Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2021shares | |
Document and Entity Information | |
Entity Registrant Name | 360 DigiTech, Inc. |
Entity Central Index Key | 0001741530 |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2021 |
Entity File Number | 001-38752 |
Entity Incorporation, State or Country Code | E9 |
Amendment Flag | false |
Entity Address, Address Line One | 7/F Lujiazui Finance Plaza |
Entity Address, Address Line Two | No. 1217 Dongfang Road |
Entity Address, Address Line Three | Pudong New Area |
Entity Address, City or Town | Shanghai |
Entity Address, Postal Zip Code | 200122 |
Entity Address, Country | CN |
Current Fiscal Year End Date | --12-31 |
Entity Voluntary Filers | No |
Entity Well-known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Auditor Name | Deloitte Touche Tohmatsu Certified Public Accountants LLP |
Auditor Location | Shanghai, China |
Auditor Firm ID | 1113 |
ADS | |
Document and Entity Information | |
Title of 12(b) Security | American depositary shares, eachrepresenting two Class A ordinary shares |
Trading Symbol | QFIN |
Security Exchange Name | NASDAQ |
Ordinary shares. | |
Document and Entity Information | |
Entity Common Stock, Shares Outstanding | 310,486,975 |
Class A ordinary shares | |
Document and Entity Information | |
Title of 12(b) Security | Class A ordinary shares, par valueUS$0.00001 per share* |
No Trading Symbol Flag | true |
Entity Common Stock, Shares Outstanding | 270,666,389 |
Class B ordinary shares | |
Document and Entity Information | |
Entity Common Stock, Shares Outstanding | 39,820,586 |
Business Contact | |
Document and Entity Information | |
Entity Address, Address Line One | 7/F Lujiazui Finance Plaza |
Entity Address, Address Line Two | No. 1217 Dongfang Road |
Entity Address, Address Line Three | Pudong New Area |
Entity Address, City or Town | Shanghai |
Entity Address, Postal Zip Code | 200122 |
Entity Address, Country | CN |
Contact Personnel Name | Alex Xu |
City Area Code | +86 10 |
Local Phone Number | 5244 7655 |
Contact Personnel Email Address | alex_xu@360shuke.com |
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 | ¥ 6,116,360 | $ 959,790 | ¥ 4,418,416 |
Restricted cash (including RMB 348,976 and RMB 657,075 from the consolidated trusts as of December 31, 2020 and 2021, respectively) | 2,643,587 | 414,836 | 2,355,850 |
Security deposit prepaid to third-party guarantee companies | 874,886 | 137,289 | 915,144 |
Funds receivable from third party payment service providers | 153,151 | 24,033 | 131,464 |
Accounts receivable and contract assets, net (net of allowance of RMB 217,306 and RMB 287,538 as of December 31, 2020 and 2021, respectively) | 3,097,254 | 486,027 | 2,394,528 |
Financial assets receivable, net (net of allowance of RMB 322,094 and RMB 432,658 as of December 31, 2020 and 2021, respectively) | 3,806,243 | 597,283 | 3,565,482 |
Amounts due from related parties (net of allowance of RMB 10,333 and RMB 99,962 as of December 31, 2020 and 2021, respectively) | 837,324 | 131,394 | 193,305 |
Loans receivable, net (including RMB 6,447,233 and RMB 8,646,950 from the consolidated trusts as of December 31, 2020 and 2021, respectively) | 9,844,481 | 1,544,814 | 7,500,629 |
Prepaid expenses and other assets (including RMB 101,729 and RMB 104,515 from the consolidated trusts as of December 31, 2020 and 2021, respectively) | 383,937 | 60,246 | 401,224 |
Total current assets | 27,757,223 | 4,355,712 | 21,876,042 |
Non-current assets: | |||
Accounts receivable and contract assets, net-noncurrent (net of allowance of RMB 38,521 and RMB 28,374 as of December 31, 2020 and 2021, respectively) | 223,474 | 35,068 | 307,937 |
Financial assets receivable, net-noncurrent (net of allowance of RMB 68,740 and RMB 60,988 as of December 31, 2020 and 2021, respectively) | 597,965 | 93,834 | 645,326 |
Amounts due from related parties (net of allowance of RMB nil and RMB 22,055 as of December 31, 2020 and 2021, respectively) | 140,851 | 22,103 | |
Loans receivable, net-noncurrent (including RMB 37,157 and RMB 1,829,804 from the consolidated trusts as of December 31, 2020 and 2021) | 2,859,349 | 448,694 | 87,685 |
Property and equipment, net | 24,941 | 3,914 | 19,360 |
Land use rights, net | 1,018,908 | 159,889 | |
Intangible assets | 4,961 | 778 | 3,403 |
Deferred tax assets | 834,717 | 130,985 | 1,398,562 |
Other non-current assets | 42,606 | 6,686 | 48,990 |
Total non-current assets | 5,747,772 | 901,951 | 2,511,263 |
TOTAL ASSETS | 33,504,995 | 5,257,663 | 24,387,305 |
Current liabilities: | |||
Payable to investors of the consolidated trusts-current | 2,304,518 | 361,629 | 3,117,634 |
Accrued expenses and other current liabilities | 2,258,329 | 354,381 | 809,761 |
Amounts due to related parties | 214,057 | 33,590 | 71,562 |
Short term loans | 397,576 | 62,388 | 186,800 |
Guarantee liabilities-stand ready | 4,818,144 | 756,072 | 4,173,497 |
Guarantee liabilities-contingent | 3,285,081 | 515,501 | 3,543,454 |
Income tax payable | 624,112 | 97,937 | 1,227,314 |
Other tax payable | 241,369 | 37,876 | 254,486 |
Total current liabilities | 14,143,186 | 2,219,374 | 13,384,508 |
Deferred tax liabilities | 121,426 | 19,054 | 37,843 |
Payable to investors of the consolidated trusts-noncurrent | 4,010,597 | 629,350 | 1,468,890 |
Other long-term liabilities | 13,177 | 2,068 | 14,974 |
Total non-current liabilities | 4,145,200 | 650,472 | 1,521,707 |
TOTAL LIABILITIES | 18,288,386 | 2,869,846 | 14,906,215 |
Commitments and Contingencies (Note 17) | |||
SHAREHOLDERS' EQUITY | |||
Ordinary shares ($0.00001 par value per share 5,000,000,000 shares authorized, 309,833,035 shares issued and 304,453,780 shares outstanding as of December 31, 2020, and 315,433,018 shares issued and 310,486,975 shares outstanding as of December 31, 2021, respectively) | 22 | 3 | 21 |
Additional paid-in capital | 5,672,267 | 890,102 | 5,417,406 |
Retained earnings | 9,642,506 | 1,513,120 | 4,137,542 |
Other comprehensive loss | (110,932) | (17,408) | (74,391) |
TOTAL 360 DIGITECH INC EQUITY | 15,203,863 | 2,385,817 | 9,480,578 |
Non-controlling interests | 12,746 | 2,000 | 512 |
TOTAL EQUITY | 15,216,609 | 2,387,817 | 9,481,090 |
TOTAL LIABILITIES AND EQUITY | ¥ 33,504,995 | $ 5,257,663 | ¥ 24,387,305 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥)shares | Dec. 31, 2020CNY (¥)shares |
Restricted Cash | ¥ 2,643,587 | ¥ 2,355,850 |
Accounts receivable and contract assets, allowance | 287,538 | 217,306 |
Financial assets receivable, allowance | 432,658 | 322,094 |
Amounts due from related parties, current, allowance | 99,962 | 10,333 |
Amounts due from related parties, non current, allowance | 22,055 | 0 |
Loans receivable, net | 9,844,481 | 7,500,629 |
Prepaid expenses and other assets | 383,937 | 401,224 |
Accounts receivable and contract assets, net-noncurrent, allowance | 28,374 | 38,521 |
Financial assets receivable, net-noncurrent, allowance | 60,988 | 68,740 |
Loans receivable, net-noncurrent | ¥ 2,859,349 | ¥ 87,685 |
Ordinary shares, authorized (in shares) | shares | 5,000,000,000 | 5,000,000,000 |
Ordinary shares, issued (in shares) | shares | 315,433,018 | 309,833,035 |
Ordinary shares, outstanding (in shares) | shares | 310,486,975 | 304,453,780 |
Consolidated Trusts | ||
Restricted Cash | ¥ 657,075 | ¥ 348,976 |
Loans receivable, net | 8,646,950 | 6,447,233 |
Prepaid expenses and other assets | 104,515 | 101,729 |
Loans receivable, net-noncurrent | ¥ 1,829,804 | ¥ 37,157 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥)¥ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | |
Revenue, net of value-added tax and related surcharges: | ||||
Total net revenue | ¥ 16,635,645 | $ 2,610,495 | ¥ 13,563,954 | ¥ 9,219,847 |
Operating costs and expenses: | ||||
Facilitation, origination and servicing (including costs charged by related parties of RMB 47,203, RMB 93,178 and RMB 142,325 for the years ended December 31, 2019, 2020 and 2021, respectively) | 2,252,157 | 353,413 | 1,600,564 | 1,083,372 |
Funding costs | 337,426 | 52,950 | 595,623 | 344,999 |
Sales and marketing (including expenses charged by related parties of RMB 57,319, RMB 40,030 and RMB 367,320 for the years ended December 31, 2019, 2020 and 2021, respectively) | 2,090,374 | 328,025 | 1,079,494 | 2,851,519 |
General and administrative (including expenses charged by related parties of RMB 24,540, RMB 10,673 and RMB 13,409 for the years ended December 31, 2019, 2020 and 2021, respectively) | 557,295 | 87,452 | 455,952 | 428,189 |
Provision for loans receivable | 965,419 | 151,495 | 698,701 | 486,991 |
Provision for financial assets receivable (including provision generated from related parties of RMB 15,236, RMB 26,337 and RMB 807 for the years ended December 31, 2019, 2020 and 2021, respectively) | 243,946 | 38,280 | 312,058 | 166,176 |
Provision for accounts receivable and contract assets (including provision charged by related parties of RMB 35,276, RMB 75,070 and RMB 124,095 for the years ended December 31, 2019, 2020 and 2021, respectively) | 324,605 | 50,938 | 237,277 | 230,280 |
Provision for contingent liabilities | 3,078,224 | 483,041 | 4,794,127 | |
Expense on guarantee liabilities (including provision charged by related parties of RMB 67,587 for the year ended December 31, 2019) | ¥ | 734,730 | |||
Total operating costs and expenses | 9,849,446 | 1,545,594 | 9,773,796 | 6,326,256 |
Income from operations | 6,786,199 | 1,064,901 | 3,790,158 | 2,893,591 |
Interest (expense) income, net | 126,256 | 19,812 | 77,169 | (41,707) |
Foreign exchange (loss) gain | 35,549 | 5,578 | 101,534 | (24,875) |
Investment income | 10,115 | 1,587 | ||
Other income, net | 64,590 | 10,136 | 112,884 | 140,278 |
Income before income tax expense | 7,022,709 | 1,102,014 | 4,081,745 | 2,967,287 |
Income tax expense | (1,258,196) | (197,438) | (586,036) | (465,983) |
Net income | 5,764,513 | 904,576 | 3,495,709 | 2,501,304 |
Net loss attributable to non-controlling interests | 17,212 | 2,701 | 897 | 291 |
Net income attributable to ordinary shareholders of the Company | ¥ 5,781,725 | $ 907,277 | ¥ 3,496,606 | ¥ 2,501,595 |
Net income per ordinary share attributable to ordinary shareholders of 360 DigiTech, Inc. | ||||
Basic | (per share) | ¥ 18.82 | $ 2.95 | ¥ 11.72 | ¥ 8.66 |
Diluted | (per share) | ¥ 17.99 | $ 2.82 | ¥ 11.40 | ¥ 8.31 |
Weighted average shares used in calculating net income per ordinary share | ||||
Basic (in shares) | 307,265,600 | 307,265,600 | 298,222,207 | 288,827,604 |
Diluted (in shares) | 321,397,753 | 321,397,753 | 306,665,099 | 300,938,470 |
ADS | ||||
Net income per ordinary share attributable to ordinary shareholders of 360 DigiTech, Inc. | ||||
Basic | (per share) | ¥ 37.64 | $ 5.90 | ¥ 23.44 | ¥ 17.32 |
Diluted | (per share) | ¥ 35.98 | $ 5.64 | ¥ 22.80 | ¥ 16.62 |
Credit driven services | ||||
Revenue, net of value-added tax and related surcharges: | ||||
Total net revenue | ¥ 10,189,167 | $ 1,598,902 | ¥ 11,403,675 | ¥ 8,013,391 |
Loan facilitation and servicing fees-capital heavy | ||||
Revenue, net of value-added tax and related surcharges: | ||||
Total net revenue | 2,326,027 | 365,004 | 4,596,555 | 6,273,131 |
Financing income | ||||
Revenue, net of value-added tax and related surcharges: | ||||
Total net revenue | 2,184,128 | 342,737 | 2,184,180 | 1,309,616 |
Releasing of guarantee liabilities | ||||
Revenue, net of value-added tax and related surcharges: | ||||
Total net revenue | 5,583,135 | 876,116 | 4,506,935 | 285,407 |
Other services fees. | ||||
Revenue, net of value-added tax and related surcharges: | ||||
Total net revenue | 95,877 | 15,045 | 116,005 | 145,237 |
Platform services | ||||
Revenue, net of value-added tax and related surcharges: | ||||
Total net revenue | 6,446,478 | 1,011,593 | 2,160,279 | 1,206,456 |
Loan facilitation and servicing fees-capital light | ||||
Revenue, net of value-added tax and related surcharges: | ||||
Total net revenue | 5,677,941 | 890,993 | 1,826,654 | 814,581 |
Referral services | ||||
Revenue, net of value-added tax and related surcharges: | ||||
Total net revenue | 620,317 | 97,341 | 265,300 | 375,551 |
Other services fees | ||||
Revenue, net of value-added tax and related surcharges: | ||||
Total net revenue | ¥ 148,220 | $ 23,259 | ¥ 68,325 | ¥ 16,324 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue from related parties | ¥ 2,178,561 | ¥ 346,378 | ¥ 1,037,480 |
Facilitation, origination and servicing costs charged by related parties | 142,325 | 93,178 | 47,203 |
Sales and marketing expenses charged by related parties | 367,320 | 40,030 | 57,319 |
General and administrative expenses charged by related parties | 13,409 | 10,673 | 24,540 |
Provision for financial asset receivable from related parties | 807 | 26,337 | 15,236 |
Provision for accounts receivable and contract assets from related parties | 124,095 | 75,070 | 35,276 |
Provision charged by related parties | 67,587 | ||
Loan facilitation and servicing fees-capital heavy | |||
Revenue from related parties | 93 | 121,933 | 791,482 |
Loan facilitation and servicing fees-capital light | |||
Revenue from related parties | 2,160,856 | 214,296 | 48,747 |
Referral services | |||
Revenue from related parties | 7,670 | 10,149 | 197,018 |
Other services fees | |||
Revenue from related parties | ¥ 8,571 | ¥ 0 | ¥ 0 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME OR LOSS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME OR LOSS | ||||
Net income | ¥ 5,764,513 | $ 904,576 | ¥ 3,495,709 | ¥ 2,501,304 |
Other comprehensive income, net of tax of nil: | ||||
Foreign currency translation adjustment | (36,541) | (5,734) | (99,297) | 21,223 |
Other comprehensive income(loss) | (36,541) | (5,734) | (99,297) | 21,223 |
Total comprehensive income | 5,727,972 | 898,842 | 3,396,412 | 2,522,527 |
Net loss attributable to non-controlling interests | 17,212 | 2,701 | 897 | 291 |
Comprehensive income attributable to ordinary shareholders | ¥ 5,745,184 | $ 901,543 | ¥ 3,397,309 | ¥ 2,522,818 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME OR LOSS (Parenthetical) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME OR LOSS | |||
Other comprehensive income, tax | ¥ 0 | ¥ 0 | ¥ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY ¥ in Thousands, $ in Thousands | Ordinary shares.CNY (¥)shares | Additional Paid-in capitalCNY (¥) | Accumulated (deficit)/Retained earningsAdjustmentCNY (¥) | Accumulated (deficit)/Retained earningsCNY (¥) | Other Comprehensive Income (loss)CNY (¥) | Non-controlling InterestsCNY (¥) | AdjustmentCNY (¥) | CNY (¥)shares | USD ($)shares | |
Balance at Dec. 31, 2018 | ¥ 20 | [1] | ¥ 4,866,756 | ¥ (430,263) | ¥ 3,683 | ¥ 4,440,196 | ||||
Balance (in shares) at Dec. 31, 2018 | shares | 287,652,707 | |||||||||
Share-based compensation | 250,428 | 250,428 | ||||||||
Issuance of ordinary shares (in shares) | shares | 5,768,093 | |||||||||
Other comprehensive income (loss) | 21,223 | 21,223 | ||||||||
Contribution by non-controlling interests | ¥ 1,579 | 1,579 | ||||||||
Net income (loss) | 2,501,595 | (291) | 2,501,304 | |||||||
Balance at Dec. 31, 2019 | ¥ 20 | [1] | 5,117,184 | 2,071,332 | 24,906 | 1,288 | 7,214,730 | |||
Balance (in shares) at Dec. 31, 2019 | shares | 293,420,800 | |||||||||
Share-based compensation | 301,161 | 301,161 | ||||||||
Issuance of ordinary shares | ¥ 1 | [1] | 1 | |||||||
Issuance of ordinary shares (in shares) | shares | 11,032,980 | |||||||||
Other comprehensive income (loss) | (99,297) | (99,297) | ||||||||
Contribution by non-controlling interests | 129 | 129 | ||||||||
Net income (loss) | 3,496,606 | (897) | 3,495,709 | |||||||
Acquisition of non-controlling interests | (939) | (8) | (947) | |||||||
Balance at Dec. 31, 2020 | ¥ 21 | [1] | 5,417,406 | ¥ (1,430,396) | 4,137,542 | (74,391) | 512 | ¥ (1,430,396) | ¥ 9,481,090 | |
Balance (in shares) at Dec. 31, 2020 | shares | 304,453,780 | 309,833,035 | 309,833,035 | |||||||
Share-based compensation | 253,922 | ¥ 253,922 | ||||||||
Issuance of ordinary shares | ¥ 1 | [1] | 1 | |||||||
Issuance of ordinary shares (in shares) | shares | 6,033,212 | |||||||||
Dividends to shareholders | (276,761) | (276,761) | ||||||||
Other comprehensive income (loss) | (36,541) | (36,541) | $ (5,734) | |||||||
Cancellation of ordinary shares | shares | (17) | |||||||||
Disposal of a subsidiary | (939) | 554 | (385) | |||||||
Contribution by non-controlling interests holders to a subsidiary | 30,000 | 30,000 | ||||||||
Net income (loss) | 5,781,725 | (17,212) | 5,764,513 | 904,576 | ||||||
Balance at Dec. 31, 2021 | ¥ 22 | [1] | ¥ 5,672,267 | ¥ 9,642,506 | ¥ (110,932) | ¥ 12,746 | ¥ 15,216,609 | $ 2,387,817 | ||
Balance (in shares) at Dec. 31, 2021 | shares | 310,486,975 | 315,433,018 | 315,433,018 | |||||||
[1] | The amount less than RMB 1 is rounded to zero. |
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 | ¥ 5,764,513 | $ 904,576 | ¥ 3,495,709 | ¥ 2,501,304 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation, amortization and reduction in right-of-use assets | 65,973 | 10,353 | 36,063 | 7,642 |
Share-based compensation | 253,922 | 39,846 | 301,161 | 250,428 |
Gain on disposal of investment | (10,115) | (1,587) | ||
Provision for loan principal, financial assets receivables and other receivables | 1,553,970 | 243,852 | 1,248,036 | 883,447 |
Provision for contingent liabilities | 3,078,225 | 483,041 | 4,794,127 | |
Foreign exchange (gain) loss | (35,550) | (5,579) | (101,534) | 19,461 |
Changes in operating assets and liabilities | ||||
Funds receivable from third party payment service providers | (21,687) | (3,403) | (12,604) | 23,762 |
Accounts receivable and contract assets | (819,931) | (128,665) | (512,799) | (755,132) |
Financial assets receivable | (436,538) | (68,502) | (2,464,534) | (929,143) |
Prepaid expenses and other assets | 11,378 | 1,785 | 253,185 | (536,940) |
Security deposit prepaid to third-party guarantee companies | 40,258 | 6,317 | 17,839 | (137,283) |
Deferred tax | 647,429 | 101,596 | (326,542) | (713,106) |
Other non-current assets | (27,846) | (4,370) | (18,423) | (55,362) |
Amounts due (from) to related parties | (776,431) | (121,839) | 199,995 | (68,138) |
Guarantee liabilities | (2,691,248) | (422,316) | (1,912,852) | 1,547,680 |
Income tax payable | (603,202) | (94,656) | 171,095 | 624,153 |
Other tax payable | (13,117) | (2,058) | 52,056 | 99,378 |
Land use rights, net | (1,036,178) | (162,599) | ||
Accrued expenses and other current liabilities | 897,670 | 140,865 | 88,842 | 206,801 |
Other long-term liabilities | (1,799) | (282) | (16,210) | 31,184 |
Interest receivable/ payable | (49,996) | (7,845) | 33,200 | (27,061) |
Net cash provided by operating activities | 5,789,700 | 908,530 | 5,325,810 | 2,973,075 |
Cash Flows from Investing Activities: | ||||
Purchase of property and equipment and intangible assets | (25,307) | (3,971) | (15,272) | (25,558) |
Loans provided to related parties | (50,000) | (7,846) | ||
Repayment of loans provided to related parties | 50,000 | 7,846 | ||
Investment in loans receivable | (40,168,794) | (6,303,360) | (38,720,482) | (26,339,327) |
Collection of investment in loans receivable | 34,131,231 | 5,355,935 | 39,628,524 | 17,504,444 |
Disposal of subsidiaries and other business units, net of cash received | (1,458) | (229) | ||
Net cash (used in) provided by investing activities | (6,064,328) | (951,625) | 892,770 | (8,860,441) |
Cash Flows from Financing Activities: | ||||
Repayment of short term loans | (150,000) | (23,538) | (200,000) | (1,500,000) |
Proceeds from short-term loans | 364,053 | 57,128 | 186,800 | 1,700,000 |
Loans from Qibutianxia | 300,000 | |||
Loans payment to Qibutianxia | (300,000) | |||
Cash received from investors of the consolidated trusts | 5,928,773 | 930,354 | 3,092,101 | 8,360,230 |
Cash paid to investors of the consolidated trusts | (4,193,425) | (658,040) | (6,360,483) | (847,534) |
Contribution from non-controlling interests | 30,000 | 4,708 | 129 | |
Acquisition of non-controlling interests | (947) | |||
Loans received from non-controlling interests | 344,487 | 54,058 | ||
Loans payment to non-controlling interests | (60,168) | (9,443) | ||
Cash received from a related party for investment | 354,667 | 55,655 | ||
Cash repayment to a related party | (354,667) | (55,655) | ||
Payment of IPO costs | (4,838) | |||
Net cash provided by (used in) financing activities | 2,263,720 | 355,227 | (3,282,400) | 7,707,858 |
Effect of foreign exchange rate changes | (3,411) | (536) | 2,236 | 1,762 |
Net increase in cash and cash equivalents | 1,985,681 | 311,596 | 2,938,416 | 1,822,254 |
Cash, cash equivalents, and restricted cash, beginning of year | 6,774,266 | 1,063,030 | 3,835,850 | 2,013,596 |
Cash, cash equivalents, and restricted cash, end of year | 8,759,947 | 1,374,626 | 6,774,266 | 3,835,850 |
Supplemental disclosure of significant non-cash investing and financing activities: | ||||
Income taxes paid | (1,213,913) | (190,489) | (741,490) | (557,295) |
Interest paid (not including interest paid to investors of consolidated trusts) | (13,757) | (2,159) | (5,728) | (65,776) |
Payables for dividends: | 276,991 | $ 43,466 | ||
Reconciliation to amounts on consolidated balance sheets: | ||||
Cash and cash equivalents | 6,116,360 | 4,418,416 | 2,108,123 | |
Restricted cash | 2,643,587 | 2,355,850 | 1,727,727 | |
Total cash, cash equivalents, and restricted cash | ¥ 8,759,947 | ¥ 6,774,266 | ¥ 3,835,850 |
ORGANIZATION AND PRINCIPAL ACTI
ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended |
Dec. 31, 2021 | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES 360 DigiTech, Inc. (the “Company”, previously known as “360 Finance, Inc.”) was incorporated in Cayman Islands with limited liability on April 27, 2018. The Company, its subsidiaries, its consolidated variable interest entities (“VIEs”) (collectively the “Group”) are engaged in matching borrowers with credit demand to a diversified pool of financial institutions with credit to supply through a financial technology platform. The Company’s significant subsidiaries and its consolidated VIEs as of December 31, 2021 are as follows: Date of Place of Incorporation Incorporation Subsidiaries HK Qirui International Technology Company Limited (“HK Qirui”) June 14, 2018 Hong Kong Shanghai Qiyue Information & Technology Co., Ltd. (“Qiyue”) August 7, 2018 PRC Shanghai Qidi Information Technology Co., Ltd. (“Qidi”) June 27, 2019 PRC Beihai Qicheng Information & Technology Co., Ltd. (“Qicheng”) August 6, 2019 PRC VIEs and VIEs Subsidiaries Shanghai Qiyu Information & Technology Co., Ltd. (“Qiyu”) July 25, 2016 PRC Fuzhou 360 Online Microcredit Co., Ltd. (“Fuzhou Microcredit”) March 30, 2017 PRC Fuzhou 360 Financing Guarantee Co., Ltd. (“Fuzhou Guarantee”) June 29, 2018 PRC Shanghai 360 Financing Guarantee Co., Ltd. (“Shanghai Guarantee”) May 20, 2019 PRC History of the Group and reorganization under identical common ownership The Group started its business in 2016 through Qiyu, a limited liability company in the People’s Republic of China (“PRC”). In 2018, the Company undertook a series of transactions to redomicile its business from the PRC to the Cayman Islands and established intermediary companies of HK Qirui and Qiyue (“WFOE”) for the purpose of establishing a VIE structure of the Group. The WFOE entered into VIE agreements which effectively provided control to the WFOE over the operations of the VIEs. The VIE arrangement PRC laws and regulations prohibit or restrict foreign control of companies involved in provision of internet content and certain finance business. To comply with these foreign ownership restrictions, the Company operates substantially all of its service through its VIEs in the PRC. The VIEs hold leases and other assets necessary to provide services and generate the majority of the Company’s revenues. To provide the Company effective control over the VIEs and the ability to receive substantially all of the economic benefits of the VIEs, a series of contractual arrangements were entered into amongst WFOE, VIEs and their beneficial shareholders. Agreements that were entered to provide the Company effective control over the VIEs Powers of Attorney Pursuant to these powers of attorney, Shanghai Qibutianxia Information Technology Co., Ltd. (formerly known as Beijing Qibutianxia Technology Co., Ltd., “Qibutianxia”), the shareholder of Qiyu, authorized the WFOE or any person it designates to act as its attorney-in-fact to exercise all of its rights as a shareholder of Qiyu, including, but not limited to, the right to convene and attend shareholders’ meetings, vote on any resolution that requires a shareholder vote, such as the appointment and removal of directors, supervisors and officers, as well as the sale, transfer and disposal of all or part of the equity interests owned by Qibutianxia in Qiyu. The power of attorney will remain effective for the duration of the existence of Qibutianxia. 1. ORGANIZATION AND PRINCIPAL ACTIVITIES - continued The VIE arrangement - continued Exclusive Option Agreement Pursuant to the exclusive option agreement entered into among WFOE, Qiyu and Qibutianxia. Qibutianxia irrevocably grants the WFOE an exclusive option to purchase or designate one or more persons to purchase, all or part of its equity interests in Qiyu, and Qiyu irrevocably grants the WFOE an exclusive option to purchase all or part of its assets, subject to applicable PRC laws. The WFOE or its designated person may exercise such options at the lowest price permitted under applicable PRC laws. Qibutianxia and Qiyu will undertake that, without the WFOE’s prior written consent, they will not, among other things, (i) create any pledge or encumbrance on any of Qiyu’s assets (ii) transfer or otherwise dispose of Qiyu’s assets, (iii) change Qiyu’s registered capital, (iv) amend Qiyu’s articles of association, (v) dispose of Qiyu’s assets or beneficial interest or (vi) merge Qiyu with any other entity. Unless WFOE terminates this agreement in advance, this agreement will remain effective for 10 years and will be automatically renewed for in a 10-year cycle unless such renewal was objected by the WFOE in writing. Other parties to this agreement may not terminate this agreement unilaterally. Agreements that were entered to transfer economic benefits to the Company Exclusive Consultation and Services Agreement Pursuant to the exclusive consultation and services agreement between the WFOE and Qiyu, the WFOE has the exclusive right to provide Qiyu with the consulting and technical services required by Qiyu’s business. Qiyu shall pay the WFOE service fee at the amount which is adjusted at the WFOE’s sole discretion. To guarantee Qiyu’s performance of its obligations thereunder, Qibutianxia would pledge its equity interests in Qiyu to the WFOE pursuant to the equity interest pledge agreement. Unless the WFOE terminates this agreement in advance, this agreement will remain effective for 10 years and will be automatically renewed for in a 10-year cycle unless such renewal was objected by the WFOE in writing. Loan Agreement Pursuant to the loan agreement among the WFOE, Qiyu and Qibutianxia, the WFOE is entitled to provide interest-free loans from time to time to Qibutianxia for the purpose of Qiyu’s business operation and development. Each of the loans made under this loan agreement has no fixed term, and unless otherwise agreed, the WFOE shall unilaterally decide when to withdraw the loans, provided that a one month notice is given. The loan agreement shall remain in effect during Qiyu’s term (and any renewable term provided by the PRC law), and shall automatically terminate after the WFOE and/or other entities designated by the WFOE fully exercise all their rights under the exclusive option agreement. Equity Pledge Agreement Pursuant to the equity pledge agreement, Qibutianxia shall pledge 100% equity interests in Qiyu to the WFOE to guarantee the performance by Qibutianxia of its obligations under the exclusive option agreement and the powers of attorney, as well as the performance by Qiyu of its obligations under the exclusive option agreement, the powers of attorney and the exclusive consultation and service agreement (collectively, “Master Agreements”). In the event of a breach by Qiyu or Qibutianxia of contractual obligations under the Master Agreements, the WFOE, as pledgee, will have the right to dispose of the pledged equity interests in Qiyu. Qibutianxia will also undertake that, without the prior written consent of the WFOE, it will not dispose of, create or allow any encumbrance on the pledged equity interests. The Company also has some other sets of VIE contractual arrangements. The arrangements with its significant VIEs include 1) the arrangement among the WFOE, Fuzhou Guarantee and two fully owned subsidiaries of Qibutianxia, and 2) the arrangement among the WFOE, Shanghai Guarantee and two fully owned subsidiaries of Qibutianxia. These sets of the contractual agreements are substantially similar to the set with Qiyu as described above. 1. ORGANIZATION AND PRINCIPAL ACTIVITIES – continued The VIE arrangement – continued In April 2021, the contractual arrangements amongst WFOE, Fuzhou Microcredit and Qibutianxia were terminated and Qibutianxia transferred all of its equity interest in Fuzhou Microcredit to Qiyu. As a result, Fuzhou Microcredit became a wholly-owned subsidiary of Qiyu. This transaction had no impact to the consolidated financial statements. Risks in relation to VIE structure The Company believes that the contractual arrangements with Qiyu, Fuzhou Guarantee, Shanghai Guarantee and their shareholders, Qibutianxia, are in compliance with existing PRC laws and regulations and are valid, binding and enforceable and will not result in any violation of PRC laws or regulations and the PRC regulatory authorities may take a contrary view. If the legal structure and contractual arrangements were found to be in violation of any existing PRC laws and regulations, the regulatory authorities may exercise their discretion and: ● revoke the business and operating licenses of the Company’s PRC subsidiaries or consolidated affiliated entities; ● restrict the rights to collect revenues from any of the Company’s PRC subsidiaries; ● discontinue or restrict the operations of any related-party transactions among the Company’s PRC subsidiaries or consolidated affiliated entities; ● require the Company’s PRC subsidiaries or consolidated affiliated entities to restructure the relevant ownership structure or operations; ● take other regulatory or enforcement action is, including levying fines that could be harmful to the Company’s business; or ● impose additional conditions or requirements with which the Company may not be able to comply. The imposition of any of these penalties may result in a material adverse effect on the Company’s ability to conduct its business. In addition, if the imposition of any of these penalties causes the Company to lose the rights to direct the activities of the VIEs or the right to receive substantially all of their economic benefits, the Company would no longer be able to consolidate the financial results of the VIEs. These contractual arrangements allow the Company to effectively control Qiyu, Fuzhou Guarantee and Shanghai Guarantee, and to derive substantially all of the economic benefits from them. Accordingly, the Company treats Qiyu, Fuzhou Guarantee and Shanghai Guarantee as VIEs. Because the Company is the primary beneficiary, the Company has consolidated the financial results of the VIEs. 1. ORGANIZATION AND PRINCIPAL ACTIVITIES – continued The VIE arrangement Risks in relation to VIE structure – continued The following financial statement amounts and balances of the VIEs were included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances. The table below does not include the financial information of the consolidated trusts (see note 2 “Consolidated Trusts”): December 31, December 31, 2020 2021 RMB RMB ASSETS Cash and cash equivalents 3,709,740 4,605,851 Restricted cash 2,006,874 1,986,512 Security deposit prepaid to third-party guarantee companies 915,144 874,886 Funds receivable from third party payment service providers 131,464 153,151 Accounts receivable and contract assets, net 2,316,357 2,133,477 Financial assets receivable, net 3,480,605 3,806,243 Amounts due from related parties 178,791 608,924 Loans receivable, net 1,018,124 1,197,532 Prepaid expenses and other assets 202,070 235,780 Accounts receivable and contract assets, net-non current 307,937 217,298 Financial assets receivable, net-non current 645,326 597,965 Amounts due from related parties, non-current — 121,855 Loans receivable, net-non current 50,528 1,029,545 Property and equipment, net 15,370 15,074 Land use rights, net — 1,018,908 Intangible assets 1,802 3,972 Deferred tax assets 1,353,420 779,291 Other non-current assets 31,539 27,729 Total Assets 16,365,091 19,413,993 LIABILITIES Accrued expenses and other current liabilities 771,562 1,820,609 Amounts due to related parties 71,562 94,057 Short term loans 105,238 150,000 Guarantee liabilities 7,724,841 8,103,225 Income tax payable 1,151,275 449,553 Other tax payable 215,906 218,017 Deferred tax liabilities 37,843 65,542 Other long-term liabilities 6,806 10,271 Total liabilities 10,085,033 10,911,274 Year ended Year ended Year ended December 31, 2019 December 31, 2020 December 31, 2021 RMB RMB RMB Net revenue 7,318,362 11,062,032 13,674,223 Net income 1,707,839 2,541,386 5,462,150 1. ORGANIZATION AND PRINCIPAL ACTIVITIES – continued The VIE arrangement Risks in relation to VIE structure – continued Year ended Year ended Year ended December 31, 2019 December 31, 2020 December 31, 2021 RMB RMB RMB Net cash provided by operating activities 2,010,741 3,715,112 5,431,654 Net cash provided by (used in) investing activities 134,286 (1,012,415) (1,427,958) Net cash provided by (used in) financing activities 198,242 (94,762) 359,082 The consolidated VIEs contributed 79%, 82% and 82% of the Group’s consolidated revenue for the years ended December 31, 2019, 2020 and 2021, respectively. As of December 31, 2020 and 2021, the consolidated VIEs accounted for an aggregate of 67% and 58%, respectively, of the consolidated total assets, and 68% and 60%, respectively, of the consolidated total liabilities. There are no consolidated assets of the VIEs that are collateral for the obligations of the VIEs and their subsidiaries and can only be used to settle the obligations of the VIEs and their subsidiaries. There are no terms in any arrangements, considering both explicit arrangements and implicit variable interests that require the Company or its subsidiaries to provide financial support to the VIEs. However, if the VIEs ever need financial support, the Company or its subsidiaries may, at its option and subject to statutory limits and restrictions, provide financial support to its VIEs through loans to the shareholder of the VIEs. Relevant PRC laws and regulations restrict the VIEs from transferring a portion of their net assets, equivalent to the balance of its statutory reserve and its share capital, to the Company in the form of loans and advances or cash dividends. Please refer to Note 14 for disclosure of restricted net assets. |
