Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2021 | |
Document and Entity Information | |
Document Type | F-1/A |
Amendment Flag | true |
Amendment Description | The files have been amended to account for the updated financialsstatements and footnotes included in the F-1 Registration Statement. |
Entity Registrant Name | 9F Inc. |
Entity Central Index Key | 0001619544 |
Entity Incorporation, State or Country Code | CA |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | true |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Jun. 30, 2020CNY (¥) | Jan. 20, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
ASSETS: | ||||||||
Cash and cash equivalents | ¥ 1,877,191 | $ 290,740 | ¥ 2,726,712 | $ 422,314 | ¥ 3,651,788 | ¥ 4,684,003 | ¥ 5,469,077 | |
Restricted cash | 376,796 | 58,358 | 390,702 | 60,512 | 125,437 | |||
Term deposits | 102,408 | 15,861 | 133,761 | 20,717 | 24,000 | |||
Accounts receivable, net of allowance for doubtful accounts of RMB1,433,449 and RMB1,446,994 as of December 31, 2019 and 2020, respectively | 70,130 | 10,862 | 40,862 | 6,329 | 280,995 | |||
Other receivables, net of allowance for doubtful accounts of RMB17,396 as of December 31, 2020 and RMB160 as of June 30,2021 respectively | 565,904 | 87,647 | 126,745 | 19,630 | 117,340 | |||
Loan receivables, net of allowance for doubtful accounts of RMB320,364 as of December 31, 2020, and RMB56,466 as of June 30, 2021 respectively | 202,130 | 31,306 | 267,383 | 41,412 | 778,480 | |||
Amounts due from related parties | 50,000 | |||||||
Prepaid expenses and other assets | 881,771 | 136,569 | 793,092 | 122,834 | 1,137,787 | |||
Contract assets, net of allowance for losses of RMB14,749 as of December 31, 2020 and RM14,321 as of June 30,2021 respectively | 6,494 | 1,006 | 10,374 | 1,607 | 24,824 | |||
Long-term investments,net | 738,996 | 114,456 | 738,272 | 114,344 | 775,644 | 954,158 | ||
Operating lease right-of-use assets, net | 25,987 | 4,025 | 28,668 | 4,440 | 121,791 | |||
Property, equipment and software, net | 52,423 | 8,119 | 63,396 | 9,819 | 110,376 | |||
Goodwill, net | 22,119 | 3,426 | 22,121 | 3,426 | 72,224 | |||
Intangible assets, net | 40,345 | 6,249 | 44,413 | 6,879 | 73,476 | |||
Deferred tax assets, net | 503,987 | |||||||
TOTAL ASSETS | 5,168,966 | 800,571 | 5,386,501 | 834,263 | 8,880,364 | |||
Liabilities: | ||||||||
Deferred revenue (including deferred revenue of the consolidated VIEs and VIEs' subsidiaries without recourse to the Group of RMB81,246 as of December 31, 2020 and RMB9,904 as of June 30,2021 respectively) | 10,079 | 1,561 | 82,643 | 12,800 | 788,906 | |||
Payroll and welfare payable (including payroll and welfare payable of the consolidated VIEs and VIEs' subsidiaries without recourse to the Group of RMB29,152 as of December 31, 2020 and RMB12,614 as of June 30, 2021, respectively) | 14,041 | 2,175 | 34,540 | 5,350 | 41,646 | |||
Income tax payable (including income taxes payable of the consolidated VIEs and VIEs' subsidiaries without recourse to the Group of RMB224,533 as of December 31, 2020 and RMB238,179 as of June 30,2021, respectively) | 272,896 | 42,266 | 255,244 | 39,532 | 320,350 | |||
Accrued expenses and other liabilities (including accrued expenses and other liabilities of the consolidated VIEs and VIEs' subsidiaries without recourse to the Group of RMB238,170 as of December 31, 2020 and RMB274,219 as of June 30,2021 respectively) | 786,213 | 121,768 | 726,686 | 112,549 | 1,229,110 | |||
Operating lease liabilities (including operating lease liabilities of the consolidated VIEs and VIEs' subsidiaries without resource to the Group of RMB19,100 as of December 31, 2020 and RMB15,408 as of June 30,2021 respectively) | 25,604 | 3,966 | 29,503 | 4,569 | 125,407 | |||
Amounts due to related parties (including amounts due to related parties of the consolidated VIEs and VIEs' subsidiaries without recourse to the Group of RMB24,146 as of December 31,2020 and RMB23,967 as of June 30,2021, respectively) | 23,590 | 3,654 | 25,289 | 3,917 | 29,902 | |||
Deferred tax liabilities (including deferred tax liabilities of the consolidated VIEs and VIEs' subsidiaries without recourse to the Group of RMB5,742 as of December 31, 2020and RMB5,392 as of June 30,2021, respectively) | 8,504 | 1,317 | 9,280 | 1,437 | 17,215 | |||
TOTAL LIABILITIES | 1,140,927 | 176,707 | 1,163,185 | 180,154 | 2,552,536 | |||
Commitments and Contingencies (Note 21) | ||||||||
Shareholders' equity: | ||||||||
Ordinary shares | 1 | 1 | ||||||
Additional paid-in capital | 5,531,926 | 856,786 | 5,241,296 | |||||
Statutory reserves | 466,468 | 72,247 | 466,352 | 72,229 | 459,029 | |||
Retained earnings (deficit) | (2,010,642) | (311,409) | (1,822,749) | (282,308) | ¥ 44,767 | 488,236 | ||
Accumulated other comprehensive income | (49,917) | (7,731) | (6,953) | (1,077) | 92,220 | |||
Total 9F Inc. shareholders' equity | 3,972,751 | 615,301 | 4,168,578 | 645,630 | 6,280,783 | |||
Noncontrolling interest | 55,288 | 8,563 | 54,738 | 8,479 | 47,045 | |||
Total shareholders' equity | 4,028,039 | 623,864 | 4,223,316 | 654,109 | ¥ 5,769,282 | 6,327,828 | ¥ 6,254,920 | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 5,168,966 | 800,571 | 5,386,501 | $ 834,263 | 8,880,364 | |||
Class A ordinary shares | ||||||||
Shareholders' equity: | ||||||||
Ordinary shares | 1 | 1 | 1 | |||||
Class B ordinary shares | ||||||||
Shareholders' equity: | ||||||||
Ordinary shares | 1 | ¥ 1 | ||||||
Additional paid-in capital | ¥ 5,566,840 | $ 862,194 | ¥ 5,531,926 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Jun. 30, 2021CNY (¥)shares | Jun. 30, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019$ / shares | Aug. 31, 2019shares | Dec. 31, 2018CNY (¥)shares |
Allowance for doubtful accounts, accounts receivable | ¥ 1,486,919 | ¥ 1,446,994 | ¥ 1,433,449 | |||||
Allowance for doubtful accounts, other receivable | 6,930 | 17,396 | 36,773 | |||||
Allowance for doubtful accounts, loans receivable | 56,466 | 320,944 | 615,592 | |||||
Allowance for doubtful accounts, contract assets | 14,321 | 14,749 | 2,255 | ¥ 329 | ||||
Deferred revenue | 10,079 | $ 1,561 | 82,643 | $ 12,800 | 788,906 | |||
Payroll and welfare payable | 14,041 | 2,175 | 34,540 | 5,350 | 41,646 | |||
Income taxes payable | 272,896 | 42,266 | 255,244 | 39,532 | 320,350 | |||
Accrued expenses and other liabilities | 786,213 | 121,768 | 726,686 | 112,549 | 1,229,110 | |||
Operating lease liabilities | 25,604 | 3,966 | 29,503 | 4,569 | 125,407 | |||
Amounts due to related parties | 23,590 | 3,654 | 25,289 | 3,917 | 29,902 | |||
Deferred tax liabilities | ¥ 8,504 | $ 1,317 | ¥ 9,280 | $ 1,437 | ¥ 17,215 | |||
Ordinary shares, shares issued | shares | 203,510,681 | 203,510,681 | 195,191,000 | 162,672,800 | ||||
Ordinary shares, shares outstanding | shares | 203,510,681 | 203,510,681 | 203,510,681 | 203,510,681 | 195,191,000 | 195,191,000 | 162,672,800 | |
Class A ordinary shares | ||||||||
Ordinary shares, par value | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.00001 | |||||
Ordinary shares, shares authorized | shares | 4,600,000,000 | 4,600,000,000 | 4,600,000,000 | 4,600,000,000 | 4,600,000,000 | |||
Ordinary shares, shares issued | shares | 142,348,281 | 142,348,281 | 142,348,281 | 142,348,281 | 128,228,600 | |||
Ordinary shares, shares outstanding | shares | 142,348,281 | 142,348,281 | 142,348,281 | 142,348,281 | 128,228,600 | 128,228,600 | ||
Class B ordinary shares | ||||||||
Ordinary shares, par value | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.00001 | |||||
Ordinary shares, shares authorized | shares | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | |||
Ordinary shares, shares issued | shares | 61,162,400 | 61,162,400 | 61,162,400 | 61,162,400 | 66,962,400 | |||
Ordinary shares, shares outstanding | shares | 61,162,400 | 61,162,400 | 61,162,400 | 61,162,400 | 66,962,400 | 66,962,400 | ||
VIEs | ||||||||
Deferred revenue | ¥ 9,904 | ¥ 81,246 | ¥ 772,340 | |||||
Payroll and welfare payable | 12,614 | 29,152 | 35,958 | |||||
Income taxes payable | 238,179 | 224,533 | 303,684 | |||||
Accrued expenses and other liabilities | 274,219 | 238,170 | 1,056,128 | |||||
Operating lease liabilities | 15,408 | 19,100 | 119,005 | |||||
Amounts due to related parties | 23,967 | 24,146 | 29,902 | |||||
Deferred tax liabilities | ¥ 5,392 | ¥ 5,742 | ¥ 13,200 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2021CNY (¥)¥ / sharesshares | Jun. 30, 2021USD ($)$ / sharesshares | Jun. 30, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | |
Net revenues: | |||||||
Total net revenues | ¥ 392,956 | $ 60,861 | ¥ 848,430 | ¥ 1,256,005 | $ 194,531 | ¥ 4,424,963 | ¥ 5,556,482 |
Operating costs and expenses: | |||||||
Sales and marketing | (68,826) | (10,660) | (174,243) | (343,056) | (53,133) | (2,343,428) | (1,746,375) |
Origination and servicing | (87,911) | (13,616) | (634,521) | (543,487) | (84,175) | (1,137,451) | (444,830) |
General and administrative | (279,076) | (43,223) | (550,734) | (1,303,833) | (201,938) | (1,155,747) | (1,159,746) |
Reversal of (provision for) doubtful contract assets and receivables | (44,296) | (6,861) | (195,564) | (347,803) | (53,868) | (2,148,638) | 2,637 |
Total operating costs and expenses | (480,109) | (74,360) | (1,555,062) | (2,538,179) | (393,114) | (6,785,264) | (3,348,314) |
Interest income | 39,079 | 6,053 | 63,869 | 102,425 | 15,864 | 225,751 | 208,350 |
Impairment loss of investments | (2,056) | (318) | (30,322) | (462,490) | (71,631) | (154,898) | (23,140) |
Impairment loss of goodwill | 0 | (50,291) | (50,291) | (7,789) | (6,191) | 0 | |
Impairment loss of intangible assets and property, equipment and software | (2,310) | (358) | (17,220) | (38,145) | (5,908) | ||
Gain recognized on remeasurement of previously held equity interest in acquiree | 656,795 | 16,272 | |||||
Net loss from disposal of subsidiaries | (257) | ||||||
Other income, net | (684) | (106) | 19,612 | 39,112 | 6,058 | 52,852 | 25,608 |
Income (loss) before income tax expense and earnings (loss) in equity method investments | (167,335) | (25,917) | (720,984) | (1,691,563) | (261,989) | (2,220,324) | 2,418,729 |
Income tax (expense) benefit | (17,998) | (2,788) | (17,874) | (538,322) | (83,375) | 174,597 | (402,403) |
Earnings (loss) in equity method investments, net of tax of nil and nil for six months ended June 30,2020 and 2021 | (7,629) | (1,182) | (5,741) | (21,317) | (3,302) | (107,918) | (41,143) |
Net income (loss) | (192,962) | (29,887) | (744,599) | (2,251,202) | (348,666) | (2,153,645) | 1,975,183 |
Net income (loss) attributable to the non-controlling interest shareholders | (747) | (116) | 3,586 | (7,693) | (1,191) | (5,931) | 6,621 |
Net income (loss) attributable to 9F Inc. | (193,709) | (30,003) | (741,013) | (2,258,895) | (349,857) | (2,159,576) | 1,981,804 |
Change in redemption value of preferred shares | (10,711) | (17,225) | |||||
Net income (loss) attributable to ordinary shareholders | ¥ (193,709) | $ (30,003) | ¥ (741,013) | ¥ (2,258,895) | $ (349,857) | ¥ (2,170,287) | ¥ 1,964,579 |
Net income (loss) per ordinary share | |||||||
Basic | (per share) | ¥ (1.93) | $ (0.30) | ¥ (3.80) | ¥ (11.37) | $ (1.76) | ¥ (12.43) | ¥ 10.57 |
Diluted | (per share) | ¥ (1.93) | $ (0.30) | ¥ (3.80) | ¥ (11.37) | $ (1.76) | ¥ (12.43) | ¥ 9.41 |
Weighted average number of ordinary shares ordinary share | |||||||
Basic | shares | 100,361,432 | 100,361,432 | 195,191,000 | 198,596,879 | 198,596,879 | 174,552,468 | 162,672,800 |
Diluted | shares | 100,361,432 | 100,361,432 | 195,191,000 | 198,596,879 | 198,596,879 | 174,552,468 | 185,735,200 |
Loan facilitation services | |||||||
Net revenues: | |||||||
Total net revenues | ¥ 227,792 | ¥ 177,147 | $ 27,437 | ¥ 3,477,897 | ¥ 4,960,671 | ||
Post-origination services | |||||||
Net revenues: | |||||||
Total net revenues | ¥ 78,004 | $ 12,081 | 530,232 | 859,102 | 133,058 | 604,732 | 367,439 |
Technical services | |||||||
Net revenues: | |||||||
Total net revenues | 164,497 | 25,477 | 10,067 | ||||
Wealth management services | |||||||
Net revenues: | |||||||
Total net revenues | 61,362 | 9,504 | 62,360 | ||||
Others | |||||||
Net revenues: | |||||||
Total net revenues | ¥ 89,093 | $ 13,799 | ¥ 17,979 | ¥ 219,756 | $ 34,036 | ¥ 342,334 | ¥ 228,372 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - CNY (¥) ¥ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||
Selling and marketing services provided by related parties | ¥ 901 | ¥ 42,770 | ¥ 37,769 | ||
Origination and servicing services provided by related parties | 358 | 15,120 | 39,000 | ||
General and administrative services provided by related parties | 290,630 | 353,151 | 508,162 | ||
Earnings (loss) in equity method investments, tax | ¥ 0 | ¥ 0 | ¥ 10,669 | ¥ 3,425 | ¥ 0 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||
Net income (loss) | ¥ (192,962) | $ (29,887) | ¥ (744,599) | ¥ (2,251,202) | $ (348,666) | ¥ (2,153,645) | ¥ 1,975,183 |
Other comprehensive income (loss): | |||||||
Foreign currency translation adjustment | (37,157) | (5,754) | 24,021 | (99,173) | (15,360) | 12,126 | 84,430 |
Unrealized gains (losses) on available for sale investments, net of tax of nil | (100) | (99) | (1,146) | ||||
Total comprehensive income (loss) | (230,119) | (35,641) | (720,678) | (2,350,375) | (364,026) | (2,141,618) | 2,058,467 |
Total comprehensive income (loss) attributable to the non-controlling interest shareholders | (550) | (85) | 3,586 | (7,693) | (1,191) | (5,931) | 6,621 |
Total comprehensive income (loss) attributable to 9F Inc. | ¥ (230,669) | $ (35,726) | ¥ (717,092) | ¥ (2,358,068) | $ (365,217) | ¥ (2,147,549) | ¥ 2,065,088 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - CNY (¥) ¥ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
Unrealized gains (losses) on available for sale investments, tax | ¥ 0 | ¥ 0 | ¥ 0 | ¥ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY ¥ in Thousands, $ in Thousands | Ordinary sharesCNY (¥)shares | Additional paid-in capitalCNY (¥) | Statutory reserveCNY (¥) | Retained earningsCumulative adjustmentCNY (¥) | Retained earningsCNY (¥) | Accumulated other comprehensive income (loss)CNY (¥) | Total 9F Inc. shareholders' equityCumulative adjustmentCNY (¥) | Total 9F Inc. shareholders' equityCNY (¥) | Non-controlling interestCNY (¥) | Cumulative adjustmentCNY (¥) | CNY (¥)shares | USD ($)shares |
Beginning balance at Dec. 31, 2018 | ¥ 3,046,725 | ¥ 446,277 | ¥ 2,671,275 | ¥ 80,193 | ¥ 6,244,470 | ¥ 10,450 | ¥ 6,254,920 | |||||
Beginning balance (in shares) at Dec. 31, 2018 | shares | 162,672,800 | |||||||||||
Issuance of ordinary shares | 463,065 | 463,065 | 463,065 | |||||||||
Issuance of ordinary shares (in shares) | shares | 8,085,000 | |||||||||||
Conversion of convertible preferred shares to ordinary shares | ¥ 2 | 1,393,131 | 1,393,133 | 1,393,133 | ||||||||
Conversion of convertible preferred shares to ordinary shares (in shares) | shares | 24,433,200 | |||||||||||
Change in redemption value of preferred shares | (10,711) | (10,711) | (10,711) | |||||||||
Share-based compensation | 353,151 | 353,151 | 353,151 | |||||||||
Net income (loss) | (2,159,576) | (2,159,576) | 5,931 | (2,153,645) | ||||||||
Provision of statutory reserve | 12,752 | (12,752) | ||||||||||
Capital contribution from a non-controlling shareholder | 8,913 | 8,913 | ||||||||||
Non-controlling interest arising from an acquisition | 15,862 | 15,862 | ||||||||||
Purchase of noncontrolling interests | (14,776) | (14,776) | 5,889 | (8,887) | ||||||||
Other comprehensive income (loss) | 12,027 | 12,027 | 12,027 | |||||||||
Ending balance at Dec. 31, 2019 | ¥ 2 | 5,241,296 | 459,029 | 488,236 | 92,220 | 6,280,783 | 47,045 | 6,327,828 | ||||
Ending balance (in shares) at Dec. 31, 2019 | shares | 195,191,000 | |||||||||||
Issuance of ordinary shares | (44,876) | (44,876) | (44,876) | |||||||||
Share-based compensation | 207,008 | 207,008 | 207,008 | |||||||||
Net income (loss) | (741,013) | (741,013) | (3,586) | (744,599) | ||||||||
Provision of statutory reserve | 7,348 | (7,348) | ||||||||||
Other comprehensive income (loss) | 23,921 | 23,921 | 23,921 | |||||||||
Ending balance at Jun. 30, 2020 | ¥ 2 | 5,448,304 | 466,377 | (305,001) | 116,141 | 5,725,823 | 43,459 | 5,769,282 | ||||
Ending balance (in shares) at Jun. 30, 2020 | shares | 195,191,000 | |||||||||||
Beginning balance at Dec. 31, 2019 | ¥ 2 | 5,241,296 | 459,029 | 488,236 | 92,220 | 6,280,783 | 47,045 | ¥ 6,327,828 | ||||
Beginning balance (in shares) at Dec. 31, 2019 | shares | 195,191,000 | |||||||||||
Exercise of share options (in shares) | shares | 8,319,681 | 8,319,681 | 8,319,681 | |||||||||
Share-based compensation | 290,630 | 290,630 | ¥ 290,630 | |||||||||
Net income (loss) | (2,258,895) | (2,258,895) | 7,693 | (2,251,202) | $ (348,666) | |||||||
Provision of statutory reserve | 7,323 | (7,323) | ||||||||||
Purchase of noncontrolling interests | (99,173) | (99,173) | (99,173) | |||||||||
Ending balance (ASU 2016-13) at Dec. 31, 2020 | ¥ (44,767) | ¥ (44,767) | ¥ (44,767) | |||||||||
Ending balance at Dec. 31, 2020 | ¥ 2 | 5,531,926 | 466,352 | (1,822,749) | (6,953) | 4,168,578 | 54,738 | ¥ 4,223,316 | $ 654,109 | |||
Ending balance (in shares) at Dec. 31, 2020 | shares | 203,510,681 | |||||||||||
Exercise of share options (in shares) | shares | 0 | 0 | ||||||||||
Share-based compensation | 34,842 | 34,842 | ¥ 34,842 | |||||||||
Net income (loss) | (193,709) | (193,709) | 747 | (192,962) | $ (29,887) | |||||||
Provision of statutory reserve | 116 | (116) | ||||||||||
Other comprehensive income (loss) | 72 | 5,932 | (42,964) | (36,960) | (197) | (37,157) | ||||||
Ending balance at Jun. 30, 2021 | ¥ 2 | ¥ 5,566,840 | ¥ 466,468 | ¥ (2,010,642) | ¥ (49,917) | ¥ 3,972,751 | ¥ 55,288 | ¥ 4,028,039 | $ 623,864 | |||
Ending balance (in shares) at Jun. 30, 2021 | shares | 203,510,681 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2019CNY (¥) | |
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY | |
Issuance cost | ¥ 31,776 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Cash Flows from Operating Activities: | ||||
Net income (loss) | ¥ (2,251,202) | $ (348,666) | ¥ (2,153,645) | ¥ 1,975,183 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||
Depreciation | 14,500 | 2,246 | 28,071 | 16,123 |
Amortization | 9,717 | 1,505 | 9,398 | 2,640 |
Share-based compensation | 290,630 | 45,013 | 353,151 | 508,162 |
Loss from disposals of property and equipment | 2,534 | 392 | 1,123 | 175 |
Share of loss in equity method investments | 21,317 | 3,302 | 29,455 | 41,143 |
Gain recognized on remeasurement of previously held equity interest in acquiree | (16,272) | |||
Loss from disposals of subsidiaries | 257 | |||
Change in fair value of a longterm investment | (1,500) | |||
Impairment loss of equity securities without readily determinable fair value | 282,076 | 43,688 | 154,898 | 23,140 |
Impairment loss of equity method investment | 179,193 | 27,753 | 22,830 | 0 |
Impairment loss of held-to-maturity investment | 1,221 | 189 | ||
Impairment loss of intangible assets | 17,220 | 2,667 | ||
Impairment loss of property, equipment and software | 20,925 | 3,241 | ||
Loss from disposal of equity method investments | 59,058 | 2,035 | ||
Gain from disposal of equity securities without readily determinable fair value | (6,057) | |||
Provision for (reversal of) allowance for doubtful accounts | 340,287 | 52,704 | 2,133,827 | (2,966) |
Provision for (reversal of) doubtful contract assets | 18,605 | 2,882 | 14,811 | 329 |
Impairment loss of goodwill | 50,291 | 7,789 | 6,191 | 0 |
Changes in operating assets and liabilities | ||||
Accounts receivable | 234,861 | 36,375 | (1,539,946) | 122,956 |
Other receivables | (55,605) | (8,612) | 38,462 | (53,806) |
Loan receivables | (22,862) | (3,541) | (127,518) | |
Contract assets | (335,105) | (51,901) | (26,993) | (12,971) |
Prepaid expenses and other assets | 570,392 | 88,342 | 56,586 | (16,015) |
Operating lease right-of-use assets | 93,123 | 14,423 | 54,108 | |
Deferred tax assets | 503,987 | 78,058 | (419,648) | 26,776 |
Amount due from/to related parties | (41,323) | (6,400) | 21,768 | (20,852) |
Accrued expenses and other liabilities | (807,117) | (125,007) | 479,303 | (53,050) |
Income tax payable | (65,056) | (10,076) | 4,068 | (148,109) |
Payroll and welfare payable | (7,106) | (1,101) | 2,704 | (25,985) |
Deferred revenue | (706,263) | (109,386) | 442,059 | (37,223) |
Deferred tax liabilities | (7,934) | (1,229) | (346) | (550) |
Operating lease liabilities | (95,905) | (14,854) | (50,493) | |
Net cash provided by (used in) operating activities | (1,744,599) | (270,204) | (429,047) | 2,345,892 |
Cash Flows from Investing Activities: | ||||
Purchases of property, equipment and software and intangible assets | (56,690) | (48,575) | ||
Disposals of property and equipment | 43,674 | 6,764 | 81 | 56 |
Purchase of term deposits | (109,761) | (17,000) | (232,325) | (1,650,986) |
Redemptions of term deposits | 9,675 | 1,498 | 1,048,830 | 1,549,617 |
Acquisitions of subsidiaries, net of cash acquired | (49,411) | |||
Purchases of long-term investments | (469,578) | (72,728) | (192,684) | (501,091) |
Disposal of long-term investments | 31,497 | 4,878 | 50,887 | |
Prepayment of investments | (632,096) | |||
Payments for origination of loans receivable | (756,068) | (1,712,025) | ||
Proceeds from collection of loans receivable | 533,959 | 82,700 | 30,400 | 1,244,282 |
Loans to related parties | (50,884) | (142,181) | ||
Repayment of loans to related parties | 141,236 | 24,083 | ||
Capital paid for acquiring non-controlling interest | (8,887) | |||
Net cash (used in) provided by investing activities | 39,466 | 6,112 | (707,611) | (1,236,820) |
Cash Flows from Financing Activities: | ||||
Net proceeds from initial public offering and from exercising the over-allotment option by the underwriters (net of issuance cost of RMB31,776) | 463,065 | |||
Capital contribution by noncontrolling shareholders | 12,896 | 1,997 | 8,913 | 1,101 |
Proceeds from issuance of convertible redeemable preferred shares, net of issuance cost of RMB519 and nil for the years ended December 31, 2018 and 2019, respectively. | 544,785 | |||
Net cash provided by financing activities | 12,896 | 1,997 | 471,978 | 545,886 |
Effect of foreign exchange rate changes on cash, cash equivalent and restricted cash | 212 | 34 | 5,043 | 35,333 |
Net increase (decrease) in cash, cash equivalent, and restricted cash | (1,692,026) | (262,061) | (659,637) | 1,690,291 |
Cash, cash equivalent, and restricted cash at the beginning of period | 4,809,440 | 744,887 | 5,469,077 | 3,778,786 |
Cash, cash equivalent, and restricted cash at the end of the period | 3,117,414 | 482,826 | 4,809,440 | 5,469,077 |
Supplemental disclosures of cash flow information: | ||||
Cash paid for income taxes | ¥ 163,000 | $ 24,245 | ¥ 327,234 | ¥ 522,286 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||
Aug. 31, 2019CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Jun. 30, 2020CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2017CNY (¥) | |
Reconciliation to amounts on consolidated balance sheets: | ||||||||||
Cash and cash equivalents | ¥ 4,684,003 | ¥ 5,469,077 | ¥ 1,877,191 | $ 290,740 | ¥ 2,726,712 | $ 422,314 | ¥ 3,651,788 | |||
Restricted cash | 125,437 | 376,796 | 58,358 | 390,702 | 60,512 | 262,730 | ||||
Total cash, cash equivalents, and restricted cash | 4,809,440 | 5,469,077 | ¥ 2,253,987 | $ 349,098 | ¥ 3,117,414 | $ 482,826 | ¥ 3,914,518 | $ 744,887 | ¥ 3,778,786 | |
Issuance cost | ¥ 31,776 | 31,776 | ||||||||
Convertible redeemable preferred shares | ||||||||||
Reconciliation to amounts on consolidated balance sheets: | ||||||||||
Issuance cost | 0 | ¥ 519 | ||||||||
IPO and over-allotment option | ||||||||||
Reconciliation to amounts on consolidated balance sheets: | ||||||||||
Issuance cost | ¥ 31,776 |
ORGANIZATION AND PRINCIPAL ACTI
ORGANIZATION AND PRINCIPAL ACTIVITIES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||
ORGANIZATION AND PRINCIPAL ACTIVITIES | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES 9F Inc. (the “Company” or “9F”) was incorporated under the laws of the Cayman Islands on January 24, 2014. The Company, its subsidiaries, its consolidated variable interest entities (“VIEs”) and VIEs’ subsidiaries (collectively referred to as the “Group”) are digital platform integrating and personalizing financial services in the People’s Republic of China (“PRC”). The Group provides a comprehensive range of financial products and services across online lending, wealth management, and payment facilitation, all integrated under a single digital financial account. In light of the tightening of the RPC regulatory environment, the Group significantly decreased its online lending information intermediary services in 2020 in the PRC and are planning to replace the lost business by developing markets outside the PRC. Prior to the incorporation of the Company, the Group operated its business in China through Jiufu Shuke Technology Group Co, Ltd (“Jiufu Shuke”), formerly known as Jiufu Jinke Holding Group Co, Ltd., as a limited liability company owned by the original shareholders (the “Founders”), Zhenxiang Zhong, Guangwu Gao, and Yifan Ren. On August 25, 2014, Jiufu Shuke became the Group’s consolidated VIEs through the contractual arrangements described below in “Basis of consolidation” in Note 2. | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES 9F Inc. (the “Company” or “9F”) was incorporated under the laws of the Cayman Islands on January 24, 2014. The Company, its subsidiaries, its consolidated variable interest entities (“VIEs”) and VIEs’ subsidiaries (collectively referred to as the “Group”) are digital platform integrating and personalizing financial services in the People’s Republic of China (“PRC”). The Group provides a comprehensive range of financial products and services across online lending, wealth management, and payment facilitation, all integrated under a single digital financial account. In light of the tightening of the RPC regulatory environment, the Group significantly decreased its online lending information intermediary services in 2020 in the PRC and are planning to replace the lost business by developing markets outside the PRC. Prior to the incorporation of the Company, the Group operated its business in China through Jiufu Shuke Technology Group Co, Ltd (“Jiufu Shuke”), formerly known as Jiufu Jinke Holding Group Co, Ltd., as a limited liability company owned by the original shareholders (the “Founders”), Zhenxiang Zhong, Guangwu Gao, and Yifan Ren. On August 25, 2014, Jiufu Shuke became the Group’s consolidated VIEs through the contractual arrangements described below in “Basis of consolidation” in Note 2. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
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 Group have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”). The interim financial statements are condensed and should be read in conjunction with the Group’s latest annual financial statements and that interim disclosures generally do not repeat those in the annual statements. Revenue presentation in the unaudited interim condensed consolidated financial statements and accompanying notes have been reclassified to conform to the current period’s presentation. The Group had made all adjustments necessary for a fair statement of the results for the interim periods. Basis of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries and consolidated VIEs, including the VIEs’ subsidiaries, for which the Group is the primary beneficiary. All transactions and balances among the Company, its subsidiaries, the VIEs and the VIEs’ subsidiaries have been eliminated upon consolidation. As PRC laws and regulations prohibit and restrict foreign ownership of internet value-added businesses, the Group operates its internet related business in the PRC through two PRC domestic companies, Jiufu Shuke and Beijing Puhui Lianyin Information Technology Limited (“Beijing Puhui”), whose equity interests are held by certain management members and the Founders of the Group. The Group established four wholly-owned foreign invested subsidiaries in the PRC, Beijing Shuzhi Lianyin Technology Co., Ltd (“Shunzhi Lianyin”), Zhuhai Xiaojin Hulian Technology Co., Ltd (“Xiaojin Hulian”), Zhuhai Wukong Youpin Technology Co., Ltd (“Wukong Youpin”), and Qinghai Fuyuan Network Technology (Shenzhen) Co., Ltd (“Qinghai Fuyuan”, together with Shunzhi Lianyin, Xiaojin Hulian, and Wukong Youpin collectively referred as the “WFOEs”). By entering into a series of agreements (the “VIE Agreements”), the Group, through WFOEs, obtained control over Jiufu Shuke and Beijing Puhui (collectively referred as “VIEs”). The VIE Agreements enable the Group to (1) have power to direct the activities that most significantly affect the economic performance of the VIEs, and (2) receive the economic benefits of the VIEs that could be significant to the VIEs. Accordingly, the Group is considered the primary beneficiary of the VIEs and has consolidated the VIEs’ financial results of operations, assets and liabilities in the Group’s consolidated financial statements. In making the conclusion that the Group is the primary beneficiary of the VIEs, the Group’s rights under the Power of Attorney also provide the Group’s abilities to direct the activities that most significantly impact the VIEs’ economic performance. The Group also believes that this ability to exercise control ensures that the VIEs will continue to execute and renew the Master Exclusive Service Agreement and pay service fees to the Group. By charging service fees to be determined and adjusted at the sole discretion of the Group, and by ensuring that the Master Exclusive Service Agreement is executed and remains effective, the Group has the rights to receive substantially all of the economic benefits from the VIEs. Details of the VIE Agreements, are set forth below: VIE Agreements that were entered to give the Group effective control over the VIEs include: Voting Rights Proxy Agreement and Irrevocable Power of Attorney Under which each shareholder of the VIEs grant to any person designated by WFOEs to act as its attorney-in-fact to exercise all shareholder rights under PRC law and the relevant articles of association, including but not limited to, appointing directors, supervisors and officers of the VIEs as well as the right to sell, transfer, pledge and dispose all or a portion of the equity interest held by such shareholders of the VIEs. The proxy and power of attorney agreements will remain effective as long as WFOEs exist. The shareholders of the VIEs do not have the right to terminate the proxy agreements or revoke the appointment of the attorney-in-fact without written consent of the WFOEs. Exclusive Option Agreement Under which each shareholder of the VIEs granted 9F or any third party designated by 9F the exclusive and irrevocable right to purchase from such shareholders of the VIEs, to the extent permitted by PRC law and regulations, all or part of their respective equity interests in the VIEs for a purchase price equal to the registered capital. The shareholders of the VIEs will then return the purchase price to 9F or any third party designated by 9F after the option is exercised. 9F may transfer all or part of its option to a third party at its own option. The VIEs and its shareholders agree that without prior written consent of 9F, they may not transfer or otherwise dispose the equity interests or declare any dividends. The restated option agreement will remain effective until 9F or any third party designated by 9F acquires all equity interest of the VIEs. Spousal Consent The spouse of each shareholder of the VIEs has entered into a spousal consent letter to acknowledge that he or she consents to the disposition of the equity interests held by his or her spouse in the VIEs in accordance with the exclusive option agreement, the power of attorney and the equity pledge agreement regarding VIE structure described above, and any other supplemental agreement(s) may be consented by his or her spouse from time to time. Each such spouse further agrees that he or she will not take any action or raise any claim to interfere with the arrangements contemplated under the mentioned agreements. In addition, each such spouse further acknowledges that any right or interest in the equity interests held by his or her spouse in the VIEs do not constitute property jointly owned with his or her spouse and each such spouse unconditionally and irrevocably waives any right or interest in such equity interests. Loan Agreement Pursuant to the loan agreements between WFOEs and each shareholder of the VIEs, WFOEs extended loans to the shareholders of the VIEs, who had contributed the loan principal to the VIEs as registered capital. The shareholders of VIEs may repay the loans only by transferring their respective equity interests in VIEs to 9F Inc. or its designated person(s) pursuant to the exclusive option agreements. These loan agreements will remain effective until the date of full performance by the parties of their respective obligations thereunder. VIE Agreements that enables the Group to receive substantially all of the economic benefits from the VIEs include: Equity Interest Pledge Agreement Pursuant to equity interest pledge agreement, each shareholder of the VIEs has pledged all of his or her equity interest held in the VIEs to WFOEs to secure the performance by VIEs and their shareholders of their respective obligations under the contractual arrangements, including the payments due to WFOEs for services provided. In the event that the VIEs breach any obligations under these agreements, WFOEs as the pledgees, will be entitled to request immediate disposal of the pledged equity interests and have priority to be compensated by the proceeds from the disposal of the pledged equity interests. The shareholders of the VIEs shall not transfer their equity interests or create or permit to be created any pledges without the prior written consent of WFOEs. The equity interest pledge agreement will remain valid until the master exclusive service agreement and the relevant exclusive option agreements and proxy and power of attorney agreements, expire or terminate. Master Exclusive Service Agreement Pursuant to exclusive service agreement, WFOEs have the exclusive right to provide the VIEs with technical support, consulting services and other services. WFOEs shall exclusively own any intellectual property arising from the performance of the agreement. During the term of this agreement, the VIEs may not accept any services covered by this agreement provided by any third party. The VIEs agree to pay service fees to be determined and adjusted at the sole discretion of the WFOEs. The agreement will remain effective unless WFOEs terminate the agreement in writing. Risks in relation to the VIE structure The Group believes that the contractual arrangements with the VIEs and their current shareholders are in compliance with PRC laws and regulations and are legally enforceable. However, uncertainties in the PRC legal system could limit the Group’s ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government could: ● Revoke the business and operating licenses of the Group’s PRC subsidiaries or consolidated affiliated entities; ● Discontinue or restrict the operations of any related-party transactions among the Group’s PRC subsidiaries or consolidated affiliated entities; ● Impose fines or other requirements on the Group’s PRC subsidiaries or consolidated affiliated entities; ● Require the Group’s PRC subsidiaries or consolidated affiliated entities to revise the relevant ownership structure or restructure operations; and/or; ● Restrict or prohibit the Group’s use of the proceeds of the additional public offering to finance the Group’s business and operations in China; ● Shut down the Group’s servers or blocking the Group’s online platform; ● Discontinue or place restrictions or onerous conditions on the Group’s operations; and/or ● Require the Group to undergo a costly and disruptive restructuring. The Group’s ability to conduct its business may be negatively affected if the PRC government were to carry out any of the aforementioned actions. As a result, the Group may not be able to consolidate the VIEs in its consolidated financial statements as it may lose the ability to exert effective control over the VIEs and its shareholders, and it may lose the ability to receive economic benefits from the VIEs. The Group currently does not believe that any penalties imposed or actions taken by the PRC government would result in the liquidation of the Company, WFOEs, or the VIEs. The following table sets forth the assets, liabilities, results of operations and cash flows of the VIEs and their subsidiaries, which are included in the Group’s consolidated financial statements after the elimination of intercompany balances and transactions: As of December 31, As of June 30, 2020 2021 RMB RMB Assets: Cash and cash equivalents 1,501,733 1,293,615 Term deposits 135,000 105,000 Investment in marketable securities — 77,109 Accounts receivable, net 9,888 45,957 Other receivables, net 68,742 144,449 Loan receivables, net 221,200 163,200 Prepaid expenses and other assets 740,959 837,041 Contracts assets, net 10,374 6,494 Long‑term investments, net 491,510 489,727 Operating lease right-of-use assets, net 18,611 16,130 Property, equipment and software, net 51,701 39,507 Goodwill, net 72,304 72,304 Intangible assets, net 40,187 38,700 Total assets 3,362,209 3,329,233 Liabilities: Deferred revenue 81,246 9,904 Payroll and welfare payable 29,152 12,614 Income taxes payable 224,533 238,179 Accrued expenses and other liabilities 238,170 274,219 Operating lease liabilities 19,100 15,408 Amounts due to related parties 24,146 23,967 Deferred tax liabilities 5,742 5,392 Total liabilities 622,089 579,683 For the six months ended June 30, 2020 2021 RMB RMB Net revenues 787,925 332,913 Net income (loss) (406,710) 10,552 For the six months ended June 30, 2020 2021 RMB RMB Net cash provided by (used in) operating activities (175,504) (228,263) Net cash used in investing activities (396,186) 20,145 Net cash provided by (used in) financing activities — — Under the VIE Arrangements, the Group has the power to direct activities of the VIEs and can have assets transferred out of the VIEs. Therefore, the Group considers that there is no asset in the VIEs that can be used only to settle obligations of the VIEs, except for assets that correspond to the amount of the registered capital and PRC statutory reserves, if any. As the VIEs are incorporated as limited liability companies under the Company Law of the PRC, creditors of the VIEs do not have recourse to the general credit of the Group for any of the liabilities of the VIEs. Currently there is no contractual arrangement which requires the Group to provide additional financial support to the VIEs. However, as the Group conducts its businesses primarily based on the licenses held by the VIEs, the Group has provided and will continue to provide financial support to the VIEs. Revenue-producing assets held by the VIEs include certain internet content provision (“ICP”) licenses and other licenses, domain names and trademarks. The ICP licenses and other licenses are required under relevant PRC laws, rules and regulations for the operation of internet businesses in the PRC, and therefore are integral to the Group’s operations. The ICP licenses require that core PRC trademark registrations and domain names are held by the VIEs that provide the relevant services. The VIE contributed an aggregate of 92.87% and 84.72% of the consolidated net revenues for six months ended June 30,2020 and 2021 respectively. As of December 31, 2020 and June 30,2021, the VIE accounted for an aggregate of 62.42% and 64.41% respectively, of the consolidated total assets, and 53.48% and 50.81%, respectively, of the consolidated total liabilities. The assets that were not associated with the VIE primarily consist of cash and cash equivalents. 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 are estimates and judgments applied in revenue recognition, allowance for receivables, impairment loss of investments, share-based compensation and realization of deferred tax assets. Actual results may differ materially from these estimates. Revenue recognition The Group follows the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers The core principle of Topic 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Online Lending Information Intermediary Services revenue Through its online platform, the Group provides intermediary services on the personal financing product, One Card, under which the holders of One Card can apply for loans on a revolving basis (“revolving loan products”). The Group also provides one-time loan facilitation services to meet various consumption needs (“non-revolving loan product”). For revolving loan products and non-revolving loan products, the Group’s services provided consist of: a) Matching marketplace investors to potential qualified borrowers and facilitating the execution of loan agreements between the parties (referred to as “loan facilitation service”); and b) Providing repayment processing services for the marketplace investors and borrowers over the loan term, including repayment reminders and following up on late repayments (referred to as “post origination services”). The Group has determined that it is not the legal lender or borrower in the loan origination and repayment process, but acting as an intermediary to bring the lender and the borrower together. Therefore, the Group does not record the loans receivable or payable arising from the loans facilitated between the investors and borrowers on its platform. The Group considers its customers to be both the investors and borrowers. The Group considers the loan facilitation service and post origination services as two separate services, which represent two separate performance obligations under Topic 606, as these two deliverables are distinct in that customers can benefit from each service on its own and the Group’s promises to deliver the services are separately identifiable from each other in the contract. The Group determines the total transaction price to be the service fees chargeable from the borrowers and investors. The transaction price is allocated to the loan facilitation services and post origination services using their relative standalone selling prices consistent with the guidance in Topic 606. The Group does not have observable standalone selling price information for the loan facilitation services or post origination services because it does not provide loan facilitation services or post origination services on a standalone basis. There is no direct observable standalone selling price for similar services in the market that is reasonably available to the Group. As a result, the Group uses an expected plus margin approach to estimate the standalone selling prices of loan facilitation services and post origination services as the basis of revenue allocation, which involves significant judgements. In estimating its standalone selling price for the loan facilitation services and post origination services, the Group considers the cost incurred to deliver such services, profit margin for similar arrangements, customer demand, effect of competitors on the Group’s services, and other market factors. For each type of service, the Group recognizes revenue when (or as) the entity satisfies the service/performance obligation by transferring a promised good or service (that is, an asset) to a customer. Revenues from loan facilitation are recognized at the time a loan is originated between the investor and the borrower and the principal loan balance is transferred to the borrower, at which time the loan facilitation service is considered completed. Revenues from post origination services are recognized on a straight-line basis over the term of the underlying loans as the services are provided ratably on a monthly basis. A majority of the service fee is charged to the borrowers, which is collected upfront upon at the loan inception or collected over the loan term. Investors pay service fees to the Group either at the beginning and at the end of the investment commitment period (in terms of automated investing tools) or over the terms of the loan (in terms of self-directing investing tools). In 2018, 2019 and 2020, service fees charged at the beginning or at the end of the investment commitment period or over the terms of the loans in the periods presented were calculated to be equal to an annualized interest rate ranging from 0.5% to 1.5% based on the investment amount and the investment term. Service fees charged to borrowers and investors, including the service fees charged to investors collected at the end of the investment commitment period or over the terms of the loans in the periods presented, were combined as contract price to be allocated to the two performance obligations relating to loan facilitation services and post-origination services, and recognized as revenue when the relevant services are delivered. Revenue recognized related to service fees not yet received from investors that will be collected at the end of the investment commitment period and over the commitment period are recorded as accounts receivable. All service fees are fixed and not refundable. Revenue recognized is recorded net of value added tax (“VAT”). Remaining performance obligations represent the amount of the transaction price for which service has not been performed under post-origination services. In June 2021, the Group ceased publishing information relating to new offerings of investment opportunities in fixed income products for investors on its online lending information intermediary platform. Pursuant to certain collaboration arrangements entered into by the Group and a licensed asset management company, the rights of investors in existing loans underlying the fixed income products will be transferred to the asset management company. After such transfer, the outstanding balance of loans facilitated shall become nil, and the asset management company will provide existing investors with services in relation to the return of their remaining investment in loans. Direct lending program revenue Through its direct lending program, the Group provides traffic referral services to financial institution partners, allowing the financial institution partners to gain access to borrowers who passed the Group’s risk assessment. The Group’s services provided consist of: a) Matching financial institution partners to potential qualified borrowers, and facilitating the execution of loan agreements between the parties (also referred to as “loan facilitation service”); and b) Providing repayment processing services for the financial institution partners and borrowers over the loan term, including repayment reminders and loan collection (also referred to as “post origination services”). Consistent with the revenue recognition policy under the online lending information intermediary services model, the Group has determined that it is not the legal lender or borrower in the loan origination and repayment process, but acting as an intermediary to bring the lender and the borrower together. Therefore, the Group does not record the loans receivable or payable arising from the loans facilitated between the financial institution partners and borrowers. The Group considers its customers to be both the financial institution partners and borrowers. The Group considers the loan facilitation service and post origination service as two separate performance obligations. The Group determines the total transaction price to be the service fees chargeable from the borrowers or the financial institution partners, which is the contracted price adjusted for variable consideration such as potential loan prepayment by the borrows that could reduce the total transaction price, which is estimated using the expected value approach based on historical data and current trends of prepayments of the borrowers. Then the transaction price is allocated to the loan facilitation services and post origination services using their relative standalone selling prices consistent with the guidance in Topic 606, similar to online lending information intermediary services revenue. For each type of service, the Group recognizes revenue when (or as) the entity satisfies the service/performance obligation by transferring the promised service to customers. Revenues from loan facilitation services are recognized at the time a loan is originated between the financial institution 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 origination services are recognized on a straight-line basis over the term of the underlying loans as the services are provided ratably on a monthly basis. Since April 2019, the Group has stopped charging service fees directly to the borrowers under its direct lending program. Instead, the Group started to charge service fees either directly to the institutional funding partners, or indirectly through third-party guarantee companies who provide guarantee services, or the insurance company who provided credit insurance to the institutional funding partners on their loans to the borrowers. The Group concluded this change did not alter the substance of the services it provided to borrowers and financial institution partners under the direct lending program, and therefore would not impact how revenue was recognized. In 2019, under a cooperation agreement, as amended (the “Cooperation Agreement”), the Group predominantly partnered with PICC Property and Casualty Company Limited Guangdong Branch (“PICC”) who provided the credit insurance service to institutional funding partners on the loan origination, PICC collected all of the loan facilitation service fees and remitted the Group’s portion of the service fees to the Group. The Group recorded an account receivable for the service fees confirmed and to be remitted by PICC. Technical services The Group offers technical services to customers including technology empowerment services, operation and marketing support services, customized software development, etc. Technology empowerment services to customers with respect to user acquisition, risk management, consumption scenario perception and comprehension and data modeling. Technical services generate revenues primarily from fixed-price short-term contracts, revenue generated from technology empowerment services, operation and marketing support services is generally recognized over time on a ratable basis. Revenue generated from technology customized software development is recognized when control over the customized software has been transferred to the customer. Wealth management services Through its internet securities service platform,the Group provides Internet Securities Service, Insurance Brokerage Service and Small consumptive business in Southeast Asia. The Group offers convenient and effective global asset allocation services, especially offshore securities investment services, to individual investors so as to connect them with Hong Kong and U.S. stock markets.Internet Securities Service generated revenue from commissions through customers’ transactions in stocks by providing brokerage service for its customers. The Group enters into insurance brokerage service contracts with insurance companies with a pre-agreed commission. The commissions is normally calculated as a percentage (which varies depending on the type of insurance products involved) of the premium to the insurance companies from sales facilitated by the group in respect of an insurance product.For insurance brokerage service, the single performance obligation identified is to provide facilitation service to the insurance companies. For each type of service, the Group recognizes revenue when (or as) the entity satisfies the service/performance obligation by transferring the promised service to customers. The Internet Securities Service is recognized at a point in time on the trade date when the performance obligation is satisfied. The brokerage service commission are earned when each individual insurance transaction is completed. Other revenues Other revenues mainly include product sales revenues from online sales of goods, customer referral and government subsidy income,etc. The Group generates product sales revenues primarily through selling of merchandise via its online shopping platform, 9F One Mall (“online agent model”), and through selling of upscale products via third party platforms (“online direct sales model”). Under online agent model, customers can buy merchandise provided by third-party merchandise suppliers on our 9F One Mall. The Group does not control the merchandise, but rather is acting as an agent for the suppliers. Revenue is recognized for the net amount of consideration the Group is entitled to retain in exchange for the agent service. The Group commenced the operations of the online direct sales model in the first quarter of 2019 and terminated the operations of the online direct sales model in the third quarter of 2019. Under the online direct sales model, revenue is recognized on a gross basis as the Group controls the merchandise before it is transferred to the customers, which is indicated by (i) the Group is primarily responsible for fulfilling the promise to provide the specified upscale products to the customers; (ii) the Group bears inventory risk; and (iii) the Group has discretion in establishing price. Cash incentives To expand market presence, the Group voluntarily provides cash incentives in the form of cash coupons to new and existing investors during its marketing activities. These coupons are not related to prior transactions, and can only be utilized in conjunction with subsequent lending activities. The cash incentives provided are accounted as a reduction of the transaction price according to ASC 606 10 32 25. Cash incentives paid to existing investors, cash incentives paid to new investors, and cash incentives recognized as a reduction of revenue for six months ended June 30, 2020 was RMB 61.7 1.86 64.4 Value added taxes (“VAT”) The Group is subject to value added tax, or VAT, at a rate of 16% from May 1,2018 to March 31,2019 and 13% thereafter on sales of products, and at a rate of 6% on services rendered by the Group, less any deductible VAT the Group has already paid or borne, except for entities qualified as small-scale taxpayers at a VAT rate of 3% without any deduction. Since April 1, 2019, the Group has been subject to an additional 10% deductible VAT. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. VAT is reported as a deduction to revenue when incurred and amounted to RMB 101,869 102,953 Disaggregation of revenues The Group generates revenues primarily from loan facilitation and post-origination services provided to investors, borrowers and financial institution partners through its online lending information intermediary services and direct lending program for the six months ended June 30,2020. The Group generates revenues from thehnical services and wealth management service provided to the customers during the six months ended June 30,2020 and 2021. The Group also generates other revenues, such as penalty fees charged to borrowers for late payment, product sales revenues from online sales of goods, and other service revenues. The following table provides further disaggregation by types of revenues recognized for the six months ended June 30,2020 and 2021: Loan Post facilitation origination Technical Wealth Other For the six months ended June 30,2020 services services services management revenues Total RMB RMB RMB RMB RMB RMB Online lending platform revenue Online lending information intermediary services revenue Revolving loan products (One Card) 133,743 48,815 — — — 182,558 Non‑revolving loan products Direct lending program revenue 94,049 481,417 — — — 575,466 Other revenue 10,067 62,360 17,979 90,406 Total 227,792 530,232 10,067 62,360 17,979 848,430 Loan Post facilitation origination Technical Wealth Other For the six months ended June 30,2021 services services services management revenues Total RMB RMB RMB RMB RMB RMB Online lending platform revenue Online lending information intermediary services revenue Revolving loan products (One Card) — 68,826 — — — 68,826 Non‑revolving loan products Direct lending program revenue — 9,178 — — — 9,178 Other revenue 164,497 61,362 89,093 314,952 Total — 78,004 164,497 61,362 89,093 392,956 The Group manages its business through a comprehensive offering of financial products and services tailored to the needs of the investors, borrowers and customers. These financial products are categorized by the Group as Online Lending platform revenue, wealth management products and others. The following table illustrates the disaggregation of revenues by product offering for the six months ended June 30,2020 and 2021: June 30, June 30, 2020 2021 RMB RMB Online Lending platform revenue 758,024 78,004 Technical services 10,067 164,497 Wealth management services 62,360 61,362 Others 17,979 89,093 Total 848,430 392,956 Deferred Revenue Deferred revenue consists of post origination service fees received or receivable from borrowers, investors and financial institution partners for which services have not yet been provided. Deferred revenues is recognized ratably as revenue when the post-origination services are delivered during the loan period. Revenue recognized during the six months ended June 30,2021 that was included in the deferred revenue balance at the beginning of the year was RMB72,564. In December 2018, China | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The accompanying consolidated financial statements of the Group have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”). Basis of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries and consolidated VIEs, including the VIEs’ subsidiaries, for which the Group is the primary beneficiary. All transactions and balances among the Company, its subsidiaries, the VIEs and the VIEs’ subsidiaries have been eliminated upon consolidation. As PRC laws and regulations prohibit and restrict foreign ownership of internet value-added businesses, the Group operates its internet related business in the PRC through two PRC domestic companies, Jiufu Shuke and Beijing Puhui Lianyin Information Technology Limited (“Beijing Puhui”), whose equity interests are held by certain management members and the Founders of the Group. The Group established four wholly-owned foreign invested subsidiaries in the PRC, Beijing Shuzhi Lianyin Technology Co., Ltd (“Shunzhi Lianyin”), Zhuhai Xiaojin Hulian Technology Co., Ltd (“Xiaojin Hulian”), Zhuhai Wukong Youpin Technology Co., Ltd (“Wukong Youpin”), and Qinghai Fuyuan Network Technology (Shenzhen) Co., Ltd (“Qinghai Fuyuan”, together with Shunzhi Lianyin, Xiaojin Hulian, and Wukong Youpin collectively referred as the “WFOEs”). By entering into a series of agreements (the “VIE Agreements”), the Group, through WFOEs, obtained control over Jiufu Shuke and Beijing Puhui (collectively referred as “VIEs”). The VIE Agreements enable the Group to (1) have power to direct the activities that most significantly affect the economic performance of the VIEs, and (2) receive the economic benefits of the VIEs that could be significant to the VIEs. Accordingly, the Group is considered the primary beneficiary of the VIEs and has consolidated the VIEs’ financial results of operations, assets and liabilities in the Group’s consolidated financial statements. In making the conclusion that the Group is the primary beneficiary of the VIEs, the Group’s rights under the Power of Attorney also provide the Group’s abilities to direct the activities that most significantly impact the VIEs’ economic performance. The Group also believes that this ability to exercise control ensures that the VIEs will continue to execute and renew the Master Exclusive Service Agreement and pay service fees to the Group. By charging service fees to be determined and adjusted at the sole discretion of the Group, and by ensuring that the Master Exclusive Service Agreement is executed and remains effective, the Group has the rights to receive substantially all of the economic benefits from the VIEs. Details of the VIE Agreements, are set forth below: VIE Agreements that were entered to give the Group effective control over the VIEs include: Voting Rights Proxy Agreement and Irrevocable Power of Attorney Under which each shareholder of the VIEs grant to any person designated by WFOEs to act as its attorney-in-fact to exercise all shareholder rights under PRC law and the relevant articles of association, including but not limited to, appointing directors, supervisors and officers of the VIEs as well as the right to sell, transfer, pledge and dispose all or a portion of the equity interest held by such shareholders of the VIEs. The proxy and power of attorney agreements will remain effective as long as WFOEs exist. The shareholders of the VIEs do not have the right to terminate the proxy agreements or revoke the appointment of the attorney-in-fact without written consent of the WFOEs. Exclusive Option Agreement Under which each shareholder of the VIEs granted 9F or any third party designated by 9F the exclusive and irrevocable right to purchase from such shareholders of the VIEs, to the extent permitted by PRC law and regulations, all or part of their respective equity interests in the VIEs for a purchase price equal to the registered capital. The shareholders of the VIEs will then return the purchase price to 9F or any third party designated by 9F after the option is exercised. 9F may transfer all or part of its option to a third party at its own option. The VIEs and its shareholders agree that without prior written consent of 9F, they may not transfer or otherwise dispose the equity interests or declare any dividends. The restated option agreement will remain effective until 9F or any third party designated by 9F acquires all equity interest of the VIEs. Spousal Consent The spouse of each shareholder of the VIEs has entered into a spousal consent letter to acknowledge that he or she consents to the disposition of the equity interests held by his or her spouse in the VIEs in accordance with the exclusive option agreement, the power of attorney and the equity pledge agreement regarding VIE structure described above, and any other supplemental agreement(s) may be consented by his or her spouse from time to time. Each such spouse further agrees that he or she will not take any action or raise any claim to interfere with the arrangements contemplated under the mentioned agreements. In addition, each such spouse further acknowledges that any right or interest in the equity interests held by his or her spouse in the VIEs do not constitute property jointly owned with his or her spouse and each such spouse unconditionally and irrevocably waives any right or interest in such equity interests. Loan Agreement Pursuant to the loan agreements between WFOEs and each shareholder of the VIEs, WFOEs extended loans to the shareholders of the VIEs, who had contributed the loan principal to the VIEs as registered capital. The shareholders of VIEs may repay the loans only by transferring their respective equity interests in VIEs to 9F Inc. or its designated person(s) pursuant to the exclusive option agreements. These loan agreements will remain effective until the date of full performance by the parties of their respective obligations thereunder. VIE Agreements that enables the Group to receive substantially all of the economic benefits from the VIEs include: Equity Interest Pledge Agreement Pursuant to equity interest pledge agreement, each shareholder of the VIEs has pledged all of his or her equity interest held in the VIEs to WFOEs to secure the performance by VIEs and their shareholders of their respective obligations under the contractual arrangements, including the payments due to WFOEs for services provided. In the event that the VIEs breach any obligations under these agreements, WFOEs as the pledgees, will be entitled to request immediate disposal of the pledged equity interests and have priority to be compensated by the proceeds from the disposal of the pledged equity interests. The shareholders of the VIEs shall not transfer their equity interests or create or permit to be created any pledges without the prior written consent of WFOEs. The equity interest pledge agreement will remain valid until the master exclusive service agreement and the relevant exclusive option agreements and proxy and power of attorney agreements, expire or terminate. Master Exclusive Service Agreement Pursuant to exclusive service agreement, WFOEs have the exclusive right to provide the VIEs with technical support, consulting services and other services. WFOEs shall exclusively own any intellectual property arising from the performance of the agreement. During the term of this agreement, the VIEs may not accept any services covered by this agreement provided by any third party. The VIEs agree to pay service fees to be determined and adjusted at the sole discretion of the WFOEs. The agreement will remain effective unless WFOEs terminate the agreement in writing. Risks in relation to the VIE structure The Group believes that the contractual arrangements with the VIEs and their current shareholders are in compliance with PRC laws and regulations and are legally enforceable. However, uncertainties in the PRC legal system could limit the Group’s ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government could: ● Revoke the business and operating licenses of the Group’s PRC subsidiaries or consolidated affiliated entities; ● Discontinue or restrict the operations of any related-party transactions among the Group’s PRC subsidiaries or consolidated affiliated entities; ● Impose fines or other requirements on the Group’s PRC subsidiaries or consolidated affiliated entities; ● Require the Group’s PRC subsidiaries or consolidated affiliated entities to revise the relevant ownership structure or restructure operations; and/or; ● Restrict or prohibit the Group’s use of the proceeds of the additional public offering to finance the Group’s business and operations in China; ● Shut down the Group’s servers or blocking the Group’s online platform; ● Discontinue or place restrictions or onerous conditions on the Group’s operations; and/or ● Require the Group to undergo a costly and disruptive restructuring. The Group’s ability to conduct its business may be negatively affected if the PRC government were to carry out any of the aforementioned actions. As a result, the Group may not be able to consolidate the VIEs in its consolidated financial statements as it may lose the ability to exert effective control over the VIEs and its shareholders, and it may lose the ability to receive economic benefits from the VIEs. The Group currently does not believe that any penalties imposed or actions taken by the PRC government would result in the liquidation of the Company, WFOEs, or the VIEs. The following table sets forth the assets, liabilities, results of operations and cash flows of the VIEs and their subsidiaries, which are included in the Group’s consolidated financial statements after the elimination of intercompany balances and transactions: As of December 31, 2019 2020 RMB RMB Assets: Cash and cash equivalents 2,766,981 1,501,733 Term deposits 24,000 135,000 Accounts receivable, net 267,277 9,888 Other receivables, net 81,525 68,742 Loan receivables, net 729,798 221,200 Amounts due from related parties 50,000 — Prepaid expenses and other assets 1,085,197 740,959 Contracts assets, net 24,814 10,374 Long‑term investments, net 293,441 491,510 Operating lease right-of-use assets, net 113,606 18,611 Property, equipment and software, net 95,783 51,701 Goodwill, net 72,224 72,304 Intangible assets, net 45,362 40,187 Deferred tax assets, net 503,078 — Total assets 6,153,086 3,362,209 Liabilities: Deferred revenue 772,340 81,246 Payroll and welfare payable 35,958 29,152 Income taxes payable 303,684 224,533 Accrued expenses and other liabilities 1,056,128 238,170 Operating lease liabilities 119,005 19,100 Amounts due to related parties 29,902 24,146 Deferred tax liabilities 13,200 5,742 Total liabilities 2,330,217 622,089 For the years ended December 31, 2018 2019 2020 RMB RMB RMB Net revenues 5,270,948 4,305,272 1,145,210 Net income (loss) 2,702,469 (1,551,509) (1,479,883) For the years ended December 31, 2018 2019 2020 RMB RMB RMB Net cash provided by (used in) operating activities 2,906,094 (439,357) (753,416) Net cash used in investing activities (803,155) (1,315,875) (511,832) Net cash provided by (used in) financing activities 1,000 (5,188) — Under the VIE Arrangements, the Group has the power to direct activities of the VIEs and can have assets transferred out of the VIEs. Therefore, the Group considers that there is no asset in the VIEs that can be used only to settle obligations of the VIEs, except for assets that correspond to the amount of the registered capital and PRC statutory reserves, if any. As the VIEs are incorporated as limited liability companies under the Company Law of the PRC, creditors of the VIEs do not have recourse to the general credit of the Group for any of the liabilities of the VIEs. Currently there is no contractual arrangement which requires the Group to provide additional financial support to the VIEs. However, as the Group conducts its businesses primarily based on the licenses held by the VIEs, the Group has provided and will continue to provide financial support to the VIEs. Revenue-producing assets held by the VIEs include certain internet content provision (“ICP”) licenses and other licenses, domain names and trademarks. The ICP licenses and other licenses are required under relevant PRC laws, rules and regulations for the operation of internet businesses in the PRC, and therefore are integral to the Group’s operations. The ICP licenses require that core PRC trademark registrations and domain names are held by the VIEs that provide the relevant services. The VIE contributed an aggregate of 94.86%, 97.30% and 91.18% of the consolidated net revenues for the year ended December 31, 2018, 2019 and 2020, respectively. As of December 31, 2019 and 2020, the VIE accounted for an aggregate of 69.29% and 62.42% respectively, of the consolidated total assets, and 91.29% and 53.48%, respectively, of the consolidated total liabilities. The assets that were not associated with the VIE primarily consist of cash and cash equivalents. 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 are estimates and judgments applied in revenue recognition, allowance for receivables, impairment loss of investments, share-based compensation and realization of deferred tax assets. Actual results may differ materially from these estimates. Revenue recognition The Group follows the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers The core principle of Topic 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Online Lending Information Intermediary Services revenue Through its online platform, the Group provides intermediary services on the personal financing product, One Card, under which the holders of One Card can apply for loans on a revolving basis (“revolving loan products”). The Group also provides one-time loan facilitation services to meet various consumption needs (“non-revolving loan product”). For revolving loan products and non-revolving loan products, the Group’s services provided consist of: a) Matching marketplace investors to potential qualified borrowers and facilitating the execution of loan agreements between the parties (referred to as “loan facilitation service”); and b) Providing repayment processing services for the marketplace investors and borrowers over the loan term, including repayment reminders and following up on late repayments (referred to as “post origination services”). The Group has determined that it is not the legal lender or borrower in the loan origination and repayment process, but acting as an intermediary to bring the lender and the borrower together. Therefore, the Group does not record the loans receivable or payable arising from the loans facilitated between the investors and borrowers on its platform. The Group considers its customers to be both the investors and borrowers. The Group considers the loan facilitation service and post origination services as two separate services, which represent two separate performance obligations under Topic 606, as these two deliverables are distinct in that customers can benefit from each service on its own and the Group’s promises to deliver the services are separately identifiable from each other in the contract. The Group determines the total transaction price to be the service fees chargeable from the borrowers and investors. The transaction price is allocated to the loan facilitation services and post origination services using their relative standalone selling prices consistent with the guidance in Topic 606. The Group does not have observable standalone selling price information for the loan facilitation services or post origination services because it does not provide loan facilitation services or post origination services on a standalone basis. There is no direct observable standalone selling price for similar services in the market that is reasonably available to the Group. As a result, the Group uses an expected plus margin approach to estimate the standalone selling prices of loan facilitation services and post origination services as the basis of revenue allocation, which involves significant judgements. In estimating its standalone selling price for the loan facilitation services and post origination services, the Group considers the cost incurred to deliver such services, profit margin for similar arrangements, customer demand, effect of competitors on the Group’s services, and other market factors. For each type of service, the Group recognizes revenue when (or as) the entity satisfies the service/performance obligation by transferring a promised good or service (that is, an asset) to a customer. Revenues from loan facilitation are recognized at the time a loan is originated between the investor and the borrower and the principal loan balance is transferred to the borrower, at which time the loan facilitation service is considered completed. Revenues from post origination services are recognized on a straight-line basis over the term of the underlying loans as the services are provided ratably on a monthly basis. A majority of the service fee is charged to the borrowers, which is collected upfront upon at the loan inception or collected over the loan term. Investors pay service fees to the Group either at the beginning and at the end of the investment commitment period (in terms of automated investing tools) or over the terms of the loan (in terms of self-directing investing tools). In 2018, 2019 and 2020, service fees charged at the beginning or at the end of the investment commitment period or over the terms of the loans in the periods presented were calculated to be equal to an annualized interest rate ranging from 0.5% to 1.5% based on the investment amount and the investment term. Service fees charged to borrowers and investors, including the service fees charged to investors collected at the end of the investment commitment period or over the terms of the loans in the periods presented, were combined as contract price to be allocated to the two performance obligations relating to loan facilitation services and post-origination services, and recognized as revenue when the relevant services are delivered. Revenue recognized related to service fees not yet received from investors that will be collected at the end of the investment commitment period and over the commitment period are recorded as accounts receivable. All service fees are fixed and not refundable. Revenue recognized is recorded net of value added tax (“VAT”). Remaining performance obligations represent the amount of the transaction price for which service has not been performed under post-origination services. In December 2020, the Group ceased publishing information relating to new offerings of investment opportunities in fixed income products for investors on its online lending information intermediary platform. Pursuant to certain collaboration arrangements entered into by the Group and a licensed asset management company, the rights of investors in existing loans underlying the fixed income products will be transferred to the asset management company. After such transfer, the outstanding balance of loans facilitated shall become nil, and the asset management company will provide existing investors with services in relation to the return of their remaining investment in loans. Direct lending program revenue Through its direct lending program, the Group provides traffic referral services to financial institution partners, allowing the financial institution partners to gain access to borrowers who passed the Group’s risk assessment. The Group’s services provided consist of: a) Matching financial institution partners to potential qualified borrowers, and facilitating the execution of loan agreements between the parties (also referred to as “loan facilitation service”); and b) Providing repayment processing services for the financial institution partners and borrowers over the loan term, including repayment reminders and loan collection (also referred to as “post origination services”). Consistent with the revenue recognition policy under the online lending information intermediary services model, the Group has determined that it is not the legal lender or borrower in the loan origination and repayment process, but acting as an intermediary to bring the lender and the borrower together. Therefore, the Group does not record the loans receivable or payable arising from the loans facilitated between the financial institution partners and borrowers. The Group considers its customers to be both the financial institution partners and borrowers. The Group considers the loan facilitation service and post origination service as two separate performance obligations. The Group determines the total transaction price to be the service fees chargeable from the borrowers or the financial institution partners, which is the contracted price adjusted for variable consideration such as potential loan prepayment by the borrows that could reduce the total transaction price, which is estimated using the expected value approach based on historical data and current trends of prepayments of the borrowers. Then the transaction price is allocated to the loan facilitation services and post origination services using their relative standalone selling prices consistent with the guidance in Topic 606, similar to online lending information intermediary services revenue. For each type of service, the Group recognizes revenue when (or as) the entity satisfies the service/performance obligation by transferring the promised service to customers. Revenues from loan facilitation services are recognized at the time a loan is originated between the financial institution 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 origination services are recognized on a straight-line basis over the term of the underlying loans as the services are provided ratably on a monthly basis. Since April 2019, the Group has stopped charging service fees directly to the borrowers under its direct lending program. Instead, the Group started to charge service fees either directly to the institutional funding partners, or indirectly through third-party guarantee companies who provide guarantee services, or the insurance company who provided credit insurance to the institutional funding partners on their loans to the borrowers. The Group concluded this change did not alter the substance of the services it provided to borrowers and financial institution partners under the direct lending program, and therefore would not impact how revenue was recognized. In 2019, under a cooperation agreement, as amended (the “Cooperation Agreement”), the Group predominantly partnered with PICC Property and Casualty Company Limited Guangdong Branch (“PICC”) who provided the credit insurance service to institutional funding partners on the loan origination, PICC collected all of the loan facilitation service fees and remitted the Group’s portion of the service fees to the Group. The Group recorded an account receivable for the service fees confirmed and to be remitted by PICC. Other revenues Other revenues mainly include product sales revenues from online sales of goods, penalty fee for late payment, and other service revenues. The Group generates product sales revenues primarily through selling of merchandise via its online shopping platform, 9F One Mall (“online agent model”), and through selling of upscale products via third party platforms (“online direct sales model”). Under online agent model, customers can buy merchandise provided by third-party merchandise suppliers on our 9F One Mall. The Group does not control the merchandise, but rather is acting as an agent for the suppliers. Revenue is recognized for the net amount of consideration the Group is entitled to retain in exchange for the agent service. The Group commenced the operations of the online direct sales model in the first quarter of 2019 and terminated the operations of the online direct sales model in the third quarter of 2019. Under the online direct sales model, revenue is recognized on a gross basis as the Group controls the merchandise before it is transferred to the customers, which is indicated by (i) the Group is primarily responsible for fulfilling the promise to provide the specified upscale products to the customers; (ii) the Group bears inventory risk; and (iii) the Group has discretion in establishing price. Other revenues also include revenue of services such as insurance agency, securities brokerage, customer referral and government subsidy income. Cash incentives To expand market presence, the Group voluntarily provides cash incentives in the form of cash coupons to new and existing investors during its marketing activities. These coupons are not related to prior transactions, and can only be utilized in conjunction with subsequent lending activities. The cash incentives provided are accounted as a reduction of the transaction price according to ASC 606-10-32-25. Cash incentives paid to existing investors, cash incentives paid to new investors, and cash incentives recognized as a reduction of revenue for year ended December 31, 2018 was RMB23.9 million, RMB1.2 million, and RMB25.8 million, respectively. Cash incentives paid to existing investors, cash incentives paid to new investors, and cash incentives recognized as a reduction of revenue for year ended December 31, 2019 was RMB59.6 million, RMB0.8 million, and RMB57.6 million, respectively. Cash incentives paid to existing investors, cash incentives paid to new investors, and cash incentives recognized as a reduction of revenue for year ended December 31, 2020 was RMB61.7 million, RMB2.7 million, and RMB8.9 million, respectively. Value added taxes (“VAT”) The Group is subject to value added tax, or VAT, at a rate of 16% from May 1, 2018 to March 31, 2019 and 13% thereafter on sales of products, and at a rate of 6% on services rendered by the Group, less any deductible VAT the Group has already paid or borne, except for entities qualified as small-scale taxpayers at a VAT rate of 3% without any deduction. Since April 1, 2019, the Group has been subject to an additional 10% deductible VAT. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. VAT is reported as a deduction to revenue when incurred and amounted to RMB490,136, RMB611,786, and RMB136,501 for the years ended December 31, 2018, 2019 and 2020, respectively. The net VAT balance between input VAT and output VAT is recorded in the line item of accrued expenses and other liabilities on the face of balance sheet. Disaggregation of revenues The Group generates revenues primarily from loan facilitation and post-origination services provided to investors, borrowers and financial institution partners through its online lending information intermediary services and direct lending program. The Group also generates other revenues, such as penalty fees charged to borrowers for late payment, product sales revenues from online sales of goods, and other service revenues. The following table provides further disaggregation by types of revenues recognized in 2018, 2019 and 2020. Loan Post facilitation origination Other 2018 services services revenues Total RMB RMB RMB RMB Online lending platform revenue Online lending information intermediary services revenue Revolving loan products (One Card) 4,728,255 282,057 — 5,010,312 Non‑revolving loan products 186,679 85,218 — 271,897 Direct lending program revenue 45,737 164 — 45,901 Other revenue — — 228,372 228,372 Total 4,960,671 367,439 228,372 5,556,482 Loan Post facilitation origination Other 2019 services services revenues Total RMB RMB RMB RMB Online lending platform revenue Online lending information intermediary services revenue Revolving loan products (One Card) 1,698,133 269,718 — 1,967,851 Non‑revolving loan products 104,611 30,226 — 134,837 Direct lending program revenue 1,675,153 304,788 — 1,979,941 Other revenue — — 342,334 342,334 Total 3,477,897 604,732 342,334 4,424,963 Loan Post facilitation origination Other 2020 services services revenues Total RMB RMB RMB RMB Online lending platform revenue Online lending information intermediary services revenue Revolving loan products (One Card) 26,376 203,748 — 230,124 Non‑revolving loan products 84,485 202,097 — 286,582 Direct lending program revenue 66,286 453,257 — 519,543 Other revenue — — 219,756 219,756 Total 177,147 859,102 219,756 1,256,005 The Group manages its business through a comprehensive offering of financial products tailored to the needs of the investors and borrowers. These financial products are categorized by the Group as loan products, wealth management products and others. The following table illustrates the disaggregation of revenues by product offering in 2018, 2019 and 2020: December 31, December 31, December 31, 2018 2019 2020 RMB RMB RMB Loan product revenue 4,930,515 3,590,693 847,576 Wealth management product revenue 471,060 573,355 188,673 Others 154,907 260,915 219,756 Total 5,556,482 4,424,963 1,256,005 Loan products-In 2018, 2019 and 2020, loan products represented product offerings tailored to the needs of the borrowers. Loan product revenues in the above table represented the portion of the service fees that were charged to borrowers through the Group’s online lending information intermediary services, and charged from borrowers with whom the Group has stopped charging service fees since April 2019 or financial institution partners under direct lending program business. Wealth Management products-In 2018, 2019 and 2020, wealth management products represented product offerings tailored to the needs of the individual investors, including fixed income products and other wealth management products such as insurance and stock investment brokerage services, and fund investment products services. Fixed income products were offered to individual investors who desired to invest in loans facilitated through the Group’s online lending information intermediary services. Revenues from wealth management products in the above table were mainly derived from fixed income products and represented the portion of service fees that was charged to investors in the Group’s online lending information intermediary services. Revenues recognized on other wealth management products were immaterial for the periods presented. Deferred Revenue Deferred revenue consists of post origination service fees received or receivable from borrowers, investors and financial institution partners for which services have not yet been provided. Deferred revenues is recognized ratably as revenue when the post-origination services are delivered during the loan period. The balance of deferred revenue decreased from RMB788,906 as of December 31, 2019 to RMB98,668 as of December 31, 2020 due to the cessation of cooperation with PICC and our new investment programs. Revenue recognized during the years ended December 31, 2019 and 2020 that was included in the deferred revenue balance at the beginning of the year was RMB290,674 and RMB555,646, respectively. In December 2018 |
BUSINESS ACQUISITIONS
BUSINESS ACQUISITIONS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
BUSINESS ACQUISITIONS | ||
BUSINESS ACQUISITIONS | 3. BUSINESS ACQUISITIONS In 2019, the Group completed several business combinations to complement its existing businesses. Total cash consideration transferred (net of cash acquired) for these acquisitions amounted to RMB49,411, which was net of cash acquired of RMB12,577. For business acquisition where the Group held investments accounted for under the equity method, the Group’s existing equity interest in the entities were remeasured to a fair value of RMB35,040 with the excess over the carrying value recorded as gain recognized on remeasurement of previously held equity interest in acquiree of RMB16,272 on the consolidated statements of operations. Based on a valuation performed by the Group with the assistance of a third party valuation expert, the purchase price allocated to the fair value of assets acquired, liabilities assumed and non-controlling interest were RMB111,025, RMB10,712 and RMB15,862, respectively. The assets acquired from the acquisitions mainly include trade name of RMB6,400 and technology of RMB27,600 to be amortized over 10 years and 5 years, respectively. Goodwill recognized in these acquisitions was RMB64,954, which was primarily attributable to the synergies expected to be achieved from these acquisitions. Neither the results of operations since the acquisition dates nor the pro forma results of operations of the acquirees were presented because the effects of these business combinations, individually and in the aggregate, were not significant to the Group’s consolidated results of operations. | 3. BUSINESS ACQUISITIONS In 2019, the Group completed several business combinations to complement its existing businesses. Total cash consideration transferred (net of cash acquired) for these acquisitions amounted to RMB49,411, which was net of cash acquired of RMB12,577. For business acquisition where the Group held investments accounted for under the equity method, the Group’s existing equity interest in the entities were remeasured to a fair value of RMB35,040 with the excess over the carrying value recorded as gain recognized on remeasurement of previously held equity interest in acquiree of RMB16,272 on the consolidated statements of operations. Based on a valuation performed by the Group with the assistance of a third party valuation expert, the purchase price allocated to the fair value of assets acquired, liabilities assumed and non-controlling interest were RMB111,025, RMB10,712 and RMB15,862, respectively. The assets acquired from the acquisitions mainly include trade name of RMB6,400 and technology of RMB27,600 to be amortized over 10 years and 5 years , respectively. Goodwill recognized in these acquisitions was RMB64,954, which was primarily attributable to the synergies expected to be achieved from these acquisitions. Neither the results of operations since the acquisition dates nor the pro forma results of operations of the acquirees were presented because the effects of these business combinations, individually and in the aggregate, were not significant to the Group’s consolidated results of operations. |
LOAN RECEIVABLES, NET
LOAN RECEIVABLES, NET | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
LOAN RECEIVABLES, NET | ||
LOAN RECEIVABLES, NET | 4 . LOAN RECEIVABLES, NET December 31, June 30, 2020 2021 Loan receivables 596,747 258,596 Less: Allowance for doubtful accounts (320,944) (56,466) Less: Adpotion of new accounting standard in the last fiscal year (8,420) — Total 267,383 202,130 The Group entered into several loan agreements with certain third-party post loan service companies. As of June 30, 2021, the Group had RMB258.6 million loan receivable outstanding, of which, RMB170 million of loans were guaranteed by Zhongji Wealth Guarantee Co., Ltd., a third-party guarantor, with terms ranged from 11 months to 12 months and an interest rate of 6% per annum, RMB50.2 million of loans are unsecured and interest rate of 4% or 10%,with terms of 12 months. The remaining RMB34.4 million of loans are unsecured and interest free with a term of 21 months. As of November 5, 2021, RMB22,000 was repaid to the Group. As of June 30, 2021, the Group recorded RMB56.5 million allowance for uncollectable for other loan receivables, respectively. Interest-earning loan receivables are on non-accrual status if loans are past due for more than 90 days. As of December 31, 2020 and June 30,2021, RMB29,500 and RMB16,500 loan receivables were on non-accrual status. The following table sets forth the aging of loans as of December 31,2020and June 30,2021, respectively: 1 - 89 days 90 days or Total past past due more past due due Current Total loans December 31, 2020 — 29,500 29,500 567,247 596,747 June 30, 2021 — 16,500 16,500 242,096 258,596 | 4. LOAN RECEIVABLES, NET December 31, December 31, 2019 2020 Loan receivables 1,394,072 596,747 Less: Allowance for doubtful accounts (615,592) (320,944) Less: Adoption of new accounting standard — (8,420) Total 778,480 267,383 In April 2018, the Group entered into several loan agreements with Zhongguo Factoring (Shenzhen) Co., Ltd. (“Zhongguo Factoring”), a third-party borrower, with total loans amounting to RMB1,431.8 million. The balance of the loans to Zhongguo Factoring amounted to RMB541.8 million and nil as of December 31, 2019 and 2020, respectively. The loans bear interest rates ranging from 4.35% to 9% per annum. The terms ranged from 1 year to 2.5 years. On November 6, 2019, upon maturity of a loan of RMB427.5 million, the Group negotiated with Zhongguo Factoring and extended the maturity date of this loan to November 5, 2020. The Group determined that Zhongguo Factoring had encountered going concern issues due to their working capital deficiencies and poor operating results. As a result, the Group fully impaired the loan receivable due from Zhongguo Factoring during the year ended December 31, 2019. Allowance for loan losses recorded for these loan receivables is RMB541.8 million as of December 31, 2019. RMB7.4 million was repaid to the Group during the year ended December 31,2020, The Group reversed the allowance accordingly.The Group write off the left allowance during the year ended December 31,2020. Allowance for loan losses recorded for these loan receivables is nil as of December 31, 2020. The Group entered into several loan agreements with certain third-party post loan service companies. As of December 31, 2020, the Group had RMB596.7 million loan receivable outstanding, of which, RMB170 million of loans were guaranteed by Zhongji Wealth Guarantee Co., Ltd., a third-party guarantor, with terms ranged from 11 months to 12 months and an interest rate of 6% per annum, RMB66.2 million of loans are unsecured and interest rate of 4% or 10%,with terms of 12 months. The remaining RMB360.54 million of loans are unsecured and interest free with a term of 21 months. As of May 13, 2021, RMB10.8 million was repaid to the Group. As of December 31, 2019 and 2020, the Group recorded RMB73.8 million and RMB320.9 allowance for uncollectable for other loan receivables, respectively. Interest-earning loan receivables are on non-accrual status if loans are past due for more than 90 days. As of December 31, 2019 and 2020, RMB21,338 and RMB29,500 loan receivables were on non-accrual status. The following table sets forth the aging of loans as of December 31, 2019 and 2020, respectively: 1 - 89 days 90 days or Total past past due more past due due Current Total loans December 31, 2019 52,339 21,338 73,677 1,320,395 1,394,072 December 31, 2020 — 29,500 29,500 567,247 596,747 |
PREPAID EXPENSE AND OTHER ASSET
PREPAID EXPENSE AND OTHER ASSETS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
PREPAID EXPENSE AND OTHER ASSETS | ||
PREPAID EXPENSE AND OTHER ASSETS | 5 . PREPAID EXPENSE AND OTHER ASSETS December 31, June 30, 2020 2021 Deposits(i) 91,258 81,068 Advances to suppliers 10,607 124,365 Prepaid taxes 338,450 320,408 Prepaid service fee 45,201 11,015 Prepaid investment (ii) 270,996 304,996 Others 37,046 40,313 Less: Adoption of new accounting standard (466) (394) Total 793,092 881,771 (i) Deposits mainly include rent deposits and deposits to third-party vendors. (ii) Prepaid investment mainly composed of the prepayment to acquire equity interests in Shanghai Xinzhen Financial Information Consulting Co., Ltd, Jiangxi Financial Development Group Co. Ltd and Guobing Sports Development (Beijing) Co., LTD as of June 30,2021. | 5. December 31, December 31, 2019 2020 Deposits (i) 100,278 91,258 Advances to suppliers 37,118 10,607 Prepaid taxes 294,487 338,450 Prepaid service fee 17,268 45,201 Prepaid investment (ii) 632,096 270,996 Others 56,540 37,046 Less: Adoption of new accounting standard — (466) Total 1,137,787 793,092 (i) Deposits mainly include rent deposits and deposits to third-party vendors. (ii) Prepaid investment mainly composed of the prepayment to acquire equity interests in Hubei Consumer Finance Company, Shanghai Xinzhen Financial Information Consulting Co., Ltd and Jiangxi Financial Development Group Co. Ltd as of December 31, 2019. The Group obtained the approval of changes of control from Hubei Consumer Finance Company and local regulatory authorities during the year ended December 31,2020. As of December 31, 2020,the prepaid investment to Shanghai Xinzhen Financial Information Consulting Co., Ltd and Jiangxi Financial Development Group Co. Ltd are still subject to the approval of changes of control from the investees or local regulatory authorities . |
FAIR VALUE OF ASSETS AND LIABIL
FAIR VALUE OF ASSETS AND LIABILITIES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
FAIR VALUE OF ASSETS AND LIABILITIES | ||
FAIR VALUE OF ASSETS AND LIABILITIES | 6. FAIR VALUE OF ASSETS AND LIABILITIES For a description of the fair value hierarchy and the Group’s fair value methodologies, see “Note 2—Summary of Significant Accounting Policies.” Financial instruments recorded at fair value Assets and Liabilities Recorded at Fair Value The Group does not have assets or liabilities measured at fair value on a non-recurring basis. The following tables present the fair value hierarchy for assets and liabilities measured at fair value on a recurring basis subsequent to initial recognition: Balance at June 30,2021 Level 1 Level 2 Level 3 Fair Value RMB RMB RMB RMB Assets Investment in marketable securities 206,272 — — — Total Assets 206,272 — — — Financial Instruments Not Recorded at Fair Value Financial instruments, including cash and cash equivalents, restricted cash, term deposits, accounts receivable, other receivables, loan receivables, prepaid expenses and other assets, accrued expenses and other liabilities and amounts due from/to related parties are not recorded at fair value. The fair values of these financial instruments, other than loan receivables, are approximate their carrying value reported in the consolidated balance sheets due to the short term nature of these assets and liabilities. The fair value of loan receivables is disclosed in Note 4. | 5. FAIR VALUE OF ASSETS AND LIABILITIES For a description of the fair value hierarchy and the Group’s fair value methodologies, see “Note 2 - Summary of Significant Accounting Policies.” Financial instruments recorded at fair value Assets and Liabilities Recorded at Fair Value The Group does not have assets or liabilities measured at fair value on a non-recurring basis. The following tables present the fair value hierarchy for assets and liabilities measured at fair value on a recurring basis subsequent to initial recognition: Balance at December 31, 2019 Level 1 Level 2 Level 3 Fair Value RMB RMB RMB RMB Assets Available‑for‑sale investment — — 10,443 10,443 Total Assets — — 10,443 10,443 The Group did not transfer any assets or liabilities in or out of level 3 during the years ended December 31, 2019 and 2020. The Group purchased a convertible note receivable from a third-party private company amounting to RMB10.4 million which is classified as available for sale investment in the fourth quarter of 2019, of which the fair value approximates its purchase price. During the year ended December 31, 2020, the amount was repaid in full. There were no additional investments classified as available-for-for sale during the year ended December 31, 2020. Financial Instruments Not Recorded at Fair Value Financial instruments, including cash and cash equivalents, restricted cash, term deposits, accounts receivable, other receivables, loan receivables, prepaid expenses and other assets, accrued expenses and other liabilities and amounts due from/to related parties are not recorded at fair value. The fair values of these financial instruments, other than loan receivables, are approximate their carrying value reported in the consolidated balance sheets due to the short term nature of these assets and liabilities. The fair value of loan receivables is disclosed in Note 4. |
LONG-TERM INVESTMENTS
LONG-TERM INVESTMENTS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
LONG-TERM INVESTMENTS | ||
LONG-TERM INVESTMENTS | 7 . LONG-TERM INVESTMENTS Equity securities without readily Equity Held-to- determinable fair method maturity value investments investment Total RMB RMB RMB RMB Balance at December 31, 2020 647,702 57,491 33,079 738,272 Additions 34,566 — — 34,566 Disposal (23,887) — — (23,887) Share of (loss) in equity method investments — (7,629) — (7,629) Impairment charges (2,056) — — (2,056) Impact of exchange rate 470 (740) — (270) Balance at June 30, 2021 656,795 49,122 33,079 738,996 Equity securities without readily determinable fair value The following table sets forth the Group’s equity securities without readily determinable fair value: December 31, June 30, 2020 2021 RMB RMB Shanghai Xinzheng Financial Information Consulting Co., Ltd. (i) 129,786 129,786 EZhou Rural Commercial Bank 40,000 40,000 BitPay, Inc. (Delaware)(ii) 26,100 24,783 GoopalGroup (iii) 17,748 17,562 Hubei Consumption Financial Company (“Hubei Consumption”) (iv) 361,100 361,100 Zhuhai Yuanxin investment partnership (limited partnership(“ZhuhaiYuanxin”)(v) 15,000 15,000 Ningbo Weilie investment management partnership (limited partnership)(“NingboWeilie”)(vi) 20,000 20,000 PT.TIRTA FinaNCE(INA) (vii) — 19,467 Others 37,968 29,097 Total 647,702 656,795 (i) In September 2018, the Group purchased a 15% equity interest of Shanghai Xinzheng Financial Information Consulting Co., Ltd. for a total consideration of RMB129,786. The Group held a 15% equity interest as of December 31,2020 and June 30,2021 respectively. No impairment existed at December 31,2020 and June 30, 2021 and there were no observable price changes for six months ended June 30,2021. (ii) In March 2018, the Group acquired a 1.11% of equity interest in BitPay, Inc. (Delaware) for a cash consideration of US$4,000. The Group held 1.11% equity interest as of December 31, 2020 and June 30,2021. No impairment existed at December 31, 2020 and June 30,2021, and there were no observable price changes for six months ended June 30,2021. (iii) In January 2018, the Group purchased a 1.94% equity interest in Goopal Group for a cash consideration of US$2,720. The Group held 1.94% equity interest as of December 31, 2020 and June 30,2021. No impairment existed at December 31, 2020 and June 30,2021, and there were no observable price changes for six months ended June 30,2021. (iv) In December 2019, the Group paid RMB361,100 in cash in exchange of 24.47% (v) In November 2020, the Group paid RMB 15,000 in cash in exchange of 33.33% equity interest in Zhuhai Yuanxin. No impairment existed at December 31, 2020 and June 30,2021, and there were no observable price changes for six months ended June 30,2021. (vi) In December 2017, the Group purchased a 8.50% equity interest in Ningbo Weilie for a total cash consideration of RMB 20,000,000.No impairment existed at December 31, 2020 and June 30,2021, and there were no observable price changes for six months ended June 30,2021. (vii) In June 2021, the Group account for a 40% equity interest in PT.TIRTA FinaNCE(INA),. No impairment existed at June 30,2021, and there were no observable price changes for six months ended June 30,2021. Equity method investments December 31, June 30, 2020 2021 RMB RMB CSJ Golden Bull (Beijing) Investment Consulting Co., Ltd (“CSJ Golden Bull”)(i) 22,135 21,143 Others 35,356 27,979 Total 57,491 49,122 (i) In September 2017, the Group purchased an equity interest of CSJ Golden Bull for a total cash consideration of RMB40,900. The Group held a 25% equity interest as of December 31,2020 and June 30,2021. Held-to-maturity investments In 2019, the Group purchased a principal-guaranteed debt investment in the form of a beneficiary interest in a trust for a cash consideration of RMB15,200, which has stated maturity within one year.The Group extend this investment for one more year in 2020. In 2020, the Group purchased another principal-guaranteed debt investment in the form of a beneficiary interest in a trust for a cash consideration of RMB19,100, which has stated maturity within one year. As of December 31,2020,the Group recorded an impairment charge of RMB1,221 for its held-to-maturity investments. There’s no impairment loss during the six months ended June 30,2021. | 6. LONG-TERM INVESTMENTS Equity securities without readily Equity Available for Held-to- determinable fair method sales maturity value investments investment investment Total RMB RMB RMB RMB RMB Balance at December 31, 2018 699,747 219,935 34,476 — 954,158 Additions 5,000 161,951 10,533 15,200 192,684 Disposal (8,750) (104,149) (35,739) — (148,638) Share of (loss) in equity method investments — (29,455) — — (29,455) Impairment charges (154,898) (22,830) — — (177,728) Unrealized losses recorded in accumulated other comprehensive loss — — (99) — (99) Impact of exchange rate 2,079 139 1,272 — 3,490 Gain recognized on remeasurement of previously held equity interest in acquire (Note 3) — 16,272 — — 16,272 Business combinations achieved in stages (Note 3) — (35,040) — — (35,040) Balance at December 31, 2019 543,178 206,823 10,443 15,200 775,644 Additions 396,549 53,929 19,100 469,578 Disposal (5,000) — (10,443) — (15,443) Share of (loss) in equity method investments — (21,317) — — (21,317) Impairment charges (282,076) (179,193) — (1,221) (462,490) Impact of exchange rate (4,949) (2,751) — — (7,700) Balance at December 31, 2020 647,702 57,491 — 33,079 738,272 Equity securities without readily determinable fair value The following table sets forth the Group’s equity securities without readily determinable fair value: December 31, December 31, 2019 2020 RMB RMB Nanjing Lefang Intelligent Life Technology Development Co., Ltd (“Nanjing Lefang”) (i) 181,368 — Shanghai Xinzheng financial information consulting Co., Ltd. (ii) 129,786 129,786 Abakus Ltd. (Cayman) (“Abskus”) (iii) 98,709 — EZhou Rural Commercial Bank 40,000 40,000 BitPay, Inc. (Delaware) (iv) 27,847 26,100 GoopalGroup (v) 18,936 17,748 Hubei Consumption Financial Company (“Hubei Consumption”) (vi) — 361,100 Zhuhai Yuanxin investment partnership (limited partnership(“ZhuhaiYuanxin") (vii) — 15,000 Ningbo Weilie investment management partnership(limited partnership) (i) In March 2018, the Group purchase an additional 21.28% equity interest of Nanjing Lefang, formerly known as Nanjing Banghang Information Consulting Limited, for a cash consideration of RMB 250,000 . The Group held a 30.53% equity interest as of December 31, 2019 and 2020. The investments contain various right, protection, and a liquidation preference. The investment is accounted for under the equity securities without readily determinable fair value of accounting as it is not considered to be in-substance common stock. There were no observable price changes for the years ended December 31, 2018, 2019, and 2020. Due to continued decrease of operating result of Nanjing Lefang, the Group conducted an impairment assessment and recorded an impairment loss of RMB 99,868 and RMB 181,368 for the years ended December 31, 2019 and 2020, respectively. In determining the fair value of the investment in Nanjing Lefang, the Group applied the market approach using unobservable inputs, such as a lack of marketability discount and probability weighting for each scenario including liquidation and an initial public offering. (ii) In September 2018, the Group purchased a 15% equity interest of Shanghai Xinzheng Financial Information Consulting Co., Ltd. for a total consideration of RMB 129,786 . The Group held a 15% equity interest as of December 31, 2019 and 2020. No impairment existed at December 31, 2019 and 2020 and there were no observable price changes for the years ended December 31, 2018, 2019 and 2020. (iii) In December 2014, the Group subscribed to 3,579,000 ordinary shares of Abakus (formerly known as Wecash Holdings Ltd.) for a cash consideration of RMB 6,500 . The Group held 19.30% , 18.97%, and 18.97 % equity interest as of December 31, 2018, 2019 and 2020, respectively. The Group recognized its share of profit in Abakus of RMB 2,261 for the year ended December 31, 2018. In February 2018, due to issuance of equity interests to new shareholders, the Group’s equity interest in Abakus was diluted from 22.17% to 19.86% and lost its ability to exercise significance influence. The investment in Abakus was accounted for under equity method prior to the dilution in the Group’s equity interest. The investment is accounted for under the equity securities without readily determinable fair value of accounting upon the cessation of the Group’s significant influence in February 2018. In July 2019, Abakus agrees to repurchase 75,796 ordinary shares held by the Group for a cash consideration of RMB 14,807 . A disposal gain of RMB 6,057 was recognized, which is the difference between the consideration of RMB 14,807 and the carrying value in Abakus, amounted to RMB 8,750 . Due to shut down of Abskus, the Group fully imaparied the investment for the years ended December 31 2020. (iv) In March 2018, the Group acquired a 1.11% of equity interest in BitPay, Inc. (Delaware) for a cash consideration of US$4,000. The Group held 1.11% equity interest as of December 31, 2019, and 2020. No impairment existed at December 31, 2018, 2019, and 2020, and there were no observable price changes for the years ended December 31, 2018, 2019, and 2020. (v) In January 2018, the Group purchased a 1.94% equity interest in Goopal Group for a cash consideration of US$2,720. The Group held 1.94% equity interest as of December 31, 2019, and 2020. No impairment existed at December 31, 2018, 2019, and 2020, and there were no observable price changes for the years ended December 31, 2018, 2019, and 2020. (vi) In December 2019, the Group paid RMB361,100 in cash in exchange of 24.47% equity interest in Hubei Consumer. No impairment existed at December 31, 2020, and there were no observable price changes for the year ended December 31, 2020. (vii) In November 2020, the Group paid RMB 15,000 in cash in exchange of 33.33% equity interest in Zhuhai Yuanxin. No impairment existed at December 31, 2020, and there were no observable price changes for the year ended December 31, 2020. (viii) In December 2017, the Group purchased a 8.50 % equity interest in Ningbo Weilie for a total cash consideration of RMB 20,000,000 . No impairment existed at December 31, 2020, and there were no observable price changes for the year ended December 31, 2020. (ix) Other investments represent several insignificant investments as of December 31, 2018, 2019 and 2020. Impairment losses of RMB 23,140 , RMB 20,724 and nil were reported in consolidated statements of operations for the years ended December 31, 2018, 2019 and 2020 related to Shanghai Wujiu Information Technology Company Limited (“Shanghai Wujiu”), Ofo International Limited (“OFO”), and Orange Island Technology Inc.(“Orange”). During the year ended in December 31, 2018, the Group determined that Shanghai Wujiu and OFO had encountered going concern issues due to their working capital deficiencies and poor operating results. As a result, the Group fully impaired the investments during the year ended December 31, 2018. During the year ended in December 31, 2019, the Group determined that Orange had encountered going concern issues and was in the process of liquidation. Thus, the Group fully impaired the investment during the year ended December 31, 2019. Equity method investments December 31, December 31, 2019 2020 RMB RMB CSJ Golden Bull (Beijing) Investment Consulting Co., Ltd (“CSJ Golden Bull”) (i) 26,675 22,135 Suzhou Qingyu Technology Limited (“Suzhou Qingyu”) (ii) 19,092 — Cornerstone Unicorn No.3 Private Equity Investment Fund (iii) 132,859 — Others 28,197 35,356 Total 206,823 57,491 (i) In September 2017, the Group purchased an equity interest of CSJ Golden Bull for a total cash consideration of RMB 40,900 . The Group held a 25% equity interest as of December 31, 2019 and 2020, and recognized its share of loss of RMB 6,181 , RMB 6,764 , and RMB 4,540 for the years ended December 31, 2018, 2019, and 2020, respectively. (ii) In July 2017, the Group purchased a 20% equity interest in Suzhou Qingyu for a total consideration of RMB 10,000 . The Group’s shareholding percentage decreased from 20% to 9.88% due to the issuance of equity interests to new shareholder. In June 2018, the Group purchased 3.15% equity interests of Suzhou Qingyu for a total consideration of RMB 20,000 . The Group held a 13.03% equity interest as of December 31, 2019 and have ability to exercise significance influence. The Group recognized its share of loss of RMB 5,083 , RMB 4,615 and RMB 4,648 for the years ended December 31, 2018, 2019 and 2020. Suzhou Qingyu had encountered going concern issues. Thus, the Group fully impaired the investment during the year ended December 31, 2020. (iii) In October 2019, the Group purchased 141,460,000 fund shares of Cornerstone Unicorn No.3 Private Equity Investment Fund for a total consideration of RMB 141,460 . The total shares of the fund is 152,460,000 and the fund manager shall make investment decisions independently. The fund manager can be replaced with the consent of all investors. The Group held 92% share interest as of December 31, 2019 and has ability to exercise significance influence. In December 2020,Cornerstone Unicorn and Cornerstone Management had encountered going concern issues. Thus, the Group fully impaired the investment during the year ended December 31, 2020. Held-to-maturity investments During the year ended December 31, 2019, the Group purchased a principal-guaranteed debt investment in the form of a beneficiary interest in a trust for a cash consideration of RMB15,200, which has stated maturity within one year. No impairment loss existed at December 31, 2019. During the year ended December 31, 2020, the Group extend this investment for one more year. During the year ended December 31, 2020, the Group purchased a principal-guaranteed debt investment in the form of a beneficiary interest in a trust for a cash consideration of RMB19,100, which has stated maturity within one year. During the year ended December 31, 2020, the Group recorded an impairment charge of RMB1,221 for its held-to-maturity investments due to the adoption of new accounting standards. |
PROPERTY, EQUIPMENT AND SOFTWAR
PROPERTY, EQUIPMENT AND SOFTWARE, NET | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
PROPERTY, EQUIPMENT AND SOFTWARE, NET | ||
PROPERTY, EQUIPMENT AND SOFTWARE, NET | 8. PROPERTY, EQUIPMENT AND SOFTWARE, NET December 31, June 30, 2020 2021 RMB RMB Office building 19,470 46,376 Computer and electronic equipment 57,856 59,008 Furniture and office equipment 10,065 9,455 Leasehold improvements 30,069 2,476 Software 46,008 51,435 Total property and equipment 163,468 168,750 Accumulated depreciation and amortization (79,147) (93,092) Impairment loss for technology of discontinued online lending information services (20,925) (23,235) Property, equipment, net 63,396 52,423 Depreciation and amortization expense on property, equipment and software for the six months ended June 30, 2020 and 2021 was RMB 10,032 and RMB 13,945, respectively. | 8. PROPERTY, EQUIPMENT AND SOFTWARE, NET December 31, December 31, 2019 2020 RMB RMB Office building 19,470 19,470 Computer and electronic equipment 62,748 57,856 Furniture and office equipment 14,039 10,065 Leasehold improvements 33,050 30,069 Software 42,840 46,008 Total property and equipment 172,147 163,468 Accumulated depreciation and amortization (61,771) (79,147) Impairment loss for technology of discontinued online lending information services — (20,925) Property, equipment, net 110,376 63,396 Depreciation and amortization expense on property, equipment and software for the years ended December 31, 2018, 2019 and 2020 was RMB16,123, RMB28,071 and RMB14,500 respectively. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
INTANGIBLE ASSETS, NET | ||
