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Document and Entity Information	12 Months Ended
Document and Entity Information	Dec. 31, 2018 shares
Entity Registrant Name	360 Finance, Inc.
Entity Central Index Key	0001741530
Document Type	20-F
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY
Ordinary shares
Entity Common Stock, Shares Outstanding	287,652,707
Class A ordinary shares
Entity Common Stock, Shares Outstanding	247,832,121
Class B ordinary shares
Entity Common Stock, Shares Outstanding	39,820,586

COMBINED AND CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 CNY (¥)
Current assets:
Cash and cash equivalents	$ 210,283	¥ 1,445,802	¥ 468,547
Restricted cash (including RMB 96,134 and RMB 6,142 from the consolidated trusts as of December 31, 2017 and 2018 respectively)	82,582	567,794	487,882
Security deposit prepaid to third-party guarantee companies	115,730	795,700
Funds receivable from third party payment service providers	20,744	142,622	132,479
Accounts receivable and contract assets, net (net of allowance of RMB 21,270 and RMB 82,515 as of December 31, 2017 and 2018, respectively)	260,599	1,791,745	327,103
Financial assets receivable, net (net of allowance of RMB 16,258 and RMB 56,656 as of December 31, 2017 and 2018, respectively)	173,605	1,193,621	270,122
Amounts due from related parties (net of allowance of RMB nil and RMB 18,055 as of December 31, 2017 and 2018, respectively)	70,436	484,286	105,219
Loans receivable (including RMB 910,674 and RMB 493,883 from the consolidated trusts as of December 31, 2017 and 2018 respectively)	118,018	811,433	1,192,307
Prepaid expenses and other assets	15,855	109,016	33,907
Total current assets	1,067,852	7,342,019	3,017,566
Non-current assets:
Property and equipment, net	999	6,869	5,994
Intangible assets	123	847	262
Deferred tax assets			75,536
Total non-current assets	1,122	7,716	81,792
TOTAL ASSETS	1,068,974	7,349,735	3,099,358
Current liabilities:
Payable to investors of the consolidated trusts	43,683	300,341	536,906
Accrued expenses and other liabilities	75,479	518,955	96,737
Amounts due to related parties	11,456	78,767	1,283,970
Guarantee liabilities	203,501	1,399,174	300,942
Income tax payable	62,841	432,066	115,325
Other tax payable	23,922	164,478	31,329
Total current liabilities:	420,882	2,893,781	2,365,209
Total non-current liabilities:	2,292	15,758
TOTAL LIABILITIES	423,174	2,909,539	2,365,209
Commitments and Contingencies (Note 11)
SHAREHOLDERS' EQUITY
Ordinary shares ($0.00001 par value per share, 5,000,000,000 shares authorized, 287,652,707 shares issued and outstanding as of December 31, 2018)	3	20
Parent company's investment			590,000
Additional paid-in capital	707,840	4,866,756
Retained earnings/ accumulated (deficit)	(62,579)	(430,263)	144,149
Other comprehensive income	536	3,683
TOTAL EQUITY	645,800	4,440,196	734,149
TOTAL LIABILITIES AND EQUITY	$ 1,068,974	¥ 7,349,735	¥ 3,099,358

COMBINED AND CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 CNY (¥)	Dec. 31, 2018 CNY (¥) shares
Restricted Cash		¥ 487,882	¥ 567,794
Accounts receivable and contract assets allowance		21,270	82,515
Financial assets receivable allowance		16,258	56,656
Due from related parties allowance	¥ 18,055	0
Loans receivable, net		1,192,307	¥ 811,433
Ordinary shares, authorized (in shares) \| shares			5,000,000,000
Ordinary shares, issued (in shares) \| shares			287,652,707
Ordinary shares, outstanding (in shares) \| shares			287,652,707
Consolidated Trusts
Restricted Cash		96,134	¥ 6,142
Loans receivable, net		¥ 910,674	¥ 493,883

COMBINED AND CONSOLIDATED STATEMENTS OF OPERATIONS ¥ in Thousands, $ in Thousands	5 Months Ended	12 Months Ended
	Dec. 31, 2016 CNY (¥) ¥ / shares shares	Dec. 31, 2018 USD ($) $ / shares shares	Dec. 31, 2018 CNY (¥) ¥ / shares shares	Dec. 31, 2017 CNY (¥) ¥ / shares shares
Revenue, net of value-added tax and related surcharges:
Total net revenue	¥ 1,658	$ 646,791	¥ 4,447,018	¥ 788,144
Operating costs and expenses:
Origination and servicing (including costs charged by related parties of RMB nil, RMB 9,877 and RMB 59,027 for the period from July 25, 2016 to December 31, 2016, and the years ended December 31, 2017 and 2018, respectively)	13,178	106,029	728,999	136,106
Sales and marketing (including expenses charged by related parties of RMB 343, RMB 54,955 and RMB 66,345 for the period from July 25, 2016 to December 31, 2016, and the years ended December 31, 2017 and 2018, respectively)	1,605	192,270	1,321,950	345,576
General and administrative (including expenses charged by related parties of RMB 10,580, RMB 17,512 and RMB 32,509 for the period from July 25, 2016 to December 31, 2016, and the years ended December 31, 2017 and 2018, respectively)	15,410	82,814	569,387	46,004
Provision for loans receivable		6,468	44,474	12,406
Provision for financial assets receivable(including provision generated from related parties of RMB nil, RMB nil and RMB 5,912 for the period from July 25, 2016 to December 31, 2016, and the years ended December 31, 2017 and 2018, respectively)		7,852	53,989	16,273
Provision for accounts receivable and contract assets (including provision charged by related parties of RMB nil, RMB nil and RMB 12,138 for the period from July 25, 2016 to December 31, 2016, and the years ended December 31, 2017 and 2018, respectively)	108	12,175	83,707	21,180
Total operating costs and expenses	30,301	407,608	2,802,506	577,545
(Loss) Income from operations	(28,643)	239,183	1,644,512	210,599
Interest income	3	1,458	10,026	2,422
Foreign exchange losses		(373)	(2,563)
Other income, net		1,119	7,696	22
(Loss) Income before income tax benefit (expense)	(28,640)	241,387	1,659,671	213,043
Income tax benefit (expense)	7,924	(67,829)	(466,360)	(48,178)
Net (loss) income	(20,716)	173,558	1,193,311	164,865
Deemed dividend		(450,547)	(3,097,733)
Net (loss) income attributable to ordinary shareholders of the Company	¥ (20,716)	$ (276,989)	¥ (1,904,422)	¥ 164,865
Net (loss) income per ordinary share attributable to ordinary shareholders of 360 Finance, Inc.
Basic (in CNY per share) \| (per share)	¥ (0.10)	$ (1.37)	¥ (9.39)	¥ 0.83
Diluted (in CNY per share) \| (per share)	¥ (0.10)	$ (1.37)	¥ (9.39)	¥ 0.83
Weighted average shares used in calculating net (loss) income per ordinary share
Basic (in shares)	198,347,168	202,751,277	202,751,277	198,347,168
Diluted (in shares)	198,347,168	202,751,277	202,751,277	198,347,168
ADS
Net (loss) income per ordinary share attributable to ordinary shareholders of 360 Finance, Inc.
Basic (in CNY per share) \| (per share)	¥ (0.20)	$ (2.74)	¥ (18.78)	¥ 1.66
Diluted (in CNY per share) \| (per share)	¥ (0.20)	$ (2.74)	¥ (18.78)	¥ 1.66
Loan facilitation service
Revenue, net of value-added tax and related surcharges:
Total net revenue	¥ 1,618	$ 451,986	¥ 3,107,633	¥ 552,313
Post-origination services
Revenue, net of value-added tax and related surcharges:
Total net revenue	¥ 40	110,240	757,957	95,037
Financing income
Revenue, net of value-added tax and related surcharges:
Total net revenue		38,956	267,844	50,966
Other service fee revenues
Revenue, net of value-added tax and related surcharges:
Total net revenue		$ 45,609	¥ 313,584	¥ 89,828

COMBINED AND CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - CNY (¥) ¥ in Thousands	5 Months Ended	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2018	Dec. 31, 2017
Revenue from related parties		¥ 502,614	¥ 86,311
Origination and servicing costs charged by related parties	¥ 0	59,027	9,877
Sales and marketing expenses charged by related parties	343	66,345	54,955
General and administrative expenses charged by related parties	10,580	32,509	17,512
Provision for financial asset receivable from related parties	0	5,912	0
Provision for accounts receivable and contract assets from related parties	0	12,138	0
Loan facilitation service
Revenue from related parties	0	263,854	0
Post-origination services
Revenue from related parties	0	41,712	0
Other service fee revenues
Revenue from related parties	¥ 0	¥ 197,048	¥ 86,311

COMBINED AND CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME OR LOSS ¥ in Thousands, $ in Thousands	5 Months Ended	12 Months Ended
	Dec. 31, 2016 CNY (¥)	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 CNY (¥)
COMBINED AND CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME OR LOSS
Net (loss) income	¥ (20,716)	$ 173,558	¥ 1,193,311	¥ 164,865
Other comprehensive income, net of tax of nil:
Foreign currency translation adjustment		536	3,683
Other comprehensive income		536	3,683
Total comprehensive income	(20,716)	174,094	1,196,994	164,865
Deemed dividend		(450,547)	(3,097,733)
Comprehensive (loss) income attributable to ordinary shareholders	¥ (20,716)	$ (276,453)	¥ (1,900,739)	¥ 164,865

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

COMBINED AND CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME OR LOSS (Parenthetical) - CNY (¥) ¥ in Thousands		2 Months Ended	3 Months Ended	12 Months Ended
	Jul. 31, 2016	Sep. 30, 2016	Dec. 31, 2016	Dec. 31, 2018	Dec. 31, 2017
COMBINED AND CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME OR LOSS
Other comprehensive income, tax	¥ 0	¥ 0	¥ 0	¥ 0	¥ 0

COMBINED AND CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
¥ in Thousands, $ in Thousands

Ordinary shares

IPO

CNY (¥)

Ordinary shares

CNY (¥)

Parent Company's investment

CNY (¥)

Additional paid-in capital

IPO

CNY (¥)

Additional paid-in capital

CNY (¥)

Accumulated (deficit)/Retained earnings

CNY (¥)

Other Comprehensive income

CNY (¥)

IPO

CNY (¥)

USD ($)

CNY (¥)

Balance at Jul. 24, 2016

^[1]

Balance (in shares) at Jul. 24, 2016 | shares

Net (loss) income

(20,716)

Balance at Dec. 31, 2016

(20,716)

Parent company's capital contribution

590,000

Net (loss) income

164,865

Balance at Dec. 31, 2017

590,000

144,149

734,149

Parent company's capital contribution

210,000

Share-based compensation

607,381

Reorganization effect

¥ (800,000)

800,000

Issuance of ordinary shares

¥ 0

^[1]

¥ 14

^[1]

¥ 297,860

(14)

¥ 297,860

Issuance of ordinary shares (in shares) | shares

6,200,000

198,347,168

Deemed dividend

(1,330,024)

(1,767,709)

$ (450,547)

(3,097,733)

Conversion of convertible redeemable preferred shares to ordinary shares upon IPO

¥ 6

^[1]

¥ 4,491,539

¥ 4,491,545

4,491,545

Conversion of convertible redeemable preferred shares to ordinary shares upon IPO (in shares) | shares

83,105,539

Other comprehensive income

3,683

536

3,683

Net (loss) income

1,193,311

173,558

1,193,311

Balance at Dec. 31, 2018

¥ 20

^[1]

¥ 4,866,756

¥ (430,263)

¥ 3,683

$ 645,800

¥ 4,440,196

Balance (in shares) at Dec. 31, 2018 | shares

287,652,707

[1]	The amount less than RMB 1 is rounded to zero.

COMBINED AND CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands	5 Months Ended	12 Months Ended
	Dec. 31, 2016 CNY (¥)	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 CNY (¥)
Cash Flows from Operating Activities:
Net (loss) income	¥ (20,716)	$ 173,558	¥ 1,193,311	¥ 164,865
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization	201	547	3,760	1,306
Share-based Compensation		88,340	607,381
Provision for loan principal, financial assets receivables and other receivables	108	26,495	182,170	49,859
Changes in operating assets and liabilities
Funds receivable from third party payment service providers	(7,722)	(1,473)	(10,143)	(124,757)
Accounts receivable and contract assets	(1,624)	(223,433)	(1,536,211)	(363,040)
Financial assets receivable	(5,160)	(141,310)	(971,571)	(264,962)
Prepaid expenses and other assets	(4,693)	(8,990)	(61,811)	(27,477)
Security deposit prepaid to third-party guarantee companies		(115,730)	(795,700)
Deferred tax assets	(7,924)	10,986	75,536	(67,612)
Amounts due (from) to related parties	(38,469)	(55,728)	(383,164)	(5,976)
Guarantee liabilities	5,768	159,731	1,098,232	295,174
Income tax payable		46,068	316,741	115,325
Other tax payable	100	19,366	133,149	31,229
Accrued expenses and other current liabilities	11,645	60,749	417,678	85,092
Deferred tax liabilities		2,292	15,758
Net cash (used in) provided by operating activities	(68,486)	41,468	285,116	(110,974)
Cash Flows from Investing Activities:
Purchase of property and equipment and intangible assets	(2,391)	(1,244)	(8,551)	(7,109)
Investment in loans receivable		(718,979)	(4,943,341)	(2,769,592)
Collection of investment in loans receivable		767,877	5,279,541	1,572,432
Net cash (used in) provided by investing activities	(2,391)	47,654	327,649	(1,204,269)
Cash Flows from Financing Activities:
Proceeds from issuance of ordinary share upon IPO		47,595	327,236
Payment of IPO costs		(3,651)	(25,103)
Capital contributions from shareholder		30,543	210,000	590,000
Proceeds from series B convertible redeemable preferred shares		202,722	1,393,812
Loans from shareholder	77,050	72,722	500,000	810,500
Loans payment to shareholder		(180,358)	(1,240,050)	(147,500)
Cash received from investors of the consolidated trusts		87,266	600,000	1,012,499
Cash paid to investors of the consolidated trusts (RMB 780,000 was paid to related parties for the year ended December 31, 2018)		(190,308)	(1,308,465)
Net cash provided by financing activities	77,050	66,531	457,430	2,265,499
Effect of foreign exchange rate changes		(1,895)	(13,028)
Net increase in cash and cash equivalents	6,173	153,758	1,057,167	950,256
Cash, cash equivalents, and restricted cash, beginning of year		139,107	956,429	6,173
Cash, cash equivalents, and restricted cash, end of year	6,173	292,865	2,013,596	956,429
Supplemental disclosures of cash flow information:
Income taxes paid		(7,473)	(58,325)	(464)
Issuance of series A and series A+ convertible redeemable preferred shares as deemed dividend		450,547	3,097,733
Reconciliation to amounts on the combined and consolidated balance sheets:
Total cash, cash equivalents, and restricted cash	¥ 6,173	$ 139,107	¥ 956,429	¥ 6,173

COMBINED AND CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) ¥ in Thousands	12 Months Ended
	Dec. 31, 2018 CNY (¥)
COMBINED AND CONSOLIDATED STATEMENTS OF CASH FLOWS
Cash paid to related parties	¥ 780,000

ORGANIZATION AND PRINCIPAL ACTIVITIES

12 Months Ended

Dec. 31, 2018

ORGANIZATION AND PRINCIPAL ACTIVITIES

ORGANIZATION AND PRINCIPAL ACTIVITIES

1. ORGANIZATION AND PRINCIPAL ACTIVITIES

360 Finance, Inc. (the “Company”) was incorporated in Cayman Islands with limited liability on April 27, 2018. The Company, its subsidiaries, its consolidated variable interest entities (“VIEs”) (collectively the “Group”) are engaged in providing online consumer finance products to the borrowers funded primarily by institutional funding partners through a digital consumer finance platform.

The Company’s significant subsidiaries and its consolidated VIEs are as follows:


	Date of	Place of
	Incorporation	Incorporation
Subsidiaries
HK Qirui International Technology Company Limited (“HK Qirui”)	June 14, 2018	Hong Kong
Shanghai Qiyue Information & Technology Co., Ltd.(“Qiyue”)	August 7, 2018	PRC
VIEs
Shanghai Qiyu Information & Technology Co., Ltd. (“Qiyu”)	July 25, 2016	PRC
Fuzhou 360 Online Microcredit Co., Ltd.(“Fuzhou Microcredit”)	March 30, 2017	PRC
Fuzhou 360 Financing Guarantee Co., Ltd. (“Fuzhou Guarantee”)	June 29, 2018	PRC

History of the Group and reorganization under identical common ownership

The Group started its business in 2016 through Shanghai Qiyu Information & Technology Co., Ltd. (“Qiyu”), a limited liability company in the People’s Republic of China (“PRC”). In March 2017, Fuzhou 360 Online Microcredit Co., Ltd. (“Fuzhou Microcredit”) was founded mainly to obtain the online microcredit lending license to conduct online microcredit lending business. Qiyu and Fuzhou Microcredit are wholly owned by Beijing Qibutianxia Technology Co., Ltd. (“Qibutianxia”) which is ultimately controlled by Mr. Hongyi Zhou. On April 27, 2018, the Company was incorporated by the same shareholders of Qibutianxia in Cayman Island in connection with a group reorganization (“Reorganization”). In September 2018, the Company undertook a series of transactions to redomicile its business from the PRC to the Cayman Islands as part of the Reorganization, in preparation of its overseas initial public offering. The transactions include 1) establishing intermediary companies of HK Qirui and Qiyue ("WFOE") for the purpose of establishing a VIE structure of the Group, and 2) issuing ordinary shares and convertible redeemable preferred shares to the shareholders of Qibutianxia in the same proportions as the percentage of equity interest they held in Qibutianxia by the time of Reorganization, and 3) entering into VIE agreements which effectively provided control to the WFOE over the operations of the VIEs.

As the shareholding percentages and rights of each shareholder were the same in Qibutianxia and the Company, the Reorganization was accounted for as a reorganization of entities under common ownership. As a result, the combined and consolidated financial statements are prepared using historical cost basis as if the corporate structure of the Company had been in existence since the beginning of the periods presented. And the financial information for the period/year prior to the formation of the Company in April 2018 represents the carved out financial statements from Qibutianxia.

The accompanying combined and consolidated financial statements include allocations for various general administrative expenses of Qibutianxia which related to the Group’s business. These expenses consist primarily of payroll of senior management and shared rental expenses. These allocations were made using a proportionate cost allocation method. The payroll expenses were allocated based on the actual time spent on the provision of services attributable to the Group, and the shared rental expenses were allocated based on the actual usage of the building among each business of Qibutianxia. The management believes these allocations are reasonable. Total expenses allocated from Qibutianxia to the Group are RMB10,580, RMB 17,512 and RMB 32,015 for the period from the inception date of July 25, 2016 to December 31, 2016, and the years ended 2017 and 2018, respectively.

The VIE arrangement

PRC laws and regulations prohibit or restrict foreign control of companies involved in provision of internet content and certain finance business. To comply with these foreign ownership restrictions, the Company operates substantially all of its service through its VIEs in the PRC.

The VIEs hold leases and other assets necessary to provide services and generate all of the Company’s revenues. To provide the Company effective control over the VIEs and the ability to receive substantially all of the economic benefits of the VIEs, a series of contractual arrangements were entered into amongst WFOE, VIEs and their beneficial shareholders.

Agreements that were entered to provide the Company effective control over the VIEs

Powers of Attorney

Pursuant to these powers of attorney, Qibutianxia, the shareholder of Qiyu, authorized the WFOE or any person it designates to act as its attorney‑in‑fact to exercise all of its rights as a shareholder of Qiyu, including, but not limited to, the right to convene and attend shareholders’ meetings, vote on any resolution that requires a shareholder vote, such as the appointment and removal of directors, supervisors and officers, as well as the sale, transfer and disposal of all or part of the equity interests owned by Qibutianxia in Qiyu. The power of attorney will remain effective for the duration of the existence of Qibutianxia.

Exclusive Option Agreement

Pursuant to the exclusive option agreement entered into among WFOE, Qiyu and Qibutianxia. Qibutianxia irrevocably grants the WFOE an exclusive option to purchase or designate one or more persons to purchase, all or part of its equity interests in Qiyu, and Qiyu irrevocably grants the WFOE an exclusive option to purchase all or part of its assets, subject to applicable PRC laws. The WFOE or its designated person may exercise such options at the lowest price permitted under applicable PRC laws. Qibutianxia and Qiyu will undertake that, without the WFOE’s prior written consent, they will not, among other things, (i) create any pledge or encumbrance on any of Qiyu’s assets (ii) transfer or otherwise dispose of Qiyu’s assets, (iii) change Qiyu’s registered capital, (iv) amend Qiyu’s articles of association, (v) dispose of Qiyu’s assets or beneficial interest or (vi) merge Qiyu with any other entity. Unless WFOE terminates this agreement in advance, this agreement will remain effective for 10 years and will be automatically renewed for in a 10‑year cycle unless such renewal was objected by the WFOE in writing. Other parties to this agreement may not terminate this agreement unilaterally.

Agreements that were entered to transfer economic benefits to the Company

Exclusive Consultation and Services Agreement

Pursuant to the exclusive consultation and services agreement between the WFOE and Qiyu, the WFOE has the exclusive right to provide Qiyu with the consulting and technical services required by Qiyu’s business. Qiyu shall pay the WFOE service fee at the amount which is adjusted at the WFOE’s sole discretion. To guarantee Qiyu’s performance of its obligations thereunder, Qibutianxia would pledge its equity interests in Qiyu to the WFOE pursuant to the equity interest pledge agreement. Unless the WFOE terminates this agreement in advance, this agreement will remain effective for 10 years and will be automatically renewed for in a 10‑year cycle unless such renewal was objected by the WFOE in writing.

Loan Agreement

Pursuant to the loan agreement among the WFOE, Qiyu and Qibutianxia, the WFOE is entitled to provide interest‑free loans from time to time to Qibutianxia for the purpose of Qiyu’s business operation and development. Each of the loans made under this loan agreement has no fixed term, and unless otherwise agreed, the WFOE shall unilaterally decide when to withdraw the loans, provided that a one month notice is given. The loan agreement shall remain in effect during Qiyu’s term (and any renewable term provided by the PRC law), and shall automatically terminate after the WFOE and/or other entities designated by the WFOE fully exercise all their rights under the exclusive option agreement.

Equity Pledge Agreement

Pursuant to the equity pledge agreement, Qibutianxia shall pledge 100% equity interests in Qiyu to the WFOE to guarantee the performance by Qibutianxia of its obligations under the exclusive option agreement and the powers of attorney, as well as the performance by Qiyu of its obligations under the exclusive option agreement, the powers of attorney and the exclusive consultation and service agreement (collectively, “Master Agreements”). In the event of a breach by Qiyu or Qibutianxia of contractual obligations under the Master Agreements, the WFOE, as pledgee, will have the right to dispose of the pledged equity interests in Qiyu. Qibutianxia will also undertake that, without the prior written consent of the WFOE, it will not dispose of, create or allow any encumbrance on the pledged equity interests.

