Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2021shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2021 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | FinVolution Group |
Entity Central Index Key | 0001691445 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Document Transition Report | false |
Document Annual Report | true |
Document Shell Company Report | false |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Interactive Data Current | Yes |
Entity File Number | 001-38269 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | Building G1, No. 999 Dangui Road |
Entity Address, City or Town | Shanghai |
Entity Address, Postal Zip Code | 201203 |
Entity Address, Country | CN |
Document Registration Statement | false |
Document Accounting Standard | U.S. GAAP |
ICFR Auditor Attestation Flag | true |
Auditor Name | PricewaterhouseCoopers Zhong Tian LLP |
Auditor Firm ID | 1424 |
Auditor Location | Shanghai, the People’s Republic of China |
Class A Ordinary Shares [Member] | |
Document Information [Line Items] | |
No Trading Symbol Flag | true |
Entity Common Stock, Shares Outstanding | 854,591,404 |
Title of 12(b) Security | Class A ordinary shares, par value US$0.00001 per share |
Security Exchange Name | NYSE |
Class B Ordinary Shares [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 579,200,000 |
American Depositary Share [Member] | |
Document Information [Line Items] | |
Trading Symbol | FINV |
Title of 12(b) Security | American depositary shares |
Security Exchange Name | NYSE |
Class A and Class B Ordinary Shares [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 1,433,791,404 |
Business Contact [Member] | |
Document Information [Line Items] | |
Entity Address, Address Line One | Building G1, No. 999 Dangui Road |
Entity Address, City or Town | Shanghai |
Entity Address, Postal Zip Code | 201203 |
Entity Address, Country | CN |
City Area Code | 86 |
Local Phone Number | 21 8030 3200 |
Contact Personnel Name | Jiayuan Xu, Chief Financial Officer |
Contact Personnel Email Address | xujiayuan@xinye.com |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Assets | |||
Cash and cash equivalents | ¥ 4,418,127 | $ 693,301 | ¥ 2,632,174 |
Restricted cash | 4,073,414 | 639,208 | 3,484,227 |
Short-term investments | 1,204,901 | 189,075 | 1,970,958 |
Accounts receivable and contract assets, net of credit loss allowance for accounts receivable and contract assets of RMB188,725 and RMB250,696 as of December 31, 2020 and 2021, respectively | 1,890,846 | 296,715 | 863,906 |
Quality assurance receivable, net of credit loss allowance for quality assurance receivable of RMB223,514 and RMB239,506 as of December 31, 2020 and 2021, respectively | 931,798 | 146,219 | 1,121,554 |
Property, equipment and software, net | 112,397 | 17,638 | 93,876 |
Right of use assets, net | 49,138 | 7,711 | 54,968 |
Intangible assets | 98,947 | 15,527 | 98,947 |
Goodwill | 50,411 | 7,911 | 50,411 |
Loans receivable, net of credit loss allowance for loans receivable of RMB382,012 and RMB427,873 as of December 31, 2020 and 2021, respectively | 1,982,276 | 311,062 | 2,354,882 |
Investments | 971,117 | 152,389 | 950,515 |
Deferred tax assets | 455,741 | 71,516 | 155,758 |
Prepaid expenses and other assets | 1,899,438 | 298,063 | 1,050,009 |
Total assets | 18,138,551 | 2,846,335 | 14,882,185 |
Liabilities and Shareholders' Equity: | |||
Payable to platform customers (including payable to platform customers of the consolidated variable interest entity ("VIE") and VIE's subsidiaries including consolidated trusts without recourse to the Company of RMB103,453 and RMB81,150 as of December 31, 2020 and 2021, respectively) | 81,150 | 12,734 | 103,453 |
Deferred guarantee income (including deferred guarantee income of the consolidated VIE and VIE's subsidiaries including consolidated trusts without recourse to the Company of RMB1,259,396 and RMB1,089,503 as of December 31, 2020 and 2021, respectively) | 1,089,503 | 170,967 | 1,259,396 |
Expected credit losses for quality assurance commitment (including expected credit losses for quality assurance commitment of the consolidated VIE and VIE's subsidiaries including consolidated trusts without recourse to the Company of RMB2,390,501 and RMB3,188,561 as of December 31, 2020 and 2021, respectively) | 3,188,561 | 500,355 | 2,390,501 |
Payroll and welfare payable (including payroll and welfare payable of the consolidated VIE and VIE's subsidiaries including consolidated trusts without recourse to the Company of RMB132,955 and RMB146,697 as of December 31, 2020 and 2021, respectively) | 252,918 | 39,688 | 220,989 |
Taxes payable (including taxes payable of the consolidated VIE and VIE's subsidiaries including consolidated trusts without recourse to the Company of RMB53,552 and RMB57,237 as of December 31, 2020 and 2021, respectively) | 200,648 | 31,486 | 154,398 |
Funds payable to investors of consolidated trusts (including funds payable to investors of consolidated trusts of the consolidated VIE and VIE's subsidiaries including consolidated trusts without recourse to the Company of RMB1,661,841 and RMB1,795,640 as of December 31, 2020 and 2021 respectively) | 1,795,640 | 281,775 | 1,661,841 |
Contract liabilities (including contract liabilities of the consolidated VIE and VIE's subsidiaries including consolidated trusts without recourse to the Company of nil and RMB6,826 as of December 31, 2020 and 2021, respectively) | 8,436 | 1,324 | 3,447 |
Amounts due to related party (including amounts due to related party of the consolidated VIE and VIE's subsidiaries including consolidated trusts without recourse to the Company of RMB1,984 and RMB2,265 as of December 31, 2020 and 2021, respectively) | 2,265 | 355 | 1,984 |
Leasing liabilities (including leasing liabilities of the consolidated VIE and VIE's subsidiaries including consolidated trusts without recourse to the Company of RMB42,775 and RMB33,184 as of December 31, 2020 and 2021, respectively) | 33,356 | 5,234 | 43,296 |
Deferred tax liabilities (including deferred tax liabilities of the consolidated VIE and VIE's subsidiaries including consolidated trusts without recourse to the Company of RMB67,217 and RMB45,656 as of December 31, 2020 and 2021, respectively) | 137,632 | 21,597 | 103,548 |
Accrued expenses and other liabilities (including accrued expenses and other liabilities of the consolidated VIE and VIE's subsidiaries including consolidated trusts without recourse to the Company of RMB472,446 and RMB598,570 as of December 31, 2020 and 2021, respectively) | 638,832 | 100,247 | 509,002 |
Total liabilities | 7,428,941 | 1,165,762 | 6,451,855 |
Commitments and contingencies | |||
FinVolution Group shareholders' equity: | |||
Additional paid-in capital | 5,694,733 | 893,628 | 5,659,990 |
Treasury stock (144,906,570 and 116,279,765 shares as of December 31, 2020 and 2021, respectively) | (324,171) | (50,870) | (401,621) |
Statutory reserves | 610,403 | 95,786 | 458,058 |
Accumulated other comprehensive income | (16,769) | (2,630) | (5,142) |
Retained earnings | 4,690,951 | 736,113 | 2,651,918 |
Total FinVolution Group shareholders' equity | 10,655,250 | 1,672,043 | 8,363,306 |
Non-controlling Interest | 54,360 | 8,530 | 67,024 |
Total shareholders' equity | 10,709,610 | 1,680,573 | 8,430,330 |
Total liabilities and shareholders' equity | 18,138,551 | 2,846,335 | 14,882,185 |
Class A Ordinary Shares [Member] | |||
FinVolution Group shareholders' equity: | |||
Ordinary shares | 64 | 10 | 64 |
Class B Ordinary Shares [Member] | |||
FinVolution Group shareholders' equity: | |||
Ordinary shares | ¥ 39 | $ 6 | ¥ 39 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥)shares | Dec. 31, 2020CNY (¥)shares |
Provision for doubtful accounts | ¥ 250,696 | ¥ 188,725 |
Quality assurance receivable, net of credit loss allowance | 239,506 | 223,514 |
Provision for loan losses | 427,873 | 382,012 |
Payable to platform customers | 81,150 | 103,453 |
Deferred guarantee income | 1,089,503 | 1,259,396 |
Expected credit losses | 3,188,561 | 2,390,501 |
Payroll and welfare payable | 252,918 | 220,989 |
Taxes payable | 200,648 | 154,398 |
Funds payable to investors of consolidated trusts | 1,795,640 | 1,661,841 |
Contract liabilities | 8,436 | 3,447 |
Amounts due to related parties | 2,265 | 1,984 |
Leasing liabilities | 33,356 | 43,296 |
Deferred tax liabilities | 137,632 | 103,548 |
Accrued expenses and other liabilities | ¥ 638,832 | ¥ 509,002 |
Ordinary stock, authorized | shares | 4,266,159,600 | |
Ordinary stock, shares issued | shares | 1,550,071,169 | |
Treasury stock, common shares | shares | 116,279,765 | 144,906,570 |
Consolidated VIEs' principal subsidiaries [Member] | ||
Payable to platform customers | ¥ 81,150 | ¥ 103,453 |
Deferred guarantee income | 1,089,503 | 1,259,396 |
Expected credit losses | 3,188,561 | 2,390,501 |
Payroll and welfare payable | 146,697 | 132,955 |
Taxes payable | 57,237 | 53,552 |
Funds payable to investors of consolidated trusts | 1,795,640 | 1,661,841 |
Contract liabilities | 6,826 | 0 |
Amounts due to related parties | 2,265 | 1,984 |
Leasing liabilities | 33,184 | 42,775 |
Deferred tax liabilities | 45,656 | 67,217 |
Accrued expenses and other liabilities | 598,570 | 472,446 |
VIE's subsidiaries [Member] | ||
Payable to platform customers | 81,150 | 103,453 |
Deferred guarantee income | 1,089,503 | 1,259,396 |
Expected credit losses | 3,188,561 | 2,390,501 |
Payroll and welfare payable | 146,697 | 132,955 |
Taxes payable | 57,237 | 53,552 |
Funds payable to investors of consolidated trusts | 1,795,640 | 1,661,841 |
Contract liabilities | 6,826 | 0 |
Amounts due to related parties | 2,265 | 1,984 |
Leasing liabilities | 33,184 | 42,775 |
Deferred tax liabilities | 45,656 | 67,217 |
Accrued expenses and other liabilities | ¥ 598,570 | ¥ 472,446 |
Class A Ordinary Shares [Member] | ||
Ordinary stock, authorized | shares | 10,000,000,000 | 10,000,000,000 |
Ordinary stock, shares issued | shares | 970,871,169 | 969,071,169 |
Ordinary Stock, shares outstanding | shares | 854,591,404 | 824,164,599 |
Class B Ordinary Shares [Member] | ||
Ordinary stock, authorized | shares | 10,000,000,000 | 10,000,000,000 |
Ordinary stock, shares issued | shares | 579,200,000 | 581,000,000 |
Ordinary Stock, shares outstanding | shares | 579,200,000 | 581,000,000 |
Consolidated Trust [Member] | ||
Payable to platform customers | ¥ 81,150 | ¥ 103,453 |
Deferred guarantee income | 1,089,503 | 1,259,396 |
Expected credit losses | 3,188,561 | 2,390,501 |
Payroll and welfare payable | 146,697 | 132,955 |
Taxes payable | 57,237 | 53,552 |
Funds payable to investors of consolidated trusts | 1,795,640 | 1,661,841 |
Contract liabilities | 6,826 | 0 |
Amounts due to related parties | 2,265 | 1,984 |
Leasing liabilities | 33,184 | 42,775 |
Deferred tax liabilities | 45,656 | 67,217 |
Accrued expenses and other liabilities | ¥ 598,570 | ¥ 472,446 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥)¥ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | |
Operating revenue: | ||||
Net interest income | ¥ 1,216,170 | $ 190,844 | ¥ 1,113,337 | ¥ 1,106,669 |
Net revenues | 9,470,128 | 1,486,070 | 7,563,087 | 5,962,757 |
Operating expenses: | ||||
Origination, servicing expenses and other cost of revenue | (1,834,453) | (287,866) | (1,315,496) | (1,164,716) |
Origination, servicing expenses and other cost of revenue-related party | (7,503) | (1,177) | (10,104) | (43,494) |
Sales and marketing expenses | (1,584,233) | (248,601) | (482,859) | (720,333) |
General and administrative expenses | (518,245) | (81,324) | (461,116) | (435,816) |
Research and development expenses | (434,850) | (68,237) | (370,175) | (390,585) |
Credit losses for quality assurance commitment | (1,963,609) | (308,133) | (2,007,968) | |
Provision for loans receivable | (374,243) | (58,727) | (463,175) | (299,504) |
Provision for accounts receivable and contract assets | (139,226) | (21,848) | (144,661) | (261,882) |
Total operating expenses | (6,856,362) | (1,075,913) | (5,255,554) | (3,316,330) |
Other income | ||||
Gain from quality assurance | 98,405 | |||
Realized gain from financial guarantee derivatives | 31,444 | |||
Fair value change of financial guarantee derivatives | (56,287) | |||
Other income, net | 122,368 | 19,202 | 116,469 | 136,491 |
Profit before income tax expenses | 2,736,134 | 429,359 | 2,424,002 | 2,856,480 |
Income tax expenses | (240,818) | (37,790) | (455,421) | (481,962) |
Net profit | 2,495,316 | 391,569 | 1,968,581 | 2,374,518 |
Net loss (profit) attributable to non-controlling interest shareholders | 13,631 | 2,139 | 4,119 | (1,668) |
Net profit | 2,508,947 | 393,708 | 1,972,700 | 2,372,850 |
Net profit | 2,495,316 | 391,569 | 1,968,581 | 2,374,518 |
Foreign currency translation adjustment, net of nil tax | (11,627) | (1,825) | (75,462) | 12,110 |
Total comprehensive income | 2,483,689 | 389,744 | 1,893,119 | 2,386,628 |
Total comprehensive loss (income) attributable to non-controlling interest shareholders | 13,631 | 2,139 | 4,119 | (1,668) |
Total comprehensive income attributable to FinVolution Group | ¥ 2,497,320 | $ 391,883 | ¥ 1,897,238 | ¥ 2,384,960 |
Weighted average number of ordinary shares used in computing net income (loss) per share | ||||
Basic | shares | 1,420,870,790 | 1,420,870,790 | 1,477,162,991 | 1,525,814,189 |
Diluted | shares | 1,482,501,832 | 1,482,501,832 | 1,491,325,420 | 1,552,423,060 |
Net profit per share - Basic | (per share) | ¥ 1.77 | $ 0.28 | ¥ 1.34 | ¥ 1.56 |
Net profit per share - Diluted | (per share) | ¥ 1.69 | $ 0.27 | ¥ 1.32 | ¥ 1.53 |
Loan facilitation service fees [Member] | ||||
Operating revenue: | ||||
Operating revenues | ¥ 3,794,182 | $ 595,390 | ¥ 1,908,851 | ¥ 3,310,875 |
Post-facilitation service fees [Member] | ||||
Operating revenue: | ||||
Operating revenues | 1,309,565 | 205,499 | 672,981 | 1,200,373 |
Guarantee income [Member] | ||||
Operating revenue: | ||||
Operating revenues | 2,593,512 | 406,979 | 3,386,032 | |
Other Revenue [Member] | ||||
Operating revenue: | ||||
Operating revenues | ¥ 556,699 | $ 87,358 | ¥ 481,886 | ¥ 344,840 |
American Depositary Shares [Member] | ||||
Weighted average number of ordinary shares used in computing net income (loss) per share | ||||
Net profit per share - Basic | (per share) | ¥ 8.83 | $ 1.39 | ¥ 6.68 | ¥ 7.78 |
Net profit per share - Diluted | (per share) | ¥ 8.46 | $ 1.33 | ¥ 6.61 | ¥ 7.64 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) | Cumulative Effect, Period of Adoption, Adjustment [Member]CNY (¥) | Common Stock [Member]CNY (¥)shares | Additional Paid-in Capital [Member]CNY (¥) | Treasury Stock [Member]CNY (¥)shares | Accumulated Other Comprehensive Income [Member]CNY (¥) | Statutory Reserves [Member]CNY (¥) | Retained Earnings (accumulated Deficit) [Member]CNY (¥) | Retained Earnings (accumulated Deficit) [Member]Cumulative Effect, Period of Adoption, Adjustment [Member]CNY (¥) | Non-controlling Interest [Member]CNY (¥) |
Balance at Dec. 31, 2018 | ¥ 5,985,738 | ¥ 102 | ¥ 5,896,017 | ¥ (332,121) | ¥ 58,210 | ¥ 256,006 | ¥ 45,668 | ¥ 61,856 | |||
Balance, Shares at Dec. 31, 2018 | shares | 1,533,071,169 | (46,301,000) | |||||||||
Issuance of ordinary shares for share-based compensation plans | ¥ 1 | ¥ (1) | |||||||||
Issuance of ordinary shares for share-based compensation plans, shares | shares | 17,000,000 | (17,000,000) | |||||||||
Repurchase of ordinary shares | (47,173) | ¥ (47,173) | |||||||||
Repurchase of ordinary shares, shares | shares | (12,729,500) | ||||||||||
Share-based compensation | 42,260 | 42,260 | |||||||||
Exercise of share-based compensation plans | 34,742 | (297,379) | ¥ 332,121 | ||||||||
Exercise of share-based compensation plans, shares | shares | 55,396,235 | ||||||||||
Net profit | 2,374,518 | 2,372,850 | 1,668 | ||||||||
Dividends paid to shareholders | (390,715) | ||||||||||
Foreign currency translation adjustment | 12,110 | ||||||||||
Appropriation to statutory reserve | 61,192 | (61,192) | |||||||||
Balance at Dec. 31, 2019 | 8,011,480 | ¥ 103 | 5,640,898 | ¥ (47,174) | 70,320 | 317,198 | 1,966,611 | 63,524 | |||
Balance, Shares at Dec. 31, 2019 | shares | 1,550,071,169 | (20,634,265) | |||||||||
Repurchase of ordinary shares | (384,871) | ¥ (384,871) | |||||||||
Repurchase of ordinary shares, shares | shares | (139,954,870) | ||||||||||
Cumulative effect of accounting change at Dec. 31, 2020 | 2,651,918 | ¥ (882,964) | ¥ (882,964) | ||||||||
Share-based compensation | 42,169 | 42,169 | |||||||||
Exercise of share-based compensation plans | 7,347 | (23,077) | ¥ 30,424 | ||||||||
Exercise of share-based compensation plans, shares | shares | 15,682,565 | ||||||||||
Net profit | 1,968,581 | 1,972,700 | (4,119) | ||||||||
Dividends paid to shareholders | (263,569) | (263,569) | |||||||||
Foreign currency translation adjustment | (75,462) | (75,462) | |||||||||
Capital injection from non-controlling interest | 7,619 | 7,619 | |||||||||
Appropriation to statutory reserve | 140,860 | (140,860) | |||||||||
Balance at Dec. 31, 2020 | 8,430,330 | ¥ 103 | 5,659,990 | ¥ (401,621) | (5,142) | 458,058 | 2,651,918 | 67,024 | |||
Balance, Shares at Dec. 31, 2020 | shares | 1,550,071,169 | (144,906,570) | |||||||||
Repurchase of ordinary shares | (16,228) | ¥ (16,228) | |||||||||
Repurchase of ordinary shares, shares | shares | (4,171,000) | ||||||||||
Cumulative effect of accounting change at Dec. 31, 2021 | 4,690,951 | $ 736,113 | |||||||||
Share-based compensation | 95,213 | 95,213 | |||||||||
Exercise of share-based compensation plans | 33,208 | (60,470) | ¥ 93,678 | ||||||||
Exercise of share-based compensation plans, shares | shares | 32,797,805 | ||||||||||
Net profit | 2,495,316 | 391,569 | 2,508,947 | (13,631) | |||||||
Dividends paid to shareholders | (317,569) | (317,569) | |||||||||
Foreign currency translation adjustment | (11,627) | (1,825) | (11,627) | ||||||||
Capital injection from non-controlling interest | 967 | 967 | |||||||||
Appropriation to statutory reserve | 152,345 | (152,345) | |||||||||
Balance at Dec. 31, 2021 | ¥ 10,709,610 | $ 1,680,573 | ¥ 103 | ¥ 5,694,733 | ¥ (324,171) | ¥ (16,769) | ¥ 610,403 | ¥ 4,690,951 | ¥ 54,360 | ||
Balance, Shares at Dec. 31, 2021 | shares | 1,550,071,169 | (116,279,765) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Cash flows from operating activities: | ||||
Net profit | ¥ 2,495,316 | $ 391,569 | ¥ 1,968,581 | ¥ 2,374,518 |
Adjustments to reconcile net profit to net cash provided by (used in) operating activities: | ||||
Provision for loans receivable | 374,243 | 58,727 | 463,175 | 299,504 |
Provision for accounts receivable and contract assets | 139,226 | 21,848 | 144,661 | 261,882 |
Provision for quality assurance receivable | 59,136 | 9,280 | (49,590) | 210,520 |
Depreciation and amortization | 37,277 | 5,850 | 51,780 | 57,712 |
Amortization of right-of-use asset and interest of leasing liabilities | 31,956 | 5,015 | 44,653 | 49,373 |
Change in fair value of short term investments | (1,573) | (247) | (7,211) | 13,028 |
Provision for investment | 5,000 | 785 | 33,660 | |
Gain from disposal of investments | 0 | 0 | 0 | (10,614) |
Equity pick up of investments | 4,245 | 666 | 0 | |
Net gain from investment in loans | (1,216,170) | (190,844) | (1,113,337) | (1,106,669) |
Share-based compensation | 95,213 | 14,941 | 42,169 | 42,260 |
Impairment of intangible assets | 0 | 0 | 0 | 4,600 |
Changes in operating assets and liabilities: | ||||
Accounts receivable and contract assets | (1,166,166) | (182,997) | (227,784) | (240,597) |
Quality assurance receivable | 130,620 | 20,497 | 2,542,680 | (1,795,796) |
Financial guarantee derivative assets and discretionary payment | 0 | 0 | 0 | 56,287 |
Deferred tax assets | (299,983) | (47,074) | 151,335 | (6,977) |
Amounts due from related party | 0 | 0 | 0 | 2,830 |
Prepaid expenses and other assets | (875,274) | (137,351) | 353,383 | (1,090,910) |
Payable to platform customers | (22,303) | (3,500) | (581,177) | (220,404) |
Quality assurance payable | 0 | 0 | 0 | 956,774 |
Deferred guarantee income | (169,893) | (26,660) | (613,858) | |
Expected credit losses for quality assurance commitment | 798,060 | 125,233 | (1,202,520) | |
Payroll and welfare payable | 31,929 | 5,010 | 44,304 | (11,569) |
Taxes payable | 46,250 | 7,258 | 26,100 | (96,803) |
Contract liabilities | 4,989 | 784 | (52,281) | (109,741) |
Amounts due to related parties | 281 | 44 | (2,325) | 4,309 |
Leasing liabilities | (36,066) | (5,660) | (45,682) | (51,370) |
Deferred tax liabilities | 34,084 | 5,349 | 14,816 | 98,858 |
Accrued expenses and other liabilities | 129,830 | 20,373 | 221,377 | 93,473 |
Net cash provided by (used in) operating activities | 630,227 | 98,896 | 2,206,909 | (215,522) |
Cash flows from investing activities: | ||||
Collection of loans originated and held by the Group | 7,032,972 | 1,103,627 | 12,757,947 | 10,520,227 |
Investment in loans originated and held by the Group | (5,809,353) | (911,614) | (9,826,856) | (12,128,140) |
Investment in convertible loan | 0 | 0 | 0 | (20,000) |
Proceeds from disposal of investments | 0 | 0 | 2,460 | 21,508 |
Purchase of investments | (31,246) | (4,903) | (36,829) | (803,691) |
Proceeds from short-term investments | 13,534,543 | 2,123,865 | 6,177,791 | 5,532,569 |
Purchase of short-term investments | (12,676,800) | (1,989,267) | (8,001,000) | (3,902,033) |
Purchase of property, equipment and software | (55,271) | (8,673) | (11,017) | (48,659) |
Acquisition of intangible assets | 0 | 0 | (21,000) | |
Net cash provided by (used in) investing activities | 1,994,845 | 313,035 | 1,041,496 | (828,219) |
Cash flows from financing activities: | ||||
Cash received from investors | 1,643,572 | 257,911 | 766,160 | 3,437,160 |
Cash paid to investors | (1,574,118) | (247,013) | (2,993,122) | (1,488,301) |
Cash paid for repurchase of preferential beneficiaries of consolidated trusts | 0 | 0 | 0 | (7,948) |
Cash received from short-term borrowings | 0 | 0 | 0 | 235,000 |
Repayment of short-term borrowings | 0 | 0 | (235,000) | (25,000) |
Cash paid for dividends | (317,569) | (49,834) | (263,569) | (390,715) |
Repurchase of ordinary shares | (25,991) | (4,079) | (379,984) | (42,276) |
Proceeds from exercise of share-based compensation plans | 33,339 | 5,232 | 6,617 | 31,592 |
Capital injection from non-controlling interest | 967 | 152 | 7,619 | |
Net cash provided (used in) by financing activities | (239,800) | (37,631) | (3,091,279) | 1,749,512 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (10,132) | (1,588) | (51,470) | 11,253 |
Net increase in cash, cash equivalents and restricted cash | 2,375,140 | 372,712 | 105,656 | 717,024 |
Cash, cash equivalents and restricted cash at beginning of year | 6,116,401 | 959,797 | 6,010,745 | 5,293,721 |
Cash, cash equivalents and restricted cash at end of year | 8,491,541 | 1,332,509 | 6,116,401 | 6,010,745 |
Supplemental disclosure of cash investing and financing activities | ||||
Cash paid for interest including interest paid to investors of consolidated trusts | (161,431) | (25,332) | (268,182) | (94,957) |
Cash paid for income taxes | (574,939) | (90,220) | (367,004) | (145,825) |
Supplemental disclosure of non-cash investing and financing activities | ||||
Payable for purchase of property, equipment and software | 1,134 | 178 | 607 | 292 |
Payable for purchase of intangible assets | 5,000 | 785 | 5,000 | |
Payable for repurchase of ordinary shares | 21 | 3 | 9,784 | 4,897 |
Receivable from exercise of share-based compensation plans | ¥ 4,537 | $ 712 | ¥ 4,668 | ¥ 3,938 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Statement of Cash Flows [Abstract] | ||||||
Cash and cash equivalents | ¥ 4,418,127 | $ 693,301 | ¥ 2,632,174 | |||
Restricted cash | 4,073,414 | 639,208 | 3,484,227 | |||
Total cash, cash equivalents and restricted cash | ¥ 8,491,541 | $ 1,332,509 | ¥ 6,116,401 | $ 959,797 | ¥ 6,010,745 | ¥ 5,293,721 |
Principal activities and organi
Principal activities and organization | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principal activities and organization | 1. Principal activities and organization FinVolution Group (the “Company”) is an investment holding company and with its consolidated subsidiaries and the consolidated variable interest entities (“VIEs”) (collectively referred to as the “Group”) operates an online consumer finance marketplace through its platform (www.ppdai.com) registered in the People’s Republic of China (the “PRC” or “China”). The Company has been listed on the New York Stock Exchange in the United States of America since November 2017. As of December 31, 2021, the Company effectively controls a number of VIEs through a series of commercial agreements (the “VIE Agreements”) entered into between certain subsidiaries of the Group (the “WOFEs”), the VIEs and nominal shareholders of the VIEs. As of December 31, 2021, the Company’s principal subsidiaries and consolidated VIEs are as follows: Name Percentage of direct or indirect economic Date of incorporation Place of Subsidiaries FinVolution (HK) Limited (“FinVolution HK”) 100% June 12, 2012 Hong Kong, China Beijing Prosper Investment Consulting Co., Ltd. (“Beijing Prosper”) 100% August 21, 2012 Beijing, China Shanghai Guangjian Information Technology Co., Ltd. (“Shanghai Guangjian”) 100% June 5, 2017 Shanghai, China Shanghai Shanghu Information Technology Co., Ltd. (“Shanghai Shanghu”) Shanghai Manyin Information Technology Co., Ltd. (“Shanghai Manyin”) 100% February 12, 2018 Shanghai, China Hainan Shanghu Information Technology Co., Ltd. (“Hainan Shanghu”) 100% August 1, 2018 Hainan, China Consolidated VIEs Beijing Paipairongxin Investment Consulting Co., Ltd. (“Beijing Paipairongxin”) 100 %* June 15, 2012 Beijing, China Shanghai Zihe Information Technology Co., Ltd. (“Shanghai Zihe”) 100 %* July 6, 2017 Shanghai, China Shanghai Nianqiao Technology Co., Ltd. (“Shanghai Nianqiao”) 100 %* August 8, 2018 Shanghai, China Shanghai Ledao Technology Co., Ltd. (“Shanghai Ledao”) 100 %* January 10, 2019 Shanghai, China Chengdu Yougao Information Technology Co., Ltd. (“Chengdu Yougao”) 100 %* December 26, 2019 Chengdu, China Consolidated VIEs’ principal subsidiaries Shanghai PPDai Financial Information Services Co., Ltd. (“Shanghai PPDai”) 100 %* January 18, 2011 Shanghai, China Shanghai Erxu Information Technology Co., Ltd. (“Shanghai Erxu”) 100 %* April 28, 2018 Shanghai, China Fujian Zhiyun Financing Guarantee Co., Ltd. (“Fujian Zhiyun”) 100 %* November 21, 2019 Fujian, China * Controlled via contractual relationships |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | 2. Summary of significant accounting policies (a) Basis of presentation The Group’s consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying consolidated financial statements and related disclosures. Actual results may differ from those estimates. (b) Adoption of new credit loss accounting standard On January 1, 2020, the Group adopted ASU 2016-13 ASC Topic 326 introduced a current expected credit loss (“CECL”) methodology, which replaced the probable incurred credit losses methodology used under the historical accounting guidance. Under ASC Topic 326 methodology, credit losses are recorded upon initial recognition of financial assets at an amount equal to the lifetime expected losses. Under probable incurred credit losses methodology, credit losses are recorded when the losses are probable or have been incurred. ASC Topic 326 requires the expected credit losses related to guarantee contracts be recorded separately from and in addition to the stand ready guarantee liability accounted for in accordance with ASC Topic 460. Before adoption of ASC Topic 326, guarantee liability is recorded at the higher of the amount determined in accordance with ASC Topic 450 and the amount determined in accordance with ASC Topic 460. The initial adoption resulted in an increase in guarantee liability related to the recognition of a separate contingent liability. Consequently, the quality assurance payable is separated into expected credit losses for quality assurance commitment, which represents the expected credit losses of the guarantee contracts accounted for in accordance with ASC Topic 326, and deferred guarantee income, which represents the stand-ready liability accounted for in accordance with ASC Topic 460. The adoption of ASC Topic 326 on January 1, 2020, resulted in a RMB883.0 million decrease to retained earnings. (c) Principle of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries, which include the WOFEs and consolidated VIEs, for which the Company is the ultimate primary beneficiary. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors. Consolidated VIEs are entities in which the WOFEs through their respective contractual arrangements, bear the risks of, and enjoy the rewards normally associated with, ownership of the entities, and therefore the Company is the primary beneficiary of these entities. All transactions and balances among the Company, its subsidiaries, the VIEs and the VIEs’ subsidiaries have been eliminated upon consolidation. Details of the typical structure of the Company’s significant VIEs are set forth below: i) VIE Agreements that give the Company effective control of VIEs Business Operation Agreement Pursuant to the relevant business operation agreements, the shareholders of the VIEs agree that to the extent permitted by law, they will accept and unconditionally execute the WOFEs’ instructions on business operations, such as appointment of directors and executive officers. They further agree that, without the WOFEs’ prior written consent, the VIEs will not take any action that may have material adverse effects on their assets, businesses, human resources, rights, obligations, or business operations. The shareholders of the VIEs agree to transfer any dividends or other similar income or interests they receive as the shareholders of the VIEs, if any, immediately and unconditionally to the WOFEs. This agreement also requires each of the shareholders of the VIEs to issue an irrevocable power of attorney authorizing the WOFEs or any person(s) designated by the WOFEs to execute shareholders’ rights on behalf of such shareholder. Unless the WOFEs terminate this agreement in advance, the agreement will remain effective until the VIEs are dissolved pursuant to PRC law. Power of Attorney Pursuant to each power of attorney, each shareholder of the VIEs have irrevocably appointed the WOFEs or any persons designated by the WOFEs to act as such shareholder’s attorney-in-fact Exclusive Option Agreement Pursuant to the exclusive option agreements, the Nominee Shareholders of the VIEs granted the WOFEs or any third party designated by the WOFEs the exclusive and irrevocable right to purchase from the Nominee Shareholders, to the extent permitted by PRC law and regulations, all or part of its respective equity interests in the VIEs for a purchase price equal to the registered capital. The Nominee Shareholders will then return the purchase price to the WOFEs or any third party designated by the WOFEs after the option is exercised. The WOFEs may transfer all or part of its option to a third party at its own option. The VIEs and the Nominee Shareholders agree that without prior written consent of the WOFEs, they may not transfer or otherwise dispose the equity interests or declare any dividend. The exclusive option agreement will remain effective until the WOFEs or any third party designated by the WOFEs acquire all equity interest of the VIEs. Equity Pledge Agreement Pursuant to relevant equity pledge agreements, each shareholder of the VIEs has pledged all of his or her equity interest held in the VIEs to the WOFEs to guarantee his or her obligations under the business operation agreement, the power of attorney, exclusive option agreement and the exclusive technology consulting and service agreement. In the event that the VIEs breach any obligations under these agreements, the WOFEs as the pledgee, 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. The Nominee Shareholders may not dispose of the equity interests or create or permit any pledges which may have an adverse effect on the rights or benefits of the WOFEs without the prior written consent of the WOFEs. The relevant share pledge agreements will remain effective until the VIEs and its Nominee Shareholders discharge all of their obligations under the VIE Agreements and the pledgee consents such discharge in writing. ii) VIE Agreement Exclusive technology consulting and service agreement Pursuant to the exclusive technology consulting and service agreements, WOFEs have the exclusive right to provide the VIEs and their subsidiaries (as designated in the agreement) with technical support, consulting services and other services. The WOFEs shall exclusively own any intellectual property arising from the performance of the agreement. During the term of this agreement, the VIEs and their designated subsidiaries may not accept any services covered by this agreement provided by any third party. The VIEs and their designated subsidiaries agree to pay service fees equal to 100% of the net profit generated or otherwise determined by the WOFEs. Except by mutual agreement upon early termination by parties in writing, the exclusive business cooperation agreement will remain effective until the VIEs and their designated subsidiaries are dissolved in accordance with PRC law and regulation. Based on these contractual agreements, the Company believes that the VIEs as described above should be considered as VIEs because the equity holders do not have significant equity at risk nor do they have the characteristics of a controlling financial interest. Given that the Company, through the WOFEs, is the primary beneficiary of these VIEs, the Company believes that these VIEs should be consolidated based on the structure as described above. The Group has established a series of trusts administrated by third-party trust companies. Since these trusts make loans solely to borrowers referred the Group to provide returns to the trust beneficiaries, the Group has power to direct the activities of the trusts. In addition, the Group has the obligation to absorb losses or the right to receive benefits from the trusts that could potentially be significant to the trusts. As a result, the Group is considered the primary beneficiary of the trusts and their assets including loans receivable (Note 3), liabilities, results of operations and cash flows are consolidated under Accounting Standards Codification (“ASC”) 810. The following table sets forth the assets, liabilities, results of operations and cash flows of the VIEs and their subsidiaries (including the consolidated trusts), which are included in the Group’s consolidated financial statements. Transactions between the VIEs (including the consolidated trusts) and their subsidiaries are eliminated in the balances presented below: As of December 31, 2020 2021 RMB RMB Cash and cash equivalents 1,660,549 2,176,581 Restricted cash 3,176,799 3,691,832 Short-term investments 1,970,958 1,173,523 Accounts receivable and contract assets 685,556 1,805,079 Quality assurance receivable 1,121,554 931,798 Property, equipment and software, net 67,010 43,241 Intangible assets 35,187 35,187 Right of use assets 54,385 48,941 Loans and receivables, net of credit loss allowance for loans receivables 2,107,837 1,696,495 Investments 888,081 820,607 Investment in subsidiaries and VIEs 48,147 70,578 Deferred tax assets 149,511 343,494 Amounts due from Group companies — 2,200,275 Prepaid expenses and other assets 1,002,863 1,672,654 Total assets 12,968,437 16,710,285 Payable to platform customers 103,453 81,150 Deferred guarantee income 1,259,396 1,089,503 Expected credit losses for quality assurance commitment 2,390,501 3,188,561 Payroll and welfare payable 132,955 146,697 Taxes payable 53,552 57,237 Funds payable to investors of consolidated trusts 1,661,841 1,795,640 Contract liabilities — 6,826 Deferred tax liabilities 67,217 45,656 Leasing liabilities 42,775 33,184 Amounts due to Group companies 2,151,941 4,005,052 Amounts due to related party 1,984 2,265 Accrued expenses and other liabilities 472,446 598,570 Total liabilities 8,338,061 11,050,341 For the years ended December 31, 2019 2020 2021 RMB RMB RMB Third-party revenues 5,742,868 6,993,099 8,333,978 Inter-company revenues 27,033 159,319 796,071 Net revenues 5,769,901 7,152,418 9,130,049 Third-party expenses (2,213,442 ) (2,000,511 ) (3,441,504 ) Inter-company expenses (1,837,121 ) (1,129,163 ) (2,545,816 ) Related party expenses (43,494 ) (10,104 ) (7,503 ) Provision for accounts receivable and contract assets (258,071 ) (116,387 ) (134,938 ) Provision for loans receivable (257,263 ) (302,243 ) 32,317 Credit losses for quality assurance commitment — (2,007,968 ) (1,963,609 ) Total Operating expenses (4,609,391 ) (5,566,376 ) (8,061,053 ) Loss from subsidiaries and VIEs (1,128 ) (2,372 ) (448 ) Income from operations 1,159,382 1,583,670 1,068,548 Other income, net 32,435 100,830 93,674 Gain from quality assurance 98,405 — — Realized gain from financial guarantee derivatives 31,444 — — Fair value change of financial guarantee derivatives (56,287 ) — — Profit before income tax expense 1,265,379 1,684,500 1,162,222 Income tax expenses (268,504 ) (319,700 ) (144,463 ) Net profit 996,875 1,364,800 1,017,759 For the years ended December 31, 2019 2020 2021 RMB RMB RMB Cash used in operating activities under service agreements for Inter-company (239,476 ) (2,143,205 ) (2,313,224 ) Cash provided by operating activities under service agreements for Inter-company 26,225 137,624 534,988 Net cash provided by operating activities for Third-party 209,889 2,415,649 1,412,435 Net cash provided by (used in) operating activities (3,362 ) 410,068 (365,801 ) Capital contribution to Group companies — — (22,432 ) Collection of loans from Group companies — — 389,043 Cash paid as loans extended to Group companies — — (2,328,235 ) Other investing activities (981,638 ) 1,268,657 1,668,517 Net cash provided by (used in) investing activities (981,638 ) 1,268,657 (293,107 ) Repayment of loans to Group companies — — (164,719 ) Cash received as loans from Group companies 31,920 — 1,785,238 Other financing activities 2,000,911 (2,286,962 ) 69,454 Net cash provided by (used in) financing activities 2,032,831 (2,286,962 ) 1,689,973 Under the VIE Arrangements, the Company has the power to direct activities of the VIEs and can have assets transferred out of the VIEs. Therefore, the Company considers that there is asset in the VIEs that can be used only to settle obligations of the VIEs, except for registered capital and PRC statutory reserves, if any. As the VIEs are incorporated as limited liability company under the Company Law of the PRC, creditors of the VIEs do not have recourse to the general credit of the Company for any of the liabilities of the VIEs. Currently there is no contractual arrangement which requires the Company to provide additional financial support to the VIEs. However, as the Company conducts its businesses primarily based on the licenses and approvals held by the VIEs and their subsidiaries, the Company has provided and will continue to provide financial support to the VIEs. VIEs’ assets comprise both recognized and unrecognized revenue-producing assets. The recognized revenue-producing assets include leasehold improvements, computers and network equipment and purchased intangible assets which are recognized in the Company’s consolidated balance sheet. The unrecognized revenue-producing assets mainly consist of copyrights, trademarks and operation licenses which are not recorded in the financial statements of VIEs as they did not meet the recognition criteria set in ASC 350-30-25. (d) Business combinations and noncontrolling interests The Company accounts for its business combinations using the acquisition method of accounting in accordance with Accounting Standards Codification (“ASC”) 805 “Business Combinations.” The cost of an acquisition is measured as the aggregate of the acquisition date fair values of the assets transferred and liabilities incurred by the Company to the sellers and equity instruments issued. Transaction costs directly attributable to the acquisition are expensed as incurred. Identifiable assets and liabilities acquired or assumed are measured separately at their fair values as of the acquisition date, irrespective of the extent of any noncontrolling interests. The excess of (i) the total costs of acquisition, fair value of the noncontrolling interests and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the consolidated income statements. During the measurement period, which can be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the consolidated statements of operations. In a business combination achieved in stages, the Company re-measures re-measurement When there is a change in ownership interests that result in a loss of control of a subsidiary, the Company deconsolidates the subsidiary from the date control is lost. Any retained noncontrolling investment in the former subsidiary is measured at fair value and is included in the calculation of the gain or loss upon deconsolidation of the subsidiary. For the Company’s majority-owned subsidiaries and VIEs, a noncontrolling interest is recognized to reflect the portion of their equity which is not attributable, directly or indirectly, to the Company. Consolidated net income (loss) on the consolidated income statements includes the net income (loss) attributable to noncontrolling interests and mezzanine equity holders when applicable. Net income (loss) attributable to mezzanine equity holders is included in net income (loss) attributable to noncontrolling interests on the consolidated income statements, while it is excluded from the consolidated statements of changes in shareholders’ equity. The cumulative results of operations attributable to noncontrolling interests, along with adjustments for share-based compensation expense arising from outstanding share-based awards relating to subsidiaries’ shares, are also recorded as noncontrolling interests in the Company’s consolidated balance sheets. Cash flows related to transactions with noncontrolling interests are presented under financing activities in the consolidated statements of cash flows. (e) Use of estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Financial statements amounts that reflect significant accounting estimates and assumptions include revenue recognition, measurement for provisions and liabilities in scope for ASC Topic 326 including credit loss provision for quality assurance receivables, loan receivables and accounts receivable and contract assets as well as expected credit losses for quality assurance commitment, valuation allowance for deferred tax assets, determination of uncertain tax positions, and valuation of share-based awards. Such accounting estimates are impacted significantly by judgements and assumptions used in the preparation of the Group’s consolidated financial statements, and actual results could differ materially from these estimates. Changes in estimates are recorded in the period they are identified. (f) Foreign currency and foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The US$ is the functional currency of the Group’s entities incorporated in Cayman Islands and Hong Kong, and the RMB is the functional currency of the Group’s PRC subsidiaries. Transactions denominated in other than the functional currencies are re-measured into the functional currency of the entity at the exchange rates prevailing on the transaction dates. Financial assets and liabilities denominated in other than the functional currency are re-measured at the balance sheet date exchange rate. The resulting exchange differences are recorded in the consolidated statements of comprehensive income. The financial statements of the Group are translated from the functional currency to the reporting currency, RMB. Assets and liabilities of the subsidiaries are translated into RMB using the exchange rate in effect at each balance sheet date. Income and expenses items are generally translated at the average exchange rates prevailing during the fiscal year. Foreign currency translation adjustments arising from these are accumulated as a separate component of shareholders’ equity on the consolidated financial statements . The exchange rates used for translation on December 31, 2020 and 2021 were US$1.00= RMB6.5249 and RMB6.3757, respectively, representing the index rates stipulated by the People’s Bank of China. (g) Convenience translation Translations of balances in the Group’s consolidated balance sheet, consolidated statement of operations and comprehensive income and consolidated statement of cash flows from RMB into US$ as of and for year ended December 31, 2021 are solely for the convenience of the readers and were calculated at the rate of US$1.00=RMB6.3726, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 3 0 0 (h) Significant risks and uncertainties Risk of concentration As of December 31, 2020 and 2021, substantially all of the Group’s cash, term deposit and cash equivalents, restricted cash and short-term investments were held in major financial institutions located in the PRC and in Hong Kong, which management considers to be of high credit quality. Accounts receivable and contract assets are generally unsecured and denominated in RMB, and are derived from revenues earned from operations arising primarily in the PRC. No individual customer accounted for more than 10% of net revenues for the years ended December 31, 2019, 2020 and 2021. No individual customer accounted for more than 10% of accounts receivable and contract assets as of December 31, 2020 and 2021. Risk of uncertainties In October 2019, the China Banking and Insurance Regulatory Commission, together with eight other regulatory agencies jointly promulgated the Supplemental Rules to the Administration of Financing Guarantee Companies (“Circular 37”), which provides that any entity providing client referral or credit assessment services to the lending institutions may not provide financing guarantee services in a direct or a disguised form without the regulatory approval. If any entity operates financing guarantee business or provide financing guarantee services in a disguised form without appropriate approval, its business operations will be banned by the regulatory authorities and it will be required to properly settle existing business. Such entity might also subject to penalties including fines and confiscation of illegal gains if applicable. In the Group’s collaboration with institutional funding partners, in order to attract and maintain such business relationship, the Group currently provides quality assurance commitment mainly through (i) repurchase of default loans from third-party guarantee companies which provide guarantee for the loans from institutional funding partners and (ii) setting aside security deposits with third-party guarantee companies to ensure the Group has enough cash to perform its repurchase obligation if the borrowers introduced by the Group default. Due to the lack of legal interpretation for financing guarantee in a disguised form, there is uncertainty related to whether such quality assurance commitment provided to institutional funding partners constitutes a financing guarantee in a disguised form. If the quality assurance commitment provided by the Group were determined to be financing guarantee in a disguise form, the Group’s business, financial condition, results of operations and liquidity will be materially and adversely affected. In order to reduce the compliance risk under Circular 37, the Group incorporated three licensed financial guarantee companies since 2019, which, since the incorporation, provide direct guarantees for certain loans funded by the institutional funding partners to replace existing quality assurance commitment provided. In 2021, The Group increased the registered capital of the guarantee subsidiaries from RMB1.9 billion as of December 31, 2020, to RMB2.4 billion as of December 31, 2021. While the outstanding loan principle covered by proper direct guarantees provided by the Group as a percentage of all outstanding loan balances facilitated by the Group increased, the absolute amount of outstanding loan principle under the quality assurance commitment increased as a result of the Group’s expansion of the business size in 2021. However, the Group will continue its effort to increase its guarantee capability by obtaining additional financial guarantee licenses or increasing the capital of its financial guarantee subsidiaries to continue reducing its risk of noncompliance. (i) Cash and cash equivalents Cash and cash equivalents represent cash on hand, demand deposits, term deposits and highly liquid investments placed with banks or other financial institutions, which have original maturities less than three months. (j) Restricted cash Restricted cash represents: (i) Cash in quality assurance is cash managed by the Group through designated bank accounts under the new quality assurance program. There is no other use of these funds except for making payments to investors for default loans that are subject to quality assurance protection. As of December 31, 2020 and 2021, the restricted cash related to quality assurance obligations were RMB1,671,785 and RMB2,042,084, respectively. (ii) Cash held in escrow accounts that is jointly managed by the Group and institutional funding partners. As of December 31, 2020 and 2021, the restricted cash managed by the Group and institutional funding partners amounted to RMB701,673 and RMB1,281,869, respectively. (iii) Cash received via consolidated trusts that has not yet been distributed. As of December 31, 2020 and 2021, the restricted cash related to cash not yet distributed amounted to RMB482,285 and RMB341,397, respectively. (iv) Cash held in capital verification account under the name of a subsidiary of the Group established in December 2020 as a paid-in (v) Cash received from borrowers that has not yet been disbursed to institutional funding partners. As of December 31, 2020 and 2021, the restricted cash held as related to cash not yet disbursed amounted to RMB225,031 and RMB326,914, respectively. (vi) Cash received from investors or borrowers that has not yet been disbursed, due to a settlement time lag. As of December 31, 2020 and 2021, the restricted cash related to cash not yet disbursed amounted to RMB103,453 and RMB81,150, respectively. (k) Short-term Investments Short-term investments mainly consist of investments in wealth management products. The wealth management products are certain deposits with variable interest rates or principal not guaranteed with certain financial institutions. Realized and unrealized gain related to the short-term investments is recorded as other income in the consolidated statements of comprehensive income. RMB52,863, RMB33,189 and RMB91,686 was recognized for the years ended December 31, 2019, 2020 and 2021, respectively. (l) Accounts receivable, contract assets and credit loss allowance Accounts receivable and contract assets is related to the facilitation and post-facilitation service in relation to loans facilitated by the Group. Contract assets represent the Group’s right to consideration in exchange for services that the Group has transferred to the customer before payment is due. The Group only recognizes accounts receivable and contract assets to the extent that the Group believes it is probable that it will collect substantially all of the consideration to which it will be entitled to in exchange for the services transferred to the customer. Accounts receivable and contract assets is stated at the historical carrying amount net of write-offs and credit risk allowance. Beginning in 2020, the Group establishes a credit loss allowance based on expectations of lifetime credit losses based on historical default experience, known or inherit risks in the portfolio, current economic conditions and macroeconomics forecasts as well as other factors surrounding the credit risk of borrowers (Note 2(b)). Prior 2020, the credit loss allowance was determined to be the amount of probable incurred credit losses based on historical default experience and other factors surrounding the credit risk of the borrowers. The Group evaluates and adjusts its credit loss allowance on a quarterly basis or more often as necessary. Accounts receivable and contract assets that are delinquent for 180 days or more are generally written off. (m) Investments The Group has classified its investments into equity method investments and non-marketable The Group applies equity method in accounting for its investments in entities in which the Group has the ability to exercise significant influence but does not have control and the investments are in either common stock or in-substance Non-marketable non-marketable The following table sets forth the investments the Group holds as of December 31, 2020 and 2021, respectively. As of December 31, 2020 2021 Equity method investments 129,622 132,377 Non-marketable 820,893 838,740 950,515 971,117 Equity method investments For the years ended December 31, 2019, 2020 and 2021, the Group made investments in several private equity funds and accounted these investments as equity method investments as the Group has ability to significantly influence the operations or financial activities of the investees. For the years ended December 31, 2019, 2020 and 2021, the Group recognized an impairment loss of nill, nill and RMB5,000 for equity method investments, respectively. Non-marketable For the years ended December 31, 2019, 2020 and 2021, the Group made investments of less than 10% of equity interest in several non-listed non-marketable For the years ended December 31, 2019, 2020 and 2021, the Group recognized an impairment loss of nil, RMB33,600 and nil for non-marketable equity investments, respectively. (n) Fair value measurement 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. The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs that may be used to measure fair value include: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Observable, market-based inputs, other than quoted prices, in active markets for identical assets or liabilities. Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. The Group does not have any non-financial The Group’s financial instruments consist principally of cash and cash equivalents, restricted cash, short-term investments, quality assurance receivable, loans receivable, accounts receivable, payable to platform customers, quality assurance payable, deferred guarantee income, expected credit losses for quality assurance commitment, short-term borrowings and other liabilities. Short-term investments The short-term investments mainly consist of wealth management products and are measured at fair value. Other financial instruments The carrying amounts of financial instruments other than short-term investments, approximate their fair values due to the short-term maturities of these instruments. Assets and liabilities measured at fair value on a recurring basis The following table sets forth the Group’s assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy: December 31, 2020 Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Fair value RMB RMB RMB RMB Assets Short-term investments —wealth management products — 1,970,958 — 1,970,958 December 31, 2021 Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Fair value RMB RMB RMB RMB Assets Short-term investments —wealth management products — 1,204,901 — 1,204,901 The Group values its wealth management products held in certain banks using quoted rate of return or quoted subscription/redemption prices published by the banks for these products, and accordingly, the Group classifies such wealth management products as Level 2 within the fair value hierarchy based on |
Loans receivable, net
Loans receivable, net | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Loans receivable, net | 3. Loans receivable, net Loans receivable originated and retained by the Group consist of the following: As of December 31, 2020 2021 RMB RMB Loans 2,736,894 2,410,149 Credit loss allowance for loans receivable (382,012 ) (427,873 ) Loans receivable, net 2,354,882 1,982,276 As of December 31, 2021 and 2020, the entire loans receivable balance represents the outstanding loans made to the borrowers from consolidated trusts and subsidiaries of the Group. As part of the Group’s efforts to develop new product offerings for institutional funding partners, a series of trusts were established and administrated by third-party trust companies. These trusts make loans solely to borrowers referred the Group to provide returns to the trust beneficiaries. As such, the Group has power to direct the activities of the trusts. In addition, the Group is either the sole beneficiary of certain trusts or has the obligation to absorb losses or the right to receive residual benefits from certain trusts that could potentially be significant to these trusts. As a result, the Group is considered the primary beneficiary of the trusts and their assets, liabilities, results of operations and cash flows are consolidated accordingly. The following table sets forth the activity in the allowance for loan losses for the years ended December 31, 2019, 2020 and 2021. For the years ended December 31, 2019 2020 2021 RMB RMB RMB Beginning balance 74,381 316,124 382,012 Impact of adoption of ASC 326 (Note 2(b)) — 303,291 — Provision for loans receivable 299,504 463,175 374,243 Current period write off (57,761 ) (700,578 ) (328,382 ) Ending balance 316,124 382,012 427,873 The Group evaluates expected credit losses of loans receivable by on a collective basis based on the type of borrowers and delinquency pattern. Credit quality indicators are updated quarterly, and the credit quality of any given customer can change during the life of the portfolio. The following table presents loans receivables based on type of borrowers and delinquency as of December 31, 2020 and December 31, 2021: 1-89 past due 90-119 days past due 120-149 days past due 150-179 days past due Total past due Current Total loans receivable December 31, 2020 New borrowers 19,443 5,564 5,359 4,667 35,033 231,001 266,034 Repeat borrowers 101,880 28,994 27,251 27,449 185,574 2,285,286 2,470,860 Total 121,323 34,558 32,610 32,116 220,607 2,516,287 2,736,894 December 31, 2021 New borrowers 31,036 8,658 9,771 7,181 56,646 251,554 308,200 Repeat borrowers 93,254 25,998 26,061 21,617 166,930 1,935,019 2,101,949 Total 124,290 34,656 35,832 28,798 223,576 2,186,573 2,410,149 As the average tenor of loans facilitated on the Group’s platform are around 9 months, substantially all of the loans receivable balance as of December 31, 2021 are originated in 2021. As of December 31, 2020 non-accrual non-accrual non-accrual Beginning in 2020, management performs a quarterly evaluation of the adequacy of credit loss allowance for loan receivables primarily based on expectations of lifetime credit losses based on historical default experience, known or inherit risks in the portfolio, current economic conditions and macroeconomic forecasts as well as other factors surrounding the credit risk of borrowers (Note 2(b)). When forecasting macroeconomic factors, management primarily considered gross domestic product, consumer price index and other pertinent factors such as money supply wherein M1 money supply was determined to be the most relevant to the Group’s business. The allowance is calculated at portfolio-level since the loan portfolio is typically of smaller balance homogenous loans and is collectively evaluated for impairment. |
Prepaid expenses and other asse
Prepaid expenses and other assets | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid expenses and other assets | 4. Prepaid expenses and other assets Receivables, prepayments and other assets consist of the following: As of December 31, 2020 2021 RMB RMB Security deposits and other deposits 1 965,117 1,666,713 Deductible value-added taxes 20,292 105,002 Prepaid online marketing expenses 15,956 33,709 Advances 10,455 15,715 Others 38,189 78,299 1,050,009 1,899,438 1 Security deposits and other deposits primarily includes security deposits and rental deposits. Security deposits were set aside as requested by certain institutional funding partners, held in deposit accounts with the institutional funding partners. As of December 31, 2020 and 2021, security deposits set aside by the Group amounted to RMB953,856 and RMB1,654,989, respectively. |
Property, equipment and softwar
Property, equipment and software, net | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, equipment and software, net | 5. Property, equipment and software, net Property, equipment and software, net consist of the following: As of December 31, 2020 2021 RMB RMB Computer and electronic equipment 173,653 231,196 Office furniture and equipment 17,136 22,279 Leasehold improvement 47,324 39,266 Software 45,582 46,752 Total 283,695 339,493 Less: Accumulated depreciation and amortization 1 (189,819 ) (227,096 ) Property, equipment and software, net 93,876 112,397 1 Depreciation and amortization expenses for the years ended December 31, 2019, 2020 and 2021 was RMB57,712, RMB51,780 and RMB37,277 respectively. |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets | 6. Intangible assets Intangible assets consist of the following: As of December 31, 2020 2021 RMB RMB Micro-Lending License 63,760 63,760 Factoring License 265 265 Financial Leasing License 255 255 Insurance Brokerage License 1 34,667 34,667 Total 98,947 98,947 Less: Accumulated amortization and impairment — — Intangible assets 98,947 98,947 1 The Group acquired an insurance brokeage company in 2020. The acquisitions met the “single or similar asset threshold” and are not considered as business combination in accordance with ASC Topic 805 but asset acquisition. |
Accounts receivable and contrac
Accounts receivable and contract assets | 12 Months Ended |
Dec. 31, 2021 | |
Text Block [Abstract] | |
Accounts receivable and contract assets | 7. Accounts receivable and contract assets The following table presents the accounts receivable and contract assets as of December 31, 2020 and 2021: As of December 31, 2020 2021 RMB RMB Accounts receivable and contract assets 1,052,631 2,141,542 Credit loss allowance for accounts receivable and contract assets (188,725 ) (250,696 ) Accounts receivable and contract assets, net 863,906 1,890,846 The Group evaluates expected credit losses of accounts receivable and contract assets on a collective basis based on the type of borrowers and delinquency pattern. Credit quality indicators are updated quarterly, and the credit quality of any given customer can change during the life of the portfolio. The following table presents accounts receivable and contract assets based on type of borrowers and delinquency as of December 31, 2020 and 2021: 1-89 days past due 90-119 days past due 120-149 days past due 150-179 days past due Total past Current Total accounts receivable and December 31, 2020 New borrowers 6,781 1,672 1,587 1,870 11,910 117,030 128,940 Repeat borrowers 20,105 5,942 5,356 5,458 36,861 756,322 793,183 Other — — — — — 130,508 130,508 Total 26,886 7,614 6,943 7,328 48,771 1,003,860 1,052,631 December 31, 2021 New borrowers 16,964 3,626 2,863 2,491 25,944 451,127 477,071 Repeat borrowers 50,589 10,409 8,207 6,811 76,016 1,365,710 1,441,726 Other — — — — — 222,745 222,745 Total 67,553 14,035 11,070 9,302 101,960 2,039,582 2,141,542 As the average tenor of loans facilitated on the Group’s platform are around 9 months, substantially all of the accounts receivable and contract assets balance as of December 31, 2021 are originated in 2021. As disclosed in note 2(l), the Company writes-off The following table sets forth the movement of credit loss allowance for accounts receivable and contract assets as of December 31, 2020 and 2021, respectively: For the years ended December 31, 2019 2020 2021 RMB RMB Beginning balance 50,544 145,699 188,725 Impact of adoption of ASC 326 (Note 2(b)) — 142,077 — Provision for accounts receivable and contract assets 261,882 124,661 139,226 Current period write-off (166,727 ) (223,712 ) (77,255 ) Ending balance 145,699 188,725 250,696 |
Employee benefits
Employee benefits | 12 Months Ended |
Dec. 31, 2021 | |
Postemployment Benefits [Abstract] | |
Employee benefits | 8. Employee benefits The full time employees of the Group are entitled to staff welfare benefits, including medical insurance, basic pensions, unemployment insurance, work injury insurance, maternity insurance and housing funds. The Group is required to accrue for these benefits based on certain percentages of the employees’ salaries in accordance with the relevant regulations and to make contribution to the state-sponsored pension and medical plans. The total amounts charged to the consolidated statements of comprehensive income for such employee benefits amounted to approximately RMB144,596, RMB80,505 and RMB140,135 for the years ended December 31, 2019, 2020 and 2021, respectively. |
