0000950170-22-006608 | 20-F | XBRL Viewer | Lexinfintech Holdings LTD

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Document and Entity Information	12 Months Ended
Document and Entity Information	Dec. 31, 2021 shares
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	001-38328
Entity Registrant Name	LexinFintech Holdings Ltd.
Entity Incorporation, State or Country Code	E9
Entity Address, Address Line One	27/F CES Tower
Entity Address, Address Line Two	No. 3099 Keyuan South Road
Entity Address, Address Line Three	Nanshan District
Entity Address, City or Town	Shenzhen
Entity Address, Postal Zip Code	518057
Entity Address, Country	CN
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Document Accounting Standard	U.S. GAAP
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	FY
Entity Central Index Key	0001708259
Amendment Flag	false
Auditor Firm ID	1424
Auditor Name	PricewaterhouseCoopers Zhong Tian LLP
Auditor Location	Beijing
Business Contact
Entity Address, Address Line One	27/F CES Tower
Entity Address, Address Line Two	No. 3099 Keyuan South Road
Entity Address, Address Line Three	Nanshan District
Entity Address, City or Town	Shenzhen
Entity Address, Postal Zip Code	518057
Contact Personnel Name	Sunny Rui Sun
City Area Code	86
Local Phone Number	755 3637 8888
Entity Address, Country	CN
Contact Personnel Email Address	IR@lexin.com
ADS
Title of 12(b) Security	American depositary shares (one American depositary share representing two Class A ordinary shares, par value US$0.0001 per share)
Trading Symbol	LX
Security Exchange Name	NASDAQ
Ordinary shares
Entity Common Stock, Shares Outstanding	367,735,793
Class A Ordinary Shares
Title of 12(b) Security	Class A ordinary shares, par value US$0.0001 per share*
Trading Symbol	LX
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding	273,270,100
Class B Ordinary Shares
Entity Common Stock, Shares Outstanding	94,465,693

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	¥ 2,664,132	$ 418,060	¥ 1,563,755
Restricted cash	1,305,435	204,851	1,112,152
Restricted time deposits	1,745,898	273,969	1,779,458
Short-term financing receivables, net of allowance for credit losses of RMB508,013 and RMB307,341 as of December 31, 2020 and December 31, 2021, respectively	3,772,975	592,062	4,918,548
Loans at fair value	252,970	39,697	381,393
Accrued interest receivable, net of allowance for credit losses of RMB1,681 and RMB1,367 as of December 31, 2020 and December 31, 2021, respectively	53,513	8,397	79,793
Prepaid expenses and other current assets	941,150	147,687	1,004,845
Amounts due from related parties	6,337	994	941
Deposits to insurance companies and guarantee companies	1,378,489	216,315	1,066,281
Short-term guarantee receivables, net of allowance for credit losses of RMB58,771 and RMB21,006 as of December 31, 2020 and December 31, 2021, respectively	543,949	85,357	756,197
Short-term contract assets and service fees receivable, net of allowance for credit losses of RMB65,607 and RMB187,261 as of December 31, 2020 and December 31, 2021, respectively	3,942,700	618,696	3,707,649
Inventories, net	47,816	7,503	47,170
Total current assets	16,655,364	2,613,588	16,418,182
Non-current assets
Restricted cash	149,247	23,420	163,999
Long term financing receivables, net of allowance for credit losses of RMB21,149 and RMB19,523 as of December 31, 2020 and December 31, 2021 respectively	241,127	37,838	204,761
Long-term guarantee receivables, net of allowance for credit losses of RMB16,994 and RMB4,061 as of December 31, 2020 and December 31, 2021, respectively	101,562	15,937	218,654
Long-term contract assets and service fees receivable, net of allowance for credit losses of RMB18,970 and RMB34,973 as of December 31, 2020 and December 31, 2021, respectively	244,672	38,394	481,989
Property, equipment and software, net	195,330	30,652	125,694
Land use rights, net	966,067	151,597	1,000,467
Long‑term investments	469,064	73,606	521,802
Deferred tax assets	1,176,878	184,678	747,332
Other assets	826,883	129,756	462,285
Total non-current assets	4,370,830	685,878	3,926,983
TOTAL ASSETS	21,026,194	3,299,466	20,345,165
Current liabilities
Accounts payable (including amounts of the consolidated VIEs of RMB42,961 and RMB15,705 as of December 31, 2020 and December 31, 2021, respectively)	15,705	2,464	42,961
Amounts due to related parties (including amounts of the consolidated VIEs of RMB67,514 and RMB23,102 as of December 31, 2020 and December 31, 2021, respectively)	23,102	3,625	67,514
Short term borrowings (including amounts of the consolidated VIEs of RMB1,751,633 and RMB1,735,931 as of December 31, 2020 and December 31, 2021, respectively)	1,799,741	282,419	1,827,063
Short term funding debts (including amounts of the consolidated VIEs of RMB4,685,935 and RMB3,101,381 as of December 31, 2020 and December 31, 2021, respectively)	3,101,381	486,674	4,685,935
Accrued interest payable (including amounts of the consolidated VIEs of RMB26,972 and RMB15,900 as of December 31, 2020 and December 31, 2021, respectively)	24,851	3,900	36,484
Deferred guarantee income (including amounts of the consolidated VIEs of RMB694,582 and RMB419,843 as of December 31, 2020 and December 31, 2021, respectively)	419,843	65,883	694,582
Contingent guarantee liabilities (including amounts of the consolidated VIEs of RMB1,738,787 and RMB928,840 as of December 31, 2020 and December 31, 2021, respectively)	928,840	145,755	1,738,787
Accrued expenses and other current liabilities (including amounts of the consolidated VIEs of RMB2,509,671 and RMB3,393,092 as of December 31, 2020 and December 31, 2021, respectively)	3,873,657	607,861	2,926,347
Total current liabilities	10,187,120	1,598,581	12,019,673
Non-current liabilities
Long term funding debts (including amounts of the consolidated VIEs of RMB825,814 and RMB696,852 as of December 31, 2020 and December 31, 2021, respectively)	696,852	109,351	825,814
Deferred tax liabilities (including amounts of the consolidated VIEs of RMB21,046 and RMB53,630 as of December 31, 2020 and December 31, 2021, respectively)	54,335	8,526	21,046
Convertible notes	1,882,689	295,435	1,920,227
Other long-term liabilities (including amounts of the consolidated VIEs of RMB23,218 and RMB92,256 as of December 31, 2020 and December 31, 2021, respectively)	137,389	21,559	27,667
Total non-current liabilities	2,771,265	434,871	2,794,754
TOTAL LIABILITIES	12,958,385	2,033,452	14,814,427
Commitments and contingencies (Note 21)
SHAREHOLDERS’ EQUITY:
Additional paid-in capital	2,918,993	458,054	2,724,006
Statutory reserves	901,322	141,437	649,234
Accumulated other comprehensive income	11,273	1,769	3,308
Retained earnings	4,195,791	658,411	2,113,956
Total equity attributable to owners of the company	8,027,616	1,259,708	5,490,738
Non-controlling interests	40,193	6,306	40,000
TOTAL SHAREHOLDERS’ EQUITY	8,067,809	1,266,014	5,530,738
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	21,026,194	3,299,466	20,345,165
Class A Ordinary Shares
SHAREHOLDERS’ EQUITY:
Ordinary shares	180	28	176
Class B Ordinary Shares
SHAREHOLDERS’ EQUITY:
Ordinary shares	¥ 57	$ 9	¥ 58

CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands	Dec. 31, 2021 CNY (¥) shares	Dec. 31, 2020 CNY (¥) shares
Current assets
Short-term financing receivables, allowance for credit losses	¥ 307,341	¥ 508,013
Accrued interest receivable, allowance for credit losses	1,367	1,681
Short-term guarantee receivables, allowance for credit losses	21,006	58,771
Short-term contract assets and service fees receivable, allowance for credit losses	187,261	65,607
Non-current assets
Long-term financing receivables, allowance for credit losses	19,523	21,149
Long-term guarantee receivables, allowance for credit losses	4,061	16,994
Long-term contract assets and service fees receivable, allowance for credit losses	34,973	18,970
Current liabilities
Accounts payable	15,705	42,961
Amounts due to related parties	23,102	67,514
Short-term borrowings	1,799,741	1,827,063
Short-term funding debts	3,101,381	4,685,935
Accrued interest payable	24,851	36,484
Deferred guarantee Income	419,843	694,582
Contingent guarantee liabilities	928,840	1,738,787
Accrued expenses and other current liabilities	3,873,657	2,926,347
Non-current liabilities
Long-term funding debts	696,852	825,814
Deferred tax liabilities	54,335	21,046
Other long-term liabilities	¥ 137,389	¥ 27,667
Class A Ordinary Shares
Non-current liabilities
Common stock, shares authorized \| shares	1,889,352,801	1,889,352,801
Common stock, shares issued \| shares	286,430,946	268,935,832
Common stock, shares outstanding \| shares	273,270,100	267,356,928
Class B Ordinary Shares
Non-current liabilities
Common stock, shares authorized \| shares	110,647,199	110,647,199
Common stock, shares issued \| shares	94,465,693	96,727,057
Common stock, shares outstanding \| shares	94,465,693	96,727,057
VIEs
Current liabilities
Accounts payable	¥ 15,705	¥ 42,961
Amounts due to related parties	23,102	67,514
Short-term borrowings	1,735,931	1,751,633
Short-term funding debts	3,101,381	4,685,935
Accrued interest payable	15,900	26,972
Deferred guarantee Income	419,843	694,582
Contingent guarantee liabilities	928,840	1,738,787
Accrued expenses and other current liabilities	3,393,092	2,509,671
Non-current liabilities
Long-term funding debts	696,852	825,814
Deferred tax liabilities	53,630	21,046
Other long-term liabilities	¥ 92,256	¥ 23,218

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
Operating revenue:
Operating revenue	¥ 11,380,525	$ 1,785,853	¥ 11,645,255	¥ 10,603,507
Operating cost:
Cost of sales (including cost of goods purchased from a related party of RMB827,809, nil and nil for the years ended December 31, 2019, 2020 and 2021, respectively)	(1,759,956)	(276,176)	(1,907,508)	(3,624,301)
Funding cost	(457,615)	(71,810)	(589,837)	(508,829)
Processing and servicing cost (including collection service fee from related parties of RMB9,291, RMB28,645 and RMB20,493 for the years ended December 31, 2019, 2020 and 2021, respectively)	(1,858,901)	(291,702)	(1,413,212)	(642,126)
Provision for credit losses of financing receivables and interest receivables	(401,104)	(62,942)	(779,235)	(708,684)
Provision for credit losses of contract assets and receivables	(531,237)	(83,363)	(441,805)	(125,471)
Provision for credit losses of contingent liabilities of guarantee	(622,438)	(97,674)	(2,880,590)
Total operating cost	(5,631,251)	(883,667)	(8,012,187)	(5,609,411)
Gross profit	5,749,274	902,186	3,633,068	4,994,096
Operating expenses:
Sales and marketing expenses	(1,658,904)	(260,318)	(1,274,402)	(1,538,698)
Research and development expenses	(549,286)	(86,195)	(474,265)	(415,995)
General and administrative expenses	(470,661)	(73,857)	(451,284)	(412,117)
Total operating expenses	(2,678,851)	(420,370)	(2,199,951)	(2,366,810)
Change in fair value of financial guarantee derivatives, net	(458,846)	(72,003)	(707,442)	(212,256)
Change in fair value of loans at fair value	111,762	17,538	(47,282)
Gain on guarantee liabilities, net				196,063
Interest expense, net	(63,125)	(9,906)	(77,542)	(39,215)
Investment-related impairment			(69,156)
Investment income/(loss)	(4,160)	(653)	7,885	52,211
Others	113,480	17,807	146,029	82,422
Income before income tax expense	2,769,534	434,599	685,609	2,706,511
Income tax expense	(435,418)	(68,327)	(90,629)	(411,959)
Net income	2,334,116	366,272	594,980	2,294,552
Less: net income attributable to non-controlling interests	193	30
Net income/(loss) attributable to ordinary shareholders of the Company	¥ 2,333,923	$ 366,242	¥ 594,980	¥ 2,294,552
Net income per ordinary share
Diluted \| ¥ / shares	¥ 5.73		¥ 1.56	¥ 6.14
Weighted average number of ordinary shares outstanding
Basic \| shares	368,460,867	368,460,867	364,733,164	355,625,970
Diluted \| shares	414,992,716	414,992,716	411,229,810	375,831,131
Share-based compensation expenses included in:
Share-based compensation expenses	¥ 187,884		¥ 198,825	¥ 177,262
Online direct sales and services income
Operating revenue:
Operating revenue	1,855,361	$ 291,147	2,082,832	3,828,841
Credit-oriented services income
Operating revenue:
Operating revenue	6,955,810	1,091,518	7,525,581	5,958,692
Platform-based services income
Operating revenue:
Operating revenue	2,569,354	403,188	2,036,842	815,974
Processing and servicing cost
Share-based compensation expenses included in:
Share-based compensation expenses	9,968	1,564	11,391	10,472
Sales and marketing expenses
Share-based compensation expenses included in:
Share-based compensation expenses	30,508	4,787	32,486	28,611
Research and development expenses
Share-based compensation expenses included in:
Share-based compensation expenses	39,413	6,185	46,116	42,977
General and administrative expenses
Share-based compensation expenses included in:
Share-based compensation expenses	¥ 107,995	$ 16,947	¥ 108,832	¥ 95,202
Ordinary shares
Net income per ordinary share
Basic \| (per share)	¥ 6.33	$ 0.99	¥ 1.63	¥ 6.45
Diluted \| (per share)	5.73	0.90	1.56	6.14
ADS
Net income per ordinary share
Basic \| (per share)	12.67	1.99	3.26	12.90
Diluted \| (per share)	¥ 11.46	$ 1.80	¥ 3.13	¥ 12.29
Online direct sales \| Online direct sales and services income
Operating revenue:
Operating revenue	¥ 1,661,156	$ 260,672	¥ 1,900,835	¥ 3,623,991
Membership services \| Online direct sales and services income
Operating revenue:
Operating revenue	107,901	16,932	113,107	112,558
Other Services \| Online direct sales and services income
Operating revenue:
Operating revenue	86,304	13,543	68,890	92,292
Loan facilitation and servicing fees-credit oriented \| Credit-oriented services income
Operating revenue:
Operating revenue	4,448,344	698,042	3,786,996	4,811,868
Interest and financial services income and other revenues \| Credit-oriented services income
Operating revenue:
Operating revenue	1,732,922	271,933	1,418,892	1,146,824
Guarantee income \| Credit-oriented services income
Operating revenue:
Operating revenue	774,544	121,543	2,319,693
Loan facilitation and servicing fees-performance based \| Platform-based services income
Operating revenue:
Operating revenue	2,289,452	359,265	1,930,835	648,516
Loan facilitation and servicing fees-volume based \| Platform-based services income
Operating revenue:
Operating revenue	¥ 279,902	$ 43,923	¥ 106,007	¥ 167,458

CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Statement [Abstract]
Commission fee from a related party	¥ 7,731	¥ 2,087
Cost of goods purchased from a related party			¥ 827,809
Collection service fee from a related party	¥ 20,493	¥ 28,645	¥ 9,291

- Definition

Direct costs arising from transactions with related parties who are not affiliates or joint Ventures. These costs are categorized as cost of goods sold.

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+ Details

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)
Statement of Comprehensive Income [Abstract]
Net income	¥ 2,334,116	$ 366,272	¥ 594,980	¥ 2,294,552
Other comprehensive income
Foreign currency translation adjustments, net of tax	7,965	1,250	10,596	7,020
Total comprehensive income	2,342,081	367,522	605,576	2,301,572
Less: net income attributable to non-controlling interests	193	30
Total comprehensive income attributable to ordinary shareholders	¥ 2,341,888	$ 367,492	¥ 605,576	¥ 2,301,572

- Definition

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

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+ Details

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY ¥ in Thousands, $ in Thousands	CNY (¥)	USD ($)	Cumulative Effect Period Of Adoption Adjustment CNY (¥)	Class A Ordinary Shares CNY (¥) shares	Class B Ordinary Shares CNY (¥) shares	Ordinary shares Class A Ordinary Shares CNY (¥) shares	Ordinary shares Class B Ordinary Shares CNY (¥) shares	Additional Paid in Capital CNY (¥)	Statutory Reserves CNY (¥)	Accumulated Other Comprehensive (Loss)/Income CNY (¥)	Retained Earnings CNY (¥)	Retained Earnings Cumulative Effect Period Of Adoption Adjustment CNY (¥)	Non-controlling Interest CNY (¥)
Balances as at beginning of the year at Dec. 31, 2018	¥ 4,106,792					¥ 160	¥ 66	¥ 2,328,716	¥ 200,262	¥ (14,308)	¥ 1,591,896
Balances as at beginning of the year (in shares) at Dec. 31, 2018 \| shares						243,090,108	108,147,199
Increase (Decrease) in Shareholders' Equity
Net income	2,294,552										2,294,552
Share-based compensation expenses	177,262							177,262
Exercise of share-based awards	13,913			¥ 5				13,908
Exercise of share-based awards (in shares) \| shares				8,180,022
Redesignation of Class B Ordinary Shares into Class A Ordinary Shares				¥ 5	¥ (5)
Redesignation of Class B Ordinary Shares into Class A Ordinary Shares (in shares) \| shares				7,420,142	(7,420,142)
Appropriation to statutory reserves	152,100								152,051		(152,051)
Foreign currency translation adjustments, net of tax	7,020									7,020
Balances as at end of the year at Dec. 31, 2019	6,599,539					¥ 170	¥ 61	2,519,886	352,313	(7,288)	3,734,397
Balances as at end of the year (in shares) at Dec. 31, 2019 \| shares						258,690,272	100,727,057
Increase (Decrease) in Shareholders' Equity
Net income	594,980										594,980
Share-based compensation expenses	198,825							198,825
Exercise of share-based awards	5,298			¥ 3				5,295
Exercise of share-based awards (in shares) \| shares				4,666,656
Redesignation of Class B Ordinary Shares into Class A Ordinary Shares				¥ 3	¥ (3)
Redesignation of Class B Ordinary Shares into Class A Ordinary Shares (in shares) \| shares				4,000,000	(4,000,000)
Appropriation to statutory reserves	296,900								296,921		(296,921)
Foreign currency translation adjustments, net of tax	10,596									10,596
Establishment of a partially held subsidiary	40,000												¥ 40,000
Balances as at end of the year at Dec. 31, 2020	5,530,738		¥ (1,918,500)			¥ 176	¥ 58	2,724,006	649,234	3,308	2,113,956	¥ (1,918,500)	40,000
Balances as at end of the year (in shares) at Dec. 31, 2020 \| shares				267,356,928	96,727,057	267,356,928	96,727,057
Increase (Decrease) in Shareholders' Equity
Net income	2,334,116	$ 366,272									2,333,923		193
Share-based compensation expenses	187,884							187,884
Exercise of share-based awards	7,106			¥ 3				7,103
Exercise of share-based awards (in shares) \| shares				3,651,808
Redesignation of Class B Ordinary Shares into Class A Ordinary Shares				¥ 1	¥ (1)
Redesignation of Class B Ordinary Shares into Class A Ordinary Shares (in shares) \| shares				2,261,364	(2,261,364)
Appropriation to statutory reserves	252,100								252,088		(252,088)
Foreign currency translation adjustments, net of tax	7,965	1,250								7,965
Balances as at end of the year at Dec. 31, 2021	¥ 8,067,809	$ 1,266,014				¥ 180	¥ 57	¥ 2,918,993	¥ 901,322	¥ 11,273	¥ 4,195,791		¥ 40,193
Balances as at end of the year (in shares) at Dec. 31, 2021 \| shares				273,270,100	94,465,693	273,270,100	94,465,693

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	¥ 2,334,116	$ 366,272	¥ 594,980	¥ 2,294,552
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of debt issuance costs and discounts	6,446	1,012	6,911	2,039
Share-based compensation expenses	187,884	29,483	198,825	177,262
Amortization of the right-of-use assets	54,552	8,560	53,860	47,895
Depreciation and amortization	90,751	14,241	53,433	39,945
Provision for credit losses of financing and interest receivable	401,104	62,942	779,235	708,684
Provision for credit losses of contract assets and receivables	531,237	83,363	441,805	125,471
Provision for credit losses of contingent liabilities of guarantee	622,438	97,674	2,880,590
Change in inventory provision	46	7	(394)	(1,007)
Net change in fair value of financial guarantee derivatives	458,846	72,003	707,442	212,256
Net change in fair value of loans at fair value	(111,762)	(17,538)	47,282
Net gain on guarantee liabilities				(196,063)
Deferred income tax	(396,257)	(62,181)	(503,520)	59,923
Investment-related impairment			69,156
(Gain)/loss on disposal of long-term investments	1,984	311	(8,553)	(6,128)
Fair value changes of long-term investments			(19,071)	(51,263)
Share of results of equity investees	3,967	623	9,032	5,180
Fair value changes of other assets	(1,791)	(281)	10,707
Foreign exchange gain	(12,666)	(1,988)	(85,245)	(23,367)
Gain on disposal of loans at fair value and financing receivables	(2,532)	(397)
Changes in operating assets and liabilities:
Financing receivables related to online direct sales	178,957	28,082	287,660	36,076
Accrued interest receivable	26,594	4,173	(27,190)	28,659
Prepaid expenses and other current assets	74,320	11,662	272,813	(730,038)
Deposits to insurance companies and guarantee companies	(312,208)	(48,992)	184,722	(1,251,003)
Amounts due from related parties	(5,396)	(847)	(941)
Guarantee receivables	292,760	45,940	274,799	(981,449)
Contract assets and service fees receivable	(473,324)	(74,275)	(1,025,303)	(2,342,245)
Other long-term liabilities	109,722	17,218	(177)	(34,394)
Inventories	(692)	(109)	60,005	(48,578)
Other assets	(140,492)	(22,046)	(74,898)	(297,900)
Accounts payable	(27,256)	(4,277)	(158,876)	65,989
Amounts due to related parties	1,408	221	(3,333)	1,354
Accrued interest payable	(11,581)	(1,817)	(50,189)	(95,192)
Guarantee liabilities				1,493,860
Deferred guarantee income	(274,739)	(43,113)	(787,232)
Contingent guarantee liabilities	(1,432,385)	(224,772)	(3,566,157)
Other payable to Individual Investors	(56,365)	(8,845)	(618,749)	(163,360)
Land use rights			(1,000,467)
Accrued expenses and other current liabilities	549,733	86,265	786,019	144,338
Net cash (used in)/ provided by operating activities	2,667,419	418,574	(211,019)	(778,504)
Cash flows from investing activities:
Cash proceed for disposal of loans at fair value and financing receivables	43,272	6,790
Cash paid on long-term investments	(38,657)	(6,066)	(97,200)	(387,705)
Proceeds from disposal of investments and refund of prepayment on long-term investments	65,537	10,284	39,698	9,000
Purchases of property, equipment and software	(121,533)	(19,071)	(86,573)	(49,865)
Financing receivables originated and purchased (excluding receivables related to online direct sales)	(18,420,894)	(2,890,640)	(23,193,607)	(10,632,362)
Principal collection on financing receivables and recoveries (excluding receivables related to online direct sales)	18,942,385	2,972,474	21,447,154	11,899,784
Investments in loans at fair value	(3,851,997)	(604,462)	(7,067,271)
Collection of principals of loans at fair value	4,051,776	635,812	6,638,596
Placement of restricted time deposits	(2,467,239)	(387,164)	(1,831,869)	(2,486,643)
Withdrawal of restricted time deposits	2,504,282	392,976	2,014,643	864,212
Cash paid on loans to third parties	(292,317)	(45,871)
Net cash (used in)/ provided by investing activities	414,615	65,062	(2,136,429)	(783,579)
Cash flows from financing activities:
Proceeds from non-controlling shareholders			40,000
Proceeds from borrowings	2,304,068	361,559	2,003,977	2,652,191
Principal payments on borrowings	(2,331,390)	(365,846)	(2,154,605)	(1,112,510)
Proceeds from funding debts	18,221,528	2,859,355	20,546,221	8,373,790
Principal payments on funding debts	(19,980,864)	(3,135,434)	(19,210,552)	(8,946,714)
Proceeds from issuance of convertible notes, net of debt discount				2,096,408
Payment of debt issuance costs				(24,048)
Exercise of share-based awards	7,124	1,117	7,970	10,968
Proceeds from receivables from Pre-IPO Series C-1 preferred shareholders				348,264
Repayment of liabilities to Pre-IPO Series C-1 preferred shareholders				(339,528)
Net cash provided by/(used in) financing activities	(1,779,534)	(279,249)	1,233,011	3,058,821
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(23,592)	(3,699)	(27,970)	(8,246)
Net increase/(decrease) in cash, cash equivalents and restricted cash	1,278,908	200,688	(1,142,407)	1,488,492
Cash, cash equivalents and restricted cash at beginning of the year	2,839,906	445,643	3,985,626	2,497,134
Cash, cash equivalents at beginning of the year	1,563,755	245,387	2,085,234	1,148,292
Restricted cash at beginning of the year	1,276,151	200,256	1,900,392	1,348,842
Cash, cash equivalents and restricted cash at end of the year	4,118,814	646,331	2,839,906	3,985,626
Cash and cash equivalents at the end of the year	2,664,132	418,060	1,563,755	2,085,234
Restricted cash at the end of the year	1,454,682	228,271	1,276,151	1,900,392
Supplemental disclosure of cash flows information
Cash paid for interest expense of borrowings and convertible notes	96,837	15,196	120,125	32,252
Cash paid for income tax expense	522,915	82,057	300,232	¥ 222,411
Cash paid for land use rights	516,000	$ 80,972	516,000
Effect Due to the Adoption of ASC 326 (Note 2(g))
Cash flows from financing activities:
Cash, cash equivalents and restricted cash at beginning of the year	¥ (3,313)
Cash, cash equivalents and restricted cash at end of the year			¥ (3,313)

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - CNY (¥) ¥ in Millions	1 Months Ended		12 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Dec. 31, 2020
Statement of Cash Flows [Abstract]
Finite-lived intangible assets, cash consideration			¥ 1,000.0
First installment payment		¥ 516.0
Second installment payment	¥ 516.0

Organization and Principal Activities

12 Months Ended

Dec. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Principal Activities

1. ORGANIZATION AND PRINCIPAL ACTIVITIES

LexinFintech Holdings Ltd. (“Lexin” or the “Company”), formerly known as Staging Finance Holding Ltd., was incorporated in the Cayman Islands on November 22, 2013. The Company is a holding company and conducts its business mainly through its subsidiaries, variable interest entities (“VIEs”) and subsidiaries of the VIEs (collectively referred to as the “Group”). The Group offers online direct sales with installment payment terms and offers installment purchase loans and personal installment loans mainly through its online consumption and consumer finance platform (“Platform”), www.fenqile.com, and its mobile application (“APP”) to new generation consumers (“Borrowers”) in the People’s Republic of China (“PRC”).

The Group addresses the Borrowers’ credit needs by offering installment purchase loans and personal installment loans. Installment purchase loans are loans offered to Borrowers who want to finance their online direct purchase from the Platform and APP with general terms between one month and thirty‑six months. Personal installment loans are loans provided to Borrowers who have consumption needs (other than online direct purchase) with terms generally ranging from one month to thirty‑six months.

The Group primarily finances the loans to Borrowers with proceeds from third-party commercial banks, consumer finance companies, our microcredit company and other licensed financial institutions (collectively “Institutional Funding Partners”). The Group also finances the loans through the establishment of consolidated trusts (“Trusts”) and issuance of asset-backed securitized debts.

As of December 31, 2021, the Company’s principal subsidiaries, consolidated VIEs and subsidiaries of the VIEs are as follows:


	Date of Incorporation/ Establishment	Place of Incorporation/ Establishment	Percentage of Direct or Indirect Economic Interest	Principal Activities
Subsidiaries
Installment (HK) Investment Limited (“Installment HK”)	December 9, 2013	Hong Kong, PRC	100%	Investment holding
Beijing Shijitong Technology Co., Ltd. (“Beijing Shijitong”)	July 1, 2014	Beijing, PRC	100%	Technical support and consulting services
Shenzhen Lexin Software Technology Co., Ltd. (“Shenzhen Lexin Software”)	March 1, 2017	Shenzhen, PRC	100%	Software development
VIEs
Beijing Lejiaxin Network Technology Co., Ltd. (“Beijing Lejiaxin”)	October 25, 2013	Beijing, PRC	100%	Investment holding
Shenzhen Xinjie Investment Co., Ltd. (“Shenzhen Xinjie”)	December 22, 2015	Shenzhen, PRC	100%	Investment holding
Shenzhen Qianhai Dingsheng Data Technology Co., Ltd. (“Qianhai Dingsheng”)	January 13, 2016	Shenzhen, PRC	100%	Financial technology services
Shenzhen Mengtian Technology Co., Ltd. (“Mengtian Technology”)	August 9, 2016	Shenzhen, PRC	100%	Software development
Beihai Super Egg E-Commerce Co., Ltd. (“Beihai Super Egg”)	May 31, 2018	Beihai, PRC	100%	Investment holding
Subsidiaries of the VIEs
Shenzhen Fenqile Network Technology Co., Ltd. (“Shenzhen Fenqile”)	August 15, 2013	Shenzhen, PRC	100%	Online direct sales and online consumer finance
Shenzhen Beizhipiji Technology Co., Ltd. ("Beizhipiji")	June 26, 2014	Shenzhen, PRC	100%	Online investment platform
Ji’an Fenqile Network Microcredit Co., Ltd. (“Ji’an Microcredit”)	December 2, 2016	Ji’an, PRC	100%	Online consumer credit
Shenzhen Fenqile Trading Co., Ltd. (“Shenzhen Fenqile Trading”)	December 30, 2016	Shenzhen, PRC	100%	Online direct sales
Shenzhen Dingsheng Computer Technology Co., Ltd. (“Shenzhen Dingsheng Technology”)	March 23, 2017	Shenzhen, PRC	100%	Financial technology services
Shenzhen Lexin Financing Guarantee Co., Ltd. (“Shenzhen Lexin Financing Guarantee”)	September 14, 2017	Shenzhen, PRC	100%	Financing guarantee services
Beihai Aurora Technology Co., Ltd. (“Beihai Aurora”)	June 19, 2018	Beihai, PRC	100%	Financial technology services
Beihai Turing Technology Co., Ltd. ("Beihai Turing")	June 11, 2018	Beihai, PRC	100%	Financial technology services
Ganjiang New Area Mengtian Financing Guarantee Co., Ltd.	October 24, 2019	Ganjiang, PRC	100%	Financing guarantee services

History of the Group and Basis of Presentation

The Group commenced operations through Shenzhen Fenqile in August 2013. Beijing Lejiaxin was incorporated in October 2013 and established its wholly owned subsidiary Beizhipiji (former name “Qianhai Juzi”) in June 2014 in order to launch the Group’s online investment platform Juzi Licai, which offers Investment Programs to the Individual Investors.

In November 2013, the Company was incorporated under the Laws of the Cayman Islands to be an offshore holding company for the Group. To comply with PRC laws and regulations which prohibit or restrict foreign ownership of Internet content, the Company obtained control over Shenzhen Fenqile and Beijing Lejiaxin through Beijing Shijitong by entering into a series of contractual arrangements with Shenzhen Fenqile, Beijing Lejiaxin and their nominee shareholders in July 2014. As a result, Shenzhen Fenqile and Beijing Lejiaxin became the consolidated VIEs through the contractual arrangements. The nominee shareholders are defined as legal owners of an entity; however, the rights of the shareholders have been transferred to the Company through contractual arrangements.

The Company obtained control over Shenzhen Xinjie and Qianhai Dingsheng through Beijing Shijitong in December 2015 and January 2016 respectively by entering into a series of contractual arrangements with Shenzhen Xinjie, Qianhai Dingsheng and their nominee shareholders. As a result, Shenzhen Xinjie and Qianhai Dingsheng became the consolidated VIEs through the contractual arrangements. Shenzhen Fenqile then became one of the subsidiaries of Shenzhen Xinjie.

In August 2018, Mengtian Technology, which previously was a subsidiary of one of the consolidated VIEs, became a consolidated VIE by entering into a series of contractual arrangements with its nominee shareholders and Shenzhen Lexin Software.

Management concluded that the Company is entitled to substantially all of the economic benefits from the VIEs and is obligated to absorb all of their expected losses. As such, the Company is the ultimate primary beneficiary of the VIEs and shall consolidate the financial results of these VIEs and their subsidiaries in the Group’s consolidated financial statements. Refer to Note 2(b) to the consolidated financial statements for the basis of consolidation.

Initial Public Offering

On December 26, 2017, the Company completed its initial public offering (“IPO”) on the NASDAQ Global Market in the United States of America. In this offering, 12,000,000 American Depositary Shares (“ADSs”), representing 24,000,000 Class A ordinary shares (“Class A Ordinary Shares”), were issued and sold to the public at a price of US$9.00 per ADS.

In January 2018, the underwriters of the Company’s IPO exercised the options to purchase an additional 1,800,000 ADSs, representing 3,600,000 Class A Ordinary Shares, par value US$0.0001 per share, of the Company to cover over-allotments in full. The net proceeds in connection with 1,800,000 ADSs received by the Company was RMB95.1 million (US$14.7 million), which represents a total gross capital raise of RMB105.2 million (US$16.2 million) less underwriting discounts and commissions and offering expenses in the aggregate amount of RMB10.1 million (US$1.5 million).

Significant Accounting Policies

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Significant Accounting Policies

2. SIGNIFICANT ACCOUNTING POLICIES

(a)

Basis of presentation

The consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Significant accounting policies followed by the Group in the preparation of the accompanying consolidated financial statements are summarized below.

Out-of-period adjustment

For the year ended December 31, 2019, the Group recorded an out-of-period adjustment of RMB66.1 million to reduce financial services income, and corresponding RMB63.6 million of financing receivables and RMB2.5 million of contract assets and service fees receivable in the first quarter of 2019, to correct the cumulative effect of errors in recording discounts and interests waived in the periods prior to December 31, 2018. The Group has evaluated the effects of this out-of-period adjustment, both qualitatively and quantitatively, and concluded that the correction of this amount was not material to the Group’s financial position or results of operations for any prior periods or for the year ended December 31, 2019.

(b)

Basis of consolidation

The consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIEs and subsidiaries of the VIEs for which the Company is the primary beneficiary.

Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors.

A consolidated VIE is an entity in which the Company, or its subsidiaries, through contractual arrangements, has the power to direct the activities that most significantly impact the entity’s economic performance, bears the risks of and enjoys the rewards normally associated with ownership of the entity, and therefore the Company or its subsidiaries is the primary beneficiary of the entity.

All transactions and balances among the Company, its subsidiaries, the VIEs and subsidiaries of the VIEs have been eliminated upon consolidation.

VIE Companies (excluding the consolidated Trusts and asset-backed securitized debts as discussed in Note 2(f))

(i)

Contractual agreements with VIEs

The following is a summary of the contractual agreements (collectively, “Contractual Agreements”) that the Company’s relevant PRC subsidiaries entered into with the VIEs and their nominee shareholders. Through the Contractual Agreements, the VIEs are effectively controlled by the Company.

Exclusive Option Agreements. Pursuant to the Exclusive Option Agreements, the nominee shareholders of the VIEs have irrevocably granted the Group’s relevant PRC subsidiaries an exclusive option to purchase all or part of their respective equity interests in the VIEs. The purchase price shall be the lowest price permitted by law. Without prior written consent of the Group’s relevant PRC subsidiaries, the VIEs shall not, among other things, amend their articles of association, increase or decrease the registered capital, sell, dispose of or set any encumbrance on their assets and equity interests in the VIEs, business or revenue, enter into any material contract outside the ordinary course of business, merge with any other persons or make any investments, distribute dividends, or enter into any transactions which have material adverse effects on their business. These agreements will remain effective until the Group’s relevant PRC subsidiaries and/or any third party designated by the Group’s relevant PRC subsidiaries have acquired all equity interests of the VIEs from their respective nominee shareholders.

Power of Attorney. Pursuant to the Power of Attorney, each nominee shareholder of the VIEs irrevocably authorizes the Group’s relevant PRC subsidiaries to act as its attorney‑in‑fact to exercise all of such shareholder’s voting and other rights associated with the shareholder’s equity interests in the VIEs, including but not limited to, the right to attend shareholder meetings on behalf of such shareholder, the right to appoint legal representatives, directors, supervisors and chief executive officers and other senior management, and the right to sell, transfer, pledge and dispose of all or a portion of the shares held by such shareholder. The power of attorney is irrevocable and remains in force continuously upon execution.

Exclusive Business Cooperation Agreements. Pursuant to these Exclusive Business Cooperation Agreements, the Group’s relevant PRC subsidiaries have the exclusive right to provide the VIEs with comprehensive business support, technical support and consulting services. Without prior written consent of the Group’s relevant PRC subsidiaries, the VIEs shall not accept any services covered by these agreements from any third party. The VIEs agree to pay service fees in an amount determined by the Group’s relevant PRC subsidiaries based on respective profits calculated as operating revenue minus operating cost of the VIEs for the relevant period on a yearly basis or other service fees for specific services as required and as otherwise agreed by both parties. The Group’s relevant PRC subsidiaries own the intellectual property rights arising out of the services performed under these agreements. Unless the Group’s relevant PRC subsidiaries terminate these agreements or pursuant to other provisions of these agreements, these agreements will remain effective indefinitely. These agreements can be terminated by the Group’s relevant PRC subsidiaries through a 30‑day advance written notice, the VIEs have no right to unilaterally terminate these agreements.

Loan Agreements. Pursuant to the relevant loan agreements, the Group’s relevant PRC subsidiaries have granted loans to the relevant nominee shareholders of the VIEs solely for the purpose of providing funds necessary for capital injection into the VIEs to operate their respective businesses. Pursuant to these loan agreements, the nominee shareholders can only repay the loans by the transfer of all their equity interests in the VIEs to the Group’s relevant PRC subsidiaries. The nominee shareholