Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2022 shares | |
Document Information Line Items | |
Entity Registrant Name | CNFinance Holdings Limited |
Trading Symbol | CNF |
Document Type | 20-F |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | 1,371,643,240 |
Amendment Flag | false |
Entity Central Index Key | 0001733868 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Document Period End Date | Dec. 31, 2022 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | true |
Entity Shell Company | false |
Entity Ex Transition Period | true |
ICFR Auditor Attestation Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-38726 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 44/F, Tower G |
Entity Address, Address Line Two | No. 16 Zhujiang Dong Road |
Entity Address, Address Line Three | Tianhe District |
Entity Address, City or Town | Guangzhou City |
Entity Address, Postal Zip Code | 510620 |
Entity Address, Country | CN |
Security Exchange Name | NYSE |
Title of 12(b) Security | Ordinary shares, par value US$0.0001 per share |
Entity Interactive Data Current | Yes |
Document Accounting Standard | U.S. GAAP |
Auditor Firm ID | 1186 |
Auditor Name | KPMG Huazhen LLP |
Auditor Location | Guangzhou, China |
Business Contact | |
Document Information Line Items | |
Entity Address, Address Line One | 44/F, Tower G |
Entity Address, City or Town | Guangzhou City |
Entity Address, Postal Zip Code | 510620 |
Entity Address, Country | CN |
Contact Personnel Name | Bin Zhai, Chief Executive Officer and Chairman |
City Area Code | +86 |
Local Phone Number | 20-62316688 |
Contact Personnel Email Address | ir@cashchina.cn |
Consolidated Balance Sheets
Consolidated Balance Sheets - CNY (¥) | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash, cash equivalents and restricted cash (including amounts of the consolidated VIEs of RMB1,516,044,449 and 1,265,876,948 as of December 31, 2021 and 2022, respectively) | ¥ 1,772,184,145 | ¥ 2,231,437,361 |
Loans principal, interest and financing service fee receivables (including amounts of the consolidated VIEs of RMB9,352,354,803 and 8,911,163,298 as of December 31, 2021 and 2022, respectively) | 9,456,802,188 | 9,412,717,366 |
Allowance for credit losses (including amounts of the consolidated VIEs of RMB962,821,917 and 729,743,207 as of December 31, 2021 and 2022, respectively) | 763,996,187 | 975,850,851 |
Net loans principal, interest and financing service fee receivables (including amounts of the consolidated VIEs of RMB8,389,532,886 and 8,181,420,091 as of December 31, 2021 and 2022, respectively) | 8,692,806,001 | 8,436,866,515 |
Loans held-for-sale (including amounts of the consolidated VIEs of RMB699,730,547 and 1,122,309,299 as of December 31, 2021 and 2022, respectively) | 1,844,438,134 | 1,095,412,086 |
Investment securities (including amounts of the consolidated VIEs of RMB709,255,924 and 205,711,749 as of December 31, 2021 and 2022, respectively) | 518,644,561 | 1,088,044,211 |
Property and equipment | 2,284,262 | 3,041,946 |
Intangible assets and goodwill | 3,487,733 | 4,009,372 |
Deferred tax assets (including amounts of the consolidated VIEs of RMB6,903 and nil as of December 31, 2021 and 2022, respectively) | 76,904,707 | 21,068,094 |
Deposits (including amounts of the consolidated VIEs of RMB152,998,895 and 137,661,130 as of December 31, 2021 and 2022, respectively) | 145,093,301 | 156,954,100 |
Right-of-use assets (including amounts of the consolidated VIEs of RMB98,238 and 309,531 as of December 31, 2021 and 2022, respectively) | 29,777,357 | 16,196,806 |
Guaranteed assets (including amounts of the consolidated VIEs of RMB917,426,116 and 716,129,457 as of December 31, 2021 and 2022, respectively) | 726,410,799 | 928,314,725 |
Other assets (including amounts of the consolidated VIEs of RMB550,145 and 19,878,136 as of December 31, 2021 and 2022, respectively) | 669,888,900 | 404,826,131 |
Total assets | 14,481,919,900 | 14,386,171,347 |
Interest-bearing borrowings | ||
Borrowings under agreements to repurchase | 112,642,010 | 45,250,000 |
Other borrowings (including amounts of the consolidated VIEs of RMB8,041,816,663 and 7,727,559,337 as of December 31, 2021 and 2022, respectively) | 7,727,559,337 | 8,041,892,080 |
Accrued employee benefits (including amounts of the consolidated VIEs of RMB111,980 and 61,602 as of December 31, 2021 and 2022, respectively) | 31,644,590 | 24,223,752 |
Income taxes payable (including amounts of the consolidated VIEs of RMB733,159 and 902,734 as of December 31, 2021 and 2022, respectively) | 186,901,268 | 154,957,182 |
Deferred tax liabilities (including amounts of the consolidated VIEs of nil and RMB15,863 as of December 31, 2021 and 2022, respectively) | 73,752,022 | 151,828,860 |
Lease liabilities (including amounts of the consolidated VIEs of RMB98,238 and 246,081 as of December 31, 2021 and 2022, respectively) | 28,583,475 | 15,521,022 |
Credit risk mitigation position | 1,354,653,070 | 1,348,449,426 |
Other liabilities (including amounts of the consolidated VIEs of RMB125,172,432 and 144,061,166 as of December 31, 2021 and 2022, respectively) | 1,028,470,668 | 785,761,285 |
Total liabilities | 10,544,206,440 | 10,567,883,607 |
Ordinary shares (USD0.0001 par value; 3,800,000,000 shares authorized; 1,559,576,960 shares issued and 1,371,643,240 shares outstanding as of December 31, 2021 and December 31, 2022, respectively) | 916,743 | 916,743 |
Treasury stock | (87,631,475) | |
Additional paid-in capital | 1,024,203,515 | 1,018,429,249 |
Retained earnings | 2,958,716,295 | 2,824,335,263 |
Accumulated other comprehensive losses | (10,211,997) | (25,393,515) |
Total equity attributable to owners of the Company | 3,885,993,081 | 3,818,287,740 |
Non-controlling interests | 51,720,379 | |
Total shareholders’ equity | 3,937,713,460 | 3,818,287,740 |
Total liabilities and shareholders’ equity | ¥ 14,481,919,900 | ¥ 14,386,171,347 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) | 12 Months Ended | |
Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2021 CNY (¥) shares | |
Statement of Financial Position [Abstract] | ||
Cash, cash equivalents and restricted cash | ¥ 1,265,876,948 | ¥ 1,516,044,449 |
Loans principal, interest and financing service fee receivables | 8,911,163,298 | 9,352,354,803 |
Allowance for credit losses | 729,743,207 | 962,821,917 |
Net loans principal, interest and financing service fee receivables | 8,181,420,091 | 8,389,532,886 |
Loans held-for-sale | 1,122,309,299 | 699,730,547 |
Investment securities | 205,711,749 | 709,255,924 |
Deferred tax assets | 6,903 | |
Deposits | 137,661,130 | 152,998,895 |
Right-of-use assets | 309,531 | 98,238 |
Guaranteed assets | 716,129,457 | 917,426,116 |
Other assets | 19,878,136 | 550,145 |
Other borrowings | 7,727,559,337 | 8,041,816,663 |
Accrued employee benefits | 61,602 | 111,980 |
Income taxes payable | 902,734 | 733,159 |
Deferred tax liabilities | 15,863 | |
Lease liabilities | 246,081 | 98,238 |
Other liabilities | ¥ 144,061,166 | ¥ 125,172,432 |
Ordinary shares, shares authorized (in Shares) | shares | 3,800,000,000 | 3,800,000,000 |
Ordinary shares, shares issued (in Shares) | shares | 1,559,576,960 | 1,559,576,960 |
Ordinary shares, shares outstanding (in Shares) | shares | 1,371,643,240 | 1,371,643,240 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Interest and fees income | ¥ 1,731,352,575 | ¥ 1,815,773,980 | ¥ 1,854,823,409 |
Interest expenses on interest-bearing borrowings | (784,776,537) | (775,565,615) | (731,315,365) |
Net interest and fees income | 946,576,038 | 1,040,208,365 | 1,123,508,044 |
Net revenue under the commercial bank partnership model | 57,551,005 | 107,072 | |
Collaboration cost for sales partners | (320,826,549) | (425,736,650) | (415,104,428) |
Net interest and fees income after collaboration cost | 683,300,494 | 614,578,787 | 708,403,616 |
Provision for credit losses | (238,084,863) | 298,467,893 | (77,348,480) |
Net interest and fees income after collaboration cost and provision for credit losses | 445,215,631 | 913,046,680 | 631,055,136 |
Realized gains on sales of investments, net | 20,566,672 | 19,170,436 | 20,153,659 |
Net losses on sales of loans | (44,554,948) | (479,584,775) | (50,606,487) |
Other gains, net | 89,914,038 | 22,061,842 | 9,760,472 |
Total non-interest (losses)/income | 65,925,762 | (438,352,497) | (20,692,356) |
Operating expenses | |||
Employee compensation and benefits | (197,035,872) | (211,168,519) | (190,374,014) |
Share-based compensation expenses | (5,774,266) | (18,766,367) | (62,073,367) |
Taxes and surcharges | (35,890,761) | (35,729,101) | (49,452,609) |
Operating lease cost | (13,966,943) | (14,764,364) | (21,719,042) |
Other expenses | (85,889,497) | (100,500,388) | (124,042,182) |
Total operating expenses | (338,557,339) | (380,928,739) | (447,661,214) |
Income before income tax expense | 172,584,054 | 93,765,444 | 162,701,566 |
Income tax expense | (37,232,643) | (28,557,980) | (47,849,040) |
Net income | ¥ 135,351,411 | ¥ 65,207,464 | ¥ 114,852,526 |
Earnings per share | |||
Basic (in Yuan Renminbi per share) | ¥ 0.1 | ¥ 0.05 | ¥ 0.08 |
Diluted (in Yuan Renminbi per share) | ¥ 0.09 | ¥ 0.05 | ¥ 0.08 |
Other comprehensive (losses)/income | |||
Net unrealized losses on investment securities | ¥ (171,040) | ||
Foreign currency translation adjustment | 15,181,518 | (6,936,969) | (16,166,094) |
Comprehensive income | 150,532,929 | 58,270,495 | 98,515,392 |
Less: net income attributable to non-controlling interests | 970,379 | ||
Total comprehensive income attributable to ordinary shareholders | ¥ 149,562,550 | ¥ 58,270,495 | ¥ 98,515,392 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders’ Equity - CNY (¥) | Ordinary shares | Treasury Stock | Additional paid-in capital | Accumulated other comprehensive (losses)/ income | Retained earnings | Non-controlling interest | Total | |
Balance at Dec. 31, 2019 | ¥ 937,589,515 | ¥ (2,119,412) | ¥ 2,662,145,649 | ¥ 3,598,532,495 | ||||
Balance (in Shares) at Dec. 31, 2019 | 916,743 | |||||||
Cumulative effect from change in accounting policies | [1] | (17,870,376) | (17,870,376) | |||||
Cumulative effect from change in accounting policies (in Shares) | [1] | |||||||
Net income | 114,852,526 | 114,852,526 | ||||||
Foreign currency translation adjustment | (16,166,094) | (16,166,094) | ||||||
Unrealized losses on investment securities | (171,040) | (171,040) | ||||||
Share-based compensation | 62,073,367 | 62,073,367 | ||||||
Balance at Dec. 31, 2020 | 999,662,882 | (18,456,546) | 2,759,127,799 | 3,741,250,878 | ||||
Balance (in Shares) at Dec. 31, 2020 | 916,743 | |||||||
Net income | 65,207,464 | 65,207,464 | ||||||
Foreign currency translation adjustment | (6,936,969) | (6,936,969) | ||||||
Share-based compensation | 18,766,367 | 18,766,367 | ||||||
Balance at Dec. 31, 2021 | 1,018,429,249 | (25,393,515) | 2,824,335,263 | 3,818,287,740 | ||||
Balance (in Shares) at Dec. 31, 2021 | 916,743 | |||||||
Repurchase of treasury stock | (87,631,475) | (87,631,475) | ||||||
Net income | 134,381,032 | 970,379 | 135,351,411 | |||||
Foreign currency translation adjustment | 15,181,518 | 15,181,518 | ||||||
Share-based compensation | 5,774,266 | 5,774,266 | ||||||
Contributions from non-controlling interests | 50,750,000 | 50,750,000 | ||||||
Balance at Dec. 31, 2022 | ¥ (87,631,475) | ¥ 1,024,203,515 | ¥ (10,211,997) | ¥ 2,958,716,295 | ¥ 51,720,379 | ¥ 3,937,713,460 | ||
Balance (in Shares) at Dec. 31, 2022 | 916,743 | |||||||
[1]We adopted CECL effective January 1, 2020. For additional information, see Note 2 (Summary of Significant Accounting Policies) for more information. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Cash Flows [Abstract] | |||
Net income | ¥ 135,351,411 | ¥ 65,207,464 | ¥ 114,852,526 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for credit losses | 238,084,863 | (298,467,893) | 77,348,480 |
Depreciation and amortization | 2,244,279 | 3,821,788 | 6,047,226 |
Share-based compensation expenses | 5,774,266 | 18,766,367 | 62,073,367 |
Net losses on disposal of property and equipment | 30,742 | 328,262 | 2,868 |
Foreign exchange losses/(gains) | (7,355,135) | (786,080) | 5,345,004 |
Deferred tax benefit | (133,913,450) | (190,009,905) | (94,389,779) |
Net losses on sale of loans | 44,554,948 | 479,584,775 | 50,606,487 |
Profit and loss arising from fair value changes | 362,855 | (1,101,669) | (56,773) |
Loans held-for-sale: | |||
Originations and purchases | (585,434,771) | (453,880,066) | (152,062,194) |
Proceeds from sales and paydowns of loans originally classified as held-for-sale | 1,549,993,492 | 1,006,876,340 | 637,716,580 |
Changes in operating assets and liabilities: | |||
Deposits | 11,860,799 | (42,902,327) | 19,461,259 |
Guarantee deposits | (168,790,845) | (74,680,000) | |
Credit risk mitigation position | 6,203,644 | 138,720,288 | 281,027,037 |
Other operating assets | (167,193,614) | (30,875,632) | (28,446,434) |
Other operating liabilities | (12,520,372) | 69,090,594 | 140,051,328 |
Net cash provided by operating activities | 919,253,112 | 689,692,306 | 1,119,576,982 |
Cash flows from investing activities: | |||
Loans originated, net of principal collected | (2,556,903,189) | (2,839,526,077) | (89,215,328) |
Proceeds from sales of investment securities | 9,002,171,357 | 8,956,466,358 | 7,187,477,436 |
Proceeds from disposal of non-marketable equity securities | 10,000,000 | ||
Proceeds from disposal of subsidiaries | 50,000,000 | ||
Proceeds from disposal of property and equipment and intangible assets | 319,539 | 550,673 | 2,159,345 |
Proceeds from sales of loans | 1,088,433,960 | 1,022,025,709 | 378,308,227 |
Purchases of investment securities | (8,567,330,149) | (9,496,275,212) | (6,951,457,436) |
Purchases of non-marketable equity securities | (25,000,000) | ||
Purchases of property, equipment and intangible assets | (89,889,341) | (3,805,766) | (3,221,401) |
Net cash provided by/(used in) investing activities | (1,098,197,823) | (2,350,564,315) | 524,050,843 |
Cash flows from financing activities: | |||
Proceeds from interest-bearing borrowings | 6,082,283,165 | 7,068,023,900 | 6,014,983,918 |
Proceeds from contributions from non-controlling shareholders | 50,750,000 | ||
Repurchase of ordinary shares | (87,631,475) | ||
Repayment of interest-bearing borrowings | (6,333,557,940) | (5,135,443,638) | (7,382,122,623) |
Net cash (used in)/provided by financing activities | (288,156,250) | 1,932,580,262 | (1,367,138,705) |
Net increase/(decrease) in cash, cash equivalents and restricted cash | (467,100,961) | 271,708,253 | 276,489,120 |
Cash, cash equivalents and restricted cash at the beginning of year | 2,231,437,361 | 1,960,922,758 | 1,705,356,424 |
Effect of exchange rate change on cash, cash equivalents and restricted cash | 7,847,745 | (1,193,650) | (20,922,786) |
Cash, cash equivalents and restricted cash at the end of year | 1,772,184,145 | 2,231,437,361 | 1,960,922,758 |
Supplemental disclosures of cash flow information: | |||
Income taxes paid | 139,205,940 | 153,494,369 | 46,378,568 |
Interest expense paid | ¥ 792,794,985 | ¥ 832,735,000 | ¥ 728,846,965 |
Description of Business, Organi
Description of Business, Organization, and Basis of Presentation | 12 Months Ended |
Dec. 31, 2022 | |
Description of Business, Organization, and Basis of Presentation [Abstract] | |
DESCRIPTION OF BUSINESS, ORGANIZATION, AND BASIS OF PRESENTATION | 1. DESCRIPTION OF BUSINESS, ORGANIZATION, AND BASIS OF PRESENTATION CNFinance Holdings Limited (“CNFinance”), through its controlled subsidiaries and consolidated variable interest entities (collectively, referred to hereinafter as the “Group”) in the People’s Republic of China (“PRC”), primarily provides micro credit loan services for micro and small-enterprise (“MSE”) owners, loan facilitation and post-facilitation and guarantee services for the commercial bank, and loan lending agency service for financial institutions. The Group’s main funding resources are equity and borrowings from third parties. The loans are granted through its licensed micro credit subsidiaries in Beijing, Shenzhen and Chongqing directly, or the structured funds funded with the Group as general partners. Through the Group’s network of sales team and branch offices, prospective MSE borrowers are referred to the licensed micro credit subsidiaries or the structured funds (“the traditional facilitation model”). Home equity loans were secured by residential or commercial real estate as of December 31, 2022. In December 2018, the Group began to explore a new collaboration model to mitigate credit risks (“collaboration model”) and started to record the business under this model. The collaboration model is different from the traditional facilitation model by adding a collaboration relationship, which involves sales partners for introducing borrowers and providing a certain level of guarantee of repayment for loans recommended. Under such model, the Group is able to develop a financial services platform that matches various parties to lend resources at competitive rates. Those parties include sales partners who introduce borrowers from particular jurisdictions, trust companies that administer funds, and the loan borrowers who has financial needs for their business operations. The sales partners are nationwide mid-or-small companies that have local risk assessment capabilities. The collaboration model requires the sales partners to place a security deposit called credit risk mitigation positions which could be confiscated by the Group when loans are defaulted. The loan borrowers who are introduced by the sales partners are MSE owners who have properties that can be used as collateral. Under the collaboration model, in the event of loans issued to the borrowers acquired under such collaboration model are in default, the respective sales partners who introduced such borrowers will share the credit risks with the Group by choosing from the following options, including (i)(1) full repayment to the Group for the total unpaid principal and accrued and overdue interests under the respective loan agreement on behalf of the borrower and acquiring respective credit rights, (i)(2) repayment in instalments to the Group for the total unpaid principal and accrued and overdue interests under the respective loan agreement on behalf of the borrower and acquiring respective credit rights under each instalments; (ii) repayment to the Group for the unpaid principal and accrued and overdue interests under the respective loan agreement on behalf of the borrower, and if the borrower pays the payments under the loan agreement, the repayment by the sales partner on behalf of the borrower will be refunded to the sales partner; or (iii) relinquishing the respective credit risk mitigation positions (“CRMPs”) for such loan. The Group has started to collaborate with commercial banks since 2021 and such collaboration grew and scaled in the second half of 2022. Under the commercial bank partnership model, the Group provides loan facilitation services (covering matching of commercial banks to borrowers and facilitating the execution of loan agreement between commercial banks and borrowers) and post-facilitation services (covering cash processing services and collection services), and guarantee services for the off–balance sheet loans. Basis of preparation The consolidated financial statements are prepared in accordance with U.S. Generally Accepted Accounting Principles (“U.S. GAAP”). Investment in significant subsidiaries for the year ended December 31, 2022 Place and date of incorporation/ Registered Issued and fully Percentage of equity Principal Name of company establishment capital paid up capital Direct Indirect activities Sincere Fame International Limited British Virgin Islands USD 1,230,434 USD 1,230,434 100 % - Investment Holding China Financial Services Hong Kong HKD 100,000,000 HKD 100,000,000 - 100 % Investment Holding Fanhua Chuang Li Information Technology (Shenzhen) Co., Ltd. the PRC HKD 400,000,000 HKD 400,000,000 - 100 % Investment Holding Shenzhen Fanhua United Investment Group the PRC RMB 250,000,000 RMB 250,000,000 - 100 % Investment Holding Guangzhou Anyu Mortgage Consulting Co., Ltd. the PRC RMB 2,220,000 RMB 2,220,000 - 100 % Micro credit Chongqing Fengjie Financial Advisory Co., Ltd. the PRC RMB 500,000 RMB 500,000 - 100 % Financial consultancy Guangzhou Chengze Information Technology Co., Ltd. the PRC RMB 3,000,000 RMB 3,000,000 - 100 % Software development and maintenance Chongqing Liangjiang New Area Fanhua Micro-credit Co., Ltd. the PRC USD 30,000,000 USD 30,000,000 - 100 % Micro credit Shenzhen Fanhua Micro-credit Co., Ltd. the PRC RMB 300,000,000 RMB 300,000,000 - 100 % Micro credit Place and date of incorporation/ Registered Issued and fully Percentage of equity Principal Name of company establishment capital paid up capital Direct Indirect activities Shenzhen Fanhua Fund Management Services the PRC RMB 5,000,000 RMB 5,000,000 - 100 % Company register service Guangzhou Heze Information Technology Co., Ltd. the PRC RMB 20,000,000 RMB 20,000,000 - 100 % Software development and maintenance Beijing Lianxin Chuanghui Information Technology Co., Ltd. the PRC HKD 10,000,000 HKD 10,000,000 - 100 % Software development and maintenance Shenzhen Fanlian Investment Co., Ltd. the PRC RMB 30,000,000 RMB 30,000,000 - 100 % Investment Holding Fanhua Financial Leasing (Shenzhen) Co., Ltd. 泛华融资租赁 深圳 有限公司 the PRC USD 10,000,000 USD 10,000,000 - 100 % Business Shenzhen Fanhua Chengyu Finance Service Co., Ltd. 深圳泛华诚誉金融配套 the PRC RMB 10,000,000 RMB 10,000,000 - 100 % Labor outsourcing services Beijing Fanhua Qilin Capital Management Co., Ltd. 北京泛华麒麟资本管理 the PRC RMB 100,000,000 RMB 10,000,000 - 96 % Asset Management Shijiazhuang Fanhua Financial Advisory 石家庄泛华财务咨询 the PRC RMB 2,000,000 - - 100 % Financial Consultancy Taizhou Fanhua Financial Advisory Co., Ltd. 泰州泛华财务咨询服务 the PRC RMB 500,000 - - 100 % Financial Consultancy Xuzhou Shenfanlian Enterprise Management Co., Ltd. 徐州深泛联企业管理 the PRC RMB 10,000,000 - - 100 % Enterprise Management Place and date of incorporation/ Registered Issued and fully Percentage of Principal Name of company establishment capital paid up capital Direct Indirect activities Nantong Shenfanlian Enterprise Management Co., Ltd. the PRC RMB 5,000,000 - - 100 % Enterprise Management Baoding Fanjie Financial Advisory Co., Ltd. the PRC RMB 500,000 - - 100 % Financial Consultancy Shenzhen Fancheng Business Operation Management Partnership (Limited Partnership) the PRC RMB 500,000,000 RMB34,550,000 - 100 % Enterprise Management Fanxiaoxuan Cultural Media (Guangzhou) Co., Ltd. the PRC RMB 1,000,000 - - 100 % Enterprise Management Guangzhou Fanze Information Technology Co., Ltd. the PRC RMB 10,000,000 - - 100 % Software development and maintenance Langfang Fanhua Technology Co., Ltd. the PRC RMB 200,000 - - 100 % Software development and maintenance Shenyang Fanhua Financial Advisory Co., Ltd. the PRC RMB 1,000,000 - - 100 % Financial consultancy Luoyang Fanzhan Information technology Co., Ltd. the PRC RMB 500,000 - - 100 % Software development and maintenance Lanzhou Fanhua Enterprise Information Advisory Co., Ltd. the PRC RMB 200,000 - - 100 % Enterprise Management Yantai Shenzhen Fanlian Financial Advisory Co., Ltd. the PRC RMB 1,000,000 - - 100 % Financial consultancy Place and date of incorporation/ Registered Issued and fully Percentage of equity attributable to the Group Principal Name of company establishment capital paid up capital Direct Indirect activities Haikou Fanhua Financial Advisory Co., Ltd. the PRC RMB 1,000,000 - - 100 % Financial consultancy Ganzhou Shenzhen Fanlian Financial Advisory Co., Ltd. the PRC RMB 1,000,000 - - 100 % Financial consultancy Fanhua Jinfu (Foshan) Co., Ltd. the PRC RMB 200,000,000 - - 100 % Financial consultancy Huaian Fanhualian Economic Information Advisory Co., the PRC RMB 1,000,000 - - 100 % Financial consultancy Guangzhou Nansha Weisen Technology Co., Ltd the PRC RMB 500,000 - - 100 % Software development and maintenance Wuxi Shenzhen Fanlian Enterprise Management Co., Ltd. the PRC RMB 500,000 - - 100 % Enterprise Management Shenzhen Fanlian (Hangzhou) Financial Advisory Co., Ltd. the PRC RMB 1,000,000 - - 100 % Financial consultancy Ningbo Lianyi Technological Advisory Co., Ltd. the PRC RMB 50,000,000 - - 100 % Financial consultancy Variable interest entities (“VIEs”) An entity is a variable interest entity (VIE) if it meets the criteria outlined in Accounting Standards Codification (ASC) Topic 810, Consolidation, which are (i) the entity has equity that is insufficient to permit the entity to finance its activities without additional subordinated financial support from other parties; or (ii) the entity has equity investors that cannot make significant decisions about the entity’s operations or that do not absorb their proportionate share of the entity’s expected losses or expected returns. The Group consolidates a VIE when it has both the power to direct the activities that most significantly impact the VIE’s economic performance and a right to receive benefits or the obligation to absorb losses of the entity that could be potentially significant to the VIE (that is, the Group is the primary beneficiary). In addition to variable interests held in consolidated VIEs, the Group has variable interests in other VIEs that are not consolidated because the Group is not the primary beneficiary. However, these VIEs and all other unconsolidated VIEs are monitored by the Group to assess whether any events have occurred to cause its primary beneficiary status to change. All other entities not deemed to be VIEs with which the Group has involvement are evaluated for consolidation under other subtopics of ASC 810. In the normal course of business, the Group engages in a variety of activities with VIEs. The Group determines whether it is the primary beneficiary of a VIE at the time it becomes involved with the variable interest entity and reconsiders that conclusion continually. In evaluating whether the Group is the primary beneficiary, the Group evaluates its economic interests in the entity. If the Group is determined to be the primary beneficiary of a VIE, it must account for the VIE as a consolidated subsidiary. If the Group is determined not to be the primary beneficiary of a VIE, such VIE is not consolidated. The Group has segregated its involvement with VIEs between those VIEs which are consolidated and those VIEs which are not consolidated. Consolidated VIEs Structured funds The Group grants loans to customers through structured funds set up by trust companies. The assets of the structured funds can only be used to settle obligations of consolidated VIEs. The cash of structured funds represents that funds established by the institutional trust companies through segregated bank accounts, including structured funds that are partially funded by the Group’s own capital. The cash and cash equivalents of structured funds amounted to RMB1,515,820,737 and RMB1,157,244,687 as of December 31, 2021 and 2022 respectively can only be used to grant loans. The Group is general partner of the funds, promising the expected returns for limited partners, and providing credit strengthening on the loans to customers under the funds. The Group is also the manager of the funds, having the approval role for the loan origination and modification within the structured funds. The Group is the primary beneficiary of the funds as it has the power to direct the activities that most significantly impact the economic performance of the funds and it has obligation to absorb losses of the funds that could potentially be significant to the funds or the right to receive benefits from the funds that could potentially be significant to the funds. The structured funds are not taxpayers according to PRC tax law. The Group consolidates the structured funds as it is the primary beneficiary of the funds as of December 31, 2021 and 2022. The table sets forth the investments in the consolidated VIEs by the Group as of December 31, 2022. Name of structured funds Place and Principal Jinghua Structured Fund 6 the PRC Micro credit Bohai Trust Shenfanlian Micro Finance Structured Fund the PRC Micro credit Bohai Huihe SME Structured Fund the PRC Micro credit Zhongyuan Wealth Anhui Structured Fund 1 the PRC Micro credit Zhongyuan Wealth Anhui Structured Fund 2 the PRC Micro credit Beijing Fanhua Micro-credit Company Limited the PRC Micro credit Zhonghai Lanhai Structured Fund 1 the PRC Micro credit Bairui Hengyi No.613 Structured Fund the PRC Micro credit Bohai Trust No.1 Huiying Structured Fund the PRC Micro credit Bohai Trust No.2 Shenzhen Fanhua United Structured Fund the PRC Micro credit Jinghua Structured Fund 1 the PRC Micro credit Zhonghai Lanhai Structured Fund 1-2 the PRC Micro credit Zhonghai Lanhai Structured Fund 1-3 the PRC Micro credit Hunan Structured Fund 2019-1 the PRC Micro credit Hunan Structured Fund 2019-2 the PRC Micro credit Shaanxi International Xinglong Structured Fund 1-1 the PRC Micro credit Shaanxi International Xinglong Structured Fund 2-1 the PRC Micro credit Bairui Hengyi No.711 Structured Fund the PRC Micro credit Name of structured funds Place and Principal activities Zhonghai Lanhai Structured Fund 1-4 the PRC Micro credit Zhongyuan Wealth Anhui Structured Fund 49 the PRC Micro credit Bairui Hengyi No.724 Structured Fund the PRC Micro credit Zhonghai Lanhai Structured Fund 1-5 the PRC Micro credit Zhonghai Lanhai Structured Fund 1-6 the PRC Micro credit No. 50 Jinghua Structured Fund the PRC Micro credit Zhonghai Lanhai Structured Fund 1-1 the PRC Micro credit Shaanxi International Xinglong Structured Fund 22-1 the PRC Micro credit Zhonghai Lanhai Structured Fund 1-7 the PRC Micro credit No. 74 Jinghua Structured Fund the PRC Micro credit Hunan Structured Fund 2020-1 the PRC Micro credit Shaanxi International Xinglong Structured Fund 2-2 the PRC Micro credit No.103 Jinghua Structured Fund the PRC Micro credit Zhonghai Lanhai Structured Fund 30-X the PRC Micro credit Bohai Trust 2020 Pucheng No. 75 the PRC Micro credit Guomin Tianshu Structured Fund 2-1 the PRC Micro credit Shenzhen Fanshu Information Technology Advisory Partnership (Limited Partnership). the PRC Micro credit Shenzhen Lianshu Economic Information Technology Advisory Partnership (Limited Partnership) the PRC Micro credit Shenzhen Ruishu Economic Information Technology Advisory Partnership (Limited Partnership) the PRC Micro credit Name of structured funds Place and Principal Tianjin Ninghua Economic Information Advisory Partnership (Limited Partnership) the PRC Micro credit Shenzhen Shengshu Information Technology Advisory Partnership (Limited Partnership) the PRC Micro credit Shenzhen Chengshu Information Technology Advisory Partnership (Limited Partnership) the PRC Micro credit Shenzhen Xuanshu Information Technology Advisory Partnership (Limited Partnership) the PRC Micro credit Tianjin Juehua Economic Information Advisory Partnership (Limited Partnership) the PRC Micro credit Zhongrong Yuanshuo No.1 Structured Fund the PRC Micro credit Guangzhou Mingsheng Capital Management Partnership (Limited Partnership) 广州明晟资本管理合伙企业(有限合伙) The PRC January 11, 2022 Micro credit Tianjin Baihua Economic Information Advisory Partnership (Limited Partnership) the PRC Micro credit Bohai Trust 2021 Pucheng No. 83 the PRC Micro credit Zhongrong Yuanshuo No.2 Structured Fund the PRC Micro credit Shenzhen Huashu Information Technology Advisory Partnership (Limited Partnership) the PRC Micro credit Shenzhen Leshu Information Technology Advisory Partnership (Limited Partnership) the PRC Micro credit Zijin No.3 Business Acceleration Structured Fund the PRC Micro credit Zhongliang Hongrui No.1 Structured Fund the PRC Micro credit Zhongrong Yuanshuo No.3 Structured Fund the PRC Micro credit Tianjin Pinhua Economic Information Advisory Partnership (Limited Partnership) the PRC Micro credit The table sets forth the assets and liabilities of the consolidated VIEs included in the Group’s consolidated balance sheets after elimination of intercompany transactions and balances: December 31, December 31, RMB RMB Cash, cash equivalents and restricted cash 1,516,044,449 1,265,876,948 Loans principal, interest and financing service fees receivables 9,089,263,433 9,303,729,390 Investment securities 709,255,924 205,711,749 Deferred tax assets 6,903 - Other assets 1,071,073,393 873,978,254 Total assets 12,385,644,102 11,649,296,341 Interest-bearing borrowings 8,041,816,663 7,727,559,338 Income taxes payable 733,159 902,734 Deferred tax liabilities - 15,863 Other liabilities 125,382,650 144,368,848 Total liabilities 8,167,932,472 7,872,846,783 The table sets forth the results of operations of the VIEs included in the Group’s consolidated statements of comprehensive income: Year ended December 31 2020 2021 2022 RMB RMB RMB Revenue 1,731,934,459 1,298,055,332 1,437,398,097 Net income 658,400,554 579,742,472 381,273,670 The table sets forth the cash flows of the VIEs included in the Group’s consolidated statements of cash flows: Year ended December 31 2020 2021 2022 RMB RMB RMB Net cash used in operating activities (303,745,231 ) (1,571,552,463 ) 939,802,714 Net cash provided by/(used in) investing activities 692,705,844 (633,511,824 ) (812,396,284 ) Net cash (used in)/provided by financing activities (429,173,286 ) 2,682,931,827 (377,573,931 ) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Description of Business, Organization, and Basis of Presentation [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Principles of consolidation The accompanying consolidated financial statements include the financial statements of the Group. All intercompany transactions and balances have been eliminated in consolidation. The Group accounts for investments over which it has significant influence but not a controlling financial interest using the equity method of accounting. Non-controlling interests Non-controlling interests are recognized to reflect the portion of the equity of majority-owned subsidiaries and VIEs which is not attributable, directly or indirectly, to the controlling shareholder. (b) Currency translation for financial statements presentation The Group uses Renminbi (“RMB”) as its reporting currency. The United States Dollar (“USD”) is the functional currency of the Company incorporated in Cayman and the Group’s subsidiary Sincere Fame incorporated in British Virgin Islands, and the Hong Kong Dollar (“HKD”) is the functional currency of the Group’s subsidiary China Financial Services Group Limited incorporated in Hong Kong and the RMB is the functional currency of the Group’s PRC subsidiaries. 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’ deficit on the consolidated financial statements. The resulting exchange differences are recorded in the consolidated statements of comprehensive income/(losses). (c) Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include, allowance for loans principal, interest and financing service fee receivables, debt securities, guarantee assets, the valuation allowance for deferred tax assets, unrecognized tax benefits, the indefinite reinvestment assertion and the fair value of equity securities and share-based compensation. (d) Revenue recognition Interest and financing service fees on loans which are amortized over the contractual life of the related loans are recognized in consolidated statements of comprehensive income in accordance with ASC 310 using the effective interest method. The Group considered relevant accounting guidance and concluded that arrangements for its guarantee services provided for its off-balance sheet loans under commercial bank partnership model are out of scope of ASC 606, Revenue from Contracts with Customers. Therefore, “Gains/losses from guarantee liabilities” included in “Net revenue under commercial bank partnership model” on the Consolidated Statements of Comprehensive income should be accounted for in accordance with ASC 460, Guarantees. The other revenue streams under commercial bank partnership model are accounted for in accordance with ASC 606. The criteria of revenue recognition as they relate to each of the following major revenue generating activities are described below: (i) Interest and financing service fees on loans Interest and financing service fees on loans, which include financing service fees on loans, are collected from borrowers for loans and related services. Interest and financing service fees on loans include the amortization of any discount or premium or differences between the initial carrying amount of an interest-bearing asset and its amount at maturity calculated using the effective interest basis. The effective interest method is a method of calculating the amortized cost of a financial asset and of allocating the interest and financing service fees on loans over the years. The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument. When calculating the effective interest rate, the Group estimates cash flows considering all contractual terms of the financial instrument but does not consider future credit losses. Interest on the impaired assets is recognized using the rate of interest used to discount future cash flows. (ii) Interest income on debt securities Interest income on debt securities is calculated by applying the effective interest rate to the gross carrying amount of debt securities to unrelated companies plus any interest received from corporate debt securities. (iii) Revenue under commercial bank partnership model In accordance with the relevant guidance in ASC Topic 606, the amounts associated with guarantee services under commercial bank partnership model 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 under commercial bank partnership model (covering matching of commercial banks to borrowers and facilitating the execution of loan agreement between commercial banks and borrowers) and post-facilitation services under commercial bank partnership model (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 guarantee services under commercial bank partnership model, if any, which is recorded at fair value and recognized amortized during the guarantee term in accordance with ASC Topic 460. Then the remaining considerations are allocated to the loan facilitation under commercial bank partnership model and post-facilitation services under commercial bank partnership model 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 services is recognized as revenue upon execution of loan agreements between commercial banks 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. Remaining performance obligations represents the amount of the transaction price for which services have not been performed under post-facilitation services. The Group collects service fees monthly. The aggregate amounts of the transaction price allocated to performance obligations that are unsatisfied pertaining to post-origination services were RMB67.08million as of December 31, 2022, among which approximately 64.6% of the remaining performance obligations will be recognized over the following 12 months, and with the remainder recognized thereafter. (iv) Mortgage agency service revenue The Group earns mortgage agency service revenue from providing mortgage agency services to borrowers applying for a bank loan. Mortgage agency service fee is often received immediately or shortly after establishing contracts with customers. This kind of revenue is recognized at the time when loan is granted as that is the point of time the Group fulfils the customer’s request, and is then recognized on an accrual basis in accordance with the terms of the relevant agreements. (v) Realized gains/(losses) on sales of investments Realized gains/(losses) consist of realized gains and losses from the sale of investment securities, presented on a net basis. (vi) Net gains/(losses) on sales of loans Net gains/(losses) on sales of loans refer to any gains and losses from the disposal of loans which is accounted for as a sale under ASC 860. (vii) Gains on confiscation of CRMPs Gains on confiscation of credit risk mitigation positions are recognized to the extent confiscated CRMPs exceed previously recognized allowance for loan losses and guarantee asset when sales partners surrender the CRMPs and the obligation of refunding the CRMPs is released. (e) Loans (i) On-balance sheet loans Loans are reported at their outstanding principal balances net of any unearned income and unamortized deferred fees and costs. Loan origination fees and certain direct origination costs are generally deferred and recognized as adjustments to income over the lives of the related loans. The Group facilitates credit to borrowers through structured funds which are considered as consolidated VIEs and the Group evaluated VIEs for consolidation in accordance with ASC 810 in the Consolidated VIEs Section of Note 1. Providing credit strengthening arrangement since March 2018 for the loans to customers under the funds is one of the key factors to determine that the Group should consolidate the structured funds as it is the primary beneficiary of the funds. As a result, the loan principal remains on the Group’s consolidated balance sheets, whilst the funds received from senior tranches holders are recorded as Other Borrowings in the Group’s consolidated balance sheets as disclosed in Note 12(b)(i). Non-accrual policies Loans principal, interest and financing service fee receivables are placed on non-accrual status when payments are 90 days contractually past due. When a loan principal, interest and financing service fee receivable is placed on non-accrual status, interest and financing service fees accrual cease. If the loan is non-accrual, the cost recovery method is used and cash collected is applied to first reduce the carrying value of the loan. Otherwise, interest income may be recognized to the extent cash is received. Loans principal, interest and financing service fee receivables may be returned to accrual status when all of the borrower’s delinquent