Accrued expenses and other liab
Accrued expenses and other liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Accrued expenses and other liabilities | 9. Accrued expenses and other liabilities Accrued expenses and other liabilities consist of the following: As of December 31, 2020 2021 RMB RMB Funds payable to institutional funding partners * 225,031 326,914 Accrued marketing expense 134,743 133,399 Accrued collection service fee 36,943 41,654 Accrued technical services expense 16,930 25,988 Accrued payment channel expenses 13,212 21,055 Accrued professional service fee 25,503 25,074 Others 56,640 64,748 509,002 638,832 * The balance of payable mainly includes funds received from borrowers but not yet transferred to the institutional funding partners due to the settlement time lag. |
Related party balances and tran
Related party balances and transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related party balances and transactions | 10. Related party balances and transactions Transaction with PPcredit Amounts incurred by the Group For the years ended December 31, 2019 2020 2021 RMB RMB RMB Data collection service expense (i) 43,494 10,104 7,503 (i) PPcredit Data Service (Shanghai) Co., Ltd. (“PPcredit”) was founded in April 2016 by the founders of the Group to provide data collection services. The Group mainly uses PPcredit as a data provider since PPcredit was established. The price for the service is determined based on the price charged by other market participants. Amounts due to related parties As of December 31, 2020 2021 RMB RMB PPcredit 1,984 2,265 |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Taxation | 11. Taxation Cayman Islands Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain. Additionally, upon payments of dividends to the shareholders, no Cayman Islands withholding tax will be imposed. Hong Kong Under the current Hong Kong Inland Revenue Ordinance, the Company’s subsidiaries incorporated in Hong Kong are subject to 16.5% income tax on their taxable income generated from operations in Hong Kong. Additionally, payments of dividends by the subsidiaries incorporated in Hong Kong to the Company are not subject to any Hong Kong withholding tax. Commencing from the year of assessment of 2018, the first HK$2 million of profits earned by the Company’s subsidiaries incorporated in Hong Kong will be taxed at half the current tax rate (i.e. 8.25%) while the remaining profits will continue to be taxed at the existing 16.5% tax rate. No Hong Kong profits tax was provided for as there was no estimated assessable profits tax during the relevant periods. Indonesia Under the current laws of Indonesia, the Company’s subsidiaries incorporated in Indonesia are subject to 22% income tax on their taxable income generated from operations in Indonesia. The PRC On March 16, 2007, the National People’s Congress of the PRC enacted an Enterprise Income Tax Law (“EIT Law”), under which Foreign Investment Enterprises (“FIEs”) and domestic companies would be subject to EIT at a uniform rate of 25%. The EIT law became effective on January 1, 2008. On April 14, 2008, relevant governmental regulatory authorities released qualification criteria, application procedures and assessment processes for “high and new technology enterprises” (“HNTE”), which will be entitled to a favorable statutory tax rate of 15%. An enterprise’s qualification as a HNTE is reassessed by the relevant PRC governmental authorities every three years. Shanghai PPDai and Shanghai Erxu were entitled for a preferential income tax rate of 15% from 2018 to 2020 as they are qualified as HNTE. Starting from 2021, these subsidiaries no longer enjoyed a preferential income tax rate of 15%. In January 2018, Shanghai Shanghu was approved the Software Enterprise Status. In accordance with PRC EIT Law, Shanghai Shanghu was entitled to enjoy full income tax exemption for 2017 and 2018, and a preferential income tax rate of 12.5% for 2019 to 2021. In May 2020, Shanghai Shanghu was approved the qualification of Key Software Enterprise Status in 2019 and was entitled to a preferential tax rate of 10% for 2019. In 2020, Hainan Shanghu applied for Software Enterprise Status and obtained Software Enterprise Status in 2021. In accordance with PRC EIT Law, Hainan Shanghu is entitled to enjoy full exemption from EIT for two years beginning from 2020 to 2021, and a 50% reduction for the subsequent three years. The EIT Law also provides that an enterprise established under the laws of a foreign country or region but whose “de facto management body” is located in the PRC be treated as a resident enterprise for PRC tax purposes and consequently be subject to the PRC income tax at the rate of 25 non-PRC The EIT Law also imposes a withholding income tax of 10% on dividends distributed by a FIE to its immediate holding company outside of China, if such immediate holding company is considered as a non-resident Prior to 2020, as the Company had the intent and ability to indefinitely reinvest the PRC subsidiaries’ accumulated profits for expansion of its PRC business, no withholding tax was recorded for those accumulated profits. Starting from 2020, the Company decided to remit certain percentage of the annual profits of its PRC subsidiaries to their overseas parent company for dividend distribution purposes. The Group accrued RMB18 million and RMB58 million withholding tax liabilities based on a 10% tax rate for certain percentage of the PRC subsidiaries’ profits to be distributed in 2020 and 2021, respectively. As of December 31, 2020 and 2021, there were approximately RMB2,669 million and RMB4,604 million accumulated undistributed profits of PRC subsidiaries that no deferred tax liabilities were provided, respectively. The Group still intends to indefinitely reinvest these remaining undistributed earnings in its PRC subsidiaries. The Group has not accrued any tax for the outside basis difference represented by the accumulated undistributed profits of the consolidated VIEs, which amounted to tax-free Composition of income tax expenses The current and deferred portions of income tax expenses included in the consolidated statements of comprehensive income during the years ended December 31, 2019, 2020 and 2021 are as follows: For the years ended December 31, 2019 2020 2021 RMB RMB RMB Current income tax expenses 390,080 298,096 503,139 Deferred income tax expense 91,882 157,325 (262,321 ) Total 481,962 455,421 240,818 Reconciliation of the differences between statutory tax rate and the effective tax rate The Group did not identify significant unrecognized tax benefits for the years ended December 31, 2019, 2020 and 2021 and does not anticipate any significant change in unrecognized tax benefits within 12 months from December 31, 2021. The following table sets forth reconciliation between the computed expected tax expenses (benefit) rate and the effective income tax rate: For the years ended December 31, 2019 2020 2021 RMB RMB RMB Statutory tax rate 25 % 25 % 25 % Research and development tax credit (3 )% (2 )% (3 )% Effect of tax holiday* (7 )% (7 )% (17 )% Change in valuation allowance 1 % 1 % 1 % Non-deductible 1 % 1 % 1 % Withholding tax — 1 % 2 % Effective income tax rate 17 % 19 % 9 % * As Hainan Shanghu obtained software enterprise status in the fourth quarter of 2021, the Group reversed a total of RMB220.2 million tax expenses in the fourth quarter of 2021 including RMB76.1 million related to 2020 and RMB144.1 million related to for the first three quarters of 2021. As Shanghai Shanghu obtained Key Software Enterprise Status in 2020, the Group reversed a total of RMB33.8 million tax expenses related to 2019 in 2020. The aggregate amount and per share effect of the tax holidays are as follows For the years ended December 31, 2019 2020 2021 RMB RMB RMB Tax holiday effect 202,923 168,677 471,798 Net profit per share effect - Basic 0.13 0.11 0.33 - Diluted 0.13 0.11 0.32 Deferred tax assets The following table sets forth the significant components of the deferred tax assets: As of December 31, 2020 2021 RMB RMB Deferred tax assets: Timing difference in revenue recognition — 244,215 Provision for accounts receivable and contract assets and loans receivable 77,578 168,398 Net accumulated losses-carry forward 69,454 117,850 Payroll and welfare payable and other temporary difference 5,831 12,379 Quality assurance obligations 45,128 2,016 Less: Valuation allowance (42,233 ) (89,117 ) Total deferred tax assets 155,758 455,741 Deferred tax liabilities: Intangible assets arisen from business combination and asset acquisition (24,607 ) (24,607 ) Unrealized gain in consolidated trusts (58,897 ) (36,989 ) Other taxable temporary difference (2,044 ) — Withholding tax for undistributed earnings (18,000 ) (76,036 ) Total deferred tax liabilities (103,548 ) (137,632 ) Movement of valuation allowances For the years ended December 31, 2019 2020 2021 RMB RMB RMB At beginning of year 40,143 6,245 42,233 Current year additions 741 40,054 50,925 Current year reversals (34,639 ) (4,066 ) (4,041 ) At end of year 6,245 42,233 89,117 Valuation allowances have been provided on deferred tax assets due to the uncertainty surrounding their realization. As of December 31, 2020 and 2021, valuation allowances on deferred tax assets mainly arising from tax loss carry forwards were provided because it was more likely than not that the Group will not be able to utilize tax loss carry forwards and certain deductible expenses generated by certain unprofitable subsidiaries. As of December 31, 2021, total tax loss carry forwards of the Company’s subsidiaries in the PRC of approximately RMB487,439, will expire if not used between 2022 and 2026. The applicable carry-forward limitation period is 5 years under the PRC EIT law. Uncertain tax positions The Group evaluates the level of authority for each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. As of December 31, 2020 and 2021, the Group did not have any significant unrecognized uncertain tax positions. |
Ordinary shares and treasury st
Ordinary shares and treasury stock | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Ordinary shares and treasury stock | 12. Ordinary shares and treasury stock FinVolution Group was incorporated as Limited Liability Company with authorized share capital of US$50,000 divided into 5,000,000,000 shares, of which 4,266,159,600 shares are designated as ordinary shares at par value of US$0.00001 and 733,840,400 as preferred shares. Immediately prior to the completion of the initial public offering, the Company adopted a dual class share structure. For the years ended December 31, 2019, 2020 and 2021, the Company repurchased 12,729,500, 139,954,870 and 4,171,000 Class A ordinary shares on the open market for an aggregate cash consideration of US$6.8 million (RMB47.2 million), US$55.4 million (RMB384.9 million) and US$2.5 million (RMB16.2 million). The weighted average price of these shares repurchased were US$0.53, US$0.40 and US$0.60 per share. These issued and repurchased shares are considered not outstanding and therefore were accounted for under the cost method and includes such treasury stock as a component of the shareholder’s equity. For the years ended December 31, 2019, 2020 and 2021, certain Class B ordinary shareholders sold 73,000,000, 5,000,000 and 1,800,000 Class B ordinary shares on the open market which were automatically transferred into Class A ordinary shares upon completion of the transaction. As of December 31, 2021, 1,550,071,169 ordinary shares have been issued at par value of US$0.00001, including (i) 970,871,169 Class A ordinary shares and (ii) 579,200,000 Class B ordinary shares. |
Share-based compensation
Share-based compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-based compensation | 13. Share-based compensation 1) Share based compensation plan of FinVolution Group The Group recognizes share-based compensation, net of estimated forfeitures, on a straight line basis over the vesting term of the awards. All the share-based awards granted by the Group are service conditions only. There was In June 2013 and October 2017, the Group adopted 2013 Share Incentive Plan (the “2013 plan”) and 2017 Share Incentive Plan (the “2017 plan”), which allows the Group to offer share based incentive awards to employees, officers, directors and individual consultants who render services to the Group by granting options, restricted shares or restricted share units. Awards granted under 2013 plan or 2017 plan are generally subject to a four-year vesting schedule as determined by the administrator of the plans. Share Options The following table sets forth the stock option shares activities under all the option plans for the years ended December 31, 2019, 2020 and 2021: Options Weighted Weighted Aggregate US$ US$ Outstanding at December 31, 2019 54,564,430 0.4519 2.51 4,264 Granted 3,035,750 0.1111 — — Canceled/Forfeited (19,350,460 ) 0.1327 — — Expired (454,170 ) 0.9663 — — Exercised (11,765,920 ) 0.1235 — — Outstanding at December 31, 2020 26,029,630 0.3708 1.31 5,581 Vested and expected to vest at December 31, 2020 25,712,658 0.3704 1.30 5,524 Exercisable as of December 31, 2020 17,371,695 0.3097 0.88 4,524 Granted — — — — Canceled/Forfeited (1,300,000 ) 0.5876 — — Expired (40,835 ) 0.1260 — — Exercised (17,614,760 ) 0.2915 — — Outstanding at December 31, 2021 7,074,035 0.5331 1.24 3,607 Vested and expected to vest at December 31, 2021 7,022,578 0.5333 1.24 3,580 Exercisable as of December 31, 2021 4,527,920 0.4981 0.53 2,541 For the years ended December 31, 2019, 2020 and 2021, total share-based compensation expenses recognized related to the share options were RMB22,118, RMB6,218 and RMB774, respectively. As of December 31, 2021, the unrecognized compensation cost was RMB1,839. These amounts are expected to be recognized over a weighted average period of 1.68 years. Total compensation cost may be adjusted for future changes in estimated forfeitures. The aggregate intrinsic value is calculated as the difference between the exercise prices of the options and the per-share The weighted average grant-date per-share The fair value of each option granted under the Company’s Incentive Shares plan was estimated on the date of grant using the binomial model that uses the assumption noted in the following table: Options Granted Options Granted RMB RMB Risk-free interest rate 2.62 % 0.6 % Expected life (in years) 5 5 Expected dividend yield 0 % 0 % Expected volatility 38.01 % 48.61 % Exercise multiple 2.2-2.8 2.8 RSUs The following table sets forth the Company’s RSUs activities under all incentive plans for the years ended December 31, 2019, 2020 and 2021: Number of RSUs Weighted-average US$ Unvested at December 31, 2019 12,023,795 0.9880 Granted 71,935,155 0.3551 Vested (3,916,645 ) 0.8144 Canceled/Forfeited (4,211,810 ) 0.6760 Unvested at December 31, 2020 75,830,495 0.4290 Granted 22,322,425 0.7675 Vested (15,183,045 ) 0.4803 Canceled/Forfeited (10,052,130 ) 0.4644 Unvested at December 31, 2021 72,917,745 0.5452 Total share-based compensation cost for the RSUs amounted to RMB20,142, RMB35,951 and RMB94,439 for the years ended December 31, 2019, 2020 and 2021, respectively. As of December 31, 2021, there was RMB184,130 unrecognized compensation cost, net of estimated forfeitures, related to unvested restricted shares, which are to be recognized over a weighted average vesting period of 2.68 years. Total unrecognized compensation cost may be adjusted for future changes in estimated forfeitures. The Company determined the fair value of RSUs based on its stock price on the date of grant. |
Net profit per share
Net profit per share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net profit per share | 14. Net profit per share Basic net profit per share is computed using the weighted average number of the ordinary shares outstanding during the period. Diluted net profit per share is computed using the weighted average number of ordinary shares and potential ordinary shares outstanding during the period under the treasury stock method. Basic net profit per share and diluted net profit per share have been calculated in accordance with ASC Topic 260 on computation of earnings per share for the years ended December 31, 2019, 2020 and 2021 as follows: For the years ended December 31, 2019 2020 2021 RMB RMB RMB Basic net profit per share calculation: Numerator: Net profit attributable to FinVolution Group’s ordinary shareholders 2,372,850 1,972,700 2,508,947 Denominator: Weighted average number of ordinary shares outstanding—basic 1,525,814,189 1,477,162,991 1,420,870,790 Net profit per share attributable to FinVolution Group’s ordinary shareholders—basic 1.56 1.34 1.77 Dilute net profit per share calculation: Numerator: Net profit attributable to FinVolution Group’s ordinary shareholders 2,372,850 1,972,700 2,508,947 Denominator: Weighted average number of ordinary shares outstanding—basic 1,525,814,189 1,477,162,991 1,420,870,790 Ordinary 23,831,652 9,801,862 8,495,974 Ordinary shares issuable upon the vesting of outstanding restricted share units using the treasury stock method 2,777,219 4,360,567 53,135,068 Weighted average number of ordinary shares outstanding—diluted 1,552,423,060 1,491,325,420 1,482,501,832 Net profit per share attributable to FinVolution Group’s ordinary shareholders—diluted 1.53 1.32 1.69 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | 15. Leases T non-cancellable right-of-use (a) The following table sets forth the breakdown of leasing expenses: For the years ended December 31, 2020 2021 RMB RMB Lease cost: Amortization of right-of-use 41,377 30,261 Interest of lease liabilities 3,276 1,695 Expenses for short-term leases within 12 months 7,526 5,911 Total lease cost 52,179 37,867 (b) The following table sets forth the supplemental cash flow information related to leases: For the years ended December 31, 2020 2021 RMB RMB Other information: Cash paid for amounts included in the measurement of lease liabilities: Operating lease payments 45,682 36,066 (c) The following table sets forth the weighted-average remaining lease term and discount rate: As of December 31, 2020 2021 Weighted-average remaining lease term Operating leases 1.70 years 3.30 years Weighted-average discount rate Operating leases 4.75 % 4.75 % (d) The following table sets forth the movement of right of use assets for the years ended December 31, 2020 and 2021: For the years ended December 31, 2020 2021 RMB RMB Beginning balance 95,786 54,968 Recognition of additional leasing contract 559 24,431 Amortization of right of use assets (41,377 ) (30,261 ) Ending balance 54,968 49,138 (e) The following table sets forth the movement of leasing liabilities for the years ended December 31, 2020 and 2021: For the years ended December 31, 2020 2021 RMB RMB Beginning balance 85,143 43,296 Recognition of additional leasing contract 559 24,431 Interest of lease liabilities 3,276 1,695 Leasing payment (45,682 ) (36,066 ) Ending balance 43,296 33,356 (f) The following table sets forth the maturities of lease liabilities: As of December 31, 2021 RMB 2022 17,111 2023 6,308 2024 4,476 2025 4,700 2026 3,655 Total undiscounted lease payments 36,250 Less: Imputed interest (2,894 ) Total lease liabilities 33,356 |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | 1 6 (a) Capital and other commitments The Group did not have capital and other significant commitments, long-term obligations, or guarantees as of December 31, 2021. (b) Contingencies i) VIE Arrangements From time to time, the Group is involved in claims and legal proceedings that arise in the ordinary course of business. Based on currently available information, management does not believe that the ultimate outcome of these unresolved matters, individually and in the aggregate, is likely to have a material adverse effect on the Group’s financial position, results of operations or cash flows. However, litigation is subject to inherent uncertainties and the Group’s view of these matters may change in the future. If an unfavorable outcome were to occur, there exists the possibility of a material adverse impact on the Group’s financial position, results of operations and cash flows for the periods in which the unfavorable outcome occurs. The Group accounts for loss contingencies in accordance with ASC Topic 450 “Contingencies” and other related guidance. Set forth below is a description of certain loss contingencies as well as the opinion of management as to the likelihood of loss. Current PRC laws and regulations include limitations on foreign ownership in PRC companies that conduct online business. Specifically, foreign investors are not allowed to own any equity interests in any entity conducting online business. Since the Company is incorporated in the Cayman Islands, neither the Company nor its PRC subsidiary is eligible to conduct online business in China. To comply with PRC laws and regulations, the Company conducts its operations in China through a series of contractual arrangements entered into among its wholly owned PRC subsidiaries, the WOFEs, its affiliated PRC entities, the VIEs and the VIEs’ shareholders. The VIEs and their subsidiaries hold the licenses that are essential to the operation of the Group’s business. In the opinion of management and the Company’s PRC legal counsel, (i) the ownership structure of the Company, the WOFE and the VIEs are in compliance with existing PRC laws and regulations; (ii) the contractual arrangements with the VIEs and their shareholders are valid and binding, and will not result in any violation of PRC laws or regulations currently in effect; and (iii) the Group’s business operations are in compliance with existing PRC laws and regulations in all material respects. However, there are substantial uncertainties regarding the interpretation and application of current and future PRC laws and regulations. Accordingly, the Company cannot be assured that PRC regulatory authorities will not ultimately take a contrary view to its opinion. If the current ownership structure of the Company and its contractual arrangements with the VIEs were found to be in violation of any existing or future PRC laws and regulations, the Company may be required to restructure its ownership structure and operations in the PRC to comply with the changing and new PRC laws and regulations. Under PRC Ministry of Commerce (“MOFCOM”) security review rules promulgated in September 2011, a national security review is required for certain mergers and acquisitions by foreign investors raising concerns regarding national defense and security. Foreign investors are prohibited from circumventing the national security review requirements by structuring transactions through proxies, trusts, indirect investment, leases, loans, control through contractual arrangements, or offshore transactions. Management, in conjunction with its PRC legal counsel, has concluded there is no need to submit the existing contractual arrangements with consolidated VIEs and its shareholders to the MOFCOM for national security review based upon analysis of the rules. However, there are substantial uncertainties regarding the interpretation and application of the MOFCOM security review rules, and any new laws, rules, regulations or detailed implementation measures in any form relating to such rules. Therefore, the Company cannot be assured that the relevant PRC regulatory authorities, such as the MOFCOM, would not ultimately take a contrary view to the opinion of management and the Company’s PRC legal counsel. If the MOFCOM or other PRC regulatory authority determines that the Company needs to submit the existing contractual arrangements with the VIEs and its shareholders for national security review, the Company may face sanctions by the MOFCOM or other PRC regulatory authority, which may include, among others, requiring the Company to restructure its ownership structure, discontinuation or restriction of operations in the PRC, or invalidation of the agreements that the VIEs have entered into with the VIEs and its shareholders. In such case, the Company may not be able to operate or control business in the same manner as it currently does, and therefore, may not be able to consolidate the VIEs and their subsidiaries. In addition, the relevant regulatory authorities would have broad discretion in dealing with such violations which may adversely impact the financial statements, operations and cash flows of the Company (including restrictions on the Company to carry out business). If the VIEs and their respective shareholders fail to perform their respective obligations under the current contractual arrangements, the Company may have to incur substantial costs and expend significant resources to enforce those arrangements and rely on legal remedies under PRC laws. The PRC laws, rules and regulations are relatively new, and because of the limited volume of published decisions and their non-binding In the opinion of management, the likelihood of loss in respect of the Company’s current ownership structure or the contractual arrangements with the VIEs is remote. In accordance with the Interim Measures on Administration of Business Activities of Online Lending Information Intermediaries (Interim Measures) jointly issued by China Banking Regulatory Commission, or the CBRC, together with three other PRC regulatory agencies in August 2016, a record-filing and licensing regime is introduced. It requires online lending information intermediaries to register with the local financial regulatory authority, update their industrial and commercial registration with the local commercial registration authority to include “online lending information intermediary” in their business scope, and obtain telecommunication business license from the relevant telecommunication regulatory authority. As of the date of this report, the local financial regulatory authorities are still in the process of making detailed implementation rules regarding the filing procedures and the Company has not been permitted to submit such filing application. ii) VIE Enforceability In the opinion of management and the Company’s PRC legal counsel, (i) the ownership structure of the Company, the WOFEs and the VIEs are in compliance with existing PRC laws and regulations; (ii) the contractual arrangements with the VIEs and their shareholders are valid and binding and enforceable. However, uncertainties in the interpretation and enforcement of the PRC laws, regulations and policies could limit the Company’s ability to enforce these contractual arrangements. In addition, shareholders of certain VIEs are founders of the Group, who collectively controls more than 50% of total voting power. Therefore, the enforceability of the contractual agreements between VIEs and their shareholders depends on whether shareholders or their PRC holding entities will fulfill these contractual agreements. As a result, the Company may be unable to consolidate the VIE and VIE’ subsidiaries in the consolidated financial statements. iii) Class Action Starting in September 2018, the Company and certain of its current and former officers and directors, the underwriters of the Company’s initial public offering in November 2017, and the Company’s agent for the service of process in the U.S. have been named as defendants in putative securities class actions captioned Yizhong Huang v. PPDAI Group Inc., et al. Case No. 654482/2018 (New York County of the Supreme Court of the State of New York, filed on September 10, 2018) (the “Huang Case”); Ravindra Vora v. PPDAI Group Inc., et al., Case No. 654777/2018 (New York County of the Supreme Court of the State of New York, filed on September 27, 2018) (the “Vora Case”); Lai v. PPDAI Group Inc., et al. Case No. 1:2018-cv-06716 2:2019-cv-00168 These actions allege that defendants made misstatements and omissions in connection with the Company’s initial public offering in November 2017 in violation of the Securities Act of 1933. The Lai Case also advances claims under the Securities Exchange Act of 1934. On October 16, 2018, the Supreme Court of the State of New York consolidated the two state court lawsuits (the Huang Case and the Vora Case) under the caption In re PPDAI Group Securities Litigation, No. 654482/2018 (the “New York State Action”). On December 17, 2018, the plaintiffs in the New York State Action filed a consolidated amended complaint, which the Company and certain other defendants moved to dismiss. On February 26, 2020, the Court in the New York State Action granted in part and denied in part defendants’ motion to dismiss. The Company and certain other defendants appealed the partial denial of their motion. On February 21, 2019, the U.S. District Court for the Eastern District of New York consolidated the two federal court lawsuits (the Lai Case and the Goyal Case) under the caption In re PPDAI Group Inc. Securities Litigation, No. 18-cv-6716-FB-JO |
Restricted net assets
Restricted net assets | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Restricted net assets | 17 Relevant PRC laws and regulations permit PRC companies to pay dividends only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. Additionally, the Company’s PRC subsidiaries can only distribute dividends upon approval of the shareholders after they have met the PRC requirements for appropriation to statutory reserves. The statutory general reserve fund requires annual appropriations of 10% of net after-tax shareholders. Furthermore, cash transfers from the Group’s PRC subsidiaries to their parent companies outside of China are subject to PRC government control of currency conversion. Shortages in the availability of foreign currency may temporarily delay the ability of the PRC subsidiaries and consolidated affiliated entities to remit sufficient foreign currency to pay dividends or other payments to the Group, or otherwise satisfy their foreign currency denominated obligations. |
Condensed financial information
Condensed financial information of the parent company | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed financial information of the parent company | 18 The Company performed a test on the restricted net assets of consolidated subsidiaries in accordance with Securities and Exchange Commission Regulation S-X 4-08 The subsidiaries did not pay any dividend to the Company for the years presented. For the purpose of presenting parent only financial information, the Company records its investments in its subsidiaries under the equity method of accounting. Such investments are presented on the separate condensed balance sheets of the Company as “Investments in subsidiaries” and the profit of the subsidiaries is presented as “share of profit of subsidiaries”. Certain information and footnote disclosures generally included in financial statements prepared in accordance with U.S. GAAP have been condensed and omitted. These statements should be read in conjunction with the notes to the consolidated financial statements of the Company. The Company did not have significant capital and other commitments, long-term obligations, or guarantees as of December 31, 2020 and 2021. As of December 31, 2020 2021 RMB RMB US$ Note2(f) Assets Cash and cash equivalents 28,435 38,231 5,999 Prepaid expenses and other assets 1,247 2,795 439 Amounts due from Group companies 1,302,606 694,123 108,923 Investment in subsidiaries and VIEs 7,949,999 10,574,557 1,659,379 Total assets 9,282,287 11,309,706 1,774,740 Liabilities and Shareholders’ Equity Accrued expenses and other liabilities 32,571 5,647 885 Contract liability 3,447 1,610 253 Amounts due to Group companies 882,963 647,199 101,559 Total liabilities 918,981 654,456 102,697 Shareholders’ equity : Class A ordinary shares (US$0.00001 par value; 10,000,000,000 shares 854,591,404 64 64 10 Class B ordinary shares (US$0.00001 par value; 10,000,000,000 shares 39 39 6 Additional paid-in 5,659,990 5,694,733 893,628 Treasury stock (144,906,570 and 116,279,765 (401,621 ) (324,171 ) (50,870 ) Statutory reserves 458,058 610,403 95,786 Accumulated other comprehensive income (5,142 ) (16,769 ) (2,630 ) Retained earnings 2,651,918 4,690,951 736,113 Total shareholders’ equity 8,363,306 10,655,250 1,672,043 Total liabilities and shareholders’ equity 9,282,287 11,309,706 1,774,740 Statements of comprehensive income For the years ended December 31, 2019 2020 2021 RMB RMB RMB US$ Operating expenses General and administrative expenses (25,590 ) (20,720 ) (18,617 ) (2,921 ) Profits from operations Other income, net 7,898 2,158 1,502 236 Income from subsidiaries and VIEs 2,390,542 1,991,262 2,526,062 396,394 Net profit 2,372,850 1,972,700 2,508,947 393,709 Net profit attributable to ordinary shareholders 2,372,850 1,972,700 2,508,947 393,709 Statements of cash flows For the years ended December 31, 2019 2020 2021 RMB RMB RMB US$ Note 2(f) Net cash provided by (used in) operating activities for Third-party 8,474 (6,282 ) (45,587 ) (7,154 ) Net cash provided by (used in) operating activities 8,474 (6,282 ) (45,587 ) (7,154 ) Collection of loans from Group companies 86,471 557,936 846,737 132,871 Cash paid as loans extended to Group companies — — (238,254 ) (37,387 ) Net cash provided by (used in) investing activities 86,471 557,936 608,483 95,484 Repayment of loans to Group companies — — (839,719 ) (131,770 ) Cash received as loans from Group companies — — 603,955 94,774 Other financing activities (401,400 ) (636,936 ) (310,221 ) (48,681 ) Net cash provided by (used in) financing activities (401,400 ) (636,936 ) (545,985 ) (85,677 ) |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent events | 19 On March 1 5 2 and is expected to be distributed on or around May 6, 2022 to shareholders of record as of the close of business on April 13, 2022. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation | (a) Basis of presentation The Group’s consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying consolidated financial statements and related disclosures. Actual results may differ from those estimates. |
