Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Entity Registrant Name | Weidai Ltd. |
Entity Central Index Key | 0001734902 |
Entity Current Reporting Status | Yes |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Non-accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2018 |
Amendment Flag | false |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Shell Company | false |
Class A ordinary shares | |
Entity Common Stock, Shares Outstanding | 35,375,777 |
Class B ordinary shares | |
Entity Common Stock, Shares Outstanding | 35,071,400 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 1,741,911 | $ 253,350 | ¥ 1,765,572 |
Restricted cash | 1,619,937 | 235,610 | 1,092,921 |
Loans and advances, net (net of allowance of RMB404,930 and RMB764,323 (US$111,166) as of December 31, 2017 and 2018, respectively) | 1,482,368 | 215,602 | 1,938,492 |
Short-term investments | 4,100 | 596 | 8,500 |
Prepaid expenses and other assets | 560,165 | 81,474 | 433,597 |
Amounts due from related parties | 21,797 | 3,170 | 9,168 |
Total current assets | 5,430,278 | 789,802 | 5,248,250 |
Non-current assets: | |||
Restricted cash | 19,368 | 2,817 | 4,000 |
Long-term investments | 13,333 | 1,939 | 359,333 |
Loans and advances, net (net of allowance of RMB1,360 and RMB6,027 (US$877) as of December 31, 2017 and 2018, respectively) | 421,564 | 61,314 | 390,171 |
Prepaid expenses and other assets | 7,606 | 1,106 | 8,048 |
Property, equipment and software, net | 88,731 | 12,905 | 99,433 |
Goodwill | 5,812 | 845 | |
Deferred tax assets | 329,796 | 47,967 | 158,566 |
Total non-current assets | 886,210 | 128,893 | 1,019,551 |
TOTAL ASSETS | 6,316,488 | 918,695 | 6,267,801 |
Current liabilities (including current liabilities of the consolidated VIE and subsidiaries without recourse to the primary beneficiary of RMB4,633,990 and RMB3,570,407 (US$519,294) as of December 31, 2017 and 2018, respectively): | |||
Short-term borrowings | 200,000 | ||
Payable to institutional funding partners and online investors | 1,005,236 | 146,206 | 1,770,681 |
Current account with online investors and borrowers | 2,005,605 | 291,703 | 1,883,446 |
Income tax payable | 70,679 | 10,280 | 243,338 |
Accrued expenses and other liabilities | 501,439 | 72,931 | 461,295 |
Amounts due to related parties | 28,728 | 4,179 | 62,900 |
Deferred revenue | 11,962 | 1,740 | 12,330 |
Total current liabilities | 3,623,649 | 527,039 | 4,633,990 |
Non-current liabilities (including non-current liabilities of the consolidated VIE and subsidiaries without recourse to the primary beneficiary of RMB457,724 and RMB475,613 (US$69,175) as of December 31, 2017 and 2018, respectively): | |||
Payable to institutional funding partners and online investors | 450,160 | 65,473 | 416,118 |
Deferred revenue | 11,343 | 1,650 | 887 |
Other non-current liabilities | 14,110 | 2,052 | 40,719 |
Total non-current liabilities | 475,613 | 69,175 | 457,724 |
Total liabilities | 4,099,262 | 596,214 | 5,091,714 |
Commitments and contingencies | |||
Mezzanine equity: | |||
Total mezzanine equity | 388,910 | ||
Shareholders' equity | |||
Ordinary shares | 1 | ||
Additional paid-in capital | 1,170,956 | 170,308 | 468,352 |
Accumulated other comprehensive loss | (2,700) | (393) | |
(Accumulated deficit)/retained earnings | 1,040,443 | 151,326 | 318,824 |
Total Weidai Ltd. shareholders' equity | 2,208,700 | 321,241 | 787,177 |
Noncontrolling interests | 8,526 | 1,240 | |
Total shareholders' equity | 2,217,226 | 322,481 | 787,177 |
TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY | 6,316,488 | 918,695 | 6,267,801 |
Series A preferred shares | |||
Mezzanine equity: | |||
Total mezzanine equity | 18,856 | ||
Series A+ preferred shares | |||
Mezzanine equity: | |||
Total mezzanine equity | 3,771 | ||
Series B preferred shares | |||
Mezzanine equity: | |||
Total mezzanine equity | 6,283 | ||
Series C redeemable convertible preferred shares | |||
Mezzanine equity: | |||
Total mezzanine equity | 360,000 | ||
Class A ordinary shares | |||
Shareholders' equity | |||
Ordinary shares | 0 | $ 0 | ¥ 0 |
Class B ordinary shares | |||
Shareholders' equity | |||
Ordinary shares | 1 | ||
Total shareholders' equity | ¥ 1 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | Dec. 31, 2017$ / shares |
Allowance for loans and advances, current | ¥ 764,323 | $ 111,166 | ¥ 404,930 | |
Allowance for loans and advances, non current | 6,027 | 877 | 1,360 | |
Current liabilities of the consolidated VIE and subsidiaries without recourse to the primary beneficiary | 3,570,407 | 519,294 | 4,633,990 | |
Non-current liabilities of the consolidated VIE and subsidiaries without recourse to the primary beneficiary | ¥ 475,613 | $ 69,175 | ¥ 457,724 | |
Common stock, par value (in dollars per share) | $ / shares | $ 0.000002 | $ 0.000002 | ||
Common stock, shares authorized | 24,982,901,300 | |||
Common stock, share issued | 48,392,050 | |||
Common stock, share outstanding | 48,392,050 | |||
Series A preferred shares | ||||
Mezzanine equity par value (in dollars per share) | $ / shares | 0.000002 | |||
Mezzanine equity, authorized shares | 9,146,250 | |||
Mezzanine equity, shares issued | 9,146,250 | |||
Mezzanine equity, shares outstanding | 9,146,250 | |||
Series A+ preferred shares | ||||
Mezzanine equity par value (in dollars per share) | $ / shares | 0.000002 | |||
Mezzanine equity, authorized shares | 1,829,250 | |||
Mezzanine equity, shares issued | 1,829,250 | |||
Mezzanine equity, shares outstanding | 1,829,250 | |||
Series B preferred shares | ||||
Mezzanine equity par value (in dollars per share) | $ / shares | 0.000002 | |||
Mezzanine equity, authorized shares | 3,048,800 | |||
Mezzanine equity, shares issued | 3,048,800 | |||
Mezzanine equity, shares outstanding | 3,048,800 | |||
Series C redeemable convertible preferred shares | ||||
Mezzanine equity par value (in dollars per share) | $ / shares | $ 0.000002 | |||
Mezzanine equity, authorized shares | 3,074,400 | |||
Mezzanine equity, shares issued | 3,074,400 | |||
Mezzanine equity, shares outstanding | 3,074,400 | |||
Class A ordinary shares | ||||
Common stock, par value (in dollars per share) | ¥ / shares | ¥ 0.000002 | ¥ 0.000002 | ||
Common stock, share issued | 35,375,777 | 35,375,777 | ||
Common stock, share outstanding | 35,375,777 | 35,375,777 | ||
Class B ordinary shares | ||||
Common stock, par value (in dollars per share) | ¥ / shares | ¥ 0.000002 | ¥ 0.000002 | ||
Common stock, share issued | 35,071,400 | 35,071,400 | ||
Common stock, share outstanding | 35,071,400 | 35,071,400 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | Dec. 31, 2016CNY (¥)¥ / sharesshares | |
Net revenues: | ||||
Services and other revenue | ¥ 204,953 | |||
Financing income | ¥ 402,750 | $ 58,578 | ¥ 303,292 | 9,053 |
Less: Funding costs | (156,138) | (22,709) | (39,056) | (2,439) |
Net financing income | 246,612 | 35,869 | 264,236 | 6,614 |
Business related taxes and surcharges | (20,623) | (2,999) | (15,981) | (6,484) |
Total net revenues | 3,913,474 | 569,192 | 3,545,430 | 1,761,380 |
Provision for loans and advances | (751,572) | (109,312) | (484,063) | (144,617) |
Net revenues after provision for loans and advances | 3,161,902 | 459,880 | 3,061,367 | 1,616,763 |
Operating costs and expenses: | ||||
Provision for financial guarantee liabilities | (21,712) | (3,158) | ||
Origination and servicing for the years ended December 31, 2017 and 2018, respectively) | (1,757,935) | (255,681) | (1,784,914) | (993,623) |
Sales and marketing (including related party amounts of RMB3,264, RMB7,978 and RMB9,631 (US$1,401) for the years ended December 31, 2016, 2017 and 2018, respectively) | (221,117) | (32,160) | (273,838) | (71,139) |
General and administrative (including related party amounts of RMB179, RMB21,387 and RMB276 (US$40) for the years ended December 31, 2016, 2017 and 2018, respectively) | (379,415) | (55,184) | (316,772) | (117,004) |
Research and development | (139,318) | (20,263) | (100,966) | (56,142) |
Total operating costs and expenses | (2,519,497) | (366,446) | (2,476,490) | (1,237,908) |
Income from operations | 642,405 | 93,434 | 584,877 | 378,855 |
Interest income, net | 66,791 | 9,714 | 30,303 | 13,648 |
Government subsidies | 70,351 | 10,232 | 53,616 | 4,653 |
Other expense, net | (15,288) | (2,224) | (772) | (997) |
Net income before income taxes | 764,259 | 111,156 | 668,024 | 396,159 |
Income tax expenses | (159,629) | (23,217) | (193,203) | (105,130) |
Net income | 604,630 | 87,939 | 474,821 | 291,029 |
Net income attributable to noncontrolling interests | (3,011) | (438) | ||
Net income attributable to Weidai Ltd.'s shareholders | 601,619 | 87,501 | 474,821 | 291,029 |
Dividends declared to preferred shareholders | (8,604) | |||
Modification of Series A, A+ and B preferred shares | 861 | |||
Accretion to redemption value of Series C redeemable convertible preferred shares | (120,000) | |||
Reversal of accretion on Series C preferred shares | 120,000 | 17,453 | ||
Net income and comprehensive income attributable to ordinary shareholders | ¥ 721,619 | $ 104,954 | ¥ 466,217 | ¥ 170,168 |
Earnings per share: | ||||
Basic | (per share) | ¥ 10.93 | $ 1.59 | ¥ 7.25 | ¥ 2.60 |
Diluted | (per share) | ¥ 10.93 | $ 1.59 | ¥ 7.25 | ¥ 2.60 |
Shares used in earnings per share computation: | ||||
Basic (in shares) | shares | 50,954,061 | 50,954,061 | 48,392,050 | 48,392,050 |
Diluted (in shares) | shares | 50,954,061 | 50,954,061 | 51,466,450 | 48,392,050 |
Other comprehensive loss | ||||
Foreign currency translation adjustment | ¥ (2,700) | $ (393) | ||
Comprehensive income | 601,930 | 87,546 | ¥ 474,821 | ¥ 291,029 |
Comprehensive income attributable to noncontrolling interests | (3,011) | (438) | ||
Comprehensive income attributable to Weidai Ltd.'s shareholders | 598,919 | 87,108 | 474,821 | 291,029 |
Dividends declared to preferred shareholders | (8,604) | |||
Modification of Series A preferred shares | (861) | |||
Accretion to redemption value of Series C redeemable convertible preferred shares | (120,000) | |||
Reversal of accretion on Series C preferred shares | 120,000 | 17,453 | ||
Comprehensive income attributable to ordinary shareholders | 718,919 | 104,561 | 466,217 | 170,168 |
Loan facilitation services | ||||
Net revenues: | ||||
Services and other revenue | 3,155,721 | 458,981 | 2,691,953 | 1,410,246 |
Post facilitation services | ||||
Net revenues: | ||||
Services and other revenue | 342,052 | 49,749 | 300,185 | 146,051 |
Other revenues | ||||
Net revenues: | ||||
Services and other revenue | ¥ 189,712 | $ 27,592 | ¥ 305,037 | ¥ 204,953 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parentheticals) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Net revenues: | ||||
Origination and servicing expenses | ¥ 162,853 | $ 23,686 | ¥ 260,026 | ¥ 177,210 |
Sales and marketing expenses | 9,631 | 1,401 | 7,978 | 3,264 |
General and administrative expenses | 276 | 40 | 21,387 | 179 |
Loan facilitation services | ||||
Net revenues: | ||||
Net revenues from related party | 781 | 114 | 851 | 833 |
Other revenues | Beijing Lezhihui Technology Co., Ltd. | ||||
Net revenues: | ||||
Net revenues from related party | ¥ 13,362 | $ 1,943 | ¥ 3,740 | ¥ 2,179 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY ¥ in Thousands, $ in Thousands | Class A ordinary sharesshares | Class B ordinary sharesCNY (¥)shares | Ordinary sharesCNY (¥)shares | Preferred SharesCNY (¥)shares | Additional paid-in capitalCNY (¥) | Additional paid-in capitalUSD ($) | Subscription receivablesCNY (¥) | Accumulated other comprehensive lossCNY (¥) | Accumulated other comprehensive lossUSD ($) | Retained earningsCNY (¥) | Retained earningsUSD ($) | Total Weidai Ltd shareholders' equityCNY (¥) | Total Weidai Ltd shareholders' equityUSD ($) | Noncontrolling interestsCNY (¥) | Noncontrolling interestsUSD ($) | CNY (¥) | USD ($) |
Balance at Dec. 31, 2015 | ¥ 1 | ¥ 464,075 | ¥ (121,951) | ¥ (293,937) | ¥ 48,188 | ¥ 48,188 | |||||||||||
Balance (in shares) at Dec. 31, 2015 | shares | 48,392,050 | 14,024,300 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Capital injection by shareholders | ¥ 121,951 | 121,951 | ¥ 2,000 | 123,951 | |||||||||||||
Modification of Series A, A+ and B preferred shares | (28,049) | (861) | (28,910) | (28,910) | |||||||||||||
Modification of Series A, A+ and B preferred shares (in shares) | shares | (14,024,300) | ||||||||||||||||
Accretion to redemption value of Series C redeemable convertible preferred shares | (120,000) | (120,000) | (120,000) | ||||||||||||||
Modification of Series A preferred shares | (861) | ||||||||||||||||
Share-based compensation | 32,326 | 32,326 | 32,326 | ||||||||||||||
Net income | 291,029 | 291,029 | 291,029 | $ 291,029 | |||||||||||||
Reversal of accretion on Series C preferred shares | (120,000) | (120,000) | (120,000) | ||||||||||||||
Balance at Dec. 31, 2016 | ¥ 1 | 468,352 | (123,769) | 344,584 | 2,000 | 346,584 | |||||||||||
Balance (in shares) at Dec. 31, 2016 | shares | 48,392,050 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Dividends declared | (32,228) | (32,228) | (32,228) | ||||||||||||||
Acquisition of noncontrolling interests | (2,000) | (2,000) | |||||||||||||||
Net income | 474,821 | 474,821 | 474,821 | ||||||||||||||
Balance at Dec. 31, 2017 | ¥ 1 | 468,352 | 318,824 | 787,177 | 787,177 | ||||||||||||
Balance (in shares) at Dec. 31, 2017 | shares | 48,392,050 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Modification of Series A preferred shares (in shares) | shares | 9,146,250 | ||||||||||||||||
Conversion of ordinary shares to Class B ordinary shares | ¥ 1 | ¥ (1) | |||||||||||||||
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 | ¥ 0 | ||||||||||||||||
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) | 268,910 | 250,054 | 250,054 | |||||||||||||
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 | 286,403 | 286,403 | ||||||||||||||
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 | ||||||||||||||||
Share-based compensation | 147,291 | 147,291 | 147,291 | ||||||||||||||
Establishment of a subsidiary | 4,900 | 4,900 | |||||||||||||||
Acquisition of a subsidiary | 615 | 615 | |||||||||||||||
Foreign currency translation adjustment | ¥ (2,700) | (2,700) | (2,700) | ||||||||||||||
Net income | 601,619 | 601,619 | 3,011 | 604,630 | 87,939 | ||||||||||||
Balance at Dec. 31, 2018 | ¥ 1 | ¥ 1,170,956 | $ 170,308 | ¥ (2,700) | $ (393) | ¥ 1,040,443 | $ 151,326 | ¥ 2,208,700 | $ 321,241 | ¥ 8,526 | $ 1,240 | ¥ 2,217,226 | $ 322,481 | ||||
Balance (in shares) at Dec. 31, 2018 | shares | 35,375,777 | 35,071,400 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Cash flows from operating activities: | ||||
Net income | ¥ 604,630 | $ 87,939 | ¥ 474,821 | ¥ 291,029 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Provision for loans and advances | 751,572 | 109,312 | 484,063 | 144,617 |
Depreciation and amortization | 42,431 | 6,171 | 12,747 | 3,294 |
Loss on disposal of property and equipment | 7,305 | 1,062 | ||
Share-based compensation expenses | 106,571 | 15,500 | 40,719 | 32,326 |
Loss on disposals of cost method investments | 963 | 140 | ||
Changes in operating assets and liabilities: | ||||
Prepaid expenses and other assets | (67,408) | (9,804) | (24,895) | (311,126) |
Amounts due from related parties | (12,629) | (1,837) | 65,032 | (73,687) |
Deferred tax assets | (171,230) | (24,905) | (124,887) | (31,271) |
Current account with online investors and borrowers | 122,159 | 17,767 | 993,254 | 635,863 |
Income tax payable | (172,659) | (25,112) | 131,888 | 94,461 |
Accrued expenses and other liabilities | 30,514 | 4,438 | 231,062 | 148,169 |
Amounts due to related parties | (34,172) | (4,970) | 1,352 | (19,930) |
Deferred revenue | 6,727 | 978 | (1,079) | 10,643 |
Net cash provided by operating activities | 1,214,774 | 176,679 | 2,284,077 | 924,388 |
Cash flows from investing activities: | ||||
Purchase of short-term investments | (3,687,100) | (536,266) | (11,423,820) | (5,658,220) |
Redemption of short-term investments | 3,691,500 | 536,906 | 11,415,320 | 5,742,220 |
Payments to originate loans and advances | (7,430,624) | (1,080,736) | (6,885,314) | (1,268,593) |
Proceeds from collection of loans and advances | 7,103,783 | 1,033,202 | 4,360,261 | 913,204 |
Addition of long-term investments | (1,513,040) | (220,063) | (346,000) | (74,733) |
Redemption of long-term investments | 1,563,040 | 227,335 | 61,400 | |
Disposals of cost method investments | 295,037 | 42,911 | ||
Cash paid for business combinations | (4,500) | (654) | ||
Cash and cash equivalents acquired from business combinations | 8,045 | 1,170 | ||
Purchase of property, equipment and software | (32,609) | (4,743) | (62,368) | (52,329) |
Net cash used in investing activities | (6,468) | (938) | (2,941,921) | (337,051) |
Cash flows from financing activities: | ||||
Proceeds from short-term borrowings | (200,000) | (29,089) | 200,000 | |
Proceeds from institutional funding partners and online investors | 3,399,266 | 494,403 | 4,627,087 | 165,212 |
Payments to institutional funding partners and online investors | (4,193,719) | (609,951) | (2,587,336) | (70,549) |
Proceeds from IPO and underwriters' exercise of over-allotment, net of issuance costs | 302,670 | 44,021 | 361,951 | |
Contribution from noncontrolling interests | 4,900 | 713 | 2,000 | |
Distribution to noncontrolling interests | (2,000) | |||
Payments of dividends to shareholders | (32,228) | |||
Net cash provided by (used in) financing activities | (686,883) | (99,903) | 2,205,523 | 458,614 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (2,700) | (393) | ||
Net increase in cash, cash equivalents and restricted cash | 518,723 | 75,445 | 1,547,679 | 1,045,951 |
Cash, cash equivalents and restricted cash at the beginning of the year | 2,862,493 | 416,332 | 1,314,814 | 268,863 |
Cash, cash equivalents and restricted cash at the end of the year | 3,381,216 | 491,777 | 2,862,493 | 1,314,814 |
Supplemental disclosure of cash flow information: | ||||
Interest paid | 161,735 | 23,523 | 43,524 | 2,438 |
Income taxes paid | 494,928 | 71,984 | ¥ 219,988 | 41,935 |
Non-cash activities: | ||||
Modification of Series A, A+ and B preferred shares | (861) | |||
Accretion on Series C convertible redeemable preferred shares to redemption value | 120,000 | 17,453 | ¥ (120,000) | |
Deferred IPO costs included in accrued expenses and other liabilities | ¥ 16,267 | $ 2,366 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Reconciliation of cash, cash equivalents and restricted cash) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) |
Reconciliation of cash, cash equivalents and restricted cash | ||||||
Cash and cash equivalents | ¥ 1,741,911 | $ 253,350 | ¥ 1,765,572 | ¥ 1,314,814 | ||
Restricted cash - current | 1,619,937 | 235,610 | 1,092,921 | |||
Restricted cash - non-current | 19,368 | 2,817 | 4,000 | |||