The Company also has another two sets of VIE contractual arrangements. One is among the WFOE, Fuzhou Microcredit, and Qibutianxia. And another is among the WFOE, Fuzhou Guarantee and a fully owned subsidiary of Qibutianxia. Both sets of the contractual agreements are substantially similar to the set with Qiyu as described above.

Risks in relation to VIE structure

The Company believes that the contractual arrangements with Qiyu, Fuzhou Microcredit, Fuzhou Guarantee and their shareholders, Qibutianxia, are in compliance with existing PRC laws and regulations and are valid, binding and enforceable and will not result in any violation of PRC laws or regulations and the PRC regulatory authorities may take a contrary view. If the legal structure and contractual arrangements were found to be in violation of any existing PRC laws and regulations, the regulatory authorities may exercise their discretion and:

revoke the business and operating licenses of the Company’s PRC subsidiaries or consolidated affiliated entities;

restrict the rights to collect revenues from any of the Company’s PRC subsidiaries;

discontinue or restrict the operations of any related‑party transactions among the Company’s PRC subsidiaries or consolidated affiliated entities;

require the Company’s PRC subsidiaries or consolidated affiliated entities to restructure the relevant ownership structure or operations;

take other regulatory or enforcement action is, including levying fines that could be harmful to the Company’s business; or

impose additional conditions or requirements with which the Company may not be able to comply.

The imposition of any of these penalties may result in a material adverse effect on the Company’s ability to conduct its business. In addition, if the imposition of any of these penalties causes the Company to lose the rights to direct the activities of the VIEs or the right to receive their economic benefits, the Company would no longer be able to consolidate the financial results of the VIEs.

These contractual arrangements allow the Company to effectively control Qiyu, Fuzhou Microcredit and Fuzhou Guarantee, and to derive substantially all of the economic benefits from them. Accordingly, the Company treats Qiyu, Fuzhou Microcredit and Fuzhou Guarantee as VIEs. Because the Company is the primary beneficiary, the Company has consolidated the financial results of the VIEs.

The following financial statement amounts and balances of the VIEs were included in the accompanying combined and combined and consolidated financial statements after elimination of intercompany transactions and balances. The table below does not include the financial information of the consolidated trusts (see note “Consolidated Trusts”):


	December 31,	December 31,
	2017	2018
	RMB	RMB
ASSETS
Cash and cash equivalents	468,547	1,108,779
Restricted cash	391,748	561,652
Funds receivable from third party payment service providers	132,479	142,622
Accounts receivable and contract assets, net	327,103	1,791,745
Financial assets receivable, net	270,122	1,193,621
Security deposit prepaid to third-party guarantee companies	—	795,700
Amounts due from related parties	105,219	484,286
Loans receivable, net	281,633	317,551
Prepaid expenses and other assets	33,907	105,016
Property and equipment, net	5,994	6,869
Intangible assets	262	847
Deferred tax assets	75,536	—
Total Assets	2,092,550	6,508,688

LIABILITIES
Guarantee liabilities	300,942	1,399,174
Accrued expenses and other current liabilities	96,675	506,735
Income tax payable	115,325	431,998
Other tax payable	31,027	164,181
Amounts due to related parties	800,825	74,733
Deferred tax liabilities	—	15,758
Total liabilities	1,344,794	2,592,579


	Period from
	July 25 to	Year ended	Year ended
	December 31, 2016	December 31, 2017	December 31, 2018
	RMB	RMB	RMB
Net revenue	1,658	777,353	4,375,412
Net (loss) income	(20,716)	167,425	1,247,147


	Period from
	July 25 to	Year ended	Year ended
	December 31, 2016	December 31, 2017	December 31, 2018
	RMB	RMB	RMB
Net cash (used in) provided by operating activities	(68,486)	(110,884)	303,626
Net cash used in investing activities	(2,391)	(287,994)	(199,576)
Net cash provided by (used in) financing activities	77,050	1,253,000	(543,052)

The consolidated VIEs contributed 100%, 99% and 98% of the Group's consolidated revenue for the periods from July 25 to December 31, 2016, and the years ended December 31, 2017 and 2018, respectively. As of December 31, 2017 and 2018, the consolidated VIEs accounted for an aggregate of 68% and 89%, respectively, of the consolidated total assets, and 57% and 89%, respectively, of the consolidated total liabilities.

There are no consolidated assets of the VIEs that are collateral for the obligations of the VIEs and their subsidiaries and can only be used to settle the obligations of the VIEs and their subsidiaries. There are no terms in any arrangements, considering both explicit arrangements and implicit variable interests that require the Company or its subsidiaries to provide financial support to the VIEs. However, if the VIEs ever need financial support, the Company or its subsidiaries may, at its option and subject to statutory limits and restrictions, provide financial support to its VIEs through loans to the shareholder of the VIEs.

Relevant PRC laws and regulations restrict the VIEs from transferring a portion of their net assets, equivalent to the balance of its statutory reserve and its share capital, to the Company in the form of loans and advances or cash dividends. Please refer to Note 10 for disclosure of restricted net assets.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2018

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

The accompanying combined and consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”).

Basis of consolidation

The accompanying combined and consolidated financial statements include the financial statements of the Company, its wholly‑owned subsidiaries, and its consolidated VIEs. All inter‑company transactions and balances have been eliminated.

Consolidated Trusts

Loans funded by the institutional funding partners in the Group’s loan facilitation business are typically disbursed to the borrowers directly from such partners. However, due to the need of certain institutional funding partners, loans from such funding partners are funded and disbursed indirectly through trusts and asset management plans (collectively the "Trusts"). Since November 2017, several Trusts were formed by third-party trust companies and asset management companies, who administer the Trusts.

The Trusts fund loans facilitated by the Group using the funds received from its beneficiaries to the borrowers facilitated by the Group. The Trusts provide the returns to its beneficiaries through interest payments made by the borrowers.

In November 2017, the Trusts were set up with total assets of RMB 1,012,499 which invested solely in the loans facilitated on the Group’s platform to provide returns to the investors of the Trusts. The borrowers are charged with the interests and the service fees from the Trusts and the Group, respectively. The Group is either entitled to the residual profit in the Trusts or the Group has provided guarantee to the Trusts by agreeing to repurchase any loans that are delinquent for 60 to 90 days from which the Group absorbs the credit risk of the Trusts resulting from borrowers’ delinquencies. The Group determined that the residual profit or the guarantee represents a variable interest in the Trusts through which the Group has the right to receive benefits or the obligation to absorb losses from the Trusts that could potentially be significant to the Trusts. Since the Trusts only invest in the loans facilitated by the Group and the Group continues to service the loans through a service agreement post origination and has the ability to direct default mitigation activities, the Group has the power to direct the activities of the Trusts that most significantly impact the economic performance of the Trusts. As a result, the Group is considered the primary beneficiary of the Trusts and consolidated the Trusts’ assets, liabilities, results of operations and cash flows.

As of December 31, 2018, the loans held by the Trusts are all personal loans made to the individual borrowers with an original term up to 12 months. The interest rates of these loans ranged between 9% to 36%. The loans receivable balance associated with the Trusts represents the outstanding loans made to the borrowers from the Trusts. As of December 31, 2017 and 2018, the balance of delinquent loans repurchased by the Group from the consolidated trusts are nil and RMB 20,579, respectively. In 2018, the Group also repurchased the balance of RMB 114,238 performing loans upon liquidation of certain consolidated trusts per the contracts agreed with the counterparty.

For the period from the inception date of July 25, 2016 to December 31, 2016, and the years ended December 31, 2017 and 2018, the provision for loan losses of RMB nil, RMB 5,647 and RMB 33,141 were charged to the combined and consolidated statements of comprehensive income, respectively. There were RMB nil, RMB nil and RMB 19,777 of loans written off for the period from the inception date of July 25, 2016 to December 31, 2016, and the years ended December 31, 2017 and 2018, respectively.

Interest on loans receivable is accrued and credited to income as earned. The Group determines a loan’s past due status by the number of days that have elapsed since a borrower has failed to make a contractual loan payment. Accrual of interest is generally discontinued when the loans are 90 days past due.

The following financial statement amounts and balances of the consolidated trusts were included in the accompanying combined and condensed combined and consolidated financial statements after elimination of intercompany transactions and balances:


	December 31, 2017	December 31, 2018
	RMB	RMB
ASSETS
Restricted cash	96,134	6,142
Loans receivable, net	910,674	493,883
Prepaid expenses and other assets	—	4,000
Total Assets	1,006,808	504,025

	December 31, 2017	December 31, 2018
	RMB	RMB
LIABILITIES
Payable to investors of the consolidated trusts	536,906	300,341
Amounts due to related parties	483,145	4,034
Accrued expenses and other current liabilities	62	385
Other tax payable	306	268
Total liabilities	1,020,419	305,028


	Period from
	July 25 to	Year ended	Year ended
	December 31,	December 31,	December 31,
	2016	2017	2018
	RMB	RMB	RMB
Net revenue	—	10,791	70,621
Net loss	—	(2,560)	(32,708)


	Period from
	July 25 to	Year ended	Year ended
	December 31,	December 31,	December 31,
	2016	2017	2018
	RMB	RMB	RMB
Net cash used in operating activities	—	(90)	(8,749)
Net cash (used in) provided by investing activities	—	(916,275)	527,223
Net cash provided by (used in) financing activities	—	1,012,499	(708,466)

The consolidated trusts contributed 0%, 1% and 2% of the Group's consolidated revenue for the period from July 25 to December 31, 2016, and the years ended 2017 and 2018, respectively. As of December 31, 2017 and December 31, 2018, the consolidated trusts accounted for an aggregate of 32% and 7%, respectively, of the consolidated total assets, and 43% and 10% respectively, of the consolidated total liabilities.

There are no terms in any arrangements, considering both explicit arrangements and implicit variable interests that require the Company to provide financial support to the consolidated trusts.

The Group believes that the assets of the consolidated trusts could only be used to settle the obligations of the consolidated trusts.

Use of estimates

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from such estimates. Significant accounting estimates reflected in the Group’s financial statements include revenue recognition, financial assets receivable and guarantee liabilities, allowance for loans receivable, allowance for uncollectible accounts receivable and contract assets, and valuation allowance for deferred tax assets.

Revenue recognition

Loan Facilitation Services and Post Origination Services

Before adoption of ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)

Through its app and channel partners, the Group provides services through its facilitation of loan transactions between the borrowers and the institutional funding partners. The loans facilitated are with terms of 1~12 months and with principal of up to RMB200. The Group’s services mainly consist of:

1)Performing credit assessment on the borrowers on its mobile platform based on its credit analysis and matching the institutional funding partners to potential qualified borrowers and facilitating the execution of loan agreements between the parties, referred to as "loan facilitation services" and;

2)Providing repayment processing services for the institutional funding partners over the loan term, referred to as “Post Origination Services”

Based on the agreements entered into between the Group’s institutional funding partners and borrowers, the Group determined that it is not the legal lender or borrower in the loan origination and repayment process. Accordingly, the Group does not record loans receivable and payable arising from the loan between the funding partner and the borrowers.

The service fees are collected from the borrowers on a monthly basis through the loan period. Borrowers have the option of early repayment and upon termination they do not have the obligation to pay the remaining monthly service fees.

In most cases, for the loans facilitated, the Group also provides a guarantee service to its institutional funding partners whereas in the event of default, the institutional funding partners are entitled to receive unpaid interest and principal from the Group. Given that the Group effectively takes on all of the credit risk of the borrowers and are compensated by the service fees charged, the guarantee is deemed as a service and the guarantee exposure is recognized as a stand-ready obligation in accordance with ASC Topic 460, Guarantees (see accounting policy for Guarantee Liabilities).

Multiple element revenue recognition

The Group considers the loan facilitation services and post-origination services as a multiple deliverable revenue arrangement under ASC 605. Although the Group does not sell these services separately, the Group determined that all the deliverables have standalone value. Guarantee services are accounted for in accordance with ASC Topic 460, Guarantees. The service fees are allocated consistent with the guidance in ASC 605-25. When the monthly service fee is collected, the Group first allocates the fees collected to the guarantee liabilities in accordance with ASC Topic 460, Guarantees which requires the guarantee to be measured initially at fair value based on the stand-ready obligation (refer to accounting policies of "Guarantee liabilities" and "Financial assets receivable"). Then the remaining fees collected are allocated to the loan facilitation services and post-origination services using their relative estimated selling prices.

The Group does not have vendor specific objective evidence ("VSOE") of selling price for the loan facilitation services or post-origination services because it does not provide loan facilitation services or post-origination services separately. Although other vendors may sell these services separately, third party evidence ("TPE") of selling price of the loan facilitation services and post-origination services does not exist as public information is not available regarding what the Group's competitors may charge for those services. As a result, the Group generally uses its best estimate of selling prices ("BESP") of loan facilitation services and post-origination services as the basis of revenue allocation. In estimating its selling price for the loan facilitation services and post-origination services, the Group considers the cost incurred to deliver such services, profit margin for similar arrangements, market demand, effect of competitors on the Group's services, and other market factors.

Consistent with the criteria of ASC 605 "Revenue Recognition", the Group recognizes revenues when the following four revenue recognition criteria are met: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred or services have been rendered, (iii) the selling price is fixed or determinable, and (iv) collectability is reasonably assured.

Although loan facilitation service is provided at loan inception and post-origination service is provided during the term of the loan, the service fees are contingent upon actual repayment from the borrowers and thus, the revenue related to the service fees is also contingent and will not become determinable until the contingency (i.e., the borrower's repayments) is resolved. Accordingly revenue is recognized upon collection of service fees.

Revenues on loan facilitation services are recognized when the loan facilitation services have been completed (i.e., when the matching of institutional funding partners to borrowers is completed, as evidenced by the execution of loan agreement between them and the transfer of loan principal to the borrower) and the service fees allocated to the facilitation service have been received. The service fees collected from monthly installments allocated to post-origination services are recognized upon collection.

After adoption of ASU 2014-09, “Revenue from Contracts with Customers” (Topic 606)” with full retrospective method

The Group has adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606) and all subsequent ASUs that modified ASC 606 on January 1, 2018 using the full retrospective method which requires the Group to present its financial statements for all periods as if Topic 606 had been applied to all prior periods.

The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, the Group applies the following steps:

Step 1: Identify the contract (s) with a customer

Step 2: Identify the performance obligations in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations in the contract

Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation

The Group determines that both the institutional funding partners and the borrowers are its customers because they both receive services provided by the Group pursuant to the contractual terms among the Group, the borrowers and the institutional funding partners. For each loan facilitated on the platform, the Group considers the loan facilitation service, post origination service and guarantee service as three separate services. Of which, the guarantee service is accounted for in accordance with ASC Topic 460, Guarantees, at fair value. Revenue from the guarantee services is recognized once the Group is released from the underlying risk (see accounting policy for Guarantee Liabilities).While the post-origination service is within the scope of ASC Topic 860, the ASC Topic 606 revenue recognition model is applied due to the lack of definitive guidance in ASC Topic 860. The loan facilitation service and post-origination service are two separate performance obligations under ASC 606, as these two deliverables are distinct in that customers can benefit from each service on its own and the Group's promises to deliver the services are separately identifiable from each other in the contract.

The Group determines the total transaction price to be the service fees chargeable from the borrowers or the institutional funding partners. The Group’s transaction price includes variable consideration in the form of prepayment risk of the borrowers. The Group reflects, in the transaction price the borrower’s prepayment risk and estimates variable consideration for these contracts using the expected value approach on the basis of historical information and current trends of the collection percentage of the borrowers. The transaction price is allocated amongst the guarantee service, if any, and the other two performance obligations.

The Group first allocates the transaction price to the guarantee liabilities, if any, in accordance with ASC Topic 460, Guarantees which requires the guarantee to be measured initially at fair value based on the stand-ready obligation. Then the remaining considerations are allocated to the loan facilitation services and post origination services using their relative standalone selling prices consistent with the guidance in ASC 606. The Group does not have observable standalone selling price information for the loan facilitation services or post origination services because it does not provide loan facilitation services or post origination services on a standalone basis. There is no direct observable standalone selling price for similar services in the market reasonably available to the Group. As a result, the estimation of standalone selling price involves significant judgment. The Group uses expected cost plus margin approach to estimate the standalone selling prices of loan facilitation services and post-origination services as the basis of revenue allocation. In estimating its standalone selling price for the loan facilitation services and post origination services, the Group considers the cost incurred to deliver such services, profit margin for similar arrangements, customer demand, effect of competitors on the Group’s services, and other market factors.

For each type of service, the Group recognizes revenue when (or as) the entity satisfies the service/ performance obligation by transferring the promised service (that is, an asset) to customers. Revenues from loan facilitation services are recognized at the time a loan is originated between the institutional funding partners and the borrowers and the principal loan balance is transferred to the borrowers, at which time the facilitation service is considered completed. Revenues from post origination services are recognized on a straight-line basis over the term of the underlying loans as the post-origination services are a series of distinct services that are substantially the same and that have the same pattern of transfer to the institutional funding partners.

Revenue recognition for the following items remains the same before and after the adoption of Topic 606:

Incentives

The Group provides incentives to the borrowers by providing coupons which can only be used as a reduction of repayment and ultimately reduced the service fees received by the Group. Because the borrower does not enter into any enforceable commitment by picking up the coupons, no contract arises from the coupons. Therefore the Group records the incentives as a deduction to revenue upon redemption.

Financing income

The Group provides loans through the Consolidated Trusts and Fuzhou Microcredit. The interest rate charged to the borrowers are fixed. The Group recognized revenue under “financing income” the fees and interests charged to the borrowers over the lifetime of the loans using the effective interest method.

Other service fee revenues

Other service fee revenues mainly pertain to the referral service income. The Group provides the referral services to a lending navigation platform operated by a related party, by referring to them the borrowers who have not passed the Group’s credit assessment. Specifically, the Group receives a fixed rate of referral fee from the platform once the borrowers are accepted by the other funding providers on that platform. The revenue is recognized once the referral is completed as confirmed by that platform and recorded as ‘‘other service fee revenues’’. For the period from inception date of July 25, 2016 to December 31, 2016, the years ended December 31, 2017 and 2018, RMB nil , RMB 84,397 and RMB 211,087 other service fee revenues were generated from the referral service, respectively.

Other service fee revenues also include revenue from guarantee liabilities, which were released upon expiry of the underlying loans and late fees from borrowers.

The following table presents the disaggregation of revenue for the period from July 25, 2016 to December 31, 2016, the years ended December 31, 2017 and 2018:


	Period from
	July 25, 2016 to	Year ended	Year ended	Year ended
	December 31,	December 31,	December 31,	December 31,
	2016	2017	2018	2018
	RMB	RMB	RMB	USD
Revenue from loan facilitation services	1,618	552,313	3,107,633	451,986
Revenue from post-origination services	40	95,037	757,957	110,240
Financing income	—	50,966	267,844	38,956
Other service fee revenues	—	89,828	313,584	45,609
Total net revenue	1,658	788,144	4,447,018	646,791

Accounts receivable and Contract Assets, net

For the loans the Group is entitled to the full service fee regardless of whether the borrowers choose to early repay or not, the Group has the unconditional right to the consideration and an accounts receivable is recorded for the monthly service fees allocated to loan facilitation service that have already been delivered in relation to loans facilitated on the Group's platform when recognizing revenue from loan facilitation service. For the loans facilitated with borrowers who have the option of early repayment and upon termination they do not have the obligation to pay the remaining monthly service fees, the Group’s right to consideration for the service fees of facilitation service is conditional on whether or not the borrowers repay in advance. In these instances, the Group records a corresponding contract asset when recognizing revenue from loan facilitation service.

Accounts receivable and contract assets are stated at the historical carrying amount net of write-offs and allowance for collectability in accordance with ASC Topic 310. The Group established an allowance for uncollectible accounts receivable and contract assets based on estimates, which incorporate historical experience and other factors surrounding the credit risk of specific type of customers which is essentially the expected net accumulated loss rates used in determining the fair value of guarantee liabilities. The Group evaluates and adjusts its allowance for uncollectible accounts receivable and contract assets on a quarterly basis or more often as necessary.

Uncollectible accounts receivable and contract assets are written off when the consideration entitled to be received by the Group is due and a settlement is reached for an amount that is less than the outstanding historical balance or when the Group has determined the balance will not be collected. Contract assets and accounts receivable are identified as uncollectible when the underlying loan is determined to be not probable that the balance can be collected. The Group will write off contract assets and accounts receivable and the corresponding provisions if the underlying loan is deemed uncollectible.

The Group's accounts receivable as of December 31, 2017 and 2018 are as follows:


		Allowance for
	Accounts	uncollectible	Accounts
As of December 31, 2017	receivable	Accounts receivable	receivable, net
Accounts receivable from loan facilitation service	339,122	(17,528)	321,594
Accounts receivable from post facilitation service	—	—	—
Total	339,122	(17,528)	321,594


		Allowance for
	Accounts	uncollectible	Accounts
As of December 31, 2018	receivable	Accounts receivable	receivable, net
Accounts receivable from loan facilitation service	1,849,796	(77,152)	1,772,644
Accounts receivable from post facilitation service	13,546	(4,184)	9,362
Total	1,863,342	(81,336)	1,782,006

No provision or write off of allowance for uncollectible accounts receivables was recorded during the period from July 25 to December 31, 2016, the movement of allowance for uncollectible accounts receivables for the years ended December 31, 2017 and 2018 are as follows:


	Opening			Ending
	balance as of	Current	Write off in	balance as of
	January 1,	year net	the current	December 31,
	2017	provision	year	2017
Accounts receivable from loan facilitation service	—	17,528	—	17,528
Accounts receivable from post facilitation service	—	—	—	—
Total	—	17,528	—	17,528


	Opening			Ending
	balance as of	Current	Write off in	balance as of
	January 1,	year net	the current	December 31,
	2018	provision	year	2018
Accounts receivable from loan facilitation service	17,528	64,895	(5,271)	77,152
Accounts receivable from post facilitation service	—	4,702	(518)	4,184
Total	17,528	69,597	(5,789)	81,336

The Group's contract assets as of December 31, 2017 and 2018 are as follows:


		Allowance for
		uncollectible	Contract assets,
As of December 31, 2017	Contract assets	Contract assets	net
Contract assets from loan facilitation service	5,563	(1,163)	4,400
Contract assets from post facilitation service	3,688	(2,579)	1,109
Total	9,251	(3,742)	5,509


		Allowance for
		uncollectible	Contract assets,
As of December 31, 2018	Contract assets	Contract assets	net
Contract assets from loan facilitation service	7,634	(758)	6,876
Contract assets from post facilitation service	3,284	(421)	2,863
Total	10,918	(1,179)	9,739

The movement of allowance for uncollectible contract assets for the period from July 25 to December 31, 2016, the years ended December 31, 2017 and 2018 are as follows:


	Opening			Ending
	balance as of	Current	Write off in	balance as of
	July 25,	year net	the current	December 31,
	2016	provision	year	2016
Contract assets from loan facilitation service	—	106	—	106
Contract assets from post facilitation service	—	2	—	2
Total	—	108	—	108


	Opening			Ending
	balance as of	Current	Write off in	balance as of
	January 1,	year net	the current	December 31,
	2017	provision	year	2017
Contract assets from loan facilitation service	106	1,075	(18)	1,163
Contract assets from post facilitation service	2	2,577	—	2,579
Total	108	3,652	(18)	3,742


	Opening			Ending
	balance as of	Current	Write off in	balance as of
	January 31,	year net	the current	December 31,
	2018	provision	year	2018
Contract assets from loan facilitation service	1,163	1,053	(1,458)	758
Contract assets from post facilitation service	2,579	918	(3,076)	421
Total	3,742	1,971	(4,534)	1,179

The Group did not recognize any contract liabilities during the periods presented. The amount of the transaction price allocated to performance obligations that are unsatisfied as of December 31, 2017 and 2018 are RMB 160,379 and RMB 774,452, respectively, all of which pertain to post-origination service. As the payment terms of the loans facilitated by the Group are all within one year, any unsatisfied performance obligation as of year end will be satisfied in the next year.

