B preferred shares are initially classified as permanent equity and measured at fair value as they are not redeemable. On September 9, 2016, when Series C preferred shares are issued, Series A, A+ and B preferred shareholders are entitled to the liquidation preference upon deemed liquidation events as mentioned above. The Company concluded that the amendment is accounted for as a modification as the fair value of each related series of preferred share immediately after the amendment is not significantly different from its fair value immediately before the amendment. and an RMB861 was recorded as deemed dividend to the preferred shareholders for the year ended December 31, 2016. Upon the modification, Series A, A+ and B preferred shares are classified as mezzanine equity as they may be redeemed at the option of the holders upon a deemed liquidation event. Series C preferred shares The Series C preferred shares are classified as mezzanine equity as they may be redeemed at the option of the holders on or after an agreed upon date outside the sole control of the Company or upon a deemed liquidation event. The Series C preferred shares are initially measured at fair value. The holders of the Series C preferred shares have the ability to convert the instrument into the Company’s ordinary shares. The Company evaluated the embedded conversion option in the Series C preferred shares to determine if there were any embedded derivatives requiring bifurcation and to determine if there were any beneficial conversion features. There were no embedded derivatives that are required to be bifurcated. The conversion option of the Series C preferred shares is not bifurcated because the conversion option is clearly and closely related to the host equity instrument. The contingent redemption options of the Series C preferred shares are not bifurcated because the underlying ordinary shares are not settable since they were neither publicly traded nor readily convertible into cash. Beneficial conversion features (“BCF”) exist when the conversion price of the Preferred Shares is lower than the fair value of the ordinary shares at the commitment date, which is the issuance date of the respective series of Preferred Shares. When a BCF exists as of the commitment date, its intrinsic value is bifurcated from the carrying value of the Preferred Shares as a contribution to additional paid-in capital. On the commitment date of the Series C preferred shares, the most favorable conversion price used to measure the beneficial conversion feature was RMB79.12. No beneficial conversion feature was recognized for the Series C preferred shares as the fair value per ordinary share at the commitment date were RMB73.80, which was less than the most favorable conversion price. The Company determined the fair value of ordinary shares with the assistance of an independent third party valuation firm. The contingent conversion price adjustment is accounted for as a contingent BCF. In accordance with ASC paragraph 470‑20‑35‑1, changes to the conversion terms that would be triggered by future events not controlled by the issuer should be accounted as contingent conversions, and the intrinsic value of such conversion options would not be recognized until and unless a triggering event occurred. No contingent BCF was recognized for any of the Preferred Shares for the years ended December 31, 2016 and 2017. The Company concluded that the Series C preferred shares are not currently redeemable, but it is probable that they will become redeemable. The Company chose to recognize changes in the redemption value immediately as they occur and adjusted the carrying value of the Series C preferred shares to equal the redemption value at the end of each reporting period. The Series A, A+ and B preferred shares amendments are accounted for as modifications as the fair values of Series A, A+, and B preferred shares immediately after the amendment are not significantly different from their respective fair values immediately before the amendment. The Series A preferred shares fair value decreased subsequent to the amendment and are not recognized. The incremental fair values of Series A+ and B preferred shares as a result of the modification are immaterial. The movement in the carrying value of the Preferred Shares is as follows: Series A Series A+ Series B Series C Total RMB RMB RMB RMB RMB Balance as of December 31, 2016 18,856 3,771 6,283 360,000 388,910 Dividends declared 4,602 920 1,534 1,548 8,604 Dividends paid (4,602) (920) (1,534) (1,548) (8,604) Balance as of December 31, 2017 18,856 3,771 6,283 360,000 388,910 Reversal of accretion on Series C preferred shares — — — (120,000) (120,000) Conversion of preferred shares to Class A ordinary shares (18,856) (3,771) (6,283) (240,000) (268,910) Balance as of December 31, 2018 and 2019 — — — — — Balance as of December 31, 2018 and 2019 (US$) — — — — — |
Business combination
Business combination | 12 Months Ended |
Dec. 31, 2019 | |
Business combination | |
Business combination | 22. Business combination On May 24, 2018, the Company acquired a 70% equity interest in Hangzhou Jiujiu Financial Information Services Limited for the expansion into the finance information service market for a total consideration of RMB4,500. The acquisition was accounted for as a business combination. Goodwill representing the expected synergies from the acquisition of RMB3,067 was recognized which is not tax deductible. On June 6, 2018, the Company acquired 100% equity interest in Rymo Technology Industry Limited which is engaged in the provision of collateral registration services through its wholly owned subsidiary, Shanghai Zaohui Finance Lease Co., Ltd., for nil consideration. The acquisition was accounted for as a business combination. Goodwill representing the expected synergies from the acquisition of RMB2,745 was recognized which is not tax deductible. The results of the purchase price allocation for these acquisitions are based on valuation determined by the Company with the assistance of an independent third party valuation firm. The purchase price allocations and the actual results of operations after the acquisition date have not been presented because the effects of these acquisitions were insignificant, either individually or in aggregate. The changes in carrying amount of goodwill for each reporting unit from December 31, 2017 to December 31, 2019 were as follow: RMB Balance at December 31, 2017 — Goodwill acquired 5,812 Goodwill disposed — Balance at December 31, 2018 5,812 Goodwill acquired — Goodwill disposed — Balance at December 31, 2019 5,812 Balance at December 31, 2019 (US$) 835 No impairment losses were recognized for the years ended December 31, 2017, 2018 and 2019. |
Restricted net assets
Restricted net assets | 12 Months Ended |
Dec. 31, 2019 | |
Restricted net assets | |
Restricted net assets | 23. 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 VIE and subsidiaries of the VIE 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, VIE and the subsidiaries of the VIE 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. Appropriations to the enterprise expansion fund and staff welfare and bonus fund are at the discretion of the Board of Directors of the subsidiary. The PRC entities are also subject to similar statutory reserve requirements. These reserves can only be used for specific purposes and are not transferable to the Company in the form of loans, advances or cash dividends. Amounts restricted that include paid-in capital and statutory reserve funds, as determined pursuant to PRC GAAP, were RMB246,236 and RMB263,182 (US$37,804) as of December 31, 2018 and 2019, respectively. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent events | |
Subsequent events | 24. Subsequent events Change of Business Operations The Company used to attract funds from online investors, however, in response to the increasingly stringent regulatory environment and deteriorating macro-economy, the Company has ceased to offer new investment products to online investors since February 2020. The Company has informed all online investors on the platforms and will repay principals to existing online investors when the loans they fund through previous Investment Programs are due. The Company plan to use institutional funding partners as the primary funding source and will also facilitate loans through the Company’s micro credit company. Investors of existing Investment Programs now directly fund the underlying loans they used to invest in through Investment Programs and will receive repayment of principle when the respective underlying loans become due. In April 2020, in an effort to reinforce investor confidence and accelerate their investment return, the Company entered into collaboration agreements with certain companies providing asset management services, pursuant to which the online investors have the option to transfer their rights to loans on platform to third-party companies and receive repayment of principals and interests in 18 months. The Company facilitates this arrangement by providing financial guarantees to the online investors who opt to participate in the arrangement. The Company has informed all online investors on the platforms of these changes in the business. For all online investors who do not opt for the asset management arrangement as of June 9, 2020, the Company may offer supplement arrangement for repayment. On May 31, 2020, the Company released an announcement and plan that the Company will exit online lending information intermediary industry and cease to provide online lending information intermediary service before June 30, 2020. The Company is still evaluating the financial effect of the business change. Impact of COVID-19 The recent outbreak of a novel strain of coronavirus, now named as COVID-19, has spread rapidly to many parts of the world. The epidemic has resulted in quarantines, travel restrictions, and the temporary closure of stores and facilities in China and many other countries for the past few months. In March 2020, the World Health Organization declared the COVID-19 a pandemic. In response to this pandemic since December 2019, China and many other countries and jurisdictions have taken, and may adopt additional, restrictive measures to contain the virus’ spread, such as quarantines, travel restrictions and home office policies. These measures could slow down the development of the Chinese economy and adversely affect the global economic conditions and financial markets. Substantially all of the Company’s operations are located in China and all of the revenue is sourced from China. Since the outbreak of COVID-19, the Company’s business and operation have been adversely affected. The collection activities are significantly limited due to various temporary measures. Moreover, most of the borrowers are small and micro enterprise owners, who are vulnerable in face of economic depression. If their financial situation deteriorate, it may be difficult for them to repay loans on the platform. In addition, the Company’s business operations could be disrupted if any of employees is suspected of contacting the COVID-19 or any other epidemic disease, since the Company’s employees could be quarantined and/or the Company’s offices be shut down for disinfection. The COVID-19 has caused wide-ranging business disruptions and traffic declines in China in the first quarter of 2020, and with its growing spread globally, the virus’ adverse impact on business activities and travels is expected to continue in the foreseeable future. The extent to which the COVID-19 impacts the Company’s results remains uncertain, and the Company is closely monitoring its impact. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies | |
Basis of presentation | Basis of presentation The consolidated financial statements of the company have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, VIEs and VIEs’ subsidiaries for which the Company is the primary beneficiary. All significant inter-company balances and transactions between the Company, its subsidiaries, VIEs and VIEs’ subsidiaries are eliminated upon consolidation. |
Use of estimates | Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant accounting estimates reflected in the Company’s consolidated financial statements include, but are not limited to, revenue recognition, allowance for loans and advances, financial assets receivable and guarantee liabilities, useful life of long-lived assets, share-based compensation, valuation allowance for deferred tax assets, uncertain tax positions, short-term and long-term investments, and the purchase price allocation with respect to business combinations and impairment of goodwill. Management bases these estimates on its historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from these estimates. |
Foreign currency translation and transactions | Foreign currency translation and transactions The Company uses Renminbi (“RMB”) as its reporting currency. The functional currencies of the Company’s entities incorporated in Cayman Islands and Hong Kong are US$. The functional currencies of the Company’s PRC subsidiary, VIE and VIE’s subsidiaries are the RMB. The determination of the respective functional currency is based on the criteria stated in ASC 830, Foreign Currency Matters. The financial statements of the Company and Weidai HK are translated from the functional currency to the reporting currency, RMB. Monetary assets and liabilities of the subsidiaries are translated into RMB using the exchange rate in effect at each balance sheet date. Income and expenses items are translated at the average exchange rate prevailing during the fiscal year. Translation gains and losses are accumulated in other comprehensive income, as a component of shareholders’ equity on the consolidated financial statements. Transactions denominated in other than the functional currencies are remeasured into the functional currency of the entity at the exchange rates prevailing on the transaction dates. Financial assets and liabilities denominated in other than the functional currency are re-measured into the functional currency at the exchange rates prevailing at the balance sheet date. The foreign exchange differences are recorded in the consolidated statements of comprehensive income. |
Convenience translation | Convenience translation Translations of amounts from RMB into US$ for the convenience of the readers have been calculated at the exchange rate of RMB6.9618 per US$1.00 on December 31, 2019, the last business day in fiscal year 2019, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be converted, realized or settled into US$ at such rate or at any other rate. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents primarily consist of cash and bank deposits, which are unrestricted as to withdrawal and use. The Company considers all highly liquid investments that are readily convertible to known amounts of cash and with original maturities from the date of purchase of three months or less to be cash equivalents. |
Restricted cash | Restricted cash The Company’s restricted cash mainly represents (i) cash received but has not yet been disbursed, including idle funds due to investors whom recharge to the accounts on the platform but have not yet invested or fully funded the loans and funds due to borrowers that investors lend to borrowers but borrowers have not yet withdrawn. Such funds were processed through a designated bank account. As of December 31, 2018, and 2019, the restricted cash related to cash not yet disbursed amounted to RMB1,583,178 and RMB1,020,151 (US$146,535), respectively; and (ii) cash held by banks as guarantee deposits paid on contracts and other restrictions amounted to RMB56,127 and RMB120,668 (US$17,333) as of December 31, 2018 and 2019, respectively. |
Short-term investments | Short-term investments Short term investments consist of held-to-maturity investments and available-for-sale investments. Investments classified as held-to-maturity investments are stated at amortized cost. Investments classified as available-for-sale investments are carried at their fair values and the unrealized gains or losses from the changes in fair values are reported net of tax in accumulated other comprehensive income until realized. The Company’s available-for-sale debt securities consist of financial products with maturities of less than one year purchased from commercial banks. The Company reviews its investments for other-than-temporary impairment (“OTTI”) based on the specific identification method. The Company considers available quantitative and qualitative evidence in evaluating potential impairment of its investments. If the cost of an investment exceeds the investment’s fair value, the Company considers, among other factors, general market conditions, expected future performance of the investees, the duration and the extent to which the fair value of the investment is less than the cost, and the Company’s intent and ability to hold the investment. OTTI is recognized as a loss in the income statement. |
Loans and advances, net | Loans and advances, net Loans and advances represent payments due from borrowers. Loans and advances are recorded at amortized cost (i.e. unpaid principal and deferred origination costs), net of allowance for loans and advances. Deferred origination costs are netted against net financing income and amortized over the financing term using the effective interest method. The Company does not accrue interest income on loan principals that are considered impaired or past due. A corresponding allowance is determined under ASC 450‑20 and allocated accordingly. After an impaired loan has been placed on nonaccrual status, interest receivable will be recognized when cash is received by applying first to reduce loan principal and then to interest income thereafter. Interest income accrued but not received is generally reversed against interest income. Interest receivables may be returned to accrual status after all of the borrower’s delinquent balances of loan principal and interest have been settled and the borrower remains current for an appropriate period. Allowance for loans and advances The Company segregates the loans into secured and unsecured, and then into various portfolios, i.e. automobile and home equity, etc. and applies its credit risk management framework to the various portfolio of loans in accordance with ASC 450‑20, Loss Contingencies. The allowance for loans and advances losses is calculated based on the Company’s historical loss experience using a roll rate-based model. The roll rate-based model stratifies the loan principal and interest receivables by delinquency stages (i.e., current, 1‑30 days past due, and 31‑60 days past due etc.) and projected forward in one-month increments using historical roll rates. In each month of the simulation, losses on the loans and advances types are captured, and the ending delinquency stratification serves as the beginning point of the next iteration. This process is repeated on a monthly rolling basis. The loss rate calculated for each delinquency stage is then applied to the respective loans and advances balance. The Company adjusts the allowance that is determined by the roll rate-based model for various Chinese macroeconomic factors i.e. gross-domestic product rates, per capita disposable income, interest rates and consumer price indexes. Each of these macroeconomic factors are equally weighted, and a score is applied to each factor based on year-on-year increases and decreases in that respective factor. Loans are charged off when a settlement is reached for an amount that is less than the outstanding balance or when the Company has determined the balance is uncollectable. In general, unsecured loans are charged off when outstanding loans are 180 days past due. Secured loans may be charged off upon the death of the borrower, significant damage to the collateral, and when the Company considers the balance to be uncollectable. Acquired non-performing loans The Company records acquired non-performing loans in accordance with ASC310‑30, Loan and Debt Securities with Deteriorated Credit Quality, when it voluntarily purchases a delinquent loan. Such acquired non-performing loans are expected to be recovered either through the sale of the loan collateral upon foreclosure or from the subsequent payments made by the borrowers and are initially recorded at their purchase price. As the cash flows expected to be collected cannot be estimated because the timing of the collection and the condition of the collateral are indeterminable, the acquired non-performing loans are placed on non-accrual status and impairment is measured based on the fair value of the collateral less the estimated selling costs. The Company derecognizes the acquired non-performing loan when the non-performing loan is settled through foreclosure or repayment by the borrower. Any difference between the proceeds from sale of the collateral or subsequent payments made by the borrowers, and the acquired non-performing loan balance is recognized in other revenues in the consolidated statements of comprehensive income. Borrowings For certain transactions with the borrowers, the Company may provide a loan to borrowers and then transfers the loan to investors at varying rates and tenures. Although the loan is transferred to the investors, the loan principal is not derecognized upon transfer, as the transaction does not represent a transfer of an entire financial asset or a participating interest and the loan is not legally isolated from the Company. Additionally, the terms of the transfer require the Company to guarantee the principal and interest in case of default by the borrowers. As a result, the arrangement is accounted for as a secured borrowing in accordance with ASC 860, Transfers and Servicing . The loan remains on the Company’s consolidated balance sheets and the funds received from the investors are recorded as payable to institutional funding partners and online investors in the Company’s consolidated balance sheets. Borrowings are initially recognized at fair value which is the cash received from investors, and measured subsequently at amortized cost using the effective interest method. |
