0001104659-22-052204 | 20-F | XBRL Viewer

Total loans

Loans receivable

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Document and Entity Information	12 Months Ended
Document and Entity Information	Dec. 31, 2021 shares
Document and Entity Information
Entity Registrant Name	360 DigiTech, Inc.
Entity Central Index Key	0001741530
Document Type	20-F
Document Registration Statement	false
Document Annual Report	true
Document Transition Report	false
Document Shell Company Report	false
Document Period End Date	Dec. 31, 2021
Entity File Number	001-38752
Entity Incorporation, State or Country Code	E9
Amendment Flag	false
Entity Address, Address Line One	7/F Lujiazui Finance Plaza
Entity Address, Address Line Two	No. 1217 Dongfang Road
Entity Address, Address Line Three	Pudong New Area
Entity Address, City or Town	Shanghai
Entity Address, Postal Zip Code	200122
Entity Address, Country	CN
Current Fiscal Year End Date	--12-31
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Document Accounting Standard	U.S. GAAP
Entity Shell Company	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	FY
Auditor Name	Deloitte Touche Tohmatsu Certified Public Accountants LLP
Auditor Location	Shanghai, China
Auditor Firm ID	1113
ADS
Document and Entity Information
Title of 12(b) Security	American depositary shares, eachrepresenting two Class A ordinary shares
Trading Symbol	QFIN
Security Exchange Name	NASDAQ
Ordinary shares.
Document and Entity Information
Entity Common Stock, Shares Outstanding	310,486,975
Class A ordinary shares
Document and Entity Information
Title of 12(b) Security	Class A ordinary shares, par valueUS$0.00001 per share*
No Trading Symbol Flag	true
Entity Common Stock, Shares Outstanding	270,666,389
Class B ordinary shares
Document and Entity Information
Entity Common Stock, Shares Outstanding	39,820,586
Business Contact
Document and Entity Information
Entity Address, Address Line One	7/F Lujiazui Finance Plaza
Entity Address, Address Line Two	No. 1217 Dongfang Road
Entity Address, Address Line Three	Pudong New Area
Entity Address, City or Town	Shanghai
Entity Address, Postal Zip Code	200122
Entity Address, Country	CN
Contact Personnel Name	Alex Xu
City Area Code	+86 10
Local Phone Number	5244 7655
Contact Personnel Email Address	alex_xu@360shuke.com

CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)
Current assets:
Cash and cash equivalents	¥ 6,116,360	$ 959,790	¥ 4,418,416
Restricted cash (including RMB 348,976 and RMB 657,075 from the consolidated trusts as of December 31, 2020 and 2021, respectively)	2,643,587	414,836	2,355,850
Security deposit prepaid to third-party guarantee companies	874,886	137,289	915,144
Funds receivable from third party payment service providers	153,151	24,033	131,464
Accounts receivable and contract assets, net (net of allowance of RMB 217,306 and RMB 287,538 as of December 31, 2020 and 2021, respectively)	3,097,254	486,027	2,394,528
Financial assets receivable, net (net of allowance of RMB 322,094 and RMB 432,658 as of December 31, 2020 and 2021, respectively)	3,806,243	597,283	3,565,482
Amounts due from related parties (net of allowance of RMB 10,333 and RMB 99,962 as of December 31, 2020 and 2021, respectively)	837,324	131,394	193,305
Loans receivable, net (including RMB 6,447,233 and RMB 8,646,950 from the consolidated trusts as of December 31, 2020 and 2021, respectively)	9,844,481	1,544,814	7,500,629
Prepaid expenses and other assets (including RMB 101,729 and RMB 104,515 from the consolidated trusts as of December 31, 2020 and 2021, respectively)	383,937	60,246	401,224
Total current assets	27,757,223	4,355,712	21,876,042
Non-current assets:
Accounts receivable and contract assets, net-noncurrent (net of allowance of RMB 38,521 and RMB 28,374 as of December 31, 2020 and 2021, respectively)	223,474	35,068	307,937
Financial assets receivable, net-noncurrent (net of allowance of RMB 68,740 and RMB 60,988 as of December 31, 2020 and 2021, respectively)	597,965	93,834	645,326
Amounts due from related parties (net of allowance of RMB nil and RMB 22,055 as of December 31, 2020 and 2021, respectively)	140,851	22,103
Loans receivable, net-noncurrent (including RMB 37,157 and RMB 1,829,804 from the consolidated trusts as of December 31, 2020 and 2021)	2,859,349	448,694	87,685
Property and equipment, net	24,941	3,914	19,360
Land use rights, net	1,018,908	159,889
Intangible assets	4,961	778	3,403
Deferred tax assets	834,717	130,985	1,398,562
Other non-current assets	42,606	6,686	48,990
Total non-current assets	5,747,772	901,951	2,511,263
TOTAL ASSETS	33,504,995	5,257,663	24,387,305
Current liabilities:
Payable to investors of the consolidated trusts-current	2,304,518	361,629	3,117,634
Accrued expenses and other current liabilities	2,258,329	354,381	809,761
Amounts due to related parties	214,057	33,590	71,562
Short term loans	397,576	62,388	186,800
Guarantee liabilities-stand ready	4,818,144	756,072	4,173,497
Guarantee liabilities-contingent	3,285,081	515,501	3,543,454
Income tax payable	624,112	97,937	1,227,314
Other tax payable	241,369	37,876	254,486
Total current liabilities	14,143,186	2,219,374	13,384,508
Deferred tax liabilities	121,426	19,054	37,843
Payable to investors of the consolidated trusts-noncurrent	4,010,597	629,350	1,468,890
Other long-term liabilities	13,177	2,068	14,974
Total non-current liabilities	4,145,200	650,472	1,521,707
TOTAL LIABILITIES	18,288,386	2,869,846	14,906,215
Commitments and Contingencies (Note 17)
SHAREHOLDERS' EQUITY
Ordinary shares ($0.00001 par value per share 5,000,000,000 shares authorized, 309,833,035 shares issued and 304,453,780 shares outstanding as of December 31, 2020, and 315,433,018 shares issued and 310,486,975 shares outstanding as of December 31, 2021, respectively)	22	3	21
Additional paid-in capital	5,672,267	890,102	5,417,406
Retained earnings	9,642,506	1,513,120	4,137,542
Other comprehensive loss	(110,932)	(17,408)	(74,391)
TOTAL 360 DIGITECH INC EQUITY	15,203,863	2,385,817	9,480,578
Non-controlling interests	12,746	2,000	512
TOTAL EQUITY	15,216,609	2,387,817	9,481,090
TOTAL LIABILITIES AND EQUITY	¥ 33,504,995	$ 5,257,663	¥ 24,387,305

CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands	Dec. 31, 2021 CNY (¥) shares	Dec. 31, 2020 CNY (¥) shares
Restricted Cash	¥ 2,643,587	¥ 2,355,850
Accounts receivable and contract assets, allowance	287,538	217,306
Financial assets receivable, allowance	432,658	322,094
Amounts due from related parties, current, allowance	99,962	10,333
Amounts due from related parties, non current, allowance	22,055	0
Loans receivable, net	9,844,481	7,500,629
Prepaid expenses and other assets	383,937	401,224
Accounts receivable and contract assets, net-noncurrent, allowance	28,374	38,521
Financial assets receivable, net-noncurrent, allowance	60,988	68,740
Loans receivable, net-noncurrent	¥ 2,859,349	¥ 87,685
Ordinary shares, authorized (in shares) \| shares	5,000,000,000	5,000,000,000
Ordinary shares, issued (in shares) \| shares	315,433,018	309,833,035
Ordinary shares, outstanding (in shares) \| shares	310,486,975	304,453,780
Consolidated Trusts
Restricted Cash	¥ 657,075	¥ 348,976
Loans receivable, net	8,646,950	6,447,233
Prepaid expenses and other assets	104,515	101,729
Loans receivable, net-noncurrent	¥ 1,829,804	¥ 37,157

CONSOLIDATED STATEMENTS OF OPERATIONS ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021 CNY (¥) ¥ / shares shares	Dec. 31, 2021 USD ($) $ / shares shares	Dec. 31, 2020 CNY (¥) ¥ / shares shares	Dec. 31, 2019 CNY (¥) ¥ / shares shares
Revenue, net of value-added tax and related surcharges:
Total net revenue	¥ 16,635,645	$ 2,610,495	¥ 13,563,954	¥ 9,219,847
Operating costs and expenses:
Facilitation, origination and servicing (including costs charged by related parties of RMB 47,203, RMB 93,178 and RMB 142,325 for the years ended December 31, 2019, 2020 and 2021, respectively)	2,252,157	353,413	1,600,564	1,083,372
Funding costs	337,426	52,950	595,623	344,999
Sales and marketing (including expenses charged by related parties of RMB 57,319, RMB 40,030 and RMB 367,320 for the years ended December 31, 2019, 2020 and 2021, respectively)	2,090,374	328,025	1,079,494	2,851,519
General and administrative (including expenses charged by related parties of RMB 24,540, RMB 10,673 and RMB 13,409 for the years ended December 31, 2019, 2020 and 2021, respectively)	557,295	87,452	455,952	428,189
Provision for loans receivable	965,419	151,495	698,701	486,991
Provision for financial assets receivable (including provision generated from related parties of RMB 15,236, RMB 26,337 and RMB 807 for the years ended December 31, 2019, 2020 and 2021, respectively)	243,946	38,280	312,058	166,176
Provision for accounts receivable and contract assets (including provision charged by related parties of RMB 35,276, RMB 75,070 and RMB 124,095 for the years ended December 31, 2019, 2020 and 2021, respectively)	324,605	50,938	237,277	230,280
Provision for contingent liabilities	3,078,224	483,041	4,794,127
Expense on guarantee liabilities (including provision charged by related parties of RMB 67,587 for the year ended December 31, 2019) \| ¥				734,730
Total operating costs and expenses	9,849,446	1,545,594	9,773,796	6,326,256
Income from operations	6,786,199	1,064,901	3,790,158	2,893,591
Interest (expense) income, net	126,256	19,812	77,169	(41,707)
Foreign exchange (loss) gain	35,549	5,578	101,534	(24,875)
Investment income	10,115	1,587
Other income, net	64,590	10,136	112,884	140,278
Income before income tax expense	7,022,709	1,102,014	4,081,745	2,967,287
Income tax expense	(1,258,196)	(197,438)	(586,036)	(465,983)
Net income	5,764,513	904,576	3,495,709	2,501,304
Net loss attributable to non-controlling interests	17,212	2,701	897	291
Net income attributable to ordinary shareholders of the Company	¥ 5,781,725	$ 907,277	¥ 3,496,606	¥ 2,501,595
Net income per ordinary share attributable to ordinary shareholders of 360 DigiTech, Inc.
Basic \| (per share)	¥ 18.82	$ 2.95	¥ 11.72	¥ 8.66
Diluted \| (per share)	¥ 17.99	$ 2.82	¥ 11.40	¥ 8.31
Weighted average shares used in calculating net income per ordinary share
Basic (in shares)	307,265,600	307,265,600	298,222,207	288,827,604
Diluted (in shares)	321,397,753	321,397,753	306,665,099	300,938,470
ADS
Net income per ordinary share attributable to ordinary shareholders of 360 DigiTech, Inc.
Basic \| (per share)	¥ 37.64	$ 5.90	¥ 23.44	¥ 17.32
Diluted \| (per share)	¥ 35.98	$ 5.64	¥ 22.80	¥ 16.62
Credit driven services
Revenue, net of value-added tax and related surcharges:
Total net revenue	¥ 10,189,167	$ 1,598,902	¥ 11,403,675	¥ 8,013,391
Loan facilitation and servicing fees-capital heavy
Revenue, net of value-added tax and related surcharges:
Total net revenue	2,326,027	365,004	4,596,555	6,273,131
Financing income
Revenue, net of value-added tax and related surcharges:
Total net revenue	2,184,128	342,737	2,184,180	1,309,616
Releasing of guarantee liabilities
Revenue, net of value-added tax and related surcharges:
Total net revenue	5,583,135	876,116	4,506,935	285,407
Other services fees.
Revenue, net of value-added tax and related surcharges:
Total net revenue	95,877	15,045	116,005	145,237
Platform services
Revenue, net of value-added tax and related surcharges:
Total net revenue	6,446,478	1,011,593	2,160,279	1,206,456
Loan facilitation and servicing fees-capital light
Revenue, net of value-added tax and related surcharges:
Total net revenue	5,677,941	890,993	1,826,654	814,581
Referral services
Revenue, net of value-added tax and related surcharges:
Total net revenue	620,317	97,341	265,300	375,551
Other services fees
Revenue, net of value-added tax and related surcharges:
Total net revenue	¥ 148,220	$ 23,259	¥ 68,325	¥ 16,324

CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenue from related parties	¥ 2,178,561	¥ 346,378	¥ 1,037,480
Facilitation, origination and servicing costs charged by related parties	142,325	93,178	47,203
Sales and marketing expenses charged by related parties	367,320	40,030	57,319
General and administrative expenses charged by related parties	13,409	10,673	24,540
Provision for financial asset receivable from related parties	807	26,337	15,236
Provision for accounts receivable and contract assets from related parties	124,095	75,070	35,276
Provision charged by related parties			67,587
Loan facilitation and servicing fees-capital heavy
Revenue from related parties	93	121,933	791,482
Loan facilitation and servicing fees-capital light
Revenue from related parties	2,160,856	214,296	48,747
Referral services
Revenue from related parties	7,670	10,149	197,018
Other services fees
Revenue from related parties	¥ 8,571	¥ 0	¥ 0

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME OR LOSS ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME OR LOSS
Net income	¥ 5,764,513	$ 904,576	¥ 3,495,709	¥ 2,501,304
Other comprehensive income, net of tax of nil:
Foreign currency translation adjustment	(36,541)	(5,734)	(99,297)	21,223
Other comprehensive income(loss)	(36,541)	(5,734)	(99,297)	21,223
Total comprehensive income	5,727,972	898,842	3,396,412	2,522,527
Net loss attributable to non-controlling interests	17,212	2,701	897	291
Comprehensive income attributable to ordinary shareholders	¥ 5,745,184	$ 901,543	¥ 3,397,309	¥ 2,522,818

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income (loss) and other comprehensive income (loss), attributable to noncontrolling interests. Excludes changes in equity resulting from investments by owners and distributions to owners.

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- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income. Excludes changes in equity resulting from investments by owners and distributions to owners.

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- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

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+ Details

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME OR LOSS (Parenthetical) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME OR LOSS
Other comprehensive income, tax	¥ 0	¥ 0	¥ 0

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

Ordinary shares.

CNY (¥)

Additional Paid-in capital

CNY (¥)

Accumulated (deficit)/Retained earnings

Adjustment

CNY (¥)

Accumulated (deficit)/Retained earnings

CNY (¥)

Other Comprehensive Income (loss)

CNY (¥)

Non-controlling Interests

CNY (¥)

Adjustment

CNY (¥)

USD ($)

Balance at Dec. 31, 2018

¥ 20

^[1]

¥ 4,866,756

¥ (430,263)

¥ 3,683

¥ 4,440,196

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

287,652,707

Share-based compensation

250,428

Issuance of ordinary shares (in shares) | shares

5,768,093

Other comprehensive income (loss)

21,223

Contribution by non-controlling interests

¥ 1,579

1,579

Net income (loss)

2,501,595

(291)

2,501,304

Balance at Dec. 31, 2019

¥ 20

^[1]

5,117,184

2,071,332

24,906

1,288

7,214,730

Balance (in shares) at Dec. 31, 2019 | shares

293,420,800

Share-based compensation

301,161

Issuance of ordinary shares

¥ 1

^[1]

Issuance of ordinary shares (in shares) | shares

11,032,980

Other comprehensive income (loss)

(99,297)

Contribution by non-controlling interests

129

Net income (loss)

3,496,606

(897)

3,495,709

Acquisition of non-controlling interests

(939)

(8)

(947)

Balance at Dec. 31, 2020

¥ 21

^[1]

5,417,406

¥ (1,430,396)

4,137,542

(74,391)

512

¥ (1,430,396)

¥ 9,481,090

Balance (in shares) at Dec. 31, 2020 | shares

304,453,780

309,833,035

Share-based compensation

253,922

¥ 253,922

Issuance of ordinary shares

¥ 1

^[1]

Issuance of ordinary shares (in shares) | shares

6,033,212

Dividends to shareholders

(276,761)

Other comprehensive income (loss)

(36,541)

$ (5,734)

Cancellation of ordinary shares | shares

(17)

Disposal of a subsidiary

(939)

554

(385)

Contribution by non-controlling interests holders to a subsidiary

30,000

Net income (loss)

5,781,725

(17,212)

5,764,513

904,576

Balance at Dec. 31, 2021

¥ 22

^[1]

¥ 5,672,267

¥ 9,642,506

¥ (110,932)

¥ 12,746

¥ 15,216,609

$ 2,387,817

Balance (in shares) at Dec. 31, 2021 | shares

310,486,975

315,433,018

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

CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)
Cash Flows from Operating Activities:
Net income	¥ 5,764,513	$ 904,576	¥ 3,495,709	¥ 2,501,304
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and reduction in right-of-use assets	65,973	10,353	36,063	7,642
Share-based compensation	253,922	39,846	301,161	250,428
Gain on disposal of investment	(10,115)	(1,587)
Provision for loan principal, financial assets receivables and other receivables	1,553,970	243,852	1,248,036	883,447
Provision for contingent liabilities	3,078,225	483,041	4,794,127
Foreign exchange (gain) loss	(35,550)	(5,579)	(101,534)	19,461
Changes in operating assets and liabilities
Funds receivable from third party payment service providers	(21,687)	(3,403)	(12,604)	23,762
Accounts receivable and contract assets	(819,931)	(128,665)	(512,799)	(755,132)
Financial assets receivable	(436,538)	(68,502)	(2,464,534)	(929,143)
Prepaid expenses and other assets	11,378	1,785	253,185	(536,940)
Security deposit prepaid to third-party guarantee companies	40,258	6,317	17,839	(137,283)
Deferred tax	647,429	101,596	(326,542)	(713,106)
Other non-current assets	(27,846)	(4,370)	(18,423)	(55,362)
Amounts due (from) to related parties	(776,431)	(121,839)	199,995	(68,138)
Guarantee liabilities	(2,691,248)	(422,316)	(1,912,852)	1,547,680
Income tax payable	(603,202)	(94,656)	171,095	624,153
Other tax payable	(13,117)	(2,058)	52,056	99,378
Land use rights, net	(1,036,178)	(162,599)
Accrued expenses and other current liabilities	897,670	140,865	88,842	206,801
Other long-term liabilities	(1,799)	(282)	(16,210)	31,184
Interest receivable/ payable	(49,996)	(7,845)	33,200	(27,061)
Net cash provided by operating activities	5,789,700	908,530	5,325,810	2,973,075
Cash Flows from Investing Activities:
Purchase of property and equipment and intangible assets	(25,307)	(3,971)	(15,272)	(25,558)
Loans provided to related parties	(50,000)	(7,846)
Repayment of loans provided to related parties	50,000	7,846
Investment in loans receivable	(40,168,794)	(6,303,360)	(38,720,482)	(26,339,327)
Collection of investment in loans receivable	34,131,231	5,355,935	39,628,524	17,504,444
Disposal of subsidiaries and other business units, net of cash received	(1,458)	(229)
Net cash (used in) provided by investing activities	(6,064,328)	(951,625)	892,770	(8,860,441)
Cash Flows from Financing Activities:
Repayment of short term loans	(150,000)	(23,538)	(200,000)	(1,500,000)
Proceeds from short-term loans	364,053	57,128	186,800	1,700,000
Loans from Qibutianxia				300,000
Loans payment to Qibutianxia				(300,000)
Cash received from investors of the consolidated trusts	5,928,773	930,354	3,092,101	8,360,230
Cash paid to investors of the consolidated trusts	(4,193,425)	(658,040)	(6,360,483)	(847,534)
Contribution from non-controlling interests	30,000	4,708	129
Acquisition of non-controlling interests			(947)
Loans received from non-controlling interests	344,487	54,058
Loans payment to non-controlling interests	(60,168)	(9,443)
Cash received from a related party for investment	354,667	55,655
Cash repayment to a related party	(354,667)	(55,655)
Payment of IPO costs				(4,838)
Net cash provided by (used in) financing activities	2,263,720	355,227	(3,282,400)	7,707,858
Effect of foreign exchange rate changes	(3,411)	(536)	2,236	1,762
Net increase in cash and cash equivalents	1,985,681	311,596	2,938,416	1,822,254
Cash, cash equivalents, and restricted cash, beginning of year	6,774,266	1,063,030	3,835,850	2,013,596
Cash, cash equivalents, and restricted cash, end of year	8,759,947	1,374,626	6,774,266	3,835,850
Supplemental disclosure of significant non-cash investing and financing activities:
Income taxes paid	(1,213,913)	(190,489)	(741,490)	(557,295)
Interest paid (not including interest paid to investors of consolidated trusts)	(13,757)	(2,159)	(5,728)	(65,776)
Payables for dividends:	276,991	$ 43,466
Reconciliation to amounts on consolidated balance sheets:
Cash and cash equivalents	6,116,360		4,418,416	2,108,123
Restricted cash	2,643,587		2,355,850	1,727,727
Total cash, cash equivalents, and restricted cash	¥ 8,759,947		¥ 6,774,266	¥ 3,835,850

ORGANIZATION AND PRINCIPAL ACTIVITIES

12 Months Ended

Dec. 31, 2021

ORGANIZATION AND PRINCIPAL ACTIVITIES

ORGANIZATION AND PRINCIPAL ACTIVITIES

1. ORGANIZATION AND PRINCIPAL ACTIVITIES

360 DigiTech, Inc. (the “Company”, previously known as “360 Finance, Inc.”) was incorporated in Cayman Islands with limited liability on April 27, 2018. The Company, its subsidiaries, its consolidated variable interest entities (“VIEs”) (collectively the “Group”) are engaged in matching borrowers with credit demand to a diversified pool of financial institutions with credit to supply through a financial technology platform.

The Company’s significant subsidiaries and its consolidated VIEs as of December 31, 2021 are as follows:


	Date of	Place of
	Incorporation	Incorporation
Subsidiaries
HK Qirui International Technology Company Limited (“HK Qirui”)	June 14, 2018	Hong Kong
Shanghai Qiyue Information & Technology Co., Ltd. (“Qiyue”)	August 7, 2018	PRC
Shanghai Qidi Information Technology Co., Ltd. (“Qidi”)	June 27, 2019	PRC
Beihai Qicheng Information & Technology Co., Ltd. (“Qicheng”)	August 6, 2019	PRC
VIEs and VIEs’ Subsidiaries
Shanghai Qiyu Information & Technology Co., Ltd. (“Qiyu”)	July 25, 2016	PRC
Fuzhou 360 Online Microcredit Co., Ltd. (“Fuzhou Microcredit”)	March 30, 2017	PRC
Fuzhou 360 Financing Guarantee Co., Ltd. (“Fuzhou Guarantee”)	June 29, 2018	PRC
Shanghai 360 Financing Guarantee Co., Ltd. (“Shanghai Guarantee”)	May 20, 2019	PRC

History of the Group and reorganization under identical common ownership

The Group started its business in 2016 through Qiyu, a limited liability company in the People’s Republic of China (“PRC”). In 2018, the Company undertook a series of transactions to redomicile its business from the PRC to the Cayman Islands and established intermediary companies of HK Qirui and Qiyue (“WFOE”) for the purpose of establishing a VIE structure of the Group. The WFOE entered into VIE agreements which effectively provided control to the WFOE over the operations of the VIEs.

The VIE arrangement

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

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

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

Powers of Attorney

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

1. ORGANIZATION AND PRINCIPAL ACTIVITIES - continued

The VIE arrangement - continued

Exclusive Option Agreement

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

Agreements that were entered to transfer economic benefits to the Company

Exclusive Consultation and Services Agreement

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

Loan Agreement

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

Equity Pledge Agreement

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

The Company also has some other sets of VIE contractual arrangements. The arrangements with its significant VIEs include 1) the arrangement among the WFOE, Fuzhou Guarantee and two fully owned subsidiaries of Qibutianxia, and 2) the arrangement among the WFOE, Shanghai Guarantee and two fully owned subsidiaries of Qibutianxia. These sets of the contractual agreements are substantially similar to the set with Qiyu as described above.

1. ORGANIZATION AND PRINCIPAL ACTIVITIES – continued

The VIE arrangement – continued

In April 2021, the contractual arrangements amongst WFOE, Fuzhou Microcredit and Qibutianxia were terminated and Qibutianxia transferred all of its equity interest in Fuzhou Microcredit to Qiyu. As a result, Fuzhou Microcredit became a wholly-owned subsidiary of Qiyu. This transaction had no impact to the consolidated financial statements.

Risks in relation to VIE structure

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

●

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

●

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

●

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

●

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

●

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

●

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

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

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

1. ORGANIZATION AND PRINCIPAL ACTIVITIES – continued

The VIE arrangement - continued

Risks in relation to VIE structure – continued

The following financial statement amounts and balances of the VIEs were included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances. The table below does not include the financial information of the consolidated trusts (see note 2 “Consolidated Trusts”):


	December 31,	December 31,
	2020	2021
	RMB	RMB
ASSETS
Cash and cash equivalents	3,709,740	4,605,851
Restricted cash	2,006,874	1,986,512
Security deposit prepaid to third-party guarantee companies	915,144	874,886
Funds receivable from third party payment service providers	131,464	153,151
Accounts receivable and contract assets, net	2,316,357	2,133,477
Financial assets receivable, net	3,480,605	3,806,243
Amounts due from related parties	178,791	608,924
Loans receivable, net	1,018,124	1,197,532
Prepaid expenses and other assets	202,070	235,780
Accounts receivable and contract assets, net-non current	307,937	217,298
Financial assets receivable, net-non current	645,326	597,965
Amounts due from related parties, non-current	—	121,855
Loans receivable, net-non current	50,528	1,029,545
Property and equipment, net	15,370	15,074
Land use rights, net	—	1,018,908
Intangible assets	1,802	3,972
Deferred tax assets	1,353,420	779,291
Other non-current assets	31,539	27,729
Total Assets	16,365,091	19,413,993

LIABILITIES
Accrued expenses and other current liabilities	771,562	1,820,609
Amounts due to related parties	71,562	94,057
Short term loans	105,238	150,000
Guarantee liabilities	7,724,841	8,103,225
Income tax payable	1,151,275	449,553
Other tax payable	215,906	218,017
Deferred tax liabilities	37,843	65,542
Other long-term liabilities	6,806	10,271
Total liabilities	10,085,033	10,911,274


	Year ended	Year ended	Year ended
	December 31, 2019	December 31, 2020	December 31, 2021
	RMB	RMB	RMB
Net revenue	7,318,362	11,062,032	13,674,223
Net income	1,707,839	2,541,386	5,462,150

1. ORGANIZATION AND PRINCIPAL ACTIVITIES – continued

The VIE arrangement - continued

Risks in relation to VIE structure – continued



	Year ended	Year ended	Year ended
	December 31, 2019	December 31, 2020	December 31, 2021
	RMB	RMB	RMB
Net cash provided by operating activities	2,010,741	3,715,112	5,431,654
Net cash provided by (used in) investing activities	134,286	(1,012,415)	(1,427,958)
Net cash provided by (used in) financing activities	198,242	(94,762)	359,082

The consolidated VIEs contributed 79%, 82% and 82% of the Group’s consolidated revenue for the years ended December 31, 2019, 2020 and 2021, respectively. As of December 31, 2020 and 2021, the consolidated VIEs accounted for an aggregate of 67% and 58%, respectively, of the consolidated total assets, and 68% and 60%, respectively, of the consolidated total liabilities.