The Group used practical expedient in applying full retrospective method on completed contracts in transiting to ASC 606. For completed contracts that have variable consideration, the Group used the transaction price at the date the contract was completed rather than estimating variable consideration amounts in the comparative reporting periods.

The Group determines that acquisition cost paid for funding partners based on the amount of investment represents costs to obtain a contract qualifying for capitalization since these payments are directly related to sales achieved during a period. Such cost was not material during the periods presented.

Revenue recognized for the period from July 25, 2016 to December 31, 2016, and the years ended December 31, 2017 and 2018 from performance obligations satisfied (or partially satisfied) in prior periods pertaining to adjustments to variable consideration due to the change of estimated prepayment rate was immaterial.

The Group is subject to Value-added Tax and other surcharges including education surtax and urban maintenance and construction tax, on the services provided in the PRC. The Group has made an accounting policy election to exclude from the measurement of the transaction price all taxes assessed by the governmental authority. Such taxes excluded from revenues are RMB 136, RMB 61,744 and RMB 379,762, respectively, for the period from July 25, 2016 to December 31, 2016, and the years ended December 31, 2017 and 2018.

Cash and cash equivalents

Cash and cash equivalents mainly consist of funds in banks, which are highly liquid and are unrestricted as to withdrawal or use.

Restricted cash

Restricted cash represents:

(i)Deposit to funding banks which is used to secure timely loan repayment. As of December 31, 2017 and 2018, the amount of restricted cash related to deposit to the funding banks is RMB 391,748 and RMB 561,652, respectively.

(ii)Cash held by the trusts and assets management plans through segregated bank accounts which can only be used to invest in loans or other securities as stipulated in the trust agreement. The trusts have a maximum operating period of two years. The cash in the trusts is not available to fund the general liquidity needs of the Group.

Funds receivable from third party payment service providers

The Group opened accounts with third party online payment service providers to collect and transfer the loan funds and interest to funding partners or borrowers. The Group also uses such accounts to collect the transaction fee and service fee, and repay and collect the default loan principal and interest. The balance of funds receivable from third party payment service providers mainly includes

(a)

Funds provided by Fuzhou Microcredit but not yet transferred to the borrowers by third party payment service providers due to the settlement time lag;

(b)

Repayment of loan principal and interest amounts received from the borrowers but not yet transferred to the investors by third party payment service providers due to the settlement time lag and

(c)

Accumulated amounts of transaction fee, service fee received, payment and collection of default loan and interest at the balance sheet date.

Fair value

Fair value is considered to be the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability.

Authoritative literature provides a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows:

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model‑derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

The carrying values of financial instruments, which consist of cash and cash equivalents, restricted cash, security deposits, accounts receivable and contract assets,financial assets receivable, funds receivable from third party payment service providers, loans receivable, payable to investors of the consolidated trusts, and amounts due from/to related parties are recorded at cost which approximates their fair value due to the short‑term nature of these instruments.

The Group does not have any assets or liabilities that are recorded at fair value subsequent to initial recognition on a recurring or non‑recurring basis during the periods presented.

Loans receivable

Loans receivable represents loans facilitated through the consolidated trusts and Fuzhou Microcredit. Loans receivable are recorded as receivable, reduced by a valuation allowance estimated as of the balance sheet date.

The allowance for loan losses is determined at a level believed to be reasonable to absorb probable losses inherent in the portfolio as of each balance sheet date. The allowance is provided based on an assessment performed on a portfolio basis. All loans are assessed collectively depending on factors such as delinquency rate, size, and other risk characteristics of the portfolio.

The Group charges off loans receivable as a reduction to the allowance for loans receivable when the loan principal and interest are deemed to be uncollectible. In general, loans receivable is identified as uncollectible when it is determined to be not probable that the balance can be collected.

Property and equipment, net

Furniture and equipment are recorded at cost less accumulated depreciation. Depreciation is calculated on a straight‑line basis over the following estimated useful lives:


Leasehold improvements		Over the shorter of the lease term or expected useful lives
Electronic equipment		5 years
Furniture and office equipment		5 years

Gains and losses from the disposal of furniture and equipment are recognized in the combined and consolidated statements of operations.

Guarantee liabilities

For the loans facilitated through the loan facilitation business, the Group provides a guarantee service to its funding partners whereas in the event of default, the institutional funding partners are entitled to receive unpaid interest and principal from the Group. In general, any unpaid interest and principal are paid when the borrower does not repay as scheduled. For accounting purposes, at loan inception, the Group recognizes a stand‑ready liability representing the fair value of guarantee liability in accordance with ASC Topic 460.

From February 2018, to follow the recent regulation change, particularly the Circular 141 which came into effect in December 2017, the Group began to involve third-party guarantee companies to provide guarantee for new loans facilitated for certain funding partners. These licensed guarantee companies initially reimburses the loan principal and interest to the institutional funding partners upon borrower’s default. Although the Group does not have direct contractual obligation to the institutional funding partners for defaulted principal and interest, the Group provides back to back guarantee to the licensed guarantee companies. As agreed in the back to back guarantee contract, the Group would pay the licensed guarantee companies for actual losses incurred based on defaulted principal and interest. Given that the Group effectively takes on all of the credit risk of the borrowers, the Group recognizes a stand ready obligation for its guarantee exposure in accordance with ASC Topic 460. For a small portion of loans newly facilitated during the year of 2018, the Group does not provide guarantees and does not record any guarantee liabilities associated with those loans.

At the inception of each loan, the Group recognizes the guarantee liability at fair value in accordance with ASC 460‑10, which incorporates the expectation of potential future payments under the guarantee and takes into both non‑contingent and contingent aspects of the guarantee. Subsequent to the loan’s inception, the guarantee liability is composed of two components: (i) ASC Topic 460 component; and (ii) ASC Topic 450 component. The liability recorded based on ASC Topic 460 is determined on a loan by loan basis and it is reduced when the Group is released from the underlying risk, i.e. as the loan is repaid by the borrower or when the investor is compensated in the event of a default. This component is a stand ready obligation which is not subject to the probable threshold used to record a contingent obligation. When the Group is released from the stand ready liability upon expiration of the underlying loan, the Group records a corresponding amount as “Other revenue” in the combined and consolidated statement of comprehensive income. For the years ended December 31, 2017 and 2018, revenues recognized related to releasing of guarantee liabilities are immaterial. The other component is a contingent liability determined based on probable loss considering the actual historical performance and current conditions, representing the obligation to make future payouts under the guarantee liability in excess of the stand‑ready liability, measured using the guidance in ASC Topic 450. The ASC Topic 450 contingent component is determined on a collective basis and loans with similar risk characteristics are pooled into cohorts for purposes of measuring incurred losses. The ASC 450 contingent component is recognized as part of operating expenses in the combined and consolidated statement of comprehensive income. At all times the recognized liability (including the stand ready liability and contingent liability) is at least equal to the probable estimated losses of the guarantee portfolio.

The movement of guarantee liabilities during 2017 and 2018 is as follows:


		RMB
As of January 1, 2017		5,768
Provision at the inception of new loans		452,182
Net payout (1)		(156,677)
Release on expiration		(331)
As of December 31, 2017		300,942
As of January 1, 2018		300,942
Provision at the inception of new loans		2,059,392
Net payout(1)		(935,991)
Release on expiration		(25,169)
As of December 31, 2018		1,399,174

(1)

Net payout represents the amount paid upon borrowers’ default net of subsequent recoveries from the borrowers during a given period.

As of December 31, 2017 and 2018, the contractual amounts of the outstanding loans subject to guarantee by the Group is estimated to be RMB 10,844,693 and RMB 40,770,719 respectively. The approximate term of guarantee compensation service ranged from 1 month to 12 months, as of both December 31, 2017 and 2018. As of December 31, 2017 and 2018, the contractual amounts of the outstanding loans not subject to guarantee by the Group were estimated to be RMB 160,183 and RMB 960,839.

Financial assets receivable

Financial assets receivable is recognized at loan inception which is equal to the stand‑ready liability recorded at fair value in accordance with ASC 460‑10-30-2(b) and considers what premium would be required by the Group to issue the same guarantee service in a standalone arm’s‑length transaction.

The fair value recognized at loan inception is estimated using a discounted cash flow model based on the expected net payouts by incorporating a markup margin. The Group estimates its expected net payouts according to the product mix, default rates, loan terms and discount rate. The financial assets receivable is accounted for as a financial asset, and reduced upon the receipt of the service fee payment from the borrowers. At each reporting date, the Group estimates the future cash flows and assesses whether there is any indicator of impairment. If the carrying amounts of the financial assets receivable exceed the expected cash to be received, an impairment loss is recorded for the financial assets receivable not recoverable and is recorded in the combined and consolidated income statement. Impairment losses of RMB nil, RMB 16,273 and RMB 48,072 were recorded in the combined and consolidated statements of operations during the period from July 25, 2016 to December 31, 2016 and the years ended December 31, 2017 and 2018.

The Group's financial assets receivable as of December 31, 2017 and 2018 are as follows:


	December 31,	December 31,
	2017	2018
	RMB	RMB
Financial assets receivable	286,380	1,250,277
Allowance for uncollectible receivables	(16,258)	(56,656)
Financial assets receivable, net	270,122	1,193,621

The movement of financial assets receivable for the period from July 25, 2016 to December 31, 2016 and the years ended December 31, 2017 and 2018 is as follows:


	Period from
	July 25, 2016 to	Year ended,	Year ended,
	December 31, 2016	December 31, 2017	December 31, 2018
	RMB	RMB	RMB
Balance at beginning of year	—	5,160	286,380
Addition in the current year	5,768	452,182	1,881,072
Collection in the current year	(608)	(170,947)	(909,501)
Write-off	—	(15)	(7,674)
Balance at end of year	5,160	286,380	1,250,277

The movement of allowance for uncollectible receivables for the period from July 25, 2016 to December 31, 2016 and the years ended December 31, 2017 and 2018 is as follows:


	Period from
	July 25, 2016 to	Year ended,	Year ended,
	December 31, 2016	December 31, 2017	December 31, 2018
	RMB	RMB	RMB
Balance at beginning of year	—	—	16,258
Current year net provision	—	16,273	48,072
Write-off	—	(15)	(7,674)
Balance at end of year	—	16,258	56,656

Origination and servicing expense

Origination and servicing expense represents cost of services which consists primarily of variable expenses and vendor costs, and costs related to risk management, credit assessment, borrower and system support, payment processing services and third-party collection agencies with facilitating and servicing loans.

Origination expense includes expense related to the Group's borrower referral program under which the Group provides cash incentives to existing borrowers who have successfully referred a new borrower/borrowers to the Group. Such cash reward is offered when the new borrower makes a drawdown. As the cash reward is directly associated with the new borrower acquisition, the Group accounted for it as origination expense to facilitate the loans. The Group recorded RMB nil, RMB 2.5 million and RMB 12.5 million of cash reward for the period from the inception date of July 25, 2016 to December 31, 2016, and the years ended December 31, 2017 and 2018, respectively.

Sales and marketing expenses

Sales and marketing expenses primarily consist of variable marketing and promotional expenses and general brand and awareness building, including fees paid to channel partners for directing user traffic to the Group. Salaries and benefits expenses related to the Group’s sales and marketing personnel and other expenses related to the Group’s sales and marketing team are also included in the sales and marketing expenses. For the period from July 25 to December 31, 2016, and the years ended December 31, 2017 and 2018, the advertising expenses were RMB 1,031, RMB 341,768 and RMB 1,254,315, respectively.

Government grant

Government grants are primarily referred to the amounts received from various levels of local governments from time to time which are granted for general corporate purposes and to support its ongoing operations in the region. The grants are determined at the discretion of the relevant government authority and there are no restrictions on their use. The government subsidies are recorded as other income in the period the cash is received. The government grants received by the Group is RMB nil, RMB 26 and RMB 7,695 for the period from the July 25, 2016 to December 31, 2016, and the years ended December 31, 2017 and 2018, respectively.

Income taxes

Current income taxes are provided on the basis of net profit (loss) for financial reporting purposes, adjusted for income and expenses which are not assessable or deductible for income tax purposes, in accordance with the laws of the relevant tax jurisdictions.

Deferred income taxes are provided using assets and liabilities method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse.

Deferred tax assets are recognized to the extent that these assets are more likely than not to be realized. In making such a determination, the management consider all positive and negative evidence, including future reversals of projected future taxable income and results of recent operation.

In order to assess uncertain tax positions, the Group applies a more likely than not threshold and a two‑step approach for the tax position measurement and financial statement recognition. Under the two‑step approach, the first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. The Group recognizes interest and penalties, if any, under accrued expenses and other current liabilities on its combined and consolidated balance sheet and under other expenses in its combined and consolidated statement of comprehensive loss. The Group did not have any significant unrecognized uncertain tax positions as of and for the years ended December 31, 2017 and 2018.

Value added taxes (“VAT”)

The Group is subject to VAT at the rate of 6%, depending on whether the entity is a general taxpayer or small‑scale taxpayer, and related surcharges on revenue generated from providing services. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded in the line item of accrued expense and other liabilities on the face of balance sheet.

Certain risks and concentrations

As of December 31, 2017 and 2018, substantially all of the Group's cash and cash equivalents as well as restricted cash were held in major financial institutions located in the PRC, which management considers to be of high credit quality.

Three major funding institutions of the Group funded loans which individually generated greater than 10% of total revenues for the years ended December 31, 2017 and 2018.

Share-based compensation

Share-based payment transactions with employees, such as stock options, are measured based on the grant date fair value of the awards, with the resulting expense generally recognized on a straight-line basis in the unaudited condensed combined and consolidated statements of operations over the period during which the employee is required to perform service in exchange for the award.

The Group has adopted ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which among other items, provides an accounting policy election to account for forfeitures as they occur, rather than to account for them based on an estimate of expected forfeitures. The Group has elected to account for forfeitures as they occur and applied it retrospectively.

Foreign currency translation

The reporting currency of the Group is the Renminbi (“RMB”). The Group’s operations are conducted through the companies located in the PRC where the local currency is the functional currency.

Transactions denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing on the transaction dates. Assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing at the balance sheet date. Exchange gains and losses are included in earnings as a component of other income.

The combined and consolidated financial statements of the Group are translated from the functional currency into reporting currency. Assets and liabilities denominated in foreign currencies are translated using the applicable exchange rates at the balance sheet date. Equity accounts other than earnings generated in current period are translated at the appropriate historical rates. Revenues, expenses, gains and losses are translated using the periodic average exchange rates. The resulting foreign currency translation adjustment are recorded in other comprehensive income (loss).

Convenience translation

The Group’s business is primarily conducted in China and all of the revenues are denominated in RMB. The financial statements of the Group are stated in RMB. Translations of balances in the combined balance sheets, and the related combined statements of operations, shareholders’ equity and cash flows from RMB into US dollars as of and for the year ended December 31, 2018 are solely for the convenience of the readers and were calculated at the rate of USD1.00=RMB 6.8755, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 28, 2018. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into USD at that rate on December 28, 2018, or at any other rate.

Employee defined contribution plan

Full time employees of the Group in the PRC participate in a government mandated multi employer defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require that the Group makes contributions to the government for these benefits based on a certain percentage of the employee’s salaries. The Group has no legal obligation for the benefits beyond the contributions. The total amount that was expensed as incurred was RMB 1,999, RMB 13,862 and RMB 36,365 for the period from the inception date of July 25, 2016 to December 31, 2016, and the years ended December 31, 2017 and 2018, respectively.

(Loss) Income per share

Basic (loss) income per ordinary share is computed by dividing net loss attributable to the ordinary shareholders by the weighted average number of ordinary shares outstanding during the period assuming the ordinary shares were issued and outstanding from the earliest period presented.

The Company's convertible redeemable preferred shares are participating securities as the convertible redeemable preferred shares participate in undistributed earnings on an as-if-converted basis. Accordingly, the Company uses the two-class method of computing earnings per share. For year ended December 31, 2018, two-class method was not applicable as the Group had a net loss attributable to ordinary shareholders due to the deemed dividend recognized (refer to note 9) while the convertible redeemable preferred shares do not have contractual obligations to share in the losses of the Group.

Diluted (loss) income per ordinary share reflects the potential dilution that could occur if securities were exercised or converted into ordinary shares. Ordinary share equivalents are excluded from the computation in income periods should their effects be anti-dilutive. The Group had convertible redeemable preferred shares and share options, which could potentially dilute basic earnings per share in the future. Diluted (loss) income per share is computed using the two-class method or the as-if converted method, whichever is more dilutive.

Segment reporting

The Group uses management approach to determine operation segment. The management approach considers the internal organization and reporting used by the Group’s chief operating decision maker (''CODM'') for making decisions, allocation of resource and assessing performance.

The Group’s CODM has been identified as the Chief Executive Officer who reviews the combined and consolidated results of operations when making decisions about allocating resources and assessing performance of the Group. The Group operates and manages its business as a single operating segment.

The Group’s long‑lived assets are all located in the PRC and all of the Group’s revenues are derived from within the PRC. Therefore, no geographical segments are presented.

Operating leases

Leases where substantially all the rewards and risks of ownership of assets remain with the lessor are accounted for as operating leases. Rentals applicable to such operating leases are recognized on a straight line basis over the lease term. Certain of the operating lease agreements contain rent holidays. Rent holidays are considered in determining the straight line rent expense to be recorded over the lease term.

Recent accounting pronouncements

Under the Jumpstart Our Business Startups Act of 2012, as amended (''the JOBS Act''), the Company meets the definition of an emerging growth company, or EGC, and has elected the extended transition period for complying with new or revised accounting standards, which delays the adoption of these accounting standards until they would apply to private companies.

Recently Adopted Accounting Guidance

In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)". Under the standard, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers.

The Group elected to adopt the standard in 2018, using the full retrospective method, and restated the accompanying financial statements for all prior periods since July 25, 2016 to reflect the adoption. The Group has not made any change to the underlying contract terms with the borrower and the financial institutions in conjunction with its adoption of ASC 606. The cumulative adjustment primarily arises from the timing of revenue recognition for service fees collected in monthly installments related to loan products being recognized earlier under the standard. Under Topic 605, the transaction fees collected in monthly installments are considered contingent upon the borrowers’ payment and post-origination services which are delivered each month, and therefore are not recognizable as revenue until the contingency is resolved (i.e., upon receipt of the monthly installment and delivery of monthly post-origination services). Upon adoption of the ASU, facilitation revenue is recognized upon the successful facilitation of the loans provided on the platform using the total consideration estimated to be received and allocated to the different performance obligations based upon their relative fair value.

Impacts to Previously Reported Results

Adoption of the standards related to revenue recognition impacted previously reported results as follows:

Period from July 25, 2016 to December 31, 2016


		New revenue
	As previously	standard
	reported	adjustment	As restated
	RMB	RMB	RMB
Statement of comprehensive income
Revenue from loan facilitation services	42	1,576	1,618
Revenue from post-origination services	18	22	40
Net revenue	60	1,598	1,658
Provision for accounts receivable and contract assets	—	(108)	(108)
Income tax benefit (expense)	8,297	(373)	7,924
Net income (loss)	(21,833)	1,117	(20,716)
Comprehensive income (loss)	(21,833)	1,117	(20,716)
Net income (loss) per share-Basic	(0.11)	0.01	(0.10)
Net income (loss) per share-Diluted	(0.11)	0.01	(0.10)

Year ended December 31, 2017


		New revenue
	As previously	standard
	reported	adjustment	As restated
	RMB	RMB	RMB
Statement of comprehensive income
Revenue from loan facilitation services	117,780	434,533	552,313
Revenue from post-origination services	50,478	44,559	95,037
Net revenue	309,052	479,092	788,144
Provision for financial assets receivable	—	(16,273)	(16,273)
Provision for accounts receivable and contract assets	—	(21,180)	(21,180)

Income tax benefit (expense)	62,232	(110,410)	(48,178)
Net (loss) income	(166,365)	331,230	164,865
Comprehensive (loss) income	(166,365)	331,230	164,865
Net income (loss) per share-Basic	(0.84)	1.67	0.83
Net income (loss) per share-Diluted	(0.84)	1.67	0.83

As of December 31, 2017


		New revenue
	As previously	standard
	reported	adjustment	As restated
	RMB	RMB	RMB
Balance sheets
Accounts receivable and contract assets, net	—	327,103	327,103
Financial assets receivable, net	140,356	129,766	270,122
Deferred tax assets	186,319	(110,783)	75,536
Other tax payable	17,590	13,739	31,329
Accumulated (deficit)/Retained earnings	(188,198)	332,347	144,149

Adoption of the standard had no impact to cash flows from or used in operating, financing, or investing activities on the combined and consolidated cash flow statements

Recent Accounting Guidance Not Yet Adopted

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The guidance supersedes existing guidance on accounting for leases with the main difference being that operating leases are to be recorded in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. For operating leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. For public business entities, the guidance is effective for fiscal years beginning after December 15, 2018, including final periods within those fiscal years. For all other entities, guidance is effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early application of the guidance is permitted. In transition, entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. In July 2018, the FASB issued ASU No. 2018-10 Codification Improvements to Topic 842, Leases and ASU No. 2018-11, Leases (Topic 842), Targeted Improvements. ASU No. 2018-10 affects narrow aspects of the guidance issued in the amendments in Update 2016-02 and ASU No. 2018-11 allows for an additional optional transition method where comparative periods presented in the financial statements in the period of adoption will not be restated and instead, companies will recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Group will adopt the new lease requirement on January 1, 2020 utilizing this additional optional transition method. The Group is in the process of evaluating the impact of adoption of this guidance on its combined and consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. This ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This ASU requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of the Group’s portfolio. These disclosures include qualitative and quantitative requirements that provide additional information about the amounts recorded in the financial statements. For public business entities, the guidance is effective for fiscal years beginning after December 15, 2019, including final periods within those fiscal years. For all other public business entities, the guidance is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Early application of the pending content that links to this paragraph is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. In November 2018, the FASB issued ASC No. 2018-19, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, which mitigate transition complexity by requiring that for nonpublic business entities the amendments in Update 2016-13 are effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years, and clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases. The Group is in the process of evaluating the impact of adoption of this guidance on its combined and consolidated financial statements.