INTANGIBLE ASSETS, NET | 9 . INTANGIBLE ASSETS, NET December 31, June 30, 2020 2021 RMB RMB Brokerage licenses 51,880 51,553 Trade Name 6,400 6,400 Technology 27,600 27,600 Total Intangible assets 85,880 85,553 Accumulated amortization (24,247) (27,988) Impairment loss of technology with discontinued online lending information intermediaries (17,220) (17,220) Intangible assets, net 44,413 40,345 The amortization periods range from 2.6 years to 20 years. Amortization expense on intangible assets for the six months ended June 30,2020 and 2021were RMB5,693 and RMB3,741, respectively. As of June 30, 2021, the Group expects to record amortization expenses related to intangible assets RMB3,465, RMB5,557, RMB5,557, RMB3,954 and RMB3,379 for the next five years, respectively, and RMB 18,433 thereafter. | 9. INTANGIBLE ASSETS, NET December 31, December 31, 2019 2020 RMB RMB Brokerage licenses 54,006 51,880 Trade Name 6,400 6,400 Technology 27,600 27,600 Total Intangible assets 88,006 85,880 Accumulated amortization (14,530) (24,247) Impairment loss of technology with discontinued online lending information intermediaries — (17,220) Intangible assets, net 73,476 44,413 The amortization periods range from 2.6 years to 20 years. Amortization expense on intangible assets for the years ended December 31, 2018, 2019 and 2020 were RMB2,640, RMB9,398, and RMB9,717 respectively. As of December 31, 2020, the Group expects to record amortization expenses related to intangible assets RMB7,281, RMB5,599, RMB5,599, RMB3,971 and RMB 3,397 for the next five years, respectively, and RMB18,568 thereafter. |
ACCRUED EXPENSES AND OTHER LIAB
ACCRUED EXPENSES AND OTHER LIABILITIES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
ACCRUED EXPENSES AND OTHER LIABILITIES | ||
ACCRUED EXPENSES AND OTHER LIABILITIES | 10. ACCRUED EXPENSES AND OTHER LIABILITIES December 31, June 30, 2020 2021 RMB Accrued advertising and marketing fee 105,638 98,888 Payable related to services fee and others 152,396 166,154 Amounts due to customers for the segregated bank balances held on their behalf 405,719 474,969 Deposit 2,913 2,486 Value added tax and surcharges 16,494 6,590 Others 43,526 37,126 Total accrued expenses and other current liabilities 726,686 786,213 | 10. ACCRUED EXPENSES AND OTHER LIABILITIES December 31, December 31, 2019 2020 RMB RMB Accrued advertising and marketing fee 715,218 105,638 Payable related to services fee and others 248,816 152,396 Amounts due to customers for the segregated bank balances held on their behalf 125,437 405,719 Deposit 15,995 2,913 Value added tax and surcharges 42,699 16,494 Others 80,945 43,526 Total accrued expenses and other current liabilities 1,229,110 726,686 |
RELATED PARTY BALANCES AND TRAN
RELATED PARTY BALANCES AND TRANSACTIONS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
RELATED PARTY BALANCES AND TRANSACTIONS | ||
RELATED PARTY BALANCES AND TRANSACTIONS | 11. RELATED PARTY BALANCES AND TRANSACTIONS Below summarizes the major related parties and their relationships with the Group, and the nature of their services provided to/by the Group: Name of related parties Relationship with the Group Major transaction with the Group Beijing Jiufu Weiban Technology Limited (“9F Weiban”) Equity method investee (until January 2019) Consulting services and related party loans Beijing WeCash Qiyi Technology Limited (“WeCash Qiyi”) Equity method investee (until February 2018) Borrower acquisition and referral services Huoerguosi Wukong Digital Technology Limited (“Huoerguosi”) Entity controlled by Sun, Lei (until November 2018) Advertising services WeCash Xiangshan Information Technology Limited (“WeCash Xiangshan”) Subsidiary of equity method investee Credit inquiry services Shenzhen Boya Equity method investee (until May 2019) Borrower acquisition and referral services Kashi Boya Chengxin Internet Technology Limited (“Kashi Boya”) Subsidiary of equity method investee (until May 2019) Borrower acquisition and referral services Shenzhen Lingxian Equity method investee (until December 2019) Prepayment for merchandise Shanghai Jiutai Financial Information Services Limited (“Shanghai Jiutai”) Entity controlled by Liu, Lei Related party loan CSJ Golden Bull Equity method investee Investors acquisition, referral services, and related party loan Beijing Shunwei Wealth Technology Limited (“Beijing Shunwei”) Equity method investee (until June 2019) Borrower acquisition and referral services Beijing Jiujia Wealth Management Limited (“Beijing Jiujia”) Equity method investee (until January 2018) Investors acquisition and referral services and related party loan Yoquant Equity method investee (until January 2019) Consulting services Zhejiang Lingchuang Food Limited Subsidiary of equity method investee (until December 2019) Deposit Qu, Jiachun Principal shareholder of the Group Related party loan Ren, Yifan Director of the Group Related party loan Name of related parties Relationship with the Group Major transaction with the Group Liu, Lei President Related party loan Zhuhai Hengqin Flash Cloud Payment Information Technolgy Limited (“Zhuhai Hengqin Payment”) Entity controlled by Sun, Lei Payment processing service Huoerguosi Flash Cloud Payment Information Technology Limited (“Huoerguosi Payment”) Entity controlled by Sun, Lei Payment processing service Nanjing Lefang Investee with significant influence Borrower acquisition and referral services purchased by the Group, consulting service provided to Nanjing Lefang by the Group, and related party loan Shanghai Qiuzhi Information Technology Limited (“Shanghai Qiuzhi”) Equity method investee (from May 2019) Borrower acquisition and referral services Beijing Jiuzao Technology Limited(“Beijing Jiuzao”) Entity controlled by Sun, Lei (from December 2019) Borrower acquisition and referral services Hangzhou Shuyun Gongjin Technology Limited (“Hangzhou Shuyun”) Entity controlled by Sun, Lei Credit inquiry services Chen, Lixing Vice President Related party loan Nine F Capital Limited (“Nine F”) Entity owned by Sun, Lei Related party loan Lin, Yanjun Chief Financial Officer of the Group Related party loan Sun, Lei Chief Executive Officer of the Group Related party loan During the six months ended June 30, 2021, nil service were provided by or to the related parties. Details of related party balances as of December 31, 2020 and June 30,2021 are as follows: (1) Amounts due to related parties December 31, June 30, 2020 2021 RMB RMB Zhuhai Hengqin Payment 4,731 4,731 Nanjing Lefang 18,834 18,834 Hangzhou Shuyun 18 18 Beijing Jiuzao 182 — Niche Global Fintech Corporation Limited 1,524 7 Total 25,289 23,590 | 11. RELATED PARTY BALANCES AND TRANSACTIONS The Group accounts for related party transactions based on various services agreements. Below summarizes the major related parties and their relationships with the Group, and the nature of their services provided to/by the Group: Name of related parties Relationship with the Group Major transaction with the Group Beijing Jiufu Weiban Technology Limited (“9F Weiban”) Equity method investee (until January 2019) Consulting services and related party loans Beijing WeCash Qiyi Technology Limited (“WeCash Qiyi”) Equity method investee (until February 2018) Borrower acquisition and referral services Huoerguosi Wukong Digital Technology Limited (“Huoerguosi”) Entity controlled by Sun, Lei (until November 2018) Advertising services WeCash Xiangshan Information Technology Limited (“WeCash Xiangshan”) Subsidiary of equity method investee Credit inquiry services Shenzhen Boya Equity method investee (until May 2019) Borrower acquisition and referral services Kashi Boya Chengxin Internet Technology Limited (“Kashi Boya”) Subsidiary of equity method investee (until May 2019) Borrower acquisition and referral services Shenzhen Lingxian Equity method investee (until December 2019) Prepayment for merchandise Shanghai Jiutai Financial Information Services Limited (“Shanghai Jiutai”) Entity controlled by Liu, Lei Related party loan CSJ Golden Bull Equity method investee Investors acquisition, referral services, and related party loan Beijing Shunwei Wealth Technology Limited (“Beijing Shunwei”) Equity method investee (until June 2019) Borrower acquisition and referral services Beijing Jiujia Wealth Management Limited (“Beijing Jiujia”) Equity method investee (until January 2018) Investors acquisition and referral services and related party loan Yoquant Equity method investee (until January 2019) Consulting services Zhejiang Lingchuang Food Limited Subsidiary of equity method investee (until December 2019) Deposit Qu, Jiachun Principal shareholder of the Group Related party loan Ren, Yifan Director of the Group Related party loan Liu, Lei President Related party loan Zhuhai Hengqin Flash Cloud Payment Information Technolgy Limited (“Zhuhai Hengqin Payment”) Entity controlled by Sun, Lei Payment processing service Huoerguosi Flash Cloud Payment Information Technology Limited (“Huoerguosi Payment”) Entity controlled by Sun, Lei Payment processing service Nanjing Lefang Investee with significant influence Borrower acquisition and referral services purchased by the Group, consulting service provided to Nanjing Lefang by the Group, and related party loan Shanghai Qiuzhi Information Technology Limited (“Shanghai Qiuzhi”) Equity method investee (from May 2019) Borrower acquisition and referral services Beijing Jiuzao Technology Limited(“Beijing Jiuzao”) Entity controlled by Sun, Lei (from December 2019) Borrower acquisition and referral services Hangzhou Shuyun Gongjin Technology Limited (“Hangzhou Shuyun”) Entity controlled by Sun, Lei Credit inquiry services Chen, Lixing Vice President Related party loan Nine F Capital Limited (“Nine F”) Entity owned by Sun, Lei Related party loan Lin, Yanjun Chief Financial Officer of the Group Related party loan Sun, Lei Chief Executive Officer of the Group Related party loan Details of related party balances and transactions as of and for the years ended December 31, 2018, 2019 and 2020 are as follows: (1) Services provided by related parties Year ended Year ended Year ended December 31, December 31, December 31, 2018 2019 2020 RMB RMB RMB Investors and borrower acquisition and referral services: Beijing Jiujia 9,965 — — Beijing Shunwei 5,133 1,221 — Shenzhen Boya 9,781 4,696 — Beijing Jiuzao — 7,257 852 Nanjing Lefang 12,890 29,476 — Shanghai Qiuzhi — 120 49 Subtotal 37,769 42,770 901 Credit inquiry services: WeCash Xiangshan 427 — — Hangzhou Shuyun — 5,925 358 Subtotal 427 5,925 358 Payment processing service: Zhuhai Hengqin Payment 17,808 9,175 — Huoerguosi Payment 20,504 — — Subtotal 38,312 9,175 — Others 261 20 — Total 76,769 57,890 1,259 (2) Services provided to related parties Year ended Year ended Year ended December 31, December 31, December 31, 2018 2019 2020 RMB RMB RMB Beijing Shunwei 3,941 — — Nanjing Lefang 26,386 1,994 — Shanghai Qiuzhi — 99 — Shenzhen Boya — 6 — Kashi Boya 4,495 — — Others 179 — — Total 35,001 2,099 — (3) Amounts due from related parties December 31, December 31, 2019 2020 RMB RMB Nine F (i) — — Beijing Shunwei — — 9F Weiban — — Lin, Yanjun — — Chen, Lixing — — Nanjing Lefang 50,000 — Shenzhen Lingxian — — Sun Lei — — Total 50,000 — (i) On April 20, 2018, the Company extended a loan to Nine F of US $20 million with term of 3 years and an interest rate at the US dollar deposit rate for the same period as published by Bank of China. The purpose of the loan is to finance the purchase by Lei Sun of the ordinary shares of 9F Inc. from Yifan Ren, one of the Founders of the Company. The loan was fully repaid in August 2019. (4) Amounts due to related parties December 31, December 31, 2019 2020 RMB RMB Zhuhai Hengqin Payment 3,125 4,731 Huoerguosi Payment — — Qu, Jiachun — — Ren, Yifan — — Zhejiang Lingchuang Food Limited — — Nanjing Lefang 18,474 18,834 Beijing Shunwei — — Shenzhen Boya — — Hangzhou Shuyun 883 18 Beijing Jiuzao 7,300 182 Shanghai Qiuzhi 120 — Niche Global Fintech Corporation Limited — 1,524 Total 29,902 25,289 |
INCOME TAXES
INCOME TAXES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
INCOME TAXES | ||
INCOME TAXES | 12. INCOME TAXES 9F Inc. is a company incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, it is not subject to tax on either income or capital gain. According to the HK regulations, HK entities are subject to a two-tiered income tax rate for taxable income earned in Hong Kong with effect from April 1, 2018. The first HK$2 million of profits earned by HK entity will be taxed at 8.25%, while the remaining profits will continue to be taxed at the existing 16.5% tax rate. In addition, to avoid abuse of the two-tiered tax regime, each group of connected entities can nominate only one entity to benefit from the two-tiered tax rate. Under the PRC Enterprise Income Tax Law (the “EIT Law”), the Group’s subsidiaries domiciled in the PRC are subject to 25% statutory rate unless they are qualified for preferential income tax rate status in accordance with the EIT Law. Certain of the Group’s PRC subsidiaries and VIEs enjoy a preferential income tax rate of 15% or 20% under the EIT Law. A “high and new technology enterprise” is entitled to a favorable income tax rate of 15% and such qualification is reassessed by relevant governmental authorities every three years. In 2018, Yisi Hudong(Beijing)Technology Co.,Ltd. (“Yisi Hudong”), a subsidiary of Zhuhai Jiufu Xiaojin, was qualified as a “high and new technology enterprise” and thus enjoyed a preferential income tax rate of 15% for 2021. They would enjoy a preferential income tax rate of 15% for 2020, provided they continue to meet the standards for “high and new technology enterprise” during 2020. Jiufu Weiban, a subsidiary of Xinjiang Shuke, was qualified as a “high and new technology enterprise” and thus enjoyed a preferential income tax rate of 15%. They would enjoy a preferential income tax rate of 15% for 2021, provided they continue to meet the standards for “high and new technology enterprise” during 2020. In addition, Zhuhai Hengqin Jiufu Technology Co., Ltd. (“Zhuhai Hengqin”) has been recognized as an enterprise of encouraged industries in the Hengqin New Area of Guangdong Province and enjoyed a preferential income tax rate of 15% for 2021. Zhuhai Jiufu Xiaojin Technology Co., Ltd. (“Zhuhai Xiaojin”) has been recognized as an enterprise of encouraged industries in the Hengqin New Area of Guangdong Province and enjoyed a preferential income tax rate of 15% for 2021. Xizang Jiufu Dingdang Information Technology Co., Ltd. (“Jiufu Dingdang”) has been recognized as encouraged industries in the Tibet autonomous region and enjoyed a preferential income tax rate of 15% for 2021, the income tax shared by Tibet autonomous region was temporarily exempted. Xinjiang Teyi Shuke Information Technology Co., Ltd. (“Xinjiang Shuke”, formerly known as Xinjiang Jiufu Onecard Information Technology Co., Ltd.) has been recognized as encouraged industries in the Xinjiang Kashgar Special Economic Development Area and enjoyed a five-years exemption from enterprise income tax from 2017 to 2021. Beijing Baibai Technology Co., Ltd, Beijing Juhuixuan Technology Co., Ltd, Shenzhen Jiufu Xinfu Commercial Factoring Co., Ltd, Jiuxing insurance brokerage Co., Ltd, Beijing Jiubao Technology Co., Ltd, Zhuhai Jiuxin Asset Management Co., Ltd, and Qianhai Jiufu network technology (Shenzhen) Co., Ltd are qualified as “small enterprises with low profits” and thus enjoyed a preferential income tax rate of 20% for 2021. The current and deferred components of the income tax expense which were substantially attributable to the Group’s PRC subsidiaries and VIEs and VIEs’ subsidiaries, are as follows: For the six months ended For the six months ended June 30, June 30, 2020 2021 RMB RMB Current tax 25,439 17,998 Deferred tax (7,565) — Total 17,874 17,998 The reconciliation of income tax expense at statutory tax rate to income tax expense recognized is as follows: For the six months ended For the six months ended June 30, June 30, 2020 2021 RMB RMB Income (loss) before income tax expenses (720,984) (167,335) Statutory tax rate in the PRC 25 % 25 % Income tax expense at statutory tax rate (180,246) (41,834) Non‑deductible expenses(i) 11,901 1,260 Change in valuation allowance 96,202 (252,398) Effect of tax holiday and preferential tax rate 31,734 301,815 Share‑based compensation expenses 51,752 8,729 Effect of different tax rates of subsidiaries operating in other jurisdictions 6,531 426 Income tax expense 17,874 17,998 (i) The amount included in non-deductible expenses is as follows: For the six months ended For the six months ended June 30, June 30, 2020 2021 RMB RMB Non‑deductible expenses—excessive advertising fees — — Other non‑deductible expenses 11,901 1,260 Total 11,901 1,260 The aggregate amount and per ordinary share effect of the tax holiday and preferential tax rate are as follows: June 30, June 30, 2020 2021 RMB RMB The aggregate amount of tax holiday and preferential tax rate (31,734) (301,815) The aggregate effect on basic and diluted net income per ordinary share: —Basic (0.16) (3.01) —Diluted (0.16) (3.01) The tax effects of temporary differences that gave rise to the deferred tax balances are as follows: June 30, June 30, 2020 2021 RMB RMB Deferred revenue 58,095 1,585 Accrued expenses 37,649 2,988 Allowance for doubtful accounts 305,435 11,374 Net operating loss carry forward 227,907 335,685 Excess advertising fee 81,923 — Less: valuation allowance (197,077) (351,632) Total deferred tax assets, net 513,932 — The movements of valuation allowance for six months ended June 30, 2020 and 2021 are as follows: 2020 2021 RMB RMB Balance at beginning of year 99,670 604,030 Additions 97,407 — Reversal — (252,398) Balance at June 30,2020 and 2021 197,077 351,632 June 30, June 30, 2020 2021 RMB RMB Intangible asset from acquisition 13,227 8,504 Total deferred liabilities 13,227 8,504 The Group considers positive and negative evidence to determine whether some portion or all of the deferred tax assets will more likely than not be realized. 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 Group’s experience with tax attributes expiring unused and tax planning alternatives. The valuation allowance is considered on each individual entity basis. Considering all the above factors, valuation allowances were established to certain entities because the Group believes that it is more likely than not that its deferred tax assets will not be realized as it does not expect to generate sufficient taxable income in the near future. Uncertainties exist with respect to how the current income tax law in the PRC applies to the Group’s overall operations, and more specifically, with regard to tax residency status. The EIT Law includes a provision specifying that legal entities organized outside of the PRC will be considered residents for Chinese income tax purposes if the place of effective management or control is within the PRC. The implementation rules to the EIT Law provide that non-resident legal entities will be considered PRC residents if substantial and overall management and control over the manufacturing and business operations, personnel, accounting and properties, occurs within the PRC. Despite the present uncertainties resulting from the limited PRC tax guidance on the issue, the Group does not believe that the legal entities organized outside of the PRC within the Group should be treated as residents for EIT law purposes. If the PRC tax authorities subsequently determine that the Group and its subsidiaries registered outside the PRC should be deemed resident enterprises, the Group and its subsidiaries registered outside the PRC will be subject to the PRC income taxes, at a statutory income tax rate of 25%, the Group is not subject to any other uncertain tax position. The EIT regulations (i.e. Caishui [2011] No. 112) specify that legal entities organized in the Xinjiang Kashgar Special Economic Development Area upon meeting certain requirements can qualify for five years exemption on income tax. Uncertainties exist with regard to whether Xinjiang Shuke can meet the requirements stipulated under the current EIT regulations as well as whether the Group income allocation to entities in Xinjiang match with their business substance. Despite the present uncertainties resulting from the limited tax implementation guidance for the preferential tax treatment of the above regulation in Xinjiang and the tax authorities’ view on the income allocation, the Group believes that the legal entities in the Xinjiang Kashgar Special Economic Development Area meet the requirements as stipulated by the prevailing EIT laws and regulations and therefore can qualified for the income tax exemption and the current income allocation ratio can be sustained. If the PRC tax authorities subsequently determine that these entities do not qualified for the income tax exemption status or the income allocation ratio is not in compliance with arm’s length principle, these entities will be subject to the PRC income taxes, at a statutory rate of 25%, or a transfer pricing adjustment would be made to increase the profit of other entities (subject to 25% or 15% EIT rate) in the Group, which will in turn increase our tax liability, late payment interest, and penalties of the Group. According to PRC Tax Administration and Collection Law, the statute of limitations is for a period of 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 RMB0.1 million is specifically listed as a special circumstance). In the case of a related party transaction, the statute of limitations is ten years. There is no 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 Group 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 June 30,2021. 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 VIEs without significant tax costs. As such, the Group does not accrue deferred tax liabilities on the earnings of the VIEs given that the Group will ultimately use the means. | 12. INCOME TAXES 9F Inc. is a company incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, it is not subject to tax on either income or capital gain. According to the HK regulations, HK entities are subject to a two-tiered income tax rate for taxable income earned in Hong Kong with effect from April 1, 2018. The first HK$2 million of profits earned by HK entity will be taxed at 8.25%, while the remaining profits will continue to be taxed at the existing 16.5% tax rate. In addition, to avoid abuse of the two-tiered tax regime, each group of connected entities can nominate only one entity to benefit from the two-tiered tax rate. Under the PRC Enterprise Income Tax Law (the “EIT Law”), the Group’s subsidiaries domiciled in the PRC are subject to 25% statutory rate unless they are qualified for preferential income tax rate status in accordance with the EIT Law. Certain of the Group’s PRC subsidiaries and VIEs enjoy a preferential income tax rate of 15% or 20% under the EIT Law. A “high and new technology enterprise” is entitled to a favorable income tax rate of 15% and such qualification is reassessed by relevant governmental authorities every three years. In December 2016, Beijing Muyu Technology Development Co., Ltd. (“Beijing Muyu”), a subsidiary of Beijing Jiufu Puhui Information Technology Co., Ltd. (“Jiufu Puhui”), was qualified as a “high and new technology enterprise” and thus enjoyed a preferential income tax rate of 15% for 2018, 2019, and 2020. In 2017, each of Jiufu Shuke, Jiufu Puhui and Jiufu Wukong (Beijing) Technology Co., Ltd. (“Jiufu Wukong”), a subsidiary of Jiufu Shuke, was qualified as a “high and new technology enterprise” and thus enjoyed a preferential income tax rate of 15% for 2018, 2019, and 2020. In 2018, Yisi Hudong(Beijing)Technology Co.,Ltd. (“Yisi Hudong”), a subsidiary of Zhuhai Jiufu Xiaojin, was qualified as a “high and new technology enterprise” and thus enjoyed a preferential income tax rate of 15% for 2018, 2019 and 2020. They would enjoy a preferential income tax rate of 15% for 2020, provided they continue to meet the standards for “high and new technology enterprise” during 2021. Jiufu Weiban, a subsidiary of Xinjiang Shuke, was qualified as a “high and new technology enterprise” and thus enjoyed a preferential income tax rate of 15% for 2018, 2019 and 2020. They would enjoy a preferential income tax rate of 15% for 2021, provided they continue to meet the standards for “high and new technology enterprise” during 2020. In addition, Zhuhai Hengqin Jiufu Technology Co., Ltd. (“Zhuhai Hengqin”) has been recognized as an enterprise of encouraged industries in the Hengqin New Area of Guangdong Province and enjoyed a preferential income tax rate of 15% for 2018, 2019 and 2020. Zhuhai Jiufu Xiaojin Technology Co., Ltd. (“Zhuhai Xiaojin”) has been recognized as an enterprise of encouraged industries in the Hengqin New Area of Guangdong Province and enjoyed a preferential income tax rate of 15% for 2018, 2019, and 2020. Xizang Jiufu Dingdang Information Technology Co., Ltd. (“Jiufu Dingdang”) has been recognized as encouraged industries in the Tibet autonomous region and enjoyed a preferential income tax rate of 15% for 2018, 2019 and 2020, the income tax shared by Tibet autonomous region was temporarily exempted. Xinjiang Teyi Shuke Information Technology Co., Ltd. (“Xinjiang Shuke”, formerly known as Xinjiang Jiufu Onecard Information Technology Co., Ltd.) has been recognized as encouraged industries in the Xinjiang Kashgar Special Economic Development Area and enjoyed a five-years exemption from enterprise income tax from 2017 to 2021. Liangzi (Tianjin) Finance Lease Limited (“Liangzi”) was qualified as a “small enterprises with low profits” and thus enjoyed a preferential income tax rate of 25% for 2019 and 2020. Beijing Baibai Technology Co., Ltd, Beijing Juhuixuan Technology Co., Ltd, Shenzhen Jiufu Xinfu Commercial Factoring Co., Ltd, Jiuxing insurance brokerage Co., Ltd, Beijing Jiubao Technology Co., Ltd, Zhuhai Jiuxin Asset Management Co., Ltd, and Qianhai Jiufu network technology (Shenzhen) Co., Ltd are qualified as “small enterprises with low profits” and thus enjoyed a preferential income tax rate of 20% for 2018, 2019 and 2020. The current and deferred components of the income tax expense which were substantially attributable to the Group’s PRC subsidiaries and VIEs and VIEs’ subsidiaries, are as follows: Year ended Year ended Year ended December 31, December 31, December 31, 2018 2019 2020 RMB RMB RMB Current tax 376,177 245,397 42,758 Deferred tax 26,226 (419,994) 495,546 Total 402,403 (174,597) 538,322 The reconciliation of income tax expense at statutory tax rate to income tax expense recognized is as follows: Year ended Year ended Year ended December 31, December 31, December 31, 2018 2019 2020 RMB RMB RMB Income (loss) before income tax expenses 2,418,729 (2,220,324) (1,691,563) Statutory tax rate in the PRC 25 % 25 % 25 % Income tax expense at statutory tax rate 604,682 (555,081) (422,891) Non‑deductible expenses (i) 19,526 15,362 278,303 Change in valuation allowance 20,980 43,350 504,360 Effect of tax holiday and preferential tax rate (375,632) 221,590 104,218 Share‑based compensation expenses 127,041 88,288 72,657 Effect of different tax rates of subsidiaries operating in other jurisdictions 5,806 11,894 1,675 Income tax expense 402,403 (174,597) 538,322 (i) The amount included in non-deductible expenses is as follows: Year ended Year ended Year ended December 31, December 31, December 31, 2018 2019 2020 RMB RMB RMB Non‑deductible expenses—excessive advertising fees 2,927 — — Other non‑deductible expenses 16,599 15,362 278,303 Total 19,526 15,362 278,303 The aggregate amount and per ordinary share effect of the tax holiday and preferential tax rate are as follows: December 31, December 31, December 31, 2018 2019 2020 RMB RMB RMB The aggregate amount of tax holiday and preferential tax rate 375,632 (221,590) (104,218) The aggregate effect on basic and diluted net income per ordinary share: —Basic 2.31 (1.27) (0.52) —Diluted 2.02 (1.27) (0.52) The tax effects of temporary differences that gave rise to the deferred tax balances are as follows: December 31, December 31, December 31, 2018 2019 2020 RMB RMB RMB Deferred revenue 36,834 104,750 11,786 Accrued expenses 55,110 105,475 106,404 Allowance for doubtful accounts 4,335 265,745 330,488 Net operating loss carry forward 44,379 80,485 142,722 Excess advertising fee — 47,202 12,630 Less: valuation allowance (56,320) (99,670) (604,030) Total deferred tax assets, net 84,338 503,987 — The movements of valuation allowance for the years ended December 31, 2018, 2019 and 2020 are as follows: 2018 2019 2020 RMB RMB RMB Balance at beginning of year 35,340 56,320 99,670 Additions 34,459 56,132 504,360 Reversal (13,479) (12,782) — Balance at end of year 56,320 99,670 604,030 December 31, December 31, December 31, 2018 2019 2020 RMB RMB RMB Deferred tax liabilities: Intangible asset from acquisition 9,003 15,354 9,280 Contract assets — 1,861 — Total deferred liabilities 9,003 17,215 9,280 The Group considers positive and negative evidence to determine whether some portion or all of the deferred tax assets will more likely than not be realized. 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 Group’s experience with tax attributes expiring unused and tax planning alternatives. The valuation allowance is considered on each individual entity basis. Considering all the above factors, valuation allowances were established to certain entities because the Group believes that it is more likely than not that its deferred tax assets will not be realized as it does not expect to generate sufficient taxable income in the near future. Uncertainties exist with respect to how the current income tax law in the PRC applies to the Group’s overall operations, and more specifically, with regard to tax residency status. The EIT Law includes a provision specifying that legal entities organized outside of the PRC will be considered residents for Chinese income tax purposes if the place of effective management or control is within the PRC. The implementation rules to the EIT Law provide that non-resident legal entities will be considered PRC residents if substantial and overall management and control over the manufacturing and business operations, personnel, accounting and properties, occurs within the PRC. Despite the present uncertainties resulting from the limited PRC tax guidance on the issue, the Group does not believe that the legal entities organized outside of the PRC within the Group should be treated as residents for EIT law purposes. If the PRC tax authorities subsequently determine that the Group and its subsidiaries registered outside the PRC should be deemed resident enterprises, the Group and its subsidiaries registered outside the PRC will be subject to the PRC income taxes, at a statutory income tax rate of 25 The EIT regulations (i.e. Caishui [2011] No. 112) specify that legal entities organized in the Xinjiang Kashgar Special Economic Development Area upon meeting certain requirements can qualify for five years exemption on income tax. Uncertainties exist with regard to whether Xinjiang Shuke can meet the requirements stipulated under the current EIT regulations as well as whether the Group income allocation to entities in Xinjiang match with their business substance. Despite the present uncertainties resulting from the limited tax implementation guidance for the preferential tax treatment of the above regulation in Xinjiang and the tax authorities’ view on the income allocation, the Group believes that the legal entities in the Xinjiang Kashgar Special Economic Development Area meet the requirements as stipulated by the prevailing EIT laws and regulations and therefore can qualified for the income tax exemption and the current income allocation ratio can be sustained. If the PRC tax authorities subsequently determine that these entities do not qualified for the income tax exemption status or the income allocation ratio is not in compliance with arm’s length principle, these entities will be subject to the PRC income taxes, at a statutory rate of 25%, or a transfer pricing adjustment would be made to increase the profit of other entities (subject to 25% or 15% EIT rate) in the Group, which will in turn increase our tax liability, late payment interest, and penalties of the Group. According to PRC Tax Administration and Collection Law, the statute of limitations is for a period of 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 RMB0.1 million is specifically listed as a special circumstance). In the case of a related party transaction, the statute of limitations is ten years. There is no 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 Group 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, 2017, 2018, and 2019. 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 VIEs without significant tax costs. As such, the Group does not accrue deferred tax liabilities on the earnings of the VIEs given that the Group will ultimately use the means. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
SHARE-BASED COMPENSATION | ||
SHARE-BASED COMPENSATION | 13. SHARE-BASED COMPENSATION Share incentive plan Share options In 2015, the Group adopted the 2015 Share Incentive Plan (the “2015 Plan”) and, in 2016, the Group adopted the 2016 Share Incentive Plan (the “2016 Plan”), which permits the grant of three types of awards: options, restricted shares and restricted share units. Persons eligible to participate in the 2015 Plan and 2016 Plan (collectively, the “Plans”) includes employees, consultants and directors of the Group or any of affiliates, which include the Group’s parent company, subsidiaries and the Group. Under the 2015 plan, a maximum ordinary shares available for issuance were 15,094,700. Under the 2016 Plan, a maximum of 16,771,900 ordinary shares were reserved for issuance. According to the resolutions of the board of director in 2017, the Group reserved additional 35,867,400 ordinary shares for the Plans. According to the resolutions of the board of director in 2018, the Group reserved additional 3,518,000 ordinary shares for the Plans. During the six months ended June 30,2021,the Group granted 500,000 shares at the exercise price of RMB7.78 per share,4,425,211 shares at the exercise price of RMB0.07. · 500,000 share options will vest annually in equal instalment over 5 years. · 4,425,211 shares options vested 2,655,127 on June 30,2021 and 1,327,563 on September 30,2021,will be vest 442,521 on December 31,2021. During the year ended December 31 2020, the Group granted 680,300 share options at the exercise price of RMB24.11 per share, 2,853,911 share options at the exercise price of zero,3,345,098 share options at the exercise price of RMB24.11 per share,178,900 share options at the exercise price of RMB13.83 per share, 445,280 share options at the exercise price of RMB24.11 per share. These grants are subject to the following vesting conditions: · 680,300 share options will vest over 5 years based on vesting of 15%, 20%, 20%, 20% and 25% at each anniversary subsequent to the grant date. · 2,853,911 share options vested 1,426,955 on March 20,2020 and 1,426,955 on April 20,2020. · 3,345,098 share options fully vested on May 28,2020. · 178,900 share options will vest over 4 years based on vesting of 20%, 20%, 30%, and 30% at each anniversary subsequent to the grant date. · 445,280 share options will vest annually in equal instalment over 5 years. During the year ended December 31 2019, the Group granted 2,279,400 share options at the exercise price of RMB24.06 per share, 78,600 share options at the exercise price of RMB50.13 per share, and 21,500 share options at the exercise price of RMB14.32 per share. These grants are subject to the following vesting conditions: · 100,100 share options will vest annually in equal instalment over 3 · 34,600 share options will vest annually in equal instalment at each calendar year end of grant date over 4 years. · 33,600 share options will vest annually in equal instalment at each anniversary subsequent to the grant date over 5 years. In addition to the service requirement, the share options will only vest upon IPO. · 46,500 share options will vest over 5 years based on vesting of 15%, 20%, 20%, 20% and 25% at each anniversary subsequent to the grant date. In addition to the service requirement, the share options will only vest upon IPO. · 64,700 share options will vest over 4 years based on vesting of 20%, 25%, 25%, and 30% at each anniversary subsequent to the grant date. In addition to the service requirement, the share options will only vest upon IPO. · 100,000 share options will vest over 6 years based on vesting of 12%, 12%, 16%, 20%, 20% and 20% at each anniversary subsequent to the grant date. In addition to the service requirement, the share options will only vest upon IPO. · 2,000,000 share options will vest over 5 years based on vesting of 40%, 15%, 15%, 15%, and 15% at each anniversary of grant date. In addition to the service requirement, the share options will only vest upon IPO. During the year ended December 31, 2018, the Group granted 1,118,400 share options at the exercise price of RMB24.06 per share, 961,100 share options at the exercise price of RMB14.32 per share. These grants are subject to the following vesting conditions: · 618,400 share options will vest annually in equal instalment at each calendar year end subsequent to the grant date over 5 years. In addition to the service requirement, 500,700 share options will only vest upon IPO. · 400,000 share options will vest over 4 years based on vesting of 40%, 20%, 20% and 20% at each calendar year end subsequent to the grant date. In addition to the service requirement, the share options will only vest upon IPO. · 357,800 share options will vest over 4 years based on vesting of 20%, 20%, 30%, and 30% at each calendar year end subsequent to the grant date. In addition to the service requirement, 178,900 share options will only vest upon IPO. · 100,000 share options will vest over 5 years based on vesting of 16%,16%,16%,16%,16% and 20% of the options will be average vested on each year end of grant date. In addition to the service requirement, the share options will only vest upon IPO. · 603,300 share options will vest over 3 years based on vesting of 60%,30% and 10% of the options will be average vested on each year end of grant date. The vesting of the share options granted during the years ended December 31 2020 and for the six months ended June 30,2021 are also subject to certain annual performance targets established by the Group’s Board of Directors and Chief Executive Officer(“CEO”). The Group recognized compensation expenses related to the option linked to these performance targets during the vesting period based on the probable outcome of these performance conditions. The Group has determined that it is probable these conditions will be met; as such the share-based compensation is recognized over the vesting period. The Group calculated the estimated fair value of the share options on the respective grant dates using the binomial option pricing model with the assistance from an independent valuation firm, with the following assumptions used in the six months ended June 30,2020 and 2021. The weighted-average grant-date fair value of the share options granted during the six months ended June 30,2020 and 2021 was RMB20.12 and RMB8.00, respectively. For the six months ended For the six months ended June 30, June 30, 2020 2021 Risk free rate of interest 0.27%-1.47% 0.84%~1.61% Volatility 48.8%-59.5% 113.60%~116% Dividend yield — — Exercise multiples 2.2 / 2.8 2.2 Life of option (years) 2.5-6.0 5 (1) Risk free rate of interest Based on the daily treasury long term rate of U.S. Department of the treasury with a maturity period close to the expected term of the option. (2) Volatility The volatility factor estimated was based on the annualized standard deviation of the daily return embedded in historical share prices of the selected guide line companies with a time horizon close to the expected expiry of the term. (3) Dividend yield The Company has never declared or paid any cash dividends on the Company’s capital stock, and does not anticipate any dividend payments on the Company’s ordinary shares in the foreseeable future. (4) Exercise multiples The expected exercise multiple was estimated as the average ratio of the stock price as at the time when employees would decide to voluntarily exercise their vested options. As the Group did not have sufficient information of past employee exercise history, it was estimated by referencing to academic research publications. For key management grantee and non-key management grantee, the exercise multiple was estimated to be 2.8 and 2.2 respectively. The activity in share options during period from December 31,2020 and June 30,2021 is set out below: Weighted Weighted Average Number of Average Grant ‑ date Options Exercise Price Fair Value RMB RMB Outstanding as of December 31, 2020 29,273,408 17.24 40.24 Granted 4,925,211 0.76 8.00 Exercised — — — Forfeited — — — Outstanding as of June 30, 2021 34,198,619 14.87 35.60 The following table summarizes information with respect to share options outstanding as of June 30, 2021: Options Outstanding Options Exercisable Weighted Weighted Average Average Number Remaining Number Remaining Exercise Price Outstanding Contractual Life Outstanding Contractual Life RMB 0.07 4,425,211 0.87 — — 7.78 500,000 5.73 9.53 10,340,000 0.2 9,878,000 0.09 14.32 12,036,630 1.47 11,644,230 1.45 24.06 2,641,500 3.05 — — 24.11 4,176,678 3.05 3,345,098 3.05 51.05 78,600 2.52 — — 34,198,619 24,867,328 The share-based compensation expenses recognized with each issuance of share options since January 1, 2015 are as follows: For the six months ended June 30, Date of Grant 2020 2021 RMB RMB 01/07/2016 5,255 — 23/08/2016 800 — 06/09/2016 457 — 01/08/2017 3,373 3,097 10/10/2017 1,458 1,335 26/12/2017 2,380 — 19/01/2018 781 — 27/03/2018 1,835 1,681 01/09/2018 524 479 29/09/2018 2,343 1,146 07/01/2019 427 391 21/04/2019 157 144 13/06/2019 90 82 14/06/2019 38 35 01/07/2019 6,955 3,565 16/02/2020 1,636 21/02/2020 112,183 — 28/02/2020 67,952 — 01/07/2020 — 678 13/05/2021 — 20,573 Share‑based compensation recognized for share options 207,008 34,842 A summary of share based compensation recognized related to share options granted and ordinary shares issued is as follows: For the six months ended For the six months ended June 30, June 30, 2020 2021 RMB RMB General and administrative expenses 207,008 34,842 As of December 31 2020 and June 30,2021, unrecognized compensation cost related to unvested option awards granted to employees of the Group was RMB8,741 and RMB11,261, respectively. As of June 30, 2021, such cost was expected to be recognized over a weighted average period of 2.41 years. | 13. SHARE-BASED COMPENSATION Share incentive plan Share options In 2015, the Group adopted the 2015 Share Incentive Plan (the “2015 Plan”) and, in 2016, the Group adopted the 2016 Share Incentive Plan (the “2016 Plan”), which permits the grant of three types of awards: options, restricted shares and restricted share units. Persons eligible to participate in the 2015 Plan and 2016 Plan (collectively, the “Plans”) includes employees, consultants and directors of the Group or any of affiliates, which include the Group’s parent company, subsidiaries and the Group. Under the 2015 plan, a maximum ordinary shares available for issuance were 15,094,700. Under the 2016 Plan, a maximum of 16,771,900 ordinary shares were reserved for issuance. According to the resolutions of the board of director in 2017, the Group reserved additional 35,867,400 ordinary shares for the Plans. According to the resolutions of the board of director in 2018, the Group reserved additional 3,518,000 ordinary shares for the Plans. During the year ended December 31 2020, the Group granted 680,300 share options at the exercise price of RMB24.11 per share, 2,853,911 share options at the exercise price of zero,3,345,098 share options at the exercise price of RMB24.11 per share,178,900 share options at the exercise price of RMB13.83 per share, 445,280 share options at the exercise price of RMB24.11 per share. These grants are subject to the following vesting conditions: ● 680,300 share options will vest over 5 years based on vesting of 15 %, 20 %, 20 %, 20 % and 25 % at each anniversary subsequent to the grant date. ● 2,853,911 share options vested 1,426,955 on March,20,2020 and 1,426,955 on April,20,2020. ● 3,345,098 share options fully vested on May 28,2020. ● 178,900 share options will vest over 4 years based on vesting of 20 %, 20 %, 30 %, and 30 % at each anniversary subsequent to the grant date. ● 445,280 share options will vest annually in equal instalment over 5 years . During the year ended December 31 2019, the Group granted 2,279,400 share options at the exercise price of RMB24.06 per share, 78,600 share options at the exercise price of RMB50.13 per share, and 21,500 share options at the exercise price of RMB14.32 per share. These grants are subject to the following vesting conditions: ● 100,100 share options will vest annually in equal instalment over 3 or 4 years . ● 34,600 share options will vest annually in equal instalment at each calendar year end of grant date over 4 years . ● 33,600 share options will vest annually in equal instalment at each anniversary subsequent to the grant date over 5 years . In addition to the service requirement, the share options will only vest upon IPO. ● 46,500 share options will vest over 5 years based on vesting of 15% , 20% , 20% , 20% and 25% at each anniversary subsequent to the grant date. In addition to the service requirement, the share options will only vest upon IPO. ● 64,700 share options will vest over 4 years based on vesting of 20% , 25% , 25% , and 30% at each anniversary subsequent to the grant date. In addition to the service requirement, the share options will only vest upon IPO. ● 100,000 share options will vest over 6 years based on vesting of 12% , 12% , 16% , 20% , 20% and 20% at each anniversary subsequent to the grant date. In addition to the service requirement, the share options will only vest upon IPO. ● 2,000,000 share options will vest over 5 years based on vesting of 40% , 15% , 15% , 15% , and 15% at each anniversary of grant date. In addition to the service requirement, the share options will only vest upon IPO. During the year ended December 31, 2018, the Group granted 1,118,400 share options at the exercise price of RMB24.06 per share, 961,100 share options at the exercise price of RMB14.32 per share. These grants are subject to the following vesting conditions: ● 618,400 share options will vest annually in equal instalment at each calendar year end subsequent to the grant date over 5 years . In addition to the service requirement, 500,700 share options will only vest upon IPO. ● 400,000 share options will vest over 4 years based on vesting of 40% , 20% , 20% and 20% at each calendar year end subsequent to the grant date. In addition to the service requirement, the share options will only vest upon IPO. ● 357,800 share options will vest over 4 years based on vesting of 20% , 20% , 30% , and 30% at each calendar year end subsequent to the grant date. In addition to the service requirement, 178,900 share options will only vest upon IPO. ● 100,000 share options will vest over 5 years based on vesting of 16% , 16% , 16% , 16% , 16% and 20% of the options will be average vested on each year end of grant date. In addition to the service requirement, the share options will only vest upon IPO. ● 603,300 share options will vest over 3 years based on vesting of 60% , 30% and 10% of the options will be average vested on each year end of grant date. The vesting of the share options granted during the years ended December 31 2018, 2019 and 2020 are also subject to certain annual performance targets established by the Group’s Board of Directors and Chief Executive Officer(“CEO”). The Group recognized compensation expenses related to the option linked to these performance targets during the vesting period based on the probable outcome of these performance conditions. The Group has determined that it is probable these conditions will be met; as such the share-based compensation is recognized over the vesting period. The Group calculated the estimated fair value of the share options on the respective grant dates using the binomial option pricing model with the assistance from an independent valuation firm, with the following assumptions used in 2018, 2019 and 2020. The weighted-average grant-date fair value of the share options granted during 2018, 2019 and 2020 was RMB69.34, RMB38.29 and RMB35.88 respectively. Year ended Year ended Year ended December 31, December 31, December 31, 2018 2019 2020 Risk free rate of interest 2.45% ‑ 2.98% 1.79%-2.53% 0.27%-1.47% Volatility 43.5% ‑ 48.3% 43.4%-55.3% 48.8%-59.5% Dividend yield — — — Exercise multiples 2.2 / 2.8 2.2 / 2.8 2.2 / 2.8 Life of option (years) 4.0 ‑ 6.0 4.0 - 6.0 2.5-6.0 (1) Risk free rate of interest Based on the daily treasury long term rate of U.S. Department of the treasury with a maturity period close to the expected term of the option. (2) Volatility The volatility factor estimated was based on the annualized standard deviation of the daily return embedded in historical share prices of the selected guide line companies with a time horizon close to the expected expiry of the term. (3) Dividend yield The Company has never declared or paid any cash dividends on the Company’s capital stock, and does not anticipate any dividend payments on the Company’s ordinary shares in the foreseeable future. (4) Exercise multiples The expected exercise multiple was estimated as the average ratio of the stock price as at the time when employees would decide to voluntarily exercise their vested options. As the Group did not have sufficient information of past employee exercise history, it was estimated by referencing to academic research publications. For key management grantee and non-key management grantee, the exercise multiple was estimated to be 2.8 and 2.2 respectively. The activity in share options during period from December 31, 2019 to December 31, 2020 is set out below: Weighted Weighted Average Number of Average Grant ‑ date Options Exercise Price Fair Value RMB RMB Outstanding as of December 31, 2019 36,474,200 12.28 34.61 Granted 7,503,489 14.70 35.88 Exercised (8,319,681) — 22.00 Forfeited (6,384,600) 17.05 39.66 Outstanding as of December 31, 2020 29,273,408 17.24 40.24 The following table summarizes information with respect to share options outstanding as of December 31, 2020: Options Outstanding Options Exercisable Weighted Weighted Average Average Number Remaining Number Remaining Exercise Price Outstanding Contractual Life Outstanding Contractual Life RMB 7.78 10,340,000 0.64 9,878,000 0.52 14.32 12,036,630 1.97 11,644,230 1.94 24.06 2,641,500 3.55 — — 24.11 4,176,678 3.55 3,345,098 3.55 51.05 78,600 3.02 — — 29,273,408 24,867,328 The share-based compensation expenses recognized with each issuance of share options since January 1, 2015 are as follows: For the year ended December 31, Date of Grant 2018 2019 2020 RMB RMB RMB 10/07/2015 2,613 — — 25/09/2015 111 57 — 01/07/2016 47,177 27,771 10,319 16/08/2016 241 251 — 23/08/2016 2,336 2,442 1,571 01/09/2016 1,546 1,616 — 06/09/2016 3,524 3,427 898 01/08/2017 9,686 10,124 6,623 11/09/2017 8,713 9,107 — 10/10/2017 2,732 2,856 2,862 20/10/2017 393,648 63,246 — 26/12/2017 — 135,997 4,674 19/01/2018 33,623 8,486 1,533 07/03/2018 2,193 4,162 — 27/03/2018 — 6,345 3,604 27/04/2018 — 10,377 — 01/09/2018 — 1,366 1,028 29/09/2018 — 20,195 4,600 24/12/2018 19 1,095 — 07/01/2019 — 1,842 839 21/04/2019 — 653 309 13/06/2019 — 97 177 14/06/2019 — 41 75 01/07/2019 — 41,598 13,657 21/2/2020 — — 110,145 28/2/2020 — — 127,716 Share‑based compensation recognized for share options 508,162 353,151 290,630 A summary of share based compensation recognized related to share options granted and ordinary shares issued is as follows: Year ended Year ended Year ended December 31, December 31, December 31, 2018 2019 2020 RMB RMB RMB General and administrative expenses 508,162 353,151 290,630 Total 508,162 353,151 290,630 As of December 31, 2018, 2019 and 2020, unrecognized compensation cost related to unvested option awards granted to employees of the Group was RMB410,202, RMB150,349 and RMB8,741, respectively. As of December 31, 2020, such cost was expected to be recognized over a weighted average period of 3.24 years. |
CONVERTIBLE REDEEMABLE PREFERRE
CONVERTIBLE REDEEMABLE PREFERRED SHARES | 12 Months Ended |
Dec. 31, 2020 | |
CONVERTIBLE REDEEMABLE PREFERRED SHARES | |
CONVERTIBLE REDEEMABLE PREFERRED SHARES | 14. CONVERTIBLE REDEEMABLE PREFERRED SHARES On March 25, 2015, 9F issued 11,950,600 Series A preferred shares at a per-share purchase price of about US$2.93 (equivalent to RMB18.16) to certain third party shareholders (“Series A Preferred Shareholders”) for a cash consideration of US$35 million (equivalent to RMB215 million). On July 5, 2017, 9F issued 2,830,300 Series B preferred shares at a per-share purchase price of about US$10.60 (equivalent to RMB71.56) to certain third party shareholders (“Series B Preferred Shareholders”) for a cash consideration of US$30 million (equivalent to RMB202 million). On Nov 7, 2017, 9F issued 5,051,800 Series C preferred shares at a per-share purchase price of about US$10.60 (equivalent to RMB70.36) to certain third party shareholders (“Series C Preferred Shareholders”) for a cash consideration of US$54 million (equivalent to RMB355 million). On January 26, 2018, 9F issued 3,518,000 Series D preferred shares at a per-share purchase price of about US$18.48 (equivalent to RMB116.09) to certain third party shareholders (“Series D Preferred Shareholders”) for a cash consideration of US$65 million (equivalent to RMB408 million). On September 14, 2018, 9F issued 1,082,500 Series E preferred shares at a per-share purchase price of about US$18.48 (equivalent to RMB126.48) to certain third party shareholders (“Series E Preferred Shareholders”) for a cash consideration of US$20 million (equivalent to RMB136 million). The key terms of the equity interest with preferential feature are follows: Voting Rights The holders of preferred shares and the holders of ordinary shares shall vote together based on their shareholding percentages. Dividends The holder of each preferred share shall have the right to receive non-cumulative dividends, pari passu with the ordinary shares, on an as-converted basis, when, as and if declared by the Board. Liquidation If a Liquidation Event occurs, distributions to the shareholders of the Group shall be made in the following manner: (a) Each holder of the Series D and E preferred shares shall be entitled to receive out of the remaining assets of the Group available for distribution to its Members, prior and in preference to any distribution of any assets or surplus funds of the Group to the holders of the ordinary shares, Series A preferred shares, Series B preferred shares and Series C preferred shares of the Group, an amount equal to 115% of the Series D Issue Price for each Series D preferred share an amount equal to 115% of the Series E Issue Price for each Series E preferred share, plus all declared but unpaid dividends and distributions on such Series D and E preferred share. If the assets and surplus funds distributable are insufficient to permit the payment for the full Series D Preference Amount and Series E Preference Amount, then the entire assets and surplus funds of the Group available for distribution to such holders shall be distributed ratably among the holders of Series D and E preferred shares in proportion to the number of Series D and Series E preferred shares owned by each such holder. (b) Each holder of the Series C preferred shares shall be entitled to receive out of the remaining assets of the Group available for distribution to its Members, prior and in preference to any distribution of any assets or surplus funds of the Group to the holders of the ordinary shares, Series A preferred shares and Series B preferred shares of the Group, an amount equal to 115% of the Series C Issue Price for each Series C preferred share, plus all declared but unpaid dividends and distributions on such Series C preferred share. If the assets and surplus funds distributable are insufficient to permit the payment for the full Series C Preference Amount, then the entire assets and surplus funds of the Group available for distribution to such holders shall be distributed ratably among the holders of Series C preferred shares in proportion to the number of Series C preferred shares owned by each such holder. (c) Each holder of the Series B preferred shares shall be entitled to receive out of the remaining assets of the Group available for distribution to its shareholders, prior and in preference to any distribution of any assets or surplus funds of the Group to the holders of the ordinary shares and Series A preferred shares of the Group, an amount equal to 115% of the Series B Conversion Price for each Series B preferred share, plus all declared but unpaid dividends and distributions on such Series B preferred share. If the assets and surplus funds distributable are insufficient to permit the payment for the full Series B Preference Amount, then the entire assets and surplus funds of the Group available for distribution to such holders shall be distributed ratably among the holders of Series B preferred shares in proportion to the number of Series B preferred shares owned by each such holder. (d) Each holder of the Series A preferred shares shall be entitled to receive out of the remaining assets of the Group available for distribution to its shareholders, prior and in preference to any distribution of any assets or surplus funds of the Group to the holders of the ordinary shares and any other class of shares of the Group, an amount equal to the higher of (i) 130% of the Series A issue price for each Series A preferred share, plus all declared but unpaid dividends and distributions on such Series A preferred share (ii) an amount such holder of Series A preferred share is entitled to assuming pro rata distribution of the assets and surplus funds distributable among all the holders of the preferred shares and all the holders of the ordinary shares. If the assets and surplus funds distributable are insufficient to permit the payment for the full Series A preference amount, then the entire assets and surplus funds of the Group available for distribution to such holders shall be distributed ratably among the holders of Series A preferred shares in proportion to the number of Series A preferred shares owned by each such holder. Conversion Each holder of preferred shares has the right to convert any or all of its preferred shares into ordinary shares at the quotient of the original issue price divided by the then effective conversion price, which shall initially be the issue price per share of the preferred shares, as defined in the memorandum and articles of association being no less than par value. In addition, all outstanding preferred shares shall be automatically converted into ordinary shares upon the consummation of a Qualified IPO. “Qualified IPO” means a firm commitment underwritten registered initial public offering by the Group of its ordinary shares (or securities of the Group representing the ordinary shares), representing no less than 10% of the Group’s share capital on a fully-diluted basis, on New York Stock Exchange, NASDAQ, Hong Kong Stock Exchange or other internationally recognized stock exchange, as approved by the Shareholders in accordance with the Shareholders Agreement, the Memorandum and these Articles, pursuant to a registration statement that is filed with and declared effective in accordance with the securities laws of relevant jurisdiction at a public offering price per share (prior to customary underwriters’ commissions and expenses) that is no less than the higher of (i) the product of 1.2 and the Series A Issue Price, and (ii) an amount that represents the Series A Issue Price plus 20% of compound internal rate per annum on the Series A Issue Price for the period from the Series A Issuance Date to the closing date of such offering. IPO Adjustment Events If the Group completes an IPO within 12 months, 24 months or 36 months after the Closing and the public offering price per ordinary share, in the IPO is less than the result of (A)130% (within 12 months), 150% (within 24 months) and 180% (within 36 months) of the Series B, C, D and E Conversion Price effective immediately prior to the completion of the IPO, minus (B) all dividends that have been declared on a Series B, C, D and E preferred share prior to the completion of the IPO (the “Declared Dividends”), then, at the option of the Group: (i) the Series B, C, D and E Conversion Price of each Series B, C, D and E preferred share held by the Purchaser shall, immediately prior to the completion of the IPO, be adjusted in accordance with the following formula (such new Series B and C Conversion Price, the “Adjusted Conversion Price I, II and III”): Adjusted Conversion PriceI= (Per Share Offering Price + Declared Dividends) / 130% (within 12 months); Adjusted Conversion Price II = (Per Share Offering Price + Declared Dividends) / 150% (within 24 months); Adjusted Conversion Price III = (Per Share Offering Price + Declared Dividends) / 180% (within 36 months); (ii) the Group shall, within thirty ( 30 ) Business Days from the completion of the IPO, pay, or cause to be paid, an amount calculated in accordance with the formula below (the “Adjustment Amount I”) to the Purchaser for each Series B, C, D and E preferred share held by the Purchaser immediately prior to completion of the IPO in cash by wire transfer of immediately available funds to an account designated by the Purchaser: Adjusted Amount I = Series B&C&D&E Conversion Price effective immediately prior to completion of the IPO - Adjusted Conversion Price I (within 12 months) Adjusted Amount II = Series B&C&D&E Conversion Price effective immediately prior to completion of the IPO - Adjusted Conversion Price II (within 24 months) Adjusted Amount III = Series B&C&D&E Conversion Price effective immediately prior to completion of the IPO - Adjusted Conversion Price III (within 36 months) Performance Adjustments The Group has determined that there was no beneficial conversion feature (“BCF”) attributable to the preferred shares, as the effective conversion price was greater than the fair value of the ordinary shares on the respective commitment date. The Group will reevaluate whether additional BCF is required to be recorded upon adjustments to the effective conversion price of the preferred shares, if any. Redemption Redemption condition for Series A preferred shares In the event that the Group has not consummated a Qualified IPO as of the date that is thirty-six (36) months after March 25, 2015, each holder of the then outstanding Series A preferred shares, may require that the Group redeem all of its preferred shares. Redemption condition for Series B preferred shares The Series B preferred shares is redeemable, at any time after the earlier of: i) Thirty-six ( 36 ) months after July 5, 2017, if the Group has not consummated a Qualified IPO; ii) Any willful misconduct by the Founder or the Group; iii) Termination of the Founder by the Group; iv) Any redemption required by other investors, then subject to the applicable laws of the Cayman Islands and if so requested by any holder of then issued, outstanding Series B preferred shares, the Group shall redeem all or part of the issued, outstanding Series B preferred shares of such holder in cash out of funds legally available. Redemption condition for Series C preferred shares The Series C preferred shares is redeemable, at any time after the earlier of: i) Thirty-six ( 36 ) months after November 7, 2017, if the Group has not consummated a Qualified IPO; ii) The 2017 Actual Profit as defined by the provision of the preferred share agreement, is less than 80% of 2017 Target Profit (RMB1,000,000,000); Redemption condition for Series D preferred shares The Series D preferred shares is redeemable, at any time after thirty-six (36) months after January 26, 2018, if the Group has not consummated a Qualified IPO; Redemption condition for Series E preferred shares The Series E preferred shares is redeemable, at any time after the earlier of: i) Thirty-six ( 36 ) months after September 14, 2018, if the Group has not consummated a Qualified IPO; ii) The 2017 Actual Profit as defined by the provision of the preferred share agreement, is less than 80% of 2017 Target Profit (RMB 1,000,000,000 ); Redemption Price The redemption price for Series A, B, C and D preferred share redeemed shall be equal to the applicable preferred share issue price plus Series A redemption event triggered as the Group’s failure to complete a Qualified IPO by March 24, 2018. The Group adjusted the carrying amount of Series A preferred shares to equal the redemption value at December 31, 2018 and 2019, and recognized accretion of the Series A preferred shares amounted to RMB17,225 and RMB10,711 in retained earnings during the year ended December 31, 2018 and 2019, respectively. The movement in the carrying value of the preferred shares is as follows: Series A Series B Series C Series D Series E Total RMB RMB RMB RMB RMB RMB Balance as of December 31, 2017 263,076 202,086 355,248 — — 820,410 Issuance of Series D preferred shares — — — 408,358 — 408,358 Issuance of Series E preferred shares — — — — 136,427 136,427 Accretion on convertible redeemable preferred shares to redemption value 17,225 — — — — 17,225 Balance as of December 31, 2018 280,301 202,086 355,248 408,358 136,427 1,382,420 Accretion on convertible redeemable preferred shares to redemption value 10,711 — — — — 10,711 Conversion of convertible preferred shares to ordinary shares (291,012) (202,086) (355,248) (408,358) (136,427) (1,393,131) Balance as of December 31, 2019 — — — — — — Upon the completion of the initial public offering, all of the Company’s Preferred Share were converted into 24,433,200 ordinary shares on a one-to-one basis. |
ORDINARY SHARES
ORDINARY SHARES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
ORDINARY SHARES | ||
ORDINARY SHARES | 14. ORDINARY SHARES The Group’s Amended and Restated Memorandum of Association authorizes the Group to issue 5,000,000,000 ordinary shares with a par value of US$0.00001 per share approximately. As of December 31,2020 and June 30,2021, the Group had 203,510,681 and 203,510,681 ordinary shares issued and outstanding, respectively. On December 30, 2017, according to the resolution of the board of directors, the Group approved the issuance of 9,894,500 ordinary shares at par value to three individuals who are members of the executive management and board of directors of the Group. In connection with the above issuances, to provide anti-dilution protection to the preferred shareholders, the board of director further approved the issuance of a total of 1,309,900 ordinary shares at par value to the Series A, B and C Preferred Shareholders. A deemed dividend of RMB103,550 was recorded based on a determined per share fair value of ordinary share at RMB82.10. These ordinary shares were subsequently issued on February 1, 2018. In August 2019, the Company completed its initial public offering and issued 8,085,000 ADSs (representing 8,085,000 Class A ordinary shares). The net proceeds raised from initial public offering and from exercising the over-allotment option by the underwriters were RMB463,065, net of issuance cost of RMB31,776. Upon the completion of the initial public offering, the 195,191,000 ordinary shares outstanding were classified into Class A and Class B ordinary shares, of which 128,228,600 shares were designated to Class A ordinary shares and 66,962,400 shares were designated to Class B ordinary shares. Holders of Class A ordinary shares and Class B ordinary shares have the same rights except for voting and conversion rights. Each Class A ordinary share is entitled to one vote, and each Class B ordinary share is entitled to five votes and is convertible into one Class A ordinary share at the option of the holder. Class A ordinary shares Class B ordinary shares | 15. ORDINARY SHARES The Group’s Amended and Restated Memorandum of Association authorizes the Group to issue 5,000,000,000 ordinary shares with a par value of US$0.00001 per share approximately. As of December 31, 2018 , 2019 and 2020 , the Group had 162,672,800, 195,191,000, and 203,510,681 ordinary shares issued and outstanding, respectively. On December 30, 2017, according to the resolution of the board of directors, the Group approved the issuance of 9,894,500 ordinary shares at par value to three individuals who are members of the executive management and board of directors of the Group. In connection with the above issuances, to provide anti-dilution protection to the preferred shareholders, the board of director further approved the issuance of a total of 1,309,900 ordinary shares at par value to the Series A, B and C Preferred Shareholders. A deemed dividend of RMB103,550 was recorded based on a determined per share fair value of ordinary share at RMB82.10. These ordinary shares were subsequently issued on February 1, 2018. In August 2019, the Company completed its initial public offering and issued 8,085,000 ADSs (representing 8,085,000 Class A ordinary shares). The net proceeds raised from initial public offering and from exercising the over-allotment option by the underwriters were RMB463,065, net of issuance cost of RMB31,776. Upon the completion of the initial public offering, the 195,191,000 ordinary shares outstanding were classified into Class A and Class B ordinary shares, of which 128,228,600 shares were designated to Class A ordinary shares and 66,962,400 shares were designated to Class B ordinary shares. Holders of Class A ordinary shares and Class B ordinary shares have the same rights except for voting and conversion rights. Each Class A ordinary share is entitled to one vote, and each Class B ordinary share is entitled to five votes and is convertible into one Class A ordinary share at the option of the holder. Class A ordinary shares - Class B ordinary shares - |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
SEGMENT INFORMATION | ||
SEGMENT INFORMATION | 15. SEGMENT INFORMATION The Group’s chief operating decision maker is our Chief Executive Officer who reviews the consolidated results of operations when making decisions about allocating resources and assessing performance of the Group. The Group operates and manages its business as a single segment. Substantially all of the Group’s revenues for the six months ended June 30,2020 and 2021 were generated from the PRC. As of December 31, 2020 and June 30,2021, the majority of long-lived assets of the Group were located in the PRC and Hong Kong. | 16. SEGMENT INFORMATION The Group’s chief operating decision maker is our Chief Executive Officer who reviews the consolidated results of operations when making decisions about allocating resources and assessing performance of the Group. The Group operates and manages its business as a single segment. Substantially all of the Group’s revenues for the years ended December 31, 2018, 2019 and 2020 were generated from the PRC. As of December 31, 2018, 2019 and 2020, the majority of long-lived assets of the Group were located in the PRC and Hong Kong. |
EMPLOYEE BENEFIT PLAN
EMPLOYEE BENEFIT PLAN | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
EMPLOYEE BENEFIT PLAN | ||
EMPLOYEE BENEFIT PLAN | 16. EMPLOYEE BENEFIT PLAN Full time employees of the Group in the PRC participate in a government-mandated defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. The Group accrues for these benefits based on certain percentages of the employees’ salaries. The total contribution for such employee benefits were RMB 32,653 and RMB 23,140 for the six months ended June 30,2020 and 2021, respectively. | 17. EMPLOYEE BENEFIT PLAN Full time employees of the Group in the PRC participate in a government-mandated defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. The Group accrues for these benefits based on certain percentages of the employees’ salaries. The total contribution for such employee benefits were RMB116,281, RMB110,394, and RMB69,370 for the years ended December 31, 2018, 2019 and 2020, respectively. |
STATUTORY RESERVES AND RESTRICT
STATUTORY RESERVES AND RESTRICTED NET ASSETS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
STATUTORY RESERVES AND RESTRICTED NET ASSETS | ||
STATUTORY RESERVES AND RESTRICTED NET ASSETS | 17. STATUTORY RESERVES AND RESTRICTED NET ASSETS In accordance with the PRC laws and regulations, the Group’s PRC subsidiaries and VIEs are required to make appropriation to certain statutory reserves, namely a general 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 Group’s PRC subsidiaries and VIEs 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 each of the Group’s PRC subsidiaries and VIEs. There were no appropriations to these reserves by the Group’s PRC entities for the six months ended June 30,2020 and 2021. As a result of PRC laws and regulations and the requirement that distributions by the PRC entity can only be paid out of distributable profits computed in accordance with PRC GAAP, the PRC entity is restricted from transferring a portion of their net assets to the Company. Amounts restricted include paid-in capital and statutory reserves of the Group’s subsidiaries and VIEs. As of June 30, 2021, the aggregate amounts of paid-in capital, capital reserve and statutory reserves represented the amount of net assets of the relevant entities in the Group not available for distribution amounted to RMB2,779,965. | 18. STATUTORY RESERVES AND RESTRICTED NET ASSETS In accordance with the PRC laws and regulations, the Group’s PRC subsidiaries and VIEs are required to make appropriation to certain statutory reserves, namely a general 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 Group’s PRC subsidiaries and VIEs 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 each of the Group’s PRC subsidiaries and VIEs. There were no appropriations to these reserves by the Group’s PRC entities for the years ended December 31, 2018, 2019 and 2020. As a result of PRC laws and regulations and the requirement that distributions by the PRC entity can only be paid out of distributable profits computed in accordance with PRC GAAP, the PRC entity is restricted from transferring a portion of their net assets to the Company. Amounts restricted include paid-in capital and statutory reserves of the Group’s subsidiaries and VIEs. As of December 31, 2020, the aggregate amounts of paid-in capital, capital reserve and statutory reserves represented the amount of net assets of the relevant entities in the Group not available for distribution amounted to RMB2,779,965. |
NET INCOME (LOSS) PER ORDINARY
NET INCOME (LOSS) PER ORDINARY SHARE | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
NET INCOME (LOSS) PER ORDINARY SHARE | ||
NET INCOME (LOSS) PER ORDINARY SHARE | 18. NET INCOME (LOSS) PER ORDINARY SHARE Basic and diluted net loss per share for each of the years presented were calculated as follows: For six months ended June 30, 2020 2021 RMB RMB Numerator: Net income (loss) attributable to 9F Inc. (741,013) (193,709) Less: Deemed dividend to preferred shareholders — — Undistributed earnings allocated to preferred shareholders — — Net income (loss) attributable to ordinary shareholders for computing net income per ordinary shares-basic (741,013) (193,709) Denominator: Weighted average ordinary shares outstanding used in computing net income per ordinary shares-basic 195,191,000 100,361,432 Net income (loss) per ordinary share attributable to ordinary shareholders-basic (3.80) (1.93) Diluted net income per share calculation Net income (loss) attributable to ordinary shareholders for computing net income per ordinary shares-basic (741,013) (193,709) Add: adjustments to undistributed earnings to participating securities Net income (loss) attributable to ordinary shareholders for computing net income per ordinary shares-dilute (741,013) (193,709) Denominator: Weighted average ordinary shares basic outstanding 195,191,000 100,361,432 Effect of potentially diluted share options Weighted average ordinary shares outstanding used in computing net income per ordinary shares-dilute 195,191,000 100,361,432 Net income (loss) per ordinary share attributable to ordinary shareholders-diluted (3.80) (1.93) | 19. NET INCOME (LOSS) PER ORDINARY SHARE The Group has determined that its preferred shares are participating securities as the preferred shares participate in undistributed earnings on an as-if-converted basis. The holders of the preferred shares are entitled to receive dividends on a pro rata basis, as if their shares had been converted into ordinary shares. Accordingly, the Group uses the two-class method of computing net income per share, for ordinary shares, and preferred shares according to the participation rights in undistributed earnings for the year ended December 31, 2018. For the year ended December 31, 2019, undistributed net loss is not allocated to preferred shares because they are not contractually obligated to participate in the loss allocated to the ordinary shares. There were no preferred shares outstanding for the year ended December 31, 2020. Basic and diluted net loss per share for each of the years presented were calculated as follows: For the years ended December 31, 2018 2019 2020 RMB RMB RMB Numerator: Net income (loss) attributable to 9F Inc. 1,981,804 (2,159,576) (2,258,895) Less: Change in redemption value in Series A preferred shares (17,225) (10,711) — Deemed dividend to preferred shareholders — — — Undistributed earnings allocated to preferred shareholders (244,589) — — Net income (loss) attributable to ordinary shareholders for computing net income per ordinary shares—basic 1,719,990 (2,170,287) (2,258,895) Denominator: Weighted average ordinary shares outstanding used in computing net income per ordinary shares—basic 162,672,800 174,552,468 198,596,879 Net income (loss) per ordinary share attributable to ordinary shareholders—basic 10.57 (12.43) (11.37) Diluted net income per share calculation Net income (loss) attributable to ordinary shareholders for computing net income per ordinary shares—basic 1,719,990 (2,170,287) (2,258,895) Add: adjustments to undistributed earnings to participating securities 27,007 — — Net income (loss) attributable to ordinary shareholders for computing net income per ordinary shares—dilute 1,746,997 (2,170,287) (2,258,895) Denominator: Weighted average ordinary shares basic outstanding 162,672,800 174,552,468 198,596,879 Effect of potentially diluted share options 23,062,400 — — Weighted average ordinary shares outstanding used in computing net income per ordinary shares—dilute 185,735,200 174,552,468 198,596,879 Net income (loss) per ordinary share attributable to ordinary shareholders—diluted 9.41 (12.43) (11.37) For the year ended December 31, 2018, no share options were excluded from the computation of diluted earnings per share as their effects have been anti-dilutive. For the years ended December 31, 2019 and 2020, the effects of all outstanding share options were excluded from the computation of diluted loss per share, as their effects would be anti-dilutive. |
LEASES
LEASES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
LEASES | ||
LEASES | 19. LEASES The Group leases certain office premises and cloud infrastructure to support its core business system under non-cancelable leases. The Group determines if an arrangement is a lease at inception. Some lease agreements contain lease and non-lease components, which the Group chooses not to account for as separate components as the Group has elected the practical expedient. As of June 30,2021, the Group had no long-term leases that were classified as a financing lease. As of June 30,2021, the Group did not have additional operating leases that have not yet commenced. For the six months ended June 30, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 4,350 Non-cash right-of-use assets in exchange for new lease liabilities: Operating leases — Weighted average remaining lease term Operating leases 1.5 Weighted average discount rate Operating leases 5.30 % Short-term lease cost 134 As of June 30,2021, the maturity of operating lease liabilities are as follows: The six months ended June 30,2021: RMB 2021 10,698 2022 14,818 2023 89 2024 — Thereafter — 25,604 Less imputed interest — Total 25,604 Payments under operating leases are expensed on a straight-line basis over the periods of their respective leases. The terms of the leases do not contain rent escalation or contingent rents. For the six months ended June 30, 2021, total rental expense for all operating leases amounted to RMB435,respectively. | 20. LEASES The Group leases certain office premises and cloud infrastructure to support its core business system under non-cancelable leases. The Group determines if an arrangement is a lease at inception. Some lease agreements contain lease and non-lease components, which the Group chooses not to account for as separate components as the Group has elected the practical expedient. As of December 31, 2020, the Group had no long-term leases that were classified as a financing lease. As of December 31, 2020, the Group did not have additional operating leases that have not yet commenced. For the years ended December 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 59,395 Non-cash right-of-use assets in exchange for new lease liabilities: Operating leases 12,285 Weighted average remaining lease term Operating leases 1.5 Weighted average discount rate Operating leases 5.30 % Short-term lease cost 314 As of December 31, 2020, the maturity of operating lease liabilities are as follows: Years ending December 31: RMB 2021 14,862 2022 13,405 2023 2,956 2024 — Thereafter — 31,223 Less imputed interest 1,720 Total 29,503 Payments under operating leases are expensed on a straight-line basis over the periods of their respective leases. The terms of the leases do not contain rent escalation or contingent rents. For the year ended December 31, 2018, 2019, 2020, total rental expense for all operating leases amounted to RMB68,753, RMB71,287, and RMB58,831 respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
COMMITMENTS AND CONTINGENCIES | ||
COMMITMENTS AND CONTINGENCIES | 20. COMMITMENTS AND CONTINGENCIES Contingencies The Group is subject to period legal or administrative proceedings in the ordinary course of business. The Group does not believe that any currently pending legal, except for the legal proceeding disclosed below, or administrative proceeding to which the Group is a party will have a material effect on its business or financial condition. Legal proceedings As disclosed in Note 2, in 2019, the Company partnered with PICC under the direct lending program. In November 2019, PICC stopped paying service fees as agreed in the Cooperation Agreement. PICC further disputed with the Group regarding payments of the service fees under the Cooperation Agreement. The Group has suspended its cooperation with PICC on new loans under its direct lending program since December 2019 and has entered into agreements with other financing guarantee companies in providing guarantee services to the institutional funding partners. In May 2020, the Group commenced a legal proceeding against PICC by submitting a complaint with a local court in Beijing for contract non-performance under the Cooperation Agreement. The Group, together with its legal counsel of the case has determined that PICC has breached its contractual obligation under the Cooperation Agreement for not paying service fees that were due to the Group under the direct lending program. The Group is seeking payments of approximately RMB2.3 billion from PICC to cover the outstanding service fees and related late payment losses. After the Group’s legal action was filed against PICC, PICC filed a civil lawsuit against the Group at a local court in Guangzhou claiming that the second amendment under the Cooperation Agreement is invalid, and therefore PICC is not obligated to pay any outstanding service fees and that a portion of the service fees paid to the Group under the Cooperation Agreement plus accrued interest should be refunded to PICC. After several rounds of jurisdictional objections, the case was finally heard by the local court in Beijing in December 2020. Pretrial conference were hold by Beijing local court for part of the evidence exchange and cross-examination on May 14 and August 27,2021.As of the date of this report, the Group is still waiting for court hearing by the local court in Beijing. The Group is vigorously asserting its rights against PICC and will defend itself against any claims brought against the Group by PICC in the legal proceeding. The Group obtained a legal opinion from a law firm in Beijing who believes that the Group’s claim should have judicial support. As of the date of this report, the legal matter remains at the preliminary stage, and it is not possible at this stage to ascertain the outcome of the lawsuit. As of the date of this report, the Group is involved in 175 civil cases, disputes involving private lending, guarantee, performance infringement, and labor arbitration; the amounts in disputes are approximately RMB209.71 million, RMB6.48 million, RMB5.31 million, and RMB1.1 million, respectively.The cases are at preliminary stage, and it is not possible at this stage to ascertain the outcome of any of the lawsuits. Beginning in September 2020, the Group and certain of our current and former officers, directors and others were named as defendants in various putative securities class actions captioned In re 9F Inc. Securities Litigation, Holland v. 9F Inc. et al. | 21. COMMITMENTS AND CONTINGENCIES Contingencies The Group is subject to period legal or administrative proceedings in the ordinary course of business. The Group does not believe that any currently pending legal, except for the legal proceeding disclosed below, or administrative proceeding to which the Group is a party will have a material effect on its business or financial condition. Legal proceedings As disclosed in Note 2, in 2019, the Company partnered with PICC under the direct lending program. In November 2019, PICC stopped paying service fees as agreed in the Cooperation Agreement. PICC further disputed with the Group regarding payments of the service fees under the Cooperation Agreement. The Group has suspended its cooperation with PICC on new loans under its direct lending program since December 2019 and has entered into agreements with other financing guarantee companies in providing guarantee services to the institutional funding partners. In May 2020, the Group commenced a legal proceeding against PICC by submitting a complaint with a local court in Beijing for contract non-performance under the Cooperation Agreement. The Group, together with its legal counsel of the case has determined that PICC has breached its contractual obligation under the Cooperation Agreement for not paying service fees that were due to the Group under the direct lending program. The Group is seeking payments of approximately RMB2.3 billion from PICC to cover the outstanding service fees and related late payment losses. After the Group’s legal action was filed against PICC, PICC filed a civil lawsuit against the Group at a local court in Guangzhou claiming that the second amendment under the Cooperation Agreement is invalid, and therefore PICC is not obligated to pay any outstanding service fees and that a portion of the service fees paid to the Group under the Cooperation Agreement plus accrued interest should be refunded to PICC. After several rounds of jurisdictional objections, the case was finally heard by the local court in Beijing in December 2020. As of the date of this report, the Group is still waiting for court hearing by the local court in Beijing. The Group is vigorously asserting its rights against PICC and will defend itself against any claims brought against the Group by PICC in the legal proceeding. The Group obtained a legal opinion from a law firm in Beijing who believes that the Group’s claim should have judicial support. As of the date of this report, the legal matter remains at the preliminary stage, and it is not possible at this stage to ascertain the outcome of the lawsuit. As of the date of this report, the Group is involved in 63 civil cases, disputes involving private lending guarantee, performance infringement, and labor arbitration; the amounts in disputes are approximately RMB48.8 million, RMB5.4 million, RMB1.4 million, and RMB1.1 million, respectively.The cases are at preliminary stage, and it is not possible at this stage to ascertain the outcome of any of the lawsuits. Beginning in September 2020, the Group and certain of our current and former officers, directors and others were named as defendants in various putative securities class actions captioned In re 9F Inc. Securities Litigation, Holland v. 9F Inc. et al. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
SUBSEQUENT EVENTS | ||
SUBSEQUENT EVENTS | 21. SUBSEQUENT EVENTS The Group has reviewed its subsequent events through November 03, 2021, the date these consolidated financial statements were issued and has determined that other than the following paragraph and matter discussed in Note 19, no material subsequent events have occurred that require recognition in or disclosure to the consolidated financial statements. | 22. SUBSEQUENT EVENTS The Group has reviewed its subsequent events through May 17, 2021, the date these consolidated financial statements were issued and has determined that other than the following paragraph and matter discussed in Note 21, no material subsequent events have occurred that require recognition in or disclosure to the consolidated financial statements. The Group early terminated an office lease contract with terms from October 1, 2018 to September 30, 2021 in Beijing on March 3,2021 due to its decision to exit its business operations. According to the termination agreement, the Group was required to pay RMB10 million for the default and restoration. The Group paid the RMB10 million on March 26, 2021. COVID-19 impacts Starting from January 2020, a novel strain of coronavirus, COVID-19, has spread worldwide. As COVID-19 has negatively affected the broader Chinese economy and the global economy, China has experienced lower domestic consumption in the first half of 2020, and may experience further economic uncertainty, which may also impact us in a materially negative way. Starting from the fourth quarter of 2020 and extending to the first quarter of 2021, a few waves of COVID-19 infections emerged in various regions of China, and varying levels of travel restrictions were reinstated. Our business has been and is likely to continue to be materially adversely affected by the outbreak of COVID-19 in China. |
SCHEDULE I - FINANCIAL INFORMAT
SCHEDULE I - FINANCIAL INFORMATION OF PARENT COMPANY | 12 Months Ended |
Dec. 31, 2020 | |
SCHEDULE I - FINANCIAL INFORMATION OF PARENT COMPANY | |
SCHEDULE I - FINANCIAL INFORMATION OF PARENT COMPANY | 9F INC. SCHEDULE 1-CONDENSED BALANCE SHEETS (PARENT COMPANY ONLY) (Amounts in thousands except for number of shares and per share data, or otherwise noted) December 31, December 31, December 31, 2019 2020 2020 RMB RMB US$ Assets: Liabilities: Shareholders’ Equity: Class A ordinary shares (US $0.00001 par value; 4,600,000,000 shares authorized; 128,228,600 and 142,348,281 shares issued and outstanding as of December 31, 2019 and 2020, respectively) 1 1 — Class B ordinary shares (US $0.00001 par value; 200,000,000 shares authorized; 66,962,400 and 61,162,400 shares issued and outstanding as of December 31, 2019 and 2020, respectively) 1 1 — Additional paid-in capital 5,241,296 5,531,926 856,786 Retained earnings (deficit) 947,265 (1,356,397) (210,079) Accumulated other comprehensive income 92,220 (6,953) (1,077) Total shareholders’equity 6,280,783 4,168,578 645,630 Total liabilities and shareholders’ equity 6,290,442 4,177,301 646,982 9F INC. SCHEDULE 1-CONDENSED STATEMENTS OF OPERATIONS (PARENT COMPANY ONLY) (Amounts in thousands except for number of shares and per share data, or otherwise noted) Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Equity in earnings (loss) of subsidiaries and VIEs 2,495,935 (1,777,756) (1,855,047) (287,310) Operating costs and expenses (514,144) (371,063) (333,427) (51,640) Provision for contract assets and receivables — (691) — — Interest income 13 4,601 12,183 1,887 Impairment loss of investments — (20,724) (97,892) (15,162) Other income, net — 6,057 15,288 2,368 Net income (loss) 1,981,804 (2,159,576) (2,258,895) (349,857) Net income (loss) per ordinary share Basic 10.57 (12.43) (11.37) (1.76) Diluted 9.41 (12.43) (11.37) (1.76) Weighted average number of ordinary shares used in computing net income (loss) per ordinary share Basic 162,672,800 174,552,468 198,596,879 198,596,879 Diluted 185,735,200 174,552,468 198,596,879 198,596,879 9F INC. SCHEDULE 1 - CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (PARENT COMPANY ONLY) (Amounts in thousands except for number of shares and per share data, or otherwise noted) Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Net income (loss) 1,981,804 (2,159,576) (2,258,895) (349,857) Other comprehensive income Foreign currency transaction adjustments 84,430 12,126 (97,245) (15,360) Unrealized gains (losses) on available-for-sale investments (1,146) (99) — — Comprehensive Income (Loss) 2,065,088 (2,147,549) (2,356,140) (365,217) 9F INC. SCHEDULE 1 - CONDENSED STATEMENTS of CASH FLOW (PARENT COMPANY ONLY) (Amounts in thousands except for number of shares and per share data, or otherwise noted) Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Cash Flows from Operating Activities: Net income (loss) 1,981,804 (2,159,576) (2,258,895) (349,857) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Equity in earnings (loss) of subsidiaries and VIEs (2,495,935) 1,777,756 1,855,047 287,310 Share‑based compensation expense 508,162 353,151 290,630 45,013 Impairment loss of equity securities without readily determinable fair value — 20,725 97,892 15,162 Gain from disposal of equity securities without readily determinable fair value — (6,057) — — Changes in operating assets and liabilities: Other receivables — (377) — — Prepaid expenses and other assets (550) (8,020) 6,667 1,033 Accrued expense and other liabilities 3,551 (3,551) 5,901 914 Amounts due to subsidiaries and VIEs (43) 9,659 (147) (23) Amounts due from subsidiaries and VIEs (707,308) 131,387 45,654 7,071 Net cash provided by (used in) operating activities (710,319) 115,097 42,749 6,623 Cash Flows from Investing Activities: Investment in subsidiaries — (69,149) 18,774 2,908 Loan to related parties (137,510) — (97,514) (15,103) Proceeds from repayment of related parties — 138,163 — — Disposal of long-term investments — 8,289 — — Net cash provided by (used in) investing activities (137,510) 77,303 (78,740) (12,195) Cash Flows from Financing Activities: Proceeds from exercise of share options — — — — Proceeds from convertible redeemable preferred shares 544,785 — — — Net proceeds from initial public offering and from exercising the over—allotment option by the underwriters(net of issuance cost of RMB31,776) — 463,065 — — Net cash provided by financing activities 544,785 463,065 — — Effect of exchange rate changes 87,448 13,173 (122,247) (18,022) Net increase (decrease) in cash and cash equivalents (215,596) 668,638 (152,338) (23,594) Cash and cash equivalents at beginning of year 361,047 145,451 814,089 126,086 Cash and cash equivalents at end of year 145,451 814,089 661,751 102,492 9F INC. SCHEDULE 1 - NOTES TO CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY (PARENT COMPANY ONLY) 1. Schedule I has been provided pursuant to the requirements of Rule 12-04 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 when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. 2. The condensed financial information of 9F Inc. has been prepared using the same accounting policies as set out in the accompanying consolidated financial statements except that the equity method has been used to account for investments in its subsidiaries, VIE and the VIEs subsidiaries. 3. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The footnote disclosures contain supplemental information relating to the operations of the Group and, as such, these statements should be read in conjunction with the notes to the Consolidated Financial Statements of the Group. No dividends were paid by the Group’s subsidiaries to their parent company in 2018, 2019 and 2020. 4. As of December 31, 2020, there were no material contingencies, significant provisions of long-term obligations, and mandatory dividend or redemption requirements of redeemable shares or guarantees of the Group, except for those which have been separately disclosed in the Consolidated Financial Statements, if any. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Basis of presentation | Basis of presentation The accompanying consolidated financial statements of the Group have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”). The interim financial statements are condensed and should be read in conjunction with the Group’s latest annual financial statements and that interim disclosures generally do not repeat those in the annual statements. Revenue presentation in the unaudited interim condensed consolidated financial statements and accompanying notes have been reclassified to conform to the current period’s presentation. The Group had made all adjustments necessary for a fair statement of the results for the interim periods. | Basis of presentation The accompanying consolidated financial statements of the Group have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”). |
Basis of consolidation | Basis of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries and consolidated VIEs, including the VIEs’ subsidiaries, for which the Group is the primary beneficiary. All transactions and balances among the Company, its subsidiaries, the VIEs and the VIEs’ subsidiaries have been eliminated upon consolidation. As PRC laws and regulations prohibit and restrict foreign ownership of internet value-added businesses, the Group operates its internet related business in the PRC through two PRC domestic companies, Jiufu Shuke and Beijing Puhui Lianyin Information Technology Limited (“Beijing Puhui”), whose equity interests are held by certain management members and the Founders of the Group. The Group established four wholly-owned foreign invested subsidiaries in the PRC, Beijing Shuzhi Lianyin Technology Co., Ltd (“Shunzhi Lianyin”), Zhuhai Xiaojin Hulian Technology Co., Ltd (“Xiaojin Hulian”), Zhuhai Wukong Youpin Technology Co., Ltd (“Wukong Youpin”), and Qinghai Fuyuan Network Technology (Shenzhen) Co., Ltd (“Qinghai Fuyuan”, together with Shunzhi Lianyin, Xiaojin Hulian, and Wukong Youpin collectively referred as the “WFOEs”). By entering into a series of agreements (the “VIE Agreements”), the Group, through WFOEs, obtained control over Jiufu Shuke and Beijing Puhui (collectively referred as “VIEs”). The VIE Agreements enable the Group to (1) have power to direct the activities that most significantly affect the economic performance of the VIEs, and (2) receive the economic benefits of the VIEs that could be significant to the VIEs. Accordingly, the Group is considered the primary beneficiary of the VIEs and has consolidated the VIEs’ financial results of operations, assets and liabilities in the Group’s consolidated financial statements. In making the conclusion that the Group is the primary beneficiary of the VIEs, the Group’s rights under the Power of Attorney also provide the Group’s abilities to direct the activities that most significantly impact the VIEs’ economic performance. The Group also believes that this ability to exercise control ensures that the VIEs will continue to execute and renew the Master Exclusive Service Agreement and pay service fees to the Group. By charging service fees to be determined and adjusted at the sole discretion of the Group, and by ensuring that the Master Exclusive Service Agreement is executed and remains effective, the Group has the rights to receive substantially all of the economic benefits from the VIEs. Details of the VIE Agreements, are set forth below: VIE Agreements that were entered to give the Group effective control over the VIEs include: Voting Rights Proxy Agreement and Irrevocable Power of Attorney Under which each shareholder of the VIEs grant to any person designated by WFOEs to act as its attorney-in-fact to exercise all shareholder rights under PRC law and the relevant articles of association, including but not limited to, appointing directors, supervisors and officers of the VIEs as well as the right to sell, transfer, pledge and dispose all or a portion of the equity interest held by such shareholders of the VIEs. The proxy and power of attorney agreements will remain effective as long as WFOEs exist. The shareholders of the VIEs do not have the right to terminate the proxy agreements or revoke the appointment of the attorney-in-fact without written consent of the WFOEs. Exclusive Option Agreement Under which each shareholder of the VIEs granted 9F or any third party designated by 9F the exclusive and irrevocable right to purchase from such shareholders of the VIEs, to the extent permitted by PRC law and regulations, all or part of their respective equity interests in the VIEs for a purchase price equal to the registered capital. The shareholders of the VIEs will then return the purchase price to 9F or any third party designated by 9F after the option is exercised. 9F may transfer all or part of its option to a third party at its own option. The VIEs and its shareholders agree that without prior written consent of 9F, they may not transfer or otherwise dispose the equity interests or declare any dividends. The restated option agreement will remain effective until 9F or any third party designated by 9F acquires all equity interest of the VIEs. Spousal Consent The spouse of each shareholder of the VIEs has entered into a spousal consent letter to acknowledge that he or she consents to the disposition of the equity interests held by his or her spouse in the VIEs in accordance with the exclusive option agreement, the power of attorney and the equity pledge agreement regarding VIE structure described above, and any other supplemental agreement(s) may be consented by his or her spouse from time to time. Each such spouse further agrees that he or she will not take any action or raise any claim to interfere with the arrangements contemplated under the mentioned agreements. In addition, each such spouse further acknowledges that any right or interest in the equity interests held by his or her spouse in the VIEs do not constitute property jointly owned with his or her spouse and each such spouse unconditionally and irrevocably waives any right or interest in such equity interests. Loan Agreement Pursuant to the loan agreements between WFOEs and each shareholder of the VIEs, WFOEs extended loans to the shareholders of the VIEs, who had contributed the loan principal to the VIEs as registered capital. The shareholders of VIEs may repay the loans only by transferring their respective equity interests in VIEs to 9F Inc. or its designated person(s) pursuant to the exclusive option agreements. These loan agreements will remain effective until the date of full performance by the parties of their respective obligations thereunder. VIE Agreements that enables the Group to receive substantially all of the economic benefits from the VIEs include: Equity Interest Pledge Agreement Pursuant to equity interest pledge agreement, each shareholder of the VIEs has pledged all of his or her equity interest held in the VIEs to WFOEs to secure the performance by VIEs and their shareholders of their respective obligations under the contractual arrangements, including the payments due to WFOEs for services provided. In the event that the VIEs breach any obligations under these agreements, WFOEs as the pledgees, will be entitled to request immediate disposal of the pledged equity interests and have priority to be compensated by the proceeds from the disposal of the pledged equity interests. The shareholders of the VIEs shall not transfer their equity interests or create or permit to be created any pledges without the prior written consent of WFOEs. The equity interest pledge agreement will remain valid until the master exclusive service agreement and the relevant exclusive option agreements and proxy and power of attorney agreements, expire or terminate. Master Exclusive Service Agreement Pursuant to exclusive service agreement, WFOEs have the exclusive right to provide the VIEs with technical support, consulting services and other services. WFOEs shall exclusively own any intellectual property arising from the performance of the agreement. During the term of this agreement, the VIEs may not accept any services covered by this agreement provided by any third party. The VIEs agree to pay service fees to be determined and adjusted at the sole discretion of the WFOEs. The agreement will remain effective unless WFOEs terminate the agreement in writing. | Basis of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries and consolidated VIEs, including the VIEs’ subsidiaries, for which the Group is the primary beneficiary. All transactions and balances among the Company, its subsidiaries, the VIEs and the VIEs’ subsidiaries have been eliminated upon consolidation. As PRC laws and regulations prohibit and restrict foreign ownership of internet value-added businesses, the Group operates its internet related business in the PRC through two PRC domestic companies, Jiufu Shuke and Beijing Puhui Lianyin Information Technology Limited (“Beijing Puhui”), whose equity interests are held by certain management members and the Founders of the Group. The Group established four wholly-owned foreign invested subsidiaries in the PRC, Beijing Shuzhi Lianyin Technology Co., Ltd (“Shunzhi Lianyin”), Zhuhai Xiaojin Hulian Technology Co., Ltd (“Xiaojin Hulian”), Zhuhai Wukong Youpin Technology Co., Ltd (“Wukong Youpin”), and Qinghai Fuyuan Network Technology (Shenzhen) Co., Ltd (“Qinghai Fuyuan”, together with Shunzhi Lianyin, Xiaojin Hulian, and Wukong Youpin collectively referred as the “WFOEs”). By entering into a series of agreements (the “VIE Agreements”), the Group, through WFOEs, obtained control over Jiufu Shuke and Beijing Puhui (collectively referred as “VIEs”). The VIE Agreements enable the Group to (1) have power to direct the activities that most significantly affect the economic performance of the VIEs, and (2) receive the economic benefits of the VIEs that could be significant to the VIEs. Accordingly, the Group is considered the primary beneficiary of the VIEs and has consolidated the VIEs’ financial results of operations, assets and liabilities in the Group’s consolidated financial statements. In making the conclusion that the Group is the primary beneficiary of the VIEs, the Group’s rights under the Power of Attorney also provide the Group’s abilities to direct the activities that most significantly impact the VIEs’ economic performance. The Group also believes that this ability to exercise control ensures that the VIEs will continue to execute and renew the Master Exclusive Service Agreement and pay service fees to the Group. By charging service fees to be determined and adjusted at the sole discretion of the Group, and by ensuring that the Master Exclusive Service Agreement is executed and remains effective, the Group has the rights to receive substantially all of the economic benefits from the VIEs. Details of the VIE Agreements, are set forth below: VIE Agreements that were entered to give the Group effective control over the VIEs include: Voting Rights Proxy Agreement and Irrevocable Power of Attorney Under which each shareholder of the VIEs grant to any person designated by WFOEs to act as its attorney-in-fact to exercise all shareholder rights under PRC law and the relevant articles of association, including but not limited to, appointing directors, supervisors and officers of the VIEs as well as the right to sell, transfer, pledge and dispose all or a portion of the equity interest held by such shareholders of the VIEs. The proxy and power of attorney agreements will remain effective as long as WFOEs exist. The shareholders of the VIEs do not have the right to terminate the proxy agreements or revoke the appointment of the attorney-in-fact without written consent of the WFOEs. Exclusive Option Agreement Under which each shareholder of the VIEs granted 9F or any third party designated by 9F the exclusive and irrevocable right to purchase from such shareholders of the VIEs, to the extent permitted by PRC law and regulations, all or part of their respective equity interests in the VIEs for a purchase price equal to the registered capital. The shareholders of the VIEs will then return the purchase price to 9F or any third party designated by 9F after the option is exercised. 9F may transfer all or part of its option to a third party at its own option. The VIEs and its shareholders agree that without prior written consent of 9F, they may not transfer or otherwise dispose the equity interests or declare any dividends. The restated option agreement will remain effective until 9F or any third party designated by 9F acquires all equity interest of the VIEs. Spousal Consent The spouse of each shareholder of the VIEs has entered into a spousal consent letter to acknowledge that he or she consents to the disposition of the equity interests held by his or her spouse in the VIEs in accordance with the exclusive option agreement, the power of attorney and the equity pledge agreement regarding VIE structure described above, and any other supplemental agreement(s) may be consented by his or her spouse from time to time. Each such spouse further agrees that he or she will not take any action or raise any claim to interfere with the arrangements contemplated under the mentioned agreements. In addition, each such spouse further acknowledges that any right or interest in the equity interests held by his or her spouse in the VIEs do not constitute property jointly owned with his or her spouse and each such spouse unconditionally and irrevocably waives any right or interest in such equity interests. Loan Agreement Pursuant to the loan agreements between WFOEs and each shareholder of the VIEs, WFOEs extended loans to the shareholders of the VIEs, who had contributed the loan principal to the VIEs as registered capital. The shareholders of VIEs may repay the loans only by transferring their respective equity interests in VIEs to 9F Inc. or its designated person(s) pursuant to the exclusive option agreements. These loan agreements will remain effective until the date of full performance by the parties of their respective obligations thereunder. VIE Agreements that enables the Group to receive substantially all of the economic benefits from the VIEs include: Equity Interest Pledge Agreement Pursuant to equity interest pledge agreement, each shareholder of the VIEs has pledged all of his or her equity interest held in the VIEs to WFOEs to secure the performance by VIEs and their shareholders of their respective obligations under the contractual arrangements, including the payments due to WFOEs for services provided. In the event that the VIEs breach any obligations under these agreements, WFOEs as the pledgees, will be entitled to request immediate disposal of the pledged equity interests and have priority to be compensated by the proceeds from the disposal of the pledged equity interests. The shareholders of the VIEs shall not transfer their equity interests or create or permit to be created any pledges without the prior written consent of WFOEs. The equity interest pledge agreement will remain valid until the master exclusive service agreement and the relevant exclusive option agreements and proxy and power of attorney agreements, expire or terminate. Master Exclusive Service Agreement Pursuant to exclusive service agreement, WFOEs have the exclusive right to provide the VIEs with technical support, consulting services and other services. WFOEs shall exclusively own any intellectual property arising from the performance of the agreement. During the term of this agreement, the VIEs may not accept any services covered by this agreement provided by any third party. The VIEs agree to pay service fees to be determined and adjusted at the sole discretion of the WFOEs. The agreement will remain effective unless WFOEs terminate the agreement in writing. |