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

Relevant PRC laws and regulations restrict the VIEs from transferring a portion of their net assets, equivalent to the balance of its statutory reserve and its share capital, to the Company in the form of loans and advances or cash dividends. Please refer to Note 14 for disclosure of restricted net assets.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2021

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

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

Basis of consolidation

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

Consolidated Trusts

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

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Consolidated Trusts - continued

The Trusts fund loans facilitated by the Group using the funds received from its beneficiaries to the borrowers. The Trusts provide the returns to its beneficiaries through interest payments made by the borrowers. The borrowers are charged with the interests by the Trusts. For the majority of trust, the Group is either entitled to the residual profit in the Trusts or the Group has provided guarantee to the Trusts by agreeing to repurchase any loans that are delinquent for 30 to 90 days from which the Group absorbs the credit risk of the Trusts resulting from borrowers’ delinquencies. The Group determined that the residual profit or the guarantee represents a variable interest in the Trusts through which the Group has the right to receive benefits or the obligation to absorb losses from the Trusts that could potentially be significant to the Trusts. Since the Trusts only invest in the loans facilitated by the Group and the Group continues to service the loans through a service agreement post origination and has the ability to direct default mitigation activities, the Group has the power to direct the activities of the Trusts that most significantly impact the economic performance of the Trusts. As a result, the Group is considered the primary beneficiary of the Trusts and consolidated the Trusts’ assets, liabilities, results of operations and cash flows.

In 2019, the Group received letter of approval for listing and transferring assets based securities (“ABS”) on both Shanghai Stock Exchange and Shenzhen Stock Exchange within the issue scale of RMB 5 billion for each, respectively. In 2020, the Group also received letter of approval for listing and transferring assets based securities (“ABS”) on Shenzhen Stock Exchange within the issue scale of RMB 10 billion. In 2021, the Group also received letter of approval for listing and transferring assets based securities (“ABS”) on Shanghai Stock Exchange and Shenzhen Stock Exchange within the issue scale of RMB 8 billion and RMB 4 billion, respectively. The beneficial rights of RMB 2.3 billion, 1.7 billion and 4.7 billion in trusts were transferred to trust beneficial right asset backed special plans (the “ABS plans”) for the years ended December 31, 2019, 2020 and 2021. The ABS plans were securitized and listed on Shanghai Stock Exchange and Shenzhen Stock Exchange, with terms of one or two years. As of December 31, 2021, the Group held the whole subordinated tranche securities to provide credit enhancement and senior tranche securities with the balance of RMB 602,000 and RMB 794,380, respectively. The underlying trusts were continued to be consolidated by the Group. Senior tranche securities held by external funding partners were recorded as “payable to investors of the consolidated trusts – current” with the balance of RMB 1,765,175 and RMB 2,139,063 as of December 31, 2020 and 2021, respectively and “payable to investors of the consolidated trusts – noncurrent” with the balance of RMB 1,468,890 and RMB 3,903,597 as of December 31, 2020 and 2021, respectively on the consolidated balance sheet.

As of December 31, 2020 and 2021, the balance of delinquent loans repurchased by the Group from the consolidated trusts are RMB 831,203 and RMB 904,586, respectively. As of December 31, 2020 and 2021, the balance of performing loans upon liquidation of certain consolidated trusts repurchased by the Group from the consolidated trusts per the contracts agreed with the counterparty are RMB 17,185 and RMB 12,686, respectively.

For the years ended December 31, 2019, 2020 and 2021, the provision for loan losses of RMB 464,379, RMB 595,047 and RMB 661,402 were charged to the consolidated statements of comprehensive income, respectively. There were RMB 142,882, RMB 603,758 and RMB 1,033,228 of loans written off for the years ended December 31, 2019, 2020 and 2021, respectively.

Interest on loans receivable is accrued and credited to income as earned. The Group determines a loan’s past due status by the number of days that have elapsed since a borrower has failed to make a contractual loan payment. Accrual of interest is generally discontinued when the loan principal and interest are deemed to be uncollectible. In general, loans receivable is identified as uncollectible when it is determined to be not probable that the balance can be collected.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Consolidated Trusts - continued

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


	December 31, 2020	December 31, 2021
	RMB	RMB
ASSETS
Restricted cash	348,976	657,075
Loans receivable, net	6,447,233	8,646,950
Prepaid expenses and other assets	101,729	104,515
Loans receivable, net-noncurrent	37,157	1,829,804
Total Assets	6,935,095	11,238,344

	December 31, 2020	December 31, 2021
	RMB	RMB
LIABILITIES
Payable to investors of the consolidated trusts-current	3,117,634	2,304,518
Accrued expenses and other current liabilities	9,608	5,928
Other tax payable	27,694	34,448
Payable to investors of the consolidated trusts-noncurrent	1,468,890	4,010,597
Total liabilities	4,623,826	6,355,491


	Year ended	Year ended	Year ended
	December 31,	December 31,	December 31,
	2019	2020	2021
	RMB	RMB	RMB
Net revenue	1,279,203	2,089,679	1,704,267
Net income	469,825	899,010	708,908


	Year ended	Year ended	Year ended
	December 31,	December 31,	December 31,
	2019	2020	2021
	RMB	RMB	RMB
Net cash provided by (used in) operating activities	382,620	(674,291)	1,329,554
Net cash (used in) provided by investing activities	(8,989,137)	1,964,538	(4,619,696)
Net cash provided by (used in) financing activities	7,512,696	(3,268,383)	1,735,348

The consolidated trusts contributed 14%, 15% and 10% of the Group’s consolidated revenue for the years ended 2019, 2020 and 2021, respectively. As of December 31, 2020 and December 31, 2021, the consolidated trusts accounted for an aggregate of 28% and 34%, respectively, of the consolidated total assets, and 31% and 35% respectively, of the consolidated total liabilities.

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

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

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Use of estimates

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

Revenue recognition

Through its app and channel partners, the Group provides services through its facilitation of loan transactions between the borrowers and the funding partners through the use of two business models.

The first business model involves the Group providing credit driven services through facilitating loans that are guaranteed by the Group directly or through third-party guarantee companies and insurance companies (referred to as “off-balance capital heavy loans” hereafter), or providing loans through the Consolidated Trusts and Fuzhou Microcredit. In either cases, the Group ultimately bears all the credit risks when the borrowers default.

The second business model involves the Group providing platform services through facilitating loans with no or partial guarantee provided by the Group (referred to as “capital light loans” hereafter) and referral services. In these cases, the Group bears limited credit risks when the borrowers default.

The loans facilitated under both models are with terms of 1~36months (the majority are within the terms of 1~12 months) and with principal of up to RMB500.

Loan facilitation and servicing fees

The Group earns loan facilitation and service fees from both off-balance capital heavy loans and capital light loans. The Group’s services mainly consist of:

Performing customer acquisition, initial credit screening and advanced risk assessment on the borrowers on its mobile platform and matching the funding partners to potential qualified borrowers and facilitating the execution of loan agreements between the parties, referred to as “Loan Facilitation Services” and;

Providing collection and other repayment processing services for the funding partners over the loan term, referred to as “Post Facilitation Services”;

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

The Group charges service fees directly from financial institutional partner based on the contractual agreements. In 2019, the Group started cooperating with insurance companies to provide guarantee for the loans between the borrowers and funding partners. The Group charges guarantee fees from the borrower, including insurance premium collected on behalf of the insurance company.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued

Revenue recognition - continued

Loan facilitation and servicing fees – continued

For the loans the Group is entitled to the full service fee regardless of whether the borrowers choose to early repay or not, the Group has the unconditional right to the consideration. For the loans facilitated with borrowers who have the option of early repayment and upon termination they do not have the obligation to pay the remaining monthly service fees or not have to pay the excessive portion if the total fees are more than 36% of the origination principal on an annualized basis, the Group’s right to consideration for the service fees of facilitation service is conditional on whether or not the borrowers repay in advance.

For off-balance capital heavy loans, the Group enjoys a fixed rate of service fees. For capital light loans, the service fee rate the Group entitled to is subject to adjustment based on the actual default rate of the underlying loans.

Under the off-balance capital heavy loans, the Group also provides a guarantee service to its funding partners whereas in the event of default, the funding partners are entitled to receive unpaid interest and principal from the Group. Given that the Group effectively takes on all of the credit risk of the borrowers and are compensated by the service fees charged, the guarantee is deemed as a service and the guarantee exposure is recognized as a stand-ready obligation in accordance with ASC Topic 460, Guarantees (see accounting policy for Guarantee Liabilities). Under the capital light model, the Group either provides no guarantee or partial guarantee service. Under the partial guarantee scenario, the Group agrees with each institutional funding partner a fixed upper limit of guarantee amount the Group is liable of. If the accumulated defaulted loan amount exceeds the agreed upper limit, the excess portion is borne by the institutional funding partner.

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

●

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

●

Step 2: Identify the performance obligations in the contract

●

Step 3: Determine the transaction price

●

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

●

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

The Group determines that both the funding partners and the borrowers are its customers because they both receive services provided by the Group pursuant to the contractual terms among the Group, the borrowers and the funding partners. For each loan facilitated on the platform, the Group considers the loan facilitation service, post facilitation service and guarantee service (not applicable for arrangements where the Group does not provide guarantee service) as three separate services. Of which, the guarantee service is accounted for in accordance with ASC Topic 460, Guarantees, at fair value. Revenue from the guarantee services is recognized once the Group is released from the underlying risk. Starting from 2020, the Group recognized the stand-ready guarantee liability at the inception of each loan, and it was amortized to “revenue from releasing of guarantee liabilities” over the term of the guarantee (see accounting policy for Guarantee Liabilities).While the post- facilitation service is within the scope of ASC Topic 860, the ASC Topic 606 revenue recognition model is applied due to the lack of definitive guidance in ASC Topic 860. The loan facilitation service and post- facilitation service are two separate performance obligations under ASC 606, as these two deliverables are distinct in that customers can benefit from each service on its own and the Group’s promises to deliver the services are separately identifiable from each other in the contract.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Revenue recognition - continued

Loan facilitation and servicing fees - continued

The Group determines the total transaction price to be the service fees chargeable from the borrowers or the funding partners. The Group’s transaction price includes variable considerations in the form of prepayment risk of the borrowers and service fee allocation rate under capital light model under certain agreements. The Group estimates the prepayment risk of borrowers using the expected value approach on the basis of historical information and current trends of the collection percentage of the borrowers. The service fee allocated to the Group under capital light model would be fluctuated along with the actual default rate of the loans facilitated. The Group uses the service fee allocation rate applicable to the estimated default rate of the underlying loans. The transaction price is allocated amongst the guarantee service, if any, and the other two performance obligations.

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

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

Revenue from releasing of guarantee liabilities

Prior to 2020, guarantee liabilities were reduced by repayments for defaults and only the remaining balance at the expiry of the guarantee term was recognized as revenues from guarantee services. With the adoption of ASC 326 in 2020, the stand-ready guarantee liabilities are released into guarantee revenue over the term of the guarantee (see accounting policy for Guarantee Liabilities). For the years ended December 2019, 2020 and 2021, revenue from guarantee liabilities were RMB 285,407, RMB 4,506,935 and RMB 5,583,135, respectively.

Incentives

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

Financing income

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

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Revenue recognition - continued

Referral service fees

The Group provides the referral services to other platforms, by referring to them the borrowers who have not passed the Group’s credit assessment. Specifically, the Group receives a fixed rate of referral fee from the platforms once the borrowers are accepted by the other funding providers on those platforms. The revenue is recognized once the referral is completed as confirmed by those platforms.

The Group provides the referral services to the financial institutional partner also through the Group’s Intelligence Credit Engine platform, by matching the borrowers and the financial institutional partner. For loans originated through the platform, the Group charges the financial institutional partner a fixed rate of service fees. The revenue is recognized upon receipt of confirmation by the financial institutional partner of loan facilitation at which time the referral service is deemed completed.

For the years ended December 31, 2019, 2020 and 2021, RMB 375,551, RMB 265,300 and RMB 620,317 were generated from the referral service, respectively.

Other service fees

Other service fees mainly pertain to the revenue from late fees from borrowers under off-balance capital heavy loans and capital light loans.

The following table presents the disaggregation of revenue for the years ended December 31, 2019, 2020 and 2021:


	Year ended	Year ended	Year ended	Year ended
	December	December	December	December
	31, 2019	31, 2020	31, 2021	31, 2021
	RMB	RMB	RMB	USD
Credit driven services	8,013,391	11,403,675	10,189,167	1,598,902
Loan facilitation and servicing fees-capital heavy	6,273,131	4,596,555	2,326,027	365,004
Revenue from loan facilitation services	4,396,300	3,160,457	1,399,310	219,582
Revenue from post-facilitation services	1,876,831	1,436,098	926,717	145,422
Financing income	1,309,616	2,184,180	2,184,128	342,737
Revenue from releasing of guarantee liabilities	285,407	4,506,935	5,583,135	876,116
Other services fees	145,237	116,005	95,877	15,045
Platform services	1,206,456	2,160,279	6,446,478	1,011,593
Loan facilitation and servicing fees-capital light	814,581	1,826,654	5,677,941	890,993
Revenue from loan facilitation services	672,982	1,416,715	4,484,632	703,737
Revenue from post-facilitation services	141,599	409,939	1,193,309	187,256
Referral services fees	375,551	265,300	620,317	97,341
Other services fees	16,324	68,325	148,220	23,259
Total net revenue	9,219,847	13,563,954	16,635,645	2,610,495

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Revenue recognition - continued

Accounts receivable and Contract Assets, net

For the loans the Group is entitled to the full service fee regardless of whether the borrowers choose to early repay or not, the Group has the unconditional right to the consideration and an accounts receivable is recorded for the monthly service fees allocated to loan facilitation service that have already been delivered in relation to loans facilitated on the Group’s platform when recognizing revenue from loan facilitation service. For the loans facilitated with borrowers who have the option of early repayment and upon termination they do not have the obligation to pay the remaining monthly service fees or do not have to pay the excessive portion if the total fees are more than 36% of the origination principal on an annualized basis, the Group’s right to consideration for the service fees of facilitation service is conditional on whether or not the borrowers repay in advance. In these instances, the Group records a corresponding contract asset when recognizing revenue from loan facilitation service.

Accounts receivable and contract assets are stated at the historical carrying amount net of write-offs and allowance for collectability in accordance with ASC Topic 310, and from January 1, 2020 ASC Topic 326. The Group established an allowance for uncollectible accounts receivable and contract assets based on estimates, which incorporate historical experience and other factors surrounding the credit risk of specific type of customers which is essentially the expected net default rates used in determining the fair value of guarantee liabilities. The Group evaluates and adjusts its allowance for uncollectible accounts receivable and contract assets on a quarterly basis or more often as necessary.

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

The Group did not recognize any contract liabilities during the periods presented. The amount of the transaction price allocated to performance obligations that are unsatisfied as of December 31, 2020 and 2021 are RMB 1,195,945 and RMB 1,637,484, respectively, all of which pertain to post- facilitation service. Remaining unsatisfied performance obligations that will be recognized as revenue by the Group within the following 12 months are 88% and 88% of the remaining performance obligations as of December 31, 2020 and 2021 respectively, with the remainder recognized thereafter.

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

Revenue recognized for year ended December 31, 2019 from performance obligations satisfied (or partially satisfied) in prior periods pertaining to adjustments to variable consideration due to the change of estimated prepayment rate and service fee allocation rate was immaterial, and for year ended December 31, 2020 and 2021 was RMB 73,394 and RMB 210,818, respectively.

The Group is subject to value-added tax and other surcharges including education surtax and urban maintenance and construction tax, on the services provided in the PRC. The Group has made an accounting policy election to exclude from the measurement of the transaction price all taxes assessed by the governmental authority. Such taxes excluded from revenues are RMB 547,344, RMB 795,388 and RMB 995,060, respectively, for the years ended December 31, 2019, 2020 and 2021.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Allowance for credit losses

On January 1, 2020, the Group adopted ASC 326, Financial Instruments—Credit Losses, which requires recognition of allowances upon origination or acquisition of financial assets at an estimate of expected credit losses over the contractual term of the financial assets (the current expected credit loss or the “CECL” model).

The Group’s financial assets subject to the CECL model mainly include: loans receivable, accounts receivable, contract assets and financial assets receivable, and the allowance for these financial assets is driven by estimated default rate of underlying loans. The Group does not assign internal risk ratings to loans facilitated as they are of small balance and homogeneous. The Group estimates the default rate of loans on a pool basis by taking into consideration the historical delinquency rate by vintage, adjusted by specific risks for loans within each vintage, correlated industrial and macro-economic factors, and other pertinent information such as CPI and delinquent loan collection rate in assessing future performance of the loan portfolio. The Group monitors the delinquency status by vintage of origination and write off delinquent loans timely when the loans become uncollectible.

The adoption of CECL model does not change the Group’s method used to estimate loan losses. The allowance for loans receivable is calculated based on estimated default rate of loans facilitated through the Consolidated Trusts or Fuzhou Microcredit. The allowance for accounts receivable, contract assets and financial assets receivable is assessed in accordance with the estimated default rate of the underlying off-balance loans facilitated. Since the allowance is recorded at loan inception based on the estimated collectability over the entire loan tenure and adjusted in each subsequent reporting period based on update of relevant information, the adoption of the CECL model does not have material impact on the timing and amount of allowance recognized for these financial assets.

Other financial receivables subject to the CECL model mainly include security deposit prepaid to third party guarantee companies, funds receivable from third party payment service providers, receivables from related parties, and security deposit paid to insurance companies, which are of short term and shows no historical default record. The Group determines no allowance is needed for these receivables, except for receivables from related parties as funding partners, which are based on the estimated default rate of underlying loans as discussed above.

The adoption of ASC 326 also requires the Group to record financial guarantee on a gross basis. As such, the Group recognized a separate contingent guarantee liability with an allowance for credit losses following the CECL model at the inception of loans facilitated with guarantee services provided (see accounting policy for Guarantee Liabilities). The allowance is an estimate of future net-payout by the Group upon borrowers’ default, which is ultimately based on the same estimated default rate of loans facilitated as discussed above.

Cash and cash equivalents

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

Restricted cash

Restricted cash represents:

(i)

Deposit to funding banks which is used to secure timely loan repayment. As of December 31, 2020 and 2021, the amount of restricted cash related to deposit to the funding banks is RMB 2,006,874 and RMB 1,986,512, respectively.

(ii)

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

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Security deposit prepaid to third-party guarantee companies

Security deposit prepaid to third-party guarantee companies mainly represents deposit prepaid to licensed third-party vendors the Group cooperates with to provide guarantee to secure timely loan repayment for funding partners.

Funds receivable from third party payment service providers

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

(a)

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

(b)

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

(c)

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

Fair value

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

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

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

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

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

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

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Fair value - continued

As of December 31, 2021, the Group’s long-term financial instruments that are not reported at fair value on balance sheet include loans receivable, payable to investors of the consolidated trusts, accounts receivable and contract assets and financial assets receivable. Fair values of these financial instruments are estimated using a discounted cash flow model based on contractual cash flows. The fair values of loans receivable, accounts receivable and contract assets, financial assets receivable are classified as Level 3 fair value measurement due to the significant unobservable inputs concerning the estimation of default rate. The fair value of payable to investors of the consolidated trusts is classified as Level 2 fair value measurement.

As of December 31, 2021, the differences between fair values and carrying amount for loans receivable and payable to investors are due to the discount factor or interests in future periods, and the fair value approximates the carrying amount. For accounts receivable and contract assets, financial assets receivable, the differences are due to the discount factor solely and the fair value approximates the carrying amount.

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

Loans receivable

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

The allowance for loan losses is determined at a level believed to be reasonable to absorb probable losses inherent in the portfolio as of each balance sheet date. The allowance is provided based on an assessment performed on a portfolio basis. All loans are assessed collectively depending on factors such as delinquency rate, size, and other risk characteristics of the portfolio.About adoption of ASC 326, see accounting policy of “Allowance for credit losses”.

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

Property and equipment, net

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


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

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

Depreciation expense on property and equipment for the years ended December 31, 2019, 2020 and 2021 were RMB 6,837, RMB 10,439 and RMB 13,483, respectively.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Land use rights, net

Land use rights represent lease prepayments to the local government authorities and are recorded at cost less accumulated amortization. Amortization is provided on a straight-line basis over the term of the agreement, which is 50 years. Under ASC 842, land use rights were identified as operating lease right-of-use assets, which is separately disclosed as “Land use rights, net” in the Group’s consolidated balance sheets.

Guarantee liabilities

For the loans facilitated through the loan facilitation business, the Group provides a guarantee service to its financial institutional partner whereas in the event of default, the funding partners are entitled to receive unpaid interest and principal from the Group. In general, any unpaid interest and principal are paid when the borrower does not repay as scheduled.

From February 2018, to follow the recent regulation change, particularly the Circular 141 which came into effect in December 2017, the Group began to involve third-party licensed vendors including financing guarantee companies and insurance companies to provide guarantee for new loans facilitated for certain financial institutional partner. Under the cooperation with financing guarantee companies, these guarantee companies initially reimburses the loan principal and interest to the funding partners upon borrower’s default. Although the Group does not have direct contractual obligation to the funding partners for defaulted principal and interest, the Group provides back to back guarantee to the licensed guarantee companies. As agreed in the back to back guarantee contract, the Group would pay the licensed guarantee companies for actual losses incurred based on defaulted principal and interest. Under the cooperation with insurance companies, the Company is obligated to provide funding in the form of security deposit with the insurance companies which is used to compensate the funding partners for borrowers’ default. Given that the Group effectively takes on all of the credit risk of the borrowers, the Group recognizes a stand ready obligation for its guarantee exposure in accordance with ASC Topic 460.

Under capital light model, in the condition of no guarantee service provided, the Group does not take any credit risk and not record any guarantee liabilities associated with those loans. Besides, in the condition of partial guarantee, the amount of guarantee exposure is immaterial for the years ended December 31, 2020 and 2021.

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

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Guarantee liabilities - continued

On January 1, 2020, the Group adopted ASC 326, Financial Instruments—Credit Losses, which requires gross accounting for guarantee liability. As a result, at inception of the guarantee, the Group will recognize both a stand-ready guarantee liability under ASC 460 with an associated financial assets receivable, and a contingent guarantee liability with an allowance for credit losses under Current expected credit loss (“CECL”) model. Subsequent to the initial recognition, the ASC 460 stand-ready guarantee is released into guarantee revenue on a straight-line basis over the term of the guarantee, while the contingent guarantee is reduced by the payouts made by the Group to compensate the investors upon borrowers’ default. Allowance for credit losses under CECL model was included in “Provision for contingent liabilities” and revalued at each period end to reflect updated estimation for future net pay-out. Upon adoption, the Group recognized the cumulative effect of approximately RMB1.43 billion as a decrease to the opening balances of retained earnings, as of January 1, 2020, net of tax effect.

The following table sets forth the cumulative effect of the changes on the Group’s consolidated balance sheet as of January 1, 2020 due to the adoption of ASC 326:


		Adjustments
	As of	due to	As of
	December	the Adoption	January
	31, 2019	of ASC 326	01, 2020
ASSETS
Financial assets receivable	1,971,824	117,321	2,089,145
Deferred tax assets	697,348	336,830	1,034,178

LIABILITIES
Guarantee liabilities-stand ready	2,212,125	(63,723)	2,148,402
Guarantee liabilities-contingent	734,730	1,952,545	2,687,275
Other tax payable	263,856	(4,275)	259,581

SHAREHOLDERS’ EQUITY
Retained earnings	2,071,332	(1,430,396)	640,936

Financial assets receivable

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

The fair value recognized at loan inception is estimated using a discounted cash flow model based on the expected net payouts by incorporating a markup margin. The Group estimates its expected net payouts according to the product mix, default rates, loan terms and discount rate. The financial assets receivable is accounted for as a financial asset, and reduced upon the receipt of the service fee payment from the borrowers. At each reporting date, the Group estimates the future cash flows and assesses whether there is any indicator of impairment. If the carrying amounts of the financial assets receivable exceed the expected cash to be received, an impairment loss is recorded for the financial assets receivable not recoverable and is recorded in the consolidated income statement. About adoption of ASC 326, see accounting policy of “Allowance for credit losses”. Impairment losses of RMB 150,940, RMB 285,720 and RMB 243,139 were recorded in the consolidated statements of operations during the years ended December 31, 2019, 2020 and 2021.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Facilitation, origination and servicing

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

Facilitation and origination expense includes expense related to the Group’s borrower referral program under which the Group provides cash incentives to existing borrowers who have successfully referred a new borrower/borrowers to the Group. Such cash reward is offered when the new borrower makes a drawdown. As the cash reward is directly associated with the new borrower acquisition, the Group accounted for it as origination expense to facilitate the loans. The Group recorded RMB 14.7 million, RMB 13.1 million and RMB 23.9 million of cash reward for the years ended December 31, 2019, 2020 and 2021, respectively.

Sales and marketing expenses

Sales and marketing expenses primarily consist of variable marketing and promotional expenses and general brand and awareness building, including fees paid to channel partners for directing user traffic to the Group. Salaries and benefits expenses related to the Group’s sales and marketing personnel and other expenses related to the Group’s sales and marketing team are also included in the sales and marketing expenses. For the years ended December 31, 2019, 2020 and 2021, the advertising and marketing related expenses were RMB 2,725,812, RMB 859,386 and RMB 1,803,243, respectively.