Guarantee liabilities | Guarantee liabilities The Company provides guarantee to various institutional funding partners and online investors. The guarantee requires the Company to either make delinquent installment repayments or purchase the loans after a specified period on an individual loan basis. The guarantee liability is exempted from being accounted for as a derivative in accordance with ASC 815-10-15-58. The guarantee liability consists of two components. The Company’s obligation to stand ready to make delinquent payments or to purchase the loan over the term of the arrangement (the non-contingent aspect) is accounted for in accordance with ASC 460, Guarantees (“ASC 460”). The contingent obligation relating to the contingent loss arising from the arrangement is accounted for in accordance with ASC 450, Contingencies (“ASC 450”). At inception, the Company recognizes the non-contingent aspect of the guarantee liability at fair value, which considers the premium required by a third party market participant to issue the same risk assurance in a standalone transaction. Subsequent to the initial recognition, the non-contingent aspect of the risk assurance liability is reduced over the term of the arrangement as the Company is released from its stand ready obligation on a loan-by-loan basis based on the borrower’s repayment of the loan principal. The contingent loss arising from the obligation to make future payments is recognized when borrower default is probable and the amount of loss is estimable. The Company considers the underlying risk profile including delinquency status, overdue period, and historical loss experience when assessing the probability of contingent loss. Borrowers are grouped based on common risk characteristics, such as product type. The Company measured contingent loss based on the future payout of the arrangement estimated using the historical default rates of a portfolio of similar loans less the fair value of the recoverable collateral. The amount of provision for financial guarantee liabilities was nil, RMB21,712 and RMB19,206 (US$2,759) for the years ended December 31, 2017, 2018 and 2019. The maximum potential undiscounted future payment which the Company would be required to make under its guarantee obligation is RMB2,938,661 and RMB3,030,654 (US$435,326) as of December 31, 2018 and 2019, respectively. |
Long-term Investments | Long-term Investments The Company’s long-term investments consist of cost method investments. In accordance with ASC subtopic 325‑20 (“ASC 325‑20”), Investments-Other: Cost Method Investments , for investments in an investee over which the Company does not have control or significant influence and for which there is no readily determinable fair value, the Company carries the investment at cost and only adjusts for other-than-temporary declines in fair value and distributions of earnings that exceed the Company’s share of earnings since its investment. The Company regularly evaluates the impairment of the investment based on the performance and the financial position of the investee as well as other evidence of market value. Such evaluation includes, but is not limited to, reviewing the investee’s cash position, recent financing, projected and historical financial performance, cash flow forecasts and financing needs. An impairment loss recognized in earnings is equal to the excess of the investment’s cost over its fair value at the balance sheet date of the reporting period for which the assessment is made. The fair value would then become the new cost basis of investment. No impairment loss on the cost method investments was recognized for the years ended December 31, 2017, 2018 and 2019. |
Business combinations | Business combinations The Company accounts for its business combinations using the purchase method of accounting in accordance with ASC 805, Business Combinations (“ASC 805”). The purchase method of accounting requires that the consideration transferred to be allocated to the assets, including separately identifiable assets and liabilities the Company acquired, based on their estimated fair values. The consideration transferred in an acquisition is measured as the aggregate of the fair values at the date of exchange of the assets given, liabilities incurred, and equity instruments issued as well as the contingent considerations and all contractual contingencies as of the acquisition date. The costs directly attributable to the acquisition are expensed as incurred. Identifiable assets, liabilities and contingent liabilities acquired or assumed are measured separately at their fair value as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of (i) the total of cost of acquisition, fair value of the non-controlling interests and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree, is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in earnings. The Company early adopted ASU No. 2017‑01, Business Combinations (Topic 802): Clarifying the Definition of a Business , in determining whether it has acquired a business. The determination and allocation of fair values to the identifiable assets acquired, liabilities assumed and non-controlling interests is based on various assumptions and valuation methodologies requiring considerable judgment from management. The most significant variables in these valuations are discount rates, terminal values, the number of years on which to base the cash flow projections, as well as the assumptions and estimates used to determine the cash inflows and outflows. The Company determines discount rates to be used based on the risk inherent in the related activity’s current business model and industry comparisons. Terminal values are based on the expected life of assets, forecasted life cycle and forecasted cash flows over that period. |
Goodwill | Goodwill The Company assesses goodwill for impairment in accordance with ASC 350‑20, Intangibles — Goodwill and Other: Goodwill (“ASC 350‑20”), which requires that goodwill be tested for impairment at the reporting unit level at least annually and more frequently upon the occurrence of certain events, as defined by ASC 350‑20. The Company has determined that it has one reporting unit. The Company has the option to assess qualitative factors first to determine whether it is necessary to perform the quantitative impairment test in accordance with ASC 350‑20. If the Company believes, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount, the quantitative impairment test is required. Otherwise, no further testing is required. In the qualitative assessment, the Company considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. The Company early adopted ASU No. 2017-04, Simplifying the Test for Goodwill Impairment, which simplifies the accounting for goodwill impairment by eliminating Step two from the goodwill quantitative impairment test. Under the new guidance, if a reporting unit’s carrying amount exceeds its fair value, an entity will record an impairment charge based on that difference. The impairment charge will be limited to the amount of goodwill allocated to that reporting unit. Fair value is primarily determined by computing the future discounted cash flows expected to be generated by the reporting unit. |
Fair value measurements of financial instruments | Fair value measurements of financial instruments Financial instruments of the Company primarily consist of cash and cash equivalents, restricted cash, available-for-sale debt securities, long-term time deposits, amounts due from and due to related parties, loans and advances, cost method investments, short-term borrowings, payable to institutional funding partners and online investors and current account with online investors and borrowers. The carrying amounts of these financial instruments, except for long-term time deposit, long-term loans and advances, cost method investments and long-term payable to institutional funding partners and online investors approximate their fair values because of their generally short maturities. The Company applies ASC topic 820 (“ASC 820”), Fair Value Measurements and Disclosures , in measuring fair value. ASC 820 defines fair value, establishes a framework for measuring fair value and requires disclosures to be provided on fair value measurement. ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: · Level 1 - Observable inputs that reflect quoted prices in active markets for identical assets or liabilities. · Level 2 - Include other inputs that are directly or indirectly observable in the marketplace. · Level 3 - Unobservable inputs which are supported by little or no market activity. ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach; and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. In accordance with ASC 820, the Company measures available-for-sale investments at fair value on a recurring basis. The fair value of the Company’s available-for-sale debt securities are measured using the income approach, based on quoted market interest rates of similar instruments and other significant inputs derived from or corroborated by observable market data. The fair value of time deposits is determined based on the prevailing interest rates in the market. The fair values of the Company’s long-term loans and advances and long-term payable to institutional funding partners as disclosed are determined based on the discounted cash flow model using the discount curve of market interest rates. The Company did not disclose the fair value of its cost method investments since the fair value cannot be determined without undue cost and effort. Fair value measurement or disclosure at December 31, 2018 using Significant Quoted prices in other Significant active markets for observable unobservable Total fair value at identical assets inputs inputs December 31, 2018 (Level 1) (Level 2) (Level 3) RMB RMB RMB RMB Fair value disclosure Loans and advances, net – non-current 421,564 — 421,564 — Long-term payable to institutional funding partners and online investors 419,039 — 419,039 — Fair value measurements Recurring Recurring short-term investments Available-for-sale debt securities 4,100 — 4,100 — Fair value measurement or disclosure at December 31, 2019 using Quoted prices in Significant Significant active markets for other unobservable Total fair value at identical assets observable inputs December 31, 2019 (Level 1) inputs (Level 2) (Level 3) RMB US$ RMB RMB RMB Fair value disclosure Loans and advances, net – non-current 49,643 7,131 — 49,643 — Long-term payable to institutional funding partners and online investors 49,866 7,163 — 49,866 — Fair value measurements Recurring Recurring short-term investments Available-for-sale debt securities — — — — — The Company had no financial assets and liabilities measured and recorded at fair value on a non-recurring basis as of December 31, 2018 and 2019. |
Property, equipment and software, net | Property, equipment and software, net Property, equipment and software are stated at cost less accumulated depreciation and amortization using the straight-line method with the residual value over the estimated useful lives of the assets, as follows: Estimated Estimated Category: Useful Life Residual Value Computer and electronic equipment 3~5 years 5 % Office furniture and equipment 3~5 years 5 % Vehicles 3~4 years 5 % Software 3~10 years 0 % Leasehold improvement Lessor of useful life or lease term 0 % Costs associated with the repair and maintenance of property and equipment are expensed as incurred. |
Impairment of long-lived assets | Impairment of long-lived assets The Company evaluates its long-lived assets or asset group, including intangible assets with finite lives, for impairment whenever events or changes in circumstances indicate that the carrying value of an asset or a group of long-lived assets may not be recoverable. When these events occur, the Company evaluates for impairment by comparing 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 based on the excess of carrying value of the asset over its fair value. No impairment loss was recognized for the years ended December 31, 2017, 2018 and 2019. |
Research and development expenses | Research and development expenses Research and development expenses are primarily incurred in the development of new services, new features and general improvement of the Company’s technology infrastructure to support its business operations. Research and development costs are expensed as incurred unless such costs qualify for capitalization as software development costs. In order to qualify for capitalization, (i) the preliminary project should be completed, (ii) management has committed to funding the project and it is probable that the project will be completed and the software will be used to perform the function intended, and (iii) it will result in significant additional functionality in the Company’s services. No research and development costs were capitalized during the years ended December 31, 2017, 2018 and 2019. The Company recognized research and development expenses amounted to RMB100,966, RMB139,318 and RMB81,664 (US$11,730) for the years ended December 31, 2017, 2018 and 2019, respectively. |
Government subsidies | Government subsidies Government subsidies primarily consist of financial subsidies received from provincial and local governments for operating a business in their jurisdictions and compliance with specific policies promoted by the local governments. There are no defined rules and regulations to govern the criteria necessary for companies to receive such benefits, and the amount of financial subsidy is determined at the discretion of the relevant government authorities. The government subsidies of non-operating nature with no further conditions to be met are recorded as non-operating income when received. The government subsidies with certain operating conditions are recorded as liabilities when received and will be recorded as operating income when the conditions are met. |
Modification of equity-classified preferred shares | Modification of equity-classified preferred shares The Company assesses whether an amendment to the terms of its equity-classified preferred shares is an extinguishment or a modification based on the change in the fair value of the preferred shares. If the change in fair value of equity-classified preferred shares immediately after the amendment exceeds 10% from the fair value of the equity-classified preferred shares immediately before the amendment, the amendment is considered an extinguishment. An amendment that does not meet this criteria is a modification. When equity-classified preferred shares are extinguished, the difference between the fair value of the consideration transferred to the equity-classified preferred shareholders and the carrying amount of the equity-classified preferred shares (net of issuance costs) is treated as a deemed dividend to the equity-classified preferred shareholders. When equity-classified preferred shares are modified, the increase of the fair value immediately after the amendment is treated as a deemed dividend to the equity-classified preferred shareholders. Modifications that result in a decrease in the fair value of the equity-classified preferred shares are not recognized. |
Revenue recognition | Revenue recognition The Company operates an online platform which matches borrowers with investors. The Company’s platform enables investors to directly invest in individual loans or subscribe to the Company’s investment programs which provide them with pre-specified investment returns while minimizing the time needed to manage their investments. The Company’s arrangements with customers can be broadly categorized into three types of arrangements. In the first type of arrangement, the Company may advance funds to the borrowers while the loan is being listed on the online platform for online investors to subscribe to. However, the Company does not provide a guarantee to investors and is not the legal title holder of the underlying collateral. The Company determined that it is not the legal lender and legal borrower in the loan origination and repayment process, respectively, because when the loan is fully subscribed by investors, the investors’ funds will be used to settle the advance made by the Company to the borrowers. Therefore, the Company does not record loan receivables and payables arising from the loans between borrowers and investors on its consolidated balance sheets. In the second type of arrangement, the Company does not advance funds to the borrowers prior to a loan being subscribed by the institutional funding partners and online investors. Furthermore, the Company may provide a guarantee to the institutional funding partners and online investors which guarantees the contractual payments of the loan in the event the borrower defaults. The Company determined it is not the legal lender and legal borrower in the loan origination and repayment process, respectively. Therefore, the Company does not record loan receivables and payables arising from the loans between borrowers and the institutional funding partners and online investors on its consolidated balance sheets. In the third type of arrangement, the Company advances funds to the borrowers prior to a loan being subscribed by the investors. The Company provides a guarantee which guarantees the contractual payments of the loan in the event the borrower defaults. As the transaction does not represent a transfer of an entire financial asset or a participating interest and is not legally isolated from the Company, the arrangement is accounted for as loan origination by the Company and a secured borrowing in accordance with ASC 860, Transfers and Servicing. After adoption of ASU 2014-09, "Revenue from Contracts with Customers" (Topic 606)" with modified retrospective method The Company provides loan solution services which include facilitating and monitoring the execution of loan agreements. Borrowers make repayments through the Company, and the Company will then remit the requisite returns to the investors on a periodic basis. The Company also generates revenue from other contingent fees, such as late payment penalties and net revenue from sale of collateral. On January 1, 2019, the Company adopted the revenue standard using the modified retrospective method to those contracts which were not completed as of January 1, 2019. Results for periods beginning after January 1, 2019 are presented under ASC 606 Revenue from Contracts with Customers (“ASC 606”), while prior period amounts are not adjusted and continue to be reported in accordance with historic accounting under ASC 605 Revenue recognition (“ASC 605”). Upon initial adoption, the Company recognized the cumulative effect of initially applying the revenue standard as a decrease of approximately RMB255,730, net of tax, to the opening balances of retained earnings. These adjustments primarily arose from the timing of revenue recognition for transaction fees collected upfront at loan inception to being recognized overtime under ASC 606. The table below sets forth the cumulative effect of the changes made to the consolidated balance sheet as of January 1, 2019 due to the adoption of ASC 606. Balance at Adjustments Balance at Assets December 31, 2018 due to ASC 606 January 1, 2019 RMB RMB RMB Deferred tax assets Liabilities Deferred revenue 23,305 (23,305) — Contract liabilities — 364,278 364,278 Shareholders’ equity Retained earnings 1,040,443 (255,730) 784,713 The table below sets forth the impact to the consolidated statement of comprehensive income as a result of adoption of ASC 606: For the year ended December 31, 2019 Amounts without adoption As reported of ASC 606 Effect of change RMB RMB RMB Revenue from loan services fee 2,955,050 3,090,589 (135,539) Consistent with the criteria of ASC 606 "Revenue from Contracts with