Adoption of new credit loss accounting standard | (b) Adoption of new credit loss accounting standard On January 1, 2020, the Group adopted ASU 2016-13 ASC Topic 326 introduced a current expected credit loss (“CECL”) methodology, which replaced the probable incurred credit losses methodology used under the historical accounting guidance. Under ASC Topic 326 methodology, credit losses are recorded upon initial recognition of financial assets at an amount equal to the lifetime expected losses. Under probable incurred credit losses methodology, credit losses are recorded when the losses are probable or have been incurred. ASC Topic 326 requires the expected credit losses related to guarantee contracts be recorded separately from and in addition to the stand ready guarantee liability accounted for in accordance with ASC Topic 460. Before adoption of ASC Topic 326, guarantee liability is recorded at the higher of the amount determined in accordance with ASC Topic 450 and the amount determined in accordance with ASC Topic 460. The initial adoption resulted in an increase in guarantee liability related to the recognition of a separate contingent liability. Consequently, the quality assurance payable is separated into expected credit losses for quality assurance commitment, which represents the expected credit losses of the guarantee contracts accounted for in accordance with ASC Topic 326, and deferred guarantee income, which represents the stand-ready liability accounted for in accordance with ASC Topic 460. The adoption of ASC Topic 326 on January 1, 2020, resulted in a RMB883.0 million decrease to retained earnings. |
Principle of consolidation | (c) Principle of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries, which include the WOFEs and consolidated VIEs, for which the Company is the ultimate primary beneficiary. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors. Consolidated VIEs are entities in which the WOFEs through their respective contractual arrangements, bear the risks of, and enjoy the rewards normally associated with, ownership of the entities, and therefore the Company is the primary beneficiary of these entities. All transactions and balances among the Company, its subsidiaries, the VIEs and the VIEs’ subsidiaries have been eliminated upon consolidation. Details of the typical structure of the Company’s significant VIEs are set forth below: i) VIE Agreements that give the Company effective control of VIEs Business Operation Agreement Pursuant to the relevant business operation agreements, the shareholders of the VIEs agree that to the extent permitted by law, they will accept and unconditionally execute the WOFEs’ instructions on business operations, such as appointment of directors and executive officers. They further agree that, without the WOFEs’ prior written consent, the VIEs will not take any action that may have material adverse effects on their assets, businesses, human resources, rights, obligations, or business operations. The shareholders of the VIEs agree to transfer any dividends or other similar income or interests they receive as the shareholders of the VIEs, if any, immediately and unconditionally to the WOFEs. This agreement also requires each of the shareholders of the VIEs to issue an irrevocable power of attorney authorizing the WOFEs or any person(s) designated by the WOFEs to execute shareholders’ rights on behalf of such shareholder. Unless the WOFEs terminate this agreement in advance, the agreement will remain effective until the VIEs are dissolved pursuant to PRC law. Power of Attorney Pursuant to each power of attorney, each shareholder of the VIEs have irrevocably appointed the WOFEs or any persons designated by the WOFEs to act as such shareholder’s attorney-in-fact Exclusive Option Agreement Pursuant to the exclusive option agreements, the Nominee Shareholders of the VIEs granted the WOFEs or any third party designated by the WOFEs the exclusive and irrevocable right to purchase from the Nominee Shareholders, to the extent permitted by PRC law and regulations, all or part of its respective equity interests in the VIEs for a purchase price equal to the registered capital. The Nominee Shareholders will then return the purchase price to the WOFEs or any third party designated by the WOFEs after the option is exercised. The WOFEs may transfer all or part of its option to a third party at its own option. The VIEs and the Nominee Shareholders agree that without prior written consent of the WOFEs, they may not transfer or otherwise dispose the equity interests or declare any dividend. The exclusive option agreement will remain effective until the WOFEs or any third party designated by the WOFEs acquire all equity interest of the VIEs. Equity Pledge Agreement Pursuant to relevant equity pledge agreements, each shareholder of the VIEs has pledged all of his or her equity interest held in the VIEs to the WOFEs to guarantee his or her obligations under the business operation agreement, the power of attorney, exclusive option agreement and the exclusive technology consulting and service agreement. In the event that the VIEs breach any obligations under these agreements, the WOFEs as the pledgee, 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. The Nominee Shareholders may not dispose of the equity interests or create or permit any pledges which may have an adverse effect on the rights or benefits of the WOFEs without the prior written consent of the WOFEs. The relevant share pledge agreements will remain effective until the VIEs and its Nominee Shareholders discharge all of their obligations under the VIE Agreements and the pledgee consents such discharge in writing. ii) VIE Agreement Exclusive technology consulting and service agreement Pursuant to the exclusive technology consulting and service agreements, WOFEs have the exclusive right to provide the VIEs and their subsidiaries (as designated in the agreement) with technical support, consulting services and other services. The WOFEs shall exclusively own any intellectual property arising from the performance of the agreement. During the term of this agreement, the VIEs and their designated subsidiaries may not accept any services covered by this agreement provided by any third party. The VIEs and their designated subsidiaries agree to pay service fees equal to 100% of the net profit generated or otherwise determined by the WOFEs. Except by mutual agreement upon early termination by parties in writing, the exclusive business cooperation agreement will remain effective until the VIEs and their designated subsidiaries are dissolved in accordance with PRC law and regulation. Based on these contractual agreements, the Company believes that the VIEs as described above should be considered as VIEs because the equity holders do not have significant equity at risk nor do they have the characteristics of a controlling financial interest. Given that the Company, through the WOFEs, is the primary beneficiary of these VIEs, the Company believes that these VIEs should be consolidated based on the structure as described above. The Group has established a series of trusts administrated by third-party trust companies. Since these trusts make loans solely to borrowers referred the Group to provide returns to the trust beneficiaries, the Group has power to direct the activities of the trusts. In addition, the Group has the obligation to absorb losses or the right to receive benefits from the trusts that could potentially be significant to the trusts. As a result, the Group is considered the primary beneficiary of the trusts and their assets including loans receivable (Note 3), liabilities, results of operations and cash flows are consolidated under Accounting Standards Codification (“ASC”) 810. The following table sets forth the assets, liabilities, results of operations and cash flows of the VIEs and their subsidiaries (including the consolidated trusts), which are included in the Group’s consolidated financial statements. Transactions between the VIEs (including the consolidated trusts) and their subsidiaries are eliminated in the balances presented below: As of December 31, 2020 2021 RMB RMB Cash and cash equivalents 1,660,549 2,176,581 Restricted cash 3,176,799 3,691,832 Short-term investments 1,970,958 1,173,523 Accounts receivable and contract assets 685,556 1,805,079 Quality assurance receivable 1,121,554 931,798 Property, equipment and software, net 67,010 43,241 Intangible assets 35,187 35,187 Right of use assets 54,385 48,941 Loans and receivables, net of credit loss allowance for loans receivables 2,107,837 1,696,495 Investments 888,081 820,607 Investment in subsidiaries and VIEs 48,147 70,578 Deferred tax assets 149,511 343,494 Amounts due from Group companies — 2,200,275 Prepaid expenses and other assets 1,002,863 1,672,654 Total assets 12,968,437 16,710,285 Payable to platform customers 103,453 81,150 Deferred guarantee income 1,259,396 1,089,503 Expected credit losses for quality assurance commitment 2,390,501 3,188,561 Payroll and welfare payable 132,955 146,697 Taxes payable 53,552 57,237 Funds payable to investors of consolidated trusts 1,661,841 1,795,640 Contract liabilities — 6,826 Deferred tax liabilities 67,217 45,656 Leasing liabilities 42,775 33,184 Amounts due to Group companies 2,151,941 4,005,052 Amounts due to related party 1,984 2,265 Accrued expenses and other liabilities 472,446 598,570 Total liabilities 8,338,061 11,050,341 For the years ended December 31, 2019 2020 2021 RMB RMB RMB Third-party revenues 5,742,868 6,993,099 8,333,978 Inter-company revenues 27,033 159,319 796,071 Net revenues 5,769,901 7,152,418 9,130,049 Third-party expenses (2,213,442 ) (2,000,511 ) (3,441,504 ) Inter-company expenses (1,837,121 ) (1,129,163 ) (2,545,816 ) Related party expenses (43,494 ) (10,104 ) (7,503 ) Provision for accounts receivable and contract assets (258,071 ) (116,387 ) (134,938 ) Provision for loans receivable (257,263 ) (302,243 ) 32,317 Credit losses for quality assurance commitment — (2,007,968 ) (1,963,609 ) Total Operating expenses (4,609,391 ) (5,566,376 ) (8,061,053 ) Loss from subsidiaries and VIEs (1,128 ) (2,372 ) (448 ) Income from operations 1,159,382 1,583,670 1,068,548 Other income, net 32,435 100,830 93,674 Gain from quality assurance 98,405 — — Realized gain from financial guarantee derivatives 31,444 — — Fair value change of financial guarantee derivatives (56,287 ) — — Profit before income tax expense 1,265,379 1,684,500 1,162,222 Income tax expenses (268,504 ) (319,700 ) (144,463 ) Net profit 996,875 1,364,800 1,017,759 For the years ended December 31, 2019 2020 2021 RMB RMB RMB Cash used in operating activities under service agreements for Inter-company (239,476 ) (2,143,205 ) (2,313,224 ) Cash provided by operating activities under service agreements for Inter-company 26,225 137,624 534,988 Net cash provided by operating activities for Third-party 209,889 2,415,649 1,412,435 Net cash provided by (used in) operating activities (3,362 ) 410,068 (365,801 ) Capital contribution to Group companies — — (22,432 ) Collection of loans from Group companies — — 389,043 Cash paid as loans extended to Group companies — — (2,328,235 ) Other investing activities (981,638 ) 1,268,657 1,668,517 Net cash provided by (used in) investing activities (981,638 ) 1,268,657 (293,107 ) Repayment of loans to Group companies — — (164,719 ) Cash received as loans from Group companies 31,920 — 1,785,238 Other financing activities 2,000,911 (2,286,962 ) 69,454 Net cash provided by (used in) financing activities 2,032,831 (2,286,962 ) 1,689,973 Under the VIE Arrangements, the Company has the power to direct activities of the VIEs and can have assets transferred out of the VIEs. Therefore, the Company considers that there is asset in the VIEs that can be used only to settle obligations of the VIEs, except for registered capital and PRC statutory reserves, if any. As the VIEs are incorporated as limited liability company under the Company Law of the PRC, creditors of the VIEs do not have recourse to the general credit of the Company for any of the liabilities of the VIEs. Currently there is no contractual arrangement which requires the Company to provide additional financial support to the VIEs. However, as the Company conducts its businesses primarily based on the licenses and approvals held by the VIEs and their subsidiaries, the Company has provided and will continue to provide financial support to the VIEs. VIEs’ assets comprise both recognized and unrecognized revenue-producing assets. The recognized revenue-producing assets include leasehold improvements, computers and network equipment and purchased intangible assets which are recognized in the Company’s consolidated balance sheet. The unrecognized revenue-producing assets mainly consist of copyrights, trademarks and operation licenses which are not recorded in the financial statements of VIEs as they did not meet the recognition criteria set in ASC 350-30-25. |
Business combinations and noncontrolling interests | (d) Business combinations and noncontrolling interests The Company accounts for its business combinations using the acquisition method of accounting in accordance with Accounting Standards Codification (“ASC”) 805 “Business Combinations.” The cost of an acquisition is measured as the aggregate of the acquisition date fair values of the assets transferred and liabilities incurred by the Company to the sellers and equity instruments issued. Transaction costs directly attributable to the acquisition are expensed as incurred. Identifiable assets and liabilities acquired or assumed are measured separately at their fair values as of the acquisition date, irrespective of the extent of any noncontrolling interests. The excess of (i) the total costs of acquisition, fair value of the noncontrolling interests and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the consolidated income statements. During the measurement period, which can be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the consolidated statements of operations. In a business combination achieved in stages, the Company re-measures re-measurement When there is a change in ownership interests that result in a loss of control of a subsidiary, the Company deconsolidates the subsidiary from the date control is lost. Any retained noncontrolling investment in the former subsidiary is measured at fair value and is included in the calculation of the gain or loss upon deconsolidation of the subsidiary. For the Company’s majority-owned subsidiaries and VIEs, a noncontrolling interest is recognized to reflect the portion of their equity which is not attributable, directly or indirectly, to the Company. Consolidated net income (loss) on the consolidated income statements includes the net income (loss) attributable to noncontrolling interests and mezzanine equity holders when applicable. Net income (loss) attributable to mezzanine equity holders is included in net income (loss) attributable to noncontrolling interests on the consolidated income statements, while it is excluded from the consolidated statements of changes in shareholders’ equity. The cumulative results of operations attributable to noncontrolling interests, along with adjustments for share-based compensation expense arising from outstanding share-based awards relating to subsidiaries’ shares, are also recorded as noncontrolling interests in the Company’s consolidated balance sheets. Cash flows related to transactions with noncontrolling interests are presented under financing activities in the consolidated statements of cash flows. |
Use of estimates | (e) Use of estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Financial statements amounts that reflect significant accounting estimates and assumptions include revenue recognition, measurement for provisions and liabilities in scope for ASC Topic 326 including credit loss provision for quality assurance receivables, loan receivables and accounts receivable and contract assets as well as expected credit losses for quality assurance commitment, valuation allowance for deferred tax assets, determination of uncertain tax positions, and valuation of share-based awards. Such accounting estimates are impacted significantly by judgements and assumptions used in the preparation of the Group’s consolidated financial statements, and actual results could differ materially from these estimates. Changes in estimates are recorded in the period they are identified. |
Foreign currency and foreign currency translation | (f) Foreign currency and foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The US$ is the functional currency of the Group’s entities incorporated in Cayman Islands and Hong Kong, and the RMB is the functional currency of the Group’s PRC subsidiaries. Transactions denominated in other than the functional currencies are re-measured into the functional currency of the entity at the exchange rates prevailing on the transaction dates. Financial assets and liabilities denominated in other than the functional currency are re-measured at the balance sheet date exchange rate. The resulting exchange differences are recorded in the consolidated statements of comprehensive income. The financial statements of the Group are translated from the functional currency to the reporting currency, RMB. Assets and liabilities of the subsidiaries are translated into RMB using the exchange rate in effect at each balance sheet date. Income and expenses items are generally translated at the average exchange rates prevailing during the fiscal year. Foreign currency translation adjustments arising from these are accumulated as a separate component of shareholders’ equity on the consolidated financial statements . The exchange rates used for translation on December 31, 2020 and 2021 were US$1.00= RMB6.5249 and RMB6.3757, respectively, representing the index rates stipulated by the People’s Bank of China. |
Convenience translation | (g) Convenience translation Translations of balances in the Group’s consolidated balance sheet, consolidated statement of operations and comprehensive income and consolidated statement of cash flows from RMB into US$ as of and for year ended December 31, 2021 are solely for the convenience of the readers and were calculated at the rate of US$1.00=RMB6.3726, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 3 0 0 |
Significant risks and uncertainties | (h) Significant risks and uncertainties Risk of concentration As of December 31, 2020 and 2021, substantially all of the Group’s cash, term deposit and cash equivalents, restricted cash and short-term investments were held in major financial institutions located in the PRC and in Hong Kong, which management considers to be of high credit quality. Accounts receivable and contract assets are generally unsecured and denominated in RMB, and are derived from revenues earned from operations arising primarily in the PRC. No individual customer accounted for more than 10% of net revenues for the years ended December 31, 2019, 2020 and 2021. No individual customer accounted for more than 10% of accounts receivable and contract assets as of December 31, 2020 and 2021. Risk of uncertainties In October 2019, the China Banking and Insurance Regulatory Commission, together with eight other regulatory agencies jointly promulgated the Supplemental Rules to the Administration of Financing Guarantee Companies (“Circular 37”), which provides that any entity providing client referral or credit assessment services to the lending institutions may not provide financing guarantee services in a direct or a disguised form without the regulatory approval. If any entity operates financing guarantee business or provide financing guarantee services in a disguised form without appropriate approval, its business operations will be banned by the regulatory authorities and it will be required to properly settle existing business. Such entity might also subject to penalties including fines and confiscation of illegal gains if applicable. In the Group’s collaboration with institutional funding partners, in order to attract and maintain such business relationship, the Group currently provides quality assurance commitment mainly through (i) repurchase of default loans from third-party guarantee companies which provide guarantee for the loans from institutional funding partners and (ii) setting aside security deposits with third-party guarantee companies to ensure the Group has enough cash to perform its repurchase obligation if the borrowers introduced by the Group default. Due to the lack of legal interpretation for financing guarantee in a disguised form, there is uncertainty related to whether such quality assurance commitment provided to institutional funding partners constitutes a financing guarantee in a disguised form. If the quality assurance commitment provided by the Group were determined to be financing guarantee in a disguise form, the Group’s business, financial condition, results of operations and liquidity will be materially and adversely affected. In order to reduce the compliance risk under Circular 37, the Group incorporated three licensed financial guarantee companies since 2019, which, since the incorporation, provide direct guarantees for certain loans funded by the institutional funding partners to replace existing quality assurance commitment provided. In 2021, The Group increased the registered capital of the guarantee subsidiaries from RMB1.9 billion as of December 31, 2020, to RMB2.4 billion as of December 31, 2021. While the outstanding loan principle covered by proper direct guarantees provided by the Group as a percentage of all outstanding loan balances facilitated by the Group increased, the absolute amount of outstanding loan principle under the quality assurance commitment increased as a result of the Group’s expansion of the business size in 2021. However, the Group will continue its effort to increase its guarantee capability by obtaining additional financial guarantee licenses or increasing the capital of its financial guarantee subsidiaries to continue reducing its risk of noncompliance. |
Cash and cash equivalents | (i) Cash and cash equivalents Cash and cash equivalents represent cash on hand, demand deposits, term deposits and highly liquid investments placed with banks or other financial institutions, which have original maturities less than three months. |
Restricted cash | (j) Restricted cash Restricted cash represents: (i) Cash in quality assurance is cash managed by the Group through designated bank accounts under the new quality assurance program. There is no other use of these funds except for making payments to investors for default loans that are subject to quality assurance protection. As of December 31, 2020 and 2021, the restricted cash related to quality assurance obligations were RMB1,671,785 and RMB2,042,084, respectively. (ii) Cash held in escrow accounts that is jointly managed by the Group and institutional funding partners. As of December 31, 2020 and 2021, the restricted cash managed by the Group and institutional funding partners amounted to RMB701,673 and RMB1,281,869, respectively. (iii) Cash received via consolidated trusts that has not yet been distributed. As of December 31, 2020 and 2021, the restricted cash related to cash not yet distributed amounted to RMB482,285 and RMB341,397, respectively. (iv) Cash held in capital verification account under the name of a subsidiary of the Group established in December 2020 as a paid-in (v) Cash received from borrowers that has not yet been disbursed to institutional funding partners. As of December 31, 2020 and 2021, the restricted cash held as related to cash not yet disbursed amounted to RMB225,031 and RMB326,914, respectively. (vi) Cash received from investors or borrowers that has not yet been disbursed, due to a settlement time lag. As of December 31, 2020 and 2021, the restricted cash related to cash not yet disbursed amounted to RMB103,453 and RMB81,150, respectively. |
Short-term Investments | (k) Short-term Investments Short-term investments mainly consist of investments in wealth management products. The wealth management products are certain deposits with variable interest rates or principal not guaranteed with certain financial institutions. Realized and unrealized gain related to the short-term investments is recorded as other income in the consolidated statements of comprehensive income. RMB52,863, RMB33,189 and RMB91,686 was recognized for the years ended December 31, 2019, 2020 and 2021, respectively. |
Accounts receivable, contract assets and Credit loss allowance | (l) Accounts receivable, contract assets and credit loss allowance Accounts receivable and contract assets is related to the facilitation and post-facilitation service in relation to loans facilitated by the Group. Contract assets represent the Group’s right to consideration in exchange for services that the Group has transferred to the customer before payment is due. The Group only recognizes accounts receivable and contract assets to the extent that the Group believes it is probable that it will collect substantially all of the consideration to which it will be entitled to in exchange for the services transferred to the customer. Accounts receivable and contract assets is stated at the historical carrying amount net of write-offs and credit risk allowance. Beginning in 2020, the Group establishes a credit loss allowance based on expectations of lifetime credit losses based on historical default experience, known or inherit risks in the portfolio, current economic conditions and macroeconomics forecasts as well as other factors surrounding the credit risk of borrowers (Note 2(b)). Prior 2020, the credit loss allowance was determined to be the amount of probable incurred credit losses based on historical default experience and other factors surrounding the credit risk of the borrowers. The Group evaluates and adjusts its credit loss allowance on a quarterly basis or more often as necessary. Accounts receivable and contract assets that are delinquent for 180 days or more are generally written off. |
Investments | (m) Investments The Group has classified its investments into equity method investments and non-marketable The Group applies equity method in accounting for its investments in entities in which the Group has the ability to exercise significant influence but does not have control and the investments are in either common stock or in-substance Non-marketable non-marketable The following table sets forth the investments the Group holds as of December 31, 2020 and 2021, respectively. As of December 31, 2020 2021 Equity method investments 129,622 132,377 Non-marketable 820,893 838,740 950,515 971,117 Equity method investments For the years ended December 31, 2019, 2020 and 2021, the Group made investments in several private equity funds and accounted these investments as equity method investments as the Group has ability to significantly influence the operations or financial activities of the investees. For the years ended December 31, 2019, 2020 and 2021, the Group recognized an impairment loss of nill, nill and RMB5,000 for equity method investments, respectively. Non-marketable For the years ended December 31, 2019, 2020 and 2021, the Group made investments of less than 10% of equity interest in several non-listed non-marketable For the years ended December 31, 2019, 2020 and 2021, the Group recognized an impairment loss of nil, RMB33,600 and nil for non-marketable equity investments, respectively. |
Fair value measurement | (n) Fair value measurement 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. The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs that may be used to measure fair value include: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Observable, market-based inputs, other than quoted prices, in active markets for identical assets or liabilities. Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. The Group does not have any non-financial The Group’s financial instruments consist principally of cash and cash equivalents, restricted cash, short-term investments, quality assurance receivable, loans receivable, accounts receivable, payable to platform customers, quality assurance payable, deferred guarantee income, expected credit losses for quality assurance commitment, short-term borrowings and other liabilities. Short-term investments The short-term investments mainly consist of wealth management products and are measured at fair value. Other financial instruments The carrying amounts of financial instruments other than short-term investments, approximate their fair values due to the short-term maturities of these instruments. Assets and liabilities measured at fair value on a recurring basis The following table sets forth the Group’s assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy: December 31, 2020 Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Fair value RMB RMB RMB RMB Assets Short-term investments —wealth management products — 1,970,958 — 1,970,958 December 31, 2021 Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Fair value RMB RMB RMB RMB Assets Short-term investments —wealth management products — 1,204,901 — 1,204,901 The Group values its wealth management products held in certain banks using quoted rate of return or quoted subscription/redemption prices published by the banks for these products, and accordingly, the Group classifies such wealth management products as Level 2 within the fair value hierarchy based on the nature of the fair value inputs. Assets and liabilities measured at fair value on a non-recurring Non-marketable non-recurring non-marketable For the years ended December 31, 2019 2020 2021 Upward adjustments 3,149 — — Downward adjustments (including impairment) — (36,600 ) — Total unrealized gain (losses) 3,149 (36,600 ) — The following table sets forth the total carrying value of the Group’s non-marketable non-recurring As of December 31, 2020 2021 Initial cost basis 854,174 872,021 Upward adjustments 3,319 3,319 Downward adjustments (including impairment) (36,600 ) (36,600 ) Total carrying value at the end of the period 820,893 838,740 |