Total cash, cash equivalents and restricted cash shown in the statements of cash flows | ¥ 3,381,216 | $ 491,777 | ¥ 2,862,493 | $ 416,332 | ¥ 1,314,814 | ¥ 268,863 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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. 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 16). As of December 31, 2018, the Company’s subsidiaries, VIE and primary subsidiaries of VIE are as follows: Percentage of legal ownership Date of Place of by the Principal Entity incorporation incorporation Company activities Subsidiaries Weidai HK February 5, 2018 Hong Kong 100 % Investment holding Weidai Co. March 15, 2018 PRC 100 % Investment holding Rymo Technology Industry Limited September 22, 2009 Hong Kong 100 % Investment holding VIE Weidai (Hangzhou) December 25, 2014 PRC Nil Online finance marketplace business Entity Date of Place of Percentage Principal activities Subsidiaries of the VIE 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 Jingwei Assets Management Co., Ltd. August 9, 2016 PRC Nil Assets management Fuzhou Weidai Online Microcredit Co., Ltd. June 23, 2017 PRC Nil Micro-loan business Khorgos Micro-car Auction Information Technology Co., Ltd. May 18, 2017 PRC Nil Second-hand car operation Khorgos Micron Internet Technology Co., Ltd. August 23, 2017 PRC Nil Technology development and service Khorgos Weiyi Internet Technology Co., Ltd. August 23, 2017 PRC Nil Technology development and service 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 Micro-car Auction Co., Ltd. June 21, 2018 PRC Nil Second-hand car operation 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 VIE and the subsidiaries of the VIE. On April 10, 2018, the Company entered into share pledge agreements with the nominee shareholders of the VIE through its wholly-owned subsidiary in the PRC, for the equity interests in the VIE held by the shareholders of the VIE. In addition, the Company entered into a power of attorney and an exclusive call option agreement with the VIE and nominee shareholders of the VIE 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 VIE and to acquire the equity interests in the VIE when permitted by the PRC laws, respectively. The Company agreed to provide unlimited financial support to the VIE for its operations which obligated the Company to absorb losses of the VIE that could potentially be significant to the VIE. 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 (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 VIE that potentially could be significant to the VIE. Despite the lack of technical majority ownership, the Company has effective control of the VIE through a series of VIE Agreements and a parent-subsidiary relationship exists between the Company and the VIE. Through the VIE Arrangements, the shareholders of the VIE effectively assigned all of their voting rights underlying their equity interest in the VIE 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 VIE that potentially could be significant to the VIE. Lastly, through the financial support undertaking letter, the Company has the obligation to absorb losses of the VIE that could potentially be significant to the VIE. Therefore, the Company is considered the primary beneficiary of the VIE and consolidates the VIE 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 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) (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). This agreement is effective and irrevocable as long as the nominee shareholder remains a shareholder of Weidai (Hangzhou). (2) Exclusive Call Option Agreement: Pursuant to the exclusive call option agreement entered into amongst the Company, Weidai (Hangzhou)’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 VIE, or any or all of the assets of VIE, to Weidai Co., or its designees. The purchase price of the equity interests in the VIE is equal to the minimum price required by PRC law. The purchase price of the VIE’s 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 VIE 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 VIE 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), 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 VIE 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 nominee shareholders, each nominee shareholder of the VIE pledged all of their respective equity interests in the VIE to Weidai Co. as continuing first priority security interest to guarantee the performance of these nominee shareholders and the VIE’s 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) 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) 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 VIE. 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 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. (5) Financial support undertaking letter: Pursuant to the financial support undertaking letter, the Company is obligated to provide unlimited financial support to the VIE, to the extent permissible under the applicable PRC laws and regulations. The Company will not request repayment of the loans or borrowings if the VIE 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 VIE is in compliance with PRC laws and regulations; (ii) the contractual arrangements with the VIE 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 VIE 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 VIE. 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 VIE and subsidiaries of VIE included in the Company’s consolidated balance sheets: As of December 31, 2017 2018 RMB RMB US$ Current assets: Cash and cash equivalents 1,765,572 1,419,293 206,428 Restricted cash 1,092,921 1,619,937 235,610 Loans and advances, net 1,938,492 1,482,368 215,602 Short-term investments 8,500 4,100 596 Prepaid expenses and other assets 433,597 553,251 80,466 Amounts due from related parties 9,168 42,680 6,208 Total current assets 5,248,250 5,121,629 744,910 Non-current assets: Restricted cash 4,000 19,368 2,817 Long-term investments 359,333 13,333 1,939 Loans and advances, net 390,171 421,564 61,314 Prepaid expenses and other assets 8,048 7,606 1,106 Property, equipment and software, net 99,433 88,684 12,899 Goodwill - 3,067 446 Deferred tax assets 158,566 329,796 47,967 Total non-current assets 1,019,551 883,418 128,488 Total assets 6,267,801 6,005,047 873,398 As of December 31, 2017 2018 RMB RMB US$ Current liabilities: Short-term borrowings 200,000 - - Payable to institutional funding partners and online investors 1,770,681 1,005,236 146,206 Current account with online investors and borrowers 1,883,446 2,005,605 291,703 Income tax payable 243,338 59,461 8,648 Accrued expenses and other liabilities 461,295 459,415 66,820 Amounts due to related parties 62,900 452,518 65,816 Deferred revenue 12,330 11,962 1,740 Total current liabilities 4,633,990 3,994,197 580,933 Non-current liabilities: Payable to institutional funding partners and online investors 416,118 450,160 65,473 Deferred revenue 887 11,343 1,650 Other non-current liabilities 40,719 14,110 2,052 Total non-current liabilities 457,724 475,613 69,175 Total liabilities 5,091,714 4,469,810 650,108 The table sets forth the results of operations of the VIE and subsidiaries of VIE included in the Company’s consolidated statements of comprehensive income: Year ended December 31, 2016 2017 2018 RMB RMB RMB US$ Net revenues 1,761,380 3,545,430 3,917,701 569,806 Net income 291,029 474,821 231,872 33,724 The table sets forth the cash flows of the VIE and subsidiaries of VIE included in the Company’s consolidated statements of cash flows: Year ended December 31, 2016 2017 2018 RMB RMB RMB US$ Net cash provided by operating activities 924,388 2,284,077 1,204,835 175,236 Net cash used in investing activities (337,051 ) (2,941,921 ) (9,916 ) (1,442 ) Net cash provided by (used in) financing activities 458,614 2,205,523 (998,814 ) (145,271 ) As of December 31, 2017 and 2018, there was no pledge or collateralization of the assets of the VIE and its subsidiaries. The amount of the net assets of the VIE and subsidiaries of VIE was RMB1,176,087 and RMB1,535,237 (US$223,290) as of December 31, 2017 and 2018, respectively. The creditors of the VIE and subsidiaries of VIE’s 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 VIE and subsidiaries of VIE during the years presented. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
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, VIE and VIE’s subsidiaries for which the Company is the primary beneficiary. All significant inter-company balances and transactions between the Company, its subsidiaries, VIE and VIE’s 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, allowance for loans and advances, identification of separate accounting units and estimating the best estimate selling price of each deliverable in the Company’s revenue arrangements, guarantee liabilities, useful life of long-lived assets, share-based compensation, valuation allowance for deferred tax assets, uncertain tax positions and fair value of preferred shares and short-term investments, 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 RMB6.8755 per US$1.00 on December 31, 2018, the last business day in fiscal year 2018, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be converted, realized or settled into US$ 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, 2017, and 2018, the restricted cash related to cash not yet disbursed amounted to RMB1,083,421 and RMB1,583,178 (US$230,264), respectively; and (ii) cash held by banks as guarantee deposits paid on contracts and other restrictions amounted to RMB13,500 and RMB56,127 (US$8,163) as of December 31, 2017 and 2018, respectively. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash Short-term investments All highly liquid investments with original maturities of greater than three months, but less than twelve months, are classified as short-term investments. Investments that are expected to be realized in cash during the next twelve months are also included in short-term investments. The Company accounts for short-term investments in accordance with ASC topic 320, Investments—Debt and Equity Securities (“ASC 320”) The securities that the Company has the positive intent and the ability to hold to maturity are classified as held-to-maturity securities and stated at amortized cost. The securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities. Unrealized holding gains and losses for trading securities are included in earnings. Investments not classified as trading or as held-to-maturity are classified as available-for-sale securities. Available-for-sale investments are reported at fair value, with unrealized gains and losses recorded in accumulated other comprehensive income. Realized gains or losses are included in earnings during the period in which the gain or loss is realized. An impairment loss on the available-for-sale securities is recognized in the consolidated statements of comprehensive income when the decline in value is determined to be other-than-temporary. 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 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, The Company derecognizes the acquired non-performing loans when the non-performing loans are 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 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 Contingencies 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, nil and RMB21,712 (US$3,158) for the years ended December 31, 2016, 2017 and 2018. The maximum potential undiscounted future payment which the Company would be required to make under its guarantee obligation is RMB551,170 and RMB2,938,661 (US$427,411) as of December 31, 2017 and 2018, respectively. Long-term Investments The Company’s long-term investments consist of time deposits with stated maturities of greater than 365 days and cost method investments. In accordance with ASC subtopic 325-20 (“ASC 325-20”), Investments-Other: Cost Method Investments Business combinations The Company accounts for its business combinations using the purchase method of accounting in accordance with ASC 805, Business Combinations Business Combinations (Topic 802): Clarifying the Definition of 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 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 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 ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Ø Level 1 - Observable inputs that reflect quoted prices in active markets for identical assets or liabilities. Ø Level 2 - Include other inputs that are directly or indirectly observable in the marketplace. Ø 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, 2017 using Total fair value at December 31, 2017 Quoted prices in (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) RMB RMB RMB RMB Fair value disclosure Long-term time deposits 44,322 — 44,322 — Loans and advances, net – non-current 390,171 — 390,171 — Long-term payable to institutional funding partners and online investors 383,043 — 383,043 — Fair value measurements Recurring Recurring short-term investments Available-for-sale debt securities 8,500 — 8,500 — Fair value measurement or disclosure at December 31, 2018 using Total fair value at December 31, 2018 Quoted prices in (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) RMB US$ RMB RMB RMB Fair value disclosure Loans and advances, net – non-current 421,564 61,314 — 421,564 — Long-term payable to institutional funding partners and online investors 419,039 60,947 — 419,039 — Fair value measurements Recurring Recurring short-term investments Available-for-sale debt securities 4,100 596 — 4,100 — The Company had no financial assets and liabilities measured and recorded at fair value on a non-recurring basis as of December 31, 2017 and 2018. 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: Category: Estimated Useful Life Estimated 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, 2016, 2017 and 2018. 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, 2016, 2017 and 2018. The Company recognized research and development expenses amounted to RMB56,142, RMB100,966 and RMB139,318 (US$20,263) for the years ended December 31, 2016, 2017 and 2018, 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. For each successful loan facilitation, the Company earns a loan facilitation fee and a recurring service fee for post facilitation services, including provision of global positioning system (“GPS”) automobile tracking services, collection services and sending short-message-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’s arrangements with investors 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 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 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 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 (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 when 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 RMB52,374, RMB65,915 and RMB268,813 (US$39,097) for the years ended December 31, 2016, 2017 and 2018, respectively. For arrangements where the Company originates loans to the borrowers and 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, RMB7,453 and RMB10,746 (US$1,563) for the years ended December 31, 2016, 2017 and 2018, respectively. Net financing income The Company earns interest income arising from loans originated by the Company. The Company records interest income net of funding costs (i.e. interest paid to investors) over the life of the underlying loan principal using the effective interest method on unpaid principal amounts in accordance with ASC 310, Receivables Other revenues The Company also receives various services fees which are contingent on future events, such as borrower late payment penalties, loan collection fees, and net revenues from sale of collateral. These contingent fees are not recognized until the contingencies are resolved and the fees become fixed and determined, which also coincide with when the services are performed and collectability is reasonably assured. These fees are classified within other revenues in the consolidated statements of comprehensive income. Other revenues consist of: Year Ended December 31, 2016 2017 2018 RMB RMB RMB US$ Late payment penalties and loan collection fees 158,154 218,675 113,313 16,481 Others 46,799 86,362 76,399 11,111 Total 204,953 305,037 189,712 27,592 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 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 expenses primarily consist of customer acquisition costs, employee salaries and benefits for facilitating the loan origination, risk |
Concentration of risks
Concentration of risks | 12 Months Ended |
Dec. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
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, 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, 2016, 2017 and 2018. 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 depreciation of approximately 6.4% in the year ended December 31,2016, appreciation of 5.8% in the year ended December 31, 2017 and depreciation of 5.4% in the year ended December 31, 2018. 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, 2018 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
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 2017 2018 RMB RMB US$ Current portion: Loans receivable (i) Auto-backed loans 1,105,169 233,893 34,020 Other secured loans 104,292 139,939 20,353 Unsecured loans 512,616 587,211 85,406 Sub-total 1,722,077 961,043 139,779 Acquired non-performing loans (ii) Auto-backed loans 438,942 723,404 105,215 Other secured loans 58,961 364,424 53,003 Unsecured loans 120,955 197,820 28,771 Sub-total 618,858 1,285,648 186,989 Advances to borrowers (iii) 2,487 - - Total current loans and advances 2,343,422 2,246,691 326,768 Allowance for loans and advances (404,930 ) (764,323 ) (111,166 ) Loans and advances, net 1,938,492 1,482,368 215,602 Non-current portion: Loans receivable (i) Auto-backed loans 230,634 176,923 25,732 Other secured loans 160,733 196,409 28,567 Unsecured loans 164 54,259 7,892 Total non-current loans and advances 391,531 427,591 62,191 Allowance for loans and advances (1,360 ) (6,027 ) (877 ) Loans and advances, net 390,171 421,564 61,314 (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; (iii) Advances to borrowers are advances provided to borrowers with urgent financing needs, before online investors fully fund the loans. The following table sets forth the activities in the allowance for loans and advances for the ended , 2016, 2017 and 2018: 2016 Loans receivable Acquired non-performing loans Auto- backed Other Unsecured Auto- backed Other Unsecured Total RMB RMB RMB RMB RMB RMB RMB Beginning balance - - - (9,705 ) - - (9,705 ) Current year provision - - - (142,715 ) (1,530 ) (372 ) (144,617 ) Recoveries of loans previously written off - - - (9,268 ) - - (9,268 ) Write-offs - - - 94,532 1,530 - 96,062 Ending balance - - - (67,156 ) - (372 ) (67,528 ) 2017 Loans receivable Acquired non-performing loans Auto-backed Other Unsecured Auto-backed Other Unsecured 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 Auto-backed Other Unsecured Auto-backed Other Unsecured Total RMB RMB RMB RMB RMB RMB RMB US$ Beginning balance (5,149 ) (913 ) (64,515 ) (252,174 ) (3,755 ) (79,784 ) (406,290 ) (59,092 ) Current year provision (7,864 ) (4,427 ) 4,106 (430,213 ) (53,245 ) (259,929 ) (751,572 ) (109,312 ) Recoveries of loans previously written off - - - (27,879 ) (24 ) (355 ) (28,258 ) (4,110 ) Write-offs - - - 242,492 18,323 154,955 415,770 60,471 Ending balance (13,013 ) (5,340 ) (60,409 ) (467,774 ) (38,701 ) (185,113 ) (770,350 ) (112,043 ) The following table sets forth the aging of loans receivable as of December 31, 2017 and 2018: As of December 31, 2017 Current 1-30 31-60 61-90 91-120 121-150 151-180 181-360 Over 360 Total RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB Auto-backed loans 1,331,760 3,015 813 50 165 - - - - 1,335,803 Other secured loans 265,025 - - - - - - - - 265,025 Unsecured loans 496,726 14,050 1,614 226 118 46 - - - 512,780 Total 2,093,511 17,065 2,427 276 283 46 - - - 2,113,608 As of December 31, 2018 Current 1-30 31-60 61-90 91-120 121-150 151-180 181-360 Over 360 Total RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB US$ Auto-backed loans 383,469 15,939 3,523 3,663 578 - 496 3,148 - 410,816 59,752 Other secured loans 324,102 7,929 3,168 1,149 - - - - - 336,348 48,920 Unsecured loans 557,229 53,294 8,749 5,287 4,619 3,895 2,629 5,768 - 641,470 93,298 Total 1,264,800 77,162 15,440 10,099 5,197 3,895 3,125 8,916 - 1,388,634 201,970 |