Risks in relation to the VIE structure | Risks in relation to the VIE structure The Group believes that the contractual arrangements with the VIEs and their current shareholders are in compliance with PRC laws and regulations and are legally enforceable. However, uncertainties in the PRC legal system could limit the Group’s ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government could: ● Revoke the business and operating licenses of the Group’s PRC subsidiaries or consolidated affiliated entities; ● Discontinue or restrict the operations of any related-party transactions among the Group’s PRC subsidiaries or consolidated affiliated entities; ● Impose fines or other requirements on the Group’s PRC subsidiaries or consolidated affiliated entities; ● Require the Group’s PRC subsidiaries or consolidated affiliated entities to revise the relevant ownership structure or restructure operations; and/or; ● Restrict or prohibit the Group’s use of the proceeds of the additional public offering to finance the Group’s business and operations in China; ● Shut down the Group’s servers or blocking the Group’s online platform; ● Discontinue or place restrictions or onerous conditions on the Group’s operations; and/or ● Require the Group to undergo a costly and disruptive restructuring. The Group’s ability to conduct its business may be negatively affected if the PRC government were to carry out any of the aforementioned actions. As a result, the Group may not be able to consolidate the VIEs in its consolidated financial statements as it may lose the ability to exert effective control over the VIEs and its shareholders, and it may lose the ability to receive economic benefits from the VIEs. The Group currently does not believe that any penalties imposed or actions taken by the PRC government would result in the liquidation of the Company, WFOEs, or the VIEs. The following table sets forth the assets, liabilities, results of operations and cash flows of the VIEs and their subsidiaries, which are included in the Group’s consolidated financial statements after the elimination of intercompany balances and transactions: As of December 31, As of June 30, 2020 2021 RMB RMB Assets: Cash and cash equivalents 1,501,733 1,293,615 Term deposits 135,000 105,000 Investment in marketable securities — 77,109 Accounts receivable, net 9,888 45,957 Other receivables, net 68,742 144,449 Loan receivables, net 221,200 163,200 Prepaid expenses and other assets 740,959 837,041 Contracts assets, net 10,374 6,494 Long‑term investments, net 491,510 489,727 Operating lease right-of-use assets, net 18,611 16,130 Property, equipment and software, net 51,701 39,507 Goodwill, net 72,304 72,304 Intangible assets, net 40,187 38,700 Total assets 3,362,209 3,329,233 Liabilities: Deferred revenue 81,246 9,904 Payroll and welfare payable 29,152 12,614 Income taxes payable 224,533 238,179 Accrued expenses and other liabilities 238,170 274,219 Operating lease liabilities 19,100 15,408 Amounts due to related parties 24,146 23,967 Deferred tax liabilities 5,742 5,392 Total liabilities 622,089 579,683 For the six months ended June 30, 2020 2021 RMB RMB Net revenues 787,925 332,913 Net income (loss) (406,710) 10,552 For the six months ended June 30, 2020 2021 RMB RMB Net cash provided by (used in) operating activities (175,504) (228,263) Net cash used in investing activities (396,186) 20,145 Net cash provided by (used in) financing activities — — Under the VIE Arrangements, the Group has the power to direct activities of the VIEs and can have assets transferred out of the VIEs. Therefore, the Group considers that there is no asset in the VIEs that can be used only to settle obligations of the VIEs, except for assets that correspond to the amount of the registered capital and PRC statutory reserves, if any. As the VIEs are incorporated as limited liability companies under the Company Law of the PRC, creditors of the VIEs do not have recourse to the general credit of the Group for any of the liabilities of the VIEs. Currently there is no contractual arrangement which requires the Group to provide additional financial support to the VIEs. However, as the Group conducts its businesses primarily based on the licenses held by the VIEs, the Group has provided and will continue to provide financial support to the VIEs. Revenue-producing assets held by the VIEs include certain internet content provision (“ICP”) licenses and other licenses, domain names and trademarks. The ICP licenses and other licenses are required under relevant PRC laws, rules and regulations for the operation of internet businesses in the PRC, and therefore are integral to the Group’s operations. The ICP licenses require that core PRC trademark registrations and domain names are held by the VIEs that provide the relevant services. The VIE contributed an aggregate of 92.87% and 84.72% of the consolidated net revenues for six months ended June 30,2020 and 2021 respectively. As of December 31, 2020 and June 30,2021, the VIE accounted for an aggregate of 62.42% and 64.41% respectively, of the consolidated total assets, and 53.48% and 50.81%, respectively, of the consolidated total liabilities. The assets that were not associated with the VIE primarily consist of cash and cash equivalents. | Risks in relation to the VIE structure The Group believes that the contractual arrangements with the VIEs and their current shareholders are in compliance with PRC laws and regulations and are legally enforceable. However, uncertainties in the PRC legal system could limit the Group’s ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government could: ● Revoke the business and operating licenses of the Group’s PRC subsidiaries or consolidated affiliated entities; ● Discontinue or restrict the operations of any related-party transactions among the Group’s PRC subsidiaries or consolidated affiliated entities; ● Impose fines or other requirements on the Group’s PRC subsidiaries or consolidated affiliated entities; ● Require the Group’s PRC subsidiaries or consolidated affiliated entities to revise the relevant ownership structure or restructure operations; and/or; ● Restrict or prohibit the Group’s use of the proceeds of the additional public offering to finance the Group’s business and operations in China; ● Shut down the Group’s servers or blocking the Group’s online platform; ● Discontinue or place restrictions or onerous conditions on the Group’s operations; and/or ● Require the Group to undergo a costly and disruptive restructuring. The Group’s ability to conduct its business may be negatively affected if the PRC government were to carry out any of the aforementioned actions. As a result, the Group may not be able to consolidate the VIEs in its consolidated financial statements as it may lose the ability to exert effective control over the VIEs and its shareholders, and it may lose the ability to receive economic benefits from the VIEs. The Group currently does not believe that any penalties imposed or actions taken by the PRC government would result in the liquidation of the Company, WFOEs, or the VIEs. The following table sets forth the assets, liabilities, results of operations and cash flows of the VIEs and their subsidiaries, which are included in the Group’s consolidated financial statements after the elimination of intercompany balances and transactions: As of December 31, 2019 2020 RMB RMB Assets: Cash and cash equivalents 2,766,981 1,501,733 Term deposits 24,000 135,000 Accounts receivable, net 267,277 9,888 Other receivables, net 81,525 68,742 Loan receivables, net 729,798 221,200 Amounts due from related parties 50,000 — Prepaid expenses and other assets 1,085,197 740,959 Contracts assets, net 24,814 10,374 Long‑term investments, net 293,441 491,510 Operating lease right-of-use assets, net 113,606 18,611 Property, equipment and software, net 95,783 51,701 Goodwill, net 72,224 72,304 Intangible assets, net 45,362 40,187 Deferred tax assets, net 503,078 — Total assets 6,153,086 3,362,209 Liabilities: Deferred revenue 772,340 81,246 Payroll and welfare payable 35,958 29,152 Income taxes payable 303,684 224,533 Accrued expenses and other liabilities 1,056,128 238,170 Operating lease liabilities 119,005 19,100 Amounts due to related parties 29,902 24,146 Deferred tax liabilities 13,200 5,742 Total liabilities 2,330,217 622,089 For the years ended December 31, 2018 2019 2020 RMB RMB RMB Net revenues 5,270,948 4,305,272 1,145,210 Net income (loss) 2,702,469 (1,551,509) (1,479,883) For the years ended December 31, 2018 2019 2020 RMB RMB RMB Net cash provided by (used in) operating activities 2,906,094 (439,357) (753,416) Net cash used in investing activities (803,155) (1,315,875) (511,832) Net cash provided by (used in) financing activities 1,000 (5,188) — Under the VIE Arrangements, the Group has the power to direct activities of the VIEs and can have assets transferred out of the VIEs. Therefore, the Group considers that there is no asset in the VIEs that can be used only to settle obligations of the VIEs, except for assets that correspond to the amount of the registered capital and PRC statutory reserves, if any. As the VIEs are incorporated as limited liability companies under the Company Law of the PRC, creditors of the VIEs do not have recourse to the general credit of the Group for any of the liabilities of the VIEs. Currently there is no contractual arrangement which requires the Group to provide additional financial support to the VIEs. However, as the Group conducts its businesses primarily based on the licenses held by the VIEs, the Group has provided and will continue to provide financial support to the VIEs. Revenue-producing assets held by the VIEs include certain internet content provision (“ICP”) licenses and other licenses, domain names and trademarks. The ICP licenses and other licenses are required under relevant PRC laws, rules and regulations for the operation of internet businesses in the PRC, and therefore are integral to the Group’s operations. The ICP licenses require that core PRC trademark registrations and domain names are held by the VIEs that provide the relevant services. The VIE contributed an aggregate of 94.86%, 97.30% and 91.18% of the consolidated net revenues for the year ended December 31, 2018, 2019 and 2020, respectively. As of December 31, 2019 and 2020, the VIE accounted for an aggregate of 69.29% and 62.42% respectively, of the consolidated total assets, and 91.29% and 53.48%, respectively, of the consolidated total liabilities. The assets that were not associated with the VIE primarily consist of cash and cash equivalents. |
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 are estimates and judgments applied in revenue recognition, allowance for receivables, impairment loss of investments, share-based compensation and realization of deferred tax assets. Actual results may differ materially from these 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 are estimates and judgments applied in revenue recognition, allowance for receivables, impairment loss of investments, share-based compensation and realization of deferred tax assets. Actual results may differ materially from these estimates. |
Revenue recognition | Revenue recognition The Group follows the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers The core principle of Topic 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Online Lending Information Intermediary Services revenue Through its online platform, the Group provides intermediary services on the personal financing product, One Card, under which the holders of One Card can apply for loans on a revolving basis (“revolving loan products”). The Group also provides one-time loan facilitation services to meet various consumption needs (“non-revolving loan product”). For revolving loan products and non-revolving loan products, the Group’s services provided consist of: a) Matching marketplace investors to potential qualified borrowers and facilitating the execution of loan agreements between the parties (referred to as “loan facilitation service”); and b) Providing repayment processing services for the marketplace investors and borrowers over the loan term, including repayment reminders and following up on late repayments (referred to as “post origination services”). The Group has determined that it is not the legal lender or borrower in the loan origination and repayment process, but acting as an intermediary to bring the lender and the borrower together. Therefore, the Group does not record the loans receivable or payable arising from the loans facilitated between the investors and borrowers on its platform. The Group considers its customers to be both the investors and borrowers. The Group considers the loan facilitation service and post origination services as two separate services, which represent two separate performance obligations under Topic 606, as these two deliverables are distinct in that customers can benefit from each service on its own and the Group’s promises to deliver the services are separately identifiable from each other in the contract. The Group determines the total transaction price to be the service fees chargeable from the borrowers and investors. The transaction price is allocated to the loan facilitation services and post origination services using their relative standalone selling prices consistent with the guidance in Topic 606. The Group does not have observable standalone selling price information for the loan facilitation services or post origination services because it does not provide loan facilitation services or post origination services on a standalone basis. There is no direct observable standalone selling price for similar services in the market that is reasonably available to the Group. As a result, the Group uses an expected plus margin approach to estimate the standalone selling prices of loan facilitation services and post origination services as the basis of revenue allocation, which involves significant judgements. In estimating its standalone selling price for the loan facilitation services and post origination services, the Group considers the cost incurred to deliver such services, profit margin for similar arrangements, customer demand, effect of competitors on the Group’s services, and other market factors. For each type of service, the Group recognizes revenue when (or as) the entity satisfies the service/performance obligation by transferring a promised good or service (that is, an asset) to a customer. Revenues from loan facilitation are recognized at the time a loan is originated between the investor and the borrower and the principal loan balance is transferred to the borrower, at which time the loan facilitation service is considered completed. Revenues from post origination services are recognized on a straight-line basis over the term of the underlying loans as the services are provided ratably on a monthly basis. A majority of the service fee is charged to the borrowers, which is collected upfront upon at the loan inception or collected over the loan term. Investors pay service fees to the Group either at the beginning and at the end of the investment commitment period (in terms of automated investing tools) or over the terms of the loan (in terms of self-directing investing tools). In 2018, 2019 and 2020, service fees charged at the beginning or at the end of the investment commitment period or over the terms of the loans in the periods presented were calculated to be equal to an annualized interest rate ranging from 0.5% to 1.5% based on the investment amount and the investment term. Service fees charged to borrowers and investors, including the service fees charged to investors collected at the end of the investment commitment period or over the terms of the loans in the periods presented, were combined as contract price to be allocated to the two performance obligations relating to loan facilitation services and post-origination services, and recognized as revenue when the relevant services are delivered. Revenue recognized related to service fees not yet received from investors that will be collected at the end of the investment commitment period and over the commitment period are recorded as accounts receivable. All service fees are fixed and not refundable. Revenue recognized is recorded net of value added tax (“VAT”). Remaining performance obligations represent the amount of the transaction price for which service has not been performed under post-origination services. In June 2021, the Group ceased publishing information relating to new offerings of investment opportunities in fixed income products for investors on its online lending information intermediary platform. Pursuant to certain collaboration arrangements entered into by the Group and a licensed asset management company, the rights of investors in existing loans underlying the fixed income products will be transferred to the asset management company. After such transfer, the outstanding balance of loans facilitated shall become nil, and the asset management company will provide existing investors with services in relation to the return of their remaining investment in loans. Direct lending program revenue Through its direct lending program, the Group provides traffic referral services to financial institution partners, allowing the financial institution partners to gain access to borrowers who passed the Group’s risk assessment. The Group’s services provided consist of: a) Matching financial institution partners to potential qualified borrowers, and facilitating the execution of loan agreements between the parties (also referred to as “loan facilitation service”); and b) Providing repayment processing services for the financial institution partners and borrowers over the loan term, including repayment reminders and loan collection (also referred to as “post origination services”). Consistent with the revenue recognition policy under the online lending information intermediary services model, the Group has determined that it is not the legal lender or borrower in the loan origination and repayment process, but acting as an intermediary to bring the lender and the borrower together. Therefore, the Group does not record the loans receivable or payable arising from the loans facilitated between the financial institution partners and borrowers. The Group considers its customers to be both the financial institution partners and borrowers. The Group considers the loan facilitation service and post origination service as two separate performance obligations. The Group determines the total transaction price to be the service fees chargeable from the borrowers or the financial institution partners, which is the contracted price adjusted for variable consideration such as potential loan prepayment by the borrows that could reduce the total transaction price, which is estimated using the expected value approach based on historical data and current trends of prepayments of the borrowers. Then the transaction price is allocated to the loan facilitation services and post origination services using their relative standalone selling prices consistent with the guidance in Topic 606, similar to online lending information intermediary services revenue. For each type of service, the Group recognizes revenue when (or as) the entity satisfies the service/performance obligation by transferring the promised service to customers. Revenues from loan facilitation services are recognized at the time a loan is originated between the financial institution 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 origination services are recognized on a straight-line basis over the term of the underlying loans as the services are provided ratably on a monthly basis. Since April 2019, the Group has stopped charging service fees directly to the borrowers under its direct lending program. Instead, the Group started to charge service fees either directly to the institutional funding partners, or indirectly through third-party guarantee companies who provide guarantee services, or the insurance company who provided credit insurance to the institutional funding partners on their loans to the borrowers. The Group concluded this change did not alter the substance of the services it provided to borrowers and financial institution partners under the direct lending program, and therefore would not impact how revenue was recognized. In 2019, under a cooperation agreement, as amended (the “Cooperation Agreement”), the Group predominantly partnered with PICC Property and Casualty Company Limited Guangdong Branch (“PICC”) who provided the credit insurance service to institutional funding partners on the loan origination, PICC collected all of the loan facilitation service fees and remitted the Group’s portion of the service fees to the Group. The Group recorded an account receivable for the service fees confirmed and to be remitted by PICC. Technical services The Group offers technical services to customers including technology empowerment services, operation and marketing support services, customized software development, etc. Technology empowerment services to customers with respect to user acquisition, risk management, consumption scenario perception and comprehension and data modeling. Technical services generate revenues primarily from fixed-price short-term contracts, revenue generated from technology empowerment services, operation and marketing support services is generally recognized over time on a ratable basis. Revenue generated from technology customized software development is recognized when control over the customized software has been transferred to the customer. Wealth management services Through its internet securities service platform,the Group provides Internet Securities Service, Insurance Brokerage Service and Small consumptive business in Southeast Asia. The Group offers convenient and effective global asset allocation services, especially offshore securities investment services, to individual investors so as to connect them with Hong Kong and U.S. stock markets.Internet Securities Service generated revenue from commissions through customers’ transactions in stocks by providing brokerage service for its customers. The Group enters into insurance brokerage service contracts with insurance companies with a pre-agreed commission. The commissions is normally calculated as a percentage (which varies depending on the type of insurance products involved) of the premium to the insurance companies from sales facilitated by the group in respect of an insurance product.For insurance brokerage service, the single performance obligation identified is to provide facilitation service to the insurance companies. For each type of service, the Group recognizes revenue when (or as) the entity satisfies the service/performance obligation by transferring the promised service to customers. The Internet Securities Service is recognized at a point in time on the trade date when the performance obligation is satisfied. The brokerage service commission are earned when each individual insurance transaction is completed. Other revenues Other revenues mainly include product sales revenues from online sales of goods, customer referral and government subsidy income,etc. The Group generates product sales revenues primarily through selling of merchandise via its online shopping platform, 9F One Mall (“online agent model”), and through selling of upscale products via third party platforms (“online direct sales model”). Under online agent model, customers can buy merchandise provided by third-party merchandise suppliers on our 9F One Mall. The Group does not control the merchandise, but rather is acting as an agent for the suppliers. Revenue is recognized for the net amount of consideration the Group is entitled to retain in exchange for the agent service. The Group commenced the operations of the online direct sales model in the first quarter of 2019 and terminated the operations of the online direct sales model in the third quarter of 2019. Under the online direct sales model, revenue is recognized on a gross basis as the Group controls the merchandise before it is transferred to the customers, which is indicated by (i) the Group is primarily responsible for fulfilling the promise to provide the specified upscale products to the customers; (ii) the Group bears inventory risk; and (iii) the Group has discretion in establishing price. Cash incentives To expand market presence, the Group voluntarily provides cash incentives in the form of cash coupons to new and existing investors during its marketing activities. These coupons are not related to prior transactions, and can only be utilized in conjunction with subsequent lending activities. The cash incentives provided are accounted as a reduction of the transaction price according to ASC 606 10 32 25. Cash incentives paid to existing investors, cash incentives paid to new investors, and cash incentives recognized as a reduction of revenue for six months ended June 30, 2020 was RMB 61.7 1.86 64.4 Value added taxes (“VAT”) The Group is subject to value added tax, or VAT, at a rate of 16% from May 1,2018 to March 31,2019 and 13% thereafter on sales of products, and at a rate of 6% on services rendered by the Group, less any deductible VAT the Group has already paid or borne, except for entities qualified as small-scale taxpayers at a VAT rate of 3% without any deduction. Since April 1, 2019, the Group has been subject to an additional 10% deductible VAT. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. VAT is reported as a deduction to revenue when incurred and amounted to RMB 101,869 102,953 Disaggregation of revenues The Group generates revenues primarily from loan facilitation and post-origination services provided to investors, borrowers and financial institution partners through its online lending information intermediary services and direct lending program for the six months ended June 30,2020. The Group generates revenues from thehnical services and wealth management service provided to the customers during the six months ended June 30,2020 and 2021. The Group also generates other revenues, such as penalty fees charged to borrowers for late payment, product sales revenues from online sales of goods, and other service revenues. The following table provides further disaggregation by types of revenues recognized for the six months ended June 30,2020 and 2021: Loan Post facilitation origination Technical Wealth Other For the six months ended June 30,2020 services services services management revenues Total RMB RMB RMB RMB RMB RMB Online lending platform revenue Online lending information intermediary services revenue Revolving loan products (One Card) 133,743 48,815 — — — 182,558 Non‑revolving loan products Direct lending program revenue 94,049 481,417 — — — 575,466 Other revenue 10,067 62,360 17,979 90,406 Total 227,792 530,232 10,067 62,360 17,979 848,430 Loan Post facilitation origination Technical Wealth Other For the six months ended June 30,2021 services services services management revenues Total RMB RMB RMB RMB RMB RMB Online lending platform revenue Online lending information intermediary services revenue Revolving loan products (One Card) — 68,826 — — — 68,826 Non‑revolving loan products Direct lending program revenue — 9,178 — — — 9,178 Other revenue 164,497 61,362 89,093 314,952 Total — 78,004 164,497 61,362 89,093 392,956 The Group manages its business through a comprehensive offering of financial products and services tailored to the needs of the investors, borrowers and customers. These financial products are categorized by the Group as Online Lending platform revenue, wealth management products and others. The following table illustrates the disaggregation of revenues by product offering for the six months ended June 30,2020 and 2021: June 30, June 30, 2020 2021 RMB RMB Online Lending platform revenue 758,024 78,004 Technical services 10,067 164,497 Wealth management services 62,360 61,362 Others 17,979 89,093 Total 848,430 392,956 Deferred Revenue Deferred revenue consists of post origination service fees received or receivable from borrowers, investors and financial institution partners for which services have not yet been provided. Deferred revenues is recognized ratably as revenue when the post-origination services are delivered during the loan period. Revenue recognized during the six months ended June 30,2021 that was included in the deferred revenue balance at the beginning of the year was RMB72,564. In December 2018, China National Internet Finance Rectification Office and the National Online Lending Rectification Office jointly issued the Guidance on the Classification and Disposal of Risks of Online Lending Information Intermediaries and Risk Prevention (“Circular 175”). Circular 175 tightens the regulation of the industry by requiring institutions other than normal intermediaries, including shell intermediaries with no substantive operations, small-scale intermediaries, intermediaries with high risks, and intermediaries that are unable to repay investors or otherwise unable to operate their businesses, to exit the online lending information intermediary industry. In light of the tightening regulatory environment, the Group significantly decreased online lending information intermediary services during the year ended December 31, 2020. The Group launched re-designed investment programs by transferring their creditor’s rights to a licensed asset management company named Ningxia Shunyi Asset Management Co. Ltd (“Ningxia Shunyi”). By opting for the Group’s new investment programs, individual investors authorized our platform to transfer its creditor’s rights to Ningxia Shunyi on their behalf at the individual investors’ option. On August 24,2020, the Group signed the asset management agreement and supplementary agreement with Ningxia Shunyi. According to the agreement, after the completion of the creditor’s rights transfer, Ningxia Shunyi and other third party will provide services, including intermediary or management services. Contract assets, net Contract assets are attributable to loan products to borrowers under our online lending platform, the Group is entitled to payment of service fees when repayment of loans is received from the borrowers. Contract assets are recorded under these arrangements when the Group provides the loan facilitation and post origination services but before the payments are due. Contract assets are stated at the historical carrying amount net of write-off and allowance for collectability in accordance with ASC Topic 310. The Group established an allowance for uncollectible contract assets based on estimates, historical experience and other factors surrounding the credit risk of specific customers similar to borrowers related to the financial institution partners. The Group evaluates and adjusts its allowance for uncollectible contract assets on a quarterly basis or more often as necessary. Uncollectible contract assets are written off when the consideration entitled by the Group is due and the Group has determined the balance will not be collected. The Group recognizes contract assets only to the extent that the Group believes it is probable that they will collect substantially all of the consideration to which it will be entitled in exchange for the services transferred to the customer. The following table presents the contract assets from loan facilitation services and post origination services: December 31, June 30, 2020 2021 RMB RMB Contract assets from loan facilitation services and post origination services 25,123 20,815 Less: Allowance for loss for collectability (14,749) (14,321) Total 10,374 6,494 The following table presents the movement of allowance for loss for contract assets for the years ended December 31, 2020 and for the six years ended June 30, 2021: December 31, June 30, 2020 2021 RMB RMB Balance at beginning of the year 2,255 14,749 Provision/(Reversal) for doubtful contract assets 18,605 (428) Write-offs (6,111) — Balance at end of the year 14,749 14,321 Practical Expedients and Exemptions The Group generally expenses sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within sales and marketing expenses. | Revenue recognition The Group follows the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers The core principle of Topic 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Online Lending Information Intermediary Services revenue Through its online platform, the Group provides intermediary services on the personal financing product, One Card, under which the holders of One Card can apply for loans on a revolving basis (“revolving loan products”). The Group also provides one-time loan facilitation services to meet various consumption needs (“non-revolving loan product”). For revolving loan products and non-revolving loan products, the Group’s services provided consist of: a) Matching marketplace investors to potential qualified borrowers and facilitating the execution of loan agreements between the parties (referred to as “loan facilitation service”); and b) Providing repayment processing services for the marketplace investors and borrowers over the loan term, including repayment reminders and following up on late repayments (referred to as “post origination services”). The Group has determined that it is not the legal lender or borrower in the loan origination and repayment process, but acting as an intermediary to bring the lender and the borrower together. Therefore, the Group does not record the loans receivable or payable arising from the loans facilitated between the investors and borrowers on its platform. The Group considers its customers to be both the investors and borrowers. The Group considers the loan facilitation service and post origination services as two separate services, which represent two separate performance obligations under Topic 606, as these two deliverables are distinct in that customers can benefit from each service on its own and the Group’s promises to deliver the services are separately identifiable from each other in the contract. The Group determines the total transaction price to be the service fees chargeable from the borrowers and investors. The transaction price is allocated to the loan facilitation services and post origination services using their relative standalone selling prices consistent with the guidance in Topic 606. The Group does not have observable standalone selling price information for the loan facilitation services or post origination services because it does not provide loan facilitation services or post origination services on a standalone basis. There is no direct observable standalone selling price for similar services in the market that is reasonably available to the Group. As a result, the Group uses an expected plus margin approach to estimate the standalone selling prices of loan facilitation services and post origination services as the basis of revenue allocation, which involves significant judgements. In estimating its standalone selling price for the loan facilitation services and post origination services, the Group considers the cost incurred to deliver such services, profit margin for similar arrangements, customer demand, effect of competitors on the Group’s services, and other market factors. For each type of service, the Group recognizes revenue when (or as) the entity satisfies the service/performance obligation by transferring a promised good or service (that is, an asset) to a customer. Revenues from loan facilitation are recognized at the time a loan is originated between the investor and the borrower and the principal loan balance is transferred to the borrower, at which time the loan facilitation service is considered completed. Revenues from post origination services are recognized on a straight-line basis over the term of the underlying loans as the services are provided ratably on a monthly basis. A majority of the service fee is charged to the borrowers, which is collected upfront upon at the loan inception or collected over the loan term. Investors pay service fees to the Group either at the beginning and at the end of the investment commitment period (in terms of automated investing tools) or over the terms of the loan (in terms of self-directing investing tools). In 2018, 2019 and 2020, service fees charged at the beginning or at the end of the investment commitment period or over the terms of the loans in the periods presented were calculated to be equal to an annualized interest rate ranging from 0.5% to 1.5% based on the investment amount and the investment term. Service fees charged to borrowers and investors, including the service fees charged to investors collected at the end of the investment commitment period or over the terms of the loans in the periods presented, were combined as contract price to be allocated to the two performance obligations relating to loan facilitation services and post-origination services, and recognized as revenue when the relevant services are delivered. Revenue recognized related to service fees not yet received from investors that will be collected at the end of the investment commitment period and over the commitment period are recorded as accounts receivable. All service fees are fixed and not refundable. Revenue recognized is recorded net of value added tax (“VAT”). Remaining performance obligations represent the amount of the transaction price for which service has not been performed under post-origination services. In December 2020, the Group ceased publishing information relating to new offerings of investment opportunities in fixed income products for investors on its online lending information intermediary platform. Pursuant to certain collaboration arrangements entered into by the Group and a licensed asset management company, the rights of investors in existing loans underlying the fixed income products will be transferred to the asset management company. After such transfer, the outstanding balance of loans facilitated shall become nil, and the asset management company will provide existing investors with services in relation to the return of their remaining investment in loans. Direct lending program revenue Through its direct lending program, the Group provides traffic referral services to financial institution partners, allowing the financial institution partners to gain access to borrowers who passed the Group’s risk assessment. The Group’s services provided consist of: a) Matching financial institution partners to potential qualified borrowers, and facilitating the execution of loan agreements between the parties (also referred to as “loan facilitation service”); and b) Providing repayment processing services for the financial institution partners and borrowers over the loan term, including repayment reminders and loan collection (also referred to as “post origination services”). Consistent with the revenue recognition policy under the online lending information intermediary services model, the Group has determined that it is not the legal lender or borrower in the loan origination and repayment process, but acting as an intermediary to bring the lender and the borrower together. Therefore, the Group does not record the loans receivable or payable arising from the loans facilitated between the financial institution partners and borrowers. The Group considers its customers to be both the financial institution partners and borrowers. The Group considers the loan facilitation service and post origination service as two separate performance obligations. The Group determines the total transaction price to be the service fees chargeable from the borrowers or the financial institution partners, which is the contracted price adjusted for variable consideration such as potential loan prepayment by the borrows that could reduce the total transaction price, which is estimated using the expected value approach based on historical data and current trends of prepayments of the borrowers. Then the transaction price is allocated to the loan facilitation services and post origination services using their relative standalone selling prices consistent with the guidance in Topic 606, similar to online lending information intermediary services revenue. For each type of service, the Group recognizes revenue when (or as) the entity satisfies the service/performance obligation by transferring the promised service to customers. Revenues from loan facilitation services are recognized at the time a loan is originated between the financial institution 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 origination services are recognized on a straight-line basis over the term of the underlying loans as the services are provided ratably on a monthly basis. Since April 2019, the Group has stopped charging service fees directly to the borrowers under its direct lending program. Instead, the Group started to charge service fees either directly to the institutional funding partners, or indirectly through third-party guarantee companies who provide guarantee services, or the insurance company who provided credit insurance to the institutional funding partners on their loans to the borrowers. The Group concluded this change did not alter the substance of the services it provided to borrowers and financial institution partners under the direct lending program, and therefore would not impact how revenue was recognized. In 2019, under a cooperation agreement, as amended (the “Cooperation Agreement”), the Group predominantly partnered with PICC Property and Casualty Company Limited Guangdong Branch (“PICC”) who provided the credit insurance service to institutional funding partners on the loan origination, PICC collected all of the loan facilitation service fees and remitted the Group’s portion of the service fees to the Group. The Group recorded an account receivable for the service fees confirmed and to be remitted by PICC. Other revenues Other revenues mainly include product sales revenues from online sales of goods, penalty fee for late payment, and other service revenues. The Group generates product sales revenues primarily through selling of merchandise via its online shopping platform, 9F One Mall (“online agent model”), and through selling of upscale products via third party platforms (“online direct sales model”). Under online agent model, customers can buy merchandise provided by third-party merchandise suppliers on our 9F One Mall. The Group does not control the merchandise, but rather is acting as an agent for the suppliers. Revenue is recognized for the net amount of consideration the Group is entitled to retain in exchange for the agent service. The Group commenced the operations of the online direct sales model in the first quarter of 2019 and terminated the operations of the online direct sales model in the third quarter of 2019. Under the online direct sales model, revenue is recognized on a gross basis as the Group controls the merchandise before it is transferred to the customers, which is indicated by (i) the Group is primarily responsible for fulfilling the promise to provide the specified upscale products to the customers; (ii) the Group bears inventory risk; and (iii) the Group has discretion in establishing price. Other revenues also include revenue of services such as insurance agency, securities brokerage, customer referral and government subsidy income. Cash incentives To expand market presence, the Group voluntarily provides cash incentives in the form of cash coupons to new and existing investors during its marketing activities. These coupons are not related to prior transactions, and can only be utilized in conjunction with subsequent lending activities. The cash incentives provided are accounted as a reduction of the transaction price according to ASC 606-10-32-25. Cash incentives paid to existing investors, cash incentives paid to new investors, and cash incentives recognized as a reduction of revenue for year ended December 31, 2018 was RMB23.9 million, RMB1.2 million, and RMB25.8 million, respectively. Cash incentives paid to existing investors, cash incentives paid to new investors, and cash incentives recognized as a reduction of revenue for year ended December 31, 2019 was RMB59.6 million, RMB0.8 million, and RMB57.6 million, respectively. Cash incentives paid to existing investors, cash incentives paid to new investors, and cash incentives recognized as a reduction of revenue for year ended December 31, 2020 was RMB61.7 million, RMB2.7 million, and RMB8.9 million, respectively. Value added taxes (“VAT”) The Group is subject to value added tax, or VAT, at a rate of 16% from May 1, 2018 to March 31, 2019 and 13% thereafter on sales of products, and at a rate of 6% on services rendered by the Group, less any deductible VAT the Group has already paid or borne, except for entities qualified as small-scale taxpayers at a VAT rate of 3% without any deduction. Since April 1, 2019, the Group has been subject to an additional 10% deductible VAT. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. VAT is reported as a deduction to revenue when incurred and amounted to RMB490,136, RMB611,786, and RMB136,501 for the years ended December 31, 2018, 2019 and 2020, respectively. The net VAT balance between input VAT and output VAT is recorded in the line item of accrued expenses and other liabilities on the face of balance sheet. Disaggregation of revenues The Group generates revenues primarily from loan facilitation and post-origination services provided to investors, borrowers and financial institution partners through its online lending information intermediary services and direct lending program. The Group also generates other revenues, such as penalty fees charged to borrowers for late payment, product sales revenues from online sales of goods, and other service revenues. The following table provides further disaggregation by types of revenues recognized in 2018, 2019 and 2020. Loan Post facilitation origination Other 2018 services services revenues Total RMB RMB RMB RMB Online lending platform revenue Online lending information intermediary services revenue Revolving loan products (One Card) 4,728,255 282,057 — 5,010,312 Non‑revolving loan products 186,679 85,218 — 271,897 Direct lending program revenue 45,737 164 — 45,901 Other revenue — — 228,372 228,372 Total 4,960,671 367,439 228,372 5,556,482 Loan Post facilitation origination Other 2019 services services revenues Total RMB RMB RMB RMB Online lending platform revenue Online lending information intermediary services revenue Revolving loan products (One Card) 1,698,133 269,718 — 1,967,851 Non‑revolving loan products 104,611 30,226 — 134,837 Direct lending program revenue 1,675,153 304,788 — 1,979,941 Other revenue — — 342,334 342,334 Total 3,477,897 604,732 342,334 4,424,963 Loan Post facilitation origination Other 2020 services services revenues Total RMB RMB RMB RMB Online lending platform revenue Online lending information intermediary services revenue Revolving loan products (One Card) 26,376 203,748 — 230,124 Non‑revolving loan products 84,485 202,097 — 286,582 Direct lending program revenue 66,286 453,257 — 519,543 Other revenue — — 219,756 219,756 Total 177,147 859,102 219,756 1,256,005 The Group manages its business through a comprehensive offering of financial products tailored to the needs of the investors and borrowers. These financial products are categorized by the Group as loan products, wealth management products and others. The following table illustrates the disaggregation of revenues by product offering in 2018, 2019 and 2020: December 31, December 31, December 31, 2018 2019 2020 RMB RMB RMB Loan product revenue 4,930,515 3,590,693 847,576 Wealth management product revenue 471,060 573,355 188,673 Others 154,907 260,915 219,756 Total 5,556,482 4,424,963 1,256,005 Loan products-In 2018, 2019 and 2020, loan products represented product offerings tailored to the needs of the borrowers. Loan product revenues in the above table represented the portion of the service fees that were charged to borrowers through the Group’s online lending information intermediary services, and charged from borrowers with whom the Group has stopped charging service fees since April 2019 or financial institution partners under direct lending program business. Wealth Management products-In 2018, 2019 and 2020, wealth management products represented product offerings tailored to the needs of the individual investors, including fixed income products and other wealth management products such as insurance and stock investment brokerage services, and fund investment products services. Fixed income products were offered to individual investors who desired to invest in loans facilitated through the Group’s online lending information intermediary services. Revenues from wealth management products in the above table were mainly derived from fixed income products and represented the portion of service fees that was charged to investors in the Group’s online lending information intermediary services. Revenues recognized on other wealth management products were immaterial for the periods presented. Deferred Revenue Deferred revenue consists of post origination service fees received or receivable from borrowers, investors and financial institution partners for which services have not yet been provided. Deferred revenues is recognized ratably as revenue when the post-origination services are delivered during the loan period. The balance of deferred revenue decreased from RMB788,906 as of December 31, 2019 to RMB98,668 as of December 31, 2020 due to the cessation of cooperation with PICC and our new investment programs. Revenue recognized during the years ended December 31, 2019 and 2020 that was included in the deferred revenue balance at the beginning of the year was RMB290,674 and RMB555,646, respectively. In December 2018, China National Internet Finance Rectification Office and the National Online Lending Rectification Office jointly issued the Guidance on the Classification and Disposal of Risks of Online Lending Information Intermediaries and Risk Prevention (“Circular 175”). Circular 175 tightens the regulation of the industry by requiring institutions other than normal intermediaries, including shell intermediaries with no substantive operations, small-scale intermediaries, intermediaries with high risks, and intermediaries that are unable to repay investors or otherwise unable to operate their businesses, to exit the online lending information intermediary industry. In light of the tightening regulatory environment, the Group significantly decreased online lending information intermediary services during the year ended December 31, 2020. The Group launched re-designed investment programs by transferring their creditor’s rights to a licensed asset management company named Ningxia Shunyi Asset Management Co. Ltd (“Ningxia Shunyi”). By opting for the Group’s new investment programs, individual investors authorized our platform to transfer its creditor’s rights to Ningxia Shunyi on their behalf at the individual investors’ option. On August 24,2020, the Group signed the asset management agreement and supplementary agreement with Ningxia Shunyi. According to the agreement, after the completion of the creditor’s rights transfer, Ningxia Shunyi and other third party will provide services, including intermediary or management services. Contract assets, net Contract assets are attributable to loan products to borrowers under our online lending platform, the Group is entitled to payment of service fees when repayment of loans is received from the borrowers. Contract assets are recorded under these arrangements when the Group provides the loan facilitation and post origination services but before the payments are due. Contract assets are stated at the historical carrying amount net of write-off and allowance for collectability in accordance with ASC Topic 310. The Group established an allowance for uncollectible contract assets based on estimates, historical experience and other factors surrounding the credit risk of specific customers similar to borrowers related to the financial institution partners. The Group evaluates and adjusts its allowance for uncollectible contract assets on a quarterly basis or more often as necessary. Uncollectible contract assets are written off when the consideration entitled by the Group is due and the Group has determined the balance will not be collected. The Group recognizes contract assets only to the extent that the Group believes it is probable that they will collect substantially all of the consideration to which it will be entitled in exchange for the services transferred to the customer. The following table presents the contract assets from loan facilitation services and post origination services: December 31, December 31, 2019 2020 RMB RMB Contract assets from loan facilitation services and post origination services 27,079 25,123 Less: Allowance for loss for collectability (2,255) (14,749) Total 24,824 10,374 The following table presents the movement of allowance for loss for contract assets for the years ended December 31, 2019 and 2020: December 31, December 31, 2019 2020 RMB RMB Balance at beginning of the year 329 2,255 Provision for doubtful contract assets 14,811 18,605 Write-offs (12,885) (6,111) Balance at end of the year 2,255 14,749 Practical Expedients and Exemptions The Group generally expenses sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within sales and marketing expenses. |
Quality assurance fund liability | Quality assurance fund liability In order to provide assurance for investors, the Group established an investors’ protection plan. From December 2013 to December 2016, the Group provided an investor protection service which is accounted for as guarantee. Starting from August 25, 2016, the Group cooperated with third party guarantee and insurance companies, who provided investor protection services to replace the former quality assurance fund model, and the Group no longer has any legal obligation to make compensation payments to investors on defaulted loans, and therefore no longer records a quality assurance fund liability in accordance with ASC 405-20, Extinguishments of liabilities. In August 2016, the Group cooperated with Guangdong Nanfeng Guarantee Ltd. (“Nanfeng Guarantee”) and Taiping General Insurance Co., Ltd, (“China Taiping”) to launch an investors’ protection plan to replace the former quality assurance fund model. As part of the agreement with Nanfeng Guarantee and China Taiping, the Group transferred its legal responsibility to guarantee the existing loans (i.e., existing and future defaults) to Nanfeng Guarantee and China Taiping. The Group agreed to pay the balance of the quality assurance fund as of August 25, 2016 of RMB287 million from its own special account to a depository account set up by Nanfeng Guarantee and supervised by China Taiping. For all new loans facilitated, the borrowers paid the quality assurance fund to Nanfeng Guarantee to manage as part of the guarantee fund reserve going forward. A separate insurance policy was entered into by each borrower and the insurance company (i.e., China Taiping), where the insurance company charged an insurance premium to the borrower to cover additional default risks. Nanfeng Guarantee used the quality assurance fund in the depository account to compensate the defaulted loans. China Taiping will not cover the repayment until the balance of the depository account at the depository bank becomes insufficient. As a result, the Group no longer has a legal obligation to make compensation payments to investors for defaults (both incurred and future) related to its existing loan portfolio as well as loans originated subsequent to August 25, 2016. In September 2017, the Group launched an enhanced investors’ protection plan with China Taiping and Nanfeng Guarantee. For loans with terms of 12 months or less, the borrower signed a “Loan Performance Guarantee Insurance Policy” with China Taiping and paid an insurance premium to China Taiping. In the event that default of the insured loan happens, China Taiping will repay the outstanding principal and the interest to the investors. For loans over 12 months, and for loans with terms of 12 months or less but not covered by China Taiping’s insurance protection, the borrower signed a “Confirmation to Participation in Guarantee Plan” and Nanfeng Guarantee provided the guarantee service. The borrowers pay the guarantee fee to Nanfeng Guarantee, which will be deposited in the guarantee fund depository account set up by Nanfeng Guarantee. The Group and Nanfeng Guarantee will determine the guarantee fund rate charged to borrowers based on the credit characteristics of the borrower as well as the underlying loan characteristics. If default of any loan protected by Nanfeng Guarantee happens, Nanfeng Guarantee will withdraw the funds from the guarantee fund reserve account to repay the investor within the fund’s balance as the upper limit. In January 2018, the Group announced new updates to the arrangements regarding loans with terms of more than 12 months. The borrower signs a guarantee contract with Guangdong Success Finance Guarantee Company Limited (“Guangdong Success”). According to the contract, when the borrower defaults and, if the balance of the guarantee fund reserve account is insufficient to cover the unpaid amounts, Guangdong Success will make additional repayment with an upper limit of a cap of five times the guarantee fee paid by the borrower. For loans with the terms of 12 months or less, the borrower pays the insurance premium and signs a “Loan Performance Guarantee Insurance Policy” with either China Taiping or PICC with whom the Group began to collaborate in March 2018. The loans under China Taiping’s insurance protection obligation were all due by August 15, 2019; however, China Taiping’s insurance protection obligation has not been completely fulfilled as of the date of this annual report due to the ongoing insurance claim and settlement process. PICC has provided insurance protection to all the new loans with terms of no more than 12 months that have been originated since May 2018 and covered by the insurance protection plan. Since November 2019, new loans with terms of no more than 12 months are no longer covered by PICC’s investors protection plan. However, as of the date of this annual report, PICC’s insurance protection obligation will continue for loans originated before November 2019 that were subject to PICC’s insurance protection plan. Furthermore, Guangdong Success no longer provides guarantee protection on new loans facilitated after February 2020; however, Guangdong Success’ obligation with respect to loans facilitated before February 2020 has not been completely fulfilled as of the date of this annual report. Since February 2020, the Group began to collaborate with Zhongtian Caizhi Financing Guarantee Co., Ltd. (“Zhongtian Guarantee”), an independent third party. For all the new loans originated since February 2020, borrowers are required to make contributions to the depository account set up by Zhongtian Guarantee. If a loan is past due for a certain period, Zhongtian Guarantee will use the cash available in the depository account to repay the investors up to the total amount of principal and the accrued interests. | Quality assurance fund liability In order to provide assurance for investors, the Group established an investors’ protection plan. From December 2013 to December 2016, the Group provided an investor protection service which is accounted for as guarantee. Starting from August 25, 2016, the Group cooperated with third party guarantee and insurance companies, who provided investor protection services to replace the former quality assurance fund model, and the Group no longer has any legal obligation to make compensation payments to investors on defaulted loans, and therefore no longer records a quality assurance fund liability in accordance with ASC 405-20, Extinguishments of liabilities. In August 2016, the Group cooperated with Guangdong Nanfeng Guarantee Ltd. (“Nanfeng Guarantee”) and Taiping General Insurance Co., Ltd, (“China Taiping”) to launch an investors’ protection plan to replace the former quality assurance fund model. As part of the agreement with Nanfeng Guarantee and China Taiping, the Group transferred its legal responsibility to guarantee the existing loans (i.e., existing and future defaults) to Nanfeng Guarantee and China Taiping. The Group agreed to pay the balance of the quality assurance fund as of August 25, 2016 of RMB287 million from its own special account to a depository account set up by Nanfeng Guarantee and supervised by China Taiping. For all new loans facilitated, the borrowers paid the quality assurance fund to Nanfeng Guarantee to manage as part of the guarantee fund reserve going forward. A separate insurance policy was entered into by each borrower and the insurance company (i.e., China Taiping), where the insurance company charged an insurance premium to the borrower to cover additional default risks. Nanfeng Guarantee used the quality assurance fund in the depository account to compensate the defaulted loans. China Taiping will not cover the repayment until the balance of the depository account at the depository bank becomes insufficient. As a result, the Group no longer has a legal obligation to make compensation payments to investors for defaults (both incurred and future) related to its existing loan portfolio as well as loans originated subsequent to August 25, 2016. In September 2017, the Group launched an enhanced investors’ protection plan with China Taiping and Nanfeng Guarantee. For loans with terms of 12 months or less, the borrower signed a “Loan Performance Guarantee Insurance Policy” with China Taiping and paid an insurance premium to China Taiping. In the event that default of the insured loan happens, China Taiping will repay the outstanding principal and the interest to the investors. For loans over 12 months, and for loans with terms of 12 months or less but not covered by China Taiping’s insurance protection, the borrower signed a “Confirmation to Participation in Guarantee Plan” and Nanfeng Guarantee provided the guarantee service. The borrowers pay the guarantee fee to Nanfeng Guarantee, which will be deposited in the guarantee fund depository account set up by Nanfeng Guarantee. The Group and Nanfeng Guarantee will determine the guarantee fund rate charged to borrowers based on the credit characteristics of the borrower as well as the underlying loan characteristics. If default of any loan protected by Nanfeng Guarantee happens, Nanfeng Guarantee will withdraw the funds from the guarantee fund reserve account to repay the investor within the fund’s balance as the upper limit. In January 2018, the Group announced new updates to the arrangements regarding loans with terms of more than 12 months. The borrower signs a guarantee contract with Guangdong Success Finance Guarantee Company Limited (“Guangdong Success”). According to the contract, when the borrower defaults and, if the balance of the guarantee fund reserve account is insufficient to cover the unpaid amounts, Guangdong Success will make additional repayment with an upper limit of a cap of five times the guarantee fee paid by the borrower. For loans with the terms of 12 months or less, the borrower pays the insurance premium and signs a “Loan Performance Guarantee Insurance Policy” with either China Taiping or PICC with whom the Group began to collaborate in March 2018. The loans under China Taiping’s insurance protection obligation were all due by August 15, 2019; however, China Taiping’s insurance protection obligation has not been completely fulfilled as of the date of this annual report due to the ongoing insurance claim and settlement process. PICC has provided insurance protection to all the new loans with terms of no more than 12 months that have been originated since May 2018 and covered by the insurance protection plan. Since November 2019, new loans with terms of no more than 12 months are no longer covered by PICC’s investors protection plan. However, as of the date of this annual report, PICC’s insurance protection obligation will continue for loans originated before November 2019 that were subject to PICC’s insurance protection plan. Furthermore, Guangdong Success no longer provides guarantee protection on new loans facilitated after February 2020; however, Guangdong Success’ obligation with respect to loans facilitated before February 2020 has not been completely fulfilled as of the date of this annual report. Since February 2020, the Group began to collaborate with Zhongtian Caizhi Financing Guarantee Co., Ltd. (“Zhongtian Guarantee”), an independent third party. For all the new loans originated since February 2020, borrowers are required to make contributions to the depository account set up by Zhongtian Guarantee. If a loan is past due for a certain period, Zhongtian Guarantee will use the cash available in the depository account to repay the investors up to the total amount of principal and the accrued interests. |
Fair value | Fair value Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Authoritative literature provides a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: · Level — · Level — · Level — ’ The carrying amounts of the Group’s financial instruments approximate their fair values because of their short-term nature. The Group’s financial instruments include cash, accounts receivable, notes receivable, amount due from related parties, amount due to related parties, deferred revenues, and accrued expenses and other liabilities. | Fair value Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Authoritative literature provides a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: ● Level 1 - inputs are based upon unadjusted quoted prices for identical assets or liabilities traded in active markets. ● Level 2 - inputs are based upon quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3 - inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based valuation techniques that include option pricing models, discounted cash flow models, and similar techniques. The carrying amounts of the Group’s financial instruments approximate their fair values because of their short-term nature. The Group’s financial instruments include cash, accounts receivable, notes receivable, amount due from related parties, amount due to related parties, deferred revenues, and accrued expenses and other liabilities. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents represent cash on hand, demand deposits and highly liquid investments placed with banks or other financial institutions, which have original maturities less than three months. The Group considers all highly liquid investments with stated maturity dates of three months or less from the date of purchase to be cash equivalents. | Cash and cash equivalents Cash and cash equivalents represent cash on hand, demand deposits and highly liquid investments placed with banks or other financial institutions, which have original maturities less than three months. The Group considers all highly liquid investments with stated maturity dates of three months or less from the date of purchase to be cash equivalents. |
Restricted cash | Restricted cash A subsidiary of the Group receives funds from investors for the purpose of buying or selling securities on behalf of its customers. The funds are deposited in a bank account restricted only for the use of purchasing securities on behalf of the investors and the use of the funds within this account are monitored by the bank. Such bank balance represents an asset of the Group for the amounts due to customers for the segregated bank balance held and payable to customers on demand. A corresponding payable to customers is recorded upon receipt of the cash from the customer. As of December 31,2020 and June 30,2021, the Group had restricted bank deposits of RMB390,702 and RMB376,796, respectively. | Restricted cash A subsidiary of the Group receives funds from investors for the purpose of buying or selling securities on behalf of its customers. The funds are deposited in a bank account restricted only for the use of purchasing securities on behalf of the investors and the use of the funds within this account are monitored by the bank. Such bank balance represents an asset of the Group for the amounts due to customers for the segregated bank balance held and payable to customers on demand. A corresponding payable to customers is recorded upon receipt of the cash from the customer. As of December 31, 2019 and 2020, the Group had restricted bank deposits of RMB125,437 and RMB390,702, respectively. |
Term deposits | Term deposits Term deposits consist of deposits placed with financial institutions with an original maturity of greater than three months and less than one year. As of December 31 2020 and June 30,2021, the Group had term deposits of RMB133,761 and RMB102,408, respectively. | Term deposits Term deposits consist of deposits placed with financial institutions with an original maturity of greater than three months and less than one year. As of December 31, 2019 and 2020, the Group had term deposits of RMB24,000 and RMB133,761, respectively. |
Loan receivables | Loan receivables Loan receivables are measured at amortized cost with interest accrued based on the contract rate. The Group evaluates the credit risk associated with the loans, and estimates the cash flow expected to be collected over the lives of loans on an individual basis based on the Group’s past experiences, the borrowers’ financial position, their financial performance and their ability to continue to generate sufficient cash flows. A valuation allowance will be established for the loans unable to collect. Provision for uncollectable loans was recorded in the amount of RMB 315,205 and RMB 986 for the year ended December 31, 2020 and for the six months ended June 30,2021, respectively, based on the results of the assessment. | Loan receivables Loan receivables are measured at amortized cost with interest accrued based on the contract rate. The Group evaluates the credit risk associated with the loans, and estimates the cash flow expected to be collected over the lives of loans on an individual basis based on the Group’s past experiences, the borrowers’ financial position, their financial performance and their ability to continue to generate sufficient cash flows. A valuation allowance will be established for the loans unable to collect. Provision for uncollectable loans was recorded in the amount of RMB649,771 and RMB315,205 for the year ended December 31, 2019 and 2020, respectively, based on the results of the assessment. |
Allowance for doubtful accounts | Allowance for doubtful accounts Accounts receivable, other receivables and loan receivables are stated at the historical carrying amount net of write-offs and allowance for doubtful accounts. The Group continuously monitors collections from its borrowers and maintains an allowance for doubtful accounts based on various factors, including aging, historical collection data, specific collection issues that have been identified, borrower concentration, general economic conditions and other factors surrounding the credit risk of specific borrowers. Uncollectible receivables are written off when a settlement is reached for an amount that is less than the outstanding historical balance or when the Group has determined it is probable that the balance will not be collected. The movement of the allowance for doubtful accounts is as follows: Accounts Other Loans receivable receivables receivable Total RMB RMB RMB RMB Balance at December 31, 2020 1,446,994 17,396 329,364 1,793,754 Provision for doubtful accounts 39,925 3,813 986 44,724 Reversal — — — — Write-off — (14,279) (273,884) (288,163) Balance at June 30, 2021 1,486,919 6,930 56,466 1,550,315 Refer to Note 4 Loan Receivables for further information on allowance for loan receivables. | Allowance for doubtful accounts Accounts receivable, other receivables and loan receivables are stated at the historical carrying amount net of write-offs and allowance for doubtful accounts. The Group continuously monitors collections from its borrowers and maintains an allowance for doubtful accounts based on various factors, including aging, historical collection data, specific collection issues that have been identified, borrower concentration, general economic conditions and other factors surrounding the credit risk of specific borrowers. Uncollectible receivables are written off when a settlement is reached for an amount that is less than the outstanding historical balance or when the Group has determined it is probable that the balance will not be collected. The movement of the allowance for doubtful accounts is as follows: Accounts Other Loans receivable receivables receivable Total RMB RMB RMB RMB Balance at December 31, 2017 29,611 5,010 — 34,621 Reversal (2,966) — — (2,966) Write-off (25,592) — — (25,592) Balance at December 31, 2018 1,053 5,010 — 6,063 Provision for doubtful accounts (i) 1,447,582 36,803 649,771 2,134,156 Reversal — (329) — (329) Write-off (15,186) (4,711) (34,179) (54,076) Balance at December 31, 2019 1,433,449 36,773 615,592 2,085,814 Adoption of new accounting standard (ii) — 3,117 8,420 11,537 Provision for doubtful accounts 13,545 — 315,205 328,750 Write-off — (22,494) (609,853) (609,853) Balance at December 31, 2020 1,446,994 17,396 329,364 1,793,754 (i) In 2019, the provision for doubtful accounts mainly related to accounts receivable with PICC, who was responsible for the collection of the Group’s service fees under the Group’s direct lending program. In November 2019, PICC no longer made payments for the outstanding receivables and the Group has performed an analysis on the collectability of the receivables and recognized a full provision for the outstanding account balance in the amount RMB 1,432,312. The Group has commenced legal proceedings for the collection of this outstanding amount due from PICC. See Note 21 for disclosure related to the status of the legal proceeding commenced against PICC in May 2021. Refer to Note 4 Loan Receivables for further information on allowance for loan receivables. (ii) Due to the adoption of ASU 2016-13, the Group recognized a total of RMB11,537 pre-tax increase to the allowance for doubtful accounts on accounts receivable, other receivables and loans receivable. The Group determined that all of the receivables share similar risk characteristics. The Group monitors the credit exposure on an ongoing basis and assess whether assets in the pool continue to display similar risk characteristics. |
Business Combinations | Business Combinations The Group accounts for its business combinations using the acquisition method of accounting in accordance with ASC topic 805 (“ASC 805”), Business Combinations The determination and allocation of fair values to the identifiable assets acquired, liabilities assumed and non-controlling interests is based on various assumptions and valuation methodologies requiring considerable judgment from management. The most significant variables in these valuations are discount rates, terminal values, the number of years on which to base the cash flow projections, as well as the assumptions and estimates used to determine the cash inflows and outflows. The Group determines discount rates to be used based on the risk inherent in the related activity’s current business model and industry comparisons. Terminal values are based on the expected life of assets, forecasted life cycle and forecasted cash flows over that period. | Business Combinations The Group accounts for its business combinations using the acquisition method of accounting in accordance with ASC topic 805 (“ASC 805”), Business Combinations The determination and allocation of fair values to the identifiable assets acquired, liabilities assumed and non-controlling interests is based on various assumptions and valuation methodologies requiring considerable judgment from management. The most significant variables in these valuations are discount rates, terminal values, the number of years on which to base the cash flow projections, as well as the assumptions and estimates used to determine the cash inflows and outflows. The Group determines discount rates to be used based on the risk inherent in the related activity’s current business model and industry comparisons. Terminal values are based on the expected life of assets, forecasted life cycle and forecasted cash flows over that period. |
Long-term investments | Long-term investments The Group’s long-term investments consist of equity securities without readily determinable fair value, equity method investments, held-to-maturity and available-for-sale investment. a. Equity securities without readily determinable fair value Historically, for investee companies over which the Group did not have significant influence and a controlling financial interest, the Group accounted for these as cost method investments under ASC 325-20. In January, 2018, the Group adopted Accounting Standards Update (“ASU”) 2016-01, Financial Instruments—Recognition and Measurement of Financial Assets and Financial Liabilities b. Equity method investments Investee companies over which the Group has the ability to exercise significant influence, but does not have a controlling interest, are accounted for using the equity method. Significant influence is generally considered to exist when the Group has an ownership interest in the voting stock of the investee between 20% and 50%. Other factors, such as representation on the investee’s board of directors, voting rights and the impact of commercial arrangements, are also considered in determining whether the equity method of accounting is appropriate. The Group also uses the equity method of accounting for its investments in variable interest entity where the Group is not considered the primary beneficiary but holds significant influences. Under the equity method of accounting, the Group’s share of the earnings or losses of the investee company, impairments, and other adjustments required by the equity method are reflected in “Earnings (loss) in equity method investments, net” in the consolidated statements of operations. An impairment charge is recorded if the carrying amount of the investment exceeds its fair value and this condition is determined to be other-than temporary. The Group estimates the fair value of the investee company based on comparable quoted price for similar investment in active market, if applicable, or discounted cash flow approach which requires significant judgments, including the estimate of future cash flows, which is dependent on internal forecasts, the estimate of long term growth rate of a company’s business, the estimate of the useful life over which cash flows will occur, and the determination of the weighted average cost of capital. The impairment losses on its equity method investment are RMB30,322 and nil during the six months ended June 30, 2020 and 2021, respectively. c. Held-to-maturity and available-for-sale investments Investments are classified as held-to-maturity when the Group has the positive intent and ability to hold the debt security to maturity, and are recorded at amortized cost. As of December 31, 2020 and June 30,2021, the balances of held-to-maturity securities were RMB33,079 and RMB33,079, respectively. For investments in investees’ stocks which are determined to be debt securities, the Group accounts for it as long-term available-for-sale investments when they are not classified as either trading or held-to-maturity investments. The available-for-sale investments are carried at its fair values and the unrealized gains or losses from the changes in fair values are included in accumulated other comprehensive income. The Group reviews its investment for other-than-temporary impairment (“OTTI”) based on the specific identification method. The Group considers available quantitative and qualitative evidence in evaluating potential impairment of its investments. If the cost of an investment exceeds the investment’s fair value, the Group considers, among other factors, general market conditions, government economic plans, the duration and the extent to which the fair value of the investment is less than the cost, the Group’s intent and ability to hold the investment, and the financial condition and near-term prospects of the issuers. If there is OTTI on debt securities, the Group separates the amount of the OTTI into the amount that is credit related (credit loss component) and the amount due to all other factors. The credit loss component is recognized in earnings, which represents the difference between a security’s amortized cost basis and the discounted present value of expected future cash flows. The amount due to other factors is recognized in other comprehensive income if the entity neither intends to sell and will not more likely than not be required to sell the security before recovery. The difference between the amortized cost basis and the cash flows expected to be collected is accreted as interest income. The Group recorded impairment losses on its held-to-maturity and available-for-sale investments of nil during the six months ended June 30, 2020 and 2021, respectively. | Long-term investments The Group’s long-term investments consist of equity securities without readily determinable fair value, equity method investments, held-to-maturity and available-for-sale investment. a. Equity securities without readily determinable fair value Historically, for investee companies over which the Group did not have significant influence and a controlling financial interest, the Group accounted for these as cost method investments under ASC 325-20. In January, 2018, the Group adopted Accounting Standards Update (“ASU”) 2016-01, Financial Instruments - Recognition and Measurement of Financial Assets and Financial Liabilities b. Equity method investments Investee companies over which the Group has the ability to exercise significant influence, but does not have a controlling interest, are accounted for using the equity method. Significant influence is generally considered to exist when the Group has an ownership interest in the voting stock of the investee between 20% and 50%. Other factors, such as representation on the investee’s board of directors, voting rights and the impact of commercial arrangements, are also considered in determining whether the equity method of accounting is appropriate. The Group also uses the equity method of accounting for its investments in variable interest entity where the Group is not considered the primary beneficiary but holds significant influences. Under the equity method of accounting, the Group’s share of the earnings or losses of the investee company, impairments, and other adjustments required by the equity method are reflected in “Earnings (loss) in equity method investments, net” in the consolidated statements of operations. An impairment charge is recorded if the carrying amount of the investment exceeds its fair value and this condition is determined to be other-than temporary. The Group estimates the fair value of the investee company based on comparable quoted price for similar investment in active market, if applicable, or discounted cash flow approach which requires significant judgments, including the estimate of future cash flows, which is dependent on internal forecasts, the estimate of long term growth rate of a company’s business, the estimate of the useful life over which cash flows will occur, and the determination of the weighted average cost of capital. The impairment losses on its equity method investment are nil, RMB22,830 and RMB179,193 during the years ended December 31, 2018, 2019 and 2020, respectively. c. Held-to-maturity and available-for-sale investments Investments are classified as held-to-maturity when the Group has the positive intent and ability to hold the debt security to maturity, and are recorded at amortized cost. As of December 31, 2019 and 2020, the balances of held-to-maturity securities were RMB15,200 and RMB33,079, respectively. For investments in investees’ stocks which are determined to be debt securities, the Group accounts for it as long-term available-for-sale investments when they are not classified as either trading or held-to-maturity investments. The available-for-sale investments are carried at its fair values and the unrealized gains or losses from the changes in fair values are included in accumulated other comprehensive income. The Group reviews its investment for other-than-temporary impairment (“OTTI”) based on the specific identification method. The Group considers available quantitative and qualitative evidence in evaluating potential impairment of its investments. If the cost of an investment exceeds the investment’s fair value, the Group considers, among other factors, general market conditions, government economic plans, the duration and the extent to which the fair value of the investment is less than the cost, the Group’s intent and ability to hold the investment, and the financial condition and near-term prospects of the issuers. If there is OTTI on debt securities, the Group separates the amount of the OTTI into the amount that is credit related (credit loss component) and the amount due to all other factors. The credit loss component is recognized in earnings, which represents the difference between a security’s amortized cost basis and the discounted present value of expected future cash flows. The amount due to other factors is recognized in other comprehensive income if the entity neither intends to sell and will not more likely than not be required to sell the security before recovery. The difference between the amortized cost basis and the cash flows expected to be collected is accreted as interest income. The Group recorded impairment losses on its held-to-maturity and available-for-sale investments during the years ended December 31, 2018, 2019 and 2020 of nil, nil, RMB1,221, respectively. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price of acquired businesses over the estimated fair value assigned to the individual assets acquired and liabilities assumed. Goodwill is not depreciated or amortized but is tested for impairment on an annual basis as of December 31, and in between annual tests when an event occurs or circumstances change that could indicate that the asset might be impaired. Application of goodwill impairment test requires management judgement, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value to each reporting unit. The judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit. Prior to January 1, 2019, the Group performed a two-step test to determine the amount, if any, of goodwill impairment. In Step 1, the Group compared the fair value of the reporting unit with its carrying amount, including goodwill. If the carrying amount of the reporting unit exceeded its fair value, the Group performed Step 2 and compared the implied fair value of goodwill with the carrying amount of that goodwill for that reporting unit. An impairment charge equal to the amount by which the carrying amount of goodwill for the reporting unit exceeded the implied fair value of that goodwill was recorded, limited to the amount of goodwill allocated to that reporting unit. Starting from January 1, 2019, the Group early adopted ASU 2017-04. A reporting unit is identified as a component for which discrete financial information is available and is regularly reviewed by management. The impairment test is performed as of year-end or if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount by comparing the fair value of a reporting unit with its carrying value. If the fair value of the reporting unit exceeds its carrying amount, goodwill is not impaired and no further testing is required. If the fair value of the reporting unit is less than the carrying value, an impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Based on the Group’s impairment assessment, the Group recorded goodwill impairment of RMB50,291 for the six months ended June 30,2020 and nil for the six months ended June 30,2021. | Goodwill Goodwill represents the excess of the purchase price of acquired businesses over the estimated fair value assigned to the individual assets acquired and liabilities assumed. Goodwill is not depreciated or amortized but is tested for impairment on an annual basis as of December 31, and in between annual tests when an event occurs or circumstances change that could indicate that the asset might be impaired. Application of goodwill impairment test requires management judgement, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value to each reporting unit. The judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit. Prior to January 1, 2019, the Group performed a two-step test to determine the amount, if any, of goodwill impairment. In Step 1, the Group compared the fair value of the reporting unit with its carrying amount, including goodwill. If the carrying amount of the reporting unit exceeded its fair value, the Group performed Step 2 and compared the implied fair value of goodwill with the carrying amount of that goodwill for that reporting unit. An impairment charge equal to the amount by which the carrying amount of goodwill for the reporting unit exceeded the implied fair value of that goodwill was recorded, limited to the amount of goodwill allocated to that reporting unit. Starting from January 1, 2019, the Group early adopted ASU 2017-04. A reporting unit is identified as a component for which discrete financial information is available and is regularly reviewed by management. The impairment test is performed as of year-end or if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount by comparing the fair value of a reporting unit with its carrying value. If the fair value of the reporting unit exceeds its carrying amount, goodwill is not impaired and no further testing is required. If the fair value of the reporting unit is less than the carrying value, an impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Based on the Group’s impairment assessment, the Group recorded goodwill impairment of nil, RMB6,191 and RMB50,291 for the years ended December 31, 2018, 2019 and 2020, respectively. |
Property, equipment and software, net | Property, equipment and software, net Property, equipment and software consists of computer and transmission equipment, furniture and office equipment, office buildings, software, and leasehold improvements, which are recorded at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated on a straight-line basis over the following estimated useful lives: Computer and electronic equipment 3 years Furniture and office equipment 5 years Office Building 20 years License 20 years Software 5 years Leasehold improvements Over the shorter of the remaining lease term or estimated useful lives | Property, equipment and software, net Property, equipment and software consists of computer and transmission equipment, furniture and office equipment, office buildings, software, and leasehold improvements, which are recorded at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated on a straight-line basis over the following estimated useful lives: Computer and electronic equipment 3 years Furniture and office equipment 5 years Office Building 20 years License 20 years Software 5 years Leasehold improvements Over the shorter of the remaining lease term or estimated useful lives |
Origination and servicing expense | Origination and servicing expense Origination and servicing expense consists primarily of variable expenses and vendor costs, including costs related to credit assessment, customer and system support, payment processing services and collection associated with facilitating and servicing loan. | Origination and servicing expense Origination and servicing expense consists primarily of variable expenses and vendor costs, including costs related to credit assessment, customer and system support, payment processing services and collection associated with facilitating and servicing loan. |
Government subsidy income | Government subsidy income The Group receives government grants and subsidies in the PRC 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 non-operating income in the consolidated statement of operations and comprehensive income (loss) in the period the cash is received. The government grants received by the Group were RMB889 for the six months ended June 30,2020 and RMB208 for the six months ended June 30,2021,respectively. | Government subsidy income The Group receives government grants and subsidies in the PRC 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 non-operating income in the consolidated statement of operations and comprehensive income (loss) in the period the cash is received. The government grants received by the Group were RMB23,364, RMB33,665 and RMB27,440 for the years ended December 31, 2018, 2019 and 2020, respectively. |
Leases | Leases Before January 1, 2019, the Group applied ASC Topic 840 (“ASC 840”), Leases Leases The Group leases certain office premises in different cities in the PRC and overseas under operating leases. The Group determines whether an arrangement constitutes a lease and records lease liabilities and right-of-use assets on its consolidated balance sheets at the lease commencement. The Group measures its lease liabilities based on the present value of the total lease payments not yet paid discounted based on the more readily determinable of the rate implicit in the lease or its incremental borrowing rate, which is the estimated rate the Group would be required to pay for a collateralized borrowing equal to the total lease payments over the term of the lease. The Group estimates its incremental borrowing rate based on an analysis of corporate debt of companies with credit and financial profiles similar to its own. The Group measures right-of-use assets based on the corresponding lease liability adjusted for payments made to the lessor at or before the commencement date, and initial direct costs it incurs under the lease. The Group begins recognizing rent expense when the lessor makes the underlying asset available for use by the Group. The Group’s leases have remaining lease terms of up to four years, some of which include options to extend the leases for an additional period which has to be agreed with the lessors based on mutual negotiation. After considering the factors that create an economic incentive, the Group did not include renewal option periods in the lease term for which it is not reasonably certain to exercise. For short-term leases of 12 months or less, the Group records rent expense in its consolidated statements of operations on a straight-line basis over the lease term. | Leases Before January 1, 2019, the Group applied ASC Topic 840 (“ASC 840”), Leases Leases The Group leases certain office premises in different cities in the PRC and overseas under operating leases. The Group determines whether an arrangement constitutes a lease and records lease liabilities and right-of-use assets on its consolidated balance sheets at the lease commencement. The Group measures its lease liabilities based on the present value of the total lease payments not yet paid discounted based on the more readily determinable of the rate implicit in the lease or its incremental borrowing rate, which is the estimated rate the Group would be required to pay for a collateralized borrowing equal to the total lease payments over the term of the lease. The Group estimates its incremental borrowing rate based on an analysis of corporate debt of companies with credit and financial profiles similar to its own. The Group measures right-of-use assets based on the corresponding lease liability adjusted for payments made to the lessor at or before the commencement date, and initial direct costs it incurs under the lease. The Group begins recognizing rent expense when the lessor makes the underlying asset available for use by the Group. The Group’s leases have remaining lease terms of up to four years, some of which include options to extend the leases for an additional period which has to be agreed with the lessors based on mutual negotiation. After considering the factors that create an economic incentive, the Group did not include renewal option periods in the lease term for which it is not reasonably certain to exercise. For short-term leases of 12 months or less, the Group records rent expense in its consolidated statements of operations on a straight-line basis over the lease term. |
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 asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. 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, management consider all positive and negative evidence, including future reversals of projected future taxable income and results of recent operations. Net deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more-likely-than-not that a portion of or all of the net deferred tax asset will not be realized. 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 statements of operation and comprehensive income (loss). The Group did not have any significant unrecognized uncertain tax positions as of and for the six month ended June 30,2020 and 2021 | 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 asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. 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, management consider all positive and negative evidence, including future reversals of projected future taxable income and results of recent operations. Net deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more-likely-than-not that a portion of or all of the net deferred tax asset will not be realized. 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 statements of operation and comprehensive income (loss). The Group did not have any significant unrecognized uncertain tax positions as of and for the years ended December 31, 2018, 2019 and 2020. |
Share-based compensation | Share-based compensation Share-based payment transactions with employees and managements, such as share options, are measured based on the grant date fair value of the equity instrument. The Group has elected to recognize compensation expenses using the straight-line method for all employee equity awards granted with graded vesting provided that the amount of compensation cost recognized at any date is at least equal to the portion of the grant-date value of the options that are vested at that date, over the requisite service period of the award, which is generally the vesting period of the award. Compensation expenses for awards with performance conditions is recognized when it is probable that the performance condition will be achieved. The Group elects to recognize forfeitures when they occur. | Share-based compensation Share-based payment transactions with employees and managements, such as share options, are measured based on the grant date fair value of the equity instrument. The Group has elected to recognize compensation expenses using the straight-line method for all employee equity awards granted with graded vesting provided that the amount of compensation cost recognized at any date is at least equal to the portion of the grant-date value of the options that are vested at that date, over the requisite service period of the award, which is generally the vesting period of the award. Compensation expenses for awards with performance conditions is recognized when it is probable that the performance condition will be achieved. The Group elects to recognize forfeitures when they occur. |
Net income (loss) per ordinary share | Net income (loss) per ordinary share Basic net income (loss) per ordinary share is computed by dividing net income (loss) attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. The Group’s convertible redeemable preferred shares are participating securities as they participate in undistributed earnings on an as-if converted basis. Accordingly, the Group uses the two-class method, whereby undistributed net income is allocated on a pro rata basis to the ordinary shares and preferred shares to the extent that each class may share income in the year; whereas the undistributed net loss for the year is allocated to ordinary shares only because the convertible redeemable participating preferred shares are not contractually obligated to share the loss. Diluted net income per ordinary share reflects the potential dilution that would occur if securities were exercised or converted into ordinary shares. The Group had participating convertible redeemable preferred shares and share options which could potentially dilute basic net income per ordinary share in the future. Diluted net income per ordinary share is computed using the two-class method or the as-if-converted method, whichever is more dilutive. When the Group has a loss, the dilutive effect of these securities is not included as they would be anti-dilutive. | Net income (loss) per ordinary share Basic net income (loss) per ordinary share is computed by dividing net income (loss) attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. The Group’s convertible redeemable preferred shares are participating securities as they participate in undistributed earnings on an as-if converted basis. Accordingly, the Group uses the two-class method, whereby undistributed net income is allocated on a pro rata basis to the ordinary shares and preferred shares to the extent that each class may share income in the year; whereas the undistributed net loss for the year is allocated to ordinary shares only because the convertible redeemable participating preferred shares are not contractually obligated to share the loss. Diluted net income per ordinary share reflects the potential dilution that would occur if securities were exercised or converted into ordinary shares. The Group had participating convertible redeemable preferred shares and share options which could potentially dilute basic net income per ordinary share in the future. Diluted net income per ordinary share is computed using the two-class method or the as-if-converted method, whichever is more dilutive. When the Group has a loss, the dilutive effect of these securities is not included as they would be anti-dilutive. |
Foreign currency translation | Foreign currency translation The Group’s reporting currency is RMB. The functional currency of the Company is the United States dollar (“US$”). The functional currency of the Group’s entities in Hong Kong is Hong Kong dollars. The functional currency of the Group’s subsidiaries and VIEs in the PRC is Renminbi (“RMB”). Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency at the rates of exchange ruling at the balance sheet date. Transactions in currencies other than the functional currency during the year are converted into functional currency at the applicable rates of exchange prevailing when the transactions occurred. Transaction gains and losses are recognized in the consolidated statements of operations. Assets and liabilities are translated from each entity’s functional currency to the reporting currency using the exchange rates in effect on the balance sheet date. Equity amounts are translated at historical exchange rates. Revenues, expenses, gains and losses are translated using the average rates for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component in the consolidated statements of comprehensive income (loss). | Foreign currency translation The Group’s reporting currency is RMB. The functional currency of the Company is the United States dollar (“US$”). The functional currency of the Group’s entities in Hong Kong is Hong Kong dollars. The functional currency of the Group’s subsidiaries and VIEs in the PRC is Renminbi (“RMB”). Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency at the rates of exchange ruling at the balance sheet date. Transactions in currencies other than the functional currency during the year are converted into functional currency at the applicable rates of exchange prevailing when the transactions occurred. Transaction gains and losses are recognized in the consolidated statements of operations. Assets and liabilities are translated from each entity’s functional currency to the reporting currency using the exchange rates in effect on the balance sheet date. Equity amounts are translated at historical exchange rates. Revenues, expenses, gains and losses are translated using the average rates for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component in the consolidated statements of comprehensive income (loss). |
Convenience translation | Convenience translation Translations of amounts from RMB into US$ are presented solely for the convenience of the reader and were calculated at the rate of US$1.00 = RMB6.4566 on June 30, 2021, the last business day for the six months ended June 30, 2021, representing the exchange rate published by the Federal Reserve Board. No representation is intended to imply that the RMB amounts could have been, or could be, converted, realized or settled into US$ at such rate, or at any other rate. | Convenience translation Translations of amounts from RMB into US$ are presented solely for the convenience of the reader and were calculated at the rate of US$1.00 = RMB6.4566 on June 30, 2021, the last business day for the six months ended June 30, 2021, representing the exchange rate published by the Federal Reserve Board. No representation is intended to imply that the RMB amounts could have been, or could be, converted, realized or settled into US$ at such rate, or at any other rate. |
Significant risks and uncertainties | Significant risks and uncertainties i) RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into foreign currencies. The value of RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. The cash and cash equivalents of the Group included aggregate amounts of RMB 1,531,340 and RMB 1,302,483 which were denominated in RMB at December 31, 2020 and June 30,2021 respectively, representing 56.16% and 69.38% of the cash and cash equivalents at December 31,2020 and June 30,2021 respectively. ii) Concentration of credit risk Financial instrument that potentially expose the Group to significant concentration of credit risk primarily consist of cash and cash equivalents, accounts receivable, loans receivable, prepaid expenses and other assets. As of December 31, 2020 and June 30,2021 the majority of the Group’s cash and cash equivalents were deposited in financial institutions located in the PRC. Accounts receivable are typically unsecured and are derived from revenue earned from customers in the PRC. The risk with respect to accounts receivable is mitigated by credit evaluations the Group performs on its customers and its ongoing monitoring process of outstanding balances. The Group made loans to third-party companies under loan agreements and is exposed to credit risk in case of defaults by the debtors. The maximum amount of loss due to credit risk is limited to the total outstanding principal plus accrued interest on the balance sheets dates. As of December 31, 2020 and June 30,2021, there was RMB267,383 and RMB202,130 of loans receivable outstanding, respectively. The Group evaluates and monitors the credit worthiness of the debtors and records an allowance for uncollectible accounts based on an assessment of the payment history, the existence of collateral, current information and events, and the facts and circumstances around the credit risk of the debtor. There are no revenues from customers which individually represented greater than 10% of the total net revenues for the six months ended June 30,2020 and 2021 respectively. There are no customers of the Group that accounted for greater than 10% of the Group’s carrying amount of accounts receivable as of June 30,2021. | Significant risks and uncertainties i) Foreign currency risk RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into foreign currencies. The value of RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. The cash and cash equivalents of the Group included aggregate amounts of RMB3,251,899 and RMB 1,531,340 which were denominated in RMB at December 31, 2019 and 2020, respectively, representing 69.43% and 56.16% of the cash and cash equivalents at December 31, 2019 and 2020, respectively. ii) Concentration of credit risk Financial instrument that potentially expose the Group to significant concentration of credit risk primarily consist of cash and cash equivalents, accounts receivable, loans receivable, prepaid expenses and other assets. As of December 31, 2019 and 2020, the majority of the Group’s cash and cash equivalents were deposited in financial institutions located in the PRC. Accounts receivable are typically unsecured and are derived from revenue earned from customers in the PRC. The risk with respect to accounts receivable is mitigated by credit evaluations the Group performs on its customers and its ongoing monitoring process of outstanding balances. The Group made loans to third-party companies under loan agreements and is exposed to credit risk in case of defaults by the debtors. The maximum amount of loss due to credit risk is limited to the total outstanding principal plus accrued interest on the balance sheets dates. As of December 31, 2020, and June 30, 2021, there was RMB778,480 and RMB 267,383 of loans receivable outstanding, respectively. The Group evaluates and monitors the credit worthiness of the debtors and records an allowance for uncollectible accounts based on an assessment of the payment history, the existence of collateral, current information and events, and the facts and circumstances around the credit risk of the debtor. There are no revenues from customers which individually represented greater than 10% of the total net revenues for the year ended December 31, 2018, 2019 and 2020. As of December 31, 2019, receivables due from PICC for service fees under the direct lending program accounted for approximately 83.54% of the Group’s accounts receivable balance. There are no customers of the Group that accounted for greater than 10% of the Group’s carrying amount of accounts receivable as of December 31, 2020. |
Recent accounting pronouncements adopted | Recent accounting pronouncements adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The guidance supersedes existing guidance on accounting for leases with the main difference being that operating leases are to be recorded in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. For operating leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. The Group has elected not to record on the balance sheet leases with an initial term of twelve months or less. For public companies, the guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the guidance is permitted. In July 2018, ASU 2016-02 was updated with ASU No. 2018-11, Targeted Improvements to ASC 842, which provides entities with relief from the costs of implementing certain aspects of the new leasing standard. Specifically, under the amendments in ASU 2018-11, (1) entities may elect not to recast the comparative periods presented when transitioning to ASC 842 (the “optional transition method”) and (2) lessors may elect not to separate lease and non-lease components when certain conditions are met. Before ASU 2018-11 was issued, transition to the new lease standard required application of the new guidance at the beginning of the earliest comparative period presented in the financial statements. In June 2016, the FASB issued ASU 2016-13, “ Financial Instruments-Credit Losses (Topic 326) The new guidance applies to loans, accounts receivable, trade receivables and other financial assets measured at amortized cost. The new guidance also applies to debt securities and other financial assets measured at fair value through other comprehensive income. The new guidance was effective January 1, 2020. The Group applied the new guidance using a modified retrospective approach through a cumulative effect adjustment to retained earnings as of January 1, 2020 of RMB44,767. We have not recast prior period comparative information, which we continue to report under the accounting guidance in effect for those periods. Our adoption of the new guidance did not have a material impact on our consolidated financial statements. Allowance for credit losses Effective January 1, 2020, the Group implemented the new credit loss guidance using a modified retrospective approach. Prior period comparative information has not been recast and continues to be reported under accounting guidance in effect for those periods. The allowance for credit losses is a valuation account that is deducted from the accounts receivable, loans receivable (at amortized cost basis) and other receivables to present the amount expected to be collected on these instruments. Accounts receivable, loans receivable and other receivables are charged off against the respective allowance when management believes the uncollectibility of the instrument is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged off and expected to be charged off. Management estimates each allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current instrument specific risk characteristics such as differences underwriting standards, portfolio mix, delinquency level or term as well as changes in environmental conditions, such as changes in unemployment rates, property values and the relevant factors. The Group measures the allowance for credit losses on a collective pool basis when similar risk characteristics exist. Instruments that do not share similar risk characteristics are evaluated on an individual basis when applicable. In August 2018, the FASB issued ASU 2018-13, “ Fair Value Measurement (Topic 820) | |
Recent accounting pronouncements not yet adopted | Recent accounting pronouncements not yet adopted In January 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2020-01, Investments—Equity Securities The Group does not believe that other recently issued accounting standards, if currently adopted, will have a material effect on the Group’s consolidated financial statements. | Recent accounting pronouncements not yet adopted In January 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2020-01, Investments - Equity Securities The Group does not believe that other recently issued accounting standards, if currently adopted, will have a material effect on the Group's consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Schedule of group's consolidated financial statements after the elimination of intercompany balances and transactions | As of December 31, As of June 30, 2020 2021 RMB RMB Assets: Cash and cash equivalents 1,501,733 1,293,615 Term deposits 135,000 105,000 Investment in marketable securities — 77,109 Accounts receivable, net 9,888 45,957 Other receivables, net 68,742 144,449 Loan receivables, net 221,200 163,200 Prepaid expenses and other assets 740,959 837,041 Contracts assets, net 10,374 6,494 Long‑term investments, net 491,510 489,727 Operating lease right-of-use assets, net 18,611 16,130 Property, equipment and software, net 51,701 39,507 Goodwill, net 72,304 72,304 Intangible assets, net 40,187 38,700 Total assets 3,362,209 3,329,233 Liabilities: Deferred revenue 81,246 9,904 Payroll and welfare payable 29,152 12,614 Income taxes payable 224,533 238,179 Accrued expenses and other liabilities 238,170 274,219 Operating lease liabilities 19,100 15,408 Amounts due to related parties 24,146 23,967 Deferred tax liabilities 5,742 5,392 Total liabilities 622,089 579,683 For the six months ended June 30, 2020 2021 RMB RMB Net revenues 787,925 332,913 Net income (loss) (406,710) 10,552 For the six months ended June 30, 2020 2021 RMB RMB Net cash provided by (used in) operating activities (175,504) (228,263) Net cash used in investing activities (396,186) 20,145 Net cash provided by (used in) financing activities — — | As of December 31, 2019 2020 RMB RMB Assets: Cash and cash equivalents 2,766,981 1,501,733 Term deposits 24,000 135,000 Accounts receivable, net 267,277 9,888 Other receivables, net 81,525 68,742 Loan receivables, net 729,798 221,200 Amounts due from related parties 50,000 — Prepaid expenses and other assets 1,085,197 740,959 Contracts assets, net 24,814 10,374 Long‑term investments, net 293,441 491,510 Operating lease right-of-use assets, net 113,606 18,611 Property, equipment and software, net 95,783 51,701 Goodwill, net 72,224 72,304 Intangible assets, net 45,362 40,187 Deferred tax assets, net 503,078 — Total assets 6,153,086 3,362,209 Liabilities: Deferred revenue 772,340 81,246 Payroll and welfare payable 35,958 29,152 Income taxes payable 303,684 224,533 Accrued expenses and other liabilities 1,056,128 238,170 Operating lease liabilities 119,005 19,100 Amounts due to related parties 29,902 24,146 Deferred tax liabilities 13,200 5,742 Total liabilities 2,330,217 622,089 For the years ended December 31, 2018 2019 2020 RMB RMB RMB Net revenues 5,270,948 4,305,272 1,145,210 Net income (loss) 2,702,469 (1,551,509) (1,479,883) For the years ended December 31, 2018 2019 2020 RMB RMB RMB Net cash provided by (used in) operating activities 2,906,094 (439,357) (753,416) Net cash used in investing activities (803,155) (1,315,875) (511,832) Net cash provided by (used in) financing activities 1,000 (5,188) — |
Schedule of disaggregation by types of revenues and revenue by product offerings | Loan Post facilitation origination Technical Wealth Other For the six months ended June 30,2020 services services services management revenues Total RMB RMB RMB RMB RMB RMB Online lending platform revenue Online lending information intermediary services revenue Revolving loan products (One Card) 133,743 48,815 — — — 182,558 Non‑revolving loan products Direct lending program revenue 94,049 481,417 — — — 575,466 Other revenue 10,067 62,360 17,979 90,406 Total 227,792 530,232 10,067 62,360 17,979 848,430 Loan Post facilitation origination Technical Wealth Other For the six months ended June 30,2021 services services services management revenues Total RMB RMB RMB RMB RMB RMB Online lending platform revenue Online lending information intermediary services revenue Revolving loan products (One Card) — 68,826 — — — 68,826 Non‑revolving loan products Direct lending program revenue — 9,178 — — — 9,178 Other revenue 164,497 61,362 89,093 314,952 Total — 78,004 164,497 61,362 89,093 392,956 June 30, June 30, 2020 2021 RMB RMB Online Lending platform revenue 758,024 78,004 Technical services 10,067 164,497 Wealth management services 62,360 61,362 Others 17,979 89,093 Total 848,430 392,956 | Loan Post facilitation origination Other 2018 services services revenues Total RMB RMB RMB RMB Online lending platform revenue Online lending information intermediary services revenue Revolving loan products (One Card) 4,728,255 282,057 — 5,010,312 Non‑revolving loan products 186,679 85,218 — 271,897 Direct lending program revenue 45,737 164 — 45,901 Other revenue — — 228,372 228,372 Total 4,960,671 367,439 228,372 5,556,482 Loan Post facilitation origination Other 2019 services services revenues Total RMB RMB RMB RMB Online lending platform revenue Online lending information intermediary services revenue Revolving loan products (One Card) 1,698,133 269,718 — 1,967,851 Non‑revolving loan products 104,611 30,226 — 134,837 Direct lending program revenue 1,675,153 304,788 — 1,979,941 Other revenue — — 342,334 342,334 Total 3,477,897 604,732 342,334 4,424,963 Loan Post facilitation origination Other 2020 services services revenues Total RMB RMB RMB RMB Online lending platform revenue Online lending information intermediary services revenue Revolving loan products (One Card) 26,376 203,748 — 230,124 Non‑revolving loan products 84,485 202,097 — 286,582 Direct lending program revenue 66,286 453,257 — 519,543 Other revenue — — 219,756 219,756 Total 177,147 859,102 219,756 1,256,005 December 31, December 31, December 31, 2018 2019 2020 RMB RMB RMB Loan product revenue 4,930,515 3,590,693 847,576 Wealth management product revenue 471,060 573,355 188,673 Others 154,907 260,915 219,756 Total 5,556,482 4,424,963 1,256,005 |
Schedule of contract assets | December 31, June 30, 2020 2021 RMB RMB Contract assets from loan facilitation services and post origination services 25,123 20,815 Less: Allowance for loss for collectability (14,749) (14,321) Total 10,374 6,494 | December 31, December 31, 2019 2020 RMB RMB Contract assets from loan facilitation services and post origination services 27,079 25,123 Less: Allowance for loss for collectability (2,255) (14,749) Total 24,824 10,374 |
Schedule of movement of allowance for loss for contract assets | December 31, June 30, 2020 2021 RMB RMB Balance at beginning of the year 2,255 14,749 Provision/(Reversal) for doubtful contract assets 18,605 (428) Write-offs (6,111) — Balance at end of the year 14,749 14,321 | December 31, December 31, 2019 2020 RMB RMB Balance at beginning of the year 329 2,255 Provision for doubtful contract assets 14,811 18,605 Write-offs (12,885) (6,111) Balance at end of the year 2,255 14,749 |
Schedule of movement of allowance for credit losses | Accounts Other Loans receivable receivables receivable Total RMB RMB RMB RMB Balance at December 31, 2020 1,446,994 17,396 329,364 1,793,754 Provision for doubtful accounts 39,925 3,813 986 44,724 Reversal — — — — Write-off — (14,279) (273,884) (288,163) Balance at June 30, 2021 1,486,919 6,930 56,466 1,550,315 | Accounts Other Loans receivable receivables receivable Total RMB RMB RMB RMB Balance at December 31, 2017 29,611 5,010 — 34,621 Reversal (2,966) — — (2,966) Write-off (25,592) — — (25,592) Balance at December 31, 2018 1,053 5,010 — 6,063 Provision for doubtful accounts (i) 1,447,582 36,803 649,771 2,134,156 Reversal — (329) — (329) Write-off (15,186) (4,711) (34,179) (54,076) Balance at December 31, 2019 1,433,449 36,773 615,592 2,085,814 Adoption of new accounting standard (ii) — 3,117 8,420 11,537 Provision for doubtful accounts 13,545 — 315,205 328,750 Write-off — (22,494) (609,853) (609,853) Balance at December 31, 2020 1,446,994 17,396 329,364 1,793,754 (i) In 2019, the provision for doubtful accounts mainly related to accounts receivable with PICC, who was responsible for the collection of the Group’s service fees under the Group’s direct lending program. In November 2019, PICC no longer made payments for the outstanding receivables and the Group has performed an analysis on the collectability of the receivables and recognized a full provision for the outstanding account balance in the amount RMB 1,432,312. The Group has commenced legal proceedings for the collection of this outstanding amount due from PICC. See Note 21 for disclosure related to the status of the legal proceeding commenced against PICC in May 2021. Refer to Note 4 Loan Receivables for further information on allowance for loan receivables. (ii) Due to the adoption of ASU 2016-13, the Group recognized a total of RMB11,537 pre-tax increase to the allowance for doubtful accounts on accounts receivable, other receivables and loans receivable. The Group determined that all of the receivables share similar risk characteristics. The Group monitors the credit exposure on an ongoing basis and assess whether assets in the pool continue to display similar risk characteristics. |