In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Payments. The primary purpose of the ASU is to reduce the diversity in practice that has resulted from the lack of consistent principles on this topic. For public business entities, the guidance in the ASU is effective for fiscal years beginning after December 15, 2017, including final periods within those fiscal years. For all other entities, the guidance in the ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Early adoption is permitted for all entities. Entities must apply the guidance retrospectively to all periods presented but may apply it prospectively from the earliest date practicable if retrospective application would be impracticable. The Group does not expect the adoption of this guidance will have a significant impact on its combined and consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement, which modifies the disclosure requirements on fair value measurements by removing, modifying, or adding certain disclosures. The ASU eliminates such disclosures as the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy and valuation processes for Level 3 fair value measurements. The ASU adds new disclosure requirements for Level 3 measurements. The new guidance is effective January 1, 2020 and permits early adoption of either the entire standard or only the provisions that eliminate or modify the requirements. The Group is evaluating the impact this ASU will have on its disclosures.

LOANS RECEIVABLE, NET

12 Months Ended

Dec. 31, 2018

LOANS RECEIVABLE, NET

LOANS RECEIVABLE, NET

3. LOANS RECEIVABLE, NET

Loans receivable consists of the following:


	December 31,	December 31,
	2017	2018
	RMB	RMB
Loans receivable	1,204,713	837,328
Less allowance for loan losses	(12,406)	(25,895)
Loans receivable, net	1,192,307	811,433

The following table presents the aging of loans as of December 31, 2017 and 2018:


	0-30 days	31-60 days	61-90 days	over 90 days	Total amount
	past due	past due	past due	past due	past due	Current	Total loans
December 31, 2017 (RMB)	9,739	1,765	1,171	981	13,656	1,191,057	1,204,713
December 31, 2018 (RMB)	6,584	3,101	3,670	14,888	28,243	809,085	837,328

Loans receivable of RMB 14,888 as of December 31, 2018 were in non‑accrual status. The Group has not recorded any financing income on an accrual basis for the loans that are past due for more than 90 days. Loans are returned to accrual status if they are brought to non‑delinquent status or have performed in accordance with the contractual terms for a reasonable period of time and, in the Group’s judgment, will continue to make periodic principal and interest payments as scheduled. For the period from the inception date to December 31, 2016 and the years ended December 31, 2017 and 2018, the Group has charged off loans receivable of RMB nil, RMB nil and RMB 31 million, respectively.

Movement of allowance for loan losses is as follows:


	Period from
	July 25 to	Year ended,	Year ended,
	December 31,	December 31,	December 31,
	2016	2017	2018
	RMB	RMB	RMB
Balance at beginning of year	—	—	12,406
Provision for loan losses	—	12,406	44,474
Write-off	—	—	(30,985)
Balance at end of year	—	12,406	25,895

The following table presents nonaccrual loan principal as of December 31, 2017 and 2018:


	December 31,	December 31,
	2017	2018
	RMB	RMB
Nonaccrual loan principal	981	14,888
Less allowance for loan losses	(958)	(14,726)
Nonaccrual loans, net	23	162

PROPERTY AND EQUIPMENT, NET

12 Months Ended

Dec. 31, 2018

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET

4. PROPERTY AND EQUIPMENT, NET


	December 31,	December 31,
	2017	2018
	RMB	RMB
Electronic equipment	2,888	5,320
Furniture and office equipment	1,587	4,391
Leasehold improvements	2,988	2,033
Total property and equipment	7,463	11,744
Accumulated depreciation	(1,469)	(4,875)
Property and equipment, net	5,994	6,869

Depreciation expense on property and equipment for the period from July 25 to December 31, 2016, and the years ended December 31, 2017 and 2018 were RMB 192, RMB 1,277 and RMB 3,406, respectively.

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

12 Months Ended

Dec. 31, 2018

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

5. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES


	December 31,	December 31,
	2017	2018
	RMB	RMB
User traffic direction fees	28,070	276,024
Payable for third-party service fee	9,439	88,498
Payable to institutional funding partners (i)	42,654	67,434
Accrued payroll and welfare	14,681	54,552
Others	1,893	32,447
Total	96,737	518,955

(i)

Payable to institutional funding partners mainly include amounts collected from the borrowers but have not been transferred to the institutional funding partners due to holiday breaks.

RELATED PARTY BALANCES AND TRANSACTIONS

12 Months Ended

Dec. 31, 2018

RELATED PARTY BALANCES AND TRANSACTIONS

6. RELATED PARTY BALANCES AND TRANSACTIONS

The table below sets forth the major related parties and their relationships with the Group, with which the Group entered into transactions during the period from July 25 to December 31, 2016, and the years ended December 31, 2017 and 2018:


Name of related parties		Relationship with the group
Beijing Qifutong Technology Co., Ltd. (“Qifutong”)		An affiliate of Qihoo 360, ultimately controlled by Mr. Zhou, the Chairman of the Group
Beijing Qibutianxia Technology Co., Ltd. (“Qibutianxia”)		Entity controlled by Mr. Zhou, the Chairman of the Group
Ningbo Siyinjia Investment management co. Ltd. ("Ningbo Siyinjia")		Entity controlled by Mr. Zhou, the Chairman of the Group
Beijing Qicaitianxia Technology Co., Ltd. (“Qicaitianxia”)		Entity controlled by Mr. Zhou, the Chairman of the Group
Beijing Qihu Technology Co., Ltd. (“Qihu”)		An affiliate of Qihoo 360, ultimately controlled by Mr. Zhou, the Chairman of the Group
Jinshang Consumer Finance Inc. (“Jinshang”)		An affiliate of an entity controlled by Mr. Zhou, the Chairman of the Group
Youdaojingwei Assets Management Co.Ltd. ("Youdaojingwei")		Entity controlled by Mr. Zhou, the Chairman of the Group
Beijing Zixuan Information Technology Co., Ltd.		Entity controlled by Mr. Zhou, the Chairman of the Group
(“Beijing Zixuan”)
Others		Entities controlled by Mr. Zhou, the Chairman of the Group

The Group entered into the following transactions with its related parties:

For the period from July 25 to December 31, 2016, and the years ended December 31, 2017 and 2018, services provided by the related parties were RMB 10,923, RMB 82,344 and RMB 157,881 respectively.


	Period from
	July 25 to	Year ended	Year ended
	December 31,	December 31,	December 31,
	2016	2017	2018
	RMB	RMB	RMB
Referral service fee charged by Qifutong	—	43,214	43,688
Interests charged by Youdaojingwei for funds provided	—	9,877	40,497
Corporate expenses allocated from Qibutianxia	10,580	17,512	32,015
Referral service fee charged by Qihu	343	10,814	13,158
Others	—	927	28,523
Total	10,923	82,344	157,881

Qifutong and Qihu are the subsidiaries of Qihoo 360 which are ultimately controlled by Mr. Zhou. They refer borrowers to the Group and charge referral service fees accordingly.

For the period from July 25 to December 31, 2016, and the years ended December 31, 2017 and 2018, services provided to the related parties were RMB nil, RMB 86,311 and RMB 502,614 respectively.


	Period from
	July 25 to	Year ended	Year ended
	December 31,	December 31,	December 31,
	2016	2017	2018
	RMB	RMB	RMB
Referral service fee charged to Qicaitianxia	—	84,303	196,013
Loan facilitation services fee charged from Jinshang	—	—	134,884
Loan facilitation services fee charged from Beijing Zixuan	—	—	128,970
Post-origination services fee charged from Jinshang	—	—	33,153
Post-origination services fee charged from Beijing Zixuan	—	—	8,559
Others	—	2,008	1,035
Total	—	86,311	502,614

Beijing Zixuan is the subsidiary of Qibutianxia which is ultimately controlled by Mr. Zhou. Beijing Zixuan runs a P2P platform, referring individual investors as the funding partners to the Group's platform. Jinshang is an affiliate of an entity controlled by Mr. Zhou and provides funds to the borrowers through the Group's platform. Historically, the Group directly collected service fees from the borrowers. Started from 2018, the Group contractually changed its payment flow model by collecting service fees from Beijing Zixuan/Jinshang instead of from borrowers. The amounts from Beijing Zixuan and Jinshang represent the loan facilitation service and post-origination service fees charged from them.

As of December 31, 2017 and 2018, amounts due from related parties were RMB 105,219 and RMB 484,286, respectively, and details are as follows:


	December 31,	December 31,
	2017	2018
	RMB	RMB
Jinshang(1)	14,932	215,937
Beijing Zixuan(2)	—	187,964
Qicaitianxia	89,361	78,441
Qifutong	400	1,550
Others	526	394
Total	105,219	484,286

(1) The balance as of December 31, 2017 represents deposit to Jinshang to secure the timely repayment of loans facilitated by the Group that Jinshang invested in. The balance as of December 31, 2018 represents service fees due from Jinshang is RMB 113,867, net of allowance of RMB 12,167.

(2) The balance represents service fees due from Beijing Zixuan is RMB 187,964 as of December 31, 2018 which is net of allowance of RMB 5,888.

As of December 31, 2017 and 2018, amounts due to related parties were RMB 1,283,970 and RMB 78,767 respectively, and details are as follows:


	December 31,	December 31,
	2017	2018
	RMB	RMB
Qibutianxia(1)	769,321	51,682
Qihu	2,247	14,434
Qifutong	11,641	4,920
Youdaojingwei(2)	483,145	4,034
Qicaitianxia	—	2,413
Ningbo Siyinjia	300	300
Beijing Zixuan(3)	16,572	90
Others	744	894
Total	1,283,970	78,767

(1) The amount due to Qibutianxia as of December 31, 2017 mainly includes interest free loans of RMB740,050 to the Group and the loan was repaid in 2018. The amount due to Qibutianxia as of December 31, 2018 is related to payroll expense advanced by Qibutianxia.

(2) Youdaojingwei provided funds to the Group through the consolidated trusts.

(3) Beijing Zixuan, which runs a P2P platform, refers individual investors as the funding partners to our platform, and processes the cash collection on behalf of the individual investors. Payable to Beijing Zixuan as of December 31, 2017 represents amounts collected from the borrowers but have not been transferred to Beijing Zixuan.

Qibutianxia provided joint back to back guarantee to certain third party guarantee companies for the loans facilitated by the Group. As of December 31, 2018, RMB 13,981,761 loans were under such arrangement.

INCOME TAXES

12 Months Ended

Dec. 31, 2018

INCOME TAXES

INCOME TAXES

7. INCOME TAXES

PRC

Under the Law of the People’s Republic of China on Enterprise Income Tax (“EIT Law”), domestically‑owned enterprises and foreign‑invested enterprises are subject to a uniform tax rate of 25%. In November 2018, Qiyu received its “high and new technology enterprises” status and was entitled to a reduced EIT rate of 15% from 2018 to 2020.

The current and deferred portion of income tax expenses included in the combined and consolidated statements of operations, which were all attributable to the Group’s PRC entities are as follows:


	Period from
	July 25 to	Year ended	Year ended
	December 31,	December 31,	December 31,
	2016	2017	2018
	RMB	RMB	RMB
Current tax	—	115,790	375,066
Deferred tax	(7,924)	(67,612)	91,294
Total	(7,924)	48,178	466,360

Reconciliation between the income tax at PRC statutory tax rate and income tax expense is as follows:


	Period from
	July 25 to		Year ended		Year ended
	December 31,		December 31,		December 31,
	2016		2017		2018
	RMB		RMB		RMB
(Loss) Income before income tax benefit (expense)	(28,640)		213,043		1,659,671
Statutory tax rate in the PRC	25	%	25	%	25	%
Income tax at statutory tax rate	(7,160)		53,261		414,918
Effect of different tax rate of subsidiary operation in other jurisdiction	—		—		5,424
Non-deductible expenses	3		23		151,987
Effect of preferential tax rates	—		—		(84,120)
Research and development super-deduction	(767)		(5,106)		(21,849)
Income tax (benefit) expense	(7,924)		48,178		466,360

The effect of the preferential tax rates on the income per share is as follows:


	Years Ended December 31,
	(Amounts in Thousands Except Per Share Data )
	2016	2017	2018	2018
	RMB	RMB	RMB	US$
Tax saving amount due to preferential tax rates	—	—	84,120	12,235
Income per share effect-basic and diluted	—	—	0.41	0.06

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The components of the deferred tax assets and deferred tax liabilities are as follows:


	December 31,	December 31,
	2017	2018
	RMB	RMB
Deferred tax assets
Guarantee liabilities	114,405	386,781
Advertising expenses	61,201	148,613
Provision for accounts receivable and contract assets	9,390	34,695
Provision for loan losses	3,102	14,220
Accrued expenses	7,923	13,990
Net operating loss carry forwards	—	5,056
Total deferred tax assets	196,021	603,355
Deferred tax liabilities
Uncollected revenues	(120,485)	(619,113)
Total deferred tax liabilities	(120,485)	(619,113)
Net deferred tax assets (liabilities)	75,536	(15,758)

Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets. On the basis of this evaluation, as of December 31, 2017 and 2018, no allowance has been recorded for the deferred tax assets.

The authoritative guidance requires that the Group recognizes the impact of a tax position in the financial statements if that position is more likely than not of being sustained upon audit by the tax authority, based on the technical merits of the position. Under PRC laws and regulations, arrangements and transactions among related parties may be subject to examination by the PRC tax authorities. If the PRC tax authorities determine that the contractual arrangements among related companies do not represent a price under normal commercial terms, they may make adjustments to the companies’ income and expenses. A transfer pricing adjustment could result in additional tax liabilities.

According to PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or withholding agent. The statute of limitations will be extended five years under special circumstances, which are not clearly defined (but an underpayment of tax liability exceeding RMB 0.1 million is specifically listed as a special circumstance). In the case of a related party transaction, the statute of limitations is ten years. There is no statute of limitations in the case of tax evasion.

Aggregate undistributed earnings of the Group’s PRC subsidiaries and VIE that are available for distribution was RMB 144,149 and 1,954,077 as of December 31, 2017 and 2018 respectively.

In accordance with the EIT Law, dividends, which arise from profits of foreign invested enterprises (“FIEs”) earned after January 1, 2008, are subject to a 10% withholding income tax. In addition, under tax treaty between the PRC and Hong Kong, if the foreign investor is incorporated in Hong Kong and qualifies as the beneficial owner, the applicable withholding tax rate is reduced to 5%, if the investor holds at least 25% in the FIE, or 10%, if the investor holds less than 25% in the FIE. A deferred tax liability should be recognized for the undistributed profits of PRC subsidiaries unless the Company has sufficient evidence to demonstrate that the undistributed dividends will be reinvested and the remittance of the dividends will be postponed indefinitely. The Group plans to indefinitely reinvest undistributed profits earned from its China subsidiaries in its operations in the PRC. Therefore, no withholding income taxes for undistributed profits of the Group’s subsidiaries have been provided as of December 31, 2017 and 2018.

Under applicable accounting principles, a deferred tax liability should be recorded for taxable temporary differences attributable to the excess of financial reporting basis over tax basis in a domestic subsidiary. However, recognition is not required in situations where the tax law provides a means by which the reported amount of that investment can be recovered tax-free and the enterprise expects that it will ultimately use that means. The Group completed its feasibility analysis on a method, which the Group will ultimately execute if necessary to repatriate the undistributed earnings of the VIE without significant tax costs. As such, the Group does not accrue deferred tax liabilities on the earnings of the VIE given that the Group will ultimately use the means.

SHARE-BASED COMPENSATION

12 Months Ended

Dec. 31, 2018

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION

8. SHARE-BASED COMPENSATION

Share incentive plan

Stock options

In May 2018, the shareholders and board of directors of the Company adopted the Share Incentive Plan for the granting of share options to employees, directors and consultants to reward them for services to the Company and to provide incentives for future service. The share options expire 10 years from the date of grant.

On May 20 and November 20, 2018, the Company granted 24,627,493 and 690,023 stock options, respectively, with an exercises price of US$0.00001 per share to certain employees, directors and officers. The stock options shall vest over a period from immediate to 4 years. The grant date fair value per option was RMB 48.64 and RMB 60.77, respectively.

The Company used the binomial model to estimate the fair value of the options granted on the respective grant dates with assistance from an independent valuation firm. The fair value of options approximates the fair value of underlying ordinary shares as the exercise price is nominal.

The fair value per option was estimated at the date of grant using the following assumptions:


		Year ended,
		December 31, 2018
		RMB
Average risk-free rate of interest		3.18%
Estimated volatility rate		51.32%-53.49%
Dividend yield		0.00%
Time to maturity		10 years
Exercise price		USD 0.00001

The risk-free rate of interest is based on the yield of US Treasury Strip Bond as of the valuation date. The expected volatility is estimated based on annualized standard deviation of daily stock price return of comparable companies for the period before valuation date and with similar span as the expected expiration term. The fair value of ordinary share underlying the options has been determined by considering a number of objective and subjective factors such as operating and financial performance, round of financing investment, discount for lack of marketability and general and industry specific economic outlook, amongst other factors.

A summary of option activity during period from January 1, 2018 to December 31, 2018 is as follows:


			Weighted
		Weighted	Average
	Number of	Average	Remaining	Aggregate
	Options	Exercise Price	Contract Life	Intrinsic Value
		USD	Years	RMB
Options outstanding at January 1, 2018	—	—	—	—
Options granted in 2018	25,317,516	0.00001	8.50	1,349,930
Options forfeited in 2018	(72,939)	0.00001	8.50	—
Options outstanding at December 31, 2018	25,244,577	0.00001	7.89	1,346,041
Options exercisable at December 31, 2018	9,040,933	0.00001	7.89	482,063
Options vested or expected to be vested at December 31, 2018	25,244,577	0.00001	7.89	1,346,041

The weighted-average grant-date fair value per option granted for the year ended December 31, 2018 was RMB 48.97.

The Company recognizes the compensation costs on a straight-line basis over the requisite service period of the award, which is generally the vesting period.


		Year ended
		December 31, 2018
		RMB
Origination and servicing expenses		150,177
Sales and marketing expenses		15,700
General and administrative expenses		441,504
Total		607,381

As of December 31, 2018, unrecognized compensation cost related to unvested awards granted to employees of the Group was RMB 638,834. This cost is expected to be recognized weighted-average period of 1.37 years.

ORDINARY SHARES AND PREFERRED SHARES

12 Months Ended

Dec. 31, 2018

ORDINARY SHARES AND PREFERRED SHARES

ORDINARY SHARES AND PREFERRED SHARES

9. ORDINARY SHARES AND PREFERRED SHARES

On April 27, 2018, the Company was authorized to issue 50,000,000 shares of common stock, at par value of USD 0.001 per share. And 1 share was issued and outstanding on that date. On May 16, 2018, the board approved a share split of 1 to 100, and re‑designation of common stock to Class A ordinary shares. As a result, 5,000,000,000 shares was authorized at par value of USD 0.00001 per share. As part of the Reorganization which occurred in September 2018, an aggregate number of 198,347,168 ordinary shares was issued. At the same time, the 100 shares outstanding before the Reorganization was surrendered to the Company. The ordinary shares include 16,512,156 Class A ordinary shares, 39,820,586 Class B ordinary shares and 142,014,426 Class C ordinary shares. Each Class A and each Class C ordinary share is entitled to one vote and each Class B ordinary share is entitled to twenty votes on all matters that are subject to shareholder vote. All classes of ordinary shares are entitled to the same dividend right. Class B and Class C ordinary shares could be converted into Class A ordinary shares, at the option of the holders, on one-for-one basis. All Class B ordinary shares are beneficially owned by Mr. Zhou, the Chairman of the Company. All Class C ordinary shares were automatically converted to Class A ordinary shares immediately as of completion of the IPO.

On December 14, 2018, the Company completed its IPO on the NASDAQ Global Market. In this offering, 3,100,000 ADSs, representing 6,200,000 Class A Ordinary Shares, were issued at a price of US$16.50 per ADS. The aggregate proceeds received by the Company from the IPO, net of issuance costs, were approximately RMB 297,860 (USD 43,308).

Before the Reorganization occurred in September 2018, there are several rounds of financing into Qibutianxia with some equity interest having preference rights. In 2016 before Qiyu was established, RMB 100,000 equity interest were subscribed by the shareholders who have the preference rights (Series A preferred equity interest). In April 2017, RMB 722,770 equity interest were subscribed by the shareholders who have the preference rights. And in January 2018, RMB 1,451,300 equity interest were subscribed by the shareholders who have the preference rights. Collectively, these equity interest issued in 2017 and 2018 were grouped as Series A+ preferred equity interest.

Upon Reorganization in September 2018, in addition to the 198,347,168 ordinary shares issued, the Company issued an aggregate of 10,375,744 Series A convertible redeemable preferred shares and 47,792,100 Series A+ convertible redeemable preferred shares to the preferred equity interest holders, all in the same proportion, in exchange for their equity interest in the carved entities of Qiyu, Fuzhou Microcredit and Fuzhou Guarantee. The preference rights held by the shareholders of Series A and Series A+ convertible redeemable preferred shares are substantially the same as the interest they held in Qibutianxia. At the same time, the Company issued 24,937,695 Series B convertible redeemable preferred shares to certain third party new investors for a total cash consideration of USD 203,500 (RMB 1,393,812). The terms of the all the Series A, Series A+ and Series B convertible redeemable preferred shares (collectively as “Preferred Shares”) are substantially the same. The key terms include the following:

Voting Rights

The holders of the convertible redeemable preferred shares and ordinary shares shall vote together as one class on all resolutions. The holder of each convertible redeemable preferred shares has the number of votes as equals to the number of Class A ordinary shares then issuable upon their conversion into Class A ordinary shares.

Redemption

At the request of the majority of the holders of the convertible redeemable preferred shares, the convertible redeemable preferred shares are redeemable at any time when the Company fails to complete an IPO on or before June 30, 2022 or any material breach of the Transaction Documents (including the Shareholders’ Agreement and Memorandum and Articles as amended from time to time), at a redemption price at least equal to the sum of the deemed issue price, plus an amount accruing at 8% per annum and all declared but unpaid dividends.

