Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2021shares | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2021 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-38734 |
Entity Registrant Name | Weidai Ltd. |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | No. 668, Jianshe 3rd Road |
Entity Address, Address Line Two | Xiaoshan District |
Entity Address, Address Line Three | Zhejiang Province |
Entity Address, City or Town | Hangzhou |
Entity Address, Country | CN |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Shell Company | false |
Entity Central Index Key | 0001734902 |
Current Fiscal Year End Date | --12-31 |
Document Accounting Standard | U.S. GAAP |
ICFR Auditor Attestation Flag | false |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Auditor Name | Marcum Bernstein & Pinchuk LLP |
Auditor Firm ID | 5395 |
Auditor Location | New York, NY |
Business Contact | |
Contact Personnel Name | Feng Chen |
City Area Code | 86 |
Local Phone Number | 571-5697-9013 |
Contact Personnel Email Address | chenfeng@wdai.com |
Entity Address, Address Line One | No. 668, Jianshe 3rd Road |
Entity Address, Address Line Two | Xiaoshan District |
Entity Address, Address Line Three | Zhejiang Province |
Entity Address, City or Town | Hangzhou |
Entity Address, Country | CN |
American depositary shares | |
Title of 12(b) Security | American depositary shares (one American depositaryshare representing five Class A ordinary shares, par valueUS$0.000002 per share) |
Trading Symbol | WEI |
Security Exchange Name | NYSE |
Class A ordinary shares | |
Title of 12(b) Security | Class A ordinary shares, par value US$0.000002 per share* |
No Trading Symbol Flag | true |
Security Exchange Name | NYSE |
Entity Common Stock, Shares Outstanding | 35,390,055 |
Class B ordinary shares | |
Entity Common Stock, Shares Outstanding | 35,071,400 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 234,568 | $ 36,809 | ¥ 409,498 |
Restricted cash | 101,383 | 15,909 | 195,940 |
Loans and advances, net (net of allowance of RMB1,514,186 andRMB1,923,315 (US$301,810) as of December 31, 2020 and 2021, respectively) | 485,249 | 76,146 | 732,016 |
Short-term Investments | 158,565 | 24,882 | |
Prepaid expenses and other assets, net -current | 113,752 | 17,850 | 302,261 |
Deposits | 534,058 | ||
Amounts due from related parties | 32,829 | 5,152 | 15,360 |
Total current assets | 1,126,346 | 176,748 | 2,189,133 |
Non-current assets: | |||
Long-term investments | 13,333 | 2,092 | 13,574 |
Prepaid expenses and other assets-non current | 9,204 | 1,444 | 18,614 |
Property, equipment and software, net | 28,874 | 4,531 | 37,672 |
Right-of-use assets | 21,910 | 3,438 | 0 |
Deferred tax assets | 403,852 | ||
Total non-current assets | 73,321 | 11,505 | 473,712 |
TOTAL ASSETS | 1,199,667 | 188,253 | 2,662,845 |
Current liabilities (including current liabilities of the consolidated VIE and subsidiaries without recourse to the primary beneficiary of RMB1,048,510 and RMB638,869 (US$100,251) as of December 31, 2020 and 2021, respectively): | |||
Short-term borrowings | 5,899 | 926 | 43,480 |
Current account with online investors and borrowers | 138,683 | 21,762 | 254,175 |
Income tax payable | 236,011 | 37,035 | 242,638 |
Accrued expenses and other liabilities | 301,080 | 47,246 | 366,020 |
Amounts due to related parties | 1,175 | 184 | 5,146 |
Operating lease liabilities-current | 5,679 | 891 | |
Contract liabilities-current | 58,515 | 9,182 | 163,057 |
Total current liabilities | 747,042 | 117,226 | 1,074,516 |
Non-current liabilities (including non-current liabilities of the consolidated VIE and subsidiaries without recourse to the primary beneficiary of RMB19,237 and RMB17,319 (US$2,718) as of December 31, 2020 and 2021, respectively): | |||
Operating lease liabilities-non current | 17,319 | 2,718 | |
Contract liabilities-non current | 19,237 | ||
Total non-current liabilities | 17,319 | 2,718 | 19,237 |
Total liabilities | 764,361 | 119,944 | 1,093,753 |
Shareholders' equity: | |||
Additional paid-in capital | 1,252,103 | 196,482 | 1,241,845 |
Accumulated other comprehensive loss | (2,510) | (394) | (2,510) |
Retained earnings (accumulated deficit) | (814,916) | (127,878) | 325,750 |
Total Weidai Ltd. shareholder's equity | 434,678 | 68,210 | 1,565,086 |
Noncontrolling interests | 628 | 99 | 4,006 |
Total equity | 435,306 | 68,309 | 1,569,092 |
TOTAL LIABILITIES AND EQUITY | 1,199,667 | 188,253 | 2,662,845 |
Class A ordinary shares | |||
Shareholders' equity: | |||
Ordinary shares | 0 | $ 0 | 0 |
Class B ordinary shares | |||
Shareholders' equity: | |||
Ordinary shares | ¥ 1 | ¥ 1 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥)shares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020$ / shares |
Allowance for loans and advances, current | ¥ 1,923,315 | $ 301,810 | ¥ 1,514,186 | |
Current liabilities of the consolidated VIE and subsidiaries without recourse to the primary beneficiary | 747,042 | 117,226 | 1,074,516 | |
Non-current liabilities of the consolidated VIE and subsidiaries without recourse to the primary beneficiary | 17,319 | 2,718 | 19,237 | |
VIE | ||||
Current liabilities of the consolidated VIE and subsidiaries without recourse to the primary beneficiary | 638,869 | 100,251 | 1,048,510 | |
Non-current liabilities of the consolidated VIE and subsidiaries without recourse to the primary beneficiary | ¥ 17,319 | $ 2,718 | ¥ 19,237 | |
Class A ordinary shares | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.000002 | $ 0.000002 | ||
Common stock, share issued | 35,390,055 | 35,390,055 | 35,390,055 | |
Common stock, share outstanding | 35,390,055 | 35,390,055 | 35,390,055 | |
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 | 35,071,400 | |
Common stock, share outstanding | 35,071,400 | 35,071,400 | 35,071,400 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥)¥ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | |
Net revenues: | ||||
Financing income | ¥ 2,069 | $ 325 | ¥ 52,837 | ¥ 195,364 |
Less: Funding costs | (907) | (142) | (21,992) | (50,610) |
Net financing income | 1,162 | 183 | 30,845 | 144,754 |
Business related taxes and surcharges | (2,690) | (422) | (3,540) | (15,743) |
Total net revenues | 707,465 | 111,017 | 1,536,149 | 3,357,494 |
Provision for loans and advances | (807,281) | (126,680) | (803,736) | (1,239,962) |
Net revenues (loss) after provision for loans and advances | (99,816) | (15,663) | 732,413 | 2,117,532 |
Operating costs and expenses: | ||||
Provision for financial guarantee liabilities | (76,115) | (11,944) | (103,027) | (19,206) |
Origination and servicing (including related party amounts of RMB73,008,RMB29,022 and RMB 15,348(US$2,408) for the years ended December 31, 2019,2020 and 2021, respectively) | (380,601) | (59,725) | (766,275) | (1,388,640) |
Sales and marketing | (3,424) | (537) | (15,113) | (138,068) |
General and administrative | (161,989) | (25,420) | (229,506) | (281,956) |
Research and development | (22,193) | (3,483) | (27,144) | (81,664) |
Total operating costs and expenses | (644,322) | (101,109) | (1,141,065) | (1,909,534) |
Income/(loss) from operations | (744,138) | (116,772) | (408,652) | 207,998 |
Interest income/(expense) and foreign currency exchange gain/(loss), net | 134 | 21 | (89) | 39,616 |
Government subsidies | 1,370 | 215 | 4,221 | 106,873 |
Other income, net | 2,444 | 384 | 6,663 | 13,998 |
Net income/(loss) before income taxes | (740,190) | (116,152) | (397,857) | 368,485 |
Income tax expenses | (403,854) | (63,374) | (316,486) | (105,243) |
Net income/(loss) | (1,144,044) | (179,526) | (714,343) | 263,242 |
Net (income)/loss attributable to noncontrolling interests | 3,378 | 530 | 1,770 | (9,632) |
Net income/(loss) attributable to ordinary shareholders | ¥ (1,140,666) | $ (178,996) | ¥ (712,573) | ¥ 253,610 |
Earnings/(loss) per share: | ||||
Basic | (per share) | ¥ (16.19) | $ (2.54) | ¥ (10.11) | ¥ 3.60 |
Diluted | (per share) | ¥ (16.19) | $ (2.54) | ¥ (10.11) | ¥ 3.60 |
Shares used in earnings/(loss) per share computation: | ||||
Basic | 70,461,455 | 70,461,455 | 70,461,455 | 70,449,524 |
Diluted | 70,461,455 | 70,461,455 | 70,461,455 | 70,449,524 |
Other comprehensive income | ||||
Foreign currency translation adjustment | ¥ | ¥ 190 | |||
Comprehensive income/(loss) | ¥ (1,144,044) | $ (179,526) | ¥ (714,343) | 263,432 |
Comprehensive (income)/loss attributable to noncontrolling interests | 3,378 | 530 | 1,770 | (9,632) |
Comprehensive income/(loss) attributable to ordinary shareholders | (1,140,666) | (178,996) | (712,573) | 253,800 |
Loan service fee | ||||
Net revenues: | ||||
Services and other revenue | 698,840 | 109,663 | 1,411,061 | 2,955,050 |
Other revenues | ||||
Net revenues: | ||||
Services and other revenue | ¥ 10,153 | $ 1,593 | ¥ 97,783 | ¥ 273,433 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parentheticals) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Net revenues: | ||||
Origination and servicing expenses | ¥ 15,348 | $ 2,408 | ¥ 29,022 | ¥ 73,008 |
Loan service fee | ||||
Net revenues: | ||||
Net revenues from related party | ¥ 0 | $ 0 | ¥ 20 | ¥ 306 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY ¥ in Thousands, $ in Thousands | Class A ordinary sharesCommon StockCumulative Effect, Period of Adoption, Adjusted Balanceshares | Class A ordinary sharesCommon Stockshares | Class B ordinary sharesCommon StockCumulative Effect, Period of Adoption, Adjusted BalanceCNY (¥)shares | Class B ordinary sharesCommon StockCNY (¥)shares | Additional Paid-in CapitalCumulative Effect, Period of Adoption, Adjusted BalanceCNY (¥) | Additional Paid-in CapitalCNY (¥) | Additional Paid-in CapitalUSD ($) | Accumulated other comprehensive lossCumulative Effect, Period of Adoption, Adjusted BalanceCNY (¥) | Accumulated other comprehensive lossCNY (¥) | Accumulated other comprehensive lossUSD ($) | Retained earningsCumulative Effect, Period of Adoption, Adjusted BalanceCNY (¥) | Retained earningsCNY (¥) | Retained earningsUSD ($) | Total Weidai Ltd. shareholders' equityCumulative Effect, Period of Adoption, Adjusted BalanceCNY (¥) | Total Weidai Ltd. shareholders' equityCNY (¥) | Total Weidai Ltd. shareholders' equityUSD ($) | Noncontrolling InterestsCumulative Effect, Period of Adoption, Adjusted BalanceCNY (¥) | Noncontrolling InterestsCNY (¥) | Noncontrolling InterestsUSD ($) | Cumulative Effect, Period of Adoption, Adjusted BalanceCNY (¥) | CNY (¥) | USD ($) |
Increase (Decrease) in Stockholders' Equity: | ||||||||||||||||||||||
Adoption of ASC 606 | ¥ 1 | ¥ 1,170,956 | ¥ (2,700) | ¥ 784,713 | ¥ 1,952,970 | ¥ 8,526 | ¥ 1,961,496 | |||||||||||||||
Balance at Dec. 31, 2018 | ¥ 1 | ¥ 1,170,956 | ¥ (2,700) | ¥ 784,713 | ¥ 1,952,970 | ¥ 8,526 | ¥ 1,961,496 | |||||||||||||||
Balance (in shares) at Dec. 31, 2018 | shares | 35,375,777 | 35,071,400 | ||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity: | ||||||||||||||||||||||
Dividends declared by a subsidiary | ¥ (6,646) | ¥ (6,646) | ||||||||||||||||||||
Exercise of restricted shares (in shares) | shares | 14,278 | |||||||||||||||||||||
Disposal of a subsidiary | (5,373) | (5,373) | ||||||||||||||||||||
Share-based compensation | ¥ 64,796 | ¥ 64,796 | 64,796 | |||||||||||||||||||
Other comprehensive loss | ¥ 190 | 190 | 190 | |||||||||||||||||||
Net income (loss) | ¥ 253,610 | 253,610 | 9,632 | 263,242 | ||||||||||||||||||
Balance at Dec. 31, 2019 | ¥ 1 | 1,235,752 | (2,510) | 1,038,323 | 2,271,566 | 6,139 | 2,277,705 | |||||||||||||||
Balance (in shares) at Dec. 31, 2019 | shares | 35,390,055 | 35,071,400 | ||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity: | ||||||||||||||||||||||
Adoption of ASC 606 | ¥ 1 | 1,235,752 | (2,510) | 1,038,323 | 2,271,566 | 6,139 | 2,277,705 | |||||||||||||||
Dividends declared by a subsidiary | (362) | (362) | ||||||||||||||||||||
Disposal of a subsidiary | (1) | (1) | ||||||||||||||||||||
Share-based compensation | 6,093 | 6,093 | 6,093 | |||||||||||||||||||
Net income (loss) | (712,573) | (712,573) | (1,770) | (714,343) | ||||||||||||||||||
Balance at Dec. 31, 2020 | ¥ 1 | 1,241,845 | (2,510) | 325,750 | 1,565,086 | 4,006 | 1,569,092 | |||||||||||||||
Balance (in shares) at Dec. 31, 2020 | shares | 35,390,055 | 35,071,400 | ||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity: | ||||||||||||||||||||||
Adoption of ASC 606 | ¥ 1 | 1,241,845 | (2,510) | 325,750 | 1,565,086 | 4,006 | 1,569,092 | |||||||||||||||
Share-based compensation | 10,258 | 10,258 | 10,258 | |||||||||||||||||||
Net income (loss) | (1,140,666) | (1,140,666) | (3,378) | (1,144,044) | $ (179,526) | |||||||||||||||||
Balance at Dec. 31, 2021 | ¥ 1 | 1,252,103 | $ 196,482 | (2,510) | $ (394) | (814,916) | $ (127,878) | 434,678 | $ 68,210 | 628 | $ 99 | 435,306 | 68,309 | |||||||||
Balance (in shares) at Dec. 31, 2021 | shares | 35,390,055 | 35,071,400 | ||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity: | ||||||||||||||||||||||
Adoption of ASC 606 | ¥ 1 | ¥ 1,252,103 | $ 196,482 | ¥ (2,510) | $ (394) | ¥ (814,916) | $ (127,878) | ¥ 434,678 | $ 68,210 | ¥ 628 | $ 99 | ¥ 435,306 | $ 68,309 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Cash flows from operating activities: | ||||
Net income/(loss) | ¥ (1,144,044) | $ (179,525) | ¥ (714,343) | ¥ 263,242 |
Adjustments to reconcile net income/(loss) to net cash provided by (used in) operating activities: | ||||
Provision for loans and advances | 807,281 | 126,680 | 803,736 | 1,239,962 |
Depreciation and amortization | 13,001 | 2,040 | 29,431 | 42,586 |
Amortization of operating lease right-of-use asset | 4,142 | 650 | ||
Loss on disposal of property and equipment | 139 | 22 | 399 | 1,721 |
Share-based compensation expenses | 10,258 | 1,610 | 6,093 | 64,796 |
Impairment of Long-term investment | 241 | 38 | ||
Impairment of Goodwill | 0 | 5,812 | 0 | |
Provision for Prepaid expenses and other assets | 57,696 | 9,053 | 59,844 | 15,090 |
Deferred income tax | 403,852 | 63,373 | 271,237 | (260,050) |
Changes in operating assets and liabilities: | ||||
Prepaid expenses and other assets | 140,223 | 22,004 | 84,042 | 94,920 |
Deposits | (534,058) | |||
Amounts due from related parties | (17,469) | (2,741) | 8,692 | (2,255) |
Current account with online investors and borrowers | (115,492) | (18,123) | (1,021,035) | (730,395) |
Income tax payable | (6,627) | (1,040) | 5,536 | 166,423 |
Operating lease liabilities | (3,054) | (479) | ||
Accrued expenses and other liabilities | (64,940) | (10,191) | (30,650) | (114,995) |
Amounts due to related parties | (3,971) | (623) | (23,904) | 322 |
Contract liabilities | (123,779) | (19,424) | (287,729) | 105,745 |
Net cash provided by/(used in) operating activities | (42,543) | (6,676) | (1,336,897) | 887,112 |
Cash flows from investing activities: | ||||
Purchase of short-term investments | (158,565) | (24,882) | (5,500) | |
Redemption of short-term investments | 9,600 | |||
Payments to originate loans and advances | (109,821) | (17,234) | (1,678,200) | (11,053,947) |
Proceeds from collection of loans and advances | 83,365 | 13,082 | 1,709,967 | 10,150,398 |
Addition of long-term investments | (241) | |||
Purchase of property, equipment and software | (4,342) | (681) | (7,719) | (22,359) |
Net cash (used in)/provided by investing activities | (189,363) | (29,715) | 24,048 | (922,049) |
Cash flows from financing activities: | ||||
Payments to institutional funding partners and online investors for advanced funds | (37,581) | (5,897) | (296,990) | (1,114,926) |
Payment of IPO related costs | (1,099) | (15,167) | ||
Net cash used in financing activities | (37,581) | (5,897) | (298,089) | (1,130,093) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 190 | |||
Net decrease in cash, cash equivalents and restricted cash | (269,487) | (42,288) | (1,610,938) | (1,164,840) |
Cash, cash equivalents and restricted cash at the beginning of the year | 605,438 | 95,006 | 2,216,376 | 3,381,216 |
Cash, cash equivalents and restricted cash at the end of the year | 335,951 | 52,718 | 605,438 | 2,216,376 |
Supplemental disclosure of cash flow information: | ||||
Interest paid | (50,610) | |||
Income taxes paid | (3,782) | (593) | (21,159) | (255,309) |
Income tax refunded | 1,017 | 160 | 48,279 | |
Supplemental disclosure of Non-cash investing activities: | ||||
Right-of-use assets obtained in exchange for new operating lease liabilities | 20,022 | $ 3,142 | ||
Reconciliation of cash, cash equivalents and restricted cash | ||||
Cash and cash equivalents | 234,568 | 409,498 | 1,075,557 | |
Restricted cash | 101,383 | 195,940 | 1,140,819 | |
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | ¥ 335,951 | ¥ 605,438 | ¥ 2,216,376 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2021 | |
Organization | |
Organization | 1. Organization Weidai Ltd. (the “Company”) was incorporated as a limited company under the law of Cayman Islands on January 26, 2018. The Company does not conduct any substantive operations on its own but instead conducts its business operations through its subsidiaries, variable interest entity (“VIE”) and subsidiaries of the VIE. The Company, its subsidiaries, VIE and subsidiaries of the VIE are hereinafter collectively referred to as the “Group”. The Company is principally engaged in the online finance marketplace business in the People’s Republic of China (the “PRC”). As described below, the Company, through a series of transactions which is accounted for as a reorganization of entities under common control (the “Reorganization”), became the ultimate parent entity of its subsidiaries, VIE and subsidiaries of VIE. Accordingly, these consolidated financial statements reflect the historical operations of the company as if the current organization structure had been in existence throughout the periods presented. Reorganization transactions In preparation of its IPO in the United States, the following transactions were undertaken to reorganize the legal structure of the Company. On February 5, 2018, the Company set up a wholly-owned subsidiary, Weidai HK Limited (“Weidai HK”) in Hong Kong. On March 15, 2018, Weidai HK set up a wholly-owned subsidiary, Weidai Co., Ltd. (“Weidai Co.”) in the PRC. On April 10, 2018, the Company, through Weidai Co., entered into a series of contractual agreements with Weidai (Hangzhou) Financial Information Service Ltd. (“Weidai (Hangzhou)”, or the “Hangzhou VIE”) and its shareholders (the “VIE Agreements”) to transfer the business operations of the VIE to the Company. In return, the Company issued 48,392,050 of ordinary shares to YAOH WDAI LTD, an entity controlled by Mr. Yao Hong (“the Founder”) and the other ordinary shareholders of the VIE, as well as 9,146,250 of Series A preferred shares, 1,829,250 of Series A+ preferred shares, 3,048,800 of Series B preferred shares, 3,074,400 of Series C preferred shares to the respective series of preferred shareholders of the VIE. On January 28, 2019, the Company, through Weidai Co., entered into a series of contractual arrangements with Yuntuo Group Co., Ltd. (“Yuntuo”, or the “Yuntuo VIE”) and its shareholders (the “VIE Agreements”), to conduct a portion of the business through Yuntuo. Weidai (Hangzhou) and Yuntuo are collectively known as the “VIEs”. 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. As of December 31, 2021, the Company’s subsidiaries, VIEs and primary subsidiaries of VIEs are as follows: Percentage of legal ownership Date of Place of by the Entity incorporation incorporation Company Principal activities Subsidiaries Weidai HK Limited February 5, 2018 Hong Kong 100% Investment holding Weidai Co., Ltd. March 15, 2018 PRC 100% Investment holding Rymo Technology Industry Limited September 22, 2009 Hong Kong 100% Investment holding Weidai Singapore PTE. LTD. February 28, 2019 Singapore 100% Online finance marketplace business QianTang (Philippines) Lending Inc. May 31, 2019 Philippines 100% Online finance marketplace business Zhejiang Qunshuo Digital Technology Co., Ltd. August 7, 2014 PRC 100% Internet Technology Youxian Weirui Technology Co., Ltd. June 17, 2019 PRC 100% Internet Technology Shanghai Zaohui Finance Lease Co., Ltd. December 18, 2015 PRC 100% Asset Management Hangzhou Weian Finance Lease Co., Ltd. October 21, 2016 PRC 100% Asset Management Harbin Yuntuo Business Management Co., Ltd. September 17, 2020 PRC 100% Business Management VIEs Weidai (Hangzhou) Financial Information Service Ltd. December 25, 2014 PRC Nil Online finance marketplace business Yuntuo Group Co., Ltd. January 15, 2019 PRC Nil Online finance marketplace business Percentage of legal ownership Date of Place of by the Entity incorporation incorporation Company Principal activities Subsidiaries of the VIEs Qianwei (Hangzhou) Technology Co., Ltd. September 29, 2015 PRC Nil Asset Management Ruituo (Hangzhou) Internet Financial Information Services Co., Ltd. July 30, 2015 PRC Nil Asset Management Yiwu Weirui Internet Technology Co., Ltd. September 29, 2015 PRC Nil Asset Management Hangzhou Yiqitou Investment Advisory Co., Ltd. October 28, 2016 PRC Nil Consulting Liangche (Hangzhou) Internet Technology Co., Ltd. February 21, 2017 PRC Nil Internet Technology Hangzhou Yaowei Technology Co., Ltd. January 24, 2018 PRC Nil Technology development and service Hangzhou Jiujiu Financial Information Services Co., Ltd. August 25, 2015 PRC Nil Finance information service Beihai Hongri Technology Co., Ltd. August 30, 2019 PRC Nil Internet Technology Guangzhou Weirui Technology Co., Ltd September 5, 2018 PRC Nil Internet Technology Fuzhou Weidai Online Microcredit Co., Ltd. June 23, 2017 PRC Nil Micro-loan business Foshan Hongliang Investment Consulting Co., Ltd February 2, 2015 PRC Nil Business Management Youxian Qianfeng Business Management Co., Ltd. May 22, 2019 PRC Nil Business Management Hangzhou Yaohong Technology Co., Ltd. April 7, 2016 PRC Nil Internet Technology As PRC laws and regulations prohibit and restrict foreign ownership of internet value-added businesses, the Company operates its websites and primarily conducts its business in PRC through the VIEs and the subsidiaries of the VIEs. On April 10, 2018 and January 28, 2019, the Company entered into share pledge agreements with the nominee shareholders of the VIEs through its wholly-owned subsidiary in the PRC, for the equity interests in the VIEs held by the shareholders of the VIEs. In addition, the Company entered into a power of attorney and an exclusive call option agreement with the VIEs and nominee shareholders of the VIEs through its wholly-owned subsidiaries in the PRC, which provide its wholly-owned subsidiary the power to direct the activities that most significantly affect the economic performance of the VIEs and to acquire the equity interests in the VIEs when permitted by the PRC laws, respectively. The Company agreed to provide unlimited financial support to the VIEs for its operations which obligated the Company to absorb losses of the VIEs that could potentially be significant to the VIEs. In addition, pursuant to the resolution of all shareholders of the Company and the resolution of the board of directors of the Company on April 10, 2018 and January 28, 2019 (the “Resolutions”), the rights under the aforementioned power of attorney and the exclusive call option agreement were assigned to the board of directors of the Company (the “Board”) or any officer authorized by the Board, which entitle the Company or its wholly-owned subsidiary to receive economic benefits from the VIEs that potentially could be significant to the VIEs. Despite the lack of majority ownership, the Company has effective control of the VIEs through a series of VIE Agreements. Through the VIE Arrangements, the shareholders of the VIEs effectively assigned all of their voting rights underlying their equity interest in the VIEs to the Company. In addition, through the exclusive business operation agreement, the Company, through its wholly-owned subsidiary in the PRC, have the right to receive economic benefits from the VIEs that potentially could be significant to the VIEs. Lastly, through the financial support