Short-term investments
Short-term investments | 12 Months Ended |
Dec. 31, 2018 | |
Short-term Investments [Abstract] | |
Short-term investments | 5. Short-term investments As of December 31, 2017 and 2018, 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, 2016, 2017 and 2018, the Company recorded interest income from short-term investments of RMB9,552, RMB17,202 and RMB11,685 (US$1,699) in the consolidated statements of comprehensive income, respectively. |
Prepaid expenses and other asse
Prepaid expenses and other assets | 12 Months Ended |
Dec. 31, 2018 | |
Prepaid Expense and Other Assets [Abstract] | |
Prepaid expenses and other assets | 6. Prepaid expenses and other assets As of December 31, 2017 2018 RMB RMB US$ Current: Guarantee deposits 52,385 116,535 16,949 Amounts due from third-party payment platforms (i) 204,231 85,127 12,381 Prepaid rental and deposits 72,186 49,893 7,257 Others 104,795 308,610 44,887 Total 433,597 560,165 81,474 Non-current: Guarantee deposits - 2,000 291 Prepaid rental and deposits 8,048 5,606 815 Total 8,048 7,606 1,106 (i) 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, 2017 and 2018. |
Long-term investments
Long-term investments | 12 Months Ended |
Dec. 31, 2018 | |
Long-term Investments [Abstract] | |
Long-term investments | 7. Long-term investments Long-term investments consist of the following: As of December 31, 2017 2018 RMB RMB US$ Cost method investments 309,333 13,333 1,939 Time deposits 50,000 - - 359,333 13,333 1,939 |
Property, equipment and softwar
Property, equipment and software, net | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
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, 2017 2018 RMB RMB US$ Computer and electronic equipment 38,298 55,523 8,075 Leasehold improvement 38,900 46,596 6,777 Vehicles 20,985 20,615 2,998 Office furniture and equipment 6,094 4,321 628 Software 11,053 18,089 2,632 Total 115,330 145,144 21,110 Less: Accumulated depreciation and amortization (15,897 ) (56,413 ) (8,205 ) Property, equipment and software, net 99,433 88,731 12,905 Depreciation and amortization expenses of the property, equipment and software were RMB3,294, RMB12,747 and RMB42,431 (US$6,171) for the years ended December 31, 2016, 2017 and 2018, respectively. |
Short-term borrowings
Short-term borrowings | 12 Months Ended |
Dec. 31, 2018 | |
Short-term Debt [Abstract] | |
Short-term borrowings | 9. Short-term borrowings In July 2017, the subsidiaries of the VIE entered into loan agreements with Yangquan Commercial Bank Co. Ltd. (“Yangquan”), pursuant to which the subsidiaries obtained loans with an aggregate amount of RMB200,000 denominated in RMB with a term of one year and fixed annual interest rate at 5.22%. The short-term borrowing has been repaid in July, 2018 upon maturity. |
Payable to institutional fundin
Payable to institutional funding partners and online investors | 12 Months Ended |
Dec. 31, 2018 | |
Payable To Institutional Funding Partners And Online Investors [Abstract] | |
Payable to institutional funding partners and online investors | 10. Payable to institutional funding partners and online investors The following table presents payable to institutional funding partners and online investors as of December 31, 2017 and 2018: Fixed annual Rate (%) Term As of December 31, 2017 2018 RMB RMB US$ Current: Institutional funding partners 3% to 11% 7 to 12 months 523,328 390,908 56,856 Online investors 3% to 11% 2 to 12 months 1,247,353 614,328 89,350 1,770,681 1,005,236 146,206 Non-current: Institutional funding partners 3% to 11% 13 to 36 months 416,118 395,901 57,581 Online investors 5% to 13% 13 to 24 months - 54,259 7,892 416,118 450,160 65,473 The following table sets forth the contractual obligations which has not included the impact of discount of time value as of December 31, 2017 and 2018: Payment due by period Long-term borrowings and interest payable: Less than 1 year 1-2 years Greater than 2 Total As of December 31, 2017 (RMB) 259,356 256,945 189,971 706,272 As of December 31, 2018 (RMB) 485,878 412,650 54,275 952,803 As of December 31, 2018 (US$) 70,668 60,017 7,894 138,579 |
Current account with online inv
Current account with online investors and borrowers | 12 Months Ended |
Dec. 31, 2018 | |
Current Account With Online Investors And Borrowers [Abstract] | |
Current account with online investors and borrowers | 11. Current account with online investors and borrowers As of December 31, 2017 2018 RMB RMB US$ Investor deposits 1,097,259 1,461,080 212,505 Undrawn borrower funds and deposits 786,187 544,525 79,198 Total 1,883,446 2,005,605 291,703 |
Accrued expenses and other liab
Accrued expenses and other liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Accrued expenses and other liabilities | 12. Accrued expenses and other liabilities Accrued expenses and other liabilities consist of the following: As of December 31, 2017 2018 RMB RMB US$ Payroll and welfare payable 254,509 264,600 38,484 Accrued marketing expense 50,163 38,536 5,605 Other taxes payable 25,862 24,399 3,549 Others 130,761 173,904 25,293 Total 461,295 501,439 72,931 |
Interest income, net
Interest income, net | 12 Months Ended |
Dec. 31, 2018 | |
Interest Income (Expense), Net [Abstract] | |
Interest income, net | 13. Interest income, net Interest income, net consist of the following: Year ended December 31, 2016 2017 2018 RMB RMB RMB US$ Interest income 13,793 35,742 73,729 10,723 Interest expenses - (4,949 ) (5,597 ) (814 ) Bank charges (145 ) (490 ) (1,341 ) (195 ) Total 13,648 30,303 66,791 9,714 |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income taxes | 14. 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 subsidiaries incorporated in Hong Kong are 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, 2016, 2017 and 2018, 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. 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, 2018, the total amount of undistributed earnings from the PRC subsidiaries for which no withholding tax has been accrued was RMB1,041,492 (US$151,479). Super deduction on R&D”) expenses Under the EIT law of the PRC, qualified enterprises can enjoy a 150% super deduction for eligible R&D expenses in 2016 and 2017, and 175% in 2018. During the years ended December 31, 2016, 2017 and 2018, RMB40,271, RMB95,295 and RMB86,686 (US$12,608) of R&D expense was eligible for the super deduction, which accounts for an RMB5,034, RMB11,912 and RMB16,254 (US$2,364) decrease in tax expense, respectively. The Company generates substantially all of its profit before income tax in the PRC. The current and deferred components of income tax expenses appearing in the consolidated statements of comprehensive income are as follows: Year ended December 31, 2016 2017 2018 RMB RMB RMB US$ Current income tax 136,400 318,090 330,859 48,122 Deferred income tax (31,270 ) (124,887 ) (171,230 ) (24,905 ) 105,130 193,203 159,629 23,217 The principal components of the deferred tax assets are as follows: As of December 31, 2017 2018 RMB RMB US$ Deferred tax assets Allowance for loans and advances 128,885 235,415 34,240 Net operating loss carry forwards 41,875 46,550 6,770 Accruals for share-based compensation 10,180 29,637 4,311 Accruals for payroll and other costs 24,455 19,925 2,898 Less: valuation allowance (46,829 ) (1,731 ) (252 ) Balance at the end of the year 158,566 329,796 47,967 The Company operates through its subsidiaries, VIE and subsidiaries of the VIE. The valuation allowance is considered on an individual entity basis. As of December 31, 2017 and 2018, 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, VIE 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, 2016 2017 2018 RMB RMB RMB US$ Income before provision of income tax 396,159 668,024 764,259 111,156 PRC statutory income tax rate 25 % 25 % 25 % 25 % Income tax computed at statutory tax rate 99,039 167,006 191,065 27,790 Research and development super-deduction (5,034 ) (11,912 ) (16,254 ) (2,364 ) Non-deductible expenses 942 1,499 29,916 4,351 Changes in valuation allowance 10,183 36,610 (45,098 ) (6,560 ) Income tax expenses 105,130 193,203 159,629 23,217 The Company did not identify significant unrecognized tax benefits for the years ended December 31, 2016, 2017 and 2018. 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 VIE and subsidiaries of the VIE’s tax years 2014 through 2018 remain open to examination by the taxing jurisdictions. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per share | 15. Earnings per share Basic earnings per share for each of the years presented are calculated as follows: Year ended December 31, 2016 2017 2018 Ordinary Ordinary Class A Class B RMB RMB RMB US$ RMB US$ Numerator: Net income attributable to ordinary shareholders 170,168 466,217 338,385 49,216 383,234 55,739 Allocation of net income (44,428 ) (115,555 ) (164,830 ) (23,974 ) - - Numerator for computing 125,740 350,662 173,555 25,242 383,234 55,739 Denominator: Weighted average number 48,392,050 48,392,050 15,882,661 15,882,661 35,071,400 35,071,400 Earnings per share - basic 2.60 7.25 10.93 1.59 10.93 1.59 Diluted earnings per share for each of the years presented are calculated as follows: Year ended December 31, 2016 2017 2018 Ordinary Ordinary Class A Class B RMB RMB RMB US$ RMB US$ Numerator: Numerator for computing basic earnings per share 125,740 350,662 173,555 25,242 383,234 55,739 Allocation of net income attributable to Series C redeemable convertible preferred shares - 22,324 - - - - Numerator for computing diluted earnings per share 125,740 372,986 173,555 25,242 383,234 55,739 Denominator: Weighted average number of ordinary shares outstanding 48,392,050 48,392,050 15,882,661 15,882,661 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 48,392,050 51,466,450 15,882,661 15,882,661 35,071,400 35,071,400 Earnings per share - diluted 2.60 7.25 10.93 1.59 10.93 1.59 |
Share capital
Share capital | 12 Months Ended |
Dec. 31, 2018 | |
Share Capital [Abstract] | |
Share capital | 16. 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 votes 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 (US$45,368). Deferred IPO costs of RMB25,528 (US$3,713) 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. 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, 2016 and 2018. |
Related party balances and tran
Related party balances and transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related party balances and transactions | 17. 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 Information 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 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 Wenbin 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 Name of related parties Relationship with the Company 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 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 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, 2016 2017 2018 RMB RMB RMB US$ Loan facilitation service fee from: Key management and their immediate family members 833 851 742 108 Hangzhou Ruituo Technology Co., Ltd. - - 39 6 Total 833 851 781 114 Other revenues: Beijing Lezhihui Technology Co., Ltd. 2,179 3,740 13,362 1,943 Origination and servicing expenses: Beijing Lezhihui Technology Co., Ltd. 5,578 49,377 22,739 3,307 Chunan Wanglan Financial Information - - 18,077 2,629 Chunan Wenjun Financial Information - - 11,290 1,642 Chunan Wenkang Financial Information - - 9,103 1,324 Chunan Wenhai Financial Information - - 8,743 1,272 Chunan Wenbin Financial Information - - 8,455 1,230 Chunan Wenlin Financial Information - - 8,408 1,223 Chunan Wenrong Financial Information - - 8,357 1,215 Chunan Wenshe Financial Information - - 8,047 1,170 Chunan Wenbei Financial Information - - 7,717 1,122 Chunan Wensheng Financial - - 7,600 1,105 Chunan Wenyang Financial Information - - 6,924 1,007 Chunan Wangxia Financial Information - - 6,761 983 Chunan Wanglin Financial Information - - 5,133 747 Chunan Wangqi Financial Information - - 4,969 723 Chunan Wangqun Financial Information - - 4,948 720 Chunan Wangqian Financial Information - - 2,424 353 Year ended December 31, 2016 2017 2018 RMB RMB RMB US$ Chunan Yunxiu Financial Information Advisory Services Partnership (GP) - - 1,909 278 Chunan Wencai Information Advisory Services Company 87,356 99,601 - - Chunan Wangcai Information Advisory Services Company 57,833 62,496 - - Chunan Yuntong Information Advisory Services Company 3,155 2,793 - - Collecting costs to: Zhejiang Hongrui Investment Management Co., Ltd. 13,221 20,469 6,253 909 Zhejiang Ruituo Information Technology Co., Ltd. - - 4,996 727 GPS costs to: Zhejiang Qunshuo Electronics Co., Ltd 10,067 25,290 - - Total 177,210 260,026 162,853 23,686 General and administrative expenses: Consulting expenses to: Suzhou Weinxin Zhonghua Venture Capital Partnership (LLP) - 20,000 - - Welfare expenses to: Hangzhou Qiandaohuyaodage Trading Co., Ltd. 179 1,387 276 40 Total 179 21,387 276 40 Sales and marketing expenses: Promotion expenses to: Weiyi (Hangzhou) Internet Financial Information Service Co., Ltd 3,264 7,916 9,631 1,401 Trademark expenses to: Zhejiang Ruituo Information Technology Co., Ltd. - 62 - - Total 3,264 7,978 9,631 1,401 c) The Company had the following related party balances: Amounts due from related parties As of December 31, 2017 2018 RMB RMB US$ Zhejiang Zhongbo Finance Lease Co., Ltd. (i) 10 10,010 1,456 Hangzhou Ruituo Technology Co., Ltd. (ii) 4,497 7,081 1,030 Zhejiang Ruituo Non-financing Guarantee Co., Ltd. 236 2,692 392 Shanghai Zaohui Finance Lease Co., Ltd. 3,993 - - Others 432 2,014 292 Total 9,168 21,797 3,170 (i) The balance represents loans provided to Zhejiang Zhongbo Finance Lease Co., Ltd. ("Zhongbo") for the advances to borrowers of certain type of loan product of the Company. (ii) The balance mainly represents loans provided to Hangzhou Ruituo Technology Co., Ltd. and receivable from the disposal of vehicle collaterals for overdue loans. Amounts due to related parties As of December 31, 2 017 2018 RMB RMB US$ Key management and their immediate family members (iii) 30,701 7,626 1,109 Mr. Hong Yao (iii) 4,335 950 138 Zhejiang Zhongbo Finance Lease Co., Ltd. (iv) - 9,471 1,379 Chunan Wangqi Financial Information Advisory Services Partnership (GP) - 1,806 263 Chunan Wangzhi Financial Information Advisory Services Partnership (GP) - 1,290 188 Chunan Wangqun Financial Information Advisory Services Partnership (GP) - 1,110 161 Other related service center operation partners - 4,833 703 Hangzhou Ruituo Technology Co., Ltd. 10,139 714 104 Beijing Lezhihui Technology Co., Ltd. 2,921 275 40 Chunan Wangcai Information Advisory Services Company 6,233 - - Chunan Wencai Information Advisory Services Company 5,718 - - Others 2,853 653 94 Total 62,900 28,728 4,179 (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 to borrowers of certain type of loan product of the Company. |
Share-based compensation
Share-based compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based compensation | 18. Share-based compensation Restricted shares On June 1, 2016 and September 1, 2016, the Founder granted 458,400 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 RMB70.52 per share on both June 1, 2016 and September 1, 2016. The share-based compensation of RMB32,326 in total, which is the fair value of the total shares vested, was charged to the consolidated statement of comprehensive income for the year ended December 31, 2016. 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 (US$2,561) in total, which is the fair value of the total shares vested, 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, 2016, 2017 and 2018, the Company issued a total of nil, 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, 2016, 2017 and 2018, 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 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 (US$15,485) 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 nil, RMB40,719 and RMB88,961 (US$12,939) were charged to the consolidated statements of comprehensive income for the years ended December 31, 2016, 2017 and 2018. 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 (RMB) 134.42 148.37 Risk-free interest rate 4.35 % 4.35 % Dividend yield nil nil Expected volatility 61.00 % 61.00 % Weighted average expected life range (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 share, 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. Expected volatility is estimated based on the historical volatility ordinary shares of serval comparable companies in the same industry. The dividend yield is estimated based on the Company’s expected dividend policy over the expected term of the options. 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, 2018, the Company has not granted any awards under the 2018 Plan. On January 1, 2019, February 1, 2019, March 1, 2019, April 1, 2019, the Company granted 181,390, 1,248,561, 14,000, 47,000 share awards, respectively, under the 2018 Plan, including 1,419,561 options and 71,390 restricted share units. 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 The weighted average grant-date fair value of Restricted Shares granted during the year ended December 31, 2018 was RMB216.43 per share, which was derived from the fair value of the underlying ordinary shares. As of December 31, 2018, there was RMB162,366 (US$23,615) of total unrecognized employee share-based compensation expenses related to unvested Restricted Shares expected to vest which are expected to be recognized over a weighted-average period of 1.7 years. Total unrecognized compensation cost may be adjusted for actual forfeitures occurring in the future. Share-based compensation expenses For the years ended December 31, 2016, 2017 and 2018, the Company allocated share-based compensation expenses as follows: Year ended December 31, 2016 2017 2018 RMB RMB RMB US$ Origination and servicing 18,473 - 46,687 6,790 General and administrative - 35,223 45,104 6,560 Research and development 13,853 5,496 14,780 2,150 Total 32,326 40,719 106,571 15,500 |