balances of loans principal, interest and financing service fee have been settled and the borrower continue to perform in accordance with the loan terms for a period of at least six months. Charge-off policies For the years ended December 31, 2021 and 2022, the Group considered loans principal, interest and financing service fee receivables meeting any of the following conditions as uncollectible charged off: (i) death of the borrower; (ii) identification of fraud, and the fraud is officially reported to and filed with relevant law enforcement departments or (iii) the Group concludes that it has exhausted its collection efforts. In order to align the Group’s charge-off policies with ASC 326-20-35-8 (superseded ASC 310-10-35-41), the Group revised its charge-off policies to (1) provide additional information as to the collection efforts which must be exhausted before a charge-off is recorded and (2) charge down loans that are 180 days past due to net realizable value (fair value of collaterals, less estimated costs to sell) unless both well-secured and in the process of collection. The revised charge-off policies are presented as follows: principal, interest and financing service fee receivables are charged down to net realizable value (fair value of collaterals, less estimated costs to sell) when the Group has determined the remaining balance is uncollectable after exhausting all collection efforts. In order to comply with ASC 310 and ASC 326, the Group considers loans principal, interest and financing service fee receivables meeting any of the following conditions as uncollectable and charged-off: (i) death of the borrower; (ii) identification of fraud, and the fraud is officially reported to and filed with relevant law enforcement departments; (iii) sales of loans to third parties; (iv) settlement with the borrower, where the Group releases irrecoverable loans through private negotiations with the borrower where the borrower cannot repay the loan in full through self-funding or voluntary sale of the collateral; (v) disposal through legal proceedings, including but not limited to online arbitrations, judicial auctions and court enforcements; or (vi) loans are 180 days past due unless both well-secured and in the process of collection. Allowance for credit losses Allowance for credit losses represents management’s best estimate of probable losses inherent in the portfolio. Commencing January 1, 2020, CNFinance adopted ASC 326, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which replaced the incurred loss methodology for determining the provision for credit losses and allowance for credit losses (“ACL”) with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) model. ASC 326 defines the ACL as a valuation account that is deducted from the amortized cost of a financial asset to present the net amount that management expects to collect on the financial asset over its expected life. All financial assets carried at amortized cost are in the scope of ASC 326, while assets measured at fair value are excluded. The allowance for credit losses is adjusted each period for changes in expected lifetime credit losses. The allowance for credit losses includes an asset-specific component and a statistically based component. The Group aggregates loans sharing similar risk characteristics into pools for purposes of measuring expected credit losses. Pools are reassessed periodically to confirm that all loans within each pool continue to share similar risk characteristics. Expected credit losses for loans that do not share similar risk characteristics with other financial assets are measured individually. Estimation of CECLs requires CNFinance to make assumptions regarding the likelihood and severity of credit loss events and their impact on expected cash flows, which drive the probability of default (PD), loss given default (LGD) and exposure at default (EAD) models. In its loss forecasting framework, ECL is determined primarily by utilizing models for the borrowers’ PD, LGD and EAD and the Group incorporates forward-looking information through the use of macroeconomic scenarios applied over the forecasted life of the assets. These macroeconomic scenarios include variables that have historically been key drivers of increases and decreases in credit losses. These variables include, but are not limited to, gross-domestic product rates, interest rates and consumer price indexes. The ACL for financial assets held at amortized cost is a valuation account that is deducted from, or added to, the amortized cost basis of the financial assets to present the net amount expected to be collected. When credit expectations change, the valuation account is adjusted with changes reported in provision for credit losses. If amounts previously charged off are subsequently expected to be collected, the Group may recognize a negative allowance, which is limited to the amount that was previously charged off. The asset-specific component is calculated under ASC 310-10-35, on an individual basis for the loans whose payments are contractually past due more than 90 days or which are considered impaired. A financial asset is collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. When a collateral-dependent financial asset is probable of foreclosure, the Group will measure the ACL based on the fair value of the collateral and we will measure the ACL based on the collateral’s net realizable value (fair value of collateral, less estimated costs to sell). Under the collaboration model, when the Group grants a loan through a trust plan, the loan is with the borrower and guarantee is entered into with a separate counterparty (the sales partner). As such, under the definition of ASC 326-20-20, the guarantee arrangement and lending arrangement would be considered freestanding arrangements. As sale partners will provide guarantee of the entire loan to the Group, collection for loss is probable and estimable when a loss on an insured loan is incurred and recognized. In this case, the Group will recognize guarantee loss recoverable asset in the amount that the Group determines is probable to receive from the guarantor with an offsetting entry to “provision for credit losses” when the Group concludes that the loss recovery is collectible. However, potential recovery that exceeds the recognized loss, if any, (gain contingency) will not be recognized until cash is received. Therefore, the amounts estimated to be recoverable from the proceeds of guarantees will be reported as a separate asset (guarantee asset) in the balance sheet. The increase in guaranteed recoverable assets are included in the income statement as a reduction of the “provision for credit losses”, separate disclosure of the increase in guaranteed recoverable assets will be included in the rollforward of the “allowance for credit losses”. The income statement caption will be modified as “Provision for credit losses, net of increase in increase in guaranteed recoverable assets”. Loans held-for-sale Loans held-for-sale are measured at the lower of cost or fair value, with valuation changes recorded in noninterest revenue. The valuation is performed on an individual loan basis. Loan origination fees or costs and purchase price discounts or premiums are deferred in a contra loan account until the related loan is sold. The deferred fees or costs and discounts or premiums are adjustments to the basis of the loan and therefore are included in the periodic determination of the lower of cost or fair value adjustments. The loan is derecognized if the Group does not retain any risk and rewards after transferring the loan. Such transfer would be recorded as sales according to ASC 860-10-40-5. At the time of derecognition, any related loan loss allowance is released. Gains and losses on loans transfer as a sale are recognized in the non-interest income. (ii) Off-balance sheet loans For loans funded by the proceeds from third-party commercial banks, each underlying loan and borrower has to be approved by the third-party commercial banks individually. Once the loan is approved by and originated by the third-party commercial bank, the fund is provided by the third-party commercial bank to the borrower and a lending relationship between the borrower and the third-party commercial bank is established through a loan agreement. Effectively, the Group offers loan facilitation and matching services to the borrowers who have credit needs and the commercial banks who originate loans directly to borrowers referred by the Group. The Group continues to provide post-origination services to the borrowers over the term of the loan agreement. Under this scenario, the Group determines that it is not the legal lender or borrower in the loan origination and repayment process. Accordingly, the Group does not record loans principal, interest and financing service fee receivables arising from these loans nor interest-bearing borrowings to the third-party commercial banks. (f) Cash, cash equivalents and restricted cash Cash and cash equivalents primarily consist of cash, deposits which are highly liquid and all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. The Group considers highly liquid investments that are readily convertible to known amounts of cash. Restricted cash are cash and cash equivalents that are not readily available for normal disbursement and mainly represents cash and cash equivalents from structured funds. Such restricted cash is not available to fund the general liquidity needs of the Group and could only be used to grant new loans and activities as mentioned in Note 1. (g) Investment securities Equity securities Equity securities consist of wealth management products. Equity securities are recorded at fair value and included in the profit and loss of changes in fair value. Realized gains and losses from the sale of investment securities are determined on a specific identification basis and are recorded as realized gains/(losses) on sales of investments. Interest and investment income are recognized when earned. Debt securities Debt securities consist of held-to-maturity debt securities that the Group has the positive intent and ability to hold the security to maturity, and are recorded at amortized cost. The Group reviews its investments in held-to-maturity debt securities for impairment periodically, recognizing an allowance, if any, by applying an estimated loss rate. The Group considers available quantitative and qualitative evidence in evaluating the potential impairment of its investments in held-to-maturity debt securities. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net carrying value at the amount expected to be collected on the held-to-maturity debt securities. (h) Property and equipment Property and equipment are stated at cost. Depreciation on equipment is calculated on the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of the economic useful life of the improvement or the term of the lease. The estimated useful life of office and other equipment range from 1 to 5 years, the estimated useful life of leasehold improvements or the term of the lease range from 1 to 6 years, while the estimated useful lives of motor vehicles range from 3 to 8 years. (i) Goodwill Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Impairment tests for cash-generating units containing goodwill The Group assesses goodwill for impairment at the reporting unit level at least annually and more frequently upon the occurrence of certain events. The Group has the option to assess qualitative factors first to determine whether it is necessary to perform the two-step test. If the Group believes, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount, the two-step quantitative impairment test described above is required. Otherwise, no further testing is required. In the qualitative assessment, the Group considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. In performing the two-step quantitative impairment test, the first step compares the carrying amount of the reporting unit to the fair value of the reporting unit based on either quoted market prices of the ordinary shares or estimated fair value using a combination of the income approach and the market approach. If the fair value of the reporting unit exceeds the carrying value of the reporting unit, goodwill is not impaired and the Group is not required to perform further testing. If the carrying value of the reporting unit exceeds the fair value of the reporting unit, then the Group must perform the second step of the impairment test in order to determine the implied fair value of the reporting unit’s goodwill. The fair value of the reporting unit is allocated to its assets and liabilities in a manner similar to a purchase price allocation in order to determine the implied fair value of the reporting unit goodwill. If the carrying amount of the goodwill is greater than its implied fair value, the excess is recognized as an impairment loss. Goodwill is related to the acquisition of Guangzhou Anyu Mortgage Consulting Co., Limited (“Guangzhou Anyu”) (j) Intangible assets Indefinite-lived intangible assets are assets that are not amortized because there is no foreseeable limit to cash flows generated from them. Intangible assets with finite useful lives are amortized on a straight-line basis over their estimated useful lives. The Group categorizes trademarks as indefinite-lived intangible assets, whose carrying value is RMB2.97 million. If it is more likely than not that the asset is impaired, the Group records the amount that the carrying value exceeds the fair value as an impairment expense. The Group performed its annual impairment review of indefinite-lived intangible assets on December 31, 2021 and 2022 and determined that it is more likely than not that the carrying value was less than the fair value. Intangible assets with finite useful lives represent software and cooperation agreements, the estimated useful lives of which are 1 to 5 years and 5 years, respectively. (k) Income taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and for operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the deferred tax assets or liabilities are expected to be realized or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Group recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured as the largest amount that is greater than 50 percent likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Group classifies interest and penalties related to the liability for unrecognized tax benefits as income tax expense. (l) Employee benefit plans Pursuant to relevant PRC regulations, the Group is required to make contributions to various employee benefit plans organized by municipal and provincial PRC governments. The contributions are made for each PRC employee at statutory rates as determined by local social security bureau. Contributions to the employee benefit plans are charged to the consolidated statements of income. The Group has no obligations for payment of pension benefits associated with the plans beyond the amount it is required to contribute. (m) Long-lived assets Long-lived assets, such as property and equipment, and purchased intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Group first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market value and third-party independent appraisals, as considered necessary. (n) Share-based compensation The Group measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award and recognizes the cost over the period the employee is required to provide service in exchange for the award, which generally is the vesting period. The Group recognizes compensation cost using a front-loading approach for an award with only service conditions that have a graded vesting schedule over the requisite service period for the entire award, net of estimated forfeitures, provided that the cumulative amount of compensation cost recognized at any date at least equals the portion of the grant-date value of such award that is vested at that date. Forfeiture rates are estimated based on historical and future expectations of employee turnover rates. (o) Operating leases Leases where substantially all the rewards and risks of ownership of assets remain with the lessor are accounted for as operating leases. The Group’s lease liability is measured at the present value of future operating lease payments, discounted using the incremental borrowing rate. Right of use asset is measured at the amount of lease liabilities plus prepaid rent and direct costs, less any lease incentives. The operating lease expense is recognized on a straight-line basis over the lease term. Certain of the operating lease agreements contain rent holidays, which are considered in determining the straight-line operating lease expense to be recorded over the lease term. (p) Guarantee liabilities Starting from 2021, the Group started to cooperate with third-party guarantee companies that directly provides guarantee services to commercial banks. According to relevant financial guarantee arrangements, third-party guarantee companies will fulfil its obligations to purchase defaulted loans. However, the Group is required to provide deposits and replenish such deposits from time to time to third-party guarantee companies for its obligations of purchasing defaulted loans. Effectively, the Group provides back-to-back guarantee to third-party guarantee companies and takes on all of the credit risk of the borrowers. These financial guarantee contracts are accounted for as guarantee liabilities under ASC 460, Guarantees. The Group adopted ASC 326, Financial Instruments—Credit Losses, which requires gross accounting for guarantee liability. As a result, at inception of the guarantee under commercial bank partnership model, the Group will recognize both a stand-ready guarantee liability under ASC 460 with an associated guarantee receivable, and a contingent guarantee liability with an allowance for credit losses of the underlying loans under Current expected credit loss (“CECL”) model. Subsequent to the initial recognition, the ASC 460 stand-ready guarantee is released into gains from guarantee liabilities on a straight-line basis over the term of the guarantee, while the contingent guarantee is reduced by the pay-outs made by the Group to compensate the investors upon borrowers’ default. (q) Repurchase agreements Financial assets sold under agreements to repurchase do not constitute a sale of the underlying financial assets for accounting purposes and are treated as collateralized financing transactions. Financial assets sold under agreements to repurchase are recorded at the amount of cash received plus accrued interest. Interest paid on agreements to repurchase is recorded in interest expense at the contr |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Measurements [Abstract] | |
Fair value measurements | 3 Fair value measurements Fair Value Hierarchy FASB ASC 820 defines fair value, establishes a framework for measuring fair value, and establishes a hierarchy of fair value inputs. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market. Valuation techniques that are consistent with the market, income or cost approach, as specified by FASB ASC 820, are used to measure fair value. Assets recorded at fair value on a recurring basis mainly include marketable securities. Additionally, from time to time, the Group records fair value adjustments on a nonrecurring basis. These nonrecurring adjustments typically involve application of LOCOM accounting, write-downs of individual assets or application of the measurement alternative for nonmarketable equity securities. Fair Value Measurements A description of the valuation techniques applied to the Group’s major categories of assets and liabilities measured at fair value is as follows. The Group determines fair value primarily based on pricing sources with reasonable levels of price transparency. Where quoted prices are available in an active market, the Group classifies the assets and liabilities within Level 1 of the valuation hierarchy. If quoted market prices are not available, fair value is primarily determined using pricing models using observable trade data, market data, quoted prices of securities with similar characteristics or discounted cash flows. Such instruments would generally be classified within Level 2 of the valuation hierarchy. The following table presents the Group’s fair value hierarchy for those assets measured at fair value on a recurring basis as of December 31, 2021 and 2022. December 31, 2022 Fair value Level 1 Level 2 Level 3 RMB RMB RMB RMB Wealth management products 244,337,727 206,304,763 38,032,964 - Total 244,337,727 206,304,763 38,032,964 - December 31, 2021 Fair value Level 1 Level 2 Level 3 RMB RMB RMB RMB Wealth management products 847,047,295 729,255,924 117,791,371 - Total 847,047,295 729,255,924 117,791,371 - The following table presents the Group’s fair value hierarchy for those assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2021 and 2022. December 31, 2022 Fair value Level 1 Level 2 Level 3 RMB RMB RMB RMB Assets Loans (1) 61,835,456 - 61,835,456 - Loans held-for-sale (2) 1,844,438,134 - 1,844,438,134 - Equity securities (3) 49,010,000 - 49,010,000 - Total Assets 1,955,283,590 - 1,955,283,590 - Liabilities Guarantee liabilities (4) 82,385,089 - - 82,385,089 Total Liabilities 82,385,089 - - 82,385,089 December 31, 2021 Fair value Level 1 Level 2 Level 3 RMB RMB RMB RMB Assets Loans (1) 64,650,818 - 64,650,818 - Loans held-for-sale (2) 1,095,412,086 - 1,095,412,086 - Equity securities (3) 24,010,000 - 24,010,000 - Total Assets 1,184,072,904 - 1,184,072,904 - (1) Loans are recorded at amortized cost, while the Group records nonrecurring fair value adjustments to reflect partial write-downs that are based on the observable market price of the loan or current appraised value of the collateral. (2) Loans held-for-sale are held at LOCOM (the lower of cost or fair value) which may be written down to fair value on a nonrecurring basis. (3) Nonmarketable equity securities are accounted for using the measurement alternative and can be subject to nonrecurring fair value adjustments to record impairment. (4) Guarantee liabilities are accounted for stand-ready guarantee liabilities of the Group’s guarantee services for its off-balance sheet loans under the commercial bank partnership model at fair value. During the years ended December 31, 2021 and 2022, there were no transfers between instruments in Level 1 and Level 2. |
Cash, cash equivalents and rest
Cash, cash equivalents and restricted cash | 12 Months Ended |
Dec. 31, 2022 | |
Cash, cash equivalents and restricted cash [Abstract] | |
Cash, cash equivalents and restricted cash | 4 Cash, cash equivalents and restricted cash Cash and cash equivalents represent cash on hand and bank deposits. To limit exposure to credit risk relating to bank deposits, the Group primarily places bank deposits with large financial institutions in the PRC with acceptable credit rating. As of December 31, 2021 and 2022, the Group had three PRC individual financial institutions with cash balances in 2021 and one in 2022 respectively, and these institutions held cash balances in excess of 10% of the Group’s total cash balances. These bank deposits collectively accounted for 76.5% and 56.4% of the Group’s total cash balances as of December 31, 2021 and 2022, respectively. The nominal holders of certain bank accounts of the Group are employees of the Group. The Group has entered into agreements with these employees which stipulate that the funds held in these bank accounts are owned and managed by the Group. Cash balances of such accounts collectively accounted for 1.34% and 0.31% of the Group’s total cash balances as of December 31, 2021 and 2022, respectively. Restricted cash represents cash and cash equivalents from structured funds, which are established by the institutional trust companies through segregated bank accounts, including structured funds that are partially funded by the Group’s own capital. Restricted cash amounted to RMB1,515,820,737 and RMB1,157,244,687 as of December 31, 2021 and 2022 respectively, which can only be used to grant loans and is not available to fund the general liquidity needs of the Group. |
Loans Principal, Interest and F
Loans Principal, Interest and Financing Service Fee Receivables | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Loans principal, interest and financing service fee receivables | 5 Loans principal, interest and financing service fee receivables Note December 31, December 31, RMB RMB Home equity loans: (a) 9,412,717,366 8,993,547,621 Loans principal, interest and financing service fee receivables Less: allowance for credit losses (i) - Individually assessed (61,479,897 ) (12,247,836 ) - Collectively assessed (914,370,954 ) (727,055,237 ) Subtotal (975,850,851 ) (739,303,073 ) Net loans principal, interest and financing service fee receivables of home equity loan 8,436,866,515 8,254,244,548 Corporate loans: (e) Loans principal, interest and financing service fee receivables - 463,254,567 Less: allowance for credit losses - (24,693,114 ) Net loans principal, interest and financing service fee receivables of corporate loan - 438,561,453 Net loans principal, interest and financing service fee receivables 8,436,866,515 8,692,806,001 (a) Home equity loans December 31, 2021 December 31, 2022 Note First lien Second lien Subtotal First lien Second lien Subtotal RMB RMB RMB RMB RMB RMB Loans principal, interest and financing service fee receivables 3,514,373,477 5,898,343,889 9,412,717,366 3,360,094,375 5,633,453,246 8,993,547,621 Less: allowance for credit losses (a) - Individually assessed (32,968,721 ) (28,511,176 ) (61,479,897 ) (3,836,350 ) (8,411,486 ) (12,247,836 ) - Collectively assessed (357,239,453 ) (557,131,501 ) (914,370,954 ) (286,300,001 ) (440,755,236 ) (727,055,237 ) Subtotal (390,208,174 ) (585,642,677 ) (975,850,851 ) (290,136,351 ) (449,166,722 ) (739,303,073 ) Net loans principal, interest and financing service fee receivables 3,124,165,303 5,312,701,212 8,436,866,515 3,069,958,024 5,184,286,524 8,254,244,548 (i) Allowance for credit losses The table below presents the components of allowances for loans principal, interest and financing service fee receivables by impairment methodology with the recorded investment as of December 31, 2021 and 2022. December 31, 2022 Allowance for loans which are collectively assessed Allowance for loans which are individually assessed First lien Second lien Subtotal First lien Second lien Subtotal Total RMB RMB RMB RMB RMB RMB RMB As of January 1 357,239,453 557,131,501 914,370,954 32,968,721 28,511,176 61,479,897 975,850,851 Provision for credit losses (8,058,972 ) (19,852,708 ) (27,911,680 ) 72,834,526 98,794,363 171,628,889 143,717,209 Charge-offs (1,318,568 ) - (1,318,568 ) (7,843,977 ) (44,833,079 ) (52,677,056 ) (53,995,624 ) Increase in guaranteed recoverable assets (61,561,912 ) (96,523,557 ) (158,085,469 ) (102,009,203 ) (87,525,498 ) (189,534,701 ) (347,620,170 ) Recoveries - - - 7,886,283 13,464,524 21,350,807 21,350,807 As of December 31 286,300,001 440,755,236 727,055,237 3,836,350 8,411,486 12,247,836 739,303,073 Net loans principal, interest and financing service fee receivables 3,036,599,198 5,127,455,016 8,164,054,214 33,358,825 56,831,509 90,190,334 8,254,244,548 Recorded investment 3,322,899,199 5,568,210,252 8,891,109,451 37,195,175 65,242,995 102,438,170 8,993,547,621 December 31, 2021 Allowance for loans which are collectively assessed Allowance for loans which are individually assessed First lien Second lien Subtotal First lien Second lien Subtotal Total RMB RMB RMB RMB RMB RMB RMB As of January 1 222,034,414 313,932,763 535,967,177 27,176,553 44,821,768 71,998,321 607,965,498 Provision for credit losses 1,184,418 (6,117,066 ) (4,932,648 ) (65,333,841 ) (137,477,353 ) (202,811,194 ) (207,743,842 ) Charge-offs (53,919,303 ) (69,524,088 ) (123,443,391 ) (9,950,932 ) (11,630,112 ) (21,581,044 ) (145,024,435 ) Increase in guaranteed recoverable assets 187,939,924 318,839,892 506,779,816 18,633,218 16,504,672 35,137,890 541,917,706 Recoveries - - - 62,443,724 116,292,200 178,735,924 178,735,924 As of December 31 357,239,453 557,131,501 914,370,954 32,968,721 28,511,176 61,479,897 975,850,851 Net loans principal, interest and financing service fee receivables 3,048,382,936 5,249,959,347 8,298,342,283 75,782,367 62,741,865 138,524,232 8,436,866,515 Recorded investment 3,405,622,388 5,807,090,849 9,212,713,237 108,751,089 91,253,040 200,004,129 9,412,717,366 (1) Effective January 1, 2020, the Group adopted accounting guidance which changed impairment recognition of financial instruments to a model that is based on expected losses rather than incurred losses. The Group charges off loans principal, interest and financing service fee receivables if the remaining balance is considered uncollectable. Recovery of loans principal, interest and financing service fee receivables previously charged off would be recorded when received. For the description of the Group’s related accounting policies of allowance for credit losses, see Note 2(e) Loans. The following tables present the aging of allowance for credit losses as of December 31, 2022. Total current 1 - 30 days 31 - 90 days 91 - 180 days Total loans RMB RMB RMB RMB RMB The collaboration model First lien 116,930,653 82,019,376 86,848,853 3,836,350 289,635,232 Second lien 214,691,499 118,189,879 105,038,216 8,411,486 446,331,080 Subtotal 331,622,152 200,209,255 191,887,069 12,247,836 735,966,312 The traditional facilitation model First lien 656 500,463 - - 501,119 Second lien 2,832,406 3,236 - - 2,835,642 Subtotal 2,833,062 503,699 - - 3,336,761 Allowance for credit losses 334,455,214 200,712,954 191,887,069 12,247,836 739,303,073 The following tables present the aging of allowance for credit losses as of December 31, 2021. Total current 1 - 30 days 31 - 90 days 91 - 180 days past due Total loans RMB RMB RMB RMB RMB The collaboration model First lien 189,814,922 86,537,327 66,784,464 31,394,514 374,531,227 Second lien 340,800,002 124,542,266 80,395,050 26,996,820 572,734,138 Subtotal 530,614,924 211,079,593 147,179,514 58,391,334 947,265,365 The traditional facilitation model First lien 5,618,913 3,503,613 4,980,213 1,574,208 15,676,947 Second lien 5,491,292 2,285,562 3,617,330 1,514,355 12,908,539 Subtotal 11,110,205 5,789,175 8,597,543 3,088,563 28,585,486 Allowance for credit losses 541,725,129 216,868,768 155,777,057 61,479,897 975,850,851 (b) Loan delinquency and non-accrual details The following tables present the aging of past-due loan principal and financing service fee receivables as of December 31, 2022. Total current 1 - 30 days 31 - 90 days 91 - 180 days 181 - 270 days 271 - 360 days 361 days Total loans Total RMB RMB RMB RMB RMB RMB RMB RMB RMB The collaboration model First lien 2,621,922,407 357,338,815 339,856,221 10,753,640 4,686,900 2,446,894 17,790,991 3,354,795,868 35,678,425 Second lien 4,596,435,737 515,052,451 410,753,899 16,756,323 22,661,421 9,951,192 14,507,390 5,586,118,413 63,876,326 Subtotal 7,218,358,144 872,391,266 750,610,120 27,509,963 27,348,321 12,398,086 32,298,381 8,940,914,281 99,554,751 The traditional facilitation model First lien 1,493,232 2,163,296 - 544,591 - - 1,097,387 5,298,506 1,641,978 Second lien 45,954,310 13,855 - - - - 1,366,669 47,334,834 1,366,669 Subtotal 47,447,542 2,177,151 - 544,591 - - 2,464,056 52,633,340 3,008,647 Loans principal, interest and financing service fee receivables 7,265,805,686 874,568,417 750,610,120 28,054,554 27,348,321 12,398,086 34,762,437 8,993,547,621 102,563,398 The following tables present the aging of past-due loan principal and financing service fee receivables as of December 31, 2021. Total current 1 - 30 days 31 - 90 days 91 - 180 days 181 - 269 days 270 - 360 days 361 days Total loans Total RMB RMB RMB RMB RMB RMB RMB RMB RMB The collaboration model First lien 2,814,226,880 325,090,831 230,622,938 65,080,342 6,979,995 5,972,352 24,768,894 3,472,742,232 102,801,583 Second lien 5,030,913,080 467,836,400 276,784,712 52,043,750 7,455,656 6,468,134 17,308,803 5,858,810,535 83,276,343 Subtotal 7,845,139,960 792,927,231 507,407,650 117,124,092 14,435,651 12,440,486 42,077,697 9,331,552,767 186,077,926 The traditional facilitation model First lien 20,814,948 6,532,393 8,334,398 4,887,949 285,023 122,845 653,689 41,631,245 5,949,506 Second lien 21,237,555 4,238,098 6,081,004 5,027,879 360,727 673,625 1,914,466 39,533,354 7,976,697 Subtotal 42,052,503 10,770,491 14,415,402 9,915,828 645,750 796,470 2,568,155 81,164,599 13,926,203 Loans principal, interest and financing service fee receivables 7,887,192,463 803,697,722 521,823,052 127,039,920 15,081,401 13,236,956 44,645,852 9,412,717,366 200,004,129 Loans principal, interest and financing service fee receivables are placed on non-accrual status when payments are 90 days contractually past. Any interest accrued on non-accrual loans is reversed at 90 days and charged against current earnings, and interest is thereafter included in earnings only to the extent actually received in cash. When there is doubt regarding the ultimate collectability of principal, all cash receipts are thereafter applied to reduce the recorded investment in the loan. (c) Impaired loans (1) Impaired loans summary Recorded investment Unpaid Impaired loans Impaired loans with related allowance for credit losses Impaired loans without related allowance for credit losses Related allowance for credit losses RMB RMB RMB RMB RMB First lien 32,981,329 37,320,404 8,776,965 28,543,440 3,836,350 Second lien 62,134,501 65,242,994 15,257,298 49,985,695 8,411,486 As of December 31, 2022 95,115,830 102,563,398 24,034,263 78,529,135 12,247,836 First lien 102,914,225 108,751,090 64,871,825 43,879,265 32,968,721 Second lien 88,073,367 91,253,039 50,995,087 40,257,952 28,511,176 As of December 31, 2021 190,987,592 200,004,129 115,866,912 84,137,217 61,479,897 In accordance with ASC 310-10-35-16 and 17, impaired loans are those loans where the Group, based on current information and events, believes it is probable all amounts due according to the contractual terms of the loan will not be collected. All amounts due according to the contractual terms means that both the contractual interest payments and the contractual principal payments of a loan will be collected as scheduled in the loan agreement. Impaired loans without an allowance generally represent loans that the fair value of the underlying collateral meets or exceeds the loan’s amortized cost. (2) Average recorded investment in impaired loans Year ended Year ended Average recorded investment Interest and fees income recognized Average recorded investment Interest and fees income recognized RMB RMB RMB RMB First lien 184,523,313 61,453,546 73,035,747 82,191,331 Second lien 176,098,252 61,775,021 78,248,017 83,791,498 Impaired loans 360,621,565 123,228,567 151,283,764 165,982,829 (i) Average recorded investment represents ending balance for the last four quarters and does not include the related allowance for credit losses. (ii) The interest and fees income recognized are those interest and financing service fees recognized related to impaired loans. All the amounts are recognized on cash basis. No debt restructuring in which contractual terms of loans are modified, has occurred during 2021 and 2022. The Group transferred loans with carrying amounts of RMB2,466,160,820and RMB2,375,645,263 to third party investors and recorded the transfers as sales for the years ended December 31, 2021 and 2022, respectively. The Group recognized net losses of RMB479,584,775 and RMB44,554,948 from transfers accounted for as sales of loans for the years ended December 31, 2021 and 2022, respectively. The Group carries out pre-approval, review and credit approval of loans by professionals for credit risk arising from micro credit business. During the post-transaction monitoring process, the Group conducts a visit of customers regularly after disbursement of loans and conducts on-site inspection when the Group considers it is necessary. The review focuses on the status of the collateral. The Group adopts a loan risk classification approach to manage the loan portfolio risk. Loans are classified as non-impaired and impaired based on the different risk level. When one or more events demonstrates there is objective evidence of impairment and causes losses, corresponding loans are considered to be classified as impaired. The asset-specific component is calculated under ASC 310-10-35, on an individual basis for the loans whose payments are contractually past due more than 90 days or which are considered impaired. The Group applies a series of criteria in determining the classification of loans. The loan classification criteria focus on a number of factors, including (i) the borrower’s ability to repay the loan; (ii) the borrower’s repayment history; (iii) the borrower’s willingness to repay; (iv) the net realizable value of any collateral; and (v) the prospect for the support from any financially responsible guarantor. The Group also takes into account the length of time for which payments of principal and interest on a loan are overdue. (d) Loans held-for-sale Loans held-for-sale are measured at the lower of cost or fair value, with valuation changes recorded in noninterest revenue. The valuation is performed on an individual loan basis. Loans transferred to held-for-sale category were RMB1,095,412,086 and RMB 1,844,438,134 as of December 31, 2021 and 2022 respectively. (e) Corporate loans Corporate loans are unsecured loans granted to unrelated entities in order to fulfil their normal operating and capital requirement. Loans principal, interest and financing service fee receivables of corporate loan were nil |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | 6 Investment securities Investment securities consist of equity securities and debt securities. (a) Equity securities The carrying amount and fair value of the investment securities by major security type and class of security as of December 31, 2021 and 2022 was as follows: Aggregate Profits and Aggregate RMB RMB RMB As of December 31, 2022: Wealth management products 243,542,140 795,587 244,337,727 Total 243,542,140 795,587 244,337,727 Aggregate Profits and Aggregate RMB RMB RMB As of December 31, 2021: Wealth management products 845,888,854 1,158,441 847,047,295 Total 845,888,854 1,158,441 847,047,295 Wealth management products are investment products issued by commercial banks and other financial institutions in China. The wealth management products invest in a pool of liquid financial assets in the interbank market or exchange, including debt securities, asset backed securities, interbank lending, reverse repurchase agreements and bank deposits. The products can be redeemed on weekdays on demand. (b) Debt securities The debt securities are in the form of an investment in partnership, made in December 2021 and 2022 and held- to-maturity corporate debt securities purchased in 2022. The partnership will return RMB10,000,000 to the Group quarterly, along with an 8% interest. The principle and interests are required to be fully repaid within 3 years. As of December 31, 2022, the investment has an amortized cost of RMB286,077,339 with an allowance for credit loss of RMB15,248,938, and the held-to-maturity debt securities have an amortized cost of RMB4,198,055 with an allowance for credit loss of RMB719,622. The Group has the intent and ability to hold the investments to maturity or payoff. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property and Equipment [Abstract] | |
Property and equipment | 7 Property and equipment December 31, December 31, RMB RMB Office and other equipment 18,059,177 18,167,730 Leasehold improvements 17,179,429 16,904,137 Motor vehicles 2,052,245 2,372,413 Less: accumulated depreciation (34,248,905 ) (35,160,018 ) Total 3,041,946 2,284,262 Total depreciation expense for the years ended December 31, 2021 and 2022 was RMB3,077,154 and 1,722,640, respectively, which were recorded in other expenses in each year. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Dec. 31, 2022 | |
Intangible Assets and Goodwill [Abstract] | |
Intangible assets and goodwill | 8 Intangible assets and goodwill Note December 31, December 31, RMB RMB Intangible assets (a) 4,009,372 3,487,733 (a) Intangible assets December 31, 2021 December 31, 2022 Gross carrying Accumulated amortisation Net carrying value Gross carrying Accumulated amortisation Net carrying value RMB RMB RMB RMB RMB RMB Amortized intangible assets: Software 10,793,974 (9,754,602 ) 1,039,372 10,793,974 (10,276,241 ) 517,733 Cooperation agreement 5,030,000 (5,030,000 ) - 5,030,000 (5,030,000 ) - Total amortized intangible assets 15,823,974 (14,784,602 ) 1,039,372 15,823,974 (15,306,241 ) 517,733 Unamortized intangible assets: Trademarks 2,970,000 2,970,000 As of December 31, 2021 and 2022, accumulated amortization was RMB14,784,602 and 15,306,241 respectively. Below table provides the current year and estimated future amortization expense for amortized intangible assets. The Group based its projections of amortization expense shown below on existing asset balances as of December 31, 2022. Future amortization expense may vary from these projections. Software RMB Year ended December 31, 2022 (actual) 521,639 Estimate for year ended December 31, 2023 517,143 2024 590 2025 - 2026 - 2027 - |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2022 | |
Deposits [Abstract] | |
Deposits | 9 Deposits Deposits include security deposits to landlords of rental premises and deposits to the China Trust Protection Fund. In accordance with relevant rules of the China Trust Protection Fund, 1% of the size of trust plans subscribed is deposited in the Fund. |
Guaranteed Assets
Guaranteed Assets | 12 Months Ended |
Dec. 31, 2022 | |
Guaranteed Assets [Abstract] | |