undertaking letter, the Company has the obligation to absorb losses of the VIEs that could potentially be significant to the VIEs. Therefore, the Company is considered the primary beneficiary of the VIEs and consolidates the VIEs and its subsidiaries as required by SEC Regulation S-X Rule 3A-02 and ASC topic 810 (“ASC 810”), Consolidation. The principal terms of the VIE Agreements are further described below: (1) Power of Attorney: Pursuant to the power of attorney signed between Weidai (Hangzhou)’s and Yuntuo’s nominee shareholders and Weidai Co., each nominee shareholder irrevocably appointed Weidai Co. as its attorney-in-fact to exercise on such shareholder’s behalf any and all rights that such shareholder has in respect of its equity interest in Weidai (Hangzhou) and Yuntuo (including but not limited to executing the exclusive right to purchase agreements, the voting rights and the right to appoint directors and executive officers of Weidai (Hangzhou) and Yuntuo. This agreement is effective and irrevocable as long as the nominee shareholder remains a shareholder of Weidai (Hangzhou) and Yuntuo. (2) Exclusive Call Option Agreement: Pursuant to the exclusive call option agreement entered into amongst the Company, Weidai (Hangzhou)’s and Yuntuo’s nominee shareholders and Weidai Co., the nominee shareholders irrevocably granted Weidai Co. a call option to request the nominee shareholders to transfer or sell any part or all of its equity interests in the VIEs, or any or all of the assets of VIEs, to Weidai Co., or its designees. The purchase price of the equity interests in the VIEs is equal to the minimum price required by PRC law. The purchase price of the VIEs’ assets is equal to the book value of the assets or the minimum price as permitted by applicable PRC law, whichever is higher. Without Weidai Co.’s prior written consent, the VIEs and its nominee shareholders may not amend its articles of association, increase or decrease the registered capital, sell or otherwise dispose of its assets or beneficial interest, create or allow any encumbrance on its assets or other beneficial interests and provide any loans or guarantees, etc. The nominee shareholders cannot request any dividends or other form of assets. If dividends or other form of assets are distributed, the nominee shareholders are required to transfer all distribution received to Weidai Co. or their designees. This agreement is not terminated until all of the equity interest of the VIEs has been transferred to Weidai Co. or the person(s) designated by Weidai Co. None of the nominee shareholders have the right to terminate or revoke the agreement under any circumstance unless otherwise regulated by law. (3) Exclusive Business Cooperation Agreement: Pursuant to the exclusive business cooperation agreement entered into amongst Weidai Co. and Weidai (Hangzhou) and Yuntuo, Weidai Co. provides exclusive technical support and consulting services in return for fees based on 100% of Weidai (Hangzhou)’s and Yuntuo’s net income, which is adjustable at the sole discretion of Weidai Co.. Without Weidai Co.’s consent, the VIEs and its subsidiaries cannot procure services from any third party or enter into similar service arrangements with any other third party, except for the ones appointed by Weidai Co.. This agreement is irrevocable or can only be unilaterally revoked or amended by Weidai Co. (4) Share Pledge Agreement: Pursuant to the share pledge agreements amongst the Company and Weidai (Hangzhou)’s and Yuntuo’s nominee shareholders, each nominee shareholder of the VIEs pledged all of their respective equity interests in the VIEs to Weidai Co. as continuing first priority security interest to guarantee the performance of these nominee shareholders and the VIEs’ obligations under the shareholder voting rights proxy agreement, the exclusive call option agreement and the exclusive business cooperation agreement. Weidai Co. is entitled to all dividends during the effective period of the share pledge except as it agrees otherwise in writing. If Weidai (Hangzhou) and Yuntuo or any of the nominee shareholder breaches its contractual obligations, Weidai Co. is entitled to certain rights regarding the pledged equity interests, including the right to receive proceeds from the auction or sale of all or part of the pledged equity interests of Weidai (Hangzhou) and Yuntuo in accordance with PRC law. None of the nominee shareholders may, without the prior written consent of Weidai Co., assign or transfer to any third party, distribute dividends and create or cause any security interest and any liability in whatsoever form to be created on, all or any part of the equity interests it holds in the VIEs. This agreement is not terminated until all of the technical support and consulting and service fees are fully paid under the exclusive business cooperation agreement and all of Weidai (Hangzhou)’s and Yuntuo’s obligations have been terminated under the other controlling agreements. As of May 23, 2018, the Company completed the registration of all the equity pledges with the relevant office of the administration for industry and commerce in accordance with the PRC Property Rights Law for Weidai (Hangzhou). As of March 1, 2019, the Company completed the registration of all the equity pledges with the relevant office of the administration for industry and commerce in accordance with the PRC Property Rights Law for Yuntuo. (5) Financial support undertaking letter: Pursuant to the financial support undertaking letter, the Company is obligated to provide unlimited financial support to the Weidai (Hangzhou) and Yuntuo, to the extent permissible under the applicable PRC laws and regulations. The Company will not request repayment of the loans or borrowings if the Weidai (Hangzhou) and Yuntuo, or their shareholders do not have sufficient funds or are unable to repay. (6) Resolutions of all shareholders and resolution of the board of directors of Weidai Ltd.: The shareholders and the Company’s Board resolved that the rights under the shareholder voting rights proxy agreements and the exclusive call option agreements were assigned to the board of directors of the Company or any officer authorized by the Board. In the opinion of the Company’s legal counsel, (i) the ownership structure of the Company and its VIEs is in compliance with PRC laws and regulations; (ii) the contractual arrangements with the VIEs and their shareholders are valid and binding, and not in violation of current PRC laws or regulations; (iii) the resolutions are valid in accordance with the articles of association of the Company and Cayman Islands law. However, uncertainties in the PRC legal system could cause the Company’s current ownership structure to be found in violation of existing and/or future PRC laws or regulations and could limit the Company’s ability to enforce its rights under these contractual arrangements. Furthermore, the nominee shareholders of the VIEs may have interests that are different from those of the Company, which could potentially increase the risk that they would seek to act contrary to the terms of the contractual agreements with the VIEs. In addition, if the current structure or any of the contractual arrangements were found to be in violation of any existing or future PRC laws or regulations, the Company may be subject to penalties, including but not be limited to, revocation of business and operating licenses, discontinuing or restricting business operations, restricting the Company’s right to collect revenues, temporary or permanent blocking of the Company’s internet financial services platforms, restructuring of the Company’s operations, imposition of additional conditions or requirements with which the Company may not be able to comply, or other regulatory or enforcement actions against the Company that could be harmful to its business. The imposition of any of these or other penalties could have a material adverse effect on the Company’s ability to conduct its business. The table sets forth the assets and liabilities of the VIEs and subsidiaries of VIEs included in the Company’s consolidated balance sheets: As of December 31, 2020 2021 RMB RMB US$ Current assets: Cash and cash equivalents 124,906 108,023 16,951 Restricted cash 195,940 101,383 15,909 Loans and advances, net 732,016 485,249 76,146 Prepaid expenses and other assets,net-current 291,725 69,439 10,896 Deposits 206,076 — — Amounts due from Weidai Ltd. and its wholly-owned subsidiaries 182,912 483,887 75,932 Amounts due from related parties 15,360 32,829 5,152 Total current assets 1,748,935 1,280,810 200,986 Non-current assets: Long-term investments 13,333 13,333 2,092 Prepaid expenses and other assets-non current 17,252 9,149 1,436 Property, equipment and software, net 32,281 21,231 3,332 Right-of-use assets — 21,910 3,438 Deferred tax assets 403,852 — — Total non-current assets 466,718 65,623 10,298 Total assets 2,215,653 1,346,433 211,284 Current liabilities: Payable to institutional funding partners and online investors 43,480 5,899 926 Current account with online investors and borrowers 254,175 138,683 21,762 Income tax payable 242,638 236,011 37,035 Accrued expenses and other liabilities 340,014 192,907 30,271 Amounts due to Weidai Ltd. and its wholly-owned subsidiaries 824,013 1,132,643 177,737 Amounts due to related parties 5,146 1,175 184 Operating lease liabilities-current — 5,679 891 Contract liabilities-current 163,057 58,515 9,182 Total current liabilities 1,872,523 1,771,512 277,988 Non-current liabilities: Operating lease liabilities-non current — 17,319 2,718 Contract liabilities-non current 19,237 — — Total non-current liabilities 19,237 17,319 2,718 Total liabilities 1,891,760 1,788,831 280,706 The table sets forth the results of operations of the VIEs and subsidiaries of VIEs included in the Company’s consolidated statements of comprehensive income (loss): Year ended December 31, 2019 2020 2021 RMB RMB RMB US$ Net revenues 2,709,562 1,426,605 648,270 101,728 Net income/(loss) 27,298 (625,353) (1,090,282) (171,089) The table sets forth the cash flows of the VIEs and subsidiaries of VIEs included in the Company’s consolidated statements of cash flows: Year ended December 31, 2019 2020 2021 RMB RMB RMB US$ Net cash provided by/(used in) operating activities 584,053 (1,557,785) (795,178) (124,780) Net cash used in investing activities (913,760) 24,048 (30,798) (4,833) Net cash (used in)/provided by financing activities (1,029,213) 174,273 714,536 112,126 The amount of the net assets of the VIEs and subsidiaries of VIEs was RMB323,893 as of December 31, 2020 and net liabilities of the VIEs and subsidiaries of VIEs was RMB442,398 (US$69,422) as of December 31, 2021, respectively. The creditors of the VIEs and subsidiaries of VIEs’ third-party liabilities did not have recourse to the general credit of the primary beneficiary in the normal course of business. Change of business operations and repayment to peer-to-peer investors In 2020, due to the increasingly stringent regulatory environment and deteriorating macro economy, the Company began winding down its peer-to-peer lending operations. In February 2020, the Company ceased originating new loans with borrowers. Since July 2020, the Company has agreed with the local government to have all collections from borrowers of loans previously facilitated in the peer-to-peer business, along with cash contributed from the Company, deposited into a “special account” which will be used to repay the investors who funded these loans. In July 2021, the Company, in cooperation with the local government, repaid all outstanding net principal balances to peer-to-peer investors. The Company reclassified the deposit balance that was in the special account to “Loans and advances, net” on the consolidated balance sheet as of December 31, 2021 as the “special account” was closed after the repayment to investors. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of presentation The consolidated financial statements of the company have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, VIEs and VIEs’ subsidiaries for which the Company is the primary beneficiary. All significant inter-company balances and transactions between the Company, its subsidiaries, VIEs and VIEs’ subsidiaries are eliminated upon consolidation. Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant accounting estimates reflected in the Company’s consolidated financial statements include, but are not limited to, revenue recognition, allowance for loans and advances, financial assets receivable and guarantee liabilities, useful life of long-lived assets, share-based compensation, valuation allowance for deferred tax assets, uncertain tax positions, short-term and long-term investments, and 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, VIEs and VIEs’ 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 (loss). Convenience translation Translations of amounts from RMB into US$ for the convenience of the readers have been calculated at the exchange rate of RMB6.3726 per US$1.00 on December 31, 2021, the last business day in fiscal year 2021, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be converted, realized or settled into US$ 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. As of December 31,2020, and 2021, the cash and cash equivalents amounted to RMB 409,498 and RMB 234,568 (US $36,809 ), respectively. The cash held in PRC entities amounted to RMB 226,754 and RMB 216,870 (US $34,031 ) as of December 31, 2020 and 2021, respectively. 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, 2020, and 2021, the restricted cash related to cash not yet disbursed amounted to RMB138,681 and RMB70,114 (US$11,002), respectively; and (ii) cash held by banks as guarantee deposits paid on contracts and other restrictions amounted to RMB26,155 and RMB3,998 (US$627) as of December 31, 2020 and 2021, respectively; and (iii) cash froze by authorities amounted to RMB 31,104 and RMB27,271 (US$ 4,279) as of December 31, 2020 and 2021, respectively. 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: ◾ Level 1 - Observable inputs that reflect quoted prices in active markets for identical assets or liabilities. ◾ Level 2 - Include other inputs that are directly or indirectly observable in the marketplace. ◾ Level 3 - Unobservable inputs which are supported by little or no market activity. ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach; and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. In accordance with ASC 820, the Company measures available-for-sale investments at fair value on a recurring basis. The fair value of the Company’s available-for-sale debt securities are measured using the income approach, based on quoted market interest rates of similar instruments and other significant inputs derived from or corroborated by observable market data, which is classified in Level 2 of the valuation hierarchy. The fair value of time deposits is determined based on the prevailing interest rates in the market, which is classified in Level 1 of the valuation hierarchy. No fair value hierarchy measurement change for the year ended 2019, 2020 and 2021. 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. The Company had no financial assets and liabilities measured and recorded at fair value on a non-recurring basis as of December 31, 2020 and 2021. Short-term investments Short term investments consist of available-for-sale investments. Investments classified as available-for-sale investments are carried at their fair values and the unrealized gains or losses from the changes in fair values are reported net of tax in accumulated other comprehensive income (loss) until realized. Realized gains or losses are included in interest income in the consolidate statements of operations and comprehensive income/(loss) during the period in which the gain or loss is realized. The Company’s available-for-sale debt securities consist of financial products with maturities of less than one year purchased from commercial banks. The Company elected the fair value method at the date of initial recognition and carried these investments subsequently at fair value. Fair value is estimated based on quoted prices of similar financial products provided by the banks at the end of each period, which is classified in Level 2 of the valuation hierarchy in the fair value measurement. Loans and advances, net Loans and advances represent payments due from borrowers. Loans and advances are recorded at amortized cost (i.e. uncollected principal and deferred origination costs), net of allowance. 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 receivable 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. Acquired non-performing loans The Company records acquired non-performing loans in accordance with ASC310-30, Loan and Debt Securities with Deteriorated Credit Quality, at their purchase price. As the cash flows expected to be collected cannot be estimated because the timing of the collection and the condition of the collateral are indeterminable, the acquired non-performing loans are placed on non-accrual status and impairment is measured based on the historical recovery after the case was withdrawn in November 2021, instead of using the fair value of the collateral less the estimated selling costs. 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. Commencing from the second half of 2020, the Company has stopped purchasing any additional non-performing loans due to the changes in the circumstances and industry in which it operates, accordingly, the roll-rate method before 2020 for estimating allowances was then changed to a combination of probability-of-default and loss-rate methods. The difference in the amounts of allowance between the former and the new estimation methods was insignificant. The two new methods are applied differently for 1) loans and advances and 2) acquired non-performing loans, while also depending on whether the loans were auto-backed (collateralized) or unsecured. For auto-backed loans recorded as loans and advances, the Company takes into consideration of a) the monthly default rates of borrowers, and b) the loss-rate, which represents the monetary value of losses incurred as a percentage of the gross balance of those loans. For auto-backed loans recorded as acquired non-performing loans, the Company only takes the loss-rate as the basis to determine its provisions. For unsecured loans recorded as loans and advances, loss rate of unsecured loans was assessed as 100% for both loans receivable and non-performing loans. For loan receivables, 100% of the unsecured loans were past due over 360 days, which is deemed to have remote possibility to collect any repayment based on the historical experience. For non-performing loans, the balance of unsecured loans was insignificant and the Company assessed provision of all of them as 100% considering the low probability of recoverability. For the other loan receivable re-classed from deposits, the Company measured the allowance based on the estimated cash collection from peer to peer borrowers used historical recovery rate. 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. Borrowings The Company may provide loans to borrowers and then transfers the loans 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 repayment 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 repayments for delinquent installment 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 repayments or to purchase the loan over the term of the arrangement (the non-contingent aspect) is accounted for in accordance with ASC 460, Guarantees (“ASC 460”). The contingent obligation relating to the contingent loss arising from the arrangement is accounted for in accordance with ASC 450, Contingencies (“ASC 450”). At inception, the Company recognizes the non-contingent aspect of the guarantee liability at fair value, which considers the premium required by a third-party market participant to issue the same risk assurance in a standalone transaction. Subsequent to the initial recognition, the non-contingent aspect of the risk assurance liability is reduced over the term of the arrangement as the Company is released from its stand ready obligation on a loan-by-loan basis based on the borrower’s repayment of the loan principal. The contingent loss arising from the obligation to make future payments is recognized when borrower default is probable and the amount of loss is estimable. The Company considers the underlying risk profile including delinquency status, overdue period, and historical loss experience when assessing the probability of contingent loss. Borrowers are grouped based on common risk characteristics, such as product type. The Company measured contingent loss based on the future payout of the arrangement estimated using the historical default rates of a portfolio of similar loans less the fair value of the recoverable collateral. The amount of provision for financial guarantee liabilities was RMB19,206, RMB103,027 and RMB76,115 (US$11,944) for the years ended December 31, 2019, 2020 and 2021 and was recorded as part of operating expenses. The maximum potential undiscounted future payment which the Company would be required to make under its guarantee obligation is RMB1,143,835 and RMB186,204 (US$29,219) as of December 31, 2020 and 2021, respectively. Long-term Investments The Company’s long-term investments consist of cost method investments. In accordance with ASC subtopic 325-20 (“ASC 325-20”), Investments-Other: Cost Method Investments 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, which simplifies the accounting for goodwill impairment by eliminating Step two from the goodwill quantitative impairment test. Under the new guidance, if a reporting unit’s carrying amount exceeds its fair value, an entity will record an impairment charge based on that difference. The impairment charge will be limited to the amount of goodwill allocated to that reporting unit. Fair value is primarily determined by computing the future discounted cash flows expected to be generated by the reporting unit. In the year ended December 31, 2019, 2020, 2021, the Company recorded a goodwill impairment charge of nil, RMB 5,812 and nil respectively. 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. If the carrying amount of the long-lived asset or asset group is not recoverable 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, 2019, 2020 and 2021. 