Liquidation Preference

In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company, the holders of the convertible redeemable preferred shares shall be entitled to receive, prior to the holders of the ordinary shares, at the amount representing higher of a deemed liquidation price and an equivalent redemption price. The liquidation preference could be exercised in the sequence of Series B convertible redeemable preferred shares, Series A+ convertible redeemable preferred shares and Series A convertible redeemable preferred shares.

Conversion rights

Each preferred share shall be convertible, at the option of the holder thereof, at any time into Class A ordinary shares. And all outstanding convertible redeemable preferred shares shall automatically be converted into Class A ordinary shares, at the then effective conversion rate upon either (a) the occurrence of an IPO, or (b) when specified by vote or written consent of the holders of at least two thirds of the then outstanding convertible redeemable preferred shares and Class C Ordinary Shares voting together as a single class on an as-converted basis.

Dividends

The holders of the convertible redeemable preferred shares and ordinary shares are entitled to the dividend pari passu based on the number of shares they own on an as-converted basis once a dividend is authorized.

Given the key terms described above, the Company classified the Preferred Shares as mezzanine equity and recorded them at fair value on the issuance date. The Company has determined that there were no beneficial conversion features ("BCF") attributable to the Preferred Shares as effective conversion price was higher than the fair value of the ordinary shares on the commitment date. The Company determined the fair value of ordinary shares with the assistance of an independent third party valuation firm.

The Company treated the issuance of Series A and A+ convertible redeemable preferred shares as new issuance and an extinguishment of the equity interest with preference rights existing before the Reorganization as the legal form between the two is different and the preference rights received were not exactly the same before and after the Reorganization. Accordingly, the Series A and A+ convertible redeemable preferred shares were recorded at fair value. As the Series A convertible redeemable preferred shares and Series A+ convertible redeemable preferred shares were issued as part of the Reorganization with no cash consideration, the Company accounted for the issuance of Series A and A+ convertible redeemable preferred shares in the manner as deemed dividends to shareholders and charged the fair value of the convertible redeemable preferred shares against retained earnings or, in the absence of retained earnings, by charging against additional paid-in capital. The changes in equity related to the recognition of Series A and A+ convertible redeemable preferred shares is disclosed in the combined and combined and consolidated statement of changes in shareholders' equity.

Upon issuance, the Company determined that redemption was not probable and did not accrete the Preferred Shares to the redemption value. Immediately upon the completion of the IPO, all outstanding convertible redeemable preferred shares were automatically converted into Class A ordinary shares on a one-for-one basis. The following is the roll forward of the carrying amounts of Preferred Shares for the year ended December 31, 2018:


		Year ended
		December 31, 2018
		RMB
Balance as of January 1, 2018		—
Issuance of Series A convertible redeemable preferred shares to investors		531,106
Issuance of Series A+ convertible redeemable preferred shares to investors		2,566,627
Issuance of Series B convertible redeemable preferred shares to investors		1,393,812
Conversion of convertible redeemable preferred shares to ordinary shares upon IPO		(4,491,545)
Balance as of December 31, 2018		—

As of December 31, 2018, there were 287,652,707 ordinary shares outstanding, par value $0.00001 per share, being the sum of 247,832,121 Class A ordinary shares and 39,820,586 Class B ordinary shares.

STATUTORY RESERVES AND RESTRICTED NET ASSETS	12 Months Ended
STATUTORY RESERVES AND RESTRICTED NET ASSETS	Dec. 31, 2018
STATUTORY RESERVES AND RESTRICTED NET ASSETS
STATUTORY RESERVES AND RESTRICTED NET ASSETS	10. STATUTORY RESERVES AND RESTRICTED NET ASSETS In accordance with the PRC laws and regulations, the PRC entities of the Group are required to make appropriation to certain statutory reserves, namely general reserve, enterprise expansion reserve, and staff welfare and bonus reserve, all of which are appropriated from net profit as reported in their PRC statutory accounts. The PRC entities of the Group are required to appropriate at least 10% of their after‑tax profits to the general reserve until such reserve has reached 50% of their respective registered capital. Appropriations to the enterprise expansion reserve and the staff welfare and bonus reserve are to be made at the discretion of the board of directors of the PRC entities of the Group. There are no appropriations to these reserves by the PRC entities of the Group for the years ended December 31, 2017 and 2018. As a result of PRC laws and regulations and the requirement that distributions by the PRC entities of the Group can only be paid out of distributable profits computed in accordance with the PRC GAAP, the PRC entities of the Group restricted from transferring a portion of their net assets to the Group. Amounts restricted include paid‑in capital, capital reserve and statutory reserves of the PRC entities of the Group. As of December 31, 2017 and 2018, the aggregated amounts of paid‑in capital, capital reserve and statutory reserves represented the amount of net assets of the relevant entity in the Group not available for distribution amounted to RMB 590,000 and 1,713,462, respectively (including the statutory reserve fund of RMB nil and RMB 12,462 as of December 31, 2017 and 2018).

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2018

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

11. COMMITMENTS AND CONTINGENCIES

(1) Commitments

Operating lease as lessee

The Group leases certain office premises and cloud infrastructure to support its core business system under non‑cancelable leases. Rental expenses under operating leases for the years ended December 31, 2017 and 2018 were RMB 5,432 and RMB 8,455, respectively.

Future minimum lease payments under non‑cancelable operating leases agreements are as follows:


Years ending		RMB
2019		13,118
2020		8,009
2021		4,280
2022		1,353
2023 and thereafter		336

(2) Contingencies

The Group is subject to periodic legal or administrative proceedings in the ordinary course of business. The Group does not believe that any currently pending legal or administrative proceeding to which the Group is a party will have a material effect on its business or financial condition.

NET (LOSS) INCOME PER SHARE

12 Months Ended

Dec. 31, 2018

NET (LOSS) INCOME PER SHARE

NET (LOSS) INCOME PER SHARE

12. NET (LOSS) INCOME PER SHARE

For the period from the inception date of July 25, 2016 to December 31, 2016, and the years ended December 31, 2017 and 2018, for the purpose of calculating net (loss) income per share as a result of the Reorganization as described in Note 1, the number of shares used in the calculation reflects the outstanding shares of the Company as if the Reorganization took place from the earliest date.

Basic and diluted net income (loss) per share for each of the periods presented were calculated as follows:


	Period from
	July 25 to	Year ended	Year ended
	December 31,	December 31,	December 31,
	2016	2017	2018
	RMB	RMB	RMB
Numerator:
Net (loss) income	(20,716)	164,865	1,193,311
Deemed dividend to shareholders upon issuance of Series A and A+ preferred share (note 9)	—	—	(3,097,733)
Net (loss) income attributable to Class A and Class B ordinary shareholders for computing basic and diluted net loss per share	(20,716)	164,865	(1,904,422)
Denominator:
Weighted average Class A and Class B ordinary shares outstanding used in computing basic and diluted (loss) income per ordinary share	198,347,168	198,347,168	202,751,277
Basic and diluted net (loss) income per share	(0.10)	0.83	(9.39)

For the year ended December 31, 2018, stock options to purchase ordinary shares that were anti-dilutive and excluded from the calculation of diluted net loss per share of the Company were 2,679,463 on a weighted average basis. In addition, 21,857,895 number of Preferred Shares calculated on a weighted average basis were excluded from the calculation of diluted net loss per share in 2018 as their inclusion would have been anti-dilutive.

ADDITIONAL INFORMATION - FINANCIAL STATEMENT SCHEDULE I

12 Months Ended

Dec. 31, 2018

ADDITIONAL INFORMATION - FINANCIAL STATEMENT SCHEDULE I

ADDITIONAL INFORMATION - FINANCIAL STATEMENT SCHEDULE I

360 FINANCE, INC.

ADDITIONAL INFORMATION - FINANCAL STATEMENT SCHEDULE I

Under PRC regulations, foreign-invested companies in China may pay dividends only out of their accumulated profits, if any, determined in accordance with PRC accounting standards and regulations. The Company’s PRC subsidiaries and VIEs are required to set aside at least 10% of their respective accumulated profits each year, if any, to fund general reserve funds unless such reserve funds have reached 50% of its respective registered capital. These reserves are not distributable in the form of cash dividends to the Company. In addition, the share capital of the Company’s PRC subsidiaries and VIEs are considered restricted due to restrictions on the distribution of share capital.

The following Schedule I has been provided pursuant to the requirements of Rules 12-04(a) and 5-04(c) of Regulation S-X, which require condensed financial information as to the financial position, changes in financial position and results of operations of a parent company as of the same dates and for the same periods for which audited combined and consolidated financial statements have been presented as the restricted net assets of the Company’s PRC subsidiaries and VIEs which may not be transferred to the Company in the forms of loans, advances or cash dividends without the consent of PRC government authorities as of December 31, 2018, was more than 25% of the Company’s combined and consolidated net assets as of December 31, 2018.

CONDENSED BALANCE SHEETS

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“USD”))


	2018	2018
	RMB	USD
ASSETS
Cash and cash equivalents	336,154	48,892
Amount due from a subsidiary	1,363,117	198,257
Investments in subsidiaries and VIEs	2,766,538	402,376
TOTAL ASSETS	4,465,809	649,525
LIABILITIES AND EQUITY
LIABILITIES
Accrued expenses and other current liabilities	11,632	1,692
Amount due to a subsidiary	13,981	2,033
TOTAL LIABILITIES	25,613	3,725
EQUITY
Ordinary shares ($0.00001 par value; 5,000,000,000 shares authorized, 287,652,707 shares issued and outstanding as of December 31, 2018, respectively)	20	3
Additional paid-in capital	4,866,756	707,840
Accumulated deficit	(430,263)	(62,579)
Other comprehensive income	3,683	536
TOTAL EQUITY	4,440,196	645,800
TOTAL LIABILITIES AND EQUITY	4,465,809	649,525

360 FINANCE, INC.

ADDITIONAL INFORMATION - FINANCAL STATEMENT SCHEDULE I

CONDENSED STATEMENTS OF OPERATIONS

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“USD”))


	Year ended	Year ended
	December 31,	December 31,
	2018	2018
	RMB	USD
Operating costs and expenses	(10,367)	(1,508)
Interest income	187	27
Foreign exchange losses	(11,518)	(1,676)
Net loss before taxes and income from equity in subsidiaries and VIEs	(21,698)	(3,157)
Equity in earnings of subsidiaries and VIEs	1,215,009	176,715
Net income before taxes	1,193,311	173,558
Income tax expenses	—	—
Net income	1,193,311	173,558
Deemed dividend	(3,097,733)	(450,547)
Net loss attributable to ordinary shareholders of the Company	(1,904,422)	(276,989)

360 FINANCE, INC.

ADDITIONAL INFORMATION - FINANCAL STATEMENT SCHEDULE I

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME OR LOSS

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“USD”))


	Year ended	Year ended
	December 31,	December 31,
	2018	2018
	RMB	USD
Net income	1,193,311	173,558
Other comprehensive income, net of tax of nil:
Foreign currency translation adjustment	3,683	536
Other comprehensive income	3,683	536
Total Comprehensive income	1,196,994	174,094
Deemed dividend	(3,097,733)	(450,547)
Comprehensive loss attributable to ordinary shareholders	(1,900,739)	(276,453)

360 FINANCE, INC.

CONDENSED STATEMENTS OF CASH FLOWS

ADDITIONAL INFORMATION - FINANCAL STATEMENT SCHEDULE I

(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“USD”))


	Year ended	Year ended
	December 31,	December 31,
	2018	2018
	RMB	USD
Cash Flows from Operating Activities:
Net income	1,193,311	173,558
Adjustments to reconcile net income to net cash used in operating activities:
Equity in earnings of subsidiaries and VIEs	(1,215,009)	(176,715)
Changes in operating assets and liabilities	—	—
Accrued expenses and other current liabilities	8,559	1,245
Amounts due from a subsidiary	(1,346,627)	(195,858)
Net cash used in operating activities	(1,359,766)	(197,770)
Cash Flows from Financing Activities:	—	—
Proceeds from issuance of ordinary share upon IPO	327,236	47,595
Payment of IPO costs	(12,100)	(1,760)
Proceeds from series B convertible redeemable preferred shares	1,393,812	202,722
Net cash provided by financing activities	1,708,948	248,557
Effect of foreign exchange rate changes	(13,028)	(1,895)
Net increase in cash and cash equivalents	336,154	48,892
Cash, cash equivalents, and restricted cash, beginning of year	—	—
Cash, cash equivalents, and restricted cash, end of year	336,154	48,892

Notes to condensed financial statements

360 Finance, Inc. was founded in April 2018 in Cayman Islands. The condensed full year result of the Company has been prepared assuming the Reorganization (see Note 1 in the combined and consolidated financial statements) was in effect from January 1, 2018.

The condensed financial statements of 360 Finance, Inc. have been prepared using the same accounting policies as set out in the combined and consolidated financial statements except that the equity method has been used to account for investments in subsidiaries and VIEs. Such investment in subsidiaries and VIEs are presented on the balance sheets as interests in subsidiaries and VIEs and the profit of the subsidiaries and VIEs is presented as equity in profit of subsidiaries and VIEs on the statement of operations.

As of December 31, 2017 and 2018, there were no material contingencies, significant provisions of long-term obligations of the Company, except for those which have been separately disclosed in the consolidated financial statements.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. The footnote disclosure certain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the accompanying Combined and Consolidated Financial Statements.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2018

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

Basis of consolidation

Consolidated Trusts


	December 31, 2017	December 31, 2018
	RMB	RMB
ASSETS
Restricted cash	96,134	6,142
Loans receivable, net	910,674	493,883
Prepaid expenses and other assets	—	4,000
Total Assets	1,006,808	504,025

	December 31, 2017	December 31, 2018
	RMB	RMB
LIABILITIES
Payable to investors of the consolidated trusts	536,906	300,341
Amounts due to related parties	483,145	4,034
Accrued expenses and other current liabilities	62	385
Other tax payable	306	268
Total liabilities	1,020,419	305,028


	Period from
	July 25 to	Year ended	Year ended
	December 31,	December 31,	December 31,
	2016	2017	2018
	RMB	RMB	RMB
Net revenue	—	10,791	70,621
Net loss	—	(2,560)	(32,708)


	Period from
	July 25 to	Year ended	Year ended
	December 31,	December 31,	December 31,
	2016	2017	2018
	RMB	RMB	RMB
Net cash used in operating activities	—	(90)	(8,749)
Net cash (used in) provided by investing activities	—	(916,275)	527,223
Net cash provided by (used in) financing activities	—	1,012,499	(708,466)

There are no terms in any arrangements, considering both explicit arrangements and implicit variable interests that require the Company to provide financial support to the consolidated trusts.

The Group believes that the assets of the consolidated trusts could only be used to settle the obligations of the consolidated trusts.

Use of estimates

Revenue recognition

Loan Facilitation Services and Post Origination Services

Before adoption of ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)

2)Providing repayment processing services for the institutional funding partners over the loan term, referred to as “Post Origination Services”

Multiple element revenue recognition

After adoption of ASU 2014-09, “Revenue from Contracts with Customers” (Topic 606)” with full retrospective method

Step 1: Identify the contract (s) with a customer

Step 2: Identify the performance obligations in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations in the contract

Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation

Revenue recognition for the following items remains the same before and after the adoption of Topic 606:

Incentives

Financing income

Other service fee revenues

Other service fee revenues also include revenue from guarantee liabilities, which were released upon expiry of the underlying loans and late fees from borrowers.

The following table presents the disaggregation of revenue for the period from July 25, 2016 to December 31, 2016, the years ended December 31, 2017 and 2018:


	Period from
	July 25, 2016 to	Year ended	Year ended	Year ended
	December 31,	December 31,	December 31,	December 31,
	2016	2017	2018	2018
	RMB	RMB	RMB	USD
Revenue from loan facilitation services	1,618	552,313	3,107,633	451,986
Revenue from post-origination services	40	95,037	757,957	110,240
Financing income	—	50,966	267,844	38,956
Other service fee revenues	—	89,828	313,584	45,609
Total net revenue	1,658	788,144	4,447,018	646,791

Accounts receivable and Contract Assets, net

The Group's accounts receivable as of December 31, 2017 and 2018 are as follows:


		Allowance for
	Accounts	uncollectible	Accounts
As of December 31, 2017	receivable	Accounts receivable	receivable, net
Accounts receivable from loan facilitation service	339,122	(17,528)	321,594
Accounts receivable from post facilitation service	—	—	—
Total	339,122	(17,528)	321,594


		Allowance for
	Accounts	uncollectible	Accounts
As of December 31, 2018	receivable	Accounts receivable	receivable, net
Accounts receivable from loan facilitation service	1,849,796	(77,152)	1,772,644
Accounts receivable from post facilitation service	13,546	(4,184)	9,362
Total	1,863,342	(81,336)	1,782,006


	Opening			Ending
	balance as of	Current	Write off in	balance as of
	January 1,	year net	the current	December 31,
	2017	provision	year	2017
Accounts receivable from loan facilitation service	—	17,528	—	17,528
Accounts receivable from post facilitation service	—	—	—	—
Total	—	17,528	—	17,528


	Opening			Ending
	balance as of	Current	Write off in	balance as of
	January 1,	year net	the current	December 31,
	2018	provision	year	2018
Accounts receivable from loan facilitation service	17,528	64,895	(5,271)	77,152
Accounts receivable from post facilitation service	—	4,702	(518)	4,184
Total	17,528	69,597	(5,789)	81,336

The Group's contract assets as of December 31, 2017 and 2018 are as follows:


		Allowance for
		uncollectible	Contract assets,
As of December 31, 2017	Contract assets	Contract assets	net
Contract assets from loan facilitation service	5,563	(1,163)	4,400
Contract assets from post facilitation service	3,688	(2,579)	1,109
Total	9,251	(3,742)	5,509


		Allowance for
		uncollectible	Contract assets,
As of December 31, 2018	Contract assets	Contract assets	net
Contract assets from loan facilitation service	7,634	(758)	6,876
Contract assets from post facilitation service	3,284	(421)	2,863
Total	10,918	(1,179)	9,739

The movement of allowance for uncollectible contract assets for the period from July 25 to December 31, 2016, the years ended December 31, 2017 and 2018 are as follows:


	Opening			Ending
	balance as of	Current	Write off in	balance as of
	July 25,	year net	the current	December 31,
	2016	provision	year	2016
Contract assets from loan facilitation service	—	106	—	106
Contract assets from post facilitation service	—	2	—	2
Total	—	108	—	108


	Opening			Ending
	balance as of	Current	Write off in	balance as of
	January 1,	year net	the current	December 31,
	2017	provision	year	2017
Contract assets from loan facilitation service	106	1,075	(18)	1,163
Contract assets from post facilitation service	2	2,577	—	2,579
Total	108	3,652	(18)	3,742


	Opening			Ending
	balance as of	Current	Write off in	balance as of
	January 31,	year net	the current	December 31,
	2018	provision	year	2018
Contract assets from loan facilitation service	1,163	1,053	(1,458)	758
Contract assets from post facilitation service	2,579	918	(3,076)	421
Total	3,742	1,971	(4,534)	1,179

Cash and cash equivalents and Restricted cash

Cash and cash equivalents

Cash and cash equivalents mainly consist of funds in banks, which are highly liquid and are unrestricted as to withdrawal or use.

Restricted cash

Restricted cash represents:

Funds receivable from third party payment service providers

(a)

Funds provided by Fuzhou Microcredit but not yet transferred to the borrowers by third party payment service providers due to the settlement time lag;

(b)

Repayment of loan principal and interest amounts received from the borrowers but not yet transferred to the investors by third party payment service providers due to the settlement time lag and

(c)

Accumulated amounts of transaction fee, service fee received, payment and collection of default loan and interest at the balance sheet date.

Fair value

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

The Group does not have any assets or liabilities that are recorded at fair value subsequent to initial recognition on a recurring or non‑recurring basis during the periods presented.

Loans receivable

Property and equipment, net

Furniture and equipment are recorded at cost less accumulated depreciation. Depreciation is calculated on a straight‑line basis over the following estimated useful lives:


Leasehold improvements		Over the shorter of the lease term or expected useful lives
Electronic equipment		5 years
Furniture and office equipment		5 years

Gains and losses from the disposal of furniture and equipment are recognized in the combined and consolidated statements of operations.

Guarantee liabilities

The movement of guarantee liabilities during 2017 and 2018 is as follows:


		RMB
As of January 1, 2017		5,768
Provision at the inception of new loans		452,182
Net payout (1)		(156,677)
Release on expiration		(331)
As of December 31, 2017		300,942
As of January 1, 2018		300,942
Provision at the inception of new loans		2,059,392
Net payout(1)		(935,991)
Release on expiration		(25,169)
As of December 31, 2018		1,399,174

(1)

Net payout represents the amount paid upon borrowers’ default net of subsequent recoveries from the borrowers during a given period.

Financial assets receivable

The Group's financial assets receivable as of December 31, 2017 and 2018 are as follows:


	December 31,	December 31,
	2017	2018
	RMB	RMB
Financial assets receivable	286,380	1,250,277
Allowance for uncollectible receivables	(16,258)	(56,656)
Financial assets receivable, net	270,122	1,193,621

The movement of financial assets receivable for the period from July 25, 2016 to December 31, 2016 and the years ended December 31, 2017 and 2018 is as follows:


	Period from
	July 25, 2016 to	Year ended,	Year ended,
	December 31, 2016	December 31, 2017	December 31, 2018
	RMB	RMB	RMB
Balance at beginning of year	—	5,160	286,380
Addition in the current year	5,768	452,182	1,881,072
Collection in the current year	(608)	(170,947)	(909,501)
Write-off	—	(15)	(7,674)
Balance at end of year	5,160	286,380	1,250,277

The movement of allowance for uncollectible receivables for the period from July 25, 2016 to December 31, 2016 and the years ended December 31, 2017 and 2018 is as follows:


	Period from
	July 25, 2016 to	Year ended,	Year ended,
	December 31, 2016	December 31, 2017	December 31, 2018
	RMB	RMB	RMB
Balance at beginning of year	—	—	16,258
Current year net provision	—	16,273	48,072
Write-off	—	(15)	(7,674)
Balance at end of year	—	16,258	56,656

Origination and servicing expense

Sales and marketing expenses

Government grant

Income taxes

Value added taxes ("VAT")

Value added taxes (“VAT”)

Certain risks and concentrations

Three major funding institutions of the Group funded loans which individually generated greater than 10% of total revenues for the years ended December 31, 2017 and 2018.

Share-based compensation

Foreign currency translation

The reporting currency of the Group is the Renminbi (“RMB”). The Group’s operations are conducted through the companies located in the PRC where the local currency is the functional currency.

Convenience translation

Employee defined contribution plan

(Loss) Income per share

Segment reporting

The Group’s long‑lived assets are all located in the PRC and all of the Group’s revenues are derived from within the PRC. Therefore, no geographical segments are presented.