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 accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). Basis of consolidation The accompanying consolidated financial statements include the financial statements of the Company, its subsidiaries, and consolidated VIEs. All inter-company transactions and balances have been eliminated. Consolidated Trusts Loans funded by the funding partners in the Group’s loan facilitation business are typically disbursed to the borrowers directly from such partners. However, due to the need of certain funding partners, loans from such financial institutional partners are funded and disbursed indirectly through trusts and asset management plans (collectively the “Trusts”). Since November 2017, several Trusts were formed by third-party trust companies and asset management companies, who administer the Trusts. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Consolidated Trusts The Trusts fund loans facilitated by the Group using the funds received from its beneficiaries to the borrowers. The Trusts provide the returns to its beneficiaries through interest payments made by the borrowers. The borrowers are charged with the interests by the Trusts. For the majority of trust, the Group is either entitled to the residual profit in the Trusts or the Group has provided guarantee to the Trusts by agreeing to repurchase any loans that are delinquent for 30 to 90 days from which the Group absorbs the credit risk of the Trusts resulting from borrowers’ delinquencies. The Group determined that the residual profit or the guarantee represents a variable interest in the Trusts through which the Group has the right to receive benefits or the obligation to absorb losses from the Trusts that could potentially be significant to the Trusts. Since the Trusts only invest in the loans facilitated by the Group and the Group continues to service the loans through a service agreement post origination and has the ability to direct default mitigation activities, the Group has the power to direct the activities of the Trusts that most significantly impact the economic performance of the Trusts. As a result, the Group is considered the primary beneficiary of the Trusts and consolidated the Trusts’ assets, liabilities, results of operations and cash flows. In 2019, the Group received letter of approval for listing and transferring assets based securities (“ABS”) on both Shanghai Stock Exchange and Shenzhen Stock Exchange within the issue scale of RMB 5 billion for each, respectively. In 2020, the Group also received letter of approval for listing and transferring assets based securities (“ABS”) on Shenzhen Stock Exchange within the issue scale of RMB 10 billion. In 2021, the Group also received letter of approval for listing and transferring assets based securities (“ABS”) on Shanghai Stock Exchange and Shenzhen Stock Exchange within the issue scale of RMB 8 billion and RMB 4 billion, respectively. The beneficial rights of RMB 2.3 billion, 1.7 billion and 4.7 billion in trusts were transferred to trust beneficial right asset backed special plans (the “ABS plans”) for the years ended December 31, 2019, 2020 and 2021. The ABS plans were securitized and listed on Shanghai Stock Exchange and Shenzhen Stock Exchange, with terms of one As of December 31, 2020 and 2021, the balance of delinquent loans repurchased by the Group from the consolidated trusts are RMB 831,203 and RMB 904,586, respectively. As of December 31, 2020 and 2021, the balance of performing loans upon liquidation of certain consolidated trusts repurchased by the Group from the consolidated trusts per the contracts agreed with the counterparty are RMB 17,185 and RMB 12,686, respectively. For the years ended December 31, 2019, 2020 and 2021, the provision for loan losses of RMB 464,379, RMB 595,047 and RMB 661,402 were charged to the consolidated statements of comprehensive income, respectively. There were RMB 142,882, RMB 603,758 and RMB 1,033,228 of loans written off for the years ended December 31, 2019, 2020 and 2021, respectively. Interest on loans receivable is accrued and credited to income as earned. The Group determines a loan’s past due status by the number of days that have elapsed since a borrower has failed to make a contractual loan payment. Accrual of interest is generally discontinued when the loan principal and interest are deemed to be uncollectible. In general, loans receivable is identified as uncollectible when it is determined to be not probable that the balance can be collected. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Consolidated Trusts The following financial statement amounts and balances of the consolidated trusts were included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances: December 31, 2020 December 31, 2021 RMB RMB ASSETS Restricted cash 348,976 657,075 Loans receivable, net 6,447,233 8,646,950 Prepaid expenses and other assets 101,729 104,515 Loans receivable, net-noncurrent 37,157 1,829,804 Total Assets 6,935,095 11,238,344 December 31, 2020 December 31, 2021 RMB RMB LIABILITIES Payable to investors of the consolidated trusts-current 3,117,634 2,304,518 Accrued expenses and other current liabilities 9,608 5,928 Other tax payable 27,694 34,448 Payable to investors of the consolidated trusts-noncurrent 1,468,890 4,010,597 Total liabilities 4,623,826 6,355,491 Year ended Year ended Year ended December 31, December 31, December 31, 2019 2020 2021 RMB RMB RMB Net revenue 1,279,203 2,089,679 1,704,267 Net income 469,825 899,010 708,908 Year ended Year ended Year ended December 31, December 31, December 31, 2019 2020 2021 RMB RMB RMB Net cash provided by (used in) operating activities 382,620 (674,291) 1,329,554 Net cash (used in) provided by investing activities (8,989,137) 1,964,538 (4,619,696) Net cash provided by (used in) financing activities 7,512,696 (3,268,383) 1,735,348 The consolidated trusts contributed 14%, 15% and 10% of the Group’s consolidated revenue for the years ended 2019, 2020 and 2021, respectively. As of December 31, 2020 and December 31, 2021, the consolidated trusts accounted for an aggregate of 28% and 34%, respectively, of the consolidated total assets, and 31% and 35% respectively, of the consolidated total liabilities. There are no terms in any arrangements, considering both explicit arrangements and implicit variable interests that require the Company to provide financial support to the consolidated trusts. The Group believes that the assets of the consolidated trusts could only be used to settle the obligations of the consolidated trusts. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from such estimates. Significant accounting estimates reflected in the Group’s financial statements include revenue recognition, financial assets receivable guarantee liabilities, allowance for loans receivable, allowance for uncollectible accounts receivable and contract assets, allowance for financial assets receivable, and valuation allowance for deferred tax assets. Revenue recognition Through its app and channel partners, the Group provides services through its facilitation of loan transactions between the borrowers and the funding partners through the use of two business models. The first business model involves the Group providing credit driven services through facilitating loans that are guaranteed by the Group directly or through third-party guarantee companies and insurance companies (referred to as “off-balance capital heavy loans” hereafter), or providing loans through the Consolidated Trusts and Fuzhou Microcredit. In either cases, the Group ultimately bears all the credit risks when the borrowers default. The second business model involves the Group providing platform services through facilitating loans with no or partial guarantee provided by the Group (referred to as “capital light loans” hereafter) and referral services. In these cases, the Group bears limited credit risks when the borrowers default. The loans facilitated under both models are with terms of 1~36months (the majority are within the terms of 1~12 months) and with principal of up to RMB500. Loan facilitation and servicing fees The Group earns loan facilitation and service fees from both off-balance capital heavy loans and capital light loans. The Group’s services mainly consist of: 1) Performing customer acquisition, initial credit screening and advanced risk assessment on the borrowers on its mobile platform and matching the funding partners to potential qualified borrowers and facilitating the execution of loan agreements between the parties, referred to as “Loan Facilitation Services” and; 2) Providing collection and other repayment processing services for the funding partners over the loan term, referred to as “Post Facilitation Services”; Based on the agreements entered into between the Group’s funding partners and borrowers, the Group determined that it is not the legal lender or borrower in the loan origination and repayment process. Accordingly, the Group does not record loans receivable and payable arising from the loan between the funding partner and the borrowers. The Group charges service fees directly from financial institutional partner based on the contractual agreements. In 2019, the Group started cooperating with insurance companies to provide guarantee for the loans between the borrowers and funding partners. The Group charges guarantee fees from the borrower, including insurance premium collected on behalf of the insurance company. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued Revenue recognition - Loan facilitation and servicing fees – For the loans the Group is entitled to the full service fee regardless of whether the borrowers choose to early repay or not, the Group has the unconditional right to the consideration. For the loans facilitated with borrowers who have the option of early repayment and upon termination they do not have the obligation to pay the remaining monthly service fees or not have to pay the excessive portion if the total fees are more than 36% of the origination principal on an annualized basis, the Group’s right to consideration for the service fees of facilitation service is conditional on whether or not the borrowers repay in advance. For off-balance capital heavy loans, the Group enjoys a fixed rate of service fees. For capital light loans, the service fee rate the Group entitled to is subject to adjustment based on the actual default rate of the underlying loans. Under the off-balance capital heavy loans, the Group also provides a guarantee service to its funding partners whereas in the event of default, the funding partners are entitled to receive unpaid interest and principal from the Group. Given that the Group effectively takes on all of the credit risk of the borrowers and are compensated by the service fees charged, the guarantee is deemed as a service and the guarantee exposure is recognized as a stand-ready obligation in accordance with ASC Topic 460, Guarantees (see accounting policy for Guarantee Liabilities). Under the capital light model, the Group either provides no guarantee or partial guarantee service. Under the partial guarantee scenario, the Group agrees with each institutional funding partner a fixed upper limit of guarantee amount the Group is liable of. If the accumulated defaulted loan amount exceeds the agreed upper limit, the excess portion is borne by the institutional funding partner. The Group recognize revenue to depict the transfer of promised services to customers in an amount that reflects the consideration to which the Group expects to be entitled in exchange for those services. To achieve that core principle, the Group applies the following steps: ● Step 1: Identify the contract (s) with a customer ● Step 2: Identify the performance obligations in the contract ● Step 3: Determine the transaction price ● Step 4: Allocate the transaction price to the performance obligations in the contract ● Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation The Group determines that both the funding partners and the borrowers are its customers because they both receive services provided by the Group pursuant to the contractual terms among the Group, the borrowers and the funding partners. For each loan facilitated on the platform, the Group considers the loan facilitation service, post facilitation service and guarantee service (not applicable for arrangements where the Group does not provide guarantee service) as three separate services. Of which, the guarantee service is accounted for in accordance with ASC Topic 460, Guarantees, at fair value. Revenue from the guarantee services is recognized once the Group is released from the underlying risk. Starting from 2020, the Group recognized the stand-ready guarantee liability at the inception of each loan, and it was amortized to “revenue from releasing of guarantee liabilities” over the term of the guarantee (see accounting policy for Guarantee Liabilities).While the post- facilitation service is within the scope of ASC Topic 860, the ASC Topic 606 revenue recognition model is applied due to the lack of definitive guidance in ASC Topic 860. The loan facilitation service and post- facilitation service are two separate performance obligations under ASC 606, as these two deliverables are distinct in that customers can benefit from each service on its own and the Group’s promises to deliver the services are separately identifiable from each other in the contract. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenue recognition - Loan facilitation and servicing fees The Group determines the total transaction price to be the service fees chargeable from the borrowers or the funding partners. The Group’s transaction price includes variable considerations in the form of prepayment risk of the borrowers and service fee allocation rate under capital light model under certain agreements. The Group estimates the prepayment risk of borrowers using the expected value approach on the basis of historical information and current trends of the collection percentage of the borrowers. The service fee allocated to the Group under capital light model would be fluctuated along with the actual default rate of the loans facilitated. The Group uses the service fee allocation rate applicable to the estimated default rate of the underlying loans. The transaction price is allocated amongst the guarantee service, if any, and the other two performance obligations. The Group first allocates the transaction price to the guarantee liabilities, if any, in accordance with ASC Topic 460, Guarantees which requires the guarantee to be measured initially at fair value based on the stand-ready obligation. Then the remaining considerations are allocated to the loan facilitation services and post facilitation services using their relative standalone selling prices consistent with the guidance in ASC 606. The Group does not have observable standalone selling price information for the loan facilitation services or post facilitation services because it does not provide loan facilitation services or post facilitation services on a standalone basis. There is no direct observable standalone selling price for similar services in the market reasonably available to the Group. As a result, the estimation of standalone selling price involves significant judgment. The Group uses expected cost plus margin approach to estimate the standalone selling prices of loan facilitation services and post facilitation services as the basis of revenue allocation. In estimating its standalone selling price for the loan facilitation services and post facilitation services, the Group considers the cost incurred to deliver such services, profit margin for similar arrangements, customer demand, effect of competitors on the Group’s services, and other market factors. For each type of service, the Group recognizes revenue when (or as) the entity satisfies the service/ performance obligation by transferring the promised service (that is, an asset) to customers. Revenues from loan facilitation services are recognized at the time a loan is originated between the funding partners and the borrowers and the principal loan balance is transferred to the borrowers, at which time the facilitation service is considered completed. Revenues from post facilitation services are recognized on a straight-line basis over the term of the underlying loans as the post- facilitation services are a series of distinct services that are substantially the same and that have the same pattern of transfer to the funding partners. Revenue from releasing of guarantee liabilities Prior to 2020, guarantee liabilities were reduced by repayments for defaults and only the remaining balance at the expiry of the guarantee term was recognized as revenues from guarantee services. With the adoption of ASC 326 in 2020, the stand-ready guarantee liabilities are released into guarantee revenue over the term of the guarantee (see accounting policy for Guarantee Liabilities). For the years ended December 2019, 2020 and 2021, revenue from guarantee liabilities were RMB 285,407, RMB 4,506,935 and RMB 5,583,135, respectively. Incentives The Group provides incentives to the borrowers by providing coupons which can only be used as a reduction of repayment and ultimately reduced the service fees received by the Group. Because the borrower does not enter into any enforceable commitment by picking up the coupons, no contract arises from the coupons. Therefore the Group records the incentives as a deduction to revenue upon redemption. Financing income The Group provides loans through the Consolidated Trusts and Fuzhou Microcredit. The interest rate charged to the borrowers are fixed. The Group recognized revenue under “financing income” the fees and interests charged to the borrowers over the lifetime of the loans using the effective interest method. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenue recognition - Referral service fees The Group provides the referral services to other platforms, by referring to them the borrowers who have not passed the Group’s credit assessment. Specifically, the Group receives a fixed rate of referral fee from the platforms once the borrowers are accepted by the other funding providers on those platforms. The revenue is recognized once the referral is completed as confirmed by those platforms. The Group provides the referral services to the financial institutional partner also through the Group’s Intelligence Credit Engine platform, by matching the borrowers and the financial institutional partner. For loans originated through the platform, the Group charges the financial institutional partner a fixed rate of service fees. The revenue is recognized upon receipt of confirmation by the financial institutional partner of loan facilitation at which time the referral service is deemed completed. For the years ended December 31, 2019, 2020 and 2021, RMB 375,551, RMB 265,300 and RMB 620,317 were generated from the referral service, respectively. Other service fees Other service fees mainly pertain to the revenue from late fees from borrowers under off-balance capital heavy loans and capital light loans. The following table presents the disaggregation of revenue for the years ended December 31, 2019, 2020 and 2021: Year ended Year ended Year ended Year ended December December December December 31, 2019 31, 2020 31, 2021 31, 2021 RMB RMB RMB USD Credit driven services 8,013,391 11,403,675 10,189,167 1,598,902 Loan facilitation and servicing fees-capital heavy 6,273,131 4,596,555 2,326,027 365,004 Revenue from loan facilitation services 4,396,300 3,160,457 1,399,310 219,582 Revenue from post-facilitation services 1,876,831 1,436,098 926,717 145,422 Financing income 1,309,616 2,184,180 2,184,128 342,737 Revenue from releasing of guarantee liabilities 285,407 4,506,935 5,583,135 876,116 Other services fees 145,237 116,005 95,877 15,045 Platform services 1,206,456 2,160,279 6,446,478 1,011,593 Loan facilitation and servicing fees-capital light 814,581 1,826,654 5,677,941 890,993 Revenue from loan facilitation services 672,982 1,416,715 4,484,632 703,737 Revenue from post-facilitation services 141,599 409,939 1,193,309 187,256 Referral services fees 375,551 265,300 620,317 97,341 Other services fees 16,324 68,325 148,220 23,259 Total net revenue 9,219,847 13,563,954 16,635,645 2,610,495 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenue recognition - Accounts receivable and Contract Assets, net For the loans the Group is entitled to the full service fee regardless of whether the borrowers choose to early repay or not, the Group has the unconditional right to the consideration and an accounts receivable is recorded for the monthly service fees allocated to loan facilitation service that have already been delivered in relation to loans facilitated on the Group’s platform when recognizing revenue from loan facilitation service. For the loans facilitated with borrowers who have the option of early repayment and upon termination they do not have the obligation to pay the remaining monthly service fees or do not have to pay the excessive portion if the total fees are more than 36% of the origination principal on an annualized basis, the Group’s right to consideration for the service fees of facilitation service is conditional on whether or not the borrowers repay in advance. In these instances, the Group records a corresponding contract asset when recognizing revenue from loan facilitation service. Accounts receivable and contract assets are stated at the historical carrying amount net of write-offs and allowance for collectability in accordance with ASC Topic 310, and from January 1, 2020 ASC Topic 326. The Group established an allowance for uncollectible accounts receivable and contract assets based on estimates, which incorporate historical experience and other factors surrounding the credit risk of specific type of customers which is essentially the expected net default rates used in determining the fair value of guarantee liabilities. The Group evaluates and adjusts its allowance for uncollectible accounts receivable and contract assets on a quarterly basis or more often as necessary. Uncollectible accounts receivable and contract assets are written off when the consideration entitled to be received by the Group is due and a settlement is reached for an amount that is less than the outstanding historical balance or when the Group has determined the balance will not be collected. Contract assets and accounts receivable are identified as uncollectible when the underlying loan is determined to be not probable that the balance can be collected. The Group will write off contract assets and accounts receivable and the corresponding provisions if the underlying loan is deemed uncollectible. The Group did not recognize any contract liabilities during the periods presented. The amount of the transaction price allocated to performance obligations that are unsatisfied as of December 31, 2020 and 2021 are RMB 1,195,945 and RMB 1,637,484, respectively, all of which pertain to post- facilitation service. Remaining unsatisfied performance obligations that will be recognized as revenue by the Group within the following 12 months are 88% and 88% of the remaining performance obligations as of December 31, 2020 and 2021 respectively, with the remainder recognized thereafter. The Group determines that acquisition cost paid for financial institutional partner based on the amount of loans facilitated represents costs to obtain a contract qualifying for capitalization since these payments are directly related to sales achieved during a period. Such cost was not material during the periods presented. Revenue recognized for year ended December 31, 2019 from performance obligations satisfied (or partially satisfied) in prior periods pertaining to adjustments to variable consideration due to the change of estimated prepayment rate and service fee allocation rate was immaterial, and for year ended December 31, 2020 and 2021 was RMB 73,394 and RMB 210,818, respectively. The Group is subject to value-added tax and other surcharges including education surtax and urban maintenance and construction tax, on the services provided in the PRC. The Group has made an accounting policy election to exclude from the measurement of the transaction price all taxes assessed by the governmental authority. Such taxes excluded from revenues are RMB 547,344, RMB 795,388 and RMB 995,060, respectively, for the years ended December 31, 2019, 2020 and 2021. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Allowance for credit losses On January 1, 2020, the Group adopted ASC 326, Financial Instruments—Credit Losses, which requires recognition of allowances upon origination or acquisition of financial assets at an estimate of expected credit losses over the contractual term of the financial assets (the current expected credit loss or the “CECL” model). The Group’s financial assets subject to the CECL model mainly include: loans receivable, accounts receivable, contract assets and financial assets receivable, and the allowance for these financial assets is driven by estimated default rate of underlying loans. The Group does not assign internal risk ratings to loans facilitated as they are of small balance and homogeneous. The Group estimates the default rate of loans on a pool basis by taking into consideration the historical delinquency rate by vintage, adjusted by specific risks for loans within each vintage, correlated industrial and macro-economic factors, and other pertinent information such as CPI and delinquent loan collection rate in assessing future performance of the loan portfolio. The Group monitors the delinquency status by vintage of origination and write off delinquent loans timely when the loans become uncollectible. The adoption of CECL model does not change the Group’s method used to estimate loan losses. The allowance for loans receivable is calculated based on estimated default rate of loans facilitated through the Consolidated Trusts or Fuzhou Microcredit. The allowance for accounts receivable, contract assets and financial assets receivable is assessed in accordance with the estimated default rate of the underlying off-balance loans facilitated. Since the allowance is recorded at loan inception based on the estimated collectability over the entire loan tenure and adjusted in each subsequent reporting period based on update of relevant information, the adoption of the CECL model does not have material impact on the timing and amount of allowance recognized for these financial assets. Other financial receivables subject to the CECL model mainly include security deposit prepaid to third party guarantee companies, funds receivable from third party payment service providers, receivables from related parties, and security deposit paid to insurance companies, which are of short term and shows no historical default record. The Group determines no allowance is needed for these receivables, except for receivables from related parties as funding partners, which are based on the estimated default rate of underlying loans as discussed above. The adoption of ASC 326 also requires the Group to record financial guarantee on a gross basis. As such, the Group recognized a separate contingent guarantee liability with an allowance for credit losses following the CECL model at the inception of loans facilitated with guarantee services provided (see accounting policy for Guarantee Liabilities). The allowance is an estimate of future net-payout by the Group upon borrowers’ default, which is ultimately based on the same estimated default rate of loans facilitated as discussed above. Cash and cash equivalents Cash and cash equivalents mainly consist of funds in banks, which are highly liquid and are unrestricted as to withdrawal or use. Restricted cash Restricted cash represents: (i) Deposit to funding banks which is used to secure timely loan repayment. As of December 31, 2020 and 2021, the amount of restricted cash related to deposit to the funding banks is RMB 2,006,874 and RMB 1,986,512 , respectively. (ii) Cash held by the trusts and assets management plans through segregated bank accounts which can only be used to invest in loans or other securities as stipulated in the trust agreement. The trusts have a maximum operating period of two years . The cash in the trusts is not available to fund the general liquidity needs of the Group. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Security deposit prepaid to third-party guarantee companies Security deposit prepaid to third-party guarantee companies mainly represents deposit prepaid to licensed third-party vendors the Group cooperates with to provide guarantee to secure timely loan repayment for funding partners. Funds receivable from third party payment service providers The Group opened accounts with third party online payment service providers to collect and transfer the loan funds and interest to financial institutional partner or borrowers. The Group also uses such accounts to collect the transaction fee and service fee, and repay and collect the default loan principal and interest. The balance of funds receivable from third party payment service providers mainly includes (a) Funds provided by Fuzhou Microcredit but not yet transferred to the borrowers by third party payment service providers due to the settlement time lag; (b) Repayment of loan principal and interest amounts received from the borrowers but not yet transferred to the investors by third party payment service providers due to the settlement time lag; and, (c) Accumulated amounts of transaction fee, service fee received, payment and collection of default loan and interest at the balance sheet date. Fair value Fair value is considered to be the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. Authoritative literature provides a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The carrying values of financial instruments, which consist of cash and cash equivalents, restricted cash, security deposits, accounts receivable and contr |
ACCOUNTS RECEIVABLE AND CONTRAC
ACCOUNTS RECEIVABLE AND CONTRACT ASSETS, NET | 12 Months Ended |
Dec. 31, 2021 | |
ACCOUNTS RECEIVABLE AND CONTRACT ASSETS, NET. | |