Schedule of estimated useful lives of property and equipment | Computer and electronic equipment 3 years Furniture and office equipment 5 years Office Building 20 years License 20 years Software 5 years Leasehold improvements Over the shorter of the remaining lease term or estimated useful lives | Computer and electronic equipment 3 years Furniture and office equipment 5 years Office Building 20 years License 20 years Software 5 years Leasehold improvements Over the shorter of the remaining lease term or estimated useful lives |
LOAN RECEIVABLES, NET (Tables)
LOAN RECEIVABLES, NET (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
LOAN RECEIVABLES, NET | ||
Schedule of loan receivables | December 31, June 30, 2020 2021 Loan receivables 596,747 258,596 Less: Allowance for doubtful accounts (320,944) (56,466) Less: Adpotion of new accounting standard in the last fiscal year (8,420) — Total 267,383 202,130 | December 31, December 31, 2019 2020 Loan receivables 1,394,072 596,747 Less: Allowance for doubtful accounts (615,592) (320,944) Less: Adoption of new accounting standard — (8,420) Total 778,480 267,383 |
Summary of aging of loans | 1 - 89 days 90 days or Total past past due more past due due Current Total loans December 31, 2020 — 29,500 29,500 567,247 596,747 June 30, 2021 — 16,500 16,500 242,096 258,596 | 1 - 89 days 90 days or Total past past due more past due due Current Total loans December 31, 2019 52,339 21,338 73,677 1,320,395 1,394,072 December 31, 2020 — 29,500 29,500 567,247 596,747 |
PREPAID EXPENSE AND OTHER ASS_2
PREPAID EXPENSE AND OTHER ASSETS (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
PREPAID EXPENSE AND OTHER ASSETS | ||
Summary of prepaid expenses and other assets | December 31, June 30, 2020 2021 Deposits(i) 91,258 81,068 Advances to suppliers 10,607 124,365 Prepaid taxes 338,450 320,408 Prepaid service fee 45,201 11,015 Prepaid investment (ii) 270,996 304,996 Others 37,046 40,313 Less: Adoption of new accounting standard (466) (394) Total 793,092 881,771 (i) Deposits mainly include rent deposits and deposits to third-party vendors. (ii) Prepaid investment mainly composed of the prepayment to acquire equity interests in Shanghai Xinzhen Financial Information Consulting Co., Ltd, Jiangxi Financial Development Group Co. Ltd and Guobing Sports Development (Beijing) Co., LTD as of June 30,2021. | December 31, December 31, 2019 2020 Deposits (i) 100,278 91,258 Advances to suppliers 37,118 10,607 Prepaid taxes 294,487 338,450 Prepaid service fee 17,268 45,201 Prepaid investment (ii) 632,096 270,996 Others 56,540 37,046 Less: Adoption of new accounting standard — (466) Total 1,137,787 793,092 (i) Deposits mainly include rent deposits and deposits to third-party vendors. (ii) Prepaid investment mainly composed of the prepayment to acquire equity interests in Hubei Consumer Finance Company, Shanghai Xinzhen Financial Information Consulting Co., Ltd and Jiangxi Financial Development Group Co. Ltd as of December 31, 2019. The Group obtained the approval of changes of control from Hubei Consumer Finance Company and local regulatory authorities during the year ended December 31,2020. As of December 31, 2020,the prepaid investment to Shanghai Xinzhen Financial Information Consulting Co., Ltd and Jiangxi Financial Development Group Co. Ltd are still subject to the approval of changes of control from the investees or local regulatory authorities . |
FAIR VALUE OF ASSETS AND LIAB_2
FAIR VALUE OF ASSETS AND LIABILITIES (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
FAIR VALUE OF ASSETS AND LIABILITIES | ||
Schedule of fair value of hierarchy for assets and liabilities | Balance at June 30,2021 Level 1 Level 2 Level 3 Fair Value RMB RMB RMB RMB Assets Investment in marketable securities 206,272 — — — Total Assets 206,272 — — — | Balance at December 31, 2019 Level 1 Level 2 Level 3 Fair Value RMB RMB RMB RMB Assets Available‑for‑sale investment — — 10,443 10,443 Total Assets — — 10,443 10,443 |
LONG-TERM INVESTMENTS (Tables)
LONG-TERM INVESTMENTS (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
LONG-TERM INVESTMENTS | ||
Schedule of long term investments | Equity securities without readily Equity Held-to- determinable fair method maturity value investments investment Total RMB RMB RMB RMB Balance at December 31, 2020 647,702 57,491 33,079 738,272 Additions 34,566 — — 34,566 Disposal (23,887) — — (23,887) Share of (loss) in equity method investments — (7,629) — (7,629) Impairment charges (2,056) — — (2,056) Impact of exchange rate 470 (740) — (270) Balance at June 30, 2021 656,795 49,122 33,079 738,996 | Equity securities without readily Equity Available for Held-to- determinable fair method sales maturity value investments investment investment Total RMB RMB RMB RMB RMB Balance at December 31, 2018 699,747 219,935 34,476 — 954,158 Additions 5,000 161,951 10,533 15,200 192,684 Disposal (8,750) (104,149) (35,739) — (148,638) Share of (loss) in equity method investments — (29,455) — — (29,455) Impairment charges (154,898) (22,830) — — (177,728) Unrealized losses recorded in accumulated other comprehensive loss — — (99) — (99) Impact of exchange rate 2,079 139 1,272 — 3,490 Gain recognized on remeasurement of previously held equity interest in acquire (Note 3) — 16,272 — — 16,272 Business combinations achieved in stages (Note 3) — (35,040) — — (35,040) Balance at December 31, 2019 543,178 206,823 10,443 15,200 775,644 Additions 396,549 53,929 19,100 469,578 Disposal (5,000) — (10,443) — (15,443) Share of (loss) in equity method investments — (21,317) — — (21,317) Impairment charges (282,076) (179,193) — (1,221) (462,490) Impact of exchange rate (4,949) (2,751) — — (7,700) Balance at December 31, 2020 647,702 57,491 — 33,079 738,272 |
Schedule of equity securities without readily determinable fair value | December 31, June 30, 2020 2021 RMB RMB Shanghai Xinzheng Financial Information Consulting Co., Ltd. (i) 129,786 129,786 EZhou Rural Commercial Bank 40,000 40,000 BitPay, Inc. (Delaware)(ii) 26,100 24,783 GoopalGroup (iii) 17,748 17,562 Hubei Consumption Financial Company (“Hubei Consumption”) (iv) 361,100 361,100 Zhuhai Yuanxin investment partnership (limited partnership(“ZhuhaiYuanxin”)(v) 15,000 15,000 Ningbo Weilie investment management partnership (limited partnership)(“NingboWeilie”)(vi) 20,000 20,000 PT.TIRTA FinaNCE(INA) (vii) — 19,467 Others 37,968 29,097 Total 647,702 656,795 (i) In September 2018, the Group purchased a 15% equity interest of Shanghai Xinzheng Financial Information Consulting Co., Ltd. for a total consideration of RMB129,786. The Group held a 15% equity interest as of December 31,2020 and June 30,2021 respectively. No impairment existed at December 31,2020 and June 30, 2021 and there were no observable price changes for six months ended June 30,2021. (ii) In March 2018, the Group acquired a 1.11% of equity interest in BitPay, Inc. (Delaware) for a cash consideration of US$4,000. The Group held 1.11% equity interest as of December 31, 2020 and June 30,2021. No impairment existed at December 31, 2020 and June 30,2021, and there were no observable price changes for six months ended June 30,2021. (iii) In January 2018, the Group purchased a 1.94% equity interest in Goopal Group for a cash consideration of US$2,720. The Group held 1.94% equity interest as of December 31, 2020 and June 30,2021. No impairment existed at December 31, 2020 and June 30,2021, and there were no observable price changes for six months ended June 30,2021. (iv) In December 2019, the Group paid RMB361,100 in cash in exchange of 24.47% (v) In November 2020, the Group paid RMB 15,000 in cash in exchange of 33.33% equity interest in Zhuhai Yuanxin. No impairment existed at December 31, 2020 and June 30,2021, and there were no observable price changes for six months ended June 30,2021. (vi) In December 2017, the Group purchased a 8.50% equity interest in Ningbo Weilie for a total cash consideration of RMB 20,000,000.No impairment existed at December 31, 2020 and June 30,2021, and there were no observable price changes for six months ended June 30,2021. (vii) In June 2021, the Group account for a 40% equity interest in PT.TIRTA FinaNCE(INA),. No impairment existed at June 30,2021, and there were no observable price changes for six months ended June 30,2021. | December 31, December 31, 2019 2020 RMB RMB Nanjing Lefang Intelligent Life Technology Development Co., Ltd (“Nanjing Lefang”) (i) 181,368 — Shanghai Xinzheng financial information consulting Co., Ltd. (ii) 129,786 129,786 Abakus Ltd. (Cayman) (“Abskus”) (iii) 98,709 — EZhou Rural Commercial Bank 40,000 40,000 BitPay, Inc. (Delaware) (iv) 27,847 26,100 GoopalGroup (v) 18,936 17,748 Hubei Consumption Financial Company (“Hubei Consumption”) (vi) — 361,100 Zhuhai Yuanxin investment partnership (limited partnership(“ZhuhaiYuanxin") (vii) — 15,000 Ningbo Weilie investment management partnership(limited partnership) (i) In March 2018, the Group purchase an additional 21.28% equity interest of Nanjing Lefang, formerly known as Nanjing Banghang Information Consulting Limited, for a cash consideration of RMB 250,000 . The Group held a 30.53% equity interest as of December 31, 2019 and 2020. The investments contain various right, protection, and a liquidation preference. The investment is accounted for under the equity securities without readily determinable fair value of accounting as it is not considered to be in-substance common stock. There were no observable price changes for the years ended December 31, 2018, 2019, and 2020. Due to continued decrease of operating result of Nanjing Lefang, the Group conducted an impairment assessment and recorded an impairment loss of RMB 99,868 and RMB 181,368 for the years ended December 31, 2019 and 2020, respectively. In determining the fair value of the investment in Nanjing Lefang, the Group applied the market approach using unobservable inputs, such as a lack of marketability discount and probability weighting for each scenario including liquidation and an initial public offering. (ii) In September 2018, the Group purchased a 15% equity interest of Shanghai Xinzheng Financial Information Consulting Co., Ltd. for a total consideration of RMB 129,786 . The Group held a 15% equity interest as of December 31, 2019 and 2020. No impairment existed at December 31, 2019 and 2020 and there were no observable price changes for the years ended December 31, 2018, 2019 and 2020. (iii) In December 2014, the Group subscribed to 3,579,000 ordinary shares of Abakus (formerly known as Wecash Holdings Ltd.) for a cash consideration of RMB 6,500 . The Group held 19.30% , 18.97%, and 18.97 % equity interest as of December 31, 2018, 2019 and 2020, respectively. The Group recognized its share of profit in Abakus of RMB 2,261 for the year ended December 31, 2018. In February 2018, due to issuance of equity interests to new shareholders, the Group’s equity interest in Abakus was diluted from 22.17% to 19.86% and lost its ability to exercise significance influence. The investment in Abakus was accounted for under equity method prior to the dilution in the Group’s equity interest. The investment is accounted for under the equity securities without readily determinable fair value of accounting upon the cessation of the Group’s significant influence in February 2018. In July 2019, Abakus agrees to repurchase 75,796 ordinary shares held by the Group for a cash consideration of RMB 14,807 . A disposal gain of RMB 6,057 was recognized, which is the difference between the consideration of RMB 14,807 and the carrying value in Abakus, amounted to RMB 8,750 . Due to shut down of Abskus, the Group fully imaparied the investment for the years ended December 31 2020. (iv) In March 2018, the Group acquired a 1.11% of equity interest in BitPay, Inc. (Delaware) for a cash consideration of US$4,000. The Group held 1.11% equity interest as of December 31, 2019, and 2020. No impairment existed at December 31, 2018, 2019, and 2020, and there were no observable price changes for the years ended December 31, 2018, 2019, and 2020. (v) In January 2018, the Group purchased a 1.94% equity interest in Goopal Group for a cash consideration of US$2,720. The Group held 1.94% equity interest as of December 31, 2019, and 2020. No impairment existed at December 31, 2018, 2019, and 2020, and there were no observable price changes for the years ended December 31, 2018, 2019, and 2020. (vi) In December 2019, the Group paid RMB361,100 in cash in exchange of 24.47% equity interest in Hubei Consumer. No impairment existed at December 31, 2020, and there were no observable price changes for the year ended December 31, 2020. (vii) In November 2020, the Group paid RMB 15,000 in cash in exchange of 33.33% equity interest in Zhuhai Yuanxin. No impairment existed at December 31, 2020, and there were no observable price changes for the year ended December 31, 2020. (viii) In December 2017, the Group purchased a 8.50 % equity interest in Ningbo Weilie for a total cash consideration of RMB 20,000,000 . No impairment existed at December 31, 2020, and there were no observable price changes for the year ended December 31, 2020. (ix) Other investments represent several insignificant investments as of December 31, 2018, 2019 and 2020. Impairment losses of RMB 23,140 , RMB 20,724 and nil were reported in consolidated statements of operations for the years ended December 31, 2018, 2019 and 2020 related to Shanghai Wujiu Information Technology Company Limited (“Shanghai Wujiu”), Ofo International Limited (“OFO”), and Orange Island Technology Inc.(“Orange”). During the year ended in December 31, 2018, the Group determined that Shanghai Wujiu and OFO had encountered going concern issues due to their working capital deficiencies and poor operating results. As a result, the Group fully impaired the investments during the year ended December 31, 2018. During the year ended in December 31, 2019, the Group determined that Orange had encountered going concern issues and was in the process of liquidation. Thus, the Group fully impaired the investment during the year ended December 31, 2019. |
Schedule of equity method investments | December 31, June 30, 2020 2021 RMB RMB CSJ Golden Bull (Beijing) Investment Consulting Co., Ltd (“CSJ Golden Bull”)(i) 22,135 21,143 Others 35,356 27,979 Total 57,491 49,122 (i) In September 2017, the Group purchased an equity interest of CSJ Golden Bull for a total cash consideration of RMB40,900. The Group held a 25% equity interest as of December 31,2020 and June 30,2021. | Equity method investments December 31, December 31, 2019 2020 RMB RMB CSJ Golden Bull (Beijing) Investment Consulting Co., Ltd (“CSJ Golden Bull”) (i) 26,675 22,135 Suzhou Qingyu Technology Limited (“Suzhou Qingyu”) (ii) 19,092 — Cornerstone Unicorn No.3 Private Equity Investment Fund (iii) 132,859 — Others 28,197 35,356 Total 206,823 57,491 (i) In September 2017, the Group purchased an equity interest of CSJ Golden Bull for a total cash consideration of RMB 40,900 . The Group held a 25% equity interest as of December 31, 2019 and 2020, and recognized its share of loss of RMB 6,181 , RMB 6,764 , and RMB 4,540 for the years ended December 31, 2018, 2019, and 2020, respectively. (ii) In July 2017, the Group purchased a 20% equity interest in Suzhou Qingyu for a total consideration of RMB 10,000 . The Group’s shareholding percentage decreased from 20% to 9.88% due to the issuance of equity interests to new shareholder. In June 2018, the Group purchased 3.15% equity interests of Suzhou Qingyu for a total consideration of RMB 20,000 . The Group held a 13.03% equity interest as of December 31, 2019 and have ability to exercise significance influence. The Group recognized its share of loss of RMB 5,083 , RMB 4,615 and RMB 4,648 for the years ended December 31, 2018, 2019 and 2020. Suzhou Qingyu had encountered going concern issues. Thus, the Group fully impaired the investment during the year ended December 31, 2020. (iii) In October 2019, the Group purchased 141,460,000 fund shares of Cornerstone Unicorn No.3 Private Equity Investment Fund for a total consideration of RMB 141,460 . The total shares of the fund is 152,460,000 and the fund manager shall make investment decisions independently. The fund manager can be replaced with the consent of all investors. The Group held 92% share interest as of December 31, 2019 and has ability to exercise significance influence. In December 2020,Cornerstone Unicorn and Cornerstone Management had encountered going concern issues. Thus, the Group fully impaired the investment during the year ended December 31, 2020. |
PROPERTY, EQUIPMENT AND SOFTW_2
PROPERTY, EQUIPMENT AND SOFTWARE, NET (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
PROPERTY, EQUIPMENT AND SOFTWARE, NET | ||
Schedule of property, equipment and software, net | December 31, June 30, 2020 2021 RMB RMB Office building 19,470 46,376 Computer and electronic equipment 57,856 59,008 Furniture and office equipment 10,065 9,455 Leasehold improvements 30,069 2,476 Software 46,008 51,435 Total property and equipment 163,468 168,750 Accumulated depreciation and amortization (79,147) (93,092) Impairment loss for technology of discontinued online lending information services (20,925) (23,235) Property, equipment, net 63,396 52,423 | December 31, December 31, 2019 2020 RMB RMB Office building 19,470 19,470 Computer and electronic equipment 62,748 57,856 Furniture and office equipment 14,039 10,065 Leasehold improvements 33,050 30,069 Software 42,840 46,008 Total property and equipment 172,147 163,468 Accumulated depreciation and amortization (61,771) (79,147) Impairment loss for technology of discontinued online lending information services — (20,925) Property, equipment, net 110,376 63,396 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
INTANGIBLE ASSETS, NET | ||
Schedule of intangible assets, net | December 31, June 30, 2020 2021 RMB RMB Brokerage licenses 51,880 51,553 Trade Name 6,400 6,400 Technology 27,600 27,600 Total Intangible assets 85,880 85,553 Accumulated amortization (24,247) (27,988) Impairment loss of technology with discontinued online lending information intermediaries (17,220) (17,220) Intangible assets, net 44,413 40,345 | December 31, December 31, 2019 2020 RMB RMB Brokerage licenses 54,006 51,880 Trade Name 6,400 6,400 Technology 27,600 27,600 Total Intangible assets 88,006 85,880 Accumulated amortization (14,530) (24,247) Impairment loss of technology with discontinued online lending information intermediaries — (17,220) Intangible assets, net 73,476 44,413 |
ACCRUED EXPENSES AND OTHER LI_2
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
ACCRUED EXPENSES AND OTHER LIABILITIES | ||
Schedule of accrued expenses and other liabilities | December 31, June 30, 2020 2021 RMB Accrued advertising and marketing fee 105,638 98,888 Payable related to services fee and others 152,396 166,154 Amounts due to customers for the segregated bank balances held on their behalf 405,719 474,969 Deposit 2,913 2,486 Value added tax and surcharges 16,494 6,590 Others 43,526 37,126 Total accrued expenses and other current liabilities 726,686 786,213 | December 31, December 31, 2019 2020 RMB RMB Accrued advertising and marketing fee 715,218 105,638 Payable related to services fee and others 248,816 152,396 Amounts due to customers for the segregated bank balances held on their behalf 125,437 405,719 Deposit 15,995 2,913 Value added tax and surcharges 42,699 16,494 Others 80,945 43,526 Total accrued expenses and other current liabilities 1,229,110 726,686 |
RELATED PARTY BALANCES AND TR_2
RELATED PARTY BALANCES AND TRANSACTIONS (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
RELATED PARTY BALANCES AND TRANSACTIONS | ||
Schedule of related party transactions | Name of related parties Relationship with the Group Major transaction with the Group Beijing Jiufu Weiban Technology Limited (“9F Weiban”) Equity method investee (until January 2019) Consulting services and related party loans Beijing WeCash Qiyi Technology Limited (“WeCash Qiyi”) Equity method investee (until February 2018) Borrower acquisition and referral services Huoerguosi Wukong Digital Technology Limited (“Huoerguosi”) Entity controlled by Sun, Lei (until November 2018) Advertising services WeCash Xiangshan Information Technology Limited (“WeCash Xiangshan”) Subsidiary of equity method investee Credit inquiry services Shenzhen Boya Equity method investee (until May 2019) Borrower acquisition and referral services Kashi Boya Chengxin Internet Technology Limited (“Kashi Boya”) Subsidiary of equity method investee (until May 2019) Borrower acquisition and referral services Shenzhen Lingxian Equity method investee (until December 2019) Prepayment for merchandise Shanghai Jiutai Financial Information Services Limited (“Shanghai Jiutai”) Entity controlled by Liu, Lei Related party loan CSJ Golden Bull Equity method investee Investors acquisition, referral services, and related party loan Beijing Shunwei Wealth Technology Limited (“Beijing Shunwei”) Equity method investee (until June 2019) Borrower acquisition and referral services Beijing Jiujia Wealth Management Limited (“Beijing Jiujia”) Equity method investee (until January 2018) Investors acquisition and referral services and related party loan Yoquant Equity method investee (until January 2019) Consulting services Zhejiang Lingchuang Food Limited Subsidiary of equity method investee (until December 2019) Deposit Qu, Jiachun Principal shareholder of the Group Related party loan Ren, Yifan Director of the Group Related party loan Name of related parties Relationship with the Group Major transaction with the Group Liu, Lei President Related party loan Zhuhai Hengqin Flash Cloud Payment Information Technolgy Limited (“Zhuhai Hengqin Payment”) Entity controlled by Sun, Lei Payment processing service Huoerguosi Flash Cloud Payment Information Technology Limited (“Huoerguosi Payment”) Entity controlled by Sun, Lei Payment processing service Nanjing Lefang Investee with significant influence Borrower acquisition and referral services purchased by the Group, consulting service provided to Nanjing Lefang by the Group, and related party loan Shanghai Qiuzhi Information Technology Limited (“Shanghai Qiuzhi”) Equity method investee (from May 2019) Borrower acquisition and referral services Beijing Jiuzao Technology Limited(“Beijing Jiuzao”) Entity controlled by Sun, Lei (from December 2019) Borrower acquisition and referral services Hangzhou Shuyun Gongjin Technology Limited (“Hangzhou Shuyun”) Entity controlled by Sun, Lei Credit inquiry services Chen, Lixing Vice President Related party loan Nine F Capital Limited (“Nine F”) Entity owned by Sun, Lei Related party loan Lin, Yanjun Chief Financial Officer of the Group Related party loan Sun, Lei Chief Executive Officer of the Group Related party loan During the six months ended June 30, 2021, nil service were provided by or to the related parties. Details of related party balances as of December 31, 2020 and June 30,2021 are as follows: (1) Amounts due to related parties December 31, June 30, 2020 2021 RMB RMB Zhuhai Hengqin Payment 4,731 4,731 Nanjing Lefang 18,834 18,834 Hangzhou Shuyun 18 18 Beijing Jiuzao 182 — Niche Global Fintech Corporation Limited 1,524 7 Total 25,289 23,590 | Name of related parties Relationship with the Group Major transaction with the Group Beijing Jiufu Weiban Technology Limited (“9F Weiban”) Equity method investee (until January 2019) Consulting services and related party loans Beijing WeCash Qiyi Technology Limited (“WeCash Qiyi”) Equity method investee (until February 2018) Borrower acquisition and referral services Huoerguosi Wukong Digital Technology Limited (“Huoerguosi”) Entity controlled by Sun, Lei (until November 2018) Advertising services WeCash Xiangshan Information Technology Limited (“WeCash Xiangshan”) Subsidiary of equity method investee Credit inquiry services Shenzhen Boya Equity method investee (until May 2019) Borrower acquisition and referral services Kashi Boya Chengxin Internet Technology Limited (“Kashi Boya”) Subsidiary of equity method investee (until May 2019) Borrower acquisition and referral services Shenzhen Lingxian Equity method investee (until December 2019) Prepayment for merchandise Shanghai Jiutai Financial Information Services Limited (“Shanghai Jiutai”) Entity controlled by Liu, Lei Related party loan CSJ Golden Bull Equity method investee Investors acquisition, referral services, and related party loan Beijing Shunwei Wealth Technology Limited (“Beijing Shunwei”) Equity method investee (until June 2019) Borrower acquisition and referral services Beijing Jiujia Wealth Management Limited (“Beijing Jiujia”) Equity method investee (until January 2018) Investors acquisition and referral services and related party loan Yoquant Equity method investee (until January 2019) Consulting services Zhejiang Lingchuang Food Limited Subsidiary of equity method investee (until December 2019) Deposit Qu, Jiachun Principal shareholder of the Group Related party loan Ren, Yifan Director of the Group Related party loan Liu, Lei President Related party loan Zhuhai Hengqin Flash Cloud Payment Information Technolgy Limited (“Zhuhai Hengqin Payment”) Entity controlled by Sun, Lei Payment processing service Huoerguosi Flash Cloud Payment Information Technology Limited (“Huoerguosi Payment”) Entity controlled by Sun, Lei Payment processing service Nanjing Lefang Investee with significant influence Borrower acquisition and referral services purchased by the Group, consulting service provided to Nanjing Lefang by the Group, and related party loan Shanghai Qiuzhi Information Technology Limited (“Shanghai Qiuzhi”) Equity method investee (from May 2019) Borrower acquisition and referral services Beijing Jiuzao Technology Limited(“Beijing Jiuzao”) Entity controlled by Sun, Lei (from December 2019) Borrower acquisition and referral services Hangzhou Shuyun Gongjin Technology Limited (“Hangzhou Shuyun”) Entity controlled by Sun, Lei Credit inquiry services Chen, Lixing Vice President Related party loan Nine F Capital Limited (“Nine F”) Entity owned by Sun, Lei Related party loan Lin, Yanjun Chief Financial Officer of the Group Related party loan Sun, Lei Chief Executive Officer of the Group Related party loan Details of related party balances and transactions as of and for the years ended December 31, 2018, 2019 and 2020 are as follows: (1) Services provided by related parties Year ended Year ended Year ended December 31, December 31, December 31, 2018 2019 2020 RMB RMB RMB Investors and borrower acquisition and referral services: Beijing Jiujia 9,965 — — Beijing Shunwei 5,133 1,221 — Shenzhen Boya 9,781 4,696 — Beijing Jiuzao — 7,257 852 Nanjing Lefang 12,890 29,476 — Shanghai Qiuzhi — 120 49 Subtotal 37,769 42,770 901 Credit inquiry services: WeCash Xiangshan 427 — — Hangzhou Shuyun — 5,925 358 Subtotal 427 5,925 358 Payment processing service: Zhuhai Hengqin Payment 17,808 9,175 — Huoerguosi Payment 20,504 — — Subtotal 38,312 9,175 — Others 261 20 — Total 76,769 57,890 1,259 (2) Services provided to related parties Year ended Year ended Year ended December 31, December 31, December 31, 2018 2019 2020 RMB RMB RMB Beijing Shunwei 3,941 — — Nanjing Lefang 26,386 1,994 — Shanghai Qiuzhi — 99 — Shenzhen Boya — 6 — Kashi Boya 4,495 — — Others 179 — — Total 35,001 2,099 — (3) Amounts due from related parties December 31, December 31, 2019 2020 RMB RMB Nine F (i) — — Beijing Shunwei — — 9F Weiban — — Lin, Yanjun — — Chen, Lixing — — Nanjing Lefang 50,000 — Shenzhen Lingxian — — Sun Lei — — Total 50,000 — (i) On April 20, 2018, the Company extended a loan to Nine F of US $20 million with term of 3 years and an interest rate at the US dollar deposit rate for the same period as published by Bank of China. The purpose of the loan is to finance the purchase by Lei Sun of the ordinary shares of 9F Inc. from Yifan Ren, one of the Founders of the Company. The loan was fully repaid in August 2019. (4) Amounts due to related parties December 31, December 31, 2019 2020 RMB RMB Zhuhai Hengqin Payment 3,125 4,731 Huoerguosi Payment — — Qu, Jiachun — — Ren, Yifan — — Zhejiang Lingchuang Food Limited — — Nanjing Lefang 18,474 18,834 Beijing Shunwei — — Shenzhen Boya — — Hangzhou Shuyun 883 18 Beijing Jiuzao 7,300 182 Shanghai Qiuzhi 120 — Niche Global Fintech Corporation Limited — 1,524 Total 29,902 25,289 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
INCOME TAXES | ||
Schedule of current and deferred components of the income tax expense | For the six months ended For the six months ended June 30, June 30, 2020 2021 RMB RMB Current tax 25,439 17,998 Deferred tax (7,565) — Total 17,874 17,998 | Year ended Year ended Year ended December 31, December 31, December 31, 2018 2019 2020 RMB RMB RMB Current tax 376,177 245,397 42,758 Deferred tax 26,226 (419,994) 495,546 Total 402,403 (174,597) 538,322 |
Schedule of reconciliation of income tax expense at statutory tax rate to income tax expense | For the six months ended For the six months ended June 30, June 30, 2020 2021 RMB RMB Income (loss) before income tax expenses (720,984) (167,335) Statutory tax rate in the PRC 25 % 25 % Income tax expense at statutory tax rate (180,246) (41,834) Non‑deductible expenses(i) 11,901 1,260 Change in valuation allowance 96,202 (252,398) Effect of tax holiday and preferential tax rate 31,734 301,815 Share‑based compensation expenses 51,752 8,729 Effect of different tax rates of subsidiaries operating in other jurisdictions 6,531 426 Income tax expense 17,874 17,998 | Year ended Year ended Year ended December 31, December 31, December 31, 2018 2019 2020 RMB RMB RMB Income (loss) before income tax expenses 2,418,729 (2,220,324) (1,691,563) Statutory tax rate in the PRC 25 % 25 % 25 % Income tax expense at statutory tax rate 604,682 (555,081) (422,891) Non‑deductible expenses (i) 19,526 15,362 278,303 Change in valuation allowance 20,980 43,350 504,360 Effect of tax holiday and preferential tax rate (375,632) 221,590 104,218 Share‑based compensation expenses 127,041 88,288 72,657 Effect of different tax rates of subsidiaries operating in other jurisdictions 5,806 11,894 1,675 Income tax expense 402,403 (174,597) 538,322 |
Schedule of non-deductible expenses | For the six months ended For the six months ended June 30, June 30, 2020 2021 RMB RMB Non‑deductible expenses—excessive advertising fees — — Other non‑deductible expenses 11,901 1,260 Total 11,901 1,260 | Year ended Year ended Year ended December 31, December 31, December 31, 2018 2019 2020 RMB RMB RMB Non‑deductible expenses—excessive advertising fees 2,927 — — Other non‑deductible expenses 16,599 15,362 278,303 Total 19,526 15,362 278,303 |
Schedule of aggregate amount and per ordinary share effect of the tax holiday and preferential tax rate | June 30, June 30, 2020 2021 RMB RMB The aggregate amount of tax holiday and preferential tax rate (31,734) (301,815) The aggregate effect on basic and diluted net income per ordinary share: —Basic (0.16) (3.01) —Diluted (0.16) (3.01) | December 31, December 31, December 31, 2018 2019 2020 RMB RMB RMB The aggregate amount of tax holiday and preferential tax rate 375,632 (221,590) (104,218) The aggregate effect on basic and diluted net income per ordinary share: —Basic 2.31 (1.27) (0.52) —Diluted 2.02 (1.27) (0.52) |
Schedule of tax effects of temporary differences that gave rise to the deferred tax balances | June 30, June 30, 2020 2021 RMB RMB Deferred revenue 58,095 1,585 Accrued expenses 37,649 2,988 Allowance for doubtful accounts 305,435 11,374 Net operating loss carry forward 227,907 335,685 Excess advertising fee 81,923 — Less: valuation allowance (197,077) (351,632) Total deferred tax assets, net 513,932 — | December 31, December 31, December 31, 2018 2019 2020 RMB RMB RMB Deferred revenue 36,834 104,750 11,786 Accrued expenses 55,110 105,475 106,404 Allowance for doubtful accounts 4,335 265,745 330,488 Net operating loss carry forward 44,379 80,485 142,722 Excess advertising fee — 47,202 12,630 Less: valuation allowance (56,320) (99,670) (604,030) Total deferred tax assets, net 84,338 503,987 — |
Schedule of movements of valuation allowance | 2020 2021 RMB RMB Balance at beginning of year 99,670 604,030 Additions 97,407 — Reversal — (252,398) Balance at June 30,2020 and 2021 197,077 351,632 | 2018 2019 2020 RMB RMB RMB Balance at beginning of year 35,340 56,320 99,670 Additions 34,459 56,132 504,360 Reversal (13,479) (12,782) — Balance at end of year 56,320 99,670 604,030 |
Schedule of deferred tax liabilities | June 30, June 30, 2020 2021 RMB RMB Intangible asset from acquisition 13,227 8,504 Total deferred liabilities 13,227 8,504 | December 31, December 31, December 31, 2018 2019 2020 RMB RMB RMB Deferred tax liabilities: Intangible asset from acquisition 9,003 15,354 9,280 Contract assets — 1,861 — Total deferred liabilities 9,003 17,215 9,280 |
SHARE BASED COMPENSATION (Table
SHARE BASED COMPENSATION (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
SHARE-BASED COMPENSATION | ||
Schedule of assumptions using the binomial option pricing model | For the six months ended For the six months ended June 30, June 30, 2020 2021 Risk free rate of interest 0.27%-1.47% 0.84%~1.61% Volatility 48.8%-59.5% 113.60%~116% Dividend yield — — Exercise multiples 2.2 / 2.8 2.2 Life of option (years) 2.5-6.0 5 | Year ended Year ended Year ended December 31, December 31, December 31, 2018 2019 2020 Risk free rate of interest 2.45% ‑ 2.98% 1.79%-2.53% 0.27%-1.47% Volatility 43.5% ‑ 48.3% 43.4%-55.3% 48.8%-59.5% Dividend yield — — — Exercise multiples 2.2 / 2.8 2.2 / 2.8 2.2 / 2.8 Life of option (years) 4.0 ‑ 6.0 4.0 - 6.0 2.5-6.0 |
Schedule of activity in share options | Weighted Weighted Average Number of Average Grant ‑ date Options Exercise Price Fair Value RMB RMB Outstanding as of December 31, 2020 29,273,408 17.24 40.24 Granted 4,925,211 0.76 8.00 Exercised — — — Forfeited — — — Outstanding as of June 30, 2021 34,198,619 14.87 35.60 | Weighted Weighted Average Number of Average Grant ‑ date Options Exercise Price Fair Value RMB RMB Outstanding as of December 31, 2019 36,474,200 12.28 34.61 Granted 7,503,489 14.70 35.88 Exercised (8,319,681) — 22.00 Forfeited (6,384,600) 17.05 39.66 Outstanding as of December 31, 2020 29,273,408 17.24 40.24 |
Schedule of share options outstanding | Options Outstanding Options Exercisable Weighted Weighted Average Average Number Remaining Number Remaining Exercise Price Outstanding Contractual Life Outstanding Contractual Life RMB 0.07 4,425,211 0.87 — — 7.78 500,000 5.73 9.53 10,340,000 0.2 9,878,000 0.09 14.32 12,036,630 1.47 11,644,230 1.45 24.06 2,641,500 3.05 — — 24.11 4,176,678 3.05 3,345,098 3.05 51.05 78,600 2.52 — — 34,198,619 24,867,328 | Options Outstanding Options Exercisable Weighted Weighted Average Average Number Remaining Number Remaining Exercise Price Outstanding Contractual Life Outstanding Contractual Life RMB 7.78 10,340,000 0.64 9,878,000 0.52 14.32 12,036,630 1.97 11,644,230 1.94 24.06 2,641,500 3.55 — — 24.11 4,176,678 3.55 3,345,098 3.55 51.05 78,600 3.02 — — 29,273,408 24,867,328 |
Schedule of share-based compensation expenses recognized with each issuance of share options | For the six months ended June 30, Date of Grant 2020 2021 RMB RMB 01/07/2016 5,255 — 23/08/2016 800 — 06/09/2016 457 — 01/08/2017 3,373 3,097 10/10/2017 1,458 1,335 26/12/2017 2,380 — 19/01/2018 781 — 27/03/2018 1,835 1,681 01/09/2018 524 479 29/09/2018 2,343 1,146 07/01/2019 427 391 21/04/2019 157 144 13/06/2019 90 82 14/06/2019 38 35 01/07/2019 6,955 3,565 16/02/2020 1,636 21/02/2020 112,183 — 28/02/2020 67,952 — 01/07/2020 — 678 13/05/2021 — 20,573 Share‑based compensation recognized for share options 207,008 34,842 | For the year ended December 31, Date of Grant 2018 2019 2020 RMB RMB RMB 10/07/2015 2,613 — — 25/09/2015 111 57 — 01/07/2016 47,177 27,771 10,319 16/08/2016 241 251 — 23/08/2016 2,336 2,442 1,571 01/09/2016 1,546 1,616 — 06/09/2016 3,524 3,427 898 01/08/2017 9,686 10,124 6,623 11/09/2017 8,713 9,107 — 10/10/2017 2,732 2,856 2,862 20/10/2017 393,648 63,246 — 26/12/2017 — 135,997 4,674 19/01/2018 33,623 8,486 1,533 07/03/2018 2,193 4,162 — 27/03/2018 — 6,345 3,604 27/04/2018 — 10,377 — 01/09/2018 — 1,366 1,028 29/09/2018 — 20,195 4,600 24/12/2018 19 1,095 — 07/01/2019 — 1,842 839 21/04/2019 — 653 309 13/06/2019 — 97 177 14/06/2019 — 41 75 01/07/2019 — 41,598 13,657 21/2/2020 — — 110,145 28/2/2020 — — 127,716 Share‑based compensation recognized for share options 508,162 353,151 290,630 |
Schedule of share based compensation recognized related to share options granted and ordinary shares issued | For the six months ended For the six months ended June 30, June 30, 2020 2021 RMB RMB General and administrative expenses 207,008 34,842 | Year ended Year ended Year ended December 31, December 31, December 31, 2018 2019 2020 RMB RMB RMB General and administrative expenses 508,162 353,151 290,630 Total 508,162 353,151 290,630 |
CONVERTIBLE REDEEMABLE PREFER_2
CONVERTIBLE REDEEMABLE PREFERRED SHARES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
CONVERTIBLE REDEEMABLE PREFERRED SHARES | |
Schedule of movement in the carrying value of the preferred shares | Series A Series B Series C Series D Series E Total RMB RMB RMB RMB RMB RMB Balance as of December 31, 2017 263,076 202,086 355,248 — — 820,410 Issuance of Series D preferred shares — — — 408,358 — 408,358 Issuance of Series E preferred shares — — — — 136,427 136,427 Accretion on convertible redeemable preferred shares to redemption value 17,225 — — — — 17,225 Balance as of December 31, 2018 280,301 202,086 355,248 408,358 136,427 1,382,420 Accretion on convertible redeemable preferred shares to redemption value 10,711 — — — — 10,711 Conversion of convertible preferred shares to ordinary shares (291,012) (202,086) (355,248) (408,358) (136,427) (1,393,131) Balance as of December 31, 2019 — — — — — — |
NET INCOME (LOSS) PER ORDINAR_2
NET INCOME (LOSS) PER ORDINARY SHARE (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
NET INCOME (LOSS) PER ORDINARY SHARE | ||
Schedule of basic and diluted net loss per share | For six months ended June 30, 2020 2021 RMB RMB Numerator: Net income (loss) attributable to 9F Inc. (741,013) (193,709) Less: Deemed dividend to preferred shareholders — — Undistributed earnings allocated to preferred shareholders — — Net income (loss) attributable to ordinary shareholders for computing net income per ordinary shares-basic (741,013) (193,709) Denominator: Weighted average ordinary shares outstanding used in computing net income per ordinary shares-basic 195,191,000 100,361,432 Net income (loss) per ordinary share attributable to ordinary shareholders-basic (3.80) (1.93) Diluted net income per share calculation Net income (loss) attributable to ordinary shareholders for computing net income per ordinary shares-basic (741,013) (193,709) Add: adjustments to undistributed earnings to participating securities Net income (loss) attributable to ordinary shareholders for computing net income per ordinary shares-dilute (741,013) (193,709) Denominator: Weighted average ordinary shares basic outstanding 195,191,000 100,361,432 Effect of potentially diluted share options Weighted average ordinary shares outstanding used in computing net income per ordinary shares-dilute 195,191,000 100,361,432 Net income (loss) per ordinary share attributable to ordinary shareholders-diluted (3.80) (1.93) | For the years ended December 31, 2018 2019 2020 RMB RMB RMB Numerator: Net income (loss) attributable to 9F Inc. 1,981,804 (2,159,576) (2,258,895) Less: Change in redemption value in Series A preferred shares (17,225) (10,711) — Deemed dividend to preferred shareholders — — — Undistributed earnings allocated to preferred shareholders (244,589) — — Net income (loss) attributable to ordinary shareholders for computing net income per ordinary shares—basic 1,719,990 (2,170,287) (2,258,895) Denominator: Weighted average ordinary shares outstanding used in computing net income per ordinary shares—basic 162,672,800 174,552,468 198,596,879 Net income (loss) per ordinary share attributable to ordinary shareholders—basic 10.57 (12.43) (11.37) Diluted net income per share calculation Net income (loss) attributable to ordinary shareholders for computing net income per ordinary shares—basic 1,719,990 (2,170,287) (2,258,895) Add: adjustments to undistributed earnings to participating securities 27,007 — — Net income (loss) attributable to ordinary shareholders for computing net income per ordinary shares—dilute 1,746,997 (2,170,287) (2,258,895) Denominator: Weighted average ordinary shares basic outstanding 162,672,800 174,552,468 198,596,879 Effect of potentially diluted share options 23,062,400 — — Weighted average ordinary shares outstanding used in computing net income per ordinary shares—dilute 185,735,200 174,552,468 198,596,879 Net income (loss) per ordinary share attributable to ordinary shareholders—diluted 9.41 (12.43) (11.37) |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
LEASES | ||
Schedule of information about operating leases | For the six months ended June 30, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 4,350 Non-cash right-of-use assets in exchange for new lease liabilities: Operating leases — Weighted average remaining lease term Operating leases 1.5 Weighted average discount rate Operating leases 5.30 % Short-term lease cost 134 | For the years ended December 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 59,395 Non-cash right-of-use assets in exchange for new lease liabilities: Operating leases 12,285 Weighted average remaining lease term Operating leases 1.5 Weighted average discount rate Operating leases 5.30 % Short-term lease cost 314 |
Schedule of maturity of operating lease liabilities | The six months ended June 30,2021: RMB 2021 10,698 2022 14,818 2023 89 2024 — Thereafter — 25,604 Less imputed interest — Total 25,604 | Years ending December 31: RMB 2021 14,862 2022 13,405 2023 2,956 2024 — Thereafter — 31,223 Less imputed interest 1,720 Total 29,503 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Basis of consolidation and Risks in relation to the VIE structure (Details) ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | |
ASSETS: | |||||||||
Cash and cash equivalents | ¥ 1,877,191 | ¥ 3,651,788 | ¥ 2,726,712 | ¥ 4,684,003 | ¥ 5,469,077 | $ 290,740 | $ 422,314 | ||
Term deposits | 102,408 | 133,761 | 24,000 | 15,861 | 20,717 | ||||
Other receivables, net of allowance for doubtful accounts of RMB17,396 as of December 31, 2020 and RMB6,930 as of June 30,2021 respectively | 565,904 | 126,745 | 117,340 | 87,647 | 19,630 | ||||
Loan receivables, net | 202,130 | 267,383 | 778,480 | 31,306 | 41,412 | ||||
Amounts due from related parties | 50,000 | ||||||||
Prepaid expenses and other assets | 881,771 | 793,092 | 1,137,787 | 136,569 | 122,834 | ||||
Contracts assets, net | 6,494 | 10,374 | 24,824 | 1,006 | 1,607 | ||||
Long-term investments, net | 738,996 | 738,272 | 775,644 | 954,158 | 114,456 | 114,344 | |||
Operating lease right-of-use assets, net | 25,987 | 28,668 | 121,791 | 4,025 | 4,440 | ||||
Property, equipment and software, net | 52,423 | 63,396 | 110,376 | 8,119 | 9,819 | ||||
Goodwill, net | 22,119 | 22,121 | 72,224 | 3,426 | 3,426 | ||||
Intangible assets, net | 40,345 | 44,413 | 73,476 | 6,249 | 6,879 | ||||
Deferred tax assets, net | 503,987 | ||||||||
TOTAL ASSETS | 5,168,966 | 5,386,501 | 8,880,364 | 800,571 | 834,263 | ||||
Liabilities: | |||||||||
Deferred revenue | 10,079 | 82,643 | 788,906 | 1,561 | 12,800 | ||||
Payroll and welfare payable | 14,041 | 34,540 | 41,646 | 2,175 | 5,350 | ||||
Income taxes payable | 272,896 | 255,244 | 320,350 | 42,266 | 39,532 | ||||
Accrued expenses and other liabilities | 786,213 | 726,686 | 1,229,110 | 121,768 | 112,549 | ||||
Operating lease liabilities | 25,604 | 29,503 | 125,407 | 3,966 | 4,569 | ||||
Amounts due to related parties | 23,590 | 25,289 | 29,902 | 3,654 | 3,917 | ||||
Deferred tax liabilities | 8,504 | 9,280 | 17,215 | 1,317 | 1,437 | ||||
TOTAL LIABILITIES | 1,140,927 | 1,163,185 | 2,552,536 | $ 176,707 | $ 180,154 | ||||
Net revenues | 392,956 | $ 60,861 | 848,430 | 1,256,005 | $ 194,531 | 4,424,963 | 5,556,482 | ||
Net income (loss) | (192,962) | (29,887) | (744,599) | (2,251,202) | (348,666) | (2,153,645) | 1,975,183 | ||
Net cash provided by (used in) operating activities | (521,777) | (80,814) | (442,562) | (1,744,599) | (270,204) | (429,047) | 2,345,892 | ||
Net cash used in investing activities | ¥ (347,136) | $ (53,764) | ¥ (432,265) | 39,466 | 6,112 | (707,611) | (1,236,820) | ||
Net cash provided by (used in) financing activities | ¥ 12,896 | $ 1,997 | ¥ 471,978 | ¥ 545,886 | |||||
Percentage of net revenue contributed by VIE | 84.72% | 84.72% | 92.87% | 91.18% | 91.18% | 97.30% | 94.86% | ||
Percentage of consolidated total assets contributed by VIE | 64.41% | 64.41% | 62.42% | 62.42% | 69.29% | ||||
Percentage of consolidated total liabilities contributed by VIE | 50.81% | 50.81% | 53.48% | 53.48% | 91.29% | ||||
VIEs | |||||||||
ASSETS: | |||||||||
Cash and cash equivalents | ¥ 1,293,615 | ¥ 1,501,733 | ¥ 2,766,981 | ||||||
Term deposits | 105,000 | 135,000 | 24,000 | ||||||
Accounts receivable, net | 45,957 | 9,888 | 267,277 | ||||||
Other receivables, net of allowance for doubtful accounts of RMB17,396 as of December 31, 2020 and RMB6,930 as of June 30,2021 respectively | 144,449 | 68,742 | 81,525 | ||||||
Loan receivables, net | 163,200 | 221,200 | 729,798 | ||||||
Amounts due from related parties | 50,000 | ||||||||
Prepaid expenses and other assets | 837,041 | 740,959 | 1,085,197 | ||||||
Contracts assets, net | 6,494 | 10,374 | 24,814 | ||||||
Long-term investments, net | 489,727 | 491,510 | 293,441 | ||||||
Operating lease right-of-use assets, net | 16,130 | 18,611 | 113,606 | ||||||
Property, equipment and software, net | 39,507 | 51,701 | 95,783 | ||||||
Goodwill, net | 72,304 | 72,304 | 72,224 | ||||||
Intangible assets, net | 38,700 | 40,187 | 45,362 | ||||||
Deferred tax assets, net | 503,078 | ||||||||
TOTAL ASSETS | 3,329,233 | 3,362,209 | 6,153,086 | ||||||
Liabilities: | |||||||||
Deferred revenue | 9,904 | 81,246 | 772,340 | ||||||
Payroll and welfare payable | 12,614 | 29,152 | 35,958 | ||||||
Income taxes payable | 238,179 | 224,533 | 303,684 | ||||||
Accrued expenses and other liabilities | 274,219 | 238,170 | 1,056,128 | ||||||
Operating lease liabilities | 15,408 | 19,100 | 119,005 | ||||||
Amounts due to related parties | 23,967 | 24,146 | 29,902 | ||||||
Deferred tax liabilities | 5,392 | 5,742 | 13,200 | ||||||
TOTAL LIABILITIES | 579,683 | 622,089 | 2,330,217 | ||||||
Net revenues | 332,913 | ¥ 787,925 | 1,145,210 | 4,305,272 | ¥ 5,270,948 | ||||
Net income (loss) | 10,552 | (406,710) | (1,479,883) | (1,551,509) | 2,702,469 | ||||
Net cash provided by (used in) operating activities | (228,263) | (175,504) | (753,416) | (439,357) | 2,906,094 | ||||
Net cash used in investing activities | 20,145 | (396,186) | ¥ (511,832) | (1,315,875) | (803,155) | ||||
Net cash provided by (used in) financing activities | ¥ 0 | ¥ 0 | ¥ (5,188) | ¥ 1,000 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue recognition (Details) - item | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Online Lending Information Intermediary Services revenue | ||||
Revenue recognition | ||||
Number of services | 2 | 2 | ||
Number of performance obligations | 2 | 2 | ||
Online Lending Information Intermediary Services revenue | Minimum | ||||
Revenue recognition | ||||
Investment, annualized interest rate | 0.50% | 0.50% | 0.50% | |
Online Lending Information Intermediary Services revenue | Maximum | ||||
Revenue recognition | ||||
Investment, annualized interest rate | 1.50% | 1.50% | 1.50% | |
Direct lending program revenue | ||||
Revenue recognition | ||||
Number of performance obligations | 2 | 2 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash incentives and Value added taxes ("VAT") (Details) - CNY (¥) ¥ in Thousands | Apr. 01, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Revenue recognition | ||||||||
Cash incentives paid to existing investors | ¥ 0 | ¥ 0 | ¥ 61,700 | ¥ 59,600 | ¥ 23,900 | |||
Cash incentives paid to new investors | 0 | 0 | 2,700 | 800 | 1,200 | |||
Cash incentive recognized as reduction of revenue | ¥ 0 | 0 | ¥ 8,900 | 57,600 | 25,800 | |||
Value added tax rate for small scale tax payers (as a percent) | 3.00% | 3.00% | ||||||
Additional deductible value added tax rate (as a percent) | 10.00% | 10.00% | 10.00% | |||||
Value added tax | ¥ 0 | ¥ 0 | ¥ 611,786 | ¥ 136,501 | ¥ 611,786 | ¥ 490,136 | ||
Products | ||||||||
Revenue recognition | ||||||||
Value added tax rate (as a percent) | 13.00% | 13.00% | 16.00% | 13.00% | ||||
Services | ||||||||
Revenue recognition | ||||||||
Value added tax rate (as a percent) | 6.00% | 6.00% | 6.00% |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Disaggregation of revenues and Deferred revenues (Details) ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | |
Revenue recognition | |||||||||
Total net revenues | ¥ 392,956 | $ 60,861 | ¥ 848,430 | ¥ 1,256,005 | $ 194,531 | ¥ 4,424,963 | ¥ 5,556,482 | ||
Deferred revenue | 10,079 | 82,643 | 788,906 | $ 1,561 | $ 12,800 | ||||
Revolving loan products (One Card) | |||||||||
Revenue recognition | |||||||||
Total net revenues | 68,826 | 182,558 | 230,124 | 1,967,851 | 5,010,312 | ||||
Nonrevolving loan products | |||||||||
Revenue recognition | |||||||||
Total net revenues | 286,582 | 134,837 | 271,897 | ||||||
Direct lending program revenue | |||||||||
Revenue recognition | |||||||||
Total net revenues | 9,178 | 575,466 | 519,543 | 1,979,941 | 45,901 | ||||
Loan product | |||||||||
Revenue recognition | |||||||||
Total net revenues | 847,576 | 3,590,693 | 4,930,515 | ||||||
Wealth management services | |||||||||
Revenue recognition | |||||||||
Total net revenues | 188,673 | 573,355 | 471,060 | ||||||
Others | |||||||||
Revenue recognition | |||||||||
Total net revenues | 314,952 | 90,406 | 219,756 | 260,915 | 154,907 | ||||
Loan facilitation services | |||||||||
Revenue recognition | |||||||||
Total net revenues | 227,792 | 177,147 | 27,437 | 3,477,897 | 4,960,671 | ||||
Loan facilitation services | Revolving loan products (One Card) | |||||||||
Revenue recognition | |||||||||
Total net revenues | 133,743 | 26,376 | 1,698,133 | 4,728,255 | |||||
Loan facilitation services | Nonrevolving loan products | |||||||||
Revenue recognition | |||||||||
Total net revenues | 84,485 | 104,611 | 186,679 | ||||||
Loan facilitation services | Direct lending program revenue | |||||||||
Revenue recognition | |||||||||
Total net revenues | 94,049 | 66,286 | 1,675,153 | 45,737 | |||||
Post-origination services | |||||||||
Revenue recognition | |||||||||
Total net revenues | 78,004 | 12,081 | 530,232 | 859,102 | 133,058 | 604,732 | 367,439 | ||
Deferred revenue | 98,668 | 788,906 | |||||||
Revenue recognized | 72,564 | 555,646 | 290,674 | ||||||
Post-origination services | Revolving loan products (One Card) | |||||||||
Revenue recognition | |||||||||
Total net revenues | 68,826 | 48,815 | 203,748 | 269,718 | 282,057 | ||||
Post-origination services | Nonrevolving loan products | |||||||||
Revenue recognition | |||||||||
Total net revenues | 202,097 | 30,226 | 85,218 | ||||||
Post-origination services | Direct lending program revenue | |||||||||
Revenue recognition | |||||||||
Total net revenues | 9,178 | 481,417 | 453,257 | 304,788 | 164 | ||||
Others | |||||||||
Revenue recognition | |||||||||
Total net revenues | 89,093 | $ 13,799 | 17,979 | ¥ 219,756 | $ 34,036 | ¥ 342,334 | ¥ 228,372 | ||
Others | Others | |||||||||
Revenue recognition | |||||||||
Total net revenues | ¥ 89,093 | ¥ 17,979 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Contract assets, net (Details) ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||
Contract assets from loan facilitation services and post origination services | ¥ 20,815 | ¥ 25,123 | ¥ 27,079 | ||||||
Less: Allowance for loss for collectability | (14,321) | (14,749) | (2,255) | ¥ (329) | |||||
Total | 6,494 | 10,374 | 24,824 | $ 1,006 | $ 1,607 | ||||
Movement of allowance for contract assets | |||||||||
Balance at beginning of the year | 14,749 | ¥ 2,255 | 2,255 | 329 | |||||
Provision/(Reversal) for doubtful contract assets | 428 | $ 66 | ¥ 329 | 18,605 | $ 2,882 | 14,811 | 329 | ||
Write-offs | (6,111) | (12,885) | |||||||
Balance at end of the year | ¥ 14,321 | ¥ 14,749 | ¥ 2,255 | ¥ 329 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Quality assurance fund liability and Loan Receivables (Details) - CNY (¥) ¥ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 25, 2016 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Balance of the quality assurance fund | ¥ 287,000 | |||
Loan receivables | ||||
Allowance for doubtful accounts, loans receivable | ¥ 56,466 | ¥ 320,944 | ¥ 615,592 |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Restricted cash (Details) ¥ in Thousands, $ in Thousands | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||
Restricted bank deposits | ¥ 376,796 | $ 58,358 | ¥ 390,702 | $ 60,512 | ¥ 125,437 |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Term deposits (Details) ¥ in Thousands, $ in Thousands | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||
Term deposits | ¥ 102,408 | $ 15,861 | ¥ 133,761 | $ 20,717 | ¥ 24,000 |
SUMMARY OF SIGNIFICANT ACCOU_12
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Loan receivables and Allowance for doubtful accounts (Details) - CNY (¥) ¥ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||
Nov. 30, 2019 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for doubtful accounts | ||||||
Provision for doubtful accounts | ¥ 44,724 | ¥ 328,750 | ¥ 2,134,156 | |||
Reversal | (428) | (329) | ¥ (2,966) | |||
Write off | (288,163) | (609,853) | (54,076) | (25,592) | ||
Allowance for doubtful accounts | 1,550,315 | 1,793,754 | 2,085,814 | 6,063 | ¥ 34,621 | |
Valuation allowance for accounts receivable from insurance company | ¥ 1,432,312 | |||||
ASU 2016-13 | Cumulative adjustment | ||||||
Allowance for doubtful accounts | ||||||
Allowance for doubtful accounts | 11,537 | |||||
Accounts receivable | ||||||
Allowance for doubtful accounts | ||||||
Provision for doubtful accounts | 39,925 | 13,545 | 1,447,582 | |||
Reversal | (2,966) | |||||
Write off | (15,186) | (25,592) | ||||
Allowance for doubtful accounts | 1,486,919 | 1,446,994 | 1,433,449 | 1,053 | 29,611 | |
Other receivables | ||||||
Allowance for doubtful accounts | ||||||
Provision for doubtful accounts | 3,813 | 36,803 | ||||
Reversal | (329) | |||||
Write off | (14,279) | (22,494) | (4,711) | |||
Allowance for doubtful accounts | 6,930 | 17,396 | 36,773 | ¥ 5,010 | ¥ 5,010 | |
Other receivables | ASU 2016-13 | Cumulative adjustment | ||||||
Allowance for doubtful accounts | ||||||
Allowance for doubtful accounts | 3,117 | |||||
Loans receivable | ||||||
Allowance for doubtful accounts | ||||||
Provision for doubtful accounts | 986 | 315,205 | 649,771 | |||
Write off | (273,884) | (609,853) | (34,179) | |||
Allowance for doubtful accounts | ¥ 56,466 | ¥ 329,364 | 615,592 | |||
Loans receivable | ASU 2016-13 | Cumulative adjustment | ||||||
Allowance for doubtful accounts | ||||||
Allowance for doubtful accounts | ¥ 8,420 |
SUMMARY OF SIGNIFICANT ACCOU_13
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Long-term investment and Goodwill (Details) ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Impairment loss of equity securities without readily determinable fair value | ¥ 2,056 | $ 318 | ¥ 0 | ¥ 282,076 | $ 43,688 | ¥ 154,898 | ¥ 23,140 |
Impairment losses on equity method investment | 0 | 30,322 | 179,193 | 27,753 | 22,830 | 0 | |
Impairment losses on held-to-maturity and availableforsale investments | 0 | 0 | 1,221 | 0 | 0 | ||
Balances of held-to-maturity securities | 33,079 | 33,079 | 15,200 | 0 | |||
Goodwill impairment | ¥ 0 | ¥ 50,291 | ¥ 50,291 | $ 7,789 | ¥ 6,191 | ¥ 0 |
SUMMARY OF SIGNIFICANT ACCOU_14
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property, equipment and software, net (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Computer and electronic equipment | ||
PROPERTY, EQUIPMENT AND SOFTWARE, NET | ||
Estimated useful lives | P3Y | 3 years |
Furniture and office equipment | ||
PROPERTY, EQUIPMENT AND SOFTWARE, NET | ||
Estimated useful lives | P5Y | 5 years |
Office building | ||
PROPERTY, EQUIPMENT AND SOFTWARE, NET | ||
Estimated useful lives | P20Y | 20 years |
License | ||
PROPERTY, EQUIPMENT AND SOFTWARE, NET | ||
Estimated useful lives | P20Y | 20 years |
Software | ||
PROPERTY, EQUIPMENT AND SOFTWARE, NET | ||
Estimated useful lives | P5Y | 5 years |
SUMMARY OF SIGNIFICANT ACCOU_15
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Government subsidy income and Leases (Details) - CNY (¥) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Government grants received | ¥ 208,000 | ¥ 889,000 | ¥ 27,440,000 | ¥ 33,665 | ¥ 23,364 |
Maximum | |||||
Remaining lease terms | 4 years | 4 years |
SUMMARY OF SIGNIFICANT ACCOU_16
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Convenience translation and Significant risks and uncertainties (Details) ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Jun. 30, 2020CNY (¥) | Dec. 31, 2018CNY (¥) | |
Significant risks and uncertainties | |||||||
Foreign currency, exchange rate | 6.4566 | 6.4566 | |||||
Cash and cash equivalents | ¥ 1,877,191 | ¥ 2,726,712 | ¥ 4,684,003 | $ 290,740 | $ 422,314 | ¥ 3,651,788 | ¥ 5,469,077 |
Loan receivables, net | 202,130 | 267,383 | 778,480 | $ 31,306 | $ 41,412 | ||
RMB | |||||||
Significant risks and uncertainties | |||||||
Cash and cash equivalents | ¥ 1,302,483 | ¥ 1,531,340 | ¥ 3,251,899 | ||||
Foreign currency risk | Cash and cash equivalents | RMB | |||||||
Significant risks and uncertainties | |||||||
Concentration risk percentage | 69.38% | 56.16% | 69.43% | ||||
Credit risk | Services | Accounts receivable balance | |||||||
Significant risks and uncertainties | |||||||
Concentration risk percentage | 83.54% |
SUMMARY OF SIGNIFICANT ACCOU_17
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recent accounting pronouncements (Details) ¥ in Thousands, $ in Thousands | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Jan. 20, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||
Right-of-use assets | ¥ 25,987 | $ 4,025 | ¥ 28,668 | $ 4,440 | ¥ 121,791 | |
Operating lease liabilities | 25,604 | 3,966 | 29,503 | 4,569 | 125,407 | |
Retained earnings (deficit) | ¥ (2,010,642) | $ (311,409) | ¥ (1,822,749) | $ (282,308) | ¥ 44,767 | ¥ 488,236 |
BUSINESS ACQUISITIONS (Details)
BUSINESS ACQUISITIONS (Details) ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021CNY (¥) | Dec. 31, 2019CNY (¥) | Jun. 30, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | |
Business Acquisition [Line Items] | |||||
Total cash consideration transferred (net of cash acquired) | ¥ 49,411 | ||||
Gain recognized on remeasurement of previously held equity interest in acquiree | ¥ 656,795 | 16,272 | |||
Goodwill recognized in these acquisitions | ¥ 22,119 | 72,224 | $ 3,426 | ¥ 22,121 | $ 3,426 |
Several business combinations | |||||
Business Acquisition [Line Items] | |||||
Total cash consideration transferred (net of cash acquired) | 49,411 | ||||
Cash acquired | 12,577 | ||||
Fair value of existing equity interest | 35,040 | ||||
Gain recognized on remeasurement of previously held equity interest in acquiree | 16,272 | ||||
Purchase price allocated to the fair value of assets acquired | 111,025 | ||||
Purchase price allocated to the fair value of liabilities assumed | 10,712 | ||||
Purchase price allocated to the fair value of non-controlling | 15,862 | ||||
Goodwill recognized in these acquisitions | 64,954 | ||||
Several business combinations | Trade Name | |||||
Business Acquisition [Line Items] | |||||
Purchase price allocated to the fair value of intangible assets acquired | ¥ 6,400 | ||||
Amortization periods of intangible assets acquired (in years) | 10 years | ||||
Several business combinations | Technology | |||||
Business Acquisition [Line Items] | |||||
Purchase price allocated to the fair value of intangible assets acquired | ¥ 27,600 | ||||
Amortization periods of intangible assets acquired (in years) | 5 years |
LOAN RECEIVABLES, NET (Details)
LOAN RECEIVABLES, NET (Details) ¥ in Thousands, $ in Thousands | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
LOAN RECEIVABLES, NET | |||||
Loan receivables | ¥ 258,596 | ¥ 596,747 | ¥ 1,394,072 | ||
Less: Allowance for doubtful accounts | (56,466) | (320,944) | (615,592) | ||
Less: Adpotion of new accounting standard in the last fiscal year | (8,420) | ||||
Total | ¥ 202,130 | $ 31,306 | ¥ 267,383 | $ 41,412 | ¥ 778,480 |
LOAN RECEIVABLES, NET - Narrati
LOAN RECEIVABLES, NET - Narrative (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Apr. 30, 2018CNY (¥) | Jun. 30, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | Nov. 05, 2021CNY (¥) | Jun. 30, 2021USD ($) | May 31, 2021CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Nov. 06, 2019CNY (¥) | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Loan receivables, net | ¥ 202,130,000 | ¥ 267,383,000 | $ 31,306 | $ 41,412 | ¥ 778,480,000 | ||||
Allowance for loan losses recorded for loan receivables | 56,466,000 | 320,944,000 | 615,592,000 | ||||||
Allowance for doubtful accounts for other loan receivables | 56,500,000 | 320,900 | 73,800,000 | ||||||
Loan receivables on non-accrual status | 16,500,000 | 29,500,000 | 21,338,000 | ||||||
Zhongji Wealth Guarantee Co., Ltd. | Unsecured loans | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Loan receivables, net | ¥ 34,400,000 | ¥ 360,540,000 | |||||||
Term of loan (in years) | 12 months | 12 years | |||||||
Zhongji Wealth Guarantee Co., Ltd. | Minimum | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Term of loan (in years) | 1 year | ||||||||
Zhongji Wealth Guarantee Co., Ltd. | Minimum | Unsecured loans | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Interest rate (as a percent) | 4.00% | 4.00% | 4.00% | 4.00% | |||||
Zhongji Wealth Guarantee Co., Ltd. | Maximum | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Term of loan (in years) | 2 years 6 months | ||||||||
Zhongji Wealth Guarantee Co., Ltd. | Maximum | Unsecured loans | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Interest rate (as a percent) | 10.00% | 10.00% | 10.00% | 10.00% | |||||
Zhongguo Factoring | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Total loans | ¥ 1,431,800,000 | ||||||||
Loan receivables, net | ¥ 0 | 541,800,000 | |||||||
Maturity of a loan | ¥ 427,500,000 | ||||||||
Allowance for loan losses recorded for loan receivables | 0 | ¥ 541,800,000 | |||||||
Loan receivables repaid | 7,400,000 | ||||||||
Zhongguo Factoring | Minimum | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Interest rate (as a percent) | 4.35% | ||||||||
Zhongguo Factoring | Maximum | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Interest rate (as a percent) | 9.00% | ||||||||
Certain post loan service companies | Subsequent events | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Loan receivables repaid | ¥ 22,000,000 | ¥ 10,800,000 | |||||||
Certain post loan service companies | Unsecured loans | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Total loans | ¥ 50,200,000 | ¥ 66,200,000 | |||||||
Term of loan (in years) | 21 months | 21 months | |||||||
Certain post loan service companies | Zhongji Wealth Guarantee Co., Ltd. | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Loans guaranteed | ¥ 170,000,000 | ¥ 170,000,000 | |||||||
Interest rate (as a percent) | 6.00% | 6.00% | 6.00% | 6.00% | |||||
Certain post loan service companies | Zhongji Wealth Guarantee Co., Ltd. | Minimum | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Term of loan (in years) | 11 months | 11 months | |||||||
Certain post loan service companies | Zhongji Wealth Guarantee Co., Ltd. | Maximum | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Term of loan (in years) | 12 months | 12 months | |||||||
Certain third-party loan borrowers | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Loan receivables, net | ¥ 258,600,000 | ¥ 596,700,000 |
LOAN RECEIVABLES, NET - Aging o
LOAN RECEIVABLES, NET - Aging of loans (Details) - CNY (¥) ¥ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | |||
Total past due | ¥ 16,500 | ¥ 29,500 | ¥ 73,677 |
Current | 242,096 | 567,247 | 1,320,395 |
Total loans | 258,596 | 596,747 | 1,394,072 |
1 - 89 days past due | |||
Financing Receivable, Past Due [Line Items] | |||
Total past due | 52,339 | ||
90 days or more past due | |||
Financing Receivable, Past Due [Line Items] | |||
Total past due | ¥ 16,500 | ¥ 29,500 | ¥ 21,338 |
PREPAID EXPENSE AND OTHER ASS_3
PREPAID EXPENSE AND OTHER ASSETS (Details) ¥ in Thousands, $ in Thousands | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
PREPAID EXPENSE AND OTHER ASSETS | |||||
Deposits | ¥ 81,068 | ¥ 91,258 | ¥ 100,278 | ||
Advances to suppliers | 124,365 | 10,607 | 37,118 | ||
Prepaid taxes | 320,408 | 338,450 | 294,487 | ||
Prepaid service fee | 11,015 | 45,201 | 17,268 | ||
Prepaid investment | 304,996 | 270,996 | 632,096 | ||
Others | 40,313 | 37,046 | 56,540 | ||
Less: Adoption of new accounting standard | (394) | (466) | |||
Total | ¥ 881,771 | $ 136,569 | ¥ 793,092 | $ 122,834 | ¥ 1,137,787 |
FAIR VALUE OF ASSETS AND LIAB_3
FAIR VALUE OF ASSETS AND LIABILITIES (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2021 | Dec. 31, 2018 | |
Assets | ||||
Available-for-sale investment | ¥ 0 | ¥ 10,443 | ¥ 34,476 | |
Total Assets | 10,443 | ¥ 0 | ||
Assets transfer into level 3 | 0 | 0 | ||
Assets transfer out of level 3 | 0 | 0 | ||
Liabilities transfer into level 3 | 0 | 0 | ||
Liabilities transfer out of level 3 | ¥ 0 | 0 | ||
Level 1 | Recurring | ||||
Assets | ||||
Available-for-sale investment | 0 | |||
Total Assets | 0 | 206,272 | ||
Level 2 | Recurring | ||||
Assets | ||||
Available-for-sale investment | 0 | |||
Total Assets | 0 | 0 | ||
Level 3 | Recurring | ||||
Assets | ||||
Available-for-sale investment | 10,443 | |||
Total Assets | ¥ 10,443 | ¥ 0 |
LONG-TERM INVESTMENTS (Details)
LONG-TERM INVESTMENTS (Details) ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | 18 Months Ended | |||||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Jun. 30, 2021CNY (¥) | |
Equity securities without readily determinable fair value | ||||||||
Beginning Balance | ¥ 647,702 | ¥ 543,178 | ¥ 543,178 | ¥ 699,747 | ¥ 543,178 | |||
Additions | 34,566 | 396,549 | 5,000 | |||||
Disposal | (23,887) | (5,000) | (8,750) | |||||
Share of (loss) in equity method investments | (7,629) | $ (1,182) | (5,741) | (21,317) | $ (3,302) | (29,455) | ¥ (41,143) | |
Impairment loss of investments | (2,056) | (318) | 0 | (282,076) | (43,688) | (154,898) | (23,140) | |
Unrealized losses recorded in accumulated other comprehensive loss | (100) | (99) | (1,146) | |||||
Impact of exchange rate | 470 | (4,949) | 2,079 | |||||
Ending Balance | 656,795 | 647,702 | 543,178 | 699,747 | 656,795 | |||
Gain recognized on remeasurement of previously held equity interest in acquire (Note 3) | 656,795 | 16,272 | ||||||
Business combinations achieved in stages (Note 3) | (35,040) | |||||||
Equity method investments | ||||||||
Beginning Balance | 57,491 | 206,823 | 206,823 | 219,935 | 206,823 | |||
Additions | 53,929 | 161,951 | ||||||
Disposal | (104,149) | |||||||
Share of (loss) in equity method investments | (7,629) | (1,182) | (5,741) | (21,317) | (3,302) | (29,455) | (41,143) | |
Impairment charges | 0 | (30,322) | (179,193) | (27,753) | (22,830) | 0 | ||
Unrealized losses recorded in accumulated other comprehensive loss | (100) | (99) | (1,146) | |||||
Impact of exchange rate | (740) | (2,751) | 139 | |||||
Gain recognized on remeasurement of previously held equity interest in acquire (Note 3) | 656,795 | 16,272 | ||||||
Business combinations achieved in stages (Note 3) | (35,040) | |||||||
Ending Balance | 49,122 | 57,491 | 206,823 | 219,935 | 49,122 | |||
Available for sales investment | ||||||||
Beginning Balance | 0 | 10,443 | 10,443 | 34,476 | 10,443 | |||
Additions | 10,533 | |||||||
Disposal | (10,443) | (35,739) | ||||||
Share of (loss) in equity method investments | (7,629) | (1,182) | (5,741) | (21,317) | (3,302) | (29,455) | (41,143) | |
Impairment charges | 0 | (30,322) | (179,193) | (27,753) | (22,830) | 0 | ||
Unrealized losses recorded in accumulated other comprehensive loss | (100) | (99) | (1,146) | |||||
Impact of exchange rate | (1,272) | |||||||
Gain recognized on remeasurement of previously held equity interest in acquire (Note 3) | 656,795 | 16,272 | ||||||
Business combinations achieved in stages (Note 3) | (35,040) | |||||||
Ending Balance | 0 | 10,443 | 34,476 | |||||
Held-to-maturity investment | ||||||||
Beginning balance | 33,079 | 15,200 | 15,200 | 0 | 15,200 | |||
Additions | 19,100 | 15,200 | ||||||
Impairment charges | (1,221) | |||||||
Ending balance | 33,079 | 33,079 | 15,200 | 0 | 33,079 | |||
Long term investments | ||||||||
Beginning Balance | 738,272 | 114,344 | ¥ 775,644 | 775,644 | 954,158 | 775,644 | ||
Additions | 34,566 | 469,578 | 192,684 | |||||
Disposal | (23,887) | (15,443) | (148,638) | |||||
Share of (loss) in equity method investments | (7,629) | (21,317) | (29,455) | |||||
Impairment charges | (2,056) | (462,490) | (177,728) | |||||
Unrealized losses recorded in accumulated other comprehensive loss | (99) | |||||||
Impact of exchange rate | (270) | (7,700) | 3,490 | |||||
Gain recognized on remeasurement of previously held equity interest in acquire (Note 3) | 16,272 | |||||||
Business combinations achieved in stages (Note 3) | (35,040) | |||||||
Ending Balance | ¥ 738,996 | $ 114,456 | ¥ 738,272 | $ 114,344 | ¥ 775,644 | ¥ 954,158 | ¥ 738,996 |
LONG-TERM INVESTMENTS - Equity
LONG-TERM INVESTMENTS - Equity securities without readily determinable fair value (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | 18 Months Ended | ||||||||||||||||||
Nov. 30, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Jul. 31, 2019CNY (¥)shares | Sep. 30, 2018CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2018USD ($) | Jan. 31, 2018USD ($) | Dec. 31, 2014CNY (¥)shares | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Jun. 30, 2021CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Feb. 28, 2018 | Dec. 31, 2017CNY (¥) | |
Subsidiary or Equity Method Investee [Line Items] | ||||||||||||||||||||||
Equity securities without readily determinable fair value | ¥ 543,178,000 | ¥ 656,795,000 | ¥ 647,702,000 | ¥ 543,178,000 | ¥ 699,747,000 | ¥ 656,795,000 | ||||||||||||||||
Impairment loss of investments | 2,056,000 | $ 318 | ¥ 0 | 282,076,000 | $ 43,688 | 154,898,000 | 23,140,000 | |||||||||||||||
Share of profit in equity method investments | (7,629,000) | (1,182) | ¥ (5,741,000) | ¥ (21,317,000) | $ (3,302) | (29,455,000) | ¥ (41,143,000) | |||||||||||||||
Disposal gain | (114,211,000) | $ (17,689) | 6,057,000 | |||||||||||||||||||
Abakus | ||||||||||||||||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||||||||||||||||
Number of ordinary shares agreed to repurchase | shares | 75,796 | |||||||||||||||||||||
Cash consideration for ordinary shares agreed to repurchase | ¥ 14,807,000 | |||||||||||||||||||||
Nanjing Lefang | ||||||||||||||||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||||||||||||||||
Equity securities without readily determinable fair value | ¥ 181,368,000 | ¥ 181,368,000 | ||||||||||||||||||||
Purchase of equity interest (as a percent) | 21.28% | 21.28% | ||||||||||||||||||||
Purchase of investments, cash consideration | ¥ 250,000,000 | |||||||||||||||||||||
Equity interest (as a percent) | 30.53% | 30.53% | 30.53% | 30.53% | 30.53% | |||||||||||||||||
Impairment loss of investments | ¥ 181,368,000 | ¥ 99,868,000 | ||||||||||||||||||||
Shanghai Xinzheng | ||||||||||||||||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||||||||||||||||
Equity securities without readily determinable fair value | ¥ 129,786,000 | ¥ 129,786,000 | ¥ 129,786,000 | ¥ 129,786,000 | ¥ 129,786,000 | |||||||||||||||||
Purchase of equity interest (as a percent) | 15.00% | |||||||||||||||||||||
Purchase of investments, cash consideration | ¥ 129,786,000 | |||||||||||||||||||||
Equity interest (as a percent) | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | |||||||||||||||
Impairment loss of investments | ¥ 0 | ¥ 0 | ¥ 0 | |||||||||||||||||||
Impairment existed | ¥ 0 | 0 | ¥ 0 | 0 | ¥ 0 | |||||||||||||||||
Abakus | ||||||||||||||||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||||||||||||||||
Equity securities without readily determinable fair value | ¥ 98,709,000 | 8,750,000 | ¥ 98,709,000 | |||||||||||||||||||
Purchase of investments, cash consideration | ¥ 6,500,000 | |||||||||||||||||||||
Equity interest (as a percent) | 18.97% | 18.97% | 18.97% | 18.97% | 18.97% | 19.86% | ||||||||||||||||
Number of ordinary shares subscribed | shares | 3,579,000 | |||||||||||||||||||||
Equity interest (as a percent) | 19.30% | 19.30% | 22.17% | |||||||||||||||||||
Share of profit in equity method investments | ¥ 2,261,000 | |||||||||||||||||||||
Disposal gain | ¥ 6,057,000 | |||||||||||||||||||||
Ezhou Rural Commercial bank | ||||||||||||||||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||||||||||||||||
Equity securities without readily determinable fair value | ¥ 40,000,000 | 40,000,000 | ¥ 40,000,000 | ¥ 40,000,000 | 40,000,000 | |||||||||||||||||
BitPay, Inc. | ||||||||||||||||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||||||||||||||||
Equity securities without readily determinable fair value | ¥ 27,847,000 | ¥ 24,783,000 | ¥ 26,100,000 | ¥ 27,847,000 | ¥ 24,783,000 | |||||||||||||||||
Purchase of equity interest (as a percent) | 1.11% | 1.11% | ||||||||||||||||||||
Purchase of investments, cash consideration | $ | $ 4,000 | |||||||||||||||||||||
Equity interest (as a percent) | 1.11% | 1.11% | 1.11% | 1.11% | 1.11% | 1.11% | 1.11% | |||||||||||||||
Impairment loss of investments | ¥ 0 | ¥ 0 | ¥ 0 | |||||||||||||||||||
Impairment existed | ¥ 0 | ¥ 0 | 0 | ¥ 0 | 0 | 0 | ||||||||||||||||
Hubei Consumption | ||||||||||||||||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||||||||||||||||
Equity securities without readily determinable fair value | 361,100,000 | 361,100,000 | 361,100,000 | |||||||||||||||||||
Purchase of investments, cash consideration | ¥ 361,100,000 | ¥ 361,100,000 | ||||||||||||||||||||
Equity interest (as a percent) | 24.47% | 0.00% | 24.47% | 0.00% | 24.47% | |||||||||||||||||
Impairment loss of investments | 0 | ¥ 0 | ||||||||||||||||||||
Impairment existed | 0 | 0 | 0 | |||||||||||||||||||
Goopal Group | ||||||||||||||||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||||||||||||||||
Equity securities without readily determinable fair value | ¥ 18,936,000 | 17,562,000 | ¥ 17,748,000 | ¥ 18,936,000 | 17,562,000 | |||||||||||||||||
Purchase of equity interest (as a percent) | 1.94% | 1.94% | 1.94% | |||||||||||||||||||
Purchase of investments, cash consideration | $ | $ 2,720 | $ 2,720 | ||||||||||||||||||||
Equity interest (as a percent) | 1.94% | 1.94% | 1.94% | 1.94% | 1.94% | 1.94% | ||||||||||||||||
Impairment loss of investments | 0 | ¥ 0 | ¥ 0 | |||||||||||||||||||
Impairment existed | 0 | 0 | $ 0 | $ 0 | $ 0 | |||||||||||||||||
Zhuhai Yuanxin | ||||||||||||||||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||||||||||||||||
Equity securities without readily determinable fair value | ¥ 15,000,000 | 15,000,000 | 15,000,000 | 15,000,000 | ||||||||||||||||||
Purchase of investments, cash consideration | ¥ 15,000,000 | |||||||||||||||||||||
Equity interest (as a percent) | 33.33% | |||||||||||||||||||||
Impairment loss of investments | 0 | 0 | ||||||||||||||||||||
Impairment existed | 0 | 0 | 0 | |||||||||||||||||||
Ningbo Weilie | ||||||||||||||||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||||||||||||||||
Equity securities without readily determinable fair value | 20,000,000 | 20,000,000 | 20,000,000 | ¥ 20,000,000 | ||||||||||||||||||
Equity interest (as a percent) | 8.50% | |||||||||||||||||||||
Impairment loss of investments | 0 | 0 | ||||||||||||||||||||
Impairment existed | 0 | 0 | 0 | |||||||||||||||||||
Others | ||||||||||||||||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||||||||||||||||
Equity securities without readily determinable fair value | ¥ 29,097,000 | 37,968,000 | ¥ 29,097,000 | |||||||||||||||||||
Impairment loss of investments | ¥ 0 | ¥ 20,724,000 | ¥ 23,140,000 |
LONG-TERM INVESTMENTS - Equit_2
LONG-TERM INVESTMENTS - Equity method investments (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||
Oct. 31, 2019CNY (¥)shares | Jun. 30, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Sep. 30, 2017CNY (¥) | Jul. 31, 2017CNY (¥) | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | May 31, 2018 | |
Subsidiary or Equity Method Investee [Line Items] | |||||||||||||
Equity method investments | ¥ 49,122,000 | ¥ 57,491,000 | ¥ 206,823,000 | ¥ 219,935,000 | |||||||||
Share of (loss) in equity method investments | (7,629,000) | $ (1,182) | ¥ (5,741,000) | (21,317,000) | $ (3,302) | (29,455,000) | (41,143,000) | ||||||
Gain (loss) on disposal of equity method investments | (59,058,000) | (2,035,000) | |||||||||||
Impairment loss | 0 | 1,221,000 | 0 | ||||||||||
CSJ Golden Bull | |||||||||||||
Subsidiary or Equity Method Investee [Line Items] | |||||||||||||
Equity method investments | ¥ 21,143,000 | ¥ 22,135,000 | ¥ 26,675,000 | ||||||||||
Purchase of investments, cash consideration | ¥ 40,900,000 | ||||||||||||
Equity interest (as a percent) | 25.00% | 25.00% | 25.00% | ||||||||||
Share of (loss) in equity method investments | ¥ 4,540,000 | ¥ 6,764,000 | 6,181,000 | ||||||||||
Suzhou Qingyu | |||||||||||||
Subsidiary or Equity Method Investee [Line Items] | |||||||||||||
Equity method investments | ¥ 19,092,000 | ||||||||||||
Purchase of investments, cash consideration | ¥ 20,000,000 | ¥ 10,000,000 | |||||||||||
Equity interest (as a percent) | 9.88% | 13.03% | 20.00% | ||||||||||
Share of (loss) in equity method investments | (4,648,000) | ¥ (4,615,000) | ¥ (5,083,000) | ||||||||||
Purchase of equity interest (as a percent) | 3.15% | 20.00% | |||||||||||
Suzhou Qingyu | Suzhou Qingyu | Minimum | |||||||||||||
Subsidiary or Equity Method Investee [Line Items] | |||||||||||||
Equity interest (as a percent) | 9.88% | ||||||||||||
Suzhou Qingyu | Suzhou Qingyu | Maximum | |||||||||||||
Subsidiary or Equity Method Investee [Line Items] | |||||||||||||
Equity interest (as a percent) | 20.00% | ||||||||||||
Cornerstone Unicorn No.3 Private Equity Investment Fund | |||||||||||||
Subsidiary or Equity Method Investee [Line Items] | |||||||||||||
Equity method investments | ¥ 132,859,000 | ||||||||||||
Purchase of investments, cash consideration | ¥ 141,460,000 | ||||||||||||
Equity interest (as a percent) | 92.00% | ||||||||||||
Number of fund shares purchased | shares | 141,460,000 | ||||||||||||
Total number of fund shares | shares | 152,460,000 | ||||||||||||
Others | |||||||||||||
Subsidiary or Equity Method Investee [Line Items] | |||||||||||||
Equity method investments | ¥ 27,979,000 | ¥ 35,356,000 | ¥ 28,197,000 | ||||||||||
Ningbo Weilie | |||||||||||||
Subsidiary or Equity Method Investee [Line Items] | |||||||||||||
Total consideration | ¥ 20,000,000 |
LONG-TERM INVESTMENTS - Held-to
LONG-TERM INVESTMENTS - Held-to-maturity investments (Details) - CNY (¥) ¥ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
LONG-TERM INVESTMENTS | |||
Cash consideration | ¥ 19,100 | ¥ 15,200 | |
Impairment loss | ¥ 0 | ¥ 1,221 | ¥ 0 |
PROPERTY, EQUIPMENT AND SOFTW_3
PROPERTY, EQUIPMENT AND SOFTWARE, NET (Details) ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | |
PROPERTY, EQUIPMENT AND SOFTWARE, NET | |||||||||
Total property and equipment | ¥ 168,750 | ¥ 163,468 | ¥ 172,147 | ||||||
Accumulated depreciation and amortization | (93,092) | (79,147) | (61,771) | ||||||
Impairment loss for technology of discontinued online lending information services | (23,235) | (20,925) | |||||||
Property, equipment, net | 52,423 | 63,396 | 110,376 | $ 8,119 | $ 9,819 | ||||
Depreciation expense | 13,945 | $ 2,160 | ¥ 10,032 | 14,500 | $ 2,246 | 28,071 | ¥ 16,123 | ||
Office building | |||||||||
PROPERTY, EQUIPMENT AND SOFTWARE, NET | |||||||||
Total property and equipment | 46,376 | 19,470 | 19,470 | ||||||
Computer and electronic equipment | |||||||||
PROPERTY, EQUIPMENT AND SOFTWARE, NET | |||||||||
Total property and equipment | 59,008 | 57,856 | 62,748 | ||||||
Furniture and office equipment | |||||||||
PROPERTY, EQUIPMENT AND SOFTWARE, NET | |||||||||
Total property and equipment | 9,455 | 10,065 | 14,039 | ||||||
Leasehold improvements | |||||||||
PROPERTY, EQUIPMENT AND SOFTWARE, NET | |||||||||
Total property and equipment | 2,476 | 30,069 | 33,050 | ||||||
Software | |||||||||
PROPERTY, EQUIPMENT AND SOFTWARE, NET | |||||||||
Total property and equipment | ¥ 51,435 | ¥ 46,008 | ¥ 42,840 |
INTANGIBLE ASSETS, NET (Details
INTANGIBLE ASSETS, NET (Details) ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
INTANGIBLE ASSETS, NET | |||||||
Total Intangible assets | ¥ 85,553 | ¥ 85,880 | ¥ 88,006 | ||||
Accumulated amortization | (27,988) | (24,247) | (14,530) | ||||
Impairment loss of technology with discontinued online lending information intermediaries | (17,220) | (17,220) | |||||
Intangible assets, net | 40,345 | 44,413 | 73,476 | ||||
Amortization expense | 3,741 | $ 579 | ¥ 5,693 | 9,717 | $ 1,505 | 9,398 | ¥ 2,640 |
Expected amortization expense related to intangible assets | |||||||
2021 | 3,465 | 7,281 | |||||
2022 | 5,557 | 5,599 | |||||
2023 | 5,557 | 5,599 | |||||
2024 | 3,954 | 3,971 | |||||
2025 | 3,379 | 3,397 | |||||
Thereafter | ¥ 18,433 | ¥ 18,568 | |||||
Minimum | |||||||
INTANGIBLE ASSETS, NET | |||||||
Amortization periods (in years) | 2 years 7 months 6 days | 2 years 7 months 6 days | 2 years 7 months 6 days | 2 years 7 months 6 days | |||
Maximum | |||||||
INTANGIBLE ASSETS, NET | |||||||
Amortization periods (in years) | 20 years | 20 years | 20 years | 20 years | |||
Brokerage licenses | |||||||
INTANGIBLE ASSETS, NET | |||||||
Total Intangible assets | ¥ 51,553 | ¥ 51,880 | 54,006 | ||||
Trade Name | |||||||
INTANGIBLE ASSETS, NET | |||||||
Total Intangible assets | 6,400 | 6,400 | 6,400 | ||||
Technology | |||||||
INTANGIBLE ASSETS, NET | |||||||
Total Intangible assets | ¥ 27,600 | ¥ 27,600 | ¥ 27,600 |
ACCRUED EXPENSES AND OTHER LI_3
ACCRUED EXPENSES AND OTHER LIABILITIES (Details) ¥ in Thousands, $ in Thousands | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
ACCRUED EXPENSES AND OTHER LIABILITIES | |||||
Accrued advertising and marketing fee | ¥ 98,888 | ¥ 105,638 | ¥ 715,218 | ||
Payables related to services fee and others | 166,154 | 152,396 | 248,816 | ||
Amounts due to customers for the segregated bank balances held on their behalf | 474,969 | 405,719 | 125,437 | ||
Deposit | 2,486 | 2,913 | 15,995 | ||
Value added tax and surcharges | 6,590 | 16,494 | 42,699 | ||
Others | 37,126 | 43,526 | 80,945 | ||
Total accrued expenses and other current liabilities | ¥ 786,213 | $ 121,768 | ¥ 726,686 | $ 112,549 | ¥ 1,229,110 |
RELATED PARTY BALANCES AND TR_3
RELATED PARTY BALANCES AND TRANSACTIONS (Details) ¥ in Thousands, $ in Thousands | Apr. 20, 2018USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Related Party Transaction [Line Items] | |||||||
Services provided by related parties | ¥ 1,259 | ¥ 57,890 | ¥ 76,769 | ||||
Services provided to related parties | 2,099 | 35,001 | |||||
Amounts due from related parties | 50,000 | ||||||
Amounts due to related parties | 25,289 | 29,902 | ¥ 23,590 | $ 3,654 | $ 3,917 | ||
Loans to related parties | 50,884 | 142,181 | |||||
Beijing Shunwei | |||||||
Related Party Transaction [Line Items] | |||||||
Services provided to related parties | 3,941 | ||||||
Kashi Boya | |||||||
Related Party Transaction [Line Items] | |||||||
Services provided to related parties | 4,495 | ||||||
Shenzhen Boya | |||||||
Related Party Transaction [Line Items] | |||||||
Services provided to related parties | 6 | ||||||
Beijing Jiuzao | |||||||
Related Party Transaction [Line Items] | |||||||
Amounts due to related parties | 182 | 7,300 | |||||
Nanjing Lefang | |||||||
Related Party Transaction [Line Items] | |||||||
Services provided to related parties | 1,994 | 26,386 | |||||
Amounts due from related parties | 50,000 | ||||||
Amounts due to related parties | 18,834 | 18,474 | 18,834 | ||||
Shanghai Qiuzhi | |||||||
Related Party Transaction [Line Items] | |||||||
Services provided to related parties | 99 | ||||||
Amounts due to related parties | 120 | ||||||
Hangzhou Shuyun | |||||||
Related Party Transaction [Line Items] | |||||||
Amounts due to related parties | 18 | 883 | 18 | ||||
Zhuhai Hengqin Payment | |||||||
Related Party Transaction [Line Items] | |||||||
Amounts due to related parties | 4,731 | 3,125 | 4,731 | ||||
Others | |||||||
Related Party Transaction [Line Items] | |||||||
Services provided to related parties | 179 | ||||||
Nine F | |||||||
Related Party Transaction [Line Items] | |||||||
Loans to related parties | $ | $ 20,000 | ||||||
Loan term (in years) | 3 years | ||||||
Niche Global Fintech Corporation Limited | |||||||
Related Party Transaction [Line Items] | |||||||
Amounts due to related parties | 1,524 | ¥ 7 | |||||
Investors and borrower acquisition and referral services | |||||||
Related Party Transaction [Line Items] | |||||||
Services provided by related parties | 901 | 42,770 | 37,769 | ||||
Investors and borrower acquisition and referral services | Beijing Jiujia | |||||||
Related Party Transaction [Line Items] | |||||||
Services provided by related parties | 9,965 | ||||||
Investors and borrower acquisition and referral services | Beijing Shunwei | |||||||
Related Party Transaction [Line Items] | |||||||
Services provided by related parties | 0 | 1,221 | 5,133 | ||||
Investors and borrower acquisition and referral services | Shenzhen Boya | |||||||
Related Party Transaction [Line Items] | |||||||
Services provided by related parties | 4,696 | 9,781 | |||||
Investors and borrower acquisition and referral services | Beijing Jiuzao | |||||||
Related Party Transaction [Line Items] | |||||||
Services provided by related parties | 852 | 7,257 | |||||
Investors and borrower acquisition and referral services | Nanjing Lefang | |||||||
Related Party Transaction [Line Items] | |||||||
Services provided by related parties | 29,476 | 12,890 | |||||
Investors and borrower acquisition and referral services | Shanghai Qiuzhi | |||||||
Related Party Transaction [Line Items] | |||||||
Services provided by related parties | 49 | 120 | |||||
Credit inquiry services | |||||||
Related Party Transaction [Line Items] | |||||||
Services provided by related parties | 358 | 5,925 | 427 | ||||
Credit inquiry services | WeCash Xiangshan | |||||||
Related Party Transaction [Line Items] | |||||||
Services provided by related parties | 427 | ||||||
Credit inquiry services | Hangzhou Shuyun | |||||||
Related Party Transaction [Line Items] | |||||||
Services provided by related parties | ¥ 358 | 5,925 | |||||
Payment processing service | |||||||
Related Party Transaction [Line Items] | |||||||
Services provided by related parties | 9,175 | 38,312 | |||||
Payment processing service | Zhuhai Hengqin Payment | |||||||
Related Party Transaction [Line Items] | |||||||
Services provided by related parties | 9,175 | 17,808 | |||||
Payment processing service | Huoerguosi Payment | |||||||
Related Party Transaction [Line Items] | |||||||
Services provided by related parties | 20,504 | ||||||
Payment processing service | Others | |||||||
Related Party Transaction [Line Items] | |||||||
Services provided by related parties | ¥ 20 | ¥ 261 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 6 Months Ended | 9 Months Ended | 12 Months Ended | 24 Months Ended | 60 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2021 | |
Income Tax Disclosure [Line Items] | ||||||||
Statutory income tax rate (as a percent) | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | |||
Income tax rate on first HK$2 million profits | 8.25% | 8.25% | 8.25% | 8.25% | ||||
Income tax rate on remaining profits | 16.50% | 16.50% | 16.50% | 16.50% | ||||
Period for reassessment (in years) | 3 years | 3 years | ||||||
Minimum | ||||||||
Income Tax Disclosure [Line Items] | ||||||||
Preferential income tax rate (as a percent) | 15.00% | 15.00% | ||||||
Maximum | ||||||||
Income Tax Disclosure [Line Items] | ||||||||
Preferential income tax rate (as a percent) | 20.00% | 20.00% | ||||||
Beijing Muyu | ||||||||
Income Tax Disclosure [Line Items] | ||||||||
Preferential income tax rate (as a percent) | 15.00% | 15.00% | 15.00% | |||||
Jiufu Shuke, Jiufu Lianyin, Jiufu Puhui and Jiufu Wukong | ||||||||
Income Tax Disclosure [Line Items] | ||||||||
Preferential income tax rate (as a percent) | 15.00% | 15.00% | 15.00% | |||||
Yisi Hudong | ||||||||
Income Tax Disclosure [Line Items] | ||||||||
Preferential income tax rate (as a percent) | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | |||
9F Weiban | ||||||||
Income Tax Disclosure [Line Items] | ||||||||
Preferential income tax rate (as a percent) | 15.00% | 15.00% | 15.00% | 15.00% | ||||
Zhuhai Hengqin | ||||||||
Income Tax Disclosure [Line Items] | ||||||||
Preferential income tax rate (as a percent) | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | |||
Zhuhai Xiaojin | ||||||||
Income Tax Disclosure [Line Items] | ||||||||
Preferential income tax rate (as a percent) | 15.00% | 15.00% | 15.00% | |||||
Jiufu Dingdang | ||||||||
Income Tax Disclosure [Line Items] | ||||||||
Preferential income tax rate (as a percent) | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | |||
Xinjiang Shuke, Kashi Boya and Jiufu Chaoneng | ||||||||
Income Tax Disclosure [Line Items] | ||||||||
Period of exemption from income tax (in years) | 5 years | |||||||
Liangzi | ||||||||
Income Tax Disclosure [Line Items] | ||||||||
Preferential income tax rate (as a percent) | 25.00% | |||||||
Beijing Beibai Technology Co., Ltd, Beijing Juhuixuan Technology Co., Ltd, Shenzhen Jiufu Xinfu Commercial Factoring Co., Ltd, Jiuxing insurance brokerage Co., Ltd, Beijing Jiubao Technology Co., Ltd, Zhuhai Jiuxin Asset Management Co., Ltd, and Qianhai Jiufu network technology (Shenzhen) Co., Ltd | ||||||||
Income Tax Disclosure [Line Items] | ||||||||
Preferential income tax rate (as a percent) | 20.00% | 20.00% | 20.00% |
INCOME TAXES - Current and defe
INCOME TAXES - Current and deferred components of the income tax expense (Details) ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Current and deferred components of the income tax expense | |||||||
Current tax | ¥ 17,998 | ¥ 25,439 | ¥ 42,758 | ¥ 245,397 | ¥ 376,177 | ||
Deferred tax | 0 | (7,565) | 495,546 | (419,994) | 26,226 | ||
Total | ¥ 17,998 | $ 2,788 | ¥ 17,874 | ¥ 538,322 | $ 83,375 | ¥ (174,597) | ¥ 402,403 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of income tax expenses at statutory tax rate to income tax expense recognized (Details) ¥ in Thousands | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Reconciliation of income tax expense at statutory tax | ||||||||
Income (loss) before income tax expenses | ¥ (167,335) | $ (25,917,000) | ¥ (720,984) | ¥ (1,691,563) | $ (261,989,000) | ¥ (2,220,324) | ¥ 2,418,729 | |
Statutory EIT rate | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% |
Income tax expense at statutory tax rate | $ (41,834) | $ (180,246) | ¥ (422,891) | ¥ (555,081) | ¥ 604,682 | |||
Nondeductible expenses | ¥ 1,260 | ¥ 11,901 | 278,303 | 15,362 | 19,526 | |||
Change in valuation allowance | (252,398) | 96,202 | 504,360 | 43,350 | 20,980 | |||
Effect of tax holiday and preferential tax rate | 301,815 | $ 31,734 | 104,218 | 221,590 | (375,632) | |||
Share-based compensation expenses | 8,729 | 51,752 | 72,657 | 88,288 | 127,041 | |||
Effect of different tax rates of subsidiaries operating in other jurisdictions | 426 | 6,531 | 1,675 | 11,894 | 5,806 | |||
Total | 17,998 | $ 2,788,000 | 17,874 | 538,322 | $ 83,375,000 | (174,597) | 402,403 | |
Non-deductible expenses | ||||||||
Nondeductible expenses-excessive advertising fees | 0 | 0 | 2,927 | |||||
Other nondeductible expenses | 1,260 | 11,901 | 278,303 | 15,362 | 16,599 | |||
Total | ¥ 1,260 | ¥ 11,901 | ¥ 278,303 | ¥ 15,362 | ¥ 19,526 |
INCOME TAXES - Tax holiday and
INCOME TAXES - Tax holiday and preferential tax rate (Details) - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
INCOME TAXES | |||||
The aggregate amount of tax holiday and preferential tax rate | ¥ (301,815) | ¥ (31,734) | ¥ (104,218) | ¥ (221,590) | ¥ 375,632 |
The aggregate effect on basic and diluted net income per ordinary share: | |||||
-Basic | ¥ (3.01) | ¥ (0.16) | ¥ (0.52) | ¥ (1.27) | ¥ 2.31 |
-Diluted | ¥ (3.01) | ¥ (0.16) | ¥ (0.52) | ¥ (1.27) | ¥ 2.02 |
INCOME TAXES - Deferred tax ass
INCOME TAXES - Deferred tax assets (Details) - CNY (¥) ¥ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets | ||||||
Deferred revenue | ¥ 1,585 | ¥ 11,786 | ¥ 58,095 | ¥ 104,750 | ¥ 36,834 | |
Accrued expenses | 2,988 | 106,404 | 37,649 | 105,475 | 55,110 | |
Allowance for doubtful accounts | 11,374 | 330,488 | 305,435 | 265,745 | 4,335 | |
Net operating loss carry forward | 335,685 | 142,722 | 227,907 | 80,485 | 44,379 | |
Excess advertising fee | 12,630 | 81,923 | 47,202 | |||
Less: valuation allowance | ¥ (351,632) | ¥ (604,030) | (197,077) | (99,670) | (56,320) | ¥ (35,340) |
Total deferred tax assets, net | ¥ 513,932 | ¥ 503,987 | ¥ 84,338 |
INCOME TAXES - Movements of val
INCOME TAXES - Movements of valuation allowance (Details) - CNY (¥) ¥ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Movements of valuation allowance | |||||
Balance at beginning of year | ¥ 604,030 | ¥ 99,670 | ¥ 99,670 | ¥ 56,320 | ¥ 35,340 |
Additions | 97,407 | 504,360 | 56,132 | 34,459 | |
Reversal | (252,398) | 0 | (12,782) | (13,479) | |
Balance at end of year | ¥ 351,632 | ¥ 197,077 | ¥ 604,030 | ¥ 99,670 | ¥ 56,320 |
INCOME TAXES - Deferred tax lia
INCOME TAXES - Deferred tax liabilities (Details) - CNY (¥) ¥ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax liabilities: | |||||
Intangible asset from acquisition | ¥ 8,504 | ¥ 9,280 | ¥ 13,227 | ¥ 15,354 | ¥ 9,003 |
Contract assets | 1,861 | ||||
Total deferred liabilities | ¥ 8,504 | ¥ 9,280 | ¥ 13,227 | ¥ 17,215 | ¥ 9,003 |
INCOME TAXES - Additional infor
INCOME TAXES - Additional information (Details) - CNY (¥) ¥ in Thousands | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Line Items] | ||||||
Statutory income tax rate (as a percent) | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | |
Exemption period (in years) | 5 years | 5 years | ||||
Period for statute of limitations for underpayment of tax due to computational errors | 3 years | 3 years | ||||
Period for statute of limitations for underpayment of tax exceeding RMB0.1 million | 5 years | 5 years | ||||
Period for statute of limitations on related party transactions | 10 years | 10 years | ||||
Period for statute of limitations for tax evasion | 0 years | 0 years | ||||
Aggregate undistributed earnings of PRC subsidiaries and VIEs | ¥ 100 | ¥ 100 | ||||
Withholding tax rate (as a percent) | 10.00% | 10.00% | ||||
Withholding income taxes for undistributed profits of the Group's subsidiaries | ¥ 0 | ¥ 0 | ¥ 0 | ¥ 0 | ¥ 0 | |
HONG KONG | Investor holds at least 25% in the FIE | ||||||
Income Tax Disclosure [Line Items] | ||||||
Withholding tax rate (as a percent) | 5.00% | 5.00% | ||||
HONG KONG | Investor holds less than 25% in the FIE | ||||||
Income Tax Disclosure [Line Items] | ||||||
Withholding tax rate (as a percent) | 10.00% | 10.00% | ||||
Minimum | ||||||
Income Tax Disclosure [Line Items] | ||||||
Transfer price adjustment rate | 15.00% | 15.00% | ||||
Maximum | ||||||
Income Tax Disclosure [Line Items] | ||||||
Transfer price adjustment rate | 25.00% | 25.00% |
SHARE BASED COMPENSATION - Shar
SHARE BASED COMPENSATION - Share options (Details) ¥ / shares in Units, ¥ in Thousands | 6 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2021¥ / sharesshares | Dec. 31, 2020$ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2017shares | May 28, 2020shares | Apr. 20, 2020shares | Mar. 20, 2020shares | Dec. 31, 2015shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares reserved for issuance | 3,518,000 | 35,867,400 | ||||||||
Additional shares reserved for issuance | 3,518,000 | 35,867,400 | ||||||||
Exercise price per share | ¥ / shares | ¥ 0 | |||||||||
Share options expected to vest | 500,000 | 680,300 | 680,300 | |||||||
Vesting period | 5 years | 5 years | ||||||||
Exercise of share options (in shares) | 0 | 8,319,681 | ||||||||
Share based compensation | ¥ | ¥ 290,630 | ¥ 353,151 | ¥ 508,162 | |||||||
Option 1 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Granted (in shares) | 100,100 | |||||||||
Share options expected to vest | 4,425,211 | 100,100 | 618,400 | |||||||
Vesting period | 5 years | |||||||||
Option 1 | Tranche one | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 15.00% | |||||||||
Option 1 | Tranche two | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 20.00% | |||||||||
Option 1 | Tranche three | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 20.00% | |||||||||
Option 1 | Tranche four | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 20.00% | |||||||||
Option 1 | Tranche five | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 25.00% | |||||||||
Option 1 | Vest upon IPO | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Additional shares reserved for issuance | 500,700 | |||||||||
Option 2 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share options expected to vest | 2,655,127 | 2,853,911 | 2,853,911 | 34,600 | 400,000 | 1,426,955 | 1,426,955 | |||
Vesting period | 4 years | 4 years | ||||||||
Option 2 | Tranche one | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 40.00% | |||||||||
Option 2 | Tranche two | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 20.00% | |||||||||
Option 2 | Tranche three | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 20.00% | |||||||||
Option 2 | Tranche four | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 20.00% | |||||||||
Option 3 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share options expected to vest | 33,600 | 357,800 | 3,345,098 | |||||||
Vesting period | 5 years | 4 years | ||||||||
Option 3 | Tranche one | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 20.00% | |||||||||
Option 3 | Tranche two | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 20.00% | |||||||||
Option 3 | Tranche three | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 30.00% | |||||||||
Option 3 | Tranche four | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 30.00% | |||||||||
Option 3 | Vest upon IPO | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share options expected to vest | 178,900 | |||||||||
Option 4 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share options expected to vest | 178,900 | 178,900 | 46,500 | 100,000 | ||||||
Vesting period | 4 years | 5 years | 5 years | |||||||
Option 4 | Tranche one | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 20.00% | 15.00% | 16.00% | |||||||
Option 4 | Tranche two | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 20.00% | 20.00% | 16.00% | |||||||
Option 4 | Tranche three | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 30.00% | 20.00% | 16.00% | |||||||
Option 4 | Tranche four | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 30.00% | 20.00% | 16.00% | |||||||
Option 4 | Tranche five | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 25.00% | 16.00% | ||||||||
Option 4 | Tranche six | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 20.00% | |||||||||
Option 5 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share options expected to vest | 445,280 | 445,280 | 64,700 | 603,300 | ||||||
Vesting period | 5 years | 4 years | 3 years | |||||||
Option 5 | Tranche one | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 20.00% | 60.00% | ||||||||
Option 5 | Tranche two | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 25.00% | 30.00% | ||||||||
Option 5 | Tranche three | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 25.00% | 10.00% | ||||||||
Option 5 | Tranche four | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 30.00% | |||||||||
Option 6 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share options expected to vest | 100,000 | |||||||||
Vesting period | 6 years | |||||||||
Option 6 | Tranche one | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 12.00% | |||||||||
Option 6 | Tranche two | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 12.00% | |||||||||
Option 6 | Tranche three | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 16.00% | |||||||||
Option 6 | Tranche four | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 20.00% | |||||||||
Option 6 | Tranche five | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 20.00% | |||||||||
Option 6 | Tranche six | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 20.00% | |||||||||
Option 7 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share options expected to vest | 2,000,000 | |||||||||
Vesting period | 5 years | |||||||||
Option 7 | Tranche one | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 40.00% | |||||||||
Option 7 | Tranche two | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 15.00% | |||||||||
Option 7 | Tranche three | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 15.00% | |||||||||
Option 7 | Tranche four | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 15.00% | |||||||||
Option 7 | Tranche five | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 15.00% | |||||||||
Minimum | Option 1 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting period | 3 years | |||||||||
Maximum | Option 1 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting period | 4 years | |||||||||
Exercise Price RMB24.06 per share | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Granted (in shares) | 2,279,400 | 1,118,400 | ||||||||
Exercise price per share | ¥ / shares | ¥ 24.06 | ¥ 24.06 | ||||||||
Exercise Price RMB24.06 per share | Option 4 | Tranche six | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 20.00% | |||||||||
Exercise Price RMB50.13 per share | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Granted (in shares) | 78,600 | |||||||||
Exercise price per share | ¥ / shares | ¥ 50.13 | |||||||||
Exercise Price RMB14.32 per share | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Granted (in shares) | 21,500 | 961,100 | ||||||||
Exercise price per share | ¥ / shares | ¥ 14.32 | ¥ 14.32 | ||||||||
Exercise Price RMB7.78 per share | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Granted (in shares) | 500,000 | |||||||||
Exercise price per share | ¥ / shares | ¥ 7.78 | |||||||||
Exercise Price nil per share | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Granted (in shares) | 2,853,911 | |||||||||
Exercise Price USD3.70 per share | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Granted (in shares) | 445,280 | |||||||||
Exercise price per share | (per share) | $ 24.11 | ¥ 24.11 | ||||||||
Exercise Price Usd 3.6953 Per Share [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Granted (in shares) | 680,300 | |||||||||
Exercise price per share | (per share) | 24.11 | ¥ 24.11 | ||||||||
Exercise Price Usd 3.6953 Per Share [Member] | Maximum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Granted (in shares) | 3,345,098 | |||||||||
Exercise price per share | ¥ / shares | ¥ 24.11 | |||||||||
Exercise Price Usd 2.1199 Per Share [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Granted (in shares) | 178,900 | |||||||||
Exercise price per share | (per share) | $ 13.83 | ¥ 13.83 | ||||||||
2015 Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares available for issuance | 15,094,700 | |||||||||
2017 Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares reserved for issuance | 16,771,900 |
SHARE BASED COMPENSATION - Sh_2
SHARE BASED COMPENSATION - Share options repricing (Details) - ¥ / shares | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Assumptions used to calculate the estimated fair value of the share options | |||||
Weighted-average grant-date fair value of the share options granted | ¥ 8 | ¥ 20.12 | ¥ 35.88 | ¥ 38.29 | ¥ 69.34 |
Risk-free interest rate, Maximum (as a percent) | 0.84% | 0.27% | 1.47% | 2.53% | 2.98% |
Risk-free interest rate, Minimum (as a percent) | 1.61% | 1.47% | 0.27% | 1.79% | 2.45% |
Volatility, Minimum (as a percent) | 113.60% | 48.80% | 48.80% | 43.40% | 43.50% |
Volatility, Maximum (as a percent) | 116.00% | 59.50% | 59.50% | 55.30% | 48.30% |
Dividend yield (as a percent) | 0.00% | 0.00% | 0.00% | ||
Exercise multiples | 2.2 | ||||
Life of option (years) | 5 years | ||||
Minimum | |||||
Assumptions used to calculate the estimated fair value of the share options | |||||
Exercise multiples | 2.2 | 2.2 | 2.2 | 2.2 | 2.2 |
Life of option (years) | 2 years 6 months | 2 years 6 months | 4 years | 4 years | |
Maximum | |||||
Assumptions used to calculate the estimated fair value of the share options | |||||
Exercise multiples | 2.8 | 2.8 | 2.8 | 2.8 | 2.8 |
Life of option (years) | 6 years | 6 years | 6 years | 6 years |
SHARE BASED COMPENSATION - Acti
SHARE BASED COMPENSATION - Activity in share options (Details) - ¥ / shares | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Options | |||||
Outstanding at beginning of year (in shares) | 29,273,408 | 36,474,200 | 36,474,200 | ||
Granted (in shares) | 4,925,211 | 7,503,489 | |||
Exercised (in shares) | 0 | (8,319,681) | |||
Forfeited (in shares) | 0 | (6,384,600) | |||
Outstanding at end of year (in shares) | 34,198,619 | 29,273,408 | 36,474,200 | ||
Vested and expected to vest (in shares) | 500,000 | 680,300 | |||
Weighted-Average Exercise Price | |||||
Outstanding at beginning of year (in dollars per share) | ¥ 17.24 | ¥ 12.28 | ¥ 12.28 | ||
Granted (in dollars per share) | 0.76 | 14.70 | |||
Exercised (in dollars per share) | 0 | ||||
Forfeited (in dollars per share) | 0 | 17.05 | |||
Outstanding at end of year (in dollars per share) | 14.87 | 17.24 | ¥ 12.28 | ||
Weighted Average Grant-date Fair Value | |||||
Outstanding at beginning of year (in dollars per share) | 40.24 | 34.61 | 34.61 | ||
Granted (in dollars per share) | 8 | ¥ 20.12 | 35.88 | 38.29 | ¥ 69.34 |
Exercised (in dollars per share) | 0 | 22 | |||
Forfeited (in dollars per share) | 0 | 39.66 | |||
Outstanding at end of year (in dollars per share) | ¥ 35.60 | ¥ 40.24 | ¥ 34.61 |
SHARE BASED COMPENSATION - Sh_3
SHARE BASED COMPENSATION - Share option outstanding (Details) - ¥ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Options Outstanding | ||
Number Outstanding | 34,198,619 | 29,273,408 |
Options Exercisable | ||
Number Outstanding | 24,867,328 | 24,867,328 |
Exercise Price RMB7.78 per share | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise Price (in dollars per share) | ¥ 7.78 | ¥ 7.78 |
Options Outstanding | ||
Number Outstanding | 500,000 | 10,340,000 |
Weighted-Average Remaining Contractual Life | 5 years 8 months 23 days | 7 months 20 days |
Options Exercisable | ||
Number Outstanding | 9,878,000 | |
Weighted-Average Remaining Contractual Life | 6 months 7 days | |
Exercise Price RMB14.32 per share | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise Price (in dollars per share) | ¥ 14.32 | ¥ 14.32 |
Options Outstanding | ||
Number Outstanding | 12,036,630 | 12,036,630 |
Weighted-Average Remaining Contractual Life | 1 year 5 months 19 days | 1 year 11 months 19 days |
Options Exercisable | ||
Number Outstanding | 11,644,230 | 11,644,230 |
Weighted-Average Remaining Contractual Life | 1 year 5 months 12 days | 1 year 11 months 8 days |
Exercise Price RMB24.06 per share | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise Price (in dollars per share) | ¥ 24.06 | ¥ 24.06 |
Options Outstanding | ||
Number Outstanding | 2,641,500 | 2,641,500 |
Weighted-Average Remaining Contractual Life | 3 years 18 days | 3 years 6 months 18 days |
Options Exercisable | ||
Weighted-Average Remaining Contractual Life | 0 years | |
Exercise Price RMB24.11 per share | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise Price (in dollars per share) | ¥ 24.11 | ¥ 24.11 |
Options Outstanding | ||
Number Outstanding | 4,176,678 | 4,176,678 |
Weighted-Average Remaining Contractual Life | 3 years 18 days | 3 years 6 months 18 days |
Options Exercisable | ||
Number Outstanding | 3,345,098 | 3,345,098 |
Weighted-Average Remaining Contractual Life | 3 years 18 days | 3 years 6 months 18 days |
Exercise Price RMB51.05 per share | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise Price (in dollars per share) | ¥ 51.05 | ¥ 51.05 |
Options Outstanding | ||
Number Outstanding | 78,600 | 78,600 |
Weighted-Average Remaining Contractual Life | 2 years 6 months 7 days | 3 years 7 days |
Options Exercisable | ||
Weighted-Average Remaining Contractual Life | 0 years |
SHARE BASED COMPENSATION - Sh_4
SHARE BASED COMPENSATION - Share based compensation expenses recognized with each issuance of share options (Details) - CNY (¥) ¥ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | ¥ 290,630 | ¥ 353,151 | ¥ 508,162 | ||
Options | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | ¥ 34,842 | ¥ 207,008 | 290,630 | 353,151 | 508,162 |
Options | 10/7/2015 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 2,613 | ||||
Options | 25/09/2015 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 57 | 111 | |||
Options | 01/7/2016 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 5,255 | 10,319 | 27,771 | 47,177 | |
Options | 16/08/2016 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 251 | 241 | |||
Options | 23/08/2016 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 800 | 1,571 | 2,442 | 2,336 | |
Options | 01/9/2016 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 1,616 | 1,546 | |||
Options | 06/9/2016 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 457 | 898 | 3,427 | 3,524 | |
Options | 01/8/2017 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 3,097 | 3,373 | 6,623 | 10,124 | 9,686 |
Options | 11/09/2017 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 9,107 | 8,713 | |||
Options | 10/10/2017 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 1,335 | 1,458 | 2,862 | 2,856 | 2,732 |
Options | 20/10/2017 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 63,246 | 393,648 | |||
Options | 26/12/2017 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 2,380 | 4,674 | 135,997 | ||
Options | 19/1/2018 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 781 | 1,533 | 8,486 | 33,623 | |
Options | 07/3/2018 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 4,162 | 2,193 | |||
Options | 27/03/2018 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 1,681 | 1,835 | 3,604 | 6,345 | |
Options | 27/04/2018 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 10,377 | ||||
Options | 01/09/2018 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 1,146 | 2,343 | 1,028 | 1,366 | |
Options | 29/09/2018 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 479 | 524 | 4,600 | 20,195 | |
Options | 24/12/2018 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 1,095 | ¥ 19 | |||
Options | 07/01/2019 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 391 | 427 | 839 | 1,842 | |
Options | 21/04/2019 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 144 | 157 | 309 | 653 | |
Options | 13/06/2019 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 82 | 90 | 177 | 97 | |
Options | 14/06/2019 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 35 | 38 | 75 | 41 | |
Options | 01/07/2019 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | ¥ 3,565 | 6,955 | 13,657 | ¥ 41,598 | |
Options | 21/2/2020 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 112,183 | 110,145 | |||
Options | 28/2/2020 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | ¥ 67,952 | ¥ 127,716 |
SHARE BASED COMPENSATION - Ordi
SHARE BASED COMPENSATION - Ordinary shares issued to management (Details) - CNY (¥) ¥ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | ¥ 290,630 | ¥ 353,151 | ¥ 508,162 | ||
Unrecognized compensation cost | ¥ 11,261 | ¥ 8,741 | 150,349 | 410,202 | |
Weighted average period | 2 years 4 months 28 days | 3 years 2 months 26 days | |||
General and administrative expenses | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | ¥ 34,842 | ¥ 207,008 | ¥ 290,630 | ¥ 353,151 | ¥ 508,162 |
CONVERTIBLE REDEEMABLE PREFER_3
CONVERTIBLE REDEEMABLE PREFERRED SHARES (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Millions | Sep. 14, 2018USD ($)$ / sharesshares | Sep. 14, 2018CNY (¥) | Jan. 26, 2018USD ($)$ / sharesshares | Jan. 26, 2018CNY (¥) | Nov. 07, 2017USD ($)$ / sharesshares | Nov. 07, 2017CNY (¥) | Jul. 05, 2017USD ($)$ / sharesshares | Jul. 05, 2017CNY (¥) | Mar. 25, 2015USD ($)$ / sharesshares | Mar. 25, 2015CNY (¥) | Dec. 31, 2018CNY (¥) | Sep. 14, 2018¥ / sharesshares | Jan. 26, 2018¥ / sharesshares | Nov. 07, 2017¥ / sharesshares | Jul. 05, 2017¥ / sharesshares | Mar. 25, 2015¥ / sharesshares |
Series A convertible redeemable preferred shares | ||||||||||||||||
CONVERTIBLE REDEEMABLE PREFERRED SHARES | ||||||||||||||||
Preferred shares issued | 11,950,600 | 11,950,600 | ||||||||||||||
Purchase price per share | (per share) | $ 2.93 | ¥ 18.16 | ||||||||||||||
Cash consideration | $ 35 | ¥ 215,000 | ||||||||||||||
Series B convertible redeemable preferred shares | ||||||||||||||||
CONVERTIBLE REDEEMABLE PREFERRED SHARES | ||||||||||||||||
Preferred shares issued | 2,830,300 | 2,830,300 | ||||||||||||||
Purchase price per share | (per share) | $ 10.60 | ¥ 71.56 | ||||||||||||||
Cash consideration | $ 30 | ¥ 202,000 | ||||||||||||||
Series C convertible redeemable preferred shares | ||||||||||||||||
CONVERTIBLE REDEEMABLE PREFERRED SHARES | ||||||||||||||||
Preferred shares issued | 5,051,800 | 5,051,800 | ||||||||||||||
Purchase price per share | (per share) | $ 10.60 | ¥ 70.36 | ||||||||||||||
Cash consideration | $ 54 | ¥ 355,000 | ||||||||||||||
Series D convertible redeemable preferred shares | ||||||||||||||||
CONVERTIBLE REDEEMABLE PREFERRED SHARES | ||||||||||||||||
Preferred shares issued | 3,518,000 | 3,518,000 | ||||||||||||||
Purchase price per share | (per share) | $ 18.48 | ¥ 116.09 | ||||||||||||||
Cash consideration | $ 65 | ¥ 408,000 | ¥ 408,358 | |||||||||||||
Series E convertible redeemable preferred shares | ||||||||||||||||
CONVERTIBLE REDEEMABLE PREFERRED SHARES | ||||||||||||||||
Preferred shares issued | 1,082,500 | 1,082,500 | ||||||||||||||
Purchase price per share | (per share) | $ 18.48 | ¥ 126.48 | ||||||||||||||
Cash consideration | $ 20 | ¥ 136,000 | ¥ 136,427 |
CONVERTIBLE REDEEMABLE PREFER_4
CONVERTIBLE REDEEMABLE PREFERRED SHARES - Liquidation (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Series A convertible redeemable preferred shares | |
CONVERTIBLE REDEEMABLE PREFERRED SHARES | |
Issue price (as a percent) | 130.00% |
Series B convertible redeemable preferred shares | |
CONVERTIBLE REDEEMABLE PREFERRED SHARES | |
Issue price (as a percent) | 115.00% |
Series C convertible redeemable preferred shares | |
CONVERTIBLE REDEEMABLE PREFERRED SHARES | |
Issue price (as a percent) | 115.00% |
Series D convertible redeemable preferred shares | |
CONVERTIBLE REDEEMABLE PREFERRED SHARES | |
Issue price (as a percent) | 115.00% |
Series E convertible redeemable preferred shares | |
CONVERTIBLE REDEEMABLE PREFERRED SHARES | |
Issue price (as a percent) | 115.00% |
CONVERTIBLE REDEEMABLE PREFER_5
CONVERTIBLE REDEEMABLE PREFERRED SHARES - Conversion (Details) | 12 Months Ended |
Dec. 31, 2020 | |
CONVERTIBLE REDEEMABLE PREFERRED SHARES | |
Multiplying Factor for calculating public offer price per share | 1.2 |
Percentage of annual compound internal rate (as a percent) | 20.00% |
Minimum | |
CONVERTIBLE REDEEMABLE PREFERRED SHARES | |
Percentage of share capital | 10.00% |
CONVERTIBLE REDEEMABLE PREFER_6
CONVERTIBLE REDEEMABLE PREFERRED SHARES - IPO Adjustment Events (Details) | 12 Months Ended |
Dec. 31, 2020 | |
CONVERTIBLE REDEEMABLE PREFERRED SHARES | |
Number of business days from the completion of the IPO | 30 days |
Within 12 months | |
CONVERTIBLE REDEEMABLE PREFERRED SHARES | |
Conversion price (as a percent) | 130.00% |
Term of Adjusted Conversion Price I | 12 months |
Within 24 months | |
CONVERTIBLE REDEEMABLE PREFERRED SHARES | |
Conversion price (as a percent) | 150.00% |
Term of Adjusted Conversion Price II | 24 months |
36 months after the Closing | |
CONVERTIBLE REDEEMABLE PREFERRED SHARES | |
Conversion price (as a percent) | 180.00% |
Term of Adjusted Conversion Price III | 36 months |
CONVERTIBLE REDEEMABLE PREFER_7
CONVERTIBLE REDEEMABLE PREFERRED SHARES - Performance Adjustments (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2020CNY (¥) | |
CONVERTIBLE REDEEMABLE PREFERRED SHARES | |
Beneficial Conversion Feature | ¥ 0 |
CONVERTIBLE REDEEMABLE PREFER_8
CONVERTIBLE REDEEMABLE PREFERRED SHARES - Redemption for preferred shares (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2018 | |
Series A convertible redeemable preferred shares | After March 25, 2015 | ||
CONVERTIBLE REDEEMABLE PREFERRED SHARES | ||
Redemption Period | 36 months | |
Series B convertible redeemable preferred shares | After July 5, 2017 | ||
CONVERTIBLE REDEEMABLE PREFERRED SHARES | ||
Redemption Period | 36 months | |
Series C convertible redeemable preferred shares | ||
CONVERTIBLE REDEEMABLE PREFERRED SHARES | ||
Target profit (as a percent) | 80.00% | |
Target profit | ¥ 1,000,000,000 | |
Series C convertible redeemable preferred shares | After November 7, 2017 | ||
CONVERTIBLE REDEEMABLE PREFERRED SHARES | ||
Redemption Period | 36 months | |