Guaranteed assets | 10 Guaranteed assets As described in Note 13, sales partners submit CRMPs to the Group as a guarantee for the loans under the collaboration model. When allowance for credit losses is recognized and accrued, the Group will evaluate if the loan increase in guaranteed recoverable assets guaranteed by the CRMPs is probable and estimable. If the increase in guaranteed recoverable assets is probable and estimable, the amount guaranteed by the CRMPs is recognized as guaranteed assets. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2022 | |
Other Assets [Abstract] | |
Other assets | 11 Other assets Note December 31, December 31, RMB RMB Receivable from sale of loans (i) 197,226,882 32,469,152 Guarantee deposits (ii) 74,680,000 243,470,845 Receivables from disposal of subsidiary (iii) 50,000,000 - Prepayments 34,068,479 94,853,194 Non-marketable equity securities (iv) 24,010,000 49,010,000 Amounts due from employees (v) 4,606,389 34,269,800 Receivables for realization of collaterals (vi) 722,603 31,022,975 Receivables from loan facilitation service - 49,963,322 Receivables of guarantee service - 97,552,160 Other receivables 19,511,778 37,277,452 Total 404,826,131 669,888,900 (i) As mentioned in Note 5, the Group transferred the delinquent loans to third parties so that the Group could collect the payment more quickly than to simply dispose the collaterals through litigation. The transferred loans have been isolated from the Group. There is no constrain on the transferee’s rights to pledge or exchange. The Group does not maintain effective control of transferred loans and loan transfers accounted for as sales are the transfer transactions without repurchase agreements. In 2021, the Group transferred loans under traditional facilitation model with balances amounting to RMB990,485,783 to Guangzhou Minghui Capital Management Co., Ltd. (“Guangzhou Minghui”) for transfer price of RMB350,783,000. As of December 31, 2022, the amount due from Guangzhou Minghui for such transfer is RMB27,769,074. (ii) Guarantee deposits are deposits that the Group provided, through Guangdong Nanfeng Financial Guarantee Group Co., Ltd (“Guangzhou Nanfeng”), which holds a financial guarantee license, for loans granted (a) under its consolidated VIE Zhonghai Lanhai Structured Fund 30-X, which is not structured in a stratified way and requires guarantee from a third party, and (b) under the cooperation with commercial banks for introduction of borrowers and provision of post-origination services, refer to Note 2(e)(ii) Off-balance sheet loans. (iii) The Group disposed of one of its wholly-owned subsidiaries Ningbo Lianjia Enterprise Management Advisory Co., Ltd. to an unrelated third party in 2021 and relevant consideration was received in January 2022. (iv) In June 2016, the Group invested 10,003,334 shares at RMB3.00 per share, which represents 2.14% of the paid-in capital in Guangdong Qingyuan Rural Commercial Bank (“Qingyuan Rural”). The Group transferred 2 million shares to an unrelated third party at RMB3.00 per share that is same as the investment cost on September 18, 2019. As of December 31, 2021 and 2022, the Group invested 1.72% of the paid-in capital in Qingyuan Rural. Qingyuan Rural has paid-in capital of RMB1,400,000,000, and the Group has invested RMB24,010,000 in Qingyuan Rural. In January 2022, the Group and Guangzhou Minghui set up Guangzhou Mingfeng Partnership (“Guangzhou Mingfeng”). The total paid-in capital was RMB40,000,000 and the Group has invested RMB25,000,000 in Guangzhou Mingfeng. The measurement alternative is selected for the above non-marketable equity securities. Under the measurement alternative, the equity securities without readily determinable fair value are measured at cost minus impairment and adjusted for changes in observable prices. No change in observable price has been identified and no impairment has been recorded for the two years of 2021 and 2022. (v) Amounts due from employees mainly include temporary advances to employees for payments of collateral evaluation fee, mortgage handling fee, payments for office supplies, etc. on behalf of the Group. (vi) the receivables for realization of collaterals under traditional model is RMB238,616 and the receivables for realization of collaterals under commercial bank partnership model is RMB30,784,359. |
Interest-Bearing Borrowings
Interest-Bearing Borrowings | 12 Months Ended |
Dec. 31, 2022 | |
Interest-Bearing Borrowings [Abstract] | |
Interest-bearing borrowings | 12 Interest-bearing borrowings (a) Borrowings under agreements to repurchase Financial assets sold under agreements to repurchase are effectively short-term collateralized borrowings. In these transactions, the Group receives cash in exchange for transferring financial assets as collateral and recognizes an obligation to reacquire the financial assets for cash at the transaction’s maturity. These types of transactions create risks, including (1) fair value of the financial assets transferred may decline below the amount of obligation to reacquire the financial assets, and therefore create an obligation to pledge additional amounts, or to replace collaterals pledged, and (2) the Group does not have sufficient liquidity to repurchase the financial assets at the transaction’s maturity. Note Fixed interest rate Term December 31, December 31, RMB RMB Repurchase agreements Funds obtained from Financial institutions (i) 10.5% to 13.8% Within 2 years 45,250,000 111,593,865 Interest payable Financial institutions (i) - 1,048,145 Total repurchase agreements 45,250,000 112,642,010 Funds obtained from financial institutions On December 2, 2022, the Group transferred loan principals, interests and financing service fee receivables with carrying amount of RMB26,420,000 to a third-party transferee, Guangdong Yuehai Asset Management Co., Ltd. (“Yuehai Asset”), an unrelated third party. However, in accordance with ASC 860, Transfers and Servicing, the right to earnings is not derecognized upon transfer as the Group is required to repurchase the right to earnings one year after the date of transfer. As of December 31, 2022, the amount of funds obtained from Yuehai Asset and the interest payable are RMB18,494,000 and RMB122,365. On August 29, 2022, the Group transferred loan principals, interests and financing service fee receivables swith carrying amount of RMB5,965,976 to a third-party transferee, Pingan Puhui Lixin Asset Management Co., Ltd (“Pingan Puhui”), an unrelated third party. However, in accordance with ASC 860, Transfers and Servicing, the right to earnings is not derecognized upon transfer as the Group is required to repurchase the right to earnings one year after the date of transfer. As of December 31, 2022, the amount of funds obtained from Pingan Puhui and the interest payable are RMB5,376,724 and RMB252,149. On November 16, 2022 and December 26, 2022, the Group transferred loan principals, interests and financing service fee receivables with carrying amount of RMB86,803,141 to a third-party transferee, China Foreign Economy and Trade Trust Co.,Ltd (“FOTIC”), an unrelated third party. However, in accordance with ASC 860, Transfers and Servicing, the right to earnings is not derecognized upon transfer as the Group is required to repurchase the right to earnings one year after the date of transfer. As of December 31, 2022, the amount of funds obtained from FOTIC and the interest payable are RMB87,723,141 and RMB673,631. December 31, December 31, RMB RMB Underlying collateral types of gross obligations Repurchase agreements: Loans principal, interest and financing service fee receivables 45,250,000 111,593,865 Total repurchase agreements 45,250,000 111,593,865 The below table provides the contractual maturities of the gross obligations under repurchase agreements. Overnight Up to 30 days 30 to 90 days Greater than 90 days Total gross obligations RMB RMB RMB RMB RMB Repurchase agreements As of December 31, 2022 - - - 111,593,865 111,593,865 As of December 31, 2021 - - - 45,250,000 45,250,000 (b) Other borrowings Other borrowings Note Fixed interest rate per annum Term December 31, December 31, RMB RMB Short-term: Investors of consolidated VIEs (i) 6.3% to 10.5% Less than 1 year 4,654,388,213 5,675,480,078 Long-term: Investors of consolidated VIEs (i) 7.0% to 11.5% 1 - 5 years 3,330,334,482 1,991,623,976 Interest payable to Investors of consolidated VIEs (i) 57,169,385 60,455,283 Total 8,041,892,080 7,727,559,337 (i) The financial liabilities arising from the VIEs with underlying investments in loans to customers are classified as payable in these consolidated financial statements. It is because the Group has an obligation to pay senior tranches holders upon maturity dates based on the related terms of those consolidated structured funds. As of December 31, 2022, the borrowings from VIEs have principal RMB7,667,104,054, bearing interests from 6.3% to 11.5% per year. Aggregate annual maturities of long-term borrowing obligations (based on final maturity dates) are as follows: December 31, 2022 2023 2024 2025 2026 2027 Thereafter Total RMB RMB RMB RMB RMB RMB RMB Investors of consolidated VIEs - 1,084,492,735 237,055,841 13,075,400 - 657,000,000 1,991,623,976 (c) Pledged assets The Group pledges certain assets to secure borrowings under agreements to repurchase and other borrowings. The table provides the total carrying amounts of pledged assets by asset types . December 31, December 31, RMB RMB Loans principal, interest and financing service fee receivables 64,640,192 147,257,249 Total 64,640,192 147,257,249 |
Credit Risk Mitigation Position
Credit Risk Mitigation Position | 12 Months Ended |
Dec. 31, 2022 | |
Credit Risk Mitigation Position [Abstract] | |
Credit risk mitigation position | 13 Credit risk mitigation position December 31, December 31, RMB RMB Balance at the beginning of the year 1,209,729,138 1,348,449,426 Increase during the year 1,203,458,816 960,663,187 Decrease during the year (1,052,004,847 ) (883,079,007 ) Confiscation during the year (12,733,681 ) (71,380,536 ) Balance at the end of the year 1,348,449,426 1,354,653,070 Under the collaboration model, the Group collaborates with sales partners who are dedicated to introduce the Group’s loan services to prospective borrowers. The sales partners need to place security deposits ranging from 10%-25% of the loans issued to the borrowers introduced by them (such contribution, the “credit risk mitigation position”) to the Group. The credit risk mitigation position will be transferred into an account designated by the Group and is fully refundable upon repayment of the loan the credit risk mitigation position is associated with. |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Other liabilities | 14 Other liabilities Note December 31, December 31, RMB RMB Guarantee repayments from sales partner (i) 259,439,715 416,698,397 Guarantee liabilities (ii) 3,182,958 230,867,505 Settlement and clearing accounts (iii) 74,255,253 135,652,186 Other tax payables (iv) 70,756,236 74,985,486 Collaboration cost payable (v) 59,554,661 50,393,275 Customer pledged deposits (vi) 40,363,129 39,296,162 Receipt in advance (vii) 53,125,074 35,645,384 Amounts due to third parties 216,526,655 18,591,226 Accrued expenses (viii) 5,773,392 16,486,002 Others (ix) 2,784,212 9,855,045 Total 785,761,285 1,028,470,668 (i) Under the collaboration model, sales partners are required to provide a certain level of guarantee of repayment for loans recommended. Guarantee repayments from sales partner mainly consist of repayments collected from sales partners who exercise the guarantee, and those repayments will be returned to trust company. In accordance with the Company’s PRC subsidiaries’ articles of associate, the subsidiaries are required to appropriate 10% of their net incomes, upon approval by board of directors. (ii) In 2021, the Group started to cooperate with a third-party guarantee company, Guangzhou Nanfeng, that directly provides guarantee services to commercial banks. According to relevant financial guarantee arrangements, Guangzhou Nanfeng will fulfil its obligations to purchase defaulted loans. However, the Group is required to provide deposits and replenish such deposits from time to time to Guangzhou Nanfeng for its obligations of purchasing defaulted loans. Effectively, the Group provides back-to-back guarantee to Guangzhou Nanfeng and takes on all of the credit risk of the borrowers. These financial guarantee contracts are accounted for as guarantee liabilities under ASC 460, Guarantees. As of December 31, 2022, maximum potential undiscounted future payment that the Group would be required to make was RMB2,450.37 million. The initial term of the guarantee liabilities is the same as the term of loans facilitated under the arrangements with commercial banks, which ranges from 1 year to 10 years, as of December 31, 2022. The remaining term of the guarantee liabilities range from 1 year to 10 years as of December 31, 2022. (iii) The Group transferred loans to third party investors and recorded these transactions as sales in Note 5(c). After the transfer, the contract terms related to payment proceeds from the loans remain the same: The Group collects payments of loans and then disburses the proceeds from the relevant loans to third-party transferees. (iv) Other tax payables mainly represent value-added tax and surcharges payables. (v) As mentioned in Note 21, the Group will pay collaboration cost to the sales partners who introduce prospective borrowers to the Group. The collaboration cost for sales partners is a fixed percentage of the loan principal amount and is calculated by subtracting the project cost from interest and fees income received from borrowers. (vi) Customer pledged deposits mainly consist of the deposits collected from certain customers to reduce the risk of failure to make payments on schedule. (vii) Receipt in advance consists of advance for interest and financing service fees on loans and down payments of loans held-for-sale by loan transferees. (viii) Accrued expenses mainly consist of promotional costs relating to building the collaboration model and expenses payable to consultants such as the auditor and lawyer. (ix) Other liabilities are expected to be settled or recognized as income within one year or are repayable on demand. |
Ordinary Shares
Ordinary Shares | 12 Months Ended |
Dec. 31, 2022 | |
Ordinary Shares [Abstract] | |
Ordinary shares | 15 Ordinary shares On January 8, 2014, the Company was incorporated in the Cayman Islands with authorized share capital of HKD380,000 divided into 3,800,000,000 shares of a nominal or par value of HKD0.0001 each. Upon the incorporation of the Company, one subscriber’s share was allotted and issued to Kevin Butler at a consideration of HKD0.0001, representing 100% of the entire ordinary share of the Company. On the same date, such share was transferred to Complete Joy Investments Limited (“Complete Joy”) at nil consideration. As a result, Complete Joy was the sole owner of the Company. On July 11, 2018, the Company repurchased of a total of 1,230,434,041 shares of HKD0.0001 each share, following by issuing a total of 1,230,434,040 shares of USD0.0001 each share. As the result of the above redenomination, the par value of the Company’s shares has been changed from HKD0.0001 to USD0.0001, and its authorized share capital has been increased to USD380,000 divided into 3,800,000,000 shares of USD0.0001 each. Upon the IPO on November 7, 2018 and exercise of the green shoes options, the Company issued 130,000,000 and 8,500,000 ordinary shares, equal to 6,500,000 ADSs and 425,000 ADSs, respectively, priced at USD7.5 per ADS. The Company issued 2,709,200 ordinary shares, equal to 135,460 ADSs, upon a follow-on exercise of the green shoes options on November 21, 2018, priced at USD7.5 per ADS. As disclosed in Note 27, on July 19, 2021, 187,933,720 ordinary shares were issued to JPMorgan Chase Bank N.A. (the “Depositary”) as a reserve pool for future issuances upon the exercise of share options granted under the 2018 Option to the Group’s management members and employees. All shareholder rights of these 187,933,720 ordinary shares including but not limited to voting rights and dividend rights are unconditionally waived until the corresponding shares are exercised. While the ordinary shares were legally issued to the Depositary, the Depositary does not have any of the rights associated with the ordinary shares, as such the Group accounted for these shares as issued but not outstanding until the waiver is released by the Group, which occur when the share options are exercised and ordinary shares are transferred to the management members and employees. |
Additional Paid-in Capital
Additional Paid-in Capital | 12 Months Ended |
Dec. 31, 2022 | |
Additional Paid-in Capital [Abstract] | |
Additional Paid-in Capital | 16 Additional paid-in capital Additional paid-in capital represents (1) the difference between the nominal value of share capital and the paid-up capital of the Group; (2) the difference between the purchase price and the proportionate share of the identifiable net assets of Guangzhou Anyu when the Group acquired its remaining shares to take full ownership; (3) the portion of the grant date fair value of unexercised share options granted to employees of the Group that has been recognized. |
Retained Earnings
Retained Earnings | 12 Months Ended |
Dec. 31, 2022 | |
Retained Earnings [Abstract] | |
Retained earnings | 17 Retained earnings Note December 31, December 31, RMB RMB PRC statutory reserves (i) 258,654,052 258,654,052 PRC surplus reserves (ii) 164,653,757 169,552,789 Unreserved retained earnings 2,401,027,454 2,530,509,454 Total 2,824,335,263 2,958,716,295 (i) With effect from July 1, 2012, pursuant to the “Administrative Measures on Accrual of Provisions by Financial Institutions” issued by the MOF in March 2012, the Group is required, in principle, to set aside a general reserve not lower than 1.5% of the ending balance of its gross risk-bearing assets. (ii) In accordance with the Company’s PRC subsidiaries’ articles of associate, the subsidiaries are required to appropriate 10% of their net incomes, upon approval by board of directors. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Losses | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Losses [Abstract] | |
Accumulated other comprehensive losses | 18 Accumulated other comprehensive losses Balance as of Other comprehensive Balance as of December 31, 2021 RMB RMB RMB Foreign currency translation adjustment (18,456,546 ) (6,936,969 ) (25,393,515 ) Total (18,456,546 ) (6,936,969 ) (25,393,515 ) Balance as of Other comprehensive Balance as of December 31, 2022 RMB RMB RMB Foreign currency translation adjustment (25,393,515 ) 15,181,518 (10,211,997 ) Total (25,393,515 ) 15,181,518 (10,211,997 ) |
Interest and Fees Income
Interest and Fees Income | 12 Months Ended |
Dec. 31, 2022 | |
Interest and Financing Service Fees on Loans [Abstract] | |
Interest and fees income | 19 Interest and fees income Year ended December 31, Note 2020 2021 2022 RMB RMB RMB Interest and financing service fees on loans (i) 1,828,687,910 1,770,351,645 1,574,074,534 - Interest income 1,828,687,910 1,759,906,523 1,573,405,364 - Financing service fees - 10,445,122 669,170 Interest income charged to sales partners (ii) 10,001,581 33,448,660 122,019,472 Interest income on debt securities (iii) - - 22,195,046 Interest on deposits with banks 16,133,918 11,973,675 13,063,523 Total 1,854,823,409 1,815,773,980 1,731,352,575 (i) Interest and financing service fees on loans, which include financing service fees on loans, are recognized in the consolidated statements of comprehensive income using the effective interest method. Financing service fees on loans, are deferred and amortized over the contractual life of the related loans utilizing the effective interest method. (ii) Interest income charged to sales partners refers to the cost of and interest on the partner’s instalment repurchase options under collaboration model. (iii) Interest income on debt securities in forms of partnership investment and corporate debt securities. Please refer to note 6(b). |
Net Revenue Under the Commercia
Net Revenue Under the Commercial Bank Partnership Model | 12 Months Ended |
Dec. 31, 2022 | |
Net revenue under the commercial bank partnership model [Abstract] | |
Net revenue under the commercial bank partnership model | 20 Net revenue under the commercial bank partnership model The Group has started to collaborate with commercial banks since 2021 and such collaboration grew and scaled in the second half of 2022. Net revenue under the commercial bank partnership model representing fees charged to commercial banks for services including introducing borrowers, initial credit assessment, facilitating loans from the banks to the borrower and providing technical assistance to the borrower and banks, net of fees paid to third-party insurance company. Revenues from loan facilitation services are recognized at the time a loan is originated, at which time the facilitation service is considered completed. Revenues from loan facilitation services, covering matching of commercial banks to borrowers and facilitating the execution of loan agreement between commercial banks and borrowers was RMB48,352,866 in 2022. Revenues from post-origination services are recognized on a straight-line basis over the term of the underlying loans as the services are provided. Revenues from post-facilitation services, covering cash processing services and collection services was RMB6,226,524 in 2022. Refer to Note 19, the Group provided guarantee services for its off-balance sheet loans under the commercial bank partnership model. As a result, at inception of the guarantee, the Group recognized a stand-ready guarantee liability under ASC 460 at fair value with an associated guarantee receivable of RMB97,552,160. Subsequently, the stand-ready guarantee is released into gains from guarantee liabilities on a straight-line basis over the term of the guarantee. Gains from guarantee liabilities was RMB15,167,071 in 2022. The total amount of net fees paid to third-party insurance company for providing guarantee services to commercial banks and commission fee to local sales channels was RMB 12,195,456 in 2022. |
Collaboration Cost for Sales Pa
Collaboration Cost for Sales Partners | 12 Months Ended |
Dec. 31, 2022 | |
Collaboration Cost for Sales Partners [Abstract] | |
Collaboration cost for sales partners | 21 Collaboration cost for sales partners The Group started to develop a new collaboration model in December 2018. Under such model, the Group collaborates with sales partners who are dedicated to introduce the Group and its loan services to prospective borrowers. The unique feature of this collaboration model is that the sales partners will be required to deposit an amount equal to 10% - 25% of the loans issued to the borrowers introduced by them. In return, the Group will pay collaboration cost as sales incentives to the sales partners. |
Provision for Credit Losses
Provision for Credit Losses | 12 Months Ended |
Dec. 31, 2022 | |
Provision for Credit Losses [Abstract] | |
Provision for credit losses | 22 Provision for credit losses Year ended December 31, 2020 2021 2022 RMB RMB RMB Home equity loans (58,216,554 ) 257,624,013 (55,755,647 ) Corporate loans - - (24,693,114 ) Debt securities - (5,403,084 ) (10,565,475 ) Guarantee liabilities - (3,182,958 ) (155,017,657 ) Trade and other receivables (19,131,926 ) 49,429,922 7,947,030 Total (77,348,480 ) 298,467,893 (238,084,863 ) |
Realized Gains on Sales of Inve
Realized Gains on Sales of Investments, Net | 12 Months Ended |
Dec. 31, 2022 | |
Realized Gains on Sales of Investments, Net [Abstract] | |
Realized gains on sales of investments, net | 23 Realized gains on sales of investments, net The gross realized gains on sales of investments are RMB70,611,492, RMB57,368,616 and RMB28,330,375 for the years ended December 31, 2020, 2021 and 2022, respectively. The gross realized losses on sales of investments are RMB50,457,833, RMB38,198,180 and RMB7,763,703 for the years ended December 31, 2020, 2021 and 2022, respectively. |
Net Losses on Sales of Loans
Net Losses on Sales of Loans | 12 Months Ended |
Dec. 31, 2022 | |
Net Losses on Sales of Loans [Abstract] | |
Net losses on sales of loans | 24 Net losses on sales of loans As mentioned in Note 5(c), the Group transferred the delinquent loans to third parties. Net losses on sale of loans which summarizes the received from sales of loans are net losses of RMB50,606,487, RMB479,584,775 and RMB44,554,948 for the years ended December 31, 2020, 2021 and 2022, respectively. |
Other Gains, Net
Other Gains, Net | 12 Months Ended |
Dec. 31, 2022 | |
Other gains, net [Abstract] | |
Other gains, net | 25 Other gains, net Year ended December 31, Note 2020 2021 2022 RMB RMB RMB Net gains on confiscated credit risk mitigation positions (i) 13,446,619 12,733,681 71,380,536 Profits/(losses) from fair value changes (ii) 56,773 1,101,669 (362,855 ) Foreign exchange (losses)/gains (iii) (5,345,004 ) 786,080 7,355,135 Net loss on disposal of property and equipment (2,868 ) (328,262 ) (30,742 ) Mortgage agency service revenue 511,500 - - Others 1,093,452 7,768,674 11,571,964 Total 9,760,472 22,061,842 89,914,038 (i) Sales partners provide CRMPs as security deposits. Pursuant to the collaboration agreements if the debtor’s loan principal repayments or accrued interests are past due or the loan is in default, sales partners are obliged to fulfill their guaranteed responsibility by selecting among different approaches, otherwise the CRMPs deposited by sales partners are confiscated by the Group, refer to Note 1 (ii) Profits/(losses) from fair value changes refers to gains or losses resulting from changes in the fair value of investment securities. (iii) The changes of foreign exchange gain/(loss) are mainly due to exchange rate changes in cash and cash equivalents held by the Group, including US dollar account and Hong Kong dollar account. The Group recorded a foreign exchange gain as RMB7,355,135 in 2022, an increase of RMB6,569,055 compared with that in 2021. The gain is mainly due to the increase of the exchange rate between Hong Kong dollar and RMB and the US dollar against RMB. |
Other Expenses
Other Expenses | 12 Months Ended |
Dec. 31, 2022 | |
Other Expenses [Abstract] | |
Other expenses | 26 Other expenses Year ended December 31 2020 2021 2022 RMB RMB RMB Advertising and promotion expenses 30,471,983 29,171,942 32,412,727 Litigation and attorney fees 33,267,682 18,697,784 7,680,633 Entertainment and travelling expenses 7,010,704 10,793,089 9,740,873 Office and commute expenses 9,120,261 10,711,801 7,791,694 Consulting fees 14,486,656 9,330,732 12,016,260 Communication expenses 2,495,071 3,861,529 2,424,242 Depreciation and amortization 6,047,226 3,821,788 2,244,279 Directors and officers liability insurance 4,232,722 3,545,117 3,474,151 Research and development expenses 9,960,607 1,602,095 760,465 Others 6,949,270 8,964,511 7,344,173 Total 124,042,182 100,500,388 85,889,497 |
Income Tax Expense
Income Tax Expense | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Expense [Abstract] | |
Income Tax Expense | 27 Income tax expense Cayman Islands Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gains. British Virgin Islands (BVI) Pursuant to the rules and regulations of the British Virgin Islands, the Group is not subject to any income tax in the British Virgin Islands. Hong Kong No provision for Hong Kong Profits Tax has been made for the subsidiary located in Hong Kong as the subsidiary has not derived any income subject to Hong Kong Profits Tax during the years. Peoples Republic of China (PRC) According to the PRC Corporate Income Tax (“CIT”) Law, the Group’s PRC subsidiaries are subject to PRC income tax at the statutory tax rate of 25%, unless otherwise specified. Income tax expense, all of which relates to the PRC, consists of the following for the years ended December 31, 2020, 2021 and 2022: Year ended December 31 2020 2021 2022 RMB RMB RMB Current tax expense 142,238,819 218,567,885 171,146,093 Deferred tax benefit (94,389,779 ) (190,009,905 ) (133,913,450 ) Total income tax expense 47,849,040 28,557,980 37,232,643 The principal components of the deferred tax assets and liabilities are as follows: Year ended December 31 2021 2022 RMB RMB Deferred tax assets: Net loans principal, interest and financing service fee receivables 444,036,207 316,744,794 Debt securities 1,350,771 3,992,140 Guarantee liabilities - 37,120,604 Net operating loss carry-forwards 15,226,575 9,116,290 Lease liabilities 3,880,255 7,145,869 Other deferred tax assets 928,979 669,876 Total deferred tax assets 465,422,787 374,789,573 Valuation allowance (15,226,575 ) (9,116,290 ) Deferred tax assets, net of valuation allowance 450,196,212 365,673,283 Net deferred tax assets 21,068,094 76,904,707 Deferred tax liabilities: Intangible assets (742,500 ) (742,500 ) Equity securities (289,610 ) (171,864 ) Right-of-use assets (4,049,202 ) (7,444,339 ) Intercompany receivables (45,849,201 ) (41,988,923 ) Guarantee assets (322,437,865 ) (181,602,700 ) Undistributed earnings from structured funds (207,588,600 ) (130,570,272 ) Total deferred tax liabilities (580,956,978 ) (362,520,598 ) Net deferred tax liabilities (151,828,860 ) (73,752,022 ) Movement of valuation allowance: Year ended December 31 2021 2022 RMB RMB At the beginning of year 10,443,239 15,226,575 Current year additions 7,238,296 613,314 Current year reversals (2,427,869 ) (6,722,726 ) Current year expiration of carryforwards (27,091 ) (873 ) Net change in the valuation allowance 4,783,336 (6,110,285 ) At the end of year 15,226,575 9,116,290 In assessing the recoverability of its deferred tax assets, management considers whether some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers reversing taxable temporary differences, carryback availability, projected future income and tax-planning strategies in making this assessment. Recovery of a substantial majority of the Group’s deferred tax assets is supported by reversing taxable temporary differences. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are recoverable, management believes that it is more likely than not that the Group will realize the benefits of its deferred tax assets, net of valuation allowance, as of December 31, 2021 and 2022. Valuation allowances have been provided for certain deferred tax assets due to the uncertainty surrounding their realization. As of December 31,2021 and 2022, the valuation allowance on deferred tax assets, mainly arising from operating loss carryforwards, were provided because it was more likely than not that the Group will not be able to utilize the operating loss carryforwards generated by certain unprofitable subsidiaries. The Group operates through its subsidiaries and VIEs. Since each entity files a separate tax return, the valuation allowance is considered on an individual entity basis. As of December 31, 2022, the Group had net operating loss carryforwards of 36,465,159 from its subsidiaries registered in the PRC, which can be carried forward to offset future taxable income. The Group had deferred tax assets related to net operating loss carryforwards of 9,116,290. Net operating losses of RMB 34,020,989 will expire in year in 2026, and in 2027, about RMB 2,444,170 will expire, if not utilized. Management intends to indefinitely reinvest the undistributed earnings of the subsidiaries located in the PRC. The amount of the temporary difference in respect of investments in PRC subsidiaries is RMB2,560,782,025 as of December 31, 2022. Upon repatriation of the subsidiaries’ and the VIE’s earnings, in the form of dividends or otherwise, the Group would be subject to 10% PRC withholding income tax when making distribution to foreign parent companies. However, the Group was not subject to withholding income tax in 2022 because the Group did not make any distribution to foreign parent companies. The related unrecognized deferred tax liabilities were RMB256,078,202. Income before income tax expense is as follows: Year ended December 31 2020 2021 2022 RMB RMB RMB Cayman Islands (2,847,746 ) (189,507 ) (477,322 ) BVI (22,126 ) (247 ) (20,803 ) Hong Kong 3,424,910 (11,202,740 ) 2,773,547 PRC 162,146,528 105,157,938 170,308,632 Total 162,701,566 93,765,444 172,584,054 The reconciliation of the PRC statutory income tax rate of 25%, the income tax rate of the jurisdiction where the Group has substantially all of its operations, to the effective income tax rate is as follows: Year ended December 31 2020 2021 2022 RMB RMB RMB PRC statutory income tax rate 25.00 % 25.00 % 25.00 % (Decrease)/increase in effective income tax rate resulting from: Tax-free income (8.02 )% (10.63 )% (1.36 )% Non-deductible share option expense 9.54 % 5.00 % 0.84 % Other non-deductible expenses 0.29 % 2.56 % 0.67 % Zero tax rate in foreign countries 0.44 % 0.05 % 0.07 % Differential and preferential tax rates (0.49 )% 3.05 % (1.82 )% Changes in valuation allowance 2.49 % 5.14 % (3.54 )% Others 0.16 % 0.29 % 1.71 % Effective income tax rate 29.41 % 30.46 % 21.57 % The Group’s only major jurisdiction is China where tax returns generally remain open and subject to examination by tax authorities for tax years 1999 onwards. The Group did not have any significant unrecognized tax benefits, and no interest and penalty expenses related to income taxes were recorded for the years ended December 31, 2020, 2021 and 2022. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings per share [Abstract] | |
Earnings per share | 28 Earnings per share The following table sets forth the computation of basic and diluted earnings per share for the years ended December 31, 2020, 2021 and 2022: Year ended December 31 2020 2021 2022 RMB RMB RMB Net income 114,852,526 65,207,464 135,351,411 Basic weighted average number of common shares outstanding 1,371,643,240 1,371,643,240 1,371,643,240 Effect of dilutive share options 153,589,125 154,246,831 155,453,871 Dilutive weighted average number of ordinary shares 1,525,232,365 1,525,890,071 1,527,097,111 Basic earnings per share 0.08 0.05 0.10 Diluted earnings per share 0.08 0.05 0.09 In 2020, the Group issued 187,933,720 ordinary shares to the Depositary. No consideration was received by the Group for the issuance. As of December 31, 2022, no share out of the total 187,933,720 ordinary shares were used to settle share-based compensation. The 187,933,720 ordinary shares are legally issued and not outstanding, and do not affect the computation of earnings per share. |
Share-Based Compensation Expens
Share-Based Compensation Expenses | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Compensation Expenses [Abstract] | |
Share-based compensation expenses | 29 Share-based compensation expenses (a) Description of share-based compensation arrangements On January 3, 2017, the Group adopted a new share incentive plan, or the 2017 Share Incentive Plan. Options to purchase 187,933,720 ordinary shares pursuant to the 2017 Share Incentive Plan were issued to certain management and employees. Accordingly, 60%, 20% and 20% of the award options shall vest on December 31, each of the years 2017 to 2019, respectively. Unless terminated earlier, the 2017 Share Incentive Plan will terminate automatically in 2022. On August 27, 2018, 2018 Share Incentive Plan (the “2018 Option”) for granting shares award of CNFinance to certain management members and employees of the Group was issued to concurrently replace the 2017 Share Incentive Plan which granted Sincere Fame’s share. Except for the aforementioned change of grantor and the extension of the termination year by one to December 31 st On December 31, 2019, the Group granted options to certain management and employees to purchase 119,674,780 ordinary shares pursuant to the 2018 Share Incentive Plan (the “2019 Option”). Accordingly, 50%, 30% and 20% of the award options shall vest on December 31, each of the years 2020 to 2022, respectively, with expiration dates on December 31, each of the years 2025 to 2027. Share-based payment transactions with employees, such as share options are measured based on the grant date fair value of the equity instrument. The Group recognizes the compensation costs net of estimated forfeitures over the applicable vesting period. The estimate of forfeitures will be adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures will be recognized through a cumulative catch-up adjustment in the period of change and will also impact the amount of stock compensation expenses to be recognized in future periods. There were no market conditions associated with the share option grants. (b) Fair value of share options and assumptions The fair value of options granted to employees is determined based on a number of factors including valuations. In determining the fair value of equity instruments, the Group referred to valuation reports prepared by an independent third-party appraisal firm, based on data the Group provided. The valuation reports provided the Group with guidelines in determining the fair value of the equity instruments, but the Group is ultimately responsible for the determination of all amounts related to share-based compensation recorded in the financial statements. Excluding the options containing service vesting conditions, the Group calculated the estimated fair value of the options on the respective grant dates using a binomial option pricing model with assistance from independent valuation firms, with the following assumptions: Share awards Share awards Expected volatility 40.00 % 41.52 % Expected dividends - - Risk-free interest rate 3.10 % 3.12 % Expected term (in years) 5 5 Expected life (in years) 6 8 The contractual life of the share option is used as an input into the binomial option pricing model. Exercise multiple and post-vesting forfeit are incorporated into the model as well. 2018 Option When the options of the 2018 Option were issued, the Group’s shares had not been publicly traded and its shares were rarely traded privately. Therefore, the expected volatility is estimated based on the historical volatility of comparable entities with publicly traded shares for the period before the date of grant with length commensurate to contractual life of the options. Since the contractual life of the options is 6 years, the risk-free rate for the expected term of the options is determined based on the yield to maturity of China 6-year government bond at the date of grant. 2019 Option When the options of the 2019 Option were issued, the Group’s shares were already publicly traded. Since the shares have only been publicly traded for just over a year, the expected volatility is estimated based on the historical volatility of comparable entities with publicly traded shares for the period before the date of grant with length commensurate to contractual life of the options. The contractual life of the options is 6 years, 7 years and 8 years, respectively. Therefore, the risk-free rate for the expected term of the options is determined based on the yield to maturity of China 5-year, 7-year and 10-year government bond, using interpolation method, at the date of grant. The Group has not declared or paid any cash dividends on its capital stock and does not anticipate any dividend payments on its ordinary shares in the foreseeable future. If any of the assumptions used in the binomial option pricing model changes significantly, share-based compensation expenses for future awards may differ materially compared with the awards granted previously. A summary of share option activity under the 2018 Option is as follows: Number of Weighted Weighted RMB RMB Balance, December 31, 2016 - - - Granted 187,933,720 - 1.27 Exercised - - - Surrendered - - - Balance, December 31, 2017 187,933,720 - 1.27 Exercisable, December 31, 2017 112,760,232 - 1.27 Expected to vest, December 31, 2017 75,173,488 - 1.27 Balance, December 31, 2017 187,933,720 - 1.27 Granted - - - Exercised - - - Surrendered - - - Balance, December 31, 2018 187,933,720 - 1.27 Exercisable, December 31, 2018 150,346,976 - 1.27 Expected to vest, December 31, 2018 37,586,744 - 1.27 Balance, December 31, 2018 187,933,720 - 1.27 Granted - - - Exercised - - - Surrendered - - - Balance, December 31, 2019 187,933,720 - 1.27 Exercisable, December 31, 2019 187,933,720 - 1.27 Expected to vest, December 31, 2019 - - - A summary of share option activity under the 2019 Option is as follows: Number of Weighted Weighted RMB RMB Balance, December 31, 2018 - - - Granted 119,674,780 - 0.72 Exercised - - - Surrendered - - - Balance, December 31, 2019 119,674,780 - 0.72 Exercisable, December 31, 2019 - - - Expected to vest, December 31, 2019 119,674,780 - 0.72 Balance, December 31, 2019 119,674,780 - 0.72 Granted - - - Exercised - - - Surrendered - - - Balance, December 31, 2020 119,674,780 - 0.72 Exercisable, December 31, 2020 59,837,390 - 0.72 Expected to vest, December 31, 2020 59,837,390 - 0.72 Balance, December 31, 2020 119,674,780 - 0.72 Granted - - - Exercised - - - Surrendered - - - Balance, December 31, 2021 119,674,780 - 0.72 Exercisable, December 31, 2021 95,739,824 - 0.72 Expected to vest, December 31, 2021 23,934,956 - 0.72 Balance, December 31, 2021 119,674,780 - 0.72 Granted - - - Exercised - - - Surrendered - - - Balance, December 31, 2022 119,674,780 - 0.72 Exercisable, December 31, 2022 119,674,780 - 0.72 Expected to vest, December 31, 2022 - - - The following table sets forth the fair value of options and ordinary shares estimated at the dates of option grants indicated below with the assistance from an independent valuation firm. Date of options grant Options Exercise Fair value Fair value of January 3, 2017 75,173,492 RMB0.50 RMB1.26 RMB1.72 January 3, 2017 112,760,238 RMB0.50 RMB1.27 RMB1.72 December 31, 2019 83,772,346 RMB1.00 RMB0.71 RMB1.40 December 31, 2019 35,902,434 RMB1.00 RMB0.75 RMB1.40 For the option granted on January 3, 2017, there was no income tax benefit recognized associated with the share-based compensation expenses. As of December 31, 2019, the expenses in relation to the 2018 Option have been fully recognized. For the 2019 Option, the Group recognized compensation expenses of RMB62,073,367 RMB18,766,367 and RMB5,774,266 in year 2020, 2021 and 2022, respectively. There was no income tax benefit recognized associated with the share-based compensation expenses. As of December 31, 2022, the expenses in relation to the 2019 Option have been fully recognized. |
Material Related Party Transact
Material Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Material Related Party Transactions [Abstract] | |
Material related party transactions | 30 Material related party transactions The Group did not have any related party transactions in the year ended December 31, 2022. |
Operating Leases
Operating Leases | 12 Months Ended |
Dec. 31, 2022 | |
Operating Leases [Abstract] | |
Operating leases | 31 Operating leases The Group leases multiple office spaces which are contracted under various non-cancelable operating leases, most of which provide extension or early termination options and are generally expired in 1 to 4 years. The Group does not enter into any finance leases or leases where the Group is a lessor. Moreover, the existing operating lease agreements do not contain any residual value guarantees or material restrictive covenants. Management determines if an arrangement is a lease at inception and record the leases in the financial statements upon lease commencement, which is the date when the underlying office space is made available for use by the lessor. The incremental borrowing rates determined for computing the lease liabilities are based on the People’s Bank of China (PBOC) Benchmark Rates for terms of loans ranging from zero (exclusive) to 5 years and above. The following tables present the operating lease cost and other supplemental information: Year ended December 31 2020 2021 2022 RMB RMB RMB Operating lease cost (1) 21,719,042 14,764,364 13,966,943 (1) Amounts include short-term leases that are immaterial. December 31, December 31, RMB RMB Weighted-average remaining lease term 1 Year 3.59 Years Weighted-average discount rate 4.73 % 4.75 % Cash paid for amounts included in the measurement of lease liabilities under operating cash flows 15,478,630 15,101,145 ROU assets obtained in exchange for new operating lease liabilities 16,196,806 29,777,357 The following represents the Group’s future undiscounted cash flows for each of the next five years and thereafter and reconciliation to the lease liabilities (excluding short-term operating leases) as of December 31, 2022: Year ended December 31 RMB 2023 12,085,870 2024 6,285,367 2025 4,745,037 2026 4,636,293 2027 3,427,888 Thereafter - Total future operating lease payments 31,180,455 Less: imputed interest (2,596,980 ) Total present value of operating lease liabilities 28,583,475 |
Condensed Financial Information
Condensed Financial Information of the Parent Company | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | 32 Condensed financial information of the parent company The Group’s PRC VIEs and PRC subsidiaries are restricted in their ability to transfer a portion of their net assets to the Group. The payment of dividends by entities organized in China is subject to limitations, procedures and formalities. Regulations in the PRC currently permit payment of dividends only out of accumulated profits as determined in accordance with accounting standards and regulations in China. The Group’s subsidiaries are also required to set aside at least 10% of its net income based on PRC accounting standards each year to its statutory reserves account until the accumulative amount of such reserves reaches 50% of its respective registered capital. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. In addition, the Group’s operations and revenues are conducted and generated in China, all of the Group’s revenues being earned and currency received are denominated in RMB. RMB is subject to the foreign exchange control regulation in China, and, as a result, the Group may be unable to distribute any dividends outside of China due to PRC foreign exchange control regulations that restrict the Group’s ability to convert RMB into US Dollars. Regulation S-X requires the condensed financial information of registrant shall be filed when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. For purposes of the above test, restricted net assets of consolidated subsidiaries shall mean that amount of the registrant’s proportionate share of net assets of consolidated subsidiaries (after intercompany eliminations) which as of the end of the most recent fiscal year may not be transferred to the parent company by subsidiaries in the form of loans, advances or cash dividends without the consent of a third party. The condensed parent company financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X as the restricted net assets of the Group’s PRC subsidiary and VIE exceed 25% of the consolidated net assets of the Group. The condensed financial information of the parent company has been prepared in accordance with SEC Regulation S-X Rule 5-04 and Rule 12-04, using the same accounting policies as set out in the Group’s consolidated financial statements, except that the Group uses the equity method to account for investments in its subsidiaries. The footnote disclosures generally included in financial statements prepared in accordance with U.S. GAAP have been condensed and omitted. The footnote disclosures contain supplemental information relating to the operations of the Group, as such, these statements are not the general-purpose financial statements of the reporting entity and should be read in conjunction with the notes to the consolidated financial statements of the Group. On January 8, 2014, the Group was incorporated in the Cayman Islands with one subscriber’s share allotted and issued at par value of HKD0.0001, representing 100% of the entire ordinary share of the Group. The shareholder as well as shareholder’s equity remained the same until the reorganization with Sincere Fame. Condensed balance sheets December 31, December 31, RMB RMB Assets Cash and cash equivalents - 5,080,204 investment securities - 11,320,828 Investments in subsidiaries 392,559,403 392,559,403 Other assets 291,457,560 212,636,091 Total assets 684,016,963 621,596,526 Liabilities and shareholders’ equity Accrued employee benefits - 620,748 Other operating liabilities 9,697,485 10,827,876 Total liabilities 9,697,485 11,448,624 Ordinary shares (USD0.0001 par value; 3,800,000,000 shares authorized; 1,559,576,960 shares issued and 1,371,643,240 shares outstanding as of December 31, 2021 and December 31, 2022, respectively) 916,743 916,743 Treasury stock - (87,631,475 ) Additional paid-in capital 705,422,445 705,422,445 Retained earnings (7,467,430 ) (7,944,752 ) Accumulated other comprehensive losses (24,552,280 ) (615,059 ) Total shareholders’ equity 674,319,478 610,147,902 Total liabilities and shareholders’ equity 684,016,963 621,596,526 Condensed statements of comprehensive income Year ended December 31 2021 2022 RMB RMB Interest and fees income Interest income on debt securities - 621,472 Interest on deposits with banks 171 20,593 Total interest and fees income 171 642,065 Realized gains on sales of investments, net - 2,889,427 Other gains, net 481,007 (22 ) Total non-interest income 481,007 2,889,405 Operating expenses Employee compensation and benefits (580,464 ) (620,748 ) Other expenses (90,221 ) (3,388,044 ) Total operating expenses (670,685 ) (4,008,792 ) Income before income tax expense (189,507 ) (477,322 ) Net losses (189,507 ) (477,322 ) Other comprehensive (losses)/income Foreign currency translation adjustment (6,970,285 ) 23,937,221 Comprehensive (losses)/income (7,159,792 ) 23,459,899 Condensed statements of cash flows Year ended December 31 2021 2022 RMB RMB Cash flows from operating activities: Net losses (189,507 ) (477,322 ) Other operating assets 483,825 67,500,641 Other operating liabilities (3,609,478 ) 1,751,140 Net cash (used in)/provided by operating activities (3,315,160 ) 68,774,459 Cash flows from financing activities: Repurchase of ordinary shares - (87,631,475 ) Net cash used in financing activities - (87,631,475 ) Net decrease in cash and cash equivalents (3,315,160 ) (18,857,016 ) Cash and cash equivalents at the beginning of year 3,315,160 - Effect of exchange rate change on cash and cash equivalents - 23,937,220 Cash and cash equivalents at the end of year - 5,080,204 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | 33 Commitments and contingencies In 2022, CNFinance entered into a contract with a third-party company for the purchase of commercial properties as office buildings for its own use. As of December 31, 2022, the Group has paid RMB 88,574,103 as agreed in the contract and this amount is being recognized in the account prepaid. The remaining amount of RMB 88,450,000 will be paid by December 30, 2023, and the delivery of the building will be made by February 28, 2024, as the Group completing the payment in full. In addition, the Group has not entered into any derivative contracts that are indexed to the Group’s shares and classified as shareholders’ equity, or that are not reflected in the Group’s consolidated financial statements. Furthermore, the Group does not have any retained or contingent interest in assets transferred to an unconsolidated entity that serves as credit, liquidity or market risk support to such entity. Moreover, the Group does not have any variable interest in any unconsolidated entity that provides financing, liquidity, market risk or credit support to the Group or engages in leasing, hedging or product development services with the Group. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent events | 34 Subsequent events The Group has considered subsequent events through April 27, 2022, which was the date of these consolidated financial statements were issued, and has determined none of these events were required to be recognized or disclosed in the consolidated financial statements and related notes. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Description of Business, Organization, and Basis of Presentation [Abstract] | |
Principles of consolidation | (a) Principles of consolidation The accompanying consolidated financial statements include the financial statements of the Group. All intercompany transactions and balances have been eliminated in consolidation. The Group accounts for investments over which it has significant influence but not a controlling financial interest using the equity method of accounting. Non-controlling interests Non-controlling interests are recognized to reflect the portion of the equity of majority-owned subsidiaries and VIEs which is not attributable, directly or indirectly, to the controlling shareholder. |
Currency translation for financial statements presentation | (b) Currency translation for financial statements presentation The Group uses Renminbi (“RMB”) as its reporting currency. The United States Dollar (“USD”) is the functional currency of the Company incorporated in Cayman and the Group’s subsidiary Sincere Fame incorporated in British Virgin Islands, and the Hong Kong Dollar (“HKD”) is the functional currency of the Group’s subsidiary China Financial Services Group Limited incorporated in Hong Kong and the RMB is the functional currency of the Group’s PRC subsidiaries. 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’ deficit on the consolidated financial statements. The resulting exchange differences are recorded in the consolidated statements of comprehensive income/(losses). |
Use of estimates | (c) Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include, allowance for loans principal, interest and financing service fee receivables, debt securities, guarantee assets, the valuation allowance for deferred tax assets, unrecognized tax benefits, the indefinite reinvestment assertion and the fair value of equity securities and share-based compensation. |
Revenue recognition | (d) Revenue recognition Interest and financing service fees on loans which are amortized over the contractual life of the related loans are recognized in consolidated statements of comprehensive income in accordance with ASC 310 using the effective interest method. The Group considered relevant accounting guidance and concluded that arrangements for its guarantee services provided for its off-balance sheet loans under commercial bank partnership model are out of scope of ASC 606, Revenue from Contracts with Customers. Therefore, “Gains/losses from guarantee liabilities” included in “Net revenue under commercial bank partnership model” on the Consolidated Statements of Comprehensive income should be accounted for in accordance with ASC 460, Guarantees. The other revenue streams under commercial bank partnership model are accounted for in accordance with ASC 606. The criteria of revenue recognition as they relate to each of the following major revenue generating activities are described below: (i) Interest and financing service fees on loans Interest and financing service fees on loans, which include financing service fees on loans, are collected from borrowers for loans and related services. Interest and financing service fees on loans include the amortization of any discount or premium or differences between the initial carrying amount of an interest-bearing asset and its amount at maturity calculated using the effective interest basis. The effective interest method is a method of calculating the amortized cost of a financial asset and of allocating the interest and financing service fees on loans over the years. The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument. When calculating the effective interest rate, the Group estimates cash flows considering all contractual terms of the financial instrument but does not consider future credit losses. Interest on the impaired assets is recognized using the rate of interest used to discount future cash flows. (ii) Interest income on debt securities Interest income on debt securities is calculated by applying the effective interest rate to the gross carrying amount of debt securities to unrelated companies plus any interest received from corporate debt securities. (iii) Revenue under commercial bank partnership model In accordance with the relevant guidance in ASC Topic 606, the amounts associated with guarantee services under commercial bank partnership model 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 under commercial bank partnership model (covering matching of commercial banks to borrowers and facilitating the execution of loan agreement between commercial banks and borrowers) and post-facilitation services under commercial bank partnership model (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 guarantee services under commercial bank partnership model, if any, which is recorded at fair value and recognized amortized during the guarantee term in accordance with ASC Topic 460. Then the remaining considerations are allocated to the loan facilitation under commercial bank partnership model and post-facilitation services under commercial bank partnership model 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 services is recognized as revenue upon execution of loan agreements between commercial banks 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. Remaining performance obligations represents the amount of the transaction price for which services have not been performed under post-facilitation services. The Group collects service fees monthly. The aggregate amounts of the transaction price allocated to performance obligations that are unsatisfied pertaining to post-origination services were RMB67.08million as of December 31, 2022, among which approximately 64.6% of the remaining performance obligations will be recognized over the following 12 months, and with the remainder recognized thereafter. (iv) Mortgage agency service revenue The Group earns mortgage agency service revenue from providing mortgage agency services to borrowers applying for a bank loan. Mortgage agency service fee is often received immediately or shortly after establishing contracts with customers. This kind of revenue is recognized at the time when loan is granted as that is the point of time the Group fulfils the customer’s request, and is then recognized on an accrual basis in accordance with the terms of the relevant agreements. (v) Realized gains/(losses) on sales of investments Realized gains/(losses) consist of realized gains and losses from the sale of investment securities, presented on a net basis. (vi) Net gains/(losses) on sales of loans Net gains/(losses) on sales of loans refer to any gains and losses from the disposal of loans which is accounted for as a sale under ASC 860. (vii) Gains on confiscation of CRMPs Gains on confiscation of credit risk mitigation positions are recognized to the extent confiscated CRMPs exceed previously recognized allowance for loan losses and guarantee asset when sales partners surrender the CRMPs and the obligation of refunding the CRMPs is released. |
Loans | (e) Loans (i) On-balance sheet loans Loans are reported at their outstanding principal balances net of any unearned income and unamortized deferred fees and costs. Loan origination fees and certain direct origination costs are generally deferred and recognized as adjustments to income over the lives of the related loans. The Group facilitates credit to borrowers through structured funds which are considered as consolidated VIEs and the Group evaluated VIEs for consolidation in accordance with ASC 810 in the Consolidated VIEs Section of Note 1. Providing credit strengthening arrangement since March 2018 for the loans to customers under the funds is one of the key factors to determine that the Group should consolidate the structured funds as it is the primary beneficiary of the funds. As a result, the loan principal remains on the Group’s consolidated balance sheets, whilst the funds received from senior tranches holders are recorded as Other Borrowings in the Group’s consolidated balance sheets as disclosed in Note 12(b)(i). Non-accrual policies Loans principal, interest and financing service fee receivables are placed on non-accrual status when payments are 90 days contractually past due. When a loan principal, interest and financing service fee receivable is placed on non-accrual status, interest and financing service fees accrual cease. If the loan is non-accrual, the cost recovery method is used and cash collected is applied to first reduce the carrying value of the loan. Otherwise, interest income may be recognized to the extent cash is received. Loans principal, interest and financing service fee receivables may be returned to accrual status when all of the borrower’s delinquent balances of loans principal, interest and financing service fee have been settled and the borrower continue to perform in accordance with the loan terms for a period of at least six months. Charge-off policies For the years ended December 31, 2021 and 2022, the Group considered loans principal, interest and financing service fee receivables meeting any of the following conditions as uncollectible charged off: (i) death of the borrower; (ii) identification of fraud, and the fraud is officially reported to and filed with relevant law enforcement departments or (iii) the Group concludes that it has exhausted its collection efforts. In order to align the Group’s charge-off policies with ASC 326-20-35-8 (superseded ASC 310-10-35-41), the Group revised its charge-off policies to (1) provide additional information as to the collection efforts which must be exhausted before a charge-off is recorded and (2) charge down loans that are 180 days past due to net realizable value (fair value of collaterals, less estimated costs to sell) unless both well-secured and in the process of collection. The revised charge-off policies are presented as follows: principal, interest and financing service fee receivables are charged down to net realizable value (fair value of collaterals, less estimated costs to sell) when the Group has determined the remaining balance is uncollectable after exhausting all collection efforts. In order to comply with ASC 310 and ASC 326, the Group considers loans principal, interest and financing service fee receivables meeting any of the following conditions as uncollectable and charged-off: (i) death of the borrower; (ii) identification of fraud, and the fraud is officially reported to and filed with relevant law enforcement departments; (iii) sales of loans to third parties; (iv) settlement with the borrower, where the Group releases irrecoverable loans through private negotiations with the borrower where the borrower cannot repay the loan in full through self-funding or voluntary sale of the collateral; (v) disposal through legal proceedings, including but not limited to online arbitrations, judicial auctions and court enforcements; or (vi) loans are 180 days past due unless both well-secured and in the process of collection. Allowance for credit losses Allowance for credit losses represents management’s best estimate of probable losses inherent in the portfolio. Commencing January 1, 2020, CNFinance adopted ASC 326, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which replaced the incurred loss methodology for determining the provision for credit losses and allowance for credit losses (“ACL”) with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) model. ASC 326 defines the ACL as a valuation account that is deducted from the amortized cost of a financial asset to present the net amount that management expects to collect on the financial asset over its expected life. All financial assets carried at amortized cost are in the scope of ASC 326, while assets measured at fair value are excluded. The allowance for credit losses is adjusted each period for changes in expected lifetime credit losses. The allowance for credit losses includes an asset-specific component and a statistically based component. The Group aggregates loans sharing similar risk characteristics into pools for purposes of measuring expected credit losses. Pools are reassessed periodically to confirm that all loans within each pool continue to share similar risk characteristics. Expected credit losses for loans that do not share similar risk characteristics with other financial assets are measured individually. Estimation of CECLs requires CNFinance to make assumptions regarding the likelihood and severity of credit loss events and their impact on expected cash flows, which drive the probability of default (PD), loss given default (LGD) and exposure at default (EAD) models. In its loss forecasting framework, ECL is determined primarily by utilizing models for the borrowers’ PD, LGD and EAD and the Group incorporates forward-looking information through the use of macroeconomic scenarios applied over the forecasted life of the assets. These macroeconomic scenarios include variables that have historically been key drivers of increases and decreases in credit losses. These variables include, but are not limited to, gross-domestic product rates, interest rates and consumer price indexes. The ACL for financial assets held at amortized cost is a valuation account that is deducted from, or added to, the amortized cost basis of the financial assets to present the net amount expected to be collected. When credit expectations change, the valuation account is adjusted with changes reported in provision for credit losses. If amounts previously charged off are subsequently expected to be collected, the Group may recognize a negative allowance, which is limited to the amount that was previously charged off. The asset-specific component is calculated under ASC 310-10-35, on an individual basis for the loans whose payments are contractually past due more than 90 days or which are considered impaired. A financial asset is collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. When a collateral-dependent financial asset is probable of foreclosure, the Group will measure the ACL based on the fair value of the collateral and we will measure the ACL based on the collateral’s net realizable value (fair value of collateral, less estimated costs to sell). Under the collaboration model, when the Group grants a loan through a trust plan, the loan is with the borrower and guarantee is entered into with a separate counterparty (the sales partner). As such, under the definition of ASC 326-20-20, the guarantee arrangement and lending arrangement would be considered freestanding arrangements. As sale partners will provide guarantee of the entire loan to the Group, collection for loss is probable and estimable when a loss on an insured loan is incurred and recognized. In this case, the Group will recognize guarantee loss recoverable asset in the amount that the Group determines is probable to receive from the guarantor with an offsetting entry to “provision for credit losses” when the Group concludes that the loss recovery is collectible. However, potential recovery that exceeds the recognized loss, if any, (gain contingency) will not be recognized until cash is received. Therefore, the amounts estimated to be recoverable from the proceeds of guarantees will be reported as a separate asset (guarantee asset) in the balance sheet. The increase in guaranteed recoverable assets are included in the income statement as a reduction of the “provision for credit losses”, separate disclosure of the increase in guaranteed recoverable assets will be included in the rollforward of the “allowance for credit losses”. The income statement caption will be modified as “Provision for credit losses, net of increase in increase in guaranteed recoverable assets”. Loans held-for-sale Loans held-for-sale are measured at the lower of cost or fair value, with valuation changes recorded in noninterest revenue. The valuation is performed on an individual loan basis. Loan origination fees or costs and purchase price discounts or premiums are deferred in a contra loan account until the related loan is sold. The deferred fees or costs and discounts or premiums are adjustments to the basis of the loan and therefore are included in the periodic determination of the lower of cost or fair value adjustments. The loan is derecognized if the Group does not retain any risk and rewards after transferring the loan. Such transfer would be recorded as sales according to ASC 860-10-40-5. At the time of derecognition, any related loan loss allowance is released. Gains and losses on loans transfer as a sale are recognized in the non-interest income. (ii) Off-balance sheet loans For loans funded by the proceeds from third-party commercial banks, each underlying loan and borrower has to be approved by the third-party commercial banks individually. Once the loan is approved by and originated by the third-party commercial bank, the fund is provided by the third-party commercial bank to the borrower and a lending relationship between the borrower and the third-party commercial bank is established through a loan agreement. Effectively, the Group offers loan facilitation and matching services to the borrowers who have credit needs and the commercial banks who originate loans directly to borrowers referred by the Group. The Group continues to provide post-origination services to the borrowers over the term of the loan agreement. Under this scenario, the Group determines that it is not the legal lender or borrower in the loan origination and repayment process. Accordingly, the Group does not record loans principal, interest and financing service fee receivables arising from these loans nor interest-bearing borrowings to the third-party commercial banks. |
Cash, cash equivalents and restricted cash | (f) Cash, cash equivalents and restricted cash Cash and cash equivalents primarily consist of cash, deposits which are highly liquid and all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. The Group considers highly liquid investments that are readily convertible to known amounts of cash. Restricted cash are cash and cash equivalents that are not readily available for normal disbursement and mainly represents cash and cash equivalents from structured funds. Such restricted cash is not available to fund the general liquidity needs of the Group and could only be used to grant new loans and activities as mentioned in Note 1. |
Investment securities | (g) Investment securities Equity securities Equity securities consist of wealth management products. Equity securities are recorded at fair value and included in the profit and loss of changes in fair value. Realized gains and losses from the sale of investment securities are determined on a specific identification basis and are recorded as realized gains/(losses) on sales of investments. Interest and investment income are recognized when earned. Debt securities Debt securities consist of held-to-maturity debt securities that the Group has the positive intent and ability to hold the security to maturity, and are recorded at amortized cost. The Group reviews its investments in held-to-maturity debt securities for impairment periodically, recognizing an allowance, if any, by applying an estimated loss rate. The Group considers available quantitative and qualitative evidence in evaluating the potential impairment of its investments in held-to-maturity debt securities. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net carrying value at the amount expected to be collected on the held-to-maturity debt securities. |
Property and equipment | (h) Property and equipment Property and equipment are stated at cost. Depreciation on equipment is calculated on the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of the economic useful life of the improvement or the term of the lease. The estimated useful life of office and other equipment range from 1 to 5 years, the estimated useful life of leasehold improvements or the term of the lease range from 1 to 6 years, while the estimated useful lives of motor vehicles range from 3 to 8 years. |
Goodwill | (i) Goodwill Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Impairment tests for cash-generating units containing goodwill The Group assesses goodwill for impairment at the reporting unit level at least annually and more frequently upon the occurrence of certain events. The Group has the option to assess qualitative factors first to determine whether it is necessary to perform the two-step test. If the Group believes, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount, the two-step quantitative impairment test described above is required. Otherwise, no further testing is required. In the qualitative assessment, the Group considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. In performing the two-step quantitative impairment test, the first step compares the carrying amount of the reporting unit to the fair value of the reporting unit based on either quoted market prices of the ordinary shares or estimated fair value using a combination of the income approach and the market approach. If the fair value of the reporting unit exceeds the carrying value of the reporting unit, goodwill is not impaired and the Group is not required to perform further testing. If the carrying value of the reporting unit exceeds the fair value of the reporting unit, then the Group must perform the second step of the impairment test in order to determine the implied fair value of the reporting unit’s goodwill. The fair value of the reporting unit is allocated to its assets and liabilities in a manner similar to a purchase price allocation in order to determine the implied fair value of the reporting unit goodwill. If the carrying amount of the goodwill is greater than its implied fair value, the excess is recognized as an impairment loss. Goodwill is related to the acquisition of Guangzhou Anyu Mortgage Consulting Co., Limited (“Guangzhou Anyu”) |
Intangible assets | (j) Intangible assets Indefinite-lived intangible assets are assets that are not amortized because there is no foreseeable limit to cash flows generated from them. Intangible assets with finite useful lives are amortized on a straight-line basis over their estimated useful lives. The Group categorizes trademarks as indefinite-lived intangible assets, whose carrying value is RMB2.97 million. If it is more likely than not that the asset is impaired, the Group records the amount that the carrying value exceeds the fair value as an impairment expense. The Group performed its annual impairment review of indefinite-lived intangible assets on December 31, 2021 and 2022 and determined that it is more likely than not that the carrying value was less than the fair value. Intangible assets with finite useful lives represent software and cooperation agreements, the estimated useful lives of which are 1 to 5 years and 5 years, respectively. |
Income tax | (k) Income taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and for operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the deferred tax assets or liabilities are expected to be realized or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Group recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured as the largest amount that is greater than 50 percent likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Group classifies interest and penalties related to the liability for unrecognized tax benefits as income tax expense. |
Employee benefit plans | (l) Employee benefit plans Pursuant to relevant PRC regulations, the Group is required to make contributions to various employee benefit plans organized by municipal and provincial PRC governments. The contributions are made for each PRC employee at statutory rates as determined by local social security bureau. Contributions to the employee benefit plans are charged to the consolidated statements of income. The Group has no obligations for payment of pension benefits associated with the plans beyond the amount it is required to contribute. |
Long-lived assets | (m) Long-lived assets Long-lived assets, such as property and equipment, and purchased intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Group first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market value and third-party independent appraisals, as considered necessary. |
Share-based compensation | (n) Share-based compensation The Group measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award and recognizes the cost over the period the employee is required to provide service in exchange for the award, which generally is the vesting period. The Group recognizes compensation cost using a front-loading approach for an award with only service conditions that have a graded vesting schedule over the requisite service period for the entire award, net of estimated forfeitures, provided that the cumulative amount of compensation cost recognized at any date at least equals the portion of the grant-date value of such award that is vested at that date. Forfeiture rates are estimated based on historical and future expectations of employee turnover rates. |
Operating leases | (o) Operating leases Leases where substantially all the rewards and risks of ownership of assets remain with the lessor are accounted for as operating leases. The Group’s lease liability is measured at the present value of future operating lease payments, discounted using the incremental borrowing rate. Right of use asset is measured at the amount of lease liabilities plus prepaid rent and direct costs, less any lease incentives. The operating lease expense is recognized on a straight-line basis over the lease term. Certain of the operating lease agreements contain rent holidays, which are considered in determining the straight-line operating lease expense to be recorded over the lease term. |
Guarantee liabilities | (p) Guarantee liabilities Starting from 2021, the Group started to cooperate with third-party guarantee companies that directly provides guarantee services to commercial banks. According to relevant financial guarantee arrangements, third-party guarantee companies will fulfil its obligations to purchase defaulted loans. However, the Group is required to provide deposits and replenish such deposits from time to time to third-party guarantee companies for its obligations of purchasing defaulted loans. Effectively, the Group provides back-to-back guarantee to third-party guarantee companies and takes on all of the credit risk of the borrowers. These financial guarantee contracts are accounted for as guarantee liabilities under ASC 460, Guarantees. The Group adopted ASC 326, Financial Instruments—Credit Losses, which requires gross accounting for guarantee liability. As a result, at inception of the guarantee under commercial bank partnership model, the Group will recognize both a stand-ready guarantee liability under ASC 460 with an associated guarantee receivable, and a contingent guarantee liability with an allowance for credit losses of the underlying loans under Current expected credit loss (“CECL”) model. Subsequent to the initial recognition, the ASC 460 stand-ready guarantee is released into gains from guarantee liabilities on a straight-line basis over the term of the guarantee, while the contingent guarantee is reduced by the pay-outs made by the Group to compensate the investors upon borrowers’ default. |
Repurchase agreements | (q) Repurchase agreements Financial assets sold under agreements to repurchase do not constitute a sale of the underlying financial assets for accounting purposes and are treated as collateralized financing transactions. Financial assets sold under agreements to repurchase are recorded at the amount of cash received plus accrued interest. Interest paid on agreements to repurchase is recorded in interest expense at the contractually specified rate. |
Commitments and contingencies | (r) Commitments and contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. |
Fair value measurements | (s) Fair value measurements The Group uses valuation approaches that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Group determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels in accordance with ASU 2011-04 (see Note 3 to the consolidated financial statements): ● Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. ● Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. ● Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. The level in the fair value hierarchy within which a fair value measurement in its entirety falls is based on the lowest level input that is significant to the fair value measurement in its entirety. In situations where there is little, if any, market activity for the asset or liability at the measurement date, the fair value measurement reflects management’s own judgments about the assumptions that market participants would use in pricing the asset or liability. Those judgments are developed by management based on the best information available in the circumstances. |
Earnings per share | (t) Earnings per share Basic earnings per share is computed by dividing net income attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Diluted earnings per share is calculated by dividing net income attributable to ordinary shareholders by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Ordinary equivalent shares are not included in the denominator of the diluted earnings per share calculation when inclusion of such shares would be anti-dilutive. |
Segment reporting | (u) Segment reporting The Group uses the management approach in determining its operating segments. The management approach considers the internal reporting used by the Group’s chief operating decision maker for making decisions about the allocation of resources to and the assessment of the performance of the segments of the Group, therefore the management has determined that the Group has one operating segment. All of the Group’s operations and customers are located in the PRC. Consequently, no geographic information is presented. |
Recently issued accounting standards | (v) Recently adopted accounting standards In 2022, the Group adopted the following new accounting guidance: ASU 2022-02 - Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures The ASU 2022-02 is to be adopted on a prospective basis and will be effective for the Group on January 1, 2023, although early adoption is permitted. The Amendment eliminates the accounting guidance for troubled debt restructurings (TDRs) by creditors and introduces new required disclosures for loan modifications made to borrowers experiencing financial difficulty. The Amendment also sets the guidance for vintage disclosures to require disclosure of current period gross charge-offs by year of origination. Adoption of the accounting standard is not expected to have an impact on the Group’s operating results or financial position, as the Group does not involve in the activity of debt restructurings. ASU 2022-03 -Accounting Standards Update No. 2022-03—Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions The ASU 2022-03 is to be adopted on a prospective basis and will be effective for the Group on January 1, 2024, although early adoption is permitted. The Amendment clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and also states that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. The Update also requires few more disclosures on equity securities subject to contractual sale restrictions. |
Revision of immaterial error | (w) Revision of immaterial error In 2022, the Group identified inappropriate initial measurement of held-for-sale loans and derecognition of loans in previous years, leading to overstatement in guaranteed assets and net gains/(losses) on sales of loans as well as understatement in held-for-sale loans and provision for credit losses, which did not affect total asset, net income, cash and cash equivalent, or other subtotal on the accompanying consolidated financial statements. The Group evaluated the materiality of the previously described error from a qualitative and quantitative perspective. Based on such evaluation, the Group concluded that the error was not material to any individual current or prior periods, nor did it have an effect on the Group’s trend of financial result. Although the effect of the error was not material to the current or previously issued financial statements, guaranteed assets and held-for-sale loans in the consolidated balance sheets as well as net gains/(losses) on sales of loans and provision for credit losses in the consolidated statements of comprehensive income for year 2020 and 2021 have been revised accordingly to reflect the immaterial error. Consequently, this had the following impact on certain 2020 and 2021 financial statements’ captions: increases in held-for-sale loans of RMB101.9 million and RMB361.4 million respectively, decreases in guaranteed assets of RMB101.9 million and RMB361.4 million respectively, increases in provision for credit losses of RMB200.2 million and RMB28.9 million respectively and decreases in net gains/(losses) on sales of loans of RMB200.2 million and RMB28.9 million respectively. |
Description of Business, Orga_2
Description of Business, Organization, and Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Description of Business, Organization, and Basis of Presentation [Abstract] | |
Schedule of investment in significant subsidiaries | Place and date of incorporation/ Registered Issued and fully Percentage of equity Principal Name of company establishment capital paid up capital Direct Indirect activities Sincere Fame International Limited British Virgin Islands USD 1,230,434 USD 1,230,434 100 % - Investment Holding China Financial Services Hong Kong HKD 100,000,000 HKD 100,000,000 - 100 % Investment Holding Fanhua Chuang Li Information Technology (Shenzhen) Co., Ltd. the PRC HKD 400,000,000 HKD 400,000,000 - 100 % Investment Holding Shenzhen Fanhua United Investment Group the PRC RMB 250,000,000 RMB 250,000,000 - 100 % Investment Holding Guangzhou Anyu Mortgage Consulting Co., Ltd. the PRC RMB 2,220,000 RMB 2,220,000 - 100 % Micro credit Chongqing Fengjie Financial Advisory Co., Ltd. the PRC RMB 500,000 RMB 500,000 - 100 % Financial consultancy Guangzhou Chengze Information Technology Co., Ltd. the PRC RMB 3,000,000 RMB 3,000,000 - 100 % Software development and maintenance Chongqing Liangjiang New Area Fanhua Micro-credit Co., Ltd. the PRC USD 30,000,000 USD 30,000,000 - 100 % Micro credit Shenzhen Fanhua Micro-credit Co., Ltd. the PRC RMB 300,000,000 RMB 300,000,000 - 100 % Micro credit Place and date of incorporation/ Registered Issued and fully Percentage of equity Principal Name of company establishment capital paid up capital Direct Indirect activities Shenzhen Fanhua Fund Management Services the PRC RMB 5,000,000 RMB 5,000,000 - 100 % Company register service Guangzhou Heze Information Technology Co., Ltd. the PRC RMB 20,000,000 RMB 20,000,000 - 100 % Software development and maintenance Beijing Lianxin Chuanghui Information Technology Co., Ltd. the PRC HKD 10,000,000 HKD 10,000,000 - 100 % Software development and maintenance Shenzhen Fanlian Investment Co., Ltd. the PRC RMB 30,000,000 RMB 30,000,000 - 100 % Investment Holding Fanhua Financial Leasing (Shenzhen) Co., Ltd. 泛华融资租赁 深圳 有限公司 the PRC USD 10,000,000 USD 10,000,000 - 100 % Business Shenzhen Fanhua Chengyu Finance Service Co., Ltd. 深圳泛华诚誉金融配套 the PRC RMB 10,000,000 RMB 10,000,000 - 100 % Labor outsourcing services Beijing Fanhua Qilin Capital Management Co., Ltd. 北京泛华麒麟资本管理 the PRC RMB 100,000,000 RMB 10,000,000 - 96 % Asset Management Shijiazhuang Fanhua Financial Advisory 石家庄泛华财务咨询 the PRC RMB 2,000,000 - - 100 % Financial Consultancy Taizhou Fanhua Financial Advisory Co., Ltd. 泰州泛华财务咨询服务 the PRC RMB 500,000 - - 100 % Financial Consultancy Xuzhou Shenfanlian Enterprise Management Co., Ltd. 徐州深泛联企业管理 the PRC RMB 10,000,000 - - 100 % Enterprise Management Place and date of incorporation/ Registered Issued and fully Percentage of Principal Name of company establishment capital paid up capital Direct Indirect activities Nantong Shenfanlian Enterprise Management Co., Ltd. the PRC RMB 5,000,000 - - 100 % Enterprise Management Baoding Fanjie Financial Advisory Co., Ltd. the PRC RMB 500,000 - - 100 % Financial Consultancy Shenzhen Fancheng Business Operation Management Partnership (Limited Partnership) the PRC RMB 500,000,000 RMB34,550,000 - 100 % Enterprise Management Fanxiaoxuan Cultural Media (Guangzhou) Co., Ltd. the PRC RMB 1,000,000 - - 100 % Enterprise Management Guangzhou Fanze Information Technology Co., Ltd. the PRC RMB 10,000,000 - - 100 % Software development and maintenance Langfang Fanhua Technology Co., Ltd. the PRC RMB 200,000 - - 100 % Software development and maintenance Shenyang Fanhua Financial Advisory Co., Ltd. the PRC RMB 1,000,000 - - 100 % Financial consultancy Luoyang Fanzhan Information technology Co., Ltd. the PRC RMB 500,000 - - 100 % Software development and maintenance Lanzhou Fanhua Enterprise Information Advisory Co., Ltd. the PRC RMB 200,000 - - 100 % Enterprise Management Yantai Shenzhen Fanlian Financial Advisory Co., Ltd. the PRC RMB 1,000,000 - - 100 % Financial consultancy Place and date of incorporation/ Registered Issued and fully Percentage of equity attributable to the Group Principal Name of company establishment capital paid up capital Direct Indirect activities Haikou Fanhua Financial Advisory Co., Ltd. the PRC RMB 1,000,000 - - 100 % Financial consultancy Ganzhou Shenzhen Fanlian Financial Advisory Co., Ltd. the PRC RMB 1,000,000 - - 100 % Financial consultancy Fanhua Jinfu (Foshan) Co., Ltd. the PRC RMB 200,000,000 - - 100 % Financial consultancy Huaian Fanhualian Economic Information Advisory Co., the PRC RMB 1,000,000 - - 100 % Financial consultancy Guangzhou Nansha Weisen Technology Co., Ltd the PRC RMB 500,000 - - 100 % Software development and maintenance Wuxi Shenzhen Fanlian Enterprise Management Co., Ltd. the PRC RMB 500,000 - - 100 % Enterprise Management Shenzhen Fanlian (Hangzhou) Financial Advisory Co., Ltd. the PRC RMB 1,000,000 - - 100 % Financial consultancy Ningbo Lianyi Technological Advisory Co., Ltd. the PRC RMB 50,000,000 - - 100 % Financial consultancy |
Schedule of investments in the consolidated VIEs by the group | Name of structured funds Place and Principal Jinghua Structured Fund 6 the PRC Micro credit Bohai Trust Shenfanlian Micro Finance Structured Fund the PRC Micro credit Bohai Huihe SME Structured Fund the PRC Micro credit Zhongyuan Wealth Anhui Structured Fund 1 the PRC Micro credit Zhongyuan Wealth Anhui Structured Fund 2 the PRC Micro credit Beijing Fanhua Micro-credit Company Limited the PRC Micro credit Zhonghai Lanhai Structured Fund 1 the PRC Micro credit Bairui Hengyi No.613 Structured Fund the PRC Micro credit Bohai Trust No.1 Huiying Structured Fund the PRC Micro credit Bohai Trust No.2 Shenzhen Fanhua United Structured Fund the PRC Micro credit Jinghua Structured Fund 1 the PRC Micro credit Zhonghai Lanhai Structured Fund 1-2 the PRC Micro credit Zhonghai Lanhai Structured Fund 1-3 the PRC Micro credit Hunan Structured Fund 2019-1 the PRC Micro credit Hunan Structured Fund 2019-2 the PRC Micro credit Shaanxi International Xinglong Structured Fund 1-1 the PRC Micro credit Shaanxi International Xinglong Structured Fund 2-1 the PRC Micro credit Bairui Hengyi No.711 Structured Fund the PRC Micro credit Name of structured funds Place and Principal activities Zhonghai Lanhai Structured Fund 1-4 the PRC Micro credit Zhongyuan Wealth Anhui Structured Fund 49 the PRC Micro credit Bairui Hengyi No.724 Structured Fund the PRC Micro credit Zhonghai Lanhai Structured Fund 1-5 the PRC Micro credit Zhonghai Lanhai Structured Fund 1-6 the PRC Micro credit No. 50 Jinghua Structured Fund the PRC Micro credit Zhonghai Lanhai Structured Fund 1-1 the PRC Micro credit Shaanxi International Xinglong Structured Fund 22-1 the PRC Micro credit Zhonghai Lanhai Structured Fund 1-7 the PRC Micro credit No. 74 Jinghua Structured Fund the PRC Micro credit Hunan Structured Fund 2020-1 the PRC Micro credit Shaanxi International Xinglong Structured Fund 2-2 the PRC Micro credit No.103 Jinghua Structured Fund the PRC Micro credit Zhonghai Lanhai Structured Fund 30-X the PRC Micro credit Bohai Trust 2020 Pucheng No. 75 the PRC Micro credit Guomin Tianshu Structured Fund 2-1 the PRC Micro credit Shenzhen Fanshu Information Technology Advisory Partnership (Limited Partnership). the PRC Micro credit Shenzhen Lianshu Economic Information Technology Advisory Partnership (Limited Partnership) the PRC Micro credit Shenzhen Ruishu Economic Information Technology Advisory Partnership (Limited Partnership) the PRC Micro credit Name of structured funds Place and Principal Tianjin Ninghua Economic Information Advisory Partnership (Limited Partnership) the PRC Micro credit Shenzhen Shengshu Information Technology Advisory Partnership (Limited Partnership) the PRC Micro credit Shenzhen Chengshu Information Technology Advisory Partnership (Limited Partnership) the PRC Micro credit Shenzhen Xuanshu Information Technology Advisory Partnership (Limited Partnership) the PRC Micro credit Tianjin Juehua Economic Information Advisory Partnership (Limited Partnership) the PRC Micro credit Zhongrong Yuanshuo No.1 Structured Fund the PRC Micro credit Guangzhou Mingsheng Capital Management Partnership (Limited Partnership) 广州明晟资本管理合伙企业(有限合伙) The PRC January 11, 2022 Micro credit Tianjin Baihua Economic Information Advisory Partnership (Limited Partnership) the PRC Micro credit Bohai Trust 2021 Pucheng No. 83 the PRC Micro credit Zhongrong Yuanshuo No.2 Structured Fund the PRC Micro credit Shenzhen Huashu Information Technology Advisory Partnership (Limited Partnership) the PRC Micro credit Shenzhen Leshu Information Technology Advisory Partnership (Limited Partnership) the PRC Micro credit Zijin No.3 Business Acceleration Structured Fund the PRC Micro credit Zhongliang Hongrui No.1 Structured Fund the PRC Micro credit Zhongrong Yuanshuo No.3 Structured Fund the PRC Micro credit Tianjin Pinhua Economic Information Advisory Partnership (Limited Partnership) the PRC Micro credit |
Schedule of assets and liabilities of the consolidated VIEs | December 31, December 31, RMB RMB Cash, cash equivalents and restricted cash 1,516,044,449 1,265,876,948 Loans principal, interest and financing service fees receivables 9,089,263,433 9,303,729,390 Investment securities 709,255,924 205,711,749 Deferred tax assets 6,903 - Other assets 1,071,073,393 873,978,254 Total assets 12,385,644,102 11,649,296,341 Interest-bearing borrowings 8,041,816,663 7,727,559,338 Income taxes payable 733,159 902,734 Deferred tax liabilities - 15,863 Other liabilities 125,382,650 144,368,848 Total liabilities 8,167,932,472 7,872,846,783 |
Schedule of of operations of the VIEs | Year ended December 31 2020 2021 2022 RMB RMB RMB Revenue 1,731,934,459 1,298,055,332 1,437,398,097 Net income 658,400,554 579,742,472 381,273,670 |
Schedule of cash flows of the VIEs | Year ended December 31 2020 2021 2022 RMB RMB RMB Net cash used in operating activities (303,745,231 ) (1,571,552,463 ) 939,802,714 Net cash provided by/(used in) investing activities 692,705,844 (633,511,824 ) (812,396,284 ) Net cash (used in)/provided by financing activities (429,173,286 ) 2,682,931,827 (377,573,931 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Measurements [Abstract] | |
Schedule of assets measured at fair value on a recurring basis | December 31, 2022 Fair value Level 1 Level 2 Level 3 RMB RMB RMB RMB Wealth management products 244,337,727 206,304,763 38,032,964 - Total 244,337,727 206,304,763 38,032,964 - December 31, 2021 Fair value Level 1 Level 2 Level 3 RMB RMB RMB RMB Wealth management products 847,047,295 729,255,924 117,791,371 - Total 847,047,295 729,255,924 117,791,371 - |
Schedule of assets and liabilities measured at fair value on a non-recurring basis | December 31, 2022 Fair value Level 1 Level 2 Level 3 RMB RMB RMB RMB Assets Loans (1) 61,835,456 - 61,835,456 - Loans held-for-sale (2) 1,844,438,134 - 1,844,438,134 - Equity securities (3) 49,010,000 - 49,010,000 - Total Assets 1,955,283,590 - 1,955,283,590 - Liabilities Guarantee liabilities (4) 82,385,089 - - 82,385,089 Total Liabilities 82,385,089 - - 82,385,089 December 31, 2021 Fair value Level 1 Level 2 Level 3 RMB RMB RMB RMB Assets Loans (1) 64,650,818 - 64,650,818 - Loans held-for-sale (2) 1,095,412,086 - 1,095,412,086 - Equity securities (3) 24,010,000 - 24,010,000 - Total Assets 1,184,072,904 - 1,184,072,904 - (1) Loans are recorded at amortized cost, while the Group records nonrecurring fair value adjustments to reflect partial write-downs that are based on the observable market price of the loan or current appraised value of the collateral. (2) Loans held-for-sale are held at LOCOM (the lower of cost or fair value) which may be written down to fair value on a nonrecurring basis. (3) Nonmarketable equity securities are accounted for using the measurement alternative and can be subject to nonrecurring fair value adjustments to record impairment. (4) Guarantee liabilities are accounted for stand-ready guarantee liabilities of the Group’s guarantee services for its off-balance sheet loans under the commercial bank partnership model at fair value. |
Loans Principal, Interest and_2
Loans Principal, Interest and Financing Service Fee Receivables (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Schedule of allowance for credit losses | Note December 31, December 31, RMB RMB Home equity loans: (a) 9,412,717,366 8,993,547,621 Loans principal, interest and financing service fee receivables Less: allowance for credit losses (i) - Individually assessed (61,479,897 ) (12,247,836 ) - Collectively assessed (914,370,954 ) (727,055,237 ) Subtotal (975,850,851 ) (739,303,073 ) Net loans principal, interest and financing service fee receivables of home equity loan 8,436,866,515 8,254,244,548 Corporate loans: (e) Loans principal, interest and financing service fee receivables - 463,254,567 Less: allowance for credit losses - (24,693,114 ) Net loans principal, interest and financing service fee receivables of corporate loan - 438,561,453 Net loans principal, interest and financing service fee receivables 8,436,866,515 8,692,806,001 |
Schedule of home equity loans | December 31, 2021 December 31, 2022 Note First lien Second lien Subtotal First lien Second lien Subtotal RMB RMB RMB RMB RMB RMB Loans principal, interest and financing service fee receivables 3,514,373,477 5,898,343,889 9,412,717,366 3,360,094,375 5,633,453,246 8,993,547,621 Less: allowance for credit losses (a) - Individually assessed (32,968,721 ) (28,511,176 ) (61,479,897 ) (3,836,350 ) (8,411,486 ) (12,247,836 ) - Collectively assessed (357,239,453 ) (557,131,501 ) (914,370,954 ) (286,300,001 ) (440,755,236 ) (727,055,237 ) Subtotal (390,208,174 ) (585,642,677 ) (975,850,851 ) (290,136,351 ) (449,166,722 ) (739,303,073 ) Net loans principal, interest and financing service fee receivables 3,124,165,303 5,312,701,212 8,436,866,515 3,069,958,024 5,184,286,524 8,254,244,548 |
Schedule of allowance for credit losses | December 31, 2022 Allowance for loans which are collectively assessed Allowance for loans which are individually assessed First lien Second lien Subtotal First lien Second lien Subtotal Total RMB RMB RMB RMB RMB RMB RMB As of January 1 357,239,453 557,131,501 914,370,954 32,968,721 28,511,176 61,479,897 975,850,851 Provision for credit losses (8,058,972 ) (19,852,708 ) (27,911,680 ) 72,834,526 98,794,363 171,628,889 143,717,209 Charge-offs (1,318,568 ) - (1,318,568 ) (7,843,977 ) (44,833,079 ) (52,677,056 ) (53,995,624 ) Increase in guaranteed recoverable assets (61,561,912 ) (96,523,557 ) (158,085,469 ) (102,009,203 ) (87,525,498 ) (189,534,701 ) (347,620,170 ) Recoveries - - - 7,886,283 13,464,524 21,350,807 21,350,807 As of December 31 286,300,001 440,755,236 727,055,237 3,836,350 8,411,486 12,247,836 739,303,073 Net loans principal, interest and financing service fee receivables 3,036,599,198 5,127,455,016 8,164,054,214 33,358,825 56,831,509 90,190,334 8,254,244,548 Recorded investment 3,322,899,199 5,568,210,252 8,891,109,451 37,195,175 65,242,995 102,438,170 8,993,547,621 December 31, 2021 Allowance for loans which are collectively assessed Allowance for loans which are individually assessed First lien Second lien Subtotal First lien Second lien Subtotal Total RMB RMB RMB RMB RMB RMB RMB As of January 1 222,034,414 313,932,763 535,967,177 27,176,553 44,821,768 71,998,321 607,965,498 Provision for credit losses 1,184,418 (6,117,066 ) (4,932,648 ) (65,333,841 ) (137,477,353 ) (202,811,194 ) (207,743,842 ) Charge-offs (53,919,303 ) (69,524,088 ) (123,443,391 ) (9,950,932 ) (11,630,112 ) (21,581,044 ) (145,024,435 ) Increase in guaranteed recoverable assets 187,939,924 318,839,892 506,779,816 18,633,218 16,504,672 35,137,890 541,917,706 Recoveries - - - 62,443,724 116,292,200 178,735,924 178,735,924 As of December 31 357,239,453 557,131,501 914,370,954 32,968,721 28,511,176 61,479,897 975,850,851 Net loans principal, interest and financing service fee receivables 3,048,382,936 5,249,959,347 8,298,342,283 75,782,367 62,741,865 138,524,232 8,436,866,515 Recorded investment 3,405,622,388 5,807,090,849 9,212,713,237 108,751,089 91,253,040 200,004,129 9,412,717,366 |
Schedule of aging of allowance for credit losses | Total current 1 - 30 days 31 - 90 days 91 - 180 days Total loans RMB RMB RMB RMB RMB The collaboration model First lien 116,930,653 82,019,376 86,848,853 3,836,350 289,635,232 Second lien 214,691,499 118,189,879 105,038,216 8,411,486 446,331,080 Subtotal 331,622,152 200,209,255 191,887,069 12,247,836 735,966,312 The traditional facilitation model First lien 656 500,463 - - 501,119 Second lien 2,832,406 3,236 - - 2,835,642 Subtotal 2,833,062 503,699 - - 3,336,761 Allowance for credit losses 334,455,214 200,712,954 191,887,069 12,247,836 739,303,073 Total current 1 - 30 days 31 - 90 days 91 - 180 days past due Total loans RMB RMB RMB RMB RMB The collaboration model First lien 189,814,922 86,537,327 66,784,464 31,394,514 374,531,227 Second lien 340,800,002 124,542,266 80,395,050 26,996,820 572,734,138 Subtotal 530,614,924 211,079,593 147,179,514 58,391,334 947,265,365 The traditional facilitation model First lien 5,618,913 3,503,613 4,980,213 1,574,208 15,676,947 Second lien 5,491,292 2,285,562 3,617,330 1,514,355 12,908,539 Subtotal 11,110,205 5,789,175 8,597,543 3,088,563 28,585,486 Allowance for credit losses 541,725,129 216,868,768 155,777,057 61,479,897 975,850,851 |
Schedule of aging of allowance for credit losses | Total current 1 - 30 days 31 - 90 days 91 - 180 days 181 - 270 days 271 - 360 days 361 days Total loans Total RMB RMB RMB RMB RMB RMB RMB RMB RMB The collaboration model First lien 2,621,922,407 357,338,815 339,856,221 10,753,640 4,686,900 2,446,894 17,790,991 3,354,795,868 35,678,425 Second lien 4,596,435,737 515,052,451 410,753,899 16,756,323 22,661,421 9,951,192 14,507,390 5,586,118,413 63,876,326 Subtotal 7,218,358,144 872,391,266 750,610,120 27,509,963 27,348,321 12,398,086 32,298,381 8,940,914,281 99,554,751 The traditional facilitation model First lien 1,493,232 2,163,296 - 544,591 - - 1,097,387 5,298,506 1,641,978 Second lien 45,954,310 13,855 - - - - 1,366,669 47,334,834 1,366,669 Subtotal 47,447,542 2,177,151 - 544,591 - - 2,464,056 52,633,340 3,008,647 Loans principal, interest and financing service fee receivables 7,265,805,686 874,568,417 750,610,120 28,054,554 27,348,321 12,398,086 34,762,437 8,993,547,621 102,563,398 Total current 1 - 30 days 31 - 90 days 91 - 180 days 181 - 269 days 270 - 360 days 361 days Total loans Total RMB RMB RMB RMB RMB RMB RMB RMB RMB The collaboration model First lien 2,814,226,880 325,090,831 230,622,938 65,080,342 6,979,995 5,972,352 24,768,894 3,472,742,232 102,801,583 Second lien 5,030,913,080 467,836,400 276,784,712 52,043,750 7,455,656 6,468,134 17,308,803 5,858,810,535 83,276,343 Subtotal 7,845,139,960 792,927,231 507,407,650 117,124,092 14,435,651 12,440,486 42,077,697 9,331,552,767 186,077,926 The traditional facilitation model First lien 20,814,948 6,532,393 8,334,398 4,887,949 285,023 122,845 653,689 41,631,245 5,949,506 Second lien 21,237,555 4,238,098 6,081,004 5,027,879 360,727 673,625 1,914,466 39,533,354 7,976,697 Subtotal 42,052,503 10,770,491 14,415,402 9,915,828 645,750 796,470 2,568,155 81,164,599 13,926,203 Loans principal, interest and financing service fee receivables 7,887,192,463 803,697,722 521,823,052 127,039,920 15,081,401 13,236,956 44,645,852 9,412,717,366 200,004,129 |
Schedule of impaired loans | Recorded investment Unpaid Impaired loans Impaired loans with related allowance for credit losses Impaired loans without related allowance for credit losses Related allowance for credit losses RMB RMB RMB RMB RMB First lien 32,981,329 37,320,404 8,776,965 28,543,440 3,836,350 Second lien 62,134,501 65,242,994 15,257,298 49,985,695 8,411,486 As of December 31, 2022 95,115,830 102,563,398 24,034,263 78,529,135 12,247,836 First lien 102,914,225 108,751,090 64,871,825 43,879,265 32,968,721 Second lien 88,073,367 91,253,039 50,995,087 40,257,952 28,511,176 As of December 31, 2021 190,987,592 200,004,129 115,866,912 84,137,217 61,479,897 |
Schedule of average recorded investment in impaired loans | Year ended Year ended Average recorded investment Interest and fees income recognized Average recorded investment Interest and fees income recognized RMB RMB RMB RMB First lien 184,523,313 61,453,546 73,035,747 82,191,331 Second lien 176,098,252 61,775,021 78,248,017 83,791,498 Impaired loans 360,621,565 123,228,567 151,283,764 165,982,829 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of carrying amount and fair value of the investment securities | Aggregate Profits and Aggregate RMB RMB RMB As of December 31, 2022: Wealth management products 243,542,140 795,587 244,337,727 Total 243,542,140 795,587 244,337,727 Aggregate Profits and Aggregate RMB RMB RMB As of December 31, 2021: Wealth management products 845,888,854 1,158,441 847,047,295 Total 845,888,854 1,158,441 847,047,295 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | December 31, December 31, RMB RMB Office and other equipment 18,059,177 18,167,730 Leasehold improvements 17,179,429 16,904,137 Motor vehicles 2,052,245 2,372,413 Less: accumulated depreciation (34,248,905 ) (35,160,018 ) Total 3,041,946 2,284,262 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets and goodwil | Note December 31, December 31, RMB RMB Intangible assets (a) 4,009,372 3,487,733 |
Schedule of intangible assets | December 31, 2021 December 31, 2022 Gross carrying Accumulated amortisation Net carrying value Gross carrying Accumulated amortisation Net carrying value RMB RMB RMB RMB RMB RMB Amortized intangible assets: Software 10,793,974 (9,754,602 ) 1,039,372 10,793,974 (10,276,241 ) 517,733 Cooperation agreement 5,030,000 (5,030,000 ) - 5,030,000 (5,030,000 ) - Total amortized intangible assets 15,823,974 (14,784,602 ) 1,039,372 15,823,974 (15,306,241 ) 517,733 Unamortized intangible assets: Trademarks 2,970,000 2,970,000 |
Schedule of amortization expense for current year and future periods | Software RMB Year ended December 31, 2022 (actual) 521,639 Estimate for year ended December 31, 2023 517,143 2024 590 2025 - 2026 - 2027 - |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Schedule of Other Assets [Abstract] | |
Schedule of other assets | Note December 31, December 31, RMB RMB Receivable from sale of loans (i) 197,226,882 32,469,152 Guarantee deposits (ii) 74,680,000 243,470,845 Receivables from disposal of subsidiary (iii) 50,000,000 - Prepayments 34,068,479 94,853,194 Non-marketable equity securities (iv) 24,010,000 49,010,000 Amounts due from employees (v) 4,606,389 34,269,800 Receivables for realization of collaterals (vi) 722,603 31,022,975 Receivables from loan facilitation service - 49,963,322 Receivables of guarantee service - 97,552,160 Other receivables 19,511,778 37,277,452 Total 404,826,131 669,888,900 (i) As mentioned in Note 5, the Group transferred the delinquent loans to third parties so that the Group could collect the payment more quickly than to simply dispose the collaterals through litigation. The transferred loans have been isolated from the Group. There is no constrain on the transferee’s rights to pledge or exchange. The Group does not maintain effective control of transferred loans and loan transfers accounted for as sales are the transfer transactions without repurchase agreements. In 2021, the Group transferred loans under traditional facilitation model with balances amounting to RMB990,485,783 to Guangzhou Minghui Capital Management Co., Ltd. (“Guangzhou Minghui”) for transfer price of RMB350,783,000. As of December 31, 2022, the amount due from Guangzhou Minghui for such transfer is RMB27,769,074. (ii) Guarantee deposits are deposits that the Group provided, through Guangdong Nanfeng Financial Guarantee Group Co., Ltd (“Guangzhou Nanfeng”), which holds a financial guarantee license, for loans granted (a) under its consolidated VIE Zhonghai Lanhai Structured Fund 30-X, which is not structured in a stratified way and requires guarantee from a third party, and (b) under the cooperation with commercial banks for introduction of borrowers and provision of post-origination services, refer to Note 2(e)(ii) Off-balance sheet loans. (iii) The Group disposed of one of its wholly-owned subsidiaries Ningbo Lianjia Enterprise Management Advisory Co., Ltd. to an unrelated third party in 2021 and relevant consideration was received in January 2022. (iv) In June 2016, the Group invested 10,003,334 shares at RMB3.00 per share, which represents 2.14% of the paid-in capital in Guangdong Qingyuan Rural Commercial Bank (“Qingyuan Rural”). The Group transferred 2 million shares to an unrelated third party at RMB3.00 per share that is same as the investment cost on September 18, 2019. As of December 31, 2021 and 2022, the Group invested 1.72% of the paid-in capital in Qingyuan Rural. Qingyuan Rural has paid-in capital of RMB1,400,000,000, and the Group has invested RMB24,010,000 in Qingyuan Rural. In January 2022, the Group and Guangzhou Minghui set up Guangzhou Mingfeng Partnership (“Guangzhou Mingfeng”). The total paid-in capital was RMB40,000,000 and the Group has invested RMB25,000,000 in Guangzhou Mingfeng. The measurement alternative is selected for the above non-marketable equity securities. Under the measurement alternative, the equity securities without readily determinable fair value are measured at cost minus impairment and adjusted for changes in observable prices. No change in observable price has been identified and no impairment has been recorded for the two years of 2021 and 2022. (v) Amounts due from employees mainly include temporary advances to employees for payments of collateral evaluation fee, mortgage handling fee, payments for office supplies, etc. on behalf of the Group. (vi) the receivables for realization of collaterals under traditional model is RMB238,616 and the receivables for realization of collaterals under commercial bank partnership model is RMB30,784,359. |
Interest-Bearing Borrowings (Ta
Interest-Bearing Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Interest-Bearing Borrowings [Abstract] | |
Schedule of repurchase the financial assets at the transaction’s maturity | Note Fixed interest rate Term December 31, December 31, RMB RMB Repurchase agreements Funds obtained from Financial institutions (i) 10.5% to 13.8% Within 2 years 45,250,000 111,593,865 Interest payable Financial institutions (i) - 1,048,145 Total repurchase agreements 45,250,000 112,642,010 |
Schedule of carrying amounts of pledged assets | December 31, December 31, RMB RMB Underlying collateral types of gross obligations Repurchase agreements: Loans principal, interest and financing service fee receivables 45,250,000 111,593,865 Total repurchase agreements 45,250,000 111,593,865 |
Schedule of contractual maturities of the gross obligations under repurchase agreements | Overnight Up to 30 days 30 to 90 days Greater than 90 days Total gross obligations RMB RMB RMB RMB RMB Repurchase agreements As of December 31, 2022 - - - 111,593,865 111,593,865 As of December 31, 2021 - - - 45,250,000 45,250,000 |
Schedule of other borrowings | Other borrowings Note Fixed interest rate per annum Term December 31, December 31, RMB RMB Short-term: Investors of consolidated VIEs (i) 6.3% to 10.5% Less than 1 year 4,654,388,213 5,675,480,078 Long-term: Investors of consolidated VIEs (i) 7.0% to 11.5% 1 - 5 years 3,330,334,482 1,991,623,976 Interest payable to Investors of consolidated VIEs (i) 57,169,385 60,455,283 Total 8,041,892,080 7,727,559,337 (i) The financial liabilities arising from the VIEs with underlying investments in loans to customers are classified as payable in these consolidated financial statements. It is because the Group has an obligation to pay senior tranches holders upon maturity dates based on the related terms of those consolidated structured funds. As of December 31, 2022, the borrowings from VIEs have principal RMB7,667,104,054, bearing interests from 6.3% to 11.5% per year. |
Schedule of aggregate annual maturities of long-term borrowing obligations | December 31, 2022 2023 2024 2025 2026 2027 Thereafter Total RMB RMB RMB RMB RMB RMB RMB Investors of consolidated VIEs - 1,084,492,735 237,055,841 13,075,400 - 657,000,000 1,991,623,976 |
Schedule of carrying amounts of pledged assets | December 31, December 31, RMB RMB Loans principal, interest and financing service fee receivables 64,640,192 147,257,249 Total 64,640,192 147,257,249 |
Credit Risk Mitigation Positi_2
Credit Risk Mitigation Position (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Schedule of Credit Risk Mitigation Position [Abstract] | |
Schedule of credit risk mitigation position | December 31, December 31, RMB RMB Balance at the beginning of the year 1,209,729,138 1,348,449,426 Increase during the year 1,203,458,816 960,663,187 Decrease during the year (1,052,004,847 ) (883,079,007 ) Confiscation during the year (12,733,681 ) (71,380,536 ) Balance at the end of the year 1,348,449,426 1,354,653,070 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Schedule of Other Liabilities [Abstract] | |
Schedule of other liabilities | Note December 31, December 31, RMB RMB Guarantee repayments from sales partner (i) 259,439,715 416,698,397 Guarantee liabilities (ii) 3,182,958 230,867,505 Settlement and clearing accounts (iii) 74,255,253 135,652,186 Other tax payables (iv) 70,756,236 74,985,486 Collaboration cost payable (v) 59,554,661 50,393,275 Customer pledged deposits (vi) 40,363,129 39,296,162 Receipt in advance (vii) 53,125,074 35,645,384 Amounts due to third parties 216,526,655 18,591,226 Accrued expenses (viii) 5,773,392 16,486,002 Others (ix) 2,784,212 9,855,045 Total 785,761,285 1,028,470,668 (i) Under the collaboration model, sales partners are required to provide a certain level of guarantee of repayment for loans recommended. Guarantee repayments from sales partner mainly consist of repayments collected from sales partners who exercise the guarantee, and those repayments will be returned to trust company. In accordance with the Company’s PRC subsidiaries’ articles of associate, the subsidiaries are required to appropriate 10% of their net incomes, upon approval by board of directors. (ii) In 2021, the Group started to cooperate with a third-party guarantee company, Guangzhou Nanfeng, that directly provides guarantee services to commercial banks. According to relevant financial guarantee arrangements, Guangzhou Nanfeng will fulfil its obligations to purchase defaulted loans. However, the Group is required to provide deposits and replenish such deposits from time to time to Guangzhou Nanfeng for its obligations of purchasing defaulted loans. Effectively, the Group provides back-to-back guarantee to Guangzhou Nanfeng and takes on all of the credit risk of the borrowers. These financial guarantee contracts are accounted for as guarantee liabilities under ASC 460, Guarantees. As of December 31, 2022, maximum potential undiscounted future payment that the Group would be required to make was RMB2,450.37 million. The initial term of the guarantee liabilities is the same as the term of loans facilitated under the arrangements with commercial banks, which ranges from 1 year to 10 years, as of December 31, 2022. The remaining term of the guarantee liabilities range from 1 year to 10 years as of December 31, 2022. (iii) The Group transferred loans to third party investors and recorded these transactions as sales in Note 5(c). After the transfer, the contract terms related to payment proceeds from the loans remain the same: The Group collects payments of loans and then disburses the proceeds from the relevant loans to third-party transferees. (iv) Other tax payables mainly represent value-added tax and surcharges payables. (v) As mentioned in Note 21, the Group will pay collaboration cost to the sales partners who introduce prospective borrowers to the Group. The collaboration cost for sales partners is a fixed percentage of the loan principal amount and is calculated by subtracting the project cost from interest and fees income received from borrowers. (vi) Customer pledged deposits mainly consist of the deposits collected from certain customers to reduce the risk of failure to make payments on schedule. (vii) Receipt in advance consists of advance for interest and financing service fees on loans and down payments of loans held-for-sale by loan transferees. (viii) Accrued expenses mainly consist of promotional costs relating to building the collaboration model and expenses payable to consultants such as the auditor and lawyer. (ix) Other liabilities are expected to be settled or recognized as income within one year or are repayable on demand. |
Retained Earnings (Tables)
Retained Earnings (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retained Earnings Disclosure Abstract | |
Schedule of retained earnings | Note December 31, December 31, RMB RMB PRC statutory reserves (i) 258,654,052 258,654,052 PRC surplus reserves (ii) 164,653,757 169,552,789 Unreserved retained earnings 2,401,027,454 2,530,509,454 Total 2,824,335,263 2,958,716,295 (i) With effect from July 1, 2012, pursuant to the “Administrative Measures on Accrual of Provisions by Financial Institutions” issued by the MOF in March 2012, the Group is required, in principle, to set aside a general reserve not lower than 1.5% of the ending balance of its gross risk-bearing assets. (ii) In accordance with the Company’s PRC subsidiaries’ articles of associate, the subsidiaries are required to appropriate 10% of their net incomes, upon approval by board of directors. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Losses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Losses [Abstract] | |
Schedule of accumulated other comprehensive losses | Balance as of Other comprehensive Balance as of December 31, 2021 RMB RMB RMB Foreign currency translation adjustment (18,456,546 ) (6,936,969 ) (25,393,515 ) Total (18,456,546 ) (6,936,969 ) (25,393,515 ) Balance as of Other comprehensive Balance as of December 31, 2022 RMB RMB RMB Foreign currency translation adjustment (25,393,515 ) 15,181,518 (10,211,997 ) Total (25,393,515 ) 15,181,518 (10,211,997 ) |
Interest and Fees Income (Table
Interest and Fees Income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Schedule of Interest and Fees Income Costs [Abstract] | |
Schedule of interest and fees income costs | Year ended December 31, Note 2020 2021 2022 RMB RMB RMB Interest and financing service fees on loans (i) 1,828,687,910 1,770,351,645 1,574,074,534 - Interest income 1,828,687,910 1,759,906,523 1,573,405,364 - Financing service fees - 10,445,122 669,170 Interest income charged to sales partners (ii) 10,001,581 33,448,660 122,019,472 Interest income on debt securities (iii) - - 22,195,046 Interest on deposits with banks 16,133,918 11,973,675 13,063,523 Total 1,854,823,409 1,815,773,980 1,731,352,575 (i) Interest and financing service fees on loans, which include financing service fees on loans, are recognized in the consolidated statements of comprehensive income using the effective interest method. Financing service fees on loans, are deferred and amortized over the contractual life of the related loans utilizing the effective interest method. (ii) Interest income charged to sales partners refers to the cost of and interest on the partner’s instalment repurchase options under collaboration model. (iii) Interest income on debt securities in forms of partnership investment and corporate debt securities. Please refer to note 6(b). |
Provision for Credit Losses (Ta
Provision for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Provision for Credit Losses [Abstract] | |
Schedule of provision for credit losses | Year ended December 31, 2020 2021 2022 RMB RMB RMB Home equity loans (58,216,554 ) 257,624,013 (55,755,647 ) Corporate loans - - (24,693,114 ) Debt securities - (5,403,084 ) (10,565,475 ) Guarantee liabilities - (3,182,958 ) (155,017,657 ) Trade and other receivables (19,131,926 ) 49,429,922 7,947,030 Total (77,348,480 ) 298,467,893 (238,084,863 ) |
Other Gains, Net (Tables)
Other Gains, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Schedule of Other Gains, Net [Abstract] | |
Schedule of other gains, net | Year ended December 31, Note 2020 2021 2022 RMB RMB RMB Net gains on confiscated credit risk mitigation positions (i) 13,446,619 12,733,681 71,380,536 Profits/(losses) from fair value changes (ii) 56,773 1,101,669 (362,855 ) Foreign exchange (losses)/gains (iii) (5,345,004 ) 786,080 7,355,135 Net loss on disposal of property and equipment (2,868 ) (328,262 ) (30,742 ) Mortgage agency service revenue 511,500 - - Others 1,093,452 7,768,674 11,571,964 Total 9,760,472 22,061,842 89,914,038 (i) Sales partners provide CRMPs as security deposits. Pursuant to the collaboration agreements if the debtor’s loan principal repayments or accrued interests are past due or the loan is in default, sales partners are obliged to fulfill their guaranteed responsibility by selecting among different approaches, otherwise the CRMPs deposited by sales partners are confiscated by the Group, refer to Note 1 (ii) Profits/(losses) from fair value changes refers to gains or losses resulting from changes in the fair value of investment securities. (iii) The changes of foreign exchange gain/(loss) are mainly due to exchange rate changes in cash and cash equivalents held by the Group, including US dollar account and Hong Kong dollar account. The Group recorded a foreign exchange gain as RMB7,355,135 in 2022, an increase of RMB6,569,055 compared with that in 2021. The gain is mainly due to the increase of the exchange rate between Hong Kong dollar and RMB and the US dollar against RMB. |
Other Expenses (Tables)
Other Expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Expenses [Abstract] | |
Schedule of other expenses | Year ended December 31 2020 2021 2022 RMB RMB RMB Advertising and promotion expenses 30,471,983 29,171,942 32,412,727 Litigation and attorney fees 33,267,682 18,697,784 7,680,633 Entertainment and travelling expenses 7,010,704 10,793,089 9,740,873 Office and commute expenses 9,120,261 10,711,801 7,791,694 Consulting fees 14,486,656 9,330,732 12,016,260 Communication expenses 2,495,071 3,861,529 2,424,242 Depreciation and amortization 6,047,226 3,821,788 2,244,279 Directors and officers liability insurance 4,232,722 3,545,117 3,474,151 Research and development expenses 9,960,607 1,602,095 760,465 Others 6,949,270 8,964,511 7,344,173 Total 124,042,182 100,500,388 85,889,497 |
Income Tax Expense (Tables)
Income Tax Expense (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Schedule of Income Tax Expense Relates to the PRC [Abstract] | |
Schedule of income tax expense relates to the PRC | Year ended December 31 2020 2021 2022 RMB RMB RMB Current tax expense 142,238,819 218,567,885 171,146,093 Deferred tax benefit (94,389,779 ) (190,009,905 ) (133,913,450 ) Total income tax expense 47,849,040 28,557,980 37,232,643 |
Schedule of components of the deferred tax assets and liabilities | Year ended December 31 2021 2022 RMB RMB Deferred tax assets: Net loans principal, interest and financing service fee receivables 444,036,207 316,744,794 Debt securities 1,350,771 3,992,140 Guarantee liabilities - 37,120,604 Net operating loss carry-forwards 15,226,575 9,116,290 Lease liabilities 3,880,255 7,145,869 Other deferred tax assets 928,979 669,876 Total deferred tax assets 465,422,787 374,789,573 Valuation allowance (15,226,575 ) (9,116,290 ) Deferred tax assets, net of valuation allowance 450,196,212 365,673,283 Net deferred tax assets 21,068,094 76,904,707 Deferred tax liabilities: Intangible assets (742,500 ) (742,500 ) Equity securities (289,610 ) (171,864 ) Right-of-use assets (4,049,202 ) (7,444,339 ) Intercompany receivables (45,849,201 ) (41,988,923 ) Guarantee assets (322,437,865 ) (181,602,700 ) Undistributed earnings from structured funds (207,588,600 ) (130,570,272 ) Total deferred tax liabilities (580,956,978 ) (362,520,598 ) Net deferred tax liabilities (151,828,860 ) (73,752,022 ) |
Schedule of movement of valuation allowance | Year ended December 31 2021 2022 RMB RMB At the beginning of year 10,443,239 15,226,575 Current year additions 7,238,296 613,314 Current year reversals (2,427,869 ) (6,722,726 ) Current year expiration of carryforwards (27,091 ) (873 ) Net change in the valuation allowance 4,783,336 (6,110,285 ) At the end of year 15,226,575 9,116,290 |
Schedule of income before income tax | Year ended December 31 2020 2021 2022 RMB RMB RMB Cayman Islands (2,847,746 ) (189,507 ) (477,322 ) BVI (22,126 ) (247 ) (20,803 ) Hong Kong 3,424,910 (11,202,740 ) 2,773,547 PRC 162,146,528 105,157,938 170,308,632 Total 162,701,566 93,765,444 172,584,054 |
Schedule of reconciliation of statutory income tax rate to the effective income tax rate | Year ended December 31 2020 2021 2022 RMB RMB RMB PRC statutory income tax rate 25.00 % 25.00 % 25.00 % (Decrease)/increase in effective income tax rate resulting from: Tax-free income (8.02 )% (10.63 )% (1.36 )% Non-deductible share option expense 9.54 % 5.00 % 0.84 % Other non-deductible expenses 0.29 % 2.56 % 0.67 % Zero tax rate in foreign countries 0.44 % 0.05 % 0.07 % Differential and preferential tax rates (0.49 )% 3.05 % (1.82 )% Changes in valuation allowance 2.49 % 5.14 % (3.54 )% Others 0.16 % 0.29 % 1.71 % Effective income tax rate 29.41 % 30.46 % 21.57 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings per share [Abstract] | |
Schedule of computation of basic and diluted earnings per share | Year ended December 31 2020 2021 2022 RMB RMB RMB Net income 114,852,526 65,207,464 135,351,411 Basic weighted average number of common shares outstanding 1,371,643,240 1,371,643,240 1,371,643,240 Effect of dilutive share options 153,589,125 154,246,831 155,453,871 Dilutive weighted average number of ordinary shares 1,525,232,365 1,525,890,071 1,527,097,111 Basic earnings per share 0.08 0.05 0.10 Diluted earnings per share 0.08 0.05 0.09 |
Share-Based Compensation Expe_2
Share-Based Compensation Expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Compensation Expenses [Abstract] | |
Schedule of estimated fair value of binomial option pricing model | Share awards Share awards Expected volatility 40.00 % 41.52 % Expected dividends - - Risk-free interest rate 3.10 % 3.12 % Expected term (in years) 5 5 Expected life (in years) 6 8 |
Schedule of summary of share option activity | Number of Weighted Weighted RMB RMB Balance, December 31, 2016 - - - Granted 187,933,720 - 1.27 Exercised - - - Surrendered - - - Balance, December 31, 2017 187,933,720 - 1.27 Exercisable, December 31, 2017 112,760,232 - 1.27 Expected to vest, December 31, 2017 75,173,488 - 1.27 Balance, December 31, 2017 187,933,720 - 1.27 Granted - - - Exercised - - - Surrendered - - - Balance, December 31, 2018 187,933,720 - 1.27 Exercisable, December 31, 2018 150,346,976 - 1.27 Expected to vest, December 31, 2018 37,586,744 - 1.27 Balance, December 31, 2018 187,933,720 - 1.27 Granted - - - Exercised - - - Surrendered - - - Balance, December 31, 2019 187,933,720 - 1.27 Exercisable, December 31, 2019 187,933,720 - 1.27 Expected to vest, December 31, 2019 - - - Number of Weighted Weighted RMB RMB Balance, December 31, 2018 - - - Granted 119,674,780 - 0.72 Exercised - - - Surrendered - - - Balance, December 31, 2019 119,674,780 - 0.72 Exercisable, December 31, 2019 - - - Expected to vest, December 31, 2019 119,674,780 - 0.72 Balance, December 31, 2019 119,674,780 - 0.72 Granted - - - Exercised - - - Surrendered - - - Balance, December 31, 2020 119,674,780 - 0.72 Exercisable, December 31, 2020 59,837,390 - 0.72 Expected to vest, December 31, 2020 59,837,390 - 0.72 Balance, December 31, 2020 119,674,780 - 0.72 Granted - - - Exercised - - - Surrendered - - - Balance, December 31, 2021 119,674,780 - 0.72 Exercisable, December 31, 2021 95,739,824 - 0.72 Expected to vest, December 31, 2021 23,934,956 - 0.72 Balance, December 31, 2021 119,674,780 - 0.72 Granted - - - Exercised - - - Surrendered - - - Balance, December 31, 2022 119,674,780 - 0.72 Exercisable, December 31, 2022 119,674,780 - 0.72 Expected to vest, December 31, 2022 - - - |
Schedule of fair value of options and ordinary shares estimated at the dates of option grants | Date of options grant Options Exercise Fair value Fair value of January 3, 2017 75,173,492 RMB0.50 RMB1.26 RMB1.72 January 3, 2017 112,760,238 RMB0.50 RMB1.27 RMB1.72 December 31, 2019 83,772,346 RMB1.00 RMB0.71 RMB1.40 December 31, 2019 35,902,434 RMB1.00 RMB0.75 RMB1.40 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Schedule of Operating Lease Cost and Other Supplemental Information [Abstract] | |
Schedule of operating lease cost and other supplemental information | Year ended December 31 2020 2021 2022 RMB RMB RMB Operating lease cost (1) 21,719,042 14,764,364 13,966,943 (1) Amounts include short-term leases that are immaterial. December 31, December 31, RMB RMB Weighted-average remaining lease term 1 Year 3.59 Years Weighted-average discount rate 4.73 % 4.75 % Cash paid for amounts included in the measurement of lease liabilities under operating cash flows 15,478,630 15,101,145 ROU assets obtained in exchange for new operating lease liabilities 16,196,806 29,777,357 |
Schedule of reconciliation to the lease liabilities | Year ended December 31 RMB 2023 12,085,870 2024 6,285,367 2025 4,745,037 2026 4,636,293 2027 3,427,888 Thereafter - Total future operating lease payments 31,180,455 Less: imputed interest (2,596,980 ) Total present value of operating lease liabilities 28,583,475 |
Condensed Financial Informati_2
Condensed Financial Information of the Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of condensed balance sheets | December 31, December 31, RMB RMB Assets Cash and cash equivalents - 5,080,204 investment securities - 11,320,828 Investments in subsidiaries 392,559,403 392,559,403 Other assets 291,457,560 212,636,091 Total assets 684,016,963 621,596,526 Liabilities and shareholders’ equity Accrued employee benefits - 620,748 Other operating liabilities 9,697,485 10,827,876 Total liabilities 9,697,485 11,448,624 Ordinary shares (USD0.0001 par value; 3,800,000,000 shares authorized; 1,559,576,960 shares issued and 1,371,643,240 shares outstanding as of December 31, 2021 and December 31, 2022, respectively) 916,743 916,743 Treasury stock - (87,631,475 ) Additional paid-in capital 705,422,445 705,422,445 Retained earnings (7,467,430 ) (7,944,752 ) Accumulated other comprehensive losses (24,552,280 ) (615,059 ) Total shareholders’ equity 674,319,478 610,147,902 Total liabilities and shareholders’ equity 684,016,963 621,596,526 |
Schedule of condensed statements of comprehensive income | Year ended December 31 2021 2022 RMB RMB Interest and fees income Interest income on debt securities - 621,472 Interest on deposits with banks 171 20,593 Total interest and fees income 171 642,065 Realized gains on sales of investments, net - 2,889,427 Other gains, net 481,007 (22 ) Total non-interest income 481,007 2,889,405 Operating expenses Employee compensation and benefits (580,464 ) (620,748 ) Other expenses (90,221 ) (3,388,044 ) Total operating expenses (670,685 ) (4,008,792 ) Income before income tax expense (189,507 ) (477,322 ) Net losses (189,507 ) (477,322 ) Other comprehensive (losses)/income Foreign currency translation adjustment (6,970,285 ) 23,937,221 Comprehensive (losses)/income (7,159,792 ) 23,459,899 |
Schedule of condensed statements of cash flows | Year ended December 31 2021 2022 RMB RMB Cash flows from operating activities: Net losses (189,507 ) (477,322 ) Other operating assets 483,825 67,500,641 Other operating liabilities (3,609,478 ) 1,751,140 Net cash (used in)/provided by operating activities (3,315,160 ) 68,774,459 Cash flows from financing activities: Repurchase of ordinary shares - (87,631,475 ) Net cash used in financing activities - (87,631,475 ) Net decrease in cash and cash equivalents (3,315,160 ) (18,857,016 ) Cash and cash equivalents at the beginning of year 3,315,160 - Effect of exchange rate change on cash and cash equivalents - 23,937,220 Cash and cash equivalents at the end of year - 5,080,204 |
Description of Business, Orga_3
Description of Business, Organization, and Basis of Presentation (Details) - CNY (¥) | Dec. 31, 2022 | Dec. 31, 2021 |
Description of Business, Organization, and Basis of Presentation [Abstract] | ||
Cash and cash equivalents of structured funds | ¥ 1,157,244,687 | ¥ 1,515,820,737 |
Description of Business, Orga_4
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investment in significant subsidiaries | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Sincere Fame International Limited [Member] | |
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investment in significant subsidiaries [Line Items] | |
Place and date of incorporation/ establishment | British Virgin Islands October 6, 2006 |
Registered capital | $ 1,230,434 |
Issued and fully paid up capital | $ 1,230,434 |
Percentage of equity attributable to the Group-Direct | 100% |
Percentage of equity attributable to the Group-Indirect | |
Principal activities | Investment Holding |
China Financial Services Group Limited [Member] | |
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investment in significant subsidiaries [Line Items] | |
Place and date of incorporation/ establishment | Hong Kong August 28, 2000 |
Registered capital | $ 100,000,000 |
Issued and fully paid up capital | $ 100,000,000 |
Percentage of equity attributable to the Group-Direct | |
Percentage of equity attributable to the Group-Indirect | 100% |
Principal activities | Investment Holding |
Fanhua Chuang Li Information Technology (Shenzhen) Co., Ltd. [Member] | |
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investment in significant subsidiaries [Line Items] | |
Place and date of incorporation/ establishment | the PRC December 21, 1999 |
Registered capital | $ 400,000,000 |
Issued and fully paid up capital | $ 400,000,000 |
Percentage of equity attributable to the Group-Direct | |
Percentage of equity attributable to the Group-Indirect | 100% |
Principal activities | Investment Holding |
Shenzhen Fanhua United Investment Group Co., Ltd. [Member] | |
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investment in significant subsidiaries [Line Items] | |
Place and date of incorporation/ establishment | the PRC August 9, 2006 |
Registered capital | $ 250,000,000 |
Issued and fully paid up capital | $ 250,000,000 |
Percentage of equity attributable to the Group-Direct | |
Percentage of equity attributable to the Group-Indirect | 100% |
Principal activities | Investment Holding |
Guangzhou Anyu Mortgage Consulting Co., Ltd. [Member] | |
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investment in significant subsidiaries [Line Items] | |
Place and date of incorporation/ establishment | the PRC January 23,2003 |
Registered capital | $ 2,220,000 |
Issued and fully paid up capital | $ 2,220,000 |
Percentage of equity attributable to the Group-Direct | |
Percentage of equity attributable to the Group-Indirect | 100% |
Principal activities | Micro credit and mortgage agency services |
Chongqing Fengjie Financial Advisory Co., Ltd. [Member] | |
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investment in significant subsidiaries [Line Items] | |
Place and date of incorporation/ establishment | the PRC June 13, 2010 |
Registered capital | $ 500,000 |
Issued and fully paid up capital | $ 500,000 |
Percentage of equity attributable to the Group-Direct | |
Percentage of equity attributable to the Group-Indirect | 100% |
Principal activities | Financial consultancy |
Guangzhou Chengze Information Technology Co., Ltd. [Member] | |
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investment in significant subsidiaries [Line Items] | |
Place and date of incorporation/ establishment | the PRC December 11, 2006 |
Registered capital | $ 3,000,000 |
Issued and fully paid up capital | $ 3,000,000 |
Percentage of equity attributable to the Group-Direct | |
Percentage of equity attributable to the Group-Indirect | 100% |
Principal activities | Software development and maintenance |
Chongqing Liangjiang New Area Fanhua Micro-credit Co., Ltd. [Member] | |
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investment in significant subsidiaries [Line Items] | |
Place and date of incorporation/ establishment | the PRC December 26, 2011 |
Registered capital | $ 30,000,000 |
Issued and fully paid up capital | $ 30,000,000 |
Percentage of equity attributable to the Group-Direct | |
Percentage of equity attributable to the Group-Indirect | 100% |
Principal activities | Micro credit and mortgage agency services |
Shenzhen Fanhua Micro-credit Co., Ltd. [Member] | |
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investment in significant subsidiaries [Line Items] | |
Place and date of incorporation/ establishment | the PRC March 15, 2012 |
Registered capital | $ 300,000,000 |
Issued and fully paid up capital | $ 300,000,000 |
Percentage of equity attributable to the Group-Direct | |
Percentage of equity attributable to the Group-Indirect | 100% |
Principal activities | Micro credit and mortgage agency services |
Shenzhen Fanhua Fund Management Services [Member] | |
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investment in significant subsidiaries [Line Items] | |
Place and date of incorporation/ establishment | the PRC June 8, 2012 |
Registered capital | $ 5,000,000 |
Issued and fully paid up capital | $ 5,000,000 |
Percentage of equity attributable to the Group-Direct | |
Percentage of equity attributable to the Group-Indirect | 100% |
Principal activities | Company register service |
Guangzhou Heze Information Technology Co., Ltd. [Member] | |
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investment in significant subsidiaries [Line Items] | |
Place and date of incorporation/ establishment | the PRC September 16, 2010 |
Registered capital | $ 20,000,000 |
Issued and fully paid up capital | $ 20,000,000 |
Percentage of equity attributable to the Group-Direct | |
Percentage of equity attributable to the Group-Indirect | 100% |
Principal activities | Software development and maintenance |
Beijing Lianxin Chuanghui Information Technology Co., Ltd. [Member] | |
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investment in significant subsidiaries [Line Items] | |
Place and date of incorporation/ establishment | the PRC February 2, 2012 |
Registered capital | $ 10,000,000 |
Issued and fully paid up capital | $ 10,000,000 |
Percentage of equity attributable to the Group-Direct | |
Percentage of equity attributable to the Group-Indirect | 100% |
Principal activities | Software development and maintenance |
Shenzhen Fanlian Investment Co., Ltd. [Member] | |
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investment in significant subsidiaries [Line Items] | |
Place and date of incorporation/ establishment | the PRC November 26, 2012 |
Registered capital | $ 30,000,000 |
Issued and fully paid up capital | $ 30,000,000 |
Percentage of equity attributable to the Group-Direct | |
Percentage of equity attributable to the Group-Indirect | 100% |
Principal activities | Investment Holding |
Fanhua Financial Leasing (Shenzhen) Co., Ltd. [Member] | |
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investment in significant subsidiaries [Line Items] | |
Place and date of incorporation/ establishment | the PRC September 4, 2012 |
Registered capital | $ 10,000,000 |
Issued and fully paid up capital | $ 10,000,000 |
Percentage of equity attributable to the Group-Direct | |
Percentage of equity attributable to the Group-Indirect | 100% |
Principal activities | Business Advisory |
Shenzhen Fanhua Chengyu Finance Service Co., Ltd. [Member] | |
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investment in significant subsidiaries [Line Items] | |
Place and date of incorporation/ establishment | the PRC March 15, 2013 |
Registered capital | $ 10,000,000 |
Issued and fully paid up capital | $ 10,000,000 |
Percentage of equity attributable to the Group-Direct | |
Percentage of equity attributable to the Group-Indirect | 100% |
Principal activities | Labor outsourcing services |
Beijing Fanhua Qilin Capital Management Co., Ltd. [Member] | |
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investment in significant subsidiaries [Line Items] | |
Place and date of incorporation/ establishment | the PRC December 26, 2016 |
Registered capital | $ 100,000,000 |
Issued and fully paid up capital | $ 10,000,000 |
Percentage of equity attributable to the Group-Direct | |
Percentage of equity attributable to the Group-Indirect | 96% |
Principal activities | Asset Management |
Shijiazhuang Fanhua Financial Advisory Co., Ltd. [Member] | |
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investment in significant subsidiaries [Line Items] | |
Place and date of incorporation/ establishment | the PRC July 27, 2017 |
Registered capital | $ 2,000,000 |
Issued and fully paid up capital | |
Percentage of equity attributable to the Group-Direct | |
Percentage of equity attributable to the Group-Indirect | 100% |
Principal activities | Financial Consultancy |
Taizhou Fanhua Financial Advisory Co., Ltd. [Member] | |
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investment in significant subsidiaries [Line Items] | |
Place and date of incorporation/ establishment | the PRC September 28, 2017 |
Registered capital | $ 500,000 |
Issued and fully paid up capital | |
Percentage of equity attributable to the Group-Direct | |
Percentage of equity attributable to the Group-Indirect | 100% |
Principal activities | Financial Consultancy |
Xuzhou Shenfanlian Enterprise Management Co., Ltd. [Member] | |
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investment in significant subsidiaries [Line Items] | |
Place and date of incorporation/ establishment | the PRC December 7, 2017 |
Registered capital | $ 10,000,000 |
Issued and fully paid up capital | |
Percentage of equity attributable to the Group-Direct | |
Percentage of equity attributable to the Group-Indirect | 100% |
Principal activities | Enterprise Management |
Nantong Shenfanlian Enterprise Management Co., Ltd. [Member] | |
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investment in significant subsidiaries [Line Items] | |
Place and date of incorporation/ establishment | the PRC September 8, 2017 |
Registered capital | $ 5,000,000 |
Percentage of equity attributable to the Group-Direct | |
Percentage of equity attributable to the Group-Indirect | 100% |
Principal activities | Enterprise Management |
Baoding Fanjie Financial Advisory Co., Ltd. [Member] | |
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investment in significant subsidiaries [Line Items] | |
Place and date of incorporation/ establishment | the PRC February 9, 2018 |
Registered capital | $ 500,000 |
Percentage of equity attributable to the Group-Direct | |
Percentage of equity attributable to the Group-Indirect | 100% |
Principal activities | Financial Consultancy |
Shenzhen Fancheng Business Operation Management Partnership (Limited Partnership) [Member] | |
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investment in significant subsidiaries [Line Items] | |
Place and date of incorporation/ establishment | the PRC June 22, 2018 |
Registered capital | $ 500,000,000 |
Percentage of equity attributable to the Group-Direct | |
Percentage of equity attributable to the Group-Indirect | 100% |
Principal activities | Enterprise Management |
Fanxiaoxuan Cultural Media (Guangzhou) Co., Ltd. [Member] | |
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investment in significant subsidiaries [Line Items] | |
Place and date of incorporation/ establishment | the PRC July 16, 2018 |
Registered capital | $ 1,000,000 |
Percentage of equity attributable to the Group-Direct | |
Percentage of equity attributable to the Group-Indirect | 100% |
Principal activities | Enterprise Management |
Guangzhou Fanze Information Technology Co., Ltd. [Member] | |
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investment in significant subsidiaries [Line Items] | |
Place and date of incorporation/ establishment | the PRC February 27, 2019 |
Registered capital | $ 10,000,000 |
Percentage of equity attributable to the Group-Direct | |
Percentage of equity attributable to the Group-Indirect | 100% |
Principal activities | Software development and maintenance |
Langfang Fanhua Technology Co., Ltd. [Member] | |
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investment in significant subsidiaries [Line Items] | |
Place and date of incorporation/ establishment | the PRC September 9, 2019 |
Registered capital | $ 200,000 |
Percentage of equity attributable to the Group-Direct | |
Percentage of equity attributable to the Group-Indirect | 100% |
Principal activities | Software development and maintenance |
Shenyang Fanhua Financial Advisory Co., Ltd. [Member] | |
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investment in significant subsidiaries [Line Items] | |
Place and date of incorporation/ establishment | the PRC November 18, 2019 |
Registered capital | $ 1,000,000 |
Percentage of equity attributable to the Group-Direct | |
Percentage of equity attributable to the Group-Indirect | 100% |
Principal activities | Financial consultancy |
Luoyang Fanzhan Information technology Co., Ltd. [Member] | |
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investment in significant subsidiaries [Line Items] | |
Place and date of incorporation/ establishment | the PRC May 13, 2020 |
Registered capital | $ 500,000 |
Percentage of equity attributable to the Group-Direct | |
Percentage of equity attributable to the Group-Indirect | 100% |
Principal activities | Software development and maintenance |
Lanzhou Fanhua Enterprise Information Advisory Co., Ltd. [Member] | |
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investment in significant subsidiaries [Line Items] | |
Place and date of incorporation/ establishment | the PRC May 19, 2020 |
Registered capital | $ 200,000 |
Percentage of equity attributable to the Group-Direct | |
Percentage of equity attributable to the Group-Indirect | 100% |
Principal activities | Enterprise Management |
Yantai Shenzhen Fanlian Financial Advisory Co., Ltd. [Member] | |
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investment in significant subsidiaries [Line Items] | |
Place and date of incorporation/ establishment | the PRC June 22, 2020 |
Registered capital | $ 1,000,000 |
Percentage of equity attributable to the Group-Direct | |
Percentage of equity attributable to the Group-Indirect | 100% |
Principal activities | Financial consultancy |
Haikou Fanhua Financial Advisory Co., Ltd. [Member] | |
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investment in significant subsidiaries [Line Items] | |
Place and date of incorporation/ establishment | the PRC June 12, 2020 |
Registered capital | $ 1,000,000 |
Issued and fully paid up capital | |
Percentage of equity attributable to the Group-Direct | |
Percentage of equity attributable to the Group-Indirect | 100% |
Principal activities | Financial consultancy |
Ganzhou Shenzhen Fanlian Financial Advisory Co., Ltd. [Member] | |
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investment in significant subsidiaries [Line Items] | |
Place and date of incorporation/ establishment | the PRC August 8, 2020 |
Registered capital | $ 1,000,000 |
Issued and fully paid up capital | |
Percentage of equity attributable to the Group-Direct | |
Percentage of equity attributable to the Group-Indirect | 100% |
Principal activities | Financial consultancy |
Fanhua Jinfu (Foshan) Co., Ltd. [Member] | |
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investment in significant subsidiaries [Line Items] | |
Place and date of incorporation/ establishment | the PRC May 22, 2020 |
Registered capital | $ 200,000,000 |
Issued and fully paid up capital | |
Percentage of equity attributable to the Group-Direct | |
Percentage of equity attributable to the Group-Indirect | 100% |
Principal activities | Financial consultancy |
Huaian Fanhualian Economic Information Advisory Co., Ltd [Member] | |
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investment in significant subsidiaries [Line Items] | |
Place and date of incorporation/ establishment | the PRC February 2, 2021 |
Registered capital | $ 1,000,000 |
Issued and fully paid up capital | |
Percentage of equity attributable to the Group-Direct | |
Percentage of equity attributable to the Group-Indirect | 100% |
Principal activities | Financial consultancy |
Guangzhou Nansha Weisen Technology Co., Ltd [Member] | |
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investment in significant subsidiaries [Line Items] | |
Place and date of incorporation/ establishment | the PRC March 30, 2020 |
Registered capital | $ 500,000 |
Issued and fully paid up capital | |
Percentage of equity attributable to the Group-Direct | |
Percentage of equity attributable to the Group-Indirect | 100% |
Principal activities | Software development and maintenance |
Wuxi Shenzhen Fanlian Enterprise Management Co., Ltd. [Member] | |
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investment in significant subsidiaries [Line Items] | |
Place and date of incorporation/ establishment | the PRC April 27, 2022 |
Registered capital | $ 500,000 |
Issued and fully paid up capital | |
Percentage of equity attributable to the Group-Direct | |
Percentage of equity attributable to the Group-Indirect | 100% |
Principal activities | Enterprise Management |
Shenzhen Fanlian (Hangzhou) Financial Advisory Co., Ltd. [Member] | |
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investment in significant subsidiaries [Line Items] | |
Place and date of incorporation/ establishment | the PRC May 5, 2022 |
Registered capital | $ 1,000,000 |
Issued and fully paid up capital | |
Percentage of equity attributable to the Group-Direct | |
Percentage of equity attributable to the Group-Indirect | 100% |
Principal activities | Financial consultancy |
Ningbo Lianyi Technological Advisory Co., Ltd. [Member] | |
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investment in significant subsidiaries [Line Items] | |
Place and date of incorporation/ establishment | the PRC November 24, 2022 |
Registered capital | $ 50,000,000 |
Issued and fully paid up capital | |
Percentage of equity attributable to the Group-Direct | |
Percentage of equity attributable to the Group-Indirect | 100% |
Principal activities | Financial consultancy |
Description of Business, Orga_5
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Jinghua Structured Fund 6 [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC September 9, 2014 | ||
Principal activities | Micro credit | ||
Bohai Trust Shenfanlian Micro Finance Structured Fund [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC September 14, 2016 | ||
Principal activities | Micro credit | ||
Bohai Huihe SME Structured Fund [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC September 29, 2017 | ||
Principal activities | Micro credit | ||
Zhongyuan Wealth Anhui Structured Fund 1 [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC January 20, 2017 | ||
Principal activities | Micro credit | ||
Zhongyuan Wealth Anhui Structured Fund 2 [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC August 18, 2017 | ||
Principal activities | Micro credit | ||
Beijing Fanhua Micro-credit Company Limited [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC August 10, 2012 | ||
Principal activities | Micro credit | ||
Zhonghai Lanhai Structured Fund 1 [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC July 18, 2018 | ||
Principal activities | Micro credit | ||
Bairui Hengyi No.613 Structured Fund [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC July 25, 2018 | ||
Principal activities | Micro credit | ||
Bohai Trust No.1 Huiying Structured Fund [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC September 10, 2018 | ||
Principal activities | Micro credit | ||
Bohai Trust No.2 Shenzhen Fanhua United Structured Fund [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC November 28, 2018 | ||
Principal activities | Micro credit | ||
Jinghua Structured Fund 1 [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC May 8, 2019 | ||
Principal activities | Micro credit | ||
Zhonghai Lanhai Structured Fund 1-2 [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC June 28, 2019 | ||
Principal activities | Micro credit | ||
Zhonghai Lanhai Structured Fund 1-3 [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC September 11, 2019 | ||
Principal activities | Micro credit | ||
Hunan Structured Fund 2019-1 [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC September 23, 2019 | ||
Principal activities | Micro credit | ||
Hunan Structured Fund 2019-2 [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC September 23, 2019 | ||
Principal activities | Micro credit | ||
Shaanxi International Xinglong Structured Fund 1-1 [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC November 6, 2019 | ||
Principal activities | Micro credit | ||
Shaanxi International Xinglong Structured Fund 2-1 [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC September 24, 2019 | ||
Principal activities | Micro credit | ||
Bairui Hengyi No.711 Structured Fund [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC September 20, 2019 | ||
Principal activities | Micro credit | ||
Zhonghai Lanhai Structured Fund 1-4 [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC October 10, 2019 | ||
Principal activities | Micro credit | ||
Zhongyuan Wealth Anhui Structured Fund 49 [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC October 24, 2019 | ||
Principal activities | Micro credit | ||
Bairui Hengyi No.724 Structured Fund [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC November 11, 2019 | ||
Principal activities | Micro credit | ||
Zhonghai Lanhai Structured Fund 1-5 [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC November 19, 2019 | ||
Principal activities | Micro credit | ||
Zhonghai Lanhai Structured Fund 1-6 [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC December 20, 2019 | ||
Principal activities | Micro credit | ||
No. 50 Jinghua Structured Fund [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC April 26, 2019 | ||
Principal activities | Micro credit | ||
Zhonghai Lanhai Structured Fund 1-1 [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC May 19, 2020 | ||
Principal activities | Micro credit | ||
Shaanxi International Xinglong Structured Fund 22-1 [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC June 22, 2020 | ||
Principal activities | Micro credit | ||
Zhonghai Lanhai Structured Fund 1-7 [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC August 14, 2020 | ||
Principal activities | Micro credit | ||
No. 74 Jinghua Structured Fund [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC November 26, 2020 | ||
Principal activities | Micro credit | ||
Hunan Structured Fund 2020-1 [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC December 8, 2020 | ||
Principal activities | Micro credit | ||
Shaanxi International Xinglong Structured Fund 2-2 [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC January 26, 2021 | ||
Principal activities | Micro credit | ||
No.103 Jinghua Structured Fund [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC March 23, 2021 | ||
Principal activities | Micro credit | ||
Zhonghai Lanhai Structured Fund 30-X [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC March 17, 2021 | ||
Principal activities | Micro credit | ||
Bohai Trust 2020 Pucheng No. 75 [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC July 15, 2021 | ||
Principal activities | Micro credit | ||
Guomin Tianshu Structured Fund 2-1 [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC August 31, 2021 | ||
Principal activities | Micro credit | ||
Shenzhen Fanshu Information Technology Advisory Partnership (Limited Partnership). [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC August 27, 2021 | ||
Principal activities | Micro credit | ||
Shenzhen Lianshu Economic Information Technology Advisory Partnership (Limited Partnership) [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC August 27, 2021 | ||
Principal activities | Micro credit | ||
Shenzhen Ruishu Economic Information Technology Advisory Partnership (Limited Partnership) [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC September 30, 2021 | ||
Principal activities | Micro credit | ||
Tianjin Ninghua Economic Information Advisory Partnership (Limited Partnership) [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC November 1, 2021 | ||
Principal activities | Micro credit | ||
Shenzhen Shengshu Information Technology Advisory Partnership (Limited Partnership) [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC November 2, 2021 | ||
Principal activities | Micro credit | ||
Shenzhen Chengshu Information Technology Advisory Partnership (Limited Partnership) [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC November 29, 2021 | ||
Principal activities | Micro credit | ||
Shenzhen Xuanshu Information Technology Advisory Partnership (Limited Partnership) [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC November 29, 2021 | ||
Principal activities | Micro credit | ||
Tianjin Juehua Economic Information Advisory Partnership (Limited Partnership) [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC December 20, 2021 | ||
Principal activities | Micro credit | ||
Zhongrong Yuanshuo No.1 Structured Fund [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC September 29, 2021 | ||
Principal activities | Micro credit | ||
Guangzhou Mingsheng Capital Management Partnership (Limited Partnership) [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | The PRC January 11, 2022 | ||
Principal activities | Micro credit | ||
Tianjin Baihua Economic Information Advisory Partnership (Limited Partnership) [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC January 19, 2022 | ||
Principal activities | Micro credit | ||
Bohai Trust 2021 Pucheng No. 83 [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC January 25, 2022 | ||
Principal activities | Micro credit | ||
Zhongrong Yuanshuo No.2 Structured Fund [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC February 18, 2022 | ||
Principal activities | Micro credit | ||
Shenzhen Huashu Information Technology Advisory Partnership (Limited Partnership) [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC February 22, 2022 | ||
Principal activities | Micro credit | ||
Shenzhen Leshu Information Technology Advisory Partnership (Limited Partnership) [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC April 7, 2022 | ||
Principal activities | Micro credit | ||
Zijin No.3 Business Acceleration Structured Fund [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC April 25, 2022 | ||
Principal activities | Micro credit | ||
Zhongliang Hongrui No.1 Structured Fund [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC May 19, 2022 | ||
Principal activities | Micro credit | ||
Zhongrong Yuanshuo No.3 Structured Fund [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC July 26, 2022 | ||
Principal activities | Micro credit | ||
Tianjin Pinhua Economic Information Advisory Partnership (Limited Partnership) [Member] | |||
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of investments in the consolidated VIEs by the group [Line Items] | |||
Place and date of incorporation/ establishment | the PRC October 10, 2022 | ||
Principal activities | Micro credit |
Description of Business, Orga_6
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of assets and liabilities of the consolidated VIEs - Variable Interest Entities, Primary Beneficiary [Member] - CNY (¥) | Dec. 31, 2022 | Dec. 31, 2021 |
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of assets and liabilities of the consolidated VIEs [Line Items] | ||
Cash, cash equivalents and restricted cash | ¥ 1,265,876,948 | ¥ 1,516,044,449 |
Loans principal, interest and financing service fees receivables | 9,303,729,390 | 9,089,263,433 |
Investment securities | 205,711,749 | 709,255,924 |
Deferred tax assets | 6,903 | |
Other assets | 873,978,254 | 1,071,073,393 |
Total assets | 11,649,296,341 | 12,385,644,102 |
Interest-bearing borrowings | 7,727,559,338 | 8,041,816,663 |
Income taxes payable | 902,734 | 733,159 |
Deferred tax liabilities | 15,863 | |
Other liabilities | 144,368,848 | 125,382,650 |
Total liabilities | ¥ 7,872,846,783 | ¥ 8,167,932,472 |
Description of Business, Orga_7
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of of operations of the VIEs - Variable Interest Entities, Primary Beneficiary [Member] - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Condensed Income Statements, Captions [Line Items] | |||
Revenue | ¥ 1,437,398,097 | ¥ 1,298,055,332 | ¥ 1,731,934,459 |
Net income | ¥ 381,273,670 | ¥ 579,742,472 | ¥ 658,400,554 |
Description of Business, Orga_8
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of cash flows of the VIEs - Variable Interest Entities, Primary Beneficiary [Member] - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Description of Business, Organization, and Basis of Presentation (Details) - Schedule of cash flows of the VIEs [Line Items] | |||
Net cash used in operating activities | ¥ 939,802,714 | ¥ (1,571,552,463) | ¥ (303,745,231) |
Net cash provided by/(used in) investing activities | (812,396,284) | (633,511,824) | 692,705,844 |
Net cash (used in)/provided by financing activities | ¥ (377,573,931) | ¥ 2,682,931,827 | ¥ (429,173,286) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Recognized income tax, percentage | 50% | ||
Held-for-sale loans | ¥ 361,400 | ¥ 101,900 | |
Guaranteed assets | 361,400 | 101,900 | |
Provisions for Other Credit Losses | 200,200 | 28,900 | |
Sales of loans | ¥ 200,200 | ¥ 28,900 | |
Trademarks [Member] | |||
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Indefinite-lived intangible assets carrying value | ¥ 2,970 | ||
Computer Software, Intangible Asset [Member] | Minimum [Member] | |||
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Intangible assets with finite useful lives | 1 year | ||
Computer Software, Intangible Asset [Member] | Maximum [Member] | |||
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Intangible assets with finite useful lives | 5 years | ||
Cooperation agreements [Member] | |||
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Intangible assets with finite useful lives | 5 years | ||
Leasehold Improvements [Member] | Minimum [Member] | |||
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Estimated useful life of Property and equipment | 1 year | ||
Leasehold Improvements [Member] | Maximum [Member] | |||
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Estimated useful life of Property and equipment | 6 years | ||
Motor vehicles [Member] | Minimum [Member] | |||
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Estimated useful life of Property and equipment | 3 years | ||
Motor vehicles [Member] | Maximum [Member] | |||
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Estimated useful life of Property and equipment | 8 years | ||
Office and other equipment [Member] | Minimum [Member] | |||
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Estimated useful life of Property and equipment | 1 year | ||
Office and other equipment [Member] | Maximum [Member] | |||
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Estimated useful life of Property and equipment | 5 years |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Schedule of assets measured at fair value on a recurring basis - CNY (¥) | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Measurements (Details) - Schedule of assets measured at fair value on a recurring basis [Line Items] | ||
Total | ¥ 244,337,727 | ¥ 847,047,295 |
Wealth management products [Member] | Fair value recurring [Member] | ||
Fair Value Measurements (Details) - Schedule of assets measured at fair value on a recurring basis [Line Items] | ||
Wealth management products | 244,337,727 | 847,047,295 |
Level 1 [Member] | ||
Fair Value Measurements (Details) - Schedule of assets measured at fair value on a recurring basis [Line Items] | ||
Total | 206,304,763 | 729,255,924 |
Level 1 [Member] | Wealth management products [Member] | Fair value recurring [Member] | ||
Fair Value Measurements (Details) - Schedule of assets measured at fair value on a recurring basis [Line Items] | ||
Wealth management products | 206,304,763 | 729,255,924 |
Level 2 [Member] | ||
Fair Value Measurements (Details) - Schedule of assets measured at fair value on a recurring basis [Line Items] | ||
Total | 38,032,964 | 117,791,371 |
Level 2 [Member] | Wealth management products [Member] | Fair value recurring [Member] | ||
Fair Value Measurements (Details) - Schedule of assets measured at fair value on a recurring basis [Line Items] | ||
Wealth management products | 38,032,964 | 117,791,371 |
Level 3 [Member] | ||
Fair Value Measurements (Details) - Schedule of assets measured at fair value on a recurring basis [Line Items] | ||
Total | ||
Level 3 [Member] | Wealth management products [Member] | Fair value recurring [Member] | ||
Fair Value Measurements (Details) - Schedule of assets measured at fair value on a recurring basis [Line Items] | ||
Wealth management products |
Fair Value Measurements (Deta_2
Fair Value Measurements (Details) - Schedule of assets and liabilities measured at fair value on a non-recurring basis - CNY (¥) | Dec. 31, 2022 | Dec. 31, 2021 | |
Assets | |||
Loans held-for-sale | ¥ 1,844,438,134 | ¥ 1,095,412,086 | |
Total Assets | 1,955,283,590 | 1,184,072,904 | |
Liabilities | |||
Total Liabilities | 82,385,089 | ||
Loans [Member] | Fair Value, Nonrecurring [Member] | |||
Assets | |||
Loans | [1] | 61,835,456 | 64,650,818 |
Loans held-for-sale [Member] | Fair Value, Nonrecurring [Member] | |||
Assets | |||
Loans held-for-sale | [2] | 1,844,438,134 | 1,095,412,086 |
Equity securities [Member] | Fair Value, Nonrecurring [Member] | |||
Assets | |||
Equity securities | [3] | 49,010,000 | 24,010,000 |
Guarantee liabilities [Member] | Fair Value, Nonrecurring [Member] | |||
Liabilities | |||
Guarantee liabilities | [4] | 82,385,089 | |
Level 1 [Member] | |||
Assets | |||
Total Assets | |||
Liabilities | |||
Total Liabilities | |||
Level 1 [Member] | Loans [Member] | Fair Value, Nonrecurring [Member] | |||
Assets | |||
Loans | [1] | ||
Level 1 [Member] | Loans held-for-sale [Member] | Fair Value, Nonrecurring [Member] | |||
Assets | |||
Loans held-for-sale | [2] | ||
Level 1 [Member] | Equity securities [Member] | Fair Value, Nonrecurring [Member] | |||
Assets | |||
Equity securities | [3] | ||
Level 1 [Member] | Guarantee liabilities [Member] | Fair Value, Nonrecurring [Member] | |||
Liabilities | |||
Guarantee liabilities | [4] | ||
Level 2 [Member] | |||
Assets | |||
Total Assets | 1,955,283,590 | 1,184,072,904 | |
Liabilities | |||
Total Liabilities | |||
Level 2 [Member] | Loans [Member] | Fair Value, Nonrecurring [Member] | |||
Assets | |||
Loans | [1] | 61,835,456 | 64,650,818 |
Level 2 [Member] | Loans held-for-sale [Member] | Fair Value, Nonrecurring [Member] | |||
Assets | |||
Loans held-for-sale | [2] | 1,844,438,134 | 1,095,412,086 |
Level 2 [Member] | Equity securities [Member] | Fair Value, Nonrecurring [Member] | |||
Assets | |||
Equity securities | [3] | 49,010,000 | 24,010,000 |
Level 2 [Member] | Guarantee liabilities [Member] | Fair Value, Nonrecurring [Member] | |||
Liabilities | |||
Guarantee liabilities | [4] | ||
Level 3 [Member] | |||
Assets | |||
Total Assets | |||
Liabilities | |||
Total Liabilities | 82,385,089 | ||
Level 3 [Member] | Loans [Member] | Fair Value, Nonrecurring [Member] | |||
Assets | |||
Loans | [1] | ||
Level 3 [Member] | Loans held-for-sale [Member] | Fair Value, Nonrecurring [Member] | |||
Assets | |||
Loans held-for-sale | [2] | ||
Level 3 [Member] | Equity securities [Member] | Fair Value, Nonrecurring [Member] | |||
Assets | |||
Equity securities | [3] | ||
Level 3 [Member] | Guarantee liabilities [Member] | Fair Value, Nonrecurring [Member] | |||
Liabilities | |||
Guarantee liabilities | [4] | ¥ 82,385,089 | |
[1]Loans are recorded at amortized cost, while the Group records nonrecurring fair value adjustments to reflect partial write-downs that are based on the observable market price of the loan or current appraised value of the collateral.[2]Loans held-for-sale are held at LOCOM (the lower of cost or fair value) which may be written down to fair value on a nonrecurring basis.[3]Nonmarketable equity securities are accounted for using the measurement alternative and can be subject to nonrecurring fair value adjustments to record impairment.[4]Guarantee liabilities are accounted for stand-ready guarantee liabilities of the Group’s guarantee services for its off-balance sheet loans under the commercial bank partnership model at fair value. |
Cash, cash equivalents and re_2
Cash, cash equivalents and restricted cash (Details) | 12 Months Ended | |
Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Cash and Cash Equivalents [Abstract] | ||
Number of PRC individual financial institutions | 1 | 3 |
Percentage of excess cash balances | 10% | 10% |
Percentage bank deposits collectively accounted | 56.40% | 76.50% |
Percentage cash balances collectively accounted | 0.31% | 1.34% |
Restricted cash (in Yuan Renminbi) | ¥ 1,157,244,687 | ¥ 1,515,820,737 |
Loans Principal, Interest and_3
Loans Principal, Interest and Financing Service Fee Receivables (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Loans Principal, Interest and Financing Service Fee Receivables (Details) [Line Items] | |||
Carrying amount of loans | ¥ 8,692,806,001 | ¥ 8,436,866,515 | |
Net gains on sale of loans | (44,554,948) | (479,584,775) | ¥ (50,606,487) |
Loans principal, interest and financing service fee receivables of corporate loan | 792,794,985 | 832,735,000 | ¥ 728,846,965 |
Loans principal, interest and financing service fee receivables of corporate loan | 463,254,567 | ||
Third Party Investors [Member] | |||
Loans Principal, Interest and Financing Service Fee Receivables (Details) [Line Items] | |||
Carrying amount of loans | 2,375,645,263 | 2,466,160 | |
Net gains on sale of loans | 44,554,948 | 479,584,775 | |
Loans held-for-sale [Member] | |||
Loans Principal, Interest and Financing Service Fee Receivables (Details) [Line Items] | |||
Loans transferred to held-for-sale category | 1,844,438,134 | 1,095,412,086 | |
Loans held-for-sale [Member] | |||
Loans Principal, Interest and Financing Service Fee Receivables (Details) [Line Items] | |||
Loans principal, interest and financing service fee receivables of corporate loan | |||
Corporate Loans [Member] | |||
Loans Principal, Interest and Financing Service Fee Receivables (Details) [Line Items] | |||
Loans principal, interest and financing service fee receivables of corporate loan | ¥ 24,693,114 |
Loans Principal, Interest and_4
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of loans principal, interest and financing service fee receivables - CNY (¥) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Loans Principal Interest And Financing Service Fee Receivables Abstract | ||
Loans principal, interest and financing service fee receivables | ¥ 8,993,547,621 | ¥ 9,412,717,366 |
Impaired Financing Receivable, Related Allowance | 12,247,836 | 61,479,897 |
- Individually assessed | (12,247,836) | (61,479,897) |
- Collectively assessed | (727,055,237) | (914,370,954) |
Subtotal | (739,303,073) | (975,850,851) |
Net loans principal, interest and financing service fee receivables of home equity loan | 8,254,244,548 | 8,436,866,515 |
Corporate loans: | ||
Loans principal, interest and financing service fee receivables | 463,254,567 | |
Less: allowance for credit losses | (24,693,114) | |
Net loans principal, interest and financing service fee receivables of corporate loan | 438,561,453 | |
Net loans principal, interest and financing service fee receivables | ¥ 8,692,806,001 | ¥ 8,436,866,515 |
Loans Principal, Interest and_5
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of home equity loans - CNY (¥) | Dec. 31, 2022 | Dec. 31, 2021 |
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of home equity loans [Line Items] | ||
Loans principal, interest and financing service fee receivables | ¥ 8,993,547,621 | ¥ 9,412,717,366 |
Less: allowance for credit losses | ||
Individually assessed | (12,247,836) | (61,479,897) |
Collectively assessed | (727,055,237) | (914,370,954) |
Subtotal | (739,303,073) | (975,850,851) |
Net loans principal, interest and financing service fee receivables | 8,254,244,548 | 8,436,866,515 |
First lien [Member] | ||
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of home equity loans [Line Items] | ||
Loans principal, interest and financing service fee receivables | 3,514,373,477 | |
Less: allowance for credit losses | ||
Individually assessed | (32,968,721) | |
Collectively assessed | (357,239,453) | |
Subtotal | (390,208,174) | |
Net loans principal, interest and financing service fee receivables | 3,124,165,303 | |
Second lien [Member] | ||
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of home equity loans [Line Items] | ||
Loans principal, interest and financing service fee receivables | 5,898,343,889 | |
Less: allowance for credit losses | ||
Individually assessed | (28,511,176) | |
Collectively assessed | (557,131,501) | |
Subtotal | (585,642,677) | |
Net loans principal, interest and financing service fee receivables | ¥ 5,312,701,212 | |
First lien One [Member] | ||
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of home equity loans [Line Items] | ||
Loans principal, interest and financing service fee receivables | 3,360,094,375 | |
Less: allowance for credit losses | ||
Individually assessed | (3,836,350) | |
Collectively assessed | (286,300,001) | |
Subtotal | (290,136,351) | |
Net loans principal, interest and financing service fee receivables | 3,069,958,024 | |
Second lien One [Member] | ||
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of home equity loans [Line Items] | ||
Loans principal, interest and financing service fee receivables | 5,633,453,246 | |
Less: allowance for credit losses | ||
Individually assessed | (8,411,486) | |
Collectively assessed | (440,755,236) | |
Subtotal | (449,166,722) | |
Net loans principal, interest and financing service fee receivables | ¥ 5,184,286,524 |
Loans Principal, Interest and_6
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of allowance for credit losses - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Total, Beginning | ¥ 975,850,851 | ¥ 607,965,498 | |
Total, Net loans principal, interest and financing service fee receivables | 8,254,244,548 | 8,436,866,515 | |
Total, Recorded investment | 8,993,547,621 | 9,412,717,366 | |
Allowance for loans which are individually assessed, Provision for credit losses | 238,084,863 | (298,467,893) | ¥ 77,348,480 |
Total, Provision for credit losses | 143,717,209 | (207,743,842) | |
Total, Charge-offs | (53,995,624) | (145,024,435) | |
Total, Increase in guaranteed recoverable assets | (347,620,170) | 541,917,706 | |
Total, Recoveries | 21,350,807 | 178,735,924 | |
Total, Ending | 739,303,073 | 975,850,851 | ¥ 607,965,498 |
First lien [Member] | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Allowance for loans which are collectively assessed, Beginning | 357,239,453 | 222,034,414 | |
Allowance for loans which are individually assessed, Beginning | 32,968,721 | 27,176,553 | |
Allowance for loans which are collectively assessed, Net loans principal, interest and financing service fee receivables | 3,036,599,198 | 3,048,382,936 | |
Allowance for loans which are individually assessed, Net loans principal, interest and financing service fee receivables | 33,358,825 | 75,782,367 | |
Allowance for loans which are collectively assessed, Recorded investment | 3,322,899,199 | 3,405,622,388 | |
Allowance for loans which are individually assessed, Recorded investment | 37,195,175 | 108,751,089 | |
Allowance for loans which are collectively assessed, Provision for credit losses | (8,058,972) | 1,184,418 | |
Allowance for loans which are individually assessed, Provision for credit losses | 72,834,526 | (65,333,841) | |
Allowance for loans which are collectively assessed, Charge-offs | (1,318,568) | (53,919,303) | |
Allowance for loans which are individually assessed, Charge-offs | (7,843,977) | (9,950,932) | |
Allowance for loans which are collectively assessed, Increase in guaranteed recoverable assets | (61,561,912) | 187,939,924 | |
Allowance for loans which are individually assessed, Increase in guaranteed recoverable assets | (102,009,203) | 18,633,218 | |
Allowance for loans which are collectively assessed, Recoveries | |||
Allowance for loans which are individually assessed, Recoveries | 7,886,283 | 62,443,724 | |
Allowance for loans which are collectively assessed, Ending | 286,300,001 | 357,239,453 | |
Allowance for loans which are individually assessed, Ending | 3,836,350 | 32,968,721 | |
Second lien [Member] | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Allowance for loans which are collectively assessed, Beginning | 557,131,501 | 313,932,763 | |
Allowance for loans which are individually assessed, Beginning | 28,511,176 | 44,821,768 | |
Allowance for loans which are collectively assessed, Net loans principal, interest and financing service fee receivables | 5,127,455,016 | 5,249,959,347 | |
Allowance for loans which are individually assessed, Net loans principal, interest and financing service fee receivables | 56,831,509 | 62,741,865 | |
Allowance for loans which are collectively assessed, Recorded investment | 5,568,210,252 | 5,807,090,849 | |
Allowance for loans which are individually assessed, Recorded investment | 65,242,995 | 91,253,040 | |
Allowance for loans which are collectively assessed, Provision for credit losses | (19,852,708) | (6,117,066) | |
Allowance for loans which are individually assessed, Provision for credit losses | 98,794,363 | (137,477,353) | |
Allowance for loans which are collectively assessed, Charge-offs | (69,524,088) | ||
Allowance for loans which are individually assessed, Charge-offs | (44,833,079) | (11,630,112) | |
Allowance for loans which are collectively assessed, Increase in guaranteed recoverable assets | (96,523,557) | 318,839,892 | |
Allowance for loans which are individually assessed, Increase in guaranteed recoverable assets | (87,525,498) | 16,504,672 | |
Allowance for loans which are collectively assessed, Recoveries | |||
Allowance for loans which are individually assessed, Recoveries | 13,464,524 | 116,292,200 | |
Allowance for loans which are collectively assessed, Ending | 440,755,236 | 557,131,501 | |
Allowance for loans which are individually assessed, Ending | 8,411,486 | 28,511,176 | |
Subtotal [Member] | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Allowance for loans which are collectively assessed, Beginning | 914,370,954 | 535,967,177 | |
Allowance for loans which are individually assessed, Beginning | 61,479,897 | 71,998,321 | |
Allowance for loans which are collectively assessed, Net loans principal, interest and financing service fee receivables | 8,164,054,214 | 8,298,342,283 | |
Allowance for loans which are individually assessed, Net loans principal, interest and financing service fee receivables | 90,190,334 | 138,524,232 | |
Allowance for loans which are collectively assessed, Recorded investment | 8,891,109,451 | 9,212,713,237 | |
Allowance for loans which are individually assessed, Recorded investment | 102,438,170 | 200,004,129 | |
Allowance for loans which are collectively assessed, Provision for credit losses | (27,911,680) | (4,932,648) | |
Allowance for loans which are individually assessed, Provision for credit losses | 171,628,889 | (202,811,194) | |
Allowance for loans which are collectively assessed, Charge-offs | (1,318,568) | (123,443,391) | |
Allowance for loans which are individually assessed, Charge-offs | (52,677,056) | (21,581,044) | |
Allowance for loans which are collectively assessed, Increase in guaranteed recoverable assets | (158,085,469) | 506,779,816 | |
Allowance for loans which are individually assessed, Increase in guaranteed recoverable assets | (189,534,701) | 35,137,890 | |
Allowance for loans which are collectively assessed, Recoveries | |||
Allowance for loans which are individually assessed, Recoveries | 21,350,807 | 178,735,924 | |
Allowance for loans which are collectively assessed, Ending | 727,055,237 | 914,370,954 | |
Allowance for loans which are individually assessed, Ending | ¥ 12,247,836 | ¥ 61,479,897 |
Loans Principal, Interest and_7
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of aging of allowance for credit losses - CNY (¥) | Dec. 31, 2022 | Dec. 31, 2021 |
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of aging of allowance for credit losses [Line Items] | ||
Total current | ¥ 334,455,214 | ¥ 541,725,129 |
1 - 30 days past due [Member] | ||
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of aging of allowance for credit losses [Line Items] | ||
Total current | 200,712,954 | 216,868,768 |
31 - 90 days past due [Member] | ||
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of aging of allowance for credit losses [Line Items] | ||
Total current | 191,887,069 | 155,777,057 |
91 - 180 days past due [Member] | ||
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of aging of allowance for credit losses [Line Items] | ||
Total current | 12,247,836 | 61,479,897 |
Total loans [Member] | ||
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of aging of allowance for credit losses [Line Items] | ||
Total current | 739,303,073 | 975,850,851 |
Collaboration Model [Member] | ||
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of aging of allowance for credit losses [Line Items] | ||
Total current | 331,622,152 | 530,614,924 |
Collaboration Model [Member] | 1 - 30 days past due [Member] | ||
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of aging of allowance for credit losses [Line Items] | ||
Total current | 200,209,255 | 211,079,593 |
Collaboration Model [Member] | 31 - 90 days past due [Member] | ||
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of aging of allowance for credit losses [Line Items] | ||
Total current | 191,887,069 | 147,179,514 |
Collaboration Model [Member] | 91 - 180 days past due [Member] | ||
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of aging of allowance for credit losses [Line Items] | ||
Total current | 12,247,836 | 58,391,334 |
Collaboration Model [Member] | Total loans [Member] | ||
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of aging of allowance for credit losses [Line Items] | ||
Total current | 735,966,312 | 947,265,365 |
Collaboration Model [Member] | First lien [Member] | ||
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of aging of allowance for credit losses [Line Items] | ||
Total current | 116,930,653 | 189,814,922 |
Collaboration Model [Member] | First lien [Member] | 1 - 30 days past due [Member] | ||
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of aging of allowance for credit losses [Line Items] | ||
Total current | 82,019,376 | 86,537,327 |
Collaboration Model [Member] | First lien [Member] | 31 - 90 days past due [Member] | ||
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of aging of allowance for credit losses [Line Items] | ||
Total current | 86,848,853 | 66,784,464 |
Collaboration Model [Member] | First lien [Member] | 91 - 180 days past due [Member] | ||
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of aging of allowance for credit losses [Line Items] | ||
Total current | 3,836,350 | 31,394,514 |
Collaboration Model [Member] | First lien [Member] | Total loans [Member] | ||
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of aging of allowance for credit losses [Line Items] | ||
Total current | 289,635,232 | 374,531,227 |
Collaboration Model [Member] | Second lien [Member] | ||
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of aging of allowance for credit losses [Line Items] | ||
Total current | 214,691,499 | 340,800,002 |
Collaboration Model [Member] | Second lien [Member] | 1 - 30 days past due [Member] | ||
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of aging of allowance for credit losses [Line Items] | ||
Total current | 118,189,879 | 124,542,266 |
Collaboration Model [Member] | Second lien [Member] | 31 - 90 days past due [Member] | ||
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of aging of allowance for credit losses [Line Items] | ||
Total current | 105,038,216 | 80,395,050 |
Collaboration Model [Member] | Second lien [Member] | 91 - 180 days past due [Member] | ||
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of aging of allowance for credit losses [Line Items] | ||
Total current | 8,411,486 | 26,996,820 |
Collaboration Model [Member] | Second lien [Member] | Total loans [Member] | ||
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of aging of allowance for credit losses [Line Items] | ||
Total current | 446,331,080 | 572,734,138 |
Traditional Facilitation Model [Member] | ||
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of aging of allowance for credit losses [Line Items] | ||
Total current | 2,833,062 | 11,110,205 |
Traditional Facilitation Model [Member] | 1 - 30 days past due [Member] | ||
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of aging of allowance for credit losses [Line Items] | ||
Total current | 503,699 | 5,789,175 |
Traditional Facilitation Model [Member] | 31 - 90 days past due [Member] | ||
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of aging of allowance for credit losses [Line Items] | ||
Total current | 8,597,543 | |
Traditional Facilitation Model [Member] | 91 - 180 days past due [Member] | ||
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of aging of allowance for credit losses [Line Items] | ||
Total current | 3,088,563 | |
Traditional Facilitation Model [Member] | Total loans [Member] | ||
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of aging of allowance for credit losses [Line Items] | ||
Total current | 3,336,761 | 28,585,486 |
Traditional Facilitation Model [Member] | First lien [Member] | ||
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of aging of allowance for credit losses [Line Items] | ||
Total current | 656 | 5,618,913 |
Traditional Facilitation Model [Member] | First lien [Member] | 1 - 30 days past due [Member] | ||
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of aging of allowance for credit losses [Line Items] | ||
Total current | 500,463 | 3,503,613 |
Traditional Facilitation Model [Member] | First lien [Member] | 31 - 90 days past due [Member] | ||
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of aging of allowance for credit losses [Line Items] | ||
Total current | 4,980,213 | |
Traditional Facilitation Model [Member] | First lien [Member] | 91 - 180 days past due [Member] | ||
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of aging of allowance for credit losses [Line Items] | ||
Total current | 1,574,208 | |
Traditional Facilitation Model [Member] | First lien [Member] | Total loans [Member] | ||
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of aging of allowance for credit losses [Line Items] | ||
Total current | 501,119 | 15,676,947 |
Traditional Facilitation Model [Member] | Second lien [Member] | ||
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of aging of allowance for credit losses [Line Items] | ||
Total current | 2,832,406 | 5,491,292 |
Traditional Facilitation Model [Member] | Second lien [Member] | 1 - 30 days past due [Member] | ||
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of aging of allowance for credit losses [Line Items] | ||
Total current | 3,236 | 2,285,562 |
Traditional Facilitation Model [Member] | Second lien [Member] | 31 - 90 days past due [Member] | ||
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of aging of allowance for credit losses [Line Items] | ||
Total current | 3,617,330 | |
Traditional Facilitation Model [Member] | Second lien [Member] | 91 - 180 days past due [Member] | ||
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of aging of allowance for credit losses [Line Items] | ||
Total current | 1,514,355 | |
Traditional Facilitation Model [Member] | Second lien [Member] | Total loans [Member] | ||
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of aging of allowance for credit losses [Line Items] | ||
Total current | ¥ 2,835,642 | ¥ 12,908,539 |
Loans Principal, Interest and_8
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of aging of past-due loan principal and financing service fee receivables - CNY (¥) | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Total current | ¥ 7,265,805,686 | ¥ 7,887,192,463 |
Total loans | 8,993,547,621 | 9,412,717,366 |
Total non-accrual | 102,563,398 | 200,004,129 |
1 - 30 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 874,568,417 | 803,697,722 |
31 - 90 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 750,610,120 | 521,823,052 |
91 - 180 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 28,054,554 | 127,039,920 |
181 - 270 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 27,348,321 | 15,081,401 |
271 - 360 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 12,398,086 | 13,236,956 |
361 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 34,762,437 | 44,645,852 |
Collaboration Model [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total current | 7,218,358,144 | 7,845,139,960 |
Total loans | 8,940,914,281 | 9,331,552,767 |
Total non-accrual | 99,554,751 | 186,077,926 |
Collaboration Model [Member] | 1 - 30 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 872,391,266 | 792,927,231 |
Collaboration Model [Member] | 31 - 90 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 750,610,120 | 507,407,650 |
Collaboration Model [Member] | 91 - 180 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 27,509,963 | 117,124,092 |
Collaboration Model [Member] | 181 - 270 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 27,348,321 | 14,435,651 |
Collaboration Model [Member] | 271 - 360 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 12,398,086 | 12,440,486 |
Collaboration Model [Member] | 361 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 32,298,381 | 42,077,697 |
Collaboration Model [Member] | First lien [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total current | 2,621,922,407 | 2,814,226,880 |
Total loans | 3,354,795,868 | 3,472,742,232 |
Total non-accrual | 35,678,425 | 102,801,583 |
Collaboration Model [Member] | First lien [Member] | 1 - 30 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 357,338,815 | 325,090,831 |
Collaboration Model [Member] | First lien [Member] | 31 - 90 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 339,856,221 | 230,622,938 |
Collaboration Model [Member] | First lien [Member] | 91 - 180 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 10,753,640 | 65,080,342 |
Collaboration Model [Member] | First lien [Member] | 181 - 270 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 4,686,900 | 6,979,995 |
Collaboration Model [Member] | First lien [Member] | 271 - 360 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 2,446,894 | 5,972,352 |
Collaboration Model [Member] | First lien [Member] | 361 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 17,790,991 | 24,768,894 |
Collaboration Model [Member] | Second lien [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total current | 4,596,435,737 | 5,030,913,080 |
Total loans | 5,586,118,413 | 5,858,810,535 |
Total non-accrual | 63,876,326 | 83,276,343 |
Collaboration Model [Member] | Second lien [Member] | 1 - 30 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 515,052,451 | 467,836,400 |
Collaboration Model [Member] | Second lien [Member] | 31 - 90 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 410,753,899 | 276,784,712 |
Collaboration Model [Member] | Second lien [Member] | 91 - 180 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 16,756,323 | 52,043,750 |
Collaboration Model [Member] | Second lien [Member] | 181 - 270 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 22,661,421 | 7,455,656 |
Collaboration Model [Member] | Second lien [Member] | 271 - 360 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 9,951,192 | 6,468,134 |
Collaboration Model [Member] | Second lien [Member] | 361 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 14,507,390 | 17,308,803 |
Traditional Facilitation Model [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total current | 47,447,542 | 42,052,503 |
Total loans | 52,633,340 | 81,164,599 |
Total non-accrual | 3,008,647 | 13,926,203 |
Traditional Facilitation Model [Member] | 1 - 30 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 2,177,151 | 10,770,491 |
Traditional Facilitation Model [Member] | 31 - 90 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 14,415,402 | |
Traditional Facilitation Model [Member] | 91 - 180 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 544,591 | 9,915,828 |
Traditional Facilitation Model [Member] | 181 - 270 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 645,750 | |
Traditional Facilitation Model [Member] | 271 - 360 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 796,470 | |
Traditional Facilitation Model [Member] | 361 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 2,464,056 | 2,568,155 |
Traditional Facilitation Model [Member] | First lien [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total current | 1,493,232 | 20,814,948 |
Total loans | 5,298,506 | 41,631,245 |
Total non-accrual | 1,641,978 | 5,949,506 |
Traditional Facilitation Model [Member] | First lien [Member] | 1 - 30 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 2,163,296 | 6,532,393 |
Traditional Facilitation Model [Member] | First lien [Member] | 31 - 90 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 8,334,398 | |
Traditional Facilitation Model [Member] | First lien [Member] | 91 - 180 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 544,591 | 4,887,949 |
Traditional Facilitation Model [Member] | First lien [Member] | 181 - 270 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 285,023 | |
Traditional Facilitation Model [Member] | First lien [Member] | 271 - 360 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 122,845 | |
Traditional Facilitation Model [Member] | First lien [Member] | 361 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 1,097,387 | 653,689 |
Traditional Facilitation Model [Member] | Second lien [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total current | 45,954,310 | 21,237,555 |
Total loans | 47,334,834 | 39,533,354 |
Total non-accrual | 1,366,669 | 7,976,697 |
Traditional Facilitation Model [Member] | Second lien [Member] | 1 - 30 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 13,855 | 4,238,098 |
Traditional Facilitation Model [Member] | Second lien [Member] | 31 - 90 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 6,081,004 | |
Traditional Facilitation Model [Member] | Second lien [Member] | 91 - 180 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 5,027,879 | |
Traditional Facilitation Model [Member] | Second lien [Member] | 181 - 270 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 360,727 | |
Traditional Facilitation Model [Member] | Second lien [Member] | 271 - 360 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 673,625 | |
Traditional Facilitation Model [Member] | Second lien [Member] | 361 days past due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | ¥ 1,366,669 | ¥ 1,914,466 |
Loans Principal, Interest and_9
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of impaired loans - CNY (¥) | Dec. 31, 2022 | Dec. 31, 2021 |
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of impaired loans [Line Items] | ||
Unpaid principal balance | ¥ 95,115,830 | ¥ 190,987,592 |
Recorded investment, Impaired loans | 102,563,398 | 200,004,129 |
Recorded investment, Impaired loans with related allowance for credit losses | 24,034,263 | 115,866,912 |
Recorded investment, Impaired loans without related allowance for credit losses | 78,529,135 | 84,137,217 |
Related allowance for credit losses | 12,247,836 | 61,479,897 |
First lien [Member] | ||
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of impaired loans [Line Items] | ||
Unpaid principal balance | 32,981,329 | 102,914,225 |
Recorded investment, Impaired loans | 37,320,404 | 108,751,090 |
Recorded investment, Impaired loans with related allowance for credit losses | 8,776,965 | 64,871,825 |
Recorded investment, Impaired loans without related allowance for credit losses | 28,543,440 | 43,879,265 |
Related allowance for credit losses | 3,836,350 | 32,968,721 |
Second lien [Member] | ||
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of impaired loans [Line Items] | ||
Unpaid principal balance | 62,134,501 | 88,073,367 |
Recorded investment, Impaired loans | 65,242,994 | 91,253,039 |
Recorded investment, Impaired loans with related allowance for credit losses | 15,257,298 | 50,995,087 |
Recorded investment, Impaired loans without related allowance for credit losses | 49,985,695 | 40,257,952 |
Related allowance for credit losses | ¥ 8,411,486 | ¥ 28,511,176 |
Loans Principal, Interest an_10
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of average recorded investment in impaired loans - CNY (¥) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
First lien [Member] | ||
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of average recorded investment in impaired loans [Line Items] | ||
Average recorded investment | ¥ 73,035,747 | ¥ 184,523,313 |
Interest and fees income recognized | 82,191,331 | 61,453,546 |
Second lien [Member] | ||
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of average recorded investment in impaired loans [Line Items] | ||
Average recorded investment | 78,248,017 | 176,098,252 |
Interest and fees income recognized | 83,791,498 | 61,775,021 |
Impaired Loans [Member] | ||
Loans Principal, Interest and Financing Service Fee Receivables (Details) - Schedule of average recorded investment in impaired loans [Line Items] | ||
Average recorded investment | 151,283,764 | 360,621,565 |
Interest and fees income recognized | ¥ 165,982,829 | ¥ 123,228,567 |
Investment Securities (Details)
Investment Securities (Details) | Dec. 31, 2022 CNY (¥) |
Investments, Debt and Equity Securities [Abstract] | |
Partnership return amount | ¥ 10,000,000 |
Interest rate percentage | 8% |
Principle and interests term | 3 years |
Amortized cost | ¥ 286,077,339 |
Credit loss | 15,248,938 |
Held-to-maturity debt securities have an amortized cost | 4,198,055 |
Allowance for credit loss | ¥ 719,622 |
Investment Securities (Detail_2
Investment Securities (Details) - Schedule of carrying amount and fair value of the investment securities - CNY (¥) | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-Sale [Line Items] | ||
Aggregate cost basis | ¥ 243,542,140 | ¥ 845,888,854 |
Profits and losses from fair value changes | 795,587 | 1,158,441 |
Aggregate fair value | 244,337,727 | 847,047,295 |
Wealth management products [Member] | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Aggregate cost basis | 243,542,140 | 845,888,854 |
Profits and losses from fair value changes | 795,587 | 1,158,441 |
Aggregate fair value | ¥ 244,337,727 | ¥ 847,047,295 |
Property and Equipment (Details
Property and Equipment (Details) - CNY (¥) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | ¥ 1,722,640 | ¥ 3,077,154 |
Property and Equipment (Detai_2
Property and Equipment (Details) - Schedule of property and equipment - CNY (¥) | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Property and Equipment [Abstract] | ||
Less: accumulated depreciation | ¥ (35,160,018) | ¥ (34,248,905) |
Total | 2,284,262 | 3,041,946 |
Office and other equipment [Member] | ||
Schedule of Property and Equipment [Abstract] | ||
Property and equipment | 18,167,730 | 18,059,177 |
Leasehold improvements [Member] | ||
Schedule of Property and Equipment [Abstract] | ||
Property and equipment | 16,904,137 | 17,179,429 |
Motor vehicles [Member] | ||
Schedule of Property and Equipment [Abstract] | ||
Property and equipment | ¥ 2,372,413 | ¥ 2,052,245 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill (Details) - CNY (¥) | Dec. 31, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Accumulated amortization | ¥ 15,306,241 | ¥ 14,784,602 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill (Details) - Schedule of intangible assets and goodwil - CNY (¥) | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Intangible Assets and goodwil [Abstract] | ||
Intangible assets | ¥ 3,487,733 | ¥ 4,009,372 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill (Details) - Schedule of intangible assets - CNY (¥) | Dec. 31, 2022 | Dec. 31, 2021 |
Amortized intangible assets: | ||
Gross carrying value | ¥ 15,823,974 | ¥ 15,823,974 |
Accumulated amortisation | (15,306,241) | (14,784,602) |
Net carrying value | 517,733 | 1,039,372 |
Software [Member] | ||
Amortized intangible assets: | ||
Gross carrying value | 10,793,974 | 10,793,974 |
Accumulated amortisation | (10,276,241) | (9,754,602) |
Net carrying value | 517,733 | 1,039,372 |
Cooperation agreement [Member] | ||
Amortized intangible assets: | ||
Gross carrying value | 5,030,000 | 5,030,000 |
Accumulated amortisation | (5,030,000) | (5,030,000) |
Net carrying value | ||
Trademarks [Member] | ||
Unamortized intangible assets: | ||
Gross carrying value, Trademarks | ¥ 2,970,000 | ¥ 2,970,000 |
Intangible Assets and Goodwil_5
Intangible Assets and Goodwill (Details) - Schedule of amortization expense for current year and future periods - Software [Member] | Dec. 31, 2022 CNY (¥) |
Schedule of Amortization Expense for Current Year and Future Periods [Abstract] | |
Year ended December 31, 2022 (actual) | ¥ 521,639 |
Estimate for year ended December 31, | |
2023 | 517,143 |
2024 | 590 |
2025 | |
2026 | |
2027 |
Deposits (Details)
Deposits (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Deposits Assets Disclosures Abstract | |
Percentage of size of trust plans subscribed | 1% |
Other Assets (Details)
Other Assets (Details) - CNY (¥) | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2016 | Dec. 31, 2022 | Jan. 31, 2022 | Dec. 31, 2021 | Sep. 18, 2019 | |
Other Assets (Details) [Line Items] | |||||
Transferred loan amount | ¥ 990,485,783 | ||||
Percentage of paid in capital invested | 1.72% | 1.72% | |||
Unrelated third party shares (in Shares) | 2,000,000 | ||||
Investment cost | ¥ 3 | ||||
Paid-in capital | ¥ 1,024,203,515 | ¥ 1,018,429,249 | |||
Amount of investment | ¥ 25,000,000 | ||||
Traditional model | 238,616 | ||||
Commercial bank | 30,784,359 | ||||
Guangzhou Minghui [Member] | |||||
Other Assets (Details) [Line Items] | |||||
Transferred loan amount | 27,769,074 | ||||
Qingyuan Rural [Member] | |||||
Other Assets (Details) [Line Items] | |||||
Group transfers of shares (in Shares) | 10,003,334 | ||||
Group invested (in Yuan Renminbi per share) | ¥ 3 | ||||
Percentage of paid in capital invested | 2.14% | ||||
Paid-in capital | 1,400,000,000 | ||||
Amount of investment | ¥ 24,010,000 | ||||
Guangzhou Mingfeng [Member] | |||||
Other Assets (Details) [Line Items] | |||||
Amount of investment | ¥ 40,000,000 | ||||
Guangzhou Minghui [Member] | |||||
Other Assets (Details) [Line Items] | |||||
Transferred loan amount | ¥ 350,783,000 |
Other Assets (Details) - Schedu
Other Assets (Details) - Schedule of other assets - CNY (¥) | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of other assets [Abstract] | |||
Receivable from sale of loans | [1] | ¥ 32,469,152 | ¥ 197,226,882 |
Guarantee deposits | [2] | 243,470,845 | 74,680,000 |
Receivables from disposal of subsidiary | [3] | 50,000,000 | |
Prepayments | 94,853,194 | 34,068,479 | |
Non-marketable equity securities | [4] | 49,010,000 | 24,010,000 |
Amounts due from employees | [5] | 34,269,800 | 4,606,389 |
Receivables for realization of collaterals | [6] | 31,022,975 | 722,603 |
Receivables from loan facilitation service | 49,963,322 | ||
Receivables of guarantee service | 97,552,160 | ||
Other receivables | 37,277,452 | 19,511,778 | |
Total | ¥ 669,888,900 | ¥ 404,826,131 | |
[1]As mentioned in Note 5, the Group transferred the delinquent loans to third parties so that the Group could collect the payment more quickly than to simply dispose the collaterals through litigation. The transferred loans have been isolated from the Group. There is no constrain on the transferee’s rights to pledge or exchange. The Group does not maintain effective control of transferred loans and loan transfers accounted for as sales are the transfer transactions without repurchase agreements. In 2021, the Group transferred loans under traditional facilitation model with balances amounting to RMB990,485,783 to Guangzhou Minghui Capital Management Co., Ltd. (“Guangzhou Minghui”) for transfer price of RMB350,783,000. As of December 31, 2022, the amount due from Guangzhou Minghui for such transfer is RMB27,769,074.[2]Guarantee deposits are deposits that the Group provided, through Guangdong Nanfeng Financial Guarantee Group Co., Ltd (“Guangzhou Nanfeng”), which holds a financial guarantee license, for loans granted (a) under its consolidated VIE Zhonghai Lanhai Structured Fund 30-X, which is not structured in a stratified way and requires guarantee from a third party, and (b) under the cooperation with commercial banks for introduction of borrowers and provision of post-origination services, refer to Note 2(e)(ii) Off-balance sheet loans.[3]The Group disposed of one of its wholly-owned subsidiaries Ningbo Lianjia Enterprise Management Advisory Co., Ltd. to an unrelated third party in 2021 and relevant consideration was received in January 2022.[4]In June 2016, the Group invested 10,003,334 shares at RMB3.00 per share, which represents 2.14% of the paid-in capital in Guangdong Qingyuan Rural Commercial Bank (“Qingyuan Rural”). The Group transferred 2 million shares to an unrelated third party at RMB3.00 per share that is same as the investment cost on September 18, 2019. As of December 31, 2021 and 2022, the Group invested 1.72% of the paid-in capital in Qingyuan Rural. Qingyuan Rural has paid-in capital of RMB1,400,000,000, and the Group has invested RMB24,010,000 in Qingyuan Rural.In January 2022, the Group and Guangzhou Minghui set up Guangzhou Mingfeng Partnership (“Guangzhou Mingfeng”). The total paid-in capital was RMB40,000,000 and the Group has invested RMB25,000,000 in Guangzhou Mingfeng.The measurement alternative is selected for the above non-marketable equity securities. Under the measurement alternative, the equity securities without readily determinable fair value are measured at cost minus impairment and adjusted for changes in observable prices. No change in observable price has been identified and no impairment has been recorded for the two years of 2021 and 2022.[5]Amounts due from employees mainly include temporary advances to employees for payments of collateral evaluation fee, mortgage handling fee, payments for office supplies, etc. on behalf of the Group.[6]the receivables for realization of collaterals under traditional model is RMB238,616 and the receivables for realization of collaterals under commercial bank partnership model is RMB30,784,359. |
Interest-Bearing Borrowings (De
Interest-Bearing Borrowings (Details) - CNY (¥) | 1 Months Ended | ||||
Dec. 02, 2022 | Dec. 26, 2022 | Nov. 16, 2022 | Aug. 29, 2022 | Dec. 31, 2022 | |
Interest-Bearing Borrowings (Details) [Line Items] | |||||
Interest payable | ¥ 673,631 | ||||
Guangdong Yueke Asset Management Co., Ltd [Member] | |||||
Interest-Bearing Borrowings (Details) [Line Items] | |||||
Carrying amount | ¥ 26,420,000 | ||||
Terms of transferred loans overdue | 1 year | ||||
Interest payable | 122,365 | ||||
Shenzhen Ruifeng Baoying Asset Management Co., Ltd. [Member] | |||||
Interest-Bearing Borrowings (Details) [Line Items] | |||||
Terms of transferred loans overdue | 1 year | ||||
Yuehai Asset [Member] | |||||
Interest-Bearing Borrowings (Details) [Line Items] | |||||
Interest payable | 18,494,000 | ||||
Xiamen Asset Management Co Ltd [Member] | |||||
Interest-Bearing Borrowings (Details) [Line Items] | |||||
Carrying amount | ¥ 5,965,976 | ||||
Pingan Puhui [Member] | |||||
Interest-Bearing Borrowings (Details) [Line Items] | |||||
Interest payable | 5,376,724 | ||||
Pingan Puhui Lixin Asset Management Co., Ltd [Member] | |||||
Interest-Bearing Borrowings (Details) [Line Items] | |||||
Interest payable | 252,149 | ||||
China Foreign Economy and Trade Trust Co.,Ltd [Member] | |||||
Interest-Bearing Borrowings (Details) [Line Items] | |||||
Carrying amount | ¥ 86,803,141 | ¥ 86,803,141 | |||
Terms of transferred loans overdue | 1 year | 1 year | |||
Interest payable | 87,723,141 | ||||
VIEs [Member] | |||||
Interest-Bearing Borrowings (Details) [Line Items] | |||||
Principal payment | ¥ 7,667,104,054 | ||||
VIEs [Member] | Minimum [Member] | |||||
Interest-Bearing Borrowings (Details) [Line Items] | |||||
Interest rate | 6.30% | ||||
VIEs [Member] | Maximum [Member] | |||||
Interest-Bearing Borrowings (Details) [Line Items] | |||||
Interest rate | 11.50% |
Interest-Bearing Borrowings (_2
Interest-Bearing Borrowings (Details) - Schedule of repurchase the financial assets at the transaction’s maturity - CNY (¥) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Repurchase the Financial Assets at the Transaction’s Maturity [Abstract] | ||
Gross obligations under repurchase agreements | ¥ 112,642,010 | ¥ 45,250,000 |
Funds obtained from financial institution [Member] | ||
Schedule of Repurchase the Financial Assets at the Transaction’s Maturity [Abstract] | ||
Term | Within 2 years | |
Gross obligations under repurchase agreements | ¥ 111,593,865 | 45,250,000 |
Funds obtained from financial institution [Member] | Minimum [Member] | ||
Schedule of Repurchase the Financial Assets at the Transaction’s Maturity [Abstract] | ||
Fixed interest rate per annum | 10.50% | |
Funds obtained from financial institution [Member] | Maximum [Member] | ||
Schedule of Repurchase the Financial Assets at the Transaction’s Maturity [Abstract] | ||
Fixed interest rate per annum | 13.80% | |
Interest payable financial institution [Member] | ||
Schedule of Repurchase the Financial Assets at the Transaction’s Maturity [Abstract] | ||
Gross obligations under repurchase agreements | ¥ 1,048,145 |
Interest-Bearing Borrowings (_3
Interest-Bearing Borrowings (Details) - Schedule of carrying amounts of pledged assets - CNY (¥) | Dec. 31, 2022 | Dec. 31, 2021 |
Segment Reporting Information [Line Items] | ||
Gross obligations under repurchase agreements | ¥ 111,593,865 | ¥ 45,250,000 |
Loans principal, interest and financing service fee receivables [Member] | ||
Segment Reporting Information [Line Items] | ||
Gross obligations under repurchase agreements | ¥ 111,593,865 | ¥ 45,250,000 |
Interest-Bearing Borrowings (_4
Interest-Bearing Borrowings (Details) - Schedule of contractual maturities of the gross obligations under repurchase agreements - CNY (¥) | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Contractual Maturities of the Gross Obligations under Repurchase Agreements [Abstract] | ||
Gross obligations under repurchase agreements | ¥ 111,593,865 | ¥ 45,250,000 |
Overnight [Member] | ||
Schedule of Contractual Maturities of the Gross Obligations under Repurchase Agreements [Abstract] | ||
Gross obligations under repurchase agreements | ||
Up to 30 days [Member] | ||
Schedule of Contractual Maturities of the Gross Obligations under Repurchase Agreements [Abstract] | ||
Gross obligations under repurchase agreements | ||
30 to 90 days [Member] | ||
Schedule of Contractual Maturities of the Gross Obligations under Repurchase Agreements [Abstract] | ||
Gross obligations under repurchase agreements | ||
Greater than 90 days [Member] | ||
Schedule of Contractual Maturities of the Gross Obligations under Repurchase Agreements [Abstract] | ||
Gross obligations under repurchase agreements | ¥ 111,593,865 | ¥ 45,250,000 |
Interest-Bearing Borrowings (_5
Interest-Bearing Borrowings (Details) - Schedule of other borrowings - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Short-term: | |||
Other borrowings, Total | ¥ 7,727,559,337 | ¥ 8,041,892,080 | |
Investors of consolidated VIEs [Member] | Short-term [Member] | |||
Short-term: | |||
Term | [1] | Less than 1 year | |
Other borrowings, Total | [1] | ¥ 5,675,480,078 | 4,654,388,213 |
Investors of consolidated VIEs [Member] | Short-term [Member] | Minimum [Member] | |||
Short-term: | |||
Fixed interest rate per annum | [1] | 6.30% | |
Investors of consolidated VIEs [Member] | Short-term [Member] | Maximum [Member] | |||
Short-term: | |||
Fixed interest rate per annum | [1] | 10.50% | |
Investors of consolidated VIEs [Member] | Long-term [Member] | |||
Short-term: | |||
Term | [1] | 1 - 5 years | |
Other borrowings, Total | [1] | ¥ 1,991,623,976 | 3,330,334,482 |
Investors of consolidated VIEs [Member] | Long-term [Member] | Minimum [Member] | |||
Short-term: | |||
Fixed interest rate per annum | [1] | 7% | |
Investors of consolidated VIEs [Member] | Long-term [Member] | Maximum [Member] | |||
Short-term: | |||
Fixed interest rate per annum | [1] | 11.50% | |
Investors of consolidated VIEs [Member] | Interest payable to [Member] | |||
Short-term: | |||
Other borrowings, Total | [1] | ¥ 60,455,283 | ¥ 57,169,385 |
[1]The financial liabilities arising from the VIEs with underlying investments in loans to customers are classified as payable in these consolidated financial statements. It is because the Group has an obligation to pay senior tranches holders upon maturity dates based on the related terms of those consolidated structured funds. As of December 31, 2022, the borrowings from VIEs have principal RMB7,667,104,054, bearing interests from 6.3% to 11.5% per year. |
Interest-Bearing Borrowings (_6
Interest-Bearing Borrowings (Details) - Schedule of aggregate annual maturities of long-term borrowing obligations - Investors of consolidated VIEs [Member] | Dec. 31, 2022 CNY (¥) |
Schedule of Aggregate Annual Maturities of Long-Term Borrowing Obligations [Abstract] | |
2023 | |
2024 | 1,084,492,735 |
2025 | 237,055,841 |
2026 | 13,075,400 |
2027 | |
Thereafter | 657,000,000 |
Total | ¥ 1,991,623,976 |
Interest-Bearing Borrowings (_7
Interest-Bearing Borrowings (Details) - Schedule of carrying amounts of pledged assets - CNY (¥) | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Carrying Amounts of Pledged Assets [Abstract] | ||
Pledged assets | ¥ 147,257,249 | ¥ 64,640,192 |
Loans principal, interest and financing service fee receivables [Member] | ||
Schedule of Carrying Amounts of Pledged Assets [Abstract] | ||
Pledged assets | ¥ 147,257,249 | ¥ 64,640,192 |
Credit Risk Mitigation Positi_3
Credit Risk Mitigation Position (Details) | Dec. 31, 2022 |
Minimum [Member] | |
Credit Risk Mitigation Position (Details) [Line Items] | |
Securities deposit percentage | 10% |
Maximum [Member] | |
Credit Risk Mitigation Position (Details) [Line Items] | |
Securities deposit percentage | 25% |
Credit Risk Mitigation Positi_4
Credit Risk Mitigation Position (Details) - Schedule of credit risk mitigation position - CNY (¥) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of credit risk mitigation position [Abstract] | ||
Balance at the beginning of the year | ¥ 1,348,449,426 | ¥ 1,209,729,138 |
Increase during the year | 960,663,187 | 1,203,458,816 |
Decrease during the year | (883,079,007) | (1,052,004,847) |
Confiscation during the year | (71,380,536) | (12,733,681) |
Balance at the end of the year | ¥ 1,354,653,070 | ¥ 1,348,449,426 |
Other Liabilities (Details)
Other Liabilities (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2022 CNY (¥) | |
Other Liabilities (Details) [Line Items] | |
Net income percentage | 10% |
Future payment (in Yuan Renminbi) | ¥ 2,450,370 |
Other liabilities description | Other liabilities are expected to be settled or recognized as income within one year or are repayable on demand. |
Minimum [Member] | |
Other Liabilities (Details) [Line Items] | |
Initial term of guarantee liabilities | 1 year |
Remaining term of guarantee liabilities | 1 year |
Maximum [Member] | |
Other Liabilities (Details) [Line Items] | |
Initial term of guarantee liabilities | 10 years |
Remaining term of guarantee liabilities | 10 years |
Other Liabilities (Details) - S
Other Liabilities (Details) - Schedule of other liabilities - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Schedule of other liabilities [Abstract] | |||
Guarantee repayments from sales partner | [1] | ¥ 416,698,397 | ¥ 259,439,715 |
Guarantee liabilities | [2] | 230,867,505 | 3,182,958 |
Settlement and clearing accounts | [3] | 135,652,186 | 74,255,253 |
Other tax payables | [4] | 74,985,486 | 70,756,236 |
Collaboration cost payable | [5] | 50,393,275 | 59,554,661 |
Customer pledged deposits | [6] | 39,296,162 | 40,363,129 |
Receipt in advance | [7] | 35,645,384 | 53,125,074 |
Amounts due to third parties | 18,591,226 | 216,526,655 | |
Accrued expenses | [8] | 16,486,002 | 5,773,392 |
Others | [9] | 9,855,045 | 2,784,212 |
Total | ¥ 1,028,470,668 | ¥ 785,761,285 | |
[1]Under the collaboration model, sales partners are required to provide a certain level of guarantee of repayment for loans recommended. Guarantee repayments from sales partner mainly consist of repayments collected from sales partners who exercise the guarantee, and those repayments will be returned to trust company. In accordance with the Company’s PRC subsidiaries’ articles of associate, the subsidiaries are required to appropriate 10% of their net incomes, upon approval by board of directors.[2]In 2021, the Group started to cooperate with a third-party guarantee company, Guangzhou Nanfeng, that directly provides guarantee services to commercial banks. According to relevant financial guarantee arrangements, Guangzhou Nanfeng will fulfil its obligations to purchase defaulted loans. However, the Group is required to provide deposits and replenish such deposits from time to time to Guangzhou Nanfeng for its obligations of purchasing defaulted loans. Effectively, the Group provides back-to-back guarantee to Guangzhou Nanfeng and takes on all of the credit risk of the borrowers. These financial guarantee contracts are accounted for as guarantee liabilities under ASC 460, Guarantees.As of December 31, 2022, maximum potential undiscounted future payment that the Group would be required to make was RMB2,450.37 million. The initial term of the guarantee liabilities is the same as the term of loans facilitated under the arrangements with commercial banks, which ranges from 1 year to 10 years, as of December 31, 2022. The remaining term of the guarantee liabilities range from 1 year to 10 years as of December 31, 2022.[3]The Group transferred loans to third party investors and recorded these transactions as sales in Note 5(c). After the transfer, the contract terms related to payment proceeds from the loans remain the same: The Group collects payments of loans and then disburses the proceeds from the relevant loans to third-party transferees.[4]Other tax payables mainly represent value-added tax and surcharges payables.[5]As mentioned in Note 21, the Group will pay collaboration cost to the sales partners who introduce prospective borrowers to the Group. The collaboration cost for sales partners is a fixed percentage of the loan principal amount and is calculated by subtracting the project cost from interest and fees income received from borrowers.[6]Customer pledged deposits mainly consist of the deposits collected from certain customers to reduce the risk of failure to make payments on schedule.[7]Receipt in advance consists of advance for interest and financing service fees on loans and down payments of loans held-for-sale by loan transferees.[8]Accrued expenses mainly consist of promotional costs relating to building the collaboration model and expenses payable to consultants such as the auditor and lawyer.[9]Other liabilities are expected to be settled or recognized as income within one year or are repayable on demand. |
Ordinary Shares (Details)
Ordinary Shares (Details) | Nov. 21, 2018 $ / shares shares | Nov. 07, 2018 $ / shares shares | Jul. 11, 2018 $ / shares shares | Jan. 08, 2014 $ / shares | Dec. 31, 2022 shares | Jul. 19, 2021 shares | Jan. 08, 2014 HKD ($) $ / shares shares |
Ordinary Shares (Details) [Line Items] | |||||||
Authorized share capital value (in Dollars) | $ | $ 380,000 | ||||||
Authorized share capital shares | 3,800,000,000 | ||||||
Price per share | (per share) | $ 1 | $ 0.0001 | |||||
Consideration per share of one subscriber's share allotted and issued (in Dollars per share) | $ / shares | $ 0.0001 | ||||||
Percentage ordinary shares of one subscriber's share allotted and issued | 100% | ||||||
Number of shares repurchased | 1,230,434,041 | ||||||
Number of shares issued | 1,230,434,040 | ||||||
Redenomination, description | As the result of the above redenomination, the par value of the Company’s shares has been changed from HKD0.0001 to USD0.0001, and its authorized share capital has been increased to USD380,000 divided into 3,800,000,000 shares of USD0.0001 each. | ||||||
Ordinary shares issued | 187,933,720 | 187,933,720 | |||||
IPO [Member] | |||||||
Ordinary Shares (Details) [Line Items] | |||||||
Number of shares issued | 130,000,000 | ||||||
Number of ADS issued | 6,500,000 | ||||||
Green Shoes Options [Member] | |||||||
Ordinary Shares (Details) [Line Items] | |||||||
Number of shares issued | 2,709,200 | 8,500,000 | |||||
Number of ADS issued | 135,460 | 425,000 | |||||
Share price per ADS (in Dollars per share) | $ / shares | $ 0.5 | $ 0.5 |
Retained Earnings (Details)
Retained Earnings (Details) | 1 Months Ended | 12 Months Ended |
Mar. 31, 2012 | Dec. 31, 2022 | |
Retained Earnings Disclosure Abstract | ||
Percentage of gross risk bearing assets | 1.50% | |
Percentage of net income approval by board of directors | 10% |
Retained Earnings (Details) - S
Retained Earnings (Details) - Schedule of retained earnings - CNY (¥) | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of retained earnings [Abstract] | |||
PRC statutory reserves | [1] | ¥ 258,654,052 | ¥ 258,654,052 |
PRC surplus reserves | [2] | 169,552,789 | 164,653,757 |
Unreserved retained earnings | 2,530,509,454 | 2,401,027,454 | |
Total | ¥ 2,958,716,295 | ¥ 2,824,335,263 | |
[1]With effect from July 1, 2012, pursuant to the “Administrative Measures on Accrual of Provisions by Financial Institutions” issued by the MOF in March 2012, the Group is required, in principle, to set aside a general reserve not lower than 1.5% of the ending balance of its gross risk-bearing assets.[2]In accordance with the Company’s PRC subsidiaries’ articles of associate, the subsidiaries are required to appropriate 10% of their net incomes, upon approval by board of directors. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Losses (Details) - Schedule of accumulated other comprehensive losses - CNY (¥) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of accumulated other comprehensive losses [Abstract] | ||
Foreign currency translation adjustment, Beginning Balance | ¥ (25,393,515) | ¥ (18,456,546) |
Foreign currency translation adjustment, Other comprehensive loss, net | 15,181,518 | (6,936,969) |
Foreign currency translation adjustment,, Ending Balance | (10,211,997) | (25,393,515) |
Beginning Balance, Total | (25,393,515) | (18,456,546) |
Other comprehensive income, net total | 15,181,518 | (6,936,969) |
Ending Balance, Total | ¥ (10,211,997) | ¥ (25,393,515) |
Interest and Fees Income (Detai
Interest and Fees Income (Details) - Schedule of interest and fees income costs - CNY (¥) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Schedule of interest and fees income costs [Abstract] | ||||
Interest and financing service fees on loans | [1] | ¥ 1,574,074,534 | ¥ 1,770,351,645 | ¥ 1,828,687,910 |
- Interest income | 1,573,405,364 | 1,759,906,523 | 1,828,687,910 | |
- Financing service fees | 669,170 | 10,445,122 | ||
Interest income charged to sales partners | [2] | 122,019,472 | 33,448,660 | 10,001,581 |
Interest income on debt securities | [3] | 22,195,046 | ||
Interest on deposits with banks | 13,063,523 | 11,973,675 | 16,133,918 | |
Total | ¥ 1,731,352,575 | ¥ 1,815,773,980 | ¥ 1,854,823,409 | |
[1]Interest and financing service fees on loans, which include financing service fees on loans, are recognized in the consolidated statements of comprehensive income using the effective interest method. Financing service fees on loans, are deferred and amortized over the contractual life of the related loans utilizing the effective interest method.[2]Interest income charged to sales partners refers to the cost of and interest on the partner’s instalment repurchase options under collaboration model.[3]Interest income on debt securities in forms of partnership investment and corporate debt securities. Please refer to note 6(b). |
Net Revenue Under the Commerc_2
Net Revenue Under the Commercial Bank Partnership Model (Details) | 12 Months Ended |
Dec. 31, 2022 CNY (¥) | |
Disclosure Text Block Supplement [Abstract] | |
Borrowers | ¥ 48,352,866 |
Covering cash processing services | 6,226,524 |
Guarantee receivable | 97,552,160 |
Gains from guarantee liabilities | 15,167,071 |
Commission fee | ¥ 12,195,456 |
Collaboration Cost for Sales _2
Collaboration Cost for Sales Partners (Details) - Cost of Sales [Member] | 12 Months Ended |
Dec. 31, 2022 | |
Minimum [Member] | |
Deposit [Line Items] | |
loans issued to the borrowers, percentages | 10% |
Maximum [Member] | |
Deposit [Line Items] | |
loans issued to the borrowers, percentages | 25% |
Provision for Credit Losses (De
Provision for Credit Losses (Details) - Schedule of provision for credit losses - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Provision for Credit Losses [Abstract] | |||
Provision for credit losses | ¥ (238,084,863) | ¥ 298,467,893 | ¥ (77,348,480) |
Home equity loans [Member] | |||
Schedule of Provision for Credit Losses [Abstract] | |||
Provision for credit losses | (55,755,647) | 257,624,013 | (58,216,554) |
Corporate loans [Member] | |||
Schedule of Provision for Credit Losses [Abstract] | |||
Provision for credit losses | (24,693,114) | ||
Debt securities [Member] | |||
Schedule of Provision for Credit Losses [Abstract] | |||
Provision for credit losses | (10,565,475) | (5,403,084) | |
Guarantee liabilities [Member] | |||
Schedule of Provision for Credit Losses [Abstract] | |||
Provision for credit losses | (155,017,657) | (3,182,958) | |
Trade and other receivables [Member] | |||
Schedule of Provision for Credit Losses [Abstract] | |||
Provision for credit losses | ¥ 7,947,030 | ¥ 49,429,922 | ¥ (19,131,926) |
Realized Gains on Sales of In_2
Realized Gains on Sales of Investments, Net (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Realized Gains Losses On Sales Of Investments Net Abstract | |||
Gross realized gains on sales of investments | ¥ 28,330,375 | ¥ 57,368,616 | ¥ 70,611,492 |
Gross realized losses on sales of investments | ¥ 7,763,703 | ¥ 38,198,180 | ¥ 50,457,833 |
Net Losses on Sales of Loans (D
Net Losses on Sales of Loans (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Sales [Member] | |||
Net Losses on Sales of Loans (Details) [Line Items] | |||
Net (losses)/gains on sales of loans | ¥ 44,554,948 | ¥ 479,584,775 | ¥ 50,606,487 |
Other Gains, Net (Details)
Other Gains, Net (Details) - CNY (¥) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Other Revenue Disclosure Abstract | ||
Foreign exchange gain (loss) | ¥ 7,355,135 | ¥ 6,569,055 |
Other Gains, Net (Details) - Sc
Other Gains, Net (Details) - Schedule of other gains, net - CNY (¥) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Schedule of other gains, net [Abstract] | ||||
Net gains on confiscated credit risk mitigation positions | [1] | ¥ 71,380,536 | ¥ 12,733,681 | ¥ 13,446,619 |
Profits/(losses) from fair value changes | [2] | (362,855) | 1,101,669 | 56,773 |
Foreign exchange (losses)/gains | 7,355,135 | 786,080 | (5,345,004) | |
Net loss on disposal of property and equipment | (30,742) | (328,262) | (2,868) | |
Mortgage agency service revenue | 511,500 | |||
Others | 11,571,964 | 7,768,674 | 1,093,452 | |
Total | ¥ 89,914,038 | ¥ 22,061,842 | ¥ 9,760,472 | |
[1]Sales partners provide CRMPs as security deposits. Pursuant to the collaboration agreements if the debtor’s loan principal repayments or accrued interests are past due or the loan is in default, sales partners are obliged to fulfill their guaranteed responsibility by selecting among different approaches, otherwise the CRMPs deposited by sales partners are confiscated by the Group, refer to Note 1[2]Profits/(losses) from fair value changes refers to gains or losses resulting from changes in the fair value of investment securities. |
Other Expenses (Details) - Sche
Other Expenses (Details) - Schedule of other expenses - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Other Expenses [Abstract] | |||
Advertising and promotion expenses | ¥ 32,412,727 | ¥ 29,171,942 | ¥ 30,471,983 |
Litigation and attorney fees | 7,680,633 | 18,697,784 | 33,267,682 |
Entertainment and travelling expenses | 9,740,873 | 10,793,089 | 7,010,704 |
Office and commute expenses | 7,791,694 | 10,711,801 | 9,120,261 |
Consulting fees | 12,016,260 | 9,330,732 | 14,486,656 |
Communication expenses | 2,424,242 | 3,861,529 | 2,495,071 |
Depreciation and amortization | 2,244,279 | 3,821,788 | 6,047,226 |
Directors and officers liability insurance | 3,474,151 | 3,545,117 | 4,232,722 |
Research and development expenses | 760,465 | 1,602,095 | 9,960,607 |
Others | 7,344,173 | 8,964,511 | 6,949,270 |
Total | ¥ 85,889,497 | ¥ 100,500,388 | ¥ 124,042,182 |
Income Tax Expense (Details)
Income Tax Expense (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Expense (Details) [Line Items] | |||
Net operating loss carryforwards | ¥ 36,465,159 | ||
Deferred tax assets net operating loss carryforwards | 9,116,290 | ¥ 15,226,575 | |
Net operating losses subject to expiration in 2025 if not utilized | 34,020,989 | ||
Net operating losses subject to expiration in 2026 if not utilized | 2,444,170 | ||
Cumulative amount of temporary difference in respect of investments PRC subsidiaries | ¥ 2,560,782,025 | ||
Percentage of withholding income tax | 10% | ||
Amount of unrecognized deferred tax liabilities | ¥ 256,078,202 | ||
PRC statutory income tax rate | 25% | 25% | 25% |
PRC [Member] | |||
Income Tax Expense (Details) [Line Items] | |||
PRC statutory income tax rate | 25% |
Income Tax Expense (Details) -
Income Tax Expense (Details) - Schedule of income tax expense relates to the PRC - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of income tax expense relates to the PRC [Abstract] | |||
Current tax expense | ¥ 171,146,093 | ¥ 218,567,885 | ¥ 142,238,819 |
Deferred tax benefit | (133,913,450) | (190,009,905) | (94,389,779) |
Total income tax expense | ¥ 37,232,643 | ¥ 28,557,980 | ¥ 47,849,040 |
Income Tax Expense (Details) _2
Income Tax Expense (Details) - Schedule of components of the deferred tax assets and liabilities - CNY (¥) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred tax assets: | ||
Net loans principal, interest and financing service fee receivables | ¥ 316,744,794 | ¥ 444,036,207 |
Debt securities | 3,992,140 | 1,350,771 |
Guarantee liabilities | 37,120,604 | |
Net operating loss carry-forwards | 9,116,290 | 15,226,575 |
Lease liabilities | 7,145,869 | 3,880,255 |
Other deferred tax assets | 669,876 | 928,979 |
Total deferred tax assets | 374,789,573 | 465,422,787 |
Valuation allowance | (9,116,290) | (15,226,575) |
Deferred tax assets, net of valuation allowance | 365,673,283 | 450,196,212 |
Net deferred tax assets | 76,904,707 | 21,068,094 |
Deferred tax liabilities: | ||
Intangible assets | (742,500) | (742,500) |
Equity securities | (171,864) | (289,610) |
Right-of-use assets | (7,444,339) | (4,049,202) |
Intercompany receivables | (41,988,923) | (45,849,201) |
Guarantee assets | (181,602,700) | (322,437,865) |
Undistributed earnings from structured funds | (130,570,272) | (207,588,600) |
Total deferred tax liabilities | (362,520,598) | (580,956,978) |
Net deferred tax liabilities | ¥ (73,752,022) | ¥ (151,828,860) |
Income Tax Expense (Details) _3
Income Tax Expense (Details) - Schedule of movement of valuation allowance - CNY (¥) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of movement of valuation allowance [Abstract] | ||
At the beginning of year | ¥ 15,226,575 | ¥ 10,443,239 |
Current year additions | 613,314 | 7,238,296 |
Current year reversals | (6,722,726) | (2,427,869) |
Current year expiration of carryforwards | (873) | (27,091) |
Net change in the valuation allowance | (6,110,285) | 4,783,336 |
At the end of year | ¥ 9,116,290 | ¥ 15,226,575 |
Income Tax Expense (Details) _4
Income Tax Expense (Details) - Schedule of income before income tax - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Expense (Details) - Schedule of income before income tax [Line Items] | |||
Total | ¥ 172,584,054 | ¥ 93,765,444 | ¥ 162,701,566 |
Cayman Islands [Member] | |||
Income Tax Expense (Details) - Schedule of income before income tax [Line Items] | |||
Total | (477,322) | (189,507) | (2,847,746) |
BVI [Member] | |||
Income Tax Expense (Details) - Schedule of income before income tax [Line Items] | |||
Total | (20,803) | (247) | (22,126) |
Hong Kong [Member] | |||
Income Tax Expense (Details) - Schedule of income before income tax [Line Items] | |||
Total | 2,773,547 | (11,202,740) | 3,424,910 |
PRC [Member] | |||
Income Tax Expense (Details) - Schedule of income before income tax [Line Items] | |||
Total | ¥ 170,308,632 | ¥ 105,157,938 | ¥ 162,146,528 |
Income Tax Expense (Details) _5
Income Tax Expense (Details) - Schedule of reconciliation of statutory income tax rate to the effective income tax rate | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of reconciliation of statutory income tax rate to the effective income tax rate [Abstract] | |||
PRC statutory income tax rate | 25% | 25% | 25% |
(Decrease)/increase in effective income tax rate resulting from: | |||
Tax-free income | (1.36%) | (10.63%) | (8.02%) |
Non-deductible share option expense | 0.84% | 5% | 9.54% |
Other non-deductible expenses | 0.67% | 2.56% | 0.29% |
Zero tax rate in foreign countries | 0.07% | 0.05% | 0.44% |
Differential and preferential tax rates | (1.82%) | 3.05% | (0.49%) |
Changes in valuation allowance | (3.54%) | 5.14% | 2.49% |
Others | 1.71% | 0.29% | 0.16% |
Effective income tax rate | 21.57% | 30.46% | 29.41% |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Ordinary shares issued to the depositary | 187,933,720 | |
Ordinary shares to settle share-based compensation | 187,933,720 | |
Ordinary shares are legally issued and not outstanding | 187,933,720 |
Earnings Per Share (Details) -
Earnings Per Share (Details) - Schedule of computation of basic and diluted earnings per share - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of computation of basic and diluted earnings per share [Abstract] | |||
Net income | ¥ 135,351,411 | ¥ 65,207,464 | ¥ 114,852,526 |
Basic weighted average number of common shares outstanding | 1,371,643,240 | 1,371,643,240 | 1,371,643,240 |
Effect of dilutive share options | ¥ 155,453,871 | ¥ 154,246,831 | ¥ 153,589,125 |
Dilutive weighted average number of ordinary shares | 1,527,097,111 | 1,525,890,071 | 1,525,232,365 |
Basic earnings per share | ¥ 0.1 | ¥ 0.05 | ¥ 0.08 |
Diluted earnings per share | ¥ 0.09 | ¥ 0.05 | ¥ 0.08 |
Share-Based Compensation Expe_3
Share-Based Compensation Expenses (Details) | 12 Months Ended | |||||
Jan. 03, 2017 shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2019 shares | Dec. 31, 2018 | |
Share-Based Compensation Expenses (Details) [Line Items] | ||||||
Ordinary shares issued (in Shares) | 187,933,720 | |||||
Ordinary shares exercised (in Shares) | 187,933,720 | |||||
Contractual life term | The contractual life of the options is 6 years, 7 years and 8 years, respectively. Therefore, the risk-free rate for the expected term of the options is determined based on the yield to maturity of China 5-year, 7-year and 10-year government bond, using interpolation method, at the date of grant. | |||||
Recognized compensation expenses | $ 5,774,266 | ¥ 18,766,367 | ¥ 62,073,367 | |||
2017 Share Incentive Plan [Member] | ||||||
Share-Based Compensation Expenses (Details) [Line Items] | ||||||
Number of shares granting options to purchase (in Shares) | 187,933,720 | |||||
Share Incentive Plan 2018 [Member] | ||||||
Share-Based Compensation Expenses (Details) [Line Items] | ||||||
Number of shares granting options to purchase (in Shares) | 119,674,780 | |||||
December 31, 2017 [Member] | 2017 Share Incentive Plan [Member] | ||||||
Share-Based Compensation Expenses (Details) [Line Items] | ||||||
Percentage of award vesting rights | 60% | |||||
December 31, 2018 [Member] | 2017 Share Incentive Plan [Member] | ||||||
Share-Based Compensation Expenses (Details) [Line Items] | ||||||
Percentage of award vesting rights | 20% | |||||
December 31, 2019 [Member] | 2017 Share Incentive Plan [Member] | ||||||
Share-Based Compensation Expenses (Details) [Line Items] | ||||||
Percentage of award vesting rights | 20% | |||||
December 31, 2020 [Member] | 2019 Option [Member] | ||||||
Share-Based Compensation Expenses (Details) [Line Items] | ||||||
Percentage of award vesting rights | 50% | |||||
December 31, 2021 [Member] | 2019 Option [Member] | ||||||
Share-Based Compensation Expenses (Details) [Line Items] | ||||||
Percentage of award vesting rights | 30% | |||||
December 31, 2022 [Member] | 2019 Option [Member] | ||||||
Share-Based Compensation Expenses (Details) [Line Items] | ||||||
Percentage of award vesting rights | 20% | |||||
December 31, 2022 [Member] | 2018 Option [Member] | ||||||
Share-Based Compensation Expenses (Details) [Line Items] | ||||||
Risk-free rate expected term | 6 years |
Share-Based Compensation Expe_4
Share-Based Compensation Expenses (Details) - Schedule of estimated fair value of binomial option pricing model | 12 Months Ended | |
Jan. 03, 2017 | Dec. 31, 2019 | |
(2018 Option) [Member] | ||
Schedule of Estimated Fair Value of Binomial Option Pricing Model [Abstract] | ||
Expected volatility | 40% | |
Expected dividends | ||
Risk-free interest rate | 3.10% | |
Expected term (in years) | 5 years | |
Expected life (in years) | 6 years | |
(2019 Option) [Member] | ||
Schedule of Estimated Fair Value of Binomial Option Pricing Model [Abstract] | ||
Expected volatility | 41.52% | |
Expected dividends | ||
Risk-free interest rate | 3.12% | |
Expected term (in years) | 5 years | |
Expected life (in years) | 8 years |
Share-Based Compensation Expe_5
Share-Based Compensation Expenses (Details) - Schedule of summary of share option activity - ¥ / shares | 12 Months Ended | ||||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of summary of share option activity [Abstract] | |||||||
Number of shares granted surrendered (in Shares) | |||||||
Weighted average exercise price surrendered | |||||||
Weighted average grant date fair value surrendered | |||||||
Share Incentive Plan 2018 [Member] | |||||||
Schedule of summary of share option activity [Abstract] | |||||||
Number of shares balance (in Shares) | 187,933,720 | 187,933,720 | 187,933,720 | ||||
Weighted average exercise price balance | |||||||
Weighted average grant date fair value balance | ¥ 1.27 | ¥ 1.27 | ¥ 1.27 | ||||
Number of shares granted exercisable (in Shares) | 187,933,720 | 150,346,976 | 112,760,232 | ||||
Weighted average exercise price exercisable | |||||||
Weighted average grant date fair value exercisable | ¥ 1.27 | ¥ 1.27 | ¥ 1.27 | ||||
Number of shares granted expected to vest (in Shares) | 37,586,744 | 75,173,488 | |||||
Weighted average exercise price expected to vest | |||||||
Weighted average grant date fair value expected to vest | ¥ 1.27 | ¥ 1.27 | |||||
Number of shares granted (in Shares) | 187,933,720 | ||||||
Weighted average exercise price granted | |||||||
Weighted average grant date fair value granted | ¥ 1.27 | ||||||
Number of shares granted exercised (in Shares) | |||||||
Weighted average exercise price exercised | |||||||
Weighted average grant date fair value exercised | |||||||
Number of shares granted surrendered (in Shares) | |||||||
Weighted average exercise price surrendered | |||||||
Weighted average grant date fair value surrendered | |||||||
Share Incentive Plan 2019 [Member] | |||||||
Schedule of summary of share option activity [Abstract] | |||||||
Number of shares balance (in Shares) | 119,674,780 | 119,674,780 | 119,674,780 | 119,674,780 | |||
Weighted average exercise price balance | |||||||
Weighted average grant date fair value balance | ¥ 0.72 | ¥ 0.72 | ¥ 0.72 | ¥ 0.72 | |||
Number of shares granted exercisable (in Shares) | 119,674,780 | 95,739,824 | 59,837,390 | ||||
Weighted average exercise price exercisable | |||||||
Weighted average grant date fair value exercisable | ¥ 0.72 | ¥ 0.72 | ¥ 0.72 | ||||
Number of shares granted expected to vest (in Shares) | 23,934,956 | 59,837,390 | 119,674,780 | ||||
Weighted average exercise price expected to vest | |||||||
Weighted average grant date fair value expected to vest | ¥ 0.72 | ¥ 0.72 | ¥ 0.72 | ||||
Number of shares granted (in Shares) | 119,674,780 | ||||||
Weighted average exercise price granted | |||||||
Weighted average grant date fair value granted | ¥ 0.72 | ||||||
Number of shares granted exercised (in Shares) | |||||||
Weighted average exercise price exercised | |||||||
Weighted average grant date fair value exercised | |||||||
Number of shares granted surrendered (in Shares) | |||||||
Weighted average exercise price surrendered | |||||||
Weighted average grant date fair value surrendered |
Share-Based Compensation Expe_6
Share-Based Compensation Expenses (Details) - Schedule of fair value of options and ordinary shares estimated at the dates of option grants | 12 Months Ended |
Dec. 31, 2022 ¥ / shares shares | |
Options grant on January 3, 2017 [Member] | |
Share-Based Compensation Expenses (Details) - Schedule of fair value of options and ordinary shares estimated at the dates of option grants [Line Items] | |
Options granted (in Shares) | shares | 75,173,492 |
Exercise price | ¥ 0.5 |
Fair value of option | 1.26 |
Fair value of ordinary shares | ¥ 1.72 |
Second options grant on January 3, 2017 [Member] | |
Share-Based Compensation Expenses (Details) - Schedule of fair value of options and ordinary shares estimated at the dates of option grants [Line Items] | |
Options granted (in Shares) | shares | 112,760,238 |
Exercise price | ¥ 0.5 |
Fair value of option | 1.27 |
Fair value of ordinary shares | ¥ 1.72 |
Options grant on December 31, 2019 [Member] | |
Share-Based Compensation Expenses (Details) - Schedule of fair value of options and ordinary shares estimated at the dates of option grants [Line Items] | |
Options granted (in Shares) | shares | 83,772,346 |
Exercise price | ¥ 1 |
Fair value of option | 0.71 |
Fair value of ordinary shares | ¥ 1.4 |
Second options grant on December 31, 2019 [Member] | |
Share-Based Compensation Expenses (Details) - Schedule of fair value of options and ordinary shares estimated at the dates of option grants [Line Items] | |
Options granted (in Shares) | shares | 35,902,434 |
Exercise price | ¥ 1 |
Fair value of option | 0.75 |
Fair value of ordinary shares | ¥ 1.4 |
Operating Leases (Details)
Operating Leases (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Operating Leases [Abstract] | |
Non-cancelable operating leases, description | The Group leases multiple office spaces which are contracted under various non-cancelable operating leases, most of which provide extension or early termination options and are generally expired in 1 to 4 years. The Group does not enter into any finance leases or leases where the Group is a lessor. Moreover, the existing operating lease agreements do not contain any residual value guarantees or material restrictive covenants. Management determines if an arrangement is a lease at inception and record the leases in the financial statements upon lease commencement, which is the date when the underlying office space is made available for use by the lessor. The incremental borrowing rates determined for computing the lease liabilities are based on the People’s Bank of China (PBOC) Benchmark Rates for terms of loans ranging from zero (exclusive) to 5 years and above. |
Operating Leases (Details) - Sc
Operating Leases (Details) - Schedule of operating lease cost and other supplemental information - CNY (¥) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Schedule of operating lease cost and other supplemental information [Abstract] | ||||
Operating lease cost | [1] | ¥ 13,966,943 | ¥ 14,764,364 | ¥ 21,719,042 |
Weighted-average remaining lease term | 3 years 7 months 2 days | 1 year | ||
Weighted-average discount rate | 4.75% | 4.73% | ||
Cash paid for amounts included in the measurement of lease liabilities under operating cash flows | ¥ 15,101,145 | ¥ 15,478,630 | ||
ROU assets obtained in exchange for new operating lease liabilities | ¥ 29,777,357 | ¥ 16,196,806 | ||
[1]Amounts include short-term leases that are immaterial. |
Operating Leases (Details) - _2
Operating Leases (Details) - Schedule of reconciliation to the lease liabilities | Dec. 31, 2022 CNY (¥) |
Schedule of reconciliation to the lease liabilities [Abstract] | |
2022 | ¥ 12,085,870 |
2023 | 6,285,367 |
2024 | 4,745,037 |
2025 | 4,636,293 |
2026 | 3,427,888 |
Thereafter | |
Total future operating lease payments | 31,180,455 |
Less: imputed interest | (2,596,980) |
Total present value of operating lease liabilities | ¥ 28,583,475 |
Condensed Financial Informati_3
Condensed Financial Information of the Parent Company (Details) | 12 Months Ended | |
Jan. 08, 2014 | Dec. 31, 2022 | |
Condensed Financial Information of the Parent Company (Details) [Line Items] | ||
Percentage of net income | 10% | |
Registered capital, percentage | 50% | |
Consolidated net assets, percentage | 25% | |
Cayman Islands [Member] | ||
Condensed Financial Information of the Parent Company (Details) [Line Items] | ||
Ordinary share, description | the Group was incorporated in the Cayman Islands with one subscriber’s share allotted and issued at par value of HKD0.0001, representing 100% of the entire ordinary share of the Group. | |
VIE [Member] | ||
Condensed Financial Information of the Parent Company (Details) [Line Items] | ||
Consolidated net assets, percentage | 25% |
Condensed Financial Informati_4
Condensed Financial Information of the Parent Company (Details) - Schedule of condensed balance sheets - Parent Company [Member] - CNY (¥) | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and cash equivalents | ¥ 5,080,204 | |
investment securities | 11,320,828 | |
Investments in subsidiaries | 392,559,403 | 392,559,403 |
Other assets | 212,636,091 | 291,457,560 |
Total assets | 621,596,526 | 684,016,963 |
Liabilities and shareholders’ equity | ||
Accrued employee benefits | 620,748 | |
Other operating liabilities | 10,827,876 | 9,697,485 |
Total liabilities | 11,448,624 | 9,697,485 |
Ordinary shares (USD0.0001 par value; 3,800,000,000 shares authorized; 1,559,576,960 shares issued and 1,371,643,240 shares outstanding as of December 31, 2021 and December 31, 2022, respectively) | 916,743 | 916,743 |
Treasury stock | (87,631,475) | |
Additional paid-in capital | 705,422,445 | 705,422,445 |
Retained earnings | (7,944,752) | (7,467,430) |
Accumulated other comprehensive losses | (615,059) | (24,552,280) |
Total shareholders’ equity | 610,147,902 | 674,319,478 |
Total liabilities and shareholders’ equity | ¥ 621,596,526 | ¥ 684,016,963 |
Condensed Financial Informati_5
Condensed Financial Information of the Parent Company (Details) - Schedule of condensed balance sheets (Parentheticals) - Parent Company [Member] - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Ordinary shares, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Ordinary shares, shares authorized | 3,800,000,000 | 3,800,000,000 |
Ordinary shares, shares issued | 1,559,576,960 | 1,559,576,960 |
Ordinary shares, shares outstanding | 1,371,643,240 | 1,371,643,240 |
Condensed Financial Informati_6
Condensed Financial Information of the Parent Company (Details) - Schedule of condensed statements of comprehensive income - Parent Company [Member] - CNY (¥) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Interest and fees income | ||
Interest income on debt securities | ¥ 621,472 | |
Interest on deposits with banks | 20,593 | 171 |
Total interest and fees income | 642,065 | 171 |
Realized gains on sales of investments, net | 2,889,427 | |
Other gains, net | (22) | 481,007 |
Total non-interest income | 2,889,405 | 481,007 |
Operating expenses | ||
Employee compensation and benefits | (620,748) | (580,464) |
Other expenses | (3,388,044) | (90,221) |
Total operating expenses | (4,008,792) | (670,685) |
Income before income tax expense | (477,322) | (189,507) |
Net losses | (477,322) | (189,507) |
Other comprehensive (losses)/income | ||
Foreign currency translation adjustment | 23,937,221 | (6,970,285) |
Comprehensive (losses)/income | ¥ 23,459,899 | ¥ (7,159,792) |
Condensed Financial Informati_7
Condensed Financial Information of the Parent Company (Details) - Schedule of condensed statements of cash flows - Parent [Member] - CNY (¥) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | ||
Net losses | ¥ (477,322) | ¥ (189,507) |
Other operating assets | 67,500,641 | 483,825 |
Other operating liabilities | 1,751,140 | (3,609,478) |
Net cash (used in)/provided by operating activities | 68,774,459 | (3,315,160) |
Cash flows from financing activities: | ||
Repurchase of ordinary shares | (87,631,475) | |
Net cash used in financing activities | (87,631,475) | |
Net decrease in cash and cash equivalents | (18,857,016) | (3,315,160) |
Cash and cash equivalents at the beginning of year | 3,315,160 | |
Effect of exchange rate change on cash and cash equivalents | 23,937,220 | |
Cash and cash equivalents at the end of year | ¥ 5,080,204 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - CNY (¥) | Dec. 30, 2023 | Dec. 31, 2022 |
Commitments and Contingencies (Details) [Line Items] | ||
Remaining amount | ¥ 88,574,103 | |
Forecast [Member] | ||
Commitments and Contingencies (Details) [Line Items] | ||
Paid amount | ¥ 88,450,000 |