ACCOUNTS RECEIVABLE AND CONTRACT ASSETS, NET | 3. ACCOUNTS RECEIVABLE AND CONTRACT ASSETS, NET The Group’s accounts receivable as of December 31, 2020 and 2021 are as follows: Allowance for Accounts uncollectible Accounts As of December 31, 2020 receivable Accounts receivable receivable, net Accounts receivable from loan facilitation service 151,004 (17,462) 133,542 Accounts receivable from post facilitation service 21,170 (3,958) 17,212 Accounts receivable from referral services 12,180 (1,836) 10,344 Total 184,354 (23,256) 161,098 Allowance for Accounts uncollectible Accounts As of December 31, 2021 receivable Accounts receivable receivable, net Accounts receivable from loan facilitation service 502 (375) 127 Accounts receivable from post facilitation service 5,825 (1,683) 4,142 Accounts receivable from referral services 10,797 — 10,797 Total 17,124 (2,058) 15,066 The movement of allowance for uncollectible accounts receivables for the years ended December 31, 2019, 2020 and 2021 are as follows: Opening Ending balance as of Current Write off in balance as of January 1, year net the current December 31, 2019 provision year 2019 Accounts receivable from loan facilitation service 77,152 171,602 (64,329) 184,425 Accounts receivable from post facilitation service 4,184 12,779 (16,690) 273 Total 81,336 184,381 (81,019) 184,698 Opening Ending balance as of Current Write off in balance as of January 1, year net the current December 31, 2020 provision year 2020 Accounts receivable from loan facilitation service 184,425 (102,832) (64,131) 17,462 Accounts receivable from post facilitation service 273 33,241 (29,556) 3,958 Accounts receivable from referral services — 1,836 — 1,836 Total 184,698 (67,755) (93,687) 23,256 Opening Ending balance as of Current Write off in balance as of January 1, year net the current December 31, 2021 provision year 2021 Accounts receivable from loan facilitation service 17,462 (11,309) (5,778) 375 Accounts receivable from post facilitation service 3,958 1,732 (4,007) 1,683 Accounts receivable from referral services 1,836 — (1,836) — Total 23,256 (9,577) (11,621) 2,058 3. ACCOUNTS RECEIVABLE AND CONTRACT ASSETS, NET - continued The Group’s contract assets as of December 31, 2020 and 2021 are as follows: Allowance for Uncollectible Contract assets, As of December 31, 2020 Contract assets Contract assets net Contract assets from loan facilitation service 2,714,861 (222,526) 2,492,335 Contract assets from post facilitation service 29,259 (10,045) 19,214 Contract assets from referral services 29,818 — 29,818 Total 2,773,938 (232,571) 2,541,367 Allowance for Uncollectible Contract assets, As of December 31, 2021 Contract assets Contract assets net Contract assets from loan facilitation service 3,097,872 (287,397) 2,810,475 Contract assets from post facilitation service 282,767 (26,457) 256,310 Contract assets from referral services 238,877 — 238,877 Total 3,619,516 (313,854) 3,305,662 The movement of allowance for uncollectible contract assets for the years ended December 31, 2019, 2020 and 2021 are as follows: Opening Ending balance as of Current Write off in balance as of January 1, year net the current December 31, 2019 provision year 2019 Contract assets from loan facilitation service 758 8,895 (2,991) 6,662 Contract assets from post facilitation service 421 1,728 (1,918) 231 Total 1,179 10,623 (4,909) 6,893 Opening Ending balance as of Current Write off in balance as of January 1, year net the current December 31, 2020 provision year 2020 Contract assets from loan facilitation service 6,662 220,582 (4,718) 222,526 Contract assets from post facilitation service 231 11,217 (1,403) 10,045 Total 6,893 231,799 (6,121) 232,571 Opening Ending balance as of Current Write off in balance as of January 1, year net the current December 31, 2021 provision year 2021 Contract assets from loan facilitation service 222,526 157,708 (92,837) 287,397 Contract assets from post facilitation service 10,045 52,379 (35,967) 26,457 Total 232,571 210,087 (128,804) 313,854 3. ACCOUNTS RECEIVABLE AND CONTRACT ASSETS, NET - continued The Group’s accounts receivable and contract assets generated from related parties and recorded in amounts due from related parties as of December 31, 2020 and 2021 are as follows: Accounts Allowance for Accounts receivable uncollectible receivable and contract accounts receivable and contract As of December 31, 2020 assets and contract assets Assets, net Accounts receivable from loan facilitation service — — — Accounts receivable from post facilitation service — — — Accounts receivable from referral services 1,004 — 1,004 Contract assets from loan facilitation service 82,528 (8,072) 74,456 Contract assets from post facilitation service 951 (227) 724 Total 84,483 (8,299) 76,184 Accounts Allowance for Accounts receivable uncollectible receivable and contract accounts receivable and contract As of December 31, 2021 assets and contract assets Assets, net Accounts receivable from loan facilitation service — — — Accounts receivable from post facilitation service — — — Accounts receivable from referral services — — — Contract assets from loan facilitation service 953,846 (120,208) 833,638 Contract assets from post facilitation service 5,178 (1,809) 3,369 Total 959,024 (122,017) 837,007 3. ACCOUNTS RECEIVABLE AND CONTRACT ASSETS, NET - continued The movement of allowance for uncollectible accounts receivables and contract assets generated from related parties and recorded in amounts due from related parties for the year ended December 31, 2020 and 2021 are as follows: Opening Ending balance as of Current Write off in balance as of January 1, year net the current December 31, 2020 provision year 2020 Accounts receivable from loan facilitation service 9,648 30,215 (39,863) — Accounts receivable from post facilitation service 481 14,533 (15,014) — Contract assets from loan facilitation service 2,062 22,683 (16,673) 8,072 Contract assets from post facilitation service 144 7,639 (7,556) 227 Total 12,335 75,070 (79,106) 8,299 Opening Ending balance as of Current Write off in balance as of January 1, year net the current December 31, 2021 provision year 2021 Accounts receivable from loan facilitation service — — — — Accounts receivable from post facilitation service — — — — Contract assets from loan facilitation service 8,072 117,613 (5,477) 120,208 Contract assets from post facilitation service 227 6,482 (4,900) 1,809 Total 8,299 124,095 (10,377) 122,017 The principal of accounts receivable and contract assets by year of origination: 2021 2020 2019 Total As of December 31, 2021 Loan facilitation service 2,708,137 390,236 — 3,098,373 Post facilitation service 249,726 38,867 — 288,593 Referral Service 249,674 — — 249,674 Total 3,207,537 429,103 — 3,636,640 |
FINANCIAL ASSETS RECEIVABLE
FINANCIAL ASSETS RECEIVABLE | 12 Months Ended |
Dec. 31, 2021 | |
FINANCIAL ASSETS RECEIVABLE | |
FINANCIAL ASSETS RECEIVABLE | 4. FINANCIAL ASSETS RECEIVABLE The Group’s financial assets receivable as of December 31, 2020 and 2021 are as follows: December 31, December 31, 2020 2021 RMB RMB Financial assets receivable 4,601,642 4,897,854 Allowance for uncollectible receivables (390,834) (493,646) Financial assets receivable, net 4,210,808 4,404,208 The movement of financial assets receivable for the years ended December 31, 2019, 2020 and 2021 is as follows: Year ended Year ended Year ended December 31, 2019 December 31, 2020 December 31, 2021 RMB RMB RMB Balance at beginning of year 1,250,277 2,142,627 4,601,642 Adoption of ASC 326 — 117,321 — Addition in the current year 3,650,311 6,885,976 6,626,322 Collection in the current year (2,721,168) (4,478,593) (6,189,783) Write-off (36,793) (65,689) (140,327) Balance at end of year 2,142,627 4,601,642 4,897,854 The movement of allowance for uncollectible receivables for the years ended December 31, 2019, 2020 and 2021 is as follows: Year ended Year ended Year ended December 31, 2019 December 31, 2020 December 31, 2021 RMB RMB RMB Balance at beginning of year 56,656 170,803 390,834 Current year net provision 150,940 285,720 243,139 Write-off (36,793) (65,689) (140,327) Balance at end of year 170,803 390,834 493,646 The Group’s financial assets receivable generated from related parties and recorded in amounts due from related parties as of December 31, 2020 and 2021 are as follows: December 31, December 31, 2020 2021 RMB RMB Financial assets receivable 3,149 — Allowance for uncollectible receivables (2,033) — Financial assets receivable, net 1,116 — 4. FINANCIAL ASSETS RECEIVABLE The movement of financial assets receivable generated from related parties and recorded in amounts due from related parties for the years ended December 31, 2020 and 2021 is as follows: Year ended Year ended December 31, December 31, 2020 2021 RMB RMB Balance at beginning of year 130,765 3,149 Addition in the current year 35,151 — Collection in the current year (124,830) (309) Write-off (37,937) (2,840) Balance at end of year 3,149 — The movement of allowance for uncollectible receivables generated from related parties and recorded in amounts due from related parties for the years ended December 31, 2020 and 2021 is as follows: Year ended Year ended December 31, December 31, 2020 2021 RMB RMB Balance at beginning of year 13,633 2,033 Current year net provision 26,337 807 Write-off (37,937) (2,840) Balance at end of year 2,033 — The following table summarizes the aging of the Group’s financial assets receivable. 31-60 over 60 Total 0-30 days days days financial past past past assets due due due Current receivable December 31, 2020 15,673 9,572 — 4,576,397 4,601,642 December 31, 2021 15,594 12,038 — 4,870,222 4,897,854 The principal of financial assets receivable by year of origination : 2021 2020 2019 Total December 31, 2021 4,078,249 819,605 — 4,897,854 |
LOANS RECEIVABLE, NET
LOANS RECEIVABLE, NET | 12 Months Ended |
Dec. 31, 2021 | |
LOANS RECEIVABLE, NET. | |
LOANS RECEIVABLE, NET | 5. LOANS RECEIVABLE, NET Loans receivable consists of the following: December 31, December 31, 2020 2021 RMB RMB Loans receivable 8,010,081 13,652,723 Less allowance for loan losses (421,767) (948,893) Loans receivable, net 7,588,314 12,703,830 As of December 31, 2020 and 2021, the accrued interest receivables are RMB 87,278 and RMB 86,144 ( net of allowance RMB 3,200 and RMB 5,987, respectively ), which is recorded under loans receivable. The following table presents the aging of loans as of December 31, 2020 and 2021: 0-30 days 31-60 days over 6 0 days Total amount past due past due past due past due Current Total loans December 31, 2020 (RMB) 43,766 32,038 — 75,804 7,934,277 8,010,081 December 31, 2021 (RMB) 113,771 87,171 — 200,942 13,451,781 13,652,723 The Group has not recorded any financing income on an accrual basis for the loans that are past due for more than 60 days in 2021 (60 days in 2020). Loans are returned to accrual status if they are brought to non-delinquent status or have performed in accordance with the contractual terms for a reasonable period of time and, in the Group’s judgment, will continue to make periodic principal and interest payments as scheduled. For the years ended December 31, 2019, 2020 and 2021, the Group has charged off loans receivable of RMB 162 million, RMB 637 million and RMB 475 million, respectively. Movement of allowance for loan losses is as follows: Year ended Year ended Year ended December 31, December 31, December 31, 2019 2020 2021 RMB RMB RMB Balance at beginning of year 25,895 351,639 421,767 Provision for loan losses 486,991 698,701 965,419 Gross write-off (161,976) (636,766) (475,352) Recoveries 729 8,193 37,059 Balance at end of year 351,639 421,767 948,893 The Group’s nonaccrual loans are nil as of December 31, 2019 and 2020. The principal of loans receivable as of December 31, 2021 by year of origination is as follows: 2021 2020 Total loans Loans receivable 13,614,369 38,354 13,652,723 The principal of loans receivable as of December 31, 2020 by year of origination is as follows: 2020 2019 Total loans Loans receivable 7,987,657 22,424 8,010,081 |
LAND USE RIGHTS, NET
LAND USE RIGHTS, NET | 12 Months Ended |
Dec. 31, 2021 | |
LAND USE RIGHTS, NET. | |
LAND USE RIGHTS, NET | 6. LAND USE RIGHTS, NET Land use rights represent acquired right to use the parcel of land on which the Group’s regional headquarters and affiliated industrial park stand. In 2021, the Group acquired the land use rights in Shanghai from the local authorities. Amortization of the land use right is made over the remaining term of the land use right period from the date when the land was made available for use by the Group. The land use rights are summarized as follows: Year ended December 31, 2021 RMB Cost 1,036,178 Accumulated amortization (17,270) Land use rights, net 1,018,908 The total amortization expense for the year ended December 31, 2021 amounted to RMB17,270. |
SHORT-TERM LOANS
SHORT-TERM LOANS | 12 Months Ended |
Dec. 31, 2021 | |
SHORT-TERM LOANS | |
SHORT-TERM LOANS | 7. SHORT-TERM LOANS Short-term loans as of December 31, 2021 represents bank borrowings of USD 38,850 and RMB 150,000 obtained from domestic commercial banks. The short-term loan of USD 38,850 bears interest rates of London InterBank Offered Rate (“LIBOR”) plus 300 |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 8. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES December 31, December 31, 2020 2021 RMB RMB User traffic direction fees 201,041 472,269 Payable to funding partners (1) 163,234 422,423 Accrued payroll and welfare 144,784 409,216 Payable for third-party service fee 196,718 298,411 Payable to shareholder of non-controlling interests (2) — 296,617 Dividend payable(3) — 276,991 Lease liability 28,528 25,779 Others 75,456 56,623 Total 809,761 2,258,329 (1) (2) (3) |
GUARANTEE LIABILITIES
GUARANTEE LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
GUARANTEE LIABILITIES. | |
GUARANTEE LIABILITIES | 9. GUARANTEE LIABILITIES The movement of guarantee liabilities during 2020 and 2021 is as follows: Guarantee liabilities-stand ready RMB As of January 1, 2020 2,148,402 Provision at the inception of new loans 6,921,127 Released into revenue (4,896,032) As of December 31, 2020 4,173,497 As of January 1, 2021 4,173,497 Provision at the inception of new loans 6,626,322 Released into revenue (5,981,675) As of December 31, 2021 4,818,144 Guarantee liabilities-contingent RMB As of January 1, 2020 2,687,275 Provision for contingent liabilities 4,794,127 Net payout (1) (3,937,948) As of December 31, 2020 3,543,454 As of January 1, 2021 3,543,454 Provision for contingent liabilities 3,078,224 Net payout (1) (3,336,597) As of December 31, 2021 3,285,081 (1) Net payout represents the amount paid upon borrowers’ default net of subsequent recoveries from the borrowers during a given period. The following table summarizes the aging of the Group’s contractual amounts of the outstanding loans subject to guarantee: 31-60 61-90 Over 90 0-30 days days days days past past past past due due due due Current Total loans December 31, 2020 (RMB): 355,252 158,048 68,919 — 55,019,645 55,601,864 December 31, 2021 (RMB): 446,780 235,769 57,526 — 49,117,630 49,857,705 As of December 31, 2020 and 2021, the contractual amounts of the outstanding loans subject to guarantee by the Group is estimated to be RMB 55,601,864 and RMB 49,857,705, respectively. The approximate term of guarantee compensation service ranged from 1 month to 24 months and 1 month to 36 months, as of December 31, 2020 and 2021, respectively. As of December 31, 2020 and 2021, the contractual amounts of the outstanding loans (excluding loans that are written off) not subject to guarantee by the Group were estimated to be RMB 2,402,825and RMB 3,129,264, respectively. |
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 | 10. RELATED PARTY BALANCES AND TRANSACTIONS The table below sets forth the major related parties and their relationships with the Group, with which the Group entered into transactions during the years ended December 31, 2019, 2020 and 2021: Name of related parties Relationship with the group 360 Security Technology Inc. (“360 Group”) Entity controlled by Mr. Zhou, the Chairman of the Group Beijing Qifutong Technology Co., Ltd. (“Qifutong”) An affiliate of 360 Group, ultimately controlled by Mr. Zhou, the Chairman of the Group Shanghai Qibutianxia Technology Co., Ltd. (“Qibutianxia”) Entity controlled by Mr. Zhou, the Chairman of the Group Beijing Qicaitianxia Technology Co., Ltd. (“Qicaitianxia”) Entity controlled by Mr. Zhou, the Chairman of the Group Beijing Qihu Technology Co., Ltd. (“Qihu”) An affiliate of 360 Group, ultimately controlled by Mr. Zhou, the Chairman of the Group Jinshang Consumer Finance Co.,Ltd. (“Jinshang”) An affiliate of an entity controlled by Mr. Zhou, the Chairman of the Group Beijing Zixuan Information Technology Co., Ltd. (“Beijing Zixuan”) Entity controlled by Mr. Zhou, the Chairman of the Group Xixian New Area Financial Asset Exchange Co., Ltd (“Xixian”) Entity controlled by Mr. Zhou, the Chairman of the Group Beijing Qifei Xiangyi Consultation Co., Ltd (“ Beijing Qifei”) Entity controlled by Mr. Zhou, the Chairman of the Group Hangzhou Qifei Huachuang Technology Co, Ltd (“ Hangzhou Qifei ”) Investee of the Group Shanghai Jiehu Internet Technology Co., Ltd. (“Shanghai Jiehu”) An affiliate of 360 Group, ultimately controlled by Mr. Zhou, the Chairman of the Group Kincheng Bank of Tianjin Co., Ltd. (“Kincheng”) An affiliate of an entity controlled by Mr. Zhou, the Chairman of the Group Tianjin Yujie Technology Co., Ltd. (Yujie) Entity controlled by Mr. Zhou, the Chairman of the Group Beijing Hongying Information Technology Co., Ltd. (“Hongying”) Entity controlled by Mr. Zhou, the Chairman of the Group Shareholders Shareholders of the Group Others Entities controlled by Mr. Zhou, the Chairman of the Group 10. RELATED PARTY BALANCES AND TRANSACTIONS - continued The Group entered into the following transactions with its related parties: For the years ended December 31, 2019, 2020 and 2021, services provided by the related parties were RMB 129,061, RMB 143,881 and RMB 523,054, respectively. Year ended Year ended Year ended December 31, December 31, December 31, 2019 2020 2021 RMB RMB RMB Referral service fee charged by Yujie — 15,152 347,585 Bandwidth service fee charged by Qihu 46,191 80,514 108,743 Brand fees charged by Qihu — — 23,585 Referral service fee charged by Qihu 47,640 24,507 19,789 Rental expenses charged by Beijing Qifei 5,074 7,137 — Rental expenses charged by Hongying — — 11,899 Corporate expenses allocated from Qibutianxia 3,230 11,321 7,075 Labor cost charged by Xixian 10,657 2,130 — Referral service fee charged by Qifutong 7,905 — — Others 8,364 3,120 4,378 Total 129,061 143,881 523,054 For the years ended December 31, 2019, 2020 and 2021, services provided to the related parties were RMB 1,037,480, RMB 346,378 and RMB 2,178,561, respectively. Year ended Year ended Year ended December 31, December 31, December 31, 2019 2020 2021 RMB RMB RMB Referral service fee charged from Qicaitianxia 197,018 3,558 — Loan facilitation services fee charged from Kincheng — 15,254 1,574,456 Loan facilitation services fee charged from Jinshang 59,871 150,515 219,513 Loan facilitation services fee charged from Beijing Zixuan 517,776 47,516 37 Post-facilitation services fee charged from Kincheng — 433 297,489 Post-facilitation services fee charged from Jinshang 43,497 48,094 69,398 Post-facilitation services fee charged from Beijing Zixuan 215,019 74,417 56 Others 4,299 6,591 17,612 Total 1,037,480 346,378 2,178,561 Beijing Zixuan is the subsidiary of Qibutianxia which is ultimately controlled by Mr. Zhou. Beijing Zixuan runs a P2P platform, referring individual investors as the financial institutional partner to the Group’s platform. Jinshang is an affiliate of an entity controlled by Mr. Zhou and provides funds to the borrowers through the Group’s platform. Kincheng is an affiliate of an entity controlled by Mr. Zhou and provides funds to the borrowers through the Group’s platform. The Group collected service fees from Beijing Zixuan, Jinshang and Kincheng.The amounts from Beijing Zixuan, Jinshang and Kincheng represent the loan facilitation service and post- facilitation service fees charged from them. 10 RELATED PARTY BALANCES AND TRANSACTIONS As of December 31, 2020 and 2021, amounts due from related parties were RMB 193,305 and RMB 978,175, respectively, and details are as follows: December 31, December 31, 2020 2021 RMB RMB Kincheng 13,505 771,335 Jinshang 158,655 194,123 Shareholders(1) 11,100 10,158 Beijing Zixuan 5,608 — Others 4,437 2,559 Total 193,305 978,175 (1) The balance as of December 31, 2021 represents the ADS registration fees incurred on behalf of certain shareholders that are to be reimbursed from them. As of December 31, 2020 and 2021, amounts due to related parties were RMB 71,562 and RMB 214,057 respectively, and details are as follows: December 31, December 31, 2020 2021 RMB RMB Qibutianxia 13,656 9,156 Qihu 24,624 144,999 Yujie 16,061 30,165 Others 17,221 29,737 Total 71,562 214,057 Qibutianxia provided joint back to back guarantee to certain third party guarantee companies for the loans facilitated by the Group. The amounts of loans under such arrangement are RMB 19,346,618 and RMB 11,803,492 as of December 31, 2020 and 2021 respectively. In September 2020, Beijing Qifei transferred to the Group part of its interest in Hangzhou Qifei, a joint venture company established by Beijing Qifei and an independent third party. After the transfer, Beijing Qifei and the Group hold 26% and 25% of the equity interest in the investee, respectively. As part of the arrangement, the Group is responsible to assist Hangzhou Qifei in meeting certain performance targets but is not obligated to fund the loss of the investee. The Group accounted for the equity investment using alternative measurement, and the carrying amount as of December 31, 2020 and 2021 was nil, respectively. 10 RELATED PARTY BALANCES AND TRANSACTIONS In October 2020, the Group established a joint venture company, Shanghai 360 Changfeng Technology, Co.,Ltd. (“360 Changfeng”) in Shanghai, China through Qiyu together with Shanghai Jiehu and an independent third party, Changfeng, to develop and build regional headquarter and the affiliated industrial park in Shanghai. Changfeng, Shanghai Jiehu and the Group each holds 30%, 30% and 40% of the equity interests of the joint venture, respectively. In December 2021, the Group acquired the 30% equity interest held by Shanghai Jiehu and became the controlling shareholder of 360 Changfeng. The transaction is a business acquisition under common control and has been retrospectively reflected in the consolidated financial statements of the Company for all periods presented. The impact to prior year financials was inconsequential. Pursuant to the joint venture agreement, the shareholders will contribute initial funding for acquisition of land use rights and funds required for subsequent developments will be mainly financed by external financings with any remaining shortfall funded by the shareholders ratably in proportion to their respective equity interest ownership. As of December 31, 2020, no capital contribution was made and carrying amount of the investment was zero. As of December 31, 2021, shareholders of the joint venture company have invested a total of RMB1.0 billion, of which RMB0.3 billion was funded by the non-controlling shareholder |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
INCOME TAXES | |
INCOME TAXES | 11. INCOME TAXES PRC Under the Law of the People’s Republic of China on Enterprise Income Tax (“EIT Law”), domestically-owned enterprises and foreign-invested enterprises are subject to a uniform tax rate of 25%. Qiyu received its “high and new technology enterprises” status in 2018 and renewed it in 2021 and was entitled for a preferential income tax rate of 15% from 2018 to 2023. In November 2020, Qiyue received its “high and new technology enterprises” status and was entitled to a reduced EIT rate of 15% from 2020 to 2022. From August 2019, Qicheng benefits from a preferential tax rate of 15% as it falls within the encouraged industries catalogue in western China. The 40% of the EIT payables of Qicheng could be further reduced as it is located in Autonomous Region of China. From 2021, two of the Company’s subsidiaries benefit from a preferential tax rate of 15% as they are registered in Hainan and engaged in encouraged business activities. Cayman Islands Under the current laws of the Cayman Islands, the Company is not subject to tax on its income or capital gains. In addition, the Cayman Islands do not impose withholding tax on dividend payments. Hong Kong Under the current Hong Kong Inland Revenue Ordinance, the Company’s subsidiaries domiciled in Hong Kong has introduced a two-tiered profits tax rate regime which is applicable to any year of assessment commencing on or after April 1, 2018. The profits tax rate for the first HK$2 million of profits of corporations will be lowered to 8.25%, while profits above that amount will continue to be subject to the tax rate of 16.5%. Additionally, payments of dividends by the subsidiary incorporated in Hong Kong to the Company are not subject to any Hong Kong withholding tax. 11. INCOME TAXES - continued The current and deferred portion of income tax expenses included in the consolidated statements of operations, which were all attributable to the Group is as follows: Year ended Year ended Year ended December 31, December 31, December 31, 2019 2020 2021 RMB RMB RMB Current tax 1,179,089 1,355,651 1,053,979 Deferred tax (713,106) (769,615) 204,217 Total 465,983 586,036 1,258,196 Reconciliation between the income tax at PRC statutory tax rate and income tax expense is as follows: Year ended Year ended Year ended December 31, December 31, December 31, 2019 2020 2021 RMB RMB RMB Income before income tax benefit 2,967,287 4,081,745 7,022,709 Statutory tax rate in the PRC 25 % 25 % 25 % Income tax at statutory tax rate 741,822 1,020,436 1,755,677 Effect of different tax rate of subsidiary operation in other jurisdiction 3,875 3,728 11,708 Effect of non-deductible expenses 63,070 75,881 64,841 Effect of preferential tax rate and tax exemption (202,095) (452,033) (487,655) Effect of enacted tax rate change of deferred tax assets/liabilities (95,048) 248 1,125 Effect of research and development super-deduction (47,846) (69,802) (106,515) Effect of valuation allowance movement of deferred tax assets 2,205 7,578 19,015 Income tax expense 465,983 586,036 1,258,196 The effect of the preferential tax rates on the income per share is as follows: Years Ended December 31, (Amounts in Thousands Except Per Share Data) 2019 2020 2021 RMB RMB RMB Tax saving amount due to preferential tax rates 297,143 451,785 486,530 Income per share effect-basic 1.03 1.51 1.58 Income per share effect-diluted 0.99 1.47 1.51 11. INCOME TAXES – continued Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The components of the deferred tax assets and deferred tax liabilities are as follows: December 31, December 31, 2020 2021 RMB RMB Deferred tax assets Guarantee liabilities 1,628,214 1,263,699 Provision for accounts receivable and contract assets and financial assets receivable 34,889 34,889 Provision for loan losses 186,462 330,684 Depreciation of land use rights — 14,162 Net operating loss carry forwards 22,785 37,376 Gross deferred tax assets 1,872,350 1,680,810 Valuation allowance on deferred tax assets (9,783) (28,798) Total deferred tax assets 1,862,567 1,652,012 Uncollected revenues (501,848) (938,721) Total deferred tax liabilities (501,848) (938,721) Net deferred tax assets 1,360,719 713,291 Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets. This assessment considers, among other matters, the nature, frequency and severity of recent losses, forecasts of future profitability, the duration of statutory carryforward periods, the Company’s experience with tax attributes expiring unused and tax planning alternatives. Considering all the above factors, as of December 31, 2020 and 2021, the Group recorded an allowance of RMB 9,783 and RMB 28,798 respectively for deferred tax assets which are not more likely than not to be realized. As of December 31, 2021, the Group had net operating loss carryforwards in PRC entities of RMB 110,338, which will expire from 2023 to 2026. The authoritative guidance requires that the Group recognizes the impact of a tax position in the financial statements if that position is more likely than not of being sustained upon audit by the tax authority, based on the technical merits of the position. Under PRC laws and regulations, arrangements and transactions among related parties may be subject to examination by the PRC tax authorities. If the PRC tax authorities determine that the contractual arrangements among related companies do not represent a price under normal commercial terms, they may make adjustments to the companies’ income and expenses. A transfer pricing adjustment could result in additional tax liabilities. According to PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or withholding agent. The statute of limitations will be extended five years under special circumstances, which are not clearly defined (but an underpayment of tax liability exceeding RMB 0.1 million is specifically listed as a special circumstance). In the case of a related party transaction, the statute of limitations is ten years. There is no statute of limitations in the case of tax evasion. 11. INCOME TAXES – continued Aggregate undistributed earnings of the Group’s PRC subsidiaries and VIEs and VIEs’ subsidiaries that are available for distribution was RMB 5,964,686 and RMB 13,225,574 as of December 31, 2020 and 2021, respectively. In accordance with the EIT Law, dividends, which arise from profits of foreign invested enterprises (“FIEs”) earned after January 1, 2008, are subject to a 10% withholding income tax. In addition, under tax treaty between the PRC and Hong Kong, if the foreign investor is incorporated in Hong Kong and qualifies as the beneficial owner, the applicable withholding tax rate is reduced to 5%, if the investor holds at least 25% in the FIE, or 10%, if the investor holds less than 25% in the FIE. A deferred tax liability should be recognized for the undistributed profits of PRC subsidiaries unless the Company has sufficient evidence to demonstrate that the undistributed dividends will be reinvested and the remittance of the dividends will be postponed indefinitely. The Group plans to indefinitely reinvest undistributed profits earned from its China subsidiaries in its operations in the PRC. Therefore, no withholding income taxes for undistributed profits of the Group’s subsidiaries have been provided as of December 31, 2020 and 2021. Under applicable accounting principles, a deferred tax liability should be recorded for taxable temporary differences attributable to the excess of financial reporting basis over tax basis in a domestic subsidiary. However, recognition is not required in situations where the tax law provides a means by which the reported amount of that investment can be recovered tax-free and the enterprise expects that it will ultimately use that means. The Group completed its feasibility analysis on a method, which the Group will ultimately execute if necessary to repatriate the undistributed earnings of the VIE without significant tax costs. As such, the Group does not accrue deferred tax liabilities on the earnings of the VIE given that the Group will ultimately use the means. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2021 | |
SHARE-BASED COMPENSATION. | |
SHARE-BASED COMPENSATION | 12. SHARE-BASED COMPENSATION Share incentive plan In May 2018, the shareholders and board of directors of the Company adopted the Share Incentive Plan (the “2018 plan”) for the granting of share options and restricted shares to employees, directors and consultants to reward them for services to the Company and to provide incentives for future service. Under the 2018 plan, the maximum aggregate number of shares which may be issued is 25,336,096 ordinary shares, plus an annual increase equal to 1.0% of the total number of the then issued and outstanding shares. The share options expire 10 years from the date of grant. The Company’s board of directors and shareholders approved the 2019 Share Incentive Plan (the “2019 Plan”) and amended it in August 2020, for the granting of share options and restricted shares to employees, directors and consultants to reward them for services to the Company and to provide incentives for future service. Under the 2019 plan, the maximum aggregate number of shares which may be issued is 17,547,567 ordinary shares, and may increase annually by an amount up to 1.0% of the total number of ordinary shares then issued and outstanding commencing with the first fiscal year beginning January 1, 2021 or such fewer amount as determined by the board of directors. The share options and restricted shares expire 10 years from the date of grant. Stock options On May 20 and November 20, 2018, and May 20, 2020, and November 20, 2021 the Company granted 24,627,493, 690,023, 3,514 and 2,400 stock options, respectively, with an exercises price of US$0.00001 per share to certain employees, directors and officers. The stock options shall vest over a period from immediate to 4 years . The grant date fair value per option was RMB 48.64, RMB 60.77 and RMB 64.46, respectively. On November 2021, the compensation committee of the board of directors of the Company approved to convert the form of 10,264,366 outstanding restricted shares into stock options to purchase the same number of shares as represented by the restricted share with an exercises price of US$0.00001 per share. This conversion did not affect the fair value of the awards immediately before and after the modification as the exercise price is nominal. In addition, there were no other changes to the awards including the vesting conditions and classification. Accordingly, modification accounting is not required and the cost will continue to be recognized based on the grant-date fair-value-based measure. 12. SHARE-BASED COMPENSATION Share incentive plan - Stock options - The Group used the Black-Scholes option pricing model to estimate the fair value of options granted, with the following assumptions used. Year ended, December 31, 2021 RMB Risk-free rate of interest 2.76% Estimated volatility rate 67.27% Dividend yield 5.10% Expected life (years) 5.00 Exercise price USD 0.00001 The risk-free rate of interest is based on the yield to maturity of China government bonds with a maturity period close to the expected term of the options. The volatility of the underlying ordinary shares during the life of the options was estimated based on the historical share price volatility of comparable companies over a period comparable to the expected term of the options. The dividend yield was estimated by the Group based on its expected dividend policy over the expected term of the options. The Group did not have sufficient historical share option exercise experience, it estimated the expected term average based on a consideration of factors including contractual term and vesting period. The closing market price of the ordinary shares of the Company as of the grant date was used as the fair value of the ordinary shares on that date. A summary of option activity during period from January 1, 2021 to December 31, 2021 is as follows: Weighted Weighted Average Number of Average Remaining Aggregate Options Exercise Price Contract Life Intrinsic Value USD Years RMB Options outstanding at January 1, 2021 7,611,387 0.00001 6.20 292,734 Options granted in 2021 2,400 0.00001 9.64 175 Options converted in 2021 10,264,366 0.00001 8.89 749,915 Options forfeited in 2021 (348,236) 0.00001 5.84 (25,442) Options exercised in 2021 (4,584,580) 0.00001 4.94 (334,949) Options outstanding at December 31, 2021 12,945,337 0.00001 8.03 945,786 Options exercisable at December 31, 2021 4,051,903 0.00001 7.01 296,032 Options vested or expected to be vested at December 31, 2021 12,945,337 0.00001 8.03 945,786 As of December 31, 2021, there was RMB 288,945 of unrecognized compensation cost related to share options that are expected to be recognized over a weighted-average vesting period of 1.43 years. 12. SHARE-BASED COMPENSATION Restricted Shares A summary of the restricted shares for the year ended December 31, 2021 was stated below: Weighted-Average Number of Grant-Date Restricted Shares Fair Value Outstanding at January 1, 2021 16,321,820 40.07 Granted 3,102,418 68.45 Converted (10,264,366) 40.84 Forfeited (749,794) 38.39 Vested (1,448,632) 37.06 Outstanding at December 31, 2021 6,961,446 52.38 The restricted shares granted shall vest in accordance with contractual schedules over a period from three The Company recognizes the compensation costs on a straight-line basis over the requisite service period of the award, which is generally the vesting period. Total share-based compensation expense of share-based awards granted to employees and directors was as follows: Year ended, Year ended, December 31, 2020 December 31, 2021 RMB RMB Facilitation, origination and servicing expenses 72,192 75,209 Sales and marketing expenses 8,164 12,340 General and administrative expenses 220,805 166,373 Total 301,161 253,922 |