Customers", the Company recognizes revenue by applying the following five steps: (i) identify the contract with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to performance obligations in the contract; and (v) recognize revenue when (or as) performance obligations are satisfied. The Company determines that both the borrowers and the investors are its customers because they both receive services provided by the Company pursuant to the contractual terms among the Company, the borrowers and the investors. For each loan facilitated on the platform, the Company considers the loan services and guarantee service as two separate services. Of which, the guarantee service is accounted for in accordance with ASC 460, Guarantees, at fair value. Revenue from the guarantee services is recognized once the Company is released from the underlying risk (see accounting policy for Guarantee Liabilities). The Company identified one performance obligation for borrowers and investors under ASC 606, as the loan services are not distinct. The Company determines the total transaction price to be the service fees chargeable to the borrowers and the investors. The transaction price includes variable consideration in the form of early repayments of the loans by the borrowers. The Company recognizes revenue when (or as) the entity satisfies the service or performance obligation by transferring the promised service (that is, an asset) to customers. Both revenue from combined loan services to borrowers and revenue from post-origination to investors are recognized on a straight-line basis over the term of the underlying loans as the customers simultaneously receive and consume the benefit provided by the services the Company performs. Contract balances Contract assets represent the Group’s right to consideration in exchange for loan service that the Company has transferred to the customer before payment is due. Contract liabilities represent the Company’s obligation to transfer loan solution services to the customer due to received payment which are amortized over the period of the loan. Customer incentives For certain transactions with the investors, the Company, at its sole discretion may provide various incentives to investors when a loan is successfully matched during the relevant incentive program period. The cash incentive from the Company is either provided upfront or on a monthly basis over the term of the loan as additional interest. For arrangements where the Company does not originate loans to borrowers, these cash incentives are accounted for as reduction of revenue in accordance with ASC 606. Cash incentives accounted for as reduction of revenue amounted to RMB359,568 (US$51,649) for the years ended December 31, 2019. For arrangements where the Company originates loans to the borrowers and the related loan payables to investors are recorded on the balance sheet, cash incentives paid upfront will reduce loan payables to investors and loan payables are effectively issued at a discount. If cash incentives are paid to investors over the loan period, the cash incentives are included as repayment to investors for the loan and considered in the effective interest rate of the loan payable to investors. There is no cash incentives as reduction of loan payables for the years ended December 31, 2019. Net financing income The Company earns interest income arising from loans originated by the Company. The Company records interest income net of funding costs (i.e. interest paid to investors) over the life of the underlying loan principal using the effective interest method on unpaid principal amounts in accordance with ASC 310, Receivables . Customer incentives provided to certain investors are recorded as a reduction in loans receivable using the effective interest method. Other revenues The Company also receives various services fees which are contingent on future events, such as borrower late payment penalties, and net revenue from sale of collateral. These contingent fees are not recognized until the contingencies are resolved and the fees become fixed and determined, which also coincide with when the services are performed and collectability is reasonably assured. These fees are classified within other revenue in the consolidated statements of comprehensive income. Other revenues consist of: Year Ended December 31, 2019 RMB US$ Late payment penalties 102,910 14,782 Others 170,523 24,494 Total 273,433 39,276 Revenue through service center operation partners The Company collaborates with service center operation partners for the operation of partner-operated service centers under a revenue sharing model. The Company is a principal in a contract satisfy a performance obligation in accordance with ASC 606-10-55 and recognizes revenue on a gross basis when all the revenue recognition criteria set forth in ASC 606 are met. Pursuant to the one-year cooperation agreements with the service center operation partners, the Company records all of each partner-operated service center’s loan facilitation service fee and post facilitation service fee as revenue, and subsequently pay the service center operation partners an agreed percentage of such amounts as the partner-operated service center’s operating cost and expenses which are recorded as origination and servicing expenses. If loans facilitated by the partner-operated service centers become delinquent and are subsequently purchased by the Company, the relevant service center operation partners are obligated to compensate the Company for an agreed percentage of the purchase price of the delinquent loans. Before adoption of ASU 2014-09, "Revenue from contracts with Customers (Topic 606)" The Company earns a loan facilitation fee and a recurring service fee for post facilitation services for each successful loan facilitation, including provision of global positioning system (“GPS”) automobile tracking services, collection services and sending shortmessage-service (“SMS”) payment reminder to borrowers throughout the term of the loans. Borrowers make repayments through the Company, and the Company will then remit the requisite returns to the investors on a periodic basis. The Company also generates revenue from other contingent fees, such as late payment penalties and loan collection fees. Multiple element revenue recognition In accordance with ASC 605, Revenue recognition (“ASC 605”), for arrangements where the Company is not originating the loan to the borrower, the Company recognizes loan facilitation services and post facilitation services, when the following four revenue recognition criteria are met: (i) Persuasive evidence of an arrangement exists; (ii) Services have been provided; (iii) The fee is fixed and determinable, and (iv) Collectability is reasonably assured. The two deliverables provided by the Company are loan facilitation and post facilitation services. The Company considers the loan facilitation services and the post facilitation services as a multiple element revenue arrangement. The Company does not have vendor specific objective evidence (“VSOE”) of selling price for the loan facilitation services and post facilitation services because the Company does not provide loan facilitation services or post facilitation services on a standalone basis. There is also no third-party evidence of the prices charged by third-party service providers when such services are sold separately. As a result, the Company uses its best estimate of selling prices of loan facilitation services and post facilitation services as the basis of revenue allocation. The fee allocated to loan facilitation is recognized as revenue upon each successful loan facilitation, while the fee allocated to post facilitation services are deferred and amortized over the period of the loan on a straight line method as the post facilitation services are performed. If the fee is not received entirely upfront, the amount allocated to the delivered loan facilitation services is limited to the amount that is not contingent on the delivery of the undelivered post facilitation services and the borrower’s timely installment repayment in accordance with ASC 605‑25. The remaining loan facilitation service income is recorded when the contingency is resolved and cash is received from the borrower. The loan facilitation services and post facilitation services are recorded as revenues in the consolidated statements of comprehensive income. For certain arrangements, the Company provides an additional deliverable in the form of a guarantee to institutional funding partners and online investors which requires the Company to make either delinquent installment repayments and/or purchase the loans after a specified period on an individual loan basis. In accordance with ASC 605‑25‑30‑4, the Company first allocates the consideration to the guarantee equaling to the fair value of the guarantee. The remaining consideration is then allocated to the loan facilitation services and the post facilitation services. Customer incentives For certain transactions with the investors, the Company, at its sole discretion may provide various incentives to investors when a loan is successfully matched during the relevant incentive program period. The cash incentive from the Company is either provided upfront or on a monthly basis over the term of the loan as additional interest. For arrangements where the Company does not originate loans to borrowers, these cash incentives are accounted for as reduction of revenue in accordance with ASC 605-50. Cash incentives accounted for as reduction of revenue amounted to RMB65,915, and RMB268,813 for the years ended December 31, 2017 and 2018, respectively. For arrangements where the Company originates loans to the borrowers and the related loan payables to investors are recorded on the balance sheet, cash incentives paid upfront will reduce loan payables to investors and loan payables are effectively issued at a discount. If cash incentives are paid to investors over the loan period, the cash incentives are included as repayment to investors for the loan and considered in the effective interest rate of the loan payable to investors. Cash incentives accounted for as reduction of loan payables amounted to RMB7,453, and RMB10,746 for the years ended December 31, 2017 and 2018, respectively. Net financing income The Company earns interest income arising from loans originated by the Company. The Company records interest income net of funding costs (i.e. interest paid to investors) over the life of the underlying loan principal using the effective interest method on unpaid principal amounts in accordance with ASC 310, Receivables . Customer incentives provided to certain investors are recorded as a reduction in loans receivable using the effective interest method. Other revenues The Company also receives various services fees which are contingent on future events, such as borrower late payment penalties, loan collection fees, and net revenue from sale of collateral. These contingent fees are not recognized until the contingencies are resolved and the fees become fixed and determined, which also coincide with when the services are performed and collectability is reasonably assured. These fees are classified within other revenue in the consolidated statements of comprehensive income. Other revenues consist of: Year Ended December 31, 2017 2018 RMB RMB Late payment penalties and loan collection fees 218,675 113,313 Others 86,362 76,399 Total 305,037 189,712 Revenue through service center operation partners The Company collaborates with service center operation partners for the operation of partner-operated service centers under a revenue sharing model. The Company is acting as the primary obligor in the arrangement in accordance with ASC 605‑45 and recognizes revenue on a gross basis when all the revenue recognition criteria set forth in ASC 605 are met. Pursuant to the one-year cooperation agreements with the service center operation partners, the Company records all of each partner-operated service center’s loan facilitation service fee and post facilitation service fee as revenue, and subsequently pay the service center operation partners an agreed percentage of such amounts as the partner-operated service center’s operating costs and expenses which are recorded as origination and servicing expenses. If loans facilitated by the partner-operated service centers become delinquent and are subsequently purchased by the Company, the relevant service center operation partners are obligated to compensate the Company for an agreed percentage of the purchase price of the delinquent loans. |
Deferred Revenue | Deferred Revenue Deferred revenue mainly consists of post facilitation service fees which are non-contingent service fees collected at the inception of the loan, and deferred and amortized over the period of the loan. |
Origination and servicing expense | Origination and servicing expense Origination and servicing expenses primarily consist of customer acquisition costs, employee salaries and benefits for facilitating the loan origination, debt-collection cost, customer service cost, data processing and data analysis expense. |
Advertising expenses | Advertising expenses Advertising costs are expensed as incurred in accordance with ASC 720‑35, Other Expense-Advertising Costs. The Company recognized advertising costs of RMB203,972, RMB166,627 and RMB54,167 (US$7,781) for the years ended December 31, 2017, 2018 and 2019, respectively. |
Employee benefits | Employee benefits Full-time employees of the Company 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 Company make contributions to the government for these benefits based on a certain percentage of the employee’s salaries. The Company has no legal obligation for the benefits beyond the contributions. The Company recognized expenses for employee benefits of RMB137,902, RMB181,798 and RMB107,754 (US$15,478) for the years ended December 31, 2017, 2018 and 2019, respectively. |
Income taxes | Income taxes The Company accounts for income taxes using the liability method in accordance with ASC 740, Income Taxes (“ASC 740”). Under this method, deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect when the differences are expected to reverse. Changes in deferred tax assets and liabilities are recorded in earnings. Deferred tax assets are reduced by a valuation allowance through a charge to income tax expense when, in the opinion of management, it is more-likely-than-not that a portion of or all of the deferred tax assets will not be realized. The Company evaluates its uncertain tax positions using the provisions of ASC 740, which prescribes a recognition threshold that a tax position is required to meet before being recognized in the consolidated financial statements. The Company recognizes in the consolidated financial statements the benefit of a tax position which is “more likely than not” to be sustained under examination based solely on the technical merits of the position assuming a review by tax authorities having all relevant information. Tax positions that meet the recognition threshold are measured using a cumulative probability approach, at the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement. It is the Company’s policy to recognize interest and penalties related to unrecognized tax benefits, if any, as a component of income tax expense. |
Segment information | Segment information The Company’s chief operating decision maker, the Chief Executive Officer, reviews the consolidated results when making decisions about allocating resources and assessing performance of the Company as a whole. In accordance with ASC 280, Segment Reporting , the company has only one reportable segment. As the Company generates substantially all of its revenues in the PRC and its long-lived assets are substantially located in PRC, no geographical segments are presented. |
Leases | Leases Leases are classified at the inception date as either a capital lease or an operating lease. The Company assesses a lease to be a capital lease if any of the following conditions exist: (a) ownership is transferred to the lessee by the end of the lease term, (b) there is a bargain purchase option, (c) the lease term is at least 75% of the property’s estimated remaining economic life or (d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased property to the lessor at the inception date. A capital lease is accounted for as if there was an acquisition of an asset and an incurrence of an obligation at the inception of the lease. The company had no capital leases for the years presented. All other leases are accounted for as operating leases wherein rental payments are expensed on a straight-line basis over the periods of their respective lease terms. The Company leases office space under operating lease agreements. The lease term begins on the date of initial possession of the lease property for purposes of recognizing lease expense on a straight-line basis over the term of the lease. |
Value added taxes ("VAT"), business related tax and surcharges | Value added taxes (“VAT”), business related tax and surcharges The Company is subject to VAT at the rate of 17%, 6% or 3%, depending on whether the entity is a general taxpayer or small-scale taxpayer, and related surcharges on revenue generated from providing services. The Notice of the Ministry of Finance and the SAT on Adjusting Value-added Tax Rates, or the Notice, was promulgated on April 4, 2018 and came into effect on May 1, 2018. According to the Notice, the VAT tax rate of 17% and 11% are changed into 16% and 10%, respectively. VAT is reported as a deduction to revenue when incurred and amounted to RMB267,970, RMB330,116 and RMB340,877 (US$48,964) for the years ended December 31, 2017, 2018 and 2019, 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 accrued expenses and other current liabilities on the consolidated balance sheets. The Company is also subject to certain government surcharges on the VAT payable in the PRC. In the consolidated statements of comprehensive income, these surcharges are included in business related tax and surcharges, which are deducted from gross revenues to arrive at net revenues |
Share-based compensation | Share-based compensation The Company applies ASC 718, Compensation—Stock Compensation (“ASC 718”), to account for restricted shares, stock appreciation rights and stock options granted to certain directors, executives and employees. In accordance with ASC 718, the Company determines whether the restricted shares, the stock appreciation rights and stock options should be classified and accounted for as an equity award or liability award. Restricted shares and stock options granted to directors, executives and employees are classified as equity awards and are measured at fair value on grant date and are recognized as an expense, net of forfeitures, over the requisite service period. The cash-settled stock appreciation rights granted to employees are classified as liability awards and are remeasured to fair value at the end of each reporting period until the date of settlement with an adjustment for fair value recorded to the current period expenses. The Company has elected to recognize share-based compensation for all awards with graded vesting using the accelerated method. The Company early adopted ASU 2016-09, Compensation Stock Compensation (Topic 718): Improvement to Employee Share Based Payment Accounting, on January 1, 2016 using full retrospective method, and accounts for forfeitures in the period they occur as a reduction to expense. A change in any of the terms or conditions of share-based payment awards is accounted for as a modification of awards. The Company measures the incremental compensation cost of a modification as the excess of the fair value of the modified awards over the fair value of the original awards immediately before its terms are modified, based on the share price and other pertinent factors at the modification date. For vested awards, the Company recognizes incremental compensation cost in the period the modification occurred. For unvested awards, the Company recognizes, over the remaining requisite service period, the sum of the incremental compensation cost and the remaining unrecognized compensation cost for the original award on the modification date. |
Deferred IPO costs | Deferred IPO costs Direct and incremental costs incurred by the Company attributable to its proposed IPO of ordinary shares in the U.S. is deferred and recorded as deferred IPO costs in the consolidated balance sheets and charged against the gross proceeds received from such offering. |
Comprehensive income | Comprehensive income Comprehensive income is defined as the changes in equity of the Company during a period from transactions and other events and circumstances excluding transactions resulting from investments by owners and distributions to owners. For each of the periods presented, the Company’s comprehensive income includes net income and foreign currency translation adjustments, and is presented in the consolidated statements of comprehensive income. |