Accumulated other comprehensive
Accumulated other comprehensive loss | 12 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated other comprehensive loss | 19. Accumulated other comprehensive loss RMB Balance as of 1, 2018 - Foreign currency transaction adjustments, net of tax of nil (2,700 ) Balance as of December 31, 2018 (2,700 ) Balance as of December 31, 2018 (US$) (393 ) 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, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
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, 2016, 2017 and 2018 were RMB23,401, RMB107,911 and RMB131,808 (US$19,171), respectively. Future minimum lease payments under non-cancelable operating leases agreements consist of the following as of December 31, 2018: RMB US$ 2019 64,986 9,452 2020 30,904 4,495 2021 11,061 1,609 2022 744 108 2023 and thereafter 255 37 Total 107,950 15,701 Capital and other commitments Future minimum capital commitments, mainly representing renovating expense under non-cancellable agreements, consist of the following as of December 31, 2018: RMB US$ 2019 804 117 2020 and thereafter - - Total 804 117 |
Preferred shares
Preferred shares | 12 Months Ended |
Dec. 31, 2018 | |
Features of Convertible Preferred Stock [Abstract] | |
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, 2016 and 2018, 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 a 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 (US$17,453) 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 January 1, 2016 - - - - - Capital injection for Series A, A+ and B preferred shares 18,293 3,658 6,098 - 28,049 Issuance of Series C redeemable convertible preferred shares (net of nil issuance costs) - - - 240,000 240,000 Modification of Series A, A+ and B preferred shares 563 113 185 - 861 Accretion of Series C redeemable convertible preferred shares - - - 120,000 120,000 Balance as of December 31, 2016 18,856 3,711 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 - - - - - Balance as of December 31, 2018 (US$) - - - - - |
Business combination
Business combination | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
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 (US$654). The acquisition was accounted for as a business combination. Goodwill representing the expected synergies from the acquisition of RMB3,067 (US$446) 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 (US$399) was recognized which is not tax deductible. The results of the purchase price allocation for these acquisitions are based on valuation determined by the Company with the assistance of an independent third party valuation firm. The purchase price allocations and the actual results of operations after the acquisition date have not been presented because the effects of these acquisitions were insignificant, either individually or in aggregate. The changes in carrying amount of goodwill were as follow: RMB Balance at January 1, 2018 - Goodwill acquired 5,812 Balance at December 31, 2018 5,812 Balance at December 31, 2018 (US$) 845 No impairment losses were recognized for the year ended December 31, 2018. |
Restricted net assets
Restricted net assets | 12 Months Ended |
Dec. 31, 2018 | |
Restricted Net Assets [Abstract] | |
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 RMB202,588 and RMB246,236 (US$35,814) as of December 31, 2017 and 2018, respectively. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent events | 24. Subsequent events In Jan 2019, Weidai Co. entered into agreements with Mr. Feiyue Fang to acquire 70% of equity interest in Zhejiang Qunshuo Electronic Co., Ltd. ("Qunshuo"), which is engaged in the provision of GPS services. In Jan 2019, the Company via contractual arrangement controlled Hangzhou Yuntuo Co., Ltd. ("Yuntuo"), who owns 30% equity interest of Qunshuo. In Feb, 2019, Yuntuo entrusted the shareholding with Deqing Tianjiang Investment Management Partnership (GP) ("Deqing"), which is considered the completion of business combination. The Company granted 181,390, 1,248,561, 14,000, 47,000 share options on January 1, February 1, March 1, April 1, 2019 respectively under 2018 share incentive plan. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
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, VIE and VIE’s subsidiaries for which the Company is the primary beneficiary. All significant inter-company balances and transactions between the Company, its subsidiaries, VIE and VIE’s 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, allowance for loans and advances, identification of separate accounting units and estimating the best estimate selling price of each deliverable in the Company’s revenue arrangements, guarantee liabilities, useful life of long-lived assets, share-based compensation, valuation allowance for deferred tax assets, uncertain tax positions and fair value of preferred shares and short-term investments, 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 RMB6.8755 per US$1.00 on December 31, 2018, the last business day in fiscal year 2018, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be converted, realized or settled into US$ 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, 2017, and 2018, the restricted cash related to cash not yet disbursed amounted to RMB1,083,421 and RMB1,583,178 (US$230,264), respectively; and (ii) cash held by banks as guarantee deposits paid on contracts and other restrictions amounted to RMB13,500 and RMB56,127 (US$8,163) as of December 31, 2017 and 2018, respectively. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash |
Short-term investments | Short-term investments All highly liquid investments with original maturities of greater than three months, but less than twelve months, are classified as short-term investments. Investments that are expected to be realized in cash during the next twelve months are also included in short-term investments. The Company accounts for short-term investments in accordance with ASC topic 320, Investments—Debt and Equity Securities (“ASC 320”) The securities that the Company has the positive intent and the ability to hold to maturity are classified as held-to-maturity securities and stated at amortized cost. The securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities. Unrealized holding gains and losses for trading securities are included in earnings. Investments not classified as trading or as held-to-maturity are classified as available-for-sale securities. Available-for-sale investments are reported at fair value, with unrealized gains and losses recorded in accumulated other comprehensive income. Realized gains or losses are included in earnings during the period in which the gain or loss is realized. An impairment loss on the available-for-sale securities is recognized in the consolidated statements of comprehensive income when the decline in value is determined to be other-than-temporary. |
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 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, The Company derecognizes the acquired non-performing loans when the non-performing loans are 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 |
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 Contingencies 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, nil and RMB21,712 (US$3,158) for the years ended December 31, 2016, 2017 and 2018. The maximum potential undiscounted future payment which the Company would be required to make under its guarantee obligation is RMB551,170 and RMB2,938,661 (US$427,411) as of December 31, 2017 and 2018, respectively. |
Long-term Investments | Long-term Investments The Company’s long-term investments consist of time deposits with stated maturities of greater than 365 days and cost method investments. In accordance with ASC subtopic 325-20 (“ASC 325-20”), Investments-Other: Cost Method Investments |
Business combinations | Business combinations The Company accounts for its business combinations using the purchase method of accounting in accordance with ASC 805, Business Combinations Business Combinations (Topic 802): Clarifying the Definition of 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 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 |
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 ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Ø Level 1 - Observable inputs that reflect quoted prices in active markets for identical assets or liabilities. Ø Level 2 - Include other inputs that are directly or indirectly observable in the marketplace. Ø 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 Total fair value at December 31, 2017 Quoted prices in (Level 1) Significant Significant unobservable inputs (Level 3) RMB RMB RMB RMB Fair value disclosure Long-term time deposits 44,322 — 44,322 — Loans and advances, net – non-current 390,171 — 390,171 — Long-term payable to institutional funding partners and online investors 383,043 — 383,043 — Fair value measurements Recurring Recurring short-term investments 8,500 — 8,500 — Fair value measurement or disclosure at December 31, 2018 using Total fair value at December 31, 2018 Quoted prices in (Level 1) Significant Significant unobservable inputs (Level 3) RMB US$ RMB RMB RMB Fair value disclosure Loans and advances, net – non-current 421,564 61,314 — 421,564 — Long-term payable to institutional funding partners and online investors 419,039 60,947 — 419,039 — Fair value measurements Recurring Recurring short-term investments 4,100 596 — 4,100 — The Company had no financial assets and liabilities measured and recorded at fair value on a non-recurring basis as of December 31, 2017 and 2018. |
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: Category: Estimated Estimated 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, 2016, 2017 and 2018. |
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, 2016, 2017 and 2018. The Company recognized research and development expenses amounted to RMB56,142, RMB100,966 and RMB139,318 (US$20,263) for the years ended December 31, 2016, 2017 and 2018, 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. For each successful loan facilitation, the Company earns a loan facilitation fee and a recurring service fee for post facilitation services, including provision of global positioning system (“GPS”) automobile tracking services, collection services and sending short-message-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’s arrangements with investors 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 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 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 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 (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 when 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 RMB52,374, RMB65,915 and RMB268,813 (US$39,097) for the years ended December 31, 2016, 2017 and 2018, respectively. For arrangements where the Company originates loans to the borrowers and 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, RMB7,453 and RMB10,746 (US$1,563) for the years ended December 31, 2016, 2017 and 2018, respectively. Net financing income The Company earns interest income arising from loans originated by the Company. The Company records interest income net of funding costs (i.e. interest paid to investors) over the life of the underlying loan principal using the effective interest method on unpaid principal amounts in accordance with ASC 310, Receivables Other revenues The Company also receives various services fees which are contingent on future events, such as borrower late payment penalties, loan collection fees, and net revenues from sale of collateral. These contingent fees are not recognized until the contingencies are resolved and the fees become fixed and determined, which also coincide with when the services are performed and collectability is reasonably assured. These fees are classified within other revenues in the consolidated statements of comprehensive income. Other revenues consist of: Year Ended December 31, 2016 2017 2018 RMB RMB RMB US$ Late payment penalties and loan collection fees 158,154 218,675 113,313 16,481 Others 46,799 86,362 76,399 11,111 Total 204,953 305,037 189,712 27,592 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, risk assessment cost, 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 |
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 RMB46,491, RMB137,902 and RMB181,798 (US$26,441) for the years ended December 31, 2016, 2017 and 2018, respectively. |
Income taxes | Income taxes The Company accounts for income taxes using the liability method in accordance with ASC 740, Income Taxes Balance Sheet Classification of deferred Taxes 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 |
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 RMB118,987, RMB267,970 and RMB330,116 (US$48,013) for the years ended December 31, 2016, 2017 and 2018, 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 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 Compensatio Compensation Stock Compensation Improvement to Employee Share Based Payment Accounting 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 only net income, 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 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. In May 2014, the Financial Accounting Standard Board (“FASB”) issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) 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. To achieve this core principle, an entity should apply the following steps: Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. In August 2015, the FASB issued its final standard formally amending the effective date of the new revenue recognition guidance. As an “emerging growth company,” or EGC, the Company has elected to take advantage of the extended transition period provided in the Securities Act Section 7(a)(2)(B) for complying with new or revised accounting standards applicable to private companies. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2018, including interim periods beginning after December 15, 2019. On January 1, 2019, the Company adopted ASC 606 – Revenue from Contracts with Custome In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10) In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In November 2018, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses Leases In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments Statement of Cash Flows In February 2017, the FASB issued ASU No. 2017-05, Other income—Gains and Losses from the Derecognition of Nonfinancial Assets In February 2018, the FASB issued ASU 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. In June 2018, the FASB issued ASU 2018-07, Compensation — Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting 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 The Company is in the process of evaluating the impact of adoption of this guidance on its consolidated financial statements. |
Organization (Tables)
Organization (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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 February 5, 2018 Hong Kong 100 % Investment holding Weidai Co. March 15, 2018 PRC 100 % Investment holding Rymo Technology Industry Limited September 22, 2009 Hong Kong 100 % Investment holding VIE Weidai (Hangzhou) December 25, 2014 PRC Nil Online finance marketplace business Entity Date of Place of Percentage Principal activities Subsidiaries of the VIE 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 Jingwei Assets Management Co., Ltd. August 9, 2016 PRC Nil Assets management Fuzhou Weidai Online Microcredit Co., Ltd. June 23, 2017 PRC Nil Micro-loan business Khorgos Micro-car Auction Information Technology Co., Ltd. May 18, 2017 PRC Nil Second-hand car operation Khorgos Micron Internet Technology Co., Ltd. August 23, 2017 PRC Nil Technology development and service Khorgos Weiyi Internet Technology Co., Ltd. August 23, 2017 PRC Nil Technology development and service 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 Micro-car Auction Co., Ltd. June 21, 2018 PRC Nil Second-hand car operation |
Schedule of consolidated balance sheets related variable interest entities | As of December 31, 2017 2018 RMB RMB US$ Current assets: Cash and cash equivalents 1,765,572 1,419,293 206,428 Restricted cash 1,092,921 1,619,937 235,610 Loans and advances, net 1,938,492 1,482,368 215,602 Short-term investments 8,500 4,100 596 Prepaid expenses and other assets 433,597 553,251 80,466 Amounts due from related parties 9,168 42,680 6,208 Total current assets 5,248,250 5,121,629 744,910 Non-current assets: Restricted cash 4,000 19,368 2,817 Long-term investments 359,333 13,333 1,939 Loans and advances, net 390,171 421,564 61,314 Prepaid expenses and other assets 8,048 7,606 1,106 Property, equipment and software, net 99,433 88,684 12,899 Goodwill - 3,067 446 Deferred tax assets 158,566 329,796 47,967 Total non-current assets 1,019,551 883,418 128,488 Total assets 6,267,801 6,005,047 873,398 As of December 31, 2017 2018 RMB RMB US$ Current liabilities: Short-term borrowings 200,000 - - Payable to institutional funding partners and online investors 1,770,681 1,005,236 146,206 Current account with online investors and borrowers 1,883,446 2,005,605 291,703 Income tax payable 243,338 59,461 8,648 Accrued expenses and other liabilities 461,295 459,415 66,820 Amounts due to related parties 62,900 452,518 65,816 Deferred revenue 12,330 11,962 1,740 Total current liabilities 4,633,990 3,994,197 580,933 Non-current liabilities: Payable to institutional funding partners and online investors 416,118 450,160 65,473 Deferred revenue 887 11,343 1,650 Other non-current liabilities 40,719 14,110 2,052 Total non-current liabilities 457,724 475,613 69,175 Total liabilities 5,091,714 4,469,810 650,108 |
Schedule of consolidated statements of comprehensive income related variable interest entities | Year ended December 31, 2016 2017 2018 RMB RMB RMB US$ Net revenues 1,761,380 3,545,430 3,917,701 569,806 Net income 291,029 474,821 231,872 33,724 |
Schedule of consolidated statements of cash flows related variable interest entities | Year ended December 31, 2016 2017 2018 RMB RMB RMB US$ Net cash provided by operating activities 924,388 2,284,077 1,204,835 175,236 Net cash used in investing activities (337,051 ) (2,941,921 ) (9,916 ) (1,442 ) Net cash provided by (used in) financing activities 458,614 2,205,523 (998,814 ) (145,271 ) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of fair value measurements of financial instruments | Fair value measurement or disclosure at Total fair value at December 31, 2017 Quoted prices in (Level 1) Significant Significant unobservable inputs (Level 3) RMB RMB RMB RMB Fair value disclosure Long-term time deposits 44,322 — 44,322 — Loans and advances, net – non-current 390,171 — 390,171 — Long-term payable to institutional funding partners and online investors 383,043 — 383,043 — Fair value measurements Recurring Recurring short-term investments 8,500 — 8,500 — Fair value measurement or disclosure at December 31, 2018 using Total fair value at December 31, 2018 Quoted prices in (Level 1) Significant Significant unobservable inputs (Level 3) RMB US$ RMB RMB RMB Fair value disclosure Loans and advances, net – non-current 421,564 61,314 — 421,564 — Long-term payable to institutional funding partners and online investors 419,039 60,947 — 419,039 — Fair value measurements Recurring Recurring short-term investments 4,100 596 — 4,100 — |
Schedule of estimated useful lives of assets | Category: Estimated Estimated 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 other revenues in consolidated statements of comprehensive income | Year Ended December 31, 2016 2017 2018 RMB RMB RMB US$ Late payment penalties and loan collection fees 158,154 218,675 113,313 16,481 Others 46,799 86,362 76,399 11,111 Total 204,953 305,037 189,712 27,592 |
Loans and advances, net (Tables
Loans and advances, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Schedule of loans and advances | As of December 31 2017 2018 RMB RMB US$ Current portion: Loans receivable (i) Auto-backed loans 1,105,169 233,893 34,020 Other secured loans 104,292 139,939 20,353 Unsecured loans 512,616 587,211 85,406 Sub-total 1,722,077 961,043 139,779 Acquired non-performing loans (ii) Auto-backed loans 438,942 723,404 105,215 Other secured loans 58,961 364,424 53,003 Unsecured loans 120,955 197,820 28,771 Sub-total 618,858 1,285,648 186,989 Advances to borrowers (iii) 2,487 - - Total current loans and advances 2,343,422 2,246,691 326,768 Allowance for loans and advances (404,930 ) (764,323 ) (111,166 ) Loans and advances, net 1,938,492 1,482,368 215,602 Non-current portion: Loans receivable (i) Auto-backed loans 230,634 176,923 25,732 Other secured loans 160,733 196,409 28,567 Unsecured loans 164 54,259 7,892 Total non-current loans and advances 391,531 427,591 62,191 Allowance for loans and advances (1,360 ) (6,027 ) (877 ) Loans and advances, net 390,171 421,564 61,314 (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; (iii) Advances to borrowers are advances provided to borrowers with urgent financing needs, before online investors fully fund the loans. |
Schedule of allowance for loans and advances | 2016 Loans receivable Acquired non-performing loans Auto- backed Other Unsecured Auto- backed Other Unsecured Total RMB RMB RMB RMB RMB RMB RMB Beginning balance - - - (9,705 ) - - (9,705 ) Current year provision - - - (142,715 ) (1,530 ) (372 ) (144,617 ) Recoveries of loans previously written off - - - (9,268 ) - - (9,268 ) Write-offs - - - 94,532 1,530 - 96,062 Ending balance - - - (67,156 ) - (372 ) (67,528 ) 2017 Loans receivable Acquired non-performing loans Auto-backed Other Unsecured Auto-backed Other Unsecured 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 Auto-backed Other Unsecured Auto-backed Other Unsecured Total RMB RMB RMB RMB RMB RMB RMB US$ Beginning balance (5,149 ) (913 ) (64,515 ) (252,174 ) (3,755 ) (79,784 ) (406,290 ) (59,092 ) Current year provision (7,864 ) (4,427 ) 4,106 (430,213 ) (53,245 ) (259,929 ) (751,572 ) (109,312 ) Recoveries of loans previously written off - - - (27,879 ) (24 ) (355 ) (28,258 ) (4,110 ) Write-offs - - - 242,492 18,323 154,955 415,770 60,471 Ending balance (13,013 ) (5,340 ) (60,409 ) (467,774 ) (38,701 ) (185,113 ) (770,350 ) (112,043 ) |
Schedule of aged analysis of past due loans | As of December 31, 2017 Current 1-30 31-60 61-90 91-120 121-150 151-180 181-360 Over 360 Total RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB Auto-backed loans 1,331,760 3,015 813 50 165 - - - - 1,335,803 Other secured loans 265,025 - - - - - - - - 265,025 Unsecured loans 496,726 14,050 1,614 226 118 46 - - - 512,780 Total 2,093,511 17,065 2,427 276 283 46 - - - 2,113,608 As of December 31, 2018 Current 1-30 31-60 61-90 91-120 121-150 151-180 181-360 Over 360 Total RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB US$ Auto-backed loans 383,469 15,939 3,523 3,663 578 - 496 3,148 - 410,816 59,752 Other secured loans 324,102 7,929 3,168 1,149 - - - - - 336,348 48,920 Unsecured loans 557,229 53,294 8,749 5,287 4,619 3,895 2,629 5,768 - 641,470 93,298 Total 1,264,800 77,162 15,440 10,099 5,197 3,895 3,125 8,916 - 1,388,634 201,970 |
Prepaid expenses and other as_2
Prepaid expenses and other assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Prepaid Expense and Other Assets [Abstract] | |
Schedule of prepaid expenses and other assets | As of December 31, 2017 2018 RMB RMB US$ Current: Guarantee deposits 52,385 116,535 16,949 Amounts due from third-party payment platforms (i) 204,231 85,127 12,381 Prepaid rental and deposits 72,186 49,893 7,257 Others 104,795 308,610 44,887 Total 433,597 560,165 81,474 Non-current: Guarantee deposits - 2,000 291 Prepaid rental and deposits 8,048 5,606 815 Total 8,048 7,606 1,106 (i) 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, 2017 and 2018. |
Long-term investments (Tables)
Long-term investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Long-term Investments [Abstract] | |
Schedule of long-term investments | As of December 31, 2017 2018 RMB RMB US$ Cost method investments 309,333 13,333 1,939 Time deposits 50,000 - - 359,333 13,333 1,939 |
Property, equipment and softw_2
Property, equipment and software, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, equipment and software, net | As of December 31, 2017 2018 RMB RMB US$ Computer and electronic equipment 38,298 55,523 8,075 Leasehold improvement 38,900 46,596 6,777 Vehicles 20,985 20,615 2,998 Office furniture and equipment 6,094 4,321 628 Software 11,053 18,089 2,632 Total 115,330 145,144 21,110 Less: Accumulated depreciation and amortization (15,897 ) (56,413 ) (8,205 ) Property, equipment and software, net 99,433 88,731 12,905 |
Payable to institutional fund_2
Payable to institutional funding partners and online investors (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payable To Institutional Funding Partners And Online Investors [Abstract] | |
Schedule of payable to institutional funding partners and online investors | Fixed annual Rate (%) Term As of December 31, 2017 2018 RMB RMB US$ Current: Institutional funding partners 3% to 11% 7 to 12 months 523,328 390,908 56,856 Online investors 3% to 11% 2 to 12 months 1,247,353 614,328 89,350 1,770,681 1,005,236 146,206 Non-current: Institutional funding partners 3% to 11% 13 to 36 months 416,118 395,901 57,581 Online investors 5% to 13% 13 to 24 months - 54,259 7,892 416,118 450,160 65,473 |
Scheduel of contractual obligations | Payment due by period Long-term borrowings and interest payable: Less than 1 year 1-2 years Greater than 2 Total As of December 31, 2017 (RMB) 259,356 256,945 189,971 706,272 As of December 31, 2018 (RMB) 485,878 412,650 54,275 952,803 As of December 31, 2018 (US$) 70,668 60,017 7,894 138,579 |
Current account with online i_2
Current account with online investors and borrowers (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Current Account With Online Investors And Borrowers [Abstract] | |
Schedule of current account with online investors and borrowers | As of December 31, 2017 2018 RMB RMB US$ Investor deposits 1,097,259 1,461,080 212,505 Undrawn borrower funds and deposits 786,187 544,525 79,198 Total 1,883,446 2,005,605 291,703 |
Accrued expenses and other li_2
Accrued expenses and other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Schedule of accrued expenses and other liabilities | As of December 31, 2017 2018 RMB RMB US$ Payroll and welfare payable 254,509 264,600 38,484 Accrued marketing expense 50,163 38,536 5,605 Other taxes payable 25,862 24,399 3,549 Others 130,761 173,904 25,293 Total 461,295 501,439 72,931 |
Interest income, net (Tables)
Interest income, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Interest Income (Expense), Net [Abstract] | |
Schedule of interest income, net | Year ended December 31, 2016 2017 2018 RMB RMB RMB US$ Interest income 13,793 35,742 73,729 10,723 Interest expenses - (4,949 ) (5,597 ) (814 ) Bank charges (145 ) (490 ) (1,341 ) (195 ) Total 13,648 30,303 66,791 9,714 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of current and deferred components of income tax expenses | Year ended December 31, 2016 2017 2018 RMB RMB RMB US$ Current income tax 136,400 318,090 330,859 48,122 Deferred income tax (31,270 ) (124,887 ) (171,230 ) (24,905 ) 105,130 193,203 159,629 23,217 |
Schedule of components of the deferred tax assets | As of December 31, 2017 2018 RMB RMB US$ Deferred tax assets Allowance for loans and advances 128,885 235,415 34,240 Net operating loss carry forwards 41,875 46,550 6,770 Accruals for share-based compensation 10,180 29,637 4,311 Accruals for payroll and other costs 24,455 19,925 2,898 Less: valuation allowance (46,829 ) (1,731 ) (252 ) Balance at the end of the year 158,566 329,796 47,967 |
Schedule of differences between the PRC statutory tax rate and the company's effective tax rate | Year ended December 31, 2016 2017 2018 RMB RMB RMB US$ Income before provision of income tax 396,159 668,024 764,259 111,156 PRC statutory income tax rate 25 % 25 % 25 % 25 % Income tax computed at statutory tax rate 99,039 167,006 191,065 27,790 Research and development super-deduction (5,034 ) (11,912 ) (16,254 ) (2,364 ) Non-deductible expenses 942 1,499 29,916 4,351 Changes in valuation allowance 10,183 36,610 (45,098 ) (6,560 ) Income tax expenses 105,130 193,203 159,629 23,217 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic and diluted | Year ended December 31, 2016 2017 2018 Ordinary Ordinary Class A Class B RMB RMB RMB US$ RMB US$ Numerator: Net income attributable to ordinary shareholders 170,168 466,217 338,385 49,216 383,234 55,739 Allocation of net income (44,428 ) (115,555 ) (164,830 ) (23,974 ) - - Numerator for computing 125,740 350,662 173,555 25,242 383,234 55,739 Denominator: Weighted average number 48,392,050 48,392,050 15,882,661 15,882,661 35,071,400 35,071,400 Earnings per share - basic 2.60 7.25 10.93 1.59 10.93 1.59 Diluted earnings per share for each of the years presented are calculated as follows: Year ended December 31, 2016 2017 2018 Ordinary Ordinary Class A Class B RMB RMB RMB US$ RMB US$ Numerator: Numerator for computing basic earnings per share 125,740 350,662 173,555 25,242 383,234 55,739 Allocation of net income attributable to Series C redeemable convertible preferred shares - 22,324 - - - - Numerator for computing diluted earnings per share 125,740 372,986 173,555 25,242 383,234 55,739 Denominator: Weighted average number of ordinary shares outstanding 48,392,050 48,392,050 15,882,661 15,882,661 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 48,392,050 51,466,450 15,882,661 15,882,661 35,071,400 35,071,400 Earnings per share - diluted 2.60 7.25 10.93 1.59 10.93 1.59 |
Related party balances and tr_2
Related party balances and transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions | Year ended December 31, 2016 2017 2018 RMB RMB RMB US$ Loan facilitation service fee from: Key management and their immediate family members 833 851 742 108 Hangzhou Ruituo Technology Co., Ltd. - - 39 6 Total 833 851 781 114 Other revenues: Beijing Lezhihui Technology Co., Ltd. 2,179 3,740 13,362 1,943 Origination and servicing expenses: Beijing Lezhihui Technology Co., Ltd. 5,578 49,377 22,739 3,307 Chunan Wanglan Financial Information - - 18,077 2,629 Chunan Wenjun Financial Information - - 11,290 1,642 Chunan Wenkang Financial Information - - 9,103 1,324 Chunan Wenhai Financial Information - - 8,743 1,272 Chunan Wenbin Financial Information - - 8,455 1,230 Chunan Wenlin Financial Information - - 8,408 1,223 Chunan Wenrong Financial Information - - 8,357 1,215 Chunan Wenshe Financial Information - - 8,047 1,170 Chunan Wenbei Financial Information - - 7,717 1,122 Chunan Wensheng Financial - - 7,600 1,105 Chunan Wenyang Financial Information - - 6,924 1,007 Chunan Wangxia Financial Information - - 6,761 983 Chunan Wanglin Financial Information - - 5,133 747 Chunan Wangqi Financial Information - - 4,969 723 Chunan Wangqun Financial Information - - 4,948 720 Chunan Wangqian Financial Information - - 2,424 353 Year ended December 31, 2016 2017 2018 RMB RMB RMB US$ Chunan Yunxiu Financial Information Advisory Services Partnership (GP) - - 1,909 278 Chunan Wencai Information Advisory Services Company 87,356 99,601 - - Chunan Wangcai Information Advisory Services Company 57,833 62,496 - - Chunan Yuntong Information Advisory Services Company 3,155 2,793 - - Collecting costs to: Zhejiang Hongrui Investment Management Co., Ltd. 13,221 20,469 6,253 909 Zhejiang Ruituo Information Technology Co., Ltd. - - 4,996 727 GPS costs to: Zhejiang Qunshuo Electronics Co., Ltd 10,067 25,290 - - Total 177,210 260,026 162,853 23,686 General and administrative expenses: Consulting expenses to: Suzhou Weinxin Zhonghua Venture Capital Partnership (LLP) - 20,000 - - Welfare expenses to: Hangzhou Qiandaohuyaodage Trading Co., Ltd. 179 1,387 276 40 Total 179 21,387 276 40 Sales and marketing expenses: Promotion expenses to: Weiyi (Hangzhou) Internet Financial Information Service Co., Ltd 3,264 7,916 9,631 1,401 Trademark expenses to: Zhejiang Ruituo Information Technology Co., Ltd. - 62 - - Total 3,264 7,978 9,631 1,401 |
Schedule of due from related parties | As of December 31, 2017 2018 RMB RMB US$ Zhejiang Zhongbo Finance Lease Co., Ltd. (i) 10 10,010 1,456 Hangzhou Ruituo Technology Co., Ltd. (ii) 4,497 7,081 1,030 Zhejiang Ruituo Non-financing Guarantee Co., Ltd. 236 2,692 392 Shanghai Zaohui Finance Lease Co., Ltd. 3,993 - - Others 432 2,014 292 Total 9,168 21,797 3,170 (i) The balance represents loans provided to Zhejiang Zhongbo Finance Lease Co., Ltd. ("Zhongbo") for the advances to borrowers of certain type of loan product of the Company. (ii) The balance mainly represents loans provided to Hangzhou Ruituo Technology Co., Ltd. and receivable from the disposal of vehicle collaterals for overdue loans. |
Schedule of due to related parties | As of December 31, 2 017 2018 RMB RMB US$ Key management and their immediate family members (iii) 30,701 7,626 1,109 Mr. Hong Yao (iii) 4,335 950 138 Zhejiang Zhongbo Finance Lease Co., Ltd. (iv) - 9,471 1,379 Chunan Wangqi Financial Information Advisory Services Partnership (GP) - 1,806 263 Chunan Wangzhi Financial Information Advisory Services Partnership (GP) - 1,290 188 Chunan Wangqun Financial Information Advisory Services Partnership (GP) - 1,110 161 Other related service center operation partners - 4,833 703 Hangzhou Ruituo Technology Co., Ltd. 10,139 714 104 Beijing Lezhihui Technology Co., Ltd. 2,921 275 40 Chunan Wangcai Information Advisory Services Company 6,233 - - Chunan Wencai Information Advisory Services Company 5,718 - - Others 2,853 653 94 Total 62,900 28,728 4,179 (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 to borrowers of certain type of loan product of the Company. |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
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 (RMB) 134.42 148.37 Risk-free interest rate 4.35 % 4.35 % Dividend yield nil nil Expected volatility 61.00 % 61.00 % Weighted average expected life range (years) 2.92-3.75 2.17-3.75 |
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 |
Schedule of allocated share-based compensation expenses | Year ended December 31, 2016 2017 2018 RMB RMB RMB US$ Origination and servicing 18,473 - 46,687 6,790 General and administrative - 35,223 45,104 6,560 Research and development 13,853 5,496 14,780 2,150 Total 32,326 40,719 106,571 15,500 |
Accumulated other comprehensi_2
Accumulated other comprehensive loss (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Reclassification of accumulated other comprehensive loss | RMB Balance as of 1, 2018 - Foreign currency transaction adjustments, net of tax of nil (2,700 ) Balance as of December 31, 2018 (2,700 ) Balance as of December 31, 2018 (US$) (393 ) |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease payments under non-cancelable operating leases agreements | RMB US$ 2019 64,986 9,452 2020 30,904 4,495 2021 11,061 1,609 2022 744 108 2023 and thereafter 255 37 Total 107,950 15,701 |
Schedule of future minimum capital commitmentsfor renovating expense under non-cancellable agreement | RMB US$ 2019 804 117 2020 and thereafter - - Total 804 117 |
Preferred shares (Tables)
Preferred shares (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Features of Convertible Preferred Stock [Abstract] | |
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 January 1, 2016 - - - - - Capital injection for Series A, A+ and B preferred shares 18,293 3,658 6,098 - 28,049 Issuance of Series C redeemable convertible preferred shares (net of nil issuance costs) - - - 240,000 240,000 Modification of Series A, A+ and B preferred shares 563 113 185 - 861 Accretion of Series C redeemable convertible preferred shares - - - 120,000 120,000 Balance as of December 31, 2016 18,856 3,711 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 - - - - - Balance as of December 31, 2018 (US$) - - - - - |
Business combination (Tables)
Business combination (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of changes in carrying amount of goodwill | RMB Balance at December 31, 2016 - Goodwill acquired - Goodwill disposed - Balance at December 31, 2017 - Goodwill acquired 5,812 Goodwill disposed - Balance at December 31, 2018 5,812 Balance at December 31, 2018 (US$) 845 |
Organization (Details)
Organization (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Weidai (Hangzhou) | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Entity Incorporation, Date of Incorporation | Dec. 25, 2014 |
Entity Incorporation, State Country Name | PRC |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Online finance marketplace business |
Weidai HK | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Entity Incorporation, Date of Incorporation | Feb. 5, 2018 |
Entity Incorporation, State Country Name | Hong Kong |
Percentage of legal ownership by the Company | 100.00% |
Principal activities | Investment holding |
Weidai Co. | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Entity Incorporation, Date of Incorporation | Mar. 15, 2018 |
Entity Incorporation, State Country Name | PRC |
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 |
Entity Incorporation, State Country Name | Hong Kong |
Percentage of legal ownership by the Company | 100.00% |
Principal activities | Investment holding |
Qianwei (Hangzhou) Technology Co., Ltd. | Weidai (Hangzhou) | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Entity Incorporation, Date of Incorporation | Sep. 29, 2015 |
Entity Incorporation, State Country Name | PRC |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Asset Management |
Ruituo (Hangzhou) Internet Financial Information Services Co., Ltd. | Weidai (Hangzhou) | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Entity Incorporation, Date of Incorporation | Jul. 30, 2015 |
Entity Incorporation, State Country Name | PRC |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Asset Management |
Yiwu Weirui Internet Technology Co., Ltd. | Weidai (Hangzhou) | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Entity Incorporation, Date of Incorporation | Sep. 29, 2015 |
Entity Incorporation, State Country Name | PRC |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Asset Management |
Hangzhou Yiqitou Investment Advisory Co., Ltd | Weidai (Hangzhou) | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Entity Incorporation, Date of Incorporation | Oct. 28, 2016 |
Entity Incorporation, State Country Name | PRC |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Consulting |
Liangche (Hangzhou) Internet Technology Co., Ltd. | Weidai (Hangzhou) | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Entity Incorporation, Date of Incorporation | Feb. 21, 2017 |
Entity Incorporation, State Country Name | PRC |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Internet Technology |
Hangzhou Jingwei Assets Management Co., Ltd. | Weidai (Hangzhou) | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Entity Incorporation, Date of Incorporation | Aug. 9, 2016 |
Entity Incorporation, State Country Name | PRC |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Assets Management |
Fuzhou Weidai Online Microcredit Co., Ltd. | Weidai (Hangzhou) | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Entity Incorporation, Date of Incorporation | Jun. 23, 2017 |
Entity Incorporation, State Country Name | PRC |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Micro-loan business |
Khorgos Micro-car Auction Information Technology Co., Ltd. | Weidai (Hangzhou) | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Entity Incorporation, Date of Incorporation | May 18, 2017 |
Entity Incorporation, State Country Name | PRC |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Second-hand car operation |
Khorgos Micron Internet Technology Co., Ltd. | Weidai (Hangzhou) | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Entity Incorporation, Date of Incorporation | Aug. 23, 2017 |
Entity Incorporation, State Country Name | PRC |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Technology development and service |
Khorgos Weiyi Internet Technology Co., Ltd. | Weidai (Hangzhou) | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Entity Incorporation, Date of Incorporation | Aug. 23, 2017 |
Entity Incorporation, State Country Name | PRC |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Technology development and service |
Hangzhou Yaowei Technology Co Ltd | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Entity Incorporation, Date of Incorporation | Jan. 24, 2018 |
Entity Incorporation, State Country Name | PRC |
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 |
Entity Incorporation, State Country Name | PRC |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Finance information service |
Hangzhou Micro-car Auction Co., Ltd. | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Entity Incorporation, Date of Incorporation | Jun. 21, 2018 |
Entity Incorporation, State Country Name | PRC |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Second-hand car operation |
Organization (Details 1)
Organization (Details 1) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) |
Current assets: | ||||
Cash and cash equivalents | ¥ 1,741,911 | $ 253,350 | ¥ 1,765,572 | ¥ 1,314,814 |
Restricted cash | 1,619,937 | 235,610 | 1,092,921 | |
Loans and advances, net | 1,482,368 | 215,602 | 1,938,492 | |
Short-term investments | 4,100 | 596 | 8,500 | |
Amounts due from related parties | 21,797 | 3,170 | 9,168 | |
Total current assets | 5,430,278 | 789,802 | 5,248,250 | |
Non-current assets: | ||||
Restricted cash | 19,368 | 2,817 | 4,000 | |
Long-term investments | 13,333 | 1,939 | 359,333 | |
Loans and advances, net | 421,564 | 61,314 | 390,171 | |
Property, equipment and software, net | 88,731 | 12,905 | 99,433 | |
Goodwill | 5,812 | 845 | ¥ 0 | |
Deferred tax assets | 329,796 | 47,967 | 158,566 | |
Total non-current assets | 886,210 | 128,893 | 1,019,551 | |
Total assets | 6,316,488 | 918,695 | 6,267,801 | |
Current liabilities: | ||||
Short-term borrowings | 200,000 | |||
Payable to institutional funding partners and online investors | 1,005,236 | 146,206 | 1,770,681 | |
Current account with online investors and borrowers | 2,005,605 | 291,703 | 1,883,446 | |
Income tax payable | 70,679 | 10,280 | 243,338 | |
Accrued expenses and other liabilities | 501,439 | 72,931 | 461,295 | |
Amounts due to related parties | 28,728 | 4,179 | 62,900 | |
Total current liabilities | 3,623,649 | 527,039 | 4,633,990 | |
Non-current liabilities: | ||||
Payable to institutional funding partners and online investors | 450,160 | 65,473 | 416,118 | |
Other non-current liabilities | 14,110 | 2,052 | 40,719 | |
Total non-current liabilities | 475,613 | 69,175 | 457,724 | |
Total liabilities | 4,099,262 | 596,214 | 5,091,714 | |
VIE | ||||
Current assets: | ||||
Cash and cash equivalents | 1,419,293 | 206,428 | 1,765,572 | |
Restricted cash | 1,619,937 | 235,610 | 1,092,921 | |
Loans and advances, net | 1,482,368 | 215,602 | 1,938,492 | |
Short-term investments | 4,100 | 596 | 8,500 | |
Prepaid expenses and other assets | 553,251 | 80,466 | 433,597 | |
Amounts due from related parties | 42,680 | 6,208 | 9,168 | |
Total current assets | 5,121,629 | 744,910 | 5,248,250 | |
Non-current assets: | ||||
Restricted cash | 19,368 | 2,817 | 4,000 | |
Long-term investments | 13,333 | 1,939 | 359,333 | |
Loans and advances, net | 421,564 | 61,314 | 390,171 | |
Prepaid expenses and other assets | 7,606 | 1,106 | 8,048 | |
Property, equipment and software, net | 88,684 | 12,899 | 99,433 | |
Goodwill | 3,067 | 446 | ||
Deferred tax assets | 329,796 | 47,967 | 158,566 | |
Total non-current assets | 883,418 | 128,488 | 1,019,551 | |
Total assets | 6,005,047 | 873,398 | 6,267,801 | |
Current liabilities: | ||||
Short-term borrowings | 0 | 0 | 200,000 | |
Payable to institutional funding partners and online investors | 1,005,236 | 146,206 | 1,770,681 | |
Current account with online investors and borrowers | 2,005,605 | 291,703 | 1,883,446 | |
Income tax payable | 59,461 | 8,648 | 243,338 | |
Accrued expenses and other liabilities | 459,415 | 66,820 | 461,295 | |
Amounts due to related parties | 452,518 | 65,816 | 62,900 | |
Deferred revenue | 11,962 | 1,740 | 12,330 | |
Total current liabilities | 3,994,197 | 580,933 | 4,633,990 | |
Non-current liabilities: | ||||
Payable to institutional funding partners and online investors | 450,160 | 65,473 | 416,118 | |
Deferred revenue | 11,343 | 1,650 | 887 | |
Other non-current liabilities | 14,110 | 2,052 | 40,719 | |
Total non-current liabilities | 475,613 | 69,175 | 457,724 | |
Total liabilities | ¥ 4,469,810 | $ 650,108 | ¥ 5,091,714 |
Organization (Details 2)
Organization (Details 2) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Net revenues | ¥ 204,953 | |||
Net income | ¥ 604,630 | $ 87,939 | ¥ 474,821 | 291,029 |
VIE | ||||
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Net revenues | 3,917,701 | 569,806 | 3,545,430 | 1,761,380 |
Net income | ¥ 231,872 | $ 33,724 | ¥ 474,821 | ¥ 291,029 |
Organization (Details 3)
Organization (Details 3) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Net cash provided by operating activities | ¥ 1,214,774 | $ 176,679 | ¥ 2,284,077 | ¥ 924,388 |
Net cash used in investing activities | (6,468) | (938) | (2,941,921) | (337,051) |
Net cash provided by (used in) financing activities | (686,883) | (99,903) | 2,205,523 | 458,614 |
VIE | ||||
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Net cash provided by operating activities | 1,204,835 | 175,236 | 2,284,077 | 924,388 |
Net cash used in investing activities | (9,916) | (1,442) | (2,941,921) | (337,051) |
Net cash provided by (used in) financing activities | ¥ (998,814) | $ (145,271) | ¥ 2,205,523 | ¥ 458,614 |
Organization (Detail Textuals)
Organization (Detail Textuals) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018CNY (¥)shares | Dec. 31, 2018USD ($)shares | Apr. 10, 2018shares | Jan. 26, 2018shares | Dec. 31, 2017CNY (¥)shares | |
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% | ||||
Series A preferred shares | |||||
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |||||
Other ordinary shareholders of the VIE | 9,146,250 | ||||
Series A+ preferred shares | |||||
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |||||
Other ordinary shareholders of the VIE | 1,829,250 | ||||
Series B preferred shares | |||||
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |||||
Other ordinary shareholders of the VIE | 3,048,800 | ||||
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 | ||||
VIE | |||||
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |||||
Net assets | ¥ 1,535,237 | $ 223,290 | ¥ 1,176,087 | ||
IPO | VIE | Series A preferred shares | |||||
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |||||
Other ordinary shareholders of the VIE | 9,146,250 | ||||
IPO | VIE | Series A+ preferred shares | |||||
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |||||
Other ordinary shareholders of the VIE | 1,829,250 | ||||
IPO | VIE | Series B preferred shares | |||||
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |||||
Other ordinary shareholders of the VIE | 3,048,800 | ||||
IPO | VIE | 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 | ||||
IPO | YAOH WDAI LTD | Ordinary shares | |||||
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |||||
Common Stock, Shares, Issued | 48,392,050 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Recurring ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term time deposits | ¥ 44,322 | |||
Loans and advances, net - non-current | ¥ 421,564 | $ 61,314 | 390,171 | $ 61,314 |
Long-term payable to institutional - funding partners and online investors | 419,039 | 60,947 | 383,043 | 60,947 |
Recurring short-term investments Available-for-sale debt securities | 4,100 | $ 596 | 8,500 | $ 596 |
Quoted prices in active markets for identical assets (Level 1) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term time deposits | 0 | |||
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 | ||
Significant other observable inputs (Level 2) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term time deposits | 44,322 | |||
Loans and advances, net - non-current | 421,564 | 390,171 | ||
Long-term payable to institutional - funding partners and online investors | 419,039 | 383,043 | ||
Recurring short-term investments Available-for-sale debt securities | 4,100 | 8,500 | ||
Significant unobservable inputs (Level 3) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term time deposits | 0 | |||
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 1) | 12 Months Ended |
Dec. 31, 2018 | |
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 2) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Disaggregation of Revenue [Line Items] | ||||
Total | ¥ 204,953 | |||
Late payment penalties and loan collection fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | ¥ 113,313 | $ 16,481 | ¥ 218,675 | 158,154 |
Others | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 76,399 | 11,111 | 86,362 | 46,799 |
Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | ¥ 189,712 | $ 27,592 | ¥ 305,037 | ¥ 204,953 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Detail Textuals) ¥ in Thousands, $ in Thousands | May 01, 2018 | Apr. 04, 2018 | Dec. 31, 2018CNY (¥)Segment | Dec. 31, 2018USD ($)Segment | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2018USD ($) |
Accounting Policies [Abstract] | |||||||
Foreign exchange rate per US$1.00 | 6.8755 | 6.8755 | |||||
Amount of restricted cash related to cash not yet disbursed | ¥ 1,583,178 | ¥ 1,083,421 | $ 230,264 | ||||
Amount of cash held by banks as guarantee deposits paid on contracts and other restrictions | 56,127 | 13,500 | 8,163 | ||||
Maximum potential undiscounted future payment to make under guarantee obligation | 2,938,661 | 551,170 | $ 427,411 | ||||
Provision for financial guarantee liabilities | 21,712 | $ 3,158 | 0 | ¥ 0 | |||
Research and development | 139,318 | 20,263 | 100,966 | 56,142 | |||
Cash incentives accounted for as reduction of revenue | 268,813 | 39,097 | 65,915 | 52,374 | |||
Cash incentives accounted for as reduction of loan payables | 10,746 | 1,563 | 7,453 | 7 | |||
Advertising costs | 166,627 | 24,235 | 203,972 | 38,017 | |||
Amount of expenses for employee benefits | ¥ 181,798 | $ 26,441 | 137,902 | 46,491 | |||
Number of Reportable Segments | 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 | ¥ 330,116 | $ 48,013 | ¥ 267,970 | ¥ 118,987 | |||
Share split ratio | 50 | 50 | |||||
New accounting pronouncement or change in accounting principle, effect of change on revenue | ¥ 0 | $ 0 |
Concentration of risks (Detail
Concentration of risks (Detail Textuals) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Risks and Uncertainties [Abstract] | |||
Description of individual borrowings for revenue and loan and advances | 10% or more | 10% or more | |
Percentage of appreciation in foreign currency | 5.80% | ||
Percentage of depreciation in foreign currency | 5.40% | 6.40% |
Loans and advances, net (Detail
Loans and advances, net (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | |
Current portion: | ||||
Total current loans and advances | ¥ 2,246,691 | $ 326,768 | ¥ 2,343,422 | |
Allowance for loans and advances | (764,323) | (111,166) | (404,930) | |
Loans and advances, net | 1,482,368 | 215,602 | 1,938,492 | |
Non-current portion | ||||
Total non-current loans and advances | 427,591 | 62,191 | 391,531 | |
Allowance for loans and advances | (6,027) | (877) | (1,360) | |
Loans and advances, net | 421,564 | 61,314 | 390,171 | |
Loans receivable | ||||
Current portion: | ||||
Total current loans and advances | [1] | 961,043 | 139,779 | 1,722,077 |
Loans receivable | Auto-backed loans | ||||
Current portion: | ||||
Total current loans and advances | [1] | 233,893 | 34,020 | 1,105,169 |
Non-current portion | ||||
Total non-current loans and advances | [1] | 176,923 | 25,732 | 230,634 |
Loans receivable | Other secured loans | ||||
Current portion: | ||||
Total current loans and advances | [1] | 139,939 | 20,353 | 104,292 |
Non-current portion | ||||
Total non-current loans and advances | [1] | 196,409 | 28,567 | 160,733 |
Loans receivable | Unsecured loans | ||||
Current portion: | ||||
Total current loans and advances | [1] | 587,211 | 85,406 | 512,616 |
Non-current portion | ||||
Total non-current loans and advances | [1] | 54,259 | 7,892 | 164 |
Acquired non-performing loans | ||||
Current portion: | ||||
Total current loans and advances | [2] | 1,285,648 | 186,989 | 618,858 |
Acquired non-performing loans | Auto-backed loans | ||||
Current portion: | ||||
Total current loans and advances | [2] | 723,404 | 105,215 | 438,942 |
Acquired non-performing loans | Other secured loans | ||||
Current portion: | ||||
Total current loans and advances | [2] | 364,424 | 53,003 | 58,961 |
Acquired non-performing loans | Unsecured loans | ||||
Current portion: | ||||
Total current loans and advances | [2] | 197,820 | 28,771 | 120,955 |
Advances to borrowers | ||||
Current portion: | ||||
Total current loans and advances | [3] | ¥ 0 | $ 0 | ¥ 2,487 |
[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; | |||
[3] | Advances to borrowers are advances provided to borrowers with urgent financing needs, before online investors fully fund the loans. |
Loans and advances, net (Parent
Loans and advances, net (Parentheticals) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Allowance for loans and advances | ||||
Beginning balance | ¥ (406,290) | $ (59,092) | ¥ (67,528) | ¥ (9,705) |
Current year provision | (751,572) | (109,312) | (484,063) | (144,617) |
Recoveries of loans previously written off | (28,258) | (4,110) | (18,943) | (9,268) |
Write-offs | 415,770 | 60,471 | 164,244 | 96,062 |
Ending balance | (770,350) | $ (112,043) | (406,290) | (67,528) |
Loans receivable | Auto-backed loans | ||||
Allowance for loans and advances | ||||
Beginning balance | (5,149) | 0 | 0 | |
Current year provision | (7,864) | (5,149) | 0 | |
Recoveries of loans previously written off | 0 | 0 | 0 | |
Write-offs | 0 | 0 | 0 | |
Ending balance | (13,013) | (5,149) | 0 | |
Loans receivable | Other secured loans | ||||
Allowance for loans and advances | ||||
Beginning balance | (913) | 0 | 0 | |
Current year provision | (4,427) | (913) | 0 | |
Recoveries of loans previously written off | 0 | 0 | 0 | |
Write-offs | 0 | 0 | 0 | |
Ending balance | (5,340) | (913) | 0 | |
Loans receivable | Unsecured loans | ||||
Allowance for loans and advances | ||||
Beginning balance | (64,515) | 0 | 0 | |
Current year provision | 4,106 | (64,515) | 0 | |
Recoveries of loans previously written off | 0 | 0 | 0 | |
Write-offs | 0 | 0 | 0 | |
Ending balance | (60,409) | (64,515) | 0 | |
Acquired non-performing loans | Auto-backed loans | ||||
Allowance for loans and advances | ||||
Beginning balance | (252,174) | (67,156) | (9,705) | |
Current year provision | (430,213) | (327,453) | (142,715) | |
Recoveries of loans previously written off | (27,879) | (18,943) | (9,268) | |
Write-offs | 242,492 | 161,378 | 94,532 | |
Ending balance | (467,774) | (252,174) | (67,156) | |
Acquired non-performing loans | Other secured loans | ||||
Allowance for loans and advances | ||||
Beginning balance | (3,755) | 0 | 0 | |
Current year provision | (53,245) | (4,832) | (1,530) | |
Recoveries of loans previously written off | (24) | 0 | 0 | |
Write-offs | 18,323 | 1,077 | 1,530 | |
Ending balance | (38,701) | (3,755) | 0 | |
Acquired non-performing loans | Unsecured loans | ||||
Allowance for loans and advances | ||||
Beginning balance | (79,784) | (372) | 0 | |
Current year provision | (259,929) | (81,201) | (372) | |
Recoveries of loans previously written off | (355) | 0 | 0 | |
Write-offs | 154,955 | 1,789 | 0 | |
Ending balance | ¥ (185,113) | ¥ (79,784) | ¥ (372) |
Loans and advances, net (Deta_3
Loans and advances, net (Details 2) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | ¥ 1,264,800 | ¥ 2,093,511 | |
Total | 1,388,634 | $ 201,970 | 2,113,608 |
1-30 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 77,162 | 17,065 | |
31-60 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 15,440 | 2,427 | |
61-90 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 10,099 | 276 | |
91-120 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 5,197 | 283 | |
121-150 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 3,895 | 46 | |
151-180 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 3,125 | 0 | |
181-360 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 8,916 | 0 | |
Over 360 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 0 | 0 | |
Loans receivable | Auto-backed loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 383,469 | 1,331,760 | |
Total | 410,816 | 59,752 | 1,335,803 |
Loans receivable | Auto-backed loans | 1-30 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 15,939 | 3,015 | |
Loans receivable | Auto-backed loans | 31-60 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 3,523 | 813 | |
Loans receivable | Auto-backed loans | 61-90 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 3,663 | 50 | |
Loans receivable | Auto-backed loans | 91-120 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 578 | 165 | |