Net interest income | (o) Net interest income The Group, through consolidated trust plans (See Note 3), WOFEs and subsidiaries of VIEs, originate and hold loans. Interest on loans receivable is accrued based on the contractual interest rates of the loan as earned. Accrual of interest is generally discontinued when reasonable doubt exists as to the full, timely collection of interest or principal. When a loan is discontinued from interest accrual, the Group stops accruing interest and reverses all accrued but unpaid interest as of such date. As the primary beneficiary of the trusts, the Group incorporated the trust plans and recorded return of the other trust parties into interest expense. The interest expense is accrued based on the expected rate of return during the contractual term of the alternative investment products and the trusts. The net interest income recorded in the consolidated statement of comprehensive income related to the loans originated by the Group recorded for the years ended December 31, 2019, 2020 and 2021 are as follows: For the years ended December 31, 2019 2020 2021 RMB RMB RMB Interest income 1,342,289 1,341,657 1,290,016 Less: Interest expense (235,620 ) (228,320 ) (73,846 ) Net interest income 1,106,669 1,113,337 1,216,170 |
Property and equipment, net | (p) Property and equipment, net Property and equipment are stated at cost less accumulated depreciation and amortization. Property and equipment are depreciated over the estimated useful lives of the assets using the straight-line method taking into account the estimated residual value, if any. The following table sets forth the estimated useful life and residual value: Category Estimated useful life Residual value Office furniture and equipment 3- 5 5 % Computer and electronic equipment 3- 5 5 % Leasehold improvements shorter of remaining lease period or estimated useful life Nil Software 1- 5 Nil Expenditures for maintenance and repairs are expensed as incurred. Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation amortization are removed from the accounts and any resulting gain or loss is recognized in consolidated statement of comprehensive income. |
Intangible assets | (q) Intangible assets As of December 31, 2021, the intangible assets held by the Group includes micro-lending license, factoring license, financial leasing license and insurance brokerage license which have indefinite useful life. The Group evaluates these indefinite-lived intangible assets each reporting period to determine whether events and circumstances continue to support an indefinite useful life. If an intangible asset that is not being amortized is subsequently determined to have a finite useful life, the asset is tested for impairment. |
Goodwill | (r) Goodwill Goodwill represents the excess of the purchase consideration over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed of the acquired entity as a result of the Company’s acquisitions of interests in its subsidiaries and the consolidated VIEs. Goodwill is not amortized but is tested for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that it might be impaired. The Company first assesses qualitative factors to determine whether it is necessary to perform the two-step In performing the two-step On January 1, 2020, the Group adopted ASU No. 2017-04, |
Impairment of long-lived assets other than goodwill | (s) Impairment of long-lived assets other than goodwill The Group evaluates its long-lived assets other than goodwill and intangible assets with indefinite useful life for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability is measured by comparison of the carrying amounts to the expected future undiscounted cash flows attributable to these assets. If it is determined that an asset is not recoverable, an impairment loss is recorded in the amount by which the carrying amount of the assets exceeds the expected discounted cash flows arising from those assets. Impairment losses of long-lived assets related to intangible assets recognized for the years ended December 31, 2019, 2020 and 2021 were RMB4,600, nil and nil, respectively. |
Quality assurance obligations | (t) Quality assurance obligations For off-balance s In the past the Group used to provide quality assurance fund program to individual investors to compensate them in the event of borrowers’ default, which were terminated in 2019 due to regulation change. Quality assurance commitment and quality assurance fund are hereinafter collectively referred to as “quality assurance obligations”. Quality assurance payables Before adoption of ASC Topic 326, the quality assurance obligations are comprised of two components: (i) ASC Topic 460 component; and (ii) ASC Topic 450 component. In accordance with ASC 460-10-25-2 and ASC 460-10-30-3, the non-contingent and contingent aspect of the financial guarantee must both be considered at initial measurement. Each institutional funding partner or individual investor has a contract with the Group that specifies its ability to collect from either the Group or the quality assurance fund. Therefore, an individual contract is considered to be the unit of account for purposes of applying ASC Topic 460. Therefore, the liability recorded based on ASC Topic 460 is determined on a loan by loan basis and is reduced as the Group is released from the underlying risk, i.e., as the loan is repaid by the borrower or when the institutional funding partner or individual investor is compensated in the event of a default. This component is a stand ready obligation which is not subject to the probable threshold used to record a contingent obligation. The other component is a contingent liability determined based on historical default rates, representing the obligation to make future payouts from the Group itself or quality assurance fund, measured using the guidance in ASC Topic 450, Contingencies. The ASC Topic 450 contingent component is determined on a loan by loan basis, but considers the actual and expected performance of the pool when estimating the contingent liability. As each guarantee is a separate unit of account that has a contingent component pursuant to ASC Topic 450, the contingent component pertains only to the loan covered by the guarantee. However, the contingent liability recorded under ASC Topic 450 would take into consideration the performance of the overall pooled loan basis, including the cap, if any, imposed on the specific pool, as such data will inform the likelihood of payout on an individual contract basis. Subsequent to initial recognition, the quality assurances obligations are measured at the greater of the amount determined based on ASC Topic 460 and the amount determined based on ASC Topic 450. ASC Topic 460 does not prescribe a method for subsequently measuring and recording the non-contingent guarantee liability. As stated in ASC 460-10-35-1, the guarantee liability should generally be reduced by recording a credit to net income as the guarantor is released from the guaranteed risk. As the risk is reduced as each payment is made, a systematic and rational amortization method based on when the payments are made may be appropriate. If there is no difference between the ASC Topic 460 component and ASC Topic 450 component, no gain or loss is recorded. If the ASC Topic 460 component falls below the ASC 450 component, a contingent liability would be set up with an accompanying loss recognized in the gain (loss) from quality assurance in the consolidate statement of comprehensive income. As the risk of the guarantee liability is reduced, it is recognized into the income statement by a systematic and rational amortization method, e.g. over the term of the loan, within the “gain from the quality assurance” line item of the income statement. For the year ended December 31, 2019, the amount of gain recorded was RMB98.4 million. The following table sets forth the Group’s quality assurance obligations movement activities for the year ended December 31, 2019: For the year ended 2019 Opening balance 3,819,379 Fair value of newly written guarantee and quality assurance obligation 6,156,826 Release of guarantee and quality assurance payable upon repayment (6,718,809 ) Contingent liability 6,409,884 Payouts during the year (12,299,134 ) Recoveries during the year 7,408,007 Ending balance 4,776,153 As of December 31, 2019, the maximum potential future payments, including all outstanding principal and interests covered by the quality assurance program were RMB21,794,353. Deferred guarantee income and expected credit losses for quality assurance commitment Upon adoption of ASC Topic 326 as described in Note 2(b), deferred guarantee income represents the stand ready component of the guarantee contracts that are determined in accordance with ASC Topic 460. At initial recognition, deferred guarantee income is recorded at the fair value of the guarantee contract. Subsequent to initial recognition, deferred guarantee income is released systematically as guarantee income in revenue in the consolidated statement of comprehensive income as the Group is released from the underlying risk. Expected credit losses for quality assurance commitment represents the expected life time credit losses of the guarantee contract that are determined in accordance with ASC Topic 326, which are initially recorded separate from and in addition to deferred guarantee income at the amount equal to the expected lifetime credit losses of the underlying loans covered by the quality assurance obligation. The expected credit losses are determined based on historical default experience, known and inherent risks in the portfolio, current economic conditions and future macroeconomic forecasts as well as other factors surrounding the credit risk of borrowers. The liability is calculated at portfolio-level since the loan portfolio is typically of smaller balance homogenous loans and is collectively evaluated for impairment. Subsequent to initial recognition, the expected credit losses are adjusted for changes in expected lifetime credit losses. The initial recognition and adjustments made to expected credit losses for quality assurance commitment are recorded as provision for quality assurance commitment in the consolidated statement of comprehensive income. The table below sets forth the movement of deferred guarantee income and expected credit losses for quality assurance commitment for the years ended December 31, 2020 and 2021: Deferred guarantee income: For the years ended 2020 2021 Opening balance upon adoption of ASC Topic 326 (Note 2(b)) 1,873,254 1,259,396 Newly written quality assurance obligations 2,838,707 2,423,619 Release of quality assurance obligations upon repayment (3,386,032 ) (2,593,512 ) Termination of P2P quality assurance obligations* (66,533 ) — Ending balance 1,259,396 1,089,503 Expected credit losses for quality assurance commitment: For the years ended 2020 2021 Opening balance upon adoption of ASC Topic 326 (Note 2(b)) 3,593,021 2,390,501 Provision for credit losses of quality assurance obligations 2,057,558 1,904,473 Payouts during the year (8,297,516 ) (7,227,869 ) Recoveries during the year 5,199,893 6,121,456 Termination of P2P quality assurance obligations* (162,455 ) — Ending balance 2,390,501 3,188,561 * In March 2020, the Company early repaid all outstanding loan balance before their maturity for one P2P funding partner as a result of the Group’s decision to discontinue business relationship with online lending information intermediary, which resulted in decrease in guarantee related receivables and liabilities. The overall impact on gain or loss is immaterial. As of December 31, 2021, the maximum potential future payments, including all outstanding principal and interests covered by the quality assurance obligations were RMB44,035,267. Quality assurance receivable A quality assurance receivable is recognized at loan inception at its fair value on a loan-by-loan The following table presents the Group’s quality assurance receivable as of December 31, 2020 and 2021: For the years ended December 31, 2020 2021 Quality assurance receivable 1,345,068 1,171,304 Allowance for credit losses for quality assurance receivable (223,514 ) (239,506 ) Quality assurance receivable, net 1,121,554 931,798 The Group evaluates expected credit losses of quality assurance receivable by on a collective basis based on the type of borrowers and delinquency pattern. Credit quality indicators are updated quarterly, and the credit quality of any given customer can change during the life of the portfolio. The following table presents quality assurance receivables based on type of borrowers and delinquency as of December 31, 2020 and 2021: 1-89 days past due 90-119 days past due 120-149 days past due 150-179 days past due Total past due Current Total quality assurance receivable December 31, 2020 New borrowers 26,708 5,651 5,312 5,407 43,078 191,155 234,233 Repeat borrowers 70,819 25,745 22,647 15,388 134,599 976,236 1,110,835 Total 97,527 31,396 27,959 20,795 177,677 1,167,391 1,345,068 December 31, 2021 New borrowers 9,094 2,340 2,004 1,931 15,369 269,919 285,288 Repeat borrowers 27,695 6,771 5,935 5,616 46,017 839,999 886,016 Total 36,789 9,111 7,939 7,547 61,386 1,109,918 1,171,304 As the average tenor of loans facilitated on the Group’s platform are around 9 months, substantially all of the quality assurance receivable balance as of December 31, 2021 are originated in 2021. The following table sets forth the movement in the allowance for credit losses for quality assurance receivable as of December 31, 2020 and 2021, respectively: For the years ended December 31, 2020 2021 Beginning balance 809,503 223,514 Impact of adoption of ASC 326 (Note 2(b)) 34,998 — Provision/(reversal) for credit losses (49,590 ) 59,136 Write-offs (571,397 ) (43,144 ) Ending balance 223,514 239,506 |
Revenue recognition | (u) Revenue recognition The Group engages primarily in operating an online consumer finance marketplace by providing an online platform which matches borrowers with institutional funding partners, and assisting facilitation of loans to investors on certain third-party online platforms (collectively referred to as “investors”). The Group determines that it is not the legal lender or legal borrower in the above process. Therefore, the Group generally does not record loan receivable and payable arising from the loans between investors and borrowers on its balance sheets other than consolidated trusts (Note 3). Revenue comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the Group’s activities and is recorded net of value-added tax (“VAT”). The Group discontinue matching of individual investors in 2019 due to change in regulations. Revenue recognition policies for each type of services under ASC Topic 606 are discussed as follows: Revenue from Single Loans In accordance with a series contracts entered into among the borrowers, investors (either individual or institutional funding partners) and the Group, the Group generally provides the following services to the borrowers and investors: • The Group operates a platform that enables borrowers and investors to exchange information; • The Group collects information from borrowers, conduct credit assessment and match borrowers with investors; • Once borrowers and investors are matched, the Group is responsible for collect and transfer funds between borrowers and investors; • The Group will also provide investors with collection services upon borrowers’ default; • On monthly basis, the borrowers are obligated to pay transaction service fee and quality assurance contribution/guarantee fee on top of the principle and interest payment. In the event of prepayment, borrowers are obligated to pay the outstanding unpaid transaction service fee and quality assurance contribution in full. Starting from 2021, in the event of early payment, some borrowers are not obligated to pay full contractual service fee and quality assurance contribution amount, and the service fee and quality assurance contribution is collected on a pro-rata basis upon early loan termination. The Group determines its customers to be both investors and borrowers. The Group charges the transaction service fee as part of the borrowers’ monthly repayment. In accordance with the relevant guidance in ASC Topic 606, the amounts associated with the quality assurance obligation is within the scope of ASC Topic 460 and should be accounted for in accordance with the provisions of that Topic. The services not within the scope of other Topics should be accounted for in accordance with the remaining provisions of ASC Topic 606 and the applicable revenue recognition guidance. The Group considers loan facilitation services (covering matching of investors to borrowers and facilitating the execution of loan agreement between investors and borrowers) and post-facilitation services (covering cash processing services and collection services) as two distinctive performance obligations in accordance with ASC Topic 606. The transaction price is first allocated to the quality assurance commitment and quality assurance program, if any, which is recorded at fair value in accordance with ASC Topic 460. Then the remaining considerations are allocated to the loan facilitation and post-facilitation services using their relative standalone selling prices. When estimating total consideration, the Group considers early termination scenarios based on historical early payment and other termination scenarios as the Group can not receive the full contractual service fee amount under early termination, given the service fee is collected on a pro-rata basis upon early loan termination. Such service fee is determined to be variable consideration that meets the “probable of not reversing” threshold. As such, the Group recognizes revenue related to early termination based on its best estimate and true up adjustments are made from time to time. The Group does not have observable standalone selling price for the loan facilitation services or post-facilitation services because it does not provide loan facilitation services or post-facilitation services on a standalone basis in similar circumstances to similar customers. 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 estimation of standalone selling price involves significant judgment. The Group uses an expected cost plus margin approach to estimate the standalone selling prices of loan facilitation services and post facilitation services as the basis of revenue allocation. When estimating the selling prices, the Group considers the cost related to such services, profit margin, customer demand, effect of competition on services, and other market factors, among which estimates of the cost of providing the services is the most significant. The transaction price allocated to loan facilitation is recognized as revenue upon execution of loan agreements between investors and borrowers; the consideration allocated to post-facilitation services is recognized over the period of the loan on a straight line method, which approximates the pattern of when the underlying services are performed. In additional to transaction service fee, the Group also receives fees on future events, such as collection fees. For loans with quality assurance obligation, as the quality assurance will compensate the investors should the borrowers are delinquent, the collection fee is considered a variable consideration for the loan facilitation and post-facilitation performance obligations and therefore is included in the total transaction price which is allocated to these two performance obligation based on their relative standalone selling price. The collection fee is only probable of not reserving upon successful collection and as such is not included in the transaction price until then. For the off-balance sheet loans funded by certain other institutional funding partners, where the Group does not provide credit enhancement to the institutional funding partners for the borrowers referred by the Group and takes no credit risks of borrowers in respect of principal and interests, the Group charges the service fees for loan facilitation at predetermined rates based on the performance of the underlying off-balance sheet loans. Such service fee is determined to be variable consideration that meets the “probable of not reversing” threshold. As such, the Group recognizes revenue related to such services based on its best estimate and true up adjustments are made when service fee amounts are confirmed by institutional funding partners. Revenue from Investment Programs For investment programs that only fund loans protected by the quality assurance, the loan transaction service fees and monthly contribution to the quality assurance paid by the borrowers are the same as those discussed under “Revenue from Single Loans” above. In addition, the Group charges the surplus gain, i.e., the actual rate of return exceeds the stated expected rate of return in the investment program agreement, as investment program management fee. The investment program management fee is a separate fee charged to investors in a separate contract and therefore is allocate specifically to the investment management performance obligation. The Group determines that the “probable of not reserving” threshold is met for surplus gain and therefore surplus gain is included in the transaction price upon the effective of investment program. The Group estimates the surplus gain on a monthly basis for the duration of an investment program to monitor the expected outcome of the portfolio and the amount is recognized over the term of the investment program as the investor simultaneously receives and consumes the benefits provided by the Company’s performance throughout the term of the investment program. The Group stopped offering investment program in 2019 as a result of regulatory requirements to stop P2P business and all investment programs matured in 2020. Other revenue Other than the investment management fee for investment programs, other revenue primarily includes borrower referral fees. The Group refers borrowers that do not meet the Group’s risk appetite to other lending platforms, and charges a referral fee based on the loan origination volume, cost per-click Revenue disaggregation analysis The following table sets forth the Group’s operating revenue from different service types: For the years ended December 31, 2019 2020 2021 With quality assurance obligation Without quality assurance With quality assurance Without quality assurance obligation With quality assurance obligation Without quality assurance obligation Loan facilitation service fees 2,984,063 326,812 1,908,851 — 3,604,019 190,163 Post-facilitation service fees 1,096,660 103,713 672,981 — 1,287,760 21,805 Other revenue -borrowers referral fee — 130,677 — 290,337 — 239,070 -investment management fee 109,423 — 31,767 — — — -others 37,949 66,791 95,286 64,496 105,758 211,871 4,228,095 627,993 2,708,885 354,833 4,997,537 662,909 Interest income (Note (o)) and guarantee income (Note (t)) is not included in the table above as it is not accounted for under ASC Topic . Contract balances Contract assets represent the Group’s right to consideration in exchange for facilitation and post-facilitation service that the Company has transferred to the customer before payment is due. Contract liabilities represent the Group’s obligation to transfer facilitation and post-facilitation service to the customer due to received payment. The timing of revenue recognition, scheduled payments, and cash collections results in contract assets and contract liabilities. Practical expedient and exemptions The Group generally expenses sales commission when incurred for loans with a term for one year or less. These costs are recorded within sales and marketing expenses. The Group does not disclose the value of unsatisfied performance obligation as most of the loans facilitated through its platform with an original term of one year or less. |
Origination, servicing expenses and other cost of revenue | (v) Origination, servicing expenses and other cost of revenue Origination, servicing expenses and other cost of revenue primarily consist of salaries and benefits of employees who facilitate loan origination, perform risk pricing, debt-collection service, customer service, data processing, data analysis and other cost of revenue. Origination, servicing expenses and other cost of revenue-related party consist of expenses for data collection service provided by PPcredit, a related party of the Group (See Note 10). |
Sales and marketing expenses | (w) Sales and marketing expenses Sales and marketing expenses consist primarily of advertising and online marketing promotion expenses. Advertising and online marketing expenses, amounting to approximately RMB710,203, RMB470,243 and RMB1,569,167 for the years ended December 31, 2019, 2020 and 2021, respectively, are charged to the consolidated statements of comprehensive income as incurred. |
General and administrative expenses | (x) General and administrative expenses General and administrative expenses consist primarily of salaries and benefits for general management, finance and administrative personnel, share-based compensation expenses, rental, professional service fees and other expenses. |
Research and development expenses | (y) Research and development expenses Research and development expenses consist primarily of payroll and related expenses for IT professionals involved in developing technology platform and website, server and other equipment depreciation, bandwidth and data center costs. All research and development costs have been expensed as incurred as the costs qualifying for capitalization have been insignificant. |
Share-based compensation | (z) Share-based compensation The Group follows ASC Topic 718, which requires all share-based payments to employees and directors, including grants of employee stock options, to be recognized as compensation expense in the financial statements over the vesting period of the award based on the fair value of the award determined at the grant date. Under ASC Topic 718, the number of share-based awards for which the service is not expected to be rendered for the requisite period should be estimated, and the related compensation cost is not recorded for that number of awards. In accordance with ASC Topic 718, the Group recognize share-based compensation expenses, net of a forfeiture rate, using the straight-line method for awards with services conditions only, and using the graded-vesting attribution method for awards with graded vesting features and performance conditions. Compensation cost is accrued if it is probable that a performance condition will be achieved. |
Leases | (aa) Leases The Group determines if an arrangement is a lease or contains a lease at inception. Operating leases are included in operating lease right-of-use ROU assets represent the Group’s right to use an underlying asset for the lease term and lease liabilities represent the Group’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. When determining the lease term, the Group includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option, if any. As the Group’s leases do not provide an implicit rate, the Group uses its incremental borrowing rate, which it calculates based on the credit quality of the Group and by comparing interest rates available in the market for similar borrowings, and adjusting this amount based on the impact of collateral over the term of each lease. The Group has elected to adopt the following lease practical expedients in conjunction with the adoption of ASU 2016-02: non-lease non-lease |
Government grants and subsidy income | (ab) Government grants and 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 other income in the consolidated statement of comprehensive income in the period the cash is received. The government grants received by the Group amounting to RMB62,517, RMB74,104 and RMB30,596 for the years ended December 31, 2019, 2020 and 2021, respectively. |
Taxation | (ac) Taxation Current income taxes are provided on the basis of net income for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred income taxes are recognized for temporary differences between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements, net operating loss carry forwards and credits. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided in accordance with the laws of the relevant taxing authorities. Deferred tax assets and liabilities are measured using enacted rates expected to apply to taxable income in which temporary differences are expected to be received or settled. The effect on deferred tax assets and liabilities of changes in tax rates is recognized in the statement of comprehensive income in the period of the enactment of the change. The Group considers positive and negative evidence when determining whether a portion or all of its deferred tax assets will more likely than not be realized. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of statutory carry-forward periods, its experience with tax attributes expiring unused, and its tax planning strategies. The ultimate realization of deferred tax assets is dependent upon its ability to generate sufficient future taxable income within the carry-forward periods provided for in the tax law and during the periods in which the temporary differences become deductible. When assessing the realization of deferred tax assets, the Group has considered possible sources of taxable income including (i) future reversals of existing taxable temporary differences, (ii) future taxable income exclusive of reversing temporary differences and carry-forwards, (iii) future taxable income arising from implementing tax planning strategies, and (iv) specific known trend of profits expected to be reflected within the industry. The Group recognizes a tax benefit associated with an uncertain tax position when, in its judgment, it is more likely than not that the position will be sustained upon examination by a taxing authority. For a tax position that meets the more-likely-than-not |
Net profit per share | (ad) Net profit per share Basic net profit per share is computed by dividing net profit attributable to FinVolution Group’s ordinary shareholders by the weighted average number of ordinary shares outstanding during the period using the two-class two-class if-converted |
Segment reporting | (ae) Segment reporting The Group’s chief operating decision maker, the Chief Executive Officer, reviews the consolidated results when making decisions about allocating resources and assessing performance of the Group as a whole and therefore, the Group only has one reportable segment. The Group does not distinguish between markets or segments for the purpose of internal reporting. The Group’s long-lived assets are substantially all located in the PRC and substantially all of the Group’s revenues are derived from within the PRC. Therefore, no geographical segments are presented. |
Treasury shares | (af) Treasury shares The Group accounts for treasury shares using the cost method. Under this method, the cost incurred to purchase the shares is recorded in the treasury shares account in the consolidated balance sheets. At retirement, the ordinary shares account is charged only for the aggregate par value of the shares. The excess of the acquisition cost of treasury shares over the aggregate par value is allocated between additional paid-in paid-in paid-in first-in, first-out |
Statutory reserves | (ag) Statutory reserves In accordance with the relevant regulations and their articles of association, subsidiaries of the Company incorporated in the PRC are required to allocate at least 10% of their after-tax |