ORDINARY SHARES
ORDINARY SHARES | 12 Months Ended |
Dec. 31, 2021 | |
ORDINARY SHARES | |
ORDINARY SHARES | 13. ORDINARY SHARES 5,000,000,000 shares was authorized at par value of USD 0.00001 per share. The ordinary shares include Class A ordinary shares and Class B ordinary shares. Each Class A ordinary share is entitled to one vote and each Class B ordinary share is entitled to twenty votes on all matters that are subject to shareholder vote. All classes of ordinary shares are entitled to the same dividend right. Class B ordinary shares could be converted into Class A ordinary shares, at the option of the holders, on one-for-one basis. All Class B ordinary shares are beneficially owned by Mr. Zhou, the Chairman of the Company. As of December 31, 2020, there were 304,453,780 ordinary shares outstanding, with par value of $0.00001 per share, consisting of 264,633,194 Class A ordinary shares and 39,820,586 Class B ordinary shares. As of December 31, 2021, there were 310,486,975 ordinary shares outstanding, with par value of $0.00001 per share, consisting of 270,666,389 Class A ordinary shares and 39,820,586 Class B ordinary shares. In August 2021, the board of directors of the Company has approved a share repurchase program whereby the Company is authorized to repurchase up to US$200 million worth of its Class A ordinary shares in the form of American depositary shares over the next twelve-month period. The Company’s proposed repurchases may be made from time to time in the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations. The Company expects to fund the repurchase out of its existing cash balance. As of December 31, 2021, the Company did not repurchase any share. |
STATUTORY RESERVES AND RESTRICT
STATUTORY RESERVES AND RESTRICTED NET ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
STATUTORY RESERVES AND RESTRICTED NET ASSETS | |
STATUTORY RESERVES AND RESTRICTED NET ASSETS | 14. STATUTORY RESERVES AND RESTRICTED NET ASSETS In accordance with the PRC laws and regulations, the PRC entities of the Group are required to make appropriation to certain statutory reserves, namely general reserve, industry specific reserve, enterprise expansion reserve, and staff welfare and bonus reserve, all of which are appropriated from net profit as reported in their PRC statutory accounts. The PRC entities of the Group are required to appropriate at least 10% of their after-tax profits to the general reserve until such reserve has reached 50% of their respective registered capital. Appropriations to the enterprise expansion reserve and the staff welfare and bonus reserve are to be made at the discretion of the board of directors of the PRC entities of the Group. There are no appropriations to these reserves by the PRC entities of the Group for the years ended December 31, 2020 and 2021. As a result of PRC laws and regulations and the requirement that distributions by the PRC entities of the Group can only be paid out of distributable profits computed in accordance with the PRC GAAP, the PRC entities of the Group restricted from transferring a portion of their net assets to the Group. Amounts restricted include paid-in capital, capital reserve and statutory reserves of the PRC entities of the Group. As of December 31, 2020 and 2021, the aggregated amounts of paid-in capital, capital reserve and statutory reserves represented the amount of net assets of the relevant entity in the Group not available for distribution amounted to RMB 2,740,408 and RMB 8,283,560, respectively (including the statutory reserve fund of RMB 125,389 and RMB 168,541 as of December 31, 2020 and 2021, respectively). |
DIVIDENDS
DIVIDENDS | 12 Months Ended |
Dec. 31, 2021 | |
DIVIDENDS. | |
Dividends | 15. DIVIDENDS Quarterly Dividend Policy On November 15, 2021, the Board of Directors of the Company approved a quarterly cash dividend policy. Under the policy, the Company will declare and distribute a recurring cash dividend every fiscal quarter, starting from the third fiscal quarter of 2021, at an amount equivalent to approximately 15% to 20% of the Company’s net income after tax for such quarter. The determination to make dividend distributions and the exact amount of such distributions in any particular quarter will be based upon the Company’s operations and financial conditions, and other relevant factors, and subject to adjustment and determination by the board of directors. The Board of Directors of the Company has approved a dividend of US$0.14 per ordinary share, or US$0.28 per ADS, for the third fiscal quarter of 2021 in accordance with the Company’s dividend policy, which is paid on January 18, 2022 to shareholders of record as of the close of business on December 15, 2021. |
LEASE
LEASE | 12 Months Ended |
Dec. 31, 2021 | |
LEASE | |
LEASE | 16. LEASE Operating lease as lessee The Group enters into operating leases primarily for general office space. The Group’s leases typically have original terms not exceeding 5 years. These leases have remaining lease terms of 1 year to 3 years, some of which include options to extend the leases for up to 5 years, and some of which include options to terminate the leases within 1 year. Lease costs are included in general and administrative expenses. Operating lease expenses were RMB 20,139, RMB 28,999 and RMB 51,608 for the years ended December 31, 2019, 2020 and 2021, respectively, included amortization expenses of land use rights of nil, nil and RMB 17,270 for the years ended December 31, 2019, 2020 and 2021, respectively. Under ASC 842, land use rights agreements are also considered as operating lease contracts. See Note 6 for separate disclosures related to land use right. Supplemental cash flow information related to leases was as follows: Year ended, Year ended, December 31, 2020 December 31, 2021 RMB RMB Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 30,536 33,252 Right-of-use assets obtained in exchange for lease obligations: Operating leases 36,236 25,349 16. LEASE Operating lease as lessee The following table shows ROU assets and lease liabilities as of December 31, 2020 and 2021 (except lease term and discount rate): Year ended, Year ended, December 31, 2020 December 31, 2021 RMB RMB Right-of-use assets 48,990 42,606 Operating lease liabilities-current 28,528 25,779 Operating lease liabilities-non current 14,974 13,177 Year ended, Year ended, December 31, 2020 December 31, 2021 RMB RMB Weighted-average remaining lease term 1.69 2.09 Weighted-average discount rate 6.16 % 6.22 % The maturities of operating lease liabilities as of December 31, 2020 and 2021 are as follows: Year ended, December 31, 2020 RMB 2021 32,255 2022 13,582 2023 710 2024 — 2025 and thereafter — Total undiscounted lease payments 46,547 Imputed interest (3,045) Total lease liabilities 43,502 The maturities of operating lease liabilities as of December 31, 2020 and 2021 are as follows: - continued Year ended, December 31, 2021 RMB 2022 28,203 2023 7,034 2024 3,550 2025 382 2026 and thereafter — Total undiscounted lease payments 39,169 Imputed interest (213) Total lease liabilities 38,956 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
COMMITMENTS AND CONTINGENCIES. | |
COMMITMENTS AND CONTINGENCIES | 17. COMMITMENTS AND CONTINGENCIES Contingencies Historically the Group has provided guarantees to certain funding partners through a subsidiary that does not hold a financing guarantee license. In October 2019, The China Banking and Insurance Regulatory Commission, promulgated a new regulation pursuant to which this structure, may not deemed appropriate. The Group has ceased the business in 2020, and for existing loans, the Group will execute the contract until the expiration of the loans. The new regulation is silent with respect to any grace period that may be permitted to undertake the restructuring. Management has concluded, with the advice of the Group’s legal counsel, that it is not reasonably possible to estimate any potential financial exposure the group may have as a result of operating the business during this intermediate time period, due to the substantial uncertainties regarding the interpretation and application of the relevant laws and regulations. As of December 31, 2021, the outstanding loan balance under this guarantee model amounted to RMB 0.51 billion, constituting 0.36% of total outstanding loan balance facilitated by the Group (excluding loans delinquent for more than 180 days). In July 2020 and in February 2021, the China Banking and Insurance Regulatory Commission (“CBIRC”) promulgated two regulations stating that regional banks that carry out internet lending business shall mainly serve local customers, and are not allowed to conduct the internet lending business beyond the local administrative area of their registered place, except those who have no physical business branch, conducting business primarily online as well as meeting the other conditions prescribed by the CBIRC. A significant amount of loans facilitated by the Company are funded by regional banks. The Company believed that, as advised by its PRC legal counsel, given the lack of exact definition regarding the regional banks in the existing laws and regulations, there are uncertainties as to how the regulation will be interpreted and implemented, therefore the impact to the Company’s current business operations cannot be reasonably estimated. In September, 2021, the People’s Bank of China (“PBOC”) issued a new regulation stating that organizations that engage in credit investigation business should obtain the credit reporting business license and comply with its other provisions within an 18 month grace period from its effectiveness date of January 1, 2022. Given that the rule does not specify the legitimacy of existing data analytics or precision marketing service providers in the financial service industry, the Company has concluded, as advised by its external legal counsel, that it is not reasonably possible to estimate its impact on the Company’s current business operations for credit assessment on borrowers and the potential penalties incurred by the Company thereof. The Company and its certain current and former officers and directors are named as defendants in a putative securities class action brought by investors who purchased the Company’s securities between April 30, 2020 and July 8, 2021 and who allegedly suffered damages as a result of alleged misstatements and omissions in the Company’s public disclosure documents in connection with its compliance and data collection practices. On January 14, 2022, Lead Plaintiff filed an Amended Complaint. On March 16, 2022, the Company filed a motion to dismiss the Amended Complaint. Given the case is in its preliminary stage, the Company has concluded, as advised by its external legal counsel, that the outcome of the case and the potential loss cannot be reasonably estimated. Commitments As of December 31, 2021, the Group has certain capital commitments that primarily related to commitments for construction of the regional headquarters and the affiliated industrial park. The total capital commitments contracted but not yet reflected in the financial statements was not less than RMB500 million (US$78.5 million) as of December 31, 2021. All of these capital commitments will be fulfilled in the future according to the construction progress. |
NET INCOME PER SHARE
NET INCOME PER SHARE | 12 Months Ended |
Dec. 31, 2021 | |
NET INCOME PER SHARE | |
NET INCOME PER SHARE | 18. NET INCOME PER SHARE Basic and diluted net income per share for each of the periods presented were calculated as follows: Year ended Year ended Year ended December 31, December 31, December 31, 2019 2020 2021 RMB RMB RMB Numerator: Net income attributable to shareholders of the Company 2,501,595 3,496,606 5,781,725 Denominator: Weighted average Class A and Class B ordinary shares outstanding used in computing basic income per ordinary share 288,827,604 298,222,207 307,265,600 Plus: incremental weighted average ordinary shares from assumed exercise of stock options and restricted shares using the treasury stock method 12,110,866 8,442,892 14,132,153 Weighted average Class A and Class B ordinary shares outstanding used in computing diluted income per ordinary share 300,938,470 306,665,099 321,397,753 Basic net income per share 8.66 11.72 18.82 Diluted net income per share 8.31 11.40 17.99 For the years ended December 31, 2019, 2020 and 2021, no options or RSUs were excluded from the calculation of diluted EPS due to the anti-dilutive effect. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2021 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 19. SUBSEQUENT EVENTS On March 10, 2022, the Board of Directors of the Company has approved a dividend of US$0.13 per ordinary share, or US$0.26 per ADS, for the fourth fiscal quarter of 2021 in accordance with the Company’s dividend policy, which is expected to be paid on May 13, 2022 to shareholders of record as of the close of business on April 6, 2022. |
ADDITIONAL INFORMATION - FINANC
ADDITIONAL INFORMATION - FINANCIAL STATEMENT SCHEDULE I | 12 Months Ended |
Dec. 31, 2021 | |
ADDITIONAL INFORMATION - FINANCIAL STATEMENT SCHEDULE I | |
ADDITIONAL INFORMATION - FINANCIAL STATEMENT SCHEDULE I | 360 DIGITECH, INC. ADDITIONAL INFORMATION - FINANCIAL STATEMENT SCHEDULE I The following Schedule I has been provided pursuant to the requirements of Rules 12-04(a) and 5-04(c) of Regulation S-X, which require condensed financial information as to the financial position, changes in financial position and results of operations of a parent company as of the same dates and for the same periods for which audited consolidated financial statements have been presented as the restricted net assets of the Company’s PRC subsidiaries and VIEs which may not be transferred to the Company in the forms of loans, advances or cash dividends without the consent of PRC government authorities as of December 31, 2021, was more than 25% of the Company’s consolidated net assets as of December 31, 2021. CONDENSED BALANCE SHEETS (Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“USD”)) 2020 2021 2021 RMB RMB USD (Note 2) ASSETS Cash and cash equivalents 19,560 7,117 1,117 Amount due from related parties — 10,134 1,590 Amount due from subsidiaries and VIEs 1,632,772 1,711,633 268,593 Investments in subsidiaries and VIEs 7,940,533 14,032,928 2,202,071 TOTAL ASSETS 9,592,865 15,761,812 2,473,371 LIABILITIES AND EQUITY LIABILITIES Accrued expenses and other current liabilities 2,751 310,373 48,704 Amount due to subsidiaries 27,973 — — Short term loans 81,563 247,576 38,850 TOTAL LIABILITIES 112,287 557,949 87,554 EQUITY Ordinary shares ($0.00001 par value per share 5,000,000,000 shares authorized, 21 22 3 Additional paid-in capital 5,417,406 5,672,267 890,102 Retained earnings 4,137,542 9,642,506 1,513,120 Other comprehensive loss (74,391) (110,932) (17,408) TOTAL EQUITY 9,480,578 15,203,863 2,385,817 TOTAL LIABILITIES AND EQUITY 9,592,865 15,761,812 2,473,371 360 DIGITECH, INC. ADDITIONAL INFORMATION - FINANCIAL STATEMENT SCHEDULE I CONDENSED STATEMENTS OF OPERATIONS (Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“USD”)) Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, 2019 2020 2021 2021 RMB RMB RMB USD (Note 2) Operating costs and expenses (12,922) (16,453) (51,233) (8,040) Interest income (loss) 712 (2,349) (5,383) (845) Foreign exchange losses (491) (376) (133) (21) Other income, net 453 15,148 — — Net loss before taxes and income from equity in subsidiaries and VIEs (12,248) (4,030) (56,749) (8,906) Equity in earnings of subsidiaries and VIEs 2,513,843 3,500,636 5,838,474 916,183 Net income before taxes 2,501,595 3,496,606 5,781,725 907,277 Income tax expenses — — — — Net income attributable to shareholders of the Company 2,501,595 3,496,606 5,781,725 907,277 Net income attributable to ordinary shareholders of the Company 2,501,595 3,496,606 5,781,725 907,277 360 DIGITECH, INC. ADDITIONAL INFORMATION - FINANCIAL STATEMENT SCHEDULE I CONDENSED STATEMENTS OF COMPREHENSIVE INCOME OR LOSS (Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“USD”)) Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, 2019 2020 2021 2021 RMB RMB RMB USD (Note 2) Net income attributable to shareholders of the Company 2,501,595 3,496,606 5,781,725 907,277 Other comprehensive income, net of tax of nil: Foreign currency translation adjustment 21,223 (99,297) (36,541) (5,734) Other comprehensive income (loss) 21,223 (99,297) (36,541) (5,734) Total comprehensive income 2,522,818 3,397,309 5,745,184 901,543 Comprehensive income attributable to ordinary shareholders 2,522,818 3,397,309 5,745,184 901,543 360 DIGITECH, INC. ADDITIONAL INFORMATION - FINANCIAL STATEMENT SCHEDULE I CONDENSED STATEMENTS OF CASH FLOWS (Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“USD”)) Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, 2019 2020 2021 2021 RMB RMB RMB USD (Note 2) Cash Flows from Operating Activities: Net income attributable to shareholders of the Company 2,501,595 3,496,606 5,781,725 907,277 Adjustments to reconcile net income to net cash used in operating activities: Equity in earnings of subsidiaries and VIEs (2,513,843) (3,500,636) (5,838,474) (916,183) Changes in operating assets and liabilities Accrued expenses and other current liabilities (3,070) (2,625) 31,197 4,896 Amounts due from subsidiaries and VIEs (276,960) (65,801) — — Net cash used in operating activities (292,278) (72,456) (25,552) (4,010) Cash Flows from Investing Activities: Investments in subsidiaries (35,652) — — — Loans payment to subsidiaries and VIEs — — (153,778) (24,131) Net cash used in Investing Activities (35,652) — (153,778) (24,131) Cash Flows from Financing Activities: Payment of IPO costs (3,080) — — — Proceeds from short-term loans — 86,305 169,291 26,565 Net cash (used in) provided by financing activities (3,080) 86,305 169,291 26,565 Effect of foreign exchange rate changes 1,761 (1,194) (2,404) (376) Net (decrease) increase in cash and cash equivalents (329,249) 12,655 (12,443) (1,952) Cash, cash equivalents, and restricted cash, beginning of year 336,154 6,905 19,560 3,069 Cash, cash equivalents, and restricted cash, end of year 6,905 19,560 7,117 1,117 Supplemental disclosures of cash flow information: Payables for dividends: — — 276,991 43,466 Notes to condensed financial statements 1. The condensed financial statements of 360 DigiTech, Inc. have been prepared using the same accounting policies as set out in the consolidated financial statements except that the equity method has been used to account for investments in subsidiaries and VIEs. Such investment in subsidiaries and VIEs are presented on the balance sheets as interests in subsidiaries and VIEs and the profit of the subsidiaries and VIEs is presented as equity in earnings of subsidiaries and VIEs on the statement of operations. 2. As of December 31, 2019, 2020 and 2021, there were no material contingencies, significant provisions of long-term obligations of the Company, except for those which have been separately disclosed in the consolidated financial statements. 3. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. The footnote disclosure certain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the accompanying Consolidated Financial Statements. |
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 accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). |
Basis of consolidation | Basis of consolidation The accompanying consolidated financial statements include the financial statements of the Company, its subsidiaries, and consolidated VIEs. All inter-company transactions and balances have been eliminated. |
Consolidated Trusts | Consolidated Trusts Loans funded by the funding partners in the Group’s loan facilitation business are typically disbursed to the borrowers directly from such partners. However, due to the need of certain funding partners, loans from such financial institutional partners are funded and disbursed indirectly through trusts and asset management plans (collectively the “Trusts”). Since November 2017, several Trusts were formed by third-party trust companies and asset management companies, who administer the Trusts. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Consolidated Trusts The Trusts fund loans facilitated by the Group using the funds received from its beneficiaries to the borrowers. The Trusts provide the returns to its beneficiaries through interest payments made by the borrowers. The borrowers are charged with the interests by the Trusts. For the majority of trust, the Group is either entitled to the residual profit in the Trusts or the Group has provided guarantee to the Trusts by agreeing to repurchase any loans that are delinquent for 30 to 90 days from which the Group absorbs the credit risk of the Trusts resulting from borrowers’ delinquencies. The Group determined that the residual profit or the guarantee represents a variable interest in the Trusts through which the Group has the right to receive benefits or the obligation to absorb losses from the Trusts that could potentially be significant to the Trusts. Since the Trusts only invest in the loans facilitated by the Group and the Group continues to service the loans through a service agreement post origination and has the ability to direct default mitigation activities, the Group has the power to direct the activities of the Trusts that most significantly impact the economic performance of the Trusts. As a result, the Group is considered the primary beneficiary of the Trusts and consolidated the Trusts’ assets, liabilities, results of operations and cash flows. In 2019, the Group received letter of approval for listing and transferring assets based securities (“ABS”) on both Shanghai Stock Exchange and Shenzhen Stock Exchange within the issue scale of RMB 5 billion for each, respectively. In 2020, the Group also received letter of approval for listing and transferring assets based securities (“ABS”) on Shenzhen Stock Exchange within the issue scale of RMB 10 billion. In 2021, the Group also received letter of approval for listing and transferring assets based securities (“ABS”) on Shanghai Stock Exchange and Shenzhen Stock Exchange within the issue scale of RMB 8 billion and RMB 4 billion, respectively. The beneficial rights of RMB 2.3 billion, 1.7 billion and 4.7 billion in trusts were transferred to trust beneficial right asset backed special plans (the “ABS plans”) for the years ended December 31, 2019, 2020 and 2021. The ABS plans were securitized and listed on Shanghai Stock Exchange and Shenzhen Stock Exchange, with terms of one As of December 31, 2020 and 2021, the balance of delinquent loans repurchased by the Group from the consolidated trusts are RMB 831,203 and RMB 904,586, respectively. As of December 31, 2020 and 2021, the balance of performing loans upon liquidation of certain consolidated trusts repurchased by the Group from the consolidated trusts per the contracts agreed with the counterparty are RMB 17,185 and RMB 12,686, respectively. For the years ended December 31, 2019, 2020 and 2021, the provision for loan losses of RMB 464,379, RMB 595,047 and RMB 661,402 were charged to the consolidated statements of comprehensive income, respectively. There were RMB 142,882, RMB 603,758 and RMB 1,033,228 of loans written off for the years ended December 31, 2019, 2020 and 2021, respectively. Interest on loans receivable is accrued and credited to income as earned. The Group determines a loan’s past due status by the number of days that have elapsed since a borrower has failed to make a contractual loan payment. Accrual of interest is generally discontinued when the loan principal and interest are deemed to be uncollectible. In general, loans receivable is identified as uncollectible when it is determined to be not probable that the balance can be collected. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Consolidated Trusts The following financial statement amounts and balances of the consolidated trusts were included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances: December 31, 2020 December 31, 2021 RMB RMB ASSETS Restricted cash 348,976 657,075 Loans receivable, net 6,447,233 8,646,950 Prepaid expenses and other assets 101,729 104,515 Loans receivable, net-noncurrent 37,157 1,829,804 Total Assets 6,935,095 11,238,344 December 31, 2020 December 31, 2021 RMB RMB LIABILITIES Payable to investors of the consolidated trusts-current 3,117,634 2,304,518 Accrued expenses and other current liabilities 9,608 5,928 Other tax payable 27,694 34,448 Payable to investors of the consolidated trusts-noncurrent 1,468,890 4,010,597 Total liabilities 4,623,826 6,355,491 Year ended Year ended Year ended December 31, December 31, December 31, 2019 2020 2021 RMB RMB RMB Net revenue 1,279,203 2,089,679 1,704,267 Net income 469,825 899,010 708,908 Year ended Year ended Year ended December 31, December 31, December 31, 2019 2020 2021 RMB RMB RMB Net cash provided by (used in) operating activities 382,620 (674,291) 1,329,554 Net cash (used in) provided by investing activities (8,989,137) 1,964,538 (4,619,696) Net cash provided by (used in) financing activities 7,512,696 (3,268,383) 1,735,348 The consolidated trusts contributed 14%, 15% and 10% of the Group’s consolidated revenue for the years ended 2019, 2020 and 2021, respectively. As of December 31, 2020 and December 31, 2021, the consolidated trusts accounted for an aggregate of 28% and 34%, respectively, of the consolidated total assets, and 31% and 35% respectively, of the consolidated total liabilities. There are no terms in any arrangements, considering both explicit arrangements and implicit variable interests that require the Company to provide financial support to the consolidated trusts. The Group believes that the assets of the consolidated trusts could only be used to settle the obligations of the consolidated trusts. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from such estimates. Significant accounting estimates reflected in the Group’s financial statements include revenue recognition, financial assets receivable guarantee liabilities, allowance for loans receivable, allowance for uncollectible accounts receivable and contract assets, allowance for financial assets receivable, and valuation allowance for deferred tax assets. |
Revenue recognition | Revenue recognition Through its app and channel partners, the Group provides services through its facilitation of loan transactions between the borrowers and the funding partners through the use of two business models. The first business model involves the Group providing credit driven services through facilitating loans that are guaranteed by the Group directly or through third-party guarantee companies and insurance companies (referred to as “off-balance capital heavy loans” hereafter), or providing loans through the Consolidated Trusts and Fuzhou Microcredit. In either cases, the Group ultimately bears all the credit risks when the borrowers default. The second business model involves the Group providing platform services through facilitating loans with no or partial guarantee provided by the Group (referred to as “capital light loans” hereafter) and referral services. In these cases, the Group bears limited credit risks when the borrowers default. The loans facilitated under both models are with terms of 1~36months (the majority are within the terms of 1~12 months) and with principal of up to RMB500. Loan facilitation and servicing fees The Group earns loan facilitation and service fees from both off-balance capital heavy loans and capital light loans. The Group’s services mainly consist of: 1) Performing customer acquisition, initial credit screening and advanced risk assessment on the borrowers on its mobile platform and matching the funding partners to potential qualified borrowers and facilitating the execution of loan agreements between the parties, referred to as “Loan Facilitation Services” and; 2) Providing collection and other repayment processing services for the funding partners over the loan term, referred to as “Post Facilitation Services”; Based on the agreements entered into between the Group’s funding partners and borrowers, the Group determined that it is not the legal lender or borrower in the loan origination and repayment process. Accordingly, the Group does not record loans receivable and payable arising from the loan between the funding partner and the borrowers. The Group charges service fees directly from financial institutional partner based on the contractual agreements. In 2019, the Group started cooperating with insurance companies to provide guarantee for the loans between the borrowers and funding partners. The Group charges guarantee fees from the borrower, including insurance premium collected on behalf of the insurance company. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued Revenue recognition - Loan facilitation and servicing fees – For the loans the Group is entitled to the full service fee regardless of whether the borrowers choose to early repay or not, the Group has the unconditional right to the consideration. For the loans facilitated with borrowers who have the option of early repayment and upon termination they do not have the obligation to pay the remaining monthly service fees or not have to pay the excessive portion if the total fees are more than 36% of the origination principal on an annualized basis, the Group’s right to consideration for the service fees of facilitation service is conditional on whether or not the borrowers repay in advance. For off-balance capital heavy loans, the Group enjoys a fixed rate of service fees. For capital light loans, the service fee rate the Group entitled to is subject to adjustment based on the actual default rate of the underlying loans. Under the off-balance capital heavy loans, the Group also provides a guarantee service to its funding partners whereas in the event of default, the funding partners are entitled to receive unpaid interest and principal from the Group. Given that the Group effectively takes on all of the credit risk of the borrowers and are compensated by the service fees charged, the guarantee is deemed as a service and the guarantee exposure is recognized as a stand-ready obligation in accordance with ASC Topic 460, Guarantees (see accounting policy for Guarantee Liabilities). Under the capital light model, the Group either provides no guarantee or partial guarantee service. Under the partial guarantee scenario, the Group agrees with each institutional funding partner a fixed upper limit of guarantee amount the Group is liable of. If the accumulated defaulted loan amount exceeds the agreed upper limit, the excess portion is borne by the institutional funding partner. The Group recognize revenue to depict the transfer of promised services to customers in an amount that reflects the consideration to which the Group expects to be entitled in exchange for those services. To achieve that core principle, the Group applies the following steps: ● Step 1: Identify the contract (s) with a customer ● Step 2: Identify the performance obligations in the contract ● Step 3: Determine the transaction price ● Step 4: Allocate the transaction price to the performance obligations in the contract ● Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation The Group determines that both the funding partners and the borrowers are its customers because they both receive services provided by the Group pursuant to the contractual terms among the Group, the borrowers and the funding partners. For each loan facilitated on the platform, the Group considers the loan facilitation service, post facilitation service and guarantee service (not applicable for arrangements where the Group does not provide guarantee service) as three separate services. Of which, the guarantee service is accounted for in accordance with ASC Topic 460, Guarantees, at fair value. Revenue from the guarantee services is recognized once the Group is released from the underlying risk. Starting from 2020, the Group recognized the stand-ready guarantee liability at the inception of each loan, and it was amortized to “revenue from releasing of guarantee liabilities” over the term of the guarantee (see accounting policy for Guarantee Liabilities).While the post- facilitation service is within the scope of ASC Topic 860, the ASC Topic 606 revenue recognition model is applied due to the lack of definitive guidance in ASC Topic 860. The loan facilitation service and post- facilitation service are two separate performance obligations under ASC 606, as these two deliverables are distinct in that customers can benefit from each service on its own and the Group’s promises to deliver the services are separately identifiable from each other in the contract. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenue recognition - Loan facilitation and servicing fees The Group determines the total transaction price to be the service fees chargeable from the borrowers or the funding partners. The Group’s transaction price includes variable considerations in the form of prepayment risk of the borrowers and service fee allocation rate under capital light model under certain agreements. The Group estimates the prepayment risk of borrowers using the expected value approach on the basis of historical information and current trends of the collection percentage of the borrowers. The service fee allocated to the Group under capital light model would be fluctuated along with the actual default rate of the loans facilitated. The Group uses the service fee allocation rate applicable to the estimated default rate of the underlying loans. The transaction price is allocated amongst the guarantee service, if any, and the other two performance obligations. The Group first allocates the transaction price to the guarantee liabilities, if any, in accordance with ASC Topic 460, Guarantees which requires the guarantee to be measured initially at fair value based on the stand-ready obligation. Then the remaining considerations are allocated to the loan facilitation services and post facilitation services using their relative standalone selling prices consistent with the guidance in ASC 606. The Group does not have observable standalone selling price information for the loan facilitation services or post facilitation services because it does not provide loan facilitation services or post facilitation services on a standalone basis. There is no direct observable standalone selling price for similar services in the market reasonably available to the Group. As a result, the estimation of standalone selling price involves significant judgment. The Group uses expected cost plus margin approach to estimate the standalone selling prices of loan facilitation services and post facilitation services as the basis of revenue allocation. In estimating its standalone selling price for the loan facilitation services and post facilitation services, the Group considers the cost incurred to deliver such services, profit margin for similar arrangements, customer demand, effect of competitors on the Group’s services, and other market factors. For each type of service, the Group recognizes revenue when (or as) the entity satisfies the service/ performance obligation by transferring the promised service (that is, an asset) to customers. Revenues from loan facilitation services are recognized at the time a loan is originated between the funding partners and the borrowers and the principal loan balance is transferred to the borrowers, at which time the facilitation service is considered completed. Revenues from post facilitation services are recognized on a straight-line basis over the term of the underlying loans as the post- facilitation services are a series of distinct services that are substantially the same and that have the same pattern of transfer to the funding partners. Revenue from releasing of guarantee liabilities Prior to 2020, guarantee liabilities were reduced by repayments for defaults and only the remaining balance at the expiry of the guarantee term was recognized as revenues from guarantee services. With the adoption of ASC 326 in 2020, the stand-ready guarantee liabilities are released into guarantee revenue over the term of the guarantee (see accounting policy for Guarantee Liabilities). For the years ended December 2019, 2020 and 2021, revenue from guarantee liabilities were RMB 285,407, RMB 4,506,935 and RMB 5,583,135, respectively. Incentives The Group provides incentives to the borrowers by providing coupons which can only be used as a reduction of repayment and ultimately reduced the service fees received by the Group. Because the borrower does not enter into any enforceable commitment by picking up the coupons, no contract arises from the coupons. Therefore the Group records the incentives as a deduction to revenue upon redemption. Financing income The Group provides loans through the Consolidated Trusts and Fuzhou Microcredit. The interest rate charged to the borrowers are fixed. The Group recognized revenue under “financing income” the fees and interests charged to the borrowers over the lifetime of the loans using the effective interest method. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenue recognition - Referral service fees The Group provides the referral services to other platforms, by referring to them the borrowers who have not passed the Group’s credit assessment. Specifically, the Group receives a fixed rate of referral fee from the platforms once the borrowers are accepted by the other funding providers on those platforms. The revenue is recognized once the referral is completed as confirmed by those platforms. The Group provides the referral services to the financial institutional partner also through the Group’s Intelligence Credit Engine platform, by matching the borrowers and the financial institutional partner. For loans originated through the platform, the Group charges the financial institutional partner a fixed rate of service fees. The revenue is recognized upon receipt of confirmation by the financial institutional partner of loan facilitation at which time the referral service is deemed completed. For the years ended December 31, 2019, 2020 and 2021, RMB 375,551, RMB 265,300 and RMB 620,317 were generated from the referral service, respectively. Other service fees Other service fees mainly pertain to the revenue from late fees from borrowers under off-balance capital heavy loans and capital light loans. The following table presents the disaggregation of revenue for the years ended December 31, 2019, 2020 and 2021: Year ended Year ended Year ended Year ended December December December December 31, 2019 31, 2020 31, 2021 31, 2021 RMB RMB RMB USD Credit driven services 8,013,391 11,403,675 10,189,167 1,598,902 Loan facilitation and servicing fees-capital heavy 6,273,131 4,596,555 2,326,027 365,004 Revenue from loan facilitation services 4,396,300 3,160,457 1,399,310 219,582 Revenue from post-facilitation services 1,876,831 1,436,098 926,717 145,422 Financing income 1,309,616 2,184,180 2,184,128 342,737 Revenue from releasing of guarantee liabilities 285,407 4,506,935 5,583,135 876,116 Other services fees 145,237 116,005 95,877 15,045 Platform services 1,206,456 2,160,279 6,446,478 1,011,593 Loan facilitation and servicing fees-capital light 814,581 1,826,654 5,677,941 890,993 Revenue from loan facilitation services 672,982 1,416,715 4,484,632 703,737 Revenue from post-facilitation services 141,599 409,939 1,193,309 187,256 Referral services fees 375,551 265,300 620,317 97,341 Other services fees 16,324 68,325 148,220 23,259 Total net revenue 9,219,847 13,563,954 16,635,645 2,610,495 |
Accounts receivable and Contract Assets, net | Accounts receivable and Contract Assets, net For the loans the Group is entitled to the full service fee regardless of whether the borrowers choose to early repay or not, the Group has the unconditional right to the consideration and an accounts receivable is recorded for the monthly service fees allocated to loan facilitation service that have already been delivered in relation to loans facilitated on the Group’s platform when recognizing revenue from loan facilitation service. For the loans facilitated with borrowers who have the option of early repayment and upon termination they do not have the obligation to pay the remaining monthly service fees or do not have to pay the excessive portion if the total fees are more than 36% of the origination principal on an annualized basis, the Group’s right to consideration for the service fees of facilitation service is conditional on whether or not the borrowers repay in advance. In these instances, the Group records a corresponding contract asset when recognizing revenue from loan facilitation service. Accounts receivable and contract assets are stated at the historical carrying amount net of write-offs and allowance for collectability in accordance with ASC Topic 310, and from January 1, 2020 ASC Topic 326. The Group established an allowance for uncollectible accounts receivable and contract assets based on estimates, which incorporate historical experience and other factors surrounding the credit risk of specific type of customers which is essentially the expected net default rates used in determining the fair value of guarantee liabilities. The Group evaluates and adjusts its allowance for uncollectible accounts receivable and contract assets on a quarterly basis or more often as necessary. Uncollectible accounts receivable and contract assets are written off when the consideration entitled to be received by the Group is due and a settlement is reached for an amount that is less than the outstanding historical balance or when the Group has determined the balance will not be collected. Contract assets and accounts receivable are identified as uncollectible when the underlying loan is determined to be not probable that the balance can be collected. The Group will write off contract assets and accounts receivable and the corresponding provisions if the underlying loan is deemed uncollectible. The Group did not recognize any contract liabilities during the periods presented. The amount of the transaction price allocated to performance obligations that are unsatisfied as of December 31, 2020 and 2021 are RMB 1,195,945 and RMB 1,637,484, respectively, all of which pertain to post- facilitation service. Remaining unsatisfied performance obligations that will be recognized as revenue by the Group within the following 12 months are 88% and 88% of the remaining performance obligations as of December 31, 2020 and 2021 respectively, with the remainder recognized thereafter. The Group determines that acquisition cost paid for financial institutional partner based on the amount of loans facilitated represents costs to obtain a contract qualifying for capitalization since these payments are directly related to sales achieved during a period. Such cost was not material during the periods presented. Revenue recognized for year ended December 31, 2019 from performance obligations satisfied (or partially satisfied) in prior periods pertaining to adjustments to variable consideration due to the change of estimated prepayment rate and service fee allocation rate was immaterial, and for year ended December 31, 2020 and 2021 was RMB 73,394 and RMB 210,818, respectively. The Group is subject to value-added tax and other surcharges including education surtax and urban maintenance and construction tax, on the services provided in the PRC. The Group has made an accounting policy election to exclude from the measurement of the transaction price all taxes assessed by the governmental authority. Such taxes excluded from revenues are RMB 547,344, RMB 795,388 and RMB 995,060, respectively, for the years ended December 31, 2019, 2020 and 2021. |
Allowance for credit losses | Allowance for credit losses On January 1, 2020, the Group adopted ASC 326, Financial Instruments—Credit Losses, which requires recognition of allowances upon origination or acquisition of financial assets at an estimate of expected credit losses over the contractual term of the financial assets (the current expected credit loss or the “CECL” model). The Group’s financial assets subject to the CECL model mainly include: loans receivable, accounts receivable, contract assets and financial assets receivable, and the allowance for these financial assets is driven by estimated default rate of underlying loans. The Group does not assign internal risk ratings to loans facilitated as they are of small balance and homogeneous. The Group estimates the default rate of loans on a pool basis by taking into consideration the historical delinquency rate by vintage, adjusted by specific risks for loans within each vintage, correlated industrial and macro-economic factors, and other pertinent information such as CPI and delinquent loan collection rate in assessing future performance of the loan portfolio. The Group monitors the delinquency status by vintage of origination and write off delinquent loans timely when the loans become uncollectible. The adoption of CECL model does not change the Group’s method used to estimate loan losses. The allowance for loans receivable is calculated based on estimated default rate of loans facilitated through the Consolidated Trusts or Fuzhou Microcredit. The allowance for accounts receivable, contract assets and financial assets receivable is assessed in accordance with the estimated default rate of the underlying off-balance loans facilitated. Since the allowance is recorded at loan inception based on the estimated collectability over the entire loan tenure and adjusted in each subsequent reporting period based on update of relevant information, the adoption of the CECL model does not have material impact on the timing and amount of allowance recognized for these financial assets. Other financial receivables subject to the CECL model mainly include security deposit prepaid to third party guarantee companies, funds receivable from third party payment service providers, receivables from related parties, and security deposit paid to insurance companies, which are of short term and shows no historical default record. The Group determines no allowance is needed for these receivables, except for receivables from related parties as funding partners, which are based on the estimated default rate of underlying loans as discussed above. The adoption of ASC 326 also requires the Group to record financial guarantee on a gross basis. As such, the Group recognized a separate contingent guarantee liability with an allowance for credit losses following the CECL model at the inception of loans facilitated with guarantee services provided (see accounting policy for Guarantee Liabilities). The allowance is an estimate of future net-payout by the Group upon borrowers’ default, which is ultimately based on the same estimated default rate of loans facilitated as discussed above. |
Cash and cash equivalents and Restricted cash | Cash and cash equivalents Cash and cash equivalents mainly consist of funds in banks, which are highly liquid and are unrestricted as to withdrawal or use. Restricted cash Restricted cash represents: (i) Deposit to funding banks which is used to secure timely loan repayment. As of December 31, 2020 and 2021, the amount of restricted cash related to deposit to the funding banks is RMB 2,006,874 and RMB 1,986,512 , respectively. (ii) Cash held by the trusts and assets management plans through segregated bank accounts which can only be used to invest in loans or other securities as stipulated in the trust agreement. The trusts have a maximum operating period of two years . The cash in the trusts is not available to fund the general liquidity needs of the Group. |
Security deposit prepaid to third-party guarantee companies | Security deposit prepaid to third-party guarantee companies Security deposit prepaid to third-party guarantee companies mainly represents deposit prepaid to licensed third-party vendors the Group cooperates with to provide guarantee to secure timely loan repayment for funding partners. |
Funds receivable from third party payment service providers | Funds receivable from third party payment service providers The Group opened accounts with third party online payment service providers to collect and transfer the loan funds and interest to financial institutional partner or borrowers. The Group also uses such accounts to collect the transaction fee and service fee, and repay and collect the default loan principal and interest. The balance of funds receivable from third party payment service providers mainly includes (a) Funds provided by Fuzhou Microcredit but not yet transferred to the borrowers by third party payment service providers due to the settlement time lag; (b) Repayment of loan principal and interest amounts received from the borrowers but not yet transferred to the investors by third party payment service providers due to the settlement time lag; and, (c) Accumulated amounts of transaction fee, service fee received, payment and collection of default loan and interest at the balance sheet date. |
Fair value | Fair value Fair value is considered to be the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. Authoritative literature provides a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The carrying values of financial instruments, which consist of cash and cash equivalents, restricted cash, security deposits, accounts receivable and contract assets, financial assets receivable, funds receivable from third party payment service providers, loans receivable, short term loan, payable to investors of the consolidated trusts, and amounts due from/to related parties are recorded at cost which approximates their fair value due to the short-term nature of these instruments. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Fair value As of December 31, 2021, the Group’s long-term financial instruments that are not reported at fair value on balance sheet include loans receivable, payable to investors of the consolidated trusts, accounts receivable and contract assets and financial assets receivable. Fair values of these financial instruments are estimated using a discounted cash flow model based on contractual cash flows. The fair values of loans receivable, accounts receivable and contract assets, financial assets receivable are classified as Level 3 fair value measurement due to the significant unobservable inputs concerning the estimation of default rate. The fair value of payable to investors of the consolidated trusts is classified as Level 2 fair value measurement. As of December 31, 2021, the differences between fair values and carrying amount for loans receivable and payable to investors are due to the discount factor or interests in future periods, and the fair value approximates the carrying amount. For accounts receivable and contract assets, financial assets receivable, the differences are due to the discount factor solely and the fair value approximates the carrying amount. The Group does not have any assets or liabilities that are recorded at fair value subsequent to initial recognition on a recurring or non-recurring basis during the periods presented. |
Loans receivable | Loans receivable Loans receivable represents loans facilitated through the consolidated trusts and Fuzhou Microcredit. Loans receivable are recorded as receivable, reduced by a valuation allowance estimated as of the balance sheet date. The allowance for loan losses is determined at a level believed to be reasonable to absorb probable losses inherent in the portfolio as of each balance sheet date. The allowance is provided based on an assessment performed on a portfolio basis. All loans are assessed collectively depending on factors such as delinquency rate, size, and other risk characteristics of the portfolio.About adoption of ASC 326, see accounting policy of “Allowance for credit losses”. The Group charges off loans receivable as a reduction to the allowance for loans receivable when the loan principal and interest are deemed to be uncollectible. In general, loans receivable is identified as uncollectible when it is determined to be not probable that the balance can be collected. |
Property and equipment, net | Property and equipment, net Furniture and equipment are recorded at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the following estimated useful lives: Leasehold improvements Over the shorter of the lease term or expected useful lives Electronic equipment 5 years Furniture and office equipment 5 years Gains and losses from the disposal of furniture and equipment are recognized in the consolidated statements of operations. Depreciation expense on property and equipment for the years ended December 31, 2019, 2020 and 2021 were RMB 6,837, RMB 10,439 and RMB 13,483, respectively. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Land use rights, net Land use rights represent lease prepayments to the local government authorities and are recorded at cost less accumulated amortization. Amortization is provided on a straight-line basis over the term of the agreement, which is 50 years. Under ASC 842, land use rights were identified as operating lease right-of-use assets, which is separately disclosed as “Land use rights, net” in the Group’s consolidated balance sheets. |
Guarantee liabilities | Guarantee liabilities For the loans facilitated through the loan facilitation business, the Group provides a guarantee service to its financial institutional partner whereas in the event of default, the funding partners are entitled to receive unpaid interest and principal from the Group. In general, any unpaid interest and principal are paid when the borrower does not repay as scheduled. From February 2018, to follow the recent regulation change, particularly the Circular 141 which came into effect in December 2017, the Group began to involve third-party licensed vendors including financing guarantee companies and insurance companies to provide guarantee for new loans facilitated for certain financial institutional partner. Under the cooperation with financing guarantee companies, these guarantee companies initially reimburses the loan principal and interest to the funding partners upon borrower’s default. Although the Group does not have direct contractual obligation to the funding partners for defaulted principal and interest, the Group provides back to back guarantee to the licensed guarantee companies. As agreed in the back to back guarantee contract, the Group would pay the licensed guarantee companies for actual losses incurred based on defaulted principal and interest. Under the cooperation with insurance companies, the Company is obligated to provide funding in the form of security deposit with the insurance companies which is used to compensate the funding partners for borrowers’ default. Given that the Group effectively takes on all of the credit risk of the borrowers, the Group recognizes a stand ready obligation for its guarantee exposure in accordance with ASC Topic 460. Under capital light model, in the condition of no guarantee service provided, the Group does not take any credit risk and not record any guarantee liabilities associated with those loans. Besides, in the condition of partial guarantee, the amount of guarantee exposure is immaterial for the years ended December 31, 2020 and 2021. At the inception of each loan, the Group recognizes the guarantee liability at fair value in accordance with ASC 460-10, which incorporates the expectation of potential future payments under the guarantee and takes into both non-contingent and contingent aspects of the guarantee. Subsequent to the loan’s inception, the guarantee liability is composed of two components: (i) ASC Topic 460 component; and (ii) ASC Topic 450 component. The liability recorded based on ASC Topic 460 is determined on a loan by loan basis and it is reduced when the Group is released from the underlying risk, i.e. as the loan is repaid by the borrower or when the investor is compensated in the event of a default. This component is a stand ready obligation which is not subject to the probable threshold used to record a contingent obligation. When the Group is released from the stand ready liability upon expiration of the underlying loan, the Group records a corresponding amount as “Revenue from releasing of guarantee liabilities” in the consolidated statement of comprehensive income. The other component is a contingent liability determined based on probable loss considering the actual historical performance and current conditions, representing the obligation to make future payouts under the guarantee liability in excess of the stand-ready liability, measured using the guidance in ASC Topic 450. The ASC Topic 450 contingent component is determined on a collective basis and loans with similar risk characteristics are pooled into cohorts for purposes of measuring incurred losses. The ASC 450 contingent component is recognized as part of expense on guarantee liabilities in the consolidated statement of comprehensive income. At all times the recognized liability (including the stand ready liability and contingent liability) is at least equal to the probable estimated losses of the guarantee portfolio. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Guarantee liabilities - continued On January 1, 2020, the Group adopted ASC 326, Financial Instruments—Credit Losses, which requires gross accounting for guarantee liability. As a result, at inception of the guarantee, the Group will recognize both a stand-ready guarantee liability under ASC 460 with an associated financial assets receivable, and a contingent guarantee liability with an allowance for credit losses under Current expected credit loss (“CECL”) model. Subsequent to the initial recognition, the ASC 460 stand-ready guarantee is released into guarantee revenue on a straight-line basis over the term of the guarantee, while the contingent guarantee is reduced by the payouts made by the Group to compensate the investors upon borrowers’ default. Allowance for credit losses under CECL model was included in “Provision for contingent liabilities” and revalued at each period end to reflect updated estimation for future net pay-out. Upon adoption, the Group recognized the cumulative effect of approximately RMB1.43 billion as a decrease to the opening balances of retained earnings, as of January 1, 2020, net of tax effect. The following table sets forth the cumulative effect of the changes on the Group’s consolidated balance sheet as of January 1, 2020 due to the adoption of ASC 326: Adjustments As of due to As of December the Adoption January 31, 2019 of ASC 326 01, 2020 ASSETS Financial assets receivable 1,971,824 117,321 2,089,145 Deferred tax assets 697,348 336,830 1,034,178 LIABILITIES Guarantee liabilities-stand ready 2,212,125 (63,723) 2,148,402 Guarantee liabilities-contingent 734,730 1,952,545 2,687,275 Other tax payable 263,856 (4,275) 259,581 SHAREHOLDERS EQUITY Retained earnings 2,071,332 (1,430,396) 640,936 |
Financial assets receivable | Financial assets receivable Financial assets receivable is recognized at loan inception which is equal to the stand-ready liability recorded at fair value in accordance with ASC 460-10-30-2(b) and considers what premium would be required by the Group to issue the same guarantee service in a standalone arm’s-length transaction. The fair value recognized at loan inception is estimated using a discounted cash flow model based on the expected net payouts by incorporating a markup margin. The Group estimates its expected net payouts according to the product mix, default rates, loan terms and discount rate. The financial assets receivable is accounted for as a financial asset, and reduced upon the receipt of the service fee payment from the borrowers. At each reporting date, the Group estimates the future cash flows and assesses whether there is any indicator of impairment. If the carrying amounts of the financial assets receivable exceed the expected cash to be received, an impairment loss is recorded for the financial assets receivable not recoverable and is recorded in the consolidated income statement. About adoption of ASC 326, see accounting policy of “Allowance for credit losses”. Impairment losses of RMB 150,940, RMB 285,720 and RMB 243,139 were recorded in the consolidated statements of operations during the years ended December 31, 2019, 2020 and 2021. |
Facilitation, origination and servicing | Facilitation, origination and servicing Facilitation, origination and servicing expense represents cost of services which consists primarily of variable expenses and vendor costs, and costs related to risk management, credit assessment, borrower and system support, payment processing services and third-party collection agencies with facilitating and servicing loans. Facilitation and origination expense includes expense related to the Group’s borrower referral program under which the Group provides cash incentives to existing borrowers who have successfully referred a new borrower/borrowers to the Group. Such cash reward is offered when the new borrower makes a drawdown. As the cash reward is directly associated with the new borrower acquisition, the Group accounted for it as origination expense to facilitate the loans. The Group recorded RMB 14.7 million, RMB 13.1 million and RMB 23.9 million of cash reward for the years ended December 31, 2019, 2020 and 2021, respectively. |
Sales and marketing expenses | Sales and marketing expenses Sales and marketing expenses primarily consist of variable marketing and promotional expenses and general brand and awareness building, including fees paid to channel partners for directing user traffic to the Group. Salaries and benefits expenses related to the Group’s sales and marketing personnel and other expenses related to the Group’s sales and marketing team are also included in the sales and marketing expenses. For the years ended December 31, 2019, 2020 and 2021, the advertising and marketing related expenses were RMB 2,725,812, RMB 859,386 and RMB 1,803,243, respectively. |
Funding costs | Funding costs Funding cost consists of interest expense the Group pays to funding partners of the Consolidated Trusts and the asset backed securities, trust issuance and costs incurred by the trusts. |
Government grant | Government grant Government grants are primarily referred to the amounts received from various levels of local governments from time to time which are granted for general corporate purposes and to support its ongoing operations in the region. The grants are determined at the discretion of the relevant government authority and there are no restrictions on their use. The government subsidies are recorded as other income in the period the cash is received. The government grants received by the Group is RMB 128,147, RMB 74,449 and RMB 17,783 for the years ended December 31, 2019, 2020 and 2021, respectively. |
Income taxes | Income taxes Current income taxes are provided on the basis of net profit (loss) for financial reporting purposes, adjusted for income and expenses which are not assessable or deductible for income tax purposes, in accordance with the laws of the relevant tax jurisdictions. Deferred income taxes are provided using assets and liabilities method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are recognized to the extent that these assets are more likely than not to be realized. In making such a determination, the management consider all positive and negative evidence, including future reversals of projected future taxable income and results of recent operation. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Income taxes - continued In order to assess uncertain tax positions, the Group applies a more likely than not threshold and a two-step approach for the tax position measurement and financial statement recognition. Under the two-step approach, the first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. The Group recognizes interest and penalties, if any, under accrued expenses and other current liabilities on its consolidated balance sheet and under other expenses in its consolidated statement of comprehensive loss. The Group did not have any significant unrecognized uncertain tax positions as of and for the years ended December 31, 2020 and 2021. |
Value added taxes ("VAT") | Value added taxes (“VAT”) The consolidated trusts are subject to VAT at the rate of 3%, while the other entities under the Group are subject to VAT at the rate of 6% as general taxpayers, and related surcharges on revenue generated from providing services. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded in the line item of other tax payable on the consolidated balance sheet. |
Certain risks and concentrations | Certain risks and concentrations As of December 31, 2019, 2020 and 2021, substantially all of the Group’s cash and cash equivalents as well as restricted cash were held in major financial institutions located in the PRC, which management considers to be of high credit quality. Detail of the major funding partners that account for 10% or more of total revenues for the years ended December 31, 2019, 2020 and 2021 are as follows: the years ended December 31 funding partners 2019 2020 2021 A * 16.4 % B * 14.3 % C 11.3 % 10.8 % * D 15.7 % 10.2 % * E 10.6 % |
Share-based compensation | Share-based compensation Share-based payment transactions with employees, such as stock options and restricted shares, are measured based on the grant date fair value of the awards, with the resulting expense generally recognized on a straight-line basis in the consolidated statements of operations over the period during which the employee is required to perform service in exchange for the award. The Group has elected to account for forfeitures as they occur. |
Foreign currency translation | Foreign currency translation The reporting currency of the Group is the Renminbi (“RMB”).The Group’s operations are principally conducted through the companies located in the PRC where the RMB is the functional currency. The functional currency of the other major entities incorporated outside of PRC is the United States dollar (“USD”). 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Foreign currency translation - Transactions denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing on the transaction dates. Monetary assets and liabilities denominated in currencies other than functional currency are translated into functional currency at the exchange rates prevailing at the balance sheet date. Transactions in currencies other than functional currency during the year are converted into the functional currency at the applicable rates of exchange prevailing on the transaction date. Transaction gains and losses are included in earnings as foreign exchange gain (loss) . The consolidated financial statements of the Group are translated from the functional currency into reporting currency. Assets and liabilities denominated in foreign currencies are translated using the applicable exchange rates at the balance sheet date. Equity accounts other than earnings generated in current period are translated at the appropriate historical rates. Revenues, expenses, gains and losses are translated using the periodic average exchange rates. The resulting foreign currency translation adjustment are recorded in other comprehensive income (loss). |