Operating leases

Recent accounting pronouncements

Recently Adopted Accounting Guidance

Impacts to Previously Reported Results

Adoption of the standards related to revenue recognition impacted previously reported results as follows:

Period from July 25, 2016 to December 31, 2016


		New revenue
	As previously	standard
	reported	adjustment	As restated
	RMB	RMB	RMB
Statement of comprehensive income
Revenue from loan facilitation services	42	1,576	1,618
Revenue from post-origination services	18	22	40
Net revenue	60	1,598	1,658
Provision for accounts receivable and contract assets	—	(108)	(108)
Income tax benefit (expense)	8,297	(373)	7,924
Net income (loss)	(21,833)	1,117	(20,716)
Comprehensive income (loss)	(21,833)	1,117	(20,716)
Net income (loss) per share-Basic	(0.11)	0.01	(0.10)
Net income (loss) per share-Diluted	(0.11)	0.01	(0.10)

Year ended December 31, 2017


		New revenue
	As previously	standard
	reported	adjustment	As restated
	RMB	RMB	RMB
Statement of comprehensive income
Revenue from loan facilitation services	117,780	434,533	552,313
Revenue from post-origination services	50,478	44,559	95,037
Net revenue	309,052	479,092	788,144
Provision for financial assets receivable	—	(16,273)	(16,273)
Provision for accounts receivable and contract assets	—	(21,180)	(21,180)

Income tax benefit (expense)	62,232	(110,410)	(48,178)
Net (loss) income	(166,365)	331,230	164,865
Comprehensive (loss) income	(166,365)	331,230	164,865
Net income (loss) per share-Basic	(0.84)	1.67	0.83
Net income (loss) per share-Diluted	(0.84)	1.67	0.83

As of December 31, 2017


		New revenue
	As previously	standard
	reported	adjustment	As restated
	RMB	RMB	RMB
Balance sheets
Accounts receivable and contract assets, net	—	327,103	327,103
Financial assets receivable, net	140,356	129,766	270,122
Deferred tax assets	186,319	(110,783)	75,536
Other tax payable	17,590	13,739	31,329
Accumulated (deficit)/Retained earnings	(188,198)	332,347	144,149

Adoption of the standard had no impact to cash flows from or used in operating, financing, or investing activities on the combined and consolidated cash flow statements

Recent Accounting Guidance Not Yet Adopted

ORGANIZATION AND PRINCIPAL ACTIVITIES (Tables)

12 Months Ended

Dec. 31, 2018

ORGANIZATION AND PRINCIPAL ACTIVITIES

Schedule of significant subsidiaries and its consolidated VIEs


	Date of	Place of
	Incorporation	Incorporation
Subsidiaries
HK Qirui International Technology Company Limited (“HK Qirui”)	June 14, 2018	Hong Kong
Shanghai Qiyue Information & Technology Co., Ltd.(“Qiyue”)	August 7, 2018	PRC
VIEs
Shanghai Qiyu Information & Technology Co., Ltd. (“Qiyu”)	July 25, 2016	PRC
Fuzhou 360 Online Microcredit Co., Ltd.(“Fuzhou Microcredit”)	March 30, 2017	PRC
Fuzhou 360 Financing Guarantee Co., Ltd. (“Fuzhou Guarantee”)	June 29, 2018	PRC

Schedule of financial information of VIEs


	December 31,	December 31,
	2017	2018
	RMB	RMB
ASSETS
Cash and cash equivalents	468,547	1,108,779
Restricted cash	391,748	561,652
Funds receivable from third party payment service providers	132,479	142,622
Accounts receivable and contract assets, net	327,103	1,791,745
Financial assets receivable, net	270,122	1,193,621
Security deposit prepaid to third-party guarantee companies	—	795,700
Amounts due from related parties	105,219	484,286
Loans receivable, net	281,633	317,551
Prepaid expenses and other assets	33,907	105,016
Property and equipment, net	5,994	6,869
Intangible assets	262	847
Deferred tax assets	75,536	—
Total Assets	2,092,550	6,508,688

LIABILITIES
Guarantee liabilities	300,942	1,399,174
Accrued expenses and other current liabilities	96,675	506,735
Income tax payable	115,325	431,998
Other tax payable	31,027	164,181
Amounts due to related parties	800,825	74,733
Deferred tax liabilities	—	15,758
Total liabilities	1,344,794	2,592,579


	Period from
	July 25 to	Year ended	Year ended
	December 31, 2016	December 31, 2017	December 31, 2018
	RMB	RMB	RMB
Net revenue	1,658	777,353	4,375,412
Net (loss) income	(20,716)	167,425	1,247,147


	Period from
	July 25 to	Year ended	Year ended
	December 31, 2016	December 31, 2017	December 31, 2018
	RMB	RMB	RMB
Net cash (used in) provided by operating activities	(68,486)	(110,884)	303,626
Net cash used in investing activities	(2,391)	(287,994)	(199,576)
Net cash provided by (used in) financing activities	77,050	1,253,000	(543,052)

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of disaggregation of revenue


	Period from
	July 25, 2016 to	Year ended	Year ended	Year ended
	December 31,	December 31,	December 31,	December 31,
	2016	2017	2018	2018
	RMB	RMB	RMB	USD
Revenue from loan facilitation services	1,618	552,313	3,107,633	451,986
Revenue from post-origination services	40	95,037	757,957	110,240
Financing income	—	50,966	267,844	38,956
Other service fee revenues	—	89,828	313,584	45,609
Total net revenue	1,658	788,144	4,447,018	646,791

Schedule of accounts receivables


		Allowance for
	Accounts	uncollectible	Accounts
As of December 31, 2017	receivable	Accounts receivable	receivable, net
Accounts receivable from loan facilitation service	339,122	(17,528)	321,594
Accounts receivable from post facilitation service	—	—	—
Total	339,122	(17,528)	321,594


		Allowance for
	Accounts	uncollectible	Accounts
As of December 31, 2018	receivable	Accounts receivable	receivable, net
Accounts receivable from loan facilitation service	1,849,796	(77,152)	1,772,644
Accounts receivable from post facilitation service	13,546	(4,184)	9,362
Total	1,863,342	(81,336)	1,782,006

Schedule of movement of allowance for uncollectible accounts receivables


	Opening			Ending
	balance as of	Current	Write off in	balance as of
	January 1,	year net	the current	December 31,
	2017	provision	year	2017
Accounts receivable from loan facilitation service	—	17,528	—	17,528
Accounts receivable from post facilitation service	—	—	—	—
Total	—	17,528	—	17,528


	Opening			Ending
	balance as of	Current	Write off in	balance as of
	January 1,	year net	the current	December 31,
	2018	provision	year	2018
Accounts receivable from loan facilitation service	17,528	64,895	(5,271)	77,152
Accounts receivable from post facilitation service	—	4,702	(518)	4,184
Total	17,528	69,597	(5,789)	81,336

Schedule of contract assets


		Allowance for
		uncollectible	Contract assets,
As of December 31, 2017	Contract assets	Contract assets	net
Contract assets from loan facilitation service	5,563	(1,163)	4,400
Contract assets from post facilitation service	3,688	(2,579)	1,109
Total	9,251	(3,742)	5,509


		Allowance for
		uncollectible	Contract assets,
As of December 31, 2018	Contract assets	Contract assets	net
Contract assets from loan facilitation service	7,634	(758)	6,876
Contract assets from post facilitation service	3,284	(421)	2,863
Total	10,918	(1,179)	9,739

Schedule of movement of allowance uncollectible contract assets


	Opening			Ending
	balance as of	Current	Write off in	balance as of
	July 25,	year net	the current	December 31,
	2016	provision	year	2016
Contract assets from loan facilitation service	—	106	—	106
Contract assets from post facilitation service	—	2	—	2
Total	—	108	—	108


	Opening			Ending
	balance as of	Current	Write off in	balance as of
	January 1,	year net	the current	December 31,
	2017	provision	year	2017
Contract assets from loan facilitation service	106	1,075	(18)	1,163
Contract assets from post facilitation service	2	2,577	—	2,579
Total	108	3,652	(18)	3,742


	Opening			Ending
	balance as of	Current	Write off in	balance as of
	January 31,	year net	the current	December 31,
	2018	provision	year	2018
Contract assets from loan facilitation service	1,163	1,053	(1,458)	758
Contract assets from post facilitation service	2,579	918	(3,076)	421
Total	3,742	1,971	(4,534)	1,179

Schedule of estimated useful lives for property and equipment


Leasehold improvements		Over the shorter of the lease term or expected useful lives
Electronic equipment		5 years
Furniture and office equipment		5 years

Schedule of movement of guarantee liabilities


		RMB
As of January 1, 2017		5,768
Provision at the inception of new loans		452,182
Net payout (1)		(156,677)
Release on expiration		(331)
As of December 31, 2017		300,942
As of January 1, 2018		300,942
Provision at the inception of new loans		2,059,392
Net payout(1)		(935,991)
Release on expiration		(25,169)
As of December 31, 2018		1,399,174

(1)

Net payout represents the amount paid upon borrowers’ default net of subsequent recoveries from the borrowers during a given period.

Schedule of financial assets receivable


	December 31,	December 31,
	2017	2018
	RMB	RMB
Financial assets receivable	286,380	1,250,277
Allowance for uncollectible receivables	(16,258)	(56,656)
Financial assets receivable, net	270,122	1,193,621

Schedule of movement of financial assets receivable


	Period from
	July 25, 2016 to	Year ended,	Year ended,
	December 31, 2016	December 31, 2017	December 31, 2018
	RMB	RMB	RMB
Balance at beginning of year	—	5,160	286,380
Addition in the current year	5,768	452,182	1,881,072
Collection in the current year	(608)	(170,947)	(909,501)
Write-off	—	(15)	(7,674)
Balance at end of year	5,160	286,380	1,250,277

Schedule of movement of allowance for uncollectible receivables


	Period from
	July 25, 2016 to	Year ended,	Year ended,
	December 31, 2016	December 31, 2017	December 31, 2018
	RMB	RMB	RMB
Balance at beginning of year	—	—	16,258
Current year net provision	—	16,273	48,072
Write-off	—	(15)	(7,674)
Balance at end of year	—	16,258	56,656

Schedule of impacts to previously reported results upon adoption of the standards related to revenue recognition

Period from July 25, 2016 to December 31, 2016


		New revenue
	As previously	standard
	reported	adjustment	As restated
	RMB	RMB	RMB
Statement of comprehensive income
Revenue from loan facilitation services	42	1,576	1,618
Revenue from post-origination services	18	22	40
Net revenue	60	1,598	1,658
Provision for accounts receivable and contract assets	—	(108)	(108)
Income tax benefit (expense)	8,297	(373)	7,924
Net income (loss)	(21,833)	1,117	(20,716)
Comprehensive income (loss)	(21,833)	1,117	(20,716)
Net income (loss) per share-Basic	(0.11)	0.01	(0.10)
Net income (loss) per share-Diluted	(0.11)	0.01	(0.10)

Year ended December 31, 2017


		New revenue
	As previously	standard
	reported	adjustment	As restated
	RMB	RMB	RMB
Statement of comprehensive income
Revenue from loan facilitation services	117,780	434,533	552,313
Revenue from post-origination services	50,478	44,559	95,037
Net revenue	309,052	479,092	788,144
Provision for financial assets receivable	—	(16,273)	(16,273)
Provision for accounts receivable and contract assets	—	(21,180)	(21,180)

Income tax benefit (expense)	62,232	(110,410)	(48,178)
Net (loss) income	(166,365)	331,230	164,865
Comprehensive (loss) income	(166,365)	331,230	164,865
Net income (loss) per share-Basic	(0.84)	1.67	0.83
Net income (loss) per share-Diluted	(0.84)	1.67	0.83

As of December 31, 2017


		New revenue
	As previously	standard
	reported	adjustment	As restated
	RMB	RMB	RMB
Balance sheets
Accounts receivable and contract assets, net	—	327,103	327,103
Financial assets receivable, net	140,356	129,766	270,122
Deferred tax assets	186,319	(110,783)	75,536
Other tax payable	17,590	13,739	31,329
Accumulated (deficit)/Retained earnings	(188,198)	332,347	144,149

Consolidated Trusts

Schedule of financial statements


	December 31, 2017	December 31, 2018
	RMB	RMB
ASSETS
Restricted cash	96,134	6,142
Loans receivable, net	910,674	493,883
Prepaid expenses and other assets	—	4,000
Total Assets	1,006,808	504,025

	December 31, 2017	December 31, 2018
	RMB	RMB
LIABILITIES
Payable to investors of the consolidated trusts	536,906	300,341
Amounts due to related parties	483,145	4,034
Accrued expenses and other current liabilities	62	385
Other tax payable	306	268
Total liabilities	1,020,419	305,028


	Period from
	July 25 to	Year ended	Year ended
	December 31,	December 31,	December 31,
	2016	2017	2018
	RMB	RMB	RMB
Net revenue	—	10,791	70,621
Net loss	—	(2,560)	(32,708)


	Period from
	July 25 to	Year ended	Year ended
	December 31,	December 31,	December 31,
	2016	2017	2018
	RMB	RMB	RMB
Net cash used in operating activities	—	(90)	(8,749)
Net cash (used in) provided by investing activities	—	(916,275)	527,223
Net cash provided by (used in) financing activities	—	1,012,499	(708,466)

LOANS RECEIVABLE, NET (Tables)

12 Months Ended

Dec. 31, 2018

LOANS RECEIVABLE, NET

Schedule of loans receivable


	December 31,	December 31,
	2017	2018
	RMB	RMB
Loans receivable	1,204,713	837,328
Less allowance for loan losses	(12,406)	(25,895)
Loans receivable, net	1,192,307	811,433

Schedule of aging of loans


	0-30 days	31-60 days	61-90 days	over 90 days	Total amount
	past due	past due	past due	past due	past due	Current	Total loans
December 31, 2017 (RMB)	9,739	1,765	1,171	981	13,656	1,191,057	1,204,713
December 31, 2018 (RMB)	6,584	3,101	3,670	14,888	28,243	809,085	837,328

Schedule of movement of allowance for loan losses


	Period from
	July 25 to	Year ended,	Year ended,
	December 31,	December 31,	December 31,
	2016	2017	2018
	RMB	RMB	RMB
Balance at beginning of year	—	—	12,406
Provision for loan losses	—	12,406	44,474
Write-off	—	—	(30,985)
Balance at end of year	—	12,406	25,895

Schedule of nonaccrual loan principal


	December 31,	December 31,
	2017	2018
	RMB	RMB
Nonaccrual loan principal	981	14,888
Less allowance for loan losses	(958)	(14,726)
Nonaccrual loans, net	23	162

PROPERTY AND EQUIPMENT, NET (Tables)

12 Months Ended

Dec. 31, 2018

PROPERTY AND EQUIPMENT, NET

Schedule of property and equipment, net


	December 31,	December 31,
	2017	2018
	RMB	RMB
Electronic equipment	2,888	5,320
Furniture and office equipment	1,587	4,391
Leasehold improvements	2,988	2,033
Total property and equipment	7,463	11,744
Accumulated depreciation	(1,469)	(4,875)
Property and equipment, net	5,994	6,869

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2018

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Schedule of accrued expenses and other current liabilities


	December 31,	December 31,
	2017	2018
	RMB	RMB
User traffic direction fees	28,070	276,024
Payable for third-party service fee	9,439	88,498
Payable to institutional funding partners (i)	42,654	67,434
Accrued payroll and welfare	14,681	54,552
Others	1,893	32,447
Total	96,737	518,955

(i)

Payable to institutional funding partners mainly include amounts collected from the borrowers but have not been transferred to the institutional funding partners due to holiday breaks.

RELATED PARTY BALANCES AND TRANSACTIONS (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of major related parties and their relationships with the Group


Name of related parties		Relationship with the group
Beijing Qifutong Technology Co., Ltd. (“Qifutong”)		An affiliate of Qihoo 360, ultimately controlled by Mr. Zhou, the Chairman of the Group
Beijing Qibutianxia Technology Co., Ltd. (“Qibutianxia”)		Entity controlled by Mr. Zhou, the Chairman of the Group
Ningbo Siyinjia Investment management co. Ltd. ("Ningbo Siyinjia")		Entity controlled by Mr. Zhou, the Chairman of the Group
Beijing Qicaitianxia Technology Co., Ltd. (“Qicaitianxia”)		Entity controlled by Mr. Zhou, the Chairman of the Group
Beijing Qihu Technology Co., Ltd. (“Qihu”)		An affiliate of Qihoo 360, ultimately controlled by Mr. Zhou, the Chairman of the Group
Jinshang Consumer Finance Inc. (“Jinshang”)		An affiliate of an entity controlled by Mr. Zhou, the Chairman of the Group
Youdaojingwei Assets Management Co.Ltd. ("Youdaojingwei")		Entity controlled by Mr. Zhou, the Chairman of the Group
Beijing Zixuan Information Technology Co., Ltd.		Entity controlled by Mr. Zhou, the Chairman of the Group
(“Beijing Zixuan”)
Others		Entities controlled by Mr. Zhou, the Chairman of the Group

Schedule of transactions with related parties


	Period from
	July 25 to	Year ended	Year ended
	December 31,	December 31,	December 31,
	2016	2017	2018
	RMB	RMB	RMB
Referral service fee charged by Qifutong	—	43,214	43,688
Interests charged by Youdaojingwei for funds provided	—	9,877	40,497
Corporate expenses allocated from Qibutianxia	10,580	17,512	32,015
Referral service fee charged by Qihu	343	10,814	13,158
Others	—	927	28,523
Total	10,923	82,344	157,881

Schedule of services provided to the related parties


	Period from
	July 25 to	Year ended	Year ended
	December 31,	December 31,	December 31,
	2016	2017	2018
	RMB	RMB	RMB
Referral service fee charged to Qicaitianxia	—	84,303	196,013
Loan facilitation services fee charged from Jinshang	—	—	134,884
Loan facilitation services fee charged from Beijing Zixuan	—	—	128,970
Post-origination services fee charged from Jinshang	—	—	33,153
Post-origination services fee charged from Beijing Zixuan	—	—	8,559
Others	—	2,008	1,035
Total	—	86,311	502,614

Schedule of amounts due from related parties


	December 31,	December 31,
	2017	2018
	RMB	RMB
Jinshang(1)	14,932	215,937
Beijing Zixuan(2)	—	187,964
Qicaitianxia	89,361	78,441
Qifutong	400	1,550
Others	526	394
Total	105,219	484,286

(2) The balance represents service fees due from Beijing Zixuan is RMB 187,964 as of December 31, 2018 which is net of allowance of RMB 5,888.

Schedule of amounts due to related parties


	December 31,	December 31,
	2017	2018
	RMB	RMB
Qibutianxia(1)	769,321	51,682
Qihu	2,247	14,434
Qifutong	11,641	4,920
Youdaojingwei(2)	483,145	4,034
Qicaitianxia	—	2,413
Ningbo Siyinjia	300	300
Beijing Zixuan(3)	16,572	90
Others	744	894
Total	1,283,970	78,767

(2) Youdaojingwei provided funds to the Group through the consolidated trusts.

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

INCOME TAXES

Schedule of current and deferred portion of income tax expenses


	Period from
	July 25 to	Year ended	Year ended
	December 31,	December 31,	December 31,
	2016	2017	2018
	RMB	RMB	RMB
Current tax	—	115,790	375,066
Deferred tax	(7,924)	(67,612)	91,294
Total	(7,924)	48,178	466,360

Schedule of reconciliation between the income tax at PRC statutory tax rate and income tax expense


	Period from
	July 25 to		Year ended		Year ended
	December 31,		December 31,		December 31,
	2016		2017		2018
	RMB		RMB		RMB
(Loss) Income before income tax benefit (expense)	(28,640)		213,043		1,659,671
Statutory tax rate in the PRC	25	%	25	%	25	%
Income tax at statutory tax rate	(7,160)		53,261		414,918
Effect of different tax rate of subsidiary operation in other jurisdiction	—		—		5,424
Non-deductible expenses	3		23		151,987
Effect of preferential tax rates	—		—		(84,120)
Research and development super-deduction	(767)		(5,106)		(21,849)
Income tax (benefit) expense	(7,924)		48,178		466,360

Schedule of the effect of preferential tax rates on the income per share


	Years Ended December 31,
	(Amounts in Thousands Except Per Share Data )
	2016	2017	2018	2018
	RMB	RMB	RMB	US$
Tax saving amount due to preferential tax rates	—	—	84,120	12,235
Income per share effect-basic and diluted	—	—	0.41	0.06

Schedule of components of the deferred tax assets and deferred tax liabilities


	December 31,	December 31,
	2017	2018
	RMB	RMB
Deferred tax assets
Guarantee liabilities	114,405	386,781
Advertising expenses	61,201	148,613
Provision for accounts receivable and contract assets	9,390	34,695
Provision for loan losses	3,102	14,220
Accrued expenses	7,923	13,990
Net operating loss carry forwards	—	5,056
Total deferred tax assets	196,021	603,355
Deferred tax liabilities
Uncollected revenues	(120,485)	(619,113)
Total deferred tax liabilities	(120,485)	(619,113)
Net deferred tax assets (liabilities)	75,536	(15,758)

SHARE-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2018

SHARE-BASED COMPENSATION

Schedule of assumptions


		Year ended,
		December 31, 2018
		RMB
Average risk-free rate of interest		3.18%
Estimated volatility rate		51.32%-53.49%
Dividend yield		0.00%
Time to maturity		10 years
Exercise price		USD 0.00001

Summary of option activity


			Weighted
		Weighted	Average
	Number of	Average	Remaining	Aggregate
	Options	Exercise Price	Contract Life	Intrinsic Value
		USD	Years	RMB
Options outstanding at January 1, 2018	—	—	—	—
Options granted in 2018	25,317,516	0.00001	8.50	1,349,930
Options forfeited in 2018	(72,939)	0.00001	8.50	—
Options outstanding at December 31, 2018	25,244,577	0.00001	7.89	1,346,041
Options exercisable at December 31, 2018	9,040,933	0.00001	7.89	482,063
Options vested or expected to be vested at December 31, 2018	25,244,577	0.00001	7.89	1,346,041

Schedule of compensation costs


		Year ended
		December 31, 2018
		RMB
Origination and servicing expenses		150,177
Sales and marketing expenses		15,700
General and administrative expenses		441,504
Total		607,381

ORDINARY SHARES AND PREFERRED SHARES (Tables)

12 Months Ended

Dec. 31, 2018

ORDINARY SHARES AND PREFERRED SHARES

Schedule of roll forward of the carrying amounts of Preferred Shares


		Year ended
		December 31, 2018
		RMB
Balance as of January 1, 2018		—
Issuance of Series A convertible redeemable preferred shares to investors		531,106
Issuance of Series A+ convertible redeemable preferred shares to investors		2,566,627
Issuance of Series B convertible redeemable preferred shares to investors		1,393,812
Conversion of convertible redeemable preferred shares to ordinary shares upon IPO		(4,491,545)
Balance as of December 31, 2018		—

COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2018

COMMITMENTS AND CONTINGENCIES

Schedule of future minimum lease payments under non-cancelable operating leases agreements