Series D convertible redeemable preferred shares | After January 26, 2018 | ||
CONVERTIBLE REDEEMABLE PREFERRED SHARES | ||
Redemption Period | 36 months | |
Series E convertible redeemable preferred shares | ||
CONVERTIBLE REDEEMABLE PREFERRED SHARES | ||
Target profit (as a percent) | 80.00% | |
Target profit | ¥ 1,000,000,000 | |
Series E convertible redeemable preferred shares | After September 14, 2018 | ||
CONVERTIBLE REDEEMABLE PREFERRED SHARES | ||
Redemption Period | 36 months |
CONVERTIBLE REDEEMABLE PREFER_9
CONVERTIBLE REDEEMABLE PREFERRED SHARES - Redemption Price (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CONVERTIBLE REDEEMABLE PREFERRED SHARES | |||
Change in redemption value of preferred shares | ¥ 10,711 | ¥ 17,225 | |
Series A convertible redeemable preferred shares | |||
CONVERTIBLE REDEEMABLE PREFERRED SHARES | |||
Percentage of annual return | 8.00% | ||
Change in redemption value of preferred shares | ¥ 10,711 | ¥ 17,225 | |
Series B convertible redeemable preferred shares | |||
CONVERTIBLE REDEEMABLE PREFERRED SHARES | |||
Percentage of annual return | 8.00% | ||
Series C convertible redeemable preferred shares | |||
CONVERTIBLE REDEEMABLE PREFERRED SHARES | |||
Percentage of annual return | 8.00% | ||
Series D convertible redeemable preferred shares | |||
CONVERTIBLE REDEEMABLE PREFERRED SHARES | |||
Percentage of annual return | 8.00% | ||
Series E convertible redeemable preferred shares | |||
CONVERTIBLE REDEEMABLE PREFERRED SHARES | |||
Percentage of annual return | 10.00% |
CONVERTIBLE REDEEMABLE PREFE_10
CONVERTIBLE REDEEMABLE PREFERRED SHARES - Movement in the carrying value (Details) ¥ in Thousands, $ in Millions | Sep. 14, 2018USD ($) | Sep. 14, 2018CNY (¥) | Jan. 26, 2018USD ($) | Jan. 26, 2018CNY (¥) | Nov. 07, 2017USD ($) | Nov. 07, 2017CNY (¥) | Jul. 05, 2017USD ($) | Jul. 05, 2017CNY (¥) | Mar. 25, 2015USD ($) | Mar. 25, 2015CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020shares |
Movement in the carrying value | |||||||||||||
Beginning balance | ¥ 1,382,420 | ¥ 820,410 | |||||||||||
Accretion on convertible redeemable preferred shares to redemption value | 10,711 | 17,225 | |||||||||||
Conversion of convertible preferred shares to ordinary shares | (1,393,131) | ||||||||||||
Ending balance | 1,382,420 | ||||||||||||
Ordinary shares issued upon conversion | shares | 24,433,200 | ||||||||||||
Conversion ratio | 1 | ||||||||||||
Series A convertible redeemable preferred shares | |||||||||||||
Movement in the carrying value | |||||||||||||
Beginning balance | 280,301 | 263,076 | |||||||||||
Issuance of preferred shares | $ 35 | ¥ 215,000 | |||||||||||
Accretion on convertible redeemable preferred shares to redemption value | 10,711 | 17,225 | |||||||||||
Conversion of convertible preferred shares to ordinary shares | (291,012) | ||||||||||||
Ending balance | 280,301 | ||||||||||||
Series B convertible redeemable preferred shares | |||||||||||||
Movement in the carrying value | |||||||||||||
Beginning balance | 202,086 | 202,086 | |||||||||||
Issuance of preferred shares | $ 30 | ¥ 202,000 | |||||||||||
Conversion of convertible preferred shares to ordinary shares | (202,086) | ||||||||||||
Ending balance | 202,086 | ||||||||||||
Series C convertible redeemable preferred shares | |||||||||||||
Movement in the carrying value | |||||||||||||
Beginning balance | 355,248 | 355,248 | |||||||||||
Issuance of preferred shares | $ 54 | ¥ 355,000 | |||||||||||
Conversion of convertible preferred shares to ordinary shares | (355,248) | ||||||||||||
Ending balance | 355,248 | ||||||||||||
Series D convertible redeemable preferred shares | |||||||||||||
Movement in the carrying value | |||||||||||||
Beginning balance | 408,358 | ||||||||||||
Issuance of preferred shares | $ 65 | ¥ 408,000 | 408,358 | ||||||||||
Conversion of convertible preferred shares to ordinary shares | (408,358) | ||||||||||||
Ending balance | 408,358 | ||||||||||||
Series E convertible redeemable preferred shares | |||||||||||||
Movement in the carrying value | |||||||||||||
Beginning balance | 136,427 | ||||||||||||
Issuance of preferred shares | $ 20 | ¥ 136,000 | 136,427 | ||||||||||
Conversion of convertible preferred shares to ordinary shares | ¥ (136,427) | ||||||||||||
Ending balance | ¥ 136,427 |
ORDINARY SHARES (Details)
ORDINARY SHARES (Details) | Dec. 30, 2017shares | Dec. 30, 2017CNY (¥) | Dec. 30, 2017individual | Aug. 31, 2019CNY (¥)¥ / sharesshares | Jun. 30, 2021CNY (¥)shares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2019CNY (¥) | Jun. 30, 2021$ / sharesshares | Jun. 30, 2021¥ / sharesshares | Dec. 31, 2020$ / sharesshares | Dec. 31, 2020¥ / sharesshares | Dec. 31, 2019$ / sharesshares | Dec. 31, 2018$ / sharesshares |
ORDINARY SHARES | |||||||||||||
Ordinary shares, shares issued | 203,510,681 | 203,510,681 | 195,191,000 | 162,672,800 | |||||||||
Ordinary shares, shares outstanding | 195,191,000 | 203,510,681 | 203,510,681 | 203,510,681 | 203,510,681 | 195,191,000 | 162,672,800 | ||||||
Net proceeds from initial public offering and from exercising the over-allotment option by the underwriters(net of issuance cost of RMB31,776) | ¥ | ¥ 463,065,000 | ¥ 463,065,000 | |||||||||||
Issuance cost | ¥ | ¥ 31,776,000 | ¥ 31,776,000 | |||||||||||
Number of votes per share | ¥ / shares | ¥ 1 | ||||||||||||
Conversion ratio, Class B ordinary shares into Class A ordinary shares | 1 | ||||||||||||
Class A ordinary shares | |||||||||||||
ORDINARY SHARES | |||||||||||||
Ordinary shares, shares authorized | 4,600,000,000 | 4,600,000,000 | 4,600,000,000 | 4,600,000,000 | 4,600,000,000 | ||||||||
Ordinary shares, par value | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.00001 | ||||||||||
Ordinary shares, shares issued | 142,348,281 | 142,348,281 | 142,348,281 | 142,348,281 | 128,228,600 | ||||||||
Ordinary shares, shares outstanding | 128,228,600 | 142,348,281 | 142,348,281 | 142,348,281 | 142,348,281 | 128,228,600 | |||||||
Number of votes per share | ¥ / shares | ¥ 1 | ||||||||||||
Class B ordinary shares | |||||||||||||
ORDINARY SHARES | |||||||||||||
Ordinary shares, shares authorized | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | ||||||||
Ordinary shares, par value | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.00001 | ||||||||||
Ordinary shares, shares issued | 61,162,400 | 61,162,400 | 61,162,400 | 61,162,400 | 66,962,400 | ||||||||
Ordinary shares, shares outstanding | 66,962,400 | 61,162,400 | 61,162,400 | 61,162,400 | 61,162,400 | 66,962,400 | |||||||
Number of votes per share | ¥ / shares | ¥ 5 | ||||||||||||
Initial public offering | ADSs | |||||||||||||
ORDINARY SHARES | |||||||||||||
New ADSs issued (in shares) | 8,085,000 | ||||||||||||
Initial public offering | Class A ordinary shares | |||||||||||||
ORDINARY SHARES | |||||||||||||
Number of shares represented by ADS (in shares) | 8,085,000 | ||||||||||||
Board of directors | Ordinary shares | |||||||||||||
ORDINARY SHARES | |||||||||||||
Issuance of ordinary shares | 9,894,500 | ||||||||||||
Number of individuals. | 3 | 3 | |||||||||||
Series A, B and C Preferred Shareholders | |||||||||||||
ORDINARY SHARES | |||||||||||||
Issuance of ordinary shares | 1,309,900 | 1,309,900 | |||||||||||
Deemed Dividend | ¥ | ¥ 103,550,000 | ¥ 103,550,000 | |||||||||||
Fair value per ordinary share (in RMB per share) | ¥ / shares | ¥ 82.10 | ¥ 82.10 | |||||||||||
Amended and Restated Memorandum of Association | |||||||||||||
ORDINARY SHARES | |||||||||||||
Ordinary shares, shares authorized | 5,000,000,000 | 5,000,000,000 | 5,000,000,000 | 5,000,000,000 | 5,000,000,000 | 5,000,000,000 | |||||||
Ordinary shares, par value | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.00001 | $ 0.00001 |
EMPLOYEE BENEFIT PLAN (Details)
EMPLOYEE BENEFIT PLAN (Details) - CNY (¥) ¥ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
EMPLOYEE BENEFIT PLAN | |||||
Total contribution for employee benefits | ¥ 23,140 | ¥ 32,653 | ¥ 69,370 | ¥ 110,394 | ¥ 116,281 |
STATUTORY RESERVES AND RESTRI_2
STATUTORY RESERVES AND RESTRICTED NET ASSETS (Details) - CNY (¥) ¥ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
STATUTORY RESERVES AND RESTRICTED NET ASSETS | ||
Minimum percentage of after-tax profit transferred by PRC subsidiaries to general reserve fund (as a percent) | 10.00% | 10.00% |
Maximum percentage criteria for appropriation of after-tax profit of PRC subsidiaries to general reserve fund (as a percent) | 50.00% | 50.00% |
Restricted net assets | ¥ 2,779,965 | ¥ 2,779,965 |
NET INCOME (LOSS) PER ORDINAR_3
NET INCOME (LOSS) PER ORDINARY SHARE (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2021CNY (¥)¥ / sharesshares | Jun. 30, 2021USD ($)$ / sharesshares | Jun. 30, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | |
Numerator: | |||||||
Net income (loss) attributable to 9F Inc. | ¥ (193,709) | $ (30,003) | ¥ (741,013) | ¥ (2,258,895) | $ (349,857) | ¥ (2,159,576) | ¥ 1,981,804 |
Change in redemption value in Series A preferred shares | (10,711) | (17,225) | |||||
Undistributed earnings allocated to preferred shareholders | (244,589) | ||||||
Net income (loss) attributable to ordinary shareholders for computing net income per ordinary shares-basic | ¥ (193,709) | ¥ (741,013) | ¥ (2,258,895) | ¥ (2,170,287) | ¥ 1,719,990 | ||
Denominator: | |||||||
Weighted average ordinary shares outstanding used in computing net income per ordinary shares-basic | shares | 100,361,432 | 100,361,432 | 195,191,000 | 198,596,879 | 198,596,879 | 174,552,468 | 162,672,800 |
Net income (loss) per ordinary share attributable to ordinary shareholders-basic | (per share) | ¥ (1.93) | $ (0.30) | ¥ (3.80) | ¥ (11.37) | $ (1.76) | ¥ (12.43) | ¥ 10.57 |
Diluted net income per share calculation | |||||||
Net income (loss) attributable to ordinary shareholders for computing net income per ordinary shares-basic | ¥ (193,709) | ¥ (741,013) | ¥ (2,258,895) | ¥ (2,170,287) | ¥ 1,719,990 | ||
Add: adjustments to undistributed earnings to participating securities | 27,007 | ||||||
Net income (loss) attributable to ordinary shareholders for computing net income per ordinary shares-dilute | ¥ (193,709) | ¥ (741,013) | ¥ (2,258,895) | ¥ (2,170,287) | ¥ 1,746,997 | ||
Denominator: | |||||||
Weighted average ordinary shares outstanding used in computing net income per ordinary shares-basic | shares | 100,361,432 | 100,361,432 | 195,191,000 | 198,596,879 | 198,596,879 | 174,552,468 | 162,672,800 |
Effect of potentially diluted share options | shares | 23,062,400 | ||||||
Weighted average ordinary shares outstanding used in computing net income per ordinary shares-dilute | shares | 100,361,432 | 100,361,432 | 195,191,000 | 198,596,879 | 198,596,879 | 174,552,468 | 185,735,200 |
Net income (loss) per ordinary share attributable to ordinary shareholders-diluted | (per share) | ¥ (1.93) | $ (0.30) | ¥ (3.80) | ¥ (11.37) | $ (1.76) | ¥ (12.43) | ¥ 9.41 |
NET INCOME (LOSS) PER ORDINAR_4
NET INCOME (LOSS) PER ORDINARY SHARE - Additional Information (Details) - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2020 | |
NET INCOME (LOSS) PER ORDINARY SHARE | ||
Preferred shares outstanding | 0 | |
Number of share options were excluded from the computation of diluted earnings per share | 0 |
LEASES (Details)
LEASES (Details) - CNY (¥) ¥ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
LEASES | ||
Operating cash flows from operating leases | ¥ 4,350 | ¥ 59,395 |
Right-of-use assets in exchange for new lease liabilities | ¥ 12,285 | |
Weighted average remaining lease term (in years) | 1 year 6 months | 1 year 6 months |
Weighted average discount rate | 5.30% | 5.30% |
Short-term lease cost | ¥ 134 | ¥ 314 |
LEASES - Maturity of operating
LEASES - Maturity of operating lease liabilities (Details) ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | |
LEASES | ||||||
2021 | ¥ 10,698 | ¥ 14,862 | ||||
2022 | 14,818 | 13,405 | ||||
2023 | 89 | 2,956 | ||||
Total payments due | 25,604 | 31,223 | ||||
Less imputed interest | 1,720 | |||||
Operating lease liabilities | 25,604 | 29,503 | ¥ 125,407 | $ 3,966 | $ 4,569 | |
Total rental expense for all operating leases | ¥ 435 | ¥ 68,753 | ||||
Total rental expense for all operating leases | ¥ 58,831 | ¥ 71,287 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) ¥ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended |
May 31, 2020CNY (¥) | Jun. 30, 2021CNY (¥)case | Dec. 31, 2020CNY (¥)case | |
Amount charged from the insurance company to cover the outstanding service fees and related late payment losses | ¥ 2,300,000 | ||
Number of civial cases | case | 175 | 63 | |
Private lending | |||
Amount in disputes | ¥ 209,710 | ¥ 48,800 | |
Guarantee performance | |||
Amount in disputes | 6,480 | 5,400 | |
Infringement | |||
Amount in disputes | 5,310 | 1,400 | |
Labor arbitration | |||
Amount in disputes | ¥ 1,100 | ¥ 1,100 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent events - CNY (¥) ¥ in Millions | Mar. 26, 2021 | Mar. 03, 2021 |
Pay for default and restoration | ¥ 10 | |
Paid for defalut and restoration fee | ¥ 10 |
SCHEDULE I-FINANCIAL INFORMATIO
SCHEDULE I-FINANCIAL INFORMATION OF PARENT COMPANY - CONDENSED BALANCE SHEETS (Details) ¥ in Thousands, $ in Thousands | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Jan. 20, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
Shareholders' Equity: | ||||||
Ordinary shares | ¥ 1 | ¥ 1 | ||||
Additional paid-in capital | 5,531,926 | $ 856,786 | ¥ 5,241,296 | |||
Retained earnings (deficit) | (2,010,642) | $ (311,409) | (1,822,749) | (282,308) | ¥ 44,767 | 488,236 |
Accumulated other comprehensive income | (49,917) | (7,731) | (6,953) | (1,077) | 92,220 | |
Total 9F Inc. shareholders' equity | 3,972,751 | 615,301 | 4,168,578 | 645,630 | 6,280,783 | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 5,168,966 | 800,571 | 5,386,501 | 834,263 | 8,880,364 | |
Class A ordinary shares | ||||||
Shareholders' Equity: | ||||||
Ordinary shares | 1 | 1 | 1 | |||
Class B ordinary shares | ||||||
Shareholders' Equity: | ||||||
Ordinary shares | 1 | 1 | ||||
Additional paid-in capital | ¥ 5,566,840 | $ 862,194 | 5,531,926 | |||
Parent Company | Reportable legal entities | ||||||
Shareholders' Equity: | ||||||
Additional paid-in capital | 5,531,926 | 856,786 | 5,241,296 | |||
Retained earnings (deficit) | (1,356,397) | (210,079) | 947,265 | |||
Accumulated other comprehensive income | (6,953) | (1,077) | 92,220 | |||
Total 9F Inc. shareholders' equity | 4,168,578 | 645,630 | 6,280,783 | |||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 4,177,301 | $ 646,982 | 6,290,442 | |||
Parent Company | Reportable legal entities | Class A ordinary shares | ||||||
Shareholders' Equity: | ||||||
Ordinary shares | 1 | 1 | ||||
Parent Company | Reportable legal entities | Class B ordinary shares | ||||||
Shareholders' Equity: | ||||||
Ordinary shares | ¥ 1 | ¥ 1 |
SCHEDULE I-FINANCIAL INFORMAT_2
SCHEDULE I-FINANCIAL INFORMATION OF PARENT COMPANY - CONDENSED BALANCE SHEETS - Parentheticals (Details) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 31, 2019 | Dec. 31, 2018 |
Ordinary shares, shares issued | 203,510,681 | 195,191,000 | 162,672,800 | ||
Ordinary shares, shares outstanding | 203,510,681 | 203,510,681 | 195,191,000 | 195,191,000 | 162,672,800 |
Class A ordinary shares | |||||
Ordinary shares, par value | $ 0.00001 | $ 0.00001 | $ 0.00001 | ||
Ordinary shares, shares authorized | 4,600,000,000 | 4,600,000,000 | 4,600,000,000 | ||
Ordinary shares, shares issued | 142,348,281 | 142,348,281 | 128,228,600 | ||
Ordinary shares, shares outstanding | 142,348,281 | 142,348,281 | 128,228,600 | 128,228,600 | |
Class B ordinary shares | |||||
Ordinary shares, par value | $ 0.00001 | $ 0.00001 | $ 0.00001 | ||
Ordinary shares, shares authorized | 200,000,000 | 200,000,000 | 200,000,000 | ||
Ordinary shares, shares issued | 61,162,400 | 61,162,400 | 66,962,400 | ||
Ordinary shares, shares outstanding | 61,162,400 | 61,162,400 | 66,962,400 | 66,962,400 | |
Parent Company | Reportable legal entities | Class A ordinary shares | |||||
Ordinary shares, par value | $ 0.00001 | $ 0.00001 | |||
Ordinary shares, shares authorized | 4,600,000,000 | 4,600,000,000 | |||
Ordinary shares, shares issued | 142,348,281 | 128,228,600 | |||
Ordinary shares, shares outstanding | 142,348,281 | 128,228,600 | |||
Parent Company | Reportable legal entities | Class B ordinary shares | |||||
Ordinary shares, par value | $ 0.00001 | $ 0.00001 | |||
Ordinary shares, shares authorized | 200,000,000 | 200,000,000 | |||
Ordinary shares, shares issued | 61,162,400 | 66,962,400 | |||
Ordinary shares, shares outstanding | 61,162,400 | 66,962,400 |
SCHEDULE I-FINANCIAL INFORMAT_3
SCHEDULE I-FINANCIAL INFORMATION OF PARENT COMPANY - CONDENSED STATEMENTS OF OPERATIONS (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2021CNY (¥)¥ / sharesshares | Jun. 30, 2021USD ($)$ / sharesshares | Jun. 30, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | |
Operating costs and expenses | ¥ (480,109) | $ (74,360) | ¥ (1,555,062) | ¥ (2,538,179) | $ (393,114) | ¥ (6,785,264) | ¥ (3,348,314) |
Provision for contract assets and receivables | (44,296) | (6,861) | (195,564) | (347,803) | (53,868) | (2,148,638) | 2,637 |
Interest income | 39,079 | 6,053 | 63,869 | 102,425 | 15,864 | 225,751 | 208,350 |
Net income (loss) attributable to 9F Inc. | ¥ (193,709) | $ (30,003) | ¥ (741,013) | ¥ (2,258,895) | $ (349,857) | ¥ (2,159,576) | ¥ 1,981,804 |
Net income (loss) per ordinary share | |||||||
Basic | (per share) | ¥ (1.93) | $ (0.30) | ¥ (3.80) | ¥ (11.37) | $ (1.76) | ¥ (12.43) | ¥ 10.57 |
Diluted | (per share) | ¥ (1.93) | $ (0.30) | ¥ (3.80) | ¥ (11.37) | $ (1.76) | ¥ (12.43) | ¥ 9.41 |
Weighted average number of ordinary shares ordinary share | |||||||
Basic | 100,361,432 | 100,361,432 | 195,191,000 | 198,596,879 | 198,596,879 | 174,552,468 | 162,672,800 |
Diluted | 100,361,432 | 100,361,432 | 195,191,000 | 198,596,879 | 198,596,879 | 174,552,468 | 185,735,200 |
Parent Company | Reportable legal entities | |||||||
Equity in earnings (loss) of subsidiaries and VIEs | ¥ (1,855,047) | $ (287,310) | ¥ (1,777,756) | ¥ 2,495,935 | |||
Operating costs and expenses | (333,427) | (51,640) | (371,063) | (514,144) | |||
Provision for contract assets and receivables | ¥ | (691) | ||||||
Interest income | 12,183 | 1,887 | 4,601 | 13 | |||
Impairment loss on investments | (97,892) | (15,162) | (20,724) | ||||
Other income, net | 15,288 | 2,368 | 6,057 | ||||
Net income (loss) attributable to 9F Inc. | ¥ (2,258,895) | $ (349,857) | ¥ (2,159,576) | ¥ 1,981,804 | |||
Net income (loss) per ordinary share | |||||||
Basic | (per share) | ¥ (11.37) | $ (1.76) | ¥ (12.43) | ¥ 10.57 | |||
Diluted | (per share) | ¥ (11.37) | $ (1.76) | ¥ (12.43) | ¥ 9.41 | |||
Weighted average number of ordinary shares ordinary share | |||||||
Basic | 198,596,879 | 198,596,879 | 174,552,468 | 162,672,800 | |||
Diluted | 198,596,879 | 198,596,879 | 174,552,468 | 185,735,200 |
SCHEDULE I-FINANCIAL INFORMAT_4
SCHEDULE I-FINANCIAL INFORMATION OF PARENT COMPANY- CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Details) ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Condensed Statement of Income Captions [Line Items] | |||||||
Net income (loss) | ¥ (193,709) | $ (30,003) | ¥ (741,013) | ¥ (2,258,895) | $ (349,857) | ¥ (2,159,576) | ¥ 1,981,804 |
Other comprehensive income: | |||||||
Foreign currency translation adjustments | (37,157) | (5,754) | 24,021 | (99,173) | (15,360) | 12,126 | 84,430 |
Unrealized gains (losses) on available for sale investments, net of tax of nil | (100) | (99) | (1,146) | ||||
Total comprehensive income (loss) attributable to 9F Inc. | ¥ (230,669) | $ (35,726) | ¥ (717,092) | (2,358,068) | (365,217) | (2,147,549) | 2,065,088 |
Parent Company | Reportable legal entities | |||||||
Condensed Statement of Income Captions [Line Items] | |||||||
Net income (loss) | (2,258,895) | (349,857) | (2,159,576) | 1,981,804 | |||
Other comprehensive income: | |||||||
Foreign currency translation adjustments | (97,245) | (15,360) | 12,126 | 84,430 | |||
Unrealized gains (losses) on available for sale investments, net of tax of nil | (99) | (1,146) | |||||
Total comprehensive income (loss) attributable to 9F Inc. | ¥ (2,356,140) | $ (365,217) | ¥ (2,147,549) | ¥ 2,065,088 |
SCHEDULE I-FINANCIAL INFORMAT_5
SCHEDULE I-FINANCIAL INFORMATION OF PARENT COMPANY- CONDENSED STATEMENTS of CASH FLOW (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | 18 Months Ended | ||||||
Aug. 31, 2019CNY (¥) | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | |
Cash Flows from Operating Activities: | ||||||||||
Net income (loss) | ¥ (193,709) | $ (30,003) | ¥ (741,013) | ¥ (2,258,895) | $ (349,857) | ¥ (2,159,576) | ¥ 1,981,804 | |||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||||
Share-based compensation expense | 34,842 | 5,396 | 207,008 | 290,630 | 45,013 | 353,151 | 508,162 | |||
Impairment loss of equity securities without readily determinable fair value | 2,056 | 318 | 0 | 282,076 | 43,688 | 154,898 | 23,140 | |||
Gain from disposal of equity securities without readily determinable fair value | 114,211 | 17,689 | (6,057) | |||||||
Changes in operating assets and liabilities: | ||||||||||
Other receivables | (442,116) | (68,475) | (150,407) | (55,605) | (8,612) | 38,462 | (53,806) | |||
Prepaid expenses and other assets | (88,679) | (13,735) | 335,430 | 570,392 | 88,342 | 56,586 | (16,015) | |||
Accrued expense and other liabilities | (59,527) | (9,220) | 141,775 | (807,117) | (125,007) | 479,303 | (53,050) | |||
Net cash provided by (used in) operating activities | (521,777) | (80,814) | (442,562) | (1,744,599) | (270,204) | (429,047) | 2,345,892 | |||
Cash Flows from Investing Activities: | ||||||||||
Loans to related parties | (50,884) | (142,181) | ||||||||
Proceeds from repayment of related parties | 141,236 | 24,083 | ||||||||
Net cash (used in) provided by investing activities | (347,136) | (53,764) | (432,265) | 39,466 | 6,112 | (707,611) | (1,236,820) | |||
Cash Flows from Financing Activities: | ||||||||||
Proceeds from convertible redeemable preferred shares | 544,785 | |||||||||
Net proceeds from initial public offering and from exercising the over-allotment option by the underwriters(net of issuance cost of RMB31,776) | ¥ 463,065 | 463,065 | ||||||||
Net cash provided by financing activities | 12,896 | 1,997 | 471,978 | 545,886 | ||||||
Effect of exchange rate changes | 5,486 | 850 | (20,095) | 212 | 34 | 5,043 | 35,333 | |||
Net increase (decrease) in cash, cash equivalent, and restricted cash | (863,427) | (133,728) | (894,922) | (1,692,026) | (262,061) | (659,637) | 1,690,291 | |||
Cash, cash equivalent, and restricted cash at the beginning of period | 3,117,414 | 482,826 | 4,809,440 | 4,809,440 | 744,887 | 5,469,077 | 3,778,786 | ¥ 4,809,440 | $ 744,887 | |
Cash, cash equivalent, and restricted cash at the end of the period | 2,253,987 | 349,098 | 3,914,518 | 3,117,414 | 482,826 | 4,809,440 | 5,469,077 | 2,253,987 | 349,098 | |
Issuance cost | ¥ 31,776 | 31,776 | ||||||||
Parent Company | Reportable legal entities | ||||||||||
Cash Flows from Operating Activities: | ||||||||||
Net income (loss) | (2,258,895) | (349,857) | (2,159,576) | 1,981,804 | ||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||||
Equity in earnings (loss) of subsidiaries and VIEs | 1,855,047 | 287,310 | 1,777,756 | (2,495,935) | ||||||
Share-based compensation expense | 290,630 | 45,013 | 353,151 | 508,162 | ||||||
Impairment loss of equity securities without readily determinable fair value | 97,892 | 15,162 | 20,725 | |||||||
Gain from disposal of equity securities without readily determinable fair value | (6,057) | |||||||||
Changes in operating assets and liabilities: | ||||||||||
Other receivables | (377) | |||||||||
Prepaid expenses and other assets | 6,667 | 1,033 | (8,020) | (550) | ||||||
Accrued expense and other liabilities | 5,901 | 914 | (3,551) | 3,551 | ||||||
Amounts due to subsidiaries and VIEs | (147) | (23) | 9,659 | (43) | ||||||
Amounts due from subsidiaries and VIEs | 45,654 | 7,071 | 131,387 | (707,308) | ||||||
Net cash provided by (used in) operating activities | 42,749 | 6,623 | 115,097 | (710,319) | ||||||
Cash Flows from Investing Activities: | ||||||||||
Investment in subsidiaries | 18,774 | 2,908 | (69,149) | |||||||
Loans to related parties | (97,514) | (15,103) | (137,510) | |||||||
Proceeds from repayment of related parties | 138,163 | |||||||||
Disposal of long-term investments | 8,289 | |||||||||
Net cash (used in) provided by investing activities | (78,740) | (12,195) | 77,303 | (137,510) | ||||||
Cash Flows from Financing Activities: | ||||||||||
Proceeds from convertible redeemable preferred shares | 544,785 | |||||||||
Net proceeds from initial public offering and from exercising the over-allotment option by the underwriters(net of issuance cost of RMB31,776) | 463,065 | |||||||||
Net cash provided by financing activities | 463,065 | 544,785 | ||||||||
Effect of exchange rate changes | (122,247) | (18,022) | 13,173 | 87,448 | ||||||
Net increase (decrease) in cash, cash equivalent, and restricted cash | (152,338) | (23,594) | 668,638 | (215,596) | ||||||
Cash, cash equivalent, and restricted cash at the beginning of period | ¥ 661,751 | $ 102,492 | ¥ 814,089 | 814,089 | 126,086 | 145,451 | 361,047 | ¥ 814,089 | $ 126,086 | |
Cash, cash equivalent, and restricted cash at the end of the period | 661,751 | $ 102,492 | 814,089 | 145,451 | ||||||
Dividends received from subsidiaries | ¥ 0 | ¥ 0 | ¥ 0 |
UNAUDITED INTERIM CONDENSED CON
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Jun. 30, 2020CNY (¥) | Jan. 20, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
ASSETS: | ||||||||
Cash and cash equivalents | ¥ 1,877,191 | $ 290,740 | ¥ 2,726,712 | $ 422,314 | ¥ 3,651,788 | ¥ 4,684,003 | ¥ 5,469,077 | |
Restricted cash | 376,796 | 58,358 | 390,702 | 60,512 | 125,437 | |||
Term deposits | 102,408 | 15,861 | 133,761 | 20,717 | 24,000 | |||
Investment in marketable securities | 206,272 | 31,947 | ||||||
Accounts receivable, net of allowance for doubtful accounts of RMB1,446,994 as of December 31, 2020 and RMB1,486,919 as of June 30, 2020, respectively | 70,130 | 10,862 | 40,862 | 6,329 | 280,995 | |||
Other receivables, net of allowance for doubtful accounts of RMB17,396 as of December 31, 2020 and RMB160 as of June 30,2021 respectively | 565,904 | 87,647 | 126,745 | 19,630 | 117,340 | |||
Loan receivables, net of allowance for doubtful accounts of RMB320,364 as of December 31, 2020, and RMB56,466 as of June 30, 2021 respectively | 202,130 | 31,306 | 267,383 | 41,412 | 778,480 | |||
Amounts due from related parties | 50,000 | |||||||
Prepaid expenses and other assets | 881,771 | 136,569 | 793,092 | 122,834 | 1,137,787 | |||
Contract assets, net of allowance for losses of RMB14,749 as of December 31, 2020 and RM14,321 as of June 30,2021 respectively | 6,494 | 1,006 | 10,374 | 1,607 | 24,824 | |||
Long-term investments,net | 738,996 | 114,456 | 738,272 | 114,344 | 775,644 | 954,158 | ||
Operating lease right-of-use assets, net | 25,987 | 4,025 | 28,668 | 4,440 | 121,791 | |||
Property, equipment and software, net | 52,423 | 8,119 | 63,396 | 9,819 | 110,376 | |||
Goodwill, net | 22,119 | 3,426 | 22,121 | 3,426 | 72,224 | |||
Intangible assets, net | 40,345 | 6,249 | 44,413 | 6,879 | 73,476 | |||
TOTAL ASSETS | 5,168,966 | 800,571 | 5,386,501 | 834,263 | 8,880,364 | |||
Liabilities: | ||||||||
Deferred revenue (including deferred revenue of the consolidated VIEs and VIEs' subsidiaries without recourse to the Group of RMB81,246 as of December 31, 2020 and RMB9,904 as of June 30,2021 respectively) | 10,079 | 1,561 | 82,643 | 12,800 | 788,906 | |||
Payroll and welfare payable (including payroll and welfare payable of the consolidated VIEs and VIEs' subsidiaries without recourse to the Group of RMB29,152 as of December 31, 2020 and RMB12,614 as of June 30, 2021, respectively) | 14,041 | 2,175 | 34,540 | 5,350 | 41,646 | |||
Income tax payable (including income taxes payable of the consolidated VIEs and VIEs' subsidiaries without recourse to the Group of RMB224,533 as of December 31, 2020 and RMB238,179 as of June 30,2021, respectively) | 272,896 | 42,266 | 255,244 | 39,532 | 320,350 | |||
Accrued expenses and other liabilities (including accrued expenses and other liabilities of the consolidated VIEs and VIEs' subsidiaries without recourse to the Group of RMB238,170 as of December 31, 2020 and RMB274,219 as of June 30,2021 respectively) | 786,213 | 121,768 | 726,686 | 112,549 | 1,229,110 | |||
Operating lease liabilities (including operating lease liabilities of the consolidated VIEs and VIEs' subsidiaries without resource to the Group of RMB19,100 as of December 31, 2020 and RMB15,408 as of June 30,2021 respectively) | 25,604 | 3,966 | 29,503 | 4,569 | 125,407 | |||
Amounts due to related parties (including amounts due to related parties of the consolidated VIEs and VIEs' subsidiaries without recourse to the Group of RMB24,146 as of December 31,2020 and RMB23,967 as of June 30,2021, respectively) | 23,590 | 3,654 | 25,289 | 3,917 | 29,902 | |||
Deferred tax liabilities (including deferred tax liabilities of the consolidated VIEs and VIEs' subsidiaries without recourse to the Group of RMB5,742 as of December 31, 2020and RMB5,392 as of June 30,2021, respectively) | 8,504 | 1,317 | 9,280 | 1,437 | 17,215 | |||
TOTAL LIABILITIES | 1,140,927 | 176,707 | 1,163,185 | 180,154 | 2,552,536 | |||
Commitments and Contingencies (Note 21) | ||||||||
Shareholders' equity: | ||||||||
Ordinary shares | 1 | 1 | ||||||
Additional paid-in capital | 5,531,926 | 856,786 | 5,241,296 | |||||
Statutory reserves | 466,468 | 72,247 | 466,352 | 72,229 | 459,029 | |||
Retained earnings (deficit) | (2,010,642) | (311,409) | (1,822,749) | (282,308) | ¥ 44,767 | 488,236 | ||
Accumulated other comprehensive income | (49,917) | (7,731) | (6,953) | (1,077) | 92,220 | |||
Total 9F Inc. shareholders' equity | 3,972,751 | 615,301 | 4,168,578 | 645,630 | 6,280,783 | |||
Noncontrolling interest | 55,288 | 8,563 | 54,738 | 8,479 | 47,045 | |||
Total shareholders' equity | 4,028,039 | 623,864 | 4,223,316 | 654,109 | ¥ 5,769,282 | 6,327,828 | ¥ 6,254,920 | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 5,168,966 | 800,571 | 5,386,501 | $ 834,263 | 8,880,364 | |||
Class A ordinary shares | ||||||||
Shareholders' equity: | ||||||||
Ordinary shares | 1 | 1 | 1 | |||||
Class B ordinary shares | ||||||||
Shareholders' equity: | ||||||||
Ordinary shares | 1 | ¥ 1 | ||||||
Additional paid-in capital | ¥ 5,566,840 | $ 862,194 | ¥ 5,531,926 |
UNAUDITED INTERIM CONDENSED C_2
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Jun. 30, 2021CNY (¥)shares | Jun. 30, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019$ / shares | Aug. 31, 2019shares | Dec. 31, 2018CNY (¥)shares |
Allowance for doubtful accounts, accounts receivable | ¥ 1,486,919 | ¥ 1,446,994 | ¥ 1,433,449 | |||||
Allowance for doubtful accounts, other receivable | 6,930 | 17,396 | 36,773 | |||||
Allowance for doubtful accounts, loans receivable | 56,466 | 320,944 | 615,592 | |||||
Allowance for doubtful accounts, contract assets | 14,321 | 14,749 | 2,255 | ¥ 329 | ||||
Deferred revenue | 10,079 | $ 1,561 | 82,643 | $ 12,800 | 788,906 | |||
Payroll and welfare payable | 14,041 | 2,175 | 34,540 | 5,350 | 41,646 | |||
Income taxes payable | 272,896 | 42,266 | 255,244 | 39,532 | 320,350 | |||
Accrued expenses and other liabilities | 786,213 | 121,768 | 726,686 | 112,549 | 1,229,110 | |||
Operating lease liabilities | 25,604 | 3,966 | 29,503 | 4,569 | 125,407 | |||
Amounts due to related parties | 23,590 | 3,654 | 25,289 | 3,917 | 29,902 | |||
Deferred tax liabilities | ¥ 8,504 | $ 1,317 | ¥ 9,280 | $ 1,437 | ¥ 17,215 | |||
Ordinary shares, shares issued | shares | 203,510,681 | 203,510,681 | 195,191,000 | 162,672,800 | ||||
Ordinary shares, shares outstanding | shares | 203,510,681 | 203,510,681 | 203,510,681 | 203,510,681 | 195,191,000 | 195,191,000 | 162,672,800 | |
Class A ordinary shares | ||||||||
Ordinary shares, par value | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.00001 | |||||
Ordinary shares, shares authorized | shares | 4,600,000,000 | 4,600,000,000 | 4,600,000,000 | 4,600,000,000 | 4,600,000,000 | |||
Ordinary shares, shares issued | shares | 142,348,281 | 142,348,281 | 142,348,281 | 142,348,281 | 128,228,600 | |||
Ordinary shares, shares outstanding | shares | 142,348,281 | 142,348,281 | 142,348,281 | 142,348,281 | 128,228,600 | 128,228,600 | ||
Class B ordinary shares | ||||||||
Ordinary shares, par value | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.00001 | |||||
Ordinary shares, shares authorized | shares | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | |||
Ordinary shares, shares issued | shares | 61,162,400 | 61,162,400 | 61,162,400 | 61,162,400 | 66,962,400 | |||
Ordinary shares, shares outstanding | shares | 61,162,400 | 61,162,400 | 61,162,400 | 61,162,400 | 66,962,400 | 66,962,400 | ||
VIEs | ||||||||
Deferred revenue | ¥ 9,904 | ¥ 81,246 | ¥ 772,340 | |||||
Payroll and welfare payable | 12,614 | 29,152 | 35,958 | |||||
Income taxes payable | 238,179 | 224,533 | 303,684 | |||||
Accrued expenses and other liabilities | 274,219 | 238,170 | 1,056,128 | |||||
Operating lease liabilities | 15,408 | 19,100 | 119,005 | |||||
Amounts due to related parties | 23,967 | 24,146 | 29,902 | |||||
Deferred tax liabilities | ¥ 5,392 | ¥ 5,742 | ¥ 13,200 |
UNAUDITED INTERIM CONDENSED C_3
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2021CNY (¥)¥ / sharesshares | Jun. 30, 2021USD ($)$ / sharesshares | Jun. 30, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | |
Net revenues: | |||||||
Total net revenues | ¥ 392,956 | $ 60,861 | ¥ 848,430 | ¥ 1,256,005 | $ 194,531 | ¥ 4,424,963 | ¥ 5,556,482 |
Operating costs and expenses: | |||||||
Sales and marketing | (68,826) | (10,660) | (174,243) | (343,056) | (53,133) | (2,343,428) | (1,746,375) |
Origination and servicing | (87,911) | (13,616) | (634,521) | (543,487) | (84,175) | (1,137,451) | (444,830) |
General and administrative | (279,076) | (43,223) | (550,734) | (1,303,833) | (201,938) | (1,155,747) | (1,159,746) |
Reversal of (provision for) doubtful contract assets and receivables | (44,296) | (6,861) | (195,564) | (347,803) | (53,868) | (2,148,638) | 2,637 |
Total operating costs and expenses | (480,109) | (74,360) | (1,555,062) | (2,538,179) | (393,114) | (6,785,264) | (3,348,314) |
Interest income | 39,079 | 6,053 | 63,869 | 102,425 | 15,864 | 225,751 | 208,350 |
Impairment loss of investments | (2,056) | (318) | (30,322) | (462,490) | (71,631) | (154,898) | (23,140) |
Impairment loss of goodwill | 0 | (50,291) | (50,291) | (7,789) | (6,191) | 0 | |
Impairment loss of intangible assets and property, equipment and software | (2,310) | (358) | (17,220) | (38,145) | (5,908) | ||
Unrealized loss of investment in marketale securities | (114,211) | (17,689) | |||||
Other income(loss), net | (684) | (106) | 19,612 | 39,112 | 6,058 | 52,852 | 25,608 |
Income (loss) before income tax expense and earnings (loss) in equity method investments | (167,335) | (25,917) | (720,984) | (1,691,563) | (261,989) | (2,220,324) | 2,418,729 |
Income tax (expense) benefit | (17,998) | (2,788) | (17,874) | (538,322) | (83,375) | 174,597 | (402,403) |
Earnings (loss) in equity method investments, net of tax of nil and nil for six months ended June 30,2020 and 2021 | (7,629) | (1,182) | (5,741) | (21,317) | (3,302) | (107,918) | (41,143) |
Net income (loss) | (192,962) | (29,887) | (744,599) | (2,251,202) | (348,666) | (2,153,645) | 1,975,183 |
Net income (loss) attributable to the non-controlling interest shareholders | (747) | (116) | 3,586 | (7,693) | (1,191) | (5,931) | 6,621 |
Net income (loss) attributable to 9F Inc. | (193,709) | (30,003) | (741,013) | (2,258,895) | (349,857) | (2,159,576) | 1,981,804 |
Change in redemption value of preferred shares | ¥ | (10,711) | (17,225) | |||||
Net income (loss) attributable to ordinary shareholders | ¥ (193,709) | $ (30,003) | ¥ (741,013) | ¥ (2,258,895) | $ (349,857) | ¥ (2,170,287) | ¥ 1,964,579 |
Net income (loss) per ordinary share | |||||||
Basic | (per share) | ¥ (1.93) | $ (0.30) | ¥ (3.80) | ¥ (11.37) | $ (1.76) | ¥ (12.43) | ¥ 10.57 |
Diluted | (per share) | ¥ (1.93) | $ (0.30) | ¥ (3.80) | ¥ (11.37) | $ (1.76) | ¥ (12.43) | ¥ 9.41 |
Weighted average number of ordinary shares ordinary share | |||||||
Basic | 100,361,432 | 100,361,432 | 195,191,000 | 198,596,879 | 198,596,879 | 174,552,468 | 162,672,800 |
Diluted | 100,361,432 | 100,361,432 | 195,191,000 | 198,596,879 | 198,596,879 | 174,552,468 | 185,735,200 |
Loan facilitation services | |||||||
Net revenues: | |||||||
Total net revenues | ¥ 227,792 | ¥ 177,147 | $ 27,437 | ¥ 3,477,897 | ¥ 4,960,671 | ||
Post-origination services | |||||||
Net revenues: | |||||||
Total net revenues | ¥ 78,004 | $ 12,081 | 530,232 | 859,102 | 133,058 | 604,732 | 367,439 |
Technical services | |||||||
Net revenues: | |||||||
Total net revenues | 164,497 | 25,477 | 10,067 | ||||
Wealth management services | |||||||
Net revenues: | |||||||
Total net revenues | 61,362 | 9,504 | 62,360 | ||||
Others | |||||||
Net revenues: | |||||||
Total net revenues | ¥ 89,093 | $ 13,799 | ¥ 17,979 | ¥ 219,756 | $ 34,036 | ¥ 342,334 | ¥ 228,372 |
UNAUDITED INTERIM CONDENSED C_4
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - CNY (¥) ¥ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||
Selling and marketing services provided by related parties | ¥ 901 | ¥ 42,770 | ¥ 37,769 | ||
Origination and servicing services provided by related parties | 358 | 15,120 | 39,000 | ||
General and administrative services provided by related parties | 290,630 | 353,151 | 508,162 | ||
Earnings (loss) in equity method investments, tax | ¥ 0 | ¥ 0 | ¥ 10,669 | ¥ 3,425 | ¥ 0 |
UNAUDITED INTERIM CONDENSED C_5
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||
Net income (loss) | ¥ (192,962) | $ (29,887) | ¥ (744,599) | ¥ (2,251,202) | $ (348,666) | ¥ (2,153,645) | ¥ 1,975,183 |
Other comprehensive income (loss): | |||||||
Foreign currency translation adjustment | (37,157) | (5,754) | 24,021 | (99,173) | (15,360) | 12,126 | 84,430 |
Unrealized gains (losses) on available for sale investments, net of tax of nil | (100) | (99) | (1,146) | ||||
Total comprehensive income (loss) | (230,119) | (35,641) | (720,678) | (2,350,375) | (364,026) | (2,141,618) | 2,058,467 |
Total comprehensive income (loss) attributable to the non-controlling interest shareholders | (550) | (85) | 3,586 | (7,693) | (1,191) | (5,931) | 6,621 |
Total comprehensive income (loss) attributable to 9F Inc. | ¥ (230,669) | $ (35,726) | ¥ (717,092) | ¥ (2,358,068) | $ (365,217) | ¥ (2,147,549) | ¥ 2,065,088 |
UNAUDITED INTERIM CONDENSED C_6
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - CNY (¥) ¥ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
Unrealized gains (losses) on available for sale investments, tax | ¥ 0 | ¥ 0 | ¥ 0 | ¥ 0 |
UNAUDITED INTERIM CONDENSED C_7
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY ¥ in Thousands, $ in Thousands | Ordinary sharesCNY (¥)shares | Additional paid-in capitalCNY (¥) | Statutory reserveCNY (¥) | Retained earningsCumulative adjustmentCNY (¥) | Retained earningsCNY (¥) | Accumulated other comprehensive income (loss)CNY (¥) | Total 9F Inc. shareholders' equityCumulative adjustmentCNY (¥) | Total 9F Inc. shareholders' equityCNY (¥) | Non-controlling interestCNY (¥) | Cumulative adjustmentCNY (¥) | CNY (¥) | USD ($) |
Beginning balance at Dec. 31, 2018 | ¥ 3,046,725 | ¥ 446,277 | ¥ 2,671,275 | ¥ 80,193 | ¥ 6,244,470 | ¥ 10,450 | ¥ 6,254,920 | |||||
Beginning balance (in shares) at Dec. 31, 2018 | shares | 162,672,800 | |||||||||||
Issuance of ordinary shares | 463,065 | 463,065 | 463,065 | |||||||||
Issuance of ordinary shares (in shares) | shares | 8,085,000 | |||||||||||
Share-based compensation | 353,151 | 353,151 | 353,151 | |||||||||
Net income (loss) | (2,159,576) | (2,159,576) | 5,931 | (2,153,645) | ||||||||
Provision of statutory reserve | 12,752 | (12,752) | ||||||||||
Other comprehensive income (loss) | 12,027 | 12,027 | 12,027 | |||||||||
Ending balance at Dec. 31, 2019 | ¥ 2 | 5,241,296 | 459,029 | 488,236 | 92,220 | 6,280,783 | 47,045 | 6,327,828 | ||||
Ending balance (in shares) at Dec. 31, 2019 | shares | 195,191,000 | |||||||||||
Issuance of ordinary shares | (44,876) | (44,876) | (44,876) | |||||||||
Share-based compensation | 207,008 | 207,008 | 207,008 | |||||||||
Net income (loss) | (741,013) | (741,013) | (3,586) | (744,599) | ||||||||
Provision of statutory reserve | 7,348 | (7,348) | ||||||||||
Other comprehensive income (loss) | 23,921 | 23,921 | 23,921 | |||||||||
Ending balance at Jun. 30, 2020 | ¥ 2 | 5,448,304 | 466,377 | (305,001) | 116,141 | 5,725,823 | 43,459 | 5,769,282 | ||||
Ending balance (in shares) at Jun. 30, 2020 | shares | 195,191,000 | |||||||||||
Beginning balance at Dec. 31, 2019 | ¥ 2 | 5,241,296 | 459,029 | 488,236 | 92,220 | 6,280,783 | 47,045 | 6,327,828 | ||||
Beginning balance (in shares) at Dec. 31, 2019 | shares | 195,191,000 | |||||||||||
Share-based compensation | 290,630 | 290,630 | 290,630 | |||||||||
Net income (loss) | (2,258,895) | (2,258,895) | 7,693 | (2,251,202) | $ (348,666) | |||||||
Provision of statutory reserve | 7,323 | (7,323) | ||||||||||
Ending balance (ASU 2016-13) at Dec. 31, 2020 | ¥ (44,767) | ¥ (44,767) | ¥ (44,767) | |||||||||
Ending balance at Dec. 31, 2020 | ¥ 2 | 5,531,926 | 466,352 | (1,822,749) | (6,953) | 4,168,578 | 54,738 | 4,223,316 | 654,109 | |||
Ending balance (in shares) at Dec. 31, 2020 | shares | 203,510,681 | |||||||||||
Share-based compensation | 34,842 | 34,842 | 34,842 | |||||||||
Net income (loss) | (193,709) | (193,709) | 747 | (192,962) | (29,887) | |||||||
Provision of statutory reserve | 116 | (116) | ||||||||||
Other comprehensive income (loss) | 72 | 5,932 | (42,964) | (36,960) | (197) | (37,157) | ||||||
Ending balance at Jun. 30, 2021 | ¥ 2 | ¥ 5,566,840 | ¥ 466,468 | ¥ (2,010,642) | ¥ (49,917) | ¥ 3,972,751 | ¥ 55,288 | ¥ 4,028,039 | $ 623,864 | |||
Ending balance (in shares) at Jun. 30, 2021 | shares | 203,510,681 |
UNAUDITED INTERIM CONDENSED C_8
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 6 Months Ended | |
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | |
Cash Flows from Operating Activities: | ||
Net income (loss) | ¥ (192,962) | $ (29,887) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation | 13,945 | 2,160 |
Amortization | 3,741 | 579 |
Share-based compensation | 34,842 | 5,396 |
Share of loss in equity method investments | 7,629 | 1,182 |
Impairment loss of equity securities without readily determinable fair value | 2,056 | 318 |
Impairment loss of equity method investment | 0 | |
Impairment loss of property, equipment and software | 2,310 | 358 |
Gain from disposal of equity securities without readily determinable fair value | 114,211 | 17,689 |
Provision for (reversal of) allowance for doubtful accounts | 43,868 | 6,795 |
Provision for (reversal of) doubtful contract assets | 428 | 66 |
Impairment loss of goodwill | 0 | |
Changes in operating assets and liabilities | ||
Accounts receivable | (69,193) | (10,717) |
Other receivables | (442,116) | (68,475) |
Loan receivables | 64,267 | 9,954 |
Contract assets | 3,452 | 535 |
Prepaid expenses and other assets | (88,679) | (13,735) |
Operating lease right-of-use assets | 2,681 | 415 |
Amount due from/to related parties | (1,699) | (263) |
Accrued expenses and other liabilities | (59,527) | (9,220) |
Income tax payable | (17,653) | (2,734) |
Payroll and welfare payable | 20,499 | 3,175 |
Deferred revenue | 72,564 | 11,239 |
Deferred tax liabilities | 776 | 120 |
Operating lease liabilities | (3,899) | (604) |
Net cash provided by (used in) operating activities | (521,777) | (80,814) |
Cash Flows from Investing Activities: | ||
Purchases of property, equipment and software and intangible assets | (3,087) | (478) |
Redemptions of term deposits | 30,000 | 4,646 |
Purchase of marketable securities | (320,483) | (49,636) |
Purchases of long-term investments | (19,566) | (3,030) |
Prepayment of investments | (34,000) | (5,266) |
Net cash (used in) provided by investing activities | (347,136) | (53,764) |
Cash Flows from Financing Activities: | ||
Effect of foreign exchange rate changes on cash, cash equivalent and restricted cash | 5,486 | 850 |
Net increase (decrease) in cash, cash equivalent, and restricted cash | (863,427) | (133,728) |
Cash, cash equivalent, and restricted cash at the beginning of period | 3,117,414 | 482,826 |
Cash, cash equivalent, and restricted cash at the end of the period | 2,253,987 | 349,098 |
Supplemental disclosures of cash flow information: | ||
Cash paid for income taxes | ¥ 3,625 | $ 561 |
UNAUDITED INTERIM CONDENSED C_9
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||
Aug. 31, 2019CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Jun. 30, 2020CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2017CNY (¥) | |
Reconciliation to amounts on consolidated balance sheets: | ||||||||||
Cash and cash equivalents | ¥ 4,684,003 | ¥ 5,469,077 | ¥ 1,877,191 | $ 290,740 | ¥ 2,726,712 | $ 422,314 | ¥ 3,651,788 | |||
Restricted cash | 125,437 | 376,796 | 58,358 | 390,702 | 60,512 | 262,730 | ||||
Total cash, cash equivalents, and restricted cash | 4,809,440 | 5,469,077 | ¥ 2,253,987 | $ 349,098 | ¥ 3,117,414 | $ 482,826 | ¥ 3,914,518 | $ 744,887 | ¥ 3,778,786 | |
Issuance cost | ¥ 31,776 | 31,776 | ||||||||
Convertible redeemable preferred shares | ||||||||||
Reconciliation to amounts on consolidated balance sheets: | ||||||||||
Issuance cost | 0 | ¥ 519 | ||||||||
IPO and over-allotment option | ||||||||||
Reconciliation to amounts on consolidated balance sheets: | ||||||||||
Issuance cost | ¥ 31,776 |
ORGANIZATION AND PRINCIPAL AC_2
ORGANIZATION AND PRINCIPAL ACTIVITIES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||
ORGANIZATION AND PRINCIPAL ACTIVITIES | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES 9F Inc. (the “Company” or “9F”) was incorporated under the laws of the Cayman Islands on January 24, 2014. The Company, its subsidiaries, its consolidated variable interest entities (“VIEs”) and VIEs’ subsidiaries (collectively referred to as the “Group”) are digital platform integrating and personalizing financial services in the People’s Republic of China (“PRC”). The Group provides a comprehensive range of financial products and services across online lending, wealth management, and payment facilitation, all integrated under a single digital financial account. In light of the tightening of the RPC regulatory environment, the Group significantly decreased its online lending information intermediary services in 2020 in the PRC and are planning to replace the lost business by developing markets outside the PRC. Prior to the incorporation of the Company, the Group operated its business in China through Jiufu Shuke Technology Group Co, Ltd (“Jiufu Shuke”), formerly known as Jiufu Jinke Holding Group Co, Ltd., as a limited liability company owned by the original shareholders (the “Founders”), Zhenxiang Zhong, Guangwu Gao, and Yifan Ren. On August 25, 2014, Jiufu Shuke became the Group’s consolidated VIEs through the contractual arrangements described below in “Basis of consolidation” in Note 2. | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES 9F Inc. (the “Company” or “9F”) was incorporated under the laws of the Cayman Islands on January 24, 2014. The Company, its subsidiaries, its consolidated variable interest entities (“VIEs”) and VIEs’ subsidiaries (collectively referred to as the “Group”) are digital platform integrating and personalizing financial services in the People’s Republic of China (“PRC”). The Group provides a comprehensive range of financial products and services across online lending, wealth management, and payment facilitation, all integrated under a single digital financial account. In light of the tightening of the RPC regulatory environment, the Group significantly decreased its online lending information intermediary services in 2020 in the PRC and are planning to replace the lost business by developing markets outside the PRC. Prior to the incorporation of the Company, the Group operated its business in China through Jiufu Shuke Technology Group Co, Ltd (“Jiufu Shuke”), formerly known as Jiufu Jinke Holding Group Co, Ltd., as a limited liability company owned by the original shareholders (the “Founders”), Zhenxiang Zhong, Guangwu Gao, and Yifan Ren. On August 25, 2014, Jiufu Shuke became the Group’s consolidated VIEs through the contractual arrangements described below in “Basis of consolidation” in Note 2. |
SUMMARY OF SIGNIFICANT ACCOU_18
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
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 Group have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”). The interim financial statements are condensed and should be read in conjunction with the Group’s latest annual financial statements and that interim disclosures generally do not repeat those in the annual statements. Revenue presentation in the unaudited interim condensed consolidated financial statements and accompanying notes have been reclassified to conform to the current period’s presentation. The Group had made all adjustments necessary for a fair statement of the results for the interim periods. Basis of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries and consolidated VIEs, including the VIEs’ subsidiaries, for which the Group is the primary beneficiary. All transactions and balances among the Company, its subsidiaries, the VIEs and the VIEs’ subsidiaries have been eliminated upon consolidation. As PRC laws and regulations prohibit and restrict foreign ownership of internet value-added businesses, the Group operates its internet related business in the PRC through two PRC domestic companies, Jiufu Shuke and Beijing Puhui Lianyin Information Technology Limited (“Beijing Puhui”), whose equity interests are held by certain management members and the Founders of the Group. The Group established four wholly-owned foreign invested subsidiaries in the PRC, Beijing Shuzhi Lianyin Technology Co., Ltd (“Shunzhi Lianyin”), Zhuhai Xiaojin Hulian Technology Co., Ltd (“Xiaojin Hulian”), Zhuhai Wukong Youpin Technology Co., Ltd (“Wukong Youpin”), and Qinghai Fuyuan Network Technology (Shenzhen) Co., Ltd (“Qinghai Fuyuan”, together with Shunzhi Lianyin, Xiaojin Hulian, and Wukong Youpin collectively referred as the “WFOEs”). By entering into a series of agreements (the “VIE Agreements”), the Group, through WFOEs, obtained control over Jiufu Shuke and Beijing Puhui (collectively referred as “VIEs”). The VIE Agreements enable the Group to (1) have power to direct the activities that most significantly affect the economic performance of the VIEs, and (2) receive the economic benefits of the VIEs that could be significant to the VIEs. Accordingly, the Group is considered the primary beneficiary of the VIEs and has consolidated the VIEs’ financial results of operations, assets and liabilities in the Group’s consolidated financial statements. In making the conclusion that the Group is the primary beneficiary of the VIEs, the Group’s rights under the Power of Attorney also provide the Group’s abilities to direct the activities that most significantly impact the VIEs’ economic performance. The Group also believes that this ability to exercise control ensures that the VIEs will continue to execute and renew the Master Exclusive Service Agreement and pay service fees to the Group. By charging service fees to be determined and adjusted at the sole discretion of the Group, and by ensuring that the Master Exclusive Service Agreement is executed and remains effective, the Group has the rights to receive substantially all of the economic benefits from the VIEs. Details of the VIE Agreements, are set forth below: VIE Agreements that were entered to give the Group effective control over the VIEs include: Voting Rights Proxy Agreement and Irrevocable Power of Attorney Under which each shareholder of the VIEs grant to any person designated by WFOEs to act as its attorney-in-fact to exercise all shareholder rights under PRC law and the relevant articles of association, including but not limited to, appointing directors, supervisors and officers of the VIEs as well as the right to sell, transfer, pledge and dispose all or a portion of the equity interest held by such shareholders of the VIEs. The proxy and power of attorney agreements will remain effective as long as WFOEs exist. The shareholders of the VIEs do not have the right to terminate the proxy agreements or revoke the appointment of the attorney-in-fact without written consent of the WFOEs. Exclusive Option Agreement Under which each shareholder of the VIEs granted 9F or any third party designated by 9F the exclusive and irrevocable right to purchase from such shareholders of the VIEs, to the extent permitted by PRC law and regulations, all or part of their respective equity interests in the VIEs for a purchase price equal to the registered capital. The shareholders of the VIEs will then return the purchase price to 9F or any third party designated by 9F after the option is exercised. 9F may transfer all or part of its option to a third party at its own option. The VIEs and its shareholders agree that without prior written consent of 9F, they may not transfer or otherwise dispose the equity interests or declare any dividends. The restated option agreement will remain effective until 9F or any third party designated by 9F acquires all equity interest of the VIEs. Spousal Consent The spouse of each shareholder of the VIEs has entered into a spousal consent letter to acknowledge that he or she consents to the disposition of the equity interests held by his or her spouse in the VIEs in accordance with the exclusive option agreement, the power of attorney and the equity pledge agreement regarding VIE structure described above, and any other supplemental agreement(s) may be consented by his or her spouse from time to time. Each such spouse further agrees that he or she will not take any action or raise any claim to interfere with the arrangements contemplated under the mentioned agreements. In addition, each such spouse further acknowledges that any right or interest in the equity interests held by his or her spouse in the VIEs do not constitute property jointly owned with his or her spouse and each such spouse unconditionally and irrevocably waives any right or interest in such equity interests. Loan Agreement Pursuant to the loan agreements between WFOEs and each shareholder of the VIEs, WFOEs extended loans to the shareholders of the VIEs, who had contributed the loan principal to the VIEs as registered capital. The shareholders of VIEs may repay the loans only by transferring their respective equity interests in VIEs to 9F Inc. or its designated person(s) pursuant to the exclusive option agreements. These loan agreements will remain effective until the date of full performance by the parties of their respective obligations thereunder. VIE Agreements that enables the Group to receive substantially all of the economic benefits from the VIEs include: Equity Interest Pledge Agreement Pursuant to equity interest pledge agreement, each shareholder of the VIEs has pledged all of his or her equity interest held in the VIEs to WFOEs to secure the performance by VIEs and their shareholders of their respective obligations under the contractual arrangements, including the payments due to WFOEs for services provided. In the event that the VIEs breach any obligations under these agreements, WFOEs as the pledgees, will be entitled to request immediate disposal of the pledged equity interests and have priority to be compensated by the proceeds from the disposal of the pledged equity interests. The shareholders of the VIEs shall not transfer their equity interests or create or permit to be created any pledges without the prior written consent of WFOEs. The equity interest pledge agreement will remain valid until the master exclusive service agreement and the relevant exclusive option agreements and proxy and power of attorney agreements, expire or terminate. Master Exclusive Service Agreement Pursuant to exclusive service agreement, WFOEs have the exclusive right to provide the VIEs with technical support, consulting services and other services. WFOEs shall exclusively own any intellectual property arising from the performance of the agreement. During the term of this agreement, the VIEs may not accept any services covered by this agreement provided by any third party. The VIEs agree to pay service fees to be determined and adjusted at the sole discretion of the WFOEs. The agreement will remain effective unless WFOEs terminate the agreement in writing. Risks in relation to the VIE structure The Group believes that the contractual arrangements with the VIEs and their current shareholders are in compliance with PRC laws and regulations and are legally enforceable. However, uncertainties in the PRC legal system could limit the Group’s ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government could: ● Revoke the business and operating licenses of the Group’s PRC subsidiaries or consolidated affiliated entities; ● Discontinue or restrict the operations of any related-party transactions among the Group’s PRC subsidiaries or consolidated affiliated entities; ● Impose fines or other requirements on the Group’s PRC subsidiaries or consolidated affiliated entities; ● Require the Group’s PRC subsidiaries or consolidated affiliated entities to revise the relevant ownership structure or restructure operations; and/or; ● Restrict or prohibit the Group’s use of the proceeds of the additional public offering to finance the Group’s business and operations in China; ● Shut down the Group’s servers or blocking the Group’s online platform; ● Discontinue or place restrictions or onerous conditions on the Group’s operations; and/or ● Require the Group to undergo a costly and disruptive restructuring. The Group’s ability to conduct its business may be negatively affected if the PRC government were to carry out any of the aforementioned actions. As a result, the Group may not be able to consolidate the VIEs in its consolidated financial statements as it may lose the ability to exert effective control over the VIEs and its shareholders, and it may lose the ability to receive economic benefits from the VIEs. The Group currently does not believe that any penalties imposed or actions taken by the PRC government would result in the liquidation of the Company, WFOEs, or the VIEs. The following table sets forth the assets, liabilities, results of operations and cash flows of the VIEs and their subsidiaries, which are included in the Group’s consolidated financial statements after the elimination of intercompany balances and transactions: As of December 31, As of June 30, 2020 2021 RMB RMB Assets: Cash and cash equivalents 1,501,733 1,293,615 Term deposits 135,000 105,000 Investment in marketable securities — 77,109 Accounts receivable, net 9,888 45,957 Other receivables, net 68,742 144,449 Loan receivables, net 221,200 163,200 Prepaid expenses and other assets 740,959 837,041 Contracts assets, net 10,374 6,494 Long‑term investments, net 491,510 489,727 Operating lease right-of-use assets, net 18,611 16,130 Property, equipment and software, net 51,701 39,507 Goodwill, net 72,304 72,304 Intangible assets, net 40,187 38,700 Total assets 3,362,209 3,329,233 Liabilities: Deferred revenue 81,246 9,904 Payroll and welfare payable 29,152 12,614 Income taxes payable 224,533 238,179 Accrued expenses and other liabilities 238,170 274,219 Operating lease liabilities 19,100 15,408 Amounts due to related parties 24,146 23,967 Deferred tax liabilities 5,742 5,392 Total liabilities 622,089 579,683 For the six months ended June 30, 2020 2021 RMB RMB Net revenues 787,925 332,913 Net income (loss) (406,710) 10,552 For the six months ended June 30, 2020 2021 RMB RMB Net cash provided by (used in) operating activities (175,504) (228,263) Net cash used in investing activities (396,186) 20,145 Net cash provided by (used in) financing activities — — Under the VIE Arrangements, the Group has the power to direct activities of the VIEs and can have assets transferred out of the VIEs. Therefore, the Group considers that there is no asset in the VIEs that can be used only to settle obligations of the VIEs, except for assets that correspond to the amount of the registered capital and PRC statutory reserves, if any. As the VIEs are incorporated as limited liability companies under the Company Law of the PRC, creditors of the VIEs do not have recourse to the general credit of the Group for any of the liabilities of the VIEs. Currently there is no contractual arrangement which requires the Group to provide additional financial support to the VIEs. However, as the Group conducts its businesses primarily based on the licenses held by the VIEs, the Group has provided and will continue to provide financial support to the VIEs. Revenue-producing assets held by the VIEs include certain internet content provision (“ICP”) licenses and other licenses, domain names and trademarks. The ICP licenses and other licenses are required under relevant PRC laws, rules and regulations for the operation of internet businesses in the PRC, and therefore are integral to the Group’s operations. The ICP licenses require that core PRC trademark registrations and domain names are held by the VIEs that provide the relevant services. The VIE contributed an aggregate of 92.87% and 84.72% of the consolidated net revenues for six months ended June 30,2020 and 2021 respectively. As of December 31, 2020 and June 30,2021, the VIE accounted for an aggregate of 62.42% and 64.41% respectively, of the consolidated total assets, and 53.48% and 50.81%, respectively, of the consolidated total liabilities. The assets that were not associated with the VIE primarily consist of cash and cash equivalents. 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 are estimates and judgments applied in revenue recognition, allowance for receivables, impairment loss of investments, share-based compensation and realization of deferred tax assets. Actual results may differ materially from these estimates. Revenue recognition The Group follows the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers The core principle of Topic 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Online Lending Information Intermediary Services revenue Through its online platform, the Group provides intermediary services on the personal financing product, One Card, under which the holders of One Card can apply for loans on a revolving basis (“revolving loan products”). The Group also provides one-time loan facilitation services to meet various consumption needs (“non-revolving loan product”). For revolving loan products and non-revolving loan products, the Group’s services provided consist of: a) Matching marketplace investors to potential qualified borrowers and facilitating the execution of loan agreements between the parties (referred to as “loan facilitation service”); and b) Providing repayment processing services for the marketplace investors and borrowers over the loan term, including repayment reminders and following up on late repayments (referred to as “post origination services”). The Group has determined that it is not the legal lender or borrower in the loan origination and repayment process, but acting as an intermediary to bring the lender and the borrower together. Therefore, the Group does not record the loans receivable or payable arising from the loans facilitated between the investors and borrowers on its platform. The Group considers its customers to be both the investors and borrowers. The Group considers the loan facilitation service and post origination services as two separate services, which represent two separate performance obligations under Topic 606, as these two deliverables are distinct in that customers can benefit from each service on its own and the Group’s promises to deliver the services are separately identifiable from each other in the contract. The Group determines the total transaction price to be the service fees chargeable from the borrowers and investors. The transaction price is allocated to the loan facilitation services and post origination services using their relative standalone selling prices consistent with the guidance in Topic 606. The Group does not have observable standalone selling price information for the loan facilitation services or post origination services because it does not provide loan facilitation services or post origination services on a standalone basis. There is no direct observable standalone selling price for similar services in the market that is reasonably available to the Group. As a result, the Group uses an expected plus margin approach to estimate the standalone selling prices of loan facilitation services and post origination services as the basis of revenue allocation, which involves significant judgements. In estimating its standalone selling price for the loan facilitation services and post origination services, the Group considers the cost incurred to deliver such services, profit margin for similar arrangements, customer demand, effect of competitors on the Group’s services, and other market factors. For each type of service, the Group recognizes revenue when (or as) the entity satisfies the service/performance obligation by transferring a promised good or service (that is, an asset) to a customer. Revenues from loan facilitation are recognized at the time a loan is originated between the investor and the borrower and the principal loan balance is transferred to the borrower, at which time the loan facilitation service is considered completed. Revenues from post origination services are recognized on a straight-line basis over the term of the underlying loans as the services are provided ratably on a monthly basis. A majority of the service fee is charged to the borrowers, which is collected upfront upon at the loan inception or collected over the loan term. Investors pay service fees to the Group either at the beginning and at the end of the investment commitment period (in terms of automated investing tools) or over the terms of the loan (in terms of self-directing investing tools). In 2018, 2019 and 2020, service fees charged at the beginning or at the end of the investment commitment period or over the terms of the loans in the periods presented were calculated to be equal to an annualized interest rate ranging from 0.5% to 1.5% based on the investment amount and the investment term. Service fees charged to borrowers and investors, including the service fees charged to investors collected at the end of the investment commitment period or over the terms of the loans in the periods presented, were combined as contract price to be allocated to the two performance obligations relating to loan facilitation services and post-origination services, and recognized as revenue when the relevant services are delivered. Revenue recognized related to service fees not yet received from investors that will be collected at the end of the investment commitment period and over the commitment period are recorded as accounts receivable. All service fees are fixed and not refundable. Revenue recognized is recorded net of value added tax (“VAT”). Remaining performance obligations represent the amount of the transaction price for which service has not been performed under post-origination services. In June 2021, the Group ceased publishing information relating to new offerings of investment opportunities in fixed income products for investors on its online lending information intermediary platform. Pursuant to certain collaboration arrangements entered into by the Group and a licensed asset management company, the rights of investors in existing loans underlying the fixed income products will be transferred to the asset management company. After such transfer, the outstanding balance of loans facilitated shall become nil, and the asset management company will provide existing investors with services in relation to the return of their remaining investment in loans. Direct lending program revenue Through its direct lending program, the Group provides traffic referral services to financial institution partners, allowing the financial institution partners to gain access to borrowers who passed the Group’s risk assessment. The Group’s services provided consist of: a) Matching financial institution partners to potential qualified borrowers, and facilitating the execution of loan agreements between the parties (also referred to as “loan facilitation service”); and b) Providing repayment processing services for the financial institution partners and borrowers over the loan term, including repayment reminders and loan collection (also referred to as “post origination services”). Consistent with the revenue recognition policy under the online lending information intermediary services model, the Group has determined that it is not the legal lender or borrower in the loan origination and repayment process, but acting as an intermediary to bring the lender and the borrower together. Therefore, the Group does not record the loans receivable or payable arising from the loans facilitated between the financial institution partners and borrowers. The Group considers its customers to be both the financial institution partners and borrowers. The Group considers the loan facilitation service and post origination service as two separate performance obligations. The Group determines the total transaction price to be the service fees chargeable from the borrowers or the financial institution partners, which is the contracted price adjusted for variable consideration such as potential loan prepayment by the borrows that could reduce the total transaction price, which is estimated using the expected value approach based on historical data and current trends of prepayments of the borrowers. Then the transaction price is allocated to the loan facilitation services and post origination services using their relative standalone selling prices consistent with the guidance in Topic 606, similar to online lending information intermediary services revenue. For each type of service, the Group recognizes revenue when (or as) the entity satisfies the service/performance obligation by transferring the promised service to customers. Revenues from loan facilitation services are recognized at the time a loan is originated between the financial institution 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 origination services are recognized on a straight-line basis over the term of the underlying loans as the services are provided ratably on a monthly basis. Since April 2019, the Group has stopped charging service fees directly to the borrowers under its direct lending program. Instead, the Group started to charge service fees either directly to the institutional funding partners, or indirectly through third-party guarantee companies who provide guarantee services, or the insurance company who provided credit insurance to the institutional funding partners on their loans to the borrowers. The Group concluded this change did not alter the substance of the services it provided to borrowers and financial institution partners under the direct lending program, and therefore would not impact how revenue was recognized. In 2019, under a cooperation agreement, as amended (the “Cooperation Agreement”), the Group predominantly partnered with PICC Property and Casualty Company Limited Guangdong Branch (“PICC”) who provided the credit insurance service to institutional funding partners on the loan origination, PICC collected all of the loan facilitation service fees and remitted the Group’s portion of the service fees to the Group. The Group recorded an account receivable for the service fees confirmed and to be remitted by PICC. Technical services The Group offers technical services to customers including technology empowerment services, operation and marketing support services, customized software development, etc. Technology empowerment services to customers with respect to user acquisition, risk management, consumption scenario perception and comprehension and data modeling. Technical services generate revenues primarily from fixed-price short-term contracts, revenue generated from technology empowerment services, operation and marketing support services is generally recognized over time on a ratable basis. Revenue generated from technology customized software development is recognized when control over the customized software has been transferred to the customer. Wealth management services Through its internet securities service platform,the Group provides Internet Securities Service, Insurance Brokerage Service and Small consumptive business in Southeast Asia. The Group offers convenient and effective global asset allocation services, especially offshore securities investment services, to individual investors so as to connect them with Hong Kong and U.S. stock markets.Internet Securities Service generated revenue from commissions through customers’ transactions in stocks by providing brokerage service for its customers. The Group enters into insurance brokerage service contracts with insurance companies with a pre-agreed commission. The commissions is normally calculated as a percentage (which varies depending on the type of insurance products involved) of the premium to the insurance companies from sales facilitated by the group in respect of an insurance product.For insurance brokerage service, the single performance obligation identified is to provide facilitation service to the insurance companies. For each type of service, the Group recognizes revenue when (or as) the entity satisfies the service/performance obligation by transferring the promised service to customers. The Internet Securities Service is recognized at a point in time on the trade date when the performance obligation is satisfied. The brokerage service commission are earned when each individual insurance transaction is completed. Other revenues Other revenues mainly include product sales revenues from online sales of goods, customer referral and government subsidy income,etc. The Group generates product sales revenues primarily through selling of merchandise via its online shopping platform, 9F One Mall (“online agent model”), and through selling of upscale products via third party platforms (“online direct sales model”). Under online agent model, customers can buy merchandise provided by third-party merchandise suppliers on our 9F One Mall. The Group does not control the merchandise, but rather is acting as an agent for the suppliers. Revenue is recognized for the net amount of consideration the Group is entitled to retain in exchange for the agent service. The Group commenced the operations of the online direct sales model in the first quarter of 2019 and terminated the operations of the online direct sales model in the third quarter of 2019. Under the online direct sales model, revenue is recognized on a gross basis as the Group controls the merchandise before it is transferred to the customers, which is indicated by (i) the Group is primarily responsible for fulfilling the promise to provide the specified upscale products to the customers; (ii) the Group bears inventory risk; and (iii) the Group has discretion in establishing price. Cash incentives To expand market presence, the Group voluntarily provides cash incentives in the form of cash coupons to new and existing investors during its marketing activities. These coupons are not related to prior transactions, and can only be utilized in conjunction with subsequent lending activities. The cash incentives provided are accounted as a reduction of the transaction price according to ASC 606 10 32 25. Cash incentives paid to existing investors, cash incentives paid to new investors, and cash incentives recognized as a reduction of revenue for six months ended June 30, 2020 was RMB 61.7 1.86 64.4 Value added taxes (“VAT”) The Group is subject to value added tax, or VAT, at a rate of 16% from May 1,2018 to March 31,2019 and 13% thereafter on sales of products, and at a rate of 6% on services rendered by the Group, less any deductible VAT the Group has already paid or borne, except for entities qualified as small-scale taxpayers at a VAT rate of 3% without any deduction. Since April 1, 2019, the Group has been subject to an additional 10% deductible VAT. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. VAT is reported as a deduction to revenue when incurred and amounted to RMB 101,869 102,953 Disaggregation of revenues The Group generates revenues primarily from loan facilitation and post-origination services provided to investors, borrowers and financial institution partners through its online lending information intermediary services and direct lending program for the six months ended June 30,2020. The Group generates revenues from thehnical services and wealth management service provided to the customers during the six months ended June 30,2020 and 2021. The Group also generates other revenues, such as penalty fees charged to borrowers for late payment, product sales revenues from online sales of goods, and other service revenues. The following table provides further disaggregation by types of revenues recognized for the six months ended June 30,2020 and 2021: Loan Post facilitation origination Technical Wealth Other For the six months ended June 30,2020 services services services management revenues Total RMB RMB RMB RMB RMB RMB Online lending platform revenue Online lending information intermediary services revenue Revolving loan products (One Card) 133,743 48,815 — — — 182,558 Non‑revolving loan products Direct lending program revenue 94,049 481,417 — — — 575,466 Other revenue 10,067 62,360 17,979 90,406 Total 227,792 530,232 10,067 62,360 17,979 848,430 Loan Post facilitation origination Technical Wealth Other For the six months ended June 30,2021 services services services management revenues Total RMB RMB RMB RMB RMB RMB Online lending platform revenue Online lending information intermediary services revenue Revolving loan products (One Card) — 68,826 — — — 68,826 Non‑revolving loan products Direct lending program revenue — 9,178 — — — 9,178 Other revenue 164,497 61,362 89,093 314,952 Total — 78,004 164,497 61,362 89,093 392,956 The Group manages its business through a comprehensive offering of financial products and services tailored to the needs of the investors, borrowers and customers. These financial products are categorized by the Group as Online Lending platform revenue, wealth management products and others. The following table illustrates the disaggregation of revenues by product offering for the six months ended June 30,2020 and 2021: June 30, June 30, 2020 2021 RMB RMB Online Lending platform revenue 758,024 78,004 Technical services 10,067 164,497 Wealth management services 62,360 61,362 Others 17,979 89,093 Total 848,430 392,956 Deferred Revenue Deferred revenue consists of post origination service fees received or receivable from borrowers, investors and financial institution partners for which services have not yet been provided. Deferred revenues is recognized ratably as revenue when the post-origination services are delivered during the loan period. Revenue recognized during the six months ended June 30,2021 that was included in the deferred revenue balance at the beginning of the year was RMB72,564. In December 2018, China | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The accompanying consolidated financial statements of the Group have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”). Basis of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries and consolidated VIEs, including the VIEs’ subsidiaries, for which the Group is the primary beneficiary. All transactions and balances among the Company, its subsidiaries, the VIEs and the VIEs’ subsidiaries have been eliminated upon consolidation. As PRC laws and regulations prohibit and restrict foreign ownership of internet value-added businesses, the Group operates its internet related business in the PRC through two PRC domestic companies, Jiufu Shuke and Beijing Puhui Lianyin Information Technology Limited (“Beijing Puhui”), whose equity interests are held by certain management members and the Founders of the Group. The Group established four wholly-owned foreign invested subsidiaries in the PRC, Beijing Shuzhi Lianyin Technology Co., Ltd (“Shunzhi Lianyin”), Zhuhai Xiaojin Hulian Technology Co., Ltd (“Xiaojin Hulian”), Zhuhai Wukong Youpin Technology Co., Ltd (“Wukong Youpin”), and Qinghai Fuyuan Network Technology (Shenzhen) Co., Ltd (“Qinghai Fuyuan”, together with Shunzhi Lianyin, Xiaojin Hulian, and Wukong Youpin collectively referred as the “WFOEs”). By entering into a series of agreements (the “VIE Agreements”), the Group, through WFOEs, obtained control over Jiufu Shuke and Beijing Puhui (collectively referred as “VIEs”). The VIE Agreements enable the Group to (1) have power to direct the activities that most significantly affect the economic performance of the VIEs, and (2) receive the economic benefits of the VIEs that could be significant to the VIEs. Accordingly, the Group is considered the primary beneficiary of the VIEs and has consolidated the VIEs’ financial results of operations, assets and liabilities in the Group’s consolidated financial statements. In making the conclusion that the Group is the primary beneficiary of the VIEs, the Group’s rights under the Power of Attorney also provide the Group’s abilities to direct the activities that most significantly impact the VIEs’ economic performance. The Group also believes that this ability to exercise control ensures that the VIEs will continue to execute and renew the Master Exclusive Service Agreement and pay service fees to the Group. By charging service fees to be determined and adjusted at the sole discretion of the Group, and by ensuring that the Master Exclusive Service Agreement is executed and remains effective, the Group has the rights to receive substantially all of the economic benefits from the VIEs. Details of the VIE Agreements, are set forth below: VIE Agreements that were entered to give the Group effective control over the VIEs include: Voting Rights Proxy Agreement and Irrevocable Power of Attorney Under which each shareholder of the VIEs grant to any person designated by WFOEs to act as its attorney-in-fact to exercise all shareholder rights under PRC law and the relevant articles of association, including but not limited to, appointing directors, supervisors and officers of the VIEs as well as the right to sell, transfer, pledge and dispose all or a portion of the equity interest held by such shareholders of the VIEs. The proxy and power of attorney agreements will remain effective as long as WFOEs exist. The shareholders of the VIEs do not have the right to terminate the proxy agreements or revoke the appointment of the attorney-in-fact without written consent of the WFOEs. Exclusive Option Agreement Under which each shareholder of the VIEs granted 9F or any third party designated by 9F the exclusive and irrevocable right to purchase from such shareholders of the VIEs, to the extent permitted by PRC law and regulations, all or part of their respective equity interests in the VIEs for a purchase price equal to the registered capital. The shareholders of the VIEs will then return the purchase price to 9F or any third party designated by 9F after the option is exercised. 9F may transfer all or part of its option to a third party at its own option. The VIEs and its shareholders agree that without prior written consent of 9F, they may not transfer or otherwise dispose the equity interests or declare any dividends. The restated option agreement will remain effective until 9F or any third party designated by 9F acquires all equity interest of the VIEs. Spousal Consent The spouse of each shareholder of the VIEs has entered into a spousal consent letter to acknowledge that he or she consents to the disposition of the equity interests held by his or her spouse in the VIEs in accordance with the exclusive option agreement, the power of attorney and the equity pledge agreement regarding VIE structure described above, and any other supplemental agreement(s) may be consented by his or her spouse from time to time. Each such spouse further agrees that he or she will not take any action or raise any claim to interfere with the arrangements contemplated under the mentioned agreements. In addition, each such spouse further acknowledges that any right or interest in the equity interests held by his or her spouse in the VIEs do not constitute property jointly owned with his or her spouse and each such spouse unconditionally and irrevocably waives any right or interest in such equity interests. Loan Agreement Pursuant to the loan agreements between WFOEs and each shareholder of the VIEs, WFOEs extended loans to the shareholders of the VIEs, who had contributed the loan principal to the VIEs as registered capital. The shareholders of VIEs may repay the loans only by transferring their respective equity interests in VIEs to 9F Inc. or its designated person(s) pursuant to the exclusive option agreements. These loan agreements will remain effective until the date of full performance by the parties of their respective obligations thereunder. VIE Agreements that enables the Group to receive substantially all of the economic benefits from the VIEs include: Equity Interest Pledge Agreement Pursuant to equity interest pledge agreement, each shareholder of the VIEs has pledged all of his or her equity interest held in the VIEs to WFOEs to secure the performance by VIEs and their shareholders of their respective obligations under the contractual arrangements, including the payments due to WFOEs for services provided. In the event that the VIEs breach any obligations under these agreements, WFOEs as the pledgees, will be entitled to request immediate disposal of the pledged equity interests and have priority to be compensated by the proceeds from the disposal of the pledged equity interests. The shareholders of the VIEs shall not transfer their equity interests or create or permit to be created any pledges without the prior written consent of WFOEs. The equity interest pledge agreement will remain valid until the master exclusive service agreement and the relevant exclusive option agreements and proxy and power of attorney agreements, expire or terminate. Master Exclusive Service Agreement Pursuant to exclusive service agreement, WFOEs have the exclusive right to provide the VIEs with technical support, consulting services and other services. WFOEs shall exclusively own any intellectual property arising from the performance of the agreement. During the term of this agreement, the VIEs may not accept any services covered by this agreement provided by any third party. The VIEs agree to pay service fees to be determined and adjusted at the sole discretion of the WFOEs. The agreement will remain effective unless WFOEs terminate the agreement in writing. Risks in relation to the VIE structure The Group believes that the contractual arrangements with the VIEs and their current shareholders are in compliance with PRC laws and regulations and are legally enforceable. However, uncertainties in the PRC legal system could limit the Group’s ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government could: ● Revoke the business and operating licenses of the Group’s PRC subsidiaries or consolidated affiliated entities; ● Discontinue or restrict the operations of any related-party transactions among the Group’s PRC subsidiaries or consolidated affiliated entities; ● Impose fines or other requirements on the Group’s PRC subsidiaries or consolidated affiliated entities; ● Require the Group’s PRC subsidiaries or consolidated affiliated entities to revise the relevant ownership structure or restructure operations; and/or; ● Restrict or prohibit the Group’s use of the proceeds of the additional public offering to finance the Group’s business and operations in China; ● Shut down the Group’s servers or blocking the Group’s online platform; ● Discontinue or place restrictions or onerous conditions on the Group’s operations; and/or ● Require the Group to undergo a costly and disruptive restructuring. The Group’s ability to conduct its business may be negatively affected if the PRC government were to carry out any of the aforementioned actions. As a result, the Group may not be able to consolidate the VIEs in its consolidated financial statements as it may lose the ability to exert effective control over the VIEs and its shareholders, and it may lose the ability to receive economic benefits from the VIEs. The Group currently does not believe that any penalties imposed or actions taken by the PRC government would result in the liquidation of the Company, WFOEs, or the VIEs. The following table sets forth the assets, liabilities, results of operations and cash flows of the VIEs and their subsidiaries, which are included in the Group’s consolidated financial statements after the elimination of intercompany balances and transactions: As of December 31, 2019 2020 RMB RMB Assets: Cash and cash equivalents 2,766,981 1,501,733 Term deposits 24,000 135,000 Accounts receivable, net 267,277 9,888 Other receivables, net 81,525 68,742 Loan receivables, net 729,798 221,200 Amounts due from related parties 50,000 — Prepaid expenses and other assets 1,085,197 740,959 Contracts assets, net 24,814 10,374 Long‑term investments, net 293,441 491,510 Operating lease right-of-use assets, net 113,606 18,611 Property, equipment and software, net 95,783 51,701 Goodwill, net 72,224 72,304 Intangible assets, net 45,362 40,187 Deferred tax assets, net 503,078 — Total assets 6,153,086 3,362,209 Liabilities: Deferred revenue 772,340 81,246 Payroll and welfare payable 35,958 29,152 Income taxes payable 303,684 224,533 Accrued expenses and other liabilities 1,056,128 238,170 Operating lease liabilities 119,005 19,100 Amounts due to related parties 29,902 24,146 Deferred tax liabilities 13,200 5,742 Total liabilities 2,330,217 622,089 For the years ended December 31, 2018 2019 2020 RMB RMB RMB Net revenues 5,270,948 4,305,272 1,145,210 Net income (loss) 2,702,469 (1,551,509) (1,479,883) For the years ended December 31, 2018 2019 2020 RMB RMB RMB Net cash provided by (used in) operating activities 2,906,094 (439,357) (753,416) Net cash used in investing activities (803,155) (1,315,875) (511,832) Net cash provided by (used in) financing activities 1,000 (5,188) — Under the VIE Arrangements, the Group has the power to direct activities of the VIEs and can have assets transferred out of the VIEs. Therefore, the Group considers that there is no asset in the VIEs that can be used only to settle obligations of the VIEs, except for assets that correspond to the amount of the registered capital and PRC statutory reserves, if any. As the VIEs are incorporated as limited liability companies under the Company Law of the PRC, creditors of the VIEs do not have recourse to the general credit of the Group for any of the liabilities of the VIEs. Currently there is no contractual arrangement which requires the Group to provide additional financial support to the VIEs. However, as the Group conducts its businesses primarily based on the licenses held by the VIEs, the Group has provided and will continue to provide financial support to the VIEs. Revenue-producing assets held by the VIEs include certain internet content provision (“ICP”) licenses and other licenses, domain names and trademarks. The ICP licenses and other licenses are required under relevant PRC laws, rules and regulations for the operation of internet businesses in the PRC, and therefore are integral to the Group’s operations. The ICP licenses require that core PRC trademark registrations and domain names are held by the VIEs that provide the relevant services. The VIE contributed an aggregate of 94.86%, 97.30% and 91.18% of the consolidated net revenues for the year ended December 31, 2018, 2019 and 2020, respectively. As of December 31, 2019 and 2020, the VIE accounted for an aggregate of 69.29% and 62.42% respectively, of the consolidated total assets, and 91.29% and 53.48%, respectively, of the consolidated total liabilities. The assets that were not associated with the VIE primarily consist of cash and cash equivalents. 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 are estimates and judgments applied in revenue recognition, allowance for receivables, impairment loss of investments, share-based compensation and realization of deferred tax assets. Actual results may differ materially from these estimates. Revenue recognition The Group follows the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers The core principle of Topic 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Online Lending Information Intermediary Services revenue Through its online platform, the Group provides intermediary services on the personal financing product, One Card, under which the holders of One Card can apply for loans on a revolving basis (“revolving loan products”). The Group also provides one-time loan facilitation services to meet various consumption needs (“non-revolving loan product”). For revolving loan products and non-revolving loan products, the Group’s services provided consist of: a) Matching marketplace investors to potential qualified borrowers and facilitating the execution of loan agreements between the parties (referred to as “loan facilitation service”); and b) Providing repayment processing services for the marketplace investors and borrowers over the loan term, including repayment reminders and following up on late repayments (referred to as “post origination services”). The Group has determined that it is not the legal lender or borrower in the loan origination and repayment process, but acting as an intermediary to bring the lender and the borrower together. Therefore, the Group does not record the loans receivable or payable arising from the loans facilitated between the investors and borrowers on its platform. The Group considers its customers to be both the investors and borrowers. The Group considers the loan facilitation service and post origination services as two separate services, which represent two separate performance obligations under Topic 606, as these two deliverables are distinct in that customers can benefit from each service on its own and the Group’s promises to deliver the services are separately identifiable from each other in the contract. The Group determines the total transaction price to be the service fees chargeable from the borrowers and investors. The transaction price is allocated to the loan facilitation services and post origination services using their relative standalone selling prices consistent with the guidance in Topic 606. The Group does not have observable standalone selling price information for the loan facilitation services or post origination services because it does not provide loan facilitation services or post origination services on a standalone basis. There is no direct observable standalone selling price for similar services in the market that is reasonably available to the Group. As a result, the Group uses an expected plus margin approach to estimate the standalone selling prices of loan facilitation services and post origination services as the basis of revenue allocation, which involves significant judgements. In estimating its standalone selling price for the loan facilitation services and post origination services, the Group considers the cost incurred to deliver such services, profit margin for similar arrangements, customer demand, effect of competitors on the Group’s services, and other market factors. For each type of service, the Group recognizes revenue when (or as) the entity satisfies the service/performance obligation by transferring a promised good or service (that is, an asset) to a customer. Revenues from loan facilitation are recognized at the time a loan is originated between the investor and the borrower and the principal loan balance is transferred to the borrower, at which time the loan facilitation service is considered completed. Revenues from post origination services are recognized on a straight-line basis over the term of the underlying loans as the services are provided ratably on a monthly basis. A majority of the service fee is charged to the borrowers, which is collected upfront upon at the loan inception or collected over the loan term. Investors pay service fees to the Group either at the beginning and at the end of the investment commitment period (in terms of automated investing tools) or over the terms of the loan (in terms of self-directing investing tools). In 2018, 2019 and 2020, service fees charged at the beginning or at the end of the investment commitment period or over the terms of the loans in the periods presented were calculated to be equal to an annualized interest rate ranging from 0.5% to 1.5% based on the investment amount and the investment term. Service fees charged to borrowers and investors, including the service fees charged to investors collected at the end of the investment commitment period or over the terms of the loans in the periods presented, were combined as contract price to be allocated to the two performance obligations relating to loan facilitation services and post-origination services, and recognized as revenue when the relevant services are delivered. Revenue recognized related to service fees not yet received from investors that will be collected at the end of the investment commitment period and over the commitment period are recorded as accounts receivable. All service fees are fixed and not refundable. Revenue recognized is recorded net of value added tax (“VAT”). Remaining performance obligations represent the amount of the transaction price for which service has not been performed under post-origination services. In December 2020, the Group ceased publishing information relating to new offerings of investment opportunities in fixed income products for investors on its online lending information intermediary platform. Pursuant to certain collaboration arrangements entered into by the Group and a licensed asset management company, the rights of investors in existing loans underlying the fixed income products will be transferred to the asset management company. After such transfer, the outstanding balance of loans facilitated shall become nil, and the asset management company will provide existing investors with services in relation to the return of their remaining investment in loans. Direct lending program revenue Through its direct lending program, the Group provides traffic referral services to financial institution partners, allowing the financial institution partners to gain access to borrowers who passed the Group’s risk assessment. The Group’s services provided consist of: a) Matching financial institution partners to potential qualified borrowers, and facilitating the execution of loan agreements between the parties (also referred to as “loan facilitation service”); and b) Providing repayment processing services for the financial institution partners and borrowers over the loan term, including repayment reminders and loan collection (also referred to as “post origination services”). Consistent with the revenue recognition policy under the online lending information intermediary services model, the Group has determined that it is not the legal lender or borrower in the loan origination and repayment process, but acting as an intermediary to bring the lender and the borrower together. Therefore, the Group does not record the loans receivable or payable arising from the loans facilitated between the financial institution partners and borrowers. The Group considers its customers to be both the financial institution partners and borrowers. The Group considers the loan facilitation service and post origination service as two separate performance obligations. The Group determines the total transaction price to be the service fees chargeable from the borrowers or the financial institution partners, which is the contracted price adjusted for variable consideration such as potential loan prepayment by the borrows that could reduce the total transaction price, which is estimated using the expected value approach based on historical data and current trends of prepayments of the borrowers. Then the transaction price is allocated to the loan facilitation services and post origination services using their relative standalone selling prices consistent with the guidance in Topic 606, similar to online lending information intermediary services revenue. For each type of service, the Group recognizes revenue when (or as) the entity satisfies the service/performance obligation by transferring the promised service to customers. Revenues from loan facilitation services are recognized at the time a loan is originated between the financial institution 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 origination services are recognized on a straight-line basis over the term of the underlying loans as the services are provided ratably on a monthly basis. Since April 2019, the Group has stopped charging service fees directly to the borrowers under its direct lending program. Instead, the Group started to charge service fees either directly to the institutional funding partners, or indirectly through third-party guarantee companies who provide guarantee services, or the insurance company who provided credit insurance to the institutional funding partners on their loans to the borrowers. The Group concluded this change did not alter the substance of the services it provided to borrowers and financial institution partners under the direct lending program, and therefore would not impact how revenue was recognized. In 2019, under a cooperation agreement, as amended (the “Cooperation Agreement”), the Group predominantly partnered with PICC Property and Casualty Company Limited Guangdong Branch (“PICC”) who provided the credit insurance service to institutional funding partners on the loan origination, PICC collected all of the loan facilitation service fees and remitted the Group’s portion of the service fees to the Group. The Group recorded an account receivable for the service fees confirmed and to be remitted by PICC. Other revenues Other revenues mainly include product sales revenues from online sales of goods, penalty fee for late payment, and other service revenues. The Group generates product sales revenues primarily through selling of merchandise via its online shopping platform, 9F One Mall (“online agent model”), and through selling of upscale products via third party platforms (“online direct sales model”). Under online agent model, customers can buy merchandise provided by third-party merchandise suppliers on our 9F One Mall. The Group does not control the merchandise, but rather is acting as an agent for the suppliers. Revenue is recognized for the net amount of consideration the Group is entitled to retain in exchange for the agent service. The Group commenced the operations of the online direct sales model in the first quarter of 2019 and terminated the operations of the online direct sales model in the third quarter of 2019. Under the online direct sales model, revenue is recognized on a gross basis as the Group controls the merchandise before it is transferred to the customers, which is indicated by (i) the Group is primarily responsible for fulfilling the promise to provide the specified upscale products to the customers; (ii) the Group bears inventory risk; and (iii) the Group has discretion in establishing price. Other revenues also include revenue of services such as insurance agency, securities brokerage, customer referral and government subsidy income. Cash incentives To expand market presence, the Group voluntarily provides cash incentives in the form of cash coupons to new and existing investors during its marketing activities. These coupons are not related to prior transactions, and can only be utilized in conjunction with subsequent lending activities. The cash incentives provided are accounted as a reduction of the transaction price according to ASC 606-10-32-25. Cash incentives paid to existing investors, cash incentives paid to new investors, and cash incentives recognized as a reduction of revenue for year ended December 31, 2018 was RMB23.9 million, RMB1.2 million, and RMB25.8 million, respectively. Cash incentives paid to existing investors, cash incentives paid to new investors, and cash incentives recognized as a reduction of revenue for year ended December 31, 2019 was RMB59.6 million, RMB0.8 million, and RMB57.6 million, respectively. Cash incentives paid to existing investors, cash incentives paid to new investors, and cash incentives recognized as a reduction of revenue for year ended December 31, 2020 was RMB61.7 million, RMB2.7 million, and RMB8.9 million, respectively. Value added taxes (“VAT”) The Group is subject to value added tax, or VAT, at a rate of 16% from May 1, 2018 to March 31, 2019 and 13% thereafter on sales of products, and at a rate of 6% on services rendered by the Group, less any deductible VAT the Group has already paid or borne, except for entities qualified as small-scale taxpayers at a VAT rate of 3% without any deduction. Since April 1, 2019, the Group has been subject to an additional 10% deductible VAT. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. VAT is reported as a deduction to revenue when incurred and amounted to RMB490,136, RMB611,786, and RMB136,501 for the years ended December 31, 2018, 2019 and 2020, respectively. The net VAT balance between input VAT and output VAT is recorded in the line item of accrued expenses and other liabilities on the face of balance sheet. Disaggregation of revenues The Group generates revenues primarily from loan facilitation and post-origination services provided to investors, borrowers and financial institution partners through its online lending information intermediary services and direct lending program. The Group also generates other revenues, such as penalty fees charged to borrowers for late payment, product sales revenues from online sales of goods, and other service revenues. The following table provides further disaggregation by types of revenues recognized in 2018, 2019 and 2020. Loan Post facilitation origination Other 2018 services services revenues Total RMB RMB RMB RMB Online lending platform revenue Online lending information intermediary services revenue Revolving loan products (One Card) 4,728,255 282,057 — 5,010,312 Non‑revolving loan products 186,679 85,218 — 271,897 Direct lending program revenue 45,737 164 — 45,901 Other revenue — — 228,372 228,372 Total 4,960,671 367,439 228,372 5,556,482 Loan Post facilitation origination Other 2019 services services revenues Total RMB RMB RMB RMB Online lending platform revenue Online lending information intermediary services revenue Revolving loan products (One Card) 1,698,133 269,718 — 1,967,851 Non‑revolving loan products 104,611 30,226 — 134,837 Direct lending program revenue 1,675,153 304,788 — 1,979,941 Other revenue — — 342,334 342,334 Total 3,477,897 604,732 342,334 4,424,963 Loan Post facilitation origination Other 2020 services services revenues Total RMB RMB RMB RMB Online lending platform revenue Online lending information intermediary services revenue Revolving loan products (One Card) 26,376 203,748 — 230,124 Non‑revolving loan products 84,485 202,097 — 286,582 Direct lending program revenue 66,286 453,257 — 519,543 Other revenue — — 219,756 219,756 Total 177,147 859,102 219,756 1,256,005 The Group manages its business through a comprehensive offering of financial products tailored to the needs of the investors and borrowers. These financial products are categorized by the Group as loan products, wealth management products and others. The following table illustrates the disaggregation of revenues by product offering in 2018, 2019 and 2020: December 31, December 31, December 31, 2018 2019 2020 RMB RMB RMB Loan product revenue 4,930,515 3,590,693 847,576 Wealth management product revenue 471,060 573,355 188,673 Others 154,907 260,915 219,756 Total 5,556,482 4,424,963 1,256,005 Loan products-In 2018, 2019 and 2020, loan products represented product offerings tailored to the needs of the borrowers. Loan product revenues in the above table represented the portion of the service fees that were charged to borrowers through the Group’s online lending information intermediary services, and charged from borrowers with whom the Group has stopped charging service fees since April 2019 or financial institution partners under direct lending program business. Wealth Management products-In 2018, 2019 and 2020, wealth management products represented product offerings tailored to the needs of the individual investors, including fixed income products and other wealth management products such as insurance and stock investment brokerage services, and fund investment products services. Fixed income products were offered to individual investors who desired to invest in loans facilitated through the Group’s online lending information intermediary services. Revenues from wealth management products in the above table were mainly derived from fixed income products and represented the portion of service fees that was charged to investors in the Group’s online lending information intermediary services. Revenues recognized on other wealth management products were immaterial for the periods presented. Deferred Revenue Deferred revenue consists of post origination service fees received or receivable from borrowers, investors and financial institution partners for which services have not yet been provided. Deferred revenues is recognized ratably as revenue when the post-origination services are delivered during the loan period. The balance of deferred revenue decreased from RMB788,906 as of December 31, 2019 to RMB98,668 as of December 31, 2020 due to the cessation of cooperation with PICC and our new investment programs. Revenue recognized during the years ended December 31, 2019 and 2020 that was included in the deferred revenue balance at the beginning of the year was RMB290,674 and RMB555,646, respectively. In December 2018 |
BUSINESS ACQUISITIONS_2
BUSINESS ACQUISITIONS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
BUSINESS ACQUISITIONS | ||
BUSINESS ACQUISITIONS | 3. BUSINESS ACQUISITIONS In 2019, the Group completed several business combinations to complement its existing businesses. Total cash consideration transferred (net of cash acquired) for these acquisitions amounted to RMB49,411, which was net of cash acquired of RMB12,577. For business acquisition where the Group held investments accounted for under the equity method, the Group’s existing equity interest in the entities were remeasured to a fair value of RMB35,040 with the excess over the carrying value recorded as gain recognized on remeasurement of previously held equity interest in acquiree of RMB16,272 on the consolidated statements of operations. Based on a valuation performed by the Group with the assistance of a third party valuation expert, the purchase price allocated to the fair value of assets acquired, liabilities assumed and non-controlling interest were RMB111,025, RMB10,712 and RMB15,862, respectively. The assets acquired from the acquisitions mainly include trade name of RMB6,400 and technology of RMB27,600 to be amortized over 10 years and 5 years, respectively. Goodwill recognized in these acquisitions was RMB64,954, which was primarily attributable to the synergies expected to be achieved from these acquisitions. Neither the results of operations since the acquisition dates nor the pro forma results of operations of the acquirees were presented because the effects of these business combinations, individually and in the aggregate, were not significant to the Group’s consolidated results of operations. | 3. BUSINESS ACQUISITIONS In 2019, the Group completed several business combinations to complement its existing businesses. Total cash consideration transferred (net of cash acquired) for these acquisitions amounted to RMB49,411, which was net of cash acquired of RMB12,577. For business acquisition where the Group held investments accounted for under the equity method, the Group’s existing equity interest in the entities were remeasured to a fair value of RMB35,040 with the excess over the carrying value recorded as gain recognized on remeasurement of previously held equity interest in acquiree of RMB16,272 on the consolidated statements of operations. Based on a valuation performed by the Group with the assistance of a third party valuation expert, the purchase price allocated to the fair value of assets acquired, liabilities assumed and non-controlling interest were RMB111,025, RMB10,712 and RMB15,862, respectively. The assets acquired from the acquisitions mainly include trade name of RMB6,400 and technology of RMB27,600 to be amortized over 10 years and 5 years , respectively. Goodwill recognized in these acquisitions was RMB64,954, which was primarily attributable to the synergies expected to be achieved from these acquisitions. Neither the results of operations since the acquisition dates nor the pro forma results of operations of the acquirees were presented because the effects of these business combinations, individually and in the aggregate, were not significant to the Group’s consolidated results of operations. |
LOAN RECEIVABLES, NET_2
LOAN RECEIVABLES, NET | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
LOAN RECEIVABLES, NET | ||
LOAN RECEIVABLES, NET | 4 . LOAN RECEIVABLES, NET December 31, June 30, 2020 2021 Loan receivables 596,747 258,596 Less: Allowance for doubtful accounts (320,944) (56,466) Less: Adpotion of new accounting standard in the last fiscal year (8,420) — Total 267,383 202,130 The Group entered into several loan agreements with certain third-party post loan service companies. As of June 30, 2021, the Group had RMB258.6 million loan receivable outstanding, of which, RMB170 million of loans were guaranteed by Zhongji Wealth Guarantee Co., Ltd., a third-party guarantor, with terms ranged from 11 months to 12 months and an interest rate of 6% per annum, RMB50.2 million of loans are unsecured and interest rate of 4% or 10%,with terms of 12 months. The remaining RMB34.4 million of loans are unsecured and interest free with a term of 21 months. As of November 5, 2021, RMB22,000 was repaid to the Group. As of June 30, 2021, the Group recorded RMB56.5 million allowance for uncollectable for other loan receivables, respectively. Interest-earning loan receivables are on non-accrual status if loans are past due for more than 90 days. As of December 31, 2020 and June 30,2021, RMB29,500 and RMB16,500 loan receivables were on non-accrual status. The following table sets forth the aging of loans as of December 31,2020and June 30,2021, respectively: 1 - 89 days 90 days or Total past past due more past due due Current Total loans December 31, 2020 — 29,500 29,500 567,247 596,747 June 30, 2021 — 16,500 16,500 242,096 258,596 | 4. LOAN RECEIVABLES, NET December 31, December 31, 2019 2020 Loan receivables 1,394,072 596,747 Less: Allowance for doubtful accounts (615,592) (320,944) Less: Adoption of new accounting standard — (8,420) Total 778,480 267,383 In April 2018, the Group entered into several loan agreements with Zhongguo Factoring (Shenzhen) Co., Ltd. (“Zhongguo Factoring”), a third-party borrower, with total loans amounting to RMB1,431.8 million. The balance of the loans to Zhongguo Factoring amounted to RMB541.8 million and nil as of December 31, 2019 and 2020, respectively. The loans bear interest rates ranging from 4.35% to 9% per annum. The terms ranged from 1 year to 2.5 years. On November 6, 2019, upon maturity of a loan of RMB427.5 million, the Group negotiated with Zhongguo Factoring and extended the maturity date of this loan to November 5, 2020. The Group determined that Zhongguo Factoring had encountered going concern issues due to their working capital deficiencies and poor operating results. As a result, the Group fully impaired the loan receivable due from Zhongguo Factoring during the year ended December 31, 2019. Allowance for loan losses recorded for these loan receivables is RMB541.8 million as of December 31, 2019. RMB7.4 million was repaid to the Group during the year ended December 31,2020, The Group reversed the allowance accordingly.The Group write off the left allowance during the year ended December 31,2020. Allowance for loan losses recorded for these loan receivables is nil as of December 31, 2020. The Group entered into several loan agreements with certain third-party post loan service companies. As of December 31, 2020, the Group had RMB596.7 million loan receivable outstanding, of which, RMB170 million of loans were guaranteed by Zhongji Wealth Guarantee Co., Ltd., a third-party guarantor, with terms ranged from 11 months to 12 months and an interest rate of 6% per annum, RMB66.2 million of loans are unsecured and interest rate of 4% or 10%,with terms of 12 months. The remaining RMB360.54 million of loans are unsecured and interest free with a term of 21 months. As of May 13, 2021, RMB10.8 million was repaid to the Group. As of December 31, 2019 and 2020, the Group recorded RMB73.8 million and RMB320.9 allowance for uncollectable for other loan receivables, respectively. Interest-earning loan receivables are on non-accrual status if loans are past due for more than 90 days. As of December 31, 2019 and 2020, RMB21,338 and RMB29,500 loan receivables were on non-accrual status. The following table sets forth the aging of loans as of December 31, 2019 and 2020, respectively: 1 - 89 days 90 days or Total past past due more past due due Current Total loans December 31, 2019 52,339 21,338 73,677 1,320,395 1,394,072 December 31, 2020 — 29,500 29,500 567,247 596,747 |