Convenience translation | Convenience translation The Group’s business is primarily conducted in China and all of the revenues are denominated in RMB. The financial statements of the Group are stated in RMB. Translations of balances in the consolidated balance sheets, and the related consolidated statements of operations, shareholders’ equity and cash flows from RMB into US dollars as of and for the year ended December 31, 2021 are solely for the convenience of the readers and were calculated at the rate of USD1.00=RMB 6.3726, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 30, 2021. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into USD at that rate or at any other rate. |
Employee defined contribution plan | Employee defined contribution plan Full time employees of the Group in the PRC participate in a government mandated multi-employer defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require that the Group makes contributions to the government for these benefits based on a certain percentage of the employee’s salaries. The Group has no legal obligation for the benefits beyond the contributions. The total amount that was expensed as incurred was RMB 71,433, RMB 72,632 and RMB 146,426 for the years ended December 31, 2019, 2020 and 2021, respectively. |
Income per share | Income per share Basic income per ordinary share is computed by dividing net income attributable to the ordinary shareholders by the weighted average number of ordinary shares outstanding during the period assuming the ordinary shares were issued and outstanding from the earliest period presented. Diluted income per ordinary share reflects the potential dilution that could occur if securities were exercised or converted into ordinary shares. Ordinary share equivalents are excluded from the computation in income periods should their effects be anti-dilutive. The Group had restricted shares and share options, which could potentially dilute basic earnings per share in the future. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Dividends Dividends of the Company are recognized when declared. |
Segment reporting | Segment reporting The Group uses management approach to determine operation segment. The management approach considers the internal organization and reporting used by the Group’s chief operating decision maker (“CODM”) for making decisions, allocation of resource and assessing performance. The Group’s CODM has been identified as the Chief Executive Officer who reviews the consolidated results of operations when making decisions about allocating resources and assessing performance of the Group. The Group operates and manages its business as a single operating segment. Substantially all of the Group’s long-lived assets are located in the PRC and substantially all of the Group’s revenues are derived from within the PRC. Therefore, no geographical segments are presented. |
Operating leases | Operating leases The Group accounts for operating leases in accordance with ASC 842, Leases (“ASC 842”) after the adoption on January 1, 2019. The Group determines if a contract contains a lease based on whether it has the right to obtain substantially all of the economic benefits from the use of an identified asset and whether it has the right to direct the use of an identified asset in exchange for consideration, which relates to an asset the Group does not own. As part of the lease agreements, the Group may include options to extend or terminate the lease when it is reasonably certain that the Group will exercise those options. Right of use (“ROU”) assets represent the Group’s right to use an underlying asset for the lease term and lease liabilities represent the Group’s obligation to make lease payments arising from the lease. ROU assets are initially measured based on the lease liability, adjusted for any initial direct costs, any lease payments made prior to lease commencement and for any lease incentives, and are included in other assets (long term) on the Group’s consolidated balance sheets. Lease liabilities are recognized at the present value of the future lease payments at the lease commencement date, and are included in accrued expenses and other current liabilities (short term) and other long-term liabilities on the Group’s consolidated balance sheets. The discount rate used to determine the present value of the future lease payments is the Group’s incremental borrowing rate, because the interest rate implicit in most of the Group’s leases is not readily determinable. The Group’s incremental borrowing rate represents the rate would be incurred to borrow on a collateralized basis over a similar term for an amount equal to the lease payments in a similar economic environment. Operating lease expense is recorded on a straight-line basis over the lease term. The Company does not possess any leases that have variable lease payments or residual value guarantees. |
Recent accounting pronouncements | Recent accounting pronouncements Recently Adopted Accounting Guidance In December 2019, the FASB issued ASU 2019-12, a new accounting standard update to simplify the accounting for income taxes. The new guidance removes certain exceptions for recognizing deferred taxes for investments, performing intra period allocation and calculating income taxes in interim periods. It also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. The new standard was adopted by the Company on January 1, 2021 and did not have a material effect on the Company’s consolidated financial statements. Recent Accounting Guidance Not Yet Adopted No new accounting pronouncements issued but not yet adopted are expected to have a material impact on the Company’s consolidated financial statements. |
ORGANIZATION AND PRINCIPAL AC_2
ORGANIZATION AND PRINCIPAL ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Schedule of significant subsidiaries and its consolidated VIEs | Date of Place of Incorporation Incorporation Subsidiaries HK Qirui International Technology Company Limited (“HK Qirui”) June 14, 2018 Hong Kong Shanghai Qiyue Information & Technology Co., Ltd. (“Qiyue”) August 7, 2018 PRC Shanghai Qidi Information Technology Co., Ltd. (“Qidi”) June 27, 2019 PRC Beihai Qicheng Information & Technology Co., Ltd. (“Qicheng”) August 6, 2019 PRC VIEs and VIEs Subsidiaries Shanghai Qiyu Information & Technology Co., Ltd. (“Qiyu”) July 25, 2016 PRC Fuzhou 360 Online Microcredit Co., Ltd. (“Fuzhou Microcredit”) March 30, 2017 PRC Fuzhou 360 Financing Guarantee Co., Ltd. (“Fuzhou Guarantee”) June 29, 2018 PRC Shanghai 360 Financing Guarantee Co., Ltd. (“Shanghai Guarantee”) May 20, 2019 PRC |
Schedule of financial information of VIEs | December 31, December 31, 2020 2021 RMB RMB ASSETS Cash and cash equivalents 3,709,740 4,605,851 Restricted cash 2,006,874 1,986,512 Security deposit prepaid to third-party guarantee companies 915,144 874,886 Funds receivable from third party payment service providers 131,464 153,151 Accounts receivable and contract assets, net 2,316,357 2,133,477 Financial assets receivable, net 3,480,605 3,806,243 Amounts due from related parties 178,791 608,924 Loans receivable, net 1,018,124 1,197,532 Prepaid expenses and other assets 202,070 235,780 Accounts receivable and contract assets, net-non current 307,937 217,298 Financial assets receivable, net-non current 645,326 597,965 Amounts due from related parties, non-current — 121,855 Loans receivable, net-non current 50,528 1,029,545 Property and equipment, net 15,370 15,074 Land use rights, net — 1,018,908 Intangible assets 1,802 3,972 Deferred tax assets 1,353,420 779,291 Other non-current assets 31,539 27,729 Total Assets 16,365,091 19,413,993 LIABILITIES Accrued expenses and other current liabilities 771,562 1,820,609 Amounts due to related parties 71,562 94,057 Short term loans 105,238 150,000 Guarantee liabilities 7,724,841 8,103,225 Income tax payable 1,151,275 449,553 Other tax payable 215,906 218,017 Deferred tax liabilities 37,843 65,542 Other long-term liabilities 6,806 10,271 Total liabilities 10,085,033 10,911,274 Year ended Year ended Year ended December 31, 2019 December 31, 2020 December 31, 2021 RMB RMB RMB Net revenue 7,318,362 11,062,032 13,674,223 Net income 1,707,839 2,541,386 5,462,150 Year ended Year ended Year ended December 31, 2019 December 31, 2020 December 31, 2021 RMB RMB RMB Net cash provided by operating activities 2,010,741 3,715,112 5,431,654 Net cash provided by (used in) investing activities 134,286 (1,012,415) (1,427,958) Net cash provided by (used in) financing activities 198,242 (94,762) 359,082 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of disaggregation of revenue | The following table presents the disaggregation of revenue for the years ended December 31, 2019, 2020 and 2021: Year ended Year ended Year ended Year ended December December December December 31, 2019 31, 2020 31, 2021 31, 2021 RMB RMB RMB USD Credit driven services 8,013,391 11,403,675 10,189,167 1,598,902 Loan facilitation and servicing fees-capital heavy 6,273,131 4,596,555 2,326,027 365,004 Revenue from loan facilitation services 4,396,300 3,160,457 1,399,310 219,582 Revenue from post-facilitation services 1,876,831 1,436,098 926,717 145,422 Financing income 1,309,616 2,184,180 2,184,128 342,737 Revenue from releasing of guarantee liabilities 285,407 4,506,935 5,583,135 876,116 Other services fees 145,237 116,005 95,877 15,045 Platform services 1,206,456 2,160,279 6,446,478 1,011,593 Loan facilitation and servicing fees-capital light 814,581 1,826,654 5,677,941 890,993 Revenue from loan facilitation services 672,982 1,416,715 4,484,632 703,737 Revenue from post-facilitation services 141,599 409,939 1,193,309 187,256 Referral services fees 375,551 265,300 620,317 97,341 Other services fees 16,324 68,325 148,220 23,259 Total net revenue 9,219,847 13,563,954 16,635,645 2,610,495 |
Accounting Standards Update and Change in Accounting Principle [Table Text Block] | Adjustments As of due to As of December the Adoption January 31, 2019 of ASC 326 01, 2020 ASSETS Financial assets receivable 1,971,824 117,321 2,089,145 Deferred tax assets 697,348 336,830 1,034,178 LIABILITIES Guarantee liabilities-stand ready 2,212,125 (63,723) 2,148,402 Guarantee liabilities-contingent 734,730 1,952,545 2,687,275 Other tax payable 263,856 (4,275) 259,581 SHAREHOLDERS EQUITY Retained earnings 2,071,332 (1,430,396) 640,936 |
Schedule of estimated useful lives for property and equipment | Leasehold improvements Over the shorter of the lease term or expected useful lives Electronic equipment 5 years Furniture and office equipment 5 years |
Schedule of major funding partners that account for 10% or more of total revenues | the years ended December 31 funding partners 2019 2020 2021 A * 16.4 % B * 14.3 % C 11.3 % 10.8 % * D 15.7 % 10.2 % * E 10.6 % |
Consolidated Trusts | |
Schedule of financial statements | December 31, 2020 December 31, 2021 RMB RMB ASSETS Restricted cash 348,976 657,075 Loans receivable, net 6,447,233 8,646,950 Prepaid expenses and other assets 101,729 104,515 Loans receivable, net-noncurrent 37,157 1,829,804 Total Assets 6,935,095 11,238,344 December 31, 2020 December 31, 2021 RMB RMB LIABILITIES Payable to investors of the consolidated trusts-current 3,117,634 2,304,518 Accrued expenses and other current liabilities 9,608 5,928 Other tax payable 27,694 34,448 Payable to investors of the consolidated trusts-noncurrent 1,468,890 4,010,597 Total liabilities 4,623,826 6,355,491 Year ended Year ended Year ended December 31, December 31, December 31, 2019 2020 2021 RMB RMB RMB Net revenue 1,279,203 2,089,679 1,704,267 Net income 469,825 899,010 708,908 Year ended Year ended Year ended December 31, December 31, December 31, 2019 2020 2021 RMB RMB RMB Net cash provided by (used in) operating activities 382,620 (674,291) 1,329,554 Net cash (used in) provided by investing activities (8,989,137) 1,964,538 (4,619,696) Net cash provided by (used in) financing activities 7,512,696 (3,268,383) 1,735,348 |
ACCOUNTS RECEIVABLE AND CONTR_2
ACCOUNTS RECEIVABLE AND CONTRACT ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of accounts receivables | The Group’s accounts receivable as of December 31, 2020 and 2021 are as follows: Allowance for Accounts uncollectible Accounts As of December 31, 2020 receivable Accounts receivable receivable, net Accounts receivable from loan facilitation service 151,004 (17,462) 133,542 Accounts receivable from post facilitation service 21,170 (3,958) 17,212 Accounts receivable from referral services 12,180 (1,836) 10,344 Total 184,354 (23,256) 161,098 Allowance for Accounts uncollectible Accounts As of December 31, 2021 receivable Accounts receivable receivable, net Accounts receivable from loan facilitation service 502 (375) 127 Accounts receivable from post facilitation service 5,825 (1,683) 4,142 Accounts receivable from referral services 10,797 — 10,797 Total 17,124 (2,058) 15,066 |
Schedule of movement of allowance for uncollectible accounts receivables | The movement of allowance for uncollectible accounts receivables for the years ended December 31, 2019, 2020 and 2021 are as follows: Opening Ending balance as of Current Write off in balance as of January 1, year net the current December 31, 2019 provision year 2019 Accounts receivable from loan facilitation service 77,152 171,602 (64,329) 184,425 Accounts receivable from post facilitation service 4,184 12,779 (16,690) 273 Total 81,336 184,381 (81,019) 184,698 Opening Ending balance as of Current Write off in balance as of January 1, year net the current December 31, 2020 provision year 2020 Accounts receivable from loan facilitation service 184,425 (102,832) (64,131) 17,462 Accounts receivable from post facilitation service 273 33,241 (29,556) 3,958 Accounts receivable from referral services — 1,836 — 1,836 Total 184,698 (67,755) (93,687) 23,256 Opening Ending balance as of Current Write off in balance as of January 1, year net the current December 31, 2021 provision year 2021 Accounts receivable from loan facilitation service 17,462 (11,309) (5,778) 375 Accounts receivable from post facilitation service 3,958 1,732 (4,007) 1,683 Accounts receivable from referral services 1,836 — (1,836) — Total 23,256 (9,577) (11,621) 2,058 |
Schedule of contract assets | The Group’s contract assets as of December 31, 2020 and 2021 are as follows: Allowance for Uncollectible Contract assets, As of December 31, 2020 Contract assets Contract assets net Contract assets from loan facilitation service 2,714,861 (222,526) 2,492,335 Contract assets from post facilitation service 29,259 (10,045) 19,214 Contract assets from referral services 29,818 — 29,818 Total 2,773,938 (232,571) 2,541,367 Allowance for Uncollectible Contract assets, As of December 31, 2021 Contract assets Contract assets net Contract assets from loan facilitation service 3,097,872 (287,397) 2,810,475 Contract assets from post facilitation service 282,767 (26,457) 256,310 Contract assets from referral services 238,877 — 238,877 Total 3,619,516 (313,854) 3,305,662 |
Schedule of movement of allowance uncollectible contract assets | The movement of allowance for uncollectible contract assets for the years ended December 31, 2019, 2020 and 2021 are as follows: Opening Ending balance as of Current Write off in balance as of January 1, year net the current December 31, 2019 provision year 2019 Contract assets from loan facilitation service 758 8,895 (2,991) 6,662 Contract assets from post facilitation service 421 1,728 (1,918) 231 Total 1,179 10,623 (4,909) 6,893 Opening Ending balance as of Current Write off in balance as of January 1, year net the current December 31, 2020 provision year 2020 Contract assets from loan facilitation service 6,662 220,582 (4,718) 222,526 Contract assets from post facilitation service 231 11,217 (1,403) 10,045 Total 6,893 231,799 (6,121) 232,571 Opening Ending balance as of Current Write off in balance as of January 1, year net the current December 31, 2021 provision year 2021 Contract assets from loan facilitation service 222,526 157,708 (92,837) 287,397 Contract assets from post facilitation service 10,045 52,379 (35,967) 26,457 Total 232,571 210,087 (128,804) 313,854 |
contract assets by year of origination | The principal of accounts receivable and contract assets by year of origination: 2021 2020 2019 Total As of December 31, 2021 Loan facilitation service 2,708,137 390,236 — 3,098,373 Post facilitation service 249,726 38,867 — 288,593 Referral Service 249,674 — — 249,674 Total 3,207,537 429,103 — 3,636,640 |
Due From Related Parties | |
Summary of accounts receivable and contract assets | The Group’s accounts receivable and contract assets generated from related parties and recorded in amounts due from related parties as of December 31, 2020 and 2021 are as follows: Accounts Allowance for Accounts receivable uncollectible receivable and contract accounts receivable and contract As of December 31, 2020 assets and contract assets Assets, net Accounts receivable from loan facilitation service — — — Accounts receivable from post facilitation service — — — Accounts receivable from referral services 1,004 — 1,004 Contract assets from loan facilitation service 82,528 (8,072) 74,456 Contract assets from post facilitation service 951 (227) 724 Total 84,483 (8,299) 76,184 Accounts Allowance for Accounts receivable uncollectible receivable and contract accounts receivable and contract As of December 31, 2021 assets and contract assets Assets, net Accounts receivable from loan facilitation service — — — Accounts receivable from post facilitation service — — — Accounts receivable from referral services — — — Contract assets from loan facilitation service 953,846 (120,208) 833,638 Contract assets from post facilitation service 5,178 (1,809) 3,369 Total 959,024 (122,017) 837,007 |
Summary of movement of allowance for uncollectible accounts receivables and contract assets | The movement of allowance for uncollectible accounts receivables and contract assets generated from related parties and recorded in amounts due from related parties for the year ended December 31, 2020 and 2021 are as follows: Opening Ending balance as of Current Write off in balance as of January 1, year net the current December 31, 2020 provision year 2020 Accounts receivable from loan facilitation service 9,648 30,215 (39,863) — Accounts receivable from post facilitation service 481 14,533 (15,014) — Contract assets from loan facilitation service 2,062 22,683 (16,673) 8,072 Contract assets from post facilitation service 144 7,639 (7,556) 227 Total 12,335 75,070 (79,106) 8,299 Opening Ending balance as of Current Write off in balance as of January 1, year net the current December 31, 2021 provision year 2021 Accounts receivable from loan facilitation service — — — — Accounts receivable from post facilitation service — — — — Contract assets from loan facilitation service 8,072 117,613 (5,477) 120,208 Contract assets from post facilitation service 227 6,482 (4,900) 1,809 Total 8,299 124,095 (10,377) 122,017 The principal of accounts receivable and contract assets by year of origination: 2021 2020 2019 Total As of December 31, 2021 Loan facilitation service 2,708,137 390,236 — 3,098,373 Post facilitation service 249,726 38,867 — 288,593 Referral Service 249,674 — — 249,674 Total 3,207,537 429,103 — 3,636,640 |
FINANCIAL ASSETS RECEIVABLE (Ta
FINANCIAL ASSETS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of financial assets receivable | December 31, December 31, 2020 2021 RMB RMB Financial assets receivable 4,601,642 4,897,854 Allowance for uncollectible receivables (390,834) (493,646) Financial assets receivable, net 4,210,808 4,404,208 |
Schedule of movement of financial assets receivable | Year ended Year ended Year ended December 31, 2019 December 31, 2020 December 31, 2021 RMB RMB RMB Balance at beginning of year 1,250,277 2,142,627 4,601,642 Adoption of ASC 326 — 117,321 — Addition in the current year 3,650,311 6,885,976 6,626,322 Collection in the current year (2,721,168) (4,478,593) (6,189,783) Write-off (36,793) (65,689) (140,327) Balance at end of year 2,142,627 4,601,642 4,897,854 |
Schedule of movement of allowance for uncollectible receivables | Year ended Year ended Year ended December 31, 2019 December 31, 2020 December 31, 2021 RMB RMB RMB Balance at beginning of year 56,656 170,803 390,834 Current year net provision 150,940 285,720 243,139 Write-off (36,793) (65,689) (140,327) Balance at end of year 170,803 390,834 493,646 |
Schedule of aging of loans | 31-60 over 60 Total 0-30 days days days financial past past past assets due due due Current receivable December 31, 2020 15,673 9,572 — 4,576,397 4,601,642 December 31, 2021 15,594 12,038 — 4,870,222 4,897,854 |
Principal of financial assets receivable by year of origination | 2021 2020 2019 Total December 31, 2021 4,078,249 819,605 — 4,897,854 |
Due From Related Parties | |
Schedule of financial assets receivable | December 31, December 31, 2020 2021 RMB RMB Financial assets receivable 3,149 — Allowance for uncollectible receivables (2,033) — Financial assets receivable, net 1,116 — |
Schedule of movement of financial assets receivable | Year ended Year ended December 31, December 31, 2020 2021 RMB RMB Balance at beginning of year 130,765 3,149 Addition in the current year 35,151 — Collection in the current year (124,830) (309) Write-off (37,937) (2,840) Balance at end of year 3,149 — |
Schedule of movement of allowance for uncollectible receivables | Year ended Year ended December 31, December 31, 2020 2021 RMB RMB Balance at beginning of year 13,633 2,033 Current year net provision 26,337 807 Write-off (37,937) (2,840) Balance at end of year 2,033 — |
LOANS RECEIVABLE, NET (Tables)
LOANS RECEIVABLE, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
LOANS RECEIVABLE, NET. | |
Schedule of loans receivable | December 31, December 31, 2020 2021 RMB RMB Loans receivable 8,010,081 13,652,723 Less allowance for loan losses (421,767) (948,893) Loans receivable, net 7,588,314 12,703,830 |
Schedule of aging of loans | The following table presents the aging of loans as of December 31, 2020 and 2021: 0-30 days 31-60 days over 6 0 days Total amount past due past due past due past due Current Total loans December 31, 2020 (RMB) 43,766 32,038 — 75,804 7,934,277 8,010,081 December 31, 2021 (RMB) 113,771 87,171 — 200,942 13,451,781 13,652,723 |
Schedule of movement of allowance for loan losses | Year ended Year ended Year ended December 31, December 31, December 31, 2019 2020 2021 RMB RMB RMB Balance at beginning of year 25,895 351,639 421,767 Provision for loan losses 486,991 698,701 965,419 Gross write-off (161,976) (636,766) (475,352) Recoveries 729 8,193 37,059 Balance at end of year 351,639 421,767 948,893 |
principal of loans receivable by year of origination | The principal of loans receivable as of December 31, 2021 by year of origination is as follows: 2021 2020 Total loans Loans receivable 13,614,369 38,354 13,652,723 The principal of loans receivable as of December 31, 2020 by year of origination is as follows: 2020 2019 Total loans Loans receivable 7,987,657 22,424 8,010,081 |
LAND USE RIGHTS, NET (Tables)
LAND USE RIGHTS, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
LAND USE RIGHTS, NET. | |
Schedule of land use rights | Year ended December 31, 2021 RMB Cost 1,036,178 Accumulated amortization (17,270) Land use rights, net 1,018,908 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
Schedule of accrued expenses and other current liabilities | December 31, December 31, 2020 2021 RMB RMB User traffic direction fees 201,041 472,269 Payable to funding partners (1) 163,234 422,423 Accrued payroll and welfare 144,784 409,216 Payable for third-party service fee 196,718 298,411 Payable to shareholder of non-controlling interests (2) — 296,617 Dividend payable(3) — 276,991 Lease liability 28,528 25,779 Others 75,456 56,623 Total 809,761 2,258,329 (1) (2) (3) |
GUARANTEE LIABILITIES (Tables)
GUARANTEE LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
GUARANTEE LIABILITIES. | |
Schedule of movement of guarantee liabilities | RMB As of January 1, 2020 2,148,402 Provision at the inception of new loans 6,921,127 Released into revenue (4,896,032) As of December 31, 2020 4,173,497 As of January 1, 2021 4,173,497 Provision at the inception of new loans 6,626,322 Released into revenue (5,981,675) As of December 31, 2021 4,818,144 Guarantee liabilities-contingent RMB As of January 1, 2020 2,687,275 Provision for contingent liabilities 4,794,127 Net payout (1) (3,937,948) As of December 31, 2020 3,543,454 As of January 1, 2021 3,543,454 Provision for contingent liabilities 3,078,224 Net payout (1) (3,336,597) As of December 31, 2021 3,285,081 (1) Net payout represents the amount paid upon borrowers’ default net of subsequent recoveries from the borrowers during a given period. |
Schedule of aging of the Group's contractual amounts of the outstanding loans subject to guarantee | The following table summarizes the aging of the Group’s contractual amounts of the outstanding loans subject to guarantee: 31-60 61-90 Over 90 0-30 days days days days past past past past due due due due Current Total loans December 31, 2020 (RMB): 355,252 158,048 68,919 — 55,019,645 55,601,864 December 31, 2021 (RMB): 446,780 235,769 57,526 — 49,117,630 49,857,705 |
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 major related parties and their relationships with the Group | The table below sets forth the major related parties and their relationships with the Group, with which the Group entered into transactions during the years ended December 31, 2019, 2020 and 2021: Name of related parties Relationship with the group 360 Security Technology Inc. (“360 Group”) Entity controlled by Mr. Zhou, the Chairman of the Group Beijing Qifutong Technology Co., Ltd. (“Qifutong”) An affiliate of 360 Group, ultimately controlled by Mr. Zhou, the Chairman of the Group Shanghai Qibutianxia Technology Co., Ltd. (“Qibutianxia”) Entity controlled by Mr. Zhou, the Chairman of the Group Beijing Qicaitianxia Technology Co., Ltd. (“Qicaitianxia”) Entity controlled by Mr. Zhou, the Chairman of the Group Beijing Qihu Technology Co., Ltd. (“Qihu”) An affiliate of 360 Group, ultimately controlled by Mr. Zhou, the Chairman of the Group Jinshang Consumer Finance Co.,Ltd. (“Jinshang”) An affiliate of an entity controlled by Mr. Zhou, the Chairman of the Group Beijing Zixuan Information Technology Co., Ltd. (“Beijing Zixuan”) Entity controlled by Mr. Zhou, the Chairman of the Group Xixian New Area Financial Asset Exchange Co., Ltd (“Xixian”) Entity controlled by Mr. Zhou, the Chairman of the Group Beijing Qifei Xiangyi Consultation Co., Ltd (“ Beijing Qifei”) Entity controlled by Mr. Zhou, the Chairman of the Group Hangzhou Qifei Huachuang Technology Co, Ltd (“ Hangzhou Qifei ”) Investee of the Group Shanghai Jiehu Internet Technology Co., Ltd. (“Shanghai Jiehu”) An affiliate of 360 Group, ultimately controlled by Mr. Zhou, the Chairman of the Group Kincheng Bank of Tianjin Co., Ltd. (“Kincheng”) An affiliate of an entity controlled by Mr. Zhou, the Chairman of the Group Tianjin Yujie Technology Co., Ltd. (Yujie) Entity controlled by Mr. Zhou, the Chairman of the Group Beijing Hongying Information Technology Co., Ltd. (“Hongying”) Entity controlled by Mr. Zhou, the Chairman of the Group Shareholders Shareholders of the Group Others Entities controlled by Mr. Zhou, the Chairman of the Group |
Schedule of transactions with related parties | Year ended Year ended Year ended December 31, December 31, December 31, 2019 2020 2021 RMB RMB RMB Referral service fee charged by Yujie — 15,152 347,585 Bandwidth service fee charged by Qihu 46,191 80,514 108,743 Brand fees charged by Qihu — — 23,585 Referral service fee charged by Qihu 47,640 24,507 19,789 Rental expenses charged by Beijing Qifei 5,074 7,137 — Rental expenses charged by Hongying — — 11,899 Corporate expenses allocated from Qibutianxia 3,230 11,321 7,075 Labor cost charged by Xixian 10,657 2,130 — Referral service fee charged by Qifutong 7,905 — — Others 8,364 3,120 4,378 Total 129,061 143,881 523,054 |
Schedule of services provided to the related parties | Year ended Year ended Year ended December 31, December 31, December 31, 2019 2020 2021 RMB RMB RMB Referral service fee charged from Qicaitianxia 197,018 3,558 — Loan facilitation services fee charged from Kincheng — 15,254 1,574,456 Loan facilitation services fee charged from Jinshang 59,871 150,515 219,513 Loan facilitation services fee charged from Beijing Zixuan 517,776 47,516 37 Post-facilitation services fee charged from Kincheng — 433 297,489 Post-facilitation services fee charged from Jinshang 43,497 48,094 69,398 Post-facilitation services fee charged from Beijing Zixuan 215,019 74,417 56 Others 4,299 6,591 17,612 Total 1,037,480 346,378 2,178,561 |
Schedule of amounts due from related parties | December 31, December 31, 2020 2021 RMB RMB Kincheng 13,505 771,335 Jinshang 158,655 194,123 Shareholders(1) 11,100 10,158 Beijing Zixuan 5,608 — Others 4,437 2,559 Total 193,305 978,175 (1) The balance as of December 31, 2021 represents the ADS registration fees incurred on behalf of certain shareholders that are to be reimbursed from them. |
Schedule of amounts due to related parties | December 31, December 31, 2020 2021 RMB RMB Qibutianxia 13,656 9,156 Qihu 24,624 144,999 Yujie 16,061 30,165 Others 17,221 29,737 Total 71,562 214,057 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
INCOME TAXES | |
Schedule of current and deferred portion of income tax expenses | Year ended Year ended Year ended December 31, December 31, December 31, 2019 2020 2021 RMB RMB RMB Current tax 1,179,089 1,355,651 1,053,979 Deferred tax (713,106) (769,615) 204,217 Total 465,983 586,036 1,258,196 |
Schedule of reconciliation between the income tax at PRC statutory tax rate and income tax expense | Year ended Year ended Year ended December 31, December 31, December 31, 2019 2020 2021 RMB RMB RMB Income before income tax benefit 2,967,287 4,081,745 7,022,709 Statutory tax rate in the PRC 25 % 25 % 25 % Income tax at statutory tax rate 741,822 1,020,436 1,755,677 Effect of different tax rate of subsidiary operation in other jurisdiction 3,875 3,728 11,708 Effect of non-deductible expenses 63,070 75,881 64,841 Effect of preferential tax rate and tax exemption (202,095) (452,033) (487,655) Effect of enacted tax rate change of deferred tax assets/liabilities (95,048) 248 1,125 Effect of research and development super-deduction (47,846) (69,802) (106,515) Effect of valuation allowance movement of deferred tax assets 2,205 7,578 19,015 Income tax expense 465,983 586,036 1,258,196 |
Schedule of the effect of preferential tax rates on the income per share | Years Ended December 31, (Amounts in Thousands Except Per Share Data) 2019 2020 2021 RMB RMB RMB Tax saving amount due to preferential tax rates 297,143 451,785 486,530 Income per share effect-basic 1.03 1.51 1.58 Income per share effect-diluted 0.99 1.47 1.51 |
Schedule of components of the deferred tax assets and deferred tax liabilities | December 31, December 31, 2020 2021 RMB RMB Deferred tax assets Guarantee liabilities 1,628,214 1,263,699 Provision for accounts receivable and contract assets and financial assets receivable 34,889 34,889 Provision for loan losses 186,462 330,684 Depreciation of land use rights — 14,162 Net operating loss carry forwards 22,785 37,376 Gross deferred tax assets 1,872,350 1,680,810 Valuation allowance on deferred tax assets (9,783) (28,798) Total deferred tax assets 1,862,567 1,652,012 Uncollected revenues (501,848) (938,721) Total deferred tax liabilities (501,848) (938,721) Net deferred tax assets 1,360,719 713,291 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SHARE-BASED COMPENSATION. | |
Schedule of assumptions | Year ended, December 31, 2021 RMB Risk-free rate of interest 2.76% Estimated volatility rate 67.27% Dividend yield 5.10% Expected life (years) 5.00 Exercise price USD 0.00001 |
Summary of option activity | Weighted Weighted Average Number of Average Remaining Aggregate Options Exercise Price Contract Life Intrinsic Value USD Years RMB Options outstanding at January 1, 2021 7,611,387 0.00001 6.20 292,734 Options granted in 2021 2,400 0.00001 9.64 175 Options converted in 2021 10,264,366 0.00001 8.89 749,915 Options forfeited in 2021 (348,236) 0.00001 5.84 (25,442) Options exercised in 2021 (4,584,580) 0.00001 4.94 (334,949) Options outstanding at December 31, 2021 12,945,337 0.00001 8.03 945,786 Options exercisable at December 31, 2021 4,051,903 0.00001 7.01 296,032 Options vested or expected to be vested at December 31, 2021 12,945,337 0.00001 8.03 945,786 |
Summary of the restricted shares | Weighted-Average Number of Grant-Date Restricted Shares Fair Value Outstanding at January 1, 2021 16,321,820 40.07 Granted 3,102,418 68.45 Converted (10,264,366) 40.84 Forfeited (749,794) 38.39 Vested (1,448,632) 37.06 Outstanding at December 31, 2021 6,961,446 52.38 |
Schedule of compensation costs | Year ended, Year ended, December 31, 2020 December 31, 2021 RMB RMB Facilitation, origination and servicing expenses 72,192 75,209 Sales and marketing expenses 8,164 12,340 General and administrative expenses 220,805 166,373 Total 301,161 253,922 |
LEASE (Tables)
LEASE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
LEASE | |
Schedule of supplemental cash flow information related to leases | Year ended, Year ended, December 31, 2020 December 31, 2021 RMB RMB Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 30,536 33,252 Right-of-use assets obtained in exchange for lease obligations: Operating leases 36,236 25,349 |