Funding costs

Funding cost consists of interest expense the Group pays to funding partners of the Consolidated Trusts and the asset backed securities, trust issuance and costs incurred by the trusts.

Government grant

Government grants are primarily referred to the amounts received from various levels of local governments from time to time which are granted for general corporate purposes and to support its ongoing operations in the region. The grants are determined at the discretion of the relevant government authority and there are no restrictions on their use. The government subsidies are recorded as other income in the period the cash is received. The government grants received by the Group is RMB 128,147, RMB 74,449 and RMB 17,783 for the years ended December 31, 2019, 2020 and 2021, respectively.

Income taxes

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

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

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

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Income taxes - continued

In order to assess uncertain tax positions, the Group applies a more likely than not threshold and a two-step approach for the tax position measurement and financial statement recognition. Under the two-step approach, the first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. The Group recognizes interest and penalties, if any, under accrued expenses and other current liabilities on its consolidated balance sheet and under other expenses in its consolidated statement of comprehensive loss. The Group did not have any significant unrecognized uncertain tax positions as of and for the years ended December 31, 2020 and 2021.

Value added taxes (“VAT”)

The consolidated trusts are subject to VAT at the rate of 3%, while the other entities under the Group are subject to VAT at the rate of 6% as general taxpayers, and related surcharges on revenue generated from providing services. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded in the line item of other tax payable on the consolidated balance sheet.

Certain risks and concentrations

As of December 31, 2019, 2020 and 2021, substantially all of the Group’s cash and cash equivalents as well as restricted cash were held in major financial institutions located in the PRC, which management considers to be of high credit quality.

Detail of the major funding partners that account for 10% or more of total revenues for the years ended December 31, 2019, 2020 and 2021 are as follows:


	the years ended December 31
funding partners	2019		2020		2021
A			*		16.4	%
B			*		14.3	%
C	11.3	%	10.8	%	*
D	15.7	%	10.2	%	*
E	10.6	%

Share-based compensation

Share-based payment transactions with employees, such as stock options and restricted shares, are measured based on the grant date fair value of the awards, with the resulting expense generally recognized on a straight-line basis in the consolidated statements of operations over the period during which the employee is required to perform service in exchange for the award. The Group has elected to account for forfeitures as they occur.

Foreign currency translation

The reporting currency of the Group is the Renminbi (“RMB”).The Group’s operations are principally conducted through the companies located in the PRC where the RMB is the functional currency. The functional currency of the other major entities incorporated outside of PRC is the United States dollar (“USD”).

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Foreign currency translation - continued

Transactions denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing on the transaction dates. Monetary assets and liabilities denominated in currencies other than functional currency are translated into functional currency at the exchange rates prevailing at the balance sheet date. Transactions in currencies other than functional currency during the year are converted into the functional currency at the applicable rates of exchange prevailing on the transaction date. Transaction gains and losses are included in earnings as foreign exchange gain (loss) .

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

Convenience translation

The Group’s business is primarily conducted in China and all of the revenues are denominated in RMB. The financial statements of the Group are stated in RMB. Translations of balances in the consolidated balance sheets, and the related consolidated statements of operations, shareholders’ equity and cash flows from RMB into US dollars as of and for the year ended December 31, 2021 are solely for the convenience of the readers and were calculated at the rate of USD1.00=RMB 6.3726, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 30, 2021. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into USD at that rate or at any other rate.

Employee defined contribution plan

Full time employees of the Group in the PRC participate in a government mandated multi-employer defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require that the Group makes contributions to the government for these benefits based on a certain percentage of the employee’s salaries. The Group has no legal obligation for the benefits beyond the contributions. The total amount that was expensed as incurred was RMB 71,433, RMB 72,632 and RMB 146,426 for the years ended December 31, 2019, 2020 and 2021, respectively.

Income per share

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

Diluted income per ordinary share reflects the potential dilution that could occur if securities were exercised or converted into ordinary shares. Ordinary share equivalents are excluded from the computation in income periods should their effects be anti-dilutive. The Group had restricted shares and share options, which could potentially dilute basic earnings per share in the future.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Dividends

Dividends of the Company are recognized when declared.

Segment reporting

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

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

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

Operating leases

The Group accounts for operating leases in accordance with ASC 842, Leases (“ASC 842”) after the adoption on January 1, 2019. The Group determines if a contract contains a lease based on whether it has the right to obtain substantially all of the economic benefits from the use of an identified asset and whether it has the right to direct the use of an identified asset in exchange for consideration, which relates to an asset the Group does not own. As part of the lease agreements, the Group may include options to extend or terminate the lease when it is reasonably certain that the Group will exercise those options. Right of use (“ROU”) assets represent the Group’s right to use an underlying asset for the lease term and lease liabilities represent the Group’s obligation to make lease payments arising from the lease. ROU assets are initially measured based on the lease liability, adjusted for any initial direct costs, any lease payments made prior to lease commencement and for any lease incentives, and are included in other assets (long term) on the Group’s consolidated balance sheets. Lease liabilities are recognized at the present value of the future lease payments at the lease commencement date, and are included in accrued expenses and other current liabilities (short term) and other long-term liabilities on the Group’s consolidated balance sheets. The discount rate used to determine the present value of the future lease payments is the Group’s incremental borrowing rate, because the interest rate implicit in most of the Group’s leases is not readily determinable. The Group’s incremental borrowing rate represents the rate would be incurred to borrow on a collateralized basis over a similar term for an amount equal to the lease payments in a similar economic environment. Operating lease expense is recorded on a straight-line basis over the lease term. The Company does not possess any leases that have variable lease payments or residual value guarantees.

Recent accounting pronouncements

Recently Adopted Accounting Guidance

In December 2019, the FASB issued ASU 2019-12, a new accounting standard update to simplify the accounting for income taxes. The new guidance removes certain exceptions for recognizing deferred taxes for investments, performing intra period allocation and calculating income taxes in interim periods. It also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. The new standard was adopted by the Company on January 1, 2021 and did not have a material effect on the Company’s consolidated financial statements.

Recent Accounting Guidance Not Yet Adopted

No new accounting pronouncements issued but not yet adopted are expected to have a material impact on the Company’s consolidated financial statements.

ACCOUNTS RECEIVABLE AND CONTRACT ASSETS, NET

12 Months Ended

Dec. 31, 2021

ACCOUNTS RECEIVABLE AND CONTRACT ASSETS, NET.

ACCOUNTS RECEIVABLE AND CONTRACT ASSETS, NET

3. ACCOUNTS RECEIVABLE AND CONTRACT ASSETS, NET

The Group’s accounts receivable as of December 31, 2020 and 2021 are as follows:


		Allowance for
	Accounts	uncollectible	Accounts
As of December 31, 2020	receivable	Accounts receivable	receivable, net
Accounts receivable from loan facilitation service	151,004	(17,462)	133,542
Accounts receivable from post facilitation service	21,170	(3,958)	17,212
Accounts receivable from referral services	12,180	(1,836)	10,344
Total	184,354	(23,256)	161,098


		Allowance for
	Accounts	uncollectible	Accounts
As of December 31, 2021	receivable	Accounts receivable	receivable, net
Accounts receivable from loan facilitation service	502	(375)	127
Accounts receivable from post facilitation service	5,825	(1,683)	4,142
Accounts receivable from referral services	10,797	—	10,797
Total	17,124	(2,058)	15,066

The movement of allowance for uncollectible accounts receivables for the years ended December 31, 2019, 2020 and 2021 are as follows:


	Opening			Ending
	balance as of	Current	Write off in	balance as of
	January 1,	year net	the current	December 31,
	2019	provision	year	2019
Accounts receivable from loan facilitation service	77,152	171,602	(64,329)	184,425
Accounts receivable from post facilitation service	4,184	12,779	(16,690)	273
Total	81,336	184,381	(81,019)	184,698


	Opening			Ending
	balance as of	Current	Write off in	balance as of
	January 1,	year net	the current	December 31,
	2020	provision	year	2020
Accounts receivable from loan facilitation service	184,425	(102,832)	(64,131)	17,462
Accounts receivable from post facilitation service	273	33,241	(29,556)	3,958
Accounts receivable from referral services	—	1,836	—	1,836
Total	184,698	(67,755)	(93,687)	23,256


	Opening			Ending
	balance as of	Current	Write off in	balance as of
	January 1,	year net	the current	December 31,
	2021	provision	year	2021
Accounts receivable from loan facilitation service	17,462	(11,309)	(5,778)	375
Accounts receivable from post facilitation service	3,958	1,732	(4,007)	1,683
Accounts receivable from referral services	1,836	—	(1,836)	—
Total	23,256	(9,577)	(11,621)	2,058

3. ACCOUNTS RECEIVABLE AND CONTRACT ASSETS, NET - continued

The Group’s contract assets as of December 31, 2020 and 2021 are as follows:


		Allowance for
		Uncollectible	Contract assets,
As of December 31, 2020	Contract assets	Contract assets	net
Contract assets from loan facilitation service	2,714,861	(222,526)	2,492,335
Contract assets from post facilitation service	29,259	(10,045)	19,214
Contract assets from referral services	29,818	—	29,818
Total	2,773,938	(232,571)	2,541,367


		Allowance for
		Uncollectible	Contract assets,
As of December 31, 2021	Contract assets	Contract assets	net
Contract assets from loan facilitation service	3,097,872	(287,397)	2,810,475
Contract assets from post facilitation service	282,767	(26,457)	256,310
Contract assets from referral services	238,877	—	238,877
Total	3,619,516	(313,854)	3,305,662

The movement of allowance for uncollectible contract assets for the years ended December 31, 2019, 2020 and 2021 are as follows:


	Opening			Ending
	balance as of	Current	Write off in	balance as of
	January 1,	year net	the current	December 31,
	2019	provision	year	2019
Contract assets from loan facilitation service	758	8,895	(2,991)	6,662
Contract assets from post facilitation service	421	1,728	(1,918)	231
Total	1,179	10,623	(4,909)	6,893


	Opening			Ending
	balance as of	Current	Write off in	balance as of
	January 1,	year net	the current	December 31,
	2020	provision	year	2020
Contract assets from loan facilitation service	6,662	220,582	(4,718)	222,526
Contract assets from post facilitation service	231	11,217	(1,403)	10,045
Total	6,893	231,799	(6,121)	232,571


	Opening			Ending
	balance as of	Current	Write off in	balance as of
	January 1,	year net	the current	December 31,
	2021	provision	year	2021
Contract assets from loan facilitation service	222,526	157,708	(92,837)	287,397
Contract assets from post facilitation service	10,045	52,379	(35,967)	26,457
Total	232,571	210,087	(128,804)	313,854

3. ACCOUNTS RECEIVABLE AND CONTRACT ASSETS, NET - continued

The Group’s accounts receivable and contract assets generated from related parties and recorded in amounts due from related parties as of December 31, 2020 and 2021 are as follows:


	Accounts	Allowance for	Accounts
	receivable	uncollectible	receivable
	and contract	accounts receivable	and contract
As of December 31, 2020	assets	and contract assets	Assets, net

Accounts receivable from loan facilitation service	—	—	—
Accounts receivable from post facilitation service	—	—	—
Accounts receivable from referral services	1,004	—	1,004
Contract assets from loan facilitation service	82,528	(8,072)	74,456
Contract assets from post facilitation service	951	(227)	724
Total	84,483	(8,299)	76,184


	Accounts	Allowance for	Accounts
	receivable	uncollectible	receivable
	and contract	accounts receivable	and contract
As of December 31, 2021	assets	and contract assets	Assets, net

Accounts receivable from loan facilitation service	—	—	—
Accounts receivable from post facilitation service	—	—	—
Accounts receivable from referral services	—	—	—
Contract assets from loan facilitation service	953,846	(120,208)	833,638
Contract assets from post facilitation service	5,178	(1,809)	3,369
Total	959,024	(122,017)	837,007

3. ACCOUNTS RECEIVABLE AND CONTRACT ASSETS, NET - continued

The movement of allowance for uncollectible accounts receivables and contract assets generated from related parties and recorded in amounts due from related parties for the year ended December 31, 2020 and 2021 are as follows:


	Opening			Ending
	balance as of	Current	Write off in	balance as of
	January 1,	year net	the current	December 31,
	2020	provision	year	2020

Accounts receivable from loan facilitation service	9,648	30,215	(39,863)	—
Accounts receivable from post facilitation service	481	14,533	(15,014)	—
Contract assets from loan facilitation service	2,062	22,683	(16,673)	8,072
Contract assets from post facilitation service	144	7,639	(7,556)	227
Total	12,335	75,070	(79,106)	8,299


	Opening			Ending
	balance as of	Current	Write off in	balance as of
	January 1,	year net	the current	December 31,
	2021	provision	year	2021

Accounts receivable from loan facilitation service	—	—	—	—
Accounts receivable from post facilitation service	—	—	—	—
Contract assets from loan facilitation service	8,072	117,613	(5,477)	120,208
Contract assets from post facilitation service	227	6,482	(4,900)	1,809
Total	8,299	124,095	(10,377)	122,017

The principal of accounts receivable and contract assets by year of origination:


	2021	2020	2019	Total
As of December 31, 2021
Loan facilitation service	2,708,137	390,236	—	3,098,373
Post facilitation service	249,726	38,867	—	288,593
Referral Service	249,674	—	—	249,674
Total	3,207,537	429,103	—	3,636,640

FINANCIAL ASSETS RECEIVABLE

12 Months Ended

Dec. 31, 2021

FINANCIAL ASSETS RECEIVABLE

FINANCIAL ASSETS RECEIVABLE

4. FINANCIAL ASSETS RECEIVABLE

The Group’s financial assets receivable as of December 31, 2020 and 2021 are as follows:


	December 31,	December 31,
	2020	2021
	RMB	RMB
Financial assets receivable	4,601,642	4,897,854
Allowance for uncollectible receivables	(390,834)	(493,646)
Financial assets receivable, net	4,210,808	4,404,208

The movement of financial assets receivable for the years ended December 31, 2019, 2020 and 2021 is as follows:


	Year ended	Year ended	Year ended
	December 31, 2019	December 31, 2020	December 31, 2021
	RMB	RMB	RMB
Balance at beginning of year	1,250,277	2,142,627	4,601,642
Adoption of ASC 326	—	117,321	—
Addition in the current year	3,650,311	6,885,976	6,626,322
Collection in the current year	(2,721,168)	(4,478,593)	(6,189,783)
Write-off	(36,793)	(65,689)	(140,327)
Balance at end of year	2,142,627	4,601,642	4,897,854

The movement of allowance for uncollectible receivables for the years ended December 31, 2019, 2020 and 2021 is as follows:


	Year ended	Year ended	Year ended
	December 31, 2019	December 31, 2020	December 31, 2021
	RMB	RMB	RMB
Balance at beginning of year	56,656	170,803	390,834
Current year net provision	150,940	285,720	243,139
Write-off	(36,793)	(65,689)	(140,327)
Balance at end of year	170,803	390,834	493,646

The Group’s financial assets receivable generated from related parties and recorded in amounts due from related parties as of December 31, 2020 and 2021 are as follows:


	December 31,	December 31,
	2020	2021
	RMB	RMB

Financial assets receivable	3,149	—
Allowance for uncollectible receivables	(2,033)	—
Financial assets receivable, net	1,116	—

4. FINANCIAL ASSETS RECEIVABLE - continued

The movement of financial assets receivable generated from related parties and recorded in amounts due from related parties for the years ended December 31, 2020 and 2021 is as follows:


	Year ended	Year ended
	December 31,	December 31,
	2020	2021
	RMB	RMB

Balance at beginning of year	130,765	3,149
Addition in the current year	35,151	—
Collection in the current year	(124,830)	(309)
Write-off	(37,937)	(2,840)
Balance at end of year	3,149	—

The movement of allowance for uncollectible receivables generated from related parties and recorded in amounts due from related parties for the years ended December 31, 2020 and 2021 is as follows:


	Year ended	Year ended
	December 31,	December 31,
	2020	2021
	RMB	RMB

Balance at beginning of year	13,633	2,033
Current year net provision	26,337	807
Write-off	(37,937)	(2,840)
Balance at end of year	2,033	—

The following table summarizes the aging of the Group’s financial assets receivable.


		31-60	over 60		Total
	0-30 days	days	days		financial
	past	past	past		assets
	due	due	due	Current	receivable
December 31, 2020	15,673	9,572	—	4,576,397	4,601,642
December 31, 2021	15,594	12,038	—	4,870,222	4,897,854

The principal of financial assets receivable by year of origination :


	2021	2020	2019	Total

December 31, 2021	4,078,249	819,605	—	4,897,854

LOANS RECEIVABLE, NET

12 Months Ended

Dec. 31, 2021

LOANS RECEIVABLE, NET.

LOANS RECEIVABLE, NET

5. LOANS RECEIVABLE, NET

Loans receivable consists of the following:


	December 31,	December 31,
	2020	2021
	RMB	RMB
Loans receivable	8,010,081	13,652,723
Less allowance for loan losses	(421,767)	(948,893)
Loans receivable, net	7,588,314	12,703,830

As of December 31, 2020 and 2021, the accrued interest receivables are RMB 87,278 and RMB 86,144 ( net of allowance RMB 3,200 and RMB 5,987, respectively ), which is recorded under loans receivable.

The following table presents the aging of loans as of December 31, 2020 and 2021:


	0-30 days	31-60 days	over 60 days	Total amount
	past due	past due	past due	past due	Current	Total loans
December 31, 2020 (RMB)	43,766	32,038	—	75,804	7,934,277	8,010,081
December 31, 2021 (RMB)	113,771	87,171	—	200,942	13,451,781	13,652,723

The Group has not recorded any financing income on an accrual basis for the loans that are past due for more than 60 days in 2021 (60 days in 2020). Loans are returned to accrual status if they are brought to non-delinquent status or have performed in accordance with the contractual terms for a reasonable period of time and, in the Group’s judgment, will continue to make periodic principal and interest payments as scheduled. For the years ended December 31, 2019, 2020 and 2021, the Group has charged off loans receivable of RMB 162 million, RMB 637 million and RMB 475 million, respectively.

Movement of allowance for loan losses is as follows:


	Year ended	Year ended	Year ended
	December 31,	December 31,	December 31,
	2019	2020	2021
	RMB	RMB	RMB
Balance at beginning of year	25,895	351,639	421,767
Provision for loan losses	486,991	698,701	965,419
Gross write-off	(161,976)	(636,766)	(475,352)
Recoveries	729	8,193	37,059
Balance at end of year	351,639	421,767	948,893

The Group’s nonaccrual loans are nil as of December 31, 2019 and 2020.

The principal of loans receivable as of December 31, 2021 by year of origination is as follows:

The principal of loans receivable as of December 31, 2020 by year of origination is as follows:


	2020	2019	Total loans
Loans receivable	7,987,657	22,424	8,010,081

LAND USE RIGHTS, NET

12 Months Ended

Dec. 31, 2021

LAND USE RIGHTS, NET.

LAND USE RIGHTS, NET

6. LAND USE RIGHTS, NET

Land use rights represent acquired right to use the parcel of land on which the Group’s regional headquarters and affiliated industrial park stand. In 2021, the Group acquired the land use rights in Shanghai from the local authorities. Amortization of the land use right is made over the remaining term of the land use right period from the date when the land was made available for use by the Group. The land use rights are summarized as follows:


		Year ended
		December 31,
		2021
		RMB

Cost		1,036,178
Accumulated amortization		(17,270)
Land use rights, net		1,018,908

The total amortization expense for the year ended December 31, 2021 amounted to RMB17,270.

SHORT-TERM LOANS

12 Months Ended

Dec. 31, 2021

SHORT-TERM LOANS

SHORT-TERM LOANS

7. SHORT-TERM LOANS

Short-term loans as of December 31, 2021 represents bank borrowings of USD 38,850 and RMB 150,000 obtained from domestic commercial banks. The short-term loan of USD 38,850 bears interest rates of London InterBank Offered Rate (“LIBOR”) plus 300bps for the year ended December 31, 2021. The loan of RMB 150,000 applying a fixed rate . The weighted average interest rate for the outstanding borrowings as of December 31, 2020 and 2021 was 3.65% and 3.46%, respectively. There are no financial covenants associated with such loans.

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

12 Months Ended

Dec. 31, 2021

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

8. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES


	December 31,	December 31,
	2020	2021
	RMB	RMB

User traffic direction fees	201,041	472,269
Payable to funding partners (1)	163,234	422,423
Accrued payroll and welfare	144,784	409,216
Payable for third-party service fee	196,718	298,411
Payable to shareholder of non-controlling interests (2)	—	296,617
Dividend payable(3)	—	276,991
Lease liability	28,528	25,779
Others	75,456	56,623
Total	809,761	2,258,329

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

(2)Payable to shareholder of non-controlling interests mainly includes loans from non-controlling shareholder of Shanghai Changfeng Investment (Group) Co., Ltd.( “Changfeng”) to acquire land use right.

(3)All dividends has been paid in January 2022.

GUARANTEE LIABILITIES

12 Months Ended

Dec. 31, 2021

GUARANTEE LIABILITIES.

GUARANTEE LIABILITIES

9. GUARANTEE LIABILITIES

The movement of guarantee liabilities during 2020 and 2021 is as follows:

Guarantee liabilities-stand ready


		RMB
As of January 1, 2020		2,148,402
Provision at the inception of new loans		6,921,127
Released into revenue		(4,896,032)
As of December 31, 2020		4,173,497

As of January 1, 2021		4,173,497
Provision at the inception of new loans		6,626,322
Released into revenue		(5,981,675)
As of December 31, 2021		4,818,144

Guarantee liabilities-contingent


		RMB
As of January 1, 2020		2,687,275
Provision for contingent liabilities		4,794,127
Net payout (1)		(3,937,948)
As of December 31, 2020		3,543,454

As of January 1, 2021		3,543,454
Provision for contingent liabilities		3,078,224
Net payout (1)		(3,336,597)
As of December 31, 2021		3,285,081

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

The following table summarizes the aging of the Group’s contractual amounts of the outstanding loans subject to guarantee:

31-60

61-90

Over 90

0-30 days

days

past

due

Current

Total loans

December 31, 2020 (RMB):

355,252

158,048

68,919

—

55,019,645

55,601,864

December 31, 2021 (RMB):

446,780

235,769

57,526

—

49,117,630

49,857,705

As of December 31, 2020 and 2021, the contractual amounts of the outstanding loans subject to guarantee by the Group is estimated to be RMB 55,601,864 and RMB 49,857,705, respectively. The approximate term of guarantee compensation service ranged from 1 month to 24 months and 1 month to 36 months, as of December 31, 2020 and 2021, respectively. As of December 31, 2020 and 2021, the contractual amounts of the outstanding loans (excluding loans that are written off) not subject to guarantee by the Group were estimated to be RMB 2,402,825and RMB 3,129,264, respectively.

RELATED PARTY BALANCES AND TRANSACTIONS

12 Months Ended

Dec. 31, 2021

RELATED PARTY BALANCES AND TRANSACTIONS

10. RELATED PARTY BALANCES AND TRANSACTIONS

The table below sets forth the major related parties and their relationships with the Group, with which the Group entered into transactions during the years ended December 31, 2019, 2020 and 2021:


Name of related parties		Relationship with the group
360 Security Technology Inc. (“360 Group”)		Entity controlled by Mr. Zhou, the Chairman of the Group
Beijing Qifutong Technology Co., Ltd. (“Qifutong”)		An affiliate of 360 Group, ultimately controlled by Mr. Zhou, the Chairman of the Group
Shanghai Qibutianxia Technology Co., Ltd. (“Qibutianxia”)		Entity controlled by Mr. Zhou, the Chairman of the Group
Beijing Qicaitianxia Technology Co., Ltd. (“Qicaitianxia”)		Entity controlled by Mr. Zhou, the Chairman of the Group
Beijing Qihu Technology Co., Ltd. (“Qihu”)		An affiliate of 360 Group, ultimately controlled by Mr. Zhou, the Chairman of the Group
Jinshang Consumer Finance Co.,Ltd. (“Jinshang”)		An affiliate of an entity controlled by Mr. Zhou, the Chairman of the Group
Beijing Zixuan Information Technology Co., Ltd. (“Beijing Zixuan”)		Entity controlled by Mr. Zhou, the Chairman of the Group
Xixian New Area Financial Asset Exchange Co., Ltd (“Xixian”)		Entity controlled by Mr. Zhou, the Chairman of the Group
Beijing Qifei Xiangyi Consultation Co., Ltd (“ Beijing Qifei”)		Entity controlled by Mr. Zhou, the Chairman of the Group
Hangzhou Qifei Huachuang Technology Co, Ltd (“ Hangzhou Qifei ”)		Investee of the Group
Shanghai Jiehu Internet Technology Co., Ltd. (“Shanghai Jiehu”)		An affiliate of 360 Group, ultimately controlled by Mr. Zhou, the Chairman of the Group
Kincheng Bank of Tianjin Co., Ltd. (“Kincheng”)		An affiliate of an entity controlled by Mr. Zhou, the Chairman of the Group
Tianjin Yujie Technology Co., Ltd. (Yujie)		Entity controlled by Mr. Zhou, the Chairman of the Group
Beijing Hongying Information Technology Co., Ltd. (“Hongying”)		Entity controlled by Mr. Zhou, the Chairman of the Group
Shareholders		Shareholders of the Group
Others		Entities controlled by Mr. Zhou, the Chairman of the Group

10. RELATED PARTY BALANCES AND TRANSACTIONS - continued

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

For the years ended December 31, 2019, 2020 and 2021, services provided by the related parties were RMB 129,061, RMB 143,881 and RMB 523,054, respectively.


	Year ended	Year ended	Year ended
	December 31,	December 31,	December 31,
	2019	2020	2021
	RMB	RMB	RMB
Referral service fee charged by Yujie	—	15,152	347,585
Bandwidth service fee charged by Qihu	46,191	80,514	108,743
Brand fees charged by Qihu	—	—	23,585
Referral service fee charged by Qihu	47,640	24,507	19,789
Rental expenses charged by Beijing Qifei	5,074	7,137	—
Rental expenses charged by Hongying	—	—	11,899
Corporate expenses allocated from Qibutianxia	3,230	11,321	7,075
Labor cost charged by Xixian	10,657	2,130	—
Referral service fee charged by Qifutong	7,905	—	—
Others	8,364	3,120	4,378
Total	129,061	143,881	523,054

For the years ended December 31, 2019, 2020 and 2021, services provided to the related parties were RMB 1,037,480, RMB 346,378 and RMB 2,178,561, respectively.


	Year ended	Year ended	Year ended
	December 31,	December 31,	December 31,
	2019	2020	2021
	RMB	RMB	RMB
Referral service fee charged from Qicaitianxia	197,018	3,558	—
Loan facilitation services fee charged from Kincheng	—	15,254	1,574,456
Loan facilitation services fee charged from Jinshang	59,871	150,515	219,513
Loan facilitation services fee charged from Beijing Zixuan	517,776	47,516	37
Post-facilitation services fee charged from Kincheng	—	433	297,489
Post-facilitation services fee charged from Jinshang	43,497	48,094	69,398
Post-facilitation services fee charged from Beijing Zixuan	215,019	74,417	56
Others	4,299	6,591	17,612
Total	1,037,480	346,378	2,178,561

Beijing Zixuan is the subsidiary of Qibutianxia which is ultimately controlled by Mr. Zhou. Beijing Zixuan runs a P2P platform, referring individual investors as the financial institutional partner to the Group’s platform. Jinshang is an affiliate of an entity controlled by Mr. Zhou and provides funds to the borrowers through the Group’s platform. Kincheng is an affiliate of an entity controlled by Mr. Zhou and provides funds to the borrowers through the Group’s platform. The Group collected service fees from Beijing Zixuan, Jinshang and Kincheng.The amounts from Beijing Zixuan, Jinshang and Kincheng represent the loan facilitation service and post- facilitation service fees charged from them.

10. RELATED PARTY BALANCES AND TRANSACTIONS - continued

As of December 31, 2020 and 2021, amounts due from related parties were RMB 193,305 and RMB 978,175, respectively, and details are as follows:


	December 31,	December 31,
	2020	2021
	RMB	RMB
Kincheng	13,505	771,335
Jinshang	158,655	194,123
Shareholders(1)	11,100	10,158
Beijing Zixuan	5,608	—
Others	4,437	2,559
Total	193,305	978,175

(1)	The balance as of December 31, 2021 represents the ADS registration fees incurred on behalf of certain shareholders that are to be reimbursed from them.

As of December 31, 2020 and 2021, amounts due to related parties were RMB 71,562 and RMB 214,057 respectively, and details are as follows:


	December 31,	December 31,
	2020	2021
	RMB	RMB
Qibutianxia	13,656	9,156
Qihu	24,624	144,999
Yujie	16,061	30,165
Others	17,221	29,737
Total	71,562	214,057

Qibutianxia provided joint back to back guarantee to certain third party guarantee companies for the loans facilitated by the Group. The amounts of loans under such arrangement are RMB 19,346,618 and RMB 11,803,492 as of December 31, 2020 and 2021 respectively.

In September 2020, Beijing Qifei transferred to the Group part of its interest in Hangzhou Qifei, a joint venture company established by Beijing Qifei and an independent third party. After the transfer, Beijing Qifei and the Group hold 26% and 25% of the equity interest in the investee, respectively. As part of the arrangement, the Group is responsible to assist Hangzhou Qifei in meeting certain performance targets but is not obligated to fund the loss of the investee. The Group accounted for the equity investment using alternative measurement, and the carrying amount as of December 31, 2020 and 2021 was nil, respectively.

10. RELATED PARTY BALANCES AND TRANSACTIONS - continued

In October 2020, the Group established a joint venture company, Shanghai 360 Changfeng Technology, Co.,Ltd. (“360 Changfeng”) in Shanghai, China through Qiyu together with Shanghai Jiehu and an independent third party, Changfeng, to develop and build regional headquarter and the affiliated industrial park in Shanghai. Changfeng, Shanghai Jiehu and the Group each holds 30%, 30% and 40% of the equity interests of the joint venture, respectively.

In December 2021, the Group acquired the 30% equity interest held by Shanghai Jiehu and became the controlling shareholder of 360 Changfeng. The transaction is a business acquisition under common control and has been retrospectively reflected in the consolidated financial statements of the Company for all periods presented. The impact to prior year financials was inconsequential.

Pursuant to the joint venture agreement, the shareholders will contribute initial funding for acquisition of land use rights and funds required for subsequent developments will be mainly financed by external financings with any remaining shortfall funded by the shareholders ratably in proportion to their respective equity interest ownership.

As of December 31, 2020, no capital contribution was made and carrying amount of the investment was zero. As of December 31, 2021, shareholders of the joint venture company have invested a total of RMB1.0 billion, of which RMB0.3 billion was funded by the non-controlling shareholder

INCOME TAXES

12 Months Ended

Dec. 31, 2021

INCOME TAXES

INCOME TAXES

11. INCOME TAXES

PRC

Under the Law of the People’s Republic of China on Enterprise Income Tax (“EIT Law”), domestically-owned enterprises and foreign-invested enterprises are subject to a uniform tax rate of 25%. Qiyu received its “high and new technology enterprises” status in 2018 and renewed it in 2021 and was entitled for a preferential income tax rate of 15% from 2018 to 2023. In November 2020, Qiyue received its “high and new technology enterprises” status and was entitled to a reduced EIT rate of 15% from 2020 to 2022. From August 2019, Qicheng benefits from a preferential tax rate of 15% as it falls within the encouraged industries catalogue in western China. The 40% of the EIT payables of Qicheng could be further reduced as it is located in Autonomous Region of China. From 2021, two of the Company’s subsidiaries benefit from a preferential tax rate of 15% as they are registered in Hainan and engaged in encouraged business activities.

Cayman Islands

Under the current laws of the Cayman Islands, the Company is not subject to tax on its income or capital gains. In addition, the Cayman Islands do not impose withholding tax on dividend payments.

Hong Kong

Under the current Hong Kong Inland Revenue Ordinance, the Company’s subsidiaries domiciled in Hong Kong has introduced a two-tiered profits tax rate regime which is applicable to any year of assessment commencing on or after April 1, 2018. The profits tax rate for the first HK$2 million of profits of corporations will be lowered to 8.25%, while profits above that amount will continue to be subject to the tax rate of 16.5%. Additionally, payments of dividends by the subsidiary incorporated in Hong Kong to the Company are not subject to any Hong Kong withholding tax.

11. INCOME TAXES - continued

The current and deferred portion of income tax expenses included in the consolidated statements of operations, which were all attributable to the Group is as follows:


	Year ended	Year ended	Year ended
	December 31,	December 31,	December 31,
	2019	2020	2021
	RMB	RMB	RMB
Current tax	1,179,089	1,355,651	1,053,979
Deferred tax	(713,106)	(769,615)	204,217
Total	465,983	586,036	1,258,196

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


	Year ended		Year ended		Year ended
	December 31,		December 31,		December 31,
	2019		2020		2021
	RMB		RMB		RMB
Income before income tax benefit	2,967,287		4,081,745		7,022,709
Statutory tax rate in the PRC	25	%	25	%	25	%
Income tax at statutory tax rate	741,822		1,020,436		1,755,677
Effect of different tax rate of subsidiary operation in other jurisdiction	3,875		3,728		11,708
Effect of non-deductible expenses	63,070		75,881		64,841
Effect of preferential tax rate and tax exemption	(202,095)		(452,033)		(487,655)
Effect of enacted tax rate change of deferred tax assets/liabilities	(95,048)		248		1,125
Effect of research and development super-deduction	(47,846)		(69,802)		(106,515)
Effect of valuation allowance movement of deferred tax assets	2,205		7,578		19,015
Income tax expense	465,983		586,036		1,258,196

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


	Years Ended December 31,
	(Amounts in Thousands Except Per Share Data)
	2019	2020	2021
	RMB	RMB	RMB
Tax saving amount due to preferential tax rates	297,143	451,785	486,530
Income per share effect-basic	1.03	1.51	1.58
Income per share effect-diluted	0.99	1.47	1.51

11. INCOME TAXES – continued

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


	December 31,	December 31,
	2020	2021
	RMB	RMB
Deferred tax assets
Guarantee liabilities	1,628,214	1,263,699
Provision for accounts receivable and contract assets and financial assets receivable	34,889	34,889
Provision for loan losses	186,462	330,684
Depreciation of land use rights	—	14,162
Net operating loss carry forwards	22,785	37,376
Gross deferred tax assets	1,872,350	1,680,810
Valuation allowance on deferred tax assets	(9,783)	(28,798)
Total deferred tax assets	1,862,567	1,652,012
Uncollected revenues	(501,848)	(938,721)
Total deferred tax liabilities	(501,848)	(938,721)
Net deferred tax assets	1,360,719	713,291

Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets. This assessment considers, among other matters, the nature, frequency and severity of recent losses, forecasts of future profitability, the duration of statutory carryforward periods, the Company’s experience with tax attributes expiring unused and tax planning alternatives. Considering all the above factors, as of December 31, 2020 and 2021, the Group recorded an allowance of RMB 9,783 and RMB 28,798 respectively for deferred tax assets which are not more likely than not to be realized.

As of December 31, 2021, the Group had net operating loss carryforwards in PRC entities of RMB 110,338, which will expire from 2023 to 2026.

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

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

11. INCOME TAXES – continued

Aggregate undistributed earnings of the Group’s PRC subsidiaries and VIEs and VIEs’ subsidiaries that are available for distribution was RMB 5,964,686 and RMB 13,225,574 as of December 31, 2020 and 2021, respectively.

In accordance with the EIT Law, dividends, which arise from profits of foreign invested enterprises (“FIEs”) earned after January 1, 2008, are subject to a 10% withholding income tax. In addition, under tax treaty between the PRC and Hong Kong, if the foreign investor is incorporated in Hong Kong and qualifies as the beneficial owner, the applicable withholding tax rate is reduced to 5%, if the investor holds at least 25% in the FIE, or 10%, if the investor holds less than 25% in the FIE. A deferred tax liability should be recognized for the undistributed profits of PRC subsidiaries unless the Company has sufficient evidence to demonstrate that the undistributed dividends will be reinvested and the remittance of the dividends will be postponed indefinitely. The Group plans to indefinitely reinvest undistributed profits earned from its China subsidiaries in its operations in the PRC. Therefore, no withholding income taxes for undistributed profits of the Group’s subsidiaries have been provided as of December 31, 2020 and 2021.

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

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI http://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

SHARE-BASED COMPENSATION

12 Months Ended

Dec. 31, 2021

SHARE-BASED COMPENSATION.

SHARE-BASED COMPENSATION

12. SHARE-BASED COMPENSATION

Share incentive plan

In May 2018, the shareholders and board of directors of the Company adopted the Share Incentive Plan (the “2018 plan”) for the granting of share options and restricted shares to employees, directors and consultants to reward them for services to the Company and to provide incentives for future service. Under the 2018 plan, the maximum aggregate number of shares which may be issued is 25,336,096 ordinary shares, plus an annual increase equal to 1.0% of the total number of the then issued and outstanding shares. The share options expire 10 years from the date of grant.

The Company’s board of directors and shareholders approved the 2019 Share Incentive Plan (the “2019 Plan”) and amended it in August 2020, for the granting of share options and restricted shares to employees, directors and consultants to reward them for services to the Company and to provide incentives for future service. Under the 2019 plan, the maximum aggregate number of shares which may be issued is 17,547,567 ordinary shares, and may increase annually by an amount up to 1.0% of the total number of ordinary shares then issued and outstanding commencing with the first fiscal year beginning January 1, 2021 or such fewer amount as determined by the board of directors. The share options and restricted shares expire 10 years from the date of grant.

Stock options

On May 20 and November 20, 2018, and May 20, 2020, and November 20, 2021 the Company granted 24,627,493, 690,023, 3,514 and 2,400 stock options, respectively, with an exercises price of US$0.00001 per share to certain employees, directors and officers. The stock options shall vest over a period from immediate to 4 years. The grant date fair value per option was RMB 48.64, RMB 60.77 and RMB 64.46, respectively.

On November 2021, the compensation committee of the board of directors of the Company approved to convert the form of 10,264,366 outstanding restricted shares into stock options to purchase the same number of shares as represented by the restricted share with an exercises price of US$0.00001 per share. This conversion did not affect the fair value of the awards immediately before and after the modification as the exercise price is nominal. In addition, there were no other changes to the awards including the vesting conditions and classification. Accordingly, modification accounting is not required and the cost will continue to be recognized based on the grant-date fair-value-based measure.

12. SHARE-BASED COMPENSATION – continued

Share incentive plan - continued

Stock options - continued

The Group used the Black-Scholes option pricing model to estimate the fair value of options granted, with the following assumptions used.


		Year ended,
		December 31, 2021
		RMB
Risk-free rate of interest		2.76%
Estimated volatility rate		67.27%
Dividend yield		5.10%
Expected life (years)		5.00
Exercise price		USD 0.00001

The risk-free rate of interest is based on the yield to maturity of China government bonds with a maturity period close to the expected term of the options. The volatility of the underlying ordinary shares during the life of the options was estimated based on the historical share price volatility of comparable companies over a period comparable to the expected term of the options. The dividend yield was estimated by the Group based on its expected dividend policy over the expected term of the options. The Group did not have sufficient historical share option exercise experience, it estimated the expected term average based on a consideration of factors including contractual term and vesting period. The closing market price of the ordinary shares of the Company as of the grant date was used as the fair value of the ordinary shares on that date.

A summary of option activity during period from January 1, 2021 to December 31, 2021 is as follows:


			Weighted
		Weighted	Average
	Number of	Average	Remaining	Aggregate
	Options	Exercise Price	Contract Life	Intrinsic Value
		USD	Years	RMB
Options outstanding at January 1, 2021	7,611,387	0.00001	6.20	292,734
Options granted in 2021	2,400	0.00001	9.64	175
Options converted in 2021	10,264,366	0.00001	8.89	749,915
Options forfeited in 2021	(348,236)	0.00001	5.84	(25,442)
Options exercised in 2021	(4,584,580)	0.00001	4.94	(334,949)
Options outstanding at December 31, 2021	12,945,337	0.00001	8.03	945,786
Options exercisable at December 31, 2021	4,051,903	0.00001	7.01	296,032
Options vested or expected to be vested at December 31, 2021	12,945,337	0.00001	8.03	945,786

As of December 31, 2021, there was RMB 288,945 of unrecognized compensation cost related to share options that are expected to be recognized over a weighted-average vesting period of 1.43 years.

12. SHARE-BASED COMPENSATION – continued

Restricted Shares

A summary of the restricted shares for the year ended December 31, 2021 was stated below:


		Weighted-Average
	Number of	Grant-Date
	Restricted Shares	Fair Value
Outstanding at January 1, 2021	16,321,820	40.07
Granted	3,102,418	68.45
Converted	(10,264,366)	40.84
Forfeited	(749,794)	38.39
Vested	(1,448,632)	37.06
Outstanding at December 31, 2021	6,961,446	52.38

The restricted shares granted shall vest in accordance with contractual schedules over a period from three to five years. The fair value of the restricted shares was determined by the closing sales price of the shares on the grant date, adjusted by the present value of expected dividends to be paid during the vesting period. The total fair value of the restricted shares vested for the years ended December 31, 2021 was RMB 53,680. As of December 31, 2021, there was RMB 312,247 of unrecognized compensation cost related to restricted shares that are expected to be recognized over a weighted-average vesting period of 1.58 years.

The Company recognizes the compensation costs on a straight-line basis over the requisite service period of the award, which is generally the vesting period. Total share-based compensation expense of share-based awards granted to employees and directors was as follows:


	Year ended,	Year ended,
	December 31, 2020	December 31, 2021
	RMB	RMB
Facilitation, origination and servicing expenses	72,192	75,209
Sales and marketing expenses	8,164	12,340
General and administrative expenses	220,805	166,373
Total	301,161	253,922

ORDINARY SHARES

12 Months Ended

Dec. 31, 2021

ORDINARY SHARES

ORDINARY SHARES

13. ORDINARY SHARES

5,000,000,000 shares was authorized at par value of USD 0.00001 per share. The ordinary shares include Class A ordinary shares and Class B ordinary shares. Each Class A ordinary share is entitled to one vote and each Class B ordinary share is entitled to twenty votes on all matters that are subject to shareholder vote. All classes of ordinary shares are entitled to the same dividend right. Class B ordinary shares could be converted into Class A ordinary shares, at the option of the holders, on one-for-one basis. All Class B ordinary shares are beneficially owned by Mr. Zhou, the Chairman of the Company.

As of December 31, 2020, there were 304,453,780 ordinary shares outstanding, with par value of $0.00001 per share, consisting of 264,633,194 Class A ordinary shares and 39,820,586 Class B ordinary shares. As of December 31, 2021, there were 310,486,975 ordinary shares outstanding, with par value of $0.00001 per share, consisting of 270,666,389 Class A ordinary shares and 39,820,586 Class B ordinary shares.

In August 2021, the board of directors of the Company has approved a share repurchase program whereby the Company is authorized to repurchase up to US$200 million worth of its Class A ordinary shares in the form of American depositary shares over the next twelve-month period. The Company’s proposed repurchases may be made from time to time in the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations. The Company expects to fund the repurchase out of its existing cash balance. As of December 31, 2021, the Company did not repurchase any share.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496171-112644

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496171-112644

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496189-112644

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (g)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-URI http://asc.fasb.org/topic&trid=2208762

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496189-112644

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (h)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496171-112644

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496189-112644

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 16
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496180-112644

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

STATUTORY RESERVES AND RESTRICTED NET ASSETS

12 Months Ended

Dec. 31, 2021

STATUTORY RESERVES AND RESTRICTED NET ASSETS

STATUTORY RESERVES AND RESTRICTED NET ASSETS

14. STATUTORY RESERVES AND RESTRICTED NET ASSETS

In accordance with the PRC laws and regulations, the PRC entities of the Group are required to make appropriation to certain statutory reserves, namely general reserve, industry specific reserve, enterprise expansion reserve, and staff welfare and bonus reserve, all of which are appropriated from net profit as reported in their PRC statutory accounts. The PRC entities of the Group are required to appropriate at least 10% of their after-tax profits to the general reserve until such reserve has reached 50% of their respective registered capital.

Appropriations to the enterprise expansion reserve and the staff welfare and bonus reserve are to be made at the discretion of the board of directors of the PRC entities of the Group. There are no appropriations to these reserves by the PRC entities of the Group for the years ended December 31, 2020 and 2021.

As a result of PRC laws and regulations and the requirement that distributions by the PRC entities of the Group can only be paid out of distributable profits computed in accordance with the PRC GAAP, the PRC entities of the Group restricted from transferring a portion of their net assets to the Group. Amounts restricted include paid-in capital, capital reserve and statutory reserves of the PRC entities of the Group. As of December 31, 2020 and 2021, the aggregated amounts of paid-in capital, capital reserve and statutory reserves represented the amount of net assets of the relevant entity in the Group not available for distribution amounted to RMB 2,740,408 and RMB 8,283,560, respectively (including the statutory reserve fund of RMB 125,389 and RMB 168,541 as of December 31, 2020 and 2021, respectively).

DIVIDENDS

12 Months Ended

Dec. 31, 2021

DIVIDENDS.

Dividends

15. DIVIDENDS

Quarterly Dividend Policy

On November 15, 2021, the Board of Directors of the Company approved a quarterly cash dividend policy. Under the policy, the Company will declare and distribute a recurring cash dividend every fiscal quarter, starting from the third fiscal quarter of 2021, at an amount equivalent to approximately 15% to 20% of the Company’s net income after tax for such quarter. The determination to make dividend distributions and the exact amount of such distributions in any particular quarter will be based upon the Company’s operations and financial conditions, and other relevant factors, and subject to adjustment and determination by the board of directors.

The Board of Directors of the Company has approved a dividend of US$0.14 per ordinary share, or US$0.28 per ADS, for the third fiscal quarter of 2021 in accordance with the Company’s dividend policy, which is paid on January 18, 2022 to shareholders of record as of the close of business on December 15, 2021.

LEASE

12 Months Ended

Dec. 31, 2021

LEASE

LEASE

16. LEASE

Operating lease as lessee

The Group enters into operating leases primarily for general office space. The Group’s leases typically have original terms not exceeding 5 years. These leases have remaining lease terms of 1 year to 3 years, some of which include options to extend the leases for up to 5 years, and some of which include options to terminate the leases within 1 year.

Lease costs are included in general and administrative expenses. Operating lease expenses were RMB 20,139, RMB 28,999 and RMB 51,608 for the years ended December 31, 2019, 2020 and 2021, respectively, included amortization expenses of land use rights of nil, nil and RMB 17,270 for the years ended December 31, 2019, 2020 and 2021, respectively. Under ASC 842, land use rights agreements are also considered as operating lease contracts. See Note 6 for separate disclosures related to land use right.

Supplemental cash flow information related to leases was as follows:


	Year ended,	Year ended,
	December 31, 2020	December 31, 2021
	RMB	RMB
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	30,536	33,252
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	36,236	25,349

16. LEASE - continued

Operating lease as lessee – continued

The following table shows ROU assets and lease liabilities as of December 31, 2020 and 2021 (except lease term and discount rate):


	Year ended,	Year ended,
	December 31, 2020	December 31, 2021
	RMB	RMB
Right-of-use assets	48,990	42,606
Operating lease liabilities-current	28,528	25,779
Operating lease liabilities-non current	14,974	13,177


	Year ended,		Year ended,
	December 31, 2020		December 31, 2021
	RMB		RMB
Weighted-average remaining lease term	1.69		2.09
Weighted-average discount rate	6.16	%	6.22	%

The maturities of operating lease liabilities as of December 31, 2020 and 2021 are as follows:


		Year ended,
		December 31, 2020
		RMB
2021		32,255
2022		13,582
2023		710
2024		—
2025 and thereafter		—
Total undiscounted lease payments		46,547
Imputed interest		(3,045)
Total lease liabilities		43,502

The maturities of operating lease liabilities as of December 31, 2020 and 2021 are as follows: - continued


		Year ended,
		December 31, 2021
		RMB
2022		28,203
2023		7,034
2024		3,550
2025		382
2026 and thereafter		—
Total undiscounted lease payments		39,169
Imputed interest		(213)
Total lease liabilities		38,956

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2021

COMMITMENTS AND CONTINGENCIES.

COMMITMENTS AND CONTINGENCIES

17. COMMITMENTS AND CONTINGENCIES

Contingencies

Historically the Group has provided guarantees to certain funding partners through a subsidiary that does not hold a financing guarantee license. In October 2019, The China Banking and Insurance Regulatory Commission, promulgated a new regulation pursuant to which this structure, may not deemed appropriate. The Group has ceased the business in 2020, and for existing loans, the Group will execute the contract until the expiration of the loans. The new regulation is silent with respect to any grace period that may be permitted to undertake the restructuring. Management has concluded, with the advice of the Group’s legal counsel, that it is not reasonably possible to estimate any potential financial exposure the group may have as a result of operating the business during this intermediate time period, due to the substantial uncertainties regarding the interpretation and application of the relevant laws and regulations. As of December 31, 2021, the outstanding loan balance under this guarantee model amounted to RMB 0.51 billion, constituting 0.36% of total outstanding loan balance facilitated by the Group (excluding loans delinquent for more than 180 days).

In July 2020 and in February 2021, the China Banking and Insurance Regulatory Commission (“CBIRC”) promulgated two regulations stating that regional banks that carry out internet lending business shall mainly serve local customers, and are not allowed to conduct the internet lending business beyond the local administrative area of their registered place, except those who have no physical business branch, conducting business primarily online as well as meeting the other conditions prescribed by the CBIRC. A significant amount of loans facilitated by the Company are funded by regional banks. The Company believed that, as advised by its PRC legal counsel, given the lack of exact definition regarding the regional banks in the existing laws and regulations, there are uncertainties as to how the regulation will be interpreted and implemented, therefore the impact to the Company’s current business operations cannot be reasonably estimated.

In September, 2021, the People’s Bank of China (“PBOC”) issued a new regulation stating that organizations that engage in credit investigation business should obtain the credit reporting business license and comply with its other provisions within an 18 month grace period from its effectiveness date of January 1, 2022. Given that the rule does not specify the legitimacy of existing data analytics or precision marketing service providers in the financial service industry, the Company has concluded, as advised by its external legal counsel, that it is not reasonably possible to estimate its impact on the Company’s current business operations for credit assessment on borrowers and the potential penalties incurred by the Company thereof.

The Company and its certain current and former officers and directors are named as defendants in a putative securities class action brought by investors who purchased the Company’s securities between April 30, 2020 and July 8, 2021 and who allegedly suffered damages as a result of alleged misstatements and omissions in the Company’s public disclosure documents in connection with its compliance and data collection practices. On January 14, 2022, Lead Plaintiff filed an Amended Complaint. On March 16, 2022, the Company filed a motion to dismiss the Amended Complaint. Given the case is in its preliminary stage, the Company has concluded, as advised by its external legal counsel, that the outcome of the case and the potential loss cannot be reasonably estimated.

Commitments

As of December 31, 2021, the Group has certain capital commitments that primarily related to commitments for construction of the regional headquarters and the affiliated industrial park. The total capital commitments contracted but not yet reflected in the financial statements was not less than RMB500 million (US$78.5 million) as of December 31, 2021. All of these capital commitments will be fulfilled in the future according to the construction progress.

NET INCOME PER SHARE

12 Months Ended

Dec. 31, 2021

NET INCOME PER SHARE

NET INCOME PER SHARE

18. NET INCOME PER SHARE

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


	Year ended	Year ended	Year ended
	December 31,	December 31,	December 31,
	2019	2020	2021
	RMB	RMB	RMB
Numerator:
Net income attributable to shareholders of the Company	2,501,595	3,496,606	5,781,725
Denominator:
Weighted average Class A and Class B ordinary shares outstanding used in computing basic income per ordinary share	288,827,604	298,222,207	307,265,600
Plus: incremental weighted average ordinary shares from assumed exercise of stock options and restricted shares using the treasury stock method	12,110,866	8,442,892	14,132,153
Weighted average Class A and Class B ordinary shares outstanding used in computing diluted income per ordinary share	300,938,470	306,665,099	321,397,753
Basic net income per share	8.66	11.72	18.82
Diluted net income per share	8.31	11.40	17.99

For the years ended December 31, 2019, 2020 and 2021, no options or RSUs were excluded from the calculation of diluted EPS due to the anti-dilutive effect.

SUBSEQUENT EVENTS

12 Months Ended

Dec. 31, 2021

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

19. SUBSEQUENT EVENTS

On March 10, 2022, the Board of Directors of the Company has approved a dividend of US$0.13 per ordinary share, or US$0.26 per ADS, for the fourth fiscal quarter of 2021 in accordance with the Company’s dividend policy, which is expected to be paid on May 13, 2022 to shareholders of record as of the close of business on April 6, 2022.

ADDITIONAL INFORMATION - FINANCIAL STATEMENT SCHEDULE I

12 Months Ended

Dec. 31, 2021

ADDITIONAL INFORMATION - FINANCIAL STATEMENT SCHEDULE I

ADDITIONAL INFORMATION - FINANCIAL STATEMENT SCHEDULE I

360 DIGITECH, INC.

ADDITIONAL INFORMATION - FINANCIAL STATEMENT SCHEDULE I

The following Schedule I has been provided pursuant to the requirements of Rules 12-04(a) and 5-04(c) of Regulation S-X, which require condensed financial information as to the financial position, changes in financial position and results of operations of a parent company as of the same dates and for the same periods for which audited consolidated financial statements have been presented as the restricted net assets of the Company’s PRC subsidiaries and VIEs which may not be transferred to the Company in the forms of loans, advances or cash dividends without the consent of PRC government authorities as of December 31, 2021, was more than 25% of the Company’s consolidated net assets as of December 31, 2021.

CONDENSED BALANCE SHEETS

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


	2020	2021	2021
	RMB	RMB	USD
			(Note 2)
ASSETS
Cash and cash equivalents	19,560	7,117	1,117
Amount due from related parties	—	10,134	1,590
Amount due from subsidiaries and VIEs	1,632,772	1,711,633	268,593
Investments in subsidiaries and VIEs	7,940,533	14,032,928	2,202,071
TOTAL ASSETS	9,592,865	15,761,812	2,473,371
LIABILITIES AND EQUITY
LIABILITIES
Accrued expenses and other current liabilities	2,751	310,373	48,704
Amount due to subsidiaries	27,973	—	—
Short term loans	81,563	247,576	38,850
TOTAL LIABILITIES	112,287	557,949	87,554
EQUITY
Ordinary shares ($0.00001 par value per share 5,000,000,000 shares authorized, 309,833,035 shares issued and 304,453,780 shares outstanding as of December 31, 2020, and 315,433,018 shares issued and 310,486,975 shares outstanding as of December 31, 2021, respectively)	21	22	3
Additional paid-in capital	5,417,406	5,672,267	890,102
Retained earnings	4,137,542	9,642,506	1,513,120
Other comprehensive loss	(74,391)	(110,932)	(17,408)
TOTAL EQUITY	9,480,578	15,203,863	2,385,817
TOTAL LIABILITIES AND EQUITY	9,592,865	15,761,812	2,473,371

360 DIGITECH, INC.

ADDITIONAL INFORMATION - FINANCIAL STATEMENT SCHEDULE I

CONDENSED STATEMENTS OF OPERATIONS

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


	Year ended	Year ended	Year ended	Year ended
	December 31,	December 31,	December 31,	December 31,
	2019	2020	2021	2021
	RMB	RMB	RMB	USD
				(Note 2)
Operating costs and expenses	(12,922)	(16,453)	(51,233)	(8,040)
Interest income (loss)	712	(2,349)	(5,383)	(845)
Foreign exchange losses	(491)	(376)	(133)	(21)
Other income, net	453	15,148	—	—
Net loss before taxes and income from equity in subsidiaries and VIEs	(12,248)	(4,030)	(56,749)	(8,906)
Equity in earnings of subsidiaries and VIEs	2,513,843	3,500,636	5,838,474	916,183
Net income before taxes	2,501,595	3,496,606	5,781,725	907,277
Income tax expenses	—	—	—	—
Net income attributable to shareholders of the Company	2,501,595	3,496,606	5,781,725	907,277
Net income attributable to ordinary shareholders of the Company	2,501,595	3,496,606	5,781,725	907,277

360 DIGITECH, INC.

ADDITIONAL INFORMATION - FINANCIAL STATEMENT SCHEDULE I

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME OR LOSS

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


	Year ended	Year ended	Year ended	Year ended
	December 31,	December 31,	December 31,	December 31,
	2019	2020	2021	2021
	RMB	RMB	RMB	USD
				(Note 2)
Net income attributable to shareholders of the Company	2,501,595	3,496,606	5,781,725	907,277
Other comprehensive income, net of tax of nil:
Foreign currency translation adjustment	21,223	(99,297)	(36,541)	(5,734)
Other comprehensive income (loss)	21,223	(99,297)	(36,541)	(5,734)
Total comprehensive income	2,522,818	3,397,309	5,745,184	901,543
Comprehensive income attributable to ordinary shareholders	2,522,818	3,397,309	5,745,184	901,543

360 DIGITECH, INC.

ADDITIONAL INFORMATION - FINANCIAL STATEMENT SCHEDULE I

CONDENSED STATEMENTS OF CASH FLOWS

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


	Year ended	Year ended	Year ended	Year ended
	December 31,	December 31,	December 31,	December 31,
	2019	2020	2021	2021
	RMB	RMB	RMB	USD
				(Note 2)
Cash Flows from Operating Activities:
Net income attributable to shareholders of the Company	2,501,595	3,496,606	5,781,725	907,277
Adjustments to reconcile net income to net cash used in operating activities:
Equity in earnings of subsidiaries and VIEs	(2,513,843)	(3,500,636)	(5,838,474)	(916,183)
Changes in operating assets and liabilities
Accrued expenses and other current liabilities	(3,070)	(2,625)	31,197	4,896
Amounts due from subsidiaries and VIEs	(276,960)	(65,801)	—	—
Net cash used in operating activities	(292,278)	(72,456)	(25,552)	(4,010)
Cash Flows from Investing Activities:
Investments in subsidiaries	(35,652)	—	—	—
Loans payment to subsidiaries and VIEs	—	—	(153,778)	(24,131)
Net cash used in Investing Activities	(35,652)	—	(153,778)	(24,131)
Cash Flows from Financing Activities:
Payment of IPO costs	(3,080)	—	—	—
Proceeds from short-term loans	—	86,305	169,291	26,565
Net cash (used in) provided by financing activities	(3,080)	86,305	169,291	26,565
Effect of foreign exchange rate changes	1,761	(1,194)	(2,404)	(376)
Net (decrease) increase in cash and cash equivalents	(329,249)	12,655	(12,443)	(1,952)
Cash, cash equivalents, and restricted cash, beginning of year	336,154	6,905	19,560	3,069
Cash, cash equivalents, and restricted cash, end of year	6,905	19,560	7,117	1,117

Supplemental disclosures of cash flow information:


Payables for dividends:		—		—		276,991		43,466

Notes to condensed financial statements

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

2.	As of December 31, 2019, 2020 and 2021, there were no material contingencies, significant provisions of long-term obligations of the Company, except for those which have been separately disclosed in the consolidated financial statements.

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

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2021

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

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

Basis of consolidation

Consolidated Trusts

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Consolidated Trusts - continued

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Consolidated Trusts - continued


	December 31, 2020	December 31, 2021
	RMB	RMB
ASSETS
Restricted cash	348,976	657,075
Loans receivable, net	6,447,233	8,646,950
Prepaid expenses and other assets	101,729	104,515
Loans receivable, net-noncurrent	37,157	1,829,804
Total Assets	6,935,095	11,238,344

	December 31, 2020	December 31, 2021
	RMB	RMB
LIABILITIES
Payable to investors of the consolidated trusts-current	3,117,634	2,304,518
Accrued expenses and other current liabilities	9,608	5,928
Other tax payable	27,694	34,448
Payable to investors of the consolidated trusts-noncurrent	1,468,890	4,010,597
Total liabilities	4,623,826	6,355,491


	Year ended	Year ended	Year ended
	December 31,	December 31,	December 31,
	2019	2020	2021
	RMB	RMB	RMB
Net revenue	1,279,203	2,089,679	1,704,267
Net income	469,825	899,010	708,908


	Year ended	Year ended	Year ended
	December 31,	December 31,	December 31,
	2019	2020	2021
	RMB	RMB	RMB
Net cash provided by (used in) operating activities	382,620	(674,291)	1,329,554
Net cash (used in) provided by investing activities	(8,989,137)	1,964,538	(4,619,696)
Net cash provided by (used in) financing activities	7,512,696	(3,268,383)	1,735,348

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

Through its app and channel partners, the Group provides services through its facilitation of loan transactions between the borrowers and the funding partners through the use of two business models.

The loans facilitated under both models are with terms of 1~36months (the majority are within the terms of 1~12 months) and with principal of up to RMB500.

Loan facilitation and servicing fees

The Group earns loan facilitation and service fees from both off-balance capital heavy loans and capital light loans. The Group’s services mainly consist of:

Providing collection and other repayment processing services for the funding partners over the loan term, referred to as “Post Facilitation Services”;

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued

Revenue recognition - continued

Loan facilitation and servicing fees – continued

For the loans the Group is entitled to the full service fee regardless of whether the borrowers choose to early repay or not, the Group has the unconditional right to the consideration. For the loans facilitated with borrowers who have the option of early repayment and upon termination they do not have the obligation to pay the remaining monthly service fees or not have to pay the excessive portion if the total fees are more than 36% of the origination principal on an annualized basis, the Group’s right to consideration for the service fees of facilitation service is conditional on whether or not the borrowers repay in advance.

●

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

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Revenue recognition - continued

Loan facilitation and servicing fees - continued

Revenue from releasing of guarantee liabilities

Incentives

Financing income

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Revenue recognition - continued

Referral service fees

For the years ended December 31, 2019, 2020 and 2021, RMB 375,551, RMB 265,300 and RMB 620,317 were generated from the referral service, respectively.

Other service fees

Other service fees mainly pertain to the revenue from late fees from borrowers under off-balance capital heavy loans and capital light loans.

The following table presents the disaggregation of revenue for the years ended December 31, 2019, 2020 and 2021:


	Year ended	Year ended	Year ended	Year ended
	December	December	December	December
	31, 2019	31, 2020	31, 2021	31, 2021
	RMB	RMB	RMB	USD
Credit driven services	8,013,391	11,403,675	10,189,167	1,598,902
Loan facilitation and servicing fees-capital heavy	6,273,131	4,596,555	2,326,027	365,004
Revenue from loan facilitation services	4,396,300	3,160,457	1,399,310	219,582
Revenue from post-facilitation services	1,876,831	1,436,098	926,717	145,422
Financing income	1,309,616	2,184,180	2,184,128	342,737
Revenue from releasing of guarantee liabilities	285,407	4,506,935	5,583,135	876,116
Other services fees	145,237	116,005	95,877	15,045
Platform services	1,206,456	2,160,279	6,446,478	1,011,593
Loan facilitation and servicing fees-capital light	814,581	1,826,654	5,677,941	890,993
Revenue from loan facilitation services	672,982	1,416,715	4,484,632	703,737
Revenue from post-facilitation services	141,599	409,939	1,193,309	187,256
Referral services fees	375,551	265,300	620,317	97,341
Other services fees	16,324	68,325	148,220	23,259
Total net revenue	9,219,847	13,563,954	16,635,645	2,610,495

Accounts receivable and Contract Assets, net

For the loans the Group is entitled to the full service fee regardless of whether the borrowers choose to early repay or not, the Group has the unconditional right to the consideration and an accounts receivable is recorded for the monthly service fees allocated to loan facilitation service that have already been delivered in relation to loans facilitated on the Group’s platform when recognizing revenue from loan facilitation service. For the loans facilitated with borrowers who have the option of early repayment and upon termination they do not have the obligation to pay the remaining monthly service fees or do not have to pay the excessive portion if the total fees are more than 36% of the origination principal on an annualized basis, the Group’s right to consideration for the service fees of facilitation service is conditional on whether or not the borrowers repay in advance. In these instances, the Group records a corresponding contract asset when recognizing revenue from loan facilitation service.

Allowance for credit losses

Allowance for credit losses

Cash and cash equivalents and Restricted cash

Cash and cash equivalents

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

Restricted cash

Restricted cash represents:

(i)

(ii)

Security deposit prepaid to third-party guarantee companies

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.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Fair value - continued

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 consolidated statements of operations.

Depreciation expense on property and equipment for the years ended December 31, 2019, 2020 and 2021 were RMB 6,837, RMB 10,439 and RMB 13,483, respectively.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Land use rights, net

Guarantee liabilities

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Guarantee liabilities - continued

The following table sets forth the cumulative effect of the changes on the Group’s consolidated balance sheet as of January 1, 2020 due to the adoption of ASC 326:


		Adjustments
	As of	due to	As of
	December	the Adoption	January
	31, 2019	of ASC 326	01, 2020
ASSETS
Financial assets receivable	1,971,824	117,321	2,089,145
Deferred tax assets	697,348	336,830	1,034,178

LIABILITIES
Guarantee liabilities-stand ready	2,212,125	(63,723)	2,148,402
Guarantee liabilities-contingent	734,730	1,952,545	2,687,275
Other tax payable	263,856	(4,275)	259,581

SHAREHOLDERS’ EQUITY
Retained earnings	2,071,332	(1,430,396)	640,936

Financial assets receivable

Facilitation, origination and servicing

Sales and marketing expenses

Funding costs

Funding costs

Funding cost consists of interest expense the Group pays to funding partners of the Consolidated Trusts and the asset backed securities, trust issuance and costs incurred by the trusts.

Government grant

Income taxes

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Income taxes - continued

Value added taxes ("VAT")

Value added taxes (“VAT”)

Certain risks and concentrations

Detail of the major funding partners that account for 10% or more of total revenues for the years ended December 31, 2019, 2020 and 2021 are as follows:


	the years ended December 31
funding partners	2019		2020		2021
A			*		16.4	%
B			*		14.3	%
C	11.3	%	10.8	%	*
D	15.7	%	10.2	%	*
E	10.6	%

Share-based compensation

Foreign currency translation

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Foreign currency translation - continued

Convenience translation

Employee defined contribution plan

Income per share

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Dividends

Dividends of the Company are recognized when declared.

Segment reporting

Operating leases

Recent accounting pronouncements

Recent accounting pronouncements

Recently Adopted Accounting Guidance

Recent Accounting Guidance Not Yet Adopted

No new accounting pronouncements issued but not yet adopted are expected to have a material impact on the Company’s consolidated financial statements.

ORGANIZATION AND PRINCIPAL ACTIVITIES (Tables)

12 Months Ended

Dec. 31, 2021

ORGANIZATION AND PRINCIPAL ACTIVITIES

Schedule of significant subsidiaries and its consolidated VIEs


	Date of	Place of
	Incorporation	Incorporation
Subsidiaries
HK Qirui International Technology Company Limited (“HK Qirui”)	June 14, 2018	Hong Kong
Shanghai Qiyue Information & Technology Co., Ltd. (“Qiyue”)	August 7, 2018	PRC
Shanghai Qidi Information Technology Co., Ltd. (“Qidi”)	June 27, 2019	PRC
Beihai Qicheng Information & Technology Co., Ltd. (“Qicheng”)	August 6, 2019	PRC
VIEs and VIEs’ Subsidiaries
Shanghai Qiyu Information & Technology Co., Ltd. (“Qiyu”)	July 25, 2016	PRC
Fuzhou 360 Online Microcredit Co., Ltd. (“Fuzhou Microcredit”)	March 30, 2017	PRC
Fuzhou 360 Financing Guarantee Co., Ltd. (“Fuzhou Guarantee”)	June 29, 2018	PRC
Shanghai 360 Financing Guarantee Co., Ltd. (“Shanghai Guarantee”)	May 20, 2019	PRC

Schedule of financial information of VIEs


	December 31,	December 31,
	2020	2021
	RMB	RMB
ASSETS
Cash and cash equivalents	3,709,740	4,605,851
Restricted cash	2,006,874	1,986,512
Security deposit prepaid to third-party guarantee companies	915,144	874,886
Funds receivable from third party payment service providers	131,464	153,151
Accounts receivable and contract assets, net	2,316,357	2,133,477
Financial assets receivable, net	3,480,605	3,806,243
Amounts due from related parties	178,791	608,924
Loans receivable, net	1,018,124	1,197,532
Prepaid expenses and other assets	202,070	235,780
Accounts receivable and contract assets, net-non current	307,937	217,298
Financial assets receivable, net-non current	645,326	597,965
Amounts due from related parties, non-current	—	121,855
Loans receivable, net-non current	50,528	1,029,545
Property and equipment, net	15,370	15,074
Land use rights, net	—	1,018,908
Intangible assets	1,802	3,972
Deferred tax assets	1,353,420	779,291
Other non-current assets	31,539	27,729
Total Assets	16,365,091	19,413,993

LIABILITIES
Accrued expenses and other current liabilities	771,562	1,820,609
Amounts due to related parties	71,562	94,057
Short term loans	105,238	150,000
Guarantee liabilities	7,724,841	8,103,225
Income tax payable	1,151,275	449,553
Other tax payable	215,906	218,017
Deferred tax liabilities	37,843	65,542
Other long-term liabilities	6,806	10,271
Total liabilities	10,085,033	10,911,274


	Year ended	Year ended	Year ended
	December 31, 2019	December 31, 2020	December 31, 2021
	RMB	RMB	RMB
Net revenue	7,318,362	11,062,032	13,674,223
Net income	1,707,839	2,541,386	5,462,150



	Year ended	Year ended	Year ended
	December 31, 2019	December 31, 2020	December 31, 2021
	RMB	RMB	RMB
Net cash provided by operating activities	2,010,741	3,715,112	5,431,654
Net cash provided by (used in) investing activities	134,286	(1,012,415)	(1,427,958)
Net cash provided by (used in) financing activities	198,242	(94,762)	359,082

- 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, 2021

Schedule of disaggregation of revenue

The following table presents the disaggregation of revenue for the years ended December 31, 2019, 2020 and 2021:


	Year ended	Year ended	Year ended	Year ended
	December	December	December	December
	31, 2019	31, 2020	31, 2021	31, 2021
	RMB	RMB	RMB	USD
Credit driven services	8,013,391	11,403,675	10,189,167	1,598,902
Loan facilitation and servicing fees-capital heavy	6,273,131	4,596,555	2,326,027	365,004
Revenue from loan facilitation services	4,396,300	3,160,457	1,399,310	219,582
Revenue from post-facilitation services	1,876,831	1,436,098	926,717	145,422
Financing income	1,309,616	2,184,180	2,184,128	342,737
Revenue from releasing of guarantee liabilities	285,407	4,506,935	5,583,135	876,116
Other services fees	145,237	116,005	95,877	15,045
Platform services	1,206,456	2,160,279	6,446,478	1,011,593
Loan facilitation and servicing fees-capital light	814,581	1,826,654	5,677,941	890,993
Revenue from loan facilitation services	672,982	1,416,715	4,484,632	703,737
Revenue from post-facilitation services	141,599	409,939	1,193,309	187,256
Referral services fees	375,551	265,300	620,317	97,341
Other services fees	16,324	68,325	148,220	23,259
Total net revenue	9,219,847	13,563,954	16,635,645	2,610,495

Accounting Standards Update and Change in Accounting Principle [Table Text Block]


		Adjustments
	As of	due to	As of
	December	the Adoption	January
	31, 2019	of ASC 326	01, 2020
ASSETS
Financial assets receivable	1,971,824	117,321	2,089,145
Deferred tax assets	697,348	336,830	1,034,178

LIABILITIES
Guarantee liabilities-stand ready	2,212,125	(63,723)	2,148,402
Guarantee liabilities-contingent	734,730	1,952,545	2,687,275
Other tax payable	263,856	(4,275)	259,581

SHAREHOLDERS’ EQUITY
Retained earnings	2,071,332	(1,430,396)	640,936

Schedule of estimated useful lives for property and equipment


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

Schedule of major funding partners that account for 10% or more of total revenues


	the years ended December 31
funding partners	2019		2020		2021
A			*		16.4	%
B			*		14.3	%
C	11.3	%	10.8	%	*
D	15.7	%	10.2	%	*
E	10.6	%

Consolidated Trusts

Schedule of financial statements


	December 31, 2020	December 31, 2021
	RMB	RMB
ASSETS
Restricted cash	348,976	657,075
Loans receivable, net	6,447,233	8,646,950
Prepaid expenses and other assets	101,729	104,515
Loans receivable, net-noncurrent	37,157	1,829,804
Total Assets	6,935,095	11,238,344

	December 31, 2020	December 31, 2021
	RMB	RMB
LIABILITIES
Payable to investors of the consolidated trusts-current	3,117,634	2,304,518
Accrued expenses and other current liabilities	9,608	5,928
Other tax payable	27,694	34,448
Payable to investors of the consolidated trusts-noncurrent	1,468,890	4,010,597
Total liabilities	4,623,826	6,355,491


	Year ended	Year ended	Year ended
	December 31,	December 31,	December 31,
	2019	2020	2021
	RMB	RMB	RMB
Net revenue	1,279,203	2,089,679	1,704,267
Net income	469,825	899,010	708,908


	Year ended	Year ended	Year ended
	December 31,	December 31,	December 31,
	2019	2020	2021
	RMB	RMB	RMB
Net cash provided by (used in) operating activities	382,620	(674,291)	1,329,554
Net cash (used in) provided by investing activities	(8,989,137)	1,964,538	(4,619,696)
Net cash provided by (used in) financing activities	7,512,696	(3,268,383)	1,735,348

ACCOUNTS RECEIVABLE AND CONTRACT ASSETS, NET (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of accounts receivables

The Group’s accounts receivable as of December 31, 2020 and 2021 are as follows:


		Allowance for
	Accounts	uncollectible	Accounts
As of December 31, 2020	receivable	Accounts receivable	receivable, net
Accounts receivable from loan facilitation service	151,004	(17,462)	133,542
Accounts receivable from post facilitation service	21,170	(3,958)	17,212
Accounts receivable from referral services	12,180	(1,836)	10,344
Total	184,354	(23,256)	161,098


		Allowance for
	Accounts	uncollectible	Accounts
As of December 31, 2021	receivable	Accounts receivable	receivable, net
Accounts receivable from loan facilitation service	502	(375)	127
Accounts receivable from post facilitation service	5,825	(1,683)	4,142
Accounts receivable from referral services	10,797	—	10,797
Total	17,124	(2,058)	15,066

Schedule of movement of allowance for uncollectible accounts receivables

The movement of allowance for uncollectible accounts receivables for the years ended December 31, 2019, 2020 and 2021 are as follows:


	Opening			Ending
	balance as of	Current	Write off in	balance as of
	January 1,	year net	the current	December 31,
	2019	provision	year	2019
Accounts receivable from loan facilitation service	77,152	171,602	(64,329)	184,425
Accounts receivable from post facilitation service	4,184	12,779	(16,690)	273
Total	81,336	184,381	(81,019)	184,698


	Opening			Ending
	balance as of	Current	Write off in	balance as of
	January 1,	year net	the current	December 31,
	2020	provision	year	2020
Accounts receivable from loan facilitation service	184,425	(102,832)	(64,131)	17,462
Accounts receivable from post facilitation service	273	33,241	(29,556)	3,958
Accounts receivable from referral services	—	1,836	—	1,836
Total	184,698	(67,755)	(93,687)	23,256


	Opening			Ending
	balance as of	Current	Write off in	balance as of
	January 1,	year net	the current	December 31,
	2021	provision	year	2021
Accounts receivable from loan facilitation service	17,462	(11,309)	(5,778)	375
Accounts receivable from post facilitation service	3,958	1,732	(4,007)	1,683
Accounts receivable from referral services	1,836	—	(1,836)	—
Total	23,256	(9,577)	(11,621)	2,058

Schedule of contract assets

The Group’s contract assets as of December 31, 2020 and 2021 are as follows:


		Allowance for
		Uncollectible	Contract assets,
As of December 31, 2020	Contract assets	Contract assets	net
Contract assets from loan facilitation service	2,714,861	(222,526)	2,492,335
Contract assets from post facilitation service	29,259	(10,045)	19,214
Contract assets from referral services	29,818	—	29,818
Total	2,773,938	(232,571)	2,541,367


		Allowance for
		Uncollectible	Contract assets,
As of December 31, 2021	Contract assets	Contract assets	net
Contract assets from loan facilitation service	3,097,872	(287,397)	2,810,475
Contract assets from post facilitation service	282,767	(26,457)	256,310
Contract assets from referral services	238,877	—	238,877
Total	3,619,516	(313,854)	3,305,662

Schedule of movement of allowance uncollectible contract assets

The movement of allowance for uncollectible contract assets for the years ended December 31, 2019, 2020 and 2021 are as follows:


	Opening			Ending
	balance as of	Current	Write off in	balance as of
	January 1,	year net	the current	December 31,
	2019	provision	year	2019
Contract assets from loan facilitation service	758	8,895	(2,991)	6,662
Contract assets from post facilitation service	421	1,728	(1,918)	231
Total	1,179	10,623	(4,909)	6,893


	Opening			Ending
	balance as of	Current	Write off in	balance as of
	January 1,	year net	the current	December 31,
	2020	provision	year	2020
Contract assets from loan facilitation service	6,662	220,582	(4,718)	222,526
Contract assets from post facilitation service	231	11,217	(1,403)	10,045
Total	6,893	231,799	(6,121)	232,571


	Opening			Ending
	balance as of	Current	Write off in	balance as of
	January 1,	year net	the current	December 31,
	2021	provision	year	2021
Contract assets from loan facilitation service	222,526	157,708	(92,837)	287,397
Contract assets from post facilitation service	10,045	52,379	(35,967)	26,457
Total	232,571	210,087	(128,804)	313,854

contract assets by year of origination

The principal of accounts receivable and contract assets by year of origination:


	2021	2020	2019	Total
As of December 31, 2021
Loan facilitation service	2,708,137	390,236	—	3,098,373
Post facilitation service	249,726	38,867	—	288,593
Referral Service	249,674	—	—	249,674
Total	3,207,537	429,103	—	3,636,640

Due From Related Parties

Summary of accounts receivable and contract assets

The Group’s accounts receivable and contract assets generated from related parties and recorded in amounts due from related parties as of December 31, 2020 and 2021 are as follows:


	Accounts	Allowance for	Accounts
	receivable	uncollectible	receivable
	and contract	accounts receivable	and contract
As of December 31, 2020	assets	and contract assets	Assets, net

Accounts receivable from loan facilitation service	—	—	—
Accounts receivable from post facilitation service	—	—	—
Accounts receivable from referral services	1,004	—	1,004
Contract assets from loan facilitation service	82,528	(8,072)	74,456
Contract assets from post facilitation service	951	(227)	724
Total	84,483	(8,299)	76,184


	Accounts	Allowance for	Accounts
	receivable	uncollectible	receivable
	and contract	accounts receivable	and contract
As of December 31, 2021	assets	and contract assets	Assets, net

Accounts receivable from loan facilitation service	—	—	—
Accounts receivable from post facilitation service	—	—	—
Accounts receivable from referral services	—	—	—
Contract assets from loan facilitation service	953,846	(120,208)	833,638
Contract assets from post facilitation service	5,178	(1,809)	3,369
Total	959,024	(122,017)	837,007

Summary of movement of allowance for uncollectible accounts receivables and contract assets


	Opening			Ending
	balance as of	Current	Write off in	balance as of
	January 1,	year net	the current	December 31,
	2020	provision	year	2020

Accounts receivable from loan facilitation service	9,648	30,215	(39,863)	—
Accounts receivable from post facilitation service	481	14,533	(15,014)	—
Contract assets from loan facilitation service	2,062	22,683	(16,673)	8,072
Contract assets from post facilitation service	144	7,639	(7,556)	227
Total	12,335	75,070	(79,106)	8,299


	Opening			Ending
	balance as of	Current	Write off in	balance as of
	January 1,	year net	the current	December 31,
	2021	provision	year	2021

Accounts receivable from loan facilitation service	—	—	—	—
Accounts receivable from post facilitation service	—	—	—	—
Contract assets from loan facilitation service	8,072	117,613	(5,477)	120,208
Contract assets from post facilitation service	227	6,482	(4,900)	1,809
Total	8,299	124,095	(10,377)	122,017

The principal of accounts receivable and contract assets by year of origination:


	2021	2020	2019	Total
As of December 31, 2021
Loan facilitation service	2,708,137	390,236	—	3,098,373
Post facilitation service	249,726	38,867	—	288,593
Referral Service	249,674	—	—	249,674
Total	3,207,537	429,103	—	3,636,640

FINANCIAL ASSETS RECEIVABLE (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of financial assets receivable


	December 31,	December 31,
	2020	2021
	RMB	RMB
Financial assets receivable	4,601,642	4,897,854
Allowance for uncollectible receivables	(390,834)	(493,646)
Financial assets receivable, net	4,210,808	4,404,208

Schedule of movement of financial assets receivable


	Year ended	Year ended	Year ended
	December 31, 2019	December 31, 2020	December 31, 2021
	RMB	RMB	RMB
Balance at beginning of year	1,250,277	2,142,627	4,601,642
Adoption of ASC 326	—	117,321	—
Addition in the current year	3,650,311	6,885,976	6,626,322
Collection in the current year	(2,721,168)	(4,478,593)	(6,189,783)
Write-off	(36,793)	(65,689)	(140,327)
Balance at end of year	2,142,627	4,601,642	4,897,854

Schedule of movement of allowance for uncollectible receivables


	Year ended	Year ended	Year ended
	December 31, 2019	December 31, 2020	December 31, 2021
	RMB	RMB	RMB
Balance at beginning of year	56,656	170,803	390,834
Current year net provision	150,940	285,720	243,139
Write-off	(36,793)	(65,689)	(140,327)
Balance at end of year	170,803	390,834	493,646

Schedule of aging of loans


		31-60	over 60		Total
	0-30 days	days	days		financial
	past	past	past		assets
	due	due	due	Current	receivable
December 31, 2020	15,673	9,572	—	4,576,397	4,601,642
December 31, 2021	15,594	12,038	—	4,870,222	4,897,854

Principal of financial assets receivable by year of origination


	2021	2020	2019	Total

December 31, 2021	4,078,249	819,605	—	4,897,854

Due From Related Parties

Schedule of financial assets receivable


	December 31,	December 31,
	2020	2021
	RMB	RMB

Financial assets receivable	3,149	—
Allowance for uncollectible receivables	(2,033)	—
Financial assets receivable, net	1,116	—

Schedule of movement of financial assets receivable


	Year ended	Year ended
	December 31,	December 31,
	2020	2021
	RMB	RMB

Balance at beginning of year	130,765	3,149
Addition in the current year	35,151	—
Collection in the current year	(124,830)	(309)
Write-off	(37,937)	(2,840)
Balance at end of year	3,149	—

Schedule of movement of allowance for uncollectible receivables


	Year ended	Year ended
	December 31,	December 31,
	2020	2021
	RMB	RMB

Balance at beginning of year	13,633	2,033
Current year net provision	26,337	807
Write-off	(37,937)	(2,840)
Balance at end of year	2,033	—

LOANS RECEIVABLE, NET (Tables)

12 Months Ended

Dec. 31, 2021

LOANS RECEIVABLE, NET.

Schedule of loans receivable


	December 31,	December 31,
	2020	2021
	RMB	RMB
Loans receivable	8,010,081	13,652,723
Less allowance for loan losses	(421,767)	(948,893)
Loans receivable, net	7,588,314	12,703,830

Schedule of aging of loans

The following table presents the aging of loans as of December 31, 2020 and 2021:


	0-30 days	31-60 days	over 60 days	Total amount
	past due	past due	past due	past due	Current	Total loans
December 31, 2020 (RMB)	43,766	32,038	—	75,804	7,934,277	8,010,081
December 31, 2021 (RMB)	113,771	87,171	—	200,942	13,451,781	13,652,723

Schedule of movement of allowance for loan losses


	Year ended	Year ended	Year ended
	December 31,	December 31,	December 31,
	2019	2020	2021
	RMB	RMB	RMB
Balance at beginning of year	25,895	351,639	421,767
Provision for loan losses	486,991	698,701	965,419
Gross write-off	(161,976)	(636,766)	(475,352)
Recoveries	729	8,193	37,059
Balance at end of year	351,639	421,767	948,893

principal of loans receivable by year of origination

The principal of loans receivable as of December 31, 2021 by year of origination is as follows:

The principal of loans receivable as of December 31, 2020 by year of origination is as follows:


	2020	2019	Total loans
Loans receivable	7,987,657	22,424	8,010,081

LAND USE RIGHTS, NET (Tables)

12 Months Ended

Dec. 31, 2021

LAND USE RIGHTS, NET.

Schedule of land use rights


		Year ended
		December 31,
		2021
		RMB

Cost		1,036,178
Accumulated amortization		(17,270)
Land use rights, net		1,018,908

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2021

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Schedule of accrued expenses and other current liabilities


	December 31,	December 31,
	2020	2021
	RMB	RMB

User traffic direction fees	201,041	472,269
Payable to funding partners (1)	163,234	422,423
Accrued payroll and welfare	144,784	409,216
Payable for third-party service fee	196,718	298,411
Payable to shareholder of non-controlling interests (2)	—	296,617
Dividend payable(3)	—	276,991
Lease liability	28,528	25,779
Others	75,456	56,623
Total	809,761	2,258,329

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

(3)All dividends has been paid in January 2022.

GUARANTEE LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2021

GUARANTEE LIABILITIES.

Schedule of movement of guarantee liabilities


		RMB
As of January 1, 2020		2,148,402
Provision at the inception of new loans		6,921,127
Released into revenue		(4,896,032)
As of December 31, 2020		4,173,497

As of January 1, 2021		4,173,497
Provision at the inception of new loans		6,626,322
Released into revenue		(5,981,675)
As of December 31, 2021		4,818,144

Guarantee liabilities-contingent


		RMB
As of January 1, 2020		2,687,275
Provision for contingent liabilities		4,794,127
Net payout (1)		(3,937,948)
As of December 31, 2020		3,543,454

As of January 1, 2021		3,543,454
Provision for contingent liabilities		3,078,224
Net payout (1)		(3,336,597)
As of December 31, 2021		3,285,081

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

Schedule of aging of the Group's contractual amounts of the outstanding loans subject to guarantee

The following table summarizes the aging of the Group’s contractual amounts of the outstanding loans subject to guarantee:

31-60

61-90

Over 90

0-30 days

days

past

due

Current

Total loans

December 31, 2020 (RMB):

355,252

158,048

68,919

—

55,019,645

55,601,864

December 31, 2021 (RMB):

446,780

235,769

57,526

—

49,117,630

49,857,705

RELATED PARTY BALANCES AND TRANSACTIONS (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of major related parties and their relationships with the Group

The table below sets forth the major related parties and their relationships with the Group, with which the Group entered into transactions during the years ended December 31, 2019, 2020 and 2021:


Name of related parties		Relationship with the group
360 Security Technology Inc. (“360 Group”)		Entity controlled by Mr. Zhou, the Chairman of the Group
Beijing Qifutong Technology Co., Ltd. (“Qifutong”)		An affiliate of 360 Group, ultimately controlled by Mr. Zhou, the Chairman of the Group
Shanghai Qibutianxia Technology Co., Ltd. (“Qibutianxia”)		Entity controlled by Mr. Zhou, the Chairman of the Group
Beijing Qicaitianxia Technology Co., Ltd. (“Qicaitianxia”)		Entity controlled by Mr. Zhou, the Chairman of the Group
Beijing Qihu Technology Co., Ltd. (“Qihu”)		An affiliate of 360 Group, ultimately controlled by Mr. Zhou, the Chairman of the Group
Jinshang Consumer Finance Co.,Ltd. (“Jinshang”)		An affiliate of an entity controlled by Mr. Zhou, the Chairman of the Group
Beijing Zixuan Information Technology Co., Ltd. (“Beijing Zixuan”)		Entity controlled by Mr. Zhou, the Chairman of the Group
Xixian New Area Financial Asset Exchange Co., Ltd (“Xixian”)		Entity controlled by Mr. Zhou, the Chairman of the Group
Beijing Qifei Xiangyi Consultation Co., Ltd (“ Beijing Qifei”)		Entity controlled by Mr. Zhou, the Chairman of the Group
Hangzhou Qifei Huachuang Technology Co, Ltd (“ Hangzhou Qifei ”)		Investee of the Group
Shanghai Jiehu Internet Technology Co., Ltd. (“Shanghai Jiehu”)		An affiliate of 360 Group, ultimately controlled by Mr. Zhou, the Chairman of the Group
Kincheng Bank of Tianjin Co., Ltd. (“Kincheng”)		An affiliate of an entity controlled by Mr. Zhou, the Chairman of the Group
Tianjin Yujie Technology Co., Ltd. (Yujie)		Entity controlled by Mr. Zhou, the Chairman of the Group
Beijing Hongying Information Technology Co., Ltd. (“Hongying”)		Entity controlled by Mr. Zhou, the Chairman of the Group
Shareholders		Shareholders of the Group
Others		Entities controlled by Mr. Zhou, the Chairman of the Group

Schedule of transactions with related parties


	Year ended	Year ended	Year ended
	December 31,	December 31,	December 31,
	2019	2020	2021
	RMB	RMB	RMB
Referral service fee charged by Yujie	—	15,152	347,585
Bandwidth service fee charged by Qihu	46,191	80,514	108,743
Brand fees charged by Qihu	—	—	23,585
Referral service fee charged by Qihu	47,640	24,507	19,789
Rental expenses charged by Beijing Qifei	5,074	7,137	—
Rental expenses charged by Hongying	—	—	11,899
Corporate expenses allocated from Qibutianxia	3,230	11,321	7,075
Labor cost charged by Xixian	10,657	2,130	—
Referral service fee charged by Qifutong	7,905	—	—
Others	8,364	3,120	4,378
Total	129,061	143,881	523,054

Schedule of services provided to the related parties


	Year ended	Year ended	Year ended
	December 31,	December 31,	December 31,
	2019	2020	2021
	RMB	RMB	RMB
Referral service fee charged from Qicaitianxia	197,018	3,558	—
Loan facilitation services fee charged from Kincheng	—	15,254	1,574,456
Loan facilitation services fee charged from Jinshang	59,871	150,515	219,513
Loan facilitation services fee charged from Beijing Zixuan	517,776	47,516	37
Post-facilitation services fee charged from Kincheng	—	433	297,489
Post-facilitation services fee charged from Jinshang	43,497	48,094	69,398
Post-facilitation services fee charged from Beijing Zixuan	215,019	74,417	56
Others	4,299	6,591	17,612
Total	1,037,480	346,378	2,178,561

Schedule of amounts due from related parties


	December 31,	December 31,
	2020	2021
	RMB	RMB
Kincheng	13,505	771,335
Jinshang	158,655	194,123
Shareholders(1)	11,100	10,158
Beijing Zixuan	5,608	—
Others	4,437	2,559
Total	193,305	978,175

(1)	The balance as of December 31, 2021 represents the ADS registration fees incurred on behalf of certain shareholders that are to be reimbursed from them.

Schedule of amounts due to related parties


	December 31,	December 31,
	2020	2021
	RMB	RMB
Qibutianxia	13,656	9,156
Qihu	24,624	144,999
Yujie	16,061	30,165
Others	17,221	29,737
Total	71,562	214,057

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

INCOME TAXES

Schedule of current and deferred portion of income tax expenses


	Year ended	Year ended	Year ended
	December 31,	December 31,	December 31,
	2019	2020	2021
	RMB	RMB	RMB
Current tax	1,179,089	1,355,651	1,053,979
Deferred tax	(713,106)	(769,615)	204,217
Total	465,983	586,036	1,258,196

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


	Year ended		Year ended		Year ended
	December 31,		December 31,		December 31,
	2019		2020		2021
	RMB		RMB		RMB
Income before income tax benefit	2,967,287		4,081,745		7,022,709
Statutory tax rate in the PRC	25	%	25	%	25	%
Income tax at statutory tax rate	741,822		1,020,436		1,755,677
Effect of different tax rate of subsidiary operation in other jurisdiction	3,875		3,728		11,708
Effect of non-deductible expenses	63,070		75,881		64,841
Effect of preferential tax rate and tax exemption	(202,095)		(452,033)		(487,655)
Effect of enacted tax rate change of deferred tax assets/liabilities	(95,048)		248		1,125
Effect of research and development super-deduction	(47,846)		(69,802)		(106,515)
Effect of valuation allowance movement of deferred tax assets	2,205		7,578		19,015
Income tax expense	465,983		586,036		1,258,196

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


	Years Ended December 31,
	(Amounts in Thousands Except Per Share Data)
	2019	2020	2021
	RMB	RMB	RMB
Tax saving amount due to preferential tax rates	297,143	451,785	486,530
Income per share effect-basic	1.03	1.51	1.58
Income per share effect-diluted	0.99	1.47	1.51

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


	December 31,	December 31,
	2020	2021
	RMB	RMB
Deferred tax assets
Guarantee liabilities	1,628,214	1,263,699
Provision for accounts receivable and contract assets and financial assets receivable	34,889	34,889
Provision for loan losses	186,462	330,684
Depreciation of land use rights	—	14,162
Net operating loss carry forwards	22,785	37,376
Gross deferred tax assets	1,872,350	1,680,810
Valuation allowance on deferred tax assets	(9,783)	(28,798)
Total deferred tax assets	1,862,567	1,652,012
Uncollected revenues	(501,848)	(938,721)
Total deferred tax liabilities	(501,848)	(938,721)
Net deferred tax assets	1,360,719	713,291

SHARE-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2021

SHARE-BASED COMPENSATION.

Schedule of assumptions


		Year ended,
		December 31, 2021
		RMB
Risk-free rate of interest		2.76%
Estimated volatility rate		67.27%
Dividend yield		5.10%
Expected life (years)		5.00
Exercise price		USD 0.00001

Summary of option activity


			Weighted
		Weighted	Average
	Number of	Average	Remaining	Aggregate
	Options	Exercise Price	Contract Life	Intrinsic Value
		USD	Years	RMB
Options outstanding at January 1, 2021	7,611,387	0.00001	6.20	292,734
Options granted in 2021	2,400	0.00001	9.64	175
Options converted in 2021	10,264,366	0.00001	8.89	749,915
Options forfeited in 2021	(348,236)	0.00001	5.84	(25,442)
Options exercised in 2021	(4,584,580)	0.00001	4.94	(334,949)
Options outstanding at December 31, 2021	12,945,337	0.00001	8.03	945,786
Options exercisable at December 31, 2021	4,051,903	0.00001	7.01	296,032
Options vested or expected to be vested at December 31, 2021	12,945,337	0.00001	8.03	945,786

Summary of the restricted shares


		Weighted-Average
	Number of	Grant-Date
	Restricted Shares	Fair Value
Outstanding at January 1, 2021	16,321,820	40.07
Granted	3,102,418	68.45
Converted	(10,264,366)	40.84
Forfeited	(749,794)	38.39
Vested	(1,448,632)	37.06
Outstanding at December 31, 2021	6,961,446	52.38

Schedule of compensation costs


	Year ended,	Year ended,
	December 31, 2020	December 31, 2021
	RMB	RMB
Facilitation, origination and servicing expenses	72,192	75,209
Sales and marketing expenses	8,164	12,340
General and administrative expenses	220,805	166,373
Total	301,161	253,922

LEASE (Tables)

12 Months Ended

Dec. 31, 2021

LEASE

Schedule of supplemental cash flow information related to leases


	Year ended,	Year ended,
	December 31, 2020	December 31, 2021
	RMB	RMB
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	30,536	33,252
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	36,236	25,349

Schedule of ROU assets and lease liabilities


	Year ended,	Year ended,
	December 31, 2020	December 31, 2021
	RMB	RMB
Right-of-use assets	48,990	42,606
Operating lease liabilities-current	28,528	25,779
Operating lease liabilities-non current	14,974	13,177

Schedule of weighted-average remaining lease term and weighted-average discount rate


	Year ended,		Year ended,
	December 31, 2020		December 31, 2021
	RMB		RMB
Weighted-average remaining lease term	1.69		2.09
Weighted-average discount rate	6.16	%	6.22	%

Schedule of maturities of operating lease liabilities

The maturities of operating lease liabilities as of December 31, 2020 and 2021 are as follows:


		Year ended,
		December 31, 2020
		RMB
2021		32,255
2022		13,582
2023		710
2024		—
2025 and thereafter		—
Total undiscounted lease payments		46,547
Imputed interest		(3,045)
Total lease liabilities		43,502

The maturities of operating lease liabilities as of December 31, 2020 and 2021 are as follows: - continued


		Year ended,
		December 31, 2021
		RMB
2022		28,203
2023		7,034
2024		3,550
2025		382
2026 and thereafter		—
Total undiscounted lease payments		39,169
Imputed interest		(213)
Total lease liabilities		38,956

NET INCOME PER SHARE (Tables)

12 Months Ended

Dec. 31, 2021

NET INCOME PER SHARE

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


	Year ended	Year ended	Year ended
	December 31,	December 31,	December 31,
	2019	2020	2021
	RMB	RMB	RMB
Numerator:
Net income attributable to shareholders of the Company	2,501,595	3,496,606	5,781,725
Denominator:
Weighted average Class A and Class B ordinary shares outstanding used in computing basic income per ordinary share	288,827,604	298,222,207	307,265,600
Plus: incremental weighted average ordinary shares from assumed exercise of stock options and restricted shares using the treasury stock method	12,110,866	8,442,892	14,132,153
Weighted average Class A and Class B ordinary shares outstanding used in computing diluted income per ordinary share	300,938,470	306,665,099	321,397,753
Basic net income per share	8.66	11.72	18.82
Diluted net income per share	8.31	11.40	17.99

ORGANIZATION AND PRINCIPAL ACTIVITIES - Reorganization and Variable Interest Entity (Details)	12 Months Ended
	Dec. 31, 2021
Exclusive Option Agreement
Reorganization and VIEs
Agreement term (in years)	10 years
Extended term of agreement (in years)	10 years
Exclusive Consultation and Services Agreement
Reorganization and VIEs
Agreement term (in years)	10 years
Extended term of agreement (in years)	10 years
Loan Agreement
Reorganization and VIEs
Notice Period for Termination of Agreement (in Months)	1 month
Equity Pledge Agreement
Reorganization and VIEs
Percentage of Equity interest pledged to WFOE	100.00%

ORGANIZATION AND PRINCIPAL ACTIVITIES - Financial statement amounts and balances of the VIEs (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)	Dec. 31, 2021 USD ($)
ASSETS
Cash and cash equivalents	¥ 6,116,360		¥ 4,418,416	¥ 2,108,123	$ 959,790
Restricted cash	2,643,587		2,355,850	1,727,727	414,836
Security deposit prepaid to third-party guarantee companies	874,886		915,144		137,289
Funds receivable from third party payment service providers	153,151		131,464		24,033
Accounts receivable and contract assets, net	3,097,254		2,394,528		486,027
Financial assets receivable, net	4,404,208		4,210,808
Amounts due from related parties	837,324		193,305		131,394
Loans receivable, net	9,844,481		7,500,629		1,544,814
Prepaid expenses and other assets	383,937		401,224		60,246
Accounts receivable and contract assets, net-non current	223,474		307,937		35,068
Financial assets receivable, net-non current	597,965		645,326		93,834
Amounts due from related parties, non-current	140,851				22,103
Loans receivable, net-noncurrent	2,859,349		87,685		448,694
Property and equipment, net	24,941		19,360		3,914
Land use rights, net	1,018,908				159,889
Intangible assets	4,961		3,403		778
Deferred tax assets	834,717		1,398,562	697,348	130,985
Other non-current assets	42,606		48,990		6,686
TOTAL ASSETS	33,504,995		24,387,305		5,257,663
LIABILITIES
Accrued expenses and other current liabilities	2,258,329		809,761		354,381
Amounts due to related parties	214,057		71,562		33,590
Short term loans	397,576		186,800		62,388
Income tax payable	624,112		1,227,314		97,937
Deferred tax liabilities	121,426		37,843		19,054
Other long-term liabilities	13,177		14,974		2,068
TOTAL LIABILITIES	18,288,386		14,906,215		$ 2,869,846
Net cash provided by operating activities	5,789,700	$ 908,530	5,325,810	2,973,075
Net cash provided by (used in) investing activities	(6,064,328)	(951,625)	892,770	(8,860,441)
Net cash provided by (used in) financing activities	2,263,720	$ 355,227	(3,282,400)	7,707,858
Consolidated VIEs
ASSETS
Cash and cash equivalents	4,605,851		3,709,740
Restricted cash	1,986,512		2,006,874
Security deposit prepaid to third-party guarantee companies	874,886		915,144
Funds receivable from third party payment service providers	153,151		131,464
Accounts receivable and contract assets, net	2,133,477		2,316,357
Financial assets receivable, net	3,806,243		3,480,605
Amounts due from related parties	608,924		178,791
Loans receivable, net	1,197,532		1,018,124
Prepaid expenses and other assets	235,780		202,070
Accounts receivable and contract assets, net-non current	217,298		307,937
Financial assets receivable, net-non current	597,965		645,326
Amounts due from related parties, non-current	121,855
Loans receivable, net-noncurrent	1,029,545		50,528
Property and equipment, net	15,074		15,370
Land use rights, net	1,018,908
Intangible assets	3,972		1,802
Deferred tax assets	779,291		1,353,420
Other non-current assets	27,729		31,539
TOTAL ASSETS	19,413,993		16,365,091
LIABILITIES
Accrued expenses and other current liabilities	1,820,609		771,562
Amounts due to related parties	94,057		71,562
Short term loans	150,000		105,238
Guarantee liabilities	8,103,225		7,724,841
Income tax payable	449,553		1,151,275
Other tax payable	218,017		215,906
Deferred tax liabilities	65,542		37,843
Other long-term liabilities	10,271		6,806
TOTAL LIABILITIES	10,911,274		10,085,033
Net revenue	13,674,223		11,062,032	7,318,362
Net income	5,462,150		2,541,386	1,707,839
Net cash provided by operating activities	5,431,654		3,715,112	2,010,741
Net cash provided by (used in) investing activities	(1,427,958)		(1,012,415)	134,286
Net cash provided by (used in) financing activities	¥ 359,082		¥ (94,762)	¥ 198,242
Percentage of consolidated revenues	82.00%	82.00%	82.00%	79.00%
Percentage of consolidated total assets	58.00%	58.00%	67.00%
Percentage of consolidated total liabilities	60.00%	60.00%	68.00%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Consolidated Trusts (Details) ¥ in Thousands, $ in Thousands	1 Months Ended	12 Months Ended
	Nov. 30, 2017	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 30, 2021 CNY (¥)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Asset based Securities, maximum issue scale				¥ 10,000,000	¥ 5,000,000
Asset based Securities, beneficial rights value				1,700,000	2,300,000		¥ 4,700,000
Provision for loan losses		¥ 965,419		698,701	486,991
Loans written off		475,352		636,766	161,976
ASSETS.
Restricted Cash		2,643,587		2,355,850	1,727,727	$ 414,836
Loans receivable, net		9,844,481		7,500,629		1,544,814
Prepaid expenses and other assets		383,937		401,224		60,246
Loans receivable, net-noncurrent		2,859,349		87,685		448,694
TOTAL ASSETS		33,504,995		24,387,305		5,257,663
LIABILITIES.
Payable to investors of the consolidated trusts-current		2,304,518		3,117,634		361,629
Accrued expenses and other current liabilities		2,258,329		809,761		354,381
Payable to investors of the consolidated trusts-noncurrent		4,010,597		1,468,890		629,350
TOTAL LIABILITIES		18,288,386		14,906,215		$ 2,869,846
Net revenue		16,635,645	$ 2,610,495	13,563,954	9,219,847
Net cash provided by (used in) operating activities		5,789,700	908,530	5,325,810	2,973,075
Net cash (used in) provided by investing activities		(6,064,328)	(951,625)	892,770	(8,860,441)
Net cash provided by (used in) financing activities		¥ 2,263,720	$ 355,227	(3,282,400)	7,707,858
Minimum
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Term of the plan		1 year	1 year
Maximum
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Term of the plan		2 years	2 years
Subordinated tranche securities
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ABS purchased, value		¥ 602,000
Senior tranche securities
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ABS purchased, value		794,380
Shenzhen Stock Exchange \| Listing And Transferring Assets Based Securities [Member]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Asset based Securities, maximum issue scale		4,000,000
Shanghai Stock Exchange \| Listing And Transferring Assets Based Securities [Member]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Asset based Securities, maximum issue scale		8,000,000
Consolidated Trusts
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Payable to investors of the consolidated trusts - current		2,139,063		1,765,175
Payable to investors of the consolidated trusts - noncurrent		3,903,597		1,468,890
Repurchase of delinquent loans		904,586		831,203
Repurchase of performing loans upon liquidation of consolidated trusts		12,686		17,185
Provision for loan losses		661,402		595,047	464,379
Loans written off		1,033,228		603,758	142,882
ASSETS.
Restricted Cash		657,075		348,976
Loans receivable, net		8,646,950		6,447,233
Prepaid expenses and other assets		104,515		101,729
Loans receivable, net-noncurrent		1,829,804		37,157
TOTAL ASSETS		11,238,344		6,935,095
LIABILITIES.
Payable to investors of the consolidated trusts-current		2,304,518		3,117,634
Accrued expenses and other current liabilities		5,928		9,608
Other tax payable		34,448		27,694
Payable to investors of the consolidated trusts-noncurrent		4,010,597		1,468,890
TOTAL LIABILITIES		6,355,491		4,623,826
Net revenue		1,704,267		2,089,679	1,279,203
Net income		708,908		899,010	469,825
Net cash provided by (used in) operating activities		1,329,554		(674,291)	382,620
Net cash (used in) provided by investing activities		(4,619,696)		1,964,538	(8,989,137)
Net cash provided by (used in) financing activities		¥ 1,735,348		¥ (3,268,383)	¥ 7,512,696
Percentage of consolidated revenues		10.00%	10.00%	15.00%	14.00%
Percentage of consolidated total assets		34.00%	34.00%	28.00%
Percentage of consolidated total liabilities		35.00%	35.00%	31.00%
Consolidated Trusts \| Minimum
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Repurchase of loans delinquent period	30 days
Consolidated Trusts \| Maximum
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Repurchase of loans delinquent period	90 days

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue recognition , Restricted cash and Fair value (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021 CNY (¥) item	Dec. 31, 2021 USD ($) item	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)
Disaggregation of Revenue [Line Items]
Number of business models \| item	2	2
Obligation to pay interest and late fees, maximum threshold percentage	36.00%	36.00%
Total net revenue	¥ 16,635,645	$ 2,610,495	¥ 13,563,954	¥ 9,219,847
Revenue, net of value-added tax and related surcharges:
Performance obligations	1,637,484		1,195,945
Revenue recognized from performance obligations	210,818		73,394
Taxes excluded from revenues	995,060		795,388	547,344
Restricted cash
Restricted cash related to deposit to the funding banks	¥ 1,986,512		¥ 2,006,874
Operating period	2 years	2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Revenue, net of value-added tax and related surcharges:
Revenue, remaining performance obligation, Expected timing of satisfaction, period			12 months
Revenue, remaining performance obligation (as a percent)	88.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue, net of value-added tax and related surcharges:
Revenue, remaining performance obligation, Expected timing of satisfaction, period	12 months
Revenue, remaining performance obligation (as a percent)			88.00%
Credit driven services
Disaggregation of Revenue [Line Items]
Total net revenue	¥ 10,189,167	$ 1,598,902	¥ 11,403,675	8,013,391
Loan facilitation and servicing fees-capital heavy
Disaggregation of Revenue [Line Items]
Total net revenue	2,326,027	365,004	4,596,555	6,273,131
Revenue from post-facilitation services
Disaggregation of Revenue [Line Items]
Total net revenue	1,399,310	219,582	3,160,457	4,396,300
Revenue from post-origination services
Disaggregation of Revenue [Line Items]
Total net revenue	926,717	145,422	1,436,098	1,876,831
Financing income
Disaggregation of Revenue [Line Items]
Total net revenue	2,184,128	342,737	2,184,180	1,309,616
Releasing of guarantee liabilities
Disaggregation of Revenue [Line Items]
Total net revenue	5,583,135	876,116	4,506,935	285,407
Other services fees.
Disaggregation of Revenue [Line Items]
Total net revenue	95,877	15,045	116,005	145,237
Platform services
Disaggregation of Revenue [Line Items]
Total net revenue	6,446,478	1,011,593	2,160,279	1,206,456
Loan facilitation and servicing fees-capital light
Disaggregation of Revenue [Line Items]
Total net revenue	5,677,941	890,993	1,826,654	814,581
Revenue from loan facilitation services
Disaggregation of Revenue [Line Items]
Total net revenue	4,484,632	703,737	1,416,715	672,982
Revenue from post-origination services
Disaggregation of Revenue [Line Items]
Total net revenue	1,193,309	187,256	409,939	141,599
Referral services
Disaggregation of Revenue [Line Items]
Total net revenue	620,317	97,341	265,300	375,551
Other services fees
Disaggregation of Revenue [Line Items]
Total net revenue	¥ 148,220	$ 23,259	¥ 68,325	¥ 16,324
Loan facilitation service
Disaggregation of Revenue [Line Items]
Number of separate services provided for each loan facilitated \| item	3	3
Number of separate performance obligations under ASC 606 \| item	2	2
Minimum
Disaggregation of Revenue [Line Items]
Loan terms (In months)	1 month	1 month
Maximum
Disaggregation of Revenue [Line Items]
Loan terms (In months)	36 months	36 months
Loan amount	¥ 500

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and equipment, net (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 USD ($)
Property and equipment, net
Depreciation expense on property and equipment	¥ 13,483	¥ 10,439	$ 6,837
Electronic Equipment
Property and equipment, net
Property, Plant and Equipment, Useful Life	5 years
Furniture and office equipment
Property and equipment, net
Property, Plant and Equipment, Useful Life	5 years

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Guarantee liabilities (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Jan. 01, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)
ASSETS.
Financial assets receivable					¥ 1,971,824
Deferred tax assets	¥ 834,717	$ 130,985	¥ 1,398,562		697,348
LIABILITIES.
Guarantee liabilities-stand ready	4,818,144	756,072	4,173,497		2,212,125
Guarantee liabilities-contingent	3,285,081	515,501	3,543,454		734,730
Other tax payable	241,369	37,876	254,486		263,856
SHAREHOLDERS' EQUITY
Retained earnings	¥ 9,642,506	$ 1,513,120	¥ 4,137,542		2,071,332
Adjustment
LIABILITIES.
Guarantee liabilities-stand ready					2,148,402
ASU No. 2016-13 \| Adjustment
ASSETS.
Financial assets receivable					117,321
Deferred tax assets					336,830
LIABILITIES.
Guarantee liabilities-stand ready					(63,723)
Guarantee liabilities-contingent					1,952,545
Other tax payable					(4,275)
SHAREHOLDERS' EQUITY
Retained earnings				¥ 1,430,000	¥ (1,430,396)
ASU No. 2016-13 \| Adjusted Balance
ASSETS.
Financial assets receivable				2,089,145
Deferred tax assets				1,034,178
LIABILITIES.
Guarantee liabilities-stand ready				2,148,402
Guarantee liabilities-contingent				2,687,275
Other tax payable				259,581
SHAREHOLDERS' EQUITY
Retained earnings				¥ 640,936

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Financial assets receivable (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Financial assets receivable
Impairment losses	¥ 243,139	¥ 285,720	¥ 150,940

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Origination and servicing expense, Sales and marketing expenses, Government grant and Value added taxes (VAT) (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Product Information [Line Items]
Cash reward	¥ 23,900	¥ 13,100	¥ 14,700
Advertising and marketing related expenses	1,803,243	859,386	2,725,812
Government grants received	¥ 17,783	¥ 74,449	¥ 128,147
Product Concentration Risk \| Total revenues \| Financial institution partners
Product Information [Line Items]
Percent of total revenues generated by a major funding institution	10.00%	10.00%	10.00%
Consolidated Trusts
Product Information [Line Items]
VAT rate (as a percent)	3.00%
Other Entities
Product Information [Line Items]
VAT rate (as a percent)	6.00%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Certain risks and concentrations (Details) - Total revenues - Customer	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
A
Concentration Risk [Line Items]
Concentration risk (in percent)	16.40%
B
Concentration Risk [Line Items]
Concentration risk (in percent)	14.30%
C
Concentration Risk [Line Items]
Concentration risk (in percent)		10.80%	11.30%
D
Concentration Risk [Line Items]
Concentration risk (in percent)		10.20%	15.70%
E
Concentration Risk [Line Items]
Concentration risk (in percent)			10.60%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Convenience translation, Employee defined contribution plan (Details) ¥ in Thousands	12 Months Ended
	Dec. 31, 2021 CNY (¥) $ / ¥	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Convenience translation rate (USD to RMB) \| $ / ¥	6.3726
Defined contribution plan cost \| ¥	¥ 146,426	¥ 72,632	¥ 71,433

ACCOUNTS RECEIVABLE AND CONTRACT ASSETS, NET (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Accounts receivable
Accounts Receivable	¥ 17,124	¥ 184,354
Allowance for uncollectible accounts receivable	(2,058)	(23,256)	¥ (184,698)
Account receivable, net	15,066	161,098
Movement of allowance for uncollectible receivables
Opening balance	23,256	184,698	81,336
Current year net provision	(9,577)	(67,755)	184,381
Write-off in the current year	(11,621)	(93,687)	(81,019)
Ending balance	2,058	23,256	184,698
Contract assets
Contract assets	3,619,516	2,773,938
Allowance for uncollectible Contract assets	(313,854)	(232,571)	(6,893)
Contract assets, net	3,305,662	2,541,367
Movement of allowance for uncollectible contract assets
Opening balance	232,571	6,893	1,179
Current year net provision	210,087	231,799	10,623
Write off in the current year	(128,804)	(6,121)	(4,909)
Ending balance	313,854	232,571	6,893
Accounts Receivable And Contract Assets
Accounts receivable and contract assets	959,024	84,483
Allowance for uncollectible accounts receivable and contract assets	(122,017)	(8,299)
Accounts receivable and contract Assets, net	837,007	76,184
Opening balance	8,299	12,335
Current year net provision	124,095	75,070
Write off in the current year	(10,377)	(79,106)
Ending balance	122,017	8,299	12,335
Amount of contract assets originated in current fiscal year.	3,636,640
2021
Accounts Receivable And Contract Assets
Amount of contract assets originated in current fiscal year.	3,207,537
2020
Accounts Receivable And Contract Assets
Amount of contract assets originated in current fiscal year.	429,103
Loan facilitation service
Accounts receivable
Accounts Receivable	502	151,004
Allowance for uncollectible accounts receivable	(375)	(17,462)	(184,425)
Account receivable, net	127	133,542
Movement of allowance for uncollectible receivables
Opening balance	17,462	184,425	77,152
Current year net provision	(11,309)	(102,832)	171,602
Write-off in the current year	(5,778)	(64,131)	(64,329)
Ending balance	375	17,462	184,425
Contract assets
Contract assets	3,097,872	2,714,861
Allowance for uncollectible Contract assets	(287,397)	(222,526)	(6,662)
Contract assets, net	2,810,475	2,492,335
Movement of allowance for uncollectible contract assets
Opening balance	222,526	6,662	758
Current year net provision	157,708	220,582	8,895
Write off in the current year	(92,837)	(4,718)	(2,991)
Ending balance	287,397	222,526	6,662
Accounts Receivable And Contract Assets
Amount of contract assets originated in current fiscal year.	3,098,373
Loan facilitation service \| 2021
Accounts Receivable And Contract Assets
Amount of contract assets originated in current fiscal year.	2,708,137
Loan facilitation service \| 2020
Accounts Receivable And Contract Assets
Amount of contract assets originated in current fiscal year.	390,236
Post facilitation service
Accounts receivable
Accounts Receivable	5,825	21,170
Allowance for uncollectible accounts receivable	(1,683)	(3,958)	(273)
Account receivable, net	4,142	17,212
Movement of allowance for uncollectible receivables
Opening balance	3,958	273	4,184
Current year net provision	1,732	33,241	12,779
Write-off in the current year	(4,007)	(29,556)	(16,690)
Ending balance	1,683	3,958	273
Contract assets
Contract assets	282,767	29,259
Allowance for uncollectible Contract assets	(26,457)	(10,045)	(231)
Contract assets, net	256,310	19,214
Movement of allowance for uncollectible contract assets
Opening balance	10,045	231	421
Current year net provision	52,379	11,217	1,728
Write off in the current year	(35,967)	(1,403)	(1,918)
Ending balance	26,457	10,045	231
Accounts Receivable And Contract Assets
Amount of contract assets originated in current fiscal year.	288,593
Post facilitation service \| 2021
Accounts Receivable And Contract Assets
Amount of contract assets originated in current fiscal year.	249,726
Post facilitation service \| 2020
Accounts Receivable And Contract Assets
Amount of contract assets originated in current fiscal year.	38,867
Referral services
Accounts receivable
Accounts Receivable	10,797	12,180
Allowance for uncollectible accounts receivable		(1,836)
Account receivable, net	10,797	10,344
Movement of allowance for uncollectible receivables
Opening balance	1,836
Current year net provision		1,836
Write-off in the current year	(1,836)
Ending balance		1,836
Contract assets
Contract assets	238,877	29,818
Contract assets, net	238,877	29,818
Accounts Receivable And Contract Assets
Amount of contract assets originated in current fiscal year.	249,674
Referral services \| 2021
Accounts Receivable And Contract Assets
Amount of contract assets originated in current fiscal year.	249,674
Accounts Receivable \| Loan facilitation service
Accounts Receivable And Contract Assets
Opening balance		9,648
Current year net provision		30,215
Write off in the current year		(39,863)
Ending balance			9,648
Accounts Receivable \| Post facilitation service
Accounts Receivable And Contract Assets
Opening balance		481
Current year net provision		14,533
Write off in the current year		(15,014)
Ending balance			481
Accounts Receivable \| Referral services
Accounts Receivable And Contract Assets
Accounts receivable and contract assets		1,004
Accounts receivable and contract Assets, net		1,004
Contract Assets \| Loan facilitation service
Accounts Receivable And Contract Assets
Accounts receivable and contract assets	953,846	82,528
Allowance for uncollectible accounts receivable and contract assets	(120,208)	(8,072)
Accounts receivable and contract Assets, net	833,638	74,456
Opening balance	8,072	2,062
Current year net provision	117,613	22,683
Write off in the current year	(5,477)	(16,673)
Ending balance	120,208	8,072	2,062
Contract Assets \| Post facilitation service
Accounts Receivable And Contract Assets
Accounts receivable and contract assets	5,178	951
Allowance for uncollectible accounts receivable and contract assets	(1,809)	(227)
Accounts receivable and contract Assets, net	3,369	724
Opening balance	227	144
Current year net provision	6,482	7,639
Write off in the current year	(4,900)	(7,556)
Ending balance	¥ 1,809	¥ 227	¥ 144

FINANCIAL ASSETS RECEIVABLE (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Financial assets receivable
Financial assets receivable	¥ 4,897,854	¥ 4,601,642	¥ 2,142,627
Allowance for uncollectible receivables	(493,646)	(390,834)	(170,803)
Financial assets receivable, net	4,404,208	4,210,808
Movement of financial assets receivable
Balance at beginning of year	4,601,642	2,142,627	1,250,277
Addition in the current year	6,626,322	6,885,976	3,650,311
Collection in the current year	(6,189,783)	(4,478,593)	(2,721,168)
Write-off	(140,327)	(65,689)	(36,793)
Balance at end of year	4,897,854	4,601,642	2,142,627
Movement of allowance for uncollectible receivables
Balance at beginning of year	390,834	170,803	56,656
Current year net provision	(243,139)	(285,720)	(150,940)
Write-off	(140,327)	(65,689)	(36,793)
Balance at end of year	493,646	390,834	170,803
Adjustment
Financial assets receivable
Financial assets receivable		117,321
Movement of financial assets receivable
Balance at beginning of year	117,321
Balance at end of year		117,321
2020
Financial assets receivable
Financial assets receivable	819,605
Movement of financial assets receivable
Balance at end of year	819,605
2021
Financial assets receivable
Financial assets receivable	4,078,249
Movement of financial assets receivable
Balance at end of year	4,078,249
Amount Due From Related Parties
Financial assets receivable
Financial assets receivable		3,149	130,765
Allowance for uncollectible receivables		(2,033)	(13,633)
Financial assets receivable, net		1,116
Movement of financial assets receivable
Balance at beginning of year	3,149	130,765
Addition in the current year		35,151
Collection in the current year	(309)	(124,830)
Write-off	(2,840)	(37,937)
Balance at end of year		3,149	130,765
Movement of allowance for uncollectible receivables
Balance at beginning of year	2,033	13,633
Current year net provision	807	26,337
Write-off	(2,840)	(37,937)
Balance at end of year		2,033	¥ 13,633
0-30 days past due
Financial assets receivable
Financial assets receivable	15,594	15,673
Movement of financial assets receivable
Balance at beginning of year	15,673
Balance at end of year	15,594	15,673
30 to 60 days past due
Financial assets receivable
Financial assets receivable		9,572
Movement of financial assets receivable
Balance at beginning of year	9,572
Balance at end of year		9,572
31 to 60 days past due
Financial assets receivable
Financial assets receivable	12,038
Movement of financial assets receivable
Balance at end of year	12,038
Current
Financial assets receivable
Financial assets receivable	4,870,222	4,576,397
Movement of financial assets receivable
Balance at beginning of year	4,576,397
Balance at end of year	¥ 4,870,222	¥ 4,576,397

LOANS RECEIVABLE, NET - Loans receivable (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
LOANS RECEIVABLE, NET.
Loans receivable	¥ 13,652,723	¥ 8,010,081
Less allowance for loan losses	(948,893)	(421,767)	¥ (351,639)	¥ (25,895)
Loans receivable, net	12,703,830	7,588,314
Accrued interest receivable	86,144	87,278
Net of allowance for loans receivable	¥ 5,987	¥ 3,200

LOANS RECEIVABLE, NET - Aging of loans (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Aging of loans
Current	¥ 13,451,781	¥ 7,934,277
Total Loans receivable	13,652,723	8,010,081
0-30 days past due
Aging of loans
Total amount past due	113,771	43,766
31 to 60 days past due
Aging of loans
Total amount past due	87,171	32,038
Total amount past due
Aging of loans
Total amount past due	¥ 200,942	¥ 75,804

LOANS RECEIVABLE, NET - Movement of allowance for loan losses (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Movement of allowance for loan losses
Balance at beginning of year	¥ 421,767	¥ 351,639	¥ 25,895
Provision for loan losses	965,419	698,701	486,991
Gross write-off	(475,352)	(636,766)	(161,976)
Recoveries	37,059	8,193	729
Balance at end of year	¥ 948,893	¥ 421,767	¥ 351,639

LOANS RECEIVABLE, NET - Nonaccrual loan principal (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2020	Dec. 31, 2019
LOANS RECEIVABLE, NET.
Nonaccrual loans, net	¥ 0	¥ 0

LOANS RECEIVABLE, NET - Principal of loans (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans receivable	¥ 13,652,723	¥ 8,010,081
Total Loans receivable	13,652,723	8,010,081
2021
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans receivable	13,614,369
2020
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans receivable	¥ 38,354	7,987,657
2019
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans receivable		¥ 22,424

LAND USE RIGHTS, NET (Details) - 12 months ended Dec. 31, 2021 ¥ in Thousands, $ in Thousands	CNY (¥)	USD ($)
LAND USE RIGHTS, NET.
Cost	¥ 1,036,178
Accumulated amortization	(17,270)
Land use rights, net	1,018,908	$ 159,889
Amortization of land use rights	¥ 17,270

SHORT-TERM LOANS (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
SHORT-TERM LOANS (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)
Short-term Debt [Line Items]
Short term loans	¥ 397,576	$ 62,388	¥ 186,800
Variable rate basis	London InterBank Offered Rate
Short-term bank borrowings, one
Short-term Debt [Line Items]
Short term loans \| $		$ 38,850
Basis spread on variable rate (as a percent)	3.00%
Short-term bank borrowings, two
Short-term Debt [Line Items]
Short term loans \| ¥	¥ 150,000
Fixed interest rate (as a percent)	3.46%	3.46%	3.65%

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
User traffic direction fees	¥ 472,269		¥ 201,041
Payable to financial institution partners (1)	422,423		163,234
Accrued payroll and welfare	409,216		144,784
Payable for third-party service fee	298,411		196,718
Payable to shareholder of non-controlling interests (2)	296,617
Dividend payable(3)	276,991
Lease liability	25,779		28,528
Others	56,623		75,456
Total	¥ 2,258,329	$ 354,381	¥ 809,761

GUARANTEE LIABILITIES (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)
Guarantor Obligations [Line Items]
Beginning balance	¥ 4,173,497		¥ 2,212,125
Provision at the inception of new loans	6,626,322		6,921,127
Released into revenue	(5,981,675)		(4,896,032)
Ending balance	4,818,144	$ 756,072	4,173,497
Contractual amounts of outstanding loans subject to guarantee	49,857,705		55,601,864
Contractual amounts of outstanding loans not subject to guarantee	¥ 3,129,264		¥ 2,402,825
Minimum
Guarantor Obligations [Line Items]
Compensation service period	1 month	1 month	1 month
Maximum
Guarantor Obligations [Line Items]
Compensation service period	36 months	36 months	24 months
Adjustment
Guarantor Obligations [Line Items]
Beginning balance			¥ 2,148,402

GUARANTEE LIABILITIES - Contingent (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)
Guarantor Obligations [Line Items]
Beginning balance	¥ 3,543,454		¥ 734,730
Expense on guarantee liabilities				¥ 734,730
Ending balance	3,285,081	$ 515,501	3,543,454	734,730
Contingent guarantee
Guarantor Obligations [Line Items]
Beginning balance	3,543,454		2,687,275
Provision for contingent liabilities	3,078,224		4,794,127
Net payout (1)	(3,336,597)		(3,937,948)
Ending balance	¥ 3,285,081		3,543,454	2,687,275
Contingent guarantee \| Adjusted Balance
Guarantor Obligations [Line Items]
Beginning balance			¥ 3,543,454
Ending balance				¥ 3,543,454

GUARANTEE LIABILITIES - Contractual amounts (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Guarantor Obligations [Line Items]
Contractual Amount of Outstanding Loans Subject to Guarantee	¥ 49,857,705	¥ 55,601,864
Current contractual amounts of outstanding loans subject to guarantee	49,117,630	55,019,645
0 - 30 days past due
Guarantor Obligations [Line Items]
Contractual Amount of Outstanding Loans Subject to Guarantee	446,780	355,252
31 - 60 days past due
Guarantor Obligations [Line Items]
Contractual Amount of Outstanding Loans Subject to Guarantee	235,769	158,048
61 - 90 days past due
Guarantor Obligations [Line Items]
Contractual Amount of Outstanding Loans Subject to Guarantee	¥ 57,526	¥ 68,919

RELATED PARTY BALANCES AND TRANSACTIONS - Services provided by the related parties (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Related Party Transactions
Services received from related party	¥ 523,054	¥ 143,881	¥ 129,061
Qihu \| Bandwidth service fee
Related Party Transactions
Services received from related party	108,743	80,514	46,191
Qihu \| Brand fees charged
Related Party Transactions
Services received from related party	23,585
Qihu \| Referral service fee
Related Party Transactions
Services received from related party	19,789	24,507	47,640
Yujie \| Referral service fee
Related Party Transactions
Services received from related party	347,585	15,152
Xixian \| Labor cost
Related Party Transactions
Services received from related party		2,130	10,657
Qifutong \| Referral service fee
Related Party Transactions
Services received from related party			7,905
Qibutianxia \| Corporate expenses
Related Party Transactions
Services received from related party	7,075	11,321	3,230
Others
Related Party Transactions
Services received from related party	4,378	3,120	8,364
Beijing Qifei \| Rental Expenses Charged
Related Party Transactions
Services received from related party		¥ 7,137	¥ 5,074
Hongying \| Rental Expenses Charged
Related Party Transactions
Services received from related party	¥ 11,899

RELATED PARTY BALANCES AND TRANSACTIONS - Services provided to the related parties (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Related Party Transactions
Services provided to the related parties	¥ 2,178,561	¥ 346,378	¥ 1,037,480
Qicaitianxia \| Referral service fee
Related Party Transactions
Services provided to the related parties		3,558	197,018
Jinshang \| Loan facilitation service
Related Party Transactions
Services provided to the related parties	219,513	150,515	59,871
Jinshang \| Post-facilitation services
Related Party Transactions
Services provided to the related parties	69,398	48,094	43,497
Beijing Zixuan \| Loan facilitation service
Related Party Transactions
Services provided to the related parties	37	47,516	517,776
Beijing Zixuan \| Post-facilitation services
Related Party Transactions
Services provided to the related parties	56	74,417	215,019
Others
Related Party Transactions
Services provided to the related parties	17,612	6,591	¥ 4,299
Kincheng \| Loan facilitation service
Related Party Transactions
Services provided to the related parties	1,574,456	15,254
Kincheng \| Post-facilitation services
Related Party Transactions
Services provided to the related parties	¥ 297,489	¥ 433

RELATED PARTY BALANCES AND TRANSACTIONS - Amounts due from related parties (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Related Party Transactions
Due from related parties	¥ 978,175	¥ 193,305
Jinshang
Related Party Transactions
Due from related parties	194,123	158,655
Kincheng
Related Party Transactions
Due from related parties	771,335	13,505
Beijing Zixuan
Related Party Transactions
Due from related parties		5,608
Shareholders
Related Party Transactions
Due from related parties	10,158	11,100
Others
Related Party Transactions
Due from related parties	¥ 2,559	¥ 4,437

- Definition

For an unclassified balance sheet, amounts due from related parties including affiliates, employees, joint ventures, officers and stockholders, immediate families thereof, and pension funds.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(k)(1))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-03.10(3))
-URI http://asc.fasb.org/extlink&oid=120398452&loc=d3e534808-122878

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(C))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(B))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-03.3)
-URI http://asc.fasb.org/extlink&oid=120400017&loc=d3e572229-122910

+ Details

RELATED PARTY BALANCES AND TRANSACTIONS - Amounts due to related parties (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Oct. 31, 2020	Sep. 30, 2020	Dec. 31, 2019 CNY (¥)
Related Party Transactions
Amounts due to related parties	¥ 214,057	$ 33,590	¥ 71,562
Equity Method Investment, Ownership Percentage					25.00%
Aggregate Cost			0
Equity Method Investments	0		0
Payments to Acquire Equity Method Investments	¥ 1,000,000
Changfeng
Related Party Transactions
Equity Method Investment, Ownership Percentage				30.00%
Shanghai Jiehu
Related Party Transactions
Equity Method Investment, Ownership Percentage	30.00%	30.00%		30.00%
Qiyu.
Related Party Transactions
Equity Method Investment, Ownership Percentage				40.00%
Qibutianxia
Related Party Transactions
Amounts due to related parties	¥ 9,156		13,656
Amounts of loans under such arrangement	11,803,492		19,346,618
Qihu
Related Party Transactions
Amounts due to related parties	144,999					¥ 24,624
Yujie
Related Party Transactions
Amounts due to related parties	30,165		16,061
Others
Related Party Transactions
Amounts due to related parties	29,737		17,221
Qiyu
Related Party Transactions
Payments to Acquire Equity Method Investments	¥ 300,000
Beijing Qifei
Related Party Transactions
Equity Method Investment, Ownership Percentage					26.00%
Joint venture
Related Party Transactions
Equity Method Investments			¥ 0

INCOME TAXES (Details)	1 Months Ended	12 Months Ended			36 Months Ended
INCOME TAXES (Details)	Aug. 31, 2019	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2022
Income tax rate (as a percent)		25.00%	25.00%	25.00%
Hong Kong
Income tax rate (as a percent)		16.50%
Next tax rate for first minimum portion of assessable profits		8.25%
Subsidiaries [Member]
Preferential tax rate		15.00%
Percentage of income tax exempt	40.00%
West Development \| Subsidiaries [Member]
Preferential tax rate	15.00%
Qiyu.
Preferential tax rate		15.00%
Qiyu. \| High And New Technology Enterprises
Preferential tax rate					15.00%

INCOME TAXES - Current and deferred portion of income tax expenses (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)
INCOME TAXES
Current tax	¥ 1,053,979		¥ 1,355,651	¥ 1,179,089
Deferred tax	204,217		(769,615)	(713,106)
Income tax expense	¥ 1,258,196	$ 197,438	¥ 586,036	¥ 465,983

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

INCOME TAXES - Reconciliation (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)
INCOME TAXES
Income before income tax benefit	¥ 7,022,709	$ 1,102,014	¥ 4,081,745	¥ 2,967,287
Statutory tax rate in the PRC	25.00%	25.00%	25.00%	25.00%
Income tax at statutory tax rate	¥ 1,755,677		¥ 1,020,436	¥ 741,822
Effect of different tax rate of subsidiary operation in other jurisdiction	11,708		3,728	3,875
Effect of non-deductible expenses	64,841		75,881	63,070
Effect of preferential tax rate and tax exemption	(487,655)		(452,033)	(202,095)
Effect of enacted tax rate change of deferred tax assets/liabilities	1,125		248	(95,048)
Effect of research and development super-deduction	(106,515)		(69,802)	(47,846)
Effect of valuation allowance movement of deferred tax assets	19,015		7,578	2,205
Income tax expense	¥ 1,258,196	$ 197,438	¥ 586,036	¥ 465,983

INCOME TAXES - Preferential tax rates (Details) - CNY (¥) ¥ / shares in Units, ¥ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
INCOME TAXES
Tax saving amount due to preferential tax rates	¥ 486,530	¥ 451,785	¥ 297,143
Income per share effect-basic	¥ 1.58	¥ 1.51	¥ 1.03
Income per share effect-diluted	¥ 1.51	¥ 1.47	¥ 0.99

INCOME TAXES - Components of the deferred tax assets and deferred tax liabilities (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Deferred tax assets
Guarantee liabilities	¥ 1,263,699	¥ 1,628,214
Provision for accounts receivable and contract assets and financial assets receivable	34,889	34,889
Provision for loan losses	330,684	186,462
Depreciation of land use rights	14,162
Net operating loss carry forwards	37,376	22,785
Gross deferred tax assets	1,680,810	1,872,350
Valuation allowance on deferred tax assets	(28,798)	(9,783)
Total deferred tax assets	1,652,012	1,862,567
Uncollected revenues	(938,721)	(501,848)
Total deferred tax liabilities	(938,721)	(501,848)
Net deferred tax assets	713,291	1,360,719
Allowance for deferred tax assets	28,798	9,783
Net operating loss carryforward	110,338
Undistributed earnings	¥ 13,225,574	5,964,686
Withholding income tax rate on dividends (as a percent)	10.00%
Minimum withholding income tax rate on dividends (as a percent)	5.00%
Direct ownership percentage threshold	25.00%
Maximum withholding income tax rate on dividends (as a percent)	10.00%
Withholding income taxes for undistributed profits	¥ 0	¥ 0

SHARE-BASED COMPENSATION - Stock options activity (Details) ¥ / shares in Units, ¥ in Thousands								1 Months Ended		12 Months Ended
	Nov. 20, 2021 shares	May 20, 2020 ¥ / shares shares	May 20, 2020 $ / shares shares	Nov. 20, 2018 ¥ / shares shares	Nov. 20, 2018 $ / shares shares	May 20, 2018 ¥ / shares shares	May 20, 2018 $ / shares shares	Aug. 31, 2020 shares	May 31, 2018 shares	Dec. 31, 2021 CNY (¥) shares	Dec. 31, 2021 CNY (¥) $ / shares shares	Dec. 31, 2020 CNY (¥) shares	Dec. 31, 2021 $ / shares
Share-based compensation arrangement by share-based payment award
Weighted-average grant date fair value per option \| ¥ / shares		¥ 64.46		¥ 60.77		¥ 48.64
Fair value assumptions
Risk-free rate of interest										2.76%
Estimated volatility rate										67.27%
Dividend yield										5.10%
Expected life (years)										5 years
Exercise price \| $ / shares													$ 0.00001
Number of options
Options outstanding at beginning (in shares)										7,611,387
Options granted (in shares)	2,400	3,514	3,514	690,023	690,023	24,627,493	24,627,493			2,400
Options converted (in shares)										10,264,366
Options forfeited (in shares)										(348,236)
Options exercised (in shares)										(4,584,580)
Options outstanding at ending (in shares)										12,945,337		7,611,387
Options exercisable (in shares)										4,051,903	4,051,903
Options vested or expected to be vested (in shares)										12,945,337	12,945,337
Weighted Average Exercise Price
Options outstanding at beginning (per share) \| $ / shares											$ 0.00001
Options granted (per share) \| $ / shares			$ 0.00001		$ 0.00001		$ 0.00001				0.00001
Options converted (per share) \| $ / shares											0.00001
Options forfeited (per share) \| $ / shares											0.00001
Options exercised (per share) \| $ / shares											0.00001
Options outstanding at ending (per share) \| $ / shares											$ 0.00001
Options exercisable (per share) \| $ / shares													0.00001
Options vested or expected to be vested (per share) \| $ / shares													$ 0.00001
Weighted Average Remaining Contract Life Years
Options granted (in years)										9 years 7 months 20 days
Options converted (in years)										8 years 10 months 20 days
Options forfeited (in years)										5 years 10 months 2 days
Options exercised (in years)										4 years 11 months 8 days
Options outstanding at ending (in years)										8 years 10 days		6 years 2 months 12 days
Options exercisable (in years)										7 years 3 days
Options vested or expected to be vested (in years)										8 years 10 days
Aggregate Intrinsic Value
Options outstanding at beginning \| ¥										¥ 292,734
Options granted \| ¥										175	$ 175
Options converted \| ¥										749,915	749,915
Options forfeited \| ¥										(25,442)	(25,442)
Options exercised \| ¥										(334,949)
Options outstanding at ending \| ¥										945,786		¥ 292,734
Options exercisable \| ¥										296,032	296,032
Options vested or expected to be vested \| ¥										¥ 945,786	945,786
Options \| Employees
Share-based compensation arrangement by share-based payment award
Vesting period (in years)										1 year 5 months 4 days
Aggregate Intrinsic Value
Unrecognized compensation cost \| ¥										¥ 288,945	$ 288,945
Options \| Maximum
Share-based compensation arrangement by share-based payment award
Vesting period (in years)		4 years	4 years	4 years	4 years	4 years	4 years
2018 plan \| Options
Share-based compensation arrangement by share-based payment award
Number of shares available for grant									25,336,096
Percentage of annual increase in shares									1.00%
Expiry period (in years)									10 years
2019 Plan \| Options
Share-based compensation arrangement by share-based payment award
Number of shares available for grant								17,547,567
Percentage of annual increase in shares								1.00%
Expiry period (in years)								10 years

SHARE-BASED COMPENSATION - Restricted shares (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands	1 Months Ended	12 Months Ended
	Nov. 30, 2021 $ / shares shares	Dec. 31, 2021 CNY (¥) ¥ / shares shares	Dec. 31, 2021 USD ($) shares
Weighted Average Grant Date Fair Value
Fair value of the restricted shares vested \| ¥		¥ 53,680
Number of options converted from restricted shares \| shares	10,264,366
Weighted average exercise price for options converted \| $ / shares	$ 0.00001
Restricted Shares
Number of Restricted Shares
Outstanding at beginning (in shares) \| shares		16,321,820	16,321,820
Granted (in shares) \| shares		3,102,418	3,102,418
Converted (in shares) \| $			$ (10,264,366)
Forfeited (in shares) \| shares		(749,794)	(749,794)
Vested (in shares) \| shares		(1,448,632)	(1,448,632)
Outstanding at ending (in shares) \| shares		6,961,446	6,961,446
Weighted Average Grant Date Fair Value
Outstanding at beginning (per share) \| ¥ / shares		¥ 40.07
Granted (per share) \| ¥ / shares		68.45
Converted (per share) \| ¥ / shares		40.84
Forfeited (per share) \| ¥ / shares		38.39
Vested (per share) \| ¥ / shares		37.06
Outstanding at ending (per share) \| ¥ / shares		¥ 52.38
Unrecognized compensation cost \| ¥		¥ 312,247
Weighted-average vesting period		1 year 6 months 29 days	1 year 6 months 29 days
Restricted Shares \| Minimum
Weighted Average Grant Date Fair Value
Vesting period (in years)		3 years	3 years
Restricted Shares \| Maximum
Weighted Average Grant Date Fair Value
Vesting period (in years)		5 years	5 years

SHARE-BASED COMPENSATION - Compensation costs (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Recognition of compensation costs
Total compensation costs	¥ 253,922	¥ 301,161
Facilitation, origination and servicing expenses
Recognition of compensation costs
Total compensation costs	75,209	72,192
Sales and marketing expenses
Recognition of compensation costs
Total compensation costs	12,340	8,164
General and administrative expenses
Recognition of compensation costs
Total compensation costs	¥ 166,373	¥ 220,805

ORDINARY SHARES (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Aug. 31, 2021	Dec. 31, 2018
ORDINARY SHARES AND PREFERRED SHARES
Common stock, Authorized (in shares)	5,000,000,000	5,000,000,000
Common stock, Par Value (in dollars per share)	$ 0.00001	$ 0.00001
Common stock, Issued (in shares)	315,433,018	309,833,035
Common stock, outstanding (in shares)	310,486,975	304,453,780
Ordinary shares.
ORDINARY SHARES AND PREFERRED SHARES
Common stock, Par Value (in dollars per share)	$ 0.00001
Common stock, Issued (in shares)	310,486,975	304,453,780	293,420,800		287,652,707
Common stock, outstanding (in shares)	310,486,975
Shares issued (in shares)	6,033,212	11,032,980	5,768,093
Class A ordinary shares
ORDINARY SHARES AND PREFERRED SHARES
Common stock, outstanding (in shares)	270,666,389	264,633,194
Class B ordinary shares
ORDINARY SHARES AND PREFERRED SHARES
Common stock, outstanding (in shares)	39,820,586	39,820,586
ADS
ORDINARY SHARES AND PREFERRED SHARES
Stock Repurchase Program, Authorized Amount				$ 200
ADS \| IPO
ORDINARY SHARES AND PREFERRED SHARES
Common stock, Par Value (in dollars per share)		$ 0.00001
Shares issued (in shares)		304,453,780

STATUTORY RESERVES AND RESTRICTED NET ASSETS (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
STATUTORY RESERVES AND RESTRICTED NET ASSETS
Minimum allocation to fund general reserve funds, after tax profits (as a percent)	10.00%
Maximum allocation to fund general reserve funds, reserve registered capital (as a percent)	50.00%
Amount of Appropriations to reserves		¥ 0	¥ 0
Paid-in capital, capital reserve and statutory reserves not available for distribution	¥ 8,283,560	2,740,408
Statutory reserve fund	¥ 168,541	¥ 125,389

DIVIDENDS (Details) - $ / shares	3 Months Ended
DIVIDENDS (Details) - $ / shares	Dec. 31, 2021	Sep. 30, 2021
Dividends Payable [Line Items]
Dividends declared per share	$ 0.13	$ 0.14
Minimum
Dividends Payable [Line Items]
Dividends declared (in percent)		15.00%
Maximum
Dividends Payable [Line Items]
Dividends declared (in percent)		20.00%
ADS
Dividends Payable [Line Items]
Dividends declared per share	$ 0.26	$ 0.28

LEASE (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
LEASE (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Existence of Option to Extend [true false]	true
Lessee, Operating Lease, Existence of Option to Terminate [true false]	true
Operating lease expenses	¥ 51,608	¥ 28,999	¥ 20,139
Amortization expenses of land use rights	¥ 17,270	¥ 0	¥ 0
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term	1 year
Maximum
Lessee, Lease, Description [Line Items]
Original term of the lease	5 years
Remaining lease term	3 years
Extension term of the lease	5 years
Termination term of the lease	1 year

LEASE - Cash paid for amounts included in the measurement of lease liabilities (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	¥ 33,252	¥ 30,536
Right-of-use assets obtained in exchange for lease obligations, Operating leases	¥ 25,349	¥ 36,236

LEASE - ROU assets and lease liabilities (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2021	Dec. 31, 2020
ROU assets and lease liabilities
Right-of-use assets	¥ 42,606	¥ 48,990
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other Assets, Noncurrent	Other Assets, Noncurrent
Operating lease liabilities-current	¥ 25,779	¥ 28,528
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Accrued Liabilities and Other Liabilities	Accrued Liabilities and Other Liabilities
Operating lease liabilities-non current	¥ 13,177	¥ 14,974
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other Liabilities, Noncurrent	Other Liabilities, Noncurrent
Weighted-average remaining lease term	2 years 1 month 2 days	1 year 8 months 8 days
Weighted-average discount rate	6.22%	6.16%

LEASE - Maturities of operating lease liabilities and maturities of operating leases (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Maturities of operating lease liabilities
2021		¥ 32,255
2022	¥ 28,203	13,582
2023	7,034	710
2024	3,550
2025	382
Total undiscounted lease payments	39,169	46,547
Imputed interest	(213)	(3,045)
Total lease liabilities	¥ 38,956	¥ 43,502

COMMITMENTS AND CONTINGENCIES (Details) ¥ in Millions, $ in Millions	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)
COMMITMENTS AND CONTINGENCIES.
Amount of outstanding loan balance under guarantee model	¥ 510
Percentage of total outstanding loan balances represented by the guarantee model loan balances (as a percent)	0.36%	0.36%
Capital commitments contracted but not yet reflected	¥ 500	$ 78.5

NET INCOME PER SHARE (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021 CNY (¥) ¥ / shares shares	Dec. 31, 2021 USD ($) $ / shares shares	Dec. 31, 2020 CNY (¥) ¥ / shares shares	Dec. 31, 2019 CNY (¥) ¥ / shares shares
Numerator:
Net income attributable to shareholders of the Company \| ¥	¥ 5,781,725		¥ 3,496,606	¥ 2,501,595
Net income attributable to ordinary shareholders of the Company	¥ 5,781,725	$ 907,277	¥ 3,496,606	¥ 2,501,595
Denominator:
Weighted average Class A and Class B ordinary shares outstanding used in computing basic income (loss) per ordinary share	307,265,600	307,265,600	298,222,207	288,827,604
Plus: incremental weighted average ordinary shares from assumed exercise of stock options and restricted shares using the treasury stock method	14,132,153	14,132,153	8,442,892	12,110,866
Weighted average Class A and Class B ordinary shares outstanding used in computing diluted income (loss) per ordinary share	321,397,753	321,397,753	306,665,099	300,938,470
Basic net income (loss) per share (in CNY per share) \| (per share)	¥ 18.82	$ 2.95	¥ 11.72	¥ 8.66
Diluted net income (loss) per share (in CNY per share) \| (per share)	¥ 17.99	$ 2.82	¥ 11.40	¥ 8.31
Anti-dilutive securities excluded from the calculation of diluted net loss per share	0	0	0	0

SUBSEQUENT EVENTS (Details) - $ / shares	3 Months Ended
SUBSEQUENT EVENTS (Details) - $ / shares	Dec. 31, 2021	Sep. 30, 2021
Subsequent Event [Line Items]
Dividends declared per share	$ 0.13	$ 0.14
ADS
Subsequent Event [Line Items]
Dividends declared per share	$ 0.26	$ 0.28

ADDITIONAL INFORMATION - FINANCIAL STATEMENT SCHEDULE I (Details)	12 Months Ended
	Dec. 31, 2021
ADDITIONAL INFORMATION - FINANCIAL STATEMENT SCHEDULE I
Minimum allocation to fund general reserve funds, after tax profits (as a percent)	10.00%
Maximum allocation to fund general reserve funds, reserve registered capital (as a percent)	50.00%
Restricted net assets (as a percent)	25.00%

ADDITIONAL INFORMATION - FINANCIAL STATEMENT SCHEDULE I - CONDENSED BALANCE SHEETS (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands	Dec. 31, 2021 CNY (¥) shares	Dec. 31, 2021 USD ($) $ / shares shares	Dec. 31, 2020 CNY (¥) shares	Dec. 31, 2020 $ / shares	Dec. 31, 2019 CNY (¥)
ASSETS.
Cash and cash equivalents	¥ 6,116,360	$ 959,790	¥ 4,418,416		¥ 2,108,123
Amount due from related parties \| ¥	978,175		193,305
TOTAL ASSETS	33,504,995	5,257,663	24,387,305
LIABILITIES
Amounts due to related parties	214,057	33,590	71,562
Short term loans	397,576	62,388	186,800
TOTAL LIABILITIES	18,288,386	2,869,846	14,906,215
EQUITY
Ordinary shares ($0.00001 par value per share 5,000,000,000 shares authorized, 309,833,035 shares issued and 304,453,780 shares outstanding as of December 31, 2020, and 315,433,018 shares issued and 310,486,975 shares outstanding as of December 31, 2021, respectively)	22	3	21
Additional paid-in capital	5,672,267	890,102	5,417,406
Retained earnings	9,642,506	1,513,120	4,137,542		¥ 2,071,332
Other comprehensive loss	(110,932)	(17,408)	(74,391)
TOTAL EQUITY	15,203,863	2,385,817	9,480,578
TOTAL LIABILITIES AND EQUITY	¥ 33,504,995	$ 5,257,663	¥ 24,387,305
Stockholders' Equity, Other Disclosures
Ordinary shares, par value (in dollars per share) \| $ / shares		$ 0.00001		$ 0.00001
Ordinary shares, authorized (in shares)	5,000,000,000	5,000,000,000	5,000,000,000
Ordinary shares, issued (in shares)	315,433,018	315,433,018	309,833,035
Ordinary shares, outstanding (in shares)	310,486,975	310,486,975	304,453,780
360 Finance, Inc \| Reportable legal entities
ASSETS.
Cash and cash equivalents	¥ 7,117	$ 1,117	¥ 19,560
Amount due from related parties	10,134	1,590
Amount due from subsidiaries and VIEs	1,711,633	268,593	1,632,772
Investments in subsidiaries and VIEs	14,032,928	2,202,071	7,940,533
TOTAL ASSETS	15,761,812	2,473,371	9,592,865
LIABILITIES
Accrued expenses and other current liabilities	310,373	48,704	2,751
Amounts due to related parties \| ¥			27,973
Short term loans	247,576	38,850	81,563
TOTAL LIABILITIES	557,949	87,554	112,287
EQUITY
Ordinary shares ($0.00001 par value per share 5,000,000,000 shares authorized, 309,833,035 shares issued and 304,453,780 shares outstanding as of December 31, 2020, and 315,433,018 shares issued and 310,486,975 shares outstanding as of December 31, 2021, respectively)	22	3	21
Additional paid-in capital	5,672,267	890,102	5,417,406
Retained earnings	9,642,506	1,513,120	4,137,542
Other comprehensive loss	(110,932)	(17,408)	(74,391)
TOTAL EQUITY	15,203,863	2,385,817	9,480,578
TOTAL LIABILITIES AND EQUITY	¥ 15,761,812	$ 2,473,371	¥ 9,592,865
Stockholders' Equity, Other Disclosures
Ordinary shares, authorized (in shares)	5,000,000,000	5,000,000,000	5,000,000,000
Ordinary shares, issued (in shares)	315,433,018	315,433,018	309,833,035
Ordinary shares, outstanding (in shares)	310,486,975	310,486,975	304,453,780

ADDITIONAL INFORMATION - FINANCIAL STATEMENT SCHEDULE I - CONDENSED STATEMENTS OF OPERATIONS (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)
Operating costs and expenses	¥ (9,849,446)	$ (1,545,594)	¥ (9,773,796)	¥ (6,326,256)
Foreign exchange losses	35,549	5,578	101,534	(24,875)
Other income, net	64,590	10,136	112,884	140,278
Net income before taxes	7,022,709	1,102,014	4,081,745	2,967,287
Income tax expenses	(1,258,196)	(197,438)	(586,036)	(465,983)
Net income attributable to shareholders of the Company	5,764,513	904,576	3,495,709	2,501,304
Net income attributable to ordinary shareholders of the Company	5,781,725	907,277	3,496,606	2,501,595
360 Finance, Inc \| Reportable legal entities
Operating costs and expenses	(51,233)	(8,040)	(16,453)	(12,922)
Interest income (loss)	(5,383)	(845)	(2,349)	712
Foreign exchange losses	(133)	(21)	(376)	(491)
Other income, net			15,148	453
Net loss before taxes and income from equity in subsidiaries and VIEs	(56,749)	(8,906)	(4,030)	(12,248)
Equity in earnings of subsidiaries and VIEs	5,838,474	916,183	3,500,636	2,513,843
Net income before taxes	5,781,725	907,277	3,496,606	2,501,595
Net income attributable to shareholders of the Company	5,781,725	907,277	3,496,606	2,501,595
Net income attributable to ordinary shareholders of the Company	¥ 5,781,725	$ 907,277	¥ 3,496,606	¥ 2,501,595

ADDITIONAL INFORMATION - FINANCIAL STATEMENT SCHEDULE I - CONDENSED STATEMENTS OF COMPREHENSIVE INCOME OR LOSS (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)
Net income attributable to shareholders of the Company	¥ 5,764,513	$ 904,576	¥ 3,495,709	¥ 2,501,304
Other comprehensive income, net of tax of nil:
Foreign currency translation adjustment	(36,541)	(5,734)	(99,297)	21,223
Other comprehensive income (loss)	(36,541)	(5,734)	(99,297)	21,223
Total comprehensive income	5,727,972	898,842	3,396,412	2,522,527
Comprehensive income attributable to ordinary shareholders	5,745,184	901,543	3,397,309	2,522,818
360 Finance, Inc \| Reportable legal entities
Net income attributable to shareholders of the Company	5,781,725	907,277	3,496,606	2,501,595
Other comprehensive income, net of tax of nil:
Foreign currency translation adjustment	(36,541)	(5,734)	(99,297)	21,223
Other comprehensive income (loss)	(36,541)	(5,734)	(99,297)	21,223
Total comprehensive income	5,745,184	901,543	3,397,309	2,522,818
Comprehensive income attributable to ordinary shareholders	¥ 5,745,184	$ 901,543	¥ 3,397,309	¥ 2,522,818

- Definition

+ References + Details

- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

+ References

+ Details

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

+ References

+ Details

ADDITIONAL INFORMATION - FINANCIAL STATEMENT SCHEDULE I - CONDENSED STATEMENTS OF COMPREHENSIVE INCOME OR LOSS - Additional Information (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Other comprehensive income, tax	¥ 0	¥ 0	¥ 0
360 Finance, Inc \| Reportable legal entities
Other comprehensive income, tax	¥ 0	¥ 0

ADDITIONAL INFORMATION - FINANCIAL STATEMENT SCHEDULE I - CONDENSED STATEMENTS OF CASH FLOWS (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)
Cash Flows from Operating Activities:
Net income attributable to shareholders of the Company	¥ 5,764,513	$ 904,576	¥ 3,495,709	¥ 2,501,304
Changes in operating assets and liabilities
Accrued expenses and other current liabilities	897,670	140,865	88,842	206,801
Net cash used in operating activities	5,789,700	908,530	5,325,810	2,973,075
Cash Flows from Investing Activities:
Investments in subsidiaries	(1,000,000)
Loans payment to subsidiaries and VIEs	(40,168,794)	(6,303,360)	(38,720,482)	(26,339,327)
Net cash used in Investing Activities	(6,064,328)	(951,625)	892,770	(8,860,441)
Cash Flows from Financing Activities:
Net cash provided by (used in) financing activities	2,263,720	355,227	(3,282,400)	7,707,858
Effect of foreign exchange rate changes	(3,411)	(536)	2,236	1,762
Net (decrease) increase in cash and cash equivalents	1,985,681	311,596	2,938,416	1,822,254
Cash, cash equivalents, and restricted cash, beginning of year	6,774,266	1,063,030	3,835,850	2,013,596
Cash, cash equivalents, and restricted cash, end of year	8,759,947	1,374,626	6,774,266	3,835,850
Supplemental disclosure of significant non-cash investing and financing activities:
Payables for dividends:	276,991	43,466
360 Finance, Inc \| Reportable legal entities
Cash Flows from Operating Activities:
Net income attributable to shareholders of the Company	5,781,725	907,277	3,496,606	2,501,595
Adjustments to reconcile net income to net cash used in operating activities:
Equity in earnings of subsidiaries and VIEs	(5,838,474)	(916,183)	(3,500,636)	(2,513,843)
Changes in operating assets and liabilities
Accrued expenses and other current liabilities	31,197	4,896	(2,625)	(3,070)
Amounts due from subsidiaries			(65,801)	(276,960)
Net cash used in operating activities	(25,552)	(4,010)	(72,456)	(292,278)
Cash Flows from Investing Activities:
Investments in subsidiaries				(35,652)
Loans payment to subsidiaries and VIEs	(153,778)	(24,131)
Net cash used in Investing Activities	(153,778)	(24,131)		(35,652)
Cash Flows from Financing Activities:
Payment of IPO costs				(3,080)
Proceeds from short-term loans	169,291	26,565	86,305
Net cash provided by (used in) financing activities	169,291	26,565	86,305	(3,080)
Effect of foreign exchange rate changes	(2,404)	(376)	(1,194)	1,761
Net (decrease) increase in cash and cash equivalents	(12,443)	(1,952)	12,655	(329,249)
Cash, cash equivalents, and restricted cash, beginning of year	19,560	3,069	6,905	336,154
Cash, cash equivalents, and restricted cash, end of year	¥ 7,117	$ 1,117	¥ 19,560	¥ 6,905