Earnings per share | Earnings per share In accordance with ASC topic 260, Earnings per Share , basic earnings per share is computed by dividing net income attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year using the two-class method. Under the two-class method, net income is allocated between ordinary shares and participating securities based on dividends declared (or accumulated) and participating rights in undistributed earnings as if all the earnings for the reporting period had been distributed. The Company’s redeemable convertible preferred shares are participating securities because they are entitled to receive dividends or distributions on an as converted basis. Upon the completion of the Company’s IPO in November 2018, the two-class method is also applicable to the Company’s two classes of ordinary shares outstanding, Class A and Class B ordinary shares. The participating rights (liquidation and dividend rights) of the holders of the Company’s Class A and Class B ordinary shares are identical, except with respect to voting and conversion (Note 15). Diluted earnings per share is calculated by dividing net income attributable to ordinary shareholders, as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Ordinary equivalent shares include ordinary shares issuable upon the conversion of the redeemable convertible preferred shares using the if-converted method, and ordinary shares issuable upon the exercise of share options, using the treasury stock method. Ordinary share equivalents are excluded from the computation of diluted earnings per share if their effects are anti-dilutive. |
Share split | Share split On September 21, 2018, the Company’s board of directors and shareholders approved an amended and restated memorandum and articles of association of the Company to effect a split of shares of its ordinary shares and preferred shares, as well as the post-IPO re-designated and re-classified Class A and Class B ordinary shares, on a 50‑for‑1 basis (the “Share Split”). The par values and the authorized shares of the ordinary shares, preferred shares and the post-IPO re-designated and re-classified Class A and Class B ordinary shares were adjusted as a result of the Share Split. The Share Split became effective on September 21, 2018. All issued and outstanding ordinary shares, preferred shares and the post-IPO re-designated and re-classified Class A and Class B ordinary shares and related per share amounts contained in the financial statements have been retroactively adjusted to reflect this Share Split for all periods presented. |
Recent accounting pronouncements | Recent accounting pronouncements As a company with less than US$1,070,000 in revenue for the last fiscal year, the company qualifies as an “emerging growth company” pursuant to the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). An emerging growth company may take advantage of specified reduced reporting and other requirements that are otherwise applicable generally to public companies. These provisions include a provision that an emerging growth company does not need to comply with any new or revised financial accounting standards until such date that a private company is otherwise required to comply with such new or revised accounting standards. The Company will take advantage of the extended transition period. Recently Adopted Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued ASU No. 2014‑09, “Revenue from Contracts with Customers (Topic 606)”, which supersedes the revenue recognition requirements in Topic 605. The core principle of the guidance is that an entity should recognize revenues 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. The Company adopted Topic 606 as of January 1, 2019 using the modified retrospective transition method applied to those contracts which were not completed as of January 1, 2019. See Note 2 “Revenue Recognition” above for further details. Accounting Pronouncements Issued But Not Yet Adopted In February 2016, the FASB issued ASU No. 2016‑02, Leases (Topic 842) . This ASU modifies existing guidance for off-balance sheet treatment of a lessees’ operating leases by requiring lessees to recognize lease assets and lease liabilities, whilst, lessor accounting is largely unchanged. The amendments in this ASU are effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. The Company is in the process of evaluating the impact of adoption of this guidance on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016‑13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This ASU is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. This ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This ASU requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of the Company’s portfolio. These disclosures include qualitative and quantitative requirements that provide additional information about the amounts recorded in the financial statements. The amendments in this ASU are effective for fiscal years beginning after December 15, 2022, including interim periods within fiscal years beginning after December 15, 2022. In November 2018, the FASB issued ASU No. 2018‑19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses , which clarifies that receivables arising from operating leases should be accounted for in accordance with ASC Topic 842, Leases instead of ASC Subtopic 326‑20. The Company is in the process of evaluating the impact of adoption of this guidance on its consolidated financial statements. In June 2018, the FASB issued ASU 2018‑07, Compensation — Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting , which aligns the measurement and classification guidance for share based payments to nonemployees with that for employees, with certain exceptions. It expands the scope of ASC 718 to include share-based payments granted to nonemployees in exchange for goods or services used or consumed in the entity’s own operations and supersedes the guidance in ASC 505‑50. The ASU retains the existing cost attribution guidance, which requires entities to recognize compensation cost for nonemployee awards in the same period and in the same manner (i.e., capitalize or expense) they would if they paid cash for the goods or services, but it moves the guidance to ASC 718. This standard is effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted, including in an interim period for which financial statements have not been issued (or made available for issuance), but not before an entity adopts ASC 606. The Company is in the process of evaluating the impact of adoption of this guidance on its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018‑13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement which eliminates, adds and modifies certain disclosure requirements for fair value measurements. The guidance is effective for all entities for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years, but entities are permitted to early adopt either the entire standard or only the provisions that eliminate or modify the requirements. The Company is in the process of evaluating the impact of adoption of this guidance on its consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), a new accounting standard update to simplify the accounting for income taxes. The new guidance removes certain exceptions for recognizing deferred taxes for investments, performing intra period allocation and calculating income taxes in interim periods. It also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. This guidance will be effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements and related disclosures. |
Organization (Tables)
Organization (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization | |
Schedule of subsidiaries, VIE and primary subsidiaries of VIE | Percentage of legal ownership Date of Place of by the Principal Entity incorporation incorporation Company activities Subsidiaries Weidai HK Limited February 5, 2018 Hong Kong 100 % Investment holding Weidai Co., Ltd. March 15, 2018 PRC 100 % Investment holding Rymo Technology Industry Limited September 22, 2009 Hong Kong 100 % Investment holding Weidai Singapore PTE. LTD. February 28, 2019 Singapore 100 % Online finance marketplace business QianTang (Philippines) Lending Inc. May 31, 2019 Philippines 100 % Online finance marketplace business Zhejiang Qunshuo Electronics Co., Ltd. August 7, 2014 PRC 100 % Internet Technology Youxian Weirui Technology Co., Ltd. June 17, 2019 PRC 100 % Internet Technology Shanghai Zaohui Finance Lease Co., Ltd. December 18, 2015 PRC 100 % Asset Management Hangzhou Weian Finance Lease Co., Ltd. October 21, 2016 PRC 100 % Asset Management Percentage of legal ownership Date of Place of by the Principal Entity incorporation incorporation Company activities VIEs Weidai (Hangzhou) Financial Information Service Ltd. December 25, 2014 PRC Nil Online finance marketplace business Yuntuo Group Co., Ltd. January 15, 2019 PRC Nil Online finance marketplace business Percentage of legal ownership Date of Place of by the Entity incorporation incorporation Company Principal activities Subsidiaries of the VIEs Qianwei (Hangzhou) Technology Co., Ltd. September 29, 2015 PRC Nil Asset Management Ruituo (Hangzhou) Internet Financial Information Services Co., Ltd. July 30, 2015 PRC Nil Asset Management Yiwu Weirui Internet Technology Co., Ltd. September 29, 2015 PRC Nil Asset Management Hangzhou Yiqitou Investment Advisory Co., Ltd. October 28, 2016 PRC Nil Consulting Liangche (Hangzhou) Internet Technology Co., Ltd. February 21, 2017 PRC Nil Internet Technology Hangzhou Yaowei Technology Co., Ltd. January 24, 2018 PRC Nil Technology development and service Hangzhou Jiujiu Financial Information Services Co., Ltd. August 25, 2015 PRC Nil Finance information service Hangzhou Hengting Information Consultancy Co., Ltd. December 11, 2019 PRC Nil Information Consulting Shanghai Tingji Technology Co., Ltd. September 24, 2019 PRC Nil Internet Technology Haikou Chengfan Technology Co., Ltd. September 25, 2019 PRC Nil Internet Technology Beihai Hongri Technology Co., Ltd. August 30, 2019 PRC Nil Internet Technology Beijing Jiyun Technology Co., Ltd. July 2, 2019 PRC Nil Internet Technology Fuzhou Weidai Online Microcredit Co., Ltd. June 23, 2017 PRC Nil Micro-loan business Hangzhou Yaohong Technology Co., Ltd. April 7, 2016 PRC Nil Internet Technology |
Schedule of consolidated balance sheets related variable interest entities | As of December 31, 2018 2019 RMB RMB US$ Current assets: Cash and cash equivalents 1,419,293 539,491 77,493 Restricted cash 1,619,937 1,140,819 163,868 Loans and advances, net 1,482,368 1,517,876 218,029 Short-term investments 4,100 — — Prepaid expenses and other assets 553,251 438,842 63,036 Amounts due from related parties 42,680 49,815 7,155 Total current assets 5,121,629 3,686,843 529,581 Non-current assets: Restricted cash 19,368 — — Long-term investments 13,333 13,333 1,915 Loans and advances, net 421,564 49,643 7,131 Prepaid expenses and other assets 7,606 23,429 3,365 Property, equipment and software, net 88,684 58,638 8,423 Goodwill 3,067 3,067 441 Deferred tax assets 329,796 675,089 96,970 Total non-current assets 883,418 823,199 118,245 Total assets 6,005,047 4,510,042 647,826 Current liabilities: Payable to institutional funding partners and online investors 1,005,236 289,026 41,516 Current account with online investors and borrowers 2,005,605 1,275,210 183,172 Income tax payable 59,461 228,573 32,832 Accrued expenses and other liabilities 459,415 383,365 55,067 Amounts due to related parties 452,518 628,414 90,266 Contract liabilities — 271,741 39,033 Deferred revenue 11,962 — — Total current liabilities 3,994,197 3,076,329 441,886 Non-current liabilities: Payable to institutional funding partners and online investors 450,160 51,444 7,389 Contract liabilities — 198,282 28,481 Deferred revenue 11,343 — — Other non-current liabilities 14,110 — — Total non-current liabilities 475,613 249,726 35,870 Total liabilities 4,469,810 3,326,055 477,756 |
Schedule of consolidated statements of comprehensive income related variable interest entities | Year ended December 31, 2017 2018 2019 RMB RMB RMB US$ Net revenues 3,545,430 3,917,701 2,709,562 389,204 Net income 474,821 231,872 27,298 3,921 |
Schedule of consolidated statements of cash flows related variable interest entities | Year ended December 31, 2017 2018 2019 RMB RMB RMB US$ Net cash provided by operating activities 2,284,077 1,204,835 2,242,135 322,063 Net cash used in investing activities (2,941,921) (9,916) (913,760) (131,253) Net cash provided by (used in) financing activities 2,205,523 (998,814) (1,114,926) (160,149) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Schedule of fair value measurements of financial instruments | Fair value measurement or disclosure at December 31, 2018 using Significant Quoted prices in other Significant active markets for observable unobservable Total fair value at identical assets inputs inputs December 31, 2018 (Level 1) (Level 2) (Level 3) RMB RMB RMB RMB Fair value disclosure Loans and advances, net – non-current 421,564 — 421,564 — Long-term payable to institutional funding partners and online investors 419,039 — 419,039 — Fair value measurements Recurring Recurring short-term investments Available-for-sale debt securities 4,100 — 4,100 — Fair value measurement or disclosure at December 31, 2019 using Quoted prices in Significant Significant active markets for other unobservable Total fair value at identical assets observable inputs December 31, 2019 (Level 1) inputs (Level 2) (Level 3) RMB US$ RMB RMB RMB Fair value disclosure Loans and advances, net – non-current 49,643 7,131 — 49,643 — Long-term payable to institutional funding partners and online investors 49,866 7,163 — 49,866 — Fair value measurements Recurring Recurring short-term investments Available-for-sale debt securities — — — — — |
Schedule of estimated useful lives of assets | Estimated Estimated Category: Useful Life Residual Value Computer and electronic equipment 3~5 years 5 % Office furniture and equipment 3~5 years 5 % Vehicles 3~4 years 5 % Software 3~10 years 0 % Leasehold improvement Lessor of useful life or lease term 0 % |
Schedule of consolidated balance sheet | Balance at Adjustments Balance at Assets December 31, 2018 due to ASC 606 January 1, 2019 RMB RMB RMB Deferred tax assets Liabilities Deferred revenue 23,305 (23,305) — Contract liabilities — 364,278 364,278 Shareholders’ equity Retained earnings 1,040,443 (255,730) 784,713 |
Schedule of impact to the comprehensive income | For the year ended December 31, 2019 Amounts without adoption As reported of ASC 606 Effect of change RMB RMB RMB Revenue from loan services fee 2,955,050 3,090,589 (135,539) |
Schedule of other revenues in consolidated statements of comprehensive income | Year Ended December 31, 2019 RMB US$ Late payment penalties 102,910 14,782 Others 170,523 24,494 Total 273,433 39,276 |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Schedule of other revenues in consolidated statements of comprehensive income | Year Ended December 31, 2017 2018 RMB RMB Late payment penalties and loan collection fees 218,675 113,313 Others 86,362 76,399 Total 305,037 189,712 |
Loans and advances, net (Tables
Loans and advances, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Loans and advances, net | |
Schedule of loans and advances | Loans and advances originated and retained by the Company consist of the following: As of December 31 2018 2019 RMB RMB US$ Current portion: Loans receivable (i) Auto-backed loans 233,893 125,058 17,963 Other secured loans 139,939 126,251 18,135 Unsecured loans 587,211 97,465 14,000 Sub-total 961,043 348,774 50,098 Acquired non-performing loans (ii) Auto-backed loans 723,404 1,641,865 235,839 Other secured loans 364,424 358,535 51,500 Unsecured loans 197,820 426,526 61,267 Sub-total 1,285,648 2,426,926 348,606 Total current loans and advances 2,246,691 2,775,700 398,704 Allowance for loans and advances (764,323) (1,257,824) (180,675) Loans and advances, net 1,482,368 1,517,876 218,029 Non-current portion: Loans receivable (i) Auto-backed loans 176,923 16,858 2,422 Other secured loans 196,409 34,586 4,968 Unsecured loans 54,259 — — Total non-current loans and advances 427,591 51,444 7,390 Allowance for loans and advances (6,027) (1,801) (259) Loans and advances, net 421,564 49,643 7,131 (i) Loans receivable represent loans originated by the Company with an original term up to three years and annual interest rate primarily ranging between 6%~36%; (ii) Acquired non-performing loans are overdue loans purchased by the Company from online investors and institutional funding partners; |
Schedule of allowance for loans and advances | 2017 Loans receivable Acquired non-performing loans Other Other Auto- backed secured Unsecured Auto- backed secured Unsecured loans loans loans loans loans loans Total RMB RMB RMB RMB RMB RMB RMB Beginning balance — — — (67,156) — (372) (67,528) Current year provision (5,149) (913) (64,515) (327,453) (4,832) (81,201) (484,063) Recoveries of loans previously written off — — — (18,943) — — (18,943) Write-offs — — — 161,378 1,077 1,789 164,244 Ending balance (5,149) (913) (64,515) (252,174) (3,755) (79,784) (406,290) 2018 Loans receivable Acquired non-performing loans Other Other Auto-backed secured Unsecured Auto-backed secured Unsecured loans loans loans loans loans loans Total RMB RMB RMB RMB RMB RMB RMB Beginning balance (5,149) (913) (64,515) (252,174) (3,755) (79,784) (406,290) Current year provision (7,864) (4,427) 4,106 (430,213) (53,245) (259,929) (751,572) Recoveries of loans previously written off — — — (27,879) (24) (355) (28,258) Write-offs — — — 242,492 18,323 154,955 415,770 Ending balance (13,013) (5,340) (60,409) (467,774) (38,701) (185,113) (770,350) 2019 Loans receivable Acquired non-performing loans Other Other Auto-backed secured Unsecured Auto-backed secured Unsecured loans loans loans loans loans loans Total RMB RMB RMB RMB RMB RMB RMB US$ Beginning balance (13,013) (5,340) (60,409) (467,774) (38,701) (185,113) (770,350) (110,654) Current year provision 9,803 2,447 34,844 (790,565) (42,696) (453,795) (1,239,962) (178,109) Recoveries of Loans previously written off — — — (33,587) (1,180) (340) (35,107) (5,043) Write-offs — — — 388,541 3,979 385,878 778,398 111,810 Deregistration of subsidiary — — — — — 7,396 7,396 1,062 Ending balance (3,210) (2,893) (25,565) (903,385) (78,598) (245,974) (1,259,625) (180,934) |
Schedule of aged analysis of past due loans | 1‑30 31‑60 61‑90 91‑120 121‑150 151‑180 181‑360 Over 360 days past days past days past days past days past days past days past days past As of December 31, 2018 Current due due due due due due due due Total RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB Loans receivable Auto-backed loans 383,469 15,939 3,523 3,663 578 — 496 3,148 — 410,816 Other secured loans 324,102 7,929 3,168 1,149 — — — — — 336,348 Unsecured loans 557,229 53,294 8,749 5,287 4,619 3,895 2,629 5,768 — 641,470 Total 1,264,800 77,162 15,440 10,099 5,197 3,895 3,125 8,916 — 1,388,634 1‑30 31‑60 61‑90 91‑120 121‑150 151‑180 181‑360 Over 360 days past days past days past days past days past days past days past days past As of December 31, 2019 Current due due due due due due due due Total RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB US$ Loans receivable Auto-backed loans 143,019 2,339 1,457 1,314 — 109 198 480 — 148,916 21,391 Other secured loans 148,007 3,600 1,087 1,143 — — — — — 153,837 22,097 Unsecured loans 51,578 17,162 3,450 2,740 3,354 3,271 3,570 11,437 903 97,465 14,000 Total 342,604 23,101 5,994 5,197 3,354 3,380 3,768 11,917 903 400,218 57,488 |
Prepaid expenses and other as_2
Prepaid expenses and other assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Prepaid expenses and other assets | |
Schedule of prepaid expenses and other assets | As of December 31, 2018 2019 RMB RMB US$ Current: Guarantee deposits (i) 116,535 99,785 14,333 Amounts due from third-party payment platforms (ii) 85,127 36,160 5,194 Prepaid rental and deposits 49,893 52,309 7,514 Others 308,610 253,078 36,352 Total 560,165 441,332 63,393 Non-current: Guarantee deposits 2,000 — — Prepaid rental and deposits 5,606 11,836 1,700 Others — 11,593 1,665 Total 7,606 23,429 3,365 (i) Guarantee deposits are mainly deposits paid to institutional funding partners for cooperation with these funding partners. (ii) Amount due from third-party payment platforms are mainly restricted cash held by third-party payment platform that belong to the borrowers and online investors as of December 31, 2018 and 2019. |
Property, equipment and softw_2
Property, equipment and software, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property and equipment and software, net | |
Schedule of property, equipment and software, net | As of December 31, 2018 2019 RMB RMB US$ Computer and electronic equipment 55,523 57,061 8,197 Leasehold improvement 46,596 55,954 8,037 Vehicles 20,615 10,731 1,541 Office furniture and equipment 4,321 3,732 536 Software 18,089 24,325 3,494 Total 145,144 151,803 21,805 Less: Accumulated depreciation and amortization (56,413) (92,020) (13,218) Property, equipment and software, net 88,731 59,783 8,587 |