Recently issued accounting standards | (ah) Recently issued accounting standards Adoption of new accounting standards In June 2016, the FASB amended guidance related to impairment of financial instruments as part of ASU 2016-13 2018-19): 2016-13. In January 2017, the FASB issued ASU 2017-04, In August 2018, the FASB issued ASU 2018-13, 2018-13 In December 2019, the FASB issued ASU 2019-12—Income 2019-12 2019-12 New accounting standards not yet adopted In May 2021, the FASB issued ASU No. 2021-04, Earnings Per Share (Topic 260), Debt — Modifications and Extinguishments (Subtopic 470-50), Compensation — Stock Compensation (Topic 718), and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) to clarify and reduce diversity in an issuer’s accounting for modifications or exchanges of freestanding equity classified written call options (for example, warrants) that remain equity classified after modification or exchange. The amendments in this update are effective for all entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption of the amendments is permitted. The adoption of this standard is not expected to have a material impact on the Group’s disclosures. In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. This update requires certain annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. This update is effective for annual periods beginning after December 15, 2021, and early application is permitted. The adoption of this standard is not expected to have a material impact on the Group’s disclosures. In March 2022, the FASB issued ASU 2022-02, Financial Instruments-Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures. This update eliminates the accounting guidance for troubled debt restructurings (TDRs) for creditors, requires new disclosures for creditors for certain loan refinancings and restructurings when a borrower is experiencing financial difficulty and requires inclusion of current-period gross writeoffs in the vintage disclosure tables. The adoption of this standard is not expected to have a material impact on the Group’s disclosures. |
Principal activities and orga_2
Principal activities and organization (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Principal Subsidiaries and Consolidated VIEs' | As of December 31, 2021, the Company’s principal subsidiaries and consolidated VIEs are as follows: Name Percentage of direct or indirect economic Date of incorporation Place of Subsidiaries FinVolution (HK) Limited (“FinVolution HK”) 100% June 12, 2012 Hong Kong, China Beijing Prosper Investment Consulting Co., Ltd. (“Beijing Prosper”) 100% August 21, 2012 Beijing, China Shanghai Guangjian Information Technology Co., Ltd. (“Shanghai Guangjian”) 100% June 5, 2017 Shanghai, China Shanghai Shanghu Information Technology Co., Ltd. (“Shanghai Shanghu”) Shanghai Manyin Information Technology Co., Ltd. (“Shanghai Manyin”) 100% February 12, 2018 Shanghai, China Hainan Shanghu Information Technology Co., Ltd. (“Hainan Shanghu”) 100% August 1, 2018 Hainan, China Consolidated VIEs Beijing Paipairongxin Investment Consulting Co., Ltd. (“Beijing Paipairongxin”) 100 %* June 15, 2012 Beijing, China Shanghai Zihe Information Technology Co., Ltd. (“Shanghai Zihe”) 100 %* July 6, 2017 Shanghai, China Shanghai Nianqiao Technology Co., Ltd. (“Shanghai Nianqiao”) 100 %* August 8, 2018 Shanghai, China Shanghai Ledao Technology Co., Ltd. (“Shanghai Ledao”) 100 %* January 10, 2019 Shanghai, China Chengdu Yougao Information Technology Co., Ltd. (“Chengdu Yougao”) 100 %* December 26, 2019 Chengdu, China Consolidated VIEs’ principal subsidiaries Shanghai PPDai Financial Information Services Co., Ltd. (“Shanghai PPDai”) 100 %* January 18, 2011 Shanghai, China Shanghai Erxu Information Technology Co., Ltd. (“Shanghai Erxu”) 100 %* April 28, 2018 Shanghai, China Fujian Zhiyun Financing Guarantee Co., Ltd. (“Fujian Zhiyun”) 100 %* November 21, 2019 Fujian, China * Controlled via contractual relationships |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of Investments | The following table sets forth the investments the Group holds as of December 31, 2020 and 2021, respectively. As of December 31, 2020 2021 Equity method investments 129,622 132,377 Non-marketable 820,893 838,740 950,515 971,117 |
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table sets forth the Group’s assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy: December 31, 2020 Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Fair value RMB RMB RMB RMB Assets Short-term investments —wealth management products — 1,970,958 — 1,970,958 December 31, 2021 Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Fair value RMB RMB RMB RMB Assets Short-term investments —wealth management products — 1,204,901 — 1,204,901 |
Summary of Equity Securities without Readily Determinable Fair Value | The following table sets forth the unrealized gains and losses from remeasurement (referred to as upward or downward adjustments) recorded as adjustments to the carrying value of non-marketable For the years ended December 31, 2019 2020 2021 Upward adjustments 3,149 — — Downward adjustments (including impairment) — (36,600 ) — Total unrealized gain (losses) 3,149 (36,600 ) — The following table sets forth the total carrying value of the Group’s non-marketable non-recurring As of December 31, 2020 2021 Initial cost basis 854,174 872,021 Upward adjustments 3,319 3,319 Downward adjustments (including impairment) (36,600 ) (36,600 ) Total carrying value at the end of the period 820,893 838,740 |
Schedule of Interest Income, Interest Expense and Loan Provision Losses Related to Loans | The net interest income recorded in the consolidated statement of comprehensive income related to the loans originated by the Group recorded for the years ended December 31, 2019, 2020 and 2021 are as follows: For the years ended December 31, 2019 2020 2021 RMB RMB RMB Interest income 1,342,289 1,341,657 1,290,016 Less: Interest expense (235,620 ) (228,320 ) (73,846 ) Net interest income 1,106,669 1,113,337 1,216,170 |
Schedule of Estimated Useful Life and Residual Value of Property and Equipment, Net | The following table sets forth the estimated useful life and residual value: Category Estimated useful life Residual value Office furniture and equipment 3- 5 5 % Computer and electronic equipment 3- 5 5 % Leasehold improvements shorter of remaining lease period or estimated useful life Nil Software 1- 5 Nil |
Schedule of Guarantee and Quality Assurance Fund Obligations Movement Activities | The following table sets forth the Group’s quality assurance obligations movement activities for the year ended December 31, 2019: For the year ended 2019 Opening balance 3,819,379 Fair value of newly written guarantee and quality assurance obligation 6,156,826 Release of guarantee and quality assurance payable upon repayment (6,718,809 ) Contingent liability 6,409,884 Payouts during the year (12,299,134 ) Recoveries during the year 7,408,007 Ending balance 4,776,153 |
Disaggregation of Revenue | The following table sets forth the Group’s operating revenue from different service types: For the years ended December 31, 2019 2020 2021 With quality assurance obligation Without quality assurance With quality assurance Without quality assurance obligation With quality assurance obligation Without quality assurance obligation Loan facilitation service fees 2,984,063 326,812 1,908,851 — 3,604,019 190,163 Post-facilitation service fees 1,096,660 103,713 672,981 — 1,287,760 21,805 Other revenue -borrowers referral fee — 130,677 — 290,337 — 239,070 -investment management fee 109,423 — 31,767 — — — -others 37,949 66,791 95,286 64,496 105,758 211,871 4,228,095 627,993 2,708,885 354,833 4,997,537 662,909 |
Schedule Of Movement Of Deferred Guarantee Income | Deferred guarantee income: For the years ended 2020 2021 Opening balance upon adoption of ASC Topic 326 (Note 2(b)) 1,873,254 1,259,396 Newly written quality assurance obligations 2,838,707 2,423,619 Release of quality assurance obligations upon repayment (3,386,032 ) (2,593,512 ) Termination of P2P quality assurance obligations* (66,533 ) — Ending balance 1,259,396 1,089,503 |
Schedule Of Expected Credit Losses For Quality Assurance Commitment | Expected credit losses for quality assurance commitment: For the years ended 2020 2021 Opening balance upon adoption of ASC Topic 326 (Note 2(b)) 3,593,021 2,390,501 Provision for credit losses of quality assurance obligations 2,057,558 1,904,473 Payouts during the year (8,297,516 ) (7,227,869 ) Recoveries during the year 5,199,893 6,121,456 Termination of P2P quality assurance obligations* (162,455 ) — Ending balance 2,390,501 3,188,561 |
Schedule Of Quality Assurance Obligation And Receivables | The following table presents the Group’s quality assurance receivable as of December 31, 2020 and 2021: For the years ended December 31, 2020 2021 Quality assurance receivable 1,345,068 1,171,304 Allowance for credit losses for quality assurance receivable (223,514 ) (239,506 ) Quality assurance receivable, net 1,121,554 931,798 |
Summary of Aging of Past Due Quality Assurance Receivable | The following table presents quality assurance receivables based on type of borrowers and delinquency as of December 31, 2020 and 2021: 1-89 days past due 90-119 days past due 120-149 days past due 150-179 days past due Total past due Current Total quality assurance receivable December 31, 2020 New borrowers 26,708 5,651 5,312 5,407 43,078 191,155 234,233 Repeat borrowers 70,819 25,745 22,647 15,388 134,599 976,236 1,110,835 Total 97,527 31,396 27,959 20,795 177,677 1,167,391 1,345,068 December 31, 2021 New borrowers 9,094 2,340 2,004 1,931 15,369 269,919 285,288 Repeat borrowers 27,695 6,771 5,935 5,616 46,017 839,999 886,016 Total 36,789 9,111 7,939 7,547 61,386 1,109,918 1,171,304 |
Schedule of Information about movement of quality assurance Receivable | The following table sets forth the movement in the allowance for credit losses for quality assurance receivable as of December 31, 2020 and 2021, respectively: For the years ended December 31, 2020 2021 Beginning balance 809,503 223,514 Impact of adoption of ASC 326 (Note 2(b)) 34,998 — Provision/(reversal) for credit losses (49,590 ) 59,136 Write-offs (571,397 ) (43,144 ) Ending balance 223,514 239,506 |
Beijing Paipairongxin Investment Consulting Co., Ltd [Member] | |
Summary of Financial Information of VIE and its Subsidiaries | The following table sets forth the assets, liabilities, results of operations and cash flows of the VIEs and their subsidiaries (including the consolidated trusts), which are included in the Group’s consolidated financial statements. Transactions between the VIEs (including the consolidated trusts) and their subsidiaries are eliminated in the balances presented below: As of December 31, 2020 2021 RMB RMB Cash and cash equivalents 1,660,549 2,176,581 Restricted cash 3,176,799 3,691,832 Short-term investments 1,970,958 1,173,523 Accounts receivable and contract assets 685,556 1,805,079 Quality assurance receivable 1,121,554 931,798 Property, equipment and software, net 67,010 43,241 Intangible assets 35,187 35,187 Right of use assets 54,385 48,941 Loans and receivables, net of credit loss allowance for loans receivables 2,107,837 1,696,495 Investments 888,081 820,607 Investment in subsidiaries and VIEs 48,147 70,578 Deferred tax assets 149,511 343,494 Amounts due from Group companies — 2,200,275 Prepaid expenses and other assets 1,002,863 1,672,654 Total assets 12,968,437 16,710,285 Payable to platform customers 103,453 81,150 Deferred guarantee income 1,259,396 1,089,503 Expected credit losses for quality assurance commitment 2,390,501 3,188,561 Payroll and welfare payable 132,955 146,697 Taxes payable 53,552 57,237 Funds payable to investors of consolidated trusts 1,661,841 1,795,640 Contract liabilities — 6,826 Deferred tax liabilities 67,217 45,656 Leasing liabilities 42,775 33,184 Amounts due to Group companies 2,151,941 4,005,052 Amounts due to related party 1,984 2,265 Accrued expenses and other liabilities 472,446 598,570 Total liabilities 8,338,061 11,050,341 For the years ended December 31, 2019 2020 2021 RMB RMB RMB Third-party revenues 5,742,868 6,993,099 8,333,978 Inter-company revenues 27,033 159,319 796,071 Net revenues 5,769,901 7,152,418 9,130,049 Third-party expenses (2,213,442 ) (2,000,511 ) (3,441,504 ) Inter-company expenses (1,837,121 ) (1,129,163 ) (2,545,816 ) Related party expenses (43,494 ) (10,104 ) (7,503 ) Provision for accounts receivable and contract assets (258,071 ) (116,387 ) (134,938 ) Provision for loans receivable (257,263 ) (302,243 ) 32,317 Credit losses for quality assurance commitment — (2,007,968 ) (1,963,609 ) Total Operating expenses (4,609,391 ) (5,566,376 ) (8,061,053 ) Loss from subsidiaries and VIEs (1,128 ) (2,372 ) (448 ) Income from operations 1,159,382 1,583,670 1,068,548 Other income, net 32,435 100,830 93,674 Gain from quality assurance 98,405 — — Realized gain from financial guarantee derivatives 31,444 — — Fair value change of financial guarantee derivatives (56,287 ) — — Profit before income tax expense 1,265,379 1,684,500 1,162,222 Income tax expenses (268,504 ) (319,700 ) (144,463 ) Net profit 996,875 1,364,800 1,017,759 For the years ended December 31, 2019 2020 2021 RMB RMB RMB Cash used in operating activities under service agreements for Inter-company (239,476 ) (2,143,205 ) (2,313,224 ) Cash provided by operating activities under service agreements for Inter-company 26,225 137,624 534,988 Net cash provided by operating activities for Third-party 209,889 2,415,649 1,412,435 Net cash provided by (used in) operating activities (3,362 ) 410,068 (365,801 ) Capital contribution to Group companies — — (22,432 ) Collection of loans from Group companies — — 389,043 Cash paid as loans extended to Group companies — — (2,328,235 ) Other investing activities (981,638 ) 1,268,657 1,668,517 Net cash provided by (used in) investing activities (981,638 ) 1,268,657 (293,107 ) Repayment of loans to Group companies — — (164,719 ) Cash received as loans from Group companies 31,920 — 1,785,238 Other financing activities 2,000,911 (2,286,962 ) 69,454 Net cash provided by (used in) financing activities 2,032,831 (2,286,962 ) 1,689,973 |
Loans receivable, net (Tables)
Loans receivable, net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounts Receivable and Related Allowance for Doubtful Accounts | Loans receivable originated and retained by the Group consist of the following: As of December 31, 2020 2021 RMB RMB Loans 2,736,894 2,410,149 Credit loss allowance for loans receivable (382,012 ) (427,873 ) Loans receivable, net 2,354,882 1,982,276 |
Schedule of Allowance for Loan Losses | The following table sets forth the activity in the allowance for loan losses for the years ended December 31, 2019, 2020 and 2021. For the years ended December 31, 2019 2020 2021 RMB RMB RMB Beginning balance 74,381 316,124 382,012 Impact of adoption of ASC 326 (Note 2(b)) — 303,291 — Provision for loans receivable 299,504 463,175 374,243 Current period write off (57,761 ) (700,578 ) (328,382 ) Ending balance 316,124 382,012 427,873 |
Schedule of Aging of Loans | The following table presents loans receivables based on type of borrowers and delinquency as of December 31, 2020 and December 31, 2021: 1-89 past due 90-119 days past due 120-149 days past due 150-179 days past due Total past due Current Total loans receivable December 31, 2020 New borrowers 19,443 5,564 5,359 4,667 35,033 231,001 266,034 Repeat borrowers 101,880 28,994 27,251 27,449 185,574 2,285,286 2,470,860 Total 121,323 34,558 32,610 32,116 220,607 2,516,287 2,736,894 December 31, 2021 New borrowers 31,036 8,658 9,771 7,181 56,646 251,554 308,200 Repeat borrowers 93,254 25,998 26,061 21,617 166,930 1,935,019 2,101,949 Total 124,290 34,656 35,832 28,798 223,576 2,186,573 2,410,149 |
Prepaid expenses and other as_2
Prepaid expenses and other assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Receivables, Prepayments and Other Assets | Receivables, prepayments and other assets consist of the following: As of December 31, 2020 2021 RMB RMB Security deposits and other deposits 1 965,117 1,666,713 Deductible value-added taxes 20,292 105,002 Prepaid online marketing expenses 15,956 33,709 Advances 10,455 15,715 Others 38,189 78,299 1,050,009 1,899,438 1 Security deposits and other deposits primarily includes security deposits and rental deposits. Security deposits were set aside as requested by certain institutional funding partners, held in deposit accounts with the institutional funding partners. As of December 31, 2020 and 2021, security deposits set aside by the Group amounted to RMB953,856 and RMB1,654,989, respectively. |
Property, equipment and softw_2
Property, equipment and software, net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Equipment and Software, Net | Property, equipment and software, net consist of the following: As of December 31, 2020 2021 RMB RMB Computer and electronic equipment 173,653 231,196 Office furniture and equipment 17,136 22,279 Leasehold improvement 47,324 39,266 Software 45,582 46,752 Total 283,695 339,493 Less: Accumulated depreciation and amortization 1 (189,819 ) (227,096 ) Property, equipment and software, net 93,876 112,397 1 Depreciation and amortization expenses for the years ended December 31, 2019, 2020 and 2021 was RMB57,712, RMB51,780 and RMB37,277 respectively. |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets consist of the following: As of December 31, 2020 2021 RMB RMB Micro-Lending License 63,760 63,760 Factoring License 265 265 Financial Leasing License 255 255 Insurance Brokerage License 1 34,667 34,667 Total 98,947 98,947 Less: Accumulated amortization and impairment — — Intangible assets 98,947 98,947 1 The Group acquired an insurance brokeage company in 2020. The acquisitions met the “single or similar asset threshold” and are not considered as business combination in accordance with ASC Topic 805 but asset acquisition. |
Accounts receivable and contr_2
Accounts receivable and contract assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text Block [Abstract] | |
Schedule of accounts receivable and contract assets | The following table presents the accounts receivable and contract assets as of December 31, 2020 and 2021: As of December 31, 2020 2021 RMB RMB Accounts receivable and contract assets 1,052,631 2,141,542 Credit loss allowance for accounts receivable and contract assets (188,725 ) (250,696 ) Accounts receivable and contract assets, net 863,906 1,890,846 |
Schedule of aging of past-due accounts receivable and contract assets | The following table presents accounts receivable and contract assets based on type of borrowers and delinquency as of December 31, 2020 and 2021: 1-89 days past due 90-119 days past due 120-149 days past due 150-179 days past due Total past Current Total accounts receivable and December 31, 2020 New borrowers 6,781 1,672 1,587 1,870 11,910 117,030 128,940 Repeat borrowers 20,105 5,942 5,356 5,458 36,861 756,322 793,183 Other — — — — — 130,508 130,508 Total 26,886 7,614 6,943 7,328 48,771 1,003,860 1,052,631 December 31, 2021 New borrowers 16,964 3,626 2,863 2,491 25,944 451,127 477,071 Repeat borrowers 50,589 10,409 8,207 6,811 76,016 1,365,710 1,441,726 Other — — — — — 222,745 222,745 Total 67,553 14,035 11,070 9,302 101,960 2,039,582 2,141,542 |
Schedule of Movement of Provision for Accounts Receivable and Contract Assets | The following table sets forth the movement of credit loss allowance for accounts receivable and contract assets as of December 31, 2020 and 2021, respectively: For the years ended December 31, 2019 2020 2021 RMB RMB Beginning balance 50,544 145,699 188,725 Impact of adoption of ASC 326 (Note 2(b)) — 142,077 — Provision for accounts receivable and contract assets 261,882 124,661 139,226 Current period write-off (166,727 ) (223,712 ) (77,255 ) Ending balance 145,699 188,725 250,696 |
Accrued expenses and other li_2
Accrued expenses and other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consist of the following: As of December 31, 2020 2021 RMB RMB Funds payable to institutional funding partners * 225,031 326,914 Accrued marketing expense 134,743 133,399 Accrued collection service fee 36,943 41,654 Accrued technical services expense 16,930 25,988 Accrued payment channel expenses 13,212 21,055 Accrued professional service fee 25,503 25,074 Others 56,640 64,748 509,002 638,832 * The balance of payable mainly includes funds received from borrowers but not yet transferred to the institutional funding partners due to the settlement time lag. |
Related party balances and tr_2
Related party balances and transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Summary of Amount Incurred by the Group | Amounts incurred by the Group For the years ended December 31, 2019 2020 2021 RMB RMB RMB Data collection service expense (i) 43,494 10,104 7,503 (i) PPcredit Data Service (Shanghai) Co., Ltd. (“PPcredit”) was founded in April 2016 by the founders of the Group to provide data collection services. The Group mainly uses PPcredit as a data provider since PPcredit was established. The price for the service is determined based on the price charged by other market participants. |
Summary of Amounts Due to Related Parties | Amounts due to related parties As of December 31, 2020 2021 RMB RMB PPcredit 1,984 2,265 |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Current and Deferred Portions of Income Tax Expenses | The current and deferred portions of income tax expenses included in the consolidated statements of comprehensive income during the years ended December 31, 2019, 2020 and 2021 are as follows: For the years ended December 31, 2019 2020 2021 RMB RMB RMB Current income tax expenses 390,080 298,096 503,139 Deferred income tax expense 91,882 157,325 (262,321 ) Total 481,962 455,421 240,818 |
Summary of Reconciliation Between the Computed Expected Tax Expenses (Benefit) Rate and the Effective Income Tax Rate | The following table sets forth reconciliation between the computed expected tax expenses (benefit) rate and the effective income tax rate: For the years ended December 31, 2019 2020 2021 RMB RMB RMB Statutory tax rate 25 % 25 % 25 % Research and development tax credit (3 )% (2 )% (3 )% Effect of tax holiday* (7 )% (7 )% (17 )% Change in valuation allowance 1 % 1 % 1 % Non-deductible 1 % 1 % 1 % Withholding tax — 1 % 2 % Effective income tax rate 17 % 19 % 9 % |
Summary of Aggregate Amount and Per Share Effect of Tax Holidays | The aggregate amount and per share effect of the tax holidays are as follows For the years ended December 31, 2019 2020 2021 RMB RMB RMB Tax holiday effect 202,923 168,677 471,798 Net profit per share effect - Basic 0.13 0.11 0.33 - Diluted 0.13 0.11 0.32 |
Significant Components of Deferred Tax Assets | The following table sets forth the significant components of the deferred tax assets: As of December 31, 2020 2021 RMB RMB Deferred tax assets: Timing difference in revenue recognition — 244,215 Provision for accounts receivable and contract assets and loans receivable 77,578 168,398 Net accumulated losses-carry forward 69,454 117,850 Payroll and welfare payable and other temporary difference 5,831 12,379 Quality assurance obligations 45,128 2,016 Less: Valuation allowance (42,233 ) (89,117 ) Total deferred tax assets 155,758 455,741 Deferred tax liabilities: Intangible assets arisen from business combination and asset acquisition (24,607 ) (24,607 ) Unrealized gain in consolidated trusts (58,897 ) (36,989 ) Other taxable temporary difference (2,044 ) — Withholding tax for undistributed earnings (18,000 ) (76,036 ) Total deferred tax liabilities (103,548 ) (137,632 ) |
Movement of Valuation Allowances | Movement of valuation allowances For the years ended December 31, 2019 2020 2021 RMB RMB RMB At beginning of year 40,143 6,245 42,233 Current year additions 741 40,054 50,925 Current year reversals (34,639 ) (4,066 ) (4,041 ) At end of year 6,245 42,233 89,117 |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Option Shares Activities | The following table sets forth the stock option shares activities under all the option plans for the years ended December 31, 2019, 2020 and 2021: Options Weighted Weighted Aggregate US$ US$ Outstanding at December 31, 2019 54,564,430 0.4519 2.51 4,264 Granted 3,035,750 0.1111 — — Canceled/Forfeited (19,350,460 ) 0.1327 — — Expired (454,170 ) 0.9663 — — Exercised (11,765,920 ) 0.1235 — — Outstanding at December 31, 2020 26,029,630 0.3708 1.31 5,581 Vested and expected to vest at December 31, 2020 25,712,658 0.3704 1.30 5,524 Exercisable as of December 31, 2020 17,371,695 0.3097 0.88 4,524 Granted — — — — Canceled/Forfeited (1,300,000 ) 0.5876 — — Expired (40,835 ) 0.1260 — — Exercised (17,614,760 ) 0.2915 — — Outstanding at December 31, 2021 7,074,035 0.5331 1.24 3,607 Vested and expected to vest at December 31, 2021 7,022,578 0.5333 1.24 3,580 Exercisable as of December 31, 2021 4,527,920 0.4981 0.53 2,541 |
Schedule of Fair Value of Each Option Granted Estimated Using Binomial Model Assumption | The fair value of each option granted under the Company’s Incentive Shares plan was estimated on the date of grant using the binomial model that uses the assumption noted in the following table: Options Granted Options Granted RMB RMB Risk-free interest rate 2.62 % 0.6 % Expected life (in years) 5 5 Expected dividend yield 0 % 0 % Expected volatility 38.01 % 48.61 % Exercise multiple 2.2-2.8 2.8 |
Summary of Restricted Stock Units Activities Under All Incentive Plans | The following table sets forth the Company’s RSUs activities under all incentive plans for the years ended December 31, 2019, 2020 and 2021: Number of RSUs Weighted-average US$ Unvested at December 31, 2019 12,023,795 0.9880 Granted 71,935,155 0.3551 Vested (3,916,645 ) 0.8144 Canceled/Forfeited (4,211,810 ) 0.6760 Unvested at December 31, 2020 75,830,495 0.4290 Granted 22,322,425 0.7675 Vested (15,183,045 ) 0.4803 Canceled/Forfeited (10,052,130 ) 0.4644 Unvested at December 31, 2021 72,917,745 0.5452 |
Net profit per share (Tables)
Net profit per share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Earnings Per Share | Basic net profit per share and diluted net profit per share have been calculated in accordance with ASC Topic 260 on computation of earnings per share for the years ended December 31, 2019, 2020 and 2021 as follows: For the years ended December 31, 2019 2020 2021 RMB RMB RMB Basic net profit per share calculation: Numerator: Net profit attributable to FinVolution Group’s ordinary shareholders 2,372,850 1,972,700 2,508,947 Denominator: Weighted average number of ordinary shares outstanding—basic 1,525,814,189 1,477,162,991 1,420,870,790 Net profit per share attributable to FinVolution Group’s ordinary shareholders—basic 1.56 1.34 1.77 Dilute net profit per share calculation: Numerator: Net profit attributable to FinVolution Group’s ordinary shareholders 2,372,850 1,972,700 2,508,947 Denominator: Weighted average number of ordinary shares outstanding—basic 1,525,814,189 1,477,162,991 1,420,870,790 Ordinary 23,831,652 9,801,862 8,495,974 Ordinary shares issuable upon the vesting of outstanding restricted share units using the treasury stock method 2,777,219 4,360,567 53,135,068 Weighted average number of ordinary shares outstanding—diluted 1,552,423,060 1,491,325,420 1,482,501,832 Net profit per share attributable to FinVolution Group’s ordinary shareholders—diluted 1.53 1.32 1.69 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Summary of lease cost | (a) The following table sets forth the breakdown of leasing expenses: For the years ended December 31, 2020 2021 RMB RMB Lease cost: Amortization of right-of-use 41,377 30,261 Interest of lease liabilities 3,276 1,695 Expenses for short-term leases within 12 months 7,526 5,911 Total lease cost 52,179 37,867 |
Summary of supplemental cash flow | (b) The following table sets forth the supplemental cash flow information related to leases: For the years ended December 31, 2020 2021 RMB RMB Other information: Cash paid for amounts included in the measurement of lease liabilities: Operating lease payments 45,682 36,066 |
Summary of weighted-average remaining lease term and discount rate | (c) The following table sets forth the weighted-average remaining lease term and discount rate: As of December 31, 2020 2021 Weighted-average remaining lease term Operating leases 1.70 years 3.30 years Weighted-average discount rate Operating leases 4.75 % 4.75 % |
Schedule of Information about movement of Right of use Assets | (d) The following table sets forth the movement of right of use assets for the years ended December 31, 2020 and 2021: For the years ended December 31, 2020 2021 RMB RMB Beginning balance 95,786 54,968 Recognition of additional leasing contract 559 24,431 Amortization of right of use assets (41,377 ) (30,261 ) Ending balance 54,968 49,138 |
Schedule of Information about movement of Leasing Liabilities | (e) The following table sets forth the movement of leasing liabilities for the years ended December 31, 2020 and 2021: For the years ended December 31, 2020 2021 RMB RMB Beginning balance 85,143 43,296 Recognition of additional leasing contract 559 24,431 Interest of lease liabilities 3,276 1,695 Leasing payment (45,682 ) (36,066 ) Ending balance 43,296 33,356 |
Summary of maturities of lease liabilities | (f) The following table sets forth the maturities of lease liabilities: As of December 31, 2021 RMB 2022 17,111 2023 6,308 2024 4,476 2025 4,700 2026 3,655 Total undiscounted lease payments 36,250 Less: Imputed interest (2,894 ) Total lease liabilities 33,356 |
Condensed financial informati_2
Condensed financial information of the parent company (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Condensed Balance Sheet | The Company did not have significant capital and other commitments, long-term obligations, or guarantees as of December 31, 2020 and 2021. As of December 31, 2020 2021 RMB RMB US$ Note2(f) Assets Cash and cash equivalents 28,435 38,231 5,999 Prepaid expenses and other assets 1,247 2,795 439 Amounts due from Group companies 1,302,606 694,123 108,923 Investment in subsidiaries and VIEs 7,949,999 10,574,557 1,659,379 Total assets 9,282,287 11,309,706 1,774,740 Liabilities and Shareholders’ Equity Accrued expenses and other liabilities 32,571 5,647 885 Contract liability 3,447 1,610 253 Amounts due to Group companies 882,963 647,199 101,559 Total liabilities 918,981 654,456 102,697 Shareholders’ equity : Class A ordinary shares (US$0.00001 par value; 10,000,000,000 shares 854,591,404 64 64 10 Class B ordinary shares (US$0.00001 par value; 10,000,000,000 shares 39 39 6 Additional paid-in 5,659,990 5,694,733 893,628 Treasury stock (144,906,570 and 116,279,765 (401,621 ) (324,171 ) (50,870 ) Statutory reserves 458,058 610,403 95,786 Accumulated other comprehensive income (5,142 ) (16,769 ) (2,630 ) Retained earnings 2,651,918 4,690,951 736,113 Total shareholders’ equity 8,363,306 10,655,250 1,672,043 Total liabilities and shareholders’ equity 9,282,287 11,309,706 1,774,740 |
Schedule of Comprehensive Income | Statements of comprehensive income For the years ended December 31, 2019 2020 2021 RMB RMB RMB US$ Operating expenses General and administrative expenses (25,590 ) (20,720 ) (18,617 ) (2,921 ) Profits from operations Other income, net 7,898 2,158 1,502 236 Income from subsidiaries and VIEs 2,390,542 1,991,262 2,526,062 396,394 Net profit 2,372,850 1,972,700 2,508,947 393,709 Net profit attributable to ordinary shareholders 2,372,850 1,972,700 2,508,947 393,709 |
Schedule of Cash Flow Statement | Statements of cash flows For the years ended December 31, 2019 2020 2021 RMB RMB RMB US$ Note 2(f) Net cash provided by (used in) operating activities for Third-party 8,474 (6,282 ) (45,587 ) (7,154 ) Net cash provided by (used in) operating activities 8,474 (6,282 ) (45,587 ) (7,154 ) Collection of loans from Group companies 86,471 557,936 846,737 132,871 Cash paid as loans extended to Group companies — — (238,254 ) (37,387 ) Net cash provided by (used in) investing activities 86,471 557,936 608,483 95,484 Repayment of loans to Group companies — — (839,719 ) (131,770 ) Cash received as loans from Group companies — — 603,955 94,774 Other financing activities (401,400 ) (636,936 ) (310,221 ) (48,681 ) Net cash provided by (used in) financing activities (401,400 ) (636,936 ) (545,985 ) (85,677 ) |
Principal Activities and Orga_3
Principal Activities and Organization - Schedule of Principal Subsidiaries and Consolidated VIE (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
FinVolution (HK) LIMITED [Member] | |
Principal Activities And Reorganization [Line Items] | |
Percentage of direct or indirect economic interest | 100.00% |
Date of incorporation | Jun. 12, 2012 |
Place of incorporation | Hong Kong, China |
Beijing Prosper Investment Consulting Co., Ltd [Member] | |
Principal Activities And Reorganization [Line Items] | |
Percentage of direct or indirect economic interest | 100.00% |
Date of incorporation | Aug. 21, 2012 |
Place of incorporation | Beijing, China |
Shanghai Guangjian Information Technology Co., Ltd [Member] | |
Principal Activities And Reorganization [Line Items] | |
Percentage of direct or indirect economic interest | 100.00% |
Date of incorporation | Jun. 5, 2017 |
Place of incorporation | Shanghai, China |
Shanghai Manyin Information Technology Co., Ltd. [Member] | |
Principal Activities And Reorganization [Line Items] | |