Schedule of ROU assets and lease liabilities | Year ended, Year ended, December 31, 2020 December 31, 2021 RMB RMB Right-of-use assets 48,990 42,606 Operating lease liabilities-current 28,528 25,779 Operating lease liabilities-non current 14,974 13,177 |
Schedule of weighted-average remaining lease term and weighted-average discount rate | Year ended, Year ended, December 31, 2020 December 31, 2021 RMB RMB Weighted-average remaining lease term 1.69 2.09 Weighted-average discount rate 6.16 % 6.22 % |
Schedule of maturities of operating lease liabilities | The maturities of operating lease liabilities as of December 31, 2020 and 2021 are as follows: Year ended, December 31, 2020 RMB 2021 32,255 2022 13,582 2023 710 2024 — 2025 and thereafter — Total undiscounted lease payments 46,547 Imputed interest (3,045) Total lease liabilities 43,502 The maturities of operating lease liabilities as of December 31, 2020 and 2021 are as follows: - continued Year ended, December 31, 2021 RMB 2022 28,203 2023 7,034 2024 3,550 2025 382 2026 and thereafter — Total undiscounted lease payments 39,169 Imputed interest (213) Total lease liabilities 38,956 |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
NET INCOME PER SHARE | |
Schedule of basic and diluted net income (loss) per share | Year ended Year ended Year ended December 31, December 31, December 31, 2019 2020 2021 RMB RMB RMB Numerator: Net income attributable to shareholders of the Company 2,501,595 3,496,606 5,781,725 Denominator: Weighted average Class A and Class B ordinary shares outstanding used in computing basic income per ordinary share 288,827,604 298,222,207 307,265,600 Plus: incremental weighted average ordinary shares from assumed exercise of stock options and restricted shares using the treasury stock method 12,110,866 8,442,892 14,132,153 Weighted average Class A and Class B ordinary shares outstanding used in computing diluted income per ordinary share 300,938,470 306,665,099 321,397,753 Basic net income per share 8.66 11.72 18.82 Diluted net income per share 8.31 11.40 17.99 |
ORGANIZATION AND PRINCIPAL AC_3
ORGANIZATION AND PRINCIPAL ACTIVITIES - Reorganization and Variable Interest Entity (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Exclusive Option Agreement | |
Reorganization and VIEs | |
Agreement term (in years) | 10 years |
Extended term of agreement (in years) | 10 years |
Exclusive Consultation and Services Agreement | |
Reorganization and VIEs | |
Agreement term (in years) | 10 years |
Extended term of agreement (in years) | 10 years |
Loan Agreement | |
Reorganization and VIEs | |
Notice Period for Termination of Agreement (in Months) | 1 month |
Equity Pledge Agreement | |
Reorganization and VIEs | |
Percentage of Equity interest pledged to WFOE | 100.00% |
ORGANIZATION AND PRINCIPAL AC_4
ORGANIZATION AND PRINCIPAL ACTIVITIES - Financial statement amounts and balances of the VIEs (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | |
ASSETS | |||||
Cash and cash equivalents | ¥ 6,116,360 | ¥ 4,418,416 | ¥ 2,108,123 | $ 959,790 | |
Restricted cash | 2,643,587 | 2,355,850 | 1,727,727 | 414,836 | |
Security deposit prepaid to third-party guarantee companies | 874,886 | 915,144 | 137,289 | ||
Funds receivable from third party payment service providers | 153,151 | 131,464 | 24,033 | ||
Accounts receivable and contract assets, net | 3,097,254 | 2,394,528 | 486,027 | ||
Financial assets receivable, net | 4,404,208 | 4,210,808 | |||
Amounts due from related parties | 837,324 | 193,305 | 131,394 | ||
Loans receivable, net | 9,844,481 | 7,500,629 | 1,544,814 | ||
Prepaid expenses and other assets | 383,937 | 401,224 | 60,246 | ||
Accounts receivable and contract assets, net-non current | 223,474 | 307,937 | 35,068 | ||
Financial assets receivable, net-non current | 597,965 | 645,326 | 93,834 | ||
Amounts due from related parties, non-current | 140,851 | 22,103 | |||
Loans receivable, net-noncurrent | 2,859,349 | 87,685 | 448,694 | ||
Property and equipment, net | 24,941 | 19,360 | 3,914 | ||
Land use rights, net | 1,018,908 | 159,889 | |||
Intangible assets | 4,961 | 3,403 | 778 | ||
Deferred tax assets | 834,717 | 1,398,562 | 697,348 | 130,985 | |
Other non-current assets | 42,606 | 48,990 | 6,686 | ||
TOTAL ASSETS | 33,504,995 | 24,387,305 | 5,257,663 | ||
LIABILITIES | |||||
Accrued expenses and other current liabilities | 2,258,329 | 809,761 | 354,381 | ||
Amounts due to related parties | 214,057 | 71,562 | 33,590 | ||
Short term loans | 397,576 | 186,800 | 62,388 | ||
Income tax payable | 624,112 | 1,227,314 | 97,937 | ||
Deferred tax liabilities | 121,426 | 37,843 | 19,054 | ||
Other long-term liabilities | 13,177 | 14,974 | 2,068 | ||
TOTAL LIABILITIES | 18,288,386 | 14,906,215 | $ 2,869,846 | ||
Net cash provided by operating activities | 5,789,700 | $ 908,530 | 5,325,810 | 2,973,075 | |
Net cash provided by (used in) investing activities | (6,064,328) | (951,625) | 892,770 | (8,860,441) | |
Net cash provided by (used in) financing activities | 2,263,720 | $ 355,227 | (3,282,400) | 7,707,858 | |
Consolidated VIEs | |||||
ASSETS | |||||
Cash and cash equivalents | 4,605,851 | 3,709,740 | |||
Restricted cash | 1,986,512 | 2,006,874 | |||
Security deposit prepaid to third-party guarantee companies | 874,886 | 915,144 | |||
Funds receivable from third party payment service providers | 153,151 | 131,464 | |||
Accounts receivable and contract assets, net | 2,133,477 | 2,316,357 | |||
Financial assets receivable, net | 3,806,243 | 3,480,605 | |||
Amounts due from related parties | 608,924 | 178,791 | |||
Loans receivable, net | 1,197,532 | 1,018,124 | |||
Prepaid expenses and other assets | 235,780 | 202,070 | |||
Accounts receivable and contract assets, net-non current | 217,298 | 307,937 | |||
Financial assets receivable, net-non current | 597,965 | 645,326 | |||
Amounts due from related parties, non-current | 121,855 | ||||
Loans receivable, net-noncurrent | 1,029,545 | 50,528 | |||
Property and equipment, net | 15,074 | 15,370 | |||
Land use rights, net | 1,018,908 | ||||
Intangible assets | 3,972 | 1,802 | |||
Deferred tax assets | 779,291 | 1,353,420 | |||
Other non-current assets | 27,729 | 31,539 | |||
TOTAL ASSETS | 19,413,993 | 16,365,091 | |||
LIABILITIES | |||||
Accrued expenses and other current liabilities | 1,820,609 | 771,562 | |||
Amounts due to related parties | 94,057 | 71,562 | |||
Short term loans | 150,000 | 105,238 | |||
Guarantee liabilities | 8,103,225 | 7,724,841 | |||
Income tax payable | 449,553 | 1,151,275 | |||
Other tax payable | 218,017 | 215,906 | |||
Deferred tax liabilities | 65,542 | 37,843 | |||
Other long-term liabilities | 10,271 | 6,806 | |||
TOTAL LIABILITIES | 10,911,274 | 10,085,033 | |||
Net revenue | 13,674,223 | 11,062,032 | 7,318,362 | ||
Net income | 5,462,150 | 2,541,386 | 1,707,839 | ||
Net cash provided by operating activities | 5,431,654 | 3,715,112 | 2,010,741 | ||
Net cash provided by (used in) investing activities | (1,427,958) | (1,012,415) | 134,286 | ||
Net cash provided by (used in) financing activities | ¥ 359,082 | ¥ (94,762) | ¥ 198,242 | ||
Percentage of consolidated revenues | 82.00% | 82.00% | 82.00% | 79.00% | |
Percentage of consolidated total assets | 58.00% | 58.00% | 67.00% | ||
Percentage of consolidated total liabilities | 60.00% | 60.00% | 68.00% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Consolidated Trusts (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Nov. 30, 2017 | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | Dec. 30, 2021CNY (¥) | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Asset based Securities, maximum issue scale | ¥ 10,000,000 | ¥ 5,000,000 | |||||
Asset based Securities, beneficial rights value | 1,700,000 | 2,300,000 | ¥ 4,700,000 | ||||
Provision for loan losses | ¥ 965,419 | 698,701 | 486,991 | ||||
Loans written off | 475,352 | 636,766 | 161,976 | ||||
ASSETS. | |||||||
Restricted Cash | 2,643,587 | 2,355,850 | 1,727,727 | $ 414,836 | |||
Loans receivable, net | 9,844,481 | 7,500,629 | 1,544,814 | ||||
Prepaid expenses and other assets | 383,937 | 401,224 | 60,246 | ||||
Loans receivable, net-noncurrent | 2,859,349 | 87,685 | 448,694 | ||||
TOTAL ASSETS | 33,504,995 | 24,387,305 | 5,257,663 | ||||
LIABILITIES. | |||||||
Payable to investors of the consolidated trusts-current | 2,304,518 | 3,117,634 | 361,629 | ||||
Accrued expenses and other current liabilities | 2,258,329 | 809,761 | 354,381 | ||||
Payable to investors of the consolidated trusts-noncurrent | 4,010,597 | 1,468,890 | 629,350 | ||||
TOTAL LIABILITIES | 18,288,386 | 14,906,215 | $ 2,869,846 | ||||
Net revenue | 16,635,645 | $ 2,610,495 | 13,563,954 | 9,219,847 | |||
Net cash provided by (used in) operating activities | 5,789,700 | 908,530 | 5,325,810 | 2,973,075 | |||
Net cash (used in) provided by investing activities | (6,064,328) | (951,625) | 892,770 | (8,860,441) | |||
Net cash provided by (used in) financing activities | ¥ 2,263,720 | $ 355,227 | (3,282,400) | 7,707,858 | |||
Minimum | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Term of the plan | 1 year | 1 year | |||||
Maximum | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Term of the plan | 2 years | 2 years | |||||
Subordinated tranche securities | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
ABS purchased, value | ¥ 602,000 | ||||||
Senior tranche securities | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
ABS purchased, value | 794,380 | ||||||
Shenzhen Stock Exchange | Listing And Transferring Assets Based Securities [Member] | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Asset based Securities, maximum issue scale | 4,000,000 | ||||||
Shanghai Stock Exchange | Listing And Transferring Assets Based Securities [Member] | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Asset based Securities, maximum issue scale | 8,000,000 | ||||||
Consolidated Trusts | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Payable to investors of the consolidated trusts - current | 2,139,063 | 1,765,175 | |||||
Payable to investors of the consolidated trusts - noncurrent | 3,903,597 | 1,468,890 | |||||
Repurchase of delinquent loans | 904,586 | 831,203 | |||||
Repurchase of performing loans upon liquidation of consolidated trusts | 12,686 | 17,185 | |||||
Provision for loan losses | 661,402 | 595,047 | 464,379 | ||||
Loans written off | 1,033,228 | 603,758 | 142,882 | ||||
ASSETS. | |||||||
Restricted Cash | 657,075 | 348,976 | |||||
Loans receivable, net | 8,646,950 | 6,447,233 | |||||
Prepaid expenses and other assets | 104,515 | 101,729 | |||||
Loans receivable, net-noncurrent | 1,829,804 | 37,157 | |||||
TOTAL ASSETS | 11,238,344 | 6,935,095 | |||||
LIABILITIES. | |||||||
Payable to investors of the consolidated trusts-current | 2,304,518 | 3,117,634 | |||||
Accrued expenses and other current liabilities | 5,928 | 9,608 | |||||
Other tax payable | 34,448 | 27,694 | |||||
Payable to investors of the consolidated trusts-noncurrent | 4,010,597 | 1,468,890 | |||||
TOTAL LIABILITIES | 6,355,491 | 4,623,826 | |||||
Net revenue | 1,704,267 | 2,089,679 | 1,279,203 | ||||
Net income | 708,908 | 899,010 | 469,825 | ||||
Net cash provided by (used in) operating activities | 1,329,554 | (674,291) | 382,620 | ||||
Net cash (used in) provided by investing activities | (4,619,696) | 1,964,538 | (8,989,137) | ||||
Net cash provided by (used in) financing activities | ¥ 1,735,348 | ¥ (3,268,383) | ¥ 7,512,696 | ||||
Percentage of consolidated revenues | 10.00% | 10.00% | 15.00% | 14.00% | |||
Percentage of consolidated total assets | 34.00% | 34.00% | 28.00% | ||||
Percentage of consolidated total liabilities | 35.00% | 35.00% | 31.00% | ||||
Consolidated Trusts | Minimum | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Repurchase of loans delinquent period | 30 days | ||||||
Consolidated Trusts | Maximum | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Repurchase of loans delinquent period | 90 days |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue recognition , Restricted cash and Fair value (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥)item | Dec. 31, 2021USD ($)item | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Disaggregation of Revenue [Line Items] | ||||
Number of business models | item | 2 | 2 | ||
Obligation to pay interest and late fees, maximum threshold percentage | 36.00% | 36.00% | ||
Total net revenue | ¥ 16,635,645 | $ 2,610,495 | ¥ 13,563,954 | ¥ 9,219,847 |
Revenue, net of value-added tax and related surcharges: | ||||
Performance obligations | 1,637,484 | 1,195,945 | ||
Revenue recognized from performance obligations | 210,818 | 73,394 | ||
Taxes excluded from revenues | 995,060 | 795,388 | 547,344 | |
Restricted cash | ||||
Restricted cash related to deposit to the funding banks | ¥ 1,986,512 | ¥ 2,006,874 | ||
Operating period | 2 years | 2 years | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | ||||
Revenue, net of value-added tax and related surcharges: | ||||
Revenue, remaining performance obligation, Expected timing of satisfaction, period | 12 months | |||
Revenue, remaining performance obligation (as a percent) | 88.00% | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | ||||
Revenue, net of value-added tax and related surcharges: | ||||
Revenue, remaining performance obligation, Expected timing of satisfaction, period | 12 months | |||
Revenue, remaining performance obligation (as a percent) | 88.00% | |||
Credit driven services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | ¥ 10,189,167 | $ 1,598,902 | ¥ 11,403,675 | 8,013,391 |
Loan facilitation and servicing fees-capital heavy | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 2,326,027 | 365,004 | 4,596,555 | 6,273,131 |
Revenue from post-facilitation services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 1,399,310 | 219,582 | 3,160,457 | 4,396,300 |
Revenue from post-origination services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 926,717 | 145,422 | 1,436,098 | 1,876,831 |
Financing income | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 2,184,128 | 342,737 | 2,184,180 | 1,309,616 |
Releasing of guarantee liabilities | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 5,583,135 | 876,116 | 4,506,935 | 285,407 |
Other services fees. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 95,877 | 15,045 | 116,005 | 145,237 |
Platform services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 6,446,478 | 1,011,593 | 2,160,279 | 1,206,456 |
Loan facilitation and servicing fees-capital light | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 5,677,941 | 890,993 | 1,826,654 | 814,581 |
Revenue from loan facilitation services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 4,484,632 | 703,737 | 1,416,715 | 672,982 |
Revenue from post-origination services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 1,193,309 | 187,256 | 409,939 | 141,599 |
Referral services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 620,317 | 97,341 | 265,300 | 375,551 |
Other services fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | ¥ 148,220 | $ 23,259 | ¥ 68,325 | ¥ 16,324 |
Loan facilitation service | ||||
Disaggregation of Revenue [Line Items] | ||||
Number of separate services provided for each loan facilitated | item | 3 | 3 | ||
Number of separate performance obligations under ASC 606 | item | 2 | 2 | ||
Minimum | ||||
Disaggregation of Revenue [Line Items] | ||||
Loan terms (In months) | 1 month | 1 month | ||
Maximum | ||||
Disaggregation of Revenue [Line Items] | ||||
Loan terms (In months) | 36 months | 36 months | ||
Loan amount | ¥ 500 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and equipment, net (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019USD ($) | |
Property and equipment, net | |||
Depreciation expense on property and equipment | ¥ 13,483 | ¥ 10,439 | $ 6,837 |
Electronic Equipment | |||
Property and equipment, net | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Furniture and office equipment | |||
Property and equipment, net | |||
Property, Plant and Equipment, Useful Life | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Guarantee liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Jan. 01, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
ASSETS. | |||||
Financial assets receivable | ¥ 1,971,824 | ||||
Deferred tax assets | ¥ 834,717 | $ 130,985 | ¥ 1,398,562 | 697,348 | |
LIABILITIES. | |||||
Guarantee liabilities-stand ready | 4,818,144 | 756,072 | 4,173,497 | 2,212,125 | |
Guarantee liabilities-contingent | 3,285,081 | 515,501 | 3,543,454 | 734,730 | |
Other tax payable | 241,369 | 37,876 | 254,486 | 263,856 | |
SHAREHOLDERS' EQUITY | |||||
Retained earnings | ¥ 9,642,506 | $ 1,513,120 | ¥ 4,137,542 | 2,071,332 | |
Adjustment | |||||
LIABILITIES. | |||||
Guarantee liabilities-stand ready | 2,148,402 | ||||
ASU No. 2016-13 | Adjustment | |||||
ASSETS. | |||||
Financial assets receivable | 117,321 | ||||
Deferred tax assets | 336,830 | ||||
LIABILITIES. | |||||
Guarantee liabilities-stand ready | (63,723) | ||||
Guarantee liabilities-contingent | 1,952,545 | ||||
Other tax payable | (4,275) | ||||
SHAREHOLDERS' EQUITY | |||||
Retained earnings | ¥ 1,430,000 | ¥ (1,430,396) | |||
ASU No. 2016-13 | Adjusted Balance | |||||
ASSETS. | |||||
Financial assets receivable | 2,089,145 | ||||
Deferred tax assets | 1,034,178 | ||||
LIABILITIES. | |||||
Guarantee liabilities-stand ready | 2,148,402 | ||||
Guarantee liabilities-contingent | 2,687,275 | ||||
Other tax payable | 259,581 | ||||
SHAREHOLDERS' EQUITY | |||||
Retained earnings | ¥ 640,936 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Financial assets receivable (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Financial assets receivable | |||
Impairment losses | ¥ 243,139 | ¥ 285,720 | ¥ 150,940 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Origination and servicing expense, Sales and marketing expenses, Government grant and Value added taxes (VAT) (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Product Information [Line Items] | |||
Cash reward | ¥ 23,900 | ¥ 13,100 | ¥ 14,700 |
Advertising and marketing related expenses | 1,803,243 | 859,386 | 2,725,812 |
Government grants received | ¥ 17,783 | ¥ 74,449 | ¥ 128,147 |
Product Concentration Risk | Total revenues | Financial institution partners | |||
Product Information [Line Items] | |||
Percent of total revenues generated by a major funding institution | 10.00% | 10.00% | 10.00% |
Consolidated Trusts | |||
Product Information [Line Items] | |||
VAT rate (as a percent) | 3.00% | ||
Other Entities | |||
Product Information [Line Items] | |||
VAT rate (as a percent) | 6.00% |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Certain risks and concentrations (Details) - Total revenues - Customer | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
A | |||
Concentration Risk [Line Items] | |||
Concentration risk (in percent) | 16.40% | ||
B | |||
Concentration Risk [Line Items] | |||
Concentration risk (in percent) | 14.30% | ||
C | |||
Concentration Risk [Line Items] | |||
Concentration risk (in percent) | 10.80% | 11.30% | |
D | |||
Concentration Risk [Line Items] | |||
Concentration risk (in percent) | 10.20% | 15.70% | |
E | |||
Concentration Risk [Line Items] | |||
Concentration risk (in percent) | 10.60% |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Convenience translation, Employee defined contribution plan (Details) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021CNY (¥)$ / ¥ | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Convenience translation rate (USD to RMB) | $ / ¥ | 6.3726 | ||
Defined contribution plan cost | ¥ | ¥ 146,426 | ¥ 72,632 | ¥ 71,433 |
ACCOUNTS RECEIVABLE AND CONTR_3
ACCOUNTS RECEIVABLE AND CONTRACT ASSETS, NET (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts receivable | |||
Accounts Receivable | ¥ 17,124 | ¥ 184,354 | |
Allowance for uncollectible accounts receivable | (2,058) | (23,256) | ¥ (184,698) |
Account receivable, net | 15,066 | 161,098 | |
Movement of allowance for uncollectible receivables | |||
Opening balance | 23,256 | 184,698 | 81,336 |
Current year net provision | (9,577) | (67,755) | 184,381 |
Write-off in the current year | (11,621) | (93,687) | (81,019) |
Ending balance | 2,058 | 23,256 | 184,698 |
Contract assets | |||
Contract assets | 3,619,516 | 2,773,938 | |
Allowance for uncollectible Contract assets | (313,854) | (232,571) | (6,893) |
Contract assets, net | 3,305,662 | 2,541,367 | |
Movement of allowance for uncollectible contract assets | |||
Opening balance | 232,571 | 6,893 | 1,179 |
Current year net provision | 210,087 | 231,799 | 10,623 |
Write off in the current year | (128,804) | (6,121) | (4,909) |
Ending balance | 313,854 | 232,571 | 6,893 |
Accounts Receivable And Contract Assets | |||
Accounts receivable and contract assets | 959,024 | 84,483 | |
Allowance for uncollectible accounts receivable and contract assets | (122,017) | (8,299) | |
Accounts receivable and contract Assets, net | 837,007 | 76,184 | |
Opening balance | 8,299 | 12,335 | |
Current year net provision | 124,095 | 75,070 | |
Write off in the current year | (10,377) | (79,106) | |
Ending balance | 122,017 | 8,299 | 12,335 |
Amount of contract assets originated in current fiscal year. | 3,636,640 | ||
2021 | |||
Accounts Receivable And Contract Assets | |||
Amount of contract assets originated in current fiscal year. | 3,207,537 | ||
2020 | |||
Accounts Receivable And Contract Assets | |||
Amount of contract assets originated in current fiscal year. | 429,103 | ||
Loan facilitation service | |||
Accounts receivable | |||
Accounts Receivable | 502 | 151,004 | |
Allowance for uncollectible accounts receivable | (375) | (17,462) | (184,425) |
Account receivable, net | 127 | 133,542 | |
Movement of allowance for uncollectible receivables | |||
Opening balance | 17,462 | 184,425 | 77,152 |
Current year net provision | (11,309) | (102,832) | 171,602 |
Write-off in the current year | (5,778) | (64,131) | (64,329) |
Ending balance | 375 | 17,462 | 184,425 |
Contract assets | |||
Contract assets | 3,097,872 | 2,714,861 | |
Allowance for uncollectible Contract assets | (287,397) | (222,526) | (6,662) |
Contract assets, net | 2,810,475 | 2,492,335 | |
Movement of allowance for uncollectible contract assets | |||
Opening balance | 222,526 | 6,662 | 758 |
Current year net provision | 157,708 | 220,582 | 8,895 |
Write off in the current year | (92,837) | (4,718) | (2,991) |
Ending balance | 287,397 | 222,526 | 6,662 |
Accounts Receivable And Contract Assets | |||
Amount of contract assets originated in current fiscal year. | 3,098,373 | ||
Loan facilitation service | 2021 | |||
Accounts Receivable And Contract Assets | |||
Amount of contract assets originated in current fiscal year. | 2,708,137 | ||
Loan facilitation service | 2020 | |||
Accounts Receivable And Contract Assets | |||
Amount of contract assets originated in current fiscal year. | 390,236 | ||
Post facilitation service | |||
Accounts receivable | |||
Accounts Receivable | 5,825 | 21,170 | |
Allowance for uncollectible accounts receivable | (1,683) | (3,958) | (273) |
Account receivable, net | 4,142 | 17,212 | |
Movement of allowance for uncollectible receivables | |||
Opening balance | 3,958 | 273 | 4,184 |
Current year net provision | 1,732 | 33,241 | 12,779 |
Write-off in the current year | (4,007) | (29,556) | (16,690) |
Ending balance | 1,683 | 3,958 | 273 |
Contract assets | |||
Contract assets | 282,767 | 29,259 | |
Allowance for uncollectible Contract assets | (26,457) | (10,045) | (231) |
Contract assets, net | 256,310 | 19,214 | |
Movement of allowance for uncollectible contract assets | |||
Opening balance | 10,045 | 231 | 421 |
Current year net provision | 52,379 | 11,217 | 1,728 |
Write off in the current year | (35,967) | (1,403) | (1,918) |
Ending balance | 26,457 | 10,045 | 231 |
Accounts Receivable And Contract Assets | |||
Amount of contract assets originated in current fiscal year. | 288,593 | ||
Post facilitation service | 2021 | |||
Accounts Receivable And Contract Assets | |||
Amount of contract assets originated in current fiscal year. | 249,726 | ||
Post facilitation service | 2020 | |||
Accounts Receivable And Contract Assets | |||
Amount of contract assets originated in current fiscal year. | 38,867 | ||
Referral services | |||
Accounts receivable | |||
Accounts Receivable | 10,797 | 12,180 | |
Allowance for uncollectible accounts receivable | (1,836) | ||
Account receivable, net | 10,797 | 10,344 | |
Movement of allowance for uncollectible receivables | |||
Opening balance | 1,836 | ||
Current year net provision | 1,836 | ||
Write-off in the current year | (1,836) | ||
Ending balance | 1,836 | ||
Contract assets | |||
Contract assets | 238,877 | 29,818 | |
Contract assets, net | 238,877 | 29,818 | |
Accounts Receivable And Contract Assets | |||
Amount of contract assets originated in current fiscal year. | 249,674 | ||
Referral services | 2021 | |||
Accounts Receivable And Contract Assets | |||
Amount of contract assets originated in current fiscal year. | 249,674 | ||
Accounts Receivable | Loan facilitation service | |||
Accounts Receivable And Contract Assets | |||
Opening balance | 9,648 | ||
Current year net provision | 30,215 | ||
Write off in the current year | (39,863) | ||
Ending balance | 9,648 | ||
Accounts Receivable | Post facilitation service | |||
Accounts Receivable And Contract Assets | |||
Opening balance | 481 | ||
Current year net provision | 14,533 | ||
Write off in the current year | (15,014) | ||
Ending balance | 481 | ||
Accounts Receivable | Referral services | |||
Accounts Receivable And Contract Assets | |||
Accounts receivable and contract assets | 1,004 | ||
Accounts receivable and contract Assets, net | 1,004 | ||
Contract Assets | Loan facilitation service | |||
Accounts Receivable And Contract Assets | |||
Accounts receivable and contract assets | 953,846 | 82,528 | |
Allowance for uncollectible accounts receivable and contract assets | (120,208) | (8,072) | |
Accounts receivable and contract Assets, net | 833,638 | 74,456 | |
Opening balance | 8,072 | 2,062 | |
Current year net provision | 117,613 | 22,683 | |
Write off in the current year | (5,477) | (16,673) | |
Ending balance | 120,208 | 8,072 | 2,062 |
Contract Assets | Post facilitation service | |||
Accounts Receivable And Contract Assets | |||
Accounts receivable and contract assets | 5,178 | 951 | |
Allowance for uncollectible accounts receivable and contract assets | (1,809) | (227) | |
Accounts receivable and contract Assets, net | 3,369 | 724 | |
Opening balance | 227 | 144 | |
Current year net provision | 6,482 | 7,639 | |
Write off in the current year | (4,900) | (7,556) | |
Ending balance | ¥ 1,809 | ¥ 227 | ¥ 144 |
FINANCIAL ASSETS RECEIVABLE (De
FINANCIAL ASSETS RECEIVABLE (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Financial assets receivable | |||
Financial assets receivable | ¥ 4,897,854 | ¥ 4,601,642 | ¥ 2,142,627 |
Allowance for uncollectible receivables | (493,646) | (390,834) | (170,803) |
Financial assets receivable, net | 4,404,208 | 4,210,808 | |
Movement of financial assets receivable | |||
Balance at beginning of year | 4,601,642 | 2,142,627 | 1,250,277 |
Addition in the current year | 6,626,322 | 6,885,976 | 3,650,311 |
Collection in the current year | (6,189,783) | (4,478,593) | (2,721,168) |
Write-off | (140,327) | (65,689) | (36,793) |
Balance at end of year | 4,897,854 | 4,601,642 | 2,142,627 |
Movement of allowance for uncollectible receivables | |||
Balance at beginning of year | 390,834 | 170,803 | 56,656 |
Current year net provision | (243,139) | (285,720) | (150,940) |
Write-off | (140,327) | (65,689) | (36,793) |
Balance at end of year | 493,646 | 390,834 | 170,803 |
Adjustment | |||
Financial assets receivable | |||
Financial assets receivable | 117,321 | ||
Movement of financial assets receivable | |||
Balance at beginning of year | 117,321 | ||
Balance at end of year | 117,321 | ||
2020 | |||
Financial assets receivable | |||
Financial assets receivable | 819,605 | ||
Movement of financial assets receivable | |||
Balance at end of year | 819,605 | ||
2021 | |||
Financial assets receivable | |||
Financial assets receivable | 4,078,249 | ||
Movement of financial assets receivable | |||
Balance at end of year | 4,078,249 | ||
Amount Due From Related Parties | |||
Financial assets receivable | |||
Financial assets receivable | 3,149 | 130,765 | |
Allowance for uncollectible receivables | (2,033) | (13,633) | |
Financial assets receivable, net | 1,116 | ||
Movement of financial assets receivable | |||
Balance at beginning of year | 3,149 | 130,765 | |
Addition in the current year | 35,151 | ||
Collection in the current year | (309) | (124,830) | |
Write-off | (2,840) | (37,937) | |
Balance at end of year | 3,149 | 130,765 | |
Movement of allowance for uncollectible receivables | |||
Balance at beginning of year | 2,033 | 13,633 | |
Current year net provision | 807 | 26,337 | |
Write-off | (2,840) | (37,937) | |
Balance at end of year | 2,033 | ¥ 13,633 | |
0-30 days past due | |||
Financial assets receivable | |||
Financial assets receivable | 15,594 | 15,673 | |
Movement of financial assets receivable | |||
Balance at beginning of year | 15,673 | ||
Balance at end of year | 15,594 | 15,673 | |
30 to 60 days past due | |||
Financial assets receivable | |||
Financial assets receivable | 9,572 | ||
Movement of financial assets receivable | |||
Balance at beginning of year | 9,572 | ||
Balance at end of year | 9,572 | ||
31 to 60 days past due | |||
Financial assets receivable | |||
Financial assets receivable | 12,038 | ||
Movement of financial assets receivable | |||
Balance at end of year | 12,038 | ||
Current | |||
Financial assets receivable | |||
Financial assets receivable | 4,870,222 | 4,576,397 | |
Movement of financial assets receivable | |||
Balance at beginning of year | 4,576,397 | ||
Balance at end of year | ¥ 4,870,222 | ¥ 4,576,397 |
LOANS RECEIVABLE, NET - Loans r
LOANS RECEIVABLE, NET - Loans receivable (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
LOANS RECEIVABLE, NET. | ||||
Loans receivable | ¥ 13,652,723 | ¥ 8,010,081 | ||
Less allowance for loan losses | (948,893) | (421,767) | ¥ (351,639) | ¥ (25,895) |
Loans receivable, net | 12,703,830 | 7,588,314 | ||
Accrued interest receivable | 86,144 | 87,278 | ||
Net of allowance for loans receivable | ¥ 5,987 | ¥ 3,200 |
LOANS RECEIVABLE, NET - Aging o
LOANS RECEIVABLE, NET - Aging of loans (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Aging of loans | ||
Current | ¥ 13,451,781 | ¥ 7,934,277 |
Total Loans receivable | 13,652,723 | 8,010,081 |
0-30 days past due | ||
Aging of loans | ||
Total amount past due | 113,771 | 43,766 |
31 to 60 days past due | ||
Aging of loans | ||
Total amount past due | 87,171 | 32,038 |
Total amount past due | ||
Aging of loans | ||
Total amount past due | ¥ 200,942 | ¥ 75,804 |
LOANS RECEIVABLE, NET - Movemen
LOANS RECEIVABLE, NET - Movement of allowance for loan losses (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Movement of allowance for loan losses | |||
Balance at beginning of year | ¥ 421,767 | ¥ 351,639 | ¥ 25,895 |
Provision for loan losses | 965,419 | 698,701 | 486,991 |
Gross write-off | (475,352) | (636,766) | (161,976) |
Recoveries | 37,059 | 8,193 | 729 |
Balance at end of year | ¥ 948,893 | ¥ 421,767 | ¥ 351,639 |
LOANS RECEIVABLE, NET - Nonaccr
LOANS RECEIVABLE, NET - Nonaccrual loan principal (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
LOANS RECEIVABLE, NET. | ||
Nonaccrual loans, net | ¥ 0 | ¥ 0 |
LOANS RECEIVABLE, NET - Princip
LOANS RECEIVABLE, NET - Principal of loans (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans receivable | ¥ 13,652,723 | ¥ 8,010,081 |
Total Loans receivable | 13,652,723 | 8,010,081 |
2021 | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans receivable | 13,614,369 | |
2020 | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans receivable | ¥ 38,354 | 7,987,657 |
2019 | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans receivable | ¥ 22,424 |
LAND USE RIGHTS, NET (Details)
LAND USE RIGHTS, NET (Details) - 12 months ended Dec. 31, 2021 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
LAND USE RIGHTS, NET. | ||
Cost | ¥ 1,036,178 | |
Accumulated amortization | (17,270) | |
Land use rights, net | 1,018,908 | $ 159,889 |
Amortization of land use rights | ¥ 17,270 |
SHORT-TERM LOANS (Details)
SHORT-TERM LOANS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | |
Short-term Debt [Line Items] | |||
Short term loans | ¥ 397,576 | $ 62,388 | ¥ 186,800 |
Variable rate basis | London InterBank Offered Rate | ||
Short-term bank borrowings, one | |||
Short-term Debt [Line Items] | |||
Short term loans | $ | $ 38,850 | ||
Basis spread on variable rate (as a percent) | 3.00% | ||
Short-term bank borrowings, two | |||
Short-term Debt [Line Items] | |||
Short term loans | ¥ | ¥ 150,000 | ||
Fixed interest rate (as a percent) | 3.46% | 3.46% | 3.65% |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |||
User traffic direction fees | ¥ 472,269 | ¥ 201,041 | |
Payable to financial institution partners (1) | 422,423 | 163,234 | |
Accrued payroll and welfare | 409,216 | 144,784 | |
Payable for third-party service fee | 298,411 | 196,718 | |
Payable to shareholder of non-controlling interests (2) | 296,617 | ||
Dividend payable(3) | 276,991 | ||
Lease liability | 25,779 | 28,528 | |
Others | 56,623 | 75,456 | |
Total | ¥ 2,258,329 | $ 354,381 | ¥ 809,761 |
GUARANTEE LIABILITIES (Details)
GUARANTEE LIABILITIES (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | |
Guarantor Obligations [Line Items] | |||
Beginning balance | ¥ 4,173,497 | ¥ 2,212,125 | |
Provision at the inception of new loans | 6,626,322 | 6,921,127 | |
Released into revenue | (5,981,675) | (4,896,032) | |
Ending balance | 4,818,144 | $ 756,072 | 4,173,497 |
Contractual amounts of outstanding loans subject to guarantee | 49,857,705 | 55,601,864 | |
Contractual amounts of outstanding loans not subject to guarantee | ¥ 3,129,264 | ¥ 2,402,825 | |
Minimum | |||
Guarantor Obligations [Line Items] | |||
Compensation service period | 1 month | 1 month | 1 month |
Maximum | |||
Guarantor Obligations [Line Items] | |||
Compensation service period | 36 months | 36 months | 24 months |
Adjustment | |||
Guarantor Obligations [Line Items] | |||
Beginning balance | ¥ 2,148,402 |
GUARANTEE LIABILITIES - Conting
GUARANTEE LIABILITIES - Contingent (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Guarantor Obligations [Line Items] | ||||
Beginning balance | ¥ 3,543,454 | ¥ 734,730 | ||
Expense on guarantee liabilities | ¥ 734,730 | |||
Ending balance | 3,285,081 | $ 515,501 | 3,543,454 | 734,730 |
Contingent guarantee | ||||
Guarantor Obligations [Line Items] | ||||
Beginning balance | 3,543,454 | 2,687,275 | ||
Provision for contingent liabilities | 3,078,224 | 4,794,127 | ||
Net payout (1) | (3,336,597) | (3,937,948) | ||
Ending balance | ¥ 3,285,081 | 3,543,454 | 2,687,275 | |
Contingent guarantee | Adjusted Balance | ||||
Guarantor Obligations [Line Items] | ||||
Beginning balance | ¥ 3,543,454 | |||
Ending balance | ¥ 3,543,454 |
GUARANTEE LIABILITIES - Contrac
GUARANTEE LIABILITIES - Contractual amounts (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Guarantor Obligations [Line Items] | ||
Contractual Amount of Outstanding Loans Subject to Guarantee | ¥ 49,857,705 | ¥ 55,601,864 |
Current contractual amounts of outstanding loans subject to guarantee | 49,117,630 | 55,019,645 |
0 - 30 days past due | ||
Guarantor Obligations [Line Items] | ||
Contractual Amount of Outstanding Loans Subject to Guarantee | 446,780 | 355,252 |
31 - 60 days past due | ||
Guarantor Obligations [Line Items] | ||
Contractual Amount of Outstanding Loans Subject to Guarantee | 235,769 | 158,048 |
61 - 90 days past due | ||
Guarantor Obligations [Line Items] | ||
Contractual Amount of Outstanding Loans Subject to Guarantee | ¥ 57,526 | ¥ 68,919 |
RELATED PARTY BALANCES AND TR_3
RELATED PARTY BALANCES AND TRANSACTIONS - Services provided by the related parties (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transactions | |||
Services received from related party | ¥ 523,054 | ¥ 143,881 | ¥ 129,061 |
Qihu | Bandwidth service fee | |||
Related Party Transactions | |||
Services received from related party | 108,743 | 80,514 | 46,191 |
Qihu | Brand fees charged | |||
Related Party Transactions | |||
Services received from related party | 23,585 | ||
Qihu | Referral service fee | |||
Related Party Transactions | |||
Services received from related party | 19,789 | 24,507 | 47,640 |
Yujie | Referral service fee | |||
Related Party Transactions | |||
Services received from related party | 347,585 | 15,152 | |
Xixian | Labor cost | |||
Related Party Transactions | |||
Services received from related party | 2,130 | 10,657 | |
Qifutong | Referral service fee | |||
Related Party Transactions | |||
Services received from related party | 7,905 | ||
Qibutianxia | Corporate expenses | |||
Related Party Transactions | |||
Services received from related party | 7,075 | 11,321 | 3,230 |
Others | |||
Related Party Transactions | |||
Services received from related party | 4,378 | 3,120 | 8,364 |
Beijing Qifei | Rental Expenses Charged | |||
Related Party Transactions | |||
Services received from related party | ¥ 7,137 | ¥ 5,074 | |
Hongying | Rental Expenses Charged | |||
Related Party Transactions | |||
Services received from related party | ¥ 11,899 |
RELATED PARTY BALANCES AND TR_4
RELATED PARTY BALANCES AND TRANSACTIONS - Services provided to the related parties (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transactions | |||
Services provided to the related parties | ¥ 2,178,561 | ¥ 346,378 | ¥ 1,037,480 |
Qicaitianxia | Referral service fee | |||
Related Party Transactions | |||
Services provided to the related parties | 3,558 | 197,018 | |
Jinshang | Loan facilitation service | |||
Related Party Transactions | |||
Services provided to the related parties | 219,513 | 150,515 | 59,871 |
Jinshang | Post-facilitation services | |||
Related Party Transactions | |||
Services provided to the related parties | 69,398 | 48,094 | 43,497 |
Beijing Zixuan | Loan facilitation service | |||
Related Party Transactions | |||
Services provided to the related parties | 37 | 47,516 | 517,776 |
Beijing Zixuan | Post-facilitation services | |||
Related Party Transactions | |||
Services provided to the related parties | 56 | 74,417 | 215,019 |
Others | |||
Related Party Transactions | |||
Services provided to the related parties | 17,612 | 6,591 | ¥ 4,299 |
Kincheng | Loan facilitation service | |||
Related Party Transactions | |||
Services provided to the related parties | 1,574,456 | 15,254 | |
Kincheng | Post-facilitation services | |||
Related Party Transactions | |||
Services provided to the related parties | ¥ 297,489 | ¥ 433 |
RELATED PARTY BALANCES AND TR_5
RELATED PARTY BALANCES AND TRANSACTIONS - Amounts due from related parties (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Related Party Transactions | ||
Due from related parties | ¥ 978,175 | ¥ 193,305 |
Jinshang | ||
Related Party Transactions | ||
Due from related parties | 194,123 | 158,655 |
Kincheng | ||
Related Party Transactions | ||
Due from related parties | 771,335 | 13,505 |
Beijing Zixuan | ||
Related Party Transactions | ||
Due from related parties | 5,608 | |
Shareholders | ||
Related Party Transactions | ||
Due from related parties | 10,158 | 11,100 |
Others | ||
Related Party Transactions | ||
Due from related parties | ¥ 2,559 | ¥ 4,437 |
RELATED PARTY BALANCES AND TR_6
RELATED PARTY BALANCES AND TRANSACTIONS - Amounts due to related parties (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Oct. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019CNY (¥) | |
Related Party Transactions | ||||||
Amounts due to related parties | ¥ 214,057 | $ 33,590 | ¥ 71,562 | |||
Equity Method Investment, Ownership Percentage | 25.00% | |||||
Aggregate Cost | 0 | |||||
Equity Method Investments | 0 | 0 | ||||
Payments to Acquire Equity Method Investments | ¥ 1,000,000 | |||||
Changfeng | ||||||
Related Party Transactions | ||||||
Equity Method Investment, Ownership Percentage | 30.00% | |||||
Shanghai Jiehu | ||||||
Related Party Transactions | ||||||
Equity Method Investment, Ownership Percentage | 30.00% | 30.00% | 30.00% | |||
Qiyu. | ||||||
Related Party Transactions | ||||||
Equity Method Investment, Ownership Percentage | 40.00% | |||||
Qibutianxia | ||||||
Related Party Transactions | ||||||
Amounts due to related parties | ¥ 9,156 | 13,656 | ||||
Amounts of loans under such arrangement | 11,803,492 | 19,346,618 | ||||
Qihu | ||||||
Related Party Transactions | ||||||
Amounts due to related parties | 144,999 | ¥ 24,624 | ||||
Yujie | ||||||
Related Party Transactions | ||||||
Amounts due to related parties | 30,165 | 16,061 | ||||
Others | ||||||
Related Party Transactions | ||||||
Amounts due to related parties | 29,737 | 17,221 | ||||
Qiyu | ||||||
Related Party Transactions | ||||||
Payments to Acquire Equity Method Investments | ¥ 300,000 | |||||
Beijing Qifei | ||||||
Related Party Transactions | ||||||
Equity Method Investment, Ownership Percentage | 26.00% | |||||
Joint venture | ||||||
Related Party Transactions | ||||||
Equity Method Investments | ¥ 0 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 1 Months Ended | 12 Months Ended | 36 Months Ended | ||
Aug. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2022 | |
Income tax rate (as a percent) | 25.00% | 25.00% | 25.00% | ||
Hong Kong | |||||
Income tax rate (as a percent) | 16.50% | ||||
Next tax rate for first minimum portion of assessable profits | 8.25% | ||||
Subsidiaries [Member] | |||||
Preferential tax rate | 15.00% | ||||
Percentage of income tax exempt | 40.00% | ||||
West Development | Subsidiaries [Member] | |||||
Preferential tax rate | 15.00% | ||||
Qiyu. | |||||
Preferential tax rate | 15.00% | ||||
Qiyu. | High And New Technology Enterprises | |||||
Preferential tax rate | 15.00% |
INCOME TAXES - Current and defe
INCOME TAXES - Current and deferred portion 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 tax | ¥ 1,053,979 | ¥ 1,355,651 | ¥ 1,179,089 | |
Deferred tax | 204,217 | (769,615) | (713,106) | |
Income tax expense | ¥ 1,258,196 | $ 197,438 | ¥ 586,036 | ¥ 465,983 |
INCOME TAXES - Reconciliation (
INCOME TAXES - Reconciliation (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
INCOME TAXES | ||||
Income before income tax benefit | ¥ 7,022,709 | $ 1,102,014 | ¥ 4,081,745 | ¥ 2,967,287 |
Statutory tax rate in the PRC | 25.00% | 25.00% | 25.00% | 25.00% |
Income tax at statutory tax rate | ¥ 1,755,677 | ¥ 1,020,436 | ¥ 741,822 | |
Effect of different tax rate of subsidiary operation in other jurisdiction | 11,708 | 3,728 | 3,875 | |
Effect of non-deductible expenses | 64,841 | 75,881 | 63,070 | |
Effect of preferential tax rate and tax exemption | (487,655) | (452,033) | (202,095) | |
Effect of enacted tax rate change of deferred tax assets/liabilities | 1,125 | 248 | (95,048) | |
Effect of research and development super-deduction | (106,515) | (69,802) | (47,846) | |
Effect of valuation allowance movement of deferred tax assets | 19,015 | 7,578 | 2,205 | |
Income tax expense | ¥ 1,258,196 | $ 197,438 | ¥ 586,036 | ¥ 465,983 |
INCOME TAXES - Preferential tax
INCOME TAXES - Preferential tax rates (Details) - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
INCOME TAXES | |||
Tax saving amount due to preferential tax rates | ¥ 486,530 | ¥ 451,785 | ¥ 297,143 |
Income per share effect-basic | ¥ 1.58 | ¥ 1.51 | ¥ 1.03 |
Income per share effect-diluted | ¥ 1.51 | ¥ 1.47 | ¥ 0.99 |
INCOME TAXES - Components of th
INCOME TAXES - Components of the deferred tax assets and deferred tax liabilities (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred tax assets | ||
Guarantee liabilities | ¥ 1,263,699 | ¥ 1,628,214 |
Provision for accounts receivable and contract assets and financial assets receivable | 34,889 | 34,889 |
Provision for loan losses | 330,684 | 186,462 |
Depreciation of land use rights | 14,162 | |
Net operating loss carry forwards | 37,376 | 22,785 |
Gross deferred tax assets | 1,680,810 | 1,872,350 |
Valuation allowance on deferred tax assets | (28,798) | (9,783) |
Total deferred tax assets | 1,652,012 | 1,862,567 |
Uncollected revenues | (938,721) | (501,848) |
Total deferred tax liabilities | (938,721) | (501,848) |
Net deferred tax assets | 713,291 | 1,360,719 |
Allowance for deferred tax assets | 28,798 | 9,783 |
Net operating loss carryforward | 110,338 | |
Undistributed earnings | ¥ 13,225,574 | 5,964,686 |
Withholding income tax rate on dividends (as a percent) | 10.00% | |
Minimum withholding income tax rate on dividends (as a percent) | 5.00% | |
Direct ownership percentage threshold | 25.00% | |
Maximum withholding income tax rate on dividends (as a percent) | 10.00% | |
Withholding income taxes for undistributed profits | ¥ 0 | ¥ 0 |
SHARE-BASED COMPENSATION - Stoc
SHARE-BASED COMPENSATION - Stock options activity (Details) ¥ / shares in Units, ¥ in Thousands | Nov. 20, 2021shares | May 20, 2020$ / sharesshares | May 20, 2020¥ / sharesshares | Nov. 20, 2018$ / sharesshares | Nov. 20, 2018¥ / sharesshares | May 20, 2018$ / sharesshares | May 20, 2018¥ / sharesshares | Aug. 31, 2020shares | May 31, 2018shares | Dec. 31, 2021$ / shares | Dec. 31, 2021CNY (¥)shares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2021CNY (¥)shares |
Share-based compensation arrangement by share-based payment award | |||||||||||||
Weighted-average grant date fair value per option | ¥ / shares | ¥ 64.46 | ¥ 60.77 | ¥ 48.64 | ||||||||||
Fair value assumptions | |||||||||||||
Risk-free rate of interest | 2.76% | ||||||||||||
Estimated volatility rate | 67.27% | ||||||||||||
Dividend yield | 5.10% | ||||||||||||
Expected life (years) | 5 years | ||||||||||||
Exercise price | $ / shares | $ 0.00001 | ||||||||||||
Number of options | |||||||||||||
Options outstanding at beginning (in shares) | 7,611,387 | ||||||||||||
Options granted (in shares) | 2,400 | 3,514 | 3,514 | 690,023 | 690,023 | 24,627,493 | 24,627,493 | 2,400 | |||||
Options converted (in shares) | 10,264,366 | ||||||||||||
Options forfeited (in shares) | (348,236) | ||||||||||||
Options exercised (in shares) | (4,584,580) | ||||||||||||
Options outstanding at ending (in shares) | 12,945,337 | 7,611,387 | |||||||||||
Options exercisable (in shares) | 4,051,903 | ||||||||||||
Options vested or expected to be vested (in shares) | 12,945,337 | ||||||||||||
Weighted Average Exercise Price | |||||||||||||
Options outstanding at beginning (per share) | $ / shares | 0.00001 | ||||||||||||
Options granted (per share) | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.00001 | 0.00001 | |||||||||
Options converted (per share) | $ / shares | 0.00001 | ||||||||||||
Options forfeited (per share) | $ / shares | 0.00001 | ||||||||||||
Options exercised (per share) | $ / shares | 0.00001 | ||||||||||||
Options outstanding at ending (per share) | $ / shares | 0.00001 | ||||||||||||
Options exercisable (per share) | $ / shares | 0.00001 | ||||||||||||
Options vested or expected to be vested (per share) | $ / shares | $ 0.00001 | ||||||||||||
Weighted Average Remaining Contract Life Years | |||||||||||||
Options granted (in years) | 9 years 7 months 20 days | ||||||||||||
Options converted (in years) | 8 years 10 months 20 days | ||||||||||||
Options forfeited (in years) | 5 years 10 months 2 days | ||||||||||||
Options exercised (in years) | 4 years 11 months 8 days | ||||||||||||
Options outstanding at ending (in years) | 8 years 10 days | 6 years 2 months 12 days | |||||||||||
Options exercisable (in years) | 7 years 3 days | ||||||||||||
Options vested or expected to be vested (in years) | 8 years 10 days | ||||||||||||
Aggregate Intrinsic Value | |||||||||||||
Options outstanding at beginning | ¥ | ¥ 292,734 | ||||||||||||
Options granted | ¥ | ¥ 175 | ||||||||||||
Options converted | ¥ | 749,915 | ||||||||||||
Options forfeited | ¥ | (25,442) | ||||||||||||
Options exercised | ¥ | (334,949) | ||||||||||||
Options outstanding at ending | ¥ | ¥ 945,786 | ¥ 292,734 | |||||||||||
Options exercisable | ¥ | 296,032 | ||||||||||||
Options vested or expected to be vested | ¥ | 945,786 | ||||||||||||
Options | Employees | |||||||||||||
Share-based compensation arrangement by share-based payment award | |||||||||||||
Vesting period (in years) | 1 year 5 months 4 days | ||||||||||||
Aggregate Intrinsic Value | |||||||||||||
Unrecognized compensation cost | ¥ | ¥ 288,945 | ||||||||||||
Options | Maximum | |||||||||||||
Share-based compensation arrangement by share-based payment award | |||||||||||||
Vesting period (in years) | 4 years | 4 years | 4 years | 4 years | 4 years | 4 years | |||||||
2018 plan | Options | |||||||||||||
Share-based compensation arrangement by share-based payment award | |||||||||||||
Number of shares available for grant | 25,336,096 | ||||||||||||
Percentage of annual increase in shares | 1.00% | ||||||||||||
Expiry period (in years) | 10 years | ||||||||||||
2019 Plan | Options | |||||||||||||
Share-based compensation arrangement by share-based payment award | |||||||||||||
Number of shares available for grant | 17,547,567 | ||||||||||||
Percentage of annual increase in shares | 1.00% | ||||||||||||
Expiry period (in years) | 10 years |
SHARE-BASED COMPENSATION - Rest
SHARE-BASED COMPENSATION - Restricted shares (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands | 1 Months Ended | 12 Months Ended | |
Nov. 30, 2021$ / sharesshares | Dec. 31, 2021USD ($)shares | Dec. 31, 2021CNY (¥)¥ / sharesshares | |
Weighted Average Grant Date Fair Value | |||
Fair value of the restricted shares vested | ¥ | ¥ 53,680 | ||
Number of options converted from restricted shares | shares | 10,264,366 | ||
Weighted average exercise price for options converted | $ / shares | $ 0.00001 | ||
Restricted Shares | |||
Number of Restricted Shares | |||
Outstanding at beginning (in shares) | shares | 16,321,820 | 16,321,820 | |
Granted (in shares) | shares | 3,102,418 | 3,102,418 | |
Converted (in shares) | $ | $ (10,264,366) | ||
Forfeited (in shares) | shares | (749,794) | (749,794) | |
Vested (in shares) | shares | (1,448,632) | (1,448,632) | |
Outstanding at ending (in shares) | shares | 6,961,446 | 6,961,446 | |
Weighted Average Grant Date Fair Value | |||
Outstanding at beginning (per share) | ¥ / shares | ¥ 40.07 | ||
Granted (per share) | ¥ / shares | 68.45 | ||
Converted (per share) | ¥ / shares | 40.84 | ||
Forfeited (per share) | ¥ / shares | 38.39 | ||
Vested (per share) | ¥ / shares | 37.06 | ||
Outstanding at ending (per share) | ¥ / shares | ¥ 52.38 | ||
Unrecognized compensation cost | ¥ | ¥ 312,247 | ||
Weighted-average vesting period | 1 year 6 months 29 days | 1 year 6 months 29 days | |
Restricted Shares | Minimum | |||
Weighted Average Grant Date Fair Value | |||
Vesting period (in years) | 3 years | 3 years | |
Restricted Shares | Maximum | |||
Weighted Average Grant Date Fair Value | |||
Vesting period (in years) | 5 years | 5 years |
SHARE-BASED COMPENSATION - Comp
SHARE-BASED COMPENSATION - Compensation costs (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Recognition of compensation costs | ||
Total compensation costs | ¥ 253,922 | ¥ 301,161 |
Facilitation, origination and servicing expenses | ||
Recognition of compensation costs | ||
Total compensation costs | 75,209 | 72,192 |
Sales and marketing expenses | ||
Recognition of compensation costs | ||
Total compensation costs | 12,340 | 8,164 |
General and administrative expenses | ||
Recognition of compensation costs | ||
Total compensation costs | ¥ 166,373 | ¥ 220,805 |
ORDINARY SHARES (Details)
ORDINARY SHARES (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 31, 2021 | Dec. 31, 2018 | |
ORDINARY SHARES AND PREFERRED SHARES | |||||
Common stock, Authorized (in shares) | 5,000,000,000 | 5,000,000,000 | |||
Common stock, Par Value (in dollars per share) | $ 0.00001 | $ 0.00001 | |||
Common stock, Issued (in shares) | 315,433,018 | 309,833,035 | |||
Common stock, outstanding (in shares) | 310,486,975 | 304,453,780 | |||
Ordinary shares. | |||||
ORDINARY SHARES AND PREFERRED SHARES | |||||
Common stock, Par Value (in dollars per share) | $ 0.00001 | ||||
Common stock, Issued (in shares) | 310,486,975 | 304,453,780 | 293,420,800 | 287,652,707 | |
Common stock, outstanding (in shares) | 310,486,975 | ||||
Shares issued (in shares) | 6,033,212 | 11,032,980 | 5,768,093 | ||
Class A ordinary shares | |||||
ORDINARY SHARES AND PREFERRED SHARES | |||||
Common stock, outstanding (in shares) | 270,666,389 | 264,633,194 | |||
Class B ordinary shares | |||||
ORDINARY SHARES AND PREFERRED SHARES | |||||
Common stock, outstanding (in shares) | 39,820,586 | 39,820,586 | |||
ADS | |||||
ORDINARY SHARES AND PREFERRED SHARES | |||||
Stock Repurchase Program, Authorized Amount | $ 200 | ||||
ADS | IPO | |||||
ORDINARY SHARES AND PREFERRED SHARES | |||||
Common stock, Par Value (in dollars per share) | $ 0.00001 | ||||
Shares issued (in shares) | 304,453,780 |
STATUTORY RESERVES AND RESTRI_2
STATUTORY RESERVES AND RESTRICTED NET ASSETS (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
STATUTORY RESERVES AND RESTRICTED NET ASSETS | |||
Minimum allocation to fund general reserve funds, after tax profits (as a percent) | 10.00% | ||
Maximum allocation to fund general reserve funds, reserve registered capital (as a percent) | 50.00% | ||
Amount of Appropriations to reserves | ¥ 0 | ¥ 0 | |
Paid-in capital, capital reserve and statutory reserves not available for distribution | ¥ 8,283,560 | 2,740,408 | |
Statutory reserve fund | ¥ 168,541 | ¥ 125,389 |
DIVIDENDS (Details)
DIVIDENDS (Details) - $ / shares | 3 Months Ended | |
Dec. 31, 2021 | Sep. 30, 2021 | |
Dividends Payable [Line Items] | ||
Dividends declared per share | $ 0.13 | $ 0.14 |
Minimum | ||
Dividends Payable [Line Items] | ||
Dividends declared (in percent) | 15.00% | |
Maximum | ||
Dividends Payable [Line Items] | ||
Dividends declared (in percent) | 20.00% | |
ADS | ||
Dividends Payable [Line Items] | ||
Dividends declared per share | $ 0.26 | $ 0.28 |
LEASE (Details)
LEASE (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Existence of Option to Extend [true false] | true | ||
Lessee, Operating Lease, Existence of Option to Terminate [true false] | true | ||
Operating lease expenses | ¥ 51,608 | ¥ 28,999 | ¥ 20,139 |
Amortization expenses of land use rights | ¥ 17,270 | ¥ 0 | ¥ 0 |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Original term of the lease | 5 years | ||
Remaining lease term | 3 years | ||
Extension term of the lease | 5 years | ||
Termination term of the lease | 1 year |
LEASE - Cash paid for amounts i
LEASE - Cash paid for amounts included in the measurement of lease liabilities (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | ¥ 33,252 | ¥ 30,536 |
Right-of-use assets obtained in exchange for lease obligations, Operating leases | ¥ 25,349 | ¥ 36,236 |
LEASE - ROU assets and lease li
LEASE - ROU assets and lease liabilities (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
ROU assets and lease liabilities | ||
Right-of-use assets | ¥ 42,606 | ¥ 48,990 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets, Noncurrent | Other Assets, Noncurrent |
Operating lease liabilities-current | ¥ 25,779 | ¥ 28,528 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued Liabilities and Other Liabilities | Accrued Liabilities and Other Liabilities |
Operating lease liabilities-non current | ¥ 13,177 | ¥ 14,974 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Weighted-average remaining lease term | 2 years 1 month 2 days | 1 year 8 months 8 days |
Weighted-average discount rate | 6.22% | 6.16% |
LEASE - Maturities of operating
LEASE - Maturities of operating lease liabilities and maturities of operating leases (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Maturities of operating lease liabilities | ||
2021 | ¥ 32,255 | |
2022 | ¥ 28,203 | 13,582 |
2023 | 7,034 | 710 |
2024 | 3,550 | |
2025 | 382 | |
Total undiscounted lease payments | 39,169 | 46,547 |
Imputed interest | (213) | (3,045) |
Total lease liabilities | ¥ 38,956 | ¥ 43,502 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) ¥ in Millions, $ in Millions | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) |
COMMITMENTS AND CONTINGENCIES. | ||
Amount of outstanding loan balance under guarantee model | ¥ 510 | |
Percentage of total outstanding loan balances represented by the guarantee model loan balances (as a percent) | 0.36% | 0.36% |
Capital commitments contracted but not yet reflected | ¥ 500 | $ 78.5 |
NET INCOME PER SHARE (Details)
NET INCOME PER SHARE (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥)¥ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Net income attributable to shareholders of the Company | ¥ | ¥ 5,781,725 | ¥ 3,496,606 | ¥ 2,501,595 | |
Net income attributable to ordinary shareholders of the Company | ¥ 5,781,725 | $ 907,277 | ¥ 3,496,606 | ¥ 2,501,595 |
Denominator: | ||||
Weighted average Class A and Class B ordinary shares outstanding used in computing basic income (loss) per ordinary share | 307,265,600 | 307,265,600 | 298,222,207 | 288,827,604 |
Plus: incremental weighted average ordinary shares from assumed exercise of stock options and restricted shares using the treasury stock method | 14,132,153 | 14,132,153 | 8,442,892 | 12,110,866 |
Weighted average Class A and Class B ordinary shares outstanding used in computing diluted income (loss) per ordinary share | 321,397,753 | 321,397,753 | 306,665,099 | 300,938,470 |
Basic net income (loss) per share (in CNY per share) | (per share) | ¥ 18.82 | $ 2.95 | ¥ 11.72 | ¥ 8.66 |
Diluted net income (loss) per share (in CNY per share) | (per share) | ¥ 17.99 | $ 2.82 | ¥ 11.40 | ¥ 8.31 |
Anti-dilutive securities excluded from the calculation of diluted net loss per share | 0 | 0 | 0 | 0 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - $ / shares | 3 Months Ended | |
Dec. 31, 2021 | Sep. 30, 2021 | |
Subsequent Event [Line Items] | ||
Dividends declared per share | $ 0.13 | $ 0.14 |
ADS | ||
Subsequent Event [Line Items] | ||
Dividends declared per share | $ 0.26 | $ 0.28 |
ADDITIONAL INFORMATION - FINA_2
ADDITIONAL INFORMATION - FINANCIAL STATEMENT SCHEDULE I (Details) | 12 Months Ended |
Dec. 31, 2021 | |
ADDITIONAL INFORMATION - FINANCIAL STATEMENT SCHEDULE I | |
Minimum allocation to fund general reserve funds, after tax profits (as a percent) | 10.00% |
Maximum allocation to fund general reserve funds, reserve registered capital (as a percent) | 50.00% |
Restricted net assets (as a percent) | 25.00% |
ADDITIONAL INFORMATION - FINA_3
ADDITIONAL INFORMATION - FINANCIAL STATEMENT SCHEDULE I - CONDENSED BALANCE SHEETS (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥)shares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020$ / shares | Dec. 31, 2019CNY (¥) |
ASSETS. | |||||
Cash and cash equivalents | ¥ 6,116,360 | $ 959,790 | ¥ 4,418,416 | ¥ 2,108,123 | |
Amount due from related parties | ¥ | 978,175 | 193,305 | |||
TOTAL ASSETS | 33,504,995 | 5,257,663 | 24,387,305 | ||
LIABILITIES | |||||
Amounts due to related parties | 214,057 | 33,590 | 71,562 | ||
Short term loans | 397,576 | 62,388 | 186,800 | ||
TOTAL LIABILITIES | 18,288,386 | 2,869,846 | 14,906,215 | ||
EQUITY | |||||
Ordinary shares ($0.00001 par value per share 5,000,000,000 shares authorized, 309,833,035 shares issued and 304,453,780 shares outstanding as of December 31, 2020, and 315,433,018 shares issued and 310,486,975 shares outstanding as of December 31, 2021, respectively) | 22 | 3 | 21 | ||
Additional paid-in capital | 5,672,267 | 890,102 | 5,417,406 | ||
Retained earnings | 9,642,506 | 1,513,120 | 4,137,542 | ¥ 2,071,332 | |
Other comprehensive loss | (110,932) | (17,408) | (74,391) | ||
TOTAL EQUITY | 15,203,863 | 2,385,817 | 9,480,578 | ||
TOTAL LIABILITIES AND EQUITY | ¥ 33,504,995 | $ 5,257,663 | ¥ 24,387,305 | ||
Stockholders' Equity, Other Disclosures | |||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.00001 | $ 0.00001 | |||
Ordinary shares, authorized (in shares) | 5,000,000,000 | 5,000,000,000 | 5,000,000,000 | ||
Ordinary shares, issued (in shares) | 315,433,018 | 315,433,018 | 309,833,035 | ||
Ordinary shares, outstanding (in shares) | 310,486,975 | 310,486,975 | 304,453,780 | ||
360 Finance, Inc | Reportable legal entities | |||||
ASSETS. | |||||
Cash and cash equivalents | ¥ 7,117 | $ 1,117 | ¥ 19,560 | ||
Amount due from related parties | 10,134 | 1,590 | |||
Amount due from subsidiaries and VIEs | 1,711,633 | 268,593 | 1,632,772 | ||
Investments in subsidiaries and VIEs | 14,032,928 | 2,202,071 | 7,940,533 | ||
TOTAL ASSETS | 15,761,812 | 2,473,371 | 9,592,865 | ||
LIABILITIES | |||||
Accrued expenses and other current liabilities | 310,373 | 48,704 | 2,751 | ||
Amounts due to related parties | ¥ | 27,973 | ||||
Short term loans | 247,576 | 38,850 | 81,563 | ||
TOTAL LIABILITIES | 557,949 | 87,554 | 112,287 | ||
EQUITY | |||||
Ordinary shares ($0.00001 par value per share 5,000,000,000 shares authorized, 309,833,035 shares issued and 304,453,780 shares outstanding as of December 31, 2020, and 315,433,018 shares issued and 310,486,975 shares outstanding as of December 31, 2021, respectively) | 22 | 3 | 21 | ||
Additional paid-in capital | 5,672,267 | 890,102 | 5,417,406 | ||
Retained earnings | 9,642,506 | 1,513,120 | 4,137,542 | ||
Other comprehensive loss | (110,932) | (17,408) | (74,391) | ||
TOTAL EQUITY | 15,203,863 | 2,385,817 | 9,480,578 | ||
TOTAL LIABILITIES AND EQUITY | ¥ 15,761,812 | $ 2,473,371 | ¥ 9,592,865 | ||
Stockholders' Equity, Other Disclosures | |||||
Ordinary shares, authorized (in shares) | 5,000,000,000 | 5,000,000,000 | 5,000,000,000 | ||
Ordinary shares, issued (in shares) | 315,433,018 | 315,433,018 | 309,833,035 | ||
Ordinary shares, outstanding (in shares) | 310,486,975 | 310,486,975 | 304,453,780 |
ADDITIONAL INFORMATION - FINA_4
ADDITIONAL INFORMATION - FINANCIAL STATEMENT SCHEDULE I - CONDENSED STATEMENTS OF OPERATIONS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Operating costs and expenses | ¥ (9,849,446) | $ (1,545,594) | ¥ (9,773,796) | ¥ (6,326,256) |
Foreign exchange losses | 35,549 | 5,578 | 101,534 | (24,875) |
Other income, net | 64,590 | 10,136 | 112,884 | 140,278 |
Net income before taxes | 7,022,709 | 1,102,014 | 4,081,745 | 2,967,287 |
Income tax expenses | (1,258,196) | (197,438) | (586,036) | (465,983) |
Net income attributable to shareholders of the Company | 5,764,513 | 904,576 | 3,495,709 | 2,501,304 |
Net income attributable to ordinary shareholders of the Company | 5,781,725 | 907,277 | 3,496,606 | 2,501,595 |
360 Finance, Inc | Reportable legal entities | ||||
Operating costs and expenses | (51,233) | (8,040) | (16,453) | (12,922) |
Interest income (loss) | (5,383) | (845) | (2,349) | 712 |
Foreign exchange losses | (133) | (21) | (376) | (491) |
Other income, net | 15,148 | 453 | ||
Net loss before taxes and income from equity in subsidiaries and VIEs | (56,749) | (8,906) | (4,030) | (12,248) |
Equity in earnings of subsidiaries and VIEs | 5,838,474 | 916,183 | 3,500,636 | 2,513,843 |
Net income before taxes | 5,781,725 | 907,277 | 3,496,606 | 2,501,595 |
Net income attributable to shareholders of the Company | 5,781,725 | 907,277 | 3,496,606 | 2,501,595 |
Net income attributable to ordinary shareholders of the Company | ¥ 5,781,725 | $ 907,277 | ¥ 3,496,606 | ¥ 2,501,595 |
ADDITIONAL INFORMATION - FINA_5
ADDITIONAL INFORMATION - FINANCIAL STATEMENT SCHEDULE I - CONDENSED STATEMENTS OF COMPREHENSIVE INCOME OR LOSS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Net income attributable to shareholders of the Company | ¥ 5,764,513 | $ 904,576 | ¥ 3,495,709 | ¥ 2,501,304 |
Other comprehensive income, net of tax of nil: | ||||
Foreign currency translation adjustment | (36,541) | (5,734) | (99,297) | 21,223 |
Other comprehensive income (loss) | (36,541) | (5,734) | (99,297) | 21,223 |
Total comprehensive income | 5,727,972 | 898,842 | 3,396,412 | 2,522,527 |
Comprehensive income attributable to ordinary shareholders | 5,745,184 | 901,543 | 3,397,309 | 2,522,818 |
360 Finance, Inc | Reportable legal entities | ||||
Net income attributable to shareholders of the Company | 5,781,725 | 907,277 | 3,496,606 | 2,501,595 |
Other comprehensive income, net of tax of nil: | ||||
Foreign currency translation adjustment | (36,541) | (5,734) | (99,297) | 21,223 |
Other comprehensive income (loss) | (36,541) | (5,734) | (99,297) | 21,223 |
Total comprehensive income | 5,745,184 | 901,543 | 3,397,309 | 2,522,818 |
Comprehensive income attributable to ordinary shareholders | ¥ 5,745,184 | $ 901,543 | ¥ 3,397,309 | ¥ 2,522,818 |
ADDITIONAL INFORMATION - FINA_6
ADDITIONAL INFORMATION - FINANCIAL STATEMENT SCHEDULE I - CONDENSED STATEMENTS OF COMPREHENSIVE INCOME OR LOSS - Additional Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other comprehensive income, tax | ¥ 0 | ¥ 0 | ¥ 0 |
360 Finance, Inc | Reportable legal entities | |||
Other comprehensive income, tax | ¥ 0 | ¥ 0 |
ADDITIONAL INFORMATION - FINA_7
ADDITIONAL INFORMATION - FINANCIAL STATEMENT SCHEDULE I - 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 (¥) | |
Cash Flows from Operating Activities: | ||||
Net income attributable to shareholders of the Company | ¥ 5,764,513 | $ 904,576 | ¥ 3,495,709 | ¥ 2,501,304 |
Changes in operating assets and liabilities | ||||
Accrued expenses and other current liabilities | 897,670 | 140,865 | 88,842 | 206,801 |
Net cash used in operating activities | 5,789,700 | 908,530 | 5,325,810 | 2,973,075 |
Cash Flows from Investing Activities: | ||||
Investments in subsidiaries | (1,000,000) | |||
Loans payment to subsidiaries and VIEs | (40,168,794) | (6,303,360) | (38,720,482) | (26,339,327) |
Net cash used in Investing Activities | (6,064,328) | (951,625) | 892,770 | (8,860,441) |
Cash Flows from Financing Activities: | ||||
Net cash provided by (used in) financing activities | 2,263,720 | 355,227 | (3,282,400) | 7,707,858 |
Effect of foreign exchange rate changes | (3,411) | (536) | 2,236 | 1,762 |
Net (decrease) increase in cash and cash equivalents | 1,985,681 | 311,596 | 2,938,416 | 1,822,254 |
Cash, cash equivalents, and restricted cash, beginning of year | 6,774,266 | 1,063,030 | 3,835,850 | 2,013,596 |
Cash, cash equivalents, and restricted cash, end of year | 8,759,947 | 1,374,626 | 6,774,266 | 3,835,850 |
Supplemental disclosure of significant non-cash investing and financing activities: | ||||
Payables for dividends: | 276,991 | 43,466 | ||
360 Finance, Inc | Reportable legal entities | ||||
Cash Flows from Operating Activities: | ||||
Net income attributable to shareholders of the Company | 5,781,725 | 907,277 | 3,496,606 | 2,501,595 |
Adjustments to reconcile net income to net cash used in operating activities: | ||||
Equity in earnings of subsidiaries and VIEs | (5,838,474) | (916,183) | (3,500,636) | (2,513,843) |
Changes in operating assets and liabilities | ||||
Accrued expenses and other current liabilities | 31,197 | 4,896 | (2,625) | (3,070) |
Amounts due from subsidiaries | (65,801) | (276,960) | ||
Net cash used in operating activities | (25,552) | (4,010) | (72,456) | (292,278) |
Cash Flows from Investing Activities: | ||||
Investments in subsidiaries | (35,652) | |||
Loans payment to subsidiaries and VIEs | (153,778) | (24,131) | ||
Net cash used in Investing Activities | (153,778) | (24,131) | (35,652) | |
Cash Flows from Financing Activities: | ||||
Payment of IPO costs | (3,080) | |||
Proceeds from short-term loans | 169,291 | 26,565 | 86,305 | |
Net cash provided by (used in) financing activities | 169,291 | 26,565 | 86,305 | (3,080) |
Effect of foreign exchange rate changes | (2,404) | (376) | (1,194) | 1,761 |
Net (decrease) increase in cash and cash equivalents | (12,443) | (1,952) | 12,655 | (329,249) |
Cash, cash equivalents, and restricted cash, beginning of year | 19,560 | 3,069 | 6,905 | 336,154 |
Cash, cash equivalents, and restricted cash, end of year | ¥ 7,117 | $ 1,117 | ¥ 19,560 | ¥ 6,905 |