Years ending		RMB
2019		13,118
2020		8,009
2021		4,280
2022		1,353
2023 and thereafter		336

NET (LOSS) INCOME PER SHARE (Tables)

12 Months Ended

Dec. 31, 2018

NET (LOSS) INCOME PER SHARE

Schedule of basic and diluted net income (loss) per share


	Period from
	July 25 to	Year ended	Year ended
	December 31,	December 31,	December 31,
	2016	2017	2018
	RMB	RMB	RMB
Numerator:
Net (loss) income	(20,716)	164,865	1,193,311
Deemed dividend to shareholders upon issuance of Series A and A+ preferred share (note 9)	—	—	(3,097,733)
Net (loss) income attributable to Class A and Class B ordinary shareholders for computing basic and diluted net loss per share	(20,716)	164,865	(1,904,422)
Denominator:
Weighted average Class A and Class B ordinary shares outstanding used in computing basic and diluted (loss) income per ordinary share	198,347,168	198,347,168	202,751,277
Basic and diluted net (loss) income per share	(0.10)	0.83	(9.39)

ORGANIZATION AND PRINCIPAL ACTIVITIES - Reorganization and Variable Interest Entity (Details) ¥ in Thousands	5 Months Ended	12 Months Ended
	Dec. 31, 2016 CNY (¥)	Dec. 31, 2018 CNY (¥) contract	Dec. 31, 2017 CNY (¥)
Reorganisation and VIEs
Total expenses allocated from Qibutianxia to the Group \| ¥	¥ 10,580	¥ 32,015	¥ 17,512
Number of additional VIE contractual arrangements \| contract		2
Exclusive Option Agreement
Reorganisation and VIEs
Agreement term (in years)		10 years
Extended term of agreement (in years)		10 years
Exclusive Consultation and Services Agreement
Reorganisation and VIEs
Agreement term (in years)		10 years
Extended term of agreement (in years)		10 years
Loan Agreement
Reorganisation and VIEs
Notice Period for Termination of Agreement (in Months)		1 month
Equity Pledge Agreement
Reorganisation and VIEs
Percentage of Equity interest pledged to WFOE		100.00%

ORGANIZATION AND PRINCIPAL ACTIVITIES - Financial statement amounts and balances of the VIEs (Details) ¥ in Thousands, $ in Thousands	5 Months Ended	12 Months Ended
	Dec. 31, 2016 CNY (¥)	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 CNY (¥)	Dec. 31, 2018 CNY (¥)
ASSETS
Cash and cash equivalents	¥ 6,173	$ 210,283		¥ 468,547	¥ 1,445,802
Restricted cash		82,582		487,882	567,794
Funds receivable from third party payment service providers		20,744		132,479	142,622
Accounts receivable and contract assets, net		260,599		327,103	1,791,745
Financial assets receivable, net		173,605		270,122	1,193,621
Security deposit prepaid to third-party guarantee companies		115,730			795,700
Amounts due from related parties		70,436		105,219	484,286
Loans receivable, net		118,018		1,192,307	811,433
Prepaid expenses and other assets		15,855		33,907	109,016
Property and equipment, net		999		5,994	6,869
Intangible assets		123		262	847
Deferred tax assets				75,536
TOTAL ASSETS		1,068,974		3,099,358	7,349,735
LIABILITIES
Guarantee liabilities	5,768	203,501		300,942	1,399,174
Accrued expenses and other current liabilities		75,479		96,737	518,955
Income tax payable		62,841		115,325	432,066
Other tax payable		23,922		31,329	164,478
Amount due to a subsidiary		11,456		1,283,970	78,767
Deferred tax liabilities		2,292			15,758
TOTAL LIABILITIES		423,174		2,365,209	2,909,539
Net (loss) income	(20,716)	173,558	¥ 1,193,311	164,865
Net cash (used in) provided by operating activities	(68,486)	41,468	285,116	(110,974)
Net cash used in investing activities	(2,391)	47,654	327,649	(1,204,269)
Net cash provided by (used in) financing activities	77,050	$ 66,531	457,430	2,265,499
Consolidated VIEs
ASSETS
Cash and cash equivalents				468,547	1,108,779
Restricted cash				391,748	561,652
Funds receivable from third party payment service providers				132,479	142,622
Accounts receivable and contract assets, net				327,103	1,791,745
Financial assets receivable, net				270,122	1,193,621
Security deposit prepaid to third-party guarantee companies					795,700
Amounts due from related parties				105,219	484,286
Loans receivable, net				281,633	317,551
Prepaid expenses and other assets				33,907	105,016
Property and equipment, net				5,994	6,869
Intangible assets				262	847
Deferred tax assets				75,536
TOTAL ASSETS				2,092,550	6,508,688
LIABILITIES
Guarantee liabilities				300,942	1,399,174
Accrued expenses and other current liabilities				96,675	506,735
Income tax payable				115,325	431,998
Other tax payable				31,027	164,181
Amount due to a subsidiary				800,825	74,733
Deferred tax liabilities					15,758
TOTAL LIABILITIES				1,344,794	¥ 2,592,579
Net revenue	1,658		4,375,412	777,353
Net (loss) income	(20,716)		1,247,147	167,425
Net cash (used in) provided by operating activities	(68,486)		303,626	(110,884)
Net cash used in investing activities	(2,391)		(199,576)	(287,994)
Net cash provided by (used in) financing activities	¥ 77,050		¥ (543,052)	¥ 1,253,000
Percentage of consolidated revenues	100.00%	98.00%	98.00%	99.00%
Percentage of consolidated total assets		89.00%	89.00%	68.00%
Percentage of consolidated total liabilities		89.00%	89.00%	57.00%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Consolidated Trusts (Details) ¥ in Thousands, $ in Thousands	1 Months Ended	5 Months Ended	12 Months Ended
	Nov. 30, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2018 CNY (¥)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Provision for loan losses				¥ 44,474	¥ 12,406
Loans written off				(30,985)	0	¥ 0
ASSETS
Restricted Cash			$ 82,582		487,882		¥ 567,794
Loans receivable, net			118,018		1,192,307		811,433
Prepaid expenses and other assets			15,855		33,907		109,016
TOTAL ASSETS			1,068,974		3,099,358		7,349,735
LIABILITIES
Payable to investors of the consolidated trusts			43,683		536,906		300,341
Amounts due to related parties			11,456		1,283,970		78,767
Accrued expenses and other current liabilities			75,479		96,737		518,955
Other tax payable			23,922		31,329		164,478
TOTAL LIABILITIES			423,174		2,365,209		¥ 2,909,539
Net revenue		¥ 1,658	646,791	4,447,018	788,144
Net (loss) income		(20,716)	173,558	1,193,311	164,865
Net cash used in operating activities		(68,486)	41,468	285,116	(110,974)
Net cash (used in) provided by investing activities		(2,391)	47,654	327,649	(1,204,269)
Net cash provided by (used in) financing activities		77,050	$ 66,531	457,430	2,265,499
Minimum
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Term of loan			1 month				1 month
Maximum
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Term of loan			12 months				12 months
Consolidated Trusts
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Repurchase of delinquent loans				20,579	0
Repurchase of performing loans upon liquidation of consolidated trusts				114,238
Provision for loan losses		0		33,141	5,647
Loans written off		¥ 0		¥ 19,777	0
Accrual of interest loans for past due			90 days	90 days
ASSETS
Restricted Cash					96,134		¥ 6,142
Loans receivable, net					910,674		493,883
Prepaid expenses and other assets							4,000
TOTAL ASSETS	¥ 1,012,499				1,006,808		504,025
LIABILITIES
Payable to investors of the consolidated trusts					536,906		300,341
Amounts due to related parties					483,145		4,034
Accrued expenses and other current liabilities					62		385
Other tax payable					306		268
TOTAL LIABILITIES					1,020,419		¥ 305,028
Net revenue				¥ 70,621	10,791
Net (loss) income				(32,708)	(2,560)
Net cash used in operating activities				(8,749)	(90)
Net cash (used in) provided by investing activities				527,223	(916,275)
Net cash provided by (used in) financing activities				¥ (708,466)	¥ 1,012,499
Percentage of consolidated revenues		0.00%	2.00%	2.00%	1.00%
Percentage of consolidated total assets			7.00%	7.00%	32.00%
Percentage of consolidated total liabilities			10.00%	10.00%	43.00%
Consolidated Trusts \| Minimum
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Repurchase of loans delinquent period	60 days
Percentage of interest rate loans			9.00%				9.00%
Consolidated Trusts \| Maximum
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Repurchase of loans delinquent period	90 days
Term of loan			12 months				12 months
Percentage of interest rate loans			36.00%				36.00%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue recognition, Restricted cash and Loans receivable (Details) ¥ in Thousands, $ in Thousands	5 Months Ended	12 Months Ended
	Dec. 31, 2016 CNY (¥)	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 CNY (¥)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 CNY (¥)
Revenue recognition
Maximum principal amount					¥ 200
Net revenue	¥ 1,658	$ 646,791	¥ 4,447,018	¥ 788,144
Accounts receivable
Accounts Receivable					1,863,342	¥ 339,122
Allowance for uncollectible receivables			(17,528)	(17,528)	(81,336)	(17,528)
Account receivable, net					1,782,006	321,594
Movement of allowance for uncollectible receivables
Balance at beginning of year			17,528
Current year net provision	0		69,597	17,528
Write-off in the current year	0		(5,789)
Balance at end of period			81,336	17,528
Contract assets
Contract assets					10,918	9,251
Allowance for uncollectible Contract assets	(108)		(3,742)	(108)	(1,179)	(3,742)
Contract assets, net					9,739	5,509
Movement of allowance for uncollectible contract assets
Opening balance			3,742	108
Current year net provision	108		1,971	3,652
Write off in the current year			(4,534)	(18)
Ending balance	108		1,179	3,742
Contract liabilities					0	0
Performance obligations					774,452	160,379
Finance income, taxes excluded from revenue	136		¥ 379,762	61,744
Revenue practical expedient, use of transaction price at date when contract with variable consideration was completed		true	true
Restricted cash
Restricted cash related to deposit to the funding banks					¥ 561,652	391,748
Operating period		2 years	2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-12-31
Movement of allowance for uncollectible contract assets
Performance obligations, expected timing of satisfaction					1 year
Loan facilitation service
Revenue recognition
Net revenue	1,618	$ 451,986	¥ 3,107,633	552,313
Accounts receivable
Accounts Receivable					¥ 1,849,796	339,122
Allowance for uncollectible receivables			(17,528)	(17,528)	(77,152)	(17,528)
Account receivable, net					1,772,644	321,594
Movement of allowance for uncollectible receivables
Balance at beginning of year			17,528
Current year net provision			64,895	17,528
Write-off in the current year			(5,271)
Balance at end of period			77,152	17,528
Contract assets
Contract assets					7,634	5,563
Allowance for uncollectible Contract assets	(106)		(1,163)	(106)	(758)	(1,163)
Contract assets, net					6,876	4,400
Movement of allowance for uncollectible contract assets
Opening balance			1,163	106
Current year net provision	106		1,053	1,075
Write off in the current year			(1,458)	(18)
Ending balance	106		758	1,163
Post-origination services
Revenue recognition
Net revenue	40	110,240	757,957	95,037
Accounts receivable
Accounts Receivable					13,546
Allowance for uncollectible receivables			(4,184)		(4,184)
Account receivable, net					9,362
Movement of allowance for uncollectible receivables
Current year net provision			4,702
Write-off in the current year			(518)
Balance at end of period			4,184
Contract assets
Contract assets					3,284	3,688
Allowance for uncollectible Contract assets	(2)		(2,579)	(2)	(421)	(2,579)
Contract assets, net					¥ 2,863	¥ 1,109
Movement of allowance for uncollectible contract assets
Opening balance			2,579	2
Current year net provision	2		918	2,577
Write off in the current year			(3,076)
Ending balance	2		421	2,579
Financing income
Revenue recognition
Net revenue		38,956	267,844	50,966
Other service fee revenues
Revenue recognition
Net revenue		$ 45,609	313,584	89,828
Service other, referral service
Revenue recognition
Net revenue	¥ 0		¥ 211,087	¥ 84,397
Minimum
Revenue recognition
Term of loan					1 month
Maximum
Revenue recognition
Term of loan					12 months

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and equipment, net (Details)	12 Months Ended
	Dec. 31, 2018
Electronic equipment
Property and equipment, net
Property, Plant and Equipment, Useful Life	5 years
Furniture and office equipment
Property and equipment, net
Property, Plant and Equipment, Useful Life	5 years

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Guarantee liabilities (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 CNY (¥)
Movement of guarantee liabilities
Beginning balance		¥ 300,942	¥ 5,768
Provision at the inception of new loans		2,059,392	452,182
Net payout		(935,991)	(156,677)
Release on expiration		(25,169)	(331)
Ending balance	$ 203,501	1,399,174	300,942
Contractual amounts of outstanding loans subject to guarantee		40,770,719	10,844,693
Contractual amounts of outstanding loans not subject to guarantee		¥ 960,839	¥ 160,183
Minimum
Movement of guarantee liabilities
Compensation service period	1 month	1 month	1 month
Maximum
Movement of guarantee liabilities
Compensation service period	12 months	12 months	12 months

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Financial assets receivable (Details) ¥ in Thousands, $ in Thousands	5 Months Ended	12 Months Ended
	Dec. 31, 2016 CNY (¥)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 CNY (¥)	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 CNY (¥)
Financial assets receivable
Financial assets receivable	¥ 5,160	¥ 286,380	¥ 5,160		¥ 1,250,277	¥ 286,380
Allowance for uncollectible receivables		(16,258)	(16,258)		(56,656)	(16,258)
Financial assets receivable, net				$ 173,605	¥ 1,193,621	¥ 270,122
Movement financial assets receivable
Balance at beginning of year		286,380	5,160
Addition in the current year	5,768	1,881,072	452,182
Collection in the current year	(608)	(909,501)	(170,947)
Write-off		(7,674)	(15)
Balance at end of year	¥ 5,160	1,250,277	286,380
Movement of allowance for uncollectible receivables
Balance at beginning of year		16,258
Current year net provision		48,072	16,273
Write-off		(7,674)	(15)
Balance at end of year		¥ 56,656	¥ 16,258

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Origination and servicing expense, Sales and marketing expenses, Government grant and Value added taxes ("VAT") (Details) - CNY (¥) ¥ in Thousands	5 Months Ended	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2018	Dec. 31, 2017
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Cash reward	¥ 0	¥ 12,500	¥ 2,500
Advertising expense	1,031	1,254,315	341,768
Government grants received	¥ 0	¥ 7,695	¥ 26
VAT rate (as a percent)		6.00%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Convenience translation, Employee defined contribution plan and Recent accounting pronouncements (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands	5 Months Ended	12 Months Ended
	Dec. 31, 2016 CNY (¥) ¥ / shares	Dec. 31, 2018 USD ($) $ / shares ¥ / $	Dec. 31, 2018 CNY (¥) ¥ / shares	Dec. 31, 2017 CNY (¥) ¥ / shares	Dec. 31, 2018 CNY (¥) ¥ / $
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Convenience translation rate (RMB to USD) \| ¥ / $		0.1454			0.1454
Defined contribution plan cost	¥ 1,999		¥ 36,365	¥ 13,862
Statement of comprehensive income
Net revenue	1,658	$ 646,791	4,447,018	788,144
Provision for financial assets receivable		(7,852)	(53,989)	(16,273)
Provision for accounts receivable and contract assets	(108)	(12,175)	(83,707)	(21,180)
Income tax benefit (expense)	7,924	(67,829)	(466,360)	(48,178)
Net (loss) income	(20,716)	173,558	1,193,311	164,865
Comprehensive (loss) income	¥ (20,716)	$ 174,094	¥ 1,196,994	¥ 164,865
Net income (loss) per share-Basic \| (per share)	¥ (0.10)	$ (1.37)	¥ (9.39)	¥ 0.83
Net income (loss) per share-Diluted \| (per share)	¥ (0.10)	$ (1.37)	¥ (9.39)	¥ 0.83
Balance sheets
Accounts receivable and contract assets, net		$ 260,599		¥ 327,103	¥ 1,791,745
Financial assets receivable, net		173,605		270,122	1,193,621
Deferred tax assets				75,536
Other tax payable		23,922		31,329	164,478
Accumulated (deficit)/Retained earnings		(62,579)		144,149	¥ (430,263)
Loan facilitation service
Statement of comprehensive income
Net revenue	¥ 1,618	451,986	¥ 3,107,633	552,313
Post-origination services
Statement of comprehensive income
Net revenue	40	$ 110,240	¥ 757,957	95,037
ASU 2014-09 \| As previously reported
Statement of comprehensive income
Net revenue	60			309,052
Income tax benefit (expense)	8,297			62,232
Net (loss) income	(21,833)			(166,365)
Comprehensive (loss) income	¥ (21,833)			¥ (166,365)
Net income (loss) per share-Basic \| ¥ / shares	¥ (0.11)			¥ (0.84)
Net income (loss) per share-Diluted \| ¥ / shares	¥ (0.11)			¥ (0.84)
Balance sheets
Financial assets receivable, net				¥ 140,356
Deferred tax assets				186,319
Other tax payable				17,590
Accumulated (deficit)/Retained earnings				(188,198)
ASU 2014-09 \| As previously reported \| Loan facilitation service
Statement of comprehensive income
Net revenue	¥ 42			117,780
ASU 2014-09 \| As previously reported \| Post-origination services
Statement of comprehensive income
Net revenue	18			50,478
ASU 2014-09 \| New revenue standard adjustment
Statement of comprehensive income
Net revenue	1,598			479,092
Provision for financial assets receivable				(16,273)
Provision for accounts receivable and contract assets	(108)			(21,180)
Income tax benefit (expense)	(373)			(110,410)
Net (loss) income	1,117			331,230
Comprehensive (loss) income	¥ 1,117			¥ 331,230
Net income (loss) per share-Basic \| ¥ / shares	¥ 0.01			¥ 1.67
Net income (loss) per share-Diluted \| ¥ / shares	¥ 0.01			¥ 1.67
Balance sheets
Accounts receivable and contract assets, net				¥ 327,103
Financial assets receivable, net				129,766
Deferred tax assets				(110,783)
Other tax payable				13,739
Accumulated (deficit)/Retained earnings				332,347
ASU 2014-09 \| New revenue standard adjustment \| Loan facilitation service
Statement of comprehensive income
Net revenue	¥ 1,576			434,533
ASU 2014-09 \| New revenue standard adjustment \| Post-origination services
Statement of comprehensive income
Net revenue	¥ 22			¥ 44,559

LOANS RECEIVABLE, NET - Loans receivable (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 CNY (¥)
LOANS RECEIVABLE, NET
Loans receivable		¥ 837,328	¥ 1,204,713
Less allowance for loan losses		(25,895)	(12,406)
Loans receivable, net	$ 118,018	¥ 811,433	¥ 1,192,307

LOANS RECEIVABLE, NET - Aging of loans (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Aging of loans
Total amount past due	¥ 28,243	¥ 13,656
Current	809,085	1,191,057
Total loans	837,328	1,204,713
Loans receivable in non accrual status	14,888	981
0-30 days past due
Aging of loans
Total amount past due	6,584	9,739
31-60 days past due
Aging of loans
Total amount past due	3,101	1,765
61-90 days past due
Aging of loans
Total amount past due	3,670	1,171
Over 90 days past due
Aging of loans
Total amount past due	¥ 14,888	¥ 981

LOANS RECEIVABLE, NET - Movement of allowance for loan losses (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Movement of allowance for loan losses
Balance at beginning of year	¥ 12,406
Provision for loan losses	44,474	¥ 12,406
Write-off	(30,985)	0	¥ 0
Balance at end of year	¥ 25,895	¥ 12,406

LOANS RECEIVABLE, NET - Nonaccrual loan principal (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2018	Dec. 31, 2017
LOANS RECEIVABLE, NET
Nonaccrual loan principal	¥ 14,888	¥ 981
Less allowance for loan losses	(14,726)	(958)
Nonaccrual loans, net	¥ 162	¥ 23

PROPERTY AND EQUIPMENT, NET (Details) ¥ in Thousands, $ in Thousands	5 Months Ended	12 Months Ended
	Dec. 31, 2016 CNY (¥)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 CNY (¥)	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CNY (¥)
PROPERTY AND EQUIPMENT, NET
Total property and equipment			¥ 7,463		¥ 11,744
Accumulated depreciation			(1,469)		(4,875)
Property and equipment, net			5,994	$ 999	6,869
Depreciation expense	¥ 192	¥ 3,406	1,277
Electronic equipment
PROPERTY AND EQUIPMENT, NET
Total property and equipment			2,888		5,320
Furniture and office equipment
PROPERTY AND EQUIPMENT, NET
Total property and equipment			1,587		4,391
Leasehold improvements
PROPERTY AND EQUIPMENT, NET
Total property and equipment			¥ 2,988		¥ 2,033

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 CNY (¥)
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
User traffic direction fees		¥ 276,024	¥ 28,070
Payable for third-party service fee		88,498	9,439
Payable to institutional funding partners		67,434	42,654
Accrued payroll and welfare		54,552	14,681
Others		32,447	1,893
Total	$ 75,479	¥ 518,955	¥ 96,737

RELATED PARTY BALANCES AND TRANSACTIONS - Services provided by the related parties (Details) - CNY (¥) ¥ in Thousands	5 Months Ended	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2018	Dec. 31, 2017
Related Party Transactions
Services received from related party	¥ 10,923	¥ 157,881	¥ 82,344
Qifutong \| Referral service fee
Related Party Transactions
Services received from related party		43,688	43,214
Youdaojingwei \| Interests charged for funds provided
Related Party Transactions
Services received from related party		40,497	9,877
Qibutianxia \| Corporate expenses
Related Party Transactions
Services received from related party	10,580	32,015	17,512
Qihu \| Referral service fee
Related Party Transactions
Services received from related party	¥ 343	13,158	10,814
Others
Related Party Transactions
Services received from related party		¥ 28,523	¥ 927

RELATED PARTY BALANCES AND TRANSACTIONS - Services provided to the related parties (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Related Party Transactions
Services provided to the related parties	¥ 502,614	¥ 86,311
Qicaitianxia \| Referral service fee
Related Party Transactions
Services provided to the related parties	196,013	84,303
Jinshang \| Loan facilitation service
Related Party Transactions
Services provided to the related parties	134,884
Jinshang \| Post-origination services
Related Party Transactions
Services provided to the related parties	33,153
Beijing Zixuan \| Loan facilitation service
Related Party Transactions
Services provided to the related parties	128,970
Beijing Zixuan \| Post-origination services
Related Party Transactions
Services provided to the related parties	8,559
Others
Related Party Transactions
Services provided to the related parties	¥ 1,035	¥ 2,008