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, 2019, 2020 and 2021. The Company recognized research and development expenses amounted to RMB81,664, RMB27,144 and RMB22,193 (US$3,483) for the years ended December 31, 2019, 2020 and 2021, 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 with no further conditions to be met are recorded as government subsidies in the consolidated statements of operations and comprehensive income (loss) when received. The government subsidies with certain conditions are recorded as liabilities when received and will be recorded as government subsidies in the consolidated statements of operations and comprehensive income (loss) when the conditions are met. Revenue recognition The Company provides loan solution services which include facilitating and monitoring the execution of loan agreements. Borrowers make repayments through the Company, and the Company will then remit the requisite returns to the investors on a periodic basis. The service fee is charged based on a certain percentage of the loans. In most of the cases, the borrowers pay the service fee on a monthly basis. The Company also generates revenue from other contingent fees, such as late payment penalties and net revenue from sale of collateral. The Company recognizes revenue by applying the following five steps according to ASC 606 Revenue from Contracts with Customers (i) identify the contract with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to performance obligations in the contract; and (v) recognize revenue when (or as) performance obligations are satisfied. The Company determines that both the borrowers and the investors are its customers because they both receive services provided by the Company pursuant to the contractual terms among the Company, the borrowers and the investors. For each loan facilitated on the platform, the Company considers the loan services and guarantee service as two separate services. Of which, the guarantee service is accounted for in accordance with ASC 460, Guarantees, at fair value The Company identified one performance obligation for borrowers and investors respectively under ASC 606, as the loan services are not distinct. The Company determines the total transaction price to be the service fees chargeable to the borrowers and the investors. The transaction price includes variable consideration in the form of early repayments of the loans by the borrowers. The Company recognizes revenue when (or as) the entity satisfies the service or performance obligation by transferring the promised service (that is, an asset) to customers. Both revenue from combined loan services to borrowers and revenue from post-origination to investors are recognized on a straight-line basis over the term of the underlying loans as the customers simultaneously receive and consume the benefit provided by the services the Company performs. Customer incentives For certain transactions with the investors, the Company, at its sole discretion may provide various incentives to investors when a loan is successfully matched during the relevant incentive program period. The cash incentive from the Company is either provided upfront or on a monthly basis over the term of the loan as additional interest. For arrangements where the Company does not originate loans to borrowers, these cash incentives are accounted for as reduction of revenue in accordance with ASC 606. Cash incentives accounted for as reduction of revenue amounted to RMB359,568, RMB86,259 and nil for the years ended December 31, 2019, 2020 and 2021, respectively. For arrangements where the Company originates loans to the borrowers and the related loan payables to investors are recorded on the balance sheet, cash incentives paid upfront will reduce loan payables to investors and loan payables are effectively issued at a discount. If cash incentives are paid to investors over the loan period, the cash incentives are included as repayment to investors for the loan and considered in the effective interest rate of the loan payable to investors. There is no cash incentive as reduction of loan payables for the years ended December 31, 2019, 2020 and 2021. 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, and net revenue from sale of collateral. These contingent fees are not recognized until the contingencies are resolved and the fees become fixed and determined, which also coincide with when the services are performed and collectability is reasonably assured. These fees are classified within other revenue in the consolidated statements of comprehensive income (loss). Other revenues consist of: Year Ended Year Ended Year Ended December 31, December 31, December 31, 2019 2020 2021 RMB RMB RMB US$ Late payment penalties 102,910 96,224 9,163 1,437 Others 170,523 1,559 990 156 Total 273,433 97,783 10,153 1,593 Revenue through service center operation partners The Company collaborates with service center operation partners for the operation of partner-operated service centers under a revenue sharing model. The Company is a principal in a contract satisfy a performance obligation in accordance with ASC 606-10-55 and recognizes revenue on a gross basis when all the revenue recognition criteria set forth in ASC 606 are met. Pursuant to the one-year cooperation agreements with the service center operation partners, the Company records all of each partner-operated service center’s loan facilitation service fee and post facilitation service fee as revenue, and subsequently pay the service center operation partners an agreed percentage of such amounts as the partner-operated service center’s operating cost and expenses which are recorded as origination and servicing expenses. If loans facilitated by the partner-operated service centers become delinquent and are subsequently purchased by the Company, the relevant service center operation partners are obligated to compensate the Company for an agreed percentage of the purchase price of the delinquent loans. Contract liability Contract liability 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. Revenue recognized for the year ended December 31, 2021 that was included in contract liabilities as of January 1, 2021 was RMB94,791 (US$14,875) Origination and servicing expense Origination and servicing expenses primarily consist of customer acquisition costs, employee salaries and benefits for facilitating the loan origination and debt-collection cost. Advertising expenses Advertising costs are expensed as incurred in accordance with ASC 720-35, Other Expense-Advertising Costs. The Company recognized advertising costs of RMB54,167, RMB1,711 and RMB813 (US$128) for the years ended December 31, 2019, 2020 and 2021, respectively. 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 RMB107,754, RMB51,841 and RMB19,634 (US$3,081) for the years ended December 31, 2019, 2020 and 2021, respectively. Income taxes The Company accounts for income taxes using the liability method in accordance with ASC 740, Income 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 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 The Company adopted the new lease accounting standard, ASC Topic 842, Leases (‘‘ASC 842’’) from January 1, 2021, using the non-comparative transition option pursuant to ASU 2018-11. Therefore, the Company has not restated comparative period financial information for the effects of ASC 842, and will not make the new required lease disclosures for comparative periods beginning before January 1, 2021. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things (i) allowed the Company to carry forward the historical lease classification; (ii) did not require the Company to reassess whether any expired or existing contracts are or contain leases; (iii) did not require the Company to reassess initial direct costs for any existing leases. For all operating leases except for short-term leases, the Company recognized operating right-of-use assets and operating lease liabilities. Leases with an initial term of 12 months or less were short-term lease and not recognized as right-of-use assets and lease liabilities on the combined balance sheets. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of the remaining future minimum lease payments. As the interest rate implicit in the Company’s leases is not readily determi |
Concentration of risks
Concentration of risks | 12 Months Ended |
Dec. 31, 2021 | |
Concentration of risks | |
Concentration of risks | 3. Concentration of risks Currency convertibility risk Substantially all of the Company’s business are transacted in RMB, which is not freely convertible into foreign currencies. On January 1, 1994, the PRC government abolished the dual rate system and introduced a single rate of exchange as quoted daily by the People’s Bank of China (the “PBOC”). However, the unification of the exchange rates does not imply that the RMB may be readily convertible into United States dollars or other foreign currencies. All foreign exchange transactions take place either through the Peoples’ Bank of China (“PBOC”) or other authorized financial institution at exchange rates quoted by PBOC. Approval of foreign currency payments by the PBOC or other regulatory institutions requires submitting a payment application form together with suppliers’ invoices and signed contracts. Concentration of credit risk Financial assets that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, loans and advances, financial assets receivable, guarantee deposits and short-term investment. The Company places its cash and cash equivalents, restricted cash and short-term investment, with reputable financial institutions that have high-credit ratings and quality. There has been no recent history of default in relation to these financial institutions. The Company manages credit risk of loan principal by performing credit assessments on its borrowers and its ongoing monitoring of the outstanding balances. No individual borrower represented 10% or more of total revenue for the years ended December 31, 2019, 2020 and 2021. No individual borrower represented 10% or more of total loan and advances balance as of December 31, 2020 and 2021. Financial assets receivable is recognized at loan inception, which is equal to the guarantee liability. The financial assets receivable reduced upon the receipt of the service fee payment from the borrowers. No individual borrower represented 10% or more of total financial assets receivable balance as of December 31, 2020 and 2021. Guarantee deposits are mainly deposits paid to institutional funding partners for cooperation with these funding partners. There has been no recent history of default in relation to these institutional funding partners. 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 In addition to disclosure about the peer to peer loan business winding down in Note 1, 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 1.3% in the year ended December 31, 2019, appreciation of 6.3% in the year ended December 31, 2020, and appreciation of 2.3% in the year ended December 31, 2021. 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, 2021 | |
Loans and advances, net | |
Loans and advances, net | 4. Loans and advances, net Loans and advances originated and retained by the Company consist of the following: As of December 31 2020 2021 RMB RMB US$ Current portion: Loans receivable (i) Auto-backed loans 39,253 30,149 4,731 Other secured loans 28,740 5,901 926 Unsecured loans 22,353 17,408 2,732 Other loan receivable (ii) — 663,140 104,061 Sub-total 90,346 716,598 112,450 Acquired non-performing loans (iii) Auto-backed loans 1,762,686 1,314,696 206,304 Other secured loans 385,575 377,270 59,202 Unsecured loans 7,595 — — Sub-total 2,155,856 1,691,966 265,506 Total current loans and advances 2,246,202 2,408,564 377,956 Allowance for loans and advances (1,514,186) (1,923,315) (301,810) Loans and advances, net 732,016 485,249 76,146 (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% ; (iii) Other loan receivable represent the amount of the Company's cash being retained in the special account. The Company reclassified the Deposit balance to Other loan receivable when the local government closed the “special account”. See Note 6 for further discussion. (iii) Acquired non-performing loans are overdue loans purchased by the Company from online investors and institutional funding partners; The following table sets forth the activities in the allowance for loans and advances for the years ended December 31, 2019, 2020 and 2021: Loans receivable Acquired non-performing loans Auto- Other Auto- Other backed secured Unsecured backed secured Unsecured 2019 loans loans loans loans loans loans Total RMB RMB RMB RMB RMB RMB RMB Beginning balance (13,013) (5,340) (60,409) (467,774) (38,701) (185,113) (770,350) Current year provision 9,803 2,447 34,844 (790,565) (42,696) (453,795) (1,239,962) Recoveries of loans previously written off — — — (33,587) (1,180) (340) (35,107) Write-offs — — — 388,541 3,979 385,878 778,398 Deregistration of subsidiary — — — — — 7,396 7,396 Ending balance (3,210) (2,893) (25,565) (903,385) (78,598) (245,974) (1,259,625) Loans receivable Acquired non-performing loans Auto- Other Auto- Other backed secured Unsecured backed secured Unsecured 2020 loans loans loans loans loans loans Total RMB RMB RMB RMB RMB RMB RMB Beginning balance (3,210) (2,893) (25,565) (903,385) (78,598) (245,974) (1,259,625) Current year provision 591 975 3,212 (265,167) (204,196) (339,151) (803,736) Recoveries of loans previously written off — — — (52,931) (164) (1,386) (54,481) Write-offs — — — 22,857 1,883 578,916 603,656 Deregistration of subsidiary — — — — — — — Ending balance (2,619) (1,918) (22,353) (1,198,626) (281,075) (7,595) (1,514,186) Loans receivable Acquired non-performing loans Auto- Other Auto- Other backed secured Unsecured Other loan backed secured Unsecured 2021 loans loans loans receivable loans loans loans Total RMB RMB RMB RMB RMB RMB RMB Beginning balance (2,619) (1,918) (22,353) — (1,198,626) (281,075) (7,595) (1,514,186) Current year provision (19,713) (121) 4,945 (339,967) (367,488) (85,594) 657 (807,281) Recoveries of loans previously written off — — — — (26,448) (16) (279) (26,743) Write-offs — — — — 409,334 8,344 7,217 424,895 Ending balance (22,332) (2,039) (17,408) (339,967) (1,183,228) (358,341) — (1,923,315) |
Prepaid expenses and other asse
Prepaid expenses and other assets, net | 12 Months Ended |
Dec. 31, 2021 | |
Prepaid expenses and other assets, net | |
Prepaid expenses and other assets, net | 5. Prepaid expenses and other assets, net As of December 31, 2020 2021 RMB RMB US$ Current: Guarantee deposits (i) 100,609 29,953 4,700 Partner-operated service centers receivable 86,418 105,024 16,481 Prepaid rental and deposits 24,185 15,088 2,368 Prepayment for global position system 20,140 6,851 1,075 Deductible input VAT 17,693 17,106 2,684 Financial asset receivable 17,726 3,784 594 Amounts due from third-party payment platforms (ii) 9,454 3,645 572 Others 92,349 56,310 8,836 Total, gross 368,574 237,761 37,310 Bad debt provision(iii) (66,313) (124,009) (19,460) Total, net 302,261 113,752 17,850 Non-current: Prepaid rental and deposits 14,515 8,572 1,345 Others 4,099 632 99 Total 18,614 9,204 1,444 (i) Guarantee deposits are mainly deposits paid to institutional funding partners for cooperation with these funding partners. (ii) Amount due from third-party payment platforms are mainly restricted cash held by third-party payment platform that belong to the borrowers and online investors as of December 31, 2020 and 2021. (iii) During the years ended December 31, 2019, 2020 and 2021, the Company recorded bad debt provision of RMB 15,090, RMB59,844, and RMB57,696(US$9,054) in the General and administrative expense, respectively . |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2021 | |
Deposits. | |
Deposits | 6. Deposits The Company has been cooperating closely with local authorities in its operation since July 2020.The local authorities set up an account (the “special account”) to collect all cash generated through the Company since July 4, 2020, including the cash from the Company’s bank accounts and cash repayment (including principal, interest and service fee of the Company) from borrowers except for the principal and interest owed to institutional funding partners. The local authorities allowed the Company to retain a portion of cash for daily operation expenditures. The special account was set up and controlled by the local authorities for funds collection. The Company recorded the cash that belonged to the Company and collected service fees that was remitted to the special account since July 4, 2020 as deposit on the consolidated balance sheet as of December 31, 2020. The Deposits represented the amount of the Company's cash being retained in the special account. In July 2021, the Company, in cooperation with the local government, repaid all outstanding net principal balances to peer-to-peer investors. The Company reclassified the Deposit balance to Other loan receivable when the local government closed the “special account”. |
Long-term investments
Long-term investments | 12 Months Ended |
Dec. 31, 2021 | |
Long-term Investments | |
Long-term investments | 7. Long-term investments As of December 31, 2020 and 2021, the Company’s long-term investments consist of cost method investments, which are investments in an investee over which the Company does not have control or significant influence and for which there is no readily determinable fair value. During the years ended December 31, 2019, 2020 and 2021, the Company recorded impairment for long-term investments of nil, nil and RMB241(US$38) in the consolidated statements of comprehensive income (loss), respectively. |
Property and equipment and soft
Property and equipment and software, net | 12 Months Ended |
Dec. 31, 2021 | |
Property and equipment and software, net | |
Property and equipment and software, net | 8. Property and equipment and software, net Property, equipment and software, net consist of the following: As of December 31, 2020 2021 RMB RMB US$ Computer and electronic equipment 49,480 44,481 6,980 Leasehold improvement 63,634 67,338 10,567 Vehicles 9,373 1,674 263 Office furniture and equipment 2,471 2,491 391 Software 24,240 24,245 3,805 Total 149,198 140,229 22,006 Less: Accumulated depreciation and amortization (111,526) (111,355) (17,475) Property, equipment and software, net 37,672 28,874 4,531 Depreciation and amortization expenses of the property, equipment and software were RMB42,586, RMB 29,431 and RMB 13,001 (US$2,040) for the years ended December 31, 2019, 2020 and 2021, respectively. |
Payable to institutional fundin
Payable to institutional funding partners and online investors | 12 Months Ended |
Dec. 31, 2021 | |
Payable to institutional funding partners and online investors | |
Payable to institutional funding partners and online investors | 9. Payable to institutional funding partners and online investors The following table presents payable to institutional funding partners and online investors as of December 31, 2020 and 2021: Fixed annual Rate As of December 31, (%) Term 2020 2021 RMB RMB US$ Current: Institutional funding partners 3% to 11% 7 to 12 months 39,253 5,899 926 Online investors 3% to 11% 2 to 12 months 4,227 — — Total 43,480 5,899 926 |
Current account with online inv
Current account with online investors and borrowers | 12 Months Ended |
Dec. 31, 2021 | |
Current account with online investors and borrowers. | |
Current account with online investors and borrowers | 10. Current account with online investors and borrowers As of December 31, 2020 2021 RMB RMB US$ Investor deposits 54,893 38,166 5,989 Undrawn borrower funds and deposits 199,282 100,517 15,773 Total 254,175 138,683 21,762 |
Accrued expenses and other liab
Accrued expenses and other liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Accrued expenses and other liabilities | |
Accrued expenses and other liabilities | 11. Accrued expenses and other liabilities Accrued expenses and other liabilities consist of the following: As of December 31, 2020 2021 RMB RMB US$ Guarantee liabilities 146,183 83,880 13,163 Payroll and welfare payable 87,109 70,788 11,108 Payable to advancing service providers 8,716 54,832 8,604 Accrued operation and other expense 19,427 18,333 2,877 Payable to investors of P2P loan business — 12,878 2,021 Other taxes payable 24,536 10,358 1,625 Accrued marketing expense 19,245 10,028 1,574 Prepaid service fee 8,333 8,333 1,308 Others 52,471 31,650 4,966 Total 366,020 301,080 47,246 |
Interest income (expense) and f
Interest income (expense) and foreign currency exchange gain (loss), net | 12 Months Ended |
Dec. 31, 2021 | |
Interest income/(expense) and foreign currency exchange gain/(loss), net | |
Interest income (expense) and foreign currency exchange gain (loss), net | 12. Interest income/(expense) and foreign currency exchange gain/(loss), net Interest income/(expense) and foreign currency exchange gain/(loss), net consist of the following: Year Ended December 31, 2019 2020 2021 RMB RMB RMB US$ Interest income 42,013 19,445 6,716 1,054 Bank charges (3,491) (493) (317) (50) Exchange gains/(loss) 1,094 (19,041) (6,265) (983) Interest income/(expense) and foreign currency exchange gain/(loss), net 39,616 (89) 134 21 |
Lease
Lease | 12 Months Ended |
Dec. 31, 2021 | |
Lease | |
Lease | 13. Lease The Company leases office spaces under non-cancellable operating leases. A summary of lease cost recognized in the Company’s combined statements of comprehensive income (loss) is as follows: Year Ended December 31, 2021 RMB US$ Operating leases cost excluding short-term rental expense 4,142 650 Short-term lease cost 21,628 3,394 Total 25,770 4,044 A summary of supplemental information related to operating leases is as follows: Year Ended December 31, 2021 RMB US$ Cash paid for amounts included in the measurement of lease liabilities 4,710 739 Weighted average remaining lease term (in years) 3.2 Weighted average discount rate. 4.75 % The Company’s lease agreements do not have a discount rate that is readily determinable. The incremental borrowing rate is determined at lease commencement or lease modification and represents the rate of interest the Company would have to pay to borrow on a collateralized basis over a similar term and amount equal to the lease payments in a similar economic environment. The weighted-average discount rate was calculated using the discount rate for the lease that was used to calculate the lease liability balance for each lease and the remaining balance of the lease payments for each lease as of December 31, 2021. The weighted-average remaining lease terms were calculated using the remaining lease term and the lease liability balance for each lease as of December 31, 2021. The following table summarizes the maturity of lease liabilities under operating leases as of December 31, 2021: For the Year Ending December 31, RMB US$ 2022 6,567 1,031 2023 6,903 1,083 2024 7,281 1,143 2025 3,192 501 2026 926 145 Total lease payments 24,869 3,903 Less: imputed interest (1,871) (294) Total 22,998 3,609 Less: current portion 5,679 891 Non-current portion 17,319 2,718 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes | |
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 subsidiary incorporated in Hong Kong is subject to income tax within Hong Kong at the applicable tax rate on taxable income. Since April 1, 2018, our subsidiary incorporated in Hong Kong has been subject to Hong Kong profit tax at a rate of 8.25% on assessable profits up to HK$2.0 million and 16.5% on any part of assessable profits over HK$2.0 million. There is an anti-fragmentation measure where each group will have to nominate only one company in the group to benefit from the progressive rates. For the years ended December 31, 2019, 2020 and 2021, 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 and Rymo Technology Industry Limited are exempted from income tax on its foreign-derived income and there is no withholding tax in Hong Kong on remittance of dividends. China The Company’s subsidiary, VIE and VIE’s subsidiaries domiciled in the PRC were subject to 25% statutory income tax rate in the periods presented. Zhejiang Qunshuo Digital Technology Co., Ltd. and Hangzhou Yaohong Technology Co., Ltd. qualify as High and New Technology Enterprise (“HNTE”) companies in the PRC, and are entitled to pay a reduced income tax rate of 15% for the period from January, 2019 to December 2021. A HNTE Certificate is valid for three years. An entity may re-apply for an HNTE certificate when the prior certificate expires. The HNTE certificate for Zhejiang Qunshuo Electronics Co., Ltd. has been extended for another three years until December 2024. 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. Super deduction on research and development (“ Under the EIT law of the PRC, qualified enterprises can enjoy a 175%super deduction for eligible R&D expenses in the year ended 2019, 2020 and 2021. During the years ended December 31, 2019, 2020 and 2021, RMB85,810, RMB30,112 and RMB22,193 (US$3,483) of R&D expense was eligible for the super deduction, which accounts for an RMB13,919, RMB5,646 and RMB 4,161(US$ 653) 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 (loss) are as follows: Year ended December 31, 2019 2020 2021 RMB RMB RMB US$ Current income tax 365,293 45,249 2 1 Deferred income tax (260,050) 271,237 403,852 63,373 Total income tax expenses 105,243 316,486 403,854 63,374 The principal components of the deferred tax assets are as follows: As of December 31, 2020 2021 RMB RMB US$ Deferred tax assets Allowance for loans and advances 613,056 722,633 113,397 Net operating loss carry forwards 70,220 145,472 22,828 Accruals for share-based compensation 42,636 42,636 6,691 Accruals for payroll and other costs 13,589 13,594 2,133 Accruals for other liabilities 30,558 49,587 7,781 Contract liabilities 36,469 12,829 2,013 Lease liabilities — 4,531 711 Less: valuation allowance (402,676) (986,982) (154,879) Balance at the end of the year 403,852 4,300 675 Deferred tax liabilities Right-of-use assets — (4,300) (675) Balance at the end of the year — (4,300) (675) Deferred tax assets, net 403,852 — — In general, the PRC tax authority has up to five years to conduct examinations of the Company’s tax filings. Accordingly, the PRC subsidiaries’ and VIEs and subsidiaries of the VIEs’ tax years 2015 through 2021 remain open to examination by the taxing jurisdictions. According to PRC tax regulations, the PRC net operating loss can generally carry forward for no longer than five years starting from the year subsequent to the year in which the loss was incurred. Carryback of losses is not permitted. As of December 31, 2021, the Company had net operating losses of RMB616,377 (US$96,723) which will be available to offset future taxable income. If not used, these carryforwards will expire between the year ended December 31, 2022 and 2026. The Company operates through its subsidiaries, VIEs and subsidiaries of the VIEs. The valuation allowance is considered on an individual entity basis. As of December 31, 2020 and 2021, valuation allowances on deferred tax assets are provided because the Company believes that it is more-likely-than-not that certain of the subsidiaries, VIEs and subsidiaries of the VIE registered in the PRC will not be able to generate sufficient taxable income in the near future, to realize the deferred tax assets carried-forwards. A reconciliation of the differences between the PRC statutory tax rate is as follows: Year ended December 31, 2019 2020 2021 RMB RMB RMB US$ Income/(loss) before provision of income tax 368,485 (397,857) (740,190) (116,152) PRC statutory income tax rate 25 % 25 % 25 % 25 % Income tax computed at statutory tax rate 92,121 (99,465) (185,047) (29,038) Difference on tax rate (18,427) 8,803 4,898 769 Research and development super-deduction (13,919) (5,646) (4,161) (653) Non-deductible/non-taxable items 34,168 23,148 3,858 605 Changes in valuation allowance 11,300 389,646 584,306 91,691 Income tax expenses 105,243 316,486 403,854 63,374 Unrecognized Tax Benefits Year ended December 31, 2019 2020 2021 RMB RMB RMB US$ Balance at January 1 — 215,531 434,439 68,173 Additions based on tax positions related to current year 215,531 218,908 184,472 28,948 Balance at December 31 215,531 434,439 618,911 97,121 As of December 31, 2020 and 2021, the total unrecognized tax position was RMB434,439 and RMB618,911 (US$97,121), respectively, related to the early write-off for loans. The balance in unrecognized tax benefits if ultimately recognized, would favorably impact the Company’s effective tax rate and result in adjustments to deferred taxes by RMB215,531 (US$33,822) as of December 31, 2020 and December 31, 2021. The unrecognized tax benefit will remain until the statute expires or the bad debt becomes deductible under PRC tax law, pending clarification of current tax law or audit by the tax authorities. For the years ended December 31, 2019, 2020 and 2021, no interest expense or penalty was accrued in relation to the unrecognized tax benefit. As of the issuance date of this report, the Group is not notified of any fine or penalty from the PRC tax authorities. |
Share capital
Share capital | 12 Months Ended |
Dec. 31, 2021 | |
Share capital | |
Share capital | 15. Share capital Ordinary shares The rights of the holders of Class A and Class B ordinary shares are identical, except with respect to voting and conversion rights. Each share of Class A ordinary shares is entitled to one vote per share and is not convertible into Class B ordinary shares under any circumstances. Each share of Class B ordinary shares is entitled to five vote per share and is convertible into one Class A ordinary share at any time by the holder thereof. Upon any transfer of Class B ordinary shares by the holder thereof to any person or entity which is not an affiliate of such holder, such Class B ordinary shares would be automatically converted into equal number of Class A ordinary shares. The Company changed the ratio of its ADSs representing its Class A ordinary shares from one ADS representing one Class A ordinary share to one ADS representing five Class A ordinary shares at the open of trading on January 26, 2022 (U.S. Eastern Time). For Weidai’s ADS holders, the change in the ADS ratio have the same effect as a one-for-five reverse ADS split. There is no change to the Company's Class A ordinary shares. ADS holders of record on the effective date will not be required to take any action in connection with the ADS ratio change. The exchange of every five then-held ADSs for one new ADS will occur automatically with the then-held ADSs being cancelled and new ADSs being issued by the depositary bank, in each case as of the effective date for the ADS ratio change. Weidai’s ADSs will continue to be traded on the NYSE under the symbol “WEI”. Dividends No dividend was declared for the years ended December 31, 2019, 2020 and 2021. |
Related party balances and tran
Related party balances and transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related party balances and transactions | |
Related party balances and transactions | 16. Related party balances and transactions a) Related parties Name of related parties Relationship with the Company Mr. Hong Yao Founder, chief executive officer and principal shareholder of the Company Hangzhou Ruituo Technology Co., Ltd. Entity controlled by Founder Zhejiang Ruituo Information Technology Co., Ltd. Entity controlled by Founder Chunan Yunxiu Financial Information Advisory Services Partnership (GP) (formerly known as Chunan Yuntong Information Advisory Services Company) Entity controlled by immediate family members of Director Chunan Wenbei Financial Information Advisory Services Partnership (GP) (formerly known as Chunan Wencai Information Advisory Services Company) Entity controlled by immediate family members of Founder Chunan Wenbing Financial Information Advisory Services Partnership (GP) (formerly known as Chunan Wencai Information Advisory Services Company) Entity controlled by immediate family members of Founder Chunan Wenhai Financial Information Advisory Services Partnership (GP) (formerly known as Chunan Wencai Information Advisory Services Company) Entity controlled by immediate family members of Founder Chunan Wenjun Financial Information Advisory Services Partnership (GP) (formerly known as Chunan Wencai Information Advisory Services Company) Entity controlled by immediate family members of Founder Chunan Wenkang Financial Information Advisory Services Partnership (GP) (formerly known as Chunan Wencai Information Advisory Services Company) Entity controlled by immediate family members of Founder Chunan Wenlin Financial Information Advisory Services Partnership (GP) (formerly known as Chunan Wencai Information Advisory Services Company) Entity controlled by immediate family members of Founder Chunan Wenrong Financial Information Advisory Services Partnership (GP) (formerly known as Chunan Wencai Information Advisory Services Company) Entity controlled by immediate family members of Founder Chunan Wenshe Financial Information Advisory Services Partnership (GP) (formerly known as Chunan Wencai Information Advisory Services Company) Entity controlled by immediate family members of Founder Chunan Wensheng Financial Information Advisory Services Partnership (GP) (formerly known as Chunan Wencai Information Advisory Services Company) Entity controlled by immediate family members of Founder Chunan Wenyang Financial Information Advisory Services Partnership (GP) (formerly known as Chunan Wencai Information Advisory Services Company) Entity controlled by immediate family members of Founder Chunan Wanglin Financial Information Advisory Services Partnership (GP) (formerly known as Chunan Wangcai Information Advisory Services Company) Entity controlled by immediate family members of Director Chunan Wangqi Financial Information Advisory Services Partnership (GP) (formerly known as Chunan Wangcai Information Advisory Services Company) Entity controlled by immediate family members of Director Chunan Wangqian Financial Information Advisory Services Partnership (GP) (formerly known as Chunan Wangcai Information Advisory Services Company) Entity controlled by immediate family members of Director Chunan Wangqun Financial Information Advisory Services Partnership (GP) (formerly known as Chunan Wangcai Information Advisory Services Company) Entity controlled by immediate family members of Director Chunan Wangxia Financial Information Advisory Services Partnership (GP) (formerly known as Chunan Wangcai Information Advisory Services Company) Entity controlled by immediate family members of Director Chunan Wanglan Financial Information Advisory Services Partnership (GP) (formerly known as Chunan Wangcai Information Advisory Services Company) Entity controlled by immediate family members of Director Zhejiang Ruituo Non-financing Guarantee Co., Ltd. Entity controlled by Founder PT PENDANAAN GOTONG ROYONG Entity which the Company holds 15% equity interests Weiwu (Hangzhou) Network Technology Co., Ltd. Entity controlled by Founder Deqing Jingxiu Management Consultant Partnership(LLP) The Company’s shareholder Key management and their immediate family members The Company’s key management and their immediate family members b) The Company had the following related party transactions: Year ended December 31, 2019 2020 2021 RMB RMB RMB US$ Loan service fee from: Key management and their immediate family members 274 20 — — Hangzhou Ruituo Technology Co., Ltd. 32 — — — Total 306 20 — — Origination and servicing expenses: Chunan Wanglan Financial Information Advisory Services Partnership (GP) 1,729 — — — Chunan Wenjun Financial Information Advisory Services Partnership (GP) 6,927 4,365 1,936 304 Chunan Wenkang Financial Information Advisory Services Partnership (GP) 4,518 1,774 557 87 Chunan Wenhai Financial Information Advisory Services Partnership (GP) 3,518 1,095 1,111 174 Chunan Wenbing Financial Information Advisory Services Partnership (GP) 6,228 2,505 793 124 Chunan Wenlin Financial Information Advisory Services Partnership (GP) 4,693 2,231 688 108 Chunan Wenrong Financial Information Advisory Services Partnership (GP) 5,902 3,347 1,091 171 Chunan Wenshe Financial Information Advisory Services Partnership (GP) — (569) 229 36 Chunan Wenbei Financial Information Advisory Services Partnership (GP) 6,900 2,844 1,026 161 Chunan Wensheng Financial Information Advisory Services Partnership (GP) 6,509 2,339 1,122 176 Chunan Wenyang Financial Information Advisory Services Partnership (GP) 1,709 367 408 64 Chunan Wangxia Financial Information Advisory Services Partnership (GP) 3,027 590 426 67 Chunan Wanglin Financial Information Advisory Services Partnership (GP) 6,900 3,507 2,667 419 Chunan Wangqi Financial Information Advisory Services Partnership (GP) 4,250 1,166 108 17 Chunan Wangqun Financial Information Advisory Services Partnership (GP) 9,255 3,033 3,017 473 Chunan Yunxiu Financial Information Advisory Services Partnership (GP) 943 428 169 27 Total 73,008 29,022 15,348 2,408 c) The Company had the following related party balances: Amounts due from related parties As of December 31, 2020 2021 RMB RMB US$ Hangzhou Ruituo Technology Co., Ltd. (i) 6,358 28,345 4,448 Zhejiang Ruituo Non-financing Guarantee Co., Ltd. 2,794 2,677 420 PT PENDANAAN GOTONG ROYONG 1,065 — — Others 5,143 1,807 284 Total 15,360 32,829 5,152 (i) The balance mainly represents loans provided to Hangzhou Ruituo Technology Co., Ltd. and receivable from the disposal of vehicle collaterals for overdue loans as of December 31, 2020 and 2021. Amounts due to related parties As of December 31, 2020 2021 RMB RMB US$ Hangzhou Ruituo Technology Co., Ltd. (ii) 483 708 111 Key management and their immediate family members (ii) 3,092 — — Mr. Hong Yao (ii) 700 7 1 Other related service center operation partners — 384 61 Others 871 76 11 Total 5,146 1,175 184 (ii) The balance mainly represents investment balance due to related parties who are also investors on the platform. |
Share-based compensation
Share-based compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based compensation. | |
Share-based compensation | 17. Share-based compensation Stock appreciation rights modification On October 1, 2018, the Company modified the stock appreciation rights it previously issued by replacing the cash-settlement feature with a net share settlement feature, which converts the award from a liability award to an equity award because the Company no longer has an obligation to transfer cash to settle the arrangement. All of the outstanding vested virtual share options were exchanged for restricted shares of the Company with no other terms or conditions changed. These restricted shares are held by one of the Company's ordinary shareholders on behalf of the grantees, and are considered outstanding as the shareholder is entitled to dividends if declared. The Company compared the fair value of the instrument immediately before the modification to the fair value of the modified equity award, no incremental compensation cost was noted and recognized. The Company will recognize the remaining compensation expenses over the remaining service requisite period using the accelerated method. The share-based compensation of RMB26,858, RMB798 and RMB 2,248 (US$353) were charged to the consolidated statements of comprehensive income (loss) for the year ended December 31, 2019, 2020 and 2021. 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. 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, 2021, the Company has granted 1,999,951 share awards under the 2018 Plan, including 1,928,561 options and 71,390 restricted share units. As of December 31, 2021, none of options had been exercised. Restricted shares activity The following table summarizes the Company’s Restricted Shares activity: Weighted average grant-date fair Number of shares value Outstanding, December 31, 2020 739,026 313.88 Forfeited (15,341) 43.01 Outstanding, December 31, 2021 723,685 319.62 The weighted average grant-date fair value of Restricted Shares as at December 31, 2021 was RMB 319.62 per share, which was derived from the fair value of the underlying ordinary shares. As of December 31, 2021, there was RMB 1,075 (US$169) of total unrecognized employee share-based compensation expenses related to unvested Restricted Shares expected to vest over a weighted-average period of 0.25 years. Options activity The following table summarizes the Company’s Options activity: Weighted average grant-date fair Number of options value Outstanding, December 31, 2020 873,695 122.07 Forfeited (49,054) 36.79 Outstanding, December 31, 2021 824,641 127.15 The weighted average grant-date fair value of Options as at December 31, 2021 was RMB 127.15 per share, which was derived from the fair value of the underlying ordinary shares. As of December 31, 2021, there was RMB 4,278 (US$671) of total unrecognized employee share-based compensation expenses related to unvested Options expected to vest over a weighted-average period of 1.16 years. Share-based compensation expenses For the years ended December 31, 2019, 2020 and 2021, the Company allocated share-based compensation expenses as follows: Year ended December 31, 2019 2020 2021 RMB RMB RMB US$ Origination and servicing 21,279 346 4,033 633 General and administrative 35,162 8,717 5,115 803 Research and development 8,355 (2,970) 1,110 174 Total 64,796 6,093 10,258 1,610 |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and contingencies. | |
Commitments and contingencies | 18. Commitments and contingencies Capital and other commitments The Company did not have significant capital and other commitments, long-term obligations as of December 31, 2021 other than operating lease as disclosed in Note 13. Contingencies The Company is subject to legal proceedings and regulatory actions in the ordinary course of business. The results of such proceedings cannot be predicted with certainty, but the Company does not anticipate that the final outcome arising out of any such matter will have a material adverse effect on the consolidated business, financial position, cash flows or results of operations taken as a whole. As of December 31, 2021, the Company is not a party to any material legal or administrative proceedings. |
Business combination
Business combination | 12 Months Ended |
Dec. 31, 2021 | |
Business combination | |
Business combination | 19. Business combination On May 24, 2018, the Company acquired a 70% equity interest in Hangzhou Jiujiu Financial Information Services Limited for the expansion into the finance information service market for a total consideration of RMB4,500. The acquisition was accounted for as a business combination. Goodwill representing the expected synergies from the acquisition of RMB3,067 was recognized which is not tax deductible. On June 6, 2018, the Company acquired 100% equity interest in Rymo Technology Industry Limited which is engaged in the provision of collateral registration services through its wholly owned subsidiary, Shanghai Zaohui Finance Lease Co., Ltd., for nil consideration. The acquisition was accounted for as a business combination. Goodwill representing the expected synergies from the acquisition of RMB2,745 was recognized which is not tax deductible. The results of the purchase price allocation for these acquisitions are based on valuation determined by the Company with the assistance of an independent third-party valuation firm. The purchase price allocations and the actual results of operations after the acquisition date have not been presented because the effects of these acquisitions were insignificant, either individually or in aggregate. The Company fully impaired the goodwill in the year ended December 31, 2020 and no changes for the year ended December 31, 2021. |
Restricted net assets
Restricted net assets | 12 Months Ended |
Dec. 31, 2021 | |
Restricted net assets | |
Restricted net assets | 20. 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, VIEs and the subsidiaries of the VIEs located in the PRC (collectively referred as the “PRC entities”) are required to provide for certain statutory reserves, namely a general reserve, an enterprise expansion fund and a staff welfare and bonus fund. The PRC entities are required to allocate at least 10% of their after-tax profits on an individual company basis as determined under PRC accounting standards to the statutory reserve and has the right to discontinue allocations to the statutory reserve if such reserve has reached 50% of registered capital on an individual company basis. In addition, the registered capital of the PRC entities is also restricted. 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 RMB263,207 and RMB263,207 (US$41,303) as of December 31, 2020 and 2021, respectively. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent events | |
Subsequent events | 21. Subsequent events The Group has evaluated subsequent events through the date of issuance of the consolidated financial statements, other than as discussed in Note 15 regarding the reverse ADS split, there was no subsequent event has been identified that would have required adjustment or disclosure in the consolidated financial statements. |
Parent company only condensed f
Parent company only condensed financial information | 12 Months Ended |
Dec. 31, 2021 | |
Parent company only condensed financial information | |
Parent company only condensed financial information | 22. Parent company only condensed financial information The condensed financial information of the Company has been prepared in accordance with SEC Regulation S-X Rule 5-04 and Rule 12-04, using the same accounting policies as set out in the Group’s consolidated financial statements, except that the Company uses the equity method to account for investments in its subsidiaries, VIEs and VIEs’ subsidiaries. Condensed balance sheets As of December 31, 2020 2021 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 177,920 10,846 1,702 Short-term investments — 158,565 24,882 Prepaid expenses and other assets 2,057 403 63 Amounts due from subsidiaries and consolidated VIEs 82,667 85,434 13,407 Total current assets 262,644 255,248 40,054 Non-current assets: Investments in subsidiaries and VIEs 1,302,576 179,635 28,189 Total non-current assets 1,302,576 179,635 28,189 TOTAL ASSETS 1,565,220 434,883 68,243 LIABILITIES AND EQUITY Current liabilities Accrued expenses and other liabilities — 71 11 Amounts due from subsidiaries and consolidated VIEs 134 134 22 Total current liabilities 134 205 33 Total liabilities 134 205 33 Shareholders’ equity: Class A ordinary shares (par value of US$0.000002 per share; and 35,390,055 and 35,390,055 shares issued outstanding — — — Class B ordinary shares (par value of US$0.000002 per share; 35,071,400 and 35,071,400 shares issued and outstanding as of December 31, 2020 and 2021, respectively) 1 1 — Additional paid-in capital 1,241,845 1,252,103 196,482 Accumulated other comprehensive loss (2,510) (2,510) (394) Retained earnings (accumulated deficit) 325,750 (814,916) (127,878) Total Weidai Ltd. shareholder’s equity 1,565,086 434,678 68,210 TOTAL LIABILITIES AND EQUITY 1,565,220 434,883 68,243 25. Parent company only condensed financial information (Continued) Condensed statements of operations Year ended December 31, 2019 2020 2021 RMB RMB RMB US$ Other revenues — 1,020 1,466 230 Total net revenues — 1,020 1,466 230 Sales and marketing (488) (209) — — General and administrative (6,765) (5,791) (4,806) (754) Total operating costs and expenses (7,253) (6,000) (4,806) (754) Income/(loss) from operations (7,253) (4,980) (3,340) (524) Interest income/(expense) and foreign currency exchange gain/(loss), net 9,654 (8,696) (2,533) (397) Other income, net (4) Net income/(loss) before equity in losses of subsidiaries and consolidated VIEs and VIEs’ subsidiaries 2,397 (13,676) (5,873) (921) Equity in losses of subsidiaries and consolidated VIEs and VIEs’ subsidiaries 251,213 (698,897) (1,134,793) (178,074) Net income/(loss) 253,610 (712,573) (1,140,666) (178,995) Foreign currency translation adjustment 190 — — — Comprehensive income/(loss) 253,800 (712,573) (1,140,666) (178,995) Condensed statements of cash flows Year ended December 31, 2019 2020 2021 RMB RMB RMB US$ Net cash provided by/(used in) operating activities 10,228 (13,583) (7,880) (1,237) Net cash used in investing activities (12,366) (66,156) (159,194) (24,981) Net cash used in financing activities (15,167) — — — Net decrease in cash and cash equivalents (17,305) (79,739) (167,074) (26,218) Cash and cash equivalents and restricted cash at the beginning of the year 274,964 257,659 177,920 27,920 Cash and cash equivalents and restricted cash at the end of the year 257,659 177,920 10,846 1,702 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies | |
Basis of presentation | Basis of presentation The consolidated financial statements of the company have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, VIEs and VIEs’ subsidiaries for which the Company is the primary beneficiary. All significant inter-company balances and transactions between the Company, its subsidiaries, VIEs and VIEs’ subsidiaries are eliminated upon consolidation. |