Payable to institutional fund_2
Payable to institutional funding partners and online investors (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payable to institutional funding partners and online investors | |
Schedule of payable to institutional funding partners and online investors | Fixed annual Rate (%) Term As of December 31, 2018 2019 RMB RMB US$ Current: Institutional funding partners 3% to 11% 7 to 12 months 390,908 242,056 34,769 Online investors 3% to 11% 2 to 12 months 614,328 46,970 6,747 1,005,236 289,026 41,516 Non-current: Institutional funding partners 3% to 11% 13 to 36 months 395,901 51,444 7,389 Online investors 5% to 13% 13 to 24 months 54,259 — — 450,160 51,444 7,389 |
Schedule of contractual obligations | Payment due by period Long-term borrowings and Greater than 2 interest payable: Less than 1 year 1‑2 years years Total As of December 31, 2018 (RMB) 485,878 412,650 54,275 952,803 As of December 31, 2019 (RMB) 386,337 54,067 — 440,404 As of December 31, 2019 (US$) 55,494 7,766 — 63,260 |
Current account with online i_2
Current account with online investors and borrowers (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Current account with online investors and borrowers | |
Schedule of current account with online investors and borrowers | As of December 31, 2018 2019 RMB RMB US$ Investor deposits 1,461,080 853,283 122,566 Undrawn borrower funds and deposits 544,525 421,927 60,606 Total 2,005,605 1,275,210 183,172 |
Accrued expenses and other li_2
Accrued expenses and other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accrued expenses and other liabilities | |
Schedule of accrued expenses and other liabilities | As of December 31, 2018 2019 RMB RMB US$ Payroll and welfare payable 264,600 164,226 23,590 Accrued marketing expense 38,536 25,683 3,689 Other taxes payable 24,399 18,540 2,663 Others 173,904 188,957 27,141 Total 501,439 397,406 57,083 |
Interest income, net (Tables)
Interest income, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Interest income, net | |
Schedule of interest income, net | Year Ended December 31, 2017 2018 2019 RMB RMB RMB US$ Interest income 35,742 73,729 42,013 6,035 Interest expense (4,949) (5,597) — — Bank charges (490) (1,341) (3,491) (501) Exchange gains — — 1,094 156 Interest income, net 30,303 66,791 39,616 5,690 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes | |
Schedule of current and deferred components of income tax expenses | Year ended December 31, 2017 2018 2019 RMB RMB RMB US$ Current income tax 318,090 330,859 365,292 52,471 Deferred income tax (124,887) (171,230) (260,049) (37,354) 193,203 159,629 105,243 15,117 |
Schedule of components of the deferred tax assets | As of December 31, 2018 2019 RMB RMB US$ Deferred tax assets Allowance for loans and advances 235,415 492,923 70,804 Net operating loss carry forwards 46,550 48,715 6,997 Accruals for share-based compensation 29,637 41,518 5,964 Accruals for payroll and other costs 19,925 13,590 1,952 Accruals for other liabilities — 4,801 690 Contract liabilities — 86,573 12,435 Less: valuation allowance (1,731) (13,031) (1,872) Balance at the end of the year 329,796 675,089 96,970 |
Schedule of differences between the PRC statutory tax rate and the company's effective tax rate | Year ended December 31, 2017 2018 2019 RMB RMB RMB US$ Income before provision of income tax 668,024 764,259 368,485 52,930 PRC statutory income tax rate 25 % 25 % 25 % 25 % Income tax computed at statutory tax rate 167,006 191,065 92,121 13,233 Difference on tax rate — — (18,427) (2,647) Research and development super-deduction (11,912) (16,254) (13,919) (1,999) Non-deductible/non-taxable items 1,499 29,916 34,168 4,908 Changes in valuation allowance 36,610 (45,098) 11,300 1,622 Income tax expenses 193,203 159,629 105,243 15,117 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings per share | |
Schedule of earnings per share, basic and diluted | Year ended December 31, 2017 2018 2019 Ordinary shares Class A Class B Class A Class B RMB RMB RMB RMB US$ RMB US$ Numerator: Net income attributable to ordinary shareholders 466,217 338,385 383,234 127,357 18,293 126,253 18,135 Allocation of net income attributable to preferred shares (115,555) (164,830) — — — — — Numerator for computing basic earnings per share 350,662 173,555 383,234 127,357 18,293 126,253 18,135 Denominator: Weighted average number of ordinary shares outstanding - basic 48,392,050 15,882,661 35,071,400 35,378,124 35,378,124 35,071,400 35,071,400 Earnings per share - basic 7.25 10.93 10.93 3.60 0.52 3.60 0.52 Diluted earnings per share for each of the years presented are calculated as follows: Year ended December 31, 2017 2018 2019 Ordinary shares Class A Class B Class A Class B RMB RMB RMB RMB US$ RMB US$ Numerator: Numerator for computing basic earnings per share 350,662 173,555 383,234 127,357 18,293 126,253 18,135 Allocation of net income attributable to Series C redeemable convertible preferred shares 22,324 — — — — — — Numerator for computing diluted earnings per share 372,986 173,555 383,234 127,357 18,293 126,253 18,135 Denominator: Weighted average number of ordinary shares outstanding 48,392,050 15,882,661 35,071,400 35,378,124 35,378,124 35,071,400 35,071,400 Conversion of Series C redeemable convertible preferred shares to ordinary shares 3,074,400 — — — — — — Weighted average number of ordinary shares outstanding - diluted 51,466,450 15,882,661 35,071,400 35,378,124 35,378,124 35,071,400 35,071,400 Earnings per share - diluted 7.25 10.93 10.93 3.60 0.52 3.60 0.52 |
Related party balances and tr_2
Related party balances and transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related party balances and transactions | |
Schedule of related party transactions | Year ended December 31, 2017 2018 2019 RMB RMB RMB US$ Loan facilitation service fee from: Key management and their immediate family members 851 742 — — Hangzhou Ruituo Technology Co., Ltd. — 39 — — Loan service fee from: Key management and their immediate family members — — 274 39 Hangzhou Ruituo Technology Co., Ltd. — — 32 5 Total 851 781 306 44 Other revenues: Beijing Lezhihui Technology Co., Ltd. 3,740 13,362 — — Origination and servicing expenses: Beijing Lezhihui Technology Co., Ltd. 49,377 22,739 — — Chunan Wanglan Financial Information Advisory Services Partnership (GP) — 18,077 1,729 248 Chunan Wenjun Financial Information Advisory Services Partnership (GP) — 11,290 6,927 995 Chunan Wenkang Financial Information Advisory Services Partnership (GP) — 9,103 4,518 649 Chunan Wenhai Financial Information Advisory Services Partnership (GP) — 8,743 3,518 505 Chunan Wenbing Financial Information Advisory Services Partnership (GP) — 8,455 6,228 895 Chunan Wenlin Financial Information Advisory Services Partnership (GP) — 8,408 4,693 674 Chunan Wenrong Financial Information Advisory Services Partnership (GP) — 8,357 5,902 848 Chunan Wenshe Financial Information Advisory Services Partnership (GP) — 8,047 — — Chunan Wenbei Financial Information Advisory Services Partnership (GP) — 7,717 6,900 991 Chunan Wensheng Financial Information Advisory Services Partnership (GP) — 7,600 6,509 935 Chunan Wenyang Financial Information Advisory Services Partnership (GP) — 6,924 1,709 245 Chunan Wangxia Financial Information Advisory Services Partnership (GP) — 6,761 3,027 435 Chunan Wanglin Financial Information Advisory Services Partnership (GP) — 5,133 6,900 991 Chunan Wangqi Financial Information Advisory Services Partnership (GP) — 4,969 4,250 610 Chunan Wangqun Financial Information Advisory Services Partnership (GP) — 4,948 9,255 1,329 Chunan Wangqian Financial Information Advisory Services Partnership (GP) — 2,424 — — Chunan Yunxiu Financial Information Advisory Services Partnership (GP) — 1,909 943 135 Chunan Wencai Information Advisory Services Company 99,601 — — — Chunan Wangcai Information Advisory Services Company 62,496 — — — Chunan Yuntong Information Advisory Services Company 2,793 — — — Collecting costs to: Zhejiang Hongrui Investment Management Co., Ltd. 20,469 6,253 — — Zhejiang Ruituo Information Technology Co., Ltd. — 4,996 — — GPS costs to: Zhejiang Qunshuo Electronics Co., Ltd 25,290 — — — Total 260,026 162,853 73,008 10,485 General and administrative expenses: Consulting expenses to: Suzhou Weinxin Zhonghua Venture Capital Partnership (LLP) 20,000 — — — Welfare expenses to: Hangzhou Qiandaohuyaodage Trading Co., Ltd. 1,387 276 — — Total 21,387 276 — — Sales and marketing expenses: Promotion expenses to: Weiyi (Hangzhou) Internet Financial Information Service Co., Ltd 7,916 9,631 — — Trademark expenses to: Zhejiang Ruituo Information Technology Co., Ltd. 62 — — — Total 7,978 9,631 — — |
Schedule of due from related parties | As of December 31, 2018 2019 RMB RMB US$ Zhejiang Zhongbo Finance Lease Co., Ltd. (i) 10,010 — — Hangzhou Ruituo Technology Co., Ltd. (ii) 7,081 7,036 1,011 Zhejiang Ruituo Non-financing Guarantee Co., Ltd. 2,679 385 PT PENDANAAN GOTONG ROYONG — 1,918 276 Others 2,014 12,419 1,783 Total 21,797 24,052 3,455 (i) The balance represents loans provided to Zhejiang Zhongbo Finance Lease Co., Ltd. ("Zhongbo") for the advances of certain type of loan product of the Company as of December 31, 2018. (ii) The balance mainly represents loans provided to Hangzhou Ruituo Technology Co., Ltd. and receivable from the disposal of vehicle collaterals for overdue loans as of December 31, 2018 and 2019. |
Schedule of due to related parties | As of December 31, 2018 2019 RMB RMB US$ Hangzhou Ruituo Technology Co., Ltd. (iii) 714 23,743 3,410 Key management and their immediate family members (iii) 7,626 3,831 550 Mr. Hong Yao (iii) 950 328 47 Zhejiang Zhongbo Finance Lease Co., Ltd. (iv) 9,471 — — Chunan Wangqi Financial Information Advisory Services Partnership (GP) 1,806 — — Chunan Wangzhi Financial Information Advisory Services Partnership (GP) 1,290 — — Chunan Wangqun Financial Information Advisory Services Partnership (GP) 1,110 — — Other related service center operation partners 4,833 74 11 Beijing Lezhihui Technology Co., Ltd. 275 275 40 Others 653 799 115 Total 28,728 29,050 4,173 (iii) The balance mainly represents investment balance due to related parties who are also investors on the platform. (iv) The balance represents account balance of Zhongbo on the platform which is borrowed from the Company and used for the advances of certain type of loan product of the Company. |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Restricted Shares activity | Number of shares Weighted average grant-date fair value Outstanding, December 31, 2017 — — Granted 131,000 134.42 Vested (131,000) 134.42 Converted from stock appreciation rights 1,349,367 216.43 Forfeited — — Outstanding, December 31, 2018 1,349,367 216.43 Granted 71,390 64.47 Vested — — Converted from stock appreciation rights — — Forfeited (465,604) 133.53 Outstanding, December 31, 2019 955,153 245.48 |
Schedule of allocated share-based compensation expenses | Year ended December 31, 2017 2018 2019 RMB RMB RMB US$ Origination and servicing — 46,687 21,279 3,056 General and administrative 35,223 45,104 35,162 5,051 Research and development 5,496 14,780 8,355 1,200 Total 40,719 106,571 64,796 9,307 |
Stock appreciation rights | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of assumptions used to determine the fair value of virtual share options granted | December 31, 2017 September 30, 2018 Fair value per ordinary share 134.42 148.37 Risk-free interest rate 4.35 % 4.35 % Dividend yield nil nil Expected volatility range 61.00 % 61.00 % Weighted average expected life (years) 2.92-3.75 2.17-3.75 |
Employee Stock Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of assumptions used to determine the fair value of virtual share options granted | Each grant date during the year ended December 31, 2019 Fair value per ordinary share The closing stock price at the grant date Risk-free interest rate Dividend yield nil Expected volatility range Weighted average expected life (years) 5.25-6.17 |
Accumulated other comprehensi_2
Accumulated other comprehensive loss (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated other comprehensive loss | |
Reclassification of accumulated other comprehensive loss | RMB Balance as of December 31, 2017 — Foreign currency transaction adjustments (2,700) Balance as of December 31, 2018 (2,700) Foreign currency transaction adjustments 190 Balance as of December 31, 2019 (2,510) Balance as of December 31, 2019 (US$) (361) |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and contingencies | |
Schedule of future minimum lease payments under non-cancelable operating leases agreements | RMB US$ 2020 59,420 8,534 2021 19,978 2,870 2022 4,746 682 2023 272 39 2024 and thereafter 354 51 Total 84,770 12,176 |
Schedule of future minimum capital commitments for renovating expense under non-cancellable agreement | RMB US$ 2020 13,900 1,997 2021 11,700 1,681 2022 and thereafter 1,600 229 Total 27,200 3,907 |
Preferred shares (Tables)
Preferred shares (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Preferred shares | |
Schedule of movement in the carrying value of the preferred shares | Series A Series A+ Series B Series C Total RMB RMB RMB RMB RMB Balance as of December 31, 2016 18,856 3,771 6,283 360,000 388,910 Dividends declared 4,602 920 1,534 1,548 8,604 Dividends paid (4,602) (920) (1,534) (1,548) (8,604) Balance as of December 31, 2017 18,856 3,771 6,283 360,000 388,910 Reversal of accretion on Series C preferred shares — — — (120,000) (120,000) Conversion of preferred shares to Class A ordinary shares (18,856) (3,771) (6,283) (240,000) (268,910) Balance as of December 31, 2018 and 2019 — — — — — Balance as of December 31, 2018 and 2019 (US$) — — — — — |
Business combination (Tables)
Business combination (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business combination | |
Schedule of changes in carrying amount of goodwill | RMB Balance at December 31, 2017 — Goodwill acquired 5,812 Goodwill disposed — Balance at December 31, 2018 5,812 Goodwill acquired — Goodwill disposed — Balance at December 31, 2019 5,812 Balance at December 31, 2019 (US$) 835 |
Organization (Details)
Organization (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Weidai (Hangzhou) Financial Information Service Ltd. | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Entity Incorporation, Date of Incorporation | Dec. 25, 2014 |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Online finance marketplace business |
Yuntuo Group Co., Ltd. | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Entity Incorporation, Date of Incorporation | Jan. 15, 2019 |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Online finance marketplace business |
Weidai HK Limited | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Entity Incorporation, Date of Incorporation | Feb. 5, 2018 |
Percentage of legal ownership by the Company | 100.00% |
Principal activities | Investment holding |
Weidai Co., Ltd. | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Entity Incorporation, Date of Incorporation | Mar. 15, 2018 |
Percentage of legal ownership by the Company | 100.00% |
Principal activities | Investment holding |
Rymo Technology Industry Limited | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Entity Incorporation, Date of Incorporation | Sep. 22, 2009 |
Percentage of legal ownership by the Company | 100.00% |
Principal activities | Investment holding |
Weidai Singapore PTE. LTD. | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Entity Incorporation, Date of Incorporation | Feb. 28, 2019 |
Percentage of legal ownership by the Company | 100.00% |
Principal activities | Online finance marketplace business |
QianTang (Philippines) Lending Inc. | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Entity Incorporation, Date of Incorporation | May 31, 2019 |
Percentage of legal ownership by the Company | 100.00% |
Principal activities | Online finance marketplace business |
Zhejiang Qunshuo Electronics Co., Ltd. | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Entity Incorporation, Date of Incorporation | Aug. 7, 2014 |
Percentage of legal ownership by the Company | 100.00% |
Principal activities | Internet Technology |
Youxian Weirui Technology Co., Ltd. | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Entity Incorporation, Date of Incorporation | Jun. 17, 2019 |
Percentage of legal ownership by the Company | 100.00% |
Principal activities | Internet Technology |
Shanghai Zaohui Finance Lease Co., Ltd. | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Entity Incorporation, Date of Incorporation | Dec. 18, 2015 |
Percentage of legal ownership by the Company | 100.00% |
Principal activities | Asset Management |
Hangzhou Weian Finance Lease Co., Ltd. | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Entity Incorporation, Date of Incorporation | Oct. 21, 2016 |
Percentage of legal ownership by the Company | 100.00% |
Principal activities | Asset Management |
Qianwei (Hangzhou) Technology Co., Ltd. | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Entity Incorporation, Date of Incorporation | Sep. 29, 2015 |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Asset Management |
Ruituo (Hangzhou) Internet Financial Information Services Co., Ltd. | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Entity Incorporation, Date of Incorporation | Jul. 30, 2015 |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Asset Management |
Yiwu Weirui Internet Technology Co., Ltd. | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Entity Incorporation, Date of Incorporation | Sep. 29, 2015 |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Asset Management |
Hangzhou Yiqitou Investment Advisory Co., Ltd. | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Entity Incorporation, Date of Incorporation | Oct. 28, 2016 |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Consulting |
Liangche (Hangzhou) Internet Technology Co., Ltd. | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Entity Incorporation, Date of Incorporation | Feb. 21, 2017 |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Internet Technology |
Hangzhou Yaowei Technology Co., Ltd. | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Entity Incorporation, Date of Incorporation | Jan. 24, 2018 |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Technology development and service |
Hangzhou Jiujiu Financial Information Services Co., Ltd. | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Entity Incorporation, Date of Incorporation | Aug. 25, 2015 |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Finance information service |
Hangzhou Hengting Information Consultancy Co., Ltd. | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Entity Incorporation, Date of Incorporation | Dec. 11, 2019 |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Information Consulting |
Shanghai Tingji Technology Co., Ltd. | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Entity Incorporation, Date of Incorporation | Sep. 24, 2019 |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Internet Technology |
Haikou Chengfan Technology Co., Ltd [Member] | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Entity Incorporation, Date of Incorporation | Sep. 25, 2019 |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Internet Technology |
Beihai Hongri Technology Co., Ltd [Member] | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Entity Incorporation, Date of Incorporation | Aug. 30, 2019 |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Internet Technology |
Beijing Jiyun Technology Co., Ltd [Member] | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Entity Incorporation, Date of Incorporation | Jul. 2, 2019 |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Internet Technology |
Fuzhou Weidai Online Microcredit Co., Ltd. | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Entity Incorporation, Date of Incorporation | Jun. 23, 2017 |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Micro-loan business |
Hangzhou Yaohong Technology Co., Ltd. | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Entity Incorporation, Date of Incorporation | Apr. 7, 2016 |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Internet Technology |
Organization (Details 1)
Organization (Details 1) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Jan. 01, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) |
Current assets: | ||||||
Cash and cash equivalents | $ 154,494 | ¥ 1,075,557 | ¥ 1,741,911 | ¥ 1,765,572 | ||
Restricted cash | 163,868 | 1,140,819 | 1,619,937 | 1,092,921 | ||
Loans and advances, net | 218,029 | 1,517,876 | 1,482,368 | |||
Short-term investments | 4,100 | |||||
Amounts due from related parties | 3,455 | 24,052 | 21,797 | |||
Total current assets | 603,239 | 4,199,636 | 5,430,278 | |||
Non-current assets: | ||||||
Restricted cash | 19,368 | ¥ 4,000 | ||||
Long-term investments | 1,950 | 13,574 | 13,333 | |||