Loans receivable | Auto-backed loans | 121-150 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 0 | 0 | |
Loans receivable | Auto-backed loans | 151-180 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 496 | 0 | |
Loans receivable | Auto-backed loans | 181-360 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 3,148 | 0 | |
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 | 324,102 | 265,025 | |
Total | 336,348 | 48,920 | 265,025 |
Loans receivable | Other secured loans | 1-30 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 7,929 | 0 | |
Loans receivable | Other secured loans | 31-60 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 3,168 | 0 | |
Loans receivable | Other secured loans | 61-90 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 1,149 | 0 | |
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 | 557,229 | 496,726 | |
Total | 641,470 | 93,298 | 512,780 |
Loans receivable | Unsecured loans | 1-30 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 53,294 | 14,050 | |
Loans receivable | Unsecured loans | 31-60 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 8,749 | 1,614 | |
Loans receivable | Unsecured loans | 61-90 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 5,287 | 226 | |
Loans receivable | Unsecured loans | 91-120 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 4,619 | 118 | |
Loans receivable | Unsecured loans | 121-150 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 3,895 | 46 | |
Loans receivable | Unsecured loans | 151-180 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 2,629 | 0 | |
Loans receivable | Unsecured loans | 181-360 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | 5,768 | 0 | |
Loans receivable | Unsecured loans | Over 360 days past due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Days Past Due | ¥ 0 | ¥ 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, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Short-term Investments [Abstract] | ||||
Interest income from short-term investments | ¥ 11,685 | $ 1,699 | ¥ 17,202 | ¥ 9,552 |
Prepaid expenses and other as_3
Prepaid expenses and other assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | |
Current: | ||||
Guarantee deposits | ¥ 116,535 | $ 16,949 | ¥ 52,385 | |
Amounts due from third-party payment platforms | [1] | 85,127 | 12,381 | 204,231 |
Prepaid rental and deposits | 49,893 | 7,257 | 72,186 | |
Others | 308,610 | 44,887 | 104,795 | |
Total | 560,165 | 81,474 | 433,597 | |
Non-current: | ||||
Guarantee Deposits | 2,000 | 291 | 0 | |
Prepaid rental and deposits | 5,606 | 815 | 8,048 | |
Total | ¥ 7,606 | $ 1,106 | ¥ 8,048 | |
[1] | 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, 2017 and 2018. |
Long-term investments (Details)
Long-term investments (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Long-Term Investments [Line Items] | |||
Long-term Investments | ¥ 13,333 | $ 1,939 | ¥ 359,333 |
Cost method investments | |||
Long-Term Investments [Line Items] | |||
Long-term Investments | 13,333 | 1,939 | 309,333 |
Time deposits | |||
Long-Term Investments [Line Items] | |||
Long-term Investments | ¥ 0 | $ 0 | ¥ 50,000 |
Property, equipment and softw_3
Property, equipment and software, net (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Property, Plant and Equipment [Line Items] | |||
Total | ¥ 145,144 | $ 21,110 | ¥ 115,330 |
Less: Accumulated depreciation and amortization | (56,413) | (8,205) | (15,897) |
Property, equipment and software, net | 88,731 | 12,905 | 99,433 |
Computer and electronic equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total | 55,523 | 8,075 | 38,298 |
Leasehold improvement | |||
Property, Plant and Equipment [Line Items] | |||
Total | 46,596 | 6,777 | 38,900 |
Vehicles | |||
Property, Plant and Equipment [Line Items] | |||
Total | 20,615 | 2,998 | 20,985 |
Office furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total | 4,321 | 628 | 6,094 |
Software | |||
Property, Plant and Equipment [Line Items] | |||
Total | ¥ 18,089 | $ 2,632 | ¥ 11,053 |
Property, equipment and softw_4
Property, equipment and software, net (Detail Textuals) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation | ¥ 42,431 | $ 6,171 | ¥ 12,747 | ¥ 3,294 |
Short-term borrowings (Detail T
Short-term borrowings (Detail Textuals) - Yangquan Commercial Bank Co. Ltd. ("Yangquan") ¥ in Thousands | 1 Months Ended |
Jul. 31, 2017CNY (¥) | |
Short-term Debt [Line Items] | |
Aggregate amount of short term debt | ¥ 200,000 |
Terms of short term debt | one year |
Percentage of fixed annual interest rate | 5.22% |
Short-term borrowing repayment maturity date | Jul. 31, 2018 |
Payable to institutional fund_3
Payable to institutional funding partners and online investors (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | |
Schedule Of Payable To Institutional Funding Partners And Online Investors [Line Items] | |||
Payable to institutional funding partners and online investors, current | ¥ 1,005,236 | $ 146,206 | ¥ 1,770,681 |
Payable to institutional funding partners and online investors, Non-current | 450,160 | 65,473 | 416,118 |
Institutional funding partners | |||
Schedule Of Payable To Institutional Funding Partners And Online Investors [Line Items] | |||
Payable to institutional funding partners and online investors, current | 390,908 | 56,856 | 523,328 |
Payable to institutional funding partners and online investors, Non-current | ¥ 395,901 | $ 57,581 | 416,118 |
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 months | ||
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 | ¥ 614,328 | $ 89,350 | 1,247,353 |
Payable to institutional funding partners and online investors, Non-current | ¥ 54,259 | $ 7,892 | ¥ 0 |
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, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Long-term borrowings and interest payable | |||
Contractual obligations, Less than 1 year | ¥ 485,878 | $ 70,668 | ¥ 259,356 |
Contractual obligations, 1-2 years | 412,650 | 60,017 | 256,945 |
Contractual obligations, Greater than 2 years | 54,275 | 7,894 | 189,971 |
Contractual obligation,Total | ¥ 952,803 | $ 138,579 | ¥ 706,272 |
Current account with online i_3
Current account with online investors and borrowers (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Current Account With Online Investors And Borrowers [Abstract] | |||
Investor deposits | ¥ 1,461,080 | $ 212,505 | ¥ 1,097,259 |
Undrawn borrower funds and deposits | 544,525 | 79,198 | 786,187 |
Total | ¥ 2,005,605 | $ 291,703 | ¥ 1,883,446 |
Accrued expenses and other li_3
Accrued expenses and other liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Accrued Liabilities and Other Liabilities [Abstract] | |||
Payroll and welfare payable | ¥ 264,600 | $ 38,484 | ¥ 254,509 |
Accrued marketing expenses | 38,536 | 5,605 | 50,163 |
Other taxes payable | 24,399 | 3,549 | 25,862 |
Others | 173,904 | 25,293 | 130,761 |
Total | ¥ 501,439 | $ 72,931 | ¥ 461,295 |
Interest income, net (Details)
Interest income, net (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Interest Income (Expense), Net [Abstract] | ||||
Interest income | ¥ 73,729 | $ 10,723 | ¥ 35,742 | ¥ 13,793 |
Interest expenses | (5,597) | (814) | (4,949) | 0 |
Bank charges | (1,341) | (195) | (490) | (145) |
Total | ¥ 66,791 | $ 9,714 | ¥ 30,303 | ¥ 13,648 |
Income taxes (Details)
Income taxes (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Current income tax | ¥ 330,859 | $ 48,122 | ¥ 318,090 | ¥ 136,400 |
Deferred income tax | (171,230) | (24,905) | (124,887) | (31,270) |
Income tax expenses | ¥ 159,629 | $ 23,217 | ¥ 193,203 | ¥ 105,130 |
Income taxes (Details 1)
Income taxes (Details 1) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) |
Deferred tax assets | |||
Allowance for loans and advances | ¥ 235,415 | $ 34,240 | ¥ 128,885 |
Net operating loss carry forwards | 46,550 | 6,770 | 41,875 |
Accruals for share-based compensation | 29,637 | 4,311 | 10,180 |
Accruals for payroll and other costs | 19,925 | 2,898 | 24,455 |
Less: valuation allowance | (1,731) | (252) | (46,829) |
Balance at the end of the year | ¥ 329,796 | $ 47,967 | ¥ 158,566 |
Income taxes (Details 2)
Income taxes (Details 2) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Income before provision of income tax | ¥ 764,259 | $ 111,156 | ¥ 668,024 | ¥ 396,159 |
PRC statutory income tax rate | 25.00% | 25.00% | 25.00% | 25.00% |
Income tax computed at statutory tax rate | ¥ 191,065 | $ 27,790 | ¥ 167,006 | ¥ 99,039 |
Research and development super-deduction | (16,254) | (2,364) | (11,912) | (5,034) |
Non-deductible expenses | 29,918 | 4,351 | 1,499 | 942 |
Changes in valuation allowance | (45,098) | (6,560) | 36,610 | 10,183 |
Income tax expenses | ¥ 159,629 | $ 23,217 | ¥ 193,203 | ¥ 105,130 |
Income taxes (Detail Textuals)
Income taxes (Detail Textuals) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2018USD ($) | |
Income Tax Disclosure [Abstract] | |||||
Income tax rate for foreign subsidiary | 16.50% | 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 | ¥ 1,041,492 | $ 151,479 | |||
Percentage of income tax research and development super deduction | 175.00% | 175.00% | 150.00% | 150.00% | |
Research and development expense | ¥ 86,686 | $ 12,608 | ¥ 95,295 | ¥ 40,271 | |
Research and development super-deduction | ¥ 16,254 | $ 2,364 | ¥ 11,912 | ¥ 5,034 |
Earnings per share (Details)
Earnings per share (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | Dec. 31, 2016CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Net income attributable to ordinary shareholders | ¥ 721,619 | $ 104,954 | ¥ 466,217 | ¥ 170,168 |
Allocation of net income attributable to preferred shareholders | ¥ | (115,555) | (44,428) | ||
Numerator for computing basic earnings per share | ¥ | ¥ 350,662 | ¥ 125,740 | ||
Denominator: | ||||
Weighted average number of ordinary shares outstanding - basic | 50,954,061 | 50,954,061 | 48,392,050 | 48,392,050 |
Earnings per share - basic | (per share) | ¥ 10.93 | $ 1.59 | ¥ 7.25 | ¥ 2.60 |
Class A ordinary shares | ||||
Numerator: | ||||
Net income attributable to ordinary shareholders | ¥ 338,385 | $ 49,216 | ||
Allocation of net income attributable to preferred shareholders | (164,830) | (23,974) | ||
Numerator for computing basic earnings per share | ¥ 173,555 | $ 25,242 | ||
Denominator: | ||||
Weighted average number of ordinary shares outstanding - basic | 15,882,661 | 15,882,661 | ||
Earnings per share - basic | (per share) | ¥ 10.93 | $ 1.59 | ||
Class B ordinary shares | ||||
Numerator: | ||||
Net income attributable to ordinary shareholders | ¥ 383,234 | $ 55,739 | ||
Allocation of net income attributable to preferred shareholders | 0 | 0 | ||
Numerator for computing basic earnings per share | ¥ 383,234 | $ 55,739 | ||
Denominator: | ||||
Weighted average number of ordinary shares outstanding - basic | 35,071,400 | 35,071,400 | ||
Earnings per share - basic | (per share) | ¥ 10.93 | $ 1.59 |
Earnings per share (Details 1)
Earnings per share (Details 1) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | Dec. 31, 2016CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Numerator for computing basic earnings per share | ¥ | ¥ 350,662 | ¥ 125,740 | ||
Allocation of net income attributable to Series C redeemable convertible preferred shares | ¥ | 22,324 | 0 | ||
Numerator for computing diluted earnings per share | ¥ | ¥ 372,986 | ¥ 125,740 | ||
Denominator: | ||||
Weighted average number of ordinary shares outstanding - basic | 50,954,061 | 50,954,061 | 48,392,050 | 48,392,050 |
Conversion of Series C redeemable convertible preferred shares to ordinary shares | 3,074,400 | 0 | ||
Weighted average number of ordinary shares outstanding - diluted | 50,954,061 | 50,954,061 | 51,466,450 | 48,392,050 |
Earnings per share - basic | (per share) | ¥ 10.93 | $ 1.59 | ¥ 7.25 | ¥ 2.60 |
Class A ordinary shares | ||||
Numerator: | ||||
Numerator for computing basic earnings per share | ¥ 173,555 | $ 25,242 | ||
Allocation of net income attributable to Series C redeemable convertible preferred shares | 0 | 0 | ||
Numerator for computing diluted earnings per share | ¥ 173,555 | $ 25,242 | ||
Denominator: | ||||
Weighted average number of ordinary shares outstanding - basic | 15,882,661 | 15,882,661 | ||
Conversion of Series C redeemable convertible preferred shares to ordinary shares | 0 | 0 | ||
Weighted average number of ordinary shares outstanding - diluted | 15,882,661 | 15,882,661 | ||
Earnings per share - basic | (per share) | ¥ 10.93 | $ 1.59 | ||
Class B ordinary shares | ||||
Numerator: | ||||
Numerator for computing basic earnings per share | ¥ 383,234 | $ 55,739 | ||
Allocation of net income attributable to Series C redeemable convertible preferred shares | 0 | 0 | ||
Numerator for computing diluted earnings per share | ¥ 383,234 | $ 55,739 | ||
Denominator: | ||||
Weighted average number of ordinary shares outstanding - basic | 35,071,400 | 35,071,400 | ||
Conversion of Series C redeemable convertible preferred shares to ordinary shares | 0 | 0 | ||
Weighted average number of ordinary shares outstanding - diluted | 35,071,400 | 35,071,400 | ||
Earnings per share - basic | (per share) | ¥ 10.93 | $ 1.59 |
Share capital (Detail Textuals)
Share capital (Detail Textuals) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | Dec. 14, 2018shares | Apr. 14, 2017CNY (¥) | Nov. 15, 2018CNY (¥) | Nov. 15, 2018USD ($) | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2016CNY (¥) | Dec. 31, 2018¥ / sharesshares | Dec. 18, 2018$ / shares | Nov. 19, 2018$ / sharesshares | Jan. 26, 2018$ / sharesshares | Dec. 31, 2017$ / sharesshares | Dec. 31, 2017¥ / sharesshares |
Share Capital [Line Items] | |||||||||||||
Common stock, shares authorized | 24,982,901,300 | 24,982,901,300 | |||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.000002 | $ 0.000002 | $ 0.000002 | ||||||||||
Common stock, share issued | 48,392,050 | 48,392,050 | 48,392,050 | ||||||||||
Common stock, share outstanding | 48,392,050 | 48,392,050 | |||||||||||
Dividend payment | ¥ | ¥ 32,228 | ||||||||||||
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 | 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 | |||||||||||
Proceeds from IPO | ¥ 302,670 | $ 44,021 | ¥ 361,951 | ||||||||||
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 | $ 3,713 | |||||||||||
Over-allotment | |||||||||||||
Share Capital [Line Items] | |||||||||||||
Proceeds from IPO | ¥ 311,931 | $ 45,368 | |||||||||||
Series A preferred shares | |||||||||||||
Share Capital [Line Items] | |||||||||||||
Dividend payment | ¥ | ¥ 4,602 | ||||||||||||
Date of dividend declared | Apr. 14, 2017 | 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 | 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 | 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 | 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 | 35,375,777 | 35,375,777 | |||||||||||
Common stock, share outstanding | 35,375,777 | 35,375,777 | |||||||||||
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 | ¥ 0.000002 | |||||||||||
Common stock, share issued | 35,071,400 | 35,071,400 | |||||||||||
Common stock, share outstanding | 35,071,400 | 35,071,400 | |||||||||||
Issuance of ADS to underwriters on exercise of options | 4,956,427 | 4,956,427 | |||||||||||
Ordinary shares | |||||||||||||
Share Capital [Line Items] | |||||||||||||
Dividend payment | ¥ | ¥ 23,624 | ||||||||||||
Date of dividend declared | Apr. 14, 2017 | Apr. 14, 2017 | |||||||||||
Dividends payable, amount per share (in dollars per share) | ¥ / shares | ¥ 0.50 | ||||||||||||
Ordinary shares | 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, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Origination and servicing expenses: | ||||
Total | ¥ 162,853 | $ 23,686 | ¥ 260,026 | ¥ 177,210 |
General and administrative expenses: | ||||
Total | 276 | 40 | 21,387 | 179 |
Sales and marketing expenses: | ||||
Total | 9,631 | 1,401 | 7,978 | 3,264 |
Loan facilitation services | ||||
Related Party Transaction [Line Items] | ||||
Net revenues | 781 | 114 | 851 | 833 |
Key management and their immediate family members | Loan facilitation services | ||||
Related Party Transaction [Line Items] | ||||
Net revenues | 742 | 108 | 851 | 833 |
Hangzhou Ruituo Technology Co., Ltd. | Loan facilitation services | ||||
Related Party Transaction [Line Items] | ||||
Net revenues | 39 | 6 | 0 | 0 |
Beijing Lezhihui Technology Co., Ltd. | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 22,739 | 3,307 | 49,377 | 5,578 |
Beijing Lezhihui Technology Co., Ltd. | Other revenues | ||||
Related Party Transaction [Line Items] | ||||
Net revenues | 13,362 | 1,943 | 3,740 | 2,179 |
Chunan Wanglan Financial Information Advisory Services Partnership (GP) | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 18,077 | 2,629 | 0 | 0 |
Chunan Wenjun Financial Information Advisory Services Partnership (GP) | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 11,290 | 1,642 | 0 | 0 |
Chunan Wenkang Financial Information Advisory Services Partnership (GP) | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 9,103 | 1,324 | 0 | 0 |
Chunan Wenhai Financial Information Advisory Services Partnership (GP) | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 8,743 | 1,272 | 0 | 0 |
Chunan Wenbin Financial Information Advisory Services Partnership (GP) | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 8,455 | 1,230 | 0 | 0 |
Chunan Wenlin Financial Information Advisory Services Partnership (GP) | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 8,408 | 1,223 | 0 | 0 |
Chunan Wenrong Financial Information Advisory Services Partnership (GP) | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 8,357 | 1,215 | 0 | 0 |
Chunan Wenshe Financial Information Advisory Services Partnership (GP) | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 8,047 | 1,170 | 0 | 0 |
Chunan Wenbei Financial Information Advisory Services Partnership (GP) | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 7,717 | 1,122 | 0 | 0 |
Chunan Wensheng Financial Information Advisory Services Partnership (GP) | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 7,600 | 1,105 | 0 | 0 |
Chunan Wenyang Financial Information Advisory Services Partnership (GP) | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 6,924 | 1,007 | 0 | 0 |
Chunan Wangxia Financial Information Advisory Services Partnership (GP) | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 6,761 | 983 | 0 | 0 |
Chunan Wanglin Financial Information Advisory Services Partnership (GP) | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 5,133 | 747 | 0 | 0 |
Chunan Wangqi Financial Information Advisory Services Partnership (GP) | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 4,969 | 723 | 0 | 0 |
Chunan Wangqun Financial Information Advisory Services Partnership (GP) | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 4,948 | 720 | 0 | 0 |
Chunan Wangqian Financial Information Advisory Services Partnership (GP) | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 2,424 | 353 | 0 | 0 |
Chunan Yunxiu Financial Information Advisory Services Partnership (GP) | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 1,909 | 278 | 0 | 0 |