Use of estimates | Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant accounting estimates reflected in the Company’s consolidated financial statements include, but are not limited to, revenue recognition, allowance for loans and advances, financial assets receivable and guarantee liabilities, useful life of long-lived assets, share-based compensation, valuation allowance for deferred tax assets, uncertain tax positions, short-term and long-term investments, and 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$. The functional currencies of the Company’s PRC subsidiary, VIEs and VIEs’ subsidiaries are the RMB. The determination of the respective functional currency is based on the criteria stated in ASC 830, Foreign Currency Matters The financial statements of the Company and Weidai HK are translated from the functional currency to the reporting currency, RMB. Monetary assets and liabilities of the subsidiaries are translated into RMB using the exchange rate in effect at each balance sheet date. Income and expenses items are translated at the average exchange rate prevailing during the fiscal year. Translation gains and losses are accumulated in other comprehensive income, as a component of shareholders’ equity on the consolidated financial statements. Transactions denominated in other than the functional currencies are remeasured into the functional currency of the entity at the exchange rates prevailing on the transaction dates. Financial assets and liabilities denominated in other than the functional currency are re-measured into the functional currency at the exchange rates prevailing at the balance sheet date. The foreign exchange differences are recorded in the consolidated statements of comprehensive income (loss). |
Convenience translation | Convenience translation Translations of amounts from RMB into US$ for the convenience of the readers have been calculated at the exchange rate of RMB6.3726 per US$1.00 on December 31, 2021, the last business day in fiscal year 2021, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be converted, realized or settled into US$ 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. As of December 31,2020, and 2021, the cash and cash equivalents amounted to RMB 409,498 and RMB 234,568 (US $36,809 ), respectively. The cash held in PRC entities amounted to RMB 226,754 and RMB 216,870 (US $34,031 ) as of December 31, 2020 and 2021, respectively. |
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, 2020, and 2021, the restricted cash related to cash not yet disbursed amounted to RMB138,681 and RMB70,114 (US$11,002), respectively; and (ii) cash held by banks as guarantee deposits paid on contracts and other restrictions amounted to RMB26,155 and RMB3,998 (US$627) as of December 31, 2020 and 2021, respectively; and (iii) cash froze by authorities amounted to RMB 31,104 and RMB27,271 (US$ 4,279) as of December 31, 2020 and 2021, respectively. |
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: ◾ Level 1 - Observable inputs that reflect quoted prices in active markets for identical assets or liabilities. ◾ Level 2 - Include other inputs that are directly or indirectly observable in the marketplace. ◾ Level 3 - Unobservable inputs which are supported by little or no market activity. ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach; and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. In accordance with ASC 820, the Company measures available-for-sale investments at fair value on a recurring basis. The fair value of the Company’s available-for-sale debt securities are measured using the income approach, based on quoted market interest rates of similar instruments and other significant inputs derived from or corroborated by observable market data, which is classified in Level 2 of the valuation hierarchy. The fair value of time deposits is determined based on the prevailing interest rates in the market, which is classified in Level 1 of the valuation hierarchy. No fair value hierarchy measurement change for the year ended 2019, 2020 and 2021. 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. The Company had no financial assets and liabilities measured and recorded at fair value on a non-recurring basis as of December 31, 2020 and 2021. |
Short-term investments | Short-term investments Short term investments consist of available-for-sale investments. Investments classified as available-for-sale investments are carried at their fair values and the unrealized gains or losses from the changes in fair values are reported net of tax in accumulated other comprehensive income (loss) until realized. Realized gains or losses are included in interest income in the consolidate statements of operations and comprehensive income/(loss) during the period in which the gain or loss is realized. The Company’s available-for-sale debt securities consist of financial products with maturities of less than one year purchased from commercial banks. The Company elected the fair value method at the date of initial recognition and carried these investments subsequently at fair value. Fair value is estimated based on quoted prices of similar financial products provided by the banks at the end of each period, which is classified in Level 2 of the valuation hierarchy in the fair value measurement. |
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. uncollected principal and deferred origination costs), net of allowance. 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 receivable 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. Acquired non-performing loans The Company records acquired non-performing loans in accordance with ASC310-30, Loan and Debt Securities with Deteriorated Credit Quality, at their purchase price. As the cash flows expected to be collected cannot be estimated because the timing of the collection and the condition of the collateral are indeterminable, the acquired non-performing loans are placed on non-accrual status and impairment is measured based on the historical recovery after the case was withdrawn in November 2021, instead of using the fair value of the collateral less the estimated selling costs. 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. Commencing from the second half of 2020, the Company has stopped purchasing any additional non-performing loans due to the changes in the circumstances and industry in which it operates, accordingly, the roll-rate method before 2020 for estimating allowances was then changed to a combination of probability-of-default and loss-rate methods. The difference in the amounts of allowance between the former and the new estimation methods was insignificant. The two new methods are applied differently for 1) loans and advances and 2) acquired non-performing loans, while also depending on whether the loans were auto-backed (collateralized) or unsecured. For auto-backed loans recorded as loans and advances, the Company takes into consideration of a) the monthly default rates of borrowers, and b) the loss-rate, which represents the monetary value of losses incurred as a percentage of the gross balance of those loans. For auto-backed loans recorded as acquired non-performing loans, the Company only takes the loss-rate as the basis to determine its provisions. For unsecured loans recorded as loans and advances, loss rate of unsecured loans was assessed as 100% for both loans receivable and non-performing loans. For loan receivables, 100% of the unsecured loans were past due over 360 days, which is deemed to have remote possibility to collect any repayment based on the historical experience. For non-performing loans, the balance of unsecured loans was insignificant and the Company assessed provision of all of them as 100% considering the low probability of recoverability. For the other loan receivable re-classed from deposits, the Company measured the allowance based on the estimated cash collection from peer to peer borrowers used historical recovery rate. 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. Borrowings The Company may provide loans to borrowers and then transfers the loans 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 repayment 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 repayments for delinquent installment 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 repayments or to purchase the loan over the term of the arrangement (the non-contingent aspect) is accounted for in accordance with ASC 460, Guarantees (“ASC 460”). The contingent obligation relating to the contingent loss arising from the arrangement is accounted for in accordance with ASC 450, Contingencies (“ASC 450”). At inception, the Company recognizes the non-contingent aspect of the guarantee liability at fair value, which considers the premium required by a third-party market participant to issue the same risk assurance in a standalone transaction. Subsequent to the initial recognition, the non-contingent aspect of the risk assurance liability is reduced over the term of the arrangement as the Company is released from its stand ready obligation on a loan-by-loan basis based on the borrower’s repayment of the loan principal. The contingent loss arising from the obligation to make future payments is recognized when borrower default is probable and the amount of loss is estimable. The Company considers the underlying risk profile including delinquency status, overdue period, and historical loss experience when assessing the probability of contingent loss. Borrowers are grouped based on common risk characteristics, such as product type. The Company measured contingent loss based on the future payout of the arrangement estimated using the historical default rates of a portfolio of similar loans less the fair value of the recoverable collateral. The amount of provision for financial guarantee liabilities was RMB19,206, RMB103,027 and RMB76,115 (US$11,944) for the years ended December 31, 2019, 2020 and 2021 and was recorded as part of operating expenses. The maximum potential undiscounted future payment which the Company would be required to make under its guarantee obligation is RMB1,143,835 and RMB186,204 (US$29,219) as of December 31, 2020 and 2021, respectively. |
Long-term Investments | Long-term Investments The Company’s long-term investments consist of cost method investments. In accordance with ASC subtopic 325-20 (“ASC 325-20”), Investments-Other: Cost Method Investments |
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, which simplifies the accounting for goodwill impairment by eliminating Step two from the goodwill quantitative impairment test. Under the new guidance, if a reporting unit’s carrying amount exceeds its fair value, an entity will record an impairment charge based on that difference. The impairment charge will be limited to the amount of goodwill allocated to that reporting unit. Fair value is primarily determined by computing the future discounted cash flows expected to be generated by the reporting unit. In the year ended December 31, 2019, 2020, 2021, the Company recorded a goodwill impairment charge of nil, RMB 5,812 and nil respectively. |
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 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 | 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. If the carrying amount of the long-lived asset or asset group is not recoverable 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, 2019, 2020 and 2021. |
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, 2019, 2020 and 2021. The Company recognized research and development expenses amounted to RMB81,664, RMB27,144 and RMB22,193 (US$3,483) for the years ended December 31, 2019, 2020 and 2021, 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 with no further conditions to be met are recorded as government subsidies in the consolidated statements of operations and comprehensive income (loss) when received. The government subsidies with certain conditions are recorded as liabilities when received and will be recorded as government subsidies in the consolidated statements of operations and comprehensive income (loss) when the conditions are met. |
Revenue recognition | Revenue recognition The Company provides loan solution services which include facilitating and monitoring the execution of loan agreements. Borrowers make repayments through the Company, and the Company will then remit the requisite returns to the investors on a periodic basis. The service fee is charged based on a certain percentage of the loans. In most of the cases, the borrowers pay the service fee on a monthly basis. The Company also generates revenue from other contingent fees, such as late payment penalties and net revenue from sale of collateral. The Company recognizes revenue by applying the following five steps according to ASC 606 Revenue from Contracts with Customers (i) identify the contract with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to performance obligations in the contract; and (v) recognize revenue when (or as) performance obligations are satisfied. The Company determines that both the borrowers and the investors are its customers because they both receive services provided by the Company pursuant to the contractual terms among the Company, the borrowers and the investors. For each loan facilitated on the platform, the Company considers the loan services and guarantee service as two separate services. Of which, the guarantee service is accounted for in accordance with ASC 460, Guarantees, at fair value The Company identified one performance obligation for borrowers and investors respectively under ASC 606, as the loan services are not distinct. The Company determines the total transaction price to be the service fees chargeable to the borrowers and the investors. The transaction price includes variable consideration in the form of early repayments of the loans by the borrowers. The Company recognizes revenue when (or as) the entity satisfies the service or performance obligation by transferring the promised service (that is, an asset) to customers. Both revenue from combined loan services to borrowers and revenue from post-origination to investors are recognized on a straight-line basis over the term of the underlying loans as the customers simultaneously receive and consume the benefit provided by the services the Company performs. Customer incentives For certain transactions with the investors, the Company, at its sole discretion may provide various incentives to investors when a loan is successfully matched during the relevant incentive program period. The cash incentive from the Company is either provided upfront or on a monthly basis over the term of the loan as additional interest. For arrangements where the Company does not originate loans to borrowers, these cash incentives are accounted for as reduction of revenue in accordance with ASC 606. Cash incentives accounted for as reduction of revenue amounted to RMB359,568, RMB86,259 and nil for the years ended December 31, 2019, 2020 and 2021, respectively. For arrangements where the Company originates loans to the borrowers and the related loan payables to investors are recorded on the balance sheet, cash incentives paid upfront will reduce loan payables to investors and loan payables are effectively issued at a discount. If cash incentives are paid to investors over the loan period, the cash incentives are included as repayment to investors for the loan and considered in the effective interest rate of the loan payable to investors. There is no cash incentive as reduction of loan payables for the years ended December 31, 2019, 2020 and 2021. 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, and net revenue from sale of collateral. These contingent fees are not recognized until the contingencies are resolved and the fees become fixed and determined, which also coincide with when the services are performed and collectability is reasonably assured. These fees are classified within other revenue in the consolidated statements of comprehensive income (loss). Other revenues consist of: Year Ended Year Ended Year Ended December 31, December 31, December 31, 2019 2020 2021 RMB RMB RMB US$ Late payment penalties 102,910 96,224 9,163 1,437 Others 170,523 1,559 990 156 Total 273,433 97,783 10,153 1,593 Revenue through service center operation partners The Company collaborates with service center operation partners for the operation of partner-operated service centers under a revenue sharing model. The Company is a principal in a contract satisfy a performance obligation in accordance with ASC 606-10-55 and recognizes revenue on a gross basis when all the revenue recognition criteria set forth in ASC 606 are met. Pursuant to the one-year cooperation agreements with the service center operation partners, the Company records all of each partner-operated service center’s loan facilitation service fee and post facilitation service fee as revenue, and subsequently pay the service center operation partners an agreed percentage of such amounts as the partner-operated service center’s operating cost and expenses which are recorded as origination and servicing expenses. If loans facilitated by the partner-operated service centers become delinquent and are subsequently purchased by the Company, the relevant service center operation partners are obligated to compensate the Company for an agreed percentage of the purchase price of the delinquent loans. |
Contract Liability | Contract liability Contract liability 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. Revenue recognized for the year ended December 31, 2021 that was included in contract liabilities as of January 1, 2021 was RMB94,791 (US$14,875) |
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 and debt-collection cost. |
Advertising expenses | Advertising expenses Advertising costs are expensed as incurred in accordance with ASC 720-35, Other Expense-Advertising Costs. The Company recognized advertising costs of RMB54,167, RMB1,711 and RMB813 (US$128) for the years ended December 31, 2019, 2020 and 2021, respectively. |
Employee benefits | Employee benefits Full-time employees of the Company in the PRC participate in a government mandated multi-employer defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require that the Company make contributions to the government for these benefits based on a certain percentage of the employee’s salaries. The Company has no legal obligation for the benefits beyond the contributions. The Company recognized expenses for employee benefits of RMB107,754, RMB51,841 and RMB19,634 (US$3,081) for the years ended December 31, 2019, 2020 and 2021, respectively. |
Income taxes | Income taxes The Company accounts for income taxes using the liability method in accordance with ASC 740, Income 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 The Company adopted the new lease accounting standard, ASC Topic 842, Leases (‘‘ASC 842’’) from January 1, 2021, using the non-comparative transition option pursuant to ASU 2018-11. Therefore, the Company has not restated comparative period financial information for the effects of ASC 842, and will not make the new required lease disclosures for comparative periods beginning before January 1, 2021. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things (i) allowed the Company to carry forward the historical lease classification; (ii) did not require the Company to reassess whether any expired or existing contracts are or contain leases; (iii) did not require the Company to reassess initial direct costs for any existing leases. For all operating leases except for short-term leases, the Company recognized operating right-of-use assets and operating lease liabilities. Leases with an initial term of 12 months or less were short-term lease and not recognized as right-of-use assets and lease liabilities on the combined balance sheets. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of the remaining future minimum lease payments. As the interest rate implicit in the Company’s leases is not readily determinable, the Company utilizes its incremental borrowing rate, determined by class of underlying asset, to discount the lease payments. The operating lease right-of-use assets also include lease payments made before commencement and exclude lease incentives. Some of the Company’s lease agreements contained renewal options; however, the Company did not recognize right-of-use assets or lease liabilities for renewal periods unless it was determined that the Company was reasonably certain of renewing the lease at inception or when a triggering event occurred. The Company’s lease agreements did not contain any material residual value guarantees or material restrictive covenants. |
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 13%, 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 Ministry of Finance and the SAT announced notice that the VAT tax rate of 16% is changed into 13% since April 4, 2019. Output VAT is reported as a deduction to revenue when incurred and amounted to RMB340,877, RMB141,441 and RMB71,148 (US$11,165) for the years ended December 31, 2019, 2020 and 2021, respectively. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded in accrued expenses and other current liabilities on the consolidated balance sheets. The Company is also subject to certain government surcharges on the VAT payable in the PRC. In the consolidated statements of comprehensive income (loss), 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. |
Comprehensive income (loss) | Comprehensive income (loss) Comprehensive income (loss) 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 (loss) includes net income (loss) and foreign currency translation adjustments, and is presented in the consolidated statements of comprehensive income(loss). |
Earnings (loss) per share | Earnings (loss) per share In accordance with ASC topic 260, Earnings per Share Diluted earnings (loss) per share is calculated by dividing net income (loss) 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 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. |
Recent accounting pronouncements | Recent accounting pronouncements The Company qualifies as an “emerging growth company” (“EGC”) pursuant to the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). An EGC 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 EGC 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. Accounting Pronouncements Issued But Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Management does not believe that any other recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Group’s financial statements |
Organization (Tables)
Organization (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization | |
Schedule of subsidiaries, VIE and primary subsidiaries of VIE | Percentage of legal ownership Date of Place of by the Entity incorporation incorporation Company Principal activities Subsidiaries Weidai HK Limited February 5, 2018 Hong Kong 100% Investment holding Weidai Co., Ltd. March 15, 2018 PRC 100% Investment holding Rymo Technology Industry Limited September 22, 2009 Hong Kong 100% Investment holding Weidai Singapore PTE. LTD. February 28, 2019 Singapore 100% Online finance marketplace business QianTang (Philippines) Lending Inc. May 31, 2019 Philippines 100% Online finance marketplace business Zhejiang Qunshuo Digital Technology Co., Ltd. August 7, 2014 PRC 100% Internet Technology Youxian Weirui Technology Co., Ltd. June 17, 2019 PRC 100% Internet Technology Shanghai Zaohui Finance Lease Co., Ltd. December 18, 2015 PRC 100% Asset Management Hangzhou Weian Finance Lease Co., Ltd. October 21, 2016 PRC 100% Asset Management Harbin Yuntuo Business Management Co., Ltd. September 17, 2020 PRC 100% Business Management VIEs Weidai (Hangzhou) Financial Information Service Ltd. December 25, 2014 PRC Nil Online finance marketplace business Yuntuo Group Co., Ltd. January 15, 2019 PRC Nil Online finance marketplace business Percentage of legal ownership Date of Place of by the Entity incorporation incorporation Company Principal activities Subsidiaries of the VIEs Qianwei (Hangzhou) Technology Co., Ltd. September 29, 2015 PRC Nil Asset Management Ruituo (Hangzhou) Internet Financial Information Services Co., Ltd. July 30, 2015 PRC Nil Asset Management Yiwu Weirui Internet Technology Co., Ltd. September 29, 2015 PRC Nil Asset Management Hangzhou Yiqitou Investment Advisory Co., Ltd. October 28, 2016 PRC Nil Consulting Liangche (Hangzhou) Internet Technology Co., Ltd. February 21, 2017 PRC Nil Internet Technology Hangzhou Yaowei Technology Co., Ltd. January 24, 2018 PRC Nil Technology development and service Hangzhou Jiujiu Financial Information Services Co., Ltd. August 25, 2015 PRC Nil Finance information service Beihai Hongri Technology Co., Ltd. August 30, 2019 PRC Nil Internet Technology Guangzhou Weirui Technology Co., Ltd September 5, 2018 PRC Nil Internet Technology Fuzhou Weidai Online Microcredit Co., Ltd. June 23, 2017 PRC Nil Micro-loan business Foshan Hongliang Investment Consulting Co., Ltd February 2, 2015 PRC Nil Business Management Youxian Qianfeng Business Management Co., Ltd. May 22, 2019 PRC Nil Business Management Hangzhou Yaohong Technology Co., Ltd. April 7, 2016 PRC Nil Internet Technology |