Percentage of direct or indirect economic interest | 100.00% |
Date of incorporation | Feb. 12, 2018 |
Place of incorporation | Shanghai, China |
Hainan Shanghu Information Technology Company Limited [Member] | |
Principal Activities And Reorganization [Line Items] | |
Percentage of direct or indirect economic interest | 100.00% |
Date of incorporation | Aug. 1, 2018 |
Place of incorporation | Hainan, China |
Consolidated VIEs' [Member] | Beijing Paipairongxin Investment Consulting Co., Ltd [Member] | |
Principal Activities And Reorganization [Line Items] | |
Percentage of direct or indirect economic interest | 100.00% |
Date of incorporation | Jun. 15, 2012 |
Place of incorporation | Beijing, China |
Consolidated VIEs' [Member] | Shanghai Zihe Information Technology Co., Ltd [Member] | |
Principal Activities And Reorganization [Line Items] | |
Percentage of direct or indirect economic interest | 100.00% |
Date of incorporation | Jul. 6, 2017 |
Place of incorporation | Shanghai, China |
Consolidated VIEs' [Member] | Shanghai Nianqiao Technology Co., Ltd [Member] | |
Principal Activities And Reorganization [Line Items] | |
Percentage of direct or indirect economic interest | 100.00% |
Date of incorporation | Aug. 8, 2018 |
Place of incorporation | Shanghai, China |
Consolidated VIEs' [Member] | Shanghai Ledao Technology Co., Ltd. [Member] | |
Principal Activities And Reorganization [Line Items] | |
Percentage of direct or indirect economic interest | 100.00% |
Date of incorporation | Jan. 10, 2019 |
Place of incorporation | Shanghai, China |
Consolidated VIEs' [Member] | Chengdu Yougao Information Technology Co Ltd [Member] | |
Principal Activities And Reorganization [Line Items] | |
Percentage of direct or indirect economic interest | 100.00% |
Date of incorporation | Dec. 26, 2019 |
Place of incorporation | Chengdu, China |
Consolidated VIEs' principal subsidiaries [Member] | Shanghai PPDai Financial Information Services Co.,Ltd [Member] | |
Principal Activities And Reorganization [Line Items] | |
Percentage of direct or indirect economic interest | 100.00% |
Date of incorporation | Jan. 18, 2011 |
Place of incorporation | Shanghai, China |
Consolidated VIEs' principal subsidiaries [Member] | Shanghai Erxu Information Technology Co., Ltd [Member] | |
Principal Activities And Reorganization [Line Items] | |
Percentage of direct or indirect economic interest | 100.00% |
Date of incorporation | Apr. 28, 2018 |
Place of incorporation | Shanghai, China |
Consolidated VIEs' principal subsidiaries [Member] | Fujian Zhiyun Financing Guarantee Co., Ltd [Member] | |
Principal Activities And Reorganization [Line Items] | |
Percentage of direct or indirect economic interest | 100.00% |
Date of incorporation | Nov. 21, 2019 |
Place of incorporation | Fujian, China |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021CNY (¥)Segmentsshares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($)shares | Jan. 01, 2020CNY (¥) | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Exchange rates used for translation | 6.3757 | 6.5249 | 6.3757 | ||
Convenience translation rate | 6.3726 | 6.3726 | |||
Restricted cash | ¥ 4,073,414 | ¥ 3,484,227 | $ 639,208 | ||
Cash held in escrow accounts | ¥ 1,281,869 | ¥ 701,673 | |||
Acquired of equity interest | 10.00% | 10.00% | 10.00% | 10.00% | |
Impairment of long-lived assets | ¥ 0 | ¥ 0 | ¥ 4,600 | ||
Gain from quality assurance fund | 98,400 | ||||
Decrease to retained earnings | ¥ 4,690,951 | ¥ 2,651,918 | $ 736,113 | ¥ 883,000 | |
Percentage on statutory reserve contribution from net profit | 50.00% | ||||
Number of reportable segments | Segments | 1 | ||||
Number of geographical segments | Segments | 0 | ||||
Treasury stock, common shares | shares | 116,279,765 | 144,906,570 | 116,279,765 | ||
Appropriations to the general reserve | ¥ 152,345 | ¥ 140,860 | 61,192 | ||
Equity method investment impairment | 5,000 | 0 | 0 | ||
Cumulative effect on retained earnings | 4,690,951 | 2,651,918 | $ 736,113 | 883,000 | |
Registered capital of subsidiary | 2,400,000 | 1,900,000 | |||
Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Decrease to retained earnings | (882,964) | ||||
Cumulative effect on retained earnings | (882,964) | ||||
Non-marketable Equity Method Investments [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Equity method investment impairment | 0 | 33,600 | 0 | ||
Individual Investors With Capped Obligations [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Restricted cash | 1,671,785 | ||||
Institutional Investors Without Uncapped Obligations [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Restricted cash | 2,042,084 | ||||
Guarantee and Quality Assurance Fund [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Restricted cash | 44,035,267 | 21,794,353 | |||
Cash Received From Investors Or Borrowers Not Yet Disbursed [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Restricted cash | 81,150 | 103,453 | |||
Cash Received Via Consolidated Trust Not Yet Distributed [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Restricted cash | 341,397 | 482,285 | |||
Paid In Capital [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Restricted cash | 0 | 300,000 | |||
Cash Received From Borrowers Not Yet Disbursed [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Restricted cash | 326,914 | 225,031 | |||
Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Decrease to retained earnings | 882,964 | ||||
Cumulative effect on retained earnings | ¥ 882,964 | ||||
Grants [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Operating revenues | 30,596 | 74,104 | 62,517 | ||
Other Income [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Realized and unrealized gain on short-term investments | 91,686 | 33,189 | 52,863 | ||
Selling and Marketing Expense [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Advertising and online marketing expenses | ¥ 1,569,167 | ¥ 470,243 | ¥ 710,203 | ||
Maximum [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Cash and cash equivalents, original maturities period | 3 months | ||||
Minimum [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Statutory reserve contribution percentage on net profit | 10.00% | ||||
Beijing Prosper Investment Consulting Co., Ltd [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Percentage to pay service fees by VIE's | 100.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Financial Information of VIE and its Subsidiaries (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | |
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | ¥ 4,418,127 | ¥ 2,632,174 | $ 693,301 | ||
Restricted cash | 4,073,414 | 3,484,227 | 639,208 | ||
Short-term investments | 1,204,901 | 1,970,958 | 189,075 | ||
Accounts receivable and contract assets | 1,890,846 | 863,906 | 296,715 | ||
Property, equipment and software, net | 112,397 | 93,876 | 17,638 | ||
Intangible assets | 98,947 | 98,947 | 15,527 | ||
Right of use assets | 49,138 | 54,968 | ¥ 95,786 | 7,711 | |
Investments | 132,377 | 129,622 | |||
Deferred tax assets | 455,741 | 155,758 | 71,516 | ||
Prepaid expenses and other assets | 1,899,438 | 1,050,009 | 298,063 | ||
Total assets | 18,138,551 | 14,882,185 | 2,846,335 | ||
Payable to platform customers | 81,150 | 103,453 | 12,734 | ||
Deferred guarantee income | 1,089,503 | 1,259,396 | 170,967 | ||
Expected credit losses for quality assurance commitment | 3,188,561 | 2,390,501 | 500,355 | ||
Payroll and welfare payable | 252,918 | 220,989 | 39,688 | ||
Taxes payable | 200,648 | 154,398 | 31,486 | ||
Funds payable to investors of consolidated trusts | 1,795,640 | 1,661,841 | 281,775 | ||
Contract liabilities | 8,436 | 3,447 | 1,324 | ||
Deferred tax liabilities | 137,632 | 103,548 | 21,597 | ||
Leasing liabilities | 33,356 | 43,296 | 5,234 | ||
Amounts due to related party | 2,265 | 1,984 | 355 | ||
Accrued expenses and other liabilities | 638,832 | 509,002 | 100,247 | ||
Total liabilities | 7,428,941 | 6,451,855 | $ 1,165,762 | ||
Provision for accounts receivable and contract assets | 139,226 | 124,661 | 261,882 | ||
Provision for loans receivable | 374,243 | $ 58,727 | 463,175 | 299,504 | |
Total Operating expenses | 6,856,362 | 1,075,913 | 5,255,554 | 3,316,330 | |
Other income, net | 122,368 | 19,202 | 116,469 | 136,491 | |
Gain from quality assurance | 98,405 | ||||
Realized gain from financial guarantee derivatives | 31,444 | ||||
Fair value change of financial guarantee derivatives | (56,287) | ||||
Profit before income tax expenses | 2,736,134 | 429,359 | 2,424,002 | 2,856,480 | |
Income tax expenses | (240,818) | (37,790) | (455,421) | (481,962) | |
Net profit | 2,495,316 | $ 391,569 | 1,968,581 | 2,374,518 | |
Beijing Paipairongxin Investment Consulting Co., Ltd [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | 2,176,581 | 1,660,549 | |||
Restricted cash | 3,691,832 | 3,176,799 | |||
Short-term investments | 1,173,523 | 1,970,958 | |||
Accounts receivable and contract assets | 1,805,079 | 685,556 | |||
Quality assurance receivable | 931,798 | 1,121,554 | |||
Property, equipment and software, net | 43,241 | 67,010 | |||
Intangible assets | 35,187 | 35,187 | |||
Right of use assets | 48,941 | 54,385 | |||
Loans and receivables, net of credit loss allowance for loans receivables | 1,696,495 | 2,107,837 | |||
Investments | 820,607 | 888,081 | |||
Investment in subsidiaries and VIEs | 70,578 | 48,147 | |||
Deferred tax assets | 343,494 | 149,511 | |||
Amounts due from Group companies | 2,200,275 | ||||
Prepaid expenses and other assets | 1,672,654 | 1,002,863 | |||
Total assets | 16,710,285 | 12,968,437 | |||
Payable to platform customers | 81,150 | 103,453 | |||
Deferred guarantee income | 1,089,503 | 1,259,396 | |||
Expected credit losses for quality assurance commitment | 3,188,561 | 2,390,501 | |||
Payroll and welfare payable | 146,697 | 132,955 | |||
Taxes payable | 57,237 | 53,552 | |||
Funds payable to investors of consolidated trusts | 1,795,640 | 1,661,841 | |||
Contract liabilities | 6,826 | ||||
Deferred tax liabilities | 45,656 | 67,217 | |||
Leasing liabilities | 33,184 | 42,775 | |||
Amounts due to Group companies | 4,005,052 | 2,151,941 | |||
Amounts due to related party | 2,265 | 1,984 | |||
Accrued expenses and other liabilities | 598,570 | 472,446 | |||
Total liabilities | 11,050,341 | 8,338,061 | |||
Net revenues | 9,130,049 | 7,152,418 | 5,769,901 | ||
Related party expenses | (7,503) | (10,104) | (43,494) | ||
Provision for accounts receivable and contract assets | (134,938) | (116,387) | (258,071) | ||
Provision for loans receivable | 32,317 | (302,243) | (257,263) | ||
Credit losses for quality assurance commitment | (1,963,609) | (2,007,968) | |||
Total Operating expenses | (8,061,053) | (5,566,376) | (4,609,391) | ||
Loss from subsidiaries and VIEs | (448) | (2,372) | (1,128) | ||
Income from operations | 1,068,548 | 1,583,670 | 1,159,382 | ||
Other income, net | 93,674 | 100,830 | 32,435 | ||
Gain from quality assurance | 98,405 | ||||
Realized gain from financial guarantee derivatives | 31,444 | ||||
Fair value change of financial guarantee derivatives | (56,287) | ||||
Profit before income tax expenses | 1,162,222 | 1,684,500 | 1,265,379 | ||
Income tax expenses | (144,463) | (319,700) | (268,504) | ||
Net profit | 1,017,759 | 1,364,800 | 996,875 | ||
Net cash provided by (used in) operating activities | (365,801) | 410,068 | (3,362) | ||
Capital contribution to Group companies | (22,432) | ||||
Collection of loans from Group companies | 389,043 | ||||
Cash paid as loans extended to Group companies | (2,328,235) | ||||
Other investing activities | 1,668,517 | 1,268,657 | (981,638) | ||
Net cash provided by (used in) investing activities | (293,107) | 1,268,657 | (981,638) | ||
Repayment of loans to Group companies | (164,719) | ||||
Cash received as loans from Group companies | 1,785,238 | 31,920 | |||
Other financing activities | 69,454 | (2,286,962) | 2,000,911 | ||
Net cash provided by (used in) financing activities | 1,689,973 | (2,286,962) | 2,032,831 | ||
Beijing Paipairongxin Investment Consulting Co., Ltd [Member] | Third-party revenues | |||||
Variable Interest Entity [Line Items] | |||||
Net revenues | 8,333,978 | 6,993,099 | 5,742,868 | ||
Related party expenses | (3,441,504) | (2,000,511) | (2,213,442) | ||
Net cash provided by (used in) operating activities | 1,412,435 | 2,415,649 | 209,889 | ||
Beijing Paipairongxin Investment Consulting Co., Ltd [Member] | Inter-company revenues | |||||
Variable Interest Entity [Line Items] | |||||
Net revenues | 796,071 | 159,319 | 27,033 | ||
Related party expenses | (2,545,816) | (1,129,163) | (1,837,121) | ||
Cash used in operating activities under service agreements for Inter-company | (2,313,224) | (2,143,205) | (239,476) | ||
Cash provided by operating activities under service agreements for Inter-company | ¥ 534,988 | ¥ 137,624 | ¥ 26,225 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Investments (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Summary Of Significant Accounting Policies [Abstract] | |||
Equity method investments | ¥ 132,377 | ¥ 129,622 | |
Non-marketable equity investments | 838,740 | 820,893 | |
Investments | ¥ 971,117 | $ 152,389 | ¥ 950,515 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - Wealth Management Products [Member] - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Total Assets | ¥ 1,204,901 | ¥ 1,970,958 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets | ||
Total Assets | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Assets | ||
Total Assets | 1,204,901 | 1,970,958 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets | ||
Total Assets | ¥ 0 | ¥ 0 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Summary of Equity Securities without Readily Determinable Fair Value (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity Securities without Readily Determinable Fair Value [Line Items] | |||
Upward adjustments | ¥ 0 | ¥ 3,149 | |
Downward adjustments (including impairment) | 0 | (36,600) | |
Total unrealized gain (losses) | 0 | (36,600) | ¥ 3,149 |
Initial cost basis | 872,021 | 854,174 | |
Upward adjustments | 3,319 | 3,319 | |
Downward adjustments (including impairment) | (36,600) | (36,600) | |
Total carrying value at the end of the period | ¥ 838,740 | ¥ 820,893 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Schedule of Interest Income, Interest Expense and Loan Provision Losses Related to Loans (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||
Interest income | ¥ 1,290,016 | ¥ 1,341,657 | ¥ 1,342,289 |
Less: Interest expense | (73,846) | (228,320) | (235,620) |
Net interest income | ¥ 1,216,170 | ¥ 1,113,337 | ¥ 1,106,669 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Schedule of Estimated Useful Life and Residual Value of Property and Equipment Net (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
Office Furniture and Equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Residual value | 5.00% |
Computer and Electronic Equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Residual value | 5.00% |
Leasehold Improvements [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful life | shorter of remaining lease period or estimated useful life |
Residual value | 0.00% |
Software [Member] | |
Property Plant And Equipment [Line Items] | |
Residual value | 0.00% |
Minimum [Member] | Office Furniture and Equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful life | 3 |
Minimum [Member] | Computer and Electronic Equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful life | 3 |
Minimum [Member] | Software [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful life | 1 |
Maximum [Member] | Office Furniture and Equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful life | 5 years |
Maximum [Member] | Computer and Electronic Equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful life | 5 years |
Maximum [Member] | Software [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful life | 5 years |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Schedule of Guarantee and Quality Assurance Fund Obligations Movement Activities (Detail) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2019CNY (¥) | |
Accounting Policies [Abstract] | |
Opening balance | ¥ 3,819,379 |
Fair value of newly written guarantee and quality assurance obligation | 6,156,826 |
Release of guarantee and quality assurance payable upon repayment | (6,718,809) |
Contingent liability | 6,409,884 |
Payouts during the year | (12,299,134) |
Recoveries during the year | 7,408,007 |
Ending balance | ¥ 4,776,153 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Schedule Of Movement Of Deferred Guarantee Income (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Revenue Remaining Performance Obligation Changes Line Item [Line Items] | ||||
Opening balance | ¥ 1,259,396 | |||
Release of quality assurance obligations upon repayment | ¥ 6,718,809 | |||
Ending balance | 1,089,503 | $ 170,967 | ¥ 1,259,396 | |
Deferred Guarantee Income [Member] | ||||
Revenue Remaining Performance Obligation Changes Line Item [Line Items] | ||||
Opening balance | 1,259,396 | 1,873,254 | ||
Newly written quality assurance obligations | 2,423,619 | 2,838,707 | ||
Release of quality assurance obligations upon repayment | (2,593,512) | (3,386,032) | ||
Termination of P2P quality assurance obligations | (66,533) | |||
Ending balance | ¥ 1,089,503 | ¥ 1,259,396 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Schedule Of Expected Credit Losses For Quality Assurance Commitment (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | |
Expected Credit Losses For Quality Assurance Commitment [Line Item] | |||
Opening balance | ¥ 2,390,501 | ||
Ending balance | 3,188,561 | $ 500,355 | ¥ 2,390,501 |
Expected Credit Losses For Quality Assurance [Member] | |||
Expected Credit Losses For Quality Assurance Commitment [Line Item] | |||
Opening balance | 2,390,501 | 3,593,021 | |
Provision for credit losses of quality assurance obligations | 1,904,473 | 2,057,558 | |
Payouts during the year | (7,227,869) | (8,297,516) | |
Recoveries during the year | 6,121,456 | 5,199,893 | |
Termination of P2P quality assurance obligations | (162,455) | ||
Ending balance | ¥ 3,188,561 | ¥ 2,390,501 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Schedule Of Quality Assurance Obligation And Receivables (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Schedule Of Guarantee And Quality Assurance Fund Receivable Movement Activities [Line Items] | |||
Quality assurance receivable | ¥ 931,798 | $ 146,219 | ¥ 1,121,554 |
Allowance for credit losses | 239,506 | 223,514 | |
Quality Assets Receivable [Member] | |||
Schedule Of Guarantee And Quality Assurance Fund Receivable Movement Activities [Line Items] | |||
Quality assurance receivable | 1,171,304 | 1,345,068 | |
Allowance for credit losses | (239,506) | (223,514) | |
Quality assurance receivable, net | ¥ 931,798 | ¥ 1,121,554 |
Summary of Significant Accou_15
Summary of Significant Accounting Policies - Summary of Aging of Past Due Quality Assurance Receivable (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of Quality Assurance Receivable Past Due [Line Items] | ||
Ouality Assurance Receivable Gross Current | ¥ 1,109,918 | ¥ 1,167,391 |
Quality Assurance Receivable Gross | 1,171,304 | 1,345,068 |
Accounts Receivables 1 To 89 Days Past Due [Member] | ||
Schedule of Quality Assurance Receivable Past Due [Line Items] | ||
Quality Assurance Receivable Gross | 36,789 | 97,527 |
Accounts Receivables 90 To 119 Days Past Due [Member] | ||
Schedule of Quality Assurance Receivable Past Due [Line Items] | ||
Quality Assurance Receivable Gross | 9,111 | 31,396 |
Accounts Receivables 120 To 149 Days Past Due [Member] | ||
Schedule of Quality Assurance Receivable Past Due [Line Items] | ||
Quality Assurance Receivable Gross | 7,939 | 27,959 |
Accounts Receivables 150 To 179 Days Past Due [Member] | ||
Schedule of Quality Assurance Receivable Past Due [Line Items] | ||
Quality Assurance Receivable Gross | 7,547 | 20,795 |
Accounts Receivables Total Past Due [Member] | ||
Schedule of Quality Assurance Receivable Past Due [Line Items] | ||
Quality Assurance Receivable Gross | 61,386 | 177,677 |
New Borrowers [Member] | ||
Schedule of Quality Assurance Receivable Past Due [Line Items] | ||
Ouality Assurance Receivable Gross Current | 269,919 | 191,155 |
Quality Assurance Receivable Gross | 285,288 | 234,233 |
New Borrowers [Member] | Accounts Receivables 1 To 89 Days Past Due [Member] | ||
Schedule of Quality Assurance Receivable Past Due [Line Items] | ||
Quality Assurance Receivable Gross | 9,094 | 26,708 |
New Borrowers [Member] | Accounts Receivables 90 To 119 Days Past Due [Member] | ||
Schedule of Quality Assurance Receivable Past Due [Line Items] | ||
Quality Assurance Receivable Gross | 2,340 | 5,651 |
New Borrowers [Member] | Accounts Receivables 120 To 149 Days Past Due [Member] | ||
Schedule of Quality Assurance Receivable Past Due [Line Items] | ||
Quality Assurance Receivable Gross | 2,004 | 5,312 |
New Borrowers [Member] | Accounts Receivables 150 To 179 Days Past Due [Member] | ||
Schedule of Quality Assurance Receivable Past Due [Line Items] | ||
Quality Assurance Receivable Gross | 1,931 | 5,407 |
New Borrowers [Member] | Accounts Receivables Total Past Due [Member] | ||
Schedule of Quality Assurance Receivable Past Due [Line Items] | ||
Quality Assurance Receivable Gross | 15,369 | 43,078 |
Repeat Borrowers [Member] | ||
Schedule of Quality Assurance Receivable Past Due [Line Items] | ||
Ouality Assurance Receivable Gross Current | 839,999 | 976,236 |
Quality Assurance Receivable Gross | 886,016 | 1,110,835 |
Repeat Borrowers [Member] | Accounts Receivables 1 To 89 Days Past Due [Member] | ||
Schedule of Quality Assurance Receivable Past Due [Line Items] | ||
Quality Assurance Receivable Gross | 27,695 | 70,819 |
Repeat Borrowers [Member] | Accounts Receivables 90 To 119 Days Past Due [Member] | ||
Schedule of Quality Assurance Receivable Past Due [Line Items] | ||
Quality Assurance Receivable Gross | 6,771 | 25,745 |
Repeat Borrowers [Member] | Accounts Receivables 120 To 149 Days Past Due [Member] | ||
Schedule of Quality Assurance Receivable Past Due [Line Items] | ||
Quality Assurance Receivable Gross | 5,935 | 22,647 |
Repeat Borrowers [Member] | Accounts Receivables 150 To 179 Days Past Due [Member] | ||
Schedule of Quality Assurance Receivable Past Due [Line Items] | ||
Quality Assurance Receivable Gross | 5,616 | 15,388 |
Repeat Borrowers [Member] | Accounts Receivables Total Past Due [Member] | ||
Schedule of Quality Assurance Receivable Past Due [Line Items] | ||
Quality Assurance Receivable Gross | ¥ 46,017 | ¥ 134,599 |
Summary of Significant Accou_16
Summary of Significant Accounting Policies - Schedule of Information About Movement of Quality Assurance Receivable (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Information About Movement Of Quality Assurance Receivable [Abstract] | ||
Beginning balance | ¥ 223,514 | ¥ 809,503 |
Impact of adoption of ASC 326 (Note 2(b)) | 0 | 34,998 |
Provision/(reversal) for credit losses | 59,136 | (49,590) |
Write-offs | (43,144) | (571,397) |
Ending balance | ¥ 239,506 | ¥ 223,514 |
Summary of Significant Accou_17
Summary of Significant Accounting Policies - Disaggregation of Revenue (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Quality Assurance Program [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Changes in expected discretionary payment to IRF investors | ¥ 4,997,537 | ¥ 2,708,885 | ¥ 4,228,095 |
Without Quality Assurance Program [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Changes in expected discretionary payment to IRF investors | 662,909 | 354,833 | 627,993 |
Loan facilitation service fees [Member] | Quality Assurance Program [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Changes in expected discretionary payment to IRF investors | 3,604,019 | 1,908,851 | 2,984,063 |
Loan facilitation service fees [Member] | Without Quality Assurance Program [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Changes in expected discretionary payment to IRF investors | 190,163 | 326,812 | |
Post-facilitation service fees [Member] | Quality Assurance Program [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Changes in expected discretionary payment to IRF investors | 1,287,760 | 672,981 | 1,096,660 |
Post-facilitation service fees [Member] | Without Quality Assurance Program [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Changes in expected discretionary payment to IRF investors | 21,805 | 103,713 | |
Other Revenue [Member] | Quality Assurance Program [Member] | Investment Management Fees [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Changes in expected discretionary payment to IRF investors | 31,767 | 109,423 | |
Other Revenue [Member] | Quality Assurance Program [Member] | Other Revenues [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Changes in expected discretionary payment to IRF investors | 105,758 | 95,286 | 37,949 |
Other Revenue [Member] | Without Quality Assurance Program [Member] | Borrowers Referral Fee [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Changes in expected discretionary payment to IRF investors | 239,070 | 290,337 | 130,677 |
Other Revenue [Member] | Without Quality Assurance Program [Member] | Other Revenues [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Changes in expected discretionary payment to IRF investors | ¥ 211,871 | ¥ 64,496 | ¥ 66,791 |
Loans Receivable, Net - Schedul
Loans Receivable, Net - Schedule of Loans Receivable Originated and Retained (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Receivables [Abstract] | |||||
Loans | ¥ 2,410,149 | ¥ 2,736,894 | |||
Credit loss allowance for loans receivable | (427,873) | (382,012) | ¥ (316,124) | ¥ (74,381) | |
Loans receivable, net | ¥ 1,982,276 | $ 311,062 | ¥ 2,354,882 |
Loans Receivable, Net - Sched_2
Loans Receivable, Net - Schedule of Allowance for Loan Losses (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Receivables [Abstract] | |||
Beginning balance | ¥ 382,012 | ¥ 316,124 | ¥ 74,381 |
Impact of adoption of ASC 326 (Note 2(b)) | 0 | 303,291 | 0 |
Provision for loans receivable | 374,243 | 463,175 | 299,504 |
Current period write off | (328,382) | (700,578) | (57,761) |
Ending balance | ¥ 427,873 | ¥ 382,012 | ¥ 316,124 |
Loans Receivable, Net - Sched_3
Loans Receivable, Net - Schedule of Aging of Loans (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans receivable | ¥ 2,410,149 | ¥ 2,736,894 |
New borrowers [member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans receivable | 308,200 | 266,034 |
Repeat borrowers [member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans receivable | 2,101,949 | 2,470,860 |
1-89 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Notes receivable gross | 124,290 | 121,323 |
1-89 Days Past Due [Member] | New borrowers [member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Notes receivable gross | 31,036 | 19,443 |
1-89 Days Past Due [Member] | Repeat borrowers [member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Notes receivable gross | 93,254 | 101,880 |
90-119 days Past due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Notes receivable gross | 34,656 | 34,558 |
90-119 days Past due | New borrowers [member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Notes receivable gross | 8,658 | 5,564 |
90-119 days Past due | Repeat borrowers [member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Notes receivable gross | 25,998 | 28,994 |
120-149 days Past due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Notes receivable gross | 35,832 | 32,610 |
120-149 days Past due | New borrowers [member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Notes receivable gross | 9,771 | 5,359 |
120-149 days Past due | Repeat borrowers [member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Notes receivable gross | 26,061 | 27,251 |
150-179 days Past due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Notes receivable gross | 28,798 | 32,116 |
150-179 days Past due | New borrowers [member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Notes receivable gross | 7,181 | 4,667 |
150-179 days Past due | Repeat borrowers [member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Notes receivable gross | 21,617 | 27,449 |
Total past due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Notes receivable gross | 223,576 | 220,607 |
Total past due | New borrowers [member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Notes receivable gross | 56,646 | 35,033 |
Total past due | Repeat borrowers [member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Notes receivable gross | 166,930 | 185,574 |
Current | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Notes receivable gross | 2,186,573 | 2,516,287 |
Current | New borrowers [member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Notes receivable gross | 251,554 | 231,001 |
Current | Repeat borrowers [member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Notes receivable gross | ¥ 1,935,019 | ¥ 2,285,286 |
Loans Receivable, Net - Additio
Loans Receivable, Net - Additional Information (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | ||
Loans receivable | ¥ 109,303 | ¥ 99,284 |
Prepaid Expenses and Other As_3
Prepaid Expenses and Other Assets - Receivables, Prepayments and Other Assets (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | |
Prepaid Expense and Other Assets [Abstract] | ||||
Security deposit and other deposits | [1] | ¥ 1,666,713 | ¥ 965,117 | |
Deductible value-added taxes | 105,002 | 20,292 | ||
Prepaid online marketing expenses | 33,709 | 15,956 | ||
Advances | 15,715 | 10,455 | ||
Others | 78,299 | 38,189 | ||
Prepaid expense and other assets | ¥ 1,899,438 | $ 298,063 | ¥ 1,050,009 | |
[1] | Security deposits and other deposits primarily includes security deposits and rental deposits. Security deposits were set aside as requested by certain institutional funding partners, held in deposit accounts with the institutional funding partners. As of December 31, 2020 and 2021, security deposits set aside by the Group amounted to RMB953,856 and RMB1,654,989, respectively. |
Prepaid Expenses and Other As_4
Prepaid Expenses and Other Assets - Receivables, Prepayments and Other Assets (Parenthetical) (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Prepaid Expenses And Other Assets [Line Items] | ||
Security deposits | ¥ 1,654,989 | ¥ 953,856 |
Property, Equipment and Softw_3
Property, Equipment and Software, Net - Schedule of Property, Equipment and Software, Net (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | |
Property Plant And Equipment [Line Items] | ||||
Property, equipment and software, gross | ¥ 339,493 | ¥ 283,695 | ||
Less: Accumulated depreciation and amortization | [1] | (227,096) | (189,819) | |
Property, equipment and software, net | 112,397 | $ 17,638 | 93,876 | |
Computer and Electronic Equipment [Member] | ||||
Property Plant And Equipment [Line Items] | ||||
Property, equipment and software, gross | 231,196 | 173,653 | ||
Office Furniture and Equipment [Member] | ||||
Property Plant And Equipment [Line Items] | ||||
Property, equipment and software, gross | 22,279 | 17,136 | ||
Leasehold Improvements [Member] | ||||
Property Plant And Equipment [Line Items] | ||||
Property, equipment and software, gross | 39,266 | 47,324 | ||
Software [Member] | ||||
Property Plant And Equipment [Line Items] | ||||
Property, equipment and software, gross | ¥ 46,752 | ¥ 45,582 | ||
[1] | Depreciation and amortization expenses for the years ended December 31, 2019, 2020 and 2021 was RMB57,712, RMB51,780 and RMB37,277 respectively. |
Property, Equipment and Softw_4
Property, Equipment and Software, Net - Schedule of Property, Equipment and Software, Net (Parenthetical) (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation and amortization | ¥ 37,277 | $ 5,850 | ¥ 51,780 | ¥ 57,712 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Identifiable intangible asset | ¥ 98,947 | ¥ 98,947 | |
Less: Accumulated amortization and impairment | 0 | 0 | |
Intangible assets | 98,947 | 98,947 | |
Micro-Lending License [Member] | |||
Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Identifiable intangible asset | 63,760 | 63,760 | |
Factoring License [Member] | |||
Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Identifiable intangible asset | 265 | 265 | |
Financial Leasing License [Member] | |||
Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Identifiable intangible asset | 255 | 255 | |
Insurance License [Member] | |||
Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Identifiable intangible asset | [1] | ¥ 34,667 | ¥ 34,667 |
[1] | The Group acquired an insurance brokeage company in 2020. The acquisitions met the “single or similar asset threshold” and are not considered as business combination in accordance with ASC Topic 805 but asset acquisition. |
Accounts Receivable and Contr_3
Accounts Receivable and Contract Assets - Accounts Receivable and Related Allowance for Doubtful Accounts (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | ||
Accounts receivable and contract assets | ¥ 2,141,542 | ¥ 1,052,631 |
Credit loss allowance for accounts receivable and contract assets | (250,696) | (188,725) |
Accounts receivable and contract assets, net | ¥ 1,890,846 | ¥ 863,906 |
Accounts Receivable and Contr_4
Accounts Receivable and Contract Assets - Schedule of aging of past-due accounts receivable and contract assets (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Current | ¥ 2,039,582 | ¥ 1,003,860 |
Accounts receivable and contract assets | 2,141,542 | 1,052,631 |
New borrowers [member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 451,127 | 117,030 |
Accounts receivable and contract assets | 477,071 | 128,940 |
Repeat borrowers [member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 1,365,710 | 756,322 |
Accounts receivable and contract assets | 1,441,726 | 793,183 |
Other [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 222,745 | 130,508 |
Accounts receivable and contract assets | 222,745 | 130,508 |
1-89 days past due [member] | ||
Financing Receivable, Past Due [Line Items] | ||
Accounts receivable and contract assets | 67,553 | 26,886 |
1-89 days past due [member] | New borrowers [member] | ||
Financing Receivable, Past Due [Line Items] | ||
Accounts receivable and contract assets | 16,964 | 6,781 |
1-89 days past due [member] | Repeat borrowers [member] | ||
Financing Receivable, Past Due [Line Items] | ||
Accounts receivable and contract assets | 50,589 | 20,105 |
1-89 days past due [member] | Other [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 0 | |
Accounts receivable and contract assets | 0 | |
90-119 days past due [member] | ||
Financing Receivable, Past Due [Line Items] | ||
Accounts receivable and contract assets | 14,035 | 7,614 |
90-119 days past due [member] | New borrowers [member] | ||
Financing Receivable, Past Due [Line Items] | ||
Accounts receivable and contract assets | 3,626 | 1,672 |
90-119 days past due [member] | Repeat borrowers [member] | ||
Financing Receivable, Past Due [Line Items] | ||
Accounts receivable and contract assets | 10,409 | 5,942 |
90-119 days past due [member] | Other [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 0 | |
Accounts receivable and contract assets | 0 | |
120-149 days past due [member] | ||
Financing Receivable, Past Due [Line Items] | ||
Accounts receivable and contract assets | 11,070 | 6,943 |
120-149 days past due [member] | New borrowers [member] | ||
Financing Receivable, Past Due [Line Items] | ||
Accounts receivable and contract assets | 2,863 | 1,587 |
120-149 days past due [member] | Repeat borrowers [member] | ||
Financing Receivable, Past Due [Line Items] | ||
Accounts receivable and contract assets | 8,207 | 5,356 |
120-149 days past due [member] | Other [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 0 | |
Accounts receivable and contract assets | 0 | |
150-179 days past due [member] | ||
Financing Receivable, Past Due [Line Items] | ||
Accounts receivable and contract assets | 9,302 | 7,328 |
150-179 days past due [member] | New borrowers [member] | ||
Financing Receivable, Past Due [Line Items] | ||
Accounts receivable and contract assets | 2,491 | 1,870 |
150-179 days past due [member] | Repeat borrowers [member] | ||
Financing Receivable, Past Due [Line Items] | ||
Accounts receivable and contract assets | 6,811 | 5,458 |
150-179 days past due [member] | Other [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 0 | |
Accounts receivable and contract assets | 0 | |
Total past due [member] | ||
Financing Receivable, Past Due [Line Items] | ||
Accounts receivable and contract assets | 101,960 | 48,771 |
Total past due [member] | New borrowers [member] | ||
Financing Receivable, Past Due [Line Items] | ||
Accounts receivable and contract assets | 25,944 | 11,910 |
Total past due [member] | Repeat borrowers [member] | ||
Financing Receivable, Past Due [Line Items] | ||
Accounts receivable and contract assets | 76,016 | 36,861 |
Total past due [member] | Other [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | ¥ 0 | |
Accounts receivable and contract assets | ¥ 0 |
Accounts Receivable and Contr_5
Accounts Receivable and Contract Assets - Schedule of Movement of Provision for Accounts Receivable and Contract Assets (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Receivables [Abstract] | |||
Beginning balance | ¥ 188,725 | ¥ 145,699 | ¥ 50,544 |
Impact of adoption of ASC 326 | 0 | 142,077 | 0 |
Provision for accounts receivable and contract assets | 139,226 | 124,661 | 261,882 |
Current period write-off | (77,255) | (223,712) | (166,727) |
Ending balance | ¥ 250,696 | ¥ 188,725 | ¥ 145,699 |
Employee Benefits - Additional
Employee Benefits - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Pension Plans And Defined Benefit Postretirement Plans [Abstract] | |||
Amount of employee benefits charged | ¥ 140,135 | ¥ 80,505 | ¥ 144,596 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities - Schedule of Accrued Expenses and Other Liabilities (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | |
Accrued Expenses And Other Liabilities [Abstract] | ||||
Funds payable to financial institution partners | [1] | ¥ 326,914 | ¥ 225,031 | |
Accrued marketing expense | 133,399 | 134,743 | ||
Accrued collection service fee | 41,654 | 36,943 | ||
Accrued technical services expense | 25,988 | 16,930 | ||
Accrued payment channel expenses | 21,055 | 13,212 | ||
Accrued professional service fee | 25,074 | 25,503 | ||
Others | 64,748 | 56,640 | ||
Total accrued expenses and other liabilities | ¥ 638,832 | $ 100,247 | ¥ 509,002 | |
[1] | The balance of payable mainly includes funds received from borrowers but not yet transferred to the institutional funding partners due to the settlement time lag. |
Related Party Balances and Tr_3
Related Party Balances and Transactions - Summary of Amount Incurred by the Group (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
PP Credit Data Service Shanghai Company Limited [Member] | Data Collection Service [Member] | |||
Related Party Transaction [Line Items] | |||
Data collection service expense | ¥ 7,503 | ¥ 10,104 | ¥ 43,494 |
Related Party Balances and Tr_4
Related Party Balances and Transactions - Summary of Amounts Due to Related Parties (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Related Party Transaction [Line Items] | |||
Amounts due to related parties | ¥ 2,265 | $ 355 | ¥ 1,984 |
PP Credit Data Service Shanghai Company Limited [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts due to related parties | ¥ 2,265 | ¥ 1,984 |
Taxation - Additional Informati
Taxation - Additional Information (Detail) $ in Thousands, $ in Millions | Apr. 14, 2008 | Mar. 16, 2007 | Aug. 31, 2006 | Dec. 31, 2021CNY (¥) | Sep. 30, 2021CNY (¥) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018HKD ($) |
Income Tax Disclosure [Line Items] | ||||||||||
Profits tax rate | 9.00% | 9.00% | 19.00% | 17.00% | ||||||
Cash paid for income taxes | ¥ 574,939,000 | $ 90,220 | ¥ 367,004,000 | ¥ 145,825,000 | ||||||
Preferential statutory tax rate for high and new technology enterprises | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | |||||
Period of full tax exemption | 2 years | |||||||||
Income taxes reduction percentage | 50.00% | 50.00% | 50.00% | |||||||
Income tax reduction period | 3 years | |||||||||
Significant change in unrecognized tax benefits within 12 months | ¥ 0 | ¥ 0 | ¥ 0 | |||||||
Significant unrecognized tax benefits | 0 | ¥ 0 | 0 | |||||||
Reversal of income tax expense | 220,200,000 | ¥ 144,100,000 | ¥ 76,100,000 | ¥ 33,800,000 | ||||||
Tax loss carry-forward limitation period | The applicable carry-forward limitation period is 5 years under the PRC EIT law. | The applicable carry-forward limitation period is 5 years under the PRC EIT law. | ||||||||
Tax Slab Rate One [Member] | ||||||||||
Income Tax Disclosure [Line Items] | ||||||||||
Income tax slab limit | $ | $ 2 | |||||||||
Subsidiaries [Member] | ||||||||||
Income Tax Disclosure [Line Items] | ||||||||||
Total tax loss carry forwards | 487,439,000 | ¥ 487,439,000 | ||||||||
Earliest Tax Year [Member] | ||||||||||
Income Tax Disclosure [Line Items] | ||||||||||
Tax loss carry forwards, expiration year | 2022 | 2022 | ||||||||
Latest Tax Year [Member] | ||||||||||
Income Tax Disclosure [Line Items] | ||||||||||
Tax loss carry forwards, expiration year | 2026 | 2026 | ||||||||
PRC Subsidiary [Member] | ||||||||||
Income Tax Disclosure [Line Items] | ||||||||||
Statutory tax rate | 25.00% | |||||||||
Preferential statutory tax rate for high and new technology enterprises | 15.00% | 12.50% | 12.50% | 12.50% | 12.50% | |||||
Percentage of income tax rate for its global income | 25.00% | 25.00% | ||||||||
Foreign investment enterprise tax withholding rate | 10.00% | 10.00% | ||||||||
Dividend withholding tax | ¥ 58,000,000 | ¥ 18,000,000 | ||||||||
Deferred tax liabilities | 0 | 0 | 0 | |||||||
Unrecognized deferred tax liabilities related to undistributed profits | ¥ 4,604,000,000 | 4,604,000,000 | 2,669,000,000 | |||||||
Undistributed earnings | ¥ 5,123,000,000 | |||||||||
Hong Kong [Member] | ||||||||||
Income Tax Disclosure [Line Items] | ||||||||||
Profits tax rate | 16.50% | 16.50% | ||||||||
Cash paid for income taxes | ¥ 0 | 0 | ||||||||
Estimated assessable profits tax | ¥ 0 | ¥ 0 | ||||||||
Hong Kong [Member] | Tax Slab Rate One [Member] | ||||||||||
Income Tax Disclosure [Line Items] | ||||||||||
Profits tax rate | 8.25% | 8.25% | ||||||||
Hong Kong [Member] | Tax Slab Rate Two [Member] | ||||||||||
Income Tax Disclosure [Line Items] | ||||||||||
Profits tax rate | 16.50% | 16.50% | ||||||||
Hong Kong [Member] | Maximum [Member] | ||||||||||
Income Tax Disclosure [Line Items] | ||||||||||
Foreign investment enterprise tax withholding rate | 5.00% | |||||||||
Hong Kong [Member] | PRC Subsidiary [Member] | Minimum [Member] | ||||||||||
Income Tax Disclosure [Line Items] | ||||||||||
Minimum foreign investor direct ownership percentage to be subject to maximum tax of 5% | 25.00% | |||||||||
Indonesia [Member] | ||||||||||
Income Tax Disclosure [Line Items] | ||||||||||
Profits tax rate | 22.00% | 22.00% | ||||||||
China [Member] | ||||||||||
Income Tax Disclosure [Line Items] | ||||||||||
Preferential statutory tax rate for key software enterprise | 10.00% |
Taxation - Schedule of Current
Taxation - Schedule of Current and Deferred Portions of Income Tax Expense (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Current income tax expenses | ¥ 503,139 | ¥ 298,096 | ¥ 390,080 | |
Deferred income tax expense | (262,321) | 157,325 | 91,882 | |
Total | ¥ 240,818 | $ 37,790 | ¥ 455,421 | ¥ 481,962 |
Taxation - Summary of Reconcili
Taxation - Summary of Reconciliation Between the Computed Expected Tax Expense (Benefit) Rate and the Effective Income Tax Rate (Detail) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Income Tax Disclosure [Abstract] | ||||
Statutory tax rate | 25.00% | 25.00% | 25.00% | |
Research and development tax credit | (3.00%) | (2.00%) | (3.00%) | |
Effect of tax holiday | [1] | (17.00%) | (7.00%) | (7.00%) |
Change in valuation allowance | 1.00% | 1.00% | 1.00% | |
Non-deductible expenses | 1.00% | 1.00% | 1.00% | |
Withholding tax | 2.00% | 1.00% | ||
Effective income tax rate | 9.00% | 19.00% | 17.00% | |
[1] | As Hainan Shanghu obtained software enterprise status in the fourth quarter of 2021, the Group reversed a total of RMB220.2 million tax expenses in the fourth quarter of 2021 including RMB76.1 million related to 2020 and RMB144.1 million related to for the first three quarters of 2021. As Shanghai Shanghu obtained Key Software Enterprise Status in 2020, the Group reversed a total of RMB33.8 million tax expenses related to 2019 in 2020. |
Taxation - Summary of Aggregate
Taxation - Summary of Aggregate Amount and Per Share Effect of Tax Holidays (Detail) - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Tax holiday effect | ¥ 471,798 | ¥ 168,677 | ¥ 202,923 |
Net profit per share effect - Basic | ¥ 0.33 | ¥ 0.11 | ¥ 0.13 |
Net profit per share effect - Diluted | ¥ 0.32 | ¥ 0.11 | ¥ 0.13 |
Taxation - Significant Componen
Taxation - Significant Components of Deferred Tax Assets (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||||
Timing difference in revenue recognition | ¥ 244,215 | |||
Provision for accounts receivable and contract assets and loans receivable | 168,398 | ¥ 77,578 | ||
Net accumulated losses-carry forward | 117,850 | 69,454 | ||
Payroll and welfare payable and other temporary difference | 12,379 | 5,831 | ||
Quality assurance obligations | 2,016 | 45,128 | ||
Less: Valuation allowance | (89,117) | (42,233) | ¥ (6,245) | ¥ (40,143) |
Total deferred tax assets | 455,741 | 155,758 | ||
Deferred tax liabilities: | ||||
Intangible assets arisen from business combination and asset acquisition | (24,607) | (24,607) | ||
Unrealized gain in consolidated trusts | (36,989) | (58,897) | ||
Other taxable temporary difference | (2,044) | |||
Withholding tax for undistributed earnings | (76,036) | (18,000) | ||
Total deferred tax liabilities | ¥ (137,632) | ¥ (103,548) |
Taxation - Movement of Valuatio
Taxation - Movement of Valuation Allowances (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
At beginning of year | ¥ 42,233 | ¥ 6,245 | ¥ 40,143 |
Current year additions | 50,925 | 40,054 | 741 |
Current year reversals | (4,041) | (4,066) | (34,639) |
At end of year | ¥ 89,117 | ¥ 42,233 | ¥ 6,245 |
Ordinary shares and treasury _2
Ordinary shares and treasury stock - Additional Information (Detail) $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2021CNY (¥)shares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019USD ($)$ / sharesshares | |
Class of Stock [Line Items] | ||||||
Authorized share capital | $ | $ 50,000 | |||||
Ordinary and preferred shares authorized | 5,000,000,000 | |||||
Ordinary stock, authorized | 4,266,159,600 | |||||
Ordinary stock, par value | $ / shares | $ 0.00001 | |||||
Preferred stock, shares authorized | 733,840,400 | |||||
Ordinary stock, shares issued | 1,550,071,169 | |||||
Stock Repurchased, Value | ¥ | ¥ 16,228 | ¥ 384,871 | ¥ 47,173 | |||
Class A Ordinary Shares [Member] | ||||||
Class of Stock [Line Items] | ||||||
Ordinary stock, authorized | 10,000,000,000 | 10,000,000,000 | ||||
Ordinary stock, par value | $ / shares | $ 0.00001 | $ 0.00001 | ||||
Ordinary stock, shares issued | 970,871,169 | 969,071,169 | ||||
Stock repurchased, Shares | 4,171,000 | 4,171,000 | 139,954,870 | 139,954,870 | 12,729,500 | 12,729,500 |
Stock Repurchased, Value | $ | $ 2,500 | $ 55,400 | $ 6,800 | |||
Weighted Average Price per shares | $ / shares | $ 0.60 | $ 0.40 | $ 0.53 | |||
Class B Ordinary Shares [Member] | ||||||
Class of Stock [Line Items] | ||||||
Ordinary stock, authorized | 10,000,000,000 | 10,000,000,000 | ||||
Ordinary stock, par value | $ / shares | $ 0.00001 | $ 0.00001 | ||||
Ordinary stock, shares issued | 579,200,000 | 581,000,000 | ||||
Ordinary stock, shares sold | 1,800,000 | 1,800,000 | 5,000,000 | 5,000,000 | 73,000,000 | 73,000,000 |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Detail) ¥ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021CNY (¥)$ / shares | Dec. 31, 2020CNY (¥) | Dec. 31, 2020$ / shares | Dec. 31, 2019CNY (¥) | Dec. 31, 2019$ / shares | Dec. 31, 2018 | Dec. 31, 2021$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share based compensation expenses | ¥ 774 | ¥ 6,218 | ¥ 22,118 | |||||
Unrecognized compensation cost | ¥ 1,839 | ¥ 1,839 | ||||||
Weighted average recognition period | 1 year 8 months 4 days | |||||||
Per Share fair value of ordinary shares | $ / shares | $ 0.52 | $ 0.53 | $ 0.99 | |||||
Weighted average grant-date per-share fair value of options granted | $ / shares | ¥ 0 | $ 0.13 | $ 0.24 | |||||
Share-based Payment Arrangement, Expense, Tax Benefit | ¥ 0 | 0 | 0 | |||||
Employee Stock Option [Member] | 2017 Share Incentive Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation arrangement by share-based payment award, award vesting period | 4 years | |||||||
Restricted Stock Units (RSUs) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share based compensation expenses | ¥ 94,439 | ¥ 35,951 | ¥ 20,142 | |||||
Weighted average recognition period | 2 years 8 months 4 days | |||||||
Unrecognized compensation cost of unvested restricted shares | ¥ 184,130 | ¥ 184,130 | ||||||
Restricted Stock Units (RSUs) [Member] | 2017 Share Incentive Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation arrangement by share-based payment award, award vesting period | 4 years |
Share-based Compensation - Sche
Share-based Compensation - Schedule of Stock Option Shares Activities (Detail) - Employee Stock Option [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding, Beginning Balance | 26,029,630 | 54,564,430 | |
Options, Granted | 0 | 3,035,750 | |
Options, Canceled/Forfeited | (1,300,000) | (19,350,460) | |
Options,Expired | (40,835) | (454,170) | |
Options,Exercised | (17,614,760) | (11,765,920) | |
Options Outstanding, Ending Balance | 7,074,035 | 26,029,630 | 54,564,430 |
Options Outstanding, Vested and expected to vest | 7,022,578 | 25,712,658 | |
Options Outstanding, Exercisable | 4,527,920 | 17,371,695 | |
Outstanding, Weighted Average Exercise Price, Beginning balance | $ 0.3708 | $ 0.4519 | |
Granted, Weighted Average Exercise Price | 0 | 0.1111 | |
Canceled/Forfeited, Weighted Average Exercise Price | 0.5876 | 0.1327 | |
Expired, Weighted Average Exercise Price | 0.1260 | 0.9663 | |
Exercised, Weighted Average Exercise Price | 0.2915 | 0.1235 | |
Outstanding, Weighted Average Exercise Price, Ending balance | 0.5331 | 0.3708 | $ 0.4519 |
Vested and expected to vest, Weighted Average Exercise Price | 0.5333 | 0.3704 | |
Exercisable, Weighted Average Exercise Price | $ 0.4981 | $ 0.3097 | |
Outstanding, Weighted Average Remaining Contractual Life | 1 year 2 months 26 days | 1 year 3 months 21 days | 2 years 6 months 3 days |
Vested and expected to vest, Weighted Average Remaining Contractual Life | 1 year 2 months 26 days | 1 year 3 months 18 days | |
Exercisable, Weighted Average Remaining Contractual Life | 6 months 10 days | 10 months 17 days | |
Outstanding, Aggregate Intrinsic Value | $ 3,607 | $ 5,581 | $ 4,264 |
Vested and expected to vest, Aggregate Intrinsic Value | 3,580 | 5,524 | |
Exercisable, Aggregate Intrinsic Value | $ 2,541 | $ 4,524 |
Share-based Compensation - Sc_2
Share-based Compensation - Schedule of Fair Value of Each Option Granted Estimated Using Binomial Model Assumption (Detail) - Incentive Shares Plan [Member] - ¥ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate, minimum | 0.60% | |
Risk-free interest rate, maximum | 2.62% | |
Expected life (in years) | 5 years | 5 years |
Expected dividend yield | 0.00% | 0.00% |
Expected volatility, minimum | 48.61% | 38.01% |
Exercise multiple | ¥ 2.8 | |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise multiple | ¥ 2.2 | |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise multiple | ¥ 2.8 |
Share-based compensation - Summ
Share-based compensation - Summary of Restricted Stock Units Activities Under All Incentive Plans (Detail) - Restricted Stock Units (RSUs) [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of RSUs unvested at beginning of period | 12,023,795 | |
Number of RSUs, granted | 22,322,425 | 71,935,155 |
Number of RSUs, vested | (15,183,045) | (3,916,645) |
Number of RSUs, Canceled/forfeited | (10,052,130) | (4,211,810) |
Number of RSUs unvested at end of period | 72,917,745 | 75,830,495 |
Weighted-average grant date fair value at beginning of period | $ 0.4290 | $ 0.9880 |
Weighted-average grant date fair value, granted | 0.7675 | 0.3551 |
Weighted-average grant date fair value, vested | 0.4803 | 0.8144 |
Weighted-average grant date fair value, Canceled/forfeited | 0.4644 | 0.6760 |
Weighted-average grant date fair value at end of period | $ 0.5452 | $ 0.4290 |
Net profit per share - Schedule
Net profit per share - Schedule of Computation of Earnings Per Share (Detail) ¥ / shares in Units, $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥)¥ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Net profit attributable to FinVolution Group's ordinary shareholders | ¥ 2,508,947,000 | $ 393,708 | ¥ 1,972,700,000 | ¥ 2,372,850,000 |
Denominator: | ||||
Weighted average number of ordinary shares outstanding - basic | 1,420,870,790 | 1,420,870,790 | 1,477,162,991 | 1,525,814,189 |
Net profit per share attributable to FinVolution Group's ordinary shareholders - basic | (per share) | ¥ 1.77 | $ 0.28 | ¥ 1.34 | ¥ 1.56 |
Net profit attributable to FinVolution Group's ordinary shareholders | ¥ | ¥ 2,508,947,000 | ¥ 1,972,700,000 | ¥ 2,372,850,000 | |
Weighted average number of ordinary shares outstanding - diluted | 1,482,501,832 | 1,482,501,832 | 1,491,325,420 | 1,552,423,060 |
Net profit per share attributable to FinVolution Group's ordinary shareholders - diluted | ¥ | ¥ 1,690 | ¥ 1,320 | ¥ 1,530 | |
Employee Stock Option [Member] | ||||
Denominator: | ||||
Ordinary shares issuable using treasury stock method | 8,495,974 | 8,495,974 | 9,801,862 | 23,831,652 |
Restricted Stock Units (RSUs) [Member] | ||||
Denominator: | ||||
Ordinary shares issuable using treasury stock method | 53,135,068 | 53,135,068 | 4,360,567 | 2,777,219 |
Leases - Summary of lease cost
Leases - Summary of lease cost (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Lease, Cost [Abstract] | ||
Amortization of right-of-use assets | ¥ 30,261 | ¥ 41,377 |
Interest of lease liabilities | 1,695 | 3,276 |
Expenses for short-term leases within 12 months | 5,911 | 7,526 |
Total lease cost | ¥ 37,867 | ¥ 52,179 |
Leases - Summary of supplementa
Leases - Summary of supplemental cash flow (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating lease payments | ¥ 36,066 | ¥ 45,682 |
Leases - Summary of weighted-av
Leases - Summary of weighted-average remaining lease term and discount rate (Detail) | Dec. 31, 2021 | Dec. 31, 2020 |
Weighted-average remaining lease term | ||
Operating leases | 3 years 3 months 18 days | 1 year 8 months 12 days |
Weighted-average discount rate | ||
Operating leases | 4.75% | 4.75% |
Leases - Schedule of Informatio
Leases - Schedule of Information about movement of Right of use assets (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | |
Leases [Abstract] | |||
Beginning balance | ¥ 54,968 | ¥ 95,786 | |
Recognition of of additional leasing contract | 24,431 | 559 | |
Amortization of right of use assets | (30,261) | (41,377) | |
Ending balance | ¥ 49,138 | $ 7,711 | ¥ 54,968 |
Leases - Schedule of Informat_2
Leases - Schedule of Information about movement of Leasing Liabilities (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Schedule Of Information About Movement Of Leasing Liabilities [Abstract] | ||||
Beginning balance | ¥ 43,296 | ¥ 85,143 | ||
Recognition of of additional leasing contract | 24,431 | 559 | ||
Interest of lease liabilities | 1,695 | 3,276 | ||
Leasing payment | (36,066) | $ (5,660) | (45,682) | ¥ (51,370) |
Ending balance | ¥ 33,356 | ¥ 43,296 | ¥ 85,143 |
Leases - Summary of maturities
Leases - Summary of maturities of lease liabilities (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Lessee Operating Lease Liability Maturity [Abstract] | |||
2022 | ¥ 17,111 | ||
2023 | 6,308 | ||
2024 | 4,476 | ||
2025 | 4,700 | ||
2026 | 3,655 | ||
Total undiscounted lease payments | 36,250 | ||
Less: Imputed interest | (2,894) | ||
Total lease liabilities | ¥ 33,356 | ¥ 43,296 | ¥ 85,143 |
Commitments and Contingencies
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 11, 2021 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Ownership percentage | 50.00% | |
Litigation settlement, expense | $ 9,000 | |
Litigation settlement, company borne | 1,350 | |
Loss contingency, receivable | $ 7,650 |
Restricted Net Assets - Additio
Restricted Net Assets - Additional Information (Detail) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2021CNY (¥) | |
Restrictions for Consolidated and Unconsolidated Subsidiaries [Abstract] | |
Percentage of annual appropriations net of tax income prior to payment of dividends as the statutory general reserve | 10.00% |
Restricted net assets | ¥ 7,796,303 |
Percentage of restricted net assets | 72.80% |
Condensed Financial Informati_3
Condensed Financial Information of the Parent Company - Schedule of Condensed Balance Sheet (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Jan. 01, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Assets | ||||||
Cash and cash equivalents | ¥ 4,418,127 | $ 693,301 | ¥ 2,632,174 | |||
Prepaid expenses and other assets | 1,899,438 | 298,063 | 1,050,009 | |||
Investment in subsidiaries and VIEs | 132,377 | 129,622 | ||||
Total assets | 18,138,551 | 2,846,335 | 14,882,185 | |||
Liabilities and Shareholders' Equity | ||||||
Accrued expenses and other liabilities | 638,832 | 100,247 | 509,002 | |||
Contract liability | 8,436 | 1,324 | 3,447 | |||
Total liabilities | 7,428,941 | 1,165,762 | 6,451,855 | |||
Shareholders' equity : | ||||||
Additional paid-in capital | 5,694,733 | 893,628 | 5,659,990 | |||
Treasury stock | (324,171) | (50,870) | (401,621) | |||
Statutory reserves | 610,403 | 95,786 | 458,058 | |||
Accumulated other comprehensive income | (16,769) | (2,630) | (5,142) | |||
Retained earnings | 4,690,951 | 736,113 | 2,651,918 | ¥ 883,000 | ||
Total shareholders' equity | 10,709,610 | 1,680,573 | 8,430,330 | ¥ 8,011,480 | ¥ 5,985,738 | |
Total liabilities and shareholders' equity | 18,138,551 | 2,846,335 | 14,882,185 | |||
Parent Company [Member] | ||||||
Assets | ||||||
Cash and cash equivalents | 38,231 | 5,999 | 28,435 | |||
Prepaid expenses and other assets | 2,795 | 439 | 1,247 | |||
Amounts due from Group companies | 694,123 | 108,923 | 1,302,606 | |||
Investment in subsidiaries and VIEs | 10,574,557 | 1,659,379 | 7,949,999 | |||
Total assets | 11,309,706 | 1,774,740 | 9,282,287 | |||
Liabilities and Shareholders' Equity | ||||||
Accrued expenses and other liabilities | 5,647 | 885 | 32,571 | |||
Contract liability | 1,610 | 253 | 3,447 | |||
Amounts due to Group companies | 647,199 | 101,559 | 882,963 | |||
Total liabilities | 654,456 | 102,697 | 918,981 | |||
Shareholders' equity : | ||||||
Additional paid-in capital | 5,694,733 | 893,628 | 5,659,990 | |||
Treasury stock | (324,171) | (50,870) | (401,621) | |||
Statutory reserves | 610,403 | 95,786 | 458,058 | |||
Accumulated other comprehensive income | (16,769) | (2,630) | (5,142) | |||
Retained earnings | 4,690,951 | 736,113 | 2,651,918 | |||
Total shareholders' equity | 10,655,250 | 1,672,043 | 8,363,306 | |||
Total liabilities and shareholders' equity | 11,309,706 | 1,774,740 | 9,282,287 | |||
Class A Ordinary Shares [Member] | ||||||
Shareholders' equity : | ||||||
Ordinary shares | 64 | 10 | 64 | |||
Class A Ordinary Shares [Member] | Parent Company [Member] | ||||||
Shareholders' equity : | ||||||
Ordinary shares | 64 | 10 | 64 | |||
Class B Ordinary Shares [Member] | ||||||
Shareholders' equity : | ||||||
Ordinary shares | 39 | 6 | 39 | |||
Class B Ordinary Shares [Member] | Parent Company [Member] | ||||||
Shareholders' equity : | ||||||
Ordinary shares | ¥ 39 | $ 6 | ¥ 39 |
Condensed Financial Informati_4
Condensed Financial Information of the Parent Company - Schedule of Condensed Balance Sheet (Parenthetical) (Detail) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Consolidated Balance Sheet Statements Captions [Line Items] | ||
Ordinary stock, par value | $ 0.00001 | |
Ordinary stock, authorized | 4,266,159,600 | |
Ordinary stock, shares issued | 1,550,071,169 | |
Class A Ordinary Shares [Member] | ||
Consolidated Balance Sheet Statements Captions [Line Items] | ||
Ordinary stock, par value | $ 0.00001 | $ 0.00001 |
Ordinary stock, authorized | 10,000,000,000 | 10,000,000,000 |
Ordinary stock, shares issued | 970,871,169 | 969,071,169 |
Ordinary Stock, shares outstanding | 854,591,404 | 824,164,599 |
Class B Ordinary Shares [Member] | ||
Consolidated Balance Sheet Statements Captions [Line Items] | ||
Ordinary stock, par value | $ 0.00001 | $ 0.00001 |
Ordinary stock, authorized | 10,000,000,000 | 10,000,000,000 |
Ordinary stock, shares issued | 579,200,000 | 581,000,000 |
Ordinary Stock, shares outstanding | 579,200,000 | 581,000,000 |
Parent Company [Member] | ||
Consolidated Balance Sheet Statements Captions [Line Items] | ||
Treasury stock,shares | 116,279,765 | 144,906,570 |
Parent Company [Member] | Class A Ordinary Shares [Member] | ||
Consolidated Balance Sheet Statements Captions [Line Items] | ||
Ordinary stock, par value | $ 0.00001 | $ 0.00001 |
Ordinary stock, authorized | 10,000,000,000 | 10,000,000,000 |
Ordinary stock, shares issued | 970,871,169 | 969,071,169 |
Ordinary Stock, shares outstanding | 854,591,404 | 824,164,599 |
Parent Company [Member] | Class B Ordinary Shares [Member] | ||
Consolidated Balance Sheet Statements Captions [Line Items] | ||
Ordinary stock, par value | $ 0.00001 | $ 0.00001 |
Ordinary stock, authorized | 10,000,000,000 | 10,000,000,000 |
Ordinary stock, shares issued | 581,000,000 | 581,000,000 |
Ordinary Stock, shares outstanding | 579,200,000 | 579,200,000 |
Condensed Financial Informati_5
Condensed Financial Information of the Parent Company - Schedule of Comprehensive income (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Operating expenses | ||||
General and administrative expenses | ¥ (518,245) | $ (81,324) | ¥ (461,116) | ¥ (435,816) |
Profits from operations | ||||
Other income, net | 122,368 | 19,202 | 116,469 | 136,491 |
Net profit | 2,508,947 | 393,708 | 1,972,700 | 2,372,850 |
Net profit attributable to ordinary shareholders | 2,508,947 | 1,972,700 | 2,372,850 | |
Parent Company [Member] | ||||
Operating expenses | ||||
General and administrative expenses | (18,617) | (2,921) | (20,720) | (25,590) |
Profits from operations | ||||
Other income, net | 1,502 | 236 | 2,158 | 7,898 |
Income from subsidiaries and VIEs | 2,526,062 | 396,394 | 1,991,262 | 2,390,542 |
Net profit | 2,508,947 | 393,709 | 1,972,700 | 2,372,850 |
Net profit attributable to ordinary shareholders | ¥ 2,508,947 | $ 393,709 | ¥ 1,972,700 | ¥ 2,372,850 |
Condensed Financial Informati_6
Condensed Financial Information of the Parent Company - Schedule of Cash Flow Statement (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash provided by (used in) operating activities | ¥ 630,227 | $ 98,896 | ¥ 2,206,909 | ¥ (215,522) |
Net cash provided by (used in) investing activities | 1,994,845 | 313,035 | 1,041,496 | (828,219) |
Net cash provided by (used in) financing activities | (239,800) | (37,631) | (3,091,279) | 1,749,512 |
Parent Company [Member] | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash provided by (used in) operating activities | (45,587) | (7,154) | (6,282) | 8,474 |
Collection of loans from Group companies | 846,737 | 132,871 | 557,936 | 86,471 |
Cash paid as loans extended to Group companies | (238,254) | (37,387) | 0 | 0 |
Net cash provided by (used in) investing activities | 608,483 | 95,484 | 557,936 | 86,471 |
Repayment of loans to Group companies | (839,719) | (131,770) | 0 | 0 |
Cash received as loans from Group companies | 603,955 | 94,774 | 0 | 0 |
Other financing activities | (310,221) | (48,681) | (636,936) | (401,400) |
Net cash provided by (used in) financing activities | (545,985) | (85,677) | (636,936) | (401,400) |
Parent Company [Member] | Third party revenues [Member] | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash provided by (used in) operating activities | ¥ (45,587) | $ (7,154) | ¥ (6,282) | ¥ 8,474 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Mar. 15, 2022 - Subsequent Event [Member] | $ / shares | ¥ / shares |
Subsequent Event [Line Items] | ||
Dividend , per share | (per share) | $ 0.205 | ¥ 1.31 |
Dividends Payable, date to be paid | May 6, 2022 | |
Dividends Payable, date of record | Apr. 13, 2022 |