Chunan Wencai Information Advisory Services Company | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 0 | 0 | 99,601 | 87,356 |
Chunan Wangcai Information Advisory Services Company | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 0 | 0 | 62,496 | 57,833 |
Chunan Yuntong Information Advisory Services Company | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 0 | 0 | 2,793 | 3,155 |
Zhejiang Hongrui Investment Management Co., Ltd. | ||||
Origination and servicing expenses: | ||||
Collecting costs | 6,253 | 909 | 20,469 | 13,221 |
Zhejiang Ruituo Information Technology Co., Ltd. | ||||
Origination and servicing expenses: | ||||
Collecting costs | 4,996 | 727 | 0 | 0 |
Sales and marketing expenses: | ||||
Trademark expenses | 0 | 0 | 62 | 0 |
Zhejiang Qunshuo Electronics Co., Ltd | ||||
Origination and servicing expenses: | ||||
GPS costs | 0 | 0 | 25,290 | 10,067 |
Suzhou Weixin Zhonghua Venture Capital Partnership (LLP) | ||||
General and administrative expenses: | ||||
Consulting expenses | 0 | 0 | 20,000 | 0 |
Hangzhou Qiandaohuyaodage trading company | ||||
General and administrative expenses: | ||||
Welfare expenses | ¥ | 276 | 1,387 | 179 | |
Total | $ | 40 | |||
Weiyi (Hangzhou) Internet Financial Information Service Co., Ltd. | ||||
Sales and marketing expenses: | ||||
Promotion expenses | ¥ 9,631 | $ 1,401 | ¥ 7,916 | ¥ 3,264 |
Related party balances and tr_4
Related party balances and transactions (Details 1) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | |
Related Party Transaction [Line Items] | ||||
Total | ¥ 21,797 | $ 3,170 | ¥ 9,168 | |
Zhejiang Zhongbo Finance Lease Co., Ltd. | ||||
Related Party Transaction [Line Items] | ||||
Total | [1] | 10,010 | 1,456 | 10 |
Hangzhou Ruituo Technology Co., Ltd. | ||||
Related Party Transaction [Line Items] | ||||
Total | [2] | 7,081 | 1,030 | 4,497 |
Zhejiang Ruituo Non-financing Guarantee Co., Ltd. | ||||
Related Party Transaction [Line Items] | ||||
Total | 2,692 | 392 | 236 | |
Shanghai Zaohui Finance Lease Co., Ltd. | ||||
Related Party Transaction [Line Items] | ||||
Total | 0 | 0 | 3,993 | |
Others | ||||
Related Party Transaction [Line Items] | ||||
Total | ¥ 2,014 | $ 292 | ¥ 432 | |
[1] | The balance represents loans provided to Zhejiang Zhongbo Finance Lease Co., Ltd. ("Zhongbo") for the advances to borrowers of certain type of loan product of the Company. | |||
[2] | The balance mainly represents loans provided to Hangzhou Ruituo Technology Co., Ltd. and receivable from the disposal of vehicle collaterals for overdue loans. |
Related party balances and tr_5
Related party balances and transactions (Details 2) ¥ in Thousands, $ in Thousands | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | |
Related Party Transaction [Line Items] | ||||
Total | ¥ 28,728 | $ 4,179 | ¥ 62,900 | |
Key management and their immediate family members | ||||
Related Party Transaction [Line Items] | ||||
Total | [1] | 7,626 | 1,109 | 30,701 |
Mr. Hong Yao | ||||
Related Party Transaction [Line Items] | ||||
Total | [1] | 950 | 138 | 4,335 |
Zhejiang Zhongbo Finance Lease Co., Ltd. | ||||
Related Party Transaction [Line Items] | ||||
Total | [2] | 9,471 | 1,379 | 0 |
Chunan Wangqi Financial Information Advisory Services Partnership (GP) | ||||
Related Party Transaction [Line Items] | ||||
Total | 1,806 | 263 | 0 | |
Chunan Wangzhi Financial Information Advisory Services Partnership (GP) | ||||
Related Party Transaction [Line Items] | ||||
Total | 1,290 | 188 | 0 | |
Chunan Wangqun Financial Information Advisory Services Partnership (GP) | ||||
Related Party Transaction [Line Items] | ||||
Total | 1,110 | 161 | 0 | |
Other related service center operation partners | ||||
Related Party Transaction [Line Items] | ||||
Total | 4,833 | 703 | 0 | |
Hangzhou Ruituo Technology Co., Ltd. | ||||
Related Party Transaction [Line Items] | ||||
Total | 714 | 104 | 10,139 | |
Beijing Lezhihui Technology Co., Ltd. | ||||
Related Party Transaction [Line Items] | ||||
Total | 275 | 40 | 2,921 | |
Chunan Wangcai Information Advisory Services Company | ||||
Related Party Transaction [Line Items] | ||||
Total | 0 | 0 | 6,233 | |
Chunan Wencai Information Advisory Services Company | ||||
Related Party Transaction [Line Items] | ||||
Total | 0 | 0 | 5,718 | |
Others | ||||
Related Party Transaction [Line Items] | ||||
Total | ¥ 653 | $ 94 | ¥ 2,853 | |
[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 to borrowers of certain type of loan product of the Company. |
Share-based compensation (Detai
Share-based compensation (Details) - $ / shares | 1 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average expected life range (years) | 1 year 8 months 12 days | ||
Stock appreciation rights | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value per ordinary share (RMB) | $ 148.37 | $ 134.42 | |
Risk-free interest rate | 4.35% | 4.35% | |
Dividend yield | 0.00% | 0.00% | |
Expected volatility | 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 |
Share-based compensation (Det_2
Share-based compensation (Details 1) - Restricted Shares | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Number of shares | |
Outstanding, December 31, 2017 | shares | 0 |
Granted | shares | 131,000 |
Vested | shares | (131,000) |
Converted From Stock Appreciation Rights | shares | 1,349,367 |
Forfeited | shares | 0 |
Outstanding, December 31, 2018 | shares | 1,349,367 |
Weighted average grant-date fair value | |
Outstanding, December 31, 2017 | $ / shares | $ 0 |
Granted | $ / shares | 134.42 |
Vested | $ / shares | 134.42 |
Converted from stock appreciation rights | $ / shares | 216.43 |
Forfeited | $ / shares | 0 |
Outstanding, December 31, 2018 | $ / shares | $ 216.43 |
Share-based compensation (Det_3
Share-based compensation (Details 2) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated share-based compensation expenses | ¥ 106,571 | $ 15,500 | ¥ 40,719 | ¥ 32,326 |
Origination and servicing | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated share-based compensation expenses | 46,687 | 6,790 | 0 | 18,473 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated share-based compensation expenses | 45,104 | 6,560 | 35,223 | 0 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated share-based compensation expenses | ¥ 14,780 | $ 2,150 | ¥ 5,496 | ¥ 13,853 |
Share-based compensation (Det_4
Share-based compensation (Detail Textuals) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | Sep. 01, 2016¥ / sharesshares | Jun. 01, 2016¥ / sharesshares | Sep. 30, 2018CNY (¥) | Sep. 30, 2018USD ($)$ / shares | Aug. 31, 2018shares | Jan. 16, 2018$ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017$ / shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based compensation | ¥ 106,571 | $ 15,500 | ¥ 40,719 | ¥ 32,326 | ||||||||
Unrecognized non-employee share-based compensation expenses related to unvested restricted shares expected to vest | ¥ 162,366 | $ 23,615 | ||||||||||
Weighted average expected life | 1 year 8 months 12 days | 1 year 8 months 12 days | ||||||||||
2018 share incentive plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of restricted shares granted | 3,300,000 | |||||||||||
Share incentive plan term | 10 years | |||||||||||
2018 share incentive plan | January 1, 2019 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of shares granted | 181,390 | 181,390 | ||||||||||
2018 share incentive plan | February 1, 2019 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of shares granted | 1,248,561 | 1,248,561 | ||||||||||
2018 share incentive plan | March 1, 2019 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of shares granted | 14,000 | 14,000 | ||||||||||
2018 share incentive plan | April 1, 2019 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of shares granted | 47,000 | 47,000 | ||||||||||
Restricted shares | Directors and executives | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of restricted shares granted | 458,400 | 458,400 | 131,000 | |||||||||
Fair value of shares granted | (per share) | ¥ 70.52 | ¥ 70.52 | $ 134.42 | |||||||||
Share-based compensation | ¥ 17,610 | $ 2,561 | ¥ 32,326 | |||||||||
Stock appreciation rights | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based compensation | ¥ 88,961 | $ 12,939 | ¥ 40,719 | |||||||||
Percentage of stock appreciation rights equity interest | 2.13% | 2.13% | 2.72% | |||||||||
Exercisable period | 5 years | 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 | $ 15,485 | ||||||||||
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% | ||||||||||
Options | 2018 share incentive plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of shares granted | 1,419,561 | 1,419,561 | ||||||||||
Restricted share units | 2018 share incentive plan | ||||||||||||
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) - 12 months ended Dec. 31, 2018 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Foreign currency transaction adjustments, net of tax of nil | ¥ (2,700) | $ (393) |
Closing balance | ¥ (2,700) | $ (393) |
Commitments and contingencies_2
Commitments and contingencies (Details) - Dec. 31, 2018 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Commitments and Contingencies Disclosure [Abstract] | ||
2019 | ¥ 64,986 | $ 9,452 |
2020 | 30,904 | 4,495 |
2021 | 11,061 | 1,609 |
2022 | 744 | 108 |
2023 and thereafter | 255 | 37 |
Total | ¥ 107,950 | $ 15,701 |
Commitments and contingencies_3
Commitments and contingencies (Details 1) - Dec. 31, 2018 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Commitments and Contingencies Disclosure [Abstract] | ||
2019 | ¥ 804 | $ 117 |
2020 and thereafter | 0 | 0 |
Total | ¥ 804 | $ 117 |
Commitments and contingencies_4
Commitments and contingencies (Detail Textuals) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Rental expenses under operating leases | ¥ 131,808 | $ 19,171 | ¥ 107,911 | ¥ 23,401 |
Preferred shares (Details)
Preferred shares (Details) ¥ in Thousands, $ in Thousands | Sep. 09, 2017CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) |
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||
Begining Balance | ¥ 388,910 | ¥ 388,910 | ¥ 0 | ||
Capital injection for Series A, A+ and B preferred shares | 28,049 | ||||
Issuance of Series C redeemable convertible preferred shares (net of nil issuance costs) | 240,000 | ||||
Modification of Series A, A+ and B preferred shares | ¥ 861 | 861 | |||
Accretion of Series C redeemable convertible preferred shares | 120,000 | ||||
Dividends declared | (8,604) | ||||
Dividends paid | (8,604) | ||||
Reversal of accretion on Series C preferred shares | (120,000) | $ (17,453) | |||
Conversion of preferred shares to Class A ordinary shares | (268,910) | ||||
Ending Balance | 388,910 | 388,910 | |||
Series A | |||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||
Begining Balance | 18,856 | 18,856 | 0 | ||
Capital injection for Series A, A+ and B preferred shares | 18,293 | ||||
Issuance of Series C redeemable convertible preferred shares (net of nil issuance costs) | 0 | ||||
Modification of Series A, A+ and B preferred shares | 563 | ||||
Dividends declared | 4,602 | ||||
Dividends paid | (4,602) | ||||
Reversal of accretion on Series C preferred shares | 0 | ||||
Conversion of preferred shares to Class A ordinary shares | (18,856) | ||||
Ending Balance | 18,856 | 18,856 | |||
Series A+ | |||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||
Begining Balance | 3,771 | 3,711 | 0 | ||
Capital injection for Series A, A+ and B preferred shares | 3,658 | ||||
Issuance of Series C redeemable convertible preferred shares (net of nil issuance costs) | 0 | ||||
Modification of Series A, A+ and B preferred shares | 113 | ||||
Dividends declared | 920 | ||||
Dividends paid | (920) | ||||
Reversal of accretion on Series C preferred shares | 0 | ||||
Conversion of preferred shares to Class A ordinary shares | (3,771) | ||||
Ending Balance | 3,771 | 3,711 | |||
Series B | |||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||
Begining Balance | 6,283 | 6,283 | 0 | ||
Capital injection for Series A, A+ and B preferred shares | 6,098 | ||||
Issuance of Series C redeemable convertible preferred shares (net of nil issuance costs) | 0 | ||||
Modification of Series A, A+ and B preferred shares | 185 | ||||
Dividends declared | 1,534 | ||||
Dividends paid | (1,534) | ||||
Reversal of accretion on Series C preferred shares | 0 | ||||
Conversion of preferred shares to Class A ordinary shares | (6,283) | ||||
Ending Balance | 6,283 | 6,283 | |||
Series C | |||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||
Begining Balance | 360,000 | 360,000 | 0 | ||
Capital injection for Series A, A+ and B preferred shares | 0 | ||||
Issuance of Series C redeemable convertible preferred shares (net of nil issuance costs) | 240,000 | ||||
Modification of Series A, A+ and B preferred shares | 0 | ||||
Accretion of Series C redeemable convertible preferred shares | 120,000 | ||||
Dividends declared | 1,548 | ||||
Dividends paid | (1,548) | ||||
Reversal of accretion on Series C preferred shares | ¥ (120,000) | $ (17,453) | (240,000) | ||
Ending Balance | ¥ 360,000 | ¥ 360,000 |
Preferred shares (Detail Textua
Preferred shares (Detail Textuals) ¥ / shares in Units, ¥ in Thousands, $ in Thousands | Sep. 09, 2017CNY (¥) | Oct. 15, 2015CNY (¥)shares | Sep. 06, 2015CNY (¥)¥ / sharesshares | Oct. 24, 2016CNY (¥)shares | Mar. 16, 2016CNY (¥)shares | Dec. 31, 2018CNY (¥)¥ / shares | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Nov. 19, 2018shares |
Temporary Equity [Line Items] | ||||||||||
Issuance of Series C redeemable convertible preferred shares (net of nil issuance costs) | ¥ 240,000 | |||||||||
Dividends declared | ¥ (8,604) | |||||||||
Fair value per ordinary share at the commitment date | ¥ / shares | ¥ 73.80 | |||||||||
Reversal of accretion on Series C preferred shares | ¥ 120,000 | $ 17,453 | ||||||||
Temporary Equity, Modification Of Preferred Shares | ¥ 861 | 861 | ||||||||
Series A preferred shares | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Issuance of Series C redeemable convertible preferred shares (net of nil issuance costs) | 0 | |||||||||
Dividends declared | 4,602 | |||||||||
Liquidation preference amount of preferred shares | 18,293 | |||||||||
Reversal of accretion on Series C preferred shares | 0 | |||||||||
Temporary Equity, Modification Of Preferred Shares | 563 | |||||||||
Series A preferred shares | Hangzhou Handing Yuyou Share Investment Partnership (LLP) | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Capital injection for Series A, A+ and B preferred shares (in shares) | shares | 9,146,250 | |||||||||
Capital injection for Series A, A+ and B preferred shares | ¥ 18,293 | |||||||||
Preferred shares, conversion price | ¥ / shares | ¥ 1 | |||||||||
Series A+ preferred shares | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Issuance of Series C redeemable convertible preferred shares (net of nil issuance costs) | 0 | |||||||||
Dividends declared | 920 | |||||||||
Liquidation preference amount of preferred shares | 3,658 | |||||||||
Reversal of accretion on Series C preferred shares | 0 | |||||||||
Temporary Equity, Modification Of Preferred Shares | 113 | |||||||||
Series A+ preferred shares | Zhejiang Zheshang Lihai Venture Capital Partnership (LLP) and Hangzhou Lihai Hulian Venture Capital Partnership (LLP) | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Capital injection for Series A, A+ and B preferred shares (in shares) | shares | 1,829,250 | |||||||||
Capital injection for Series A, A+ and B preferred shares | ¥ 3,658 | |||||||||
Series B preferred shares | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Issuance of Series C redeemable convertible preferred shares (net of nil issuance costs) | 0 | |||||||||
Dividends declared | 1,534 | |||||||||
Liquidation preference amount of preferred shares | 6,098 | |||||||||
Reversal of accretion on Series C preferred shares | 0 | |||||||||
Temporary Equity, Modification Of Preferred Shares | 185 | |||||||||
Series B preferred shares | Zhejiang Handing Yuyou Financial Service Co., Ltd | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Capital injection for Series A, A+ and B preferred shares (in shares) | shares | 3,048,800 | |||||||||
Capital injection for Series A, A+ and B preferred shares | ¥ 6,098 | |||||||||
Series C redeemable convertible preferred shares | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Issuance of Series C redeemable convertible preferred shares (net of nil issuance costs) | ¥ 240,000 | |||||||||
Dividends declared | 1,548 | |||||||||
Percentage of preferred shares original issuance price as redemption price pursuant to condition | 100.00% | 100.00% | ||||||||
Percentage of annual simple return added in original issuance price pursuant to condition | 15.00% | 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% | 150.00% | ||||||||
Liquidation preference amount of preferred shares | ¥ 360,000 | |||||||||
Preferred shares, conversion price | ¥ / shares | ¥ 79.12 | |||||||||
Reversal of accretion on Series C preferred shares | ¥ 120,000 | $ 17,453 | 240,000 | |||||||
Temporary Equity, Modification Of Preferred Shares | ¥ 0 | |||||||||
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. | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Issuance of Series C redeemable convertible preferred shares (net of nil issuance costs) (in shares) | shares | 3,074,400 | |||||||||
Issuance of Series C redeemable convertible preferred shares (net of nil issuance costs) | ¥ 240,000 | |||||||||
Class A ordinary shares | IPO | ||||||||||
Temporary Equity [Line Items] | ||||||||||
Number of convertible preferred shares | shares | 17,098,700 |
Business combination (Details)
Business combination (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | |
Business Combinations [Abstract] | |||
Opening balance | ¥ 0 | ||
Goodwill acquired | ¥ 5,812 | 0 | |
Goodwill disposed | 0 | ¥ 0 | |
Closing balance | ¥ 5,812 | $ 845 |
Business combination (Detail Te
Business combination (Detail Textuals) ¥ in Thousands, $ in Thousands | 1 Months Ended | |||||||
May 24, 2018CNY (¥) | May 24, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Jun. 06, 2018CNY (¥) | Jun. 06, 2018USD ($) | May 24, 2018USD ($) | Dec. 31, 2016CNY (¥) | |
Business Acquisition [Line Items] | ||||||||
Goodwill recognized | ¥ 5,812 | $ 845 | ¥ 0 | |||||
Hangzhou Jiujiu Financial Information Service Limited | ||||||||
Business Acquisition [Line Items] | ||||||||
Percentage of equity interest | 70.00% | 70.00% | ||||||
Amount of consideration for acquisition | ¥ 4,500 | $ 654 | ||||||
Goodwill recognized | ¥ 3,067 | $ 446 | ||||||
Rymo Technology Industry Limited | ||||||||
Business Acquisition [Line Items] | ||||||||
Percentage of equity interest | 100.00% | 100.00% | ||||||
Goodwill recognized | ¥ 2,745 | $ 399 |
Restricted net assets (Detail T
Restricted net assets (Detail Textuals) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | |
Restricted Net Assets [Abstract] | |||
Amount include paid in capital and statutory reserve funds | ¥ 246,236 | $ 35,814 | ¥ 202,588 |
Percentage of statutory reserve of registered capital | 50.00% |