Schedule of consolidated balance sheets related variable interest entities | As of December 31, 2020 2021 RMB RMB US$ Current assets: Cash and cash equivalents 124,906 108,023 16,951 Restricted cash 195,940 101,383 15,909 Loans and advances, net 732,016 485,249 76,146 Prepaid expenses and other assets,net-current 291,725 69,439 10,896 Deposits 206,076 — — Amounts due from Weidai Ltd. and its wholly-owned subsidiaries 182,912 483,887 75,932 Amounts due from related parties 15,360 32,829 5,152 Total current assets 1,748,935 1,280,810 200,986 Non-current assets: Long-term investments 13,333 13,333 2,092 Prepaid expenses and other assets-non current 17,252 9,149 1,436 Property, equipment and software, net 32,281 21,231 3,332 Right-of-use assets — 21,910 3,438 Deferred tax assets 403,852 — — Total non-current assets 466,718 65,623 10,298 Total assets 2,215,653 1,346,433 211,284 Current liabilities: Payable to institutional funding partners and online investors 43,480 5,899 926 Current account with online investors and borrowers 254,175 138,683 21,762 Income tax payable 242,638 236,011 37,035 Accrued expenses and other liabilities 340,014 192,907 30,271 Amounts due to Weidai Ltd. and its wholly-owned subsidiaries 824,013 1,132,643 177,737 Amounts due to related parties 5,146 1,175 184 Operating lease liabilities-current — 5,679 891 Contract liabilities-current 163,057 58,515 9,182 Total current liabilities 1,872,523 1,771,512 277,988 Non-current liabilities: Operating lease liabilities-non current — 17,319 2,718 Contract liabilities-non current 19,237 — — Total non-current liabilities 19,237 17,319 2,718 Total liabilities 1,891,760 1,788,831 280,706 |
Schedule of consolidated statements of comprehensive income related variable interest entities | Year ended December 31, 2019 2020 2021 RMB RMB RMB US$ Net revenues 2,709,562 1,426,605 648,270 101,728 Net income/(loss) 27,298 (625,353) (1,090,282) (171,089) |
Schedule of consolidated statements of cash flows related variable interest entities | Year ended December 31, 2019 2020 2021 RMB RMB RMB US$ Net cash provided by/(used in) operating activities 584,053 (1,557,785) (795,178) (124,780) Net cash used in investing activities (913,760) 24,048 (30,798) (4,833) Net cash (used in)/provided by financing activities (1,029,213) 174,273 714,536 112,126 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies | |
Schedule of estimated useful lives of assets | 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 % |
Schedule of other revenues in consolidated statements of comprehensive income | Year Ended Year Ended Year Ended December 31, December 31, December 31, 2019 2020 2021 RMB RMB RMB US$ Late payment penalties 102,910 96,224 9,163 1,437 Others 170,523 1,559 990 156 Total 273,433 97,783 10,153 1,593 |
Loans and advances, net (Tables
Loans and advances, net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Loans and advances, net | |
Schedule of loans and advances | Loans and advances originated and retained by the Company consist of the following: As of December 31 2020 2021 RMB RMB US$ Current portion: Loans receivable (i) Auto-backed loans 39,253 30,149 4,731 Other secured loans 28,740 5,901 926 Unsecured loans 22,353 17,408 2,732 Other loan receivable (ii) — 663,140 104,061 Sub-total 90,346 716,598 112,450 Acquired non-performing loans (iii) Auto-backed loans 1,762,686 1,314,696 206,304 Other secured loans 385,575 377,270 59,202 Unsecured loans 7,595 — — Sub-total 2,155,856 1,691,966 265,506 Total current loans and advances 2,246,202 2,408,564 377,956 Allowance for loans and advances (1,514,186) (1,923,315) (301,810) Loans and advances, net 732,016 485,249 76,146 (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% ; (iii) Other loan receivable represent the amount of the Company's cash being retained in the special account. The Company reclassified the Deposit balance to Other loan receivable when the local government closed the “special account”. See Note 6 for further discussion. (iii) Acquired non-performing loans are overdue loans purchased by the Company from online investors and institutional funding partners; |
Schedule of allowance for loans and advances | Loans receivable Acquired non-performing loans Auto- Other Auto- Other backed secured Unsecured backed secured Unsecured 2019 loans loans loans loans loans loans Total RMB RMB RMB RMB RMB RMB RMB Beginning balance (13,013) (5,340) (60,409) (467,774) (38,701) (185,113) (770,350) Current year provision 9,803 2,447 34,844 (790,565) (42,696) (453,795) (1,239,962) Recoveries of loans previously written off — — — (33,587) (1,180) (340) (35,107) Write-offs — — — 388,541 3,979 385,878 778,398 Deregistration of subsidiary — — — — — 7,396 7,396 Ending balance (3,210) (2,893) (25,565) (903,385) (78,598) (245,974) (1,259,625) Loans receivable Acquired non-performing loans Auto- Other Auto- Other backed secured Unsecured backed secured Unsecured 2020 loans loans loans loans loans loans Total RMB RMB RMB RMB RMB RMB RMB Beginning balance (3,210) (2,893) (25,565) (903,385) (78,598) (245,974) (1,259,625) Current year provision 591 975 3,212 (265,167) (204,196) (339,151) (803,736) Recoveries of loans previously written off — — — (52,931) (164) (1,386) (54,481) Write-offs — — — 22,857 1,883 578,916 603,656 Deregistration of subsidiary — — — — — — — Ending balance (2,619) (1,918) (22,353) (1,198,626) (281,075) (7,595) (1,514,186) Loans receivable Acquired non-performing loans Auto- Other Auto- Other backed secured Unsecured Other loan backed secured Unsecured 2021 loans loans loans receivable loans loans loans Total RMB RMB RMB RMB RMB RMB RMB Beginning balance (2,619) (1,918) (22,353) — (1,198,626) (281,075) (7,595) (1,514,186) Current year provision (19,713) (121) 4,945 (339,967) (367,488) (85,594) 657 (807,281) Recoveries of loans previously written off — — — — (26,448) (16) (279) (26,743) Write-offs — — — — 409,334 8,344 7,217 424,895 Ending balance (22,332) (2,039) (17,408) (339,967) (1,183,228) (358,341) — (1,923,315) |
Prepaid expenses and other as_2
Prepaid expenses and other assets, net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Prepaid expenses and other assets, net | |
Schedule of prepaid expenses and other assets, net | As of December 31, 2020 2021 RMB RMB US$ Current: Guarantee deposits (i) 100,609 29,953 4,700 Partner-operated service centers receivable 86,418 105,024 16,481 Prepaid rental and deposits 24,185 15,088 2,368 Prepayment for global position system 20,140 6,851 1,075 Deductible input VAT 17,693 17,106 2,684 Financial asset receivable 17,726 3,784 594 Amounts due from third-party payment platforms (ii) 9,454 3,645 572 Others 92,349 56,310 8,836 Total, gross 368,574 237,761 37,310 Bad debt provision(iii) (66,313) (124,009) (19,460) Total, net 302,261 113,752 17,850 Non-current: Prepaid rental and deposits 14,515 8,572 1,345 Others 4,099 632 99 Total 18,614 9,204 1,444 (i) Guarantee deposits are mainly deposits paid to institutional funding partners for cooperation with these funding partners. (ii) Amount due from third-party payment platforms are mainly restricted cash held by third-party payment platform that belong to the borrowers and online investors as of December 31, 2020 and 2021. (iii) During the years ended December 31, 2019, 2020 and 2021, the Company recorded bad debt provision of RMB 15,090, RMB59,844, and RMB57,696(US$9,054) in the General and administrative expense, respectively . |
Property and equipment and so_2
Property and equipment and software, net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property and equipment and software, net | |
Schedule of property, equipment and software, net | As of December 31, 2020 2021 RMB RMB US$ Computer and electronic equipment 49,480 44,481 6,980 Leasehold improvement 63,634 67,338 10,567 Vehicles 9,373 1,674 263 Office furniture and equipment 2,471 2,491 391 Software 24,240 24,245 3,805 Total 149,198 140,229 22,006 Less: Accumulated depreciation and amortization (111,526) (111,355) (17,475) Property, equipment and software, net 37,672 28,874 4,531 |
Payable to institutional fund_2
Payable to institutional funding partners and online investors (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payable to institutional funding partners and online investors | |
Schedule of payable to institutional funding partners and online investors | Fixed annual Rate As of December 31, (%) Term 2020 2021 RMB RMB US$ Current: Institutional funding partners 3% to 11% 7 to 12 months 39,253 5,899 926 Online investors 3% to 11% 2 to 12 months 4,227 — — Total 43,480 5,899 926 |
Current account with online i_2
Current account with online investors and borrowers (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Current account with online investors and borrowers. | |
Schedule of current account with online investors and borrowers | As of December 31, 2020 2021 RMB RMB US$ Investor deposits 54,893 38,166 5,989 Undrawn borrower funds and deposits 199,282 100,517 15,773 Total 254,175 138,683 21,762 |
Accrued expenses and other li_2
Accrued expenses and other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accrued expenses and other liabilities | |
Schedule of accrued expenses and other liabilities | As of December 31, 2020 2021 RMB RMB US$ Guarantee liabilities 146,183 83,880 13,163 Payroll and welfare payable 87,109 70,788 11,108 Payable to advancing service providers 8,716 54,832 8,604 Accrued operation and other expense 19,427 18,333 2,877 Payable to investors of P2P loan business — 12,878 2,021 Other taxes payable 24,536 10,358 1,625 Accrued marketing expense 19,245 10,028 1,574 Prepaid service fee 8,333 8,333 1,308 Others 52,471 31,650 4,966 Total 366,020 301,080 47,246 |
Interest income (expense) and_2
Interest income (expense) and foreign currency exchange gain (loss), net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Interest income/(expense) and foreign currency exchange gain/(loss), net | |
Schedule of interest Interest income (expense) and foreign currency exchange gain (loss), net | Year Ended December 31, 2019 2020 2021 RMB RMB RMB US$ Interest income 42,013 19,445 6,716 1,054 Bank charges (3,491) (493) (317) (50) Exchange gains/(loss) 1,094 (19,041) (6,265) (983) Interest income/(expense) and foreign currency exchange gain/(loss), net 39,616 (89) 134 21 |
Lease (Tables)
Lease (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Lease | |
Schedule of comprehensive income (loss) | The Company leases office spaces under non-cancellable operating leases. A summary of lease cost recognized in the Company’s combined statements of comprehensive income (loss) is as follows: Year Ended December 31, 2021 RMB US$ Operating leases cost excluding short-term rental expense 4,142 650 Short-term lease cost 21,628 3,394 Total 25,770 4,044 |
Schedule of supplemental information related to operating leases | A summary of supplemental information related to operating leases is as follows: Year Ended December 31, 2021 RMB US$ Cash paid for amounts included in the measurement of lease liabilities 4,710 739 Weighted average remaining lease term (in years) 3.2 Weighted average discount rate. 4.75 % |
Schedule of maturity of lease liabilities under operating leases | The following table summarizes the maturity of lease liabilities under operating leases as of December 31, 2021: For the Year Ending December 31, RMB US$ 2022 6,567 1,031 2023 6,903 1,083 2024 7,281 1,143 2025 3,192 501 2026 926 145 Total lease payments 24,869 3,903 Less: imputed interest (1,871) (294) Total 22,998 3,609 Less: current portion 5,679 891 Non-current portion 17,319 2,718 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes | |
Schedule of current and deferred components of income tax expenses | Year ended December 31, 2019 2020 2021 RMB RMB RMB US$ Current income tax 365,293 45,249 2 1 Deferred income tax (260,050) 271,237 403,852 63,373 Total income tax expenses 105,243 316,486 403,854 63,374 |
Schedule of components of the deferred tax assets | As of December 31, 2020 2021 RMB RMB US$ Deferred tax assets Allowance for loans and advances 613,056 722,633 113,397 Net operating loss carry forwards 70,220 145,472 22,828 Accruals for share-based compensation 42,636 42,636 6,691 Accruals for payroll and other costs 13,589 13,594 2,133 Accruals for other liabilities 30,558 49,587 7,781 Contract liabilities 36,469 12,829 2,013 Lease liabilities — 4,531 711 Less: valuation allowance (402,676) (986,982) (154,879) Balance at the end of the year 403,852 4,300 675 Deferred tax liabilities Right-of-use assets — (4,300) (675) Balance at the end of the year — (4,300) (675) Deferred tax assets, net 403,852 — — |
Schedule of differences between the PRC statutory tax rate and the company's effective tax rate | Year ended December 31, 2019 2020 2021 RMB RMB RMB US$ Income/(loss) before provision of income tax 368,485 (397,857) (740,190) (116,152) PRC statutory income tax rate 25 % 25 % 25 % 25 % Income tax computed at statutory tax rate 92,121 (99,465) (185,047) (29,038) Difference on tax rate (18,427) 8,803 4,898 769 Research and development super-deduction (13,919) (5,646) (4,161) (653) Non-deductible/non-taxable items 34,168 23,148 3,858 605 Changes in valuation allowance 11,300 389,646 584,306 91,691 Income tax expenses 105,243 316,486 403,854 63,374 |
Summary of unrecognized tax benefits | Year ended December 31, 2019 2020 2021 RMB RMB RMB US$ Balance at January 1 — 215,531 434,439 68,173 Additions based on tax positions related to current year 215,531 218,908 184,472 28,948 Balance at December 31 215,531 434,439 618,911 97,121 |
Related party balances and tr_2
Related party balances and transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related party balances and transactions | |
Schedule of related party transactions | Year ended December 31, 2019 2020 2021 RMB RMB RMB US$ Loan service fee from: Key management and their immediate family members 274 20 — — Hangzhou Ruituo Technology Co., Ltd. 32 — — — Total 306 20 — — Origination and servicing expenses: Chunan Wanglan Financial Information Advisory Services Partnership (GP) 1,729 — — — Chunan Wenjun Financial Information Advisory Services Partnership (GP) 6,927 4,365 1,936 304 Chunan Wenkang Financial Information Advisory Services Partnership (GP) 4,518 1,774 557 87 Chunan Wenhai Financial Information Advisory Services Partnership (GP) 3,518 1,095 1,111 174 Chunan Wenbing Financial Information Advisory Services Partnership (GP) 6,228 2,505 793 124 Chunan Wenlin Financial Information Advisory Services Partnership (GP) 4,693 2,231 688 108 Chunan Wenrong Financial Information Advisory Services Partnership (GP) 5,902 3,347 1,091 171 Chunan Wenshe Financial Information Advisory Services Partnership (GP) — (569) 229 36 Chunan Wenbei Financial Information Advisory Services Partnership (GP) 6,900 2,844 1,026 161 Chunan Wensheng Financial Information Advisory Services Partnership (GP) 6,509 2,339 1,122 176 Chunan Wenyang Financial Information Advisory Services Partnership (GP) 1,709 367 408 64 Chunan Wangxia Financial Information Advisory Services Partnership (GP) 3,027 590 426 67 Chunan Wanglin Financial Information Advisory Services Partnership (GP) 6,900 3,507 2,667 419 Chunan Wangqi Financial Information Advisory Services Partnership (GP) 4,250 1,166 108 17 Chunan Wangqun Financial Information Advisory Services Partnership (GP) 9,255 3,033 3,017 473 Chunan Yunxiu Financial Information Advisory Services Partnership (GP) 943 428 169 27 Total 73,008 29,022 15,348 2,408 c) The Company had the following related party balances: |
Schedule of due from related parties | As of December 31, 2020 2021 RMB RMB US$ Hangzhou Ruituo Technology Co., Ltd. (i) 6,358 28,345 4,448 Zhejiang Ruituo Non-financing Guarantee Co., Ltd. 2,794 2,677 420 PT PENDANAAN GOTONG ROYONG 1,065 — — Others 5,143 1,807 284 Total 15,360 32,829 5,152 (i) The balance mainly represents loans provided to Hangzhou Ruituo Technology Co., Ltd. and receivable from the disposal of vehicle collaterals for overdue loans as of December 31, 2020 and 2021. |
Schedule of due to related parties | As of December 31, 2020 2021 RMB RMB US$ Hangzhou Ruituo Technology Co., Ltd. (ii) 483 708 111 Key management and their immediate family members (ii) 3,092 — — Mr. Hong Yao (ii) 700 7 1 Other related service center operation partners — 384 61 Others 871 76 11 Total 5,146 1,175 184 (ii) The balance mainly represents investment balance due to related parties who are also investors on the platform. |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Restricted Shares activity | Weighted average grant-date fair Number of shares value Outstanding, December 31, 2020 739,026 313.88 Forfeited (15,341) 43.01 Outstanding, December 31, 2021 723,685 319.62 |
Schedule of Options activity | Weighted average grant-date fair Number of options value Outstanding, December 31, 2020 873,695 122.07 Forfeited (49,054) 36.79 Outstanding, December 31, 2021 824,641 127.15 |
Schedule of allocated share-based compensation expenses | Year ended December 31, 2019 2020 2021 RMB RMB RMB US$ Origination and servicing 21,279 346 4,033 633 General and administrative 35,162 8,717 5,115 803 Research and development 8,355 (2,970) 1,110 174 Total 64,796 6,093 10,258 1,610 |
Parent company only condensed_2
Parent company only condensed financial information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Parent company only condensed financial information | |
Summary of condensed balance sheets | Condensed balance sheets As of December 31, 2020 2021 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 177,920 10,846 1,702 Short-term investments — 158,565 24,882 Prepaid expenses and other assets 2,057 403 63 Amounts due from subsidiaries and consolidated VIEs 82,667 85,434 13,407 Total current assets 262,644 255,248 40,054 Non-current assets: Investments in subsidiaries and VIEs 1,302,576 179,635 28,189 Total non-current assets 1,302,576 179,635 28,189 TOTAL ASSETS 1,565,220 434,883 68,243 LIABILITIES AND EQUITY Current liabilities Accrued expenses and other liabilities — 71 11 Amounts due from subsidiaries and consolidated VIEs 134 134 22 Total current liabilities 134 205 33 Total liabilities 134 205 33 Shareholders’ equity: Class A ordinary shares (par value of US$0.000002 per share; and 35,390,055 and 35,390,055 shares issued outstanding — — — Class B ordinary shares (par value of US$0.000002 per share; 35,071,400 and 35,071,400 shares issued and outstanding as of December 31, 2020 and 2021, respectively) 1 1 — Additional paid-in capital 1,241,845 1,252,103 196,482 Accumulated other comprehensive loss (2,510) (2,510) (394) Retained earnings (accumulated deficit) 325,750 (814,916) (127,878) Total Weidai Ltd. shareholder’s equity 1,565,086 434,678 68,210 TOTAL LIABILITIES AND EQUITY 1,565,220 434,883 68,243 |
Summary of statements of operations | Condensed statements of operations Year ended December 31, 2019 2020 2021 RMB RMB RMB US$ Other revenues — 1,020 1,466 230 Total net revenues — 1,020 1,466 230 Sales and marketing (488) (209) — — General and administrative (6,765) (5,791) (4,806) (754) Total operating costs and expenses (7,253) (6,000) (4,806) (754) Income/(loss) from operations (7,253) (4,980) (3,340) (524) Interest income/(expense) and foreign currency exchange gain/(loss), net 9,654 (8,696) (2,533) (397) Other income, net (4) Net income/(loss) before equity in losses of subsidiaries and consolidated VIEs and VIEs’ subsidiaries 2,397 (13,676) (5,873) (921) Equity in losses of subsidiaries and consolidated VIEs and VIEs’ subsidiaries 251,213 (698,897) (1,134,793) (178,074) Net income/(loss) 253,610 (712,573) (1,140,666) (178,995) Foreign currency translation adjustment 190 — — — Comprehensive income/(loss) 253,800 (712,573) (1,140,666) (178,995) |
Summary of statements of cash flows | Condensed statements of cash flows Year ended December 31, 2019 2020 2021 RMB RMB RMB US$ Net cash provided by/(used in) operating activities 10,228 (13,583) (7,880) (1,237) Net cash used in investing activities (12,366) (66,156) (159,194) (24,981) Net cash used in financing activities (15,167) — — — Net decrease in cash and cash equivalents (17,305) (79,739) (167,074) (26,218) Cash and cash equivalents and restricted cash at the beginning of the year 274,964 257,659 177,920 27,920 Cash and cash equivalents and restricted cash at the end of the year 257,659 177,920 10,846 1,702 |
Organization (Details)
Organization (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Entity Incorporation, State or Country Code | E9 |
Yuntuo Group Co., Ltd. | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Date of incorporation | Jan. 15, 2019 |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Online finance marketplace business |
Weidai HK Limited | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Date of incorporation | Feb. 5, 2018 |
Percentage of legal ownership by the Company | 100.00% |
Principal activities | Investment holding |
Weidai Co., Ltd. | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Date of incorporation | Mar. 15, 2018 |
Percentage of legal ownership by the Company | 100.00% |
Principal activities | Investment holding |
Rymo Technology Industry Limited | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Date of incorporation | Sep. 22, 2009 |
Percentage of legal ownership by the Company | 100.00% |
Principal activities | Investment holding |
Weidai Singapore PTE. LTD. | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Date of incorporation | Feb. 28, 2019 |
Percentage of legal ownership by the Company | 100.00% |
Principal activities | Online finance marketplace business |
QianTang (Philippines) Lending Inc. | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Date of incorporation | May 31, 2019 |
Percentage of legal ownership by the Company | 100.00% |
Principal activities | Online finance marketplace business |
Zhejiang Qunshuo Digital Technology Co., Ltd. | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Date of incorporation | Aug. 7, 2014 |
Percentage of legal ownership by the Company | 100.00% |
Principal activities | Internet Technology |
Youxian Weirui Technology Co., Ltd. | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Date of incorporation | Jun. 17, 2019 |
Percentage of legal ownership by the Company | 100.00% |
Principal activities | Internet Technology |
Shanghai Zaohui Finance Lease Co., Ltd. | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Date of incorporation | Dec. 18, 2015 |
Percentage of legal ownership by the Company | 100.00% |
Principal activities | Asset Management |
Hangzhou Weian Finance Lease Co., Ltd. | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Date of incorporation | Oct. 21, 2016 |
Percentage of legal ownership by the Company | 100.00% |
Principal activities | Asset Management |