Loans and advances, net | 7,131 | 49,643 | 421,564 | |||
Property, equipment and software, net | 8,587 | 59,783 | 88,731 | |||
Goodwill | 835 | 5,812 | 5,812 | |||
Deferred tax assets | 96,970 | 675,089 | ¥ 415,039 | 329,796 | ||
Total non-current assets | 118,838 | 827,330 | 886,210 | |||
Total assets | 722,077 | 5,026,966 | 6,316,488 | |||
Current liabilities: | ||||||
Payable to institutional funding partners and online investors | 41,516 | 289,026 | 1,005,236 | |||
Current account with online investors and borrowers | 183,172 | 1,275,210 | 2,005,605 | |||
Income tax payable | 34,058 | 237,102 | 70,679 | |||
Accrued expenses and other liabilities | 57,083 | 397,406 | 501,439 | |||
Amounts due to related parties | 4,173 | 29,050 | 28,728 | |||
Contract liabilities | 11,962 | |||||
Total current liabilities | 359,035 | 2,499,535 | 3,623,649 | |||
Non-current liabilities: | ||||||
Payable to institutional funding partners and online investors | 7,389 | 51,444 | 450,160 | |||
Contract liabilities | 28,481 | 198,282 | ||||
Deferred revenue | 11,343 | |||||
Other non-current liabilities | 14,110 | |||||
Total non-current liabilities | 35,870 | 249,726 | 475,613 | |||
Total liabilities | 394,905 | 2,749,261 | 4,099,262 | |||
VIEs | ||||||
Current assets: | ||||||
Cash and cash equivalents | 77,493 | 539,491 | 1,419,293 | |||
Restricted cash | 163,868 | 1,140,819 | 1,619,937 | |||
Loans and advances, net | 218,029 | 1,517,876 | 1,482,368 | |||
Short-term investments | 4,100 | |||||
Prepaid expenses and other assets | 63,036 | 438,842 | 553,251 | |||
Amounts due from related parties | 7,155 | 49,815 | 42,680 | |||
Total current assets | 529,581 | 3,686,843 | 5,121,629 | |||
Non-current assets: | ||||||
Restricted cash | 19,368 | |||||
Long-term investments | 1,915 | 13,333 | 13,333 | |||
Loans and advances, net | 7,131 | 49,643 | 421,564 | |||
Prepaid expenses and other assets | 3,365 | 23,429 | 7,606 | |||
Property, equipment and software, net | 8,423 | 58,638 | 88,684 | |||
Goodwill | 441 | 3,067 | 3,067 | |||
Deferred tax assets | 96,970 | 675,089 | 329,796 | |||
Total non-current assets | 118,245 | 823,199 | 883,418 | |||
Total assets | 647,826 | 4,510,042 | 6,005,047 | |||
Current liabilities: | ||||||
Payable to institutional funding partners and online investors | 41,516 | 289,026 | 1,005,236 | |||
Current account with online investors and borrowers | 183,172 | 1,275,210 | 2,005,605 | |||
Income tax payable | 32,832 | 228,573 | 59,461 | |||
Accrued expenses and other liabilities | 55,067 | 383,365 | 459,415 | |||
Amounts due to related parties | 90,266 | 628,414 | 452,518 | |||
Contract liabilities | 39,033 | 271,741 | ||||
Deferred revenue | 11,962 | |||||
Total current liabilities | 441,886 | 3,076,329 | 3,994,197 | |||
Non-current liabilities: | ||||||
Payable to institutional funding partners and online investors | 7,389 | 51,444 | 450,160 | |||
Contract liabilities | 28,481 | 198,282 | ||||
Deferred revenue | 11,343 | |||||
Other non-current liabilities | 14,110 | |||||
Total non-current liabilities | 35,870 | 249,726 | 475,613 | |||
Total liabilities | $ 477,756 | ¥ 3,326,055 | ¥ 4,469,810 |
Organization (Details 2)
Organization (Details 2) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Net revenues | $ 39,276 | ¥ 273,433 | ||
Net income | 37,812 | 263,242 | ¥ 604,630 | ¥ 474,821 |
VIEs | ||||
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Net revenues | 389,204 | 2,709,562 | 3,917,701 | 3,545,430 |
Net income | $ 3,921 | ¥ 27,298 | ¥ 231,872 | ¥ 474,821 |
Organization (Details 3)
Organization (Details 3) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Net cash provided by operating activities | $ 127,427 | ¥ 887,112 | ¥ 1,214,774 | ¥ 2,284,077 |
Net cash used in investing activities | (132,445) | (922,049) | (6,468) | (2,941,921) |
Net cash provided by (used in) financing activities | (162,328) | (1,130,093) | (686,883) | 2,205,523 |
VIEs | ||||
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Net cash provided by operating activities | 322,063 | 2,242,135 | 1,204,835 | 2,284,077 |
Net cash used in investing activities | (131,253) | (913,760) | (9,916) | (2,941,921) |
Net cash provided by (used in) financing activities | $ (160,149) | ¥ (1,114,926) | ¥ (998,814) | ¥ 2,205,523 |
Organization (Detail Textuals)
Organization (Detail Textuals) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Apr. 10, 2018shares | Jan. 26, 2018shares | Dec. 31, 2017shares | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||
Common Stock, Shares, Issued | 48,392,050 | 48,392,050 | ||||
Percentage of net income as basis for technical support and consulting services fees | 100.00% | |||||
Weidai (Hangzhou) Financial Information Service Ltd. | ||||||
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||
Net assets | $ 170,070 | ¥ 1,183,987 | ¥ 1,535,237 | |||
IPO | Yaoh Wdai Ltd [Member] | Common Stock | ||||||
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||
Common Stock, Shares, Issued | 48,392,050 | |||||
IPO | Weidai (Hangzhou) Financial Information Service Ltd. | Series A preferred shares | ||||||
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||
Other ordinary shareholders of the VIE | 9,146,250 | |||||
IPO | Weidai (Hangzhou) Financial Information Service Ltd. | Series A+ preferred shares | ||||||
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||
Other ordinary shareholders of the VIE | 1,829,250 | |||||
IPO | Weidai (Hangzhou) Financial Information Service Ltd. | Series B preferred shares | ||||||
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||
Other ordinary shareholders of the VIE | 3,048,800 | |||||
IPO | Weidai (Hangzhou) Financial Information Service Ltd. | Series C redeemable convertible preferred shares | ||||||
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||
Other ordinary shareholders of the VIE | 3,074,400 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details 1) - Fair Value, Measurements, Recurring [Member] ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans and advances, net - non-current | $ 7,131 | ¥ 49,643 | ¥ 421,564 |
Long-term payable to institutional - funding partners and online investors | $ 7,163 | 49,866 | 419,039 |
Recurring short-term investments Available-for-sale debt securities | 4,100 | ||
Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans and advances, net - non-current | 0 | 0 | |
Long-term payable to institutional - funding partners and online investors | 0 | 0 | |
Recurring short-term investments Available-for-sale debt securities | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans and advances, net - non-current | 49,643 | 421,564 | |
Long-term payable to institutional - funding partners and online investors | 49,866 | 419,039 | |
Recurring short-term investments Available-for-sale debt securities | 4,100 | ||
Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans and advances, net - non-current | 0 | 0 | |
Long-term payable to institutional - funding partners and online investors | 0 | 0 | |
Recurring short-term investments Available-for-sale debt securities | ¥ 0 | ¥ 0 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details 2) | 12 Months Ended |
Dec. 31, 2019 | |
Computer and electronic equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3~5 years |
Estimated Residual Value | 5.00% |
Office furniture and equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3~5 years |
Estimated Residual Value | 5.00% |
Vehicles | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3~4 years |
Estimated Residual Value | 5.00% |
Software | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3~10 years |
Estimated Residual Value | 0.00% |
Leasehold improvement | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | Lessor of useful life or lease term |
Estimated Residual Value | 0.00% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details 3) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | Jan. 01, 2019CNY (¥) | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Cumulative effect | ¥ 255,730 | ¥ 255,730 | ||||
Assets | ||||||
Deferred tax assets | $ 96,970 | 329,796 | ¥ 675,089 | 415,039 | ||
Liabilities | ||||||
Deferred revenue | 23,305 | |||||
Contract liabilities | 364,278 | |||||
Shareholders' equity | ||||||
Retained earnings | 149,146 | 1,040,443 | ¥ 1,038,323 | ¥ 784,713 | ||
Impact to the consolidated statement of comprehensive income | ||||||
Services and other revenue | 39,276 | ¥ 273,433 | ||||
Adjustments due to ASC 606 | ||||||
Assets | ||||||
Deferred tax assets | 85,243 | |||||
Liabilities | ||||||
Deferred revenue | (23,305) | |||||
Contract liabilities | 364,278 | |||||
Shareholders' equity | ||||||
Retained earnings | (255,730) | |||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||||
Impact to the consolidated statement of comprehensive income | ||||||
Services and other revenue | ¥ 189,712 | ¥ 305,037 | ||||
Loan service fee | ||||||
Impact to the consolidated statement of comprehensive income | ||||||
Services and other revenue | $ 424,466 | 2,955,050 | ||||
Loan service fee | Adjustments due to ASC 606 | ||||||
Impact to the consolidated statement of comprehensive income | ||||||
Services and other revenue | (135,539) | |||||
Loan service fee | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||||
Impact to the consolidated statement of comprehensive income | ||||||
Services and other revenue | ¥ 3,090,589 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details 4) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Adjustments due to ASC 606 | ||||
Customer incentives | ||||
Cash incentives revenue reduction | $ 51,649 | ¥ 359,568 | ||
Cash incentives loans payable reduction | ¥ 0 | |||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||
Customer incentives | ||||
Cash incentives revenue reduction | ¥ 268,813 | ¥ 65,915 | ||
Cash incentives loans payable reduction | ¥ 10,746 | ¥ 7,453 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Details 5) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Disaggregation of Revenue [Line Items] | ||||
Total | $ 39,276 | ¥ 273,433 | ||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | ¥ 189,712 | ¥ 305,037 | ||
Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 39,276 | 273,433 | 189,712 | 305,037 |
Late Payment Penalties And Loan Collection Fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 14,782 | 102,910 | ||
Late Payment Penalties And Loan Collection Fees [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 113,313 | 218,675 | ||
Others | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | $ 24,494 | ¥ 170,523 | ||
Others | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | ¥ 76,399 | ¥ 86,362 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Detail Textuals)1 ¥ in Thousands, $ in Thousands | Dec. 31, 2018USD ($) | May 01, 2018 | Apr. 04, 2018 | Dec. 31, 2019USD ($)segment | Dec. 31, 2019CNY (¥)segment | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) |
Summary of Significant Accounting Policies | ||||||||
Foreign exchange rate per US$1.00 | 6.9618 | 6.9618 | ||||||
Amount of restricted cash related to cash not yet disbursed | $ 146,535 | ¥ 1,583,178 | ¥ 1,020,151 | |||||
Amount of cash held by banks as guarantee deposits paid on contracts and other restrictions | 17,333 | 56,127 | 120,668 | |||||
Maximum potential undiscounted future payment to make under guarantee obligation | 435,326 | 2,938,661 | ¥ 3,030,654 | |||||
Provision for financial guarantee liabilities | 2,759 | ¥ 19,206 | 21,712 | ¥ 0 | ||||
Research and development | 11,730 | 81,664 | 139,318 | 100,966 | ||||
Advertising costs | 7,781 | 54,167 | 166,627 | 203,972 | ||||
Amount of expenses for employee benefits | $ 15,478 | ¥ 107,754 | 181,798 | 137,902 | ||||
Number of Reportable Segments | segment | 1 | 1 | ||||||
Percentage of VAT - first rate | 16.00% | 17.00% | 17.00% | 17.00% | ||||
Percentage of VAT - second rate | 10.00% | 11.00% | 6.00% | 6.00% | ||||
Percentage of VAT - third rate | 3.00% | 3.00% | ||||||
Amount of VAT paid | $ 48,964 | ¥ 340,877 | ¥ 330,116 | ¥ 267,970 | ||||
Share split ratio | 50 | 50 | ||||||
New accounting pronouncement or change in accounting principle, effect of change on revenue | $ | $ 1,070,000 |
Concentration of risks (Detail
Concentration of risks (Detail Textuals) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Concentration of risks | |||
Description of individual borrowings for revenue and loan and advances | 10% or more | 10% or more | 10% or more |
Percentage of appreciation in foreign currency | 5.80% | ||
Percentage of depreciation in foreign currency | 1.30% | 5.40% |
Loans and advances, net (Detail
Loans and advances, net (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Current portion: | ||||
Total current loans and advances | $ 398,704 | ¥ 2,775,700 | ¥ 2,246,691 | |
Allowance for loans and advances | (180,675) | (1,257,824) | (764,323) | |
Loans and advances, net | 218,029 | 1,517,876 | 1,482,368 | |
Non-current portion | ||||
Total non-current loans and advances | 7,390 | 51,444 | 427,591 | |
Allowance for loans and advances | (259) | (1,801) | (6,027) | |
Loans and advances, net | 7,131 | 49,643 | 421,564 | |
Loans receivable | ||||
Current portion: | ||||
Total current loans and advances | [1] | 50,098 | 348,774 | 961,043 |
Loans receivable | Auto-backed loans | ||||
Current portion: | ||||
Total current loans and advances | [1] | 17,963 | 125,058 | 233,893 |
Non-current portion | ||||
Total non-current loans and advances | [1] | 2,422 | 16,858 | 176,923 |
Loans receivable | Other secured loans | ||||
Current portion: | ||||
Total current loans and advances | [1] | 18,135 | 126,251 | 139,939 |
Non-current portion | ||||
Total non-current loans and advances | [1] | 4,968 | 34,586 | 196,409 |
Loans receivable | Unsecured loans | ||||
Current portion: | ||||
Total current loans and advances | [1] | 14,000 | 97,465 | 587,211 |
Non-current portion | ||||
Total non-current loans and advances | [1] | 54,259 | ||
Acquired non-performing loans | ||||
Current portion: | ||||
Total current loans and advances | [2] | 348,606 | 2,426,926 | 1,285,648 |
Acquired non-performing loans | Auto-backed loans | ||||
Current portion: | ||||
Total current loans and advances | [2] | 235,839 | 1,641,865 | 723,404 |
Acquired non-performing loans | Other secured loans | ||||
Current portion: | ||||
Total current loans and advances | [2] | 51,500 | 358,535 | 364,424 |
Acquired non-performing loans | Unsecured loans | ||||
Current portion: | ||||
Total current loans and advances | [2] | $ 61,267 | ¥ 426,526 | ¥ 197,820 |
[1] | Loans receivable represent loans originated by the Company with an original term up to three years and annual interest rate primarily ranging between 6%~36%; | |||
[2] | Acquired non-performing loans are overdue loans purchased by the Company from online investors and institutional funding partners; |
Loans and advances, net (Parent
Loans and advances, net (Parentheticals) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Term of loan receivable | 3 years |
Minimum | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Annual interest rate | 6.00% |
Maximum | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Annual interest rate | 36.00% |
Loans and advances, net (Deta_2
Loans and advances, net (Details 1) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Allowance for loans and advances | ||||
Beginning balance | $ (110,654) | ¥ (770,350) | ¥ (406,290) | ¥ (67,528) |
Current year provision | (178,109) | (1,239,962) | (751,572) | (484,063) |
Recoveries of loans previously written off | (5,043) | (35,107) | (28,258) | (18,943) |
Write-offs | 111,810 | 778,398 | 415,770 | 164,244 |
Deregistration of subsidiary | 1,062 | 7,396 | ||
Ending balance | $ (180,934) | (1,259,625) | (770,350) | (406,290) |
Loans receivable | Auto-backed loans | ||||
Allowance for loans and advances | ||||
Beginning balance | (13,013) | (5,149) | 0 | |
Current year provision | 9,803 | (7,864) | (5,149) | |
Recoveries of loans previously written off | 0 | 0 | 0 | |
Write-offs | 0 | 0 | 0 | |
Deregistration of subsidiary | 0 | |||
Ending balance | (3,210) | (13,013) | (5,149) | |
Loans receivable | Other secured loans | ||||
Allowance for loans and advances | ||||
Beginning balance | (5,340) | (913) | 0 | |
Current year provision | 2,447 | (4,427) | (913) | |
Recoveries of loans previously written off | 0 | 0 | 0 | |
Write-offs | 0 | 0 | 0 | |
Deregistration of subsidiary | 0 | |||
Ending balance | (2,893) | (5,340) | (913) | |
Loans receivable | Unsecured loans | ||||
Allowance for loans and advances | ||||
Beginning balance | (60,409) | (64,515) | 0 | |
Current year provision | 34,844 | 4,106 | (64,515) | |
Recoveries of loans previously written off | 0 | 0 | 0 | |
Write-offs | 0 | 0 | 0 | |
Deregistration of subsidiary | 0 | |||
Ending balance | (25,565) | (60,409) | (64,515) | |
Acquired non-performing loans | Auto-backed loans | ||||
Allowance for loans and advances | ||||
Beginning balance | (467,774) | (252,174) | (67,156) | |
Current year provision | (790,565) | (430,213) | (327,453) | |
Recoveries of loans previously written off | (33,587) | (27,879) | (18,943) | |
Write-offs | 388,541 | 242,492 | 161,378 | |
Ending balance | (903,385) | (467,774) | (252,174) | |
Acquired non-performing loans | Other secured loans | ||||
Allowance for loans and advances | ||||
Beginning balance | (38,701) | (3,755) | 0 | |
Current year provision | (42,696) | (53,245) | (4,832) | |
Recoveries of loans previously written off | (1,180) | (24) | 0 | |
Write-offs | 3,979 | 18,323 | 1,077 | |
Ending balance | (78,598) | (38,701) | (3,755) | |
Acquired non-performing loans | Unsecured loans | ||||
Allowance for loans and advances | ||||
Beginning balance | (185,113) | (79,784) | (372) | |
Current year provision | (453,795) | (259,929) | (81,201) | |
Recoveries of loans previously written off | (340) | (355) | 0 | |
Write-offs | 385,878 | 154,955 | 1,789 | |
Deregistration of subsidiary | 7,396 | |||
Ending balance | ¥ (245,974) | ¥ (185,113) | ¥ (79,784) |
Loans and advances, net (Deta_3
Loans and advances, net (Details 2) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | ¥ 342,604 | ¥ 1,264,800 | |
Total | $ 57,488 | 400,218 | 1,388,634 |
1-30 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 23,101 | 77,162 | |
31-60 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 5,994 | 15,440 | |
61-90 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 5,197 | 10,099 | |
91-120 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 3,354 | 5,197 | |
121-150 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 3,380 | 3,895 | |
151-180 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 3,768 | 3,125 | |
181-360 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 11,917 | 8,916 | |
Over 360 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 903 | 0 | |
Loans receivable | Auto-backed loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 143,019 | 383,469 | |
Total | 21,391 | 148,916 | 410,816 |
Loans receivable | Auto-backed loans | 1-30 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 2,339 | 15,939 | |
Loans receivable | Auto-backed loans | 31-60 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 1,457 | 3,523 | |
Loans receivable | Auto-backed loans | 61-90 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 1,314 | 3,663 | |
Loans receivable | Auto-backed loans | 91-120 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 0 | 578 | |
Loans receivable | Auto-backed loans | 121-150 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 109 | 0 | |
Loans receivable | Auto-backed loans | 151-180 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 198 | 496 | |
Loans receivable | Auto-backed loans | 181-360 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 480 | 3,148 | |
Loans receivable | Auto-backed loans | Over 360 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 0 | 0 | |
Loans receivable | Other secured loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 148,007 | 324,102 | |
Total | 22,097 | 153,837 | 336,348 |
Loans receivable | Other secured loans | 1-30 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 3,600 | 7,929 | |
Loans receivable | Other secured loans | 31-60 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 1,087 | 3,168 | |
Loans receivable | Other secured loans | 61-90 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 1,143 | 1,149 | |
Loans receivable | Other secured loans | 91-120 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 0 | 0 | |
Loans receivable | Other secured loans | 121-150 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 0 | 0 | |
Loans receivable | Other secured loans | 151-180 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 0 | 0 | |
Loans receivable | Other secured loans | 181-360 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 0 | 0 | |
Loans receivable | Other secured loans | Over 360 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 0 | 0 | |
Loans receivable | Unsecured loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 51,578 | 557,229 | |
Total | 14,000 | 97,465 | 641,470 |