PREPAID EXPENSE AND OTHER ASS_4
PREPAID EXPENSE AND OTHER ASSETS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
PREPAID EXPENSE AND OTHER ASSETS | ||
PREPAID EXPENSE AND OTHER ASSETS | 5 . PREPAID EXPENSE AND OTHER ASSETS December 31, June 30, 2020 2021 Deposits(i) 91,258 81,068 Advances to suppliers 10,607 124,365 Prepaid taxes 338,450 320,408 Prepaid service fee 45,201 11,015 Prepaid investment (ii) 270,996 304,996 Others 37,046 40,313 Less: Adoption of new accounting standard (466) (394) Total 793,092 881,771 (i) Deposits mainly include rent deposits and deposits to third-party vendors. (ii) Prepaid investment mainly composed of the prepayment to acquire equity interests in Shanghai Xinzhen Financial Information Consulting Co., Ltd, Jiangxi Financial Development Group Co. Ltd and Guobing Sports Development (Beijing) Co., LTD as of June 30,2021. | 5. December 31, December 31, 2019 2020 Deposits (i) 100,278 91,258 Advances to suppliers 37,118 10,607 Prepaid taxes 294,487 338,450 Prepaid service fee 17,268 45,201 Prepaid investment (ii) 632,096 270,996 Others 56,540 37,046 Less: Adoption of new accounting standard — (466) Total 1,137,787 793,092 (i) Deposits mainly include rent deposits and deposits to third-party vendors. (ii) Prepaid investment mainly composed of the prepayment to acquire equity interests in Hubei Consumer Finance Company, Shanghai Xinzhen Financial Information Consulting Co., Ltd and Jiangxi Financial Development Group Co. Ltd as of December 31, 2019. The Group obtained the approval of changes of control from Hubei Consumer Finance Company and local regulatory authorities during the year ended December 31,2020. As of December 31, 2020,the prepaid investment to Shanghai Xinzhen Financial Information Consulting Co., Ltd and Jiangxi Financial Development Group Co. Ltd are still subject to the approval of changes of control from the investees or local regulatory authorities . |
FAIR VALUE OF ASSETS AND LIAB_4
FAIR VALUE OF ASSETS AND LIABILITIES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
FAIR VALUE OF ASSETS AND LIABILITIES | ||
FAIR VALUE OF ASSETS AND LIABILITIES | 6. FAIR VALUE OF ASSETS AND LIABILITIES For a description of the fair value hierarchy and the Group’s fair value methodologies, see “Note 2—Summary of Significant Accounting Policies.” Financial instruments recorded at fair value Assets and Liabilities Recorded at Fair Value The Group does not have assets or liabilities measured at fair value on a non-recurring basis. The following tables present the fair value hierarchy for assets and liabilities measured at fair value on a recurring basis subsequent to initial recognition: Balance at June 30,2021 Level 1 Level 2 Level 3 Fair Value RMB RMB RMB RMB Assets Investment in marketable securities 206,272 — — — Total Assets 206,272 — — — Financial Instruments Not Recorded at Fair Value Financial instruments, including cash and cash equivalents, restricted cash, term deposits, accounts receivable, other receivables, loan receivables, prepaid expenses and other assets, accrued expenses and other liabilities and amounts due from/to related parties are not recorded at fair value. The fair values of these financial instruments, other than loan receivables, are approximate their carrying value reported in the consolidated balance sheets due to the short term nature of these assets and liabilities. The fair value of loan receivables is disclosed in Note 4. | 5. FAIR VALUE OF ASSETS AND LIABILITIES For a description of the fair value hierarchy and the Group’s fair value methodologies, see “Note 2 - Summary of Significant Accounting Policies.” Financial instruments recorded at fair value Assets and Liabilities Recorded at Fair Value The Group does not have assets or liabilities measured at fair value on a non-recurring basis. The following tables present the fair value hierarchy for assets and liabilities measured at fair value on a recurring basis subsequent to initial recognition: Balance at December 31, 2019 Level 1 Level 2 Level 3 Fair Value RMB RMB RMB RMB Assets Available‑for‑sale investment — — 10,443 10,443 Total Assets — — 10,443 10,443 The Group did not transfer any assets or liabilities in or out of level 3 during the years ended December 31, 2019 and 2020. The Group purchased a convertible note receivable from a third-party private company amounting to RMB10.4 million which is classified as available for sale investment in the fourth quarter of 2019, of which the fair value approximates its purchase price. During the year ended December 31, 2020, the amount was repaid in full. There were no additional investments classified as available-for-for sale during the year ended December 31, 2020. Financial Instruments Not Recorded at Fair Value Financial instruments, including cash and cash equivalents, restricted cash, term deposits, accounts receivable, other receivables, loan receivables, prepaid expenses and other assets, accrued expenses and other liabilities and amounts due from/to related parties are not recorded at fair value. The fair values of these financial instruments, other than loan receivables, are approximate their carrying value reported in the consolidated balance sheets due to the short term nature of these assets and liabilities. The fair value of loan receivables is disclosed in Note 4. |
LONG-TERM INVESTMENTS_2
LONG-TERM INVESTMENTS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
LONG-TERM INVESTMENTS | ||
LONG-TERM INVESTMENTS | 7 . LONG-TERM INVESTMENTS Equity securities without readily Equity Held-to- determinable fair method maturity value investments investment Total RMB RMB RMB RMB Balance at December 31, 2020 647,702 57,491 33,079 738,272 Additions 34,566 — — 34,566 Disposal (23,887) — — (23,887) Share of (loss) in equity method investments — (7,629) — (7,629) Impairment charges (2,056) — — (2,056) Impact of exchange rate 470 (740) — (270) Balance at June 30, 2021 656,795 49,122 33,079 738,996 Equity securities without readily determinable fair value The following table sets forth the Group’s equity securities without readily determinable fair value: December 31, June 30, 2020 2021 RMB RMB Shanghai Xinzheng Financial Information Consulting Co., Ltd. (i) 129,786 129,786 EZhou Rural Commercial Bank 40,000 40,000 BitPay, Inc. (Delaware)(ii) 26,100 24,783 GoopalGroup (iii) 17,748 17,562 Hubei Consumption Financial Company (“Hubei Consumption”) (iv) 361,100 361,100 Zhuhai Yuanxin investment partnership (limited partnership(“ZhuhaiYuanxin”)(v) 15,000 15,000 Ningbo Weilie investment management partnership (limited partnership)(“NingboWeilie”)(vi) 20,000 20,000 PT.TIRTA FinaNCE(INA) (vii) — 19,467 Others 37,968 29,097 Total 647,702 656,795 (i) In September 2018, the Group purchased a 15% equity interest of Shanghai Xinzheng Financial Information Consulting Co., Ltd. for a total consideration of RMB129,786. The Group held a 15% equity interest as of December 31,2020 and June 30,2021 respectively. No impairment existed at December 31,2020 and June 30, 2021 and there were no observable price changes for six months ended June 30,2021. (ii) In March 2018, the Group acquired a 1.11% of equity interest in BitPay, Inc. (Delaware) for a cash consideration of US$4,000. The Group held 1.11% equity interest as of December 31, 2020 and June 30,2021. No impairment existed at December 31, 2020 and June 30,2021, and there were no observable price changes for six months ended June 30,2021. (iii) In January 2018, the Group purchased a 1.94% equity interest in Goopal Group for a cash consideration of US$2,720. The Group held 1.94% equity interest as of December 31, 2020 and June 30,2021. No impairment existed at December 31, 2020 and June 30,2021, and there were no observable price changes for six months ended June 30,2021. (iv) In December 2019, the Group paid RMB361,100 in cash in exchange of 24.47% (v) In November 2020, the Group paid RMB 15,000 in cash in exchange of 33.33% equity interest in Zhuhai Yuanxin. No impairment existed at December 31, 2020 and June 30,2021, and there were no observable price changes for six months ended June 30,2021. (vi) In December 2017, the Group purchased a 8.50% equity interest in Ningbo Weilie for a total cash consideration of RMB 20,000,000.No impairment existed at December 31, 2020 and June 30,2021, and there were no observable price changes for six months ended June 30,2021. (vii) In June 2021, the Group account for a 40% equity interest in PT.TIRTA FinaNCE(INA),. No impairment existed at June 30,2021, and there were no observable price changes for six months ended June 30,2021. Equity method investments December 31, June 30, 2020 2021 RMB RMB CSJ Golden Bull (Beijing) Investment Consulting Co., Ltd (“CSJ Golden Bull”)(i) 22,135 21,143 Others 35,356 27,979 Total 57,491 49,122 (i) In September 2017, the Group purchased an equity interest of CSJ Golden Bull for a total cash consideration of RMB40,900. The Group held a 25% equity interest as of December 31,2020 and June 30,2021. Held-to-maturity investments In 2019, the Group purchased a principal-guaranteed debt investment in the form of a beneficiary interest in a trust for a cash consideration of RMB15,200, which has stated maturity within one year.The Group extend this investment for one more year in 2020. In 2020, the Group purchased another principal-guaranteed debt investment in the form of a beneficiary interest in a trust for a cash consideration of RMB19,100, which has stated maturity within one year. As of December 31,2020,the Group recorded an impairment charge of RMB1,221 for its held-to-maturity investments. There’s no impairment loss during the six months ended June 30,2021. | 6. LONG-TERM INVESTMENTS Equity securities without readily Equity Available for Held-to- determinable fair method sales maturity value investments investment investment Total RMB RMB RMB RMB RMB Balance at December 31, 2018 699,747 219,935 34,476 — 954,158 Additions 5,000 161,951 10,533 15,200 192,684 Disposal (8,750) (104,149) (35,739) — (148,638) Share of (loss) in equity method investments — (29,455) — — (29,455) Impairment charges (154,898) (22,830) — — (177,728) Unrealized losses recorded in accumulated other comprehensive loss — — (99) — (99) Impact of exchange rate 2,079 139 1,272 — 3,490 Gain recognized on remeasurement of previously held equity interest in acquire (Note 3) — 16,272 — — 16,272 Business combinations achieved in stages (Note 3) — (35,040) — — (35,040) Balance at December 31, 2019 543,178 206,823 10,443 15,200 775,644 Additions 396,549 53,929 19,100 469,578 Disposal (5,000) — (10,443) — (15,443) Share of (loss) in equity method investments — (21,317) — — (21,317) Impairment charges (282,076) (179,193) — (1,221) (462,490) Impact of exchange rate (4,949) (2,751) — — (7,700) Balance at December 31, 2020 647,702 57,491 — 33,079 738,272 Equity securities without readily determinable fair value The following table sets forth the Group’s equity securities without readily determinable fair value: December 31, December 31, 2019 2020 RMB RMB Nanjing Lefang Intelligent Life Technology Development Co., Ltd (“Nanjing Lefang”) (i) 181,368 — Shanghai Xinzheng financial information consulting Co., Ltd. (ii) 129,786 129,786 Abakus Ltd. (Cayman) (“Abskus”) (iii) 98,709 — EZhou Rural Commercial Bank 40,000 40,000 BitPay, Inc. (Delaware) (iv) 27,847 26,100 GoopalGroup (v) 18,936 17,748 Hubei Consumption Financial Company (“Hubei Consumption”) (vi) — 361,100 Zhuhai Yuanxin investment partnership (limited partnership(“ZhuhaiYuanxin") (vii) — 15,000 Ningbo Weilie investment management partnership(limited partnership) (i) In March 2018, the Group purchase an additional 21.28% equity interest of Nanjing Lefang, formerly known as Nanjing Banghang Information Consulting Limited, for a cash consideration of RMB 250,000 . The Group held a 30.53% equity interest as of December 31, 2019 and 2020. The investments contain various right, protection, and a liquidation preference. The investment is accounted for under the equity securities without readily determinable fair value of accounting as it is not considered to be in-substance common stock. There were no observable price changes for the years ended December 31, 2018, 2019, and 2020. Due to continued decrease of operating result of Nanjing Lefang, the Group conducted an impairment assessment and recorded an impairment loss of RMB 99,868 and RMB 181,368 for the years ended December 31, 2019 and 2020, respectively. In determining the fair value of the investment in Nanjing Lefang, the Group applied the market approach using unobservable inputs, such as a lack of marketability discount and probability weighting for each scenario including liquidation and an initial public offering. (ii) In September 2018, the Group purchased a 15% equity interest of Shanghai Xinzheng Financial Information Consulting Co., Ltd. for a total consideration of RMB 129,786 . The Group held a 15% equity interest as of December 31, 2019 and 2020. No impairment existed at December 31, 2019 and 2020 and there were no observable price changes for the years ended December 31, 2018, 2019 and 2020. (iii) In December 2014, the Group subscribed to 3,579,000 ordinary shares of Abakus (formerly known as Wecash Holdings Ltd.) for a cash consideration of RMB 6,500 . The Group held 19.30% , 18.97%, and 18.97 % equity interest as of December 31, 2018, 2019 and 2020, respectively. The Group recognized its share of profit in Abakus of RMB 2,261 for the year ended December 31, 2018. In February 2018, due to issuance of equity interests to new shareholders, the Group’s equity interest in Abakus was diluted from 22.17% to 19.86% and lost its ability to exercise significance influence. The investment in Abakus was accounted for under equity method prior to the dilution in the Group’s equity interest. The investment is accounted for under the equity securities without readily determinable fair value of accounting upon the cessation of the Group’s significant influence in February 2018. In July 2019, Abakus agrees to repurchase 75,796 ordinary shares held by the Group for a cash consideration of RMB 14,807 . A disposal gain of RMB 6,057 was recognized, which is the difference between the consideration of RMB 14,807 and the carrying value in Abakus, amounted to RMB 8,750 . Due to shut down of Abskus, the Group fully imaparied the investment for the years ended December 31 2020. (iv) In March 2018, the Group acquired a 1.11% of equity interest in BitPay, Inc. (Delaware) for a cash consideration of US$4,000. The Group held 1.11% equity interest as of December 31, 2019, and 2020. No impairment existed at December 31, 2018, 2019, and 2020, and there were no observable price changes for the years ended December 31, 2018, 2019, and 2020. (v) In January 2018, the Group purchased a 1.94% equity interest in Goopal Group for a cash consideration of US$2,720. The Group held 1.94% equity interest as of December 31, 2019, and 2020. No impairment existed at December 31, 2018, 2019, and 2020, and there were no observable price changes for the years ended December 31, 2018, 2019, and 2020. (vi) In December 2019, the Group paid RMB361,100 in cash in exchange of 24.47% equity interest in Hubei Consumer. No impairment existed at December 31, 2020, and there were no observable price changes for the year ended December 31, 2020. (vii) In November 2020, the Group paid RMB 15,000 in cash in exchange of 33.33% equity interest in Zhuhai Yuanxin. No impairment existed at December 31, 2020, and there were no observable price changes for the year ended December 31, 2020. (viii) In December 2017, the Group purchased a 8.50 % equity interest in Ningbo Weilie for a total cash consideration of RMB 20,000,000 . No impairment existed at December 31, 2020, and there were no observable price changes for the year ended December 31, 2020. (ix) Other investments represent several insignificant investments as of December 31, 2018, 2019 and 2020. Impairment losses of RMB 23,140 , RMB 20,724 and nil were reported in consolidated statements of operations for the years ended December 31, 2018, 2019 and 2020 related to Shanghai Wujiu Information Technology Company Limited (“Shanghai Wujiu”), Ofo International Limited (“OFO”), and Orange Island Technology Inc.(“Orange”). During the year ended in December 31, 2018, the Group determined that Shanghai Wujiu and OFO had encountered going concern issues due to their working capital deficiencies and poor operating results. As a result, the Group fully impaired the investments during the year ended December 31, 2018. During the year ended in December 31, 2019, the Group determined that Orange had encountered going concern issues and was in the process of liquidation. Thus, the Group fully impaired the investment during the year ended December 31, 2019. Equity method investments December 31, December 31, 2019 2020 RMB RMB CSJ Golden Bull (Beijing) Investment Consulting Co., Ltd (“CSJ Golden Bull”) (i) 26,675 22,135 Suzhou Qingyu Technology Limited (“Suzhou Qingyu”) (ii) 19,092 — Cornerstone Unicorn No.3 Private Equity Investment Fund (iii) 132,859 — Others 28,197 35,356 Total 206,823 57,491 (i) In September 2017, the Group purchased an equity interest of CSJ Golden Bull for a total cash consideration of RMB 40,900 . The Group held a 25% equity interest as of December 31, 2019 and 2020, and recognized its share of loss of RMB 6,181 , RMB 6,764 , and RMB 4,540 for the years ended December 31, 2018, 2019, and 2020, respectively. (ii) In July 2017, the Group purchased a 20% equity interest in Suzhou Qingyu for a total consideration of RMB 10,000 . The Group’s shareholding percentage decreased from 20% to 9.88% due to the issuance of equity interests to new shareholder. In June 2018, the Group purchased 3.15% equity interests of Suzhou Qingyu for a total consideration of RMB 20,000 . The Group held a 13.03% equity interest as of December 31, 2019 and have ability to exercise significance influence. The Group recognized its share of loss of RMB 5,083 , RMB 4,615 and RMB 4,648 for the years ended December 31, 2018, 2019 and 2020. Suzhou Qingyu had encountered going concern issues. Thus, the Group fully impaired the investment during the year ended December 31, 2020. (iii) In October 2019, the Group purchased 141,460,000 fund shares of Cornerstone Unicorn No.3 Private Equity Investment Fund for a total consideration of RMB 141,460 . The total shares of the fund is 152,460,000 and the fund manager shall make investment decisions independently. The fund manager can be replaced with the consent of all investors. The Group held 92% share interest as of December 31, 2019 and has ability to exercise significance influence. In December 2020,Cornerstone Unicorn and Cornerstone Management had encountered going concern issues. Thus, the Group fully impaired the investment during the year ended December 31, 2020. Held-to-maturity investments During the year ended December 31, 2019, the Group purchased a principal-guaranteed debt investment in the form of a beneficiary interest in a trust for a cash consideration of RMB15,200, which has stated maturity within one year. No impairment loss existed at December 31, 2019. During the year ended December 31, 2020, the Group extend this investment for one more year. During the year ended December 31, 2020, the Group purchased a principal-guaranteed debt investment in the form of a beneficiary interest in a trust for a cash consideration of RMB19,100, which has stated maturity within one year. During the year ended December 31, 2020, the Group recorded an impairment charge of RMB1,221 for its held-to-maturity investments due to the adoption of new accounting standards. |
PROPERTY, EQUIPMENT AND SOFTW_4
PROPERTY, EQUIPMENT AND SOFTWARE, NET | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
PROPERTY, EQUIPMENT AND SOFTWARE, NET | ||
PROPERTY, EQUIPMENT AND SOFTWARE, NET | 8. PROPERTY, EQUIPMENT AND SOFTWARE, NET December 31, June 30, 2020 2021 RMB RMB Office building 19,470 46,376 Computer and electronic equipment 57,856 59,008 Furniture and office equipment 10,065 9,455 Leasehold improvements 30,069 2,476 Software 46,008 51,435 Total property and equipment 163,468 168,750 Accumulated depreciation and amortization (79,147) (93,092) Impairment loss for technology of discontinued online lending information services (20,925) (23,235) Property, equipment, net 63,396 52,423 Depreciation and amortization expense on property, equipment and software for the six months ended June 30, 2020 and 2021 was RMB 10,032 and RMB 13,945, respectively. | 8. PROPERTY, EQUIPMENT AND SOFTWARE, NET December 31, December 31, 2019 2020 RMB RMB Office building 19,470 19,470 Computer and electronic equipment 62,748 57,856 Furniture and office equipment 14,039 10,065 Leasehold improvements 33,050 30,069 Software 42,840 46,008 Total property and equipment 172,147 163,468 Accumulated depreciation and amortization (61,771) (79,147) Impairment loss for technology of discontinued online lending information services — (20,925) Property, equipment, net 110,376 63,396 Depreciation and amortization expense on property, equipment and software for the years ended December 31, 2018, 2019 and 2020 was RMB16,123, RMB28,071 and RMB14,500 respectively. |
INTANGIBLE ASSETS, NET_2
INTANGIBLE ASSETS, NET | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
INTANGIBLE ASSETS, NET | ||
INTANGIBLE ASSETS, NET | 9 . INTANGIBLE ASSETS, NET December 31, June 30, 2020 2021 RMB RMB Brokerage licenses 51,880 51,553 Trade Name 6,400 6,400 Technology 27,600 27,600 Total Intangible assets 85,880 85,553 Accumulated amortization (24,247) (27,988) Impairment loss of technology with discontinued online lending information intermediaries (17,220) (17,220) Intangible assets, net 44,413 40,345 The amortization periods range from 2.6 years to 20 years. Amortization expense on intangible assets for the six months ended June 30,2020 and 2021were RMB5,693 and RMB3,741, respectively. As of June 30, 2021, the Group expects to record amortization expenses related to intangible assets RMB3,465, RMB5,557, RMB5,557, RMB3,954 and RMB3,379 for the next five years, respectively, and RMB 18,433 thereafter. | 9. INTANGIBLE ASSETS, NET December 31, December 31, 2019 2020 RMB RMB Brokerage licenses 54,006 51,880 Trade Name 6,400 6,400 Technology 27,600 27,600 Total Intangible assets 88,006 85,880 Accumulated amortization (14,530) (24,247) Impairment loss of technology with discontinued online lending information intermediaries — (17,220) Intangible assets, net 73,476 44,413 The amortization periods range from 2.6 years to 20 years. Amortization expense on intangible assets for the years ended December 31, 2018, 2019 and 2020 were RMB2,640, RMB9,398, and RMB9,717 respectively. As of December 31, 2020, the Group expects to record amortization expenses related to intangible assets RMB7,281, RMB5,599, RMB5,599, RMB3,971 and RMB 3,397 for the next five years, respectively, and RMB18,568 thereafter. |
ACCRUED EXPENSES AND OTHER LI_4
ACCRUED EXPENSES AND OTHER LIABILITIES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
ACCRUED EXPENSES AND OTHER LIABILITIES | ||
ACCRUED EXPENSES AND OTHER LIABILITIES | 10. ACCRUED EXPENSES AND OTHER LIABILITIES December 31, June 30, 2020 2021 RMB Accrued advertising and marketing fee 105,638 98,888 Payable related to services fee and others 152,396 166,154 Amounts due to customers for the segregated bank balances held on their behalf 405,719 474,969 Deposit 2,913 2,486 Value added tax and surcharges 16,494 6,590 Others 43,526 37,126 Total accrued expenses and other current liabilities 726,686 786,213 | 10. ACCRUED EXPENSES AND OTHER LIABILITIES December 31, December 31, 2019 2020 RMB RMB Accrued advertising and marketing fee 715,218 105,638 Payable related to services fee and others 248,816 152,396 Amounts due to customers for the segregated bank balances held on their behalf 125,437 405,719 Deposit 15,995 2,913 Value added tax and surcharges 42,699 16,494 Others 80,945 43,526 Total accrued expenses and other current liabilities 1,229,110 726,686 |
RELATED PARTY BALANCES AND TR_4
RELATED PARTY BALANCES AND TRANSACTIONS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
RELATED PARTY BALANCES AND TRANSACTIONS | ||
RELATED PARTY BALANCES AND TRANSACTIONS | 11. RELATED PARTY BALANCES AND TRANSACTIONS Below summarizes the major related parties and their relationships with the Group, and the nature of their services provided to/by the Group: Name of related parties Relationship with the Group Major transaction with the Group Beijing Jiufu Weiban Technology Limited (“9F Weiban”) Equity method investee (until January 2019) Consulting services and related party loans Beijing WeCash Qiyi Technology Limited (“WeCash Qiyi”) Equity method investee (until February 2018) Borrower acquisition and referral services Huoerguosi Wukong Digital Technology Limited (“Huoerguosi”) Entity controlled by Sun, Lei (until November 2018) Advertising services WeCash Xiangshan Information Technology Limited (“WeCash Xiangshan”) Subsidiary of equity method investee Credit inquiry services Shenzhen Boya Equity method investee (until May 2019) Borrower acquisition and referral services Kashi Boya Chengxin Internet Technology Limited (“Kashi Boya”) Subsidiary of equity method investee (until May 2019) Borrower acquisition and referral services Shenzhen Lingxian Equity method investee (until December 2019) Prepayment for merchandise Shanghai Jiutai Financial Information Services Limited (“Shanghai Jiutai”) Entity controlled by Liu, Lei Related party loan CSJ Golden Bull Equity method investee Investors acquisition, referral services, and related party loan Beijing Shunwei Wealth Technology Limited (“Beijing Shunwei”) Equity method investee (until June 2019) Borrower acquisition and referral services Beijing Jiujia Wealth Management Limited (“Beijing Jiujia”) Equity method investee (until January 2018) Investors acquisition and referral services and related party loan Yoquant Equity method investee (until January 2019) Consulting services Zhejiang Lingchuang Food Limited Subsidiary of equity method investee (until December 2019) Deposit Qu, Jiachun Principal shareholder of the Group Related party loan Ren, Yifan Director of the Group Related party loan Name of related parties Relationship with the Group Major transaction with the Group Liu, Lei President Related party loan Zhuhai Hengqin Flash Cloud Payment Information Technolgy Limited (“Zhuhai Hengqin Payment”) Entity controlled by Sun, Lei Payment processing service Huoerguosi Flash Cloud Payment Information Technology Limited (“Huoerguosi Payment”) Entity controlled by Sun, Lei Payment processing service Nanjing Lefang Investee with significant influence Borrower acquisition and referral services purchased by the Group, consulting service provided to Nanjing Lefang by the Group, and related party loan Shanghai Qiuzhi Information Technology Limited (“Shanghai Qiuzhi”) Equity method investee (from May 2019) Borrower acquisition and referral services Beijing Jiuzao Technology Limited(“Beijing Jiuzao”) Entity controlled by Sun, Lei (from December 2019) Borrower acquisition and referral services Hangzhou Shuyun Gongjin Technology Limited (“Hangzhou Shuyun”) Entity controlled by Sun, Lei Credit inquiry services Chen, Lixing Vice President Related party loan Nine F Capital Limited (“Nine F”) Entity owned by Sun, Lei Related party loan Lin, Yanjun Chief Financial Officer of the Group Related party loan Sun, Lei Chief Executive Officer of the Group Related party loan During the six months ended June 30, 2021, nil service were provided by or to the related parties. Details of related party balances as of December 31, 2020 and June 30,2021 are as follows: (1) Amounts due to related parties December 31, June 30, 2020 2021 RMB RMB Zhuhai Hengqin Payment 4,731 4,731 Nanjing Lefang 18,834 18,834 Hangzhou Shuyun 18 18 Beijing Jiuzao 182 — Niche Global Fintech Corporation Limited 1,524 7 Total 25,289 23,590 | 11. RELATED PARTY BALANCES AND TRANSACTIONS The Group accounts for related party transactions based on various services agreements. Below summarizes the major related parties and their relationships with the Group, and the nature of their services provided to/by the Group: Name of related parties Relationship with the Group Major transaction with the Group Beijing Jiufu Weiban Technology Limited (“9F Weiban”) Equity method investee (until January 2019) Consulting services and related party loans Beijing WeCash Qiyi Technology Limited (“WeCash Qiyi”) Equity method investee (until February 2018) Borrower acquisition and referral services Huoerguosi Wukong Digital Technology Limited (“Huoerguosi”) Entity controlled by Sun, Lei (until November 2018) Advertising services WeCash Xiangshan Information Technology Limited (“WeCash Xiangshan”) Subsidiary of equity method investee Credit inquiry services Shenzhen Boya Equity method investee (until May 2019) Borrower acquisition and referral services Kashi Boya Chengxin Internet Technology Limited (“Kashi Boya”) Subsidiary of equity method investee (until May 2019) Borrower acquisition and referral services Shenzhen Lingxian Equity method investee (until December 2019) Prepayment for merchandise Shanghai Jiutai Financial Information Services Limited (“Shanghai Jiutai”) Entity controlled by Liu, Lei Related party loan CSJ Golden Bull Equity method investee Investors acquisition, referral services, and related party loan Beijing Shunwei Wealth Technology Limited (“Beijing Shunwei”) Equity method investee (until June 2019) Borrower acquisition and referral services Beijing Jiujia Wealth Management Limited (“Beijing Jiujia”) Equity method investee (until January 2018) Investors acquisition and referral services and related party loan Yoquant Equity method investee (until January 2019) Consulting services Zhejiang Lingchuang Food Limited Subsidiary of equity method investee (until December 2019) Deposit Qu, Jiachun Principal shareholder of the Group Related party loan Ren, Yifan Director of the Group Related party loan Liu, Lei President Related party loan Zhuhai Hengqin Flash Cloud Payment Information Technolgy Limited (“Zhuhai Hengqin Payment”) Entity controlled by Sun, Lei Payment processing service Huoerguosi Flash Cloud Payment Information Technology Limited (“Huoerguosi Payment”) Entity controlled by Sun, Lei Payment processing service Nanjing Lefang Investee with significant influence Borrower acquisition and referral services purchased by the Group, consulting service provided to Nanjing Lefang by the Group, and related party loan Shanghai Qiuzhi Information Technology Limited (“Shanghai Qiuzhi”) Equity method investee (from May 2019) Borrower acquisition and referral services Beijing Jiuzao Technology Limited(“Beijing Jiuzao”) Entity controlled by Sun, Lei (from December 2019) Borrower acquisition and referral services Hangzhou Shuyun Gongjin Technology Limited (“Hangzhou Shuyun”) Entity controlled by Sun, Lei Credit inquiry services Chen, Lixing Vice President Related party loan Nine F Capital Limited (“Nine F”) Entity owned by Sun, Lei Related party loan Lin, Yanjun Chief Financial Officer of the Group Related party loan Sun, Lei Chief Executive Officer of the Group Related party loan Details of related party balances and transactions as of and for the years ended December 31, 2018, 2019 and 2020 are as follows: (1) Services provided by related parties Year ended Year ended Year ended December 31, December 31, December 31, 2018 2019 2020 RMB RMB RMB Investors and borrower acquisition and referral services: Beijing Jiujia 9,965 — — Beijing Shunwei 5,133 1,221 — Shenzhen Boya 9,781 4,696 — Beijing Jiuzao — 7,257 852 Nanjing Lefang 12,890 29,476 — Shanghai Qiuzhi — 120 49 Subtotal 37,769 42,770 901 Credit inquiry services: WeCash Xiangshan 427 — — Hangzhou Shuyun — 5,925 358 Subtotal 427 5,925 358 Payment processing service: Zhuhai Hengqin Payment 17,808 9,175 — Huoerguosi Payment 20,504 — — Subtotal 38,312 9,175 — Others 261 20 — Total 76,769 57,890 1,259 (2) Services provided to related parties Year ended Year ended Year ended December 31, December 31, December 31, 2018 2019 2020 RMB RMB RMB Beijing Shunwei 3,941 — — Nanjing Lefang 26,386 1,994 — Shanghai Qiuzhi — 99 — Shenzhen Boya — 6 — Kashi Boya 4,495 — — Others 179 — — Total 35,001 2,099 — (3) Amounts due from related parties December 31, December 31, 2019 2020 RMB RMB Nine F (i) — — Beijing Shunwei — — 9F Weiban — — Lin, Yanjun — — Chen, Lixing — — Nanjing Lefang 50,000 — Shenzhen Lingxian — — Sun Lei — — Total 50,000 — (i) On April 20, 2018, the Company extended a loan to Nine F of US $20 million with term of 3 years and an interest rate at the US dollar deposit rate for the same period as published by Bank of China. The purpose of the loan is to finance the purchase by Lei Sun of the ordinary shares of 9F Inc. from Yifan Ren, one of the Founders of the Company. The loan was fully repaid in August 2019. (4) Amounts due to related parties December 31, December 31, 2019 2020 RMB RMB Zhuhai Hengqin Payment 3,125 4,731 Huoerguosi Payment — — Qu, Jiachun — — Ren, Yifan — — Zhejiang Lingchuang Food Limited — — Nanjing Lefang 18,474 18,834 Beijing Shunwei — — Shenzhen Boya — — Hangzhou Shuyun 883 18 Beijing Jiuzao 7,300 182 Shanghai Qiuzhi 120 — Niche Global Fintech Corporation Limited — 1,524 Total 29,902 25,289 |
INCOME TAXES_2
INCOME TAXES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
INCOME TAXES | ||
INCOME TAXES | 12. INCOME TAXES 9F Inc. is a company incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, it is not subject to tax on either income or capital gain. According to the HK regulations, HK entities are subject to a two-tiered income tax rate for taxable income earned in Hong Kong with effect from April 1, 2018. The first HK$2 million of profits earned by HK entity will be taxed at 8.25%, while the remaining profits will continue to be taxed at the existing 16.5% tax rate. In addition, to avoid abuse of the two-tiered tax regime, each group of connected entities can nominate only one entity to benefit from the two-tiered tax rate. Under the PRC Enterprise Income Tax Law (the “EIT Law”), the Group’s subsidiaries domiciled in the PRC are subject to 25% statutory rate unless they are qualified for preferential income tax rate status in accordance with the EIT Law. Certain of the Group’s PRC subsidiaries and VIEs enjoy a preferential income tax rate of 15% or 20% under the EIT Law. A “high and new technology enterprise” is entitled to a favorable income tax rate of 15% and such qualification is reassessed by relevant governmental authorities every three years. In 2018, Yisi Hudong(Beijing)Technology Co.,Ltd. (“Yisi Hudong”), a subsidiary of Zhuhai Jiufu Xiaojin, was qualified as a “high and new technology enterprise” and thus enjoyed a preferential income tax rate of 15% for 2021. They would enjoy a preferential income tax rate of 15% for 2020, provided they continue to meet the standards for “high and new technology enterprise” during 2020. Jiufu Weiban, a subsidiary of Xinjiang Shuke, was qualified as a “high and new technology enterprise” and thus enjoyed a preferential income tax rate of 15%. They would enjoy a preferential income tax rate of 15% for 2021, provided they continue to meet the standards for “high and new technology enterprise” during 2020. In addition, Zhuhai Hengqin Jiufu Technology Co., Ltd. (“Zhuhai Hengqin”) has been recognized as an enterprise of encouraged industries in the Hengqin New Area of Guangdong Province and enjoyed a preferential income tax rate of 15% for 2021. Zhuhai Jiufu Xiaojin Technology Co., Ltd. (“Zhuhai Xiaojin”) has been recognized as an enterprise of encouraged industries in the Hengqin New Area of Guangdong Province and enjoyed a preferential income tax rate of 15% for 2021. Xizang Jiufu Dingdang Information Technology Co., Ltd. (“Jiufu Dingdang”) has been recognized as encouraged industries in the Tibet autonomous region and enjoyed a preferential income tax rate of 15% for 2021, the income tax shared by Tibet autonomous region was temporarily exempted. Xinjiang Teyi Shuke Information Technology Co., Ltd. (“Xinjiang Shuke”, formerly known as Xinjiang Jiufu Onecard Information Technology Co., Ltd.) has been recognized as encouraged industries in the Xinjiang Kashgar Special Economic Development Area and enjoyed a five-years exemption from enterprise income tax from 2017 to 2021. Beijing Baibai Technology Co., Ltd, Beijing Juhuixuan Technology Co., Ltd, Shenzhen Jiufu Xinfu Commercial Factoring Co., Ltd, Jiuxing insurance brokerage Co., Ltd, Beijing Jiubao Technology Co., Ltd, Zhuhai Jiuxin Asset Management Co., Ltd, and Qianhai Jiufu network technology (Shenzhen) Co., Ltd are qualified as “small enterprises with low profits” and thus enjoyed a preferential income tax rate of 20% for 2021. The current and deferred components of the income tax expense which were substantially attributable to the Group’s PRC subsidiaries and VIEs and VIEs’ subsidiaries, are as follows: For the six months ended For the six months ended June 30, June 30, 2020 2021 RMB RMB Current tax 25,439 17,998 Deferred tax (7,565) — Total 17,874 17,998 The reconciliation of income tax expense at statutory tax rate to income tax expense recognized is as follows: For the six months ended For the six months ended June 30, June 30, 2020 2021 RMB RMB Income (loss) before income tax expenses (720,984) (167,335) Statutory tax rate in the PRC 25 % 25 % Income tax expense at statutory tax rate (180,246) (41,834) Non‑deductible expenses(i) 11,901 1,260 Change in valuation allowance 96,202 (252,398) Effect of tax holiday and preferential tax rate 31,734 301,815 Share‑based compensation expenses 51,752 8,729 Effect of different tax rates of subsidiaries operating in other jurisdictions 6,531 426 Income tax expense 17,874 17,998 (i) The amount included in non-deductible expenses is as follows: For the six months ended For the six months ended June 30, June 30, 2020 2021 RMB RMB Non‑deductible expenses—excessive advertising fees — — Other non‑deductible expenses 11,901 1,260 Total 11,901 1,260 The aggregate amount and per ordinary share effect of the tax holiday and preferential tax rate are as follows: June 30, June 30, 2020 2021 RMB RMB The aggregate amount of tax holiday and preferential tax rate (31,734) (301,815) The aggregate effect on basic and diluted net income per ordinary share: —Basic (0.16) (3.01) —Diluted (0.16) (3.01) The tax effects of temporary differences that gave rise to the deferred tax balances are as follows: June 30, June 30, 2020 2021 RMB RMB Deferred revenue 58,095 1,585 Accrued expenses 37,649 2,988 Allowance for doubtful accounts 305,435 11,374 Net operating loss carry forward 227,907 335,685 Excess advertising fee 81,923 — Less: valuation allowance (197,077) (351,632) Total deferred tax assets, net 513,932 — The movements of valuation allowance for six months ended June 30, 2020 and 2021 are as follows: 2020 2021 RMB RMB Balance at beginning of year 99,670 604,030 Additions 97,407 — Reversal — (252,398) Balance at June 30,2020 and 2021 197,077 351,632 June 30, June 30, 2020 2021 RMB RMB Intangible asset from acquisition 13,227 8,504 Total deferred liabilities 13,227 8,504 The Group considers positive and negative evidence to determine whether some portion or all of the deferred tax assets will more likely than not be realized. 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 Group’s experience with tax attributes expiring unused and tax planning alternatives. The valuation allowance is considered on each individual entity basis. Considering all the above factors, valuation allowances were established to certain entities because the Group believes that it is more likely than not that its deferred tax assets will not be realized as it does not expect to generate sufficient taxable income in the near future. Uncertainties exist with respect to how the current income tax law in the PRC applies to the Group’s overall operations, and more specifically, with regard to tax residency status. The EIT Law includes a provision specifying that legal entities organized outside of the PRC will be considered residents for Chinese income tax purposes if the place of effective management or control is within the PRC. The implementation rules to the EIT Law provide that non-resident legal entities will be considered PRC residents if substantial and overall management and control over the manufacturing and business operations, personnel, accounting and properties, occurs within the PRC. Despite the present uncertainties resulting from the limited PRC tax guidance on the issue, the Group does not believe that the legal entities organized outside of the PRC within the Group should be treated as residents for EIT law purposes. If the PRC tax authorities subsequently determine that the Group and its subsidiaries registered outside the PRC should be deemed resident enterprises, the Group and its subsidiaries registered outside the PRC will be subject to the PRC income taxes, at a statutory income tax rate of 25%, the Group is not subject to any other uncertain tax position. The EIT regulations (i.e. Caishui [2011] No. 112) specify that legal entities organized in the Xinjiang Kashgar Special Economic Development Area upon meeting certain requirements can qualify for five years exemption on income tax. Uncertainties exist with regard to whether Xinjiang Shuke can meet the requirements stipulated under the current EIT regulations as well as whether the Group income allocation to entities in Xinjiang match with their business substance. Despite the present uncertainties resulting from the limited tax implementation guidance for the preferential tax treatment of the above regulation in Xinjiang and the tax authorities’ view on the income allocation, the Group believes that the legal entities in the Xinjiang Kashgar Special Economic Development Area meet the requirements as stipulated by the prevailing EIT laws and regulations and therefore can qualified for the income tax exemption and the current income allocation ratio can be sustained. If the PRC tax authorities subsequently determine that these entities do not qualified for the income tax exemption status or the income allocation ratio is not in compliance with arm’s length principle, these entities will be subject to the PRC income taxes, at a statutory rate of 25%, or a transfer pricing adjustment would be made to increase the profit of other entities (subject to 25% or 15% EIT rate) in the Group, which will in turn increase our tax liability, late payment interest, and penalties of the Group. According to PRC Tax Administration and Collection Law, the statute of limitations is for a period of 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 RMB0.1 million is specifically listed as a special circumstance). In the case of a related party transaction, the statute of limitations is ten years. There is no 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 Group 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 June 30,2021. 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 VIEs without significant tax costs. As such, the Group does not accrue deferred tax liabilities on the earnings of the VIEs given that the Group will ultimately use the means. | 12. INCOME TAXES 9F Inc. is a company incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, it is not subject to tax on either income or capital gain. According to the HK regulations, HK entities are subject to a two-tiered income tax rate for taxable income earned in Hong Kong with effect from April 1, 2018. The first HK$2 million of profits earned by HK entity will be taxed at 8.25%, while the remaining profits will continue to be taxed at the existing 16.5% tax rate. In addition, to avoid abuse of the two-tiered tax regime, each group of connected entities can nominate only one entity to benefit from the two-tiered tax rate. Under the PRC Enterprise Income Tax Law (the “EIT Law”), the Group’s subsidiaries domiciled in the PRC are subject to 25% statutory rate unless they are qualified for preferential income tax rate status in accordance with the EIT Law. Certain of the Group’s PRC subsidiaries and VIEs enjoy a preferential income tax rate of 15% or 20% under the EIT Law. A “high and new technology enterprise” is entitled to a favorable income tax rate of 15% and such qualification is reassessed by relevant governmental authorities every three years. In December 2016, Beijing Muyu Technology Development Co., Ltd. (“Beijing Muyu”), a subsidiary of Beijing Jiufu Puhui Information Technology Co., Ltd. (“Jiufu Puhui”), was qualified as a “high and new technology enterprise” and thus enjoyed a preferential income tax rate of 15% for 2018, 2019, and 2020. In 2017, each of Jiufu Shuke, Jiufu Puhui and Jiufu Wukong (Beijing) Technology Co., Ltd. (“Jiufu Wukong”), a subsidiary of Jiufu Shuke, was qualified as a “high and new technology enterprise” and thus enjoyed a preferential income tax rate of 15% for 2018, 2019, and 2020. In 2018, Yisi Hudong(Beijing)Technology Co.,Ltd. (“Yisi Hudong”), a subsidiary of Zhuhai Jiufu Xiaojin, was qualified as a “high and new technology enterprise” and thus enjoyed a preferential income tax rate of 15% for 2018, 2019 and 2020. They would enjoy a preferential income tax rate of 15% for 2020, provided they continue to meet the standards for “high and new technology enterprise” during 2021. Jiufu Weiban, a subsidiary of Xinjiang Shuke, was qualified as a “high and new technology enterprise” and thus enjoyed a preferential income tax rate of 15% for 2018, 2019 and 2020. They would enjoy a preferential income tax rate of 15% for 2021, provided they continue to meet the standards for “high and new technology enterprise” during 2020. In addition, Zhuhai Hengqin Jiufu Technology Co., Ltd. (“Zhuhai Hengqin”) has been recognized as an enterprise of encouraged industries in the Hengqin New Area of Guangdong Province and enjoyed a preferential income tax rate of 15% for 2018, 2019 and 2020. Zhuhai Jiufu Xiaojin Technology Co., Ltd. (“Zhuhai Xiaojin”) has been recognized as an enterprise of encouraged industries in the Hengqin New Area of Guangdong Province and enjoyed a preferential income tax rate of 15% for 2018, 2019, and 2020. Xizang Jiufu Dingdang Information Technology Co., Ltd. (“Jiufu Dingdang”) has been recognized as encouraged industries in the Tibet autonomous region and enjoyed a preferential income tax rate of 15% for 2018, 2019 and 2020, the income tax shared by Tibet autonomous region was temporarily exempted. Xinjiang Teyi Shuke Information Technology Co., Ltd. (“Xinjiang Shuke”, formerly known as Xinjiang Jiufu Onecard Information Technology Co., Ltd.) has been recognized as encouraged industries in the Xinjiang Kashgar Special Economic Development Area and enjoyed a five-years exemption from enterprise income tax from 2017 to 2021. Liangzi (Tianjin) Finance Lease Limited (“Liangzi”) was qualified as a “small enterprises with low profits” and thus enjoyed a preferential income tax rate of 25% for 2019 and 2020. Beijing Baibai Technology Co., Ltd, Beijing Juhuixuan Technology Co., Ltd, Shenzhen Jiufu Xinfu Commercial Factoring Co., Ltd, Jiuxing insurance brokerage Co., Ltd, Beijing Jiubao Technology Co., Ltd, Zhuhai Jiuxin Asset Management Co., Ltd, and Qianhai Jiufu network technology (Shenzhen) Co., Ltd are qualified as “small enterprises with low profits” and thus enjoyed a preferential income tax rate of 20% for 2018, 2019 and 2020. The current and deferred components of the income tax expense which were substantially attributable to the Group’s PRC subsidiaries and VIEs and VIEs’ subsidiaries, are as follows: Year ended Year ended Year ended December 31, December 31, December 31, 2018 2019 2020 RMB RMB RMB Current tax 376,177 245,397 42,758 Deferred tax 26,226 (419,994) 495,546 Total 402,403 (174,597) 538,322 The reconciliation of income tax expense at statutory tax rate to income tax expense recognized is as follows: Year ended Year ended Year ended December 31, December 31, December 31, 2018 2019 2020 RMB RMB RMB Income (loss) before income tax expenses 2,418,729 (2,220,324) (1,691,563) Statutory tax rate in the PRC 25 % 25 % 25 % Income tax expense at statutory tax rate 604,682 (555,081) (422,891) Non‑deductible expenses (i) 19,526 15,362 278,303 Change in valuation allowance 20,980 43,350 504,360 Effect of tax holiday and preferential tax rate (375,632) 221,590 104,218 Share‑based compensation expenses 127,041 88,288 72,657 Effect of different tax rates of subsidiaries operating in other jurisdictions 5,806 11,894 1,675 Income tax expense 402,403 (174,597) 538,322 (i) The amount included in non-deductible expenses is as follows: Year ended Year ended Year ended December 31, December 31, December 31, 2018 2019 2020 RMB RMB RMB Non‑deductible expenses—excessive advertising fees 2,927 — — Other non‑deductible expenses 16,599 15,362 278,303 Total 19,526 15,362 278,303 The aggregate amount and per ordinary share effect of the tax holiday and preferential tax rate are as follows: December 31, December 31, December 31, 2018 2019 2020 RMB RMB RMB The aggregate amount of tax holiday and preferential tax rate 375,632 (221,590) (104,218) The aggregate effect on basic and diluted net income per ordinary share: —Basic 2.31 (1.27) (0.52) —Diluted 2.02 (1.27) (0.52) The tax effects of temporary differences that gave rise to the deferred tax balances are as follows: December 31, December 31, December 31, 2018 2019 2020 RMB RMB RMB Deferred revenue 36,834 104,750 11,786 Accrued expenses 55,110 105,475 106,404 Allowance for doubtful accounts 4,335 265,745 330,488 Net operating loss carry forward 44,379 80,485 142,722 Excess advertising fee — 47,202 12,630 Less: valuation allowance (56,320) (99,670) (604,030) Total deferred tax assets, net 84,338 503,987 — The movements of valuation allowance for the years ended December 31, 2018, 2019 and 2020 are as follows: 2018 2019 2020 RMB RMB RMB Balance at beginning of year 35,340 56,320 99,670 Additions 34,459 56,132 504,360 Reversal (13,479) (12,782) — Balance at end of year 56,320 99,670 604,030 December 31, December 31, December 31, 2018 2019 2020 RMB RMB RMB Deferred tax liabilities: Intangible asset from acquisition 9,003 15,354 9,280 Contract assets — 1,861 — Total deferred liabilities 9,003 17,215 9,280 The Group considers positive and negative evidence to determine whether some portion or all of the deferred tax assets will more likely than not be realized. 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 Group’s experience with tax attributes expiring unused and tax planning alternatives. The valuation allowance is considered on each individual entity basis. Considering all the above factors, valuation allowances were established to certain entities because the Group believes that it is more likely than not that its deferred tax assets will not be realized as it does not expect to generate sufficient taxable income in the near future. Uncertainties exist with respect to how the current income tax law in the PRC applies to the Group’s overall operations, and more specifically, with regard to tax residency status. The EIT Law includes a provision specifying that legal entities organized outside of the PRC will be considered residents for Chinese income tax purposes if the place of effective management or control is within the PRC. The implementation rules to the EIT Law provide that non-resident legal entities will be considered PRC residents if substantial and overall management and control over the manufacturing and business operations, personnel, accounting and properties, occurs within the PRC. Despite the present uncertainties resulting from the limited PRC tax guidance on the issue, the Group does not believe that the legal entities organized outside of the PRC within the Group should be treated as residents for EIT law purposes. If the PRC tax authorities subsequently determine that the Group and its subsidiaries registered outside the PRC should be deemed resident enterprises, the Group and its subsidiaries registered outside the PRC will be subject to the PRC income taxes, at a statutory income tax rate of 25 The EIT regulations (i.e. Caishui [2011] No. 112) specify that legal entities organized in the Xinjiang Kashgar Special Economic Development Area upon meeting certain requirements can qualify for five years exemption on income tax. Uncertainties exist with regard to whether Xinjiang Shuke can meet the requirements stipulated under the current EIT regulations as well as whether the Group income allocation to entities in Xinjiang match with their business substance. Despite the present uncertainties resulting from the limited tax implementation guidance for the preferential tax treatment of the above regulation in Xinjiang and the tax authorities’ view on the income allocation, the Group believes that the legal entities in the Xinjiang Kashgar Special Economic Development Area meet the requirements as stipulated by the prevailing EIT laws and regulations and therefore can qualified for the income tax exemption and the current income allocation ratio can be sustained. If the PRC tax authorities subsequently determine that these entities do not qualified for the income tax exemption status or the income allocation ratio is not in compliance with arm’s length principle, these entities will be subject to the PRC income taxes, at a statutory rate of 25%, or a transfer pricing adjustment would be made to increase the profit of other entities (subject to 25% or 15% EIT rate) in the Group, which will in turn increase our tax liability, late payment interest, and penalties of the Group. According to PRC Tax Administration and Collection Law, the statute of limitations is for a period of 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 RMB0.1 million is specifically listed as a special circumstance). In the case of a related party transaction, the statute of limitations is ten years. There is no 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 Group 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, 2017, 2018, and 2019. 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 VIEs without significant tax costs. As such, the Group does not accrue deferred tax liabilities on the earnings of the VIEs given that the Group will ultimately use the means. |
SHARE-BASED COMPENSATION_2
SHARE-BASED COMPENSATION | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
SHARE-BASED COMPENSATION | ||
SHARE-BASED COMPENSATION | 13. SHARE-BASED COMPENSATION Share incentive plan Share options In 2015, the Group adopted the 2015 Share Incentive Plan (the “2015 Plan”) and, in 2016, the Group adopted the 2016 Share Incentive Plan (the “2016 Plan”), which permits the grant of three types of awards: options, restricted shares and restricted share units. Persons eligible to participate in the 2015 Plan and 2016 Plan (collectively, the “Plans”) includes employees, consultants and directors of the Group or any of affiliates, which include the Group’s parent company, subsidiaries and the Group. Under the 2015 plan, a maximum ordinary shares available for issuance were 15,094,700. Under the 2016 Plan, a maximum of 16,771,900 ordinary shares were reserved for issuance. According to the resolutions of the board of director in 2017, the Group reserved additional 35,867,400 ordinary shares for the Plans. According to the resolutions of the board of director in 2018, the Group reserved additional 3,518,000 ordinary shares for the Plans. During the six months ended June 30,2021,the Group granted 500,000 shares at the exercise price of RMB7.78 per share,4,425,211 shares at the exercise price of RMB0.07. · 500,000 share options will vest annually in equal instalment over 5 years. · 4,425,211 shares options vested 2,655,127 on June 30,2021 and 1,327,563 on September 30,2021,will be vest 442,521 on December 31,2021. During the year ended December 31 2020, the Group granted 680,300 share options at the exercise price of RMB24.11 per share, 2,853,911 share options at the exercise price of zero,3,345,098 share options at the exercise price of RMB24.11 per share,178,900 share options at the exercise price of RMB13.83 per share, 445,280 share options at the exercise price of RMB24.11 per share. These grants are subject to the following vesting conditions: · 680,300 share options will vest over 5 years based on vesting of 15%, 20%, 20%, 20% and 25% at each anniversary subsequent to the grant date. · 2,853,911 share options vested 1,426,955 on March 20,2020 and 1,426,955 on April 20,2020. · 3,345,098 share options fully vested on May 28,2020. · 178,900 share options will vest over 4 years based on vesting of 20%, 20%, 30%, and 30% at each anniversary subsequent to the grant date. · 445,280 share options will vest annually in equal instalment over 5 years. During the year ended December 31 2019, the Group granted 2,279,400 share options at the exercise price of RMB24.06 per share, 78,600 share options at the exercise price of RMB50.13 per share, and 21,500 share options at the exercise price of RMB14.32 per share. These grants are subject to the following vesting conditions: · 100,100 share options will vest annually in equal instalment over 3 · 34,600 share options will vest annually in equal instalment at each calendar year end of grant date over 4 years. · 33,600 share options will vest annually in equal instalment at each anniversary subsequent to the grant date over 5 years. In addition to the service requirement, the share options will only vest upon IPO. · 46,500 share options will vest over 5 years based on vesting of 15%, 20%, 20%, 20% and 25% at each anniversary subsequent to the grant date. In addition to the service requirement, the share options will only vest upon IPO. · 64,700 share options will vest over 4 years based on vesting of 20%, 25%, 25%, and 30% at each anniversary subsequent to the grant date. In addition to the service requirement, the share options will only vest upon IPO. · 100,000 share options will vest over 6 years based on vesting of 12%, 12%, 16%, 20%, 20% and 20% at each anniversary subsequent to the grant date. In addition to the service requirement, the share options will only vest upon IPO. · 2,000,000 share options will vest over 5 years based on vesting of 40%, 15%, 15%, 15%, and 15% at each anniversary of grant date. In addition to the service requirement, the share options will only vest upon IPO. During the year ended December 31, 2018, the Group granted 1,118,400 share options at the exercise price of RMB24.06 per share, 961,100 share options at the exercise price of RMB14.32 per share. These grants are subject to the following vesting conditions: · 618,400 share options will vest annually in equal instalment at each calendar year end subsequent to the grant date over 5 years. In addition to the service requirement, 500,700 share options will only vest upon IPO. · 400,000 share options will vest over 4 years based on vesting of 40%, 20%, 20% and 20% at each calendar year end subsequent to the grant date. In addition to the service requirement, the share options will only vest upon IPO. · 357,800 share options will vest over 4 years based on vesting of 20%, 20%, 30%, and 30% at each calendar year end subsequent to the grant date. In addition to the service requirement, 178,900 share options will only vest upon IPO. · 100,000 share options will vest over 5 years based on vesting of 16%,16%,16%,16%,16% and 20% of the options will be average vested on each year end of grant date. In addition to the service requirement, the share options will only vest upon IPO. · 603,300 share options will vest over 3 years based on vesting of 60%,30% and 10% of the options will be average vested on each year end of grant date. The vesting of the share options granted during the years ended December 31 2020 and for the six months ended June 30,2021 are also subject to certain annual performance targets established by the Group’s Board of Directors and Chief Executive Officer(“CEO”). The Group recognized compensation expenses related to the option linked to these performance targets during the vesting period based on the probable outcome of these performance conditions. The Group has determined that it is probable these conditions will be met; as such the share-based compensation is recognized over the vesting period. The Group calculated the estimated fair value of the share options on the respective grant dates using the binomial option pricing model with the assistance from an independent valuation firm, with the following assumptions used in the six months ended June 30,2020 and 2021. The weighted-average grant-date fair value of the share options granted during the six months ended June 30,2020 and 2021 was RMB20.12 and RMB8.00, respectively. For the six months ended For the six months ended June 30, June 30, 2020 2021 Risk free rate of interest 0.27%-1.47% 0.84%~1.61% Volatility 48.8%-59.5% 113.60%~116% Dividend yield — — Exercise multiples 2.2 / 2.8 2.2 Life of option (years) 2.5-6.0 5 (1) Risk free rate of interest Based on the daily treasury long term rate of U.S. Department of the treasury with a maturity period close to the expected term of the option. (2) Volatility The volatility factor estimated was based on the annualized standard deviation of the daily return embedded in historical share prices of the selected guide line companies with a time horizon close to the expected expiry of the term. (3) Dividend yield The Company has never declared or paid any cash dividends on the Company’s capital stock, and does not anticipate any dividend payments on the Company’s ordinary shares in the foreseeable future. (4) Exercise multiples The expected exercise multiple was estimated as the average ratio of the stock price as at the time when employees would decide to voluntarily exercise their vested options. As the Group did not have sufficient information of past employee exercise history, it was estimated by referencing to academic research publications. For key management grantee and non-key management grantee, the exercise multiple was estimated to be 2.8 and 2.2 respectively. The activity in share options during period from December 31,2020 and June 30,2021 is set out below: Weighted Weighted Average Number of Average Grant ‑ date Options Exercise Price Fair Value RMB RMB Outstanding as of December 31, 2020 29,273,408 17.24 40.24 Granted 4,925,211 0.76 8.00 Exercised — — — Forfeited — — — Outstanding as of June 30, 2021 34,198,619 14.87 35.60 The following table summarizes information with respect to share options outstanding as of June 30, 2021: Options Outstanding Options Exercisable Weighted Weighted Average Average Number Remaining Number Remaining Exercise Price Outstanding Contractual Life Outstanding Contractual Life RMB 0.07 4,425,211 0.87 — — 7.78 500,000 5.73 9.53 10,340,000 0.2 9,878,000 0.09 14.32 12,036,630 1.47 11,644,230 1.45 24.06 2,641,500 3.05 — — 24.11 4,176,678 3.05 3,345,098 3.05 51.05 78,600 2.52 — — 34,198,619 24,867,328 The share-based compensation expenses recognized with each issuance of share options since January 1, 2015 are as follows: For the six months ended June 30, Date of Grant 2020 2021 RMB RMB 01/07/2016 5,255 — 23/08/2016 800 — 06/09/2016 457 — 01/08/2017 3,373 3,097 10/10/2017 1,458 1,335 26/12/2017 2,380 — 19/01/2018 781 — 27/03/2018 1,835 1,681 01/09/2018 524 479 29/09/2018 2,343 1,146 07/01/2019 427 391 21/04/2019 157 144 13/06/2019 90 82 14/06/2019 38 35 01/07/2019 6,955 3,565 16/02/2020 1,636 21/02/2020 112,183 — 28/02/2020 67,952 — 01/07/2020 — 678 13/05/2021 — 20,573 Share‑based compensation recognized for share options 207,008 34,842 A summary of share based compensation recognized related to share options granted and ordinary shares issued is as follows: For the six months ended For the six months ended June 30, June 30, 2020 2021 RMB RMB General and administrative expenses 207,008 34,842 As of December 31 2020 and June 30,2021, unrecognized compensation cost related to unvested option awards granted to employees of the Group was RMB8,741 and RMB11,261, respectively. As of June 30, 2021, such cost was expected to be recognized over a weighted average period of 2.41 years. | 13. SHARE-BASED COMPENSATION Share incentive plan Share options In 2015, the Group adopted the 2015 Share Incentive Plan (the “2015 Plan”) and, in 2016, the Group adopted the 2016 Share Incentive Plan (the “2016 Plan”), which permits the grant of three types of awards: options, restricted shares and restricted share units. Persons eligible to participate in the 2015 Plan and 2016 Plan (collectively, the “Plans”) includes employees, consultants and directors of the Group or any of affiliates, which include the Group’s parent company, subsidiaries and the Group. Under the 2015 plan, a maximum ordinary shares available for issuance were 15,094,700. Under the 2016 Plan, a maximum of 16,771,900 ordinary shares were reserved for issuance. According to the resolutions of the board of director in 2017, the Group reserved additional 35,867,400 ordinary shares for the Plans. According to the resolutions of the board of director in 2018, the Group reserved additional 3,518,000 ordinary shares for the Plans. During the year ended December 31 2020, the Group granted 680,300 share options at the exercise price of RMB24.11 per share, 2,853,911 share options at the exercise price of zero,3,345,098 share options at the exercise price of RMB24.11 per share,178,900 share options at the exercise price of RMB13.83 per share, 445,280 share options at the exercise price of RMB24.11 per share. These grants are subject to the following vesting conditions: ● 680,300 share options will vest over 5 years based on vesting of 15 %, 20 %, 20 %, 20 % and 25 % at each anniversary subsequent to the grant date. ● 2,853,911 share options vested 1,426,955 on March,20,2020 and 1,426,955 on April,20,2020. ● 3,345,098 share options fully vested on May 28,2020. ● 178,900 share options will vest over 4 years based on vesting of 20 %, 20 %, 30 %, and 30 % at each anniversary subsequent to the grant date. ● 445,280 share options will vest annually in equal instalment over 5 years . During the year ended December 31 2019, the Group granted 2,279,400 share options at the exercise price of RMB24.06 per share, 78,600 share options at the exercise price of RMB50.13 per share, and 21,500 share options at the exercise price of RMB14.32 per share. These grants are subject to the following vesting conditions: ● 100,100 share options will vest annually in equal instalment over 3 or 4 years . ● 34,600 share options will vest annually in equal instalment at each calendar year end of grant date over 4 years . ● 33,600 share options will vest annually in equal instalment at each anniversary subsequent to the grant date over 5 years . In addition to the service requirement, the share options will only vest upon IPO. ● 46,500 share options will vest over 5 years based on vesting of 15% , 20% , 20% , 20% and 25% at each anniversary subsequent to the grant date. In addition to the service requirement, the share options will only vest upon IPO. ● 64,700 share options will vest over 4 years based on vesting of 20% , 25% , 25% , and 30% at each anniversary subsequent to the grant date. In addition to the service requirement, the share options will only vest upon IPO. ● 100,000 share options will vest over 6 years based on vesting of 12% , 12% , 16% , 20% , 20% and 20% at each anniversary subsequent to the grant date. In addition to the service requirement, the share options will only vest upon IPO. ● 2,000,000 share options will vest over 5 years based on vesting of 40% , 15% , 15% , 15% , and 15% at each anniversary of grant date. In addition to the service requirement, the share options will only vest upon IPO. During the year ended December 31, 2018, the Group granted 1,118,400 share options at the exercise price of RMB24.06 per share, 961,100 share options at the exercise price of RMB14.32 per share. These grants are subject to the following vesting conditions: ● 618,400 share options will vest annually in equal instalment at each calendar year end subsequent to the grant date over 5 years . In addition to the service requirement, 500,700 share options will only vest upon IPO. ● 400,000 share options will vest over 4 years based on vesting of 40% , 20% , 20% and 20% at each calendar year end subsequent to the grant date. In addition to the service requirement, the share options will only vest upon IPO. ● 357,800 share options will vest over 4 years based on vesting of 20% , 20% , 30% , and 30% at each calendar year end subsequent to the grant date. In addition to the service requirement, 178,900 share options will only vest upon IPO. ● 100,000 share options will vest over 5 years based on vesting of 16% , 16% , 16% , 16% , 16% and 20% of the options will be average vested on each year end of grant date. In addition to the service requirement, the share options will only vest upon IPO. ● 603,300 share options will vest over 3 years based on vesting of 60% , 30% and 10% of the options will be average vested on each year end of grant date. The vesting of the share options granted during the years ended December 31 2018, 2019 and 2020 are also subject to certain annual performance targets established by the Group’s Board of Directors and Chief Executive Officer(“CEO”). The Group recognized compensation expenses related to the option linked to these performance targets during the vesting period based on the probable outcome of these performance conditions. The Group has determined that it is probable these conditions will be met; as such the share-based compensation is recognized over the vesting period. The Group calculated the estimated fair value of the share options on the respective grant dates using the binomial option pricing model with the assistance from an independent valuation firm, with the following assumptions used in 2018, 2019 and 2020. The weighted-average grant-date fair value of the share options granted during 2018, 2019 and 2020 was RMB69.34, RMB38.29 and RMB35.88 respectively. Year ended Year ended Year ended December 31, December 31, December 31, 2018 2019 2020 Risk free rate of interest 2.45% ‑ 2.98% 1.79%-2.53% 0.27%-1.47% Volatility 43.5% ‑ 48.3% 43.4%-55.3% 48.8%-59.5% Dividend yield — — — Exercise multiples 2.2 / 2.8 2.2 / 2.8 2.2 / 2.8 Life of option (years) 4.0 ‑ 6.0 4.0 - 6.0 2.5-6.0 (1) Risk free rate of interest Based on the daily treasury long term rate of U.S. Department of the treasury with a maturity period close to the expected term of the option. (2) Volatility The volatility factor estimated was based on the annualized standard deviation of the daily return embedded in historical share prices of the selected guide line companies with a time horizon close to the expected expiry of the term. (3) Dividend yield The Company has never declared or paid any cash dividends on the Company’s capital stock, and does not anticipate any dividend payments on the Company’s ordinary shares in the foreseeable future. (4) Exercise multiples The expected exercise multiple was estimated as the average ratio of the stock price as at the time when employees would decide to voluntarily exercise their vested options. As the Group did not have sufficient information of past employee exercise history, it was estimated by referencing to academic research publications. For key management grantee and non-key management grantee, the exercise multiple was estimated to be 2.8 and 2.2 respectively. The activity in share options during period from December 31, 2019 to December 31, 2020 is set out below: Weighted Weighted Average Number of Average Grant ‑ date Options Exercise Price Fair Value RMB RMB Outstanding as of December 31, 2019 36,474,200 12.28 34.61 Granted 7,503,489 14.70 35.88 Exercised (8,319,681) — 22.00 Forfeited (6,384,600) 17.05 39.66 Outstanding as of December 31, 2020 29,273,408 17.24 40.24 The following table summarizes information with respect to share options outstanding as of December 31, 2020: Options Outstanding Options Exercisable Weighted Weighted Average Average Number Remaining Number Remaining Exercise Price Outstanding Contractual Life Outstanding Contractual Life RMB 7.78 10,340,000 0.64 9,878,000 0.52 14.32 12,036,630 1.97 11,644,230 1.94 24.06 2,641,500 3.55 — — 24.11 4,176,678 3.55 3,345,098 3.55 51.05 78,600 3.02 — — 29,273,408 24,867,328 The share-based compensation expenses recognized with each issuance of share options since January 1, 2015 are as follows: For the year ended December 31, Date of Grant 2018 2019 2020 RMB RMB RMB 10/07/2015 2,613 — — 25/09/2015 111 57 — 01/07/2016 47,177 27,771 10,319 16/08/2016 241 251 — 23/08/2016 2,336 2,442 1,571 01/09/2016 1,546 1,616 — 06/09/2016 3,524 3,427 898 01/08/2017 9,686 10,124 6,623 11/09/2017 8,713 9,107 — 10/10/2017 2,732 2,856 2,862 20/10/2017 393,648 63,246 — 26/12/2017 — 135,997 4,674 19/01/2018 33,623 8,486 1,533 07/03/2018 2,193 4,162 — 27/03/2018 — 6,345 3,604 27/04/2018 — 10,377 — 01/09/2018 — 1,366 1,028 29/09/2018 — 20,195 4,600 24/12/2018 19 1,095 — 07/01/2019 — 1,842 839 21/04/2019 — 653 309 13/06/2019 — 97 177 14/06/2019 — 41 75 01/07/2019 — 41,598 13,657 21/2/2020 — — 110,145 28/2/2020 — — 127,716 Share‑based compensation recognized for share options 508,162 353,151 290,630 A summary of share based compensation recognized related to share options granted and ordinary shares issued is as follows: Year ended Year ended Year ended December 31, December 31, December 31, 2018 2019 2020 RMB RMB RMB General and administrative expenses 508,162 353,151 290,630 Total 508,162 353,151 290,630 As of December 31, 2018, 2019 and 2020, unrecognized compensation cost related to unvested option awards granted to employees of the Group was RMB410,202, RMB150,349 and RMB8,741, respectively. As of December 31, 2020, such cost was expected to be recognized over a weighted average period of 3.24 years. |
ORDINARY SHARES_2
ORDINARY SHARES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
ORDINARY SHARES | ||
ORDINARY SHARES | 14. ORDINARY SHARES The Group’s Amended and Restated Memorandum of Association authorizes the Group to issue 5,000,000,000 ordinary shares with a par value of US$0.00001 per share approximately. As of December 31,2020 and June 30,2021, the Group had 203,510,681 and 203,510,681 ordinary shares issued and outstanding, respectively. On December 30, 2017, according to the resolution of the board of directors, the Group approved the issuance of 9,894,500 ordinary shares at par value to three individuals who are members of the executive management and board of directors of the Group. In connection with the above issuances, to provide anti-dilution protection to the preferred shareholders, the board of director further approved the issuance of a total of 1,309,900 ordinary shares at par value to the Series A, B and C Preferred Shareholders. A deemed dividend of RMB103,550 was recorded based on a determined per share fair value of ordinary share at RMB82.10. These ordinary shares were subsequently issued on February 1, 2018. In August 2019, the Company completed its initial public offering and issued 8,085,000 ADSs (representing 8,085,000 Class A ordinary shares). The net proceeds raised from initial public offering and from exercising the over-allotment option by the underwriters were RMB463,065, net of issuance cost of RMB31,776. Upon the completion of the initial public offering, the 195,191,000 ordinary shares outstanding were classified into Class A and Class B ordinary shares, of which 128,228,600 shares were designated to Class A ordinary shares and 66,962,400 shares were designated to Class B ordinary shares. Holders of Class A ordinary shares and Class B ordinary shares have the same rights except for voting and conversion rights. Each Class A ordinary share is entitled to one vote, and each Class B ordinary share is entitled to five votes and is convertible into one Class A ordinary share at the option of the holder. Class A ordinary shares Class B ordinary shares | 15. ORDINARY SHARES The Group’s Amended and Restated Memorandum of Association authorizes the Group to issue 5,000,000,000 ordinary shares with a par value of US$0.00001 per share approximately. As of December 31, 2018 , 2019 and 2020 , the Group had 162,672,800, 195,191,000, and 203,510,681 ordinary shares issued and outstanding, respectively. On December 30, 2017, according to the resolution of the board of directors, the Group approved the issuance of 9,894,500 ordinary shares at par value to three individuals who are members of the executive management and board of directors of the Group. In connection with the above issuances, to provide anti-dilution protection to the preferred shareholders, the board of director further approved the issuance of a total of 1,309,900 ordinary shares at par value to the Series A, B and C Preferred Shareholders. A deemed dividend of RMB103,550 was recorded based on a determined per share fair value of ordinary share at RMB82.10. These ordinary shares were subsequently issued on February 1, 2018. In August 2019, the Company completed its initial public offering and issued 8,085,000 ADSs (representing 8,085,000 Class A ordinary shares). The net proceeds raised from initial public offering and from exercising the over-allotment option by the underwriters were RMB463,065, net of issuance cost of RMB31,776. Upon the completion of the initial public offering, the 195,191,000 ordinary shares outstanding were classified into Class A and Class B ordinary shares, of which 128,228,600 shares were designated to Class A ordinary shares and 66,962,400 shares were designated to Class B ordinary shares. Holders of Class A ordinary shares and Class B ordinary shares have the same rights except for voting and conversion rights. Each Class A ordinary share is entitled to one vote, and each Class B ordinary share is entitled to five votes and is convertible into one Class A ordinary share at the option of the holder. Class A ordinary shares - Class B ordinary shares - |
SEGMENT INFORMATION_2
SEGMENT INFORMATION | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
SEGMENT INFORMATION | ||
SEGMENT INFORMATION | 15. SEGMENT INFORMATION The Group’s chief operating decision maker is our Chief Executive Officer who reviews the consolidated results of operations when making decisions about allocating resources and assessing performance of the Group. The Group operates and manages its business as a single segment. Substantially all of the Group’s revenues for the six months ended June 30,2020 and 2021 were generated from the PRC. As of December 31, 2020 and June 30,2021, the majority of long-lived assets of the Group were located in the PRC and Hong Kong. | 16. SEGMENT INFORMATION The Group’s chief operating decision maker is our Chief Executive Officer who reviews the consolidated results of operations when making decisions about allocating resources and assessing performance of the Group. The Group operates and manages its business as a single segment. Substantially all of the Group’s revenues for the years ended December 31, 2018, 2019 and 2020 were generated from the PRC. As of December 31, 2018, 2019 and 2020, the majority of long-lived assets of the Group were located in the PRC and Hong Kong. |
EMPLOYEE BENEFIT PLAN_2
EMPLOYEE BENEFIT PLAN | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
EMPLOYEE BENEFIT PLAN | ||
EMPLOYEE BENEFIT PLAN | 16. EMPLOYEE BENEFIT PLAN Full time employees of the Group in the PRC participate in a government-mandated defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. The Group accrues for these benefits based on certain percentages of the employees’ salaries. The total contribution for such employee benefits were RMB 32,653 and RMB 23,140 for the six months ended June 30,2020 and 2021, respectively. | 17. EMPLOYEE BENEFIT PLAN Full time employees of the Group in the PRC participate in a government-mandated defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. The Group accrues for these benefits based on certain percentages of the employees’ salaries. The total contribution for such employee benefits were RMB116,281, RMB110,394, and RMB69,370 for the years ended December 31, 2018, 2019 and 2020, respectively. |
STATUTORY RESERVES AND RESTRI_3
STATUTORY RESERVES AND RESTRICTED NET ASSETS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
STATUTORY RESERVES AND RESTRICTED NET ASSETS | ||
STATUTORY RESERVES AND RESTRICTED NET ASSETS | 17. STATUTORY RESERVES AND RESTRICTED NET ASSETS In accordance with the PRC laws and regulations, the Group’s PRC subsidiaries and VIEs are required to make appropriation to certain statutory reserves, namely a general 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 Group’s PRC subsidiaries and VIEs 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 each of the Group’s PRC subsidiaries and VIEs. There were no appropriations to these reserves by the Group’s PRC entities for the six months ended June 30,2020 and 2021. As a result of PRC laws and regulations and the requirement that distributions by the PRC entity can only be paid out of distributable profits computed in accordance with PRC GAAP, the PRC entity is restricted from transferring a portion of their net assets to the Company. Amounts restricted include paid-in capital and statutory reserves of the Group’s subsidiaries and VIEs. As of June 30, 2021, the aggregate amounts of paid-in capital, capital reserve and statutory reserves represented the amount of net assets of the relevant entities in the Group not available for distribution amounted to RMB2,779,965. | 18. STATUTORY RESERVES AND RESTRICTED NET ASSETS In accordance with the PRC laws and regulations, the Group’s PRC subsidiaries and VIEs are required to make appropriation to certain statutory reserves, namely a general 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 Group’s PRC subsidiaries and VIEs 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 each of the Group’s PRC subsidiaries and VIEs. There were no appropriations to these reserves by the Group’s PRC entities for the years ended December 31, 2018, 2019 and 2020. As a result of PRC laws and regulations and the requirement that distributions by the PRC entity can only be paid out of distributable profits computed in accordance with PRC GAAP, the PRC entity is restricted from transferring a portion of their net assets to the Company. Amounts restricted include paid-in capital and statutory reserves of the Group’s subsidiaries and VIEs. As of December 31, 2020, the aggregate amounts of paid-in capital, capital reserve and statutory reserves represented the amount of net assets of the relevant entities in the Group not available for distribution amounted to RMB2,779,965. |
NET INCOME (LOSS) PER ORDINAR_5
NET INCOME (LOSS) PER ORDINARY SHARE | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
NET INCOME (LOSS) PER ORDINARY SHARE | ||
NET INCOME (LOSS) PER ORDINARY SHARE | 18. NET INCOME (LOSS) PER ORDINARY SHARE Basic and diluted net loss per share for each of the years presented were calculated as follows: For six months ended June 30, 2020 2021 RMB RMB Numerator: Net income (loss) attributable to 9F Inc. (741,013) (193,709) Less: Deemed dividend to preferred shareholders — — Undistributed earnings allocated to preferred shareholders — — Net income (loss) attributable to ordinary shareholders for computing net income per ordinary shares-basic (741,013) (193,709) Denominator: Weighted average ordinary shares outstanding used in computing net income per ordinary shares-basic 195,191,000 100,361,432 Net income (loss) per ordinary share attributable to ordinary shareholders-basic (3.80) (1.93) Diluted net income per share calculation Net income (loss) attributable to ordinary shareholders for computing net income per ordinary shares-basic (741,013) (193,709) Add: adjustments to undistributed earnings to participating securities Net income (loss) attributable to ordinary shareholders for computing net income per ordinary shares-dilute (741,013) (193,709) Denominator: Weighted average ordinary shares basic outstanding 195,191,000 100,361,432 Effect of potentially diluted share options Weighted average ordinary shares outstanding used in computing net income per ordinary shares-dilute 195,191,000 100,361,432 Net income (loss) per ordinary share attributable to ordinary shareholders-diluted (3.80) (1.93) | 19. NET INCOME (LOSS) PER ORDINARY SHARE The Group has determined that its preferred shares are participating securities as the preferred shares participate in undistributed earnings on an as-if-converted basis. The holders of the preferred shares are entitled to receive dividends on a pro rata basis, as if their shares had been converted into ordinary shares. Accordingly, the Group uses the two-class method of computing net income per share, for ordinary shares, and preferred shares according to the participation rights in undistributed earnings for the year ended December 31, 2018. For the year ended December 31, 2019, undistributed net loss is not allocated to preferred shares because they are not contractually obligated to participate in the loss allocated to the ordinary shares. There were no preferred shares outstanding for the year ended December 31, 2020. Basic and diluted net loss per share for each of the years presented were calculated as follows: For the years ended December 31, 2018 2019 2020 RMB RMB RMB Numerator: Net income (loss) attributable to 9F Inc. 1,981,804 (2,159,576) (2,258,895) Less: Change in redemption value in Series A preferred shares (17,225) (10,711) — Deemed dividend to preferred shareholders — — — Undistributed earnings allocated to preferred shareholders (244,589) — — Net income (loss) attributable to ordinary shareholders for computing net income per ordinary shares—basic 1,719,990 (2,170,287) (2,258,895) Denominator: Weighted average ordinary shares outstanding used in computing net income per ordinary shares—basic 162,672,800 174,552,468 198,596,879 Net income (loss) per ordinary share attributable to ordinary shareholders—basic 10.57 (12.43) (11.37) Diluted net income per share calculation Net income (loss) attributable to ordinary shareholders for computing net income per ordinary shares—basic 1,719,990 (2,170,287) (2,258,895) Add: adjustments to undistributed earnings to participating securities 27,007 — — Net income (loss) attributable to ordinary shareholders for computing net income per ordinary shares—dilute 1,746,997 (2,170,287) (2,258,895) Denominator: Weighted average ordinary shares basic outstanding 162,672,800 174,552,468 198,596,879 Effect of potentially diluted share options 23,062,400 — — Weighted average ordinary shares outstanding used in computing net income per ordinary shares—dilute 185,735,200 174,552,468 198,596,879 Net income (loss) per ordinary share attributable to ordinary shareholders—diluted 9.41 (12.43) (11.37) For the year ended December 31, 2018, no share options were excluded from the computation of diluted earnings per share as their effects have been anti-dilutive. For the years ended December 31, 2019 and 2020, the effects of all outstanding share options were excluded from the computation of diluted loss per share, as their effects would be anti-dilutive. |
LEASES_2
LEASES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
LEASES | ||
LEASES | 19. LEASES The Group leases certain office premises and cloud infrastructure to support its core business system under non-cancelable leases. The Group determines if an arrangement is a lease at inception. Some lease agreements contain lease and non-lease components, which the Group chooses not to account for as separate components as the Group has elected the practical expedient. As of June 30,2021, the Group had no long-term leases that were classified as a financing lease. As of June 30,2021, the Group did not have additional operating leases that have not yet commenced. For the six months ended June 30, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 4,350 Non-cash right-of-use assets in exchange for new lease liabilities: Operating leases — Weighted average remaining lease term Operating leases 1.5 Weighted average discount rate Operating leases 5.30 % Short-term lease cost 134 As of June 30,2021, the maturity of operating lease liabilities are as follows: The six months ended June 30,2021: RMB 2021 10,698 2022 14,818 2023 89 2024 — Thereafter — 25,604 Less imputed interest — Total 25,604 Payments under operating leases are expensed on a straight-line basis over the periods of their respective leases. The terms of the leases do not contain rent escalation or contingent rents. For the six months ended June 30, 2021, total rental expense for all operating leases amounted to RMB435,respectively. | 20. LEASES The Group leases certain office premises and cloud infrastructure to support its core business system under non-cancelable leases. The Group determines if an arrangement is a lease at inception. Some lease agreements contain lease and non-lease components, which the Group chooses not to account for as separate components as the Group has elected the practical expedient. As of December 31, 2020, the Group had no long-term leases that were classified as a financing lease. As of December 31, 2020, the Group did not have additional operating leases that have not yet commenced. For the years ended December 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 59,395 Non-cash right-of-use assets in exchange for new lease liabilities: Operating leases 12,285 Weighted average remaining lease term Operating leases 1.5 Weighted average discount rate Operating leases 5.30 % Short-term lease cost 314 As of December 31, 2020, the maturity of operating lease liabilities are as follows: Years ending December 31: RMB 2021 14,862 2022 13,405 2023 2,956 2024 — Thereafter — 31,223 Less imputed interest 1,720 Total 29,503 Payments under operating leases are expensed on a straight-line basis over the periods of their respective leases. The terms of the leases do not contain rent escalation or contingent rents. For the year ended December 31, 2018, 2019, 2020, total rental expense for all operating leases amounted to RMB68,753, RMB71,287, and RMB58,831 respectively. |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
COMMITMENTS AND CONTINGENCIES | ||
COMMITMENTS AND CONTINGENCIES | 20. COMMITMENTS AND CONTINGENCIES Contingencies The Group is subject to period legal or administrative proceedings in the ordinary course of business. The Group does not believe that any currently pending legal, except for the legal proceeding disclosed below, or administrative proceeding to which the Group is a party will have a material effect on its business or financial condition. Legal proceedings As disclosed in Note 2, in 2019, the Company partnered with PICC under the direct lending program. In November 2019, PICC stopped paying service fees as agreed in the Cooperation Agreement. PICC further disputed with the Group regarding payments of the service fees under the Cooperation Agreement. The Group has suspended its cooperation with PICC on new loans under its direct lending program since December 2019 and has entered into agreements with other financing guarantee companies in providing guarantee services to the institutional funding partners. In May 2020, the Group commenced a legal proceeding against PICC by submitting a complaint with a local court in Beijing for contract non-performance under the Cooperation Agreement. The Group, together with its legal counsel of the case has determined that PICC has breached its contractual obligation under the Cooperation Agreement for not paying service fees that were due to the Group under the direct lending program. The Group is seeking payments of approximately RMB2.3 billion from PICC to cover the outstanding service fees and related late payment losses. After the Group’s legal action was filed against PICC, PICC filed a civil lawsuit against the Group at a local court in Guangzhou claiming that the second amendment under the Cooperation Agreement is invalid, and therefore PICC is not obligated to pay any outstanding service fees and that a portion of the service fees paid to the Group under the Cooperation Agreement plus accrued interest should be refunded to PICC. After several rounds of jurisdictional objections, the case was finally heard by the local court in Beijing in December 2020. Pretrial conference were hold by Beijing local court for part of the evidence exchange and cross-examination on May 14 and August 27,2021.As of the date of this report, the Group is still waiting for court hearing by the local court in Beijing. The Group is vigorously asserting its rights against PICC and will defend itself against any claims brought against the Group by PICC in the legal proceeding. The Group obtained a legal opinion from a law firm in Beijing who believes that the Group’s claim should have judicial support. As of the date of this report, the legal matter remains at the preliminary stage, and it is not possible at this stage to ascertain the outcome of the lawsuit. As of the date of this report, the Group is involved in 175 civil cases, disputes involving private lending, guarantee, performance infringement, and labor arbitration; the amounts in disputes are approximately RMB209.71 million, RMB6.48 million, RMB5.31 million, and RMB1.1 million, respectively.The cases are at preliminary stage, and it is not possible at this stage to ascertain the outcome of any of the lawsuits. Beginning in September 2020, the Group and certain of our current and former officers, directors and others were named as defendants in various putative securities class actions captioned In re 9F Inc. Securities Litigation, Holland v. 9F Inc. et al. | 21. COMMITMENTS AND CONTINGENCIES Contingencies The Group is subject to period legal or administrative proceedings in the ordinary course of business. The Group does not believe that any currently pending legal, except for the legal proceeding disclosed below, or administrative proceeding to which the Group is a party will have a material effect on its business or financial condition. Legal proceedings As disclosed in Note 2, in 2019, the Company partnered with PICC under the direct lending program. In November 2019, PICC stopped paying service fees as agreed in the Cooperation Agreement. PICC further disputed with the Group regarding payments of the service fees under the Cooperation Agreement. The Group has suspended its cooperation with PICC on new loans under its direct lending program since December 2019 and has entered into agreements with other financing guarantee companies in providing guarantee services to the institutional funding partners. In May 2020, the Group commenced a legal proceeding against PICC by submitting a complaint with a local court in Beijing for contract non-performance under the Cooperation Agreement. The Group, together with its legal counsel of the case has determined that PICC has breached its contractual obligation under the Cooperation Agreement for not paying service fees that were due to the Group under the direct lending program. The Group is seeking payments of approximately RMB2.3 billion from PICC to cover the outstanding service fees and related late payment losses. After the Group’s legal action was filed against PICC, PICC filed a civil lawsuit against the Group at a local court in Guangzhou claiming that the second amendment under the Cooperation Agreement is invalid, and therefore PICC is not obligated to pay any outstanding service fees and that a portion of the service fees paid to the Group under the Cooperation Agreement plus accrued interest should be refunded to PICC. After several rounds of jurisdictional objections, the case was finally heard by the local court in Beijing in December 2020. As of the date of this report, the Group is still waiting for court hearing by the local court in Beijing. The Group is vigorously asserting its rights against PICC and will defend itself against any claims brought against the Group by PICC in the legal proceeding. The Group obtained a legal opinion from a law firm in Beijing who believes that the Group’s claim should have judicial support. As of the date of this report, the legal matter remains at the preliminary stage, and it is not possible at this stage to ascertain the outcome of the lawsuit. As of the date of this report, the Group is involved in 63 civil cases, disputes involving private lending guarantee, performance infringement, and labor arbitration; the amounts in disputes are approximately RMB48.8 million, RMB5.4 million, RMB1.4 million, and RMB1.1 million, respectively.The cases are at preliminary stage, and it is not possible at this stage to ascertain the outcome of any of the lawsuits. Beginning in September 2020, the Group and certain of our current and former officers, directors and others were named as defendants in various putative securities class actions captioned In re 9F Inc. Securities Litigation, Holland v. 9F Inc. et al. |
SUBSEQUENT EVENTS_2
SUBSEQUENT EVENTS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
SUBSEQUENT EVENTS | ||
SUBSEQUENT EVENTS | 21. SUBSEQUENT EVENTS The Group has reviewed its subsequent events through November 03, 2021, the date these consolidated financial statements were issued and has determined that other than the following paragraph and matter discussed in Note 19, no material subsequent events have occurred that require recognition in or disclosure to the consolidated financial statements. | 22. SUBSEQUENT EVENTS The Group has reviewed its subsequent events through May 17, 2021, the date these consolidated financial statements were issued and has determined that other than the following paragraph and matter discussed in Note 21, no material subsequent events have occurred that require recognition in or disclosure to the consolidated financial statements. The Group early terminated an office lease contract with terms from October 1, 2018 to September 30, 2021 in Beijing on March 3,2021 due to its decision to exit its business operations. According to the termination agreement, the Group was required to pay RMB10 million for the default and restoration. The Group paid the RMB10 million on March 26, 2021. COVID-19 impacts Starting from January 2020, a novel strain of coronavirus, COVID-19, has spread worldwide. As COVID-19 has negatively affected the broader Chinese economy and the global economy, China has experienced lower domestic consumption in the first half of 2020, and may experience further economic uncertainty, which may also impact us in a materially negative way. Starting from the fourth quarter of 2020 and extending to the first quarter of 2021, a few waves of COVID-19 infections emerged in various regions of China, and varying levels of travel restrictions were reinstated. Our business has been and is likely to continue to be materially adversely affected by the outbreak of COVID-19 in China. |
SUMMARY OF SIGNIFICANT ACCOU_19
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Basis of presentation | Basis of presentation The accompanying consolidated financial statements of the Group have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”). The interim financial statements are condensed and should be read in conjunction with the Group’s latest annual financial statements and that interim disclosures generally do not repeat those in the annual statements. Revenue presentation in the unaudited interim condensed consolidated financial statements and accompanying notes have been reclassified to conform to the current period’s presentation. The Group had made all adjustments necessary for a fair statement of the results for the interim periods. | Basis of presentation The accompanying consolidated financial statements of the Group have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”). |
Basis of consolidation | Basis of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries and consolidated VIEs, including the VIEs’ subsidiaries, for which the Group is the primary beneficiary. All transactions and balances among the Company, its subsidiaries, the VIEs and the VIEs’ subsidiaries have been eliminated upon consolidation. As PRC laws and regulations prohibit and restrict foreign ownership of internet value-added businesses, the Group operates its internet related business in the PRC through two PRC domestic companies, Jiufu Shuke and Beijing Puhui Lianyin Information Technology Limited (“Beijing Puhui”), whose equity interests are held by certain management members and the Founders of the Group. The Group established four wholly-owned foreign invested subsidiaries in the PRC, Beijing Shuzhi Lianyin Technology Co., Ltd (“Shunzhi Lianyin”), Zhuhai Xiaojin Hulian Technology Co., Ltd (“Xiaojin Hulian”), Zhuhai Wukong Youpin Technology Co., Ltd (“Wukong Youpin”), and Qinghai Fuyuan Network Technology (Shenzhen) Co., Ltd (“Qinghai Fuyuan”, together with Shunzhi Lianyin, Xiaojin Hulian, and Wukong Youpin collectively referred as the “WFOEs”). By entering into a series of agreements (the “VIE Agreements”), the Group, through WFOEs, obtained control over Jiufu Shuke and Beijing Puhui (collectively referred as “VIEs”). The VIE Agreements enable the Group to (1) have power to direct the activities that most significantly affect the economic performance of the VIEs, and (2) receive the economic benefits of the VIEs that could be significant to the VIEs. Accordingly, the Group is considered the primary beneficiary of the VIEs and has consolidated the VIEs’ financial results of operations, assets and liabilities in the Group’s consolidated financial statements. In making the conclusion that the Group is the primary beneficiary of the VIEs, the Group’s rights under the Power of Attorney also provide the Group’s abilities to direct the activities that most significantly impact the VIEs’ economic performance. The Group also believes that this ability to exercise control ensures that the VIEs will continue to execute and renew the Master Exclusive Service Agreement and pay service fees to the Group. By charging service fees to be determined and adjusted at the sole discretion of the Group, and by ensuring that the Master Exclusive Service Agreement is executed and remains effective, the Group has the rights to receive substantially all of the economic benefits from the VIEs. Details of the VIE Agreements, are set forth below: VIE Agreements that were entered to give the Group effective control over the VIEs include: Voting Rights Proxy Agreement and Irrevocable Power of Attorney Under which each shareholder of the VIEs grant to any person designated by WFOEs to act as its attorney-in-fact to exercise all shareholder rights under PRC law and the relevant articles of association, including but not limited to, appointing directors, supervisors and officers of the VIEs as well as the right to sell, transfer, pledge and dispose all or a portion of the equity interest held by such shareholders of the VIEs. The proxy and power of attorney agreements will remain effective as long as WFOEs exist. The shareholders of the VIEs do not have the right to terminate the proxy agreements or revoke the appointment of the attorney-in-fact without written consent of the WFOEs. Exclusive Option Agreement Under which each shareholder of the VIEs granted 9F or any third party designated by 9F the exclusive and irrevocable right to purchase from such shareholders of the VIEs, to the extent permitted by PRC law and regulations, all or part of their respective equity interests in the VIEs for a purchase price equal to the registered capital. The shareholders of the VIEs will then return the purchase price to 9F or any third party designated by 9F after the option is exercised. 9F may transfer all or part of its option to a third party at its own option. The VIEs and its shareholders agree that without prior written consent of 9F, they may not transfer or otherwise dispose the equity interests or declare any dividends. The restated option agreement will remain effective until 9F or any third party designated by 9F acquires all equity interest of the VIEs. Spousal Consent The spouse of each shareholder of the VIEs has entered into a spousal consent letter to acknowledge that he or she consents to the disposition of the equity interests held by his or her spouse in the VIEs in accordance with the exclusive option agreement, the power of attorney and the equity pledge agreement regarding VIE structure described above, and any other supplemental agreement(s) may be consented by his or her spouse from time to time. Each such spouse further agrees that he or she will not take any action or raise any claim to interfere with the arrangements contemplated under the mentioned agreements. In addition, each such spouse further acknowledges that any right or interest in the equity interests held by his or her spouse in the VIEs do not constitute property jointly owned with his or her spouse and each such spouse unconditionally and irrevocably waives any right or interest in such equity interests. Loan Agreement Pursuant to the loan agreements between WFOEs and each shareholder of the VIEs, WFOEs extended loans to the shareholders of the VIEs, who had contributed the loan principal to the VIEs as registered capital. The shareholders of VIEs may repay the loans only by transferring their respective equity interests in VIEs to 9F Inc. or its designated person(s) pursuant to the exclusive option agreements. These loan agreements will remain effective until the date of full performance by the parties of their respective obligations thereunder. VIE Agreements that enables the Group to receive substantially all of the economic benefits from the VIEs include: Equity Interest Pledge Agreement Pursuant to equity interest pledge agreement, each shareholder of the VIEs has pledged all of his or her equity interest held in the VIEs to WFOEs to secure the performance by VIEs and their shareholders of their respective obligations under the contractual arrangements, including the payments due to WFOEs for services provided. In the event that the VIEs breach any obligations under these agreements, WFOEs as the pledgees, will be entitled to request immediate disposal of the pledged equity interests and have priority to be compensated by the proceeds from the disposal of the pledged equity interests. The shareholders of the VIEs shall not transfer their equity interests or create or permit to be created any pledges without the prior written consent of WFOEs. The equity interest pledge agreement will remain valid until the master exclusive service agreement and the relevant exclusive option agreements and proxy and power of attorney agreements, expire or terminate. Master Exclusive Service Agreement Pursuant to exclusive service agreement, WFOEs have the exclusive right to provide the VIEs with technical support, consulting services and other services. WFOEs shall exclusively own any intellectual property arising from the performance of the agreement. During the term of this agreement, the VIEs may not accept any services covered by this agreement provided by any third party. The VIEs agree to pay service fees to be determined and adjusted at the sole discretion of the WFOEs. The agreement will remain effective unless WFOEs terminate the agreement in writing. | Basis of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries and consolidated VIEs, including the VIEs’ subsidiaries, for which the Group is the primary beneficiary. All transactions and balances among the Company, its subsidiaries, the VIEs and the VIEs’ subsidiaries have been eliminated upon consolidation. As PRC laws and regulations prohibit and restrict foreign ownership of internet value-added businesses, the Group operates its internet related business in the PRC through two PRC domestic companies, Jiufu Shuke and Beijing Puhui Lianyin Information Technology Limited (“Beijing Puhui”), whose equity interests are held by certain management members and the Founders of the Group. The Group established four wholly-owned foreign invested subsidiaries in the PRC, Beijing Shuzhi Lianyin Technology Co., Ltd (“Shunzhi Lianyin”), Zhuhai Xiaojin Hulian Technology Co., Ltd (“Xiaojin Hulian”), Zhuhai Wukong Youpin Technology Co., Ltd (“Wukong Youpin”), and Qinghai Fuyuan Network Technology (Shenzhen) Co., Ltd (“Qinghai Fuyuan”, together with Shunzhi Lianyin, Xiaojin Hulian, and Wukong Youpin collectively referred as the “WFOEs”). By entering into a series of agreements (the “VIE Agreements”), the Group, through WFOEs, obtained control over Jiufu Shuke and Beijing Puhui (collectively referred as “VIEs”). The VIE Agreements enable the Group to (1) have power to direct the activities that most significantly affect the economic performance of the VIEs, and (2) receive the economic benefits of the VIEs that could be significant to the VIEs. Accordingly, the Group is considered the primary beneficiary of the VIEs and has consolidated the VIEs’ financial results of operations, assets and liabilities in the Group’s consolidated financial statements. In making the conclusion that the Group is the primary beneficiary of the VIEs, the Group’s rights under the Power of Attorney also provide the Group’s abilities to direct the activities that most significantly impact the VIEs’ economic performance. The Group also believes that this ability to exercise control ensures that the VIEs will continue to execute and renew the Master Exclusive Service Agreement and pay service fees to the Group. By charging service fees to be determined and adjusted at the sole discretion of the Group, and by ensuring that the Master Exclusive Service Agreement is executed and remains effective, the Group has the rights to receive substantially all of the economic benefits from the VIEs. Details of the VIE Agreements, are set forth below: VIE Agreements that were entered to give the Group effective control over the VIEs include: Voting Rights Proxy Agreement and Irrevocable Power of Attorney Under which each shareholder of the VIEs grant to any person designated by WFOEs to act as its attorney-in-fact to exercise all shareholder rights under PRC law and the relevant articles of association, including but not limited to, appointing directors, supervisors and officers of the VIEs as well as the right to sell, transfer, pledge and dispose all or a portion of the equity interest held by such shareholders of the VIEs. The proxy and power of attorney agreements will remain effective as long as WFOEs exist. The shareholders of the VIEs do not have the right to terminate the proxy agreements or revoke the appointment of the attorney-in-fact without written consent of the WFOEs. Exclusive Option Agreement Under which each shareholder of the VIEs granted 9F or any third party designated by 9F the exclusive and irrevocable right to purchase from such shareholders of the VIEs, to the extent permitted by PRC law and regulations, all or part of their respective equity interests in the VIEs for a purchase price equal to the registered capital. The shareholders of the VIEs will then return the purchase price to 9F or any third party designated by 9F after the option is exercised. 9F may transfer all or part of its option to a third party at its own option. The VIEs and its shareholders agree that without prior written consent of 9F, they may not transfer or otherwise dispose the equity interests or declare any dividends. The restated option agreement will remain effective until 9F or any third party designated by 9F acquires all equity interest of the VIEs. Spousal Consent The spouse of each shareholder of the VIEs has entered into a spousal consent letter to acknowledge that he or she consents to the disposition of the equity interests held by his or her spouse in the VIEs in accordance with the exclusive option agreement, the power of attorney and the equity pledge agreement regarding VIE structure described above, and any other supplemental agreement(s) may be consented by his or her spouse from time to time. Each such spouse further agrees that he or she will not take any action or raise any claim to interfere with the arrangements contemplated under the mentioned agreements. In addition, each such spouse further acknowledges that any right or interest in the equity interests held by his or her spouse in the VIEs do not constitute property jointly owned with his or her spouse and each such spouse unconditionally and irrevocably waives any right or interest in such equity interests. Loan Agreement Pursuant to the loan agreements between WFOEs and each shareholder of the VIEs, WFOEs extended loans to the shareholders of the VIEs, who had contributed the loan principal to the VIEs as registered capital. The shareholders of VIEs may repay the loans only by transferring their respective equity interests in VIEs to 9F Inc. or its designated person(s) pursuant to the exclusive option agreements. These loan agreements will remain effective until the date of full performance by the parties of their respective obligations thereunder. VIE Agreements that enables the Group to receive substantially all of the economic benefits from the VIEs include: Equity Interest Pledge Agreement Pursuant to equity interest pledge agreement, each shareholder of the VIEs has pledged all of his or her equity interest held in the VIEs to WFOEs to secure the performance by VIEs and their shareholders of their respective obligations under the contractual arrangements, including the payments due to WFOEs for services provided. In the event that the VIEs breach any obligations under these agreements, WFOEs as the pledgees, will be entitled to request immediate disposal of the pledged equity interests and have priority to be compensated by the proceeds from the disposal of the pledged equity interests. The shareholders of the VIEs shall not transfer their equity interests or create or permit to be created any pledges without the prior written consent of WFOEs. The equity interest pledge agreement will remain valid until the master exclusive service agreement and the relevant exclusive option agreements and proxy and power of attorney agreements, expire or terminate. Master Exclusive Service Agreement Pursuant to exclusive service agreement, WFOEs have the exclusive right to provide the VIEs with technical support, consulting services and other services. WFOEs shall exclusively own any intellectual property arising from the performance of the agreement. During the term of this agreement, the VIEs may not accept any services covered by this agreement provided by any third party. The VIEs agree to pay service fees to be determined and adjusted at the sole discretion of the WFOEs. The agreement will remain effective unless WFOEs terminate the agreement in writing. |
Risks in relation to the VIE structure | Risks in relation to the VIE structure The Group believes that the contractual arrangements with the VIEs and their current shareholders are in compliance with PRC laws and regulations and are legally enforceable. However, uncertainties in the PRC legal system could limit the Group’s ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government could: ● Revoke the business and operating licenses of the Group’s PRC subsidiaries or consolidated affiliated entities; ● Discontinue or restrict the operations of any related-party transactions among the Group’s PRC subsidiaries or consolidated affiliated entities; ● Impose fines or other requirements on the Group’s PRC subsidiaries or consolidated affiliated entities; ● Require the Group’s PRC subsidiaries or consolidated affiliated entities to revise the relevant ownership structure or restructure operations; and/or; ● Restrict or prohibit the Group’s use of the proceeds of the additional public offering to finance the Group’s business and operations in China; ● Shut down the Group’s servers or blocking the Group’s online platform; ● Discontinue or place restrictions or onerous conditions on the Group’s operations; and/or ● Require the Group to undergo a costly and disruptive restructuring. The Group’s ability to conduct its business may be negatively affected if the PRC government were to carry out any of the aforementioned actions. As a result, the Group may not be able to consolidate the VIEs in its consolidated financial statements as it may lose the ability to exert effective control over the VIEs and its shareholders, and it may lose the ability to receive economic benefits from the VIEs. The Group currently does not believe that any penalties imposed or actions taken by the PRC government would result in the liquidation of the Company, WFOEs, or the VIEs. The following table sets forth the assets, liabilities, results of operations and cash flows of the VIEs and their subsidiaries, which are included in the Group’s consolidated financial statements after the elimination of intercompany balances and transactions: As of December 31, As of June 30, 2020 2021 RMB RMB Assets: Cash and cash equivalents 1,501,733 1,293,615 Term deposits 135,000 105,000 Investment in marketable securities — 77,109 Accounts receivable, net 9,888 45,957 Other receivables, net 68,742 144,449 Loan receivables, net 221,200 163,200 Prepaid expenses and other assets 740,959 837,041 Contracts assets, net 10,374 6,494 Long‑term investments, net 491,510 489,727 Operating lease right-of-use assets, net 18,611 16,130 Property, equipment and software, net 51,701 39,507 Goodwill, net 72,304 72,304 Intangible assets, net 40,187 38,700 Total assets 3,362,209 3,329,233 Liabilities: Deferred revenue 81,246 9,904 Payroll and welfare payable 29,152 12,614 Income taxes payable 224,533 238,179 Accrued expenses and other liabilities 238,170 274,219 Operating lease liabilities 19,100 15,408 Amounts due to related parties 24,146 23,967 Deferred tax liabilities 5,742 5,392 Total liabilities 622,089 579,683 For the six months ended June 30, 2020 2021 RMB RMB Net revenues 787,925 332,913 Net income (loss) (406,710) 10,552 For the six months ended June 30, 2020 2021 RMB RMB Net cash provided by (used in) operating activities (175,504) (228,263) Net cash used in investing activities (396,186) 20,145 Net cash provided by (used in) financing activities — — Under the VIE Arrangements, the Group has the power to direct activities of the VIEs and can have assets transferred out of the VIEs. Therefore, the Group considers that there is no asset in the VIEs that can be used only to settle obligations of the VIEs, except for assets that correspond to the amount of the registered capital and PRC statutory reserves, if any. As the VIEs are incorporated as limited liability companies under the Company Law of the PRC, creditors of the VIEs do not have recourse to the general credit of the Group for any of the liabilities of the VIEs. Currently there is no contractual arrangement which requires the Group to provide additional financial support to the VIEs. However, as the Group conducts its businesses primarily based on the licenses held by the VIEs, the Group has provided and will continue to provide financial support to the VIEs. Revenue-producing assets held by the VIEs include certain internet content provision (“ICP”) licenses and other licenses, domain names and trademarks. The ICP licenses and other licenses are required under relevant PRC laws, rules and regulations for the operation of internet businesses in the PRC, and therefore are integral to the Group’s operations. The ICP licenses require that core PRC trademark registrations and domain names are held by the VIEs that provide the relevant services. The VIE contributed an aggregate of 92.87% and 84.72% of the consolidated net revenues for six months ended June 30,2020 and 2021 respectively. As of December 31, 2020 and June 30,2021, the VIE accounted for an aggregate of 62.42% and 64.41% respectively, of the consolidated total assets, and 53.48% and 50.81%, respectively, of the consolidated total liabilities. The assets that were not associated with the VIE primarily consist of cash and cash equivalents. | Risks in relation to the VIE structure The Group believes that the contractual arrangements with the VIEs and their current shareholders are in compliance with PRC laws and regulations and are legally enforceable. However, uncertainties in the PRC legal system could limit the Group’s ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government could: ● Revoke the business and operating licenses of the Group’s PRC subsidiaries or consolidated affiliated entities; ● Discontinue or restrict the operations of any related-party transactions among the Group’s PRC subsidiaries or consolidated affiliated entities; ● Impose fines or other requirements on the Group’s PRC subsidiaries or consolidated affiliated entities; ● Require the Group’s PRC subsidiaries or consolidated affiliated entities to revise the relevant ownership structure or restructure operations; and/or; ● Restrict or prohibit the Group’s use of the proceeds of the additional public offering to finance the Group’s business and operations in China; ● Shut down the Group’s servers or blocking the Group’s online platform; ● Discontinue or place restrictions or onerous conditions on the Group’s operations; and/or ● Require the Group to undergo a costly and disruptive restructuring. The Group’s ability to conduct its business may be negatively affected if the PRC government were to carry out any of the aforementioned actions. As a result, the Group may not be able to consolidate the VIEs in its consolidated financial statements as it may lose the ability to exert effective control over the VIEs and its shareholders, and it may lose the ability to receive economic benefits from the VIEs. The Group currently does not believe that any penalties imposed or actions taken by the PRC government would result in the liquidation of the Company, WFOEs, or the VIEs. The following table sets forth the assets, liabilities, results of operations and cash flows of the VIEs and their subsidiaries, which are included in the Group’s consolidated financial statements after the elimination of intercompany balances and transactions: As of December 31, 2019 2020 RMB RMB Assets: Cash and cash equivalents 2,766,981 1,501,733 Term deposits 24,000 135,000 Accounts receivable, net 267,277 9,888 Other receivables, net 81,525 68,742 Loan receivables, net 729,798 221,200 Amounts due from related parties 50,000 — Prepaid expenses and other assets 1,085,197 740,959 Contracts assets, net 24,814 10,374 Long‑term investments, net 293,441 491,510 Operating lease right-of-use assets, net 113,606 18,611 Property, equipment and software, net 95,783 51,701 Goodwill, net 72,224 72,304 Intangible assets, net 45,362 40,187 Deferred tax assets, net 503,078 — Total assets 6,153,086 3,362,209 Liabilities: Deferred revenue 772,340 81,246 Payroll and welfare payable 35,958 29,152 Income taxes payable 303,684 224,533 Accrued expenses and other liabilities 1,056,128 238,170 Operating lease liabilities 119,005 19,100 Amounts due to related parties 29,902 24,146 Deferred tax liabilities 13,200 5,742 Total liabilities 2,330,217 622,089 For the years ended December 31, 2018 2019 2020 RMB RMB RMB Net revenues 5,270,948 4,305,272 1,145,210 Net income (loss) 2,702,469 (1,551,509) (1,479,883) For the years ended December 31, 2018 2019 2020 RMB RMB RMB Net cash provided by (used in) operating activities 2,906,094 (439,357) (753,416) Net cash used in investing activities (803,155) (1,315,875) (511,832) Net cash provided by (used in) financing activities 1,000 (5,188) — Under the VIE Arrangements, the Group has the power to direct activities of the VIEs and can have assets transferred out of the VIEs. Therefore, the Group considers that there is no asset in the VIEs that can be used only to settle obligations of the VIEs, except for assets that correspond to the amount of the registered capital and PRC statutory reserves, if any. As the VIEs are incorporated as limited liability companies under the Company Law of the PRC, creditors of the VIEs do not have recourse to the general credit of the Group for any of the liabilities of the VIEs. Currently there is no contractual arrangement which requires the Group to provide additional financial support to the VIEs. However, as the Group conducts its businesses primarily based on the licenses held by the VIEs, the Group has provided and will continue to provide financial support to the VIEs. Revenue-producing assets held by the VIEs include certain internet content provision (“ICP”) licenses and other licenses, domain names and trademarks. The ICP licenses and other licenses are required under relevant PRC laws, rules and regulations for the operation of internet businesses in the PRC, and therefore are integral to the Group’s operations. The ICP licenses require that core PRC trademark registrations and domain names are held by the VIEs that provide the relevant services. The VIE contributed an aggregate of 94.86%, 97.30% and 91.18% of the consolidated net revenues for the year ended December 31, 2018, 2019 and 2020, respectively. As of December 31, 2019 and 2020, the VIE accounted for an aggregate of 69.29% and 62.42% respectively, of the consolidated total assets, and 91.29% and 53.48%, respectively, of the consolidated total liabilities. The assets that were not associated with the VIE primarily consist of cash and cash equivalents. |
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 are estimates and judgments applied in revenue recognition, allowance for receivables, impairment loss of investments, share-based compensation and realization of deferred tax assets. Actual results may differ materially from these 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 are estimates and judgments applied in revenue recognition, allowance for receivables, impairment loss of investments, share-based compensation and realization of deferred tax assets. Actual results may differ materially from these estimates. |
Revenue recognition | Revenue recognition The Group follows the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers The core principle of Topic 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Online Lending Information Intermediary Services revenue Through its online platform, the Group provides intermediary services on the personal financing product, One Card, under which the holders of One Card can apply for loans on a revolving basis (“revolving loan products”). The Group also provides one-time loan facilitation services to meet various consumption needs (“non-revolving loan product”). For revolving loan products and non-revolving loan products, the Group’s services provided consist of: a) Matching marketplace investors to potential qualified borrowers and facilitating the execution of loan agreements between the parties (referred to as “loan facilitation service”); and b) Providing repayment processing services for the marketplace investors and borrowers over the loan term, including repayment reminders and following up on late repayments (referred to as “post origination services”). The Group has determined that it is not the legal lender or borrower in the loan origination and repayment process, but acting as an intermediary to bring the lender and the borrower together. Therefore, the Group does not record the loans receivable or payable arising from the loans facilitated between the investors and borrowers on its platform. The Group considers its customers to be both the investors and borrowers. The Group considers the loan facilitation service and post origination services as two separate services, which represent two separate performance obligations under Topic 606, as these two deliverables are distinct in that customers can benefit from each service on its own and the Group’s promises to deliver the services are separately identifiable from each other in the contract. The Group determines the total transaction price to be the service fees chargeable from the borrowers and investors. The transaction price is allocated to the loan facilitation services and post origination services using their relative standalone selling prices consistent with the guidance in Topic 606. The Group does not have observable standalone selling price information for the loan facilitation services or post origination services because it does not provide loan facilitation services or post origination services on a standalone basis. There is no direct observable standalone selling price for similar services in the market that is reasonably available to the Group. As a result, the Group uses an expected plus margin approach to estimate the standalone selling prices of loan facilitation services and post origination services as the basis of revenue allocation, which involves significant judgements. In estimating its standalone selling price for the loan facilitation services and post origination services, the Group considers the cost incurred to deliver such services, profit margin for similar arrangements, customer demand, effect of competitors on the Group’s services, and other market factors. For each type of service, the Group recognizes revenue when (or as) the entity satisfies the service/performance obligation by transferring a promised good or service (that is, an asset) to a customer. Revenues from loan facilitation are recognized at the time a loan is originated between the investor and the borrower and the principal loan balance is transferred to the borrower, at which time the loan facilitation service is considered completed. Revenues from post origination services are recognized on a straight-line basis over the term of the underlying loans as the services are provided ratably on a monthly basis. A majority of the service fee is charged to the borrowers, which is collected upfront upon at the loan inception or collected over the loan term. Investors pay service fees to the Group either at the beginning and at the end of the investment commitment period (in terms of automated investing tools) or over the terms of the loan (in terms of self-directing investing tools). In 2018, 2019 and 2020, service fees charged at the beginning or at the end of the investment commitment period or over the terms of the loans in the periods presented were calculated to be equal to an annualized interest rate ranging from 0.5% to 1.5% based on the investment amount and the investment term. Service fees charged to borrowers and investors, including the service fees charged to investors collected at the end of the investment commitment period or over the terms of the loans in the periods presented, were combined as contract price to be allocated to the two performance obligations relating to loan facilitation services and post-origination services, and recognized as revenue when the relevant services are delivered. Revenue recognized related to service fees not yet received from investors that will be collected at the end of the investment commitment period and over the commitment period are recorded as accounts receivable. All service fees are fixed and not refundable. Revenue recognized is recorded net of value added tax (“VAT”). Remaining performance obligations represent the amount of the transaction price for which service has not been performed under post-origination services. In June 2021, the Group ceased publishing information relating to new offerings of investment opportunities in fixed income products for investors on its online lending information intermediary platform. Pursuant to certain collaboration arrangements entered into by the Group and a licensed asset management company, the rights of investors in existing loans underlying the fixed income products will be transferred to the asset management company. After such transfer, the outstanding balance of loans facilitated shall become nil, and the asset management company will provide existing investors with services in relation to the return of their remaining investment in loans. Direct lending program revenue Through its direct lending program, the Group provides traffic referral services to financial institution partners, allowing the financial institution partners to gain access to borrowers who passed the Group’s risk assessment. The Group’s services provided consist of: a) Matching financial institution partners to potential qualified borrowers, and facilitating the execution of loan agreements between the parties (also referred to as “loan facilitation service”); and b) Providing repayment processing services for the financial institution partners and borrowers over the loan term, including repayment reminders and loan collection (also referred to as “post origination services”). Consistent with the revenue recognition policy under the online lending information intermediary services model, the Group has determined that it is not the legal lender or borrower in the loan origination and repayment process, but acting as an intermediary to bring the lender and the borrower together. Therefore, the Group does not record the loans receivable or payable arising from the loans facilitated between the financial institution partners and borrowers. The Group considers its customers to be both the financial institution partners and borrowers. The Group considers the loan facilitation service and post origination service as two separate performance obligations. The Group determines the total transaction price to be the service fees chargeable from the borrowers or the financial institution partners, which is the contracted price adjusted for variable consideration such as potential loan prepayment by the borrows that could reduce the total transaction price, which is estimated using the expected value approach based on historical data and current trends of prepayments of the borrowers. Then the transaction price is allocated to the loan facilitation services and post origination services using their relative standalone selling prices consistent with the guidance in Topic 606, similar to online lending information intermediary services revenue. For each type of service, the Group recognizes revenue when (or as) the entity satisfies the service/performance obligation by transferring the promised service to customers. Revenues from loan facilitation services are recognized at the time a loan is originated between the financial institution 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 origination services are recognized on a straight-line basis over the term of the underlying loans as the services are provided ratably on a monthly basis. Since April 2019, the Group has stopped charging service fees directly to the borrowers under its direct lending program. Instead, the Group started to charge service fees either directly to the institutional funding partners, or indirectly through third-party guarantee companies who provide guarantee services, or the insurance company who provided credit insurance to the institutional funding partners on their loans to the borrowers. The Group concluded this change did not alter the substance of the services it provided to borrowers and financial institution partners under the direct lending program, and therefore would not impact how revenue was recognized. In 2019, under a cooperation agreement, as amended (the “Cooperation Agreement”), the Group predominantly partnered with PICC Property and Casualty Company Limited Guangdong Branch (“PICC”) who provided the credit insurance service to institutional funding partners on the loan origination, PICC collected all of the loan facilitation service fees and remitted the Group’s portion of the service fees to the Group. The Group recorded an account receivable for the service fees confirmed and to be remitted by PICC. Technical services The Group offers technical services to customers including technology empowerment services, operation and marketing support services, customized software development, etc. Technology empowerment services to customers with respect to user acquisition, risk management, consumption scenario perception and comprehension and data modeling. Technical services generate revenues primarily from fixed-price short-term contracts, revenue generated from technology empowerment services, operation and marketing support services is generally recognized over time on a ratable basis. Revenue generated from technology customized software development is recognized when control over the customized software has been transferred to the customer. Wealth management services Through its internet securities service platform,the Group provides Internet Securities Service, Insurance Brokerage Service and Small consumptive business in Southeast Asia. The Group offers convenient and effective global asset allocation services, especially offshore securities investment services, to individual investors so as to connect them with Hong Kong and U.S. stock markets.Internet Securities Service generated revenue from commissions through customers’ transactions in stocks by providing brokerage service for its customers. The Group enters into insurance brokerage service contracts with insurance companies with a pre-agreed commission. The commissions is normally calculated as a percentage (which varies depending on the type of insurance products involved) of the premium to the insurance companies from sales facilitated by the group in respect of an insurance product.For insurance brokerage service, the single performance obligation identified is to provide facilitation service to the insurance companies. For each type of service, the Group recognizes revenue when (or as) the entity satisfies the service/performance obligation by transferring the promised service to customers. The Internet Securities Service is recognized at a point in time on the trade date when the performance obligation is satisfied. The brokerage service commission are earned when each individual insurance transaction is completed. Other revenues Other revenues mainly include product sales revenues from online sales of goods, customer referral and government subsidy income,etc. The Group generates product sales revenues primarily through selling of merchandise via its online shopping platform, 9F One Mall (“online agent model”), and through selling of upscale products via third party platforms (“online direct sales model”). Under online agent model, customers can buy merchandise provided by third-party merchandise suppliers on our 9F One Mall. The Group does not control the merchandise, but rather is acting as an agent for the suppliers. Revenue is recognized for the net amount of consideration the Group is entitled to retain in exchange for the agent service. The Group commenced the operations of the online direct sales model in the first quarter of 2019 and terminated the operations of the online direct sales model in the third quarter of 2019. Under the online direct sales model, revenue is recognized on a gross basis as the Group controls the merchandise before it is transferred to the customers, which is indicated by (i) the Group is primarily responsible for fulfilling the promise to provide the specified upscale products to the customers; (ii) the Group bears inventory risk; and (iii) the Group has discretion in establishing price. Cash incentives To expand market presence, the Group voluntarily provides cash incentives in the form of cash coupons to new and existing investors during its marketing activities. These coupons are not related to prior transactions, and can only be utilized in conjunction with subsequent lending activities. The cash incentives provided are accounted as a reduction of the transaction price according to ASC 606 10 32 25. Cash incentives paid to existing investors, cash incentives paid to new investors, and cash incentives recognized as a reduction of revenue for six months ended June 30, 2020 was RMB 61.7 1.86 64.4 Value added taxes (“VAT”) The Group is subject to value added tax, or VAT, at a rate of 16% from May 1,2018 to March 31,2019 and 13% thereafter on sales of products, and at a rate of 6% on services rendered by the Group, less any deductible VAT the Group has already paid or borne, except for entities qualified as small-scale taxpayers at a VAT rate of 3% without any deduction. Since April 1, 2019, the Group has been subject to an additional 10% deductible VAT. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. VAT is reported as a deduction to revenue when incurred and amounted to RMB 101,869 102,953 Disaggregation of revenues The Group generates revenues primarily from loan facilitation and post-origination services provided to investors, borrowers and financial institution partners through its online lending information intermediary services and direct lending program for the six months ended June 30,2020. The Group generates revenues from thehnical services and wealth management service provided to the customers during the six months ended June 30,2020 and 2021. The Group also generates other revenues, such as penalty fees charged to borrowers for late payment, product sales revenues from online sales of goods, and other service revenues. The following table provides further disaggregation by types of revenues recognized for the six months ended June 30,2020 and 2021: Loan Post facilitation origination Technical Wealth Other For the six months ended June 30,2020 services services services management revenues Total RMB RMB RMB RMB RMB RMB Online lending platform revenue Online lending information intermediary services revenue Revolving loan products (One Card) 133,743 48,815 — — — 182,558 Non‑revolving loan products Direct lending program revenue 94,049 481,417 — — — 575,466 Other revenue 10,067 62,360 17,979 90,406 Total 227,792 530,232 10,067 62,360 17,979 848,430 Loan Post facilitation origination Technical Wealth Other For the six months ended June 30,2021 services services services management revenues Total RMB RMB RMB RMB RMB RMB Online lending platform revenue Online lending information intermediary services revenue Revolving loan products (One Card) — 68,826 — — — 68,826 Non‑revolving loan products Direct lending program revenue — 9,178 — — — 9,178 Other revenue 164,497 61,362 89,093 314,952 Total — 78,004 164,497 61,362 89,093 392,956 The Group manages its business through a comprehensive offering of financial products and services tailored to the needs of the investors, borrowers and customers. These financial products are categorized by the Group as Online Lending platform revenue, wealth management products and others. The following table illustrates the disaggregation of revenues by product offering for the six months ended June 30,2020 and 2021: June 30, June 30, 2020 2021 RMB RMB Online Lending platform revenue 758,024 78,004 Technical services 10,067 164,497 Wealth management services 62,360 61,362 Others 17,979 89,093 Total 848,430 392,956 Deferred Revenue Deferred revenue consists of post origination service fees received or receivable from borrowers, investors and financial institution partners for which services have not yet been provided. Deferred revenues is recognized ratably as revenue when the post-origination services are delivered during the loan period. Revenue recognized during the six months ended June 30,2021 that was included in the deferred revenue balance at the beginning of the year was RMB72,564. In December 2018, China National Internet Finance Rectification Office and the National Online Lending Rectification Office jointly issued the Guidance on the Classification and Disposal of Risks of Online Lending Information Intermediaries and Risk Prevention (“Circular 175”). Circular 175 tightens the regulation of the industry by requiring institutions other than normal intermediaries, including shell intermediaries with no substantive operations, small-scale intermediaries, intermediaries with high risks, and intermediaries that are unable to repay investors or otherwise unable to operate their businesses, to exit the online lending information intermediary industry. In light of the tightening regulatory environment, the Group significantly decreased online lending information intermediary services during the year ended December 31, 2020. The Group launched re-designed investment programs by transferring their creditor’s rights to a licensed asset management company named Ningxia Shunyi Asset Management Co. Ltd (“Ningxia Shunyi”). By opting for the Group’s new investment programs, individual investors authorized our platform to transfer its creditor’s rights to Ningxia Shunyi on their behalf at the individual investors’ option. On August 24,2020, the Group signed the asset management agreement and supplementary agreement with Ningxia Shunyi. According to the agreement, after the completion of the creditor’s rights transfer, Ningxia Shunyi and other third party will provide services, including intermediary or management services. Contract assets, net Contract assets are attributable to loan products to borrowers under our online lending platform, the Group is entitled to payment of service fees when repayment of loans is received from the borrowers. Contract assets are recorded under these arrangements when the Group provides the loan facilitation and post origination services but before the payments are due. Contract assets are stated at the historical carrying amount net of write-off and allowance for collectability in accordance with ASC Topic 310. The Group established an allowance for uncollectible contract assets based on estimates, historical experience and other factors surrounding the credit risk of specific customers similar to borrowers related to the financial institution partners. The Group evaluates and adjusts its allowance for uncollectible contract assets on a quarterly basis or more often as necessary. Uncollectible contract assets are written off when the consideration entitled by the Group is due and the Group has determined the balance will not be collected. The Group recognizes contract assets only to the extent that the Group believes it is probable that they will collect substantially all of the consideration to which it will be entitled in exchange for the services transferred to the customer. The following table presents the contract assets from loan facilitation services and post origination services: December 31, June 30, 2020 2021 RMB RMB Contract assets from loan facilitation services and post origination services 25,123 20,815 Less: Allowance for loss for collectability (14,749) (14,321) Total 10,374 6,494 The following table presents the movement of allowance for loss for contract assets for the years ended December 31, 2020 and for the six years ended June 30, 2021: December 31, June 30, 2020 2021 RMB RMB Balance at beginning of the year 2,255 14,749 Provision/(Reversal) for doubtful contract assets 18,605 (428) Write-offs (6,111) — Balance at end of the year 14,749 14,321 Practical Expedients and Exemptions The Group generally expenses sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within sales and marketing expenses. | Revenue recognition The Group follows the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers The core principle of Topic 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Online Lending Information Intermediary Services revenue Through its online platform, the Group provides intermediary services on the personal financing product, One Card, under which the holders of One Card can apply for loans on a revolving basis (“revolving loan products”). The Group also provides one-time loan facilitation services to meet various consumption needs (“non-revolving loan product”). For revolving loan products and non-revolving loan products, the Group’s services provided consist of: a) Matching marketplace investors to potential qualified borrowers and facilitating the execution of loan agreements between the parties (referred to as “loan facilitation service”); and b) Providing repayment processing services for the marketplace investors and borrowers over the loan term, including repayment reminders and following up on late repayments (referred to as “post origination services”). The Group has determined that it is not the legal lender or borrower in the loan origination and repayment process, but acting as an intermediary to bring the lender and the borrower together. Therefore, the Group does not record the loans receivable or payable arising from the loans facilitated between the investors and borrowers on its platform. The Group considers its customers to be both the investors and borrowers. The Group considers the loan facilitation service and post origination services as two separate services, which represent two separate performance obligations under Topic 606, as these two deliverables are distinct in that customers can benefit from each service on its own and the Group’s promises to deliver the services are separately identifiable from each other in the contract. The Group determines the total transaction price to be the service fees chargeable from the borrowers and investors. The transaction price is allocated to the loan facilitation services and post origination services using their relative standalone selling prices consistent with the guidance in Topic 606. The Group does not have observable standalone selling price information for the loan facilitation services or post origination services because it does not provide loan facilitation services or post origination services on a standalone basis. There is no direct observable standalone selling price for similar services in the market that is reasonably available to the Group. As a result, the Group uses an expected plus margin approach to estimate the standalone selling prices of loan facilitation services and post origination services as the basis of revenue allocation, which involves significant judgements. In estimating its standalone selling price for the loan facilitation services and post origination services, the Group considers the cost incurred to deliver such services, profit margin for similar arrangements, customer demand, effect of competitors on the Group’s services, and other market factors. For each type of service, the Group recognizes revenue when (or as) the entity satisfies the service/performance obligation by transferring a promised good or service (that is, an asset) to a customer. Revenues from loan facilitation are recognized at the time a loan is originated between the investor and the borrower and the principal loan balance is transferred to the borrower, at which time the loan facilitation service is considered completed. Revenues from post origination services are recognized on a straight-line basis over the term of the underlying loans as the services are provided ratably on a monthly basis. A majority of the service fee is charged to the borrowers, which is collected upfront upon at the loan inception or collected over the loan term. Investors pay service fees to the Group either at the beginning and at the end of the investment commitment period (in terms of automated investing tools) or over the terms of the loan (in terms of self-directing investing tools). In 2018, 2019 and 2020, service fees charged at the beginning or at the end of the investment commitment period or over the terms of the loans in the periods presented were calculated to be equal to an annualized interest rate ranging from 0.5% to 1.5% based on the investment amount and the investment term. Service fees charged to borrowers and investors, including the service fees charged to investors collected at the end of the investment commitment period or over the terms of the loans in the periods presented, were combined as contract price to be allocated to the two performance obligations relating to loan facilitation services and post-origination services, and recognized as revenue when the relevant services are delivered. Revenue recognized related to service fees not yet received from investors that will be collected at the end of the investment commitment period and over the commitment period are recorded as accounts receivable. All service fees are fixed and not refundable. Revenue recognized is recorded net of value added tax (“VAT”). Remaining performance obligations represent the amount of the transaction price for which service has not been performed under post-origination services. In December 2020, the Group ceased publishing information relating to new offerings of investment opportunities in fixed income products for investors on its online lending information intermediary platform. Pursuant to certain collaboration arrangements entered into by the Group and a licensed asset management company, the rights of investors in existing loans underlying the fixed income products will be transferred to the asset management company. After such transfer, the outstanding balance of loans facilitated shall become nil, and the asset management company will provide existing investors with services in relation to the return of their remaining investment in loans. Direct lending program revenue Through its direct lending program, the Group provides traffic referral services to financial institution partners, allowing the financial institution partners to gain access to borrowers who passed the Group’s risk assessment. The Group’s services provided consist of: a) Matching financial institution partners to potential qualified borrowers, and facilitating the execution of loan agreements between the parties (also referred to as “loan facilitation service”); and b) Providing repayment processing services for the financial institution partners and borrowers over the loan term, including repayment reminders and loan collection (also referred to as “post origination services”). Consistent with the revenue recognition policy under the online lending information intermediary services model, the Group has determined that it is not the legal lender or borrower in the loan origination and repayment process, but acting as an intermediary to bring the lender and the borrower together. Therefore, the Group does not record the loans receivable or payable arising from the loans facilitated between the financial institution partners and borrowers. The Group considers its customers to be both the financial institution partners and borrowers. The Group considers the loan facilitation service and post origination service as two separate performance obligations. The Group determines the total transaction price to be the service fees chargeable from the borrowers or the financial institution partners, which is the contracted price adjusted for variable consideration such as potential loan prepayment by the borrows that could reduce the total transaction price, which is estimated using the expected value approach based on historical data and current trends of prepayments of the borrowers. Then the transaction price is allocated to the loan facilitation services and post origination services using their relative standalone selling prices consistent with the guidance in Topic 606, similar to online lending information intermediary services revenue. For each type of service, the Group recognizes revenue when (or as) the entity satisfies the service/performance obligation by transferring the promised service to customers. Revenues from loan facilitation services are recognized at the time a loan is originated between the financial institution 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 origination services are recognized on a straight-line basis over the term of the underlying loans as the services are provided ratably on a monthly basis. Since April 2019, the Group has stopped charging service fees directly to the borrowers under its direct lending program. Instead, the Group started to charge service fees either directly to the institutional funding partners, or indirectly through third-party guarantee companies who provide guarantee services, or the insurance company who provided credit insurance to the institutional funding partners on their loans to the borrowers. The Group concluded this change did not alter the substance of the services it provided to borrowers and financial institution partners under the direct lending program, and therefore would not impact how revenue was recognized. In 2019, under a cooperation agreement, as amended (the “Cooperation Agreement”), the Group predominantly partnered with PICC Property and Casualty Company Limited Guangdong Branch (“PICC”) who provided the credit insurance service to institutional funding partners on the loan origination, PICC collected all of the loan facilitation service fees and remitted the Group’s portion of the service fees to the Group. The Group recorded an account receivable for the service fees confirmed and to be remitted by PICC. Other revenues Other revenues mainly include product sales revenues from online sales of goods, penalty fee for late payment, and other service revenues. The Group generates product sales revenues primarily through selling of merchandise via its online shopping platform, 9F One Mall (“online agent model”), and through selling of upscale products via third party platforms (“online direct sales model”). Under online agent model, customers can buy merchandise provided by third-party merchandise suppliers on our 9F One Mall. The Group does not control the merchandise, but rather is acting as an agent for the suppliers. Revenue is recognized for the net amount of consideration the Group is entitled to retain in exchange for the agent service. The Group commenced the operations of the online direct sales model in the first quarter of 2019 and terminated the operations of the online direct sales model in the third quarter of 2019. Under the online direct sales model, revenue is recognized on a gross basis as the Group controls the merchandise before it is transferred to the customers, which is indicated by (i) the Group is primarily responsible for fulfilling the promise to provide the specified upscale products to the customers; (ii) the Group bears inventory risk; and (iii) the Group has discretion in establishing price. Other revenues also include revenue of services such as insurance agency, securities brokerage, customer referral and government subsidy income. Cash incentives To expand market presence, the Group voluntarily provides cash incentives in the form of cash coupons to new and existing investors during its marketing activities. These coupons are not related to prior transactions, and can only be utilized in conjunction with subsequent lending activities. The cash incentives provided are accounted as a reduction of the transaction price according to ASC 606-10-32-25. Cash incentives paid to existing investors, cash incentives paid to new investors, and cash incentives recognized as a reduction of revenue for year ended December 31, 2018 was RMB23.9 million, RMB1.2 million, and RMB25.8 million, respectively. Cash incentives paid to existing investors, cash incentives paid to new investors, and cash incentives recognized as a reduction of revenue for year ended December 31, 2019 was RMB59.6 million, RMB0.8 million, and RMB57.6 million, respectively. Cash incentives paid to existing investors, cash incentives paid to new investors, and cash incentives recognized as a reduction of revenue for year ended December 31, 2020 was RMB61.7 million, RMB2.7 million, and RMB8.9 million, respectively. Value added taxes (“VAT”) The Group is subject to value added tax, or VAT, at a rate of 16% from May 1, 2018 to March 31, 2019 and 13% thereafter on sales of products, and at a rate of 6% on services rendered by the Group, less any deductible VAT the Group has already paid or borne, except for entities qualified as small-scale taxpayers at a VAT rate of 3% without any deduction. Since April 1, 2019, the Group has been subject to an additional 10% deductible VAT. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. VAT is reported as a deduction to revenue when incurred and amounted to RMB490,136, RMB611,786, and RMB136,501 for the years ended December 31, 2018, 2019 and 2020, respectively. The net VAT balance between input VAT and output VAT is recorded in the line item of accrued expenses and other liabilities on the face of balance sheet. Disaggregation of revenues The Group generates revenues primarily from loan facilitation and post-origination services provided to investors, borrowers and financial institution partners through its online lending information intermediary services and direct lending program. The Group also generates other revenues, such as penalty fees charged to borrowers for late payment, product sales revenues from online sales of goods, and other service revenues. The following table provides further disaggregation by types of revenues recognized in 2018, 2019 and 2020. Loan Post facilitation origination Other 2018 services services revenues Total RMB RMB RMB RMB Online lending platform revenue Online lending information intermediary services revenue Revolving loan products (One Card) 4,728,255 282,057 — 5,010,312 Non‑revolving loan products 186,679 85,218 — 271,897 Direct lending program revenue 45,737 164 — 45,901 Other revenue — — 228,372 228,372 Total 4,960,671 367,439 228,372 5,556,482 Loan Post facilitation origination Other 2019 services services revenues Total RMB RMB RMB RMB Online lending platform revenue Online lending information intermediary services revenue Revolving loan products (One Card) 1,698,133 269,718 — 1,967,851 Non‑revolving loan products 104,611 30,226 — 134,837 Direct lending program revenue 1,675,153 304,788 — 1,979,941 Other revenue — — 342,334 342,334 Total 3,477,897 604,732 342,334 4,424,963 Loan Post facilitation origination Other 2020 services services revenues Total RMB RMB RMB RMB Online lending platform revenue Online lending information intermediary services revenue Revolving loan products (One Card) 26,376 203,748 — 230,124 Non‑revolving loan products 84,485 202,097 — 286,582 Direct lending program revenue 66,286 453,257 — 519,543 Other revenue — — 219,756 219,756 Total 177,147 859,102 219,756 1,256,005 The Group manages its business through a comprehensive offering of financial products tailored to the needs of the investors and borrowers. These financial products are categorized by the Group as loan products, wealth management products and others. The following table illustrates the disaggregation of revenues by product offering in 2018, 2019 and 2020: December 31, December 31, December 31, 2018 2019 2020 RMB RMB RMB Loan product revenue 4,930,515 3,590,693 847,576 Wealth management product revenue 471,060 573,355 188,673 Others 154,907 260,915 219,756 Total 5,556,482 4,424,963 1,256,005 Loan products-In 2018, 2019 and 2020, loan products represented product offerings tailored to the needs of the borrowers. Loan product revenues in the above table represented the portion of the service fees that were charged to borrowers through the Group’s online lending information intermediary services, and charged from borrowers with whom the Group has stopped charging service fees since April 2019 or financial institution partners under direct lending program business. Wealth Management products-In 2018, 2019 and 2020, wealth management products represented product offerings tailored to the needs of the individual investors, including fixed income products and other wealth management products such as insurance and stock investment brokerage services, and fund investment products services. Fixed income products were offered to individual investors who desired to invest in loans facilitated through the Group’s online lending information intermediary services. Revenues from wealth management products in the above table were mainly derived from fixed income products and represented the portion of service fees that was charged to investors in the Group’s online lending information intermediary services. Revenues recognized on other wealth management products were immaterial for the periods presented. Deferred Revenue Deferred revenue consists of post origination service fees received or receivable from borrowers, investors and financial institution partners for which services have not yet been provided. Deferred revenues is recognized ratably as revenue when the post-origination services are delivered during the loan period. The balance of deferred revenue decreased from RMB788,906 as of December 31, 2019 to RMB98,668 as of December 31, 2020 due to the cessation of cooperation with PICC and our new investment programs. Revenue recognized during the years ended December 31, 2019 and 2020 that was included in the deferred revenue balance at the beginning of the year was RMB290,674 and RMB555,646, respectively. In December 2018, China National Internet Finance Rectification Office and the National Online Lending Rectification Office jointly issued the Guidance on the Classification and Disposal of Risks of Online Lending Information Intermediaries and Risk Prevention (“Circular 175”). Circular 175 tightens the regulation of the industry by requiring institutions other than normal intermediaries, including shell intermediaries with no substantive operations, small-scale intermediaries, intermediaries with high risks, and intermediaries that are unable to repay investors or otherwise unable to operate their businesses, to exit the online lending information intermediary industry. In light of the tightening regulatory environment, the Group significantly decreased online lending information intermediary services during the year ended December 31, 2020. The Group launched re-designed investment programs by transferring their creditor’s rights to a licensed asset management company named Ningxia Shunyi Asset Management Co. Ltd (“Ningxia Shunyi”). By opting for the Group’s new investment programs, individual investors authorized our platform to transfer its creditor’s rights to Ningxia Shunyi on their behalf at the individual investors’ option. On August 24,2020, the Group signed the asset management agreement and supplementary agreement with Ningxia Shunyi. According to the agreement, after the completion of the creditor’s rights transfer, Ningxia Shunyi and other third party will provide services, including intermediary or management services. Contract assets, net Contract assets are attributable to loan products to borrowers under our online lending platform, the Group is entitled to payment of service fees when repayment of loans is received from the borrowers. Contract assets are recorded under these arrangements when the Group provides the loan facilitation and post origination services but before the payments are due. Contract assets are stated at the historical carrying amount net of write-off and allowance for collectability in accordance with ASC Topic 310. The Group established an allowance for uncollectible contract assets based on estimates, historical experience and other factors surrounding the credit risk of specific customers similar to borrowers related to the financial institution partners. The Group evaluates and adjusts its allowance for uncollectible contract assets on a quarterly basis or more often as necessary. Uncollectible contract assets are written off when the consideration entitled by the Group is due and the Group has determined the balance will not be collected. The Group recognizes contract assets only to the extent that the Group believes it is probable that they will collect substantially all of the consideration to which it will be entitled in exchange for the services transferred to the customer. The following table presents the contract assets from loan facilitation services and post origination services: December 31, December 31, 2019 2020 RMB RMB Contract assets from loan facilitation services and post origination services 27,079 25,123 Less: Allowance for loss for collectability (2,255) (14,749) Total 24,824 10,374 The following table presents the movement of allowance for loss for contract assets for the years ended December 31, 2019 and 2020: December 31, December 31, 2019 2020 RMB RMB Balance at beginning of the year 329 2,255 Provision for doubtful contract assets 14,811 18,605 Write-offs (12,885) (6,111) Balance at end of the year 2,255 14,749 Practical Expedients and Exemptions The Group generally expenses sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within sales and marketing expenses. |
Quality assurance fund liability | Quality assurance fund liability In order to provide assurance for investors, the Group established an investors’ protection plan. From December 2013 to December 2016, the Group provided an investor protection service which is accounted for as guarantee. Starting from August 25, 2016, the Group cooperated with third party guarantee and insurance companies, who provided investor protection services to replace the former quality assurance fund model, and the Group no longer has any legal obligation to make compensation payments to investors on defaulted loans, and therefore no longer records a quality assurance fund liability in accordance with ASC 405-20, Extinguishments of liabilities. In August 2016, the Group cooperated with Guangdong Nanfeng Guarantee Ltd. (“Nanfeng Guarantee”) and Taiping General Insurance Co., Ltd, (“China Taiping”) to launch an investors’ protection plan to replace the former quality assurance fund model. As part of the agreement with Nanfeng Guarantee and China Taiping, the Group transferred its legal responsibility to guarantee the existing loans (i.e., existing and future defaults) to Nanfeng Guarantee and China Taiping. The Group agreed to pay the balance of the quality assurance fund as of August 25, 2016 of RMB287 million from its own special account to a depository account set up by Nanfeng Guarantee and supervised by China Taiping. For all new loans facilitated, the borrowers paid the quality assurance fund to Nanfeng Guarantee to manage as part of the guarantee fund reserve going forward. A separate insurance policy was entered into by each borrower and the insurance company (i.e., China Taiping), where the insurance company charged an insurance premium to the borrower to cover additional default risks. Nanfeng Guarantee used the quality assurance fund in the depository account to compensate the defaulted loans. China Taiping will not cover the repayment until the balance of the depository account at the depository bank becomes insufficient. As a result, the Group no longer has a legal obligation to make compensation payments to investors for defaults (both incurred and future) related to its existing loan portfolio as well as loans originated subsequent to August 25, 2016. In September 2017, the Group launched an enhanced investors’ protection plan with China Taiping and Nanfeng Guarantee. For loans with terms of 12 months or less, the borrower signed a “Loan Performance Guarantee Insurance Policy” with China Taiping and paid an insurance premium to China Taiping. In the event that default of the insured loan happens, China Taiping will repay the outstanding principal and the interest to the investors. For loans over 12 months, and for loans with terms of 12 months or less but not covered by China Taiping’s insurance protection, the borrower signed a “Confirmation to Participation in Guarantee Plan” and Nanfeng Guarantee provided the guarantee service. The borrowers pay the guarantee fee to Nanfeng Guarantee, which will be deposited in the guarantee fund depository account set up by Nanfeng Guarantee. The Group and Nanfeng Guarantee will determine the guarantee fund rate charged to borrowers based on the credit characteristics of the borrower as well as the underlying loan characteristics. If default of any loan protected by Nanfeng Guarantee happens, Nanfeng Guarantee will withdraw the funds from the guarantee fund reserve account to repay the investor within the fund’s balance as the upper limit. In January 2018, the Group announced new updates to the arrangements regarding loans with terms of more than 12 months. The borrower signs a guarantee contract with Guangdong Success Finance Guarantee Company Limited (“Guangdong Success”). According to the contract, when the borrower defaults and, if the balance of the guarantee fund reserve account is insufficient to cover the unpaid amounts, Guangdong Success will make additional repayment with an upper limit of a cap of five times the guarantee fee paid by the borrower. For loans with the terms of 12 months or less, the borrower pays the insurance premium and signs a “Loan Performance Guarantee Insurance Policy” with either China Taiping or PICC with whom the Group began to collaborate in March 2018. The loans under China Taiping’s insurance protection obligation were all due by August 15, 2019; however, China Taiping’s insurance protection obligation has not been completely fulfilled as of the date of this annual report due to the ongoing insurance claim and settlement process. PICC has provided insurance protection to all the new loans with terms of no more than 12 months that have been originated since May 2018 and covered by the insurance protection plan. Since November 2019, new loans with terms of no more than 12 months are no longer covered by PICC’s investors protection plan. However, as of the date of this annual report, PICC’s insurance protection obligation will continue for loans originated before November 2019 that were subject to PICC’s insurance protection plan. Furthermore, Guangdong Success no longer provides guarantee protection on new loans facilitated after February 2020; however, Guangdong Success’ obligation with respect to loans facilitated before February 2020 has not been completely fulfilled as of the date of this annual report. Since February 2020, the Group began to collaborate with Zhongtian Caizhi Financing Guarantee Co., Ltd. (“Zhongtian Guarantee”), an independent third party. For all the new loans originated since February 2020, borrowers are required to make contributions to the depository account set up by Zhongtian Guarantee. If a loan is past due for a certain period, Zhongtian Guarantee will use the cash available in the depository account to repay the investors up to the total amount of principal and the accrued interests. | Quality assurance fund liability In order to provide assurance for investors, the Group established an investors’ protection plan. From December 2013 to December 2016, the Group provided an investor protection service which is accounted for as guarantee. Starting from August 25, 2016, the Group cooperated with third party guarantee and insurance companies, who provided investor protection services to replace the former quality assurance fund model, and the Group no longer has any legal obligation to make compensation payments to investors on defaulted loans, and therefore no longer records a quality assurance fund liability in accordance with ASC 405-20, Extinguishments of liabilities. In August 2016, the Group cooperated with Guangdong Nanfeng Guarantee Ltd. (“Nanfeng Guarantee”) and Taiping General Insurance Co., Ltd, (“China Taiping”) to launch an investors’ protection plan to replace the former quality assurance fund model. As part of the agreement with Nanfeng Guarantee and China Taiping, the Group transferred its legal responsibility to guarantee the existing loans (i.e., existing and future defaults) to Nanfeng Guarantee and China Taiping. The Group agreed to pay the balance of the quality assurance fund as of August 25, 2016 of RMB287 million from its own special account to a depository account set up by Nanfeng Guarantee and supervised by China Taiping. For all new loans facilitated, the borrowers paid the quality assurance fund to Nanfeng Guarantee to manage as part of the guarantee fund reserve going forward. A separate insurance policy was entered into by each borrower and the insurance company (i.e., China Taiping), where the insurance company charged an insurance premium to the borrower to cover additional default risks. Nanfeng Guarantee used the quality assurance fund in the depository account to compensate the defaulted loans. China Taiping will not cover the repayment until the balance of the depository account at the depository bank becomes insufficient. As a result, the Group no longer has a legal obligation to make compensation payments to investors for defaults (both incurred and future) related to its existing loan portfolio as well as loans originated subsequent to August 25, 2016. In September 2017, the Group launched an enhanced investors’ protection plan with China Taiping and Nanfeng Guarantee. For loans with terms of 12 months or less, the borrower signed a “Loan Performance Guarantee Insurance Policy” with China Taiping and paid an insurance premium to China Taiping. In the event that default of the insured loan happens, China Taiping will repay the outstanding principal and the interest to the investors. For loans over 12 months, and for loans with terms of 12 months or less but not covered by China Taiping’s insurance protection, the borrower signed a “Confirmation to Participation in Guarantee Plan” and Nanfeng Guarantee provided the guarantee service. The borrowers pay the guarantee fee to Nanfeng Guarantee, which will be deposited in the guarantee fund depository account set up by Nanfeng Guarantee. The Group and Nanfeng Guarantee will determine the guarantee fund rate charged to borrowers based on the credit characteristics of the borrower as well as the underlying loan characteristics. If default of any loan protected by Nanfeng Guarantee happens, Nanfeng Guarantee will withdraw the funds from the guarantee fund reserve account to repay the investor within the fund’s balance as the upper limit. In January 2018, the Group announced new updates to the arrangements regarding loans with terms of more than 12 months. The borrower signs a guarantee contract with Guangdong Success Finance Guarantee Company Limited (“Guangdong Success”). According to the contract, when the borrower defaults and, if the balance of the guarantee fund reserve account is insufficient to cover the unpaid amounts, Guangdong Success will make additional repayment with an upper limit of a cap of five times the guarantee fee paid by the borrower. For loans with the terms of 12 months or less, the borrower pays the insurance premium and signs a “Loan Performance Guarantee Insurance Policy” with either China Taiping or PICC with whom the Group began to collaborate in March 2018. The loans under China Taiping’s insurance protection obligation were all due by August 15, 2019; however, China Taiping’s insurance protection obligation has not been completely fulfilled as of the date of this annual report due to the ongoing insurance claim and settlement process. PICC has provided insurance protection to all the new loans with terms of no more than 12 months that have been originated since May 2018 and covered by the insurance protection plan. Since November 2019, new loans with terms of no more than 12 months are no longer covered by PICC’s investors protection plan. However, as of the date of this annual report, PICC’s insurance protection obligation will continue for loans originated before November 2019 that were subject to PICC’s insurance protection plan. Furthermore, Guangdong Success no longer provides guarantee protection on new loans facilitated after February 2020; however, Guangdong Success’ obligation with respect to loans facilitated before February 2020 has not been completely fulfilled as of the date of this annual report. Since February 2020, the Group began to collaborate with Zhongtian Caizhi Financing Guarantee Co., Ltd. (“Zhongtian Guarantee”), an independent third party. For all the new loans originated since February 2020, borrowers are required to make contributions to the depository account set up by Zhongtian Guarantee. If a loan is past due for a certain period, Zhongtian Guarantee will use the cash available in the depository account to repay the investors up to the total amount of principal and the accrued interests. |
Fair value | Fair value Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Authoritative literature provides a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: · Level — · Level — · Level — ’ The carrying amounts of the Group’s financial instruments approximate their fair values because of their short-term nature. The Group’s financial instruments include cash, accounts receivable, notes receivable, amount due from related parties, amount due to related parties, deferred revenues, and accrued expenses and other liabilities. | Fair value Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Authoritative literature provides a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: ● Level 1 - inputs are based upon unadjusted quoted prices for identical assets or liabilities traded in active markets. ● Level 2 - inputs are based upon quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3 - inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based valuation techniques that include option pricing models, discounted cash flow models, and similar techniques. The carrying amounts of the Group’s financial instruments approximate their fair values because of their short-term nature. The Group’s financial instruments include cash, accounts receivable, notes receivable, amount due from related parties, amount due to related parties, deferred revenues, and accrued expenses and other liabilities. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents represent cash on hand, demand deposits and highly liquid investments placed with banks or other financial institutions, which have original maturities less than three months. The Group considers all highly liquid investments with stated maturity dates of three months or less from the date of purchase to be cash equivalents. | Cash and cash equivalents Cash and cash equivalents represent cash on hand, demand deposits and highly liquid investments placed with banks or other financial institutions, which have original maturities less than three months. The Group considers all highly liquid investments with stated maturity dates of three months or less from the date of purchase to be cash equivalents. |
Restricted cash | Restricted cash A subsidiary of the Group receives funds from investors for the purpose of buying or selling securities on behalf of its customers. The funds are deposited in a bank account restricted only for the use of purchasing securities on behalf of the investors and the use of the funds within this account are monitored by the bank. Such bank balance represents an asset of the Group for the amounts due to customers for the segregated bank balance held and payable to customers on demand. A corresponding payable to customers is recorded upon receipt of the cash from the customer. As of December 31,2020 and June 30,2021, the Group had restricted bank deposits of RMB390,702 and RMB376,796, respectively. | Restricted cash A subsidiary of the Group receives funds from investors for the purpose of buying or selling securities on behalf of its customers. The funds are deposited in a bank account restricted only for the use of purchasing securities on behalf of the investors and the use of the funds within this account are monitored by the bank. Such bank balance represents an asset of the Group for the amounts due to customers for the segregated bank balance held and payable to customers on demand. A corresponding payable to customers is recorded upon receipt of the cash from the customer. As of December 31, 2019 and 2020, the Group had restricted bank deposits of RMB125,437 and RMB390,702, respectively. |
Term deposits | Term deposits Term deposits consist of deposits placed with financial institutions with an original maturity of greater than three months and less than one year. As of December 31 2020 and June 30,2021, the Group had term deposits of RMB133,761 and RMB102,408, respectively. | Term deposits Term deposits consist of deposits placed with financial institutions with an original maturity of greater than three months and less than one year. As of December 31, 2019 and 2020, the Group had term deposits of RMB24,000 and RMB133,761, respectively. |
Investment in marketable securities | Investment in marketable securities Investment in marketable securities consist of stocks placed with securities. As of December 31, 2020 and June 30, 2021, the Group had investment in marketable securities of nil and RMB206,272, respectively. | |
Loan receivables | Loan receivables Loan receivables are measured at amortized cost with interest accrued based on the contract rate. The Group evaluates the credit risk associated with the loans, and estimates the cash flow expected to be collected over the lives of loans on an individual basis based on the Group’s past experiences, the borrowers’ financial position, their financial performance and their ability to continue to generate sufficient cash flows. A valuation allowance will be established for the loans unable to collect. Provision for uncollectable loans was recorded in the amount of RMB 315,205 and RMB 986 for the year ended December 31, 2020 and for the six months ended June 30,2021, respectively, based on the results of the assessment. | Loan receivables Loan receivables are measured at amortized cost with interest accrued based on the contract rate. The Group evaluates the credit risk associated with the loans, and estimates the cash flow expected to be collected over the lives of loans on an individual basis based on the Group’s past experiences, the borrowers’ financial position, their financial performance and their ability to continue to generate sufficient cash flows. A valuation allowance will be established for the loans unable to collect. Provision for uncollectable loans was recorded in the amount of RMB649,771 and RMB315,205 for the year ended December 31, 2019 and 2020, respectively, based on the results of the assessment. |
Allowance for doubtful accounts | Allowance for doubtful accounts Accounts receivable, other receivables and loan receivables are stated at the historical carrying amount net of write-offs and allowance for doubtful accounts. The Group continuously monitors collections from its borrowers and maintains an allowance for doubtful accounts based on various factors, including aging, historical collection data, specific collection issues that have been identified, borrower concentration, general economic conditions and other factors surrounding the credit risk of specific borrowers. Uncollectible receivables are written off when a settlement is reached for an amount that is less than the outstanding historical balance or when the Group has determined it is probable that the balance will not be collected. The movement of the allowance for doubtful accounts is as follows: Accounts Other Loans receivable receivables receivable Total RMB RMB RMB RMB Balance at December 31, 2020 1,446,994 17,396 329,364 1,793,754 Provision for doubtful accounts 39,925 3,813 986 44,724 Reversal — — — — Write-off — (14,279) (273,884) (288,163) Balance at June 30, 2021 1,486,919 6,930 56,466 1,550,315 Refer to Note 4 Loan Receivables for further information on allowance for loan receivables. | Allowance for doubtful accounts Accounts receivable, other receivables and loan receivables are stated at the historical carrying amount net of write-offs and allowance for doubtful accounts. The Group continuously monitors collections from its borrowers and maintains an allowance for doubtful accounts based on various factors, including aging, historical collection data, specific collection issues that have been identified, borrower concentration, general economic conditions and other factors surrounding the credit risk of specific borrowers. Uncollectible receivables are written off when a settlement is reached for an amount that is less than the outstanding historical balance or when the Group has determined it is probable that the balance will not be collected. The movement of the allowance for doubtful accounts is as follows: Accounts Other Loans receivable receivables receivable Total RMB RMB RMB RMB Balance at December 31, 2017 29,611 5,010 — 34,621 Reversal (2,966) — — (2,966) Write-off (25,592) — — (25,592) Balance at December 31, 2018 1,053 5,010 — 6,063 Provision for doubtful accounts (i) 1,447,582 36,803 649,771 2,134,156 Reversal — (329) — (329) Write-off (15,186) (4,711) (34,179) (54,076) Balance at December 31, 2019 1,433,449 36,773 615,592 2,085,814 Adoption of new accounting standard (ii) — 3,117 8,420 11,537 Provision for doubtful accounts 13,545 — 315,205 328,750 Write-off — (22,494) (609,853) (609,853) Balance at December 31, 2020 1,446,994 17,396 329,364 1,793,754 (i) In 2019, the provision for doubtful accounts mainly related to accounts receivable with PICC, who was responsible for the collection of the Group’s service fees under the Group’s direct lending program. In November 2019, PICC no longer made payments for the outstanding receivables and the Group has performed an analysis on the collectability of the receivables and recognized a full provision for the outstanding account balance in the amount RMB 1,432,312. The Group has commenced legal proceedings for the collection of this outstanding amount due from PICC. See Note 21 for disclosure related to the status of the legal proceeding commenced against PICC in May 2021. Refer to Note 4 Loan Receivables for further information on allowance for loan receivables. (ii) Due to the adoption of ASU 2016-13, the Group recognized a total of RMB11,537 pre-tax increase to the allowance for doubtful accounts on accounts receivable, other receivables and loans receivable. The Group determined that all of the receivables share similar risk characteristics. The Group monitors the credit exposure on an ongoing basis and assess whether assets in the pool continue to display similar risk characteristics. |
Business Combinations | Business Combinations The Group accounts for its business combinations using the acquisition method of accounting in accordance with ASC topic 805 (“ASC 805”), Business Combinations The determination and allocation of fair values to the identifiable assets acquired, liabilities assumed and non-controlling interests is based on various assumptions and valuation methodologies requiring considerable judgment from management. The most significant variables in these valuations are discount rates, terminal values, the number of years on which to base the cash flow projections, as well as the assumptions and estimates used to determine the cash inflows and outflows. The Group determines discount rates to be used based on the risk inherent in the related activity’s current business model and industry comparisons. Terminal values are based on the expected life of assets, forecasted life cycle and forecasted cash flows over that period. | Business Combinations The Group accounts for its business combinations using the acquisition method of accounting in accordance with ASC topic 805 (“ASC 805”), Business Combinations The determination and allocation of fair values to the identifiable assets acquired, liabilities assumed and non-controlling interests is based on various assumptions and valuation methodologies requiring considerable judgment from management. The most significant variables in these valuations are discount rates, terminal values, the number of years on which to base the cash flow projections, as well as the assumptions and estimates used to determine the cash inflows and outflows. The Group determines discount rates to be used based on the risk inherent in the related activity’s current business model and industry comparisons. Terminal values are based on the expected life of assets, forecasted life cycle and forecasted cash flows over that period. |
Long-term investments | Long-term investments The Group’s long-term investments consist of equity securities without readily determinable fair value, equity method investments, held-to-maturity and available-for-sale investment. a. Equity securities without readily determinable fair value Historically, for investee companies over which the Group did not have significant influence and a controlling financial interest, the Group accounted for these as cost method investments under ASC 325-20. In January, 2018, the Group adopted Accounting Standards Update (“ASU”) 2016-01, Financial Instruments—Recognition and Measurement of Financial Assets and Financial Liabilities b. Equity method investments Investee companies over which the Group has the ability to exercise significant influence, but does not have a controlling interest, are accounted for using the equity method. Significant influence is generally considered to exist when the Group has an ownership interest in the voting stock of the investee between 20% and 50%. Other factors, such as representation on the investee’s board of directors, voting rights and the impact of commercial arrangements, are also considered in determining whether the equity method of accounting is appropriate. The Group also uses the equity method of accounting for its investments in variable interest entity where the Group is not considered the primary beneficiary but holds significant influences. Under the equity method of accounting, the Group’s share of the earnings or losses of the investee company, impairments, and other adjustments required by the equity method are reflected in “Earnings (loss) in equity method investments, net” in the consolidated statements of operations. An impairment charge is recorded if the carrying amount of the investment exceeds its fair value and this condition is determined to be other-than temporary. The Group estimates the fair value of the investee company based on comparable quoted price for similar investment in active market, if applicable, or discounted cash flow approach which requires significant judgments, including the estimate of future cash flows, which is dependent on internal forecasts, the estimate of long term growth rate of a company’s business, the estimate of the useful life over which cash flows will occur, and the determination of the weighted average cost of capital. The impairment losses on its equity method investment are RMB30,322 and nil during the six months ended June 30, 2020 and 2021, respectively. c. Held-to-maturity and available-for-sale investments Investments are classified as held-to-maturity when the Group has the positive intent and ability to hold the debt security to maturity, and are recorded at amortized cost. As of December 31, 2020 and June 30,2021, the balances of held-to-maturity securities were RMB33,079 and RMB33,079, respectively. For investments in investees’ stocks which are determined to be debt securities, the Group accounts for it as long-term available-for-sale investments when they are not classified as either trading or held-to-maturity investments. The available-for-sale investments are carried at its fair values and the unrealized gains or losses from the changes in fair values are included in accumulated other comprehensive income. The Group reviews its investment for other-than-temporary impairment (“OTTI”) based on the specific identification method. The Group considers available quantitative and qualitative evidence in evaluating potential impairment of its investments. If the cost of an investment exceeds the investment’s fair value, the Group considers, among other factors, general market conditions, government economic plans, the duration and the extent to which the fair value of the investment is less than the cost, the Group’s intent and ability to hold the investment, and the financial condition and near-term prospects of the issuers. If there is OTTI on debt securities, the Group separates the amount of the OTTI into the amount that is credit related (credit loss component) and the amount due to all other factors. The credit loss component is recognized in earnings, which represents the difference between a security’s amortized cost basis and the discounted present value of expected future cash flows. The amount due to other factors is recognized in other comprehensive income if the entity neither intends to sell and will not more likely than not be required to sell the security before recovery. The difference between the amortized cost basis and the cash flows expected to be collected is accreted as interest income. The Group recorded impairment losses on its held-to-maturity and available-for-sale investments of nil during the six months ended June 30, 2020 and 2021, respectively. | Long-term investments The Group’s long-term investments consist of equity securities without readily determinable fair value, equity method investments, held-to-maturity and available-for-sale investment. a. Equity securities without readily determinable fair value Historically, for investee companies over which the Group did not have significant influence and a controlling financial interest, the Group accounted for these as cost method investments under ASC 325-20. In January, 2018, the Group adopted Accounting Standards Update (“ASU”) 2016-01, Financial Instruments - Recognition and Measurement of Financial Assets and Financial Liabilities b. Equity method investments Investee companies over which the Group has the ability to exercise significant influence, but does not have a controlling interest, are accounted for using the equity method. Significant influence is generally considered to exist when the Group has an ownership interest in the voting stock of the investee between 20% and 50%. Other factors, such as representation on the investee’s board of directors, voting rights and the impact of commercial arrangements, are also considered in determining whether the equity method of accounting is appropriate. The Group also uses the equity method of accounting for its investments in variable interest entity where the Group is not considered the primary beneficiary but holds significant influences. Under the equity method of accounting, the Group’s share of the earnings or losses of the investee company, impairments, and other adjustments required by the equity method are reflected in “Earnings (loss) in equity method investments, net” in the consolidated statements of operations. An impairment charge is recorded if the carrying amount of the investment exceeds its fair value and this condition is determined to be other-than temporary. The Group estimates the fair value of the investee company based on comparable quoted price for similar investment in active market, if applicable, or discounted cash flow approach which requires significant judgments, including the estimate of future cash flows, which is dependent on internal forecasts, the estimate of long term growth rate of a company’s business, the estimate of the useful life over which cash flows will occur, and the determination of the weighted average cost of capital. The impairment losses on its equity method investment are nil, RMB22,830 and RMB179,193 during the years ended December 31, 2018, 2019 and 2020, respectively. c. Held-to-maturity and available-for-sale investments Investments are classified as held-to-maturity when the Group has the positive intent and ability to hold the debt security to maturity, and are recorded at amortized cost. As of December 31, 2019 and 2020, the balances of held-to-maturity securities were RMB15,200 and RMB33,079, respectively. For investments in investees’ stocks which are determined to be debt securities, the Group accounts for it as long-term available-for-sale investments when they are not classified as either trading or held-to-maturity investments. The available-for-sale investments are carried at its fair values and the unrealized gains or losses from the changes in fair values are included in accumulated other comprehensive income. The Group reviews its investment for other-than-temporary impairment (“OTTI”) based on the specific identification method. The Group considers available quantitative and qualitative evidence in evaluating potential impairment of its investments. If the cost of an investment exceeds the investment’s fair value, the Group considers, among other factors, general market conditions, government economic plans, the duration and the extent to which the fair value of the investment is less than the cost, the Group’s intent and ability to hold the investment, and the financial condition and near-term prospects of the issuers. If there is OTTI on debt securities, the Group separates the amount of the OTTI into the amount that is credit related (credit loss component) and the amount due to all other factors. The credit loss component is recognized in earnings, which represents the difference between a security’s amortized cost basis and the discounted present value of expected future cash flows. The amount due to other factors is recognized in other comprehensive income if the entity neither intends to sell and will not more likely than not be required to sell the security before recovery. The difference between the amortized cost basis and the cash flows expected to be collected is accreted as interest income. The Group recorded impairment losses on its held-to-maturity and available-for-sale investments during the years ended December 31, 2018, 2019 and 2020 of nil, nil, RMB1,221, respectively. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price of acquired businesses over the estimated fair value assigned to the individual assets acquired and liabilities assumed. Goodwill is not depreciated or amortized but is tested for impairment on an annual basis as of December 31, and in between annual tests when an event occurs or circumstances change that could indicate that the asset might be impaired. Application of goodwill impairment test requires management judgement, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value to each reporting unit. The judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit. Prior to January 1, 2019, the Group performed a two-step test to determine the amount, if any, of goodwill impairment. In Step 1, the Group compared the fair value of the reporting unit with its carrying amount, including goodwill. If the carrying amount of the reporting unit exceeded its fair value, the Group performed Step 2 and compared the implied fair value of goodwill with the carrying amount of that goodwill for that reporting unit. An impairment charge equal to the amount by which the carrying amount of goodwill for the reporting unit exceeded the implied fair value of that goodwill was recorded, limited to the amount of goodwill allocated to that reporting unit. Starting from January 1, 2019, the Group early adopted ASU 2017-04. A reporting unit is identified as a component for which discrete financial information is available and is regularly reviewed by management. The impairment test is performed as of year-end or if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount by comparing the fair value of a reporting unit with its carrying value. If the fair value of the reporting unit exceeds its carrying amount, goodwill is not impaired and no further testing is required. If the fair value of the reporting unit is less than the carrying value, an impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Based on the Group’s impairment assessment, the Group recorded goodwill impairment of RMB50,291 for the six months ended June 30,2020 and nil for the six months ended June 30,2021. | Goodwill Goodwill represents the excess of the purchase price of acquired businesses over the estimated fair value assigned to the individual assets acquired and liabilities assumed. Goodwill is not depreciated or amortized but is tested for impairment on an annual basis as of December 31, and in between annual tests when an event occurs or circumstances change that could indicate that the asset might be impaired. Application of goodwill impairment test requires management judgement, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value to each reporting unit. The judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit. Prior to January 1, 2019, the Group performed a two-step test to determine the amount, if any, of goodwill impairment. In Step 1, the Group compared the fair value of the reporting unit with its carrying amount, including goodwill. If the carrying amount of the reporting unit exceeded its fair value, the Group performed Step 2 and compared the implied fair value of goodwill with the carrying amount of that goodwill for that reporting unit. An impairment charge equal to the amount by which the carrying amount of goodwill for the reporting unit exceeded the implied fair value of that goodwill was recorded, limited to the amount of goodwill allocated to that reporting unit. Starting from January 1, 2019, the Group early adopted ASU 2017-04. A reporting unit is identified as a component for which discrete financial information is available and is regularly reviewed by management. The impairment test is performed as of year-end or if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount by comparing the fair value of a reporting unit with its carrying value. If the fair value of the reporting unit exceeds its carrying amount, goodwill is not impaired and no further testing is required. If the fair value of the reporting unit is less than the carrying value, an impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Based on the Group’s impairment assessment, the Group recorded goodwill impairment of nil, RMB6,191 and RMB50,291 for the years ended December 31, 2018, 2019 and 2020, respectively. |
Property, equipment and software, net | Property, equipment and software, net Property, equipment and software consists of computer and transmission equipment, furniture and office equipment, office buildings, software, and leasehold improvements, which are recorded at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated on a straight-line basis over the following estimated useful lives: Computer and electronic equipment 3 years Furniture and office equipment 5 years Office Building 20 years License 20 years Software 5 years Leasehold improvements Over the shorter of the remaining lease term or estimated useful lives | Property, equipment and software, net Property, equipment and software consists of computer and transmission equipment, furniture and office equipment, office buildings, software, and leasehold improvements, which are recorded at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated on a straight-line basis over the following estimated useful lives: Computer and electronic equipment 3 years Furniture and office equipment 5 years Office Building 20 years License 20 years Software 5 years Leasehold improvements Over the shorter of the remaining lease term or estimated useful lives |
Origination and servicing expense | Origination and servicing expense Origination and servicing expense consists primarily of variable expenses and vendor costs, including costs related to credit assessment, customer and system support, payment processing services and collection associated with facilitating and servicing loan. | Origination and servicing expense Origination and servicing expense consists primarily of variable expenses and vendor costs, including costs related to credit assessment, customer and system support, payment processing services and collection associated with facilitating and servicing loan. |
Government subsidy income | Government subsidy income The Group receives government grants and subsidies in the PRC 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 non-operating income in the consolidated statement of operations and comprehensive income (loss) in the period the cash is received. The government grants received by the Group were RMB889 for the six months ended June 30,2020 and RMB208 for the six months ended June 30,2021,respectively. | Government subsidy income The Group receives government grants and subsidies in the PRC 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 non-operating income in the consolidated statement of operations and comprehensive income (loss) in the period the cash is received. The government grants received by the Group were RMB23,364, RMB33,665 and RMB27,440 for the years ended December 31, 2018, 2019 and 2020, respectively. |
Leases | Leases Before January 1, 2019, the Group applied ASC Topic 840 (“ASC 840”), Leases Leases The Group leases certain office premises in different cities in the PRC and overseas under operating leases. The Group determines whether an arrangement constitutes a lease and records lease liabilities and right-of-use assets on its consolidated balance sheets at the lease commencement. The Group measures its lease liabilities based on the present value of the total lease payments not yet paid discounted based on the more readily determinable of the rate implicit in the lease or its incremental borrowing rate, which is the estimated rate the Group would be required to pay for a collateralized borrowing equal to the total lease payments over the term of the lease. The Group estimates its incremental borrowing rate based on an analysis of corporate debt of companies with credit and financial profiles similar to its own. The Group measures right-of-use assets based on the corresponding lease liability adjusted for payments made to the lessor at or before the commencement date, and initial direct costs it incurs under the lease. The Group begins recognizing rent expense when the lessor makes the underlying asset available for use by the Group. The Group’s leases have remaining lease terms of up to four years, some of which include options to extend the leases for an additional period which has to be agreed with the lessors based on mutual negotiation. After considering the factors that create an economic incentive, the Group did not include renewal option periods in the lease term for which it is not reasonably certain to exercise. For short-term leases of 12 months or less, the Group records rent expense in its consolidated statements of operations on a straight-line basis over the lease term. | Leases Before January 1, 2019, the Group applied ASC Topic 840 (“ASC 840”), Leases Leases The Group leases certain office premises in different cities in the PRC and overseas under operating leases. The Group determines whether an arrangement constitutes a lease and records lease liabilities and right-of-use assets on its consolidated balance sheets at the lease commencement. The Group measures its lease liabilities based on the present value of the total lease payments not yet paid discounted based on the more readily determinable of the rate implicit in the lease or its incremental borrowing rate, which is the estimated rate the Group would be required to pay for a collateralized borrowing equal to the total lease payments over the term of the lease. The Group estimates its incremental borrowing rate based on an analysis of corporate debt of companies with credit and financial profiles similar to its own. The Group measures right-of-use assets based on the corresponding lease liability adjusted for payments made to the lessor at or before the commencement date, and initial direct costs it incurs under the lease. The Group begins recognizing rent expense when the lessor makes the underlying asset available for use by the Group. The Group’s leases have remaining lease terms of up to four years, some of which include options to extend the leases for an additional period which has to be agreed with the lessors based on mutual negotiation. After considering the factors that create an economic incentive, the Group did not include renewal option periods in the lease term for which it is not reasonably certain to exercise. For short-term leases of 12 months or less, the Group records rent expense in its consolidated statements of operations on a straight-line basis over the lease term. |
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 asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. 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, management consider all positive and negative evidence, including future reversals of projected future taxable income and results of recent operations. Net deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more-likely-than-not that a portion of or all of the net deferred tax asset will not be realized. 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 statements of operation and comprehensive income (loss). The Group did not have any significant unrecognized uncertain tax positions as of and for the six month ended June 30,2020 and 2021 | 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 asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. 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, management consider all positive and negative evidence, including future reversals of projected future taxable income and results of recent operations. Net deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more-likely-than-not that a portion of or all of the net deferred tax asset will not be realized. 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 statements of operation and comprehensive income (loss). The Group did not have any significant unrecognized uncertain tax positions as of and for the years ended December 31, 2018, 2019 and 2020. |
Share-based compensation | Share-based compensation Share-based payment transactions with employees and managements, such as share options, are measured based on the grant date fair value of the equity instrument. The Group has elected to recognize compensation expenses using the straight-line method for all employee equity awards granted with graded vesting provided that the amount of compensation cost recognized at any date is at least equal to the portion of the grant-date value of the options that are vested at that date, over the requisite service period of the award, which is generally the vesting period of the award. Compensation expenses for awards with performance conditions is recognized when it is probable that the performance condition will be achieved. The Group elects to recognize forfeitures when they occur. | Share-based compensation Share-based payment transactions with employees and managements, such as share options, are measured based on the grant date fair value of the equity instrument. The Group has elected to recognize compensation expenses using the straight-line method for all employee equity awards granted with graded vesting provided that the amount of compensation cost recognized at any date is at least equal to the portion of the grant-date value of the options that are vested at that date, over the requisite service period of the award, which is generally the vesting period of the award. Compensation expenses for awards with performance conditions is recognized when it is probable that the performance condition will be achieved. The Group elects to recognize forfeitures when they occur. |
Net income (loss) per ordinary share | Net income (loss) per ordinary share Basic net income (loss) per ordinary share is computed by dividing net income (loss) attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. The Group’s convertible redeemable preferred shares are participating securities as they participate in undistributed earnings on an as-if converted basis. Accordingly, the Group uses the two-class method, whereby undistributed net income is allocated on a pro rata basis to the ordinary shares and preferred shares to the extent that each class may share income in the year; whereas the undistributed net loss for the year is allocated to ordinary shares only because the convertible redeemable participating preferred shares are not contractually obligated to share the loss. Diluted net income per ordinary share reflects the potential dilution that would occur if securities were exercised or converted into ordinary shares. The Group had participating convertible redeemable preferred shares and share options which could potentially dilute basic net income per ordinary share in the future. Diluted net income per ordinary share is computed using the two-class method or the as-if-converted method, whichever is more dilutive. When the Group has a loss, the dilutive effect of these securities is not included as they would be anti-dilutive. | Net income (loss) per ordinary share Basic net income (loss) per ordinary share is computed by dividing net income (loss) attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. The Group’s convertible redeemable preferred shares are participating securities as they participate in undistributed earnings on an as-if converted basis. Accordingly, the Group uses the two-class method, whereby undistributed net income is allocated on a pro rata basis to the ordinary shares and preferred shares to the extent that each class may share income in the year; whereas the undistributed net loss for the year is allocated to ordinary shares only because the convertible redeemable participating preferred shares are not contractually obligated to share the loss. Diluted net income per ordinary share reflects the potential dilution that would occur if securities were exercised or converted into ordinary shares. The Group had participating convertible redeemable preferred shares and share options which could potentially dilute basic net income per ordinary share in the future. Diluted net income per ordinary share is computed using the two-class method or the as-if-converted method, whichever is more dilutive. When the Group has a loss, the dilutive effect of these securities is not included as they would be anti-dilutive. |
Foreign currency translation | Foreign currency translation The Group’s reporting currency is RMB. The functional currency of the Company is the United States dollar (“US$”). The functional currency of the Group’s entities in Hong Kong is Hong Kong dollars. The functional currency of the Group’s subsidiaries and VIEs in the PRC is Renminbi (“RMB”). Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency at the rates of exchange ruling at the balance sheet date. Transactions in currencies other than the functional currency during the year are converted into functional currency at the applicable rates of exchange prevailing when the transactions occurred. Transaction gains and losses are recognized in the consolidated statements of operations. Assets and liabilities are translated from each entity’s functional currency to the reporting currency using the exchange rates in effect on the balance sheet date. Equity amounts are translated at historical exchange rates. Revenues, expenses, gains and losses are translated using the average rates for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component in the consolidated statements of comprehensive income (loss). | Foreign currency translation The Group’s reporting currency is RMB. The functional currency of the Company is the United States dollar (“US$”). The functional currency of the Group’s entities in Hong Kong is Hong Kong dollars. The functional currency of the Group’s subsidiaries and VIEs in the PRC is Renminbi (“RMB”). Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency at the rates of exchange ruling at the balance sheet date. Transactions in currencies other than the functional currency during the year are converted into functional currency at the applicable rates of exchange prevailing when the transactions occurred. Transaction gains and losses are recognized in the consolidated statements of operations. Assets and liabilities are translated from each entity’s functional currency to the reporting currency using the exchange rates in effect on the balance sheet date. Equity amounts are translated at historical exchange rates. Revenues, expenses, gains and losses are translated using the average rates for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component in the consolidated statements of comprehensive income (loss). |
Convenience translation | Convenience translation Translations of amounts from RMB into US$ are presented solely for the convenience of the reader and were calculated at the rate of US$1.00 = RMB6.4566 on June 30, 2021, the last business day for the six months ended June 30, 2021, representing the exchange rate published by the Federal Reserve Board. No representation is intended to imply that the RMB amounts could have been, or could be, converted, realized or settled into US$ at such rate, or at any other rate. | Convenience translation Translations of amounts from RMB into US$ are presented solely for the convenience of the reader and were calculated at the rate of US$1.00 = RMB6.4566 on June 30, 2021, the last business day for the six months ended June 30, 2021, representing the exchange rate published by the Federal Reserve Board. No representation is intended to imply that the RMB amounts could have been, or could be, converted, realized or settled into US$ at such rate, or at any other rate. |
Significant risks and uncertainties | Significant risks and uncertainties i) RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into foreign currencies. The value of RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. The cash and cash equivalents of the Group included aggregate amounts of RMB 1,531,340 and RMB 1,302,483 which were denominated in RMB at December 31, 2020 and June 30,2021 respectively, representing 56.16% and 69.38% of the cash and cash equivalents at December 31,2020 and June 30,2021 respectively. ii) Concentration of credit risk Financial instrument that potentially expose the Group to significant concentration of credit risk primarily consist of cash and cash equivalents, accounts receivable, loans receivable, prepaid expenses and other assets. As of December 31, 2020 and June 30,2021 the majority of the Group’s cash and cash equivalents were deposited in financial institutions located in the PRC. Accounts receivable are typically unsecured and are derived from revenue earned from customers in the PRC. The risk with respect to accounts receivable is mitigated by credit evaluations the Group performs on its customers and its ongoing monitoring process of outstanding balances. The Group made loans to third-party companies under loan agreements and is exposed to credit risk in case of defaults by the debtors. The maximum amount of loss due to credit risk is limited to the total outstanding principal plus accrued interest on the balance sheets dates. As of December 31, 2020 and June 30,2021, there was RMB267,383 and RMB202,130 of loans receivable outstanding, respectively. The Group evaluates and monitors the credit worthiness of the debtors and records an allowance for uncollectible accounts based on an assessment of the payment history, the existence of collateral, current information and events, and the facts and circumstances around the credit risk of the debtor. There are no revenues from customers which individually represented greater than 10% of the total net revenues for the six months ended June 30,2020 and 2021 respectively. There are no customers of the Group that accounted for greater than 10% of the Group’s carrying amount of accounts receivable as of June 30,2021. | Significant risks and uncertainties i) Foreign currency risk RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into foreign currencies. The value of RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. The cash and cash equivalents of the Group included aggregate amounts of RMB3,251,899 and RMB 1,531,340 which were denominated in RMB at December 31, 2019 and 2020, respectively, representing 69.43% and 56.16% of the cash and cash equivalents at December 31, 2019 and 2020, respectively. ii) Concentration of credit risk Financial instrument that potentially expose the Group to significant concentration of credit risk primarily consist of cash and cash equivalents, accounts receivable, loans receivable, prepaid expenses and other assets. As of December 31, 2019 and 2020, the majority of the Group’s cash and cash equivalents were deposited in financial institutions located in the PRC. Accounts receivable are typically unsecured and are derived from revenue earned from customers in the PRC. The risk with respect to accounts receivable is mitigated by credit evaluations the Group performs on its customers and its ongoing monitoring process of outstanding balances. The Group made loans to third-party companies under loan agreements and is exposed to credit risk in case of defaults by the debtors. The maximum amount of loss due to credit risk is limited to the total outstanding principal plus accrued interest on the balance sheets dates. As of December 31, 2020, and June 30, 2021, there was RMB778,480 and RMB 267,383 of loans receivable outstanding, respectively. The Group evaluates and monitors the credit worthiness of the debtors and records an allowance for uncollectible accounts based on an assessment of the payment history, the existence of collateral, current information and events, and the facts and circumstances around the credit risk of the debtor. There are no revenues from customers which individually represented greater than 10% of the total net revenues for the year ended December 31, 2018, 2019 and 2020. As of December 31, 2019, receivables due from PICC for service fees under the direct lending program accounted for approximately 83.54% of the Group’s accounts receivable balance. There are no customers of the Group that accounted for greater than 10% of the Group’s carrying amount of accounts receivable as of December 31, 2020. |
Recent accounting pronouncements not yet adopted | Recent accounting pronouncements not yet adopted In January 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2020-01, Investments—Equity Securities The Group does not believe that other recently issued accounting standards, if currently adopted, will have a material effect on the Group’s consolidated financial statements. | Recent accounting pronouncements not yet adopted In January 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2020-01, Investments - Equity Securities The Group does not believe that other recently issued accounting standards, if currently adopted, will have a material effect on the Group's consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOU_20
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Schedule of group's consolidated financial statements after the elimination of intercompany balances and transactions | As of December 31, As of June 30, 2020 2021 RMB RMB Assets: Cash and cash equivalents 1,501,733 1,293,615 Term deposits 135,000 105,000 Investment in marketable securities — 77,109 Accounts receivable, net 9,888 45,957 Other receivables, net 68,742 144,449 Loan receivables, net 221,200 163,200 Prepaid expenses and other assets 740,959 837,041 Contracts assets, net 10,374 6,494 Long‑term investments, net 491,510 489,727 Operating lease right-of-use assets, net 18,611 16,130 Property, equipment and software, net 51,701 39,507 Goodwill, net 72,304 72,304 Intangible assets, net 40,187 38,700 Total assets 3,362,209 3,329,233 Liabilities: Deferred revenue 81,246 9,904 Payroll and welfare payable 29,152 12,614 Income taxes payable 224,533 238,179 Accrued expenses and other liabilities 238,170 274,219 Operating lease liabilities 19,100 15,408 Amounts due to related parties 24,146 23,967 Deferred tax liabilities 5,742 5,392 Total liabilities 622,089 579,683 For the six months ended June 30, 2020 2021 RMB RMB Net revenues 787,925 332,913 Net income (loss) (406,710) 10,552 For the six months ended June 30, 2020 2021 RMB RMB Net cash provided by (used in) operating activities (175,504) (228,263) Net cash used in investing activities (396,186) 20,145 Net cash provided by (used in) financing activities — — | As of December 31, 2019 2020 RMB RMB Assets: Cash and cash equivalents 2,766,981 1,501,733 Term deposits 24,000 135,000 Accounts receivable, net 267,277 9,888 Other receivables, net 81,525 68,742 Loan receivables, net 729,798 221,200 Amounts due from related parties 50,000 — Prepaid expenses and other assets 1,085,197 740,959 Contracts assets, net 24,814 10,374 Long‑term investments, net 293,441 491,510 Operating lease right-of-use assets, net 113,606 18,611 Property, equipment and software, net 95,783 51,701 Goodwill, net 72,224 72,304 Intangible assets, net 45,362 40,187 Deferred tax assets, net 503,078 — Total assets 6,153,086 3,362,209 Liabilities: Deferred revenue 772,340 81,246 Payroll and welfare payable 35,958 29,152 Income taxes payable 303,684 224,533 Accrued expenses and other liabilities 1,056,128 238,170 Operating lease liabilities 119,005 19,100 Amounts due to related parties 29,902 24,146 Deferred tax liabilities 13,200 5,742 Total liabilities 2,330,217 622,089 For the years ended December 31, 2018 2019 2020 RMB RMB RMB Net revenues 5,270,948 4,305,272 1,145,210 Net income (loss) 2,702,469 (1,551,509) (1,479,883) For the years ended December 31, 2018 2019 2020 RMB RMB RMB Net cash provided by (used in) operating activities 2,906,094 (439,357) (753,416) Net cash used in investing activities (803,155) (1,315,875) (511,832) Net cash provided by (used in) financing activities 1,000 (5,188) — |
Schedule of disaggregation by types of revenues and revenue by product offerings | Loan Post facilitation origination Technical Wealth Other For the six months ended June 30,2020 services services services management revenues Total RMB RMB RMB RMB RMB RMB Online lending platform revenue Online lending information intermediary services revenue Revolving loan products (One Card) 133,743 48,815 — — — 182,558 Non‑revolving loan products Direct lending program revenue 94,049 481,417 — — — 575,466 Other revenue 10,067 62,360 17,979 90,406 Total 227,792 530,232 10,067 62,360 17,979 848,430 Loan Post facilitation origination Technical Wealth Other For the six months ended June 30,2021 services services services management revenues Total RMB RMB RMB RMB RMB RMB Online lending platform revenue Online lending information intermediary services revenue Revolving loan products (One Card) — 68,826 — — — 68,826 Non‑revolving loan products Direct lending program revenue — 9,178 — — — 9,178 Other revenue 164,497 61,362 89,093 314,952 Total — 78,004 164,497 61,362 89,093 392,956 June 30, June 30, 2020 2021 RMB RMB Online Lending platform revenue 758,024 78,004 Technical services 10,067 164,497 Wealth management services 62,360 61,362 Others 17,979 89,093 Total 848,430 392,956 | Loan Post facilitation origination Other 2018 services services revenues Total RMB RMB RMB RMB Online lending platform revenue Online lending information intermediary services revenue Revolving loan products (One Card) 4,728,255 282,057 — 5,010,312 Non‑revolving loan products 186,679 85,218 — 271,897 Direct lending program revenue 45,737 164 — 45,901 Other revenue — — 228,372 228,372 Total 4,960,671 367,439 228,372 5,556,482 Loan Post facilitation origination Other 2019 services services revenues Total RMB RMB RMB RMB Online lending platform revenue Online lending information intermediary services revenue Revolving loan products (One Card) 1,698,133 269,718 — 1,967,851 Non‑revolving loan products 104,611 30,226 — 134,837 Direct lending program revenue 1,675,153 304,788 — 1,979,941 Other revenue — — 342,334 342,334 Total 3,477,897 604,732 342,334 4,424,963 Loan Post facilitation origination Other 2020 services services revenues Total RMB RMB RMB RMB Online lending platform revenue Online lending information intermediary services revenue Revolving loan products (One Card) 26,376 203,748 — 230,124 Non‑revolving loan products 84,485 202,097 — 286,582 Direct lending program revenue 66,286 453,257 — 519,543 Other revenue — — 219,756 219,756 Total 177,147 859,102 219,756 1,256,005 December 31, December 31, December 31, 2018 2019 2020 RMB RMB RMB Loan product revenue 4,930,515 3,590,693 847,576 Wealth management product revenue 471,060 573,355 188,673 Others 154,907 260,915 219,756 Total 5,556,482 4,424,963 1,256,005 |
Schedule of contract assets | December 31, June 30, 2020 2021 RMB RMB Contract assets from loan facilitation services and post origination services 25,123 20,815 Less: Allowance for loss for collectability (14,749) (14,321) Total 10,374 6,494 | December 31, December 31, 2019 2020 RMB RMB Contract assets from loan facilitation services and post origination services 27,079 25,123 Less: Allowance for loss for collectability (2,255) (14,749) Total 24,824 10,374 |
Schedule of movement of allowance for loss for contract assets | December 31, June 30, 2020 2021 RMB RMB Balance at beginning of the year 2,255 14,749 Provision/(Reversal) for doubtful contract assets 18,605 (428) Write-offs (6,111) — Balance at end of the year 14,749 14,321 | December 31, December 31, 2019 2020 RMB RMB Balance at beginning of the year 329 2,255 Provision for doubtful contract assets 14,811 18,605 Write-offs (12,885) (6,111) Balance at end of the year 2,255 14,749 |
Schedule of movement of allowance for credit losses | Accounts Other Loans receivable receivables receivable Total RMB RMB RMB RMB Balance at December 31, 2020 1,446,994 17,396 329,364 1,793,754 Provision for doubtful accounts 39,925 3,813 986 44,724 Reversal — — — — Write-off — (14,279) (273,884) (288,163) Balance at June 30, 2021 1,486,919 6,930 56,466 1,550,315 | Accounts Other Loans receivable receivables receivable Total RMB RMB RMB RMB Balance at December 31, 2017 29,611 5,010 — 34,621 Reversal (2,966) — — (2,966) Write-off (25,592) — — (25,592) Balance at December 31, 2018 1,053 5,010 — 6,063 Provision for doubtful accounts (i) 1,447,582 36,803 649,771 2,134,156 Reversal — (329) — (329) Write-off (15,186) (4,711) (34,179) (54,076) Balance at December 31, 2019 1,433,449 36,773 615,592 2,085,814 Adoption of new accounting standard (ii) — 3,117 8,420 11,537 Provision for doubtful accounts 13,545 — 315,205 328,750 Write-off — (22,494) (609,853) (609,853) Balance at December 31, 2020 1,446,994 17,396 329,364 1,793,754 (i) In 2019, the provision for doubtful accounts mainly related to accounts receivable with PICC, who was responsible for the collection of the Group’s service fees under the Group’s direct lending program. In November 2019, PICC no longer made payments for the outstanding receivables and the Group has performed an analysis on the collectability of the receivables and recognized a full provision for the outstanding account balance in the amount RMB 1,432,312. The Group has commenced legal proceedings for the collection of this outstanding amount due from PICC. See Note 21 for disclosure related to the status of the legal proceeding commenced against PICC in May 2021. Refer to Note 4 Loan Receivables for further information on allowance for loan receivables. (ii) Due to the adoption of ASU 2016-13, the Group recognized a total of RMB11,537 pre-tax increase to the allowance for doubtful accounts on accounts receivable, other receivables and loans receivable. The Group determined that all of the receivables share similar risk characteristics. The Group monitors the credit exposure on an ongoing basis and assess whether assets in the pool continue to display similar risk characteristics. |
Schedule of estimated useful lives of property and equipment | Computer and electronic equipment 3 years Furniture and office equipment 5 years Office Building 20 years License 20 years Software 5 years Leasehold improvements Over the shorter of the remaining lease term or estimated useful lives | Computer and electronic equipment 3 years Furniture and office equipment 5 years Office Building 20 years License 20 years Software 5 years Leasehold improvements Over the shorter of the remaining lease term or estimated useful lives |