Qianwei (Hangzhou) Technology Co., Ltd. | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Date of incorporation | Sep. 29, 2015 |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Asset Management |
Ruituo (Hangzhou) Internet Financial Information Services Co., Ltd. | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Date of incorporation | Jul. 30, 2015 |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Asset Management |
Yiwu Weirui Internet Technology Co., Ltd. | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Date of incorporation | Sep. 29, 2015 |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Asset Management |
Hangzhou Yiqitou Investment Advisory Co., Ltd. | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Date of incorporation | Oct. 28, 2016 |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Consulting |
Liangche (Hangzhou) Internet Technology Co., Ltd. | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Date of incorporation | Feb. 21, 2017 |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Internet Technology |
Hangzhou Yaowei Technology Co., Ltd. | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Date of incorporation | Jan. 24, 2018 |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Technology development and service |
Hangzhou Jiujiu Financial Information Services Co., Ltd. | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Date of incorporation | Aug. 25, 2015 |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Finance information service |
Beihai Hongri Technology Co., Ltd [Member] | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Date of incorporation | Aug. 30, 2019 |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Internet Technology |
Beijing Jiyun Technology Co., Ltd [Member] | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Date of incorporation | Sep. 5, 2018 |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Internet Technology |
Fuzhou Weidai Online Microcredit Co., Ltd. | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Date of incorporation | Jun. 23, 2017 |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Micro-loan business |
Youxian Qianfeng Business Management Co., Ltd. | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Date of incorporation | May 22, 2019 |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Business Management |
Hangzhou Yaohong Technology Co., Ltd. | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Date of incorporation | Apr. 7, 2016 |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Internet Technology |
VIE | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Date of incorporation | Dec. 25, 2014 |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Online finance marketplace business |
Harbin Yuntuo Business Management Co., Ltd | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Date of incorporation | Sep. 17, 2020 |
Percentage of legal ownership by the Company | 100.00% |
Principal activities | Business Management |
Foshan Hongliang Investment Consulting Co., Ltd | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Date of incorporation | Feb. 2, 2015 |
Percentage of legal ownership by the Company | 0.00% |
Principal activities | Business Management |
Organization (Details 1)
Organization (Details 1) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
Current assets: | ||||
Cash and cash equivalents | ¥ 234,568 | $ 36,809 | ¥ 409,498 | ¥ 1,075,557 |
Restricted cash | 101,383 | 15,909 | 195,940 | ¥ 1,140,819 |
Loans and advances, net | 485,249 | 76,146 | 732,016 | |
Prepaid expenses and other assets, net -current | 113,752 | 17,850 | 302,261 | |
Deposits | 534,058 | |||
Amounts due from related parties | 32,829 | 5,152 | 15,360 | |
Total current assets | 1,126,346 | 176,748 | 2,189,133 | |
Non-current assets: | ||||
Long-term investments | 13,333 | 2,092 | 13,574 | |
Prepaid expenses and other assets-non current | 9,204 | 1,444 | 18,614 | |
Property, equipment and software, net | 28,874 | 4,531 | 37,672 | |
Right-of-use assets | 21,910 | 3,438 | 0 | |
Deferred tax assets | 403,852 | |||
Total non-current assets | 73,321 | 11,505 | 473,712 | |
Total assets | 1,199,667 | 188,253 | 2,662,845 | |
Current liabilities: | ||||
Short-term borrowings | 5,899 | 926 | 43,480 | |
Payable to institutional funding partners and online investors | 5,899 | 926 | 43,480 | |
Current account with online investors and borrowers | 138,683 | 21,762 | 254,175 | |
Income tax payable | 236,011 | 37,035 | 242,638 | |
Accrued expenses and other liabilities | 301,080 | 47,246 | 366,020 | |
Amounts due to related parties | 1,175 | 184 | 5,146 | |
Operating lease liabilities-current | 5,679 | 891 | ||
Contract liabilities-current | 58,515 | 9,182 | 163,057 | |
Total current liabilities | 747,042 | 117,226 | 1,074,516 | |
Non-current liabilities: | ||||
Operating lease liabilities-non current | 17,319 | 2,718 | ||
Contract liabilities-non current | 19,237 | |||
Total non-current liabilities | 17,319 | 2,718 | 19,237 | |
Total liabilities | 764,361 | 119,944 | 1,093,753 | |
VIE | ||||
Current liabilities: | ||||
Total current liabilities | 638,869 | 100,251 | 1,048,510 | |
Non-current liabilities: | ||||
Total non-current liabilities | 17,319 | 2,718 | 19,237 | |
VIEs | ||||
Current assets: | ||||
Cash and cash equivalents | 108,023 | 16,951 | 124,906 | |
Restricted cash | 101,383 | 15,909 | 195,940 | |
Loans and advances, net | 485,249 | 76,146 | 732,016 | |
Prepaid expenses and other assets, net -current | 69,439 | 10,896 | 291,725 | |
Deposits | 206,076 | |||
Amounts due from Weidai Ltd. and its wholly-owned subsidiaries | 483,887 | 75,932 | 182,912 | |
Amounts due from related parties | 32,829 | 5,152 | 15,360 | |
Total current assets | 1,280,810 | 200,986 | 1,748,935 | |
Non-current assets: | ||||
Long-term investments | 13,333 | 2,092 | 13,333 | |
Prepaid expenses and other assets-non current | 9,149 | 1,436 | 17,252 | |
Property, equipment and software, net | 21,231 | 3,332 | 32,281 | |
Right-of-use assets | 21,910 | 3,438 | ||
Deferred tax assets | 403,852 | |||
Total non-current assets | 65,623 | 10,298 | 466,718 | |
Total assets | 1,346,433 | 211,284 | 2,215,653 | |
VIEs | VIE | ||||
Current liabilities: | ||||
Payable to institutional funding partners and online investors | 5,899 | 926 | 43,480 | |
Current account with online investors and borrowers | 138,683 | 21,762 | 254,175 | |
Income tax payable | 236,011 | 37,035 | 242,638 | |
Accrued expenses and other liabilities | 192,907 | 30,271 | 340,014 | |
Amounts due to Weidai Ltd. and its wholly-owned subsidiaries | 1,132,643 | 177,737 | 824,013 | |
Amounts due to related parties | 1,175 | 184 | 5,146 | |
Operating lease liabilities-current | 5,679 | 891 | ||
Contract liabilities-current | 58,515 | 9,182 | 163,057 | |
Total current liabilities | 1,771,512 | 277,988 | 1,872,523 | |
Non-current liabilities: | ||||
Operating lease liabilities-non current | 17,319 | 2,718 | ||
Contract liabilities-non current | 19,237 | |||
Total non-current liabilities | 17,319 | 2,718 | 19,237 | |
Total liabilities | ¥ 1,788,831 | $ 280,706 | ¥ 1,891,760 |
Organization (Details 2)
Organization (Details 2) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Organization | ||||
Net income/(loss) | ¥ (1,144,044) | $ (179,525) | ¥ (714,343) | ¥ 263,242 |
VIEs | ||||
Organization | ||||
Net revenues | 648,270 | 101,728 | 1,426,605 | 2,709,562 |
Net income/(loss) | ¥ (1,090,282) | $ (171,089) | ¥ (625,353) | ¥ 27,298 |
Organization (Details 3)
Organization (Details 3) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Organization | ||||
Net cash provided by/(used in) operating activities | ¥ (42,543) | $ (6,676) | ¥ (1,336,897) | ¥ 887,112 |
Net cash used in investing activities | (189,363) | (29,715) | 24,048 | (922,049) |
Net cash (used in)/provided by financing activities | (37,581) | (5,897) | (298,089) | (1,130,093) |
VIEs | ||||
Organization | ||||
Net cash provided by/(used in) operating activities | (795,178) | (124,780) | (1,557,785) | 584,053 |
Net cash used in investing activities | (30,798) | (4,833) | 24,048 | (913,760) |
Net cash (used in)/provided by financing activities | ¥ 714,536 | $ 112,126 | ¥ 174,273 | ¥ (1,029,213) |
Organization (Detail Textuals)
Organization (Detail Textuals) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Apr. 10, 2018shares | |
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Percentage of net income as basis for technical support and consulting services fees | 100.00% | |||
VIE | ||||
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Net assets (liabilities) | ¥ (442,398) | $ (69,422) | ¥ 323,893 | |
IPO | Yaoh Wdai Ltd [Member] | Common Stock | ||||
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Common Stock, Shares, Issued | 48,392,050 | |||
IPO | VIE | Series A | ||||
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Other ordinary shareholders of the VIE | 9,146,250 | |||
IPO | VIE | Series A+ | ||||
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Other ordinary shareholders of the VIE | 1,829,250 | |||
IPO | VIE | Series B | ||||
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Other ordinary shareholders of the VIE | 3,048,800 | |||
IPO | VIE | Series C | ||||
Organization, Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Other ordinary shareholders of the VIE | 3,074,400 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) | Dec. 31, 2021 |
Loans receivable | Over 180 days past due | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Percentage of unsecured loan past due | 100.00% |
Acquired non-performing loans | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Loss rate of unsecured loans | 100.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details 1) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | |
Assets | |||||
Deferred tax assets | ¥ 403,852 | ||||
Shareholders' equity | |||||
Retained earnings (accumulated deficit) | ¥ (814,916) | 325,750 | $ (127,878) | ||
Loan service fee | |||||
Impact to the consolidated statement of comprehensive income | |||||
Services and other revenue | ¥ 698,840 | $ 109,663 | ¥ 1,411,061 | ¥ 2,955,050 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details 3) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Customer incentives | |||
Cash incentives revenue reduction | ¥ 0 | ¥ 86,259 | ¥ 359,568 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Details 4) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | ¥ 10,153 | $ 1,593 | ¥ 97,783 | ¥ 273,433 |
Late payment penalties | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 9,163 | 1,437 | 96,224 | 102,910 |
Others | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | ¥ 990 | $ 156 | ¥ 1,559 | ¥ 170,523 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Detail Textuals) $ in Thousands | Apr. 04, 2019 | May 01, 2018 | Dec. 31, 2021CNY (¥)segment | Dec. 31, 2021USD ($)segment | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) |
Foreign exchange rate per US$1.00 | 6.3726 | 6.3726 | |||||
Cash and cash equivalents | ¥ 234,568,000 | ¥ 409,498,000 | ¥ 1,075,557,000 | $ 36,809 | |||
Amount of restricted cash related to cash not yet disbursed | 70,114,000 | 138,681,000 | 11,002 | ||||
Amount of cash held by banks as guarantee deposits paid on contracts and other restrictions | 3,998,000 | 26,155,000 | 627 | ||||
Cash judicial frozen | 27,271,000 | 31,104,000 | 4,279 | ||||
Maximum potential undiscounted future payment to make under guarantee obligation | 186,204,000 | 1,143,835,000 | 29,219 | ||||
Provision for financial guarantee liabilities | 76,115,000 | $ 11,944 | 103,027,000 | 19,206,000 | |||
Impairment loss | 241,000 | 38 | 0 | 0 | |||
Research and development costs | 0 | 0 | 0 | ||||
Research and development | 22,193,000 | 3,483 | 27,144,000 | 81,664,000 | |||
Revenue recognized that was included in contract liabilities at the beginning | 94,791,000 | 14,875 | |||||
Advertising costs | 813,000 | 128 | 1,711,000 | 54,167,000 | |||
Amount of expenses for employee benefits | ¥ 19,634,000 | $ 3,081 | 51,841,000 | 107,754,000 | |||
Number of Reportable Segments | 1 | 1 | |||||
Impairment of Goodwill | ¥ 0 | 5,812,000 | 0 | ||||
Percentage of VAT - first rate | 13.00% | 13.00% | |||||
Percentage of VAT - second rate | 16.00% | 13.00% | 6.00% | 6.00% | |||
Percentage of VAT - third rate | 3.00% | 3.00% | |||||
Amount of VAT paid | ¥ 71,148,000 | $ 11,165 | 141,441,000 | 340,877,000 | |||
PRC | |||||||
Cash and cash equivalents | 216,870,000 | 226,754,000 | $ 34,031 | ||||
Goodwill [Member] | |||||||
Impairment loss | 0 | 0 | 0 | ||||
Level 1 | |||||||
Fair value hierarchy | 0 | 0 | 0 | ||||
Adjustments due to ASC 606 | |||||||
Cash incentives accounted for as reduction of loan payables | ¥ 0 | ¥ 0 | ¥ 0 |
Concentration of risks (Details
Concentration of risks (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Concentration of risks | |||
Description of individual borrowings for revenue and loan and advances | 10% or more | 10% or more | 10% or more |
Percentage of appreciation in foreign currency | 2.30% | 6.30% | |
Percentage of depreciation in foreign currency | 1.30% |
Loans and advances, net (Detail
Loans and advances, net (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | |
Current portion: | ||||
Total current loans and advances | ¥ 2,408,564 | $ 377,956 | ¥ 2,246,202 | |
Allowance for loans and advances | (1,923,315) | (301,810) | (1,514,186) | |
Loans and advances, net | 485,249 | 76,146 | 732,016 | |
Loans receivable | ||||
Current portion: | ||||
Total current loans and advances | [1] | 716,598 | 112,450 | 90,346 |
Loans receivable | Auto-backed loans | ||||
Current portion: | ||||
Total current loans and advances | [1] | 30,149 | 4,731 | 39,253 |
Loans receivable | Other secured loans | ||||
Current portion: | ||||
Total current loans and advances | [1] | 5,901 | 926 | 28,740 |
Loans receivable | Unsecured loans | ||||
Current portion: | ||||
Total current loans and advances | [1] | 17,408 | 2,732 | 22,353 |
Loans receivable | Other loan receivable | ||||
Current portion: | ||||
Total current loans and advances | [2] | 663,140 | 104,061 | |
Acquired non-performing loans | ||||
Current portion: | ||||
Total current loans and advances | [3] | 1,691,966 | 265,506 | 2,155,856 |
Acquired non-performing loans | Auto-backed loans | ||||
Current portion: | ||||
Total current loans and advances | [3] | 1,314,696 | 206,304 | 1,762,686 |
Acquired non-performing loans | Other secured loans | ||||
Current portion: | ||||
Total current loans and advances | [3] | ¥ 377,270 | $ 59,202 | 385,575 |
Acquired non-performing loans | Unsecured loans | ||||
Current portion: | ||||
Total current loans and advances | [3] | ¥ 7,595 | ||
[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] | Other loan receivable represent the amount of the Company's cash being retained in the special account. The Company reclassified the Deposit balance to Other loan receivable when the local government closed the “special account”. See Note 6 for further discussion. | |||
[3] | Acquired non-performing loans are overdue loans purchased by the Company from online investors and institutional funding partners; |
Loans and advances, net - Addit
Loans and advances, net - Additional information (Details) | 12 Months Ended |
Dec. 31, 2021 | |
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 - Allow
Loans and advances, net - Allowance for loans and advances (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for loans and advances | |||
Beginning balance | ¥ (1,514,186) | ¥ (1,259,625) | ¥ (770,350) |
Current year provision | (807,281) | (803,736) | (1,239,962) |
Recoveries of loans previously written off | (26,743) | (54,481) | (35,107) |
Write-offs | 424,895 | 603,656 | 778,398 |
Deregistration of subsidiary | 7,396 | ||
Ending balance | (1,923,315) | (1,514,186) | (1,259,625) |
Loans receivable | Auto-backed loans | |||
Allowance for loans and advances | |||
Beginning balance | (2,619) | (3,210) | (13,013) |
Current year provision | (19,713) | 591 | 9,803 |
Recoveries of loans previously written off | 0 | 0 | 0 |
Write-offs | 0 | 0 | 0 |
Deregistration of subsidiary | 0 | 0 | |
Ending balance | (22,332) | (2,619) | (3,210) |
Loans receivable | Other secured loans | |||
Allowance for loans and advances | |||
Beginning balance | (1,918) | (2,893) | (5,340) |
Current year provision | (121) | 975 | 2,447 |
Recoveries of loans previously written off | 0 | 0 | 0 |
Write-offs | 0 | 0 | 0 |
Deregistration of subsidiary | 0 | 0 | |
Ending balance | (2,039) | (1,918) | (2,893) |
Loans receivable | Unsecured loans | |||
Allowance for loans and advances | |||
Beginning balance | (22,353) | (25,565) | (60,409) |
Current year provision | 4,945 | 3,212 | 34,844 |
Recoveries of loans previously written off | 0 | 0 | 0 |
Write-offs | 0 | 0 | 0 |
Deregistration of subsidiary | 0 | 0 | |
Ending balance | (17,408) | (22,353) | (25,565) |
Loans receivable | Other loan receivable | |||
Allowance for loans and advances | |||
Current year provision | (339,967) | ||
Ending balance | (339,967) | ||
Acquired non-performing loans | Auto-backed loans | |||
Allowance for loans and advances | |||
Beginning balance | (1,198,626) | (903,385) | (467,774) |
Current year provision | (367,488) | (265,167) | (790,565) |
Recoveries of loans previously written off | (26,448) | (52,931) | (33,587) |
Write-offs | 409,334 | 22,857 | 388,541 |
Ending balance | (1,183,228) | (1,198,626) | (903,385) |
Acquired non-performing loans | Other secured loans | |||
Allowance for loans and advances | |||
Beginning balance | (281,075) | (78,598) | (38,701) |
Current year provision | (85,594) | (204,196) | (42,696) |
Recoveries of loans previously written off | (16) | (164) | (1,180) |
Write-offs | 8,344 | 1,883 | 3,979 |
Deregistration of subsidiary | 0 | ||
Ending balance | (358,341) | (281,075) | (78,598) |
Acquired non-performing loans | Unsecured loans | |||
Allowance for loans and advances | |||
Beginning balance | (7,595) | (245,974) | (185,113) |
Current year provision | 657 | (339,151) | (453,795) |
Recoveries of loans previously written off | (279) | (1,386) | (340) |
Write-offs | 7,217 | 578,916 | 385,878 |
Deregistration of subsidiary | 7,396 | ||
Ending balance | ¥ 0 | ¥ (7,595) | ¥ (245,974) |
Prepaid expenses and other as_3
Prepaid expenses and other assets, net (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | |
Current: | ||||
Guarantee deposits (i) | [1] | ¥ 29,953 | $ 4,700 | ¥ 100,609 |
Partner-operated service centers receivable | 105,024 | 16,481 | 86,418 | |
Prepaid rental and deposits | 15,088 | 2,368 | 24,185 | |
Prepayment for global position system | 6,851 | 1,075 | 20,140 | |
Deductible input VAT | 17,106 | 2,684 | 17,693 | |
Financial asset receivable | 3,784 | 594 | 17,726 | |
Amounts due from third-party payment platforms (ii) | [2] | 3,645 | 572 | 9,454 |
Others | 56,310 | 8,836 | 92,349 | |
Total, gross | 237,761 | 37,310 | 368,574 | |
Bad debt provision(iii) | [3] | (124,009) | (19,460) | (66,313) |
Total, net | 113,752 | 17,850 | 302,261 | |
Non-current: | ||||
Prepaid rental and deposits | 8,572 | 1,345 | 14,515 | |
Others | 632 | 99 | 4,099 | |
Total | ¥ 9,204 | $ 1,444 | ¥ 18,614 | |
[1] | Guarantee deposits are mainly deposits paid to institutional funding partners for cooperation with these funding partners. | |||
[2] | 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, 2020 and 2021. | |||
[3] | During the years ended December 31, 2019, 2020 and 2021, the Company recorded bad debt provision of RMB 15,090, RMB59,844, and RMB57,696(US$9,054) in the General and administrative expense, respectively |
Prepaid expenses and other as_4
Prepaid expenses and other assets, net - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
General and administrative | ||||
Bad debt provision for prepaid expenses and other assets | ¥ 57,696 | $ 9,054 | ¥ 59,844 | ¥ 15,090 |
Long-term investments (Details)
Long-term investments (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Long-term Investments | ||||
Impairment for long-term investments | ¥ 241 | $ 38 | ¥ 0 | ¥ 0 |
Property and equipment and so_3
Property and equipment and software, net (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Property and equipment and software, net | |||
Total | ¥ 140,229 | $ 22,006 | ¥ 149,198 |
Less: Accumulated depreciation and amortization | (111,355) | (17,475) | (111,526) |
Property, equipment and software, net | 28,874 | 4,531 | 37,672 |
Computer and electronic equipment | |||
Property and equipment and software, net | |||
Total | 44,481 | 6,980 | 49,480 |
Leasehold improvement | |||
Property and equipment and software, net | |||
Total | 67,338 | 10,567 | 63,634 |
Vehicles | |||
Property and equipment and software, net | |||
Total | 1,674 | 263 | 9,373 |
Office furniture and equipment | |||
Property and equipment and software, net | |||
Total | 2,491 | 391 | 2,471 |
Software | |||
Property and equipment and software, net | |||
Total | ¥ 24,245 | $ 3,805 | ¥ 24,240 |
Property and equipment and so_4
Property and equipment and software, net - Depreciation (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Property and equipment and software, net | ||||
Depreciation | ¥ 13,001 | $ 2,040 | ¥ 29,431 | ¥ 42,586 |
Payable to institutional fund_3
Payable to institutional funding partners and online investors (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | |
Schedule Of Payable To Institutional Funding Partners And Online Investors [Line Items] | |||
Payable to institutional funding partners and online investors, current | ¥ 5,899 | $ 926 | ¥ 43,480 |
Institutional funding partners | |||
Schedule Of Payable To Institutional Funding Partners And Online Investors [Line Items] | |||
Payable to institutional funding partners and online investors, current | ¥ 5,899 | $ 926 | 39,253 |
Institutional funding partners | Maximum | |||
Schedule Of Payable To Institutional Funding Partners And Online Investors [Line Items] | |||
Fixed annual Rate, Current | 11.00% | 11.00% | |
Payable to institutional funding partners and online investors term, current | 12 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% | |
Payable to institutional funding partners and online investors term, current | 7 years | ||
Online investors | |||
Schedule Of Payable To Institutional Funding Partners And Online Investors [Line Items] | |||
Payable to institutional funding partners and online investors, current | ¥ 4,227 | ||
Online investors | Maximum | |||
Schedule Of Payable To Institutional Funding Partners And Online Investors [Line Items] | |||
Fixed annual Rate, Current | 11.00% | 11.00% | |
Payable to institutional funding partners and online investors term, current | 12 months | ||
Online investors | Minimum | |||
Schedule Of Payable To Institutional Funding Partners And Online Investors [Line Items] | |||
Fixed annual Rate, Current | 3.00% | 3.00% | |
Payable to institutional funding partners and online investors term, current | 2 months |
Current account with online i_3
Current account with online investors and borrowers (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Current account with online investors and borrowers. | |||
Investor deposits | ¥ 38,166 | $ 5,989 | ¥ 54,893 |
Undrawn borrower funds and deposits | 100,517 | 15,773 | 199,282 |
Total | ¥ 138,683 | $ 21,762 | ¥ 254,175 |
Accrued expenses and other li_3
Accrued expenses and other liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Accrued expenses and other liabilities | |||
Guarantee liabilities | ¥ 83,880 | $ 13,163 | ¥ 146,183 |
Payroll and welfare payable | 70,788 | 11,108 | 87,109 |
Payable to advancing service providers | 54,832 | 8,604 | 8,716 |
Accrued operation and other expense | 18,333 | 2,877 | 19,427 |
Payable to investors of P2P loan business | 12,878 | 2,021 | |
Other taxes payable | 10,358 | 1,625 | 24,536 |
Accrued marketing expenses | 10,028 | 1,574 | 19,245 |
Prepaid service fee | 8,333 | 1,308 | 8,333 |
Others | 31,650 | 4,966 | 52,471 |
Total | ¥ 301,080 | $ 47,246 | ¥ 366,020 |
Interest income (expense) and_3
Interest income (expense) and foreign currency exchange gain (loss), net (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Interest income/(expense) and foreign currency exchange gain/(loss), net | ||||
Interest income | ¥ 6,716 | $ 1,054 | ¥ 19,445 | ¥ 42,013 |
Bank charges | (317) | (50) | (493) | (3,491) |
Exchange gains/(loss) | (6,265) | (983) | (19,041) | 1,094 |
Interest income/(expense) and foreign currency exchange gain/(loss), net | ¥ 134 | $ 21 | ¥ (89) | ¥ 39,616 |
Lease - Summary of lease cost (
Lease - Summary of lease cost (Details) - 12 months ended Dec. 31, 2021 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Lease | ||
Operating leases cost excluding short-term rental expense | ¥ 4,142 | $ 650 |
Short-term lease cost | 21,628 | 3,394 |
Total | ¥ 25,770 | $ 4,044 |
Lease - Supplemental informatio
Lease - Supplemental information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | |
Lease | ||
Cash paid for amounts included in the measurement of lease liabilities | ¥ 4,710 | $ 739 |
Weighted average remaining lease term (in years) | 3 years 2 months 12 days | 3 years 2 months 12 days |
Weighted average discount rate. | 4.75% | 4.75% |
Lease - Maturity of lease liabi
Lease - Maturity of lease liabilities under operating leases (Details) - Dec. 31, 2021 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Lease | ||
2022 | ¥ 6,567 | $ 1,031 |
2023 | 6,903 | 1,083 |
2024 | 7,281 | 1,143 |
2025 | 3,192 | 501 |
2026 | 926 | 145 |
Total lease payments | 24,869 | 3,903 |
Less: imputed interest | (1,871) | (294) |
Total | 22,998 | 3,609 |
Less: current portion | 5,679 | 891 |
Non-current portion | ¥ 17,319 | $ 2,718 |
Income Taxes - Summary of Curre
Income Taxes - Summary of Current and Deferred Components of Income Tax Expenses (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Income Taxes | ||||
Current income tax | ¥ 2 | $ 1 | ¥ 45,249 | ¥ 365,293 |
Deferred income tax | 403,852 | 63,373 | 271,237 | (260,050) |
Total income tax expenses | ¥ 403,854 | $ 63,374 | ¥ 316,486 | ¥ 105,243 |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Deferred Tax Assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Deferred tax assets | |||
Allowance for loans and advances | ¥ 722,633 | $ 113,397 | ¥ 613,056 |
Net operating loss carry forwards | 145,472 | 22,828 | 70,220 |
Accruals for share-based compensation | 42,636 | 6,691 | 42,636 |
Accruals for payroll and other costs | 13,594 | 2,133 | 13,589 |
Accruals for other liabilities | 49,587 | 7,781 | 30,558 |
Contract liabilities | 12,829 | 2,013 | 36,469 |
Lease liabilities | 4,531 | 711 | |
Less: valuation allowance | (986,982) | (154,879) | (402,676) |
Balance at the end of the year | 4,300 | 675 | 403,852 |
Deferred tax liabilities | |||
Right-of-use assets | (4,300) | (675) | |
Balance at the end of the year | ¥ (4,300) | $ (675) | |
Deferred tax assets, net | ¥ 403,852 |
Income Taxes - Summary of Diffe
Income Taxes - Summary of Differences Between the PRC Statutory Tax rate and Company's Effective Tax Rate (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Income Taxes | ||||
Income/(loss) before provision of income tax | ¥ (740,190) | $ (116,152) | ¥ (397,857) | ¥ 368,485 |
PRC statutory income tax rate | 25.00% | 25.00% | 25.00% | 25.00% |
Income tax computed at statutory tax rate | ¥ (185,047) | $ (29,038) | ¥ (99,465) | ¥ 92,121 |
Difference on tax rate | 4,898 | 769 | 8,803 | (18,427) |
Research and development super-deduction | (4,161) | (653) | (5,646) | (13,919) |
Non-deductible/non-taxable items | 3,858 | 605 | 23,148 | 34,168 |
Changes in valuation allowance | 584,306 | 91,691 | 389,646 | 11,300 |
Total income tax expenses | ¥ 403,854 | $ 63,374 | ¥ 316,486 | ¥ 105,243 |
Income taxes - Unrecognized Tax
Income taxes - Unrecognized Tax Benefits (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Unrecognized Tax Benefits | ||||
Balance at January 1 | ¥ 434,439 | $ 68,173 | ¥ 215,531 | ¥ 0 |
Additions based on tax positions related to current year | 184,472 | 28,948 | 218,908 | 215,531 |
Balance at December 31 | ¥ 618,911 | $ 97,121 | ¥ 434,439 | ¥ 215,531 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) ¥ in Thousands, $ in Thousands, $ in Millions | 12 Months Ended | ||||||||
Dec. 31, 2021HKD ($) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2018CNY (¥) | |
Income Tax Disclosure [Line Items] | |||||||||
PRC statutory income tax rate | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | |||
Withholding income tax rate on on dividends distributed | 10.00% | 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). | 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). | ||||||
Percentage of income tax research and development super deduction | 175.00% | 175.00% | 175.00% | 175.00% | 175.00% | 175.00% | |||
Research and development expense | ¥ 22,193 | $ 3,483 | ¥ 30,112 | ¥ 85,810 | |||||
Research and development super-deduction | ¥ (4,161) | $ (653) | (5,646) | (13,919) | |||||
Period of PRC tax authority | 5 years | 5 years | 5 years | ||||||
Net operating losses | ¥ 616,377 | $ 96,723 | |||||||
Unrecognized tax position | 618,911 | 434,439 | ¥ 215,531 | $ 97,121 | $ 68,173 | ¥ 0 | |||
Interest expense or penalty related to unrecognized tax benefit | ¥ 215,531 | $ 33,822 | ¥ 215,531 | $ 33,822 | |||||
Hong Kong | Tax rate on assessable profits up to HK$2.0 million | |||||||||
Income Tax Disclosure [Line Items] | |||||||||
PRC statutory income tax rate | 8.25% | 8.25% | 8.25% | ||||||
Assessable profits | $ 2 | ||||||||
Hong Kong | Tax rate on assessable profits over HK$2.0 million | |||||||||
Income Tax Disclosure [Line Items] | |||||||||
PRC statutory income tax rate | 16.50% | 16.50% | 16.50% | ||||||
Assessable profits | $ 2 | ||||||||
Hangzhou Yaohong Technology Co., Ltd. | |||||||||
Income Tax Disclosure [Line Items] | |||||||||
PRC statutory income tax rate | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% |
Share capital - Additional Info
Share capital - Additional Information (Details) | Jan. 26, 2022 | Jan. 25, 2022 | Dec. 31, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
Share Capital [Line Items] | |||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 1 | ||||
Dividend payment | ¥ 0 | ¥ 0 | ¥ 0 | ||
Class A ordinary shares | |||||
Share Capital [Line Items] | |||||
Common Stock, Voting Rights | one | ||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 5 | 1 | |||
Class B ordinary shares | |||||
Share Capital [Line Items] | |||||
Common Stock, Voting Rights | five |
Related party balances and tr_3
Related party balances and transactions (Details) | Dec. 31, 2021 |
PT PENDANAAN GOTONG ROYONG | |
Defined Benefit Plan Disclosure [Line Items] | |
Equity interest held | 15.00% |
Related party balances and tr_4
Related party balances and transactions (Details 1) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Origination and servicing expenses: | ||||
Origination and servicing expenses | ¥ 15,348 | $ 2,408 | ¥ 29,022 | ¥ 73,008 |
Loan service fee | ||||
Related Party Transaction [Line Items] | ||||
Net revenues | 0 | 0 | 20 | 306 |
Key Management And Their Immediate Family Members [Member] | Loan service fee | ||||
Related Party Transaction [Line Items] | ||||
Net revenues | 0 | 0 | 20 | 274 |
Hangzhou Ruituo Technology Co. Ltd. [Member] | Loan service fee | ||||
Related Party Transaction [Line Items] | ||||
Net revenues | 0 | 0 | 0 | 32 |
Chunan Wanglan Financial Information Advisory Services Partnership (Gp) [Member] | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 0 | 0 | 0 | 1,729 |
Chunan Wenjun Financial Information Advisory Services Partnership (GP) | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 1,936 | 304 | 4,365 | 6,927 |
Chunan Wenkang Financial Information Advisory Services Partnership (GP) | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 557 | 87 | 1,774 | 4,518 |
Chunan Wenhai Financial Information Advisory Services Partnership (GP) | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 1,111 | 174 | 1,095 | 3,518 |
Chunan Wenbing Financial Information Advisory Services Partnership (GP) [Member] | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 793 | 124 | 2,505 | 6,228 |
Chunan Wenlin Financial Information Advisory Services Partnership (GP) | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 688 | 108 | 2,231 | 4,693 |
Chunan Wenrong Financial Information Advisory Services Partnership (GP) | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 1,091 | 171 | 3,347 | 5,902 |
Chunan Wenshe Financial Information Advisory Services Partnership (GP) | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 229 | 36 | (569) | 0 |
Chunan Wenbei Financial Information Advisory Services Partnership (GP) | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 1,026 | 161 | 2,844 | 6,900 |
Chunan Wensheng Financial Information Advisory Services Partnership (GP) | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 1,122 | 176 | 2,339 | 6,509 |
Chunan Wenyang Financial Information Advisory Services Partnership (GP) | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 408 | 64 | 367 | 1,709 |
Chunan Wangxia Financial Information Advisory Services Partnership (GP) | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 426 | 67 | 590 | 3,027 |
Chunan Wanglin Financial Information Advisory Services Partnership (GP) | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 2,667 | 419 | 3,507 | 6,900 |
Chunan Wangqi Financial Information Advisory Services Partnership [Member] | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 108 | 17 | 1,166 | 4,250 |
Chunan Wangqun Financial Information Advisory Services Partnership [Member] | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | 3,017 | 473 | 3,033 | 9,255 |
Chunan Yunxiu Financial Information Advisory Services Partnership (Gp) [Member] | ||||
Origination and servicing expenses: | ||||
Customer acquisition costs | ¥ 169 | $ 27 | ¥ 428 | ¥ 943 |
Related party balances and tr_5
Related party balances and transactions (Details 2) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | |
Related Party Transaction [Line Items] | ||||
Total | ¥ 32,829 | $ 5,152 | ¥ 15,360 | |
Hangzhou Ruituo Technology Co. Ltd. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Total | [1] | 28,345 | 4,448 | 6,358 |
Zhejiang Ruituo Non-Financing Guarantee Co., Ltd. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Total | 2,677 | 420 | 2,794 | |
PT PENDANAAN GOTONG ROYONG | ||||
Related Party Transaction [Line Items] | ||||
Total | 1,065 | |||
Others Related Party [Member] | ||||
Related Party Transaction [Line Items] | ||||
Total | ¥ 1,807 | $ 284 | ¥ 5,143 | |
[1] | The balance mainly represents loans provided to Hangzhou Ruituo Technology Co., Ltd. and receivable from the disposal of vehicle collaterals for overdue loans as of December 31, 2020 and 2021. |
Related party balances and tr_6
Related party balances and transactions (Details 3) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | |
Related Party Transaction [Line Items] | ||||
Total | ¥ 1,175 | $ 184 | ¥ 5,146 | |
Hangzhou Ruituo Technology Co. Ltd. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Total | 708 | 111 | 483 | |
Key Management And Their Immediate Family Members [Member] | ||||
Related Party Transaction [Line Items] | ||||
Total | [1] | 0 | 0 | 3,092 |
Mr Hong Yao [Member] | ||||
Related Party Transaction [Line Items] | ||||
Total | [1] | 7 | 1 | 700 |
Other Related Service Center Operation Partners [Member] | ||||
Related Party Transaction [Line Items] | ||||
Total | 384 | 61 | 0 | |
Others Related Party [Member] | ||||
Related Party Transaction [Line Items] | ||||
Total | ¥ 76 | $ 11 | ¥ 871 | |
[1] | The balance mainly represents investment balance due to related parties who are also investors on the platform. |
Share-based compensation (Detai
Share-based compensation (Details 1) - Restricted shares | 12 Months Ended |
Dec. 31, 2021¥ / sharesshares | |
Number of shares | |
Outstanding, beginning | shares | 739,026 |
Forfeited | shares | (15,341) |
Outstanding, ending | shares | 723,685 |
Weighted average grant-date fair value | |
Outstanding, beginning | ¥ / shares | ¥ 313.88 |
Forfeited | ¥ / shares | 43.01 |
Outstanding, ending | ¥ / shares | ¥ 319.62 |
Share-based compensation (Det_2
Share-based compensation (Details 2) | 12 Months Ended |
Dec. 31, 2021¥ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding, December 31, 2020 | shares | 873,695 |
Forfeited | shares | (49,054) |
Outstanding, December 31, 2021 | shares | 824,641 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Outstanding, beginning | ¥ / shares | ¥ 122.07 |
Weighted average grant-date fair value, options forfeited | ¥ / shares | 36.79 |
Outstanding, ending | ¥ / shares | ¥ 127.15 |
Share-based compensation (Det_3
Share-based compensation (Details 3) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated share-based compensation expenses | ¥ 10,258 | $ 1,610 | ¥ 6,093 | ¥ 64,796 |
Origination and servicing | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated share-based compensation expenses | 4,033 | 633 | 346 | 21,279 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated share-based compensation expenses | 5,115 | 803 | 8,717 | 35,162 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated share-based compensation expenses | ¥ 1,110 | $ 174 | ¥ (2,970) | ¥ 8,355 |
Share-based compensation (Det_4
Share-based compensation (Detail Textuals) ¥ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Aug. 31, 2018shares | Dec. 31, 2021CNY (¥)¥ / sharesshares | Dec. 31, 2021USD ($)shares | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation | ¥ 10,258,000 | $ 1,610 | ¥ 6,093,000 | ¥ 64,796,000 | ||
Weighted average grant-date fair value of Options granted | ¥ / shares | ¥ 127.15 | |||||
Share Incentive Plan 2018 [Member] | ||||||
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 | |||||
Share Incentive Plan 2018 [Member] | April 1 2019 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted | 1,999,951 | 1,999,951 | ||||
Restricted shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized non-employee share-based compensation expenses related to unvested restricted shares expected to vest | ¥ 1,075,000 | $ 169 | ||||
Weighted average grant-date fair value of Restricted Shares granted | ¥ / shares | ¥ 319.62 | |||||
Weighted-average period to recognize unrecognized employee share-based compensation expenses | 3 months | 3 months | ||||
Stock appreciation rights | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation | ¥ 2,248 | $ 353 | ¥ 798,000 | ¥ 26,858,000 | ||
Employee Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized non-employee share-based compensation expenses related to unvested restricted shares expected to vest | ¥ 4,278,000 | $ 671 | ||||
Weighted-average period to recognize unrecognized employee share-based compensation expenses | 1 year 1 month 28 days | 1 year 1 month 28 days | ||||
Employee Stock Option [Member] | Share Incentive Plan 2018 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted | 1,928,561 | 1,928,561 | ||||
Option exercised | 0 | 0 | ||||
Restricted Stock Units (RSUs) [Member] | Share Incentive Plan 2018 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted | 71,390 | 71,390 |
Business combination (Detail Te
Business combination (Detail Textuals) - CNY (¥) | Jun. 06, 2018 | May 24, 2018 | Dec. 31, 2021 |
Business Acquisition [Line Items] | |||
Goodwill recognized | ¥ 0 | ||
Hangzhou Jiujiu Financial Information Service Limited | |||
Business Acquisition [Line Items] | |||
Percentage of equity interest | 70.00% | ||
Amount of consideration for acquisition | ¥ 4,500,000 | ||
Goodwill recognized | ¥ 3,067,000 | ||
Rymo Technology Industry Limited | |||
Business Acquisition [Line Items] | |||
Percentage of equity interest | 100.00% | ||
Amount of consideration for acquisition | ¥ 0 | ||
Goodwill recognized | ¥ 2,745,000 |
Restricted net assets (Detail T
Restricted net assets (Detail Textuals) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | |
Restricted net assets | |||
Amount include paid in capital and statutory reserve funds | ¥ 263,207 | $ 41,303 | ¥ 263,207 |
Percentage of statutory reserve of registered capital | 50.00% |
Parent company only condensed_3
Parent company only condensed financial information - Condensed balance sheets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
Current assets: | ||||
Cash and cash equivalents | ¥ 234,568 | $ 36,809 | ¥ 409,498 | ¥ 1,075,557 |
Short-term investments | 158,565 | 24,882 | ||
Prepaid expenses and other assets | 113,752 | 17,850 | 302,261 | |
Amounts due from related parties | 32,829 | 5,152 | 15,360 | |
Total current assets | 1,126,346 | 176,748 | 2,189,133 | |
Non-current assets: | ||||
Total non-current assets | 73,321 | 11,505 | 473,712 | |
TOTAL ASSETS | 1,199,667 | 188,253 | 2,662,845 | |
Current liabilities | ||||
Accrued expenses and other liabilities | 301,080 | 47,246 | 366,020 | |
Amounts due from subsidiaries and consolidated VIEs | 1,175 | 184 | 5,146 | |
Total current liabilities | 747,042 | 117,226 | 1,074,516 | |
Total liabilities | 764,361 | 119,944 | 1,093,753 | |
Shareholders' equity: | ||||
Additional paid-in capital | 1,252,103 | 196,482 | 1,241,845 | |
Accumulated other comprehensive loss | (2,510) | (394) | (2,510) | |
Retained earnings (accumulated deficit) | (814,916) | (127,878) | 325,750 | |
Total Weidai Ltd. shareholder's equity | 434,678 | 68,210 | 1,565,086 | |
TOTAL LIABILITIES AND EQUITY | 1,199,667 | 188,253 | 2,662,845 | |
Class A ordinary shares | ||||
Shareholders' equity: | ||||
Ordinary shares | 0 | 0 | 0 | |
Class B ordinary shares | ||||
Shareholders' equity: | ||||
Ordinary shares | 1 | 1 | ||
Parent Company [Member] | Reportable Legal Entities [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 10,846 | 1,702 | 177,920 | |
Short-term investments | 158,565 | 24,882 | ||
Prepaid expenses and other assets | 403 | 63 | 2,057 | |
Amounts due from related parties | 85,434 | 13,407 | 82,667 | |
Total current assets | 255,248 | 40,054 | 262,644 | |
Non-current assets: | ||||
Investments in subsidiaries and VIEs | 179,635 | 28,189 | 1,302,576 | |
Total non-current assets | 179,635 | 28,189 | 1,302,576 | |
TOTAL ASSETS | 434,883 | 68,243 | 1,565,220 | |
Current liabilities | ||||
Accrued expenses and other liabilities | 71 | 11 | ||
Amounts due from subsidiaries and consolidated VIEs | 134 | 22 | 134 | |
Total current liabilities | 205 | 33 | 134 | |
Total liabilities | 205 | 33 | 134 | |
Shareholders' equity: | ||||
Additional paid-in capital | 1,252,103 | 196,482 | 1,241,845 | |
Accumulated other comprehensive loss | (2,510) | (394) | (2,510) | |
Retained earnings (accumulated deficit) | (814,916) | (127,878) | 325,750 | |
Total Weidai Ltd. shareholder's equity | 434,678 | 68,210 | 1,565,086 | |
TOTAL LIABILITIES AND EQUITY | 434,883 | $ 68,243 | 1,565,220 | |
Parent Company [Member] | Reportable Legal Entities [Member] | Class B ordinary shares | ||||
Shareholders' equity: | ||||
Ordinary shares | ¥ 1 | ¥ 1 |
Parent company only condensed_4
Parent company only condensed financial information - Condensed balance sheets (Parenthetical) (Details) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Class A ordinary shares | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Common stock, par value (in dollars per share) | $ 0.000002 | $ 0.000002 |
Ordinary shares, shares issued | 35,390,055 | 35,390,055 |
Ordinary shares, shares outstanding | 35,390,055 | 35,390,055 |
Class B ordinary shares | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Common stock, par value (in dollars per share) | $ 0.000002 | $ 0.000002 |
Ordinary shares, shares issued | 35,071,400 | 35,071,400 |
Ordinary shares, shares outstanding | 35,071,400 | 35,071,400 |
Parent Company [Member] | Reportable Legal Entities [Member] | Class A ordinary shares | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Common stock, par value (in dollars per share) | $ 0.000002 | $ 0.000002 |
Ordinary shares, shares issued | 35,390,055 | 35,390,055 |
Ordinary shares, shares outstanding | 35,390,055 | 35,390,055 |
Parent Company [Member] | Reportable Legal Entities [Member] | Class B ordinary shares | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Common stock, par value (in dollars per share) | $ 0.000002 | $ 0.000002 |
Ordinary shares, shares issued | 35,071,400 | 35,071,400 |
Ordinary shares, shares outstanding | 35,071,400 | 35,071,400 |
Parent company only condensed_5
Parent company only condensed financial information - Condensed statements of operations (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Condensed Income Statements, Captions [Line Items] | ||||
Total net revenues | ¥ 707,465 | $ 111,017 | ¥ 1,536,149 | ¥ 3,357,494 |
Sales and marketing | 3,424 | 537 | 15,113 | 138,068 |
General and administrative expense | 161,989 | 25,420 | 229,506 | 281,956 |
Total operating costs and expenses | 644,322 | 101,109 | 1,141,065 | 1,909,534 |
Income/(loss) from operations | (744,138) | (116,772) | (408,652) | 207,998 |
Interest income/(expense) and foreign currency exchange gain/(loss), net | 134 | 21 | (89) | 39,616 |
Other income, net | 2,444 | 384 | 6,663 | 13,998 |
Net income/(loss) | (1,144,044) | (179,526) | (714,343) | 263,242 |
Foreign currency translation adjustment | (190) | |||
Comprehensive income/(loss) attributable to ordinary shareholders | (1,140,666) | (178,996) | (712,573) | 253,800 |
Parent Company [Member] | Reportable Legal Entities [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Total net revenues | 1,466 | 230 | 1,020 | |
Sales and marketing | (209) | (488) | ||
General and administrative expense | (4,806) | (754) | (5,791) | (6,765) |
Total operating costs and expenses | (4,806) | (754) | (6,000) | (7,253) |
Income/(loss) from operations | (3,340) | (524) | (4,980) | (7,253) |
Interest income/(expense) and foreign currency exchange gain/(loss), net | (2,533) | (397) | (8,696) | 9,654 |
Other income, net | (4) | |||
Net income/(loss) before equity in losses of subsidiaries and consolidated VIEs and VIEs' subsidiaries | (5,873) | (921) | (13,676) | 2,397 |
Equity in losses of subsidiaries and consolidated VIEs and VIEs' subsidiaries | (1,134,793) | (178,074) | (698,897) | 251,213 |
Net income/(loss) | (1,140,666) | (178,995) | (712,573) | 253,610 |
Foreign currency translation adjustment | 190 | |||
Comprehensive income/(loss) attributable to ordinary shareholders | (1,140,666) | (178,995) | (712,573) | ¥ 253,800 |
Parent Company [Member] | Reportable Legal Entities [Member] | Other revenues | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Total net revenues | ¥ 1,466 | $ 230 | ¥ 1,020 |
Parent company only condensed_6
Parent company only condensed financial information - Condensed statements of cash flows (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash provided by/(used in) operating activities | ¥ (42,543) | $ (6,676) | ¥ (1,336,897) | ¥ 887,112 |
Net cash used in investing activities | (189,363) | (29,715) | 24,048 | (922,049) |
Net cash used in financing activities | (37,581) | (5,897) | (298,089) | (1,130,093) |
Net decrease in cash, cash equivalents and restricted cash | (269,487) | (42,288) | (1,610,938) | (1,164,840) |
Cash, cash equivalents and restricted cash at the beginning of the year | 605,438 | 95,006 | 2,216,376 | 3,381,216 |
Cash, cash equivalents and restricted cash at the end of the year | 335,951 | 52,718 | 605,438 | 2,216,376 |
Parent Company [Member] | Reportable Legal Entities [Member] | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash provided by/(used in) operating activities | (7,880) | (1,237) | (13,583) | 10,228 |
Net cash used in investing activities | (159,194) | (24,981) | (66,156) | (12,366) |
Net cash used in financing activities | (15,167) | |||
Net decrease in cash, cash equivalents and restricted cash | (167,074) | (26,218) | (79,739) | (17,305) |
Cash, cash equivalents and restricted cash at the beginning of the year | 177,920 | 27,920 | 257,659 | 274,964 |
Cash, cash equivalents and restricted cash at the end of the year | ¥ 10,846 | $ 1,702 | ¥ 177,920 | ¥ 257,659 |