RELATED PARTY BALANCES AND TRANSACTIONS - Amounts due from related parties (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 CNY (¥)
Related Party Transactions
Amounts due from related parties	$ 70,436	¥ 484,286	¥ 105,219
Jinshang
Related Party Transactions
Amounts due from related parties		215,937	14,932
Jinshang \| Service fees
Related Party Transactions
Amounts due from related parties		113,867
Allowance on receivables		12,167
Beijing Zixuan
Related Party Transactions
Amounts due from related parties		187,964
Beijing Zixuan \| Service fees
Related Party Transactions
Amounts due from related parties		187,964
Allowance on receivables		5,888
Qicaitianxia
Related Party Transactions
Amounts due from related parties		78,441	89,361
Qifutong
Related Party Transactions
Amounts due from related parties		1,550	400
Others
Related Party Transactions
Amounts due from related parties		¥ 394	¥ 526

RELATED PARTY BALANCES AND TRANSACTIONS - Amounts due to related parties (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018 CNY (¥)	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 CNY (¥)
Related Party Transactions
Amounts due to related parties		$ 11,456	¥ 78,767	¥ 1,283,970
Qibutianxia
Related Party Transactions
Amounts due to related parties			51,682	769,321
Interest free loans				740,050
Guarantee provided to third party guarantee companies	¥ 13,981,761
Qihu
Related Party Transactions
Amounts due to related parties			14,434	2,247
Qifutong
Related Party Transactions
Amounts due to related parties			4,920	11,641
Youdaojingwei
Related Party Transactions
Amounts due to related parties			4,034	483,145
Qicaitianxia
Related Party Transactions
Amounts due to related parties			2,413
Ningbo Siyinjia
Related Party Transactions
Amounts due to related parties			300	300
Beijing Zixuan
Related Party Transactions
Amounts due to related parties			90	16,572
Others
Related Party Transactions
Amounts due to related parties			¥ 894	¥ 744

INCOME TAXES (Details)	5 Months Ended	12 Months Ended		36 Months Ended
INCOME TAXES (Details)	Dec. 31, 2016	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2020
Income tax rate (as a percent)	25.00%	25.00%	25.00%
Qiyu
Preferential tax rate				15.00%

INCOME TAXES - Current and deferred portion of income tax expenses (Details) ¥ in Thousands, $ in Thousands	5 Months Ended	12 Months Ended
	Dec. 31, 2016 CNY (¥)	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 CNY (¥)
INCOME TAXES
Current tax			¥ 375,066	¥ 115,790
Deferred tax	¥ (7,924)		91,294	(67,612)
Income tax (benefit) expense	¥ (7,924)	$ 67,829	¥ 466,360	¥ 48,178

INCOME TAXES - Reconciliation (Details) ¥ in Thousands, $ in Thousands	5 Months Ended	12 Months Ended
	Dec. 31, 2016 CNY (¥)	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 CNY (¥)
INCOME TAXES
(Loss) Income before income tax benefit (expense)	¥ (28,640)	$ 241,387	¥ 1,659,671	¥ 213,043
Statutory tax rate in the PRC	25.00%	25.00%	25.00%	25.00%
Income tax at statutory tax rate	¥ (7,160)		¥ 414,918	¥ 53,261
Effect of different tax rate of subsidiary operation in other jurisdiction			5,424
Non-deductible expenses	3		151,987	23
Effect of preferential tax rates		$ (12,235)	(84,120)
Research and development superdeduction	(767)		(21,849)	(5,106)
Income tax (benefit) expense	¥ (7,924)	$ 67,829	¥ 466,360	¥ 48,178

INCOME TAXES - Preferential tax rates (Details) - 12 months ended Dec. 31, 2018 ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands	USD ($) $ / shares	CNY (¥) ¥ / shares
INCOME TAXES
Tax saving amount due to preferential tax rates	$ 12,235	¥ 84,120
Income (loss) per share effect-basic and diluted \| (per share)	$ 0.06	¥ 0.41

INCOME TAXES - Components of the deferred tax assets and deferred tax liabilities (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Deferred tax assets
Guarantee liabilities	¥ 386,781	¥ 114,405
Advertising expenses	148,613	61,201
Provision for accounts receivable and contract assets	34,695	9,390
Provision for loan losses	14,220	3,102
Accrued expenses	13,990	7,923
Net operating loss carry forwards	5,056
Total deferred tax assets	603,355	196,021
Deferred tax liabilities
Uncollected revenues	(619,113)	(120,485)
Total deferred tax liabilities	(619,113)	(120,485)
Net deferred tax assets		75,536
Net deferred tax (liabilities)	(15,758)
Allowance for deferred tax assets	0	0
Undistributed earnings	¥ 1,954,077	144,149
Withholding income tax rate on dividends (as a percent)	10.00%
Minimum withholding income tax rate on dividends (as a percent)	5.00%
Direct ownership percentage threshold	25.00%
Maximum withholding income tax rate on dividends (as a percent)	10.00%
Withholding income taxes for undistributed profits	¥ 0	¥ 0

SHARE-BASED COMPENSATION - Stock options activity (Details) ¥ / shares in Units, ¥ in Thousands				1 Months Ended	12 Months Ended
	Nov. 20, 2018 $ / shares shares	Nov. 20, 2018 ¥ / shares shares	May 20, 2018 ¥ / shares shares	May 31, 2018	Dec. 31, 2018 $ / shares	Dec. 31, 2018 CNY (¥) ¥ / shares shares	Dec. 31, 2018 CNY (¥) shares
Share-based compensation arrangement by share-based payment award
Options granted (in shares) \| shares	690,023	690,023	24,627,493			25,317,516
Exercises price of options granted (per share)	$ 0.00001				$ 0.00001
Weighted-average grant date fair value per option \| ¥ / shares		¥ 60.77	¥ 48.64			¥ 48.97
Fair value assumptions
Average risk-free rate of interest						3.18%
Dividend yield						0.00%
Time to maturity						10 years
Exercise price					0.00001
Number of options
Options granted (in shares) \| shares	690,023	690,023	24,627,493			25,317,516
Options forfeited (in shares) \| shares						(72,939)
Options outstanding at ending (in shares) \| shares						25,244,577
Options exercisable (in shares) \| shares							9,040,933
Options vested or expected to be vested (in shares) \| shares							25,244,577
Weighted Average Exercise Price
Options granted (per share)	$ 0.00001				0.00001
Options forfeited (per share)					0.00001
Options outstanding at ending (per share)					0.00001
Options exercisable (per share)					0.00001
Options vested or expected to be vested (per share)					$ 0.00001
Weighted Average Remaining Contract Life Years
Options granted (in years)						8 years 6 months
Options forfeited (in years)						8 years 6 months
Options outstanding at ending (in years)						7 years 10 months 21 days
Options exercisable (in years)						7 years 10 months 21 days
Options vested or expected to be vested (in years)						7 years 10 months 21 days
Aggregate Intrinsic Value
Options granted \| ¥							¥ 1,349,930
Options outstanding at ending \| ¥						¥ 1,346,041
Options exercisable \| ¥							482,063
Options vested or expected to be vested \| ¥							¥ 1,346,041
Minimum
Fair value assumptions
Estimated volatility rate						51.32%
Maximum
Fair value assumptions
Estimated volatility rate						53.49%
Stock options
Share-based compensation arrangement by share-based payment award
Expiry period (in years)				10 years
Stock options \| Maximum
Share-based compensation arrangement by share-based payment award
Vesting period (in years)	4 years	4 years

SHARE-BASED COMPENSATION - Compensation costs (Details) ¥ in Thousands	12 Months Ended
	Dec. 31, 2018 CNY (¥)
Recognition of compensation costs
Total compensation costs	¥ 607,381
Unvested awards granted to employees
Recognition of compensation costs
Weighted-average period	1 year 4 months 13 days
Unvested awards granted to employees \| Employees
Recognition of compensation costs
Unrecognized compensation cost	¥ 638,834
Origination and servicing expenses
Recognition of compensation costs
Total compensation costs	150,177
Sales and marketing expenses
Recognition of compensation costs
Total compensation costs	15,700
General and administrative expenses
Recognition of compensation costs
Total compensation costs	¥ 441,504

ORDINARY SHARES AND PREFERRED SHARES (Details)
$ / shares in Units, ¥ in Thousands, $ in Thousands

1 Months Ended

12 Months Ended

Dec. 14, 2018

USD ($)

$ / shares

Dec. 14, 2018

CNY (¥)

May 16, 2018

$ / shares

Sep. 30, 2018

USD ($)

Sep. 30, 2018

CNY (¥)

Dec. 31, 2018

CNY (¥)

Dec. 31, 2018

$ / shares

Apr. 27, 2018

$ / shares

Jan. 31, 2018

CNY (¥)

Apr. 30, 2017

CNY (¥)

Dec. 31, 2016

CNY (¥)

Jul. 24, 2016

ORDINARY SHARES AND PREFERRED SHARES

Common stock, Authorised (in shares)

5,000,000,000

50,000,000

Common stock, Par Value (in dollars per share) | $ / shares

$ 0.00001

$ 0.001

Common stock, Issued (in shares)

287,652,707

Common stock, surrendered (in shares)

100

Common stock, outstanding (in shares)

287,652,707

Share split ratio

0.01

Proceeds received from IPO, net of issuance costs

$ 43,308

¥ 297,860

Redemption, accrual rate per annum

8.00%

Minimum percentage of voting for conversion

0.67

Conversion of convertible redeemable preferred shares to ordinary shares upon IPO | ¥

¥ (4,491,545)

Ordinary shares

ORDINARY SHARES AND PREFERRED SHARES

Common stock, Issued (in shares)

287,652,707

Shares issued (in shares)

198,347,168

IPO

ORDINARY SHARES AND PREFERRED SHARES

Conversion of convertible redeemable preferred shares to ordinary shares upon IPO | ¥

¥ (4,491,545)

IPO | Ordinary shares

ORDINARY SHARES AND PREFERRED SHARES

Shares issued (in shares)

6,200,000

Conversion of convertible redeemable preferred shares to ordinary shares upon IPO | ¥

^[1]

¥ (6)

Class A ordinary shares

ORDINARY SHARES AND PREFERRED SHARES

Common stock, Authorised (in shares)

5,000,000,000

Common stock, Par Value (in dollars per share) | $ / shares

$ 0.00001

Common stock, outstanding (in shares)

247,832,121

Shares issued (in shares)

16,512,156

Number of votes per share

Class A ordinary shares | IPO

ORDINARY SHARES AND PREFERRED SHARES

Shares issued (in shares)

6,200,000

Conversion ratio

Class B ordinary shares

ORDINARY SHARES AND PREFERRED SHARES

Common stock, outstanding (in shares)

39,820,586

Shares issued (in shares)

39,820,586

Number of votes per share

Ordinary shares, conversion ratio to Class A ordinary shares

Class C ordinary shares

ORDINARY SHARES AND PREFERRED SHARES

Shares issued (in shares)

142,014,426

Number of votes per share

Ordinary shares, conversion ratio to Class A ordinary shares

Issuance of convertible redeemable preferred shares to investors | ¥

¥ 531,106

Series A preferred shares

ORDINARY SHARES AND PREFERRED SHARES

Shares issued (in shares)

10,375,744

Preferred equity interest | ¥

¥ 100,000

Series B preferred shares

ORDINARY SHARES AND PREFERRED SHARES

Shares issued (in shares)

24,937,695

Proceeds from issuance of convertible preferred shares

$ 203,500

¥ 1,393,812

Issuance of convertible redeemable preferred shares to investors | ¥

1,393,812

Series A+ preferred shares

ORDINARY SHARES AND PREFERRED SHARES

Shares issued (in shares)

47,792,100

Preferred equity interest | ¥

¥ 1,451,300

¥ 722,770

Issuance of convertible redeemable preferred shares to investors | ¥

2,566,627

Series A and A+ preferred shares

ORDINARY SHARES AND PREFERRED SHARES

Proceeds from issuance of convertible preferred shares | ¥

¥ 0

ADS | IPO

ORDINARY SHARES AND PREFERRED SHARES

Shares issued (in shares)

3,100,000

Share price | $ / shares

$ 16.50

[1]	The amount less than RMB 1 is rounded to zero.

STATUTORY RESERVES AND RESTRICTED NET ASSETS (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
STATUTORY RESERVES AND RESTRICTED NET ASSETS
Minimum after tax profits (as a percent)	10.00%
Reserve registered capital (as a percent)	50.00%
Amount of Appropriations to reserves	¥ 0	¥ 0
Paid-in capital, capital reserve and statutory reserves not available for distribution	1,713,462	590,000
Statutory reserve fund	¥ 12,462	¥ 0

COMMITMENTS AND CONTINGENCIES (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
COMMITMENTS AND CONTINGENCIES
Rental expenses under operating leases	¥ 8,455	¥ 5,432
Future minimum lease payments under non-cancelable operating leases agreements
2019	13,118
2020	8,009
2021	4,280
2022	1,353
2023 and thereafter	¥ 336

NET (LOSS) INCOME PER SHARE (Details) ¥ / shares in Units, ¥ in Thousands, $ in Thousands	5 Months Ended	12 Months Ended
	Dec. 31, 2016 CNY (¥) ¥ / shares shares	Dec. 31, 2018 USD ($) shares	Dec. 31, 2018 CNY (¥) ¥ / shares shares	Dec. 31, 2017 CNY (¥) ¥ / shares shares
Numerator:
Net (loss) income	¥ (20,716)	$ 173,558	¥ 1,193,311	¥ 164,865
Deemed dividend to shareholders upon issuance of Series A and A+ preferred share (note 9		(450,547)	(3,097,733)
Net (loss) income attributable to ordinary shareholders of the Company	¥ (20,716)	$ (276,989)	¥ (1,904,422)	¥ 164,865
Denominator:
Weighted average Class A and Class B ordinary shares outstanding used in computing basic and diluted (loss) income per ordinary share	198,347,168	202,751,277	202,751,277	198,347,168
Basic and diluted net (loss) income per share \| ¥ / shares	¥ (0.10)		¥ (9.39)	¥ 0.83
Stock options
Denominator:
Anti-dilutive securities excluded from the calculation of diluted net loss per share		2,679,463	2,679,463
Preferred Stock
Denominator:
Anti-dilutive securities excluded from the calculation of diluted net loss per share		21,857,895	21,857,895

ADDITIONAL INFORMATION - FINANCIAL STATEMENT SCHEDULE I (Details)	12 Months Ended
	Dec. 31, 2018
ADDITIONAL INFORMATION - FINANCIAL STATEMENT SCHEDULE I
Minimum after tax profits (as a percent)	10.00%
Reserve registered capital (as a percent)	50.00%
Restricted net assets (as a percent)	25.00%

ADDITIONAL INFORMATION - FINANCIAL STATEMENT SCHEDULE I - CONDENSED BALANCE SHEETS (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands	Dec. 31, 2018 USD ($) $ / shares shares	Dec. 31, 2018 CNY (¥) shares	Apr. 27, 2018 $ / shares shares	Dec. 31, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)
ASSETS
Cash and cash equivalents	$ 210,283	¥ 1,445,802		¥ 468,547	¥ 6,173
TOTAL ASSETS	1,068,974	7,349,735		3,099,358
LIABILITIES
Accrued expenses and other liabilities	75,479	518,955		96,737
Amount due to a subsidiary	11,456	78,767		1,283,970
TOTAL LIABILITIES	423,174	2,909,539		2,365,209
EQUITY
Ordinary shares ($0.00001 par value per share, 5,000,000,000 shares authorized, 287,652,707 shares issued and outstanding as of December 31, 2018)	3	20
Additional paid-in capital	707,840	4,866,756
Accumulated deficit	(62,579)	(430,263)		144,149
Other comprehensive income	536	3,683
TOTAL EQUITY	645,800	4,440,196		734,149	¥ (20,716)
TOTAL LIABILITIES AND EQUITY	$ 1,068,974	¥ 7,349,735		¥ 3,099,358
Stockholders' Equity, Other Disclosures
Ordinary shares, par value (in dollars per share) \| $ / shares	$ 0.00001		$ 0.001
Ordinary shares, authorized (in shares)	5,000,000,000	5,000,000,000	50,000,000
Ordinary shares, issued (in shares)	287,652,707	287,652,707	1
Ordinary shares, outstanding (in shares)	287,652,707	287,652,707	1
360 Finance, Inc \| Reportable legal entities
ASSETS
Cash and cash equivalents	$ 48,892	¥ 336,154
Amount due from a subsidiary	198,257	1,363,117
Investments in subsidiaries and VIEs	402,376	2,766,538
TOTAL ASSETS	649,525	4,465,809
LIABILITIES
Accrued expenses and other liabilities	1,692	11,632
Amount due to a subsidiary	2,033	13,981
TOTAL LIABILITIES	3,725	25,613
EQUITY
Ordinary shares ($0.00001 par value per share, 5,000,000,000 shares authorized, 287,652,707 shares issued and outstanding as of December 31, 2018)	3	20
Additional paid-in capital	707,840	4,866,756
Accumulated deficit	(62,579)	(430,263)
Other comprehensive income	536	3,683
TOTAL EQUITY	645,800	4,440,196
TOTAL LIABILITIES AND EQUITY	$ 649,525	¥ 4,465,809
Stockholders' Equity, Other Disclosures
Ordinary shares, par value (in dollars per share) \| $ / shares	$ 0.00001
Ordinary shares, authorized (in shares)	5,000,000,000	5,000,000,000
Ordinary shares, issued (in shares)	287,652,707	287,652,707
Ordinary shares, outstanding (in shares)	287,652,707	287,652,707

ADDITIONAL INFORMATION - FINANCIAL STATEMENT SCHEDULE I - CONDENSED STATEMENTS OF OPERATIONS (Details) ¥ in Thousands, $ in Thousands	5 Months Ended	12 Months Ended
	Dec. 31, 2016 CNY (¥)	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 CNY (¥)
Operating costs and expenses	¥ (30,301)	$ (407,608)	¥ (2,802,506)	¥ (577,545)
Interest income	3	1,458	10,026	2,422
Foreign exchange losses		(373)	(2,563)
(Loss) Income before income tax benefit (expense)	(28,640)	241,387	1,659,671	213,043
Income tax expenses	7,924	(67,829)	(466,360)	(48,178)
Net (loss) income	(20,716)	173,558	1,193,311	164,865
Deemed dividend		(450,547)	(3,097,733)
Net (loss) income attributable to ordinary shareholders of the Company	¥ (20,716)	(276,989)	(1,904,422)	¥ 164,865
360 Finance, Inc \| Reportable legal entities
Operating costs and expenses		(1,508)	(10,367)
Interest income		27	187
Foreign exchange losses		(1,676)	(11,518)
Net loss before taxes and income from equity in subsidiaries and VIEs		(3,157)	(21,698)
Equity in earnings of subsidiaries and VIEs		176,715	1,215,009
(Loss) Income before income tax benefit (expense)		173,558	1,193,311
Net (loss) income		173,558	1,193,311
Deemed dividend		(450,547)	(3,097,733)
Net (loss) income attributable to ordinary shareholders of the Company		$ (276,989)	¥ (1,904,422)

ADDITIONAL INFORMATION - FINANCIAL STATEMENT SCHEDULE I - CONDENSED STATEMENTS OF COMPREHENSIVE INCOME OR LOSS (Details) ¥ in Thousands, $ in Thousands		2 Months Ended	3 Months Ended	5 Months Ended	12 Months Ended
	Jul. 31, 2016 CNY (¥)	Sep. 30, 2016 CNY (¥)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 CNY (¥)
Net income				¥ (20,716)	$ 173,558	¥ 1,193,311	¥ 164,865
Other comprehensive income, net of tax of nil:
Foreign currency translation adjustment					536	3,683
Other comprehensive income					536	3,683
Total comprehensive income				(20,716)	174,094	1,196,994	164,865
Deemed dividend					(450,547)	(3,097,733)
Comprehensive (loss) income attributable to ordinary shareholders				¥ (20,716)	(276,453)	(1,900,739)	164,865
Other comprehensive income, tax	¥ 0	¥ 0	¥ 0			0	¥ 0
360 Finance, Inc \| Reportable legal entities
Net income					173,558	1,193,311
Other comprehensive income, net of tax of nil:
Foreign currency translation adjustment					536	3,683
Other comprehensive income					536	3,683
Total comprehensive income					174,094	1,196,994
Deemed dividend					(450,547)	(3,097,733)
Comprehensive (loss) income attributable to ordinary shareholders					$ (276,453)	(1,900,739)
Other comprehensive income, tax						¥ 0

ADDITIONAL INFORMATION - FINANCIAL STATEMENT SCHEDULE I - CONDENSED STATEMENTS OF CASH FLOWS (Details) ¥ in Thousands, $ in Thousands	5 Months Ended	12 Months Ended
	Dec. 31, 2016 CNY (¥)	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 CNY (¥)
Cash Flows from Operating Activities:
Net (loss) income	¥ (20,716)	$ 173,558	¥ 1,193,311	¥ 164,865
Changes in operating assets and liabilities
Accrued expenses and other current liabilities	11,645	60,749	417,678	85,092
Net cash (used in) provided by operating activities	(68,486)	41,468	285,116	(110,974)
Cash Flows from Investing Activities:
Net cash (used in) provided by investing activities	(2,391)	47,654	327,649	(1,204,269)
Cash Flows from Financing Activities:
Proceeds from issuance of ordinary share upon IPO		47,595	327,236
Payment of IPO costs		(3,651)	(25,103)
Proceeds from series B convertible redeemable preferred shares		202,722	1,393,812
Net cash provided by financing activities	77,050	66,531	457,430	2,265,499
Effect of foreign exchange rate changes		(1,895)	(13,028)
Net increase in cash and cash equivalents	6,173	153,758	1,057,167	950,256
Cash, cash equivalents, and restricted cash, beginning of year		139,107	956,429	6,173
Cash, cash equivalents, and restricted cash, end of year	¥ 6,173	292,865	2,013,596	¥ 956,429
360 Finance, Inc \| Reportable legal entities
Cash Flows from Operating Activities:
Net (loss) income		173,558	1,193,311
Adjustments to reconcile net income to net cash used in operating activities:
Equity in earnings of subsidiaries and VIEs		(176,715)	(1,215,009)
Changes in operating assets and liabilities
Accrued expenses and other current liabilities		1,245	8,559
Amounts due from a subsidiary		(195,858)	(1,346,627)
Net cash (used in) provided by operating activities		(197,770)	(1,359,766)
Cash Flows from Financing Activities:
Proceeds from issuance of ordinary share upon IPO		47,595	327,236
Payment of IPO costs		(1,760)	(12,100)
Proceeds from series B convertible redeemable preferred shares		(202,722)	(1,393,812)
Net cash provided by financing activities		248,557	1,708,948
Effect of foreign exchange rate changes		(1,895)	(13,028)
Net increase in cash and cash equivalents		48,892	336,154
Cash, cash equivalents, and restricted cash, end of year		$ 48,892	¥ 336,154