LOAN RECEIVABLES, NET (Tables_2
LOAN RECEIVABLES, NET (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
LOAN RECEIVABLES, NET | ||
Schedule of loan receivables | December 31, June 30, 2020 2021 Loan receivables 596,747 258,596 Less: Allowance for doubtful accounts (320,944) (56,466) Less: Adpotion of new accounting standard in the last fiscal year (8,420) — Total 267,383 202,130 | December 31, December 31, 2019 2020 Loan receivables 1,394,072 596,747 Less: Allowance for doubtful accounts (615,592) (320,944) Less: Adoption of new accounting standard — (8,420) Total 778,480 267,383 |
Summary of aging of loans | 1 - 89 days 90 days or Total past past due more past due due Current Total loans December 31, 2020 — 29,500 29,500 567,247 596,747 June 30, 2021 — 16,500 16,500 242,096 258,596 | 1 - 89 days 90 days or Total past past due more past due due Current Total loans December 31, 2019 52,339 21,338 73,677 1,320,395 1,394,072 December 31, 2020 — 29,500 29,500 567,247 596,747 |
PREPAID EXPENSE AND OTHER ASS_5
PREPAID EXPENSE AND OTHER ASSETS (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
PREPAID EXPENSE AND OTHER ASSETS | ||
Summary of prepaid expenses and other assets | December 31, June 30, 2020 2021 Deposits(i) 91,258 81,068 Advances to suppliers 10,607 124,365 Prepaid taxes 338,450 320,408 Prepaid service fee 45,201 11,015 Prepaid investment (ii) 270,996 304,996 Others 37,046 40,313 Less: Adoption of new accounting standard (466) (394) Total 793,092 881,771 (i) Deposits mainly include rent deposits and deposits to third-party vendors. (ii) Prepaid investment mainly composed of the prepayment to acquire equity interests in Shanghai Xinzhen Financial Information Consulting Co., Ltd, Jiangxi Financial Development Group Co. Ltd and Guobing Sports Development (Beijing) Co., LTD as of June 30,2021. | December 31, December 31, 2019 2020 Deposits (i) 100,278 91,258 Advances to suppliers 37,118 10,607 Prepaid taxes 294,487 338,450 Prepaid service fee 17,268 45,201 Prepaid investment (ii) 632,096 270,996 Others 56,540 37,046 Less: Adoption of new accounting standard — (466) Total 1,137,787 793,092 (i) Deposits mainly include rent deposits and deposits to third-party vendors. (ii) Prepaid investment mainly composed of the prepayment to acquire equity interests in Hubei Consumer Finance Company, Shanghai Xinzhen Financial Information Consulting Co., Ltd and Jiangxi Financial Development Group Co. Ltd as of December 31, 2019. The Group obtained the approval of changes of control from Hubei Consumer Finance Company and local regulatory authorities during the year ended December 31,2020. As of December 31, 2020,the prepaid investment to Shanghai Xinzhen Financial Information Consulting Co., Ltd and Jiangxi Financial Development Group Co. Ltd are still subject to the approval of changes of control from the investees or local regulatory authorities . |
FAIR VALUE OF ASSETS AND LIAB_5
FAIR VALUE OF ASSETS AND LIABILITIES (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
FAIR VALUE OF ASSETS AND LIABILITIES | ||
Schedule of fair value of hierarchy for assets and liabilities | Balance at June 30,2021 Level 1 Level 2 Level 3 Fair Value RMB RMB RMB RMB Assets Investment in marketable securities 206,272 — — — Total Assets 206,272 — — — | Balance at December 31, 2019 Level 1 Level 2 Level 3 Fair Value RMB RMB RMB RMB Assets Available‑for‑sale investment — — 10,443 10,443 Total Assets — — 10,443 10,443 |
LONG-TERM INVESTMENTS (Tables_2
LONG-TERM INVESTMENTS (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
LONG-TERM INVESTMENTS | ||
Schedule of long term investments | Equity securities without readily Equity Held-to- determinable fair method maturity value investments investment Total RMB RMB RMB RMB Balance at December 31, 2020 647,702 57,491 33,079 738,272 Additions 34,566 — — 34,566 Disposal (23,887) — — (23,887) Share of (loss) in equity method investments — (7,629) — (7,629) Impairment charges (2,056) — — (2,056) Impact of exchange rate 470 (740) — (270) Balance at June 30, 2021 656,795 49,122 33,079 738,996 | Equity securities without readily Equity Available for Held-to- determinable fair method sales maturity value investments investment investment Total RMB RMB RMB RMB RMB Balance at December 31, 2018 699,747 219,935 34,476 — 954,158 Additions 5,000 161,951 10,533 15,200 192,684 Disposal (8,750) (104,149) (35,739) — (148,638) Share of (loss) in equity method investments — (29,455) — — (29,455) Impairment charges (154,898) (22,830) — — (177,728) Unrealized losses recorded in accumulated other comprehensive loss — — (99) — (99) Impact of exchange rate 2,079 139 1,272 — 3,490 Gain recognized on remeasurement of previously held equity interest in acquire (Note 3) — 16,272 — — 16,272 Business combinations achieved in stages (Note 3) — (35,040) — — (35,040) Balance at December 31, 2019 543,178 206,823 10,443 15,200 775,644 Additions 396,549 53,929 19,100 469,578 Disposal (5,000) — (10,443) — (15,443) Share of (loss) in equity method investments — (21,317) — — (21,317) Impairment charges (282,076) (179,193) — (1,221) (462,490) Impact of exchange rate (4,949) (2,751) — — (7,700) Balance at December 31, 2020 647,702 57,491 — 33,079 738,272 |
Schedule of equity securities without readily determinable fair value | December 31, June 30, 2020 2021 RMB RMB Shanghai Xinzheng Financial Information Consulting Co., Ltd. (i) 129,786 129,786 EZhou Rural Commercial Bank 40,000 40,000 BitPay, Inc. (Delaware)(ii) 26,100 24,783 GoopalGroup (iii) 17,748 17,562 Hubei Consumption Financial Company (“Hubei Consumption”) (iv) 361,100 361,100 Zhuhai Yuanxin investment partnership (limited partnership(“ZhuhaiYuanxin”)(v) 15,000 15,000 Ningbo Weilie investment management partnership (limited partnership)(“NingboWeilie”)(vi) 20,000 20,000 PT.TIRTA FinaNCE(INA) (vii) — 19,467 Others 37,968 29,097 Total 647,702 656,795 (i) In September 2018, the Group purchased a 15% equity interest of Shanghai Xinzheng Financial Information Consulting Co., Ltd. for a total consideration of RMB129,786. The Group held a 15% equity interest as of December 31,2020 and June 30,2021 respectively. No impairment existed at December 31,2020 and June 30, 2021 and there were no observable price changes for six months ended June 30,2021. (ii) In March 2018, the Group acquired a 1.11% of equity interest in BitPay, Inc. (Delaware) for a cash consideration of US$4,000. The Group held 1.11% equity interest as of December 31, 2020 and June 30,2021. No impairment existed at December 31, 2020 and June 30,2021, and there were no observable price changes for six months ended June 30,2021. (iii) In January 2018, the Group purchased a 1.94% equity interest in Goopal Group for a cash consideration of US$2,720. The Group held 1.94% equity interest as of December 31, 2020 and June 30,2021. No impairment existed at December 31, 2020 and June 30,2021, and there were no observable price changes for six months ended June 30,2021. (iv) In December 2019, the Group paid RMB361,100 in cash in exchange of 24.47% (v) In November 2020, the Group paid RMB 15,000 in cash in exchange of 33.33% equity interest in Zhuhai Yuanxin. No impairment existed at December 31, 2020 and June 30,2021, and there were no observable price changes for six months ended June 30,2021. (vi) In December 2017, the Group purchased a 8.50% equity interest in Ningbo Weilie for a total cash consideration of RMB 20,000,000.No impairment existed at December 31, 2020 and June 30,2021, and there were no observable price changes for six months ended June 30,2021. (vii) In June 2021, the Group account for a 40% equity interest in PT.TIRTA FinaNCE(INA),. No impairment existed at June 30,2021, and there were no observable price changes for six months ended June 30,2021. | December 31, December 31, 2019 2020 RMB RMB Nanjing Lefang Intelligent Life Technology Development Co., Ltd (“Nanjing Lefang”) (i) 181,368 — Shanghai Xinzheng financial information consulting Co., Ltd. (ii) 129,786 129,786 Abakus Ltd. (Cayman) (“Abskus”) (iii) 98,709 — EZhou Rural Commercial Bank 40,000 40,000 BitPay, Inc. (Delaware) (iv) 27,847 26,100 GoopalGroup (v) 18,936 17,748 Hubei Consumption Financial Company (“Hubei Consumption”) (vi) — 361,100 Zhuhai Yuanxin investment partnership (limited partnership(“ZhuhaiYuanxin") (vii) — 15,000 Ningbo Weilie investment management partnership(limited partnership) (i) In March 2018, the Group purchase an additional 21.28% equity interest of Nanjing Lefang, formerly known as Nanjing Banghang Information Consulting Limited, for a cash consideration of RMB 250,000 . The Group held a 30.53% equity interest as of December 31, 2019 and 2020. The investments contain various right, protection, and a liquidation preference. The investment is accounted for under the equity securities without readily determinable fair value of accounting as it is not considered to be in-substance common stock. There were no observable price changes for the years ended December 31, 2018, 2019, and 2020. Due to continued decrease of operating result of Nanjing Lefang, the Group conducted an impairment assessment and recorded an impairment loss of RMB 99,868 and RMB 181,368 for the years ended December 31, 2019 and 2020, respectively. In determining the fair value of the investment in Nanjing Lefang, the Group applied the market approach using unobservable inputs, such as a lack of marketability discount and probability weighting for each scenario including liquidation and an initial public offering. (ii) In September 2018, the Group purchased a 15% equity interest of Shanghai Xinzheng Financial Information Consulting Co., Ltd. for a total consideration of RMB 129,786 . The Group held a 15% equity interest as of December 31, 2019 and 2020. No impairment existed at December 31, 2019 and 2020 and there were no observable price changes for the years ended December 31, 2018, 2019 and 2020. (iii) In December 2014, the Group subscribed to 3,579,000 ordinary shares of Abakus (formerly known as Wecash Holdings Ltd.) for a cash consideration of RMB 6,500 . The Group held 19.30% , 18.97%, and 18.97 % equity interest as of December 31, 2018, 2019 and 2020, respectively. The Group recognized its share of profit in Abakus of RMB 2,261 for the year ended December 31, 2018. In February 2018, due to issuance of equity interests to new shareholders, the Group’s equity interest in Abakus was diluted from 22.17% to 19.86% and lost its ability to exercise significance influence. The investment in Abakus was accounted for under equity method prior to the dilution in the Group’s equity interest. The investment is accounted for under the equity securities without readily determinable fair value of accounting upon the cessation of the Group’s significant influence in February 2018. In July 2019, Abakus agrees to repurchase 75,796 ordinary shares held by the Group for a cash consideration of RMB 14,807 . A disposal gain of RMB 6,057 was recognized, which is the difference between the consideration of RMB 14,807 and the carrying value in Abakus, amounted to RMB 8,750 . Due to shut down of Abskus, the Group fully imaparied the investment for the years ended December 31 2020. (iv) In March 2018, the Group acquired a 1.11% of equity interest in BitPay, Inc. (Delaware) for a cash consideration of US$4,000. The Group held 1.11% equity interest as of December 31, 2019, and 2020. No impairment existed at December 31, 2018, 2019, and 2020, and there were no observable price changes for the years ended December 31, 2018, 2019, and 2020. (v) In January 2018, the Group purchased a 1.94% equity interest in Goopal Group for a cash consideration of US$2,720. The Group held 1.94% equity interest as of December 31, 2019, and 2020. No impairment existed at December 31, 2018, 2019, and 2020, and there were no observable price changes for the years ended December 31, 2018, 2019, and 2020. (vi) In December 2019, the Group paid RMB361,100 in cash in exchange of 24.47% equity interest in Hubei Consumer. No impairment existed at December 31, 2020, and there were no observable price changes for the year ended December 31, 2020. (vii) In November 2020, the Group paid RMB 15,000 in cash in exchange of 33.33% equity interest in Zhuhai Yuanxin. No impairment existed at December 31, 2020, and there were no observable price changes for the year ended December 31, 2020. (viii) In December 2017, the Group purchased a 8.50 % equity interest in Ningbo Weilie for a total cash consideration of RMB 20,000,000 . No impairment existed at December 31, 2020, and there were no observable price changes for the year ended December 31, 2020. (ix) Other investments represent several insignificant investments as of December 31, 2018, 2019 and 2020. Impairment losses of RMB 23,140 , RMB 20,724 and nil were reported in consolidated statements of operations for the years ended December 31, 2018, 2019 and 2020 related to Shanghai Wujiu Information Technology Company Limited (“Shanghai Wujiu”), Ofo International Limited (“OFO”), and Orange Island Technology Inc.(“Orange”). During the year ended in December 31, 2018, the Group determined that Shanghai Wujiu and OFO had encountered going concern issues due to their working capital deficiencies and poor operating results. As a result, the Group fully impaired the investments during the year ended December 31, 2018. During the year ended in December 31, 2019, the Group determined that Orange had encountered going concern issues and was in the process of liquidation. Thus, the Group fully impaired the investment during the year ended December 31, 2019. |
Schedule of equity method investments | December 31, June 30, 2020 2021 RMB RMB CSJ Golden Bull (Beijing) Investment Consulting Co., Ltd (“CSJ Golden Bull”)(i) 22,135 21,143 Others 35,356 27,979 Total 57,491 49,122 (i) In September 2017, the Group purchased an equity interest of CSJ Golden Bull for a total cash consideration of RMB40,900. The Group held a 25% equity interest as of December 31,2020 and June 30,2021. | Equity method investments December 31, December 31, 2019 2020 RMB RMB CSJ Golden Bull (Beijing) Investment Consulting Co., Ltd (“CSJ Golden Bull”) (i) 26,675 22,135 Suzhou Qingyu Technology Limited (“Suzhou Qingyu”) (ii) 19,092 — Cornerstone Unicorn No.3 Private Equity Investment Fund (iii) 132,859 — Others 28,197 35,356 Total 206,823 57,491 (i) In September 2017, the Group purchased an equity interest of CSJ Golden Bull for a total cash consideration of RMB 40,900 . The Group held a 25% equity interest as of December 31, 2019 and 2020, and recognized its share of loss of RMB 6,181 , RMB 6,764 , and RMB 4,540 for the years ended December 31, 2018, 2019, and 2020, respectively. (ii) In July 2017, the Group purchased a 20% equity interest in Suzhou Qingyu for a total consideration of RMB 10,000 . The Group’s shareholding percentage decreased from 20% to 9.88% due to the issuance of equity interests to new shareholder. In June 2018, the Group purchased 3.15% equity interests of Suzhou Qingyu for a total consideration of RMB 20,000 . The Group held a 13.03% equity interest as of December 31, 2019 and have ability to exercise significance influence. The Group recognized its share of loss of RMB 5,083 , RMB 4,615 and RMB 4,648 for the years ended December 31, 2018, 2019 and 2020. Suzhou Qingyu had encountered going concern issues. Thus, the Group fully impaired the investment during the year ended December 31, 2020. (iii) In October 2019, the Group purchased 141,460,000 fund shares of Cornerstone Unicorn No.3 Private Equity Investment Fund for a total consideration of RMB 141,460 . The total shares of the fund is 152,460,000 and the fund manager shall make investment decisions independently. The fund manager can be replaced with the consent of all investors. The Group held 92% share interest as of December 31, 2019 and has ability to exercise significance influence. In December 2020,Cornerstone Unicorn and Cornerstone Management had encountered going concern issues. Thus, the Group fully impaired the investment during the year ended December 31, 2020. |
PROPERTY, EQUIPMENT AND SOFTW_5
PROPERTY, EQUIPMENT AND SOFTWARE, NET (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
PROPERTY, EQUIPMENT AND SOFTWARE, NET | ||
Schedule of property, equipment and software, net | December 31, June 30, 2020 2021 RMB RMB Office building 19,470 46,376 Computer and electronic equipment 57,856 59,008 Furniture and office equipment 10,065 9,455 Leasehold improvements 30,069 2,476 Software 46,008 51,435 Total property and equipment 163,468 168,750 Accumulated depreciation and amortization (79,147) (93,092) Impairment loss for technology of discontinued online lending information services (20,925) (23,235) Property, equipment, net 63,396 52,423 | December 31, December 31, 2019 2020 RMB RMB Office building 19,470 19,470 Computer and electronic equipment 62,748 57,856 Furniture and office equipment 14,039 10,065 Leasehold improvements 33,050 30,069 Software 42,840 46,008 Total property and equipment 172,147 163,468 Accumulated depreciation and amortization (61,771) (79,147) Impairment loss for technology of discontinued online lending information services — (20,925) Property, equipment, net 110,376 63,396 |
INTANGIBLE ASSETS, NET (Table_2
INTANGIBLE ASSETS, NET (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
INTANGIBLE ASSETS, NET | ||
Schedule of intangible assets, net | December 31, June 30, 2020 2021 RMB RMB Brokerage licenses 51,880 51,553 Trade Name 6,400 6,400 Technology 27,600 27,600 Total Intangible assets 85,880 85,553 Accumulated amortization (24,247) (27,988) Impairment loss of technology with discontinued online lending information intermediaries (17,220) (17,220) Intangible assets, net 44,413 40,345 | December 31, December 31, 2019 2020 RMB RMB Brokerage licenses 54,006 51,880 Trade Name 6,400 6,400 Technology 27,600 27,600 Total Intangible assets 88,006 85,880 Accumulated amortization (14,530) (24,247) Impairment loss of technology with discontinued online lending information intermediaries — (17,220) Intangible assets, net 73,476 44,413 |
ACCRUED EXPENSES AND OTHER LI_5
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
ACCRUED EXPENSES AND OTHER LIABILITIES | ||
Schedule of accrued expenses and other liabilities | December 31, June 30, 2020 2021 RMB Accrued advertising and marketing fee 105,638 98,888 Payable related to services fee and others 152,396 166,154 Amounts due to customers for the segregated bank balances held on their behalf 405,719 474,969 Deposit 2,913 2,486 Value added tax and surcharges 16,494 6,590 Others 43,526 37,126 Total accrued expenses and other current liabilities 726,686 786,213 | December 31, December 31, 2019 2020 RMB RMB Accrued advertising and marketing fee 715,218 105,638 Payable related to services fee and others 248,816 152,396 Amounts due to customers for the segregated bank balances held on their behalf 125,437 405,719 Deposit 15,995 2,913 Value added tax and surcharges 42,699 16,494 Others 80,945 43,526 Total accrued expenses and other current liabilities 1,229,110 726,686 |
RELATED PARTY BALANCES AND TR_5
RELATED PARTY BALANCES AND TRANSACTIONS (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
RELATED PARTY BALANCES AND TRANSACTIONS | ||
Schedule of related party transactions | Name of related parties Relationship with the Group Major transaction with the Group Beijing Jiufu Weiban Technology Limited (“9F Weiban”) Equity method investee (until January 2019) Consulting services and related party loans Beijing WeCash Qiyi Technology Limited (“WeCash Qiyi”) Equity method investee (until February 2018) Borrower acquisition and referral services Huoerguosi Wukong Digital Technology Limited (“Huoerguosi”) Entity controlled by Sun, Lei (until November 2018) Advertising services WeCash Xiangshan Information Technology Limited (“WeCash Xiangshan”) Subsidiary of equity method investee Credit inquiry services Shenzhen Boya Equity method investee (until May 2019) Borrower acquisition and referral services Kashi Boya Chengxin Internet Technology Limited (“Kashi Boya”) Subsidiary of equity method investee (until May 2019) Borrower acquisition and referral services Shenzhen Lingxian Equity method investee (until December 2019) Prepayment for merchandise Shanghai Jiutai Financial Information Services Limited (“Shanghai Jiutai”) Entity controlled by Liu, Lei Related party loan CSJ Golden Bull Equity method investee Investors acquisition, referral services, and related party loan Beijing Shunwei Wealth Technology Limited (“Beijing Shunwei”) Equity method investee (until June 2019) Borrower acquisition and referral services Beijing Jiujia Wealth Management Limited (“Beijing Jiujia”) Equity method investee (until January 2018) Investors acquisition and referral services and related party loan Yoquant Equity method investee (until January 2019) Consulting services Zhejiang Lingchuang Food Limited Subsidiary of equity method investee (until December 2019) Deposit Qu, Jiachun Principal shareholder of the Group Related party loan Ren, Yifan Director of the Group Related party loan Name of related parties Relationship with the Group Major transaction with the Group Liu, Lei President Related party loan Zhuhai Hengqin Flash Cloud Payment Information Technolgy Limited (“Zhuhai Hengqin Payment”) Entity controlled by Sun, Lei Payment processing service Huoerguosi Flash Cloud Payment Information Technology Limited (“Huoerguosi Payment”) Entity controlled by Sun, Lei Payment processing service Nanjing Lefang Investee with significant influence Borrower acquisition and referral services purchased by the Group, consulting service provided to Nanjing Lefang by the Group, and related party loan Shanghai Qiuzhi Information Technology Limited (“Shanghai Qiuzhi”) Equity method investee (from May 2019) Borrower acquisition and referral services Beijing Jiuzao Technology Limited(“Beijing Jiuzao”) Entity controlled by Sun, Lei (from December 2019) Borrower acquisition and referral services Hangzhou Shuyun Gongjin Technology Limited (“Hangzhou Shuyun”) Entity controlled by Sun, Lei Credit inquiry services Chen, Lixing Vice President Related party loan Nine F Capital Limited (“Nine F”) Entity owned by Sun, Lei Related party loan Lin, Yanjun Chief Financial Officer of the Group Related party loan Sun, Lei Chief Executive Officer of the Group Related party loan During the six months ended June 30, 2021, nil service were provided by or to the related parties. Details of related party balances as of December 31, 2020 and June 30,2021 are as follows: (1) Amounts due to related parties December 31, June 30, 2020 2021 RMB RMB Zhuhai Hengqin Payment 4,731 4,731 Nanjing Lefang 18,834 18,834 Hangzhou Shuyun 18 18 Beijing Jiuzao 182 — Niche Global Fintech Corporation Limited 1,524 7 Total 25,289 23,590 | Name of related parties Relationship with the Group Major transaction with the Group Beijing Jiufu Weiban Technology Limited (“9F Weiban”) Equity method investee (until January 2019) Consulting services and related party loans Beijing WeCash Qiyi Technology Limited (“WeCash Qiyi”) Equity method investee (until February 2018) Borrower acquisition and referral services Huoerguosi Wukong Digital Technology Limited (“Huoerguosi”) Entity controlled by Sun, Lei (until November 2018) Advertising services WeCash Xiangshan Information Technology Limited (“WeCash Xiangshan”) Subsidiary of equity method investee Credit inquiry services Shenzhen Boya Equity method investee (until May 2019) Borrower acquisition and referral services Kashi Boya Chengxin Internet Technology Limited (“Kashi Boya”) Subsidiary of equity method investee (until May 2019) Borrower acquisition and referral services Shenzhen Lingxian Equity method investee (until December 2019) Prepayment for merchandise Shanghai Jiutai Financial Information Services Limited (“Shanghai Jiutai”) Entity controlled by Liu, Lei Related party loan CSJ Golden Bull Equity method investee Investors acquisition, referral services, and related party loan Beijing Shunwei Wealth Technology Limited (“Beijing Shunwei”) Equity method investee (until June 2019) Borrower acquisition and referral services Beijing Jiujia Wealth Management Limited (“Beijing Jiujia”) Equity method investee (until January 2018) Investors acquisition and referral services and related party loan Yoquant Equity method investee (until January 2019) Consulting services Zhejiang Lingchuang Food Limited Subsidiary of equity method investee (until December 2019) Deposit Qu, Jiachun Principal shareholder of the Group Related party loan Ren, Yifan Director of the Group Related party loan Liu, Lei President Related party loan Zhuhai Hengqin Flash Cloud Payment Information Technolgy Limited (“Zhuhai Hengqin Payment”) Entity controlled by Sun, Lei Payment processing service Huoerguosi Flash Cloud Payment Information Technology Limited (“Huoerguosi Payment”) Entity controlled by Sun, Lei Payment processing service Nanjing Lefang Investee with significant influence Borrower acquisition and referral services purchased by the Group, consulting service provided to Nanjing Lefang by the Group, and related party loan Shanghai Qiuzhi Information Technology Limited (“Shanghai Qiuzhi”) Equity method investee (from May 2019) Borrower acquisition and referral services Beijing Jiuzao Technology Limited(“Beijing Jiuzao”) Entity controlled by Sun, Lei (from December 2019) Borrower acquisition and referral services Hangzhou Shuyun Gongjin Technology Limited (“Hangzhou Shuyun”) Entity controlled by Sun, Lei Credit inquiry services Chen, Lixing Vice President Related party loan Nine F Capital Limited (“Nine F”) Entity owned by Sun, Lei Related party loan Lin, Yanjun Chief Financial Officer of the Group Related party loan Sun, Lei Chief Executive Officer of the Group Related party loan Details of related party balances and transactions as of and for the years ended December 31, 2018, 2019 and 2020 are as follows: (1) Services provided by related parties Year ended Year ended Year ended December 31, December 31, December 31, 2018 2019 2020 RMB RMB RMB Investors and borrower acquisition and referral services: Beijing Jiujia 9,965 — — Beijing Shunwei 5,133 1,221 — Shenzhen Boya 9,781 4,696 — Beijing Jiuzao — 7,257 852 Nanjing Lefang 12,890 29,476 — Shanghai Qiuzhi — 120 49 Subtotal 37,769 42,770 901 Credit inquiry services: WeCash Xiangshan 427 — — Hangzhou Shuyun — 5,925 358 Subtotal 427 5,925 358 Payment processing service: Zhuhai Hengqin Payment 17,808 9,175 — Huoerguosi Payment 20,504 — — Subtotal 38,312 9,175 — Others 261 20 — Total 76,769 57,890 1,259 (2) Services provided to related parties Year ended Year ended Year ended December 31, December 31, December 31, 2018 2019 2020 RMB RMB RMB Beijing Shunwei 3,941 — — Nanjing Lefang 26,386 1,994 — Shanghai Qiuzhi — 99 — Shenzhen Boya — 6 — Kashi Boya 4,495 — — Others 179 — — Total 35,001 2,099 — (3) Amounts due from related parties December 31, December 31, 2019 2020 RMB RMB Nine F (i) — — Beijing Shunwei — — 9F Weiban — — Lin, Yanjun — — Chen, Lixing — — Nanjing Lefang 50,000 — Shenzhen Lingxian — — Sun Lei — — Total 50,000 — (i) On April 20, 2018, the Company extended a loan to Nine F of US $20 million with term of 3 years and an interest rate at the US dollar deposit rate for the same period as published by Bank of China. The purpose of the loan is to finance the purchase by Lei Sun of the ordinary shares of 9F Inc. from Yifan Ren, one of the Founders of the Company. The loan was fully repaid in August 2019. (4) Amounts due to related parties December 31, December 31, 2019 2020 RMB RMB Zhuhai Hengqin Payment 3,125 4,731 Huoerguosi Payment — — Qu, Jiachun — — Ren, Yifan — — Zhejiang Lingchuang Food Limited — — Nanjing Lefang 18,474 18,834 Beijing Shunwei — — Shenzhen Boya — — Hangzhou Shuyun 883 18 Beijing Jiuzao 7,300 182 Shanghai Qiuzhi 120 — Niche Global Fintech Corporation Limited — 1,524 Total 29,902 25,289 |
INCOME TAXES (Tables)_2
INCOME TAXES (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
INCOME TAXES | ||
Schedule of current and deferred components of the income tax expense | For the six months ended For the six months ended June 30, June 30, 2020 2021 RMB RMB Current tax 25,439 17,998 Deferred tax (7,565) — Total 17,874 17,998 | Year ended Year ended Year ended December 31, December 31, December 31, 2018 2019 2020 RMB RMB RMB Current tax 376,177 245,397 42,758 Deferred tax 26,226 (419,994) 495,546 Total 402,403 (174,597) 538,322 |
Schedule of reconciliation of income tax expense at statutory tax rate to income tax expense | For the six months ended For the six months ended June 30, June 30, 2020 2021 RMB RMB Income (loss) before income tax expenses (720,984) (167,335) Statutory tax rate in the PRC 25 % 25 % Income tax expense at statutory tax rate (180,246) (41,834) Non‑deductible expenses(i) 11,901 1,260 Change in valuation allowance 96,202 (252,398) Effect of tax holiday and preferential tax rate 31,734 301,815 Share‑based compensation expenses 51,752 8,729 Effect of different tax rates of subsidiaries operating in other jurisdictions 6,531 426 Income tax expense 17,874 17,998 | Year ended Year ended Year ended December 31, December 31, December 31, 2018 2019 2020 RMB RMB RMB Income (loss) before income tax expenses 2,418,729 (2,220,324) (1,691,563) Statutory tax rate in the PRC 25 % 25 % 25 % Income tax expense at statutory tax rate 604,682 (555,081) (422,891) Non‑deductible expenses (i) 19,526 15,362 278,303 Change in valuation allowance 20,980 43,350 504,360 Effect of tax holiday and preferential tax rate (375,632) 221,590 104,218 Share‑based compensation expenses 127,041 88,288 72,657 Effect of different tax rates of subsidiaries operating in other jurisdictions 5,806 11,894 1,675 Income tax expense 402,403 (174,597) 538,322 |
Schedule of non-deductible expenses | For the six months ended For the six months ended June 30, June 30, 2020 2021 RMB RMB Non‑deductible expenses—excessive advertising fees — — Other non‑deductible expenses 11,901 1,260 Total 11,901 1,260 | Year ended Year ended Year ended December 31, December 31, December 31, 2018 2019 2020 RMB RMB RMB Non‑deductible expenses—excessive advertising fees 2,927 — — Other non‑deductible expenses 16,599 15,362 278,303 Total 19,526 15,362 278,303 |
Schedule of aggregate amount and per ordinary share effect of the tax holiday and preferential tax rate | June 30, June 30, 2020 2021 RMB RMB The aggregate amount of tax holiday and preferential tax rate (31,734) (301,815) The aggregate effect on basic and diluted net income per ordinary share: —Basic (0.16) (3.01) —Diluted (0.16) (3.01) | December 31, December 31, December 31, 2018 2019 2020 RMB RMB RMB The aggregate amount of tax holiday and preferential tax rate 375,632 (221,590) (104,218) The aggregate effect on basic and diluted net income per ordinary share: —Basic 2.31 (1.27) (0.52) —Diluted 2.02 (1.27) (0.52) |
Schedule of tax effects of temporary differences that gave rise to the deferred tax balances | June 30, June 30, 2020 2021 RMB RMB Deferred revenue 58,095 1,585 Accrued expenses 37,649 2,988 Allowance for doubtful accounts 305,435 11,374 Net operating loss carry forward 227,907 335,685 Excess advertising fee 81,923 — Less: valuation allowance (197,077) (351,632) Total deferred tax assets, net 513,932 — | December 31, December 31, December 31, 2018 2019 2020 RMB RMB RMB Deferred revenue 36,834 104,750 11,786 Accrued expenses 55,110 105,475 106,404 Allowance for doubtful accounts 4,335 265,745 330,488 Net operating loss carry forward 44,379 80,485 142,722 Excess advertising fee — 47,202 12,630 Less: valuation allowance (56,320) (99,670) (604,030) Total deferred tax assets, net 84,338 503,987 — |
Schedule of movements of valuation allowance | 2020 2021 RMB RMB Balance at beginning of year 99,670 604,030 Additions 97,407 — Reversal — (252,398) Balance at June 30,2020 and 2021 197,077 351,632 | 2018 2019 2020 RMB RMB RMB Balance at beginning of year 35,340 56,320 99,670 Additions 34,459 56,132 504,360 Reversal (13,479) (12,782) — Balance at end of year 56,320 99,670 604,030 |
Schedule of deferred tax liabilities | June 30, June 30, 2020 2021 RMB RMB Intangible asset from acquisition 13,227 8,504 Total deferred liabilities 13,227 8,504 | December 31, December 31, December 31, 2018 2019 2020 RMB RMB RMB Deferred tax liabilities: Intangible asset from acquisition 9,003 15,354 9,280 Contract assets — 1,861 — Total deferred liabilities 9,003 17,215 9,280 |
SHARE BASED COMPENSATION (Tab_2
SHARE BASED COMPENSATION (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
SHARE-BASED COMPENSATION | ||
Schedule of assumptions using the binomial option pricing model | For the six months ended For the six months ended June 30, June 30, 2020 2021 Risk free rate of interest 0.27%-1.47% 0.84%~1.61% Volatility 48.8%-59.5% 113.60%~116% Dividend yield — — Exercise multiples 2.2 / 2.8 2.2 Life of option (years) 2.5-6.0 5 | Year ended Year ended Year ended December 31, December 31, December 31, 2018 2019 2020 Risk free rate of interest 2.45% ‑ 2.98% 1.79%-2.53% 0.27%-1.47% Volatility 43.5% ‑ 48.3% 43.4%-55.3% 48.8%-59.5% Dividend yield — — — Exercise multiples 2.2 / 2.8 2.2 / 2.8 2.2 / 2.8 Life of option (years) 4.0 ‑ 6.0 4.0 - 6.0 2.5-6.0 |
Schedule of activity in share options | Weighted Weighted Average Number of Average Grant ‑ date Options Exercise Price Fair Value RMB RMB Outstanding as of December 31, 2020 29,273,408 17.24 40.24 Granted 4,925,211 0.76 8.00 Exercised — — — Forfeited — — — Outstanding as of June 30, 2021 34,198,619 14.87 35.60 | Weighted Weighted Average Number of Average Grant ‑ date Options Exercise Price Fair Value RMB RMB Outstanding as of December 31, 2019 36,474,200 12.28 34.61 Granted 7,503,489 14.70 35.88 Exercised (8,319,681) — 22.00 Forfeited (6,384,600) 17.05 39.66 Outstanding as of December 31, 2020 29,273,408 17.24 40.24 |
Schedule of share options outstanding | Options Outstanding Options Exercisable Weighted Weighted Average Average Number Remaining Number Remaining Exercise Price Outstanding Contractual Life Outstanding Contractual Life RMB 0.07 4,425,211 0.87 — — 7.78 500,000 5.73 9.53 10,340,000 0.2 9,878,000 0.09 14.32 12,036,630 1.47 11,644,230 1.45 24.06 2,641,500 3.05 — — 24.11 4,176,678 3.05 3,345,098 3.05 51.05 78,600 2.52 — — 34,198,619 24,867,328 | Options Outstanding Options Exercisable Weighted Weighted Average Average Number Remaining Number Remaining Exercise Price Outstanding Contractual Life Outstanding Contractual Life RMB 7.78 10,340,000 0.64 9,878,000 0.52 14.32 12,036,630 1.97 11,644,230 1.94 24.06 2,641,500 3.55 — — 24.11 4,176,678 3.55 3,345,098 3.55 51.05 78,600 3.02 — — 29,273,408 24,867,328 |
Schedule of share-based compensation expenses recognized with each issuance of share options | For the six months ended June 30, Date of Grant 2020 2021 RMB RMB 01/07/2016 5,255 — 23/08/2016 800 — 06/09/2016 457 — 01/08/2017 3,373 3,097 10/10/2017 1,458 1,335 26/12/2017 2,380 — 19/01/2018 781 — 27/03/2018 1,835 1,681 01/09/2018 524 479 29/09/2018 2,343 1,146 07/01/2019 427 391 21/04/2019 157 144 13/06/2019 90 82 14/06/2019 38 35 01/07/2019 6,955 3,565 16/02/2020 1,636 21/02/2020 112,183 — 28/02/2020 67,952 — 01/07/2020 — 678 13/05/2021 — 20,573 Share‑based compensation recognized for share options 207,008 34,842 | For the year ended December 31, Date of Grant 2018 2019 2020 RMB RMB RMB 10/07/2015 2,613 — — 25/09/2015 111 57 — 01/07/2016 47,177 27,771 10,319 16/08/2016 241 251 — 23/08/2016 2,336 2,442 1,571 01/09/2016 1,546 1,616 — 06/09/2016 3,524 3,427 898 01/08/2017 9,686 10,124 6,623 11/09/2017 8,713 9,107 — 10/10/2017 2,732 2,856 2,862 20/10/2017 393,648 63,246 — 26/12/2017 — 135,997 4,674 19/01/2018 33,623 8,486 1,533 07/03/2018 2,193 4,162 — 27/03/2018 — 6,345 3,604 27/04/2018 — 10,377 — 01/09/2018 — 1,366 1,028 29/09/2018 — 20,195 4,600 24/12/2018 19 1,095 — 07/01/2019 — 1,842 839 21/04/2019 — 653 309 13/06/2019 — 97 177 14/06/2019 — 41 75 01/07/2019 — 41,598 13,657 21/2/2020 — — 110,145 28/2/2020 — — 127,716 Share‑based compensation recognized for share options 508,162 353,151 290,630 |
Schedule of share based compensation recognized related to share options granted and ordinary shares issued | For the six months ended For the six months ended June 30, June 30, 2020 2021 RMB RMB General and administrative expenses 207,008 34,842 | Year ended Year ended Year ended December 31, December 31, December 31, 2018 2019 2020 RMB RMB RMB General and administrative expenses 508,162 353,151 290,630 Total 508,162 353,151 290,630 |
NET INCOME (LOSS) PER ORDINAR_6
NET INCOME (LOSS) PER ORDINARY SHARE (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
NET INCOME (LOSS) PER ORDINARY SHARE | ||
Schedule of basic and diluted net loss per share | For six months ended June 30, 2020 2021 RMB RMB Numerator: Net income (loss) attributable to 9F Inc. (741,013) (193,709) Less: Deemed dividend to preferred shareholders — — Undistributed earnings allocated to preferred shareholders — — Net income (loss) attributable to ordinary shareholders for computing net income per ordinary shares-basic (741,013) (193,709) Denominator: Weighted average ordinary shares outstanding used in computing net income per ordinary shares-basic 195,191,000 100,361,432 Net income (loss) per ordinary share attributable to ordinary shareholders-basic (3.80) (1.93) Diluted net income per share calculation Net income (loss) attributable to ordinary shareholders for computing net income per ordinary shares-basic (741,013) (193,709) Add: adjustments to undistributed earnings to participating securities Net income (loss) attributable to ordinary shareholders for computing net income per ordinary shares-dilute (741,013) (193,709) Denominator: Weighted average ordinary shares basic outstanding 195,191,000 100,361,432 Effect of potentially diluted share options Weighted average ordinary shares outstanding used in computing net income per ordinary shares-dilute 195,191,000 100,361,432 Net income (loss) per ordinary share attributable to ordinary shareholders-diluted (3.80) (1.93) | For the years ended December 31, 2018 2019 2020 RMB RMB RMB Numerator: Net income (loss) attributable to 9F Inc. 1,981,804 (2,159,576) (2,258,895) Less: Change in redemption value in Series A preferred shares (17,225) (10,711) — Deemed dividend to preferred shareholders — — — Undistributed earnings allocated to preferred shareholders (244,589) — — Net income (loss) attributable to ordinary shareholders for computing net income per ordinary shares—basic 1,719,990 (2,170,287) (2,258,895) Denominator: Weighted average ordinary shares outstanding used in computing net income per ordinary shares—basic 162,672,800 174,552,468 198,596,879 Net income (loss) per ordinary share attributable to ordinary shareholders—basic 10.57 (12.43) (11.37) Diluted net income per share calculation Net income (loss) attributable to ordinary shareholders for computing net income per ordinary shares—basic 1,719,990 (2,170,287) (2,258,895) Add: adjustments to undistributed earnings to participating securities 27,007 — — Net income (loss) attributable to ordinary shareholders for computing net income per ordinary shares—dilute 1,746,997 (2,170,287) (2,258,895) Denominator: Weighted average ordinary shares basic outstanding 162,672,800 174,552,468 198,596,879 Effect of potentially diluted share options 23,062,400 — — Weighted average ordinary shares outstanding used in computing net income per ordinary shares—dilute 185,735,200 174,552,468 198,596,879 Net income (loss) per ordinary share attributable to ordinary shareholders—diluted 9.41 (12.43) (11.37) |
LEASES (Tables)_2
LEASES (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
LEASES | ||
Schedule of information about operating leases | For the six months ended June 30, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 4,350 Non-cash right-of-use assets in exchange for new lease liabilities: Operating leases — Weighted average remaining lease term Operating leases 1.5 Weighted average discount rate Operating leases 5.30 % Short-term lease cost 134 | For the years ended December 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 59,395 Non-cash right-of-use assets in exchange for new lease liabilities: Operating leases 12,285 Weighted average remaining lease term Operating leases 1.5 Weighted average discount rate Operating leases 5.30 % Short-term lease cost 314 |
Schedule of maturity of operating lease liabilities | The six months ended June 30,2021: RMB 2021 10,698 2022 14,818 2023 89 2024 — Thereafter — 25,604 Less imputed interest — Total 25,604 | Years ending December 31: RMB 2021 14,862 2022 13,405 2023 2,956 2024 — Thereafter — 31,223 Less imputed interest 1,720 Total 29,503 |
SUMMARY OF SIGNIFICANT ACCOU_21
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Basis of consolidation and Risks in relation to the VIE structure (Details) ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | |
ASSETS: | |||||||||
Cash and cash equivalents | ¥ 1,877,191 | ¥ 3,651,788 | ¥ 2,726,712 | ¥ 4,684,003 | ¥ 5,469,077 | $ 290,740 | $ 422,314 | ||
Term deposits | 102,408 | 133,761 | 24,000 | 15,861 | 20,717 | ||||
Investment in marketable securities | 206,272 | 31,947 | |||||||
Other receivables, net of allowance for doubtful accounts of RMB17,396 as of December 31, 2020 and RMB6,930 as of June 30,2021 respectively | 565,904 | 126,745 | 117,340 | 87,647 | 19,630 | ||||
Loan receivables, net | 202,130 | 267,383 | 778,480 | 31,306 | 41,412 | ||||
Prepaid expenses and other assets | 881,771 | 793,092 | 1,137,787 | 136,569 | 122,834 | ||||
Contracts assets, net | 6,494 | 10,374 | 24,824 | 1,006 | 1,607 | ||||
Long-term investments, net | 738,996 | 738,272 | 775,644 | 954,158 | 114,456 | 114,344 | |||
Operating lease right-of-use assets, net | 25,987 | 28,668 | 121,791 | 4,025 | 4,440 | ||||
Property, equipment and software, net | 52,423 | 63,396 | 110,376 | 8,119 | 9,819 | ||||
Goodwill, net | 22,119 | 22,121 | 72,224 | 3,426 | 3,426 | ||||
Intangible assets, net | 40,345 | 44,413 | 73,476 | 6,249 | 6,879 | ||||
TOTAL ASSETS | 5,168,966 | 5,386,501 | 8,880,364 | 800,571 | 834,263 | ||||
Liabilities: | |||||||||
Deferred revenue | 10,079 | 82,643 | 788,906 | 1,561 | 12,800 | ||||
Payroll and welfare payable | 14,041 | 34,540 | 41,646 | 2,175 | 5,350 | ||||
Income taxes payable | 272,896 | 255,244 | 320,350 | 42,266 | 39,532 | ||||
Accrued expenses and other liabilities | 786,213 | 726,686 | 1,229,110 | 121,768 | 112,549 | ||||
Operating lease liabilities | 25,604 | 29,503 | 125,407 | 3,966 | 4,569 | ||||
Amounts due to related parties | 23,590 | 25,289 | 29,902 | 3,654 | 3,917 | ||||
Deferred tax liabilities | 8,504 | 9,280 | 17,215 | 1,317 | 1,437 | ||||
TOTAL LIABILITIES | 1,140,927 | 1,163,185 | 2,552,536 | $ 176,707 | $ 180,154 | ||||
Net revenues | 392,956 | $ 60,861 | 848,430 | 1,256,005 | $ 194,531 | 4,424,963 | 5,556,482 | ||
Net income (loss) | (192,962) | (29,887) | (744,599) | (2,251,202) | (348,666) | (2,153,645) | 1,975,183 | ||
Net cash provided by (used in) operating activities | (521,777) | (80,814) | (442,562) | (1,744,599) | (270,204) | (429,047) | 2,345,892 | ||
Net cash used in investing activities | ¥ (347,136) | $ (53,764) | ¥ (432,265) | 39,466 | 6,112 | (707,611) | (1,236,820) | ||
Net cash provided by (used in) financing activities | ¥ 12,896 | $ 1,997 | ¥ 471,978 | ¥ 545,886 | |||||
Percentage of net revenue contributed by VIE | 84.72% | 84.72% | 92.87% | 91.18% | 91.18% | 97.30% | 94.86% | ||
Percentage of consolidated total assets contributed by VIE | 64.41% | 64.41% | 62.42% | 62.42% | 69.29% | ||||
Percentage of consolidated total liabilities contributed by VIE | 50.81% | 50.81% | 53.48% | 53.48% | 91.29% | ||||
VIEs | |||||||||
ASSETS: | |||||||||
Cash and cash equivalents | ¥ 1,293,615 | ¥ 1,501,733 | ¥ 2,766,981 | ||||||
Term deposits | 105,000 | 135,000 | 24,000 | ||||||
Investment in marketable securities | 77,109 | ||||||||
Accounts receivable, net | 45,957 | 9,888 | 267,277 | ||||||
Other receivables, net of allowance for doubtful accounts of RMB17,396 as of December 31, 2020 and RMB6,930 as of June 30,2021 respectively | 144,449 | 68,742 | 81,525 | ||||||
Loan receivables, net | 163,200 | 221,200 | 729,798 | ||||||
Prepaid expenses and other assets | 837,041 | 740,959 | 1,085,197 | ||||||
Contracts assets, net | 6,494 | 10,374 | 24,814 | ||||||
Long-term investments, net | 489,727 | 491,510 | 293,441 | ||||||
Operating lease right-of-use assets, net | 16,130 | 18,611 | 113,606 | ||||||
Property, equipment and software, net | 39,507 | 51,701 | 95,783 | ||||||
Goodwill, net | 72,304 | 72,304 | 72,224 | ||||||
Intangible assets, net | 38,700 | 40,187 | 45,362 | ||||||
TOTAL ASSETS | 3,329,233 | 3,362,209 | 6,153,086 | ||||||
Liabilities: | |||||||||
Deferred revenue | 9,904 | 81,246 | 772,340 | ||||||
Payroll and welfare payable | 12,614 | 29,152 | 35,958 | ||||||
Income taxes payable | 238,179 | 224,533 | 303,684 | ||||||
Accrued expenses and other liabilities | 274,219 | 238,170 | 1,056,128 | ||||||
Operating lease liabilities | 15,408 | 19,100 | 119,005 | ||||||
Amounts due to related parties | 23,967 | 24,146 | 29,902 | ||||||
Deferred tax liabilities | 5,392 | 5,742 | 13,200 | ||||||
TOTAL LIABILITIES | 579,683 | 622,089 | 2,330,217 | ||||||
Net revenues | 332,913 | ¥ 787,925 | 1,145,210 | 4,305,272 | ¥ 5,270,948 | ||||
Net income (loss) | 10,552 | (406,710) | (1,479,883) | (1,551,509) | 2,702,469 | ||||
Net cash provided by (used in) operating activities | (228,263) | (175,504) | (753,416) | (439,357) | 2,906,094 | ||||
Net cash used in investing activities | 20,145 | (396,186) | ¥ (511,832) | (1,315,875) | (803,155) | ||||
Net cash provided by (used in) financing activities | ¥ 0 | ¥ 0 | ¥ (5,188) | ¥ 1,000 |
SUMMARY OF SIGNIFICANT ACCOU_22
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue recognition (Details) - item | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Online Lending Information Intermediary Services revenue | ||||
Revenue recognition | ||||
Number of services | 2 | 2 | ||
Number of performance obligations | 2 | 2 | ||
Online Lending Information Intermediary Services revenue | Minimum | ||||
Revenue recognition | ||||
Investment, annualized interest rate | 0.50% | 0.50% | 0.50% | |
Online Lending Information Intermediary Services revenue | Maximum | ||||
Revenue recognition | ||||
Investment, annualized interest rate | 1.50% | 1.50% | 1.50% | |
Direct lending program revenue | ||||
Revenue recognition | ||||
Number of performance obligations | 2 | 2 |
SUMMARY OF SIGNIFICANT ACCOU_23
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash incentives and Value added taxes ("VAT") (Details) - CNY (¥) ¥ in Thousands | Apr. 01, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Revenue recognition | ||||||||
Cash incentives paid to existing investors | ¥ 0 | ¥ 0 | ¥ 61,700 | ¥ 59,600 | ¥ 23,900 | |||
Cash incentives paid to new investors | 0 | 0 | 2,700 | 800 | 1,200 | |||
Cash incentive recognized as reduction of revenue | ¥ 0 | 0 | ¥ 8,900 | 57,600 | 25,800 | |||
Value added tax rate for small scale tax payers (as a percent) | 3.00% | 3.00% | ||||||
Additional deductible value added tax rate (as a percent) | 10.00% | 10.00% | 10.00% | |||||
Value added tax | ¥ 0 | ¥ 0 | ¥ 611,786 | ¥ 136,501 | ¥ 611,786 | ¥ 490,136 | ||
Products | ||||||||
Revenue recognition | ||||||||
Value added tax rate (as a percent) | 13.00% | 13.00% | 16.00% | 13.00% | ||||
Services | ||||||||
Revenue recognition | ||||||||
Value added tax rate (as a percent) | 6.00% | 6.00% | 6.00% |
SUMMARY OF SIGNIFICANT ACCOU_24
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Disaggregation of revenues and Deferred revenues (Details) ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | |
Revenue recognition | |||||||||
Total net revenues | ¥ 392,956 | $ 60,861 | ¥ 848,430 | ¥ 1,256,005 | $ 194,531 | ¥ 4,424,963 | ¥ 5,556,482 | ||
Deferred revenue | 10,079 | 82,643 | 788,906 | $ 1,561 | $ 12,800 | ||||
Revolving loan products (One Card) | |||||||||
Revenue recognition | |||||||||
Total net revenues | 68,826 | 182,558 | 230,124 | 1,967,851 | 5,010,312 | ||||
Nonrevolving loan products | |||||||||
Revenue recognition | |||||||||
Total net revenues | 286,582 | 134,837 | 271,897 | ||||||
Direct lending program revenue | |||||||||
Revenue recognition | |||||||||
Total net revenues | 9,178 | 575,466 | 519,543 | 1,979,941 | 45,901 | ||||
Online Lending platform revenue | |||||||||
Revenue recognition | |||||||||
Total net revenues | 78,004 | 758,024 | |||||||
Loan product | |||||||||
Revenue recognition | |||||||||
Total net revenues | 847,576 | 3,590,693 | 4,930,515 | ||||||
Technical services | |||||||||
Revenue recognition | |||||||||
Total net revenues | 164,497 | 10,067 | |||||||
Wealth management services | |||||||||
Revenue recognition | |||||||||
Total net revenues | 61,362 | 62,360 | |||||||
Others | |||||||||
Revenue recognition | |||||||||
Total net revenues | 314,952 | 90,406 | 219,756 | 260,915 | 154,907 | ||||
VIEs | |||||||||
Revenue recognition | |||||||||
Total net revenues | 332,913 | 787,925 | 1,145,210 | 4,305,272 | 5,270,948 | ||||
Deferred revenue | 9,904 | 81,246 | 772,340 | ||||||
Loan facilitation services | |||||||||
Revenue recognition | |||||||||
Total net revenues | 227,792 | 177,147 | 27,437 | 3,477,897 | 4,960,671 | ||||
Loan facilitation services | Revolving loan products (One Card) | |||||||||
Revenue recognition | |||||||||
Total net revenues | 133,743 | 26,376 | 1,698,133 | 4,728,255 | |||||
Loan facilitation services | Nonrevolving loan products | |||||||||
Revenue recognition | |||||||||
Total net revenues | 84,485 | 104,611 | 186,679 | ||||||
Loan facilitation services | Direct lending program revenue | |||||||||
Revenue recognition | |||||||||
Total net revenues | 94,049 | 66,286 | 1,675,153 | 45,737 | |||||
Post-origination services | |||||||||
Revenue recognition | |||||||||
Total net revenues | 78,004 | 12,081 | 530,232 | 859,102 | 133,058 | 604,732 | 367,439 | ||
Deferred revenue | 98,668 | 788,906 | |||||||
Revenue recognized | 72,564 | 555,646 | 290,674 | ||||||
Post-origination services | Revolving loan products (One Card) | |||||||||
Revenue recognition | |||||||||
Total net revenues | 68,826 | 48,815 | 203,748 | 269,718 | 282,057 | ||||
Post-origination services | Nonrevolving loan products | |||||||||
Revenue recognition | |||||||||
Total net revenues | 202,097 | 30,226 | 85,218 | ||||||
Post-origination services | Direct lending program revenue | |||||||||
Revenue recognition | |||||||||
Total net revenues | 9,178 | 481,417 | 453,257 | 304,788 | 164 | ||||
Technical services | |||||||||
Revenue recognition | |||||||||
Total net revenues | 164,497 | 10,067 | |||||||
Technical services | Others | |||||||||
Revenue recognition | |||||||||
Total net revenues | 164,497 | 10,067 | |||||||
Wealth Management | |||||||||
Revenue recognition | |||||||||
Total net revenues | 61,362 | 62,360 | |||||||
Wealth Management | Others | |||||||||
Revenue recognition | |||||||||
Total net revenues | 61,362 | 62,360 | |||||||
Others | |||||||||
Revenue recognition | |||||||||
Total net revenues | 89,093 | $ 13,799 | 17,979 | ¥ 219,756 | $ 34,036 | ¥ 342,334 | ¥ 228,372 | ||
Others | Others | |||||||||
Revenue recognition | |||||||||
Total net revenues | ¥ 89,093 | ¥ 17,979 |
SUMMARY OF SIGNIFICANT ACCOU_25
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Contract assets, net (Details) ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||
Contract assets from loan facilitation services and post origination services | ¥ 20,815 | ¥ 25,123 | ¥ 27,079 | ||||||
Less: Allowance for loss for collectability | (14,321) | (14,749) | (2,255) | ¥ (329) | |||||
Total | 6,494 | 10,374 | 24,824 | $ 1,006 | $ 1,607 | ||||
Movement of allowance for contract assets | |||||||||
Balance at beginning of the year | 14,749 | ¥ 2,255 | 2,255 | 329 | |||||
Provision/(Reversal) for doubtful contract assets | 428 | $ 66 | ¥ 329 | 18,605 | $ 2,882 | 14,811 | 329 | ||
Write-offs | (6,111) | (12,885) | |||||||
Balance at end of the year | ¥ 14,321 | ¥ 14,749 | ¥ 2,255 | ¥ 329 |
SUMMARY OF SIGNIFICANT ACCOU_26
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Quality assurance fund liability and Loan Receivables (Details) - CNY (¥) ¥ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 25, 2016 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Balance of the quality assurance fund | ¥ 287,000 | |||
Loan receivables | ||||
Allowance for doubtful accounts, loans receivable | ¥ 56,466 | ¥ 320,944 | ¥ 615,592 |
SUMMARY OF SIGNIFICANT ACCOU_27
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Restricted cash (Details) ¥ in Thousands, $ in Thousands | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||
Restricted bank deposits | ¥ 376,796 | $ 58,358 | ¥ 390,702 | $ 60,512 | ¥ 125,437 |
SUMMARY OF SIGNIFICANT ACCOU_28
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Term deposits (Details) ¥ in Thousands, $ in Thousands | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||
Term deposits | ¥ 102,408 | $ 15,861 | ¥ 133,761 | $ 20,717 | ¥ 24,000 |
Investment in marketable securities | ¥ 206,272 | ¥ 0 |
SUMMARY OF SIGNIFICANT ACCOU_29
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Loan receivables and Allowance for doubtful accounts (Details) - CNY (¥) ¥ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for doubtful accounts | ||||
Allowance for doubtful accounts, beginning balance | ¥ 1,793,754 | ¥ 2,085,814 | ¥ 6,063 | ¥ 34,621 |
Provision for doubtful accounts | 44,724 | 328,750 | 2,134,156 | |
Reversal | (428) | (329) | (2,966) | |
Write off | (288,163) | (609,853) | (54,076) | (25,592) |
Allowance for doubtful accounts, ending balance | 1,550,315 | 1,793,754 | 2,085,814 | 6,063 |
ASU 2016-13 | Cumulative adjustment | ||||
Allowance for doubtful accounts | ||||
Allowance for doubtful accounts, beginning balance | 11,537 | |||
Allowance for doubtful accounts, ending balance | 11,537 | |||
Accounts receivable | ||||
Allowance for doubtful accounts | ||||
Allowance for doubtful accounts, beginning balance | 1,446,994 | 1,433,449 | 1,053 | 29,611 |
Provision for doubtful accounts | 39,925 | 13,545 | 1,447,582 | |
Reversal | (2,966) | |||
Write off | (15,186) | (25,592) | ||
Allowance for doubtful accounts, ending balance | 1,486,919 | 1,446,994 | 1,433,449 | 1,053 |
Other receivables | ||||
Allowance for doubtful accounts | ||||
Allowance for doubtful accounts, beginning balance | 17,396 | 36,773 | 5,010 | 5,010 |
Provision for doubtful accounts | 3,813 | 36,803 | ||
Reversal | (329) | |||
Write off | (14,279) | (22,494) | (4,711) | |
Allowance for doubtful accounts, ending balance | 6,930 | 17,396 | 36,773 | ¥ 5,010 |
Other receivables | ASU 2016-13 | Cumulative adjustment | ||||
Allowance for doubtful accounts | ||||
Allowance for doubtful accounts, beginning balance | 3,117 | |||
Allowance for doubtful accounts, ending balance | 3,117 | |||
Loans receivable | ||||
Allowance for doubtful accounts | ||||
Allowance for doubtful accounts, beginning balance | 329,364 | 615,592 | ||
Provision for doubtful accounts | 986 | 315,205 | 649,771 | |
Write off | (273,884) | (609,853) | (34,179) | |
Allowance for doubtful accounts, ending balance | ¥ 56,466 | 329,364 | 615,592 | |
Loans receivable | ASU 2016-13 | Cumulative adjustment | ||||
Allowance for doubtful accounts | ||||
Allowance for doubtful accounts, beginning balance | ¥ 8,420 | |||
Allowance for doubtful accounts, ending balance | ¥ 8,420 |
SUMMARY OF SIGNIFICANT ACCOU_30
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Long-term investment and Goodwill (Details) ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Impairment loss of equity securities without readily determinable fair value | ¥ 2,056 | $ 318 | ¥ 0 | ¥ 282,076 | $ 43,688 | ¥ 154,898 | ¥ 23,140 |
Impairment losses on equity method investment | 0 | 30,322 | 179,193 | 27,753 | 22,830 | 0 | |
Impairment losses on held-to-maturity and availableforsale investments | 0 | 0 | 1,221 | 0 | 0 | ||
Balances of held-to-maturity securities | 33,079 | 33,079 | 15,200 | 0 | |||
Goodwill impairment | ¥ 0 | ¥ 50,291 | ¥ 50,291 | $ 7,789 | ¥ 6,191 | ¥ 0 | |
Minimum | |||||||
Ownership interest, voting right | 20.00% | 20.00% | |||||
Maximum | |||||||
Ownership interest, voting right | 50.00% | 50.00% |
SUMMARY OF SIGNIFICANT ACCOU_31
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property, equipment and software, net (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Computer and electronic equipment | ||
PROPERTY, EQUIPMENT AND SOFTWARE, NET | ||
Estimated useful lives | P3Y | 3 years |
Furniture and office equipment | ||
PROPERTY, EQUIPMENT AND SOFTWARE, NET | ||
Estimated useful lives | P5Y | 5 years |
Office building | ||
PROPERTY, EQUIPMENT AND SOFTWARE, NET | ||
Estimated useful lives | P20Y | 20 years |
License | ||
PROPERTY, EQUIPMENT AND SOFTWARE, NET | ||
Estimated useful lives | P20Y | 20 years |
Software | ||
PROPERTY, EQUIPMENT AND SOFTWARE, NET | ||
Estimated useful lives | P5Y | 5 years |
SUMMARY OF SIGNIFICANT ACCOU_32
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Government subsidy income and Leases (Details) - CNY (¥) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Government grants received | ¥ 208,000 | ¥ 889,000 | ¥ 27,440,000 | ¥ 33,665 | ¥ 23,364 |
Maximum | |||||
Remaining lease terms | 4 years | 4 years |
SUMMARY OF SIGNIFICANT ACCOU_33
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Convenience translation and Significant risks and uncertainties (Details) ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Jun. 30, 2020CNY (¥) | Dec. 31, 2018CNY (¥) | |
Significant risks and uncertainties | |||||||
Foreign currency, exchange rate | 6.4566 | 6.4566 | |||||
Cash and cash equivalents | ¥ 1,877,191 | ¥ 2,726,712 | ¥ 4,684,003 | $ 290,740 | $ 422,314 | ¥ 3,651,788 | ¥ 5,469,077 |
Loan receivables, net | 202,130 | 267,383 | 778,480 | $ 31,306 | $ 41,412 | ||
RMB | |||||||
Significant risks and uncertainties | |||||||
Cash and cash equivalents | ¥ 1,302,483 | ¥ 1,531,340 | ¥ 3,251,899 | ||||
Foreign currency risk | Cash and cash equivalents | RMB | |||||||
Significant risks and uncertainties | |||||||
Concentration risk percentage | 69.38% | 56.16% | 69.43% |
SUMMARY OF SIGNIFICANT ACCOU_34
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recent accounting pronouncements (Details) ¥ in Thousands, $ in Thousands | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Jan. 20, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||
Retained earnings (deficit) | ¥ (2,010,642) | $ (311,409) | ¥ (1,822,749) | $ (282,308) | ¥ 44,767 | ¥ 488,236 |
BUSINESS ACQUISITIONS (Detail_2
BUSINESS ACQUISITIONS (Details) ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021CNY (¥) | Dec. 31, 2019CNY (¥) | Jun. 30, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | |
Business Acquisition [Line Items] | |||||
Total cash consideration transferred (net of cash acquired) | ¥ 49,411 | ||||
Gain recognized on remeasurement of previously held equity interest in acquiree | ¥ 656,795 | 16,272 | |||
Goodwill recognized in these acquisitions | ¥ 22,119 | 72,224 | $ 3,426 | ¥ 22,121 | $ 3,426 |
Several business combinations | |||||
Business Acquisition [Line Items] | |||||
Total cash consideration transferred (net of cash acquired) | 49,411 | ||||
Cash acquired | 12,577 | ||||
Fair value of existing equity interest | 35,040 | ||||
Gain recognized on remeasurement of previously held equity interest in acquiree | 16,272 | ||||
Purchase price allocated to the fair value of assets acquired | 111,025 | ||||
Purchase price allocated to the fair value of liabilities assumed | 10,712 | ||||
Purchase price allocated to the fair value of non-controlling | 15,862 | ||||
Goodwill recognized in these acquisitions | 64,954 | ||||
Several business combinations | Trade Name | |||||
Business Acquisition [Line Items] | |||||
Purchase price allocated to the fair value of intangible assets acquired | ¥ 6,400 | ||||
Amortization periods of intangible assets acquired (in years) | 10 years | ||||
Several business combinations | Technology | |||||
Business Acquisition [Line Items] | |||||
Purchase price allocated to the fair value of intangible assets acquired | ¥ 27,600 | ||||
Amortization periods of intangible assets acquired (in years) | 5 years |
LOAN RECEIVABLES, NET (Detail_2
LOAN RECEIVABLES, NET (Details) ¥ in Thousands, $ in Thousands | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
LOAN RECEIVABLES, NET | |||||
Loan receivables | ¥ 258,596 | ¥ 596,747 | ¥ 1,394,072 | ||
Less: Allowance for doubtful accounts | (56,466) | (320,944) | (615,592) | ||
Less: Adpotion of new accounting standard in the last fiscal year | 0 | (8,420) | |||
Total | ¥ 202,130 | $ 31,306 | ¥ 267,383 | $ 41,412 | ¥ 778,480 |
LOAN RECEIVABLES, NET - Narra_2
LOAN RECEIVABLES, NET - Narrative (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Apr. 30, 2018CNY (¥) | Jun. 30, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | Nov. 05, 2021CNY (¥) | Jun. 30, 2021USD ($) | May 31, 2021CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Nov. 06, 2019CNY (¥) | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Loan receivables, net | ¥ 202,130,000 | ¥ 267,383,000 | $ 31,306 | $ 41,412 | ¥ 778,480,000 | ||||
Allowance for loan losses recorded for loan receivables | 56,466,000 | 320,944,000 | 615,592,000 | ||||||
Allowance for doubtful accounts for other loan receivables | 56,500,000 | 320,900 | 73,800,000 | ||||||
Loan receivables on non-accrual status | 16,500,000 | 29,500,000 | 21,338,000 | ||||||
Zhongji Wealth Guarantee Co., Ltd. | Unsecured loans | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Loan receivables, net | ¥ 34,400,000 | ¥ 360,540,000 | |||||||
Term of loan (in years) | 12 months | 12 years | |||||||
Zhongji Wealth Guarantee Co., Ltd. | Minimum | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Term of loan (in years) | 1 year | ||||||||
Zhongji Wealth Guarantee Co., Ltd. | Minimum | Unsecured loans | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Interest rate (as a percent) | 4.00% | 4.00% | 4.00% | 4.00% | |||||
Zhongji Wealth Guarantee Co., Ltd. | Maximum | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Term of loan (in years) | 2 years 6 months | ||||||||
Zhongji Wealth Guarantee Co., Ltd. | Maximum | Unsecured loans | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Interest rate (as a percent) | 10.00% | 10.00% | 10.00% | 10.00% | |||||
Zhongguo Factoring | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Total loans | ¥ 1,431,800,000 | ||||||||
Loan receivables, net | ¥ 0 | 541,800,000 | |||||||
Maturity of a loan | ¥ 427,500,000 | ||||||||
Allowance for loan losses recorded for loan receivables | 0 | ¥ 541,800,000 | |||||||
Loan receivables repaid | 7,400,000 | ||||||||
Zhongguo Factoring | Minimum | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Interest rate (as a percent) | 4.35% | ||||||||
Zhongguo Factoring | Maximum | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Interest rate (as a percent) | 9.00% | ||||||||
Certain post loan service companies | Subsequent events | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Loan receivables repaid | ¥ 22,000,000 | ¥ 10,800,000 | |||||||
Certain post loan service companies | Unsecured loans | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Total loans | ¥ 50,200,000 | ¥ 66,200,000 | |||||||
Term of loan (in years) | 21 months | 21 months | |||||||
Certain post loan service companies | Zhongji Wealth Guarantee Co., Ltd. | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Loans guaranteed | ¥ 170,000,000 | ¥ 170,000,000 | |||||||
Interest rate (as a percent) | 6.00% | 6.00% | 6.00% | 6.00% | |||||
Certain post loan service companies | Zhongji Wealth Guarantee Co., Ltd. | Minimum | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Term of loan (in years) | 11 months | 11 months | |||||||
Certain post loan service companies | Zhongji Wealth Guarantee Co., Ltd. | Maximum | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Term of loan (in years) | 12 months | 12 months | |||||||
Certain third-party loan borrowers | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Loan receivables, net | ¥ 258,600,000 | ¥ 596,700,000 |
LOAN RECEIVABLES, NET - Aging_2
LOAN RECEIVABLES, NET - Aging of loans (Details) - CNY (¥) ¥ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | |||
Total past due | ¥ 16,500 | ¥ 29,500 | ¥ 73,677 |
Current | 242,096 | 567,247 | 1,320,395 |
Total loans | 258,596 | 596,747 | 1,394,072 |
1 - 89 days past due | |||
Financing Receivable, Past Due [Line Items] | |||
Total past due | 52,339 | ||
90 days or more past due | |||
Financing Receivable, Past Due [Line Items] | |||
Total past due | ¥ 16,500 | ¥ 29,500 | ¥ 21,338 |
PREPAID EXPENSE AND OTHER ASS_6
PREPAID EXPENSE AND OTHER ASSETS (Details) ¥ in Thousands, $ in Thousands | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
PREPAID EXPENSE AND OTHER ASSETS | |||||
Deposits | ¥ 81,068 | ¥ 91,258 | ¥ 100,278 | ||
Advances to suppliers | 124,365 | 10,607 | 37,118 | ||
Prepaid taxes | 320,408 | 338,450 | 294,487 | ||
Prepaid service fee | 11,015 | 45,201 | 17,268 | ||
Prepaid investment | 304,996 | 270,996 | 632,096 | ||
Others | 40,313 | 37,046 | 56,540 | ||
Less: Adoption of new accounting standard | (394) | (466) | |||
Total | ¥ 881,771 | $ 136,569 | ¥ 793,092 | $ 122,834 | ¥ 1,137,787 |
FAIR VALUE OF ASSETS AND LIAB_6
FAIR VALUE OF ASSETS AND LIABILITIES (Details) - CNY (¥) ¥ in Thousands | Jun. 30, 2021 | Dec. 31, 2019 |
Assets | ||
Investment in marketable securities | ¥ 0 | |
Total Assets | 0 | ¥ 10,443 |
Level 1 | Recurring | ||
Assets | ||
Investment in marketable securities | 206,272 | |
Total Assets | 206,272 | 0 |
Level 2 | Recurring | ||
Assets | ||
Investment in marketable securities | 0 | |
Total Assets | 0 | 0 |
Level 3 | Recurring | ||
Assets | ||
Investment in marketable securities | 0 | |
Total Assets | ¥ 0 | ¥ 10,443 |
LONG-TERM INVESTMENTS (Detail_2
LONG-TERM INVESTMENTS (Details) ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | 18 Months Ended | |||||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Jun. 30, 2021CNY (¥) | |
Equity securities without readily determinable fair value | ||||||||
Beginning Balance | ¥ 647,702 | ¥ 543,178 | ¥ 543,178 | ¥ 699,747 | ¥ 543,178 | |||
Additions | 34,566 | 396,549 | 5,000 | |||||
Disposal | (23,887) | (5,000) | (8,750) | |||||
Share of (loss) in equity method investments | (7,629) | $ (1,182) | (5,741) | (21,317) | $ (3,302) | (29,455) | ¥ (41,143) | |
Impairment loss of investments | (2,056) | (318) | 0 | (282,076) | (43,688) | (154,898) | (23,140) | |
Unrealized losses recorded in accumulated other comprehensive loss | (100) | (99) | (1,146) | |||||
Impact of exchange rate | 470 | (4,949) | 2,079 | |||||
Ending Balance | 656,795 | 647,702 | 543,178 | 699,747 | 656,795 | |||
Gain recognized on remeasurement of previously held equity interest in acquire (Note 3) | 656,795 | 16,272 | ||||||
Business combinations achieved in stages (Note 3) | (35,040) | |||||||
Equity method investments | ||||||||
Beginning Balance | 57,491 | 206,823 | 206,823 | 219,935 | 206,823 | |||
Additions | 53,929 | 161,951 | ||||||
Disposal | (104,149) | |||||||
Share of (loss) in equity method investments | (7,629) | (1,182) | (5,741) | (21,317) | (3,302) | (29,455) | (41,143) | |
Impairment charges | 0 | (30,322) | (179,193) | (27,753) | (22,830) | 0 | ||
Unrealized losses recorded in accumulated other comprehensive loss | (100) | (99) | (1,146) | |||||
Impact of exchange rate | (740) | (2,751) | 139 | |||||
Gain recognized on remeasurement of previously held equity interest in acquire (Note 3) | 656,795 | 16,272 | ||||||
Business combinations achieved in stages (Note 3) | (35,040) | |||||||
Ending Balance | 49,122 | 57,491 | 206,823 | 219,935 | 49,122 | |||
Available for sales investment | ||||||||
Beginning Balance | 0 | 10,443 | 10,443 | 34,476 | 10,443 | |||
Additions | 10,533 | |||||||
Disposal | (10,443) | (35,739) | ||||||
Share of (loss) in equity method investments | (7,629) | (1,182) | (5,741) | (21,317) | (3,302) | (29,455) | (41,143) | |
Impairment charges | 0 | (30,322) | (179,193) | (27,753) | (22,830) | 0 | ||
Unrealized losses recorded in accumulated other comprehensive loss | (100) | (99) | (1,146) | |||||
Impact of exchange rate | (1,272) | |||||||
Gain recognized on remeasurement of previously held equity interest in acquire (Note 3) | 656,795 | 16,272 | ||||||
Business combinations achieved in stages (Note 3) | (35,040) | |||||||
Ending Balance | 0 | 10,443 | 34,476 | |||||
Held-to-maturity investment | ||||||||
Beginning balance | 33,079 | 15,200 | 15,200 | 0 | 15,200 | |||
Additions | 19,100 | 15,200 | ||||||
Impairment charges | (1,221) | |||||||
Ending balance | 33,079 | 33,079 | 15,200 | 0 | 33,079 | |||
Long term investments | ||||||||
Beginning Balance | 738,272 | 114,344 | ¥ 775,644 | 775,644 | 954,158 | 775,644 | ||
Additions | 34,566 | 469,578 | 192,684 | |||||
Disposal | (23,887) | (15,443) | (148,638) | |||||
Share of (loss) in equity method investments | (7,629) | (21,317) | (29,455) | |||||
Impairment charges | (2,056) | (462,490) | (177,728) | |||||
Unrealized losses recorded in accumulated other comprehensive loss | (99) | |||||||
Impact of exchange rate | (270) | (7,700) | 3,490 | |||||
Gain recognized on remeasurement of previously held equity interest in acquire (Note 3) | 16,272 | |||||||
Business combinations achieved in stages (Note 3) | (35,040) | |||||||
Ending Balance | ¥ 738,996 | $ 114,456 | ¥ 738,272 | $ 114,344 | ¥ 775,644 | ¥ 954,158 | ¥ 738,996 |
LONG-TERM INVESTMENTS - Equit_3
LONG-TERM INVESTMENTS - Equity securities without readily determinable fair value (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | 18 Months Ended | ||||||||||||||
Nov. 30, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Sep. 30, 2018CNY (¥) | Mar. 31, 2018USD ($) | Jan. 31, 2018USD ($) | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Jun. 30, 2021CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | |
Subsidiary or Equity Method Investee [Line Items] | ||||||||||||||||||
Equity securities without readily determinable fair value | ¥ 543,178,000 | ¥ 656,795,000 | ¥ 647,702,000 | ¥ 543,178,000 | ¥ 699,747,000 | ¥ 656,795,000 | ||||||||||||
Impairment loss of investments | 2,056,000 | $ 318 | ¥ 0 | 282,076,000 | $ 43,688 | 154,898,000 | 23,140,000 | |||||||||||
Shanghai Xinzheng | ||||||||||||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||||||||||||
Equity securities without readily determinable fair value | ¥ 129,786,000 | ¥ 129,786,000 | ¥ 129,786,000 | ¥ 129,786,000 | ¥ 129,786,000 | |||||||||||||
Purchase of equity interest (as a percent) | 15.00% | |||||||||||||||||
Purchase of investments, cash consideration | ¥ 129,786,000 | |||||||||||||||||
Equity interest (as a percent) | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | |||||||||||
Impairment loss of investments | ¥ 0 | ¥ 0 | ¥ 0 | |||||||||||||||
Impairment existed | ¥ 0 | 0 | 0 | 0 | ¥ 0 | |||||||||||||
Ezhou Rural Commercial bank | ||||||||||||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||||||||||||
Equity securities without readily determinable fair value | 40,000,000 | 40,000,000 | 40,000,000 | 40,000,000 | 40,000,000 | |||||||||||||
BitPay, Inc. | ||||||||||||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||||||||||||
Equity securities without readily determinable fair value | ¥ 27,847,000 | ¥ 24,783,000 | ¥ 26,100,000 | ¥ 27,847,000 | ¥ 24,783,000 | |||||||||||||
Purchase of equity interest (as a percent) | 1.11% | |||||||||||||||||
Purchase of investments, cash consideration | $ | $ 4,000 | |||||||||||||||||
Equity interest (as a percent) | 1.11% | 1.11% | 1.11% | 1.11% | 1.11% | 1.11% | 1.11% | |||||||||||
Impairment loss of investments | ¥ 0 | ¥ 0 | ¥ 0 | |||||||||||||||
Impairment existed | ¥ 0 | ¥ 0 | 0 | 0 | 0 | 0 | ||||||||||||
Goopal Group | ||||||||||||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||||||||||||
Equity securities without readily determinable fair value | ¥ 18,936,000 | 17,562,000 | ¥ 17,748,000 | ¥ 18,936,000 | 17,562,000 | |||||||||||||
Purchase of equity interest (as a percent) | 1.94% | 1.94% | 1.94% | |||||||||||||||
Purchase of investments, cash consideration | $ | $ 2,720 | $ 2,720 | ||||||||||||||||
Equity interest (as a percent) | 1.94% | 1.94% | 1.94% | 1.94% | 1.94% | 1.94% | ||||||||||||
Impairment loss of investments | 0 | ¥ 0 | ¥ 0 | |||||||||||||||
Impairment existed | 0 | 0 | $ 0 | $ 0 | $ 0 | |||||||||||||
Hubei Consumption | ||||||||||||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||||||||||||
Equity securities without readily determinable fair value | 361,100,000 | 361,100,000 | 361,100,000 | |||||||||||||||
Purchase of investments, cash consideration | ¥ 361,100,000 | ¥ 361,100,000 | ||||||||||||||||
Equity interest (as a percent) | 24.47% | 0.00% | 24.47% | 0.00% | 24.47% | |||||||||||||
Impairment loss of investments | 0 | ¥ 0 | ||||||||||||||||
Impairment existed | 0 | 0 | 0 | |||||||||||||||
Zhuhai Yuanxin | ||||||||||||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||||||||||||
Equity securities without readily determinable fair value | ¥ 15,000,000 | 15,000,000 | 15,000,000 | 15,000,000 | ||||||||||||||
Purchase of investments, cash consideration | ¥ 15,000,000 | |||||||||||||||||
Equity interest (as a percent) | 33.33% | |||||||||||||||||
Impairment loss of investments | 0 | 0 | ||||||||||||||||
Impairment existed | 0 | 0 | 0 | |||||||||||||||
Ningbo Weilie | ||||||||||||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||||||||||||
Equity securities without readily determinable fair value | 20,000,000 | 20,000,000 | 20,000,000 | ¥ 20,000,000 | ||||||||||||||
Equity interest (as a percent) | 8.50% | |||||||||||||||||
Impairment loss of investments | 0 | 0 | ||||||||||||||||
Impairment existed | 0 | 0 | 0 | |||||||||||||||
PT.TIRTA FinaNCE(INA) | ||||||||||||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||||||||||||
Equity securities without readily determinable fair value | ¥ 19,467,000 | ¥ 19,467,000 | ||||||||||||||||
Equity interest (as a percent) | 40.00% | 40.00% | ||||||||||||||||
Impairment loss of investments | ¥ 0 | |||||||||||||||||
Impairment existed | 0 | ¥ 0 | ||||||||||||||||
Others | ||||||||||||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||||||||||||
Equity securities without readily determinable fair value | ¥ 29,097,000 | 37,968,000 | ¥ 29,097,000 | |||||||||||||||
Impairment loss of investments | ¥ 0 | ¥ 20,724,000 | ¥ 23,140,000 |
LONG-TERM INVESTMENTS - Equit_4
LONG-TERM INVESTMENTS - Equity method investments (Details) - CNY (¥) ¥ in Thousands | 1 Months Ended | ||||
Sep. 30, 2017 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Subsidiary or Equity Method Investee [Line Items] | |||||
Equity method investments | ¥ 49,122 | ¥ 57,491 | ¥ 206,823 | ¥ 219,935 | |
CSJ Golden Bull | |||||
Subsidiary or Equity Method Investee [Line Items] | |||||
Equity method investments | ¥ 21,143 | ¥ 22,135 | ¥ 26,675 | ||
Purchase of investments, cash consideration | ¥ 40,900 | ||||
Equity interest (as a percent) | 25.00% | 25.00% | 25.00% | ||
Others | |||||
Subsidiary or Equity Method Investee [Line Items] | |||||
Equity method investments | ¥ 27,979 | ¥ 35,356 | ¥ 28,197 |
LONG-TERM INVESTMENTS - Held-_2
LONG-TERM INVESTMENTS - Held-to-maturity investments (Details) - CNY (¥) ¥ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
LONG-TERM INVESTMENTS | |||
Cash consideration | ¥ 19,100 | ¥ 15,200 | |
Impairment loss | ¥ 0 | ¥ 1,221 | ¥ 0 |
PROPERTY, EQUIPMENT AND SOFTW_6
PROPERTY, EQUIPMENT AND SOFTWARE, NET (Details) ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | |
PROPERTY, EQUIPMENT AND SOFTWARE, NET | |||||||||
Total property and equipment | ¥ 168,750 | ¥ 163,468 | ¥ 172,147 | ||||||
Accumulated depreciation and amortization | (93,092) | (79,147) | (61,771) | ||||||
Impairment loss for technology of discontinued online lending information services | (23,235) | (20,925) | |||||||
Property, equipment, net | 52,423 | 63,396 | 110,376 | $ 8,119 | $ 9,819 | ||||
Depreciation expense | 13,945 | $ 2,160 | ¥ 10,032 | 14,500 | $ 2,246 | 28,071 | ¥ 16,123 | ||
Office building | |||||||||
PROPERTY, EQUIPMENT AND SOFTWARE, NET | |||||||||
Total property and equipment | 46,376 | 19,470 | 19,470 | ||||||
Computer and electronic equipment | |||||||||
PROPERTY, EQUIPMENT AND SOFTWARE, NET | |||||||||
Total property and equipment | 59,008 | 57,856 | 62,748 | ||||||
Furniture and office equipment | |||||||||
PROPERTY, EQUIPMENT AND SOFTWARE, NET | |||||||||
Total property and equipment | 9,455 | 10,065 | 14,039 | ||||||
Leasehold improvements | |||||||||
PROPERTY, EQUIPMENT AND SOFTWARE, NET | |||||||||
Total property and equipment | 2,476 | 30,069 | 33,050 | ||||||
Software | |||||||||
PROPERTY, EQUIPMENT AND SOFTWARE, NET | |||||||||
Total property and equipment | ¥ 51,435 | ¥ 46,008 | ¥ 42,840 |
INTANGIBLE ASSETS, NET (Detai_2
INTANGIBLE ASSETS, NET (Details) ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
INTANGIBLE ASSETS, NET | |||||||
Total Intangible assets | ¥ 85,553 | ¥ 85,880 | ¥ 88,006 | ||||
Accumulated amortization | (27,988) | (24,247) | (14,530) | ||||
Impairment loss of technology with discontinued online lending information intermediaries | (17,220) | (17,220) | |||||
Intangible assets, net | 40,345 | 44,413 | 73,476 | ||||
Amortization expense | 3,741 | $ 579 | ¥ 5,693 | 9,717 | $ 1,505 | 9,398 | ¥ 2,640 |
Expected amortization expense related to intangible assets | |||||||
2021 | 3,465 | 7,281 | |||||
2022 | 5,557 | 5,599 | |||||
2023 | 5,557 | 5,599 | |||||
2024 | 3,954 | 3,971 | |||||
2025 | 3,379 | 3,397 | |||||
Thereafter | ¥ 18,433 | ¥ 18,568 | |||||
Minimum | |||||||
INTANGIBLE ASSETS, NET | |||||||
Amortization periods (in years) | 2 years 7 months 6 days | 2 years 7 months 6 days | 2 years 7 months 6 days | 2 years 7 months 6 days | |||
Maximum | |||||||
INTANGIBLE ASSETS, NET | |||||||
Amortization periods (in years) | 20 years | 20 years | 20 years | 20 years | |||
Brokerage licenses | |||||||
INTANGIBLE ASSETS, NET | |||||||
Total Intangible assets | ¥ 51,553 | ¥ 51,880 | 54,006 | ||||
Trade Name | |||||||
INTANGIBLE ASSETS, NET | |||||||
Total Intangible assets | 6,400 | 6,400 | 6,400 | ||||
Technology | |||||||
INTANGIBLE ASSETS, NET | |||||||
Total Intangible assets | ¥ 27,600 | ¥ 27,600 | ¥ 27,600 |
ACCRUED EXPENSES AND OTHER LI_6
ACCRUED EXPENSES AND OTHER LIABILITIES (Details) ¥ in Thousands, $ in Thousands | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
ACCRUED EXPENSES AND OTHER LIABILITIES | |||||
Accrued advertising and marketing fee | ¥ 98,888 | ¥ 105,638 | ¥ 715,218 | ||
Payables related to services fee and others | 166,154 | 152,396 | 248,816 | ||
Amounts due to customers for the segregated bank balances held on their behalf | 474,969 | 405,719 | 125,437 | ||
Deposit | 2,486 | 2,913 | 15,995 | ||
Value added tax and surcharges | 6,590 | 16,494 | 42,699 | ||
Others | 37,126 | 43,526 | 80,945 | ||
Total accrued expenses and other current liabilities | ¥ 786,213 | $ 121,768 | ¥ 726,686 | $ 112,549 | ¥ 1,229,110 |
RELATED PARTY BALANCES AND TR_6
RELATED PARTY BALANCES AND TRANSACTIONS (Details) ¥ in Thousands, $ in Thousands | Apr. 20, 2018USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Related Party Transaction [Line Items] | |||||||
Services provided by related parties | ¥ 1,259 | ¥ 57,890 | ¥ 76,769 | ||||
Services provided to related parties | 2,099 | 35,001 | |||||
Amounts due from related parties | 50,000 | ||||||
Amounts due to related parties | 25,289 | 29,902 | ¥ 23,590 | $ 3,654 | $ 3,917 | ||
Loans to related parties | 50,884 | 142,181 | |||||
Beijing Shunwei | |||||||
Related Party Transaction [Line Items] | |||||||
Services provided to related parties | 3,941 | ||||||
Kashi Boya | |||||||
Related Party Transaction [Line Items] | |||||||
Services provided to related parties | 4,495 | ||||||
Shenzhen Boya | |||||||
Related Party Transaction [Line Items] | |||||||
Services provided to related parties | 6 | ||||||
Beijing Jiuzao | |||||||
Related Party Transaction [Line Items] | |||||||
Amounts due to related parties | 182 | 7,300 | |||||
Nanjing Lefang | |||||||
Related Party Transaction [Line Items] | |||||||
Services provided to related parties | 1,994 | 26,386 | |||||
Amounts due from related parties | 50,000 | ||||||
Amounts due to related parties | 18,834 | 18,474 | 18,834 | ||||
Shanghai Qiuzhi | |||||||
Related Party Transaction [Line Items] | |||||||
Services provided to related parties | 99 | ||||||
Amounts due to related parties | 120 | ||||||
Hangzhou Shuyun | |||||||
Related Party Transaction [Line Items] | |||||||
Amounts due to related parties | 18 | 883 | 18 | ||||
Zhuhai Hengqin Payment | |||||||
Related Party Transaction [Line Items] | |||||||
Amounts due to related parties | 4,731 | 3,125 | 4,731 | ||||
Others | |||||||
Related Party Transaction [Line Items] | |||||||
Services provided to related parties | 179 | ||||||
Nine F | |||||||
Related Party Transaction [Line Items] | |||||||
Loans to related parties | $ | $ 20,000 | ||||||
Loan term (in years) | 3 years | ||||||
Niche Global Fintech Corporation Limited | |||||||
Related Party Transaction [Line Items] | |||||||
Amounts due to related parties | 1,524 | ¥ 7 | |||||
Investors and borrower acquisition and referral services | |||||||
Related Party Transaction [Line Items] | |||||||
Services provided by related parties | 901 | 42,770 | 37,769 | ||||
Investors and borrower acquisition and referral services | Beijing Jiujia | |||||||
Related Party Transaction [Line Items] | |||||||
Services provided by related parties | 9,965 | ||||||
Investors and borrower acquisition and referral services | Beijing Shunwei | |||||||
Related Party Transaction [Line Items] | |||||||
Services provided by related parties | 0 | 1,221 | 5,133 | ||||
Investors and borrower acquisition and referral services | Shenzhen Boya | |||||||
Related Party Transaction [Line Items] | |||||||
Services provided by related parties | 4,696 | 9,781 | |||||
Investors and borrower acquisition and referral services | Beijing Jiuzao | |||||||
Related Party Transaction [Line Items] | |||||||
Services provided by related parties | 852 | 7,257 | |||||
Investors and borrower acquisition and referral services | Nanjing Lefang | |||||||
Related Party Transaction [Line Items] | |||||||
Services provided by related parties | 29,476 | 12,890 | |||||
Investors and borrower acquisition and referral services | Shanghai Qiuzhi | |||||||
Related Party Transaction [Line Items] | |||||||
Services provided by related parties | 49 | 120 | |||||
Credit inquiry services | |||||||
Related Party Transaction [Line Items] | |||||||
Services provided by related parties | 358 | 5,925 | 427 | ||||
Credit inquiry services | WeCash Xiangshan | |||||||
Related Party Transaction [Line Items] | |||||||
Services provided by related parties | 427 | ||||||
Credit inquiry services | Hangzhou Shuyun | |||||||
Related Party Transaction [Line Items] | |||||||
Services provided by related parties | ¥ 358 | 5,925 | |||||
Payment processing service | |||||||
Related Party Transaction [Line Items] | |||||||
Services provided by related parties | 9,175 | 38,312 | |||||
Payment processing service | Zhuhai Hengqin Payment | |||||||
Related Party Transaction [Line Items] | |||||||
Services provided by related parties | 9,175 | 17,808 | |||||
Payment processing service | Huoerguosi Payment | |||||||
Related Party Transaction [Line Items] | |||||||
Services provided by related parties | 20,504 | ||||||
Payment processing service | Others | |||||||
Related Party Transaction [Line Items] | |||||||
Services provided by related parties | ¥ 20 | ¥ 261 |
INCOME TAXES (Details)_2
INCOME TAXES (Details) | 6 Months Ended | 9 Months Ended | 12 Months Ended | 24 Months Ended | 60 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2021 | |
Income Tax Disclosure [Line Items] | ||||||||
Statutory income tax rate (as a percent) | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | |||
Income tax rate on first HK$2 million profits | 8.25% | 8.25% | 8.25% | 8.25% | ||||
Income tax rate on remaining profits | 16.50% | 16.50% | 16.50% | 16.50% | ||||
Period for reassessment (in years) | 3 years | 3 years | ||||||
Minimum | ||||||||
Income Tax Disclosure [Line Items] | ||||||||
Preferential income tax rate (as a percent) | 15.00% | 15.00% | ||||||
Maximum | ||||||||
Income Tax Disclosure [Line Items] | ||||||||
Preferential income tax rate (as a percent) | 20.00% | 20.00% | ||||||
Beijing Muyu | ||||||||
Income Tax Disclosure [Line Items] | ||||||||
Preferential income tax rate (as a percent) | 15.00% | 15.00% | 15.00% | |||||
Jiufu Shuke, Jiufu Lianyin, Jiufu Puhui and Jiufu Wukong | ||||||||
Income Tax Disclosure [Line Items] | ||||||||
Preferential income tax rate (as a percent) | 15.00% | 15.00% | 15.00% | |||||
Yisi Hudong | ||||||||
Income Tax Disclosure [Line Items] | ||||||||
Preferential income tax rate (as a percent) | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | |||
9F Weiban | ||||||||
Income Tax Disclosure [Line Items] | ||||||||
Preferential income tax rate (as a percent) | 15.00% | 15.00% | 15.00% | 15.00% | ||||
Zhuhai Hengqin | ||||||||
Income Tax Disclosure [Line Items] | ||||||||
Preferential income tax rate (as a percent) | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | |||
Zhuhai Xiaojin | ||||||||
Income Tax Disclosure [Line Items] | ||||||||
Preferential income tax rate (as a percent) | 15.00% | 15.00% | 15.00% | |||||
Jiufu Dingdang | ||||||||
Income Tax Disclosure [Line Items] | ||||||||
Preferential income tax rate (as a percent) | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | |||
Xinjiang Shuke, Kashi Boya and Jiufu Chaoneng | ||||||||
Income Tax Disclosure [Line Items] | ||||||||
Period of exemption from income tax (in years) | 5 years | |||||||
Liangzi | ||||||||
Income Tax Disclosure [Line Items] | ||||||||
Preferential income tax rate (as a percent) | 25.00% | |||||||
Beijing Beibai Technology Co., Ltd, Beijing Juhuixuan Technology Co., Ltd, Shenzhen Jiufu Xinfu Commercial Factoring Co., Ltd, Jiuxing insurance brokerage Co., Ltd, Beijing Jiubao Technology Co., Ltd, Zhuhai Jiuxin Asset Management Co., Ltd, and Qianhai Jiufu network technology (Shenzhen) Co., Ltd | ||||||||
Income Tax Disclosure [Line Items] | ||||||||
Preferential income tax rate (as a percent) | 20.00% | 20.00% | 20.00% |
INCOME TAXES - Current and de_2
INCOME TAXES - Current and deferred components of the income tax expense (Details) ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Current and deferred components of the income tax expense | |||||||
Current tax | ¥ 17,998 | ¥ 25,439 | ¥ 42,758 | ¥ 245,397 | ¥ 376,177 | ||
Deferred tax | 0 | (7,565) | 495,546 | (419,994) | 26,226 | ||
Total | ¥ 17,998 | $ 2,788 | ¥ 17,874 | ¥ 538,322 | $ 83,375 | ¥ (174,597) | ¥ 402,403 |
INCOME TAXES - Reconciliation_2
INCOME TAXES - Reconciliation of income tax expenses at statutory tax rate to income tax expense recognized (Details) ¥ in Thousands | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Reconciliation of income tax expense at statutory tax | ||||||||
Income (loss) before income tax expenses | ¥ (167,335) | $ (25,917,000) | ¥ (720,984) | ¥ (1,691,563) | $ (261,989,000) | ¥ (2,220,324) | ¥ 2,418,729 | |
Statutory EIT rate | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% |
Income tax expense at statutory tax rate | $ (41,834) | $ (180,246) | ¥ (422,891) | ¥ (555,081) | ¥ 604,682 | |||
Nondeductible expenses | ¥ 1,260 | ¥ 11,901 | 278,303 | 15,362 | 19,526 | |||
Change in valuation allowance | (252,398) | 96,202 | 504,360 | 43,350 | 20,980 | |||
Effect of tax holiday and preferential tax rate | 301,815 | $ 31,734 | 104,218 | 221,590 | (375,632) | |||
Share-based compensation expenses | 8,729 | 51,752 | 72,657 | 88,288 | 127,041 | |||
Effect of different tax rates of subsidiaries operating in other jurisdictions | 426 | 6,531 | 1,675 | 11,894 | 5,806 | |||
Total | 17,998 | $ 2,788,000 | 17,874 | 538,322 | $ 83,375,000 | (174,597) | 402,403 | |
Non-deductible expenses | ||||||||
Nondeductible expenses-excessive advertising fees | 0 | 0 | 2,927 | |||||
Other nondeductible expenses | 1,260 | 11,901 | 278,303 | 15,362 | 16,599 | |||
Total | ¥ 1,260 | ¥ 11,901 | ¥ 278,303 | ¥ 15,362 | ¥ 19,526 |
INCOME TAXES - Tax holiday an_2
INCOME TAXES - Tax holiday and preferential tax rate (Details) - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
INCOME TAXES | |||||
The aggregate amount of tax holiday and preferential tax rate | ¥ (301,815) | ¥ (31,734) | ¥ (104,218) | ¥ (221,590) | ¥ 375,632 |
The aggregate effect on basic and diluted net income per ordinary share: | |||||
-Basic | ¥ (3.01) | ¥ (0.16) | ¥ (0.52) | ¥ (1.27) | ¥ 2.31 |
-Diluted | ¥ (3.01) | ¥ (0.16) | ¥ (0.52) | ¥ (1.27) | ¥ 2.02 |
INCOME TAXES - Deferred tax a_2
INCOME TAXES - Deferred tax assets (Details) - CNY (¥) ¥ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets | ||||||
Deferred revenue | ¥ 1,585 | ¥ 11,786 | ¥ 58,095 | ¥ 104,750 | ¥ 36,834 | |
Accrued expenses | 2,988 | 106,404 | 37,649 | 105,475 | 55,110 | |
Allowance for doubtful accounts | 11,374 | 330,488 | 305,435 | 265,745 | 4,335 | |
Net operating loss carry forward | 335,685 | 142,722 | 227,907 | 80,485 | 44,379 | |
Excess advertising fee | 12,630 | 81,923 | 47,202 | |||
Less: valuation allowance | ¥ (351,632) | ¥ (604,030) | (197,077) | (99,670) | (56,320) | ¥ (35,340) |
Total deferred tax assets, net | ¥ 513,932 | ¥ 503,987 | ¥ 84,338 |
INCOME TAXES - Movements of v_2
INCOME TAXES - Movements of valuation allowance (Details) - CNY (¥) ¥ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Movements of valuation allowance | |||||
Balance at beginning of year | ¥ 604,030 | ¥ 99,670 | ¥ 99,670 | ¥ 56,320 | ¥ 35,340 |
Additions | 97,407 | 504,360 | 56,132 | 34,459 | |
Reversal | (252,398) | 0 | (12,782) | (13,479) | |
Balance at end of year | ¥ 351,632 | ¥ 197,077 | ¥ 604,030 | ¥ 99,670 | ¥ 56,320 |
INCOME TAXES - Deferred tax l_2
INCOME TAXES - Deferred tax liabilities (Details) - CNY (¥) ¥ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax liabilities: | |||||
Intangible asset from acquisition | ¥ 8,504 | ¥ 9,280 | ¥ 13,227 | ¥ 15,354 | ¥ 9,003 |
Contract assets | 1,861 | ||||
Total deferred liabilities | ¥ 8,504 | ¥ 9,280 | ¥ 13,227 | ¥ 17,215 | ¥ 9,003 |
INCOME TAXES - Additional inf_2
INCOME TAXES - Additional information (Details) - CNY (¥) ¥ in Thousands | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Line Items] | ||||||
Statutory income tax rate (as a percent) | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | |
Exemption period (in years) | 5 years | 5 years | ||||
Period for statute of limitations for underpayment of tax due to computational errors | 3 years | 3 years | ||||
Period for statute of limitations for underpayment of tax exceeding RMB0.1 million | 5 years | 5 years | ||||
Period for statute of limitations on related party transactions | 10 years | 10 years | ||||
Period for statute of limitations for tax evasion | 0 years | 0 years | ||||
Aggregate undistributed earnings of PRC subsidiaries and VIEs | ¥ 100 | ¥ 100 | ||||
Withholding tax rate (as a percent) | 10.00% | 10.00% | ||||
Withholding income taxes for undistributed profits of the Group's subsidiaries | ¥ 0 | ¥ 0 | ¥ 0 | ¥ 0 | ¥ 0 | |
HONG KONG | Investor holds at least 25% in the FIE | ||||||
Income Tax Disclosure [Line Items] | ||||||
Withholding tax rate (as a percent) | 5.00% | 5.00% | ||||
HONG KONG | Investor holds less than 25% in the FIE | ||||||
Income Tax Disclosure [Line Items] | ||||||
Withholding tax rate (as a percent) | 10.00% | 10.00% | ||||
Minimum | ||||||
Income Tax Disclosure [Line Items] | ||||||
Transfer price adjustment rate | 15.00% | 15.00% | ||||
Maximum | ||||||
Income Tax Disclosure [Line Items] | ||||||
Transfer price adjustment rate | 25.00% | 25.00% |
SHARE BASED COMPENSATION - Sh_5
SHARE BASED COMPENSATION - Share options (Details) ¥ / shares in Units, ¥ in Thousands | 6 Months Ended | 12 Months Ended | ||||||||||
Jun. 30, 2021¥ / sharesshares | Dec. 31, 2020$ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2017shares | Dec. 31, 2021shares | Sep. 30, 2021shares | May 28, 2020shares | Apr. 20, 2020shares | Mar. 20, 2020shares | Dec. 31, 2015shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares reserved for issuance | 3,518,000 | 35,867,400 | ||||||||||
Additional shares reserved for issuance | 3,518,000 | 35,867,400 | ||||||||||
Exercise price per share | ¥ / shares | ¥ 0 | |||||||||||
Share options expected to vest | 500,000 | 680,300 | 680,300 | |||||||||
Vesting period | 5 years | 5 years | ||||||||||
Exercise of share options (in shares) | 0 | 8,319,681 | ||||||||||
Share based compensation | ¥ | ¥ 290,630 | ¥ 353,151 | ¥ 508,162 | |||||||||
Option 1 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 100,100 | |||||||||||
Share options expected to vest | 4,425,211 | 100,100 | 618,400 | |||||||||
Vesting period | 5 years | |||||||||||
Option 1 | Tranche one | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 15.00% | |||||||||||
Option 1 | Tranche two | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 20.00% | |||||||||||
Option 1 | Tranche three | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 20.00% | |||||||||||
Option 1 | Tranche four | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 20.00% | |||||||||||
Option 1 | Tranche five | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 25.00% | |||||||||||
Option 1 | Vest upon IPO | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Additional shares reserved for issuance | 500,700 | |||||||||||
Option 2 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share options expected to vest | 2,655,127 | 2,853,911 | 2,853,911 | 34,600 | 400,000 | 1,426,955 | 1,426,955 | |||||
Vesting period | 4 years | 4 years | ||||||||||
Option 2 | Subsequent events | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share options expected to vest | 442,521 | 1,327,563 | ||||||||||
Option 2 | Tranche one | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 40.00% | |||||||||||
Option 2 | Tranche two | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 20.00% | |||||||||||
Option 2 | Tranche three | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 20.00% | |||||||||||
Option 2 | Tranche four | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 20.00% | |||||||||||
Option 3 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share options expected to vest | 33,600 | 357,800 | 3,345,098 | |||||||||
Vesting period | 5 years | 4 years | ||||||||||
Option 3 | Tranche one | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 20.00% | |||||||||||
Option 3 | Tranche two | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 20.00% | |||||||||||
Option 3 | Tranche three | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 30.00% | |||||||||||
Option 3 | Tranche four | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 30.00% | |||||||||||
Option 3 | Vest upon IPO | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share options expected to vest | 178,900 | |||||||||||
Option 4 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share options expected to vest | 178,900 | 178,900 | 46,500 | 100,000 | ||||||||
Vesting period | 4 years | 5 years | 5 years | |||||||||
Option 4 | Tranche one | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 20.00% | 15.00% | 16.00% | |||||||||
Option 4 | Tranche two | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 20.00% | 20.00% | 16.00% | |||||||||
Option 4 | Tranche three | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 30.00% | 20.00% | 16.00% | |||||||||
Option 4 | Tranche four | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 30.00% | 20.00% | 16.00% | |||||||||
Option 4 | Tranche five | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 25.00% | 16.00% | ||||||||||
Option 4 | Tranche six | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 20.00% | |||||||||||
Option 5 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share options expected to vest | 445,280 | 445,280 | 64,700 | 603,300 | ||||||||
Vesting period | 5 years | 4 years | 3 years | |||||||||
Option 5 | Tranche one | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 20.00% | 60.00% | ||||||||||
Option 5 | Tranche two | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 25.00% | 30.00% | ||||||||||
Option 5 | Tranche three | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 25.00% | 10.00% | ||||||||||
Option 5 | Tranche four | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 30.00% | |||||||||||
Option 6 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share options expected to vest | 100,000 | |||||||||||
Vesting period | 6 years | |||||||||||
Option 6 | Tranche one | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 12.00% | |||||||||||
Option 6 | Tranche two | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 12.00% | |||||||||||
Option 6 | Tranche three | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 16.00% | |||||||||||
Option 6 | Tranche four | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 20.00% | |||||||||||
Option 6 | Tranche five | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 20.00% | |||||||||||
Option 6 | Tranche six | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 20.00% | |||||||||||
Option 7 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share options expected to vest | 2,000,000 | |||||||||||
Vesting period | 5 years | |||||||||||
Option 7 | Tranche one | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 40.00% | |||||||||||
Option 7 | Tranche two | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 15.00% | |||||||||||
Option 7 | Tranche three | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 15.00% | |||||||||||
Option 7 | Tranche four | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 15.00% | |||||||||||
Option 7 | Tranche five | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 15.00% | |||||||||||
Minimum | Option 1 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period | 3 years | |||||||||||
Maximum | Option 1 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period | 4 years | |||||||||||
Exercise Price RMB24.06 per share | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 2,279,400 | 1,118,400 | ||||||||||
Exercise price per share | ¥ / shares | ¥ 24.06 | ¥ 24.06 | ||||||||||
Exercise Price RMB24.06 per share | Option 4 | Tranche six | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 20.00% | |||||||||||
Exercise Price RMB50.13 per share | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 78,600 | |||||||||||
Exercise price per share | ¥ / shares | ¥ 50.13 | |||||||||||
Exercise Price RMB14.32 per share | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 21,500 | 961,100 | ||||||||||
Exercise price per share | ¥ / shares | ¥ 14.32 | ¥ 14.32 | ||||||||||
Exercise Price RMB7.78 per share | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 500,000 | |||||||||||
Exercise price per share | ¥ / shares | ¥ 7.78 | |||||||||||
Exercise Price RMB0.07 per share | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 4,425,211 | |||||||||||
Exercise price per share | ¥ / shares | ¥ 0.07 | |||||||||||
Exercise Price nil per share | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 2,853,911 | |||||||||||
Exercise Price USD3.70 per share | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 445,280 | |||||||||||
Exercise price per share | (per share) | $ 24.11 | ¥ 24.11 | ||||||||||
Exercise Price Usd 3.6953 Per Share [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 680,300 | |||||||||||
Exercise price per share | (per share) | 24.11 | ¥ 24.11 | ||||||||||
Exercise Price Usd 3.6953 Per Share [Member] | Maximum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 3,345,098 | |||||||||||
Exercise price per share | ¥ / shares | ¥ 24.11 | |||||||||||
Exercise Price Usd 2.1199 Per Share [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 178,900 | |||||||||||
Exercise price per share | (per share) | $ 13.83 | ¥ 13.83 | ||||||||||
2015 Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares available for issuance | 15,094,700 | |||||||||||
2017 Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares reserved for issuance | 16,771,900 |
SHARE BASED COMPENSATION - Sh_6
SHARE BASED COMPENSATION - Share options repricing (Details) - ¥ / shares | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Assumptions used to calculate the estimated fair value of the share options | |||||
Weighted-average grant-date fair value of the share options granted | ¥ 8 | ¥ 20.12 | ¥ 35.88 | ¥ 38.29 | ¥ 69.34 |
Risk-free interest rate, Maximum (as a percent) | 0.84% | 0.27% | 1.47% | 2.53% | 2.98% |
Risk-free interest rate, Minimum (as a percent) | 1.61% | 1.47% | 0.27% | 1.79% | 2.45% |
Volatility, Minimum (as a percent) | 113.60% | 48.80% | 48.80% | 43.40% | 43.50% |
Volatility, Maximum (as a percent) | 116.00% | 59.50% | 59.50% | 55.30% | 48.30% |
Dividend yield (as a percent) | 0.00% | 0.00% | 0.00% | ||
Exercise multiples | 2.2 | ||||
Life of option (years) | 5 years | ||||
Minimum | |||||
Assumptions used to calculate the estimated fair value of the share options | |||||
Exercise multiples | 2.2 | 2.2 | 2.2 | 2.2 | 2.2 |
Life of option (years) | 2 years 6 months | 2 years 6 months | 4 years | 4 years | |
Maximum | |||||
Assumptions used to calculate the estimated fair value of the share options | |||||
Exercise multiples | 2.8 | 2.8 | 2.8 | 2.8 | 2.8 |
Life of option (years) | 6 years | 6 years | 6 years | 6 years |
SHARE BASED COMPENSATION - Ac_2
SHARE BASED COMPENSATION - Activity in share options (Details) - ¥ / shares | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Options | |||||
Outstanding at beginning of year (in shares) | 29,273,408 | 36,474,200 | 36,474,200 | ||
Granted (in shares) | 4,925,211 | 7,503,489 | |||
Exercised (in shares) | 0 | (8,319,681) | |||
Forfeited (in shares) | 0 | (6,384,600) | |||
Outstanding at end of year (in shares) | 34,198,619 | 29,273,408 | 36,474,200 | ||
Vested and expected to vest (in shares) | 500,000 | 680,300 | |||
Weighted-Average Exercise Price | |||||
Outstanding at beginning of year (in dollars per share) | ¥ 17.24 | ¥ 12.28 | ¥ 12.28 | ||
Granted (in dollars per share) | 0.76 | 14.70 | |||
Exercised (in dollars per share) | 0 | ||||
Forfeited (in dollars per share) | 0 | 17.05 | |||
Outstanding at end of year (in dollars per share) | 14.87 | 17.24 | ¥ 12.28 | ||
Weighted Average Grant-date Fair Value | |||||
Outstanding at beginning of year (in dollars per share) | 40.24 | 34.61 | 34.61 | ||
Granted (in dollars per share) | 8 | ¥ 20.12 | 35.88 | 38.29 | ¥ 69.34 |
Exercised (in dollars per share) | 0 | 22 | |||
Forfeited (in dollars per share) | 0 | 39.66 | |||
Outstanding at end of year (in dollars per share) | ¥ 35.60 | ¥ 40.24 | ¥ 34.61 |
SHARE BASED COMPENSATION - Sh_7
SHARE BASED COMPENSATION - Share option outstanding (Details) - ¥ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Options Outstanding | ||
Number Outstanding | 34,198,619 | 29,273,408 |
Options Exercisable | ||
Number Outstanding | 24,867,328 | 24,867,328 |
Exercise Price Range RMB 0.07 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise Price (in dollars per share) | ¥ 0.07 | |
Options Outstanding | ||
Number Outstanding | 4,425,211 | |
Weighted-Average Remaining Contractual Life | 10 months 13 days | |
Exercise Price RMB7.78 per share | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise Price (in dollars per share) | ¥ 7.78 | ¥ 7.78 |
Options Outstanding | ||
Number Outstanding | 500,000 | 10,340,000 |
Weighted-Average Remaining Contractual Life | 5 years 8 months 23 days | 7 months 20 days |
Options Exercisable | ||
Number Outstanding | 9,878,000 | |
Weighted-Average Remaining Contractual Life | 6 months 7 days | |
Exercise Price Range RMB 9.53 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise Price (in dollars per share) | ¥ 9.53 | |
Options Outstanding | ||
Number Outstanding | 10,340,000 | |
Weighted-Average Remaining Contractual Life | 2 months 12 days | |
Options Exercisable | ||
Number Outstanding | 9,878,000 | |
Weighted-Average Remaining Contractual Life | 1 month 2 days | |
Exercise Price RMB14.32 per share | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise Price (in dollars per share) | ¥ 14.32 | ¥ 14.32 |
Options Outstanding | ||
Number Outstanding | 12,036,630 | 12,036,630 |
Weighted-Average Remaining Contractual Life | 1 year 5 months 19 days | 1 year 11 months 19 days |
Options Exercisable | ||
Number Outstanding | 11,644,230 | 11,644,230 |
Weighted-Average Remaining Contractual Life | 1 year 5 months 12 days | 1 year 11 months 8 days |
Exercise Price RMB24.06 per share | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise Price (in dollars per share) | ¥ 24.06 | ¥ 24.06 |
Options Outstanding | ||
Number Outstanding | 2,641,500 | 2,641,500 |
Weighted-Average Remaining Contractual Life | 3 years 18 days | 3 years 6 months 18 days |
Options Exercisable | ||
Weighted-Average Remaining Contractual Life | 0 years | |
Exercise Price RMB24.11 per share | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise Price (in dollars per share) | ¥ 24.11 | ¥ 24.11 |
Options Outstanding | ||
Number Outstanding | 4,176,678 | 4,176,678 |
Weighted-Average Remaining Contractual Life | 3 years 18 days | 3 years 6 months 18 days |
Options Exercisable | ||
Number Outstanding | 3,345,098 | 3,345,098 |
Weighted-Average Remaining Contractual Life | 3 years 18 days | 3 years 6 months 18 days |
Exercise Price RMB51.05 per share | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise Price (in dollars per share) | ¥ 51.05 | ¥ 51.05 |
Options Outstanding | ||
Number Outstanding | 78,600 | 78,600 |
Weighted-Average Remaining Contractual Life | 2 years 6 months 7 days | 3 years 7 days |
Options Exercisable | ||
Weighted-Average Remaining Contractual Life | 0 years |
SHARE BASED COMPENSATION - Sh_8
SHARE BASED COMPENSATION - Share based compensation expenses recognized with each issuance of share options (Details) - CNY (¥) ¥ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | ¥ 290,630 | ¥ 353,151 | ¥ 508,162 | ||
Options | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | ¥ 34,842 | ¥ 207,008 | 290,630 | 353,151 | 508,162 |
Options | 10/7/2015 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 2,613 | ||||
Options | 25/09/2015 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 57 | 111 | |||
Options | 01/7/2016 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 5,255 | 10,319 | 27,771 | 47,177 | |
Options | 16/08/2016 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 251 | 241 | |||
Options | 23/08/2016 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 800 | 1,571 | 2,442 | 2,336 | |
Options | 01/9/2016 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 1,616 | 1,546 | |||
Options | 06/9/2016 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 457 | 898 | 3,427 | 3,524 | |
Options | 01/8/2017 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 3,097 | 3,373 | 6,623 | 10,124 | 9,686 |
Options | 11/09/2017 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 9,107 | 8,713 | |||
Options | 10/10/2017 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 1,335 | 1,458 | 2,862 | 2,856 | 2,732 |
Options | 20/10/2017 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 63,246 | 393,648 | |||
Options | 26/12/2017 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 2,380 | 4,674 | 135,997 | ||
Options | 19/1/2018 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 781 | 1,533 | 8,486 | 33,623 | |
Options | 07/3/2018 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 4,162 | 2,193 | |||
Options | 27/03/2018 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 1,681 | 1,835 | 3,604 | 6,345 | |
Options | 27/04/2018 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 10,377 | ||||
Options | 01/09/2018 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 1,146 | 2,343 | 1,028 | 1,366 | |
Options | 29/09/2018 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 479 | 524 | 4,600 | 20,195 | |
Options | 24/12/2018 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 1,095 | ¥ 19 | |||
Options | 07/01/2019 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 391 | 427 | 839 | 1,842 | |
Options | 21/04/2019 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 144 | 157 | 309 | 653 | |
Options | 13/06/2019 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 82 | 90 | 177 | 97 | |
Options | 14/06/2019 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 35 | 38 | 75 | 41 | |
Options | 01/07/2019 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 3,565 | 6,955 | 13,657 | ¥ 41,598 | |
Options | 16/02/2020 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 1,636 | ||||
Options | 21/2/2020 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 112,183 | 110,145 | |||
Options | 28/2/2020 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | ¥ 67,952 | ¥ 127,716 | |||
Options | 01/07/2020 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | 678 | ||||
Options | 13/05/2021 | |||||
Summary of share based compensation recognized related to share options granted and ordinary shares | |||||
Share based compensation | ¥ 20,573 |
SHARE BASED COMPENSATION - Or_2
SHARE BASED COMPENSATION - Ordinary shares issued to management (Details) - CNY (¥) ¥ in Thousands | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Summary of share based compensation recognized related to share options granted and ordinary shares | ||||||
Shares approved | 3,518,000 | 35,867,400 | ||||
Share based compensation | ¥ 290,630 | ¥ 353,151 | ¥ 508,162 | |||
Unrecognized compensation cost | ¥ 11,261 | ¥ 8,741 | 150,349 | 410,202 | ||
Weighted average period | 2 years 4 months 28 days | 3 years 2 months 26 days | ||||
General and administrative expenses | ||||||
Summary of share based compensation recognized related to share options granted and ordinary shares | ||||||
Share based compensation | ¥ 34,842 | ¥ 207,008 | ¥ 290,630 | ¥ 353,151 | ¥ 508,162 |
ORDINARY SHARES (Details)_2
ORDINARY SHARES (Details) | Dec. 30, 2017shares | Dec. 30, 2017CNY (¥) | Dec. 30, 2017individual | Aug. 31, 2019CNY (¥)¥ / sharesshares | Jun. 30, 2021CNY (¥)shares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2019CNY (¥) | Jun. 30, 2021$ / sharesshares | Jun. 30, 2021¥ / sharesshares | Dec. 31, 2020$ / sharesshares | Dec. 31, 2020¥ / sharesshares | Dec. 31, 2019$ / sharesshares | Dec. 31, 2018$ / sharesshares |
ORDINARY SHARES | |||||||||||||
Ordinary shares, shares issued | 203,510,681 | 203,510,681 | 195,191,000 | 162,672,800 | |||||||||
Ordinary shares, shares outstanding | 195,191,000 | 203,510,681 | 203,510,681 | 203,510,681 | 203,510,681 | 195,191,000 | 162,672,800 | ||||||
Net proceeds from initial public offering and from exercising the over-allotment option by the underwriters(net of issuance cost of RMB31,776) | ¥ | ¥ 463,065,000 | ¥ 463,065,000 | |||||||||||
Issuance cost | ¥ | ¥ 31,776,000 | ¥ 31,776,000 | |||||||||||
Number of votes per share | ¥ / shares | ¥ 1 | ||||||||||||
Conversion ratio, Class B ordinary shares into Class A ordinary shares | 1 | ||||||||||||
Class A ordinary shares | |||||||||||||
ORDINARY SHARES | |||||||||||||
Ordinary shares, shares authorized | 4,600,000,000 | 4,600,000,000 | 4,600,000,000 | 4,600,000,000 | 4,600,000,000 | ||||||||
Ordinary shares, par value | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.00001 | ||||||||||
Ordinary shares, shares issued | 142,348,281 | 142,348,281 | 142,348,281 | 142,348,281 | 128,228,600 | ||||||||
Ordinary shares, shares outstanding | 128,228,600 | 142,348,281 | 142,348,281 | 142,348,281 | 142,348,281 | 128,228,600 | |||||||
Number of votes per share | ¥ / shares | ¥ 1 | ||||||||||||
Class B ordinary shares | |||||||||||||
ORDINARY SHARES | |||||||||||||
Ordinary shares, shares authorized | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | ||||||||
Ordinary shares, par value | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.00001 | ||||||||||
Ordinary shares, shares issued | 61,162,400 | 61,162,400 | 61,162,400 | 61,162,400 | 66,962,400 | ||||||||
Ordinary shares, shares outstanding | 66,962,400 | 61,162,400 | 61,162,400 | 61,162,400 | 61,162,400 | 66,962,400 | |||||||
Number of votes per share | ¥ / shares | ¥ 5 | ||||||||||||
Initial public offering | ADSs | |||||||||||||
ORDINARY SHARES | |||||||||||||
New ADSs issued (in shares) | 8,085,000 | ||||||||||||
Initial public offering | Class A ordinary shares | |||||||||||||
ORDINARY SHARES | |||||||||||||
Number of shares represented by ADS (in shares) | 8,085,000 | ||||||||||||
Board of directors | Ordinary shares | |||||||||||||
ORDINARY SHARES | |||||||||||||
Issuance of ordinary shares | 9,894,500 | ||||||||||||
Number of individuals. | 3 | 3 | |||||||||||
Series A, B and C Preferred Shareholders | |||||||||||||
ORDINARY SHARES | |||||||||||||
Issuance of ordinary shares | 1,309,900 | 1,309,900 | |||||||||||
Deemed Dividend | ¥ | ¥ 103,550,000 | ¥ 103,550,000 | |||||||||||
Fair value per ordinary share (in RMB per share) | ¥ / shares | ¥ 82.10 | ¥ 82.10 | |||||||||||
Amended and Restated Memorandum of Association | |||||||||||||
ORDINARY SHARES | |||||||||||||
Ordinary shares, shares authorized | 5,000,000,000 | 5,000,000,000 | 5,000,000,000 | 5,000,000,000 | 5,000,000,000 | 5,000,000,000 | |||||||
Ordinary shares, par value | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.00001 | $ 0.00001 |
EMPLOYEE BENEFIT PLAN (Detail_2
EMPLOYEE BENEFIT PLAN (Details) - CNY (¥) ¥ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
EMPLOYEE BENEFIT PLAN | |||||
Total contribution for employee benefits | ¥ 23,140 | ¥ 32,653 | ¥ 69,370 | ¥ 110,394 | ¥ 116,281 |
STATUTORY RESERVES AND RESTRI_4
STATUTORY RESERVES AND RESTRICTED NET ASSETS (Details) - CNY (¥) ¥ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
STATUTORY RESERVES AND RESTRICTED NET ASSETS | ||
Minimum percentage of after-tax profit transferred by PRC subsidiaries to general reserve fund (as a percent) | 10.00% | 10.00% |
Maximum percentage criteria for appropriation of after-tax profit of PRC subsidiaries to general reserve fund (as a percent) | 50.00% | 50.00% |
Restricted net assets | ¥ 2,779,965 | ¥ 2,779,965 |
NET INCOME (LOSS) PER ORDINAR_7
NET INCOME (LOSS) PER ORDINARY SHARE (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2021CNY (¥)¥ / sharesshares | Jun. 30, 2021USD ($)$ / sharesshares | Jun. 30, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | |
Numerator: | |||||||
Net income (loss) attributable to 9F Inc. | ¥ (193,709) | $ (30,003) | ¥ (741,013) | ¥ (2,258,895) | $ (349,857) | ¥ (2,159,576) | ¥ 1,981,804 |
Undistributed earnings allocated to preferred shareholders | (244,589) | ||||||
Net income (loss) attributable to ordinary shareholders for computing net income per ordinary shares-basic | ¥ (193,709) | ¥ (741,013) | ¥ (2,258,895) | ¥ (2,170,287) | ¥ 1,719,990 | ||
Denominator: | |||||||
Weighted average ordinary shares outstanding used in computing net income per ordinary shares-basic | shares | 100,361,432 | 100,361,432 | 195,191,000 | 198,596,879 | 198,596,879 | 174,552,468 | 162,672,800 |
Net income (loss) per ordinary share attributable to ordinary shareholders-basic | (per share) | ¥ (1.93) | $ (0.30) | ¥ (3.80) | ¥ (11.37) | $ (1.76) | ¥ (12.43) | ¥ 10.57 |
Diluted net income per share calculation | |||||||
Net income (loss) attributable to ordinary shareholders for computing net income per ordinary shares-basic | ¥ (193,709) | ¥ (741,013) | ¥ (2,258,895) | ¥ (2,170,287) | ¥ 1,719,990 | ||
Add: adjustments to undistributed earnings to participating securities | 27,007 | ||||||
Net income (loss) attributable to ordinary shareholders for computing net income per ordinary shares-dilute | ¥ (193,709) | ¥ (741,013) | ¥ (2,258,895) | ¥ (2,170,287) | ¥ 1,746,997 | ||
Denominator: | |||||||
Weighted average ordinary shares outstanding used in computing net income per ordinary shares-basic | shares | 100,361,432 | 100,361,432 | 195,191,000 | 198,596,879 | 198,596,879 | 174,552,468 | 162,672,800 |
Effect of potentially diluted share options | shares | 23,062,400 | ||||||
Weighted average ordinary shares outstanding used in computing net income per ordinary shares-dilute | shares | 100,361,432 | 100,361,432 | 195,191,000 | 198,596,879 | 198,596,879 | 174,552,468 | 185,735,200 |
Net income (loss) per ordinary share attributable to ordinary shareholders-diluted | (per share) | ¥ (1.93) | $ (0.30) | ¥ (3.80) | ¥ (11.37) | $ (1.76) | ¥ (12.43) | ¥ 9.41 |
LEASES (Details)_2
LEASES (Details) - CNY (¥) ¥ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
LEASES | ||
Operating cash flows from operating leases | ¥ 4,350 | ¥ 59,395 |
Right-of-use assets in exchange for new lease liabilities | ¥ 12,285 | |
Weighted average remaining lease term (in years) | 1 year 6 months | 1 year 6 months |
Weighted average discount rate | 5.30% | 5.30% |
Short-term lease cost | ¥ 134 | ¥ 314 |
LEASES - Maturity of operatin_2
LEASES - Maturity of operating lease liabilities (Details) ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | |
LEASES | ||||||
2021 | ¥ 10,698 | ¥ 14,862 | ||||
2022 | 14,818 | 13,405 | ||||
2023 | 89 | 2,956 | ||||
Total payments due | 25,604 | 31,223 | ||||
Less imputed interest | 1,720 | |||||
Operating lease liabilities | 25,604 | 29,503 | ¥ 125,407 | $ 3,966 | $ 4,569 | |
Total rental expense for all operating leases | ¥ 435 | ¥ 68,753 | ||||
Total rental expense for all operating leases | ¥ 58,831 | ¥ 71,287 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details) ¥ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended |
May 31, 2020CNY (¥) | Jun. 30, 2021CNY (¥)case | Dec. 31, 2020CNY (¥)case | |
Amount charged from the insurance company to cover the outstanding service fees and related late payment losses | ¥ 2,300,000 | ||
Number of civial cases | case | 175 | 63 | |
Private lending | |||
Amount in disputes | ¥ 209,710 | ¥ 48,800 | |
Guarantee performance | |||
Amount in disputes | 6,480 | 5,400 | |
Infringement | |||
Amount in disputes | 5,310 | 1,400 | |
Labor arbitration | |||
Amount in disputes | ¥ 1,100 | ¥ 1,100 |