Loans receivable | Unsecured loans | 1-30 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 17,162 | 53,294 | |
Loans receivable | Unsecured loans | 31-60 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 3,450 | 8,749 | |
Loans receivable | Unsecured loans | 61-90 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 2,740 | 5,287 | |
Loans receivable | Unsecured loans | 91-120 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 3,354 | 4,619 | |
Loans receivable | Unsecured loans | 121-150 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 3,271 | 3,895 | |
Loans receivable | Unsecured loans | 151-180 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 3,570 | 2,629 | |
Loans receivable | Unsecured loans | 181-360 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 11,437 | 5,768 | |
Loans receivable | Unsecured loans | Over 360 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | ¥ 903 | ¥ 0 | |
Acquired non-performing loans | Auto-backed loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | $ | 105,215 | ||
Acquired non-performing loans | Other secured loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | $ | 53,003 | ||
Acquired non-performing loans | Unsecured loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | $ | $ 28,771 |
Short-term investments (Detail
Short-term investments (Detail Textuals) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Short-term investments | ||||
Interest income from short-term investments | $ 1,577 | ¥ 10,979 | ¥ 11,685 | ¥ 17,202 |
Prepaid expenses and other as_3
Prepaid expenses and other assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Current: | ||||
Guarantee deposits | $ 14,333 | ¥ 99,785 | ¥ 116,535 | |
Amounts due from third-party payment platforms | [1] | 5,194 | 36,160 | 85,127 |
Prepaid rental and deposits | 7,514 | 52,309 | 49,893 | |
Others | 36,352 | 253,078 | 308,610 | |
Total | 63,393 | 441,332 | 560,165 | |
Non-current: | ||||
Guarantee deposits | 0 | 0 | 2,000 | |
Prepaid rental and deposits | 1,700 | 11,836 | 5,606 | |
Others | 1,665 | 11,593 | 0 | |
Total | $ 3,365 | ¥ 23,429 | ¥ 7,606 | |
[1] | 6. Prepaid expenses and other assetsAs of December 31, 20182019 RMB RMB US$Current:Guarantee deposits (i) 116,535 99,785 14,333Amounts due from third-party payment platforms (ii) 85,127 36,160 5,194Prepaid rental and deposits 49,893 52,309 7,514Others 308,610 253,078 36,352Total 560,165 441,332 63,393Non-current: Guarantee deposits 2,000 — —Prepaid rental and deposits 5,606 11,836 1,700Others — 11,593 1,665Total 7,606 23,429 3,365Guarantee deposits are mainly deposits paid to institutional funding partners for cooperation with these funding partners.Amount due from third-party payment platforms are mainly restricted cash held by third-party payment platform that belong to the borrowers and online investors as of December 31, 2018 and 2019. |
Property, equipment and softw_3
Property, equipment and software, net (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Property, Plant and Equipment [Line Items] | |||
Total | $ 21,805 | ¥ 151,803 | ¥ 145,144 |
Less: Accumulated depreciation and amortization | (13,218) | (92,020) | (56,413) |
Property, equipment and software, net | 8,587 | 59,783 | 88,731 |
Computer and electronic equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total | 8,197 | 57,061 | 55,523 |
Leasehold improvement | |||
Property, Plant and Equipment [Line Items] | |||
Total | 8,037 | 55,954 | 46,596 |
Vehicles | |||
Property, Plant and Equipment [Line Items] | |||
Total | 1,541 | 10,731 | 20,615 |
Office furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total | 536 | 3,732 | 4,321 |
Software | |||
Property, Plant and Equipment [Line Items] | |||
Total | $ 3,494 | ¥ 24,325 | ¥ 18,089 |
Property, equipment and softw_4
Property, equipment and software, net (Detail Textuals) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Property and equipment and software, net | ||||
Depreciation | $ 6,117 | ¥ 42,586 | ¥ 42,431 | ¥ 12,747 |
Payable to institutional fund_3
Payable to institutional funding partners and online investors (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Schedule Of Payable To Institutional Funding Partners And Online Investors [Line Items] | |||
Payable to institutional funding partners and online investors, current | $ 41,516 | ¥ 289,026 | ¥ 1,005,236 |
Payable to institutional funding partners and online investors, Non-current | 7,389 | 51,444 | 450,160 |
Institutional funding partners | |||
Schedule Of Payable To Institutional Funding Partners And Online Investors [Line Items] | |||
Payable to institutional funding partners and online investors, current | 34,769 | 242,056 | 390,908 |
Payable to institutional funding partners and online investors, Non-current | $ 7,389 | ¥ 51,444 | 395,901 |
Institutional funding partners | Maximum | |||
Schedule Of Payable To Institutional Funding Partners And Online Investors [Line Items] | |||
Fixed annual Rate, Current | 11.00% | 11.00% | |
Fixed annual Rate, Non-current | 11.00% | 11.00% | |
Payable to institutional funding partners and online investors term, current | 12 months | ||
Payable to institutional funding partners and online investors term, noncurrent | 36 months | ||
Institutional funding partners | Minimum | |||
Schedule Of Payable To Institutional Funding Partners And Online Investors [Line Items] | |||
Fixed annual Rate, Current | 3.00% | 3.00% | |
Fixed annual Rate, Non-current | 3.00% | 3.00% | |
Payable to institutional funding partners and online investors term, current | 7 years | ||
Payable to institutional funding partners and online investors term, noncurrent | 13 months | ||
Online investors | |||
Schedule Of Payable To Institutional Funding Partners And Online Investors [Line Items] | |||
Payable to institutional funding partners and online investors, current | $ 6,747 | ¥ 46,970 | 614,328 |
Payable to institutional funding partners and online investors, Non-current | $ 0 | ¥ 0 | ¥ 54,259 |
Online investors | Maximum | |||
Schedule Of Payable To Institutional Funding Partners And Online Investors [Line Items] | |||
Fixed annual Rate, Current | 11.00% | 11.00% | |
Fixed annual Rate, Non-current | 13.00% | 13.00% | |
Payable to institutional funding partners and online investors term, current | 12 months | ||
Payable to institutional funding partners and online investors term, noncurrent | 24 months | ||
Online investors | Minimum | |||
Schedule Of Payable To Institutional Funding Partners And Online Investors [Line Items] | |||
Fixed annual Rate, Current | 3.00% | 3.00% | |
Fixed annual Rate, Non-current | 5.00% | 5.00% | |
Payable to institutional funding partners and online investors term, current | 2 months | ||
Payable to institutional funding partners and online investors term, noncurrent | 13 months |
Payable to institutional fund_4
Payable to institutional funding partners and online investors (Details 1) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Long-term borrowings and interest payable | |||
Contractual obligations, Less than 1 year | $ 55,494 | ¥ 386,337 | ¥ 485,878 |
Contractual obligations, 1-2 years | 7,766 | 54,067 | 412,650 |
Contractual obligations, Greater than 2 years | 54,275 | ||
Contractual obligation, Total | $ 63,260 | ¥ 440,404 | ¥ 952,803 |
Current account with online i_3
Current account with online investors and borrowers (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Current account with online investors and borrowers | |||
Investor deposits | $ 122,566 | ¥ 853,283 | ¥ 1,461,080 |
Undrawn borrower funds and deposits | 60,606 | 421,927 | 544,525 |
Total | $ 183,172 | ¥ 1,275,210 | ¥ 2,005,605 |
Accrued expenses and other li_3
Accrued expenses and other liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Accrued expenses and other liabilities | |||
Payroll and welfare payable | $ 23,590 | ¥ 164,226 | ¥ 264,600 |
Accrued marketing expenses | 3,689 | 25,683 | 38,536 |
Other taxes payable | 2,663 | 18,540 | 24,399 |
Others | 27,141 | 188,957 | 173,904 |
Total | $ 57,083 | ¥ 397,406 | ¥ 501,439 |
Interest income, net (Details)
Interest income, net (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Interest income, net | ||||
Interest income | $ 6,035 | ¥ 42,013 | ¥ 73,729 | ¥ 35,742 |
Interest expenses | 0 | 0 | (5,597) | (4,949) |
Bank charges | (501) | (3,491) | (1,341) | (490) |
Exchange gains | 156 | 1,094 | ||
Interest income, net | $ 5,690 | ¥ 39,616 | ¥ 66,791 | ¥ 30,303 |
Income Taxes - Summary of Curre
Income Taxes - Summary of Current and Deferred Components of Income Tax Expenses (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Income Taxes | ||||
Current income tax | $ 52,471 | ¥ 365,292 | ¥ 330,859 | ¥ 318,090 |
Deferred income tax | (37,354) | (260,049) | (171,230) | (124,887) |
Income tax expenses | $ 15,117 | ¥ 105,243 | ¥ 159,629 | ¥ 193,203 |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Deferred Tax Assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Deferred tax assets | |||
Allowance for loans and advances | $ 70,804 | ¥ 492,923 | ¥ 235,415 |
Net operating loss carry forwards | 6,997 | 48,715 | 46,550 |
Accruals for share-based compensation | 5,964 | 41,518 | 29,637 |
Accruals for payroll and other costs | 1,952 | 13,590 | 19,925 |
Accruals for other liabilities | 690 | 4,801 | |
Contract liabilities | 12,435 | 86,573 | |
Less: valuation allowance | (1,872) | (13,031) | (1,731) |
Balance at the end of the year | $ 96,970 | ¥ 675,089 | ¥ 329,796 |
Income Taxes - Summary of Diffe
Income Taxes - Summary of Differences Between the PRC Statutory Tax rate and Company's Effective Tax Rate (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Income Taxes | ||||
Income before provision of income tax | $ 52,930 | ¥ 368,485 | ¥ 764,259 | ¥ 668,024 |
PRC statutory income tax rate | 25.00% | 25.00% | 25.00% | 25.00% |
Income tax computed at statutory tax rate | $ 13,233 | ¥ 92,121 | ¥ 191,065 | ¥ 167,006 |
Difference on tax rate | (2,647) | (18,427) | ||
Research and development super-deduction | (1,999) | (13,919) | (16,254) | (11,912) |
Non-deductible/non-taxable items | 4,908 | 34,168 | 29,916 | 1,499 |
Changes in valuation allowance | 1,622 | 11,300 | (45,098) | 36,610 |
Income tax expenses | $ 15,117 | ¥ 105,243 | ¥ 159,629 | ¥ 193,203 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | |
Income Taxes | |||||
Income tax rate for foreign subsidiary | 16.50% | 16.50% | |||
PRC statutory income tax rate | 25.00% | 25.00% | 25.00% | 25.00% | |
Withholding income tax rate on on dividends distributed | 10.00% | 10.00% | |||
Description of withholding tax rate | dividends paid by an FIE in China to its immediate holding company in Hong Kong will be subject to withholding tax at a rate of no more than 5% (if the foreign investor owns directly at least 25% of the shares of the FIE). | dividends paid by an FIE in China to its immediate holding company in Hong Kong will be subject to withholding tax at a rate of no more than 5% (if the foreign investor owns directly at least 25% of the shares of the FIE). | |||
Amount of undistributed earnings accrued | $ 154,511 | ¥ 1,075,678 | |||
Percentage of income tax research and development super deduction | 175.00% | 175.00% | 175.00% | 150.00% | |
Research and development expense | $ 12,326 | ¥ 85,810 | ¥ 86,686 | ¥ 95,295 | |
Research and development super-deduction | 1,999 | ¥ 13,919 | ¥ 16,254 | ¥ 11,912 | |
Net operating losses | $ 27,990 | ¥ 194,860 |
Earnings per share (Details)
Earnings per share (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Net income attributable to ordinary shareholders | $ 36,428 | ¥ 253,610 | ¥ 721,619 | ¥ 466,217 |
Allocation of net income attributable to preferred shareholders | ¥ | (115,555) | |||
Numerator for computing basic earnings per share | ¥ | ¥ 350,662 | |||
Denominator: | ||||
Weighted average number of ordinary shares outstanding - basic | 70,449,524 | 70,449,524 | 50,954,061 | 48,392,050 |
Earnings per share - basic | (per share) | $ 0.52 | ¥ 3.60 | ¥ 10.93 | ¥ 7.25 |
Class A ordinary shares | ||||
Numerator: | ||||
Net income attributable to ordinary shareholders | $ 18,293 | ¥ 127,357 | ¥ 338,385 | |
Allocation of net income attributable to preferred shareholders | 0 | 0 | (164,830) | |
Numerator for computing basic earnings per share | $ 18,293 | ¥ 127,357 | ¥ 173,555 | |
Denominator: | ||||
Weighted average number of ordinary shares outstanding - basic | 35,378,124 | 35,378,124 | 15,882,661 | |
Earnings per share - basic | (per share) | $ 0.52 | ¥ 3.60 | ¥ 10.93 | |
Class B ordinary shares | ||||
Numerator: | ||||
Net income attributable to ordinary shareholders | $ 18,135 | ¥ 126,253 | ¥ 383,234 | |
Allocation of net income attributable to preferred shareholders | 0 | 0 | 0 | |
Numerator for computing basic earnings per share | $ 18,135 | ¥ 126,253 | ¥ 383,234 | |
Denominator: | ||||
Weighted average number of ordinary shares outstanding - basic | 35,071,400 | 35,071,400 | 35,071,400 | |
Earnings per share - basic | (per share) | $ 0.52 | ¥ 3.60 | ¥ 10.93 |
Earnings per share (Details 1)
Earnings per share (Details 1) ¥ / shares in Units, $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Numerator for computing basic earnings per share | ¥ | ¥ 350,662,000 | |||
Allocation of net income attributable to Series C redeemable convertible preferred shares | ¥ | 22,324,000 | |||
Numerator for computing diluted earnings per share | ¥ | ¥ 372,986,000 | |||
Denominator: | ||||
Weighted average number of ordinary shares outstanding - basic | 70,449,524 | 70,449,524 | 50,954,061 | 48,392,050 |
Conversion of Series C redeemable convertible preferred shares to ordinary shares | 3,074,400 | |||
Weighted average number of ordinary shares outstanding - diluted | 70,449,524 | 70,449,524 | 50,954,061 | 51,466,450 |
Earnings per share - basic | (per share) | $ 0.52 | ¥ 3.60 | ¥ 10.93 | ¥ 7.25 |
Class A ordinary shares | ||||
Numerator: | ||||
Numerator for computing basic earnings per share | $ 18,293 | ¥ 127,357,000 | ¥ 173,555,000 | |
Allocation of net income attributable to Series C redeemable convertible preferred shares | 0 | 0 | 0 | |
Numerator for computing diluted earnings per share | $ 18,293 | ¥ 127,357,000 | ¥ 173,555,000 | |
Denominator: | ||||
Weighted average number of ordinary shares outstanding - basic | 35,378,124 | 35,378,124 | 15,882,661 | |
Conversion of Series C redeemable convertible preferred shares to ordinary shares | 0 | 0 | 0 | |
Weighted average number of ordinary shares outstanding - diluted | 35,378,124 | 35,378,124 | 15,882,661 | |
Earnings per share - basic | (per share) | $ 0.52 | ¥ 3.60 | ¥ 10.93 | |
Class B ordinary shares | ||||
Numerator: | ||||
Numerator for computing basic earnings per share | $ 18,135 | ¥ 126,253,000 | ¥ 383,234 | |
Allocation of net income attributable to Series C redeemable convertible preferred shares | 0 | 0 | 0 | |
Numerator for computing diluted earnings per share | $ 18,135 | ¥ 126,253,000 | ¥ 383,234 | |
Denominator: | ||||
Weighted average number of ordinary shares outstanding - basic | 35,071,400 | 35,071,400 | 35,071,400 | |
Conversion of Series C redeemable convertible preferred shares to ordinary shares | 0 | 0 | 0 | |
Weighted average number of ordinary shares outstanding - diluted | 35,071,400 | 35,071,400 | 35,071,400 | |
Earnings per share - basic | (per share) | $ 0.52 | ¥ 3.60 | ¥ 10.93 |
Share capital - Additional Info
Share capital - Additional Information (Details) ¥ / shares in Units, ¥ in Thousands | Dec. 14, 2018$ / sharesshares | Nov. 15, 2018CNY (¥) | Apr. 14, 2017CNY (¥) | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018$ / sharesshares | Dec. 31, 2019$ / sharesshares | Nov. 19, 2018shares | Nov. 15, 2018$ / sharesshares | Jan. 26, 2018$ / sharesshares | Dec. 31, 2017shares |
Share Capital [Line Items] | ||||||||||
Common stock, shares authorized | 24,982,901,300 | |||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.000002 | |||||||||
Common stock, share issued | 48,392,050 | 48,392,050 | ||||||||
Common stock, share outstanding | 48,392,050 | |||||||||
Dividend payment | ¥ | ¥ 32,228 | ¥ 23,624 | ||||||||
Date of dividend declared | Apr. 14, 2017 | |||||||||
Common Stock, Voting Rights | The rights of the holders of Class A and Class B ordinary shares are identical, except with respect to voting and conversion rights. Each share of Class A ordinary shares is entitled to one vote per share and is not convertible into Class B ordinary shares under any circumstances. Each share of Class B ordinary shares is entitled to five vote per share and is convertible into one Class A ordinary share at any time by the holder thereof | |||||||||
Underwriter | ||||||||||
Share Capital [Line Items] | ||||||||||
Issuance of ADS to underwriters on exercise of options | 456,427 | |||||||||
Exercise price per ADS | $ / shares | $ 10 | |||||||||
IPO | ||||||||||
Share Capital [Line Items] | ||||||||||
Deferred initial public offer cost | ¥ | ¥ 25,528 | |||||||||
Over-Allotment Option | ||||||||||
Share Capital [Line Items] | ||||||||||
Proceeds from IPO | ¥ | ¥ 311,931 | |||||||||
Series A preferred shares | ||||||||||
Share Capital [Line Items] | ||||||||||
Dividend payment | ¥ | ¥ 4,602 | |||||||||
Date of dividend declared | Apr. 14, 2017 | |||||||||
Dividends payable, amount per share (in dollars per share) | ¥ / shares | ¥ 0.50 | |||||||||
Series A+ preferred shares | ||||||||||
Share Capital [Line Items] | ||||||||||
Dividend payment | ¥ | ¥ 920 | |||||||||
Date of dividend declared | Apr. 14, 2017 | |||||||||
Dividends payable, amount per share (in dollars per share) | ¥ / shares | ¥ 0.50 | |||||||||
Series B preferred shares | ||||||||||
Share Capital [Line Items] | ||||||||||
Dividend payment | ¥ | ¥ 1,534 | |||||||||
Date of dividend declared | Apr. 14, 2017 | |||||||||
Dividends payable, amount per share (in dollars per share) | ¥ / shares | ¥ 0.50 | |||||||||
Series C redeemable convertible preferred shares | ||||||||||
Share Capital [Line Items] | ||||||||||
Dividend payment | ¥ | ¥ 1,548 | |||||||||
Date of dividend declared | Apr. 14, 2017 | |||||||||
Dividends payable, amount per share (in dollars per share) | ¥ / shares | ¥ 0.50 | |||||||||
Class A ordinary shares | ||||||||||
Share Capital [Line Items] | ||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.000002 | $ 0.000002 | ||||||||
Common stock, share issued | 35,390,055 | 35,375,777 | 35,390,055 | |||||||
Common stock, share outstanding | 35,390,055 | 35,375,777 | 35,390,055 | |||||||
Issuance of ADS to underwriters on exercise of options | 4,956,427 | |||||||||
Class A ordinary shares | Underwriter | ||||||||||
Share Capital [Line Items] | ||||||||||
Issuance of ADS to underwriters on exercise of options | 456,427 | |||||||||
Class A ordinary shares | IPO | ||||||||||
Share Capital [Line Items] | ||||||||||
Common stock, share issued | 13,320,650 | 13,320,650 | ||||||||
Common stock, share outstanding | 13,320,650 | 13,320,650 | ||||||||
Number of convertible preferred shares | 17,098,700 | |||||||||
Class B ordinary shares | ||||||||||
Share Capital [Line Items] | ||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.000002 | |||||||||
Common stock, share issued | 35,071,400 | 35,071,400 | ||||||||
Common stock, share outstanding | 35,071,400 | 35,071,400 | 35,071,400 | |||||||
Common Stock | ||||||||||
Share Capital [Line Items] | ||||||||||
Dividend payment | ¥ | ¥ 23,624 | |||||||||
Date of dividend declared | Apr. 14, 2017 | |||||||||
Dividends payable, amount per share (in dollars per share) | ¥ / shares | ¥ 0.50 | |||||||||
Common Stock | Class A ordinary shares | IPO | ||||||||||
Share Capital [Line Items] | ||||||||||
Common stock, share issued | 4,500,000 | |||||||||
Exercise price per ADS | $ / shares | $ 10 |
Related party balances and tr_3
Related party balances and transactions (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Related Party Transaction [Line Items] | ||||
Net revenues | $ 44 | ¥ 306 | ¥ 781 | ¥ 851 |
Origination and servicing expenses: | ||||
Total | 10,485 | 73,008 | 162,853 | 260,026 |
General and administrative expenses: | ||||
Total | 0 | 0 | 276 | 21,387 |
Sales and marketing expenses: | ||||
Total | 0 | 0 | 9,631 | 7,978 |
Loan Facilitation Services | ||||
Related Party Transaction [Line Items] | ||||
Net revenues | 0 | 781 | 851 | |
Loan service fee | ||||
Related Party Transaction [Line Items] | ||||
Net revenues | 44 | 306 | 0 | 0 |
Other revenues | ||||
Related Party Transaction [Line Items] | ||||
Net revenues | 0 | 13,362 | 3,740 | |
Key Management And Their Immediate Family Members [Member] | Loan Facilitation Services | ||||
Related Party Transaction [Line Items] | ||||
Net revenues | 0 | 0 | 742 | 851 |
Key Management And Their Immediate Family Members [Member] | Loan service fee | ||||
Related Party Transaction [Line Items] | ||||
Net revenues | 39 | 274 | 0 | 0 |
Hangzhou Ruituo Technology Co. Ltd. [Member] | Loan Facilitation Services | ||||
Related Party Transaction [Line Items] | ||||
Net revenues | 0 | 0 | 39 | 0 |
Hangzhou Ruituo Technology Co. Ltd. [Member] | Loan service fee | ||||
Related Party Transaction [Line Items] | ||||
Net revenues | 5 | 32 | 0 | 0 |
Beijing Lezhihui Technology Co Ltd [Member] | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 0 | 0 | 22,739 | 49,377 |
Beijing Lezhihui Technology Co Ltd [Member] | Other revenues | ||||
Related Party Transaction [Line Items] | ||||
Net revenues | 0 | 0 | 13,362 | 3,740 |
Chunan Wanglan Financial Information Advisory Services Partnership (Gp) [Member] | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 248 | 1,729 | 18,077 | 0 |
Chunan Wenjun Financial Information Advisory Services Partnership (GP) | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 995 | 6,927 | 11,290 | 0 |
Chunan Wenkang Financial Information Advisory Services Partnership (GP) | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 649 | 4,518 | 9,103 | 0 |
Chunan Wenhai Financial Information Advisory Services Partnership (GP) | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 505 | 3,518 | 8,743 | 0 |
Chunan Wenbing Financial Information Advisory Services Partnership (GP) [Member] | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 895 | 6,228 | 8,455 | 0 |
Chunan Wenlin Financial Information Advisory Services Partnership (GP) | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 674 | 4,693 | 8,408 | 0 |
Chunan Wenrong Financial Information Advisory Services Partnership (GP) | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 848 | 5,902 | 8,357 | 0 |
Chunan Wenshe Financial Information Advisory Services Partnership (GP) | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 0 | 0 | 8,047 | 0 |
Chunan Wenbei Financial Information Advisory Services Partnership (GP) | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 991 | 6,900 | 7,717 | 0 |
Chunan Wensheng Financial Information Advisory Services Partnership (GP) | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 935 | 6,509 | 7,600 | 0 |
Chunan Wenyang Financial Information Advisory Services Partnership (GP) | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 245 | 1,709 | 6,924 | 0 |
Chunan Wangxia Financial Information Advisory Services Partnership (GP) | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 435 | 3,027 | 6,761 | 0 |
Chunan Wanglin Financial Information Advisory Services Partnership (GP) | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 991 | 6,900 | 5,133 | 0 |
Chunan Wangqi Financial Information Advisory Services Partnership [Member] | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 610 | 4,250 | 4,969 | 0 |
Chunan Wangqun Financial Information Advisory Services Partnership [Member] | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 1,329 | 9,255 | 4,948 | 0 |
Chunan Wangqian Financial Information Advisory Services Partnership (Gp) [Member] | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 0 | 0 | 2,424 | 0 |
Chunan Yunxiu Financial Information Advisory Services Partnership (Gp) [Member] | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 135 | 943 | 1,909 | 0 |
Chunan Wencai Information Advisory Services Company [Member] | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 0 | 0 | 0 | 99,601 |
Chunan Wangcai Information Advisory Services Company [Member] | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 0 | 0 | 0 | 62,496 |
Chunan Yuntong Information Advisory Services Company [Member] | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 0 | 0 | 0 | 2,793 |
Zhejiang Hongrui Investment Management Co Ltd [Member] | ||||
Origination and servicing expenses: | ||||
Collecting costs | 0 | 0 | 6,253 | 20,469 |
Zhejiang Ruituo Information Technology Co Ltd [Member] | ||||
Origination and servicing expenses: | ||||
Collecting costs | 0 | 0 | 4,996 | 0 |
Sales and marketing expenses: | ||||
Trademark expenses | 0 | 0 | 0 | 62 |
Zhejiang Qunshuo Electronics Co Ltd [Member] | ||||
Origination and servicing expenses: | ||||
GPS costs | 0 | 0 | 0 | 25,290 |
Suzhou Weixin Zhonghua Venture Capital Partnership [Member] | ||||
General and administrative expenses: | ||||
Consulting expenses | 0 | 0 | 0 | 20,000 |
Hangzhou Qiandaohuyaodage Trading Company [Member] | ||||
General and administrative expenses: | ||||
Welfare expenses | 0 | 276 | 1,387 | |
Total | $ | 0 | |||
Weiyi (Hangzhou) Internet Financial Information Service Co Ltd [Member] | ||||
Sales and marketing expenses: | ||||
Promotion expenses | $ 0 | ¥ 0 | ¥ 9,631 | ¥ 7,916 |
Related party balances and tr_4
Related party balances and transactions (Details 1) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Related Party Transaction [Line Items] | ||||
Total | $ 3,455 | ¥ 24,052 | ¥ 21,797 | |
Zhejiang Zhongbo Finance Lease Co., Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Total | [1] | 10,010 | ||
Hangzhou Ruituo Technology Co. Ltd. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Total | [2] | 1,011 | 7,036 | 7,081 |
Zhejiang Ruituo Non-Financing Guarantee Co., Ltd. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Total | 385 | 2,679 | 2,692 | |
PT PENDANAAN GOTONG ROYONG | ||||
Related Party Transaction [Line Items] | ||||
Total | 276 | 1,918 | 0 | |
Others Related Party [Member] | ||||
Related Party Transaction [Line Items] | ||||
Total | $ 1,783 | ¥ 12,419 | ¥ 2,014 | |
[1] | The balance represents loans provided to Zhejiang Zhongbo Finance Lease Co., Ltd. ("Zhongbo") for the advances of certain type of loan product of the Company as of December 31, 2018.The balance mainly represents loans provided to Hangzhou Ruituo Technology Co., Ltd. and receivable from the disposal of vehicle collaterals for overdue loans as of December 31, 2018 and 2019. | |||
[2] | The balance mainly represents loans provided to Hangzhou Ruituo Technology Co., Ltd. and receivable from the disposal of vehicle collaterals for overdue loans as of December 31, 2018 and 2019. |
Related party balances and tr_5
Related party balances and transactions (Details 2) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Related Party Transaction [Line Items] | ||||
Total | $ 4,173 | ¥ 29,050 | ¥ 28,728 | |
Hangzhou Ruituo Technology Co. Ltd. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Total | 3,410 | 23,743 | 714 | |
Key Management And Their Immediate Family Members [Member] | ||||
Related Party Transaction [Line Items] | ||||
Total | [1] | 550 | 3,831 | 7,626 |
Mr Hong Yao [Member] | ||||
Related Party Transaction [Line Items] | ||||
Total | [1] | 47 | 328 | 950 |
Zhejiang Zhongbo Finance Lease Co., Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Total | [2] | 0 | 0 | 9,471 |
Chunan Wangqi Financial Information Advisory Services Partnership [Member] | ||||
Related Party Transaction [Line Items] | ||||
Total | 0 | 0 | 1,806 | |
Chunan Wangzhi Financial Information Advisory Services Partnership [Member] | ||||
Related Party Transaction [Line Items] | ||||
Total | 0 | 0 | 1,290 | |
Chunan Wangqun Financial Information Advisory Services Partnership [Member] | ||||
Related Party Transaction [Line Items] | ||||
Total | 0 | 0 | 1,110 | |
Other Related Service Center Operation Partners [Member] | ||||
Related Party Transaction [Line Items] | ||||
Total | 11 | 74 | 4,833 | |
Beijing Lezhihui Technology Co Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Total | 40 | 275 | 275 | |
Others Related Party [Member] | ||||
Related Party Transaction [Line Items] | ||||
Total | $ 115 | ¥ 799 | ¥ 653 | |
[1] | The balance mainly represents investment balance due to related parties who are also investors on the platform. | |||
[2] | The balance represents account balance of Zhongbo on the platform which is borrowed from the Company and used for the advances of certain type of loan product of the Company. |
Share-based compensation (Detai
Share-based compensation (Details) - $ / shares | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average expected life range (years) | 9 months 18 days | ||||
Stock appreciation rights | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Fair value per ordinary share | $ 148.37 | $ 148.37 | $ 148.37 | $ 134.42 | |
Risk-free interest rate | 4.35% | 4.35% | |||
Dividend yield | 0.00% | 0.00% | |||
Expected volatility range | 61.00% | 61.00% | |||
Stock appreciation rights | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average expected life range (years) | 2 years 2 months 1 day | 2 years 11 months 1 day | |||
Stock appreciation rights | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average expected life range (years) | 3 years 9 months | 3 years 9 months | |||
Employee Stock Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Risk-free interest rate | 2.91% | ||||
Dividend yield | 0.00% | ||||
Expected volatility range | 54.67% | ||||
Employee Stock Option [Member] | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average expected life range (years) | 5 years 3 months | ||||
Employee Stock Option [Member] | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average expected life range (years) | 6 years 2 months 1 day |
Share-based compensation (Det_2
Share-based compensation (Details 1) - Restricted shares - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Number of shares | ||
Outstanding, beginning | 1,349,367 | 0 |
Granted | 71,390 | 131,000 |
Vested | (131,000) | |
Converted From Stock Appreciation Rights | 1,349,367 | |
Forfeited | (465,604) | |
Outstanding, ending | 955,153 | 1,349,367 |
Weighted average grant-date fair value | ||
Outstanding, beginning | $ 216.43 | $ 0 |
Granted | 64.47 | 134.42 |
Vested | 134.42 | |
Converted from stock appreciation rights | 216.43 | |
Forfeited | 133.53 | |
Outstanding, ending | $ 245.48 | $ 216.43 |
Share-based compensation (Det_3
Share-based compensation (Details 2) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated share-based compensation expenses | $ 9,307 | ¥ 64,796 | ¥ 106,571 | ¥ 40,719 |
Origination and servicing | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated share-based compensation expenses | 3,056 | 21,279 | 46,687 | 0 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated share-based compensation expenses | 5,051 | 35,162 | 45,104 | 35,223 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated share-based compensation expenses | $ 1,200 | ¥ 8,355 | ¥ 14,780 | ¥ 5,496 |
Share-based compensation (Det_4
Share-based compensation (Detail Textuals) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | Apr. 01, 2019shares | Jan. 16, 2018$ / sharesshares | Sep. 30, 2018CNY (¥) | Aug. 31, 2018shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | Sep. 30, 2018$ / shares | Dec. 31, 2017$ / shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based compensation | $ 9,307 | ¥ 64,796 | ¥ 106,571 | ¥ 40,719 | |||||||
Unrecognized non-employee share-based compensation expenses related to unvested restricted shares expected to vest | $ 5,810 | ¥ 40,445 | |||||||||
Weighted average expected life | 9 months 18 days | 9 months 18 days | |||||||||
Share Incentive Plan 2018 [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of restricted shares granted | 3,300,000 | ||||||||||
Option exercised | 0 | 0 | |||||||||
Restricted share exercised | 14,278 | 14,278 | |||||||||
Share incentive plan term | 10 years | ||||||||||
Share Incentive Plan 2018 [Member] | April 1 2019 [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares granted | 1,972,951 | ||||||||||
Restricted shares | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Restricted share exercised | 71,390 | 71,390 | 131,000 | ||||||||
Restricted shares | Directors and executives | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of restricted shares granted | 131,000 | ||||||||||
Fair value of shares granted | $ / shares | $ 134.42 | ||||||||||
Share-based compensation | ¥ | ¥ 17,610 | ||||||||||
Stock appreciation rights | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based compensation | $ 3,858 | ¥ 26,858 | ¥ 88,961 | ¥ 40,719 | |||||||
Percentage of stock appreciation rights equity interest | 2.13% | 2.72% | |||||||||
Exercisable period | 5 years | 5 years | |||||||||
Share-based compensation arrangement by share-based payment award plan modification | ¥ / shares | ¥ 216.43 | ||||||||||
Share-based compensation arrangement by share-based payment award plan modification reclassified liability additional paid in capital | ¥ | ¥ 106,465 | ||||||||||
Weighted average grant-date fair value of Restricted Shares | $ / shares | $ 148.37 | $ 134.42 | |||||||||
Stock appreciation rights | Stock appreciation rights subject to vesting second anniversary | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock appreciation rights vesting percentage | 33.00% | 33.00% | |||||||||
Stock appreciation rights | Stock appreciation rights subject to vesting third anniversary | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock appreciation rights vesting percentage | 33.00% | 33.00% | |||||||||
Stock appreciation rights | Stock appreciation rights subject to vesting fourth anniversary | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock appreciation rights vesting percentage | 34.00% | 34.00% | |||||||||
Employee Stock Option [Member] | Share Incentive Plan 2018 [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares granted | 1,901,561 | 1,901,561 | |||||||||
Restricted Stock Units (RSUs) [Member] | Share Incentive Plan 2018 [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares granted | 71,390 | 71,390 |
Accumulated other comprehensi_3
Accumulated other comprehensive loss (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Accumulated other comprehensive loss | |||
Opening balance | ¥ (2,700) | ¥ 0 | |
Foreign currency transaction adjustments, net of tax of nil | $ 27 | 190 | (2,700) |
Closing balance | $ (361) | ¥ (2,510) | ¥ (2,700) |
Commitments and contingencies_2
Commitments and contingencies (Details) - Dec. 31, 2019 ¥ in Thousands, $ in Thousands | USD ($) | CNY (¥) |
Commitments and contingencies | ||
2020 | $ 8,534 | ¥ 59,420 |
2021 | 2,870 | 19,978 |
2022 | 682 | 4,746 |
2023 | 39 | 272 |
2024 and thereafter | 51 | 354 |
Total | $ 12,176 | ¥ 84,770 |
Commitments and contingencies_3
Commitments and contingencies (Details 1) - Dec. 31, 2019 ¥ in Thousands, $ in Thousands | USD ($) | CNY (¥) |
Commitments and contingencies | ||
2020 | $ 1,997 | ¥ 13,900 |
2021 | 1,681 | 11,700 |
2022 and thereafter | 229 | 1,600 |
Total | $ 3,907 | ¥ 27,200 |
Commitments and contingencies_4
Commitments and contingencies (Detail Textuals) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Commitments and contingencies | ||||
Rental expenses under operating leases | $ 15,088 | ¥ 105,038 | ¥ 131,808 | ¥ 107,911 |
Preferred shares (Details)
Preferred shares (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |||
Beginning Balance | ¥ 388,910,000 | ¥ 388,910,000 | |
Dividends declared | ¥ 0 | 0 | 8,604,000 |
Dividends paid | (8,604,000) | ||
Reversal of accretion on Series C preferred shares | (120,000,000) | ||
Conversion of preferred shares to Class A ordinary shares | (268,910,000) | ||
Ending Balance | 388,910,000 | ||
Series A preferred shares | |||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||
Beginning Balance | 18,856,000 | 18,856,000 | |
Dividends declared | 4,602,000 | ||
Dividends paid | (4,602,000) | ||
Conversion of preferred shares to Class A ordinary shares | (18,856,000) | ||
Ending Balance | 18,856,000 | ||
Series A+ preferred shares | |||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||
Beginning Balance | 3,771,000 | 3,771,000 | |
Dividends declared | 920,000 | ||
Dividends paid | (920,000) | ||
Conversion of preferred shares to Class A ordinary shares | (3,771,000) | ||
Ending Balance | 3,771,000 | ||
Series B preferred shares | |||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||
Beginning Balance | 6,283,000 | 6,283,000 | |
Dividends declared | 1,534,000 | ||
Dividends paid | (1,534,000) | ||
Conversion of preferred shares to Class A ordinary shares | (6,283,000) | ||
Ending Balance | 6,283,000 | ||
Series C redeemable convertible preferred shares | |||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||
Beginning Balance | 360,000,000 | 360,000,000 | |
Dividends declared | 1,548,000 | ||
Dividends paid | (1,548,000) | ||
Reversal of accretion on Series C preferred shares | (120,000,000) | ||
Conversion of preferred shares to Class A ordinary shares | ¥ (240,000,000) | ||
Ending Balance | ¥ 360,000,000 |
Preferred shares (Detail Textua
Preferred shares (Detail Textuals) - CNY (¥) | Oct. 15, 2015 | Sep. 06, 2015 | Oct. 24, 2016 | Mar. 16, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 19, 2018 |
Temporary Equity [Line Items] | |||||||||
Dividends declared | ¥ 0 | ¥ 0 | ¥ 8,604,000 | ||||||
Fair value per ordinary share at the commitment date | ¥ 73.80 | ||||||||
Reversal of accretion on Series C preferred shares | 120,000,000 | ||||||||
Temporary Equity, Modification Of Preferred Shares | ¥ 861,000 | ||||||||
Series A preferred shares | |||||||||
Temporary Equity [Line Items] | |||||||||
Dividends declared | 4,602,000 | ||||||||
Liquidation preference amount of preferred shares | 18,293,000 | ||||||||
Series A preferred shares | Hangzhou Handing Yuyou Share Investment Partnership (Llp) [Member] | |||||||||
Temporary Equity [Line Items] | |||||||||
Capital injection for Series A, A+ and B preferred shares (in shares) | 9,146,250 | ||||||||
Capital injection for Series A, A+ and B preferred shares | ¥ 18,293,000 | ||||||||
Preferred shares, conversion price | ¥ 1 | ||||||||
Series A+ preferred shares | |||||||||
Temporary Equity [Line Items] | |||||||||
Dividends declared | 920,000 | ||||||||
Liquidation preference amount of preferred shares | 3,658,000 | ||||||||
Series A+ preferred shares | Zhejiang Zheshang Lihai Venture Capital Partnership (Llp) And Hangzhou Lihai Hulian Venture Capital Partnership (Llp) [Member] | |||||||||
Temporary Equity [Line Items] | |||||||||
Capital injection for Series A, A+ and B preferred shares (in shares) | 1,829,250 | ||||||||
Capital injection for Series A, A+ and B preferred shares | ¥ 3,658,000 | ||||||||
Series B preferred shares | |||||||||
Temporary Equity [Line Items] | |||||||||
Dividends declared | 1,534,000 | ||||||||
Liquidation preference amount of preferred shares | 6,098,000 | ||||||||
Series B preferred shares | Zhejiang Handing Yuyou Financial Service Co., Ltd [Member] | |||||||||
Temporary Equity [Line Items] | |||||||||
Capital injection for Series A, A+ and B preferred shares (in shares) | 3,048,800 | ||||||||
Capital injection for Series A, A+ and B preferred shares | ¥ 6,098,000 | ||||||||
Series C redeemable convertible preferred shares | |||||||||
Temporary Equity [Line Items] | |||||||||
Dividends declared | ¥ 1,548,000 | ||||||||
Percentage of preferred shares original issuance price as redemption price pursuant to condition | 100.00% | ||||||||
Percentage of annual simple return added in original issuance price pursuant to condition | 15.00% | ||||||||
Percentage of number of calendar days between date shareholder acquired preferred share on which such preferred share redeemed divided by 365 days | 150.00% | ||||||||
Liquidation preference amount of preferred shares | 360,000,000 | ||||||||
Preferred shares, conversion price | ¥ 79.12 | ||||||||
Reversal of accretion on Series C preferred shares | ¥ 120,000,000 | ||||||||
Series C redeemable convertible preferred shares | Hefei Zhongan Runxin Fund Investment Partnership (Llp), Suzhou Weixin Zhonghua Investment Partnership (Llp) And Wenjing Yisheng Investment Co., Ltd. [Member] | |||||||||
Temporary Equity [Line Items] | |||||||||
Issuance of Series C redeemable convertible preferred shares (net of nil issuance costs) (in shares) | 3,074,400 | ||||||||
Issuance of Series C redeemable convertible preferred shares (net of nil issuance costs) | ¥ 240,000,000 | ||||||||
Class A ordinary shares | IPO | |||||||||
Temporary Equity [Line Items] | |||||||||
Number of convertible preferred shares | 17,098,700 |
Business combination (Details)
Business combination (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | 36 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2019CNY (¥) | |
Business combination | |||||
Opening balance | ¥ 5,812 | ||||
Goodwill acquired | ¥ 5,812 | ||||
Goodwill disposed | ¥ 0 | ||||
Closing balance | $ 835 | ¥ 5,812 | ¥ 5,812 | ¥ 5,812 |
Business combination (Detail Te
Business combination (Detail Textuals) ¥ in Thousands, $ in Thousands | 1 Months Ended | |||||
May 24, 2018CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Jun. 06, 2018CNY (¥) | Dec. 31, 2017USD ($) | |
Business Acquisition [Line Items] | ||||||
Goodwill recognized | $ 835 | ¥ 5,812 | ¥ 5,812 | |||
Hangzhou Jiujiu Financial Information Service Limited | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of equity interest | 70.00% | |||||
Amount of consideration for acquisition | ¥ 4,500 | |||||
Goodwill recognized | ¥ 3,067 | |||||
Rymo Technology Industry Limited | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of equity interest | 100.00% | |||||
Goodwill recognized | ¥ 2,745 |
Restricted net assets (Detail T
Restricted net assets (Detail Textuals) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Restricted net assets | |||
Amount include paid in capital and statutory reserve funds | $ 37,804 | ¥ 263,182 | ¥ 246,236 |
Percentage of statutory reserve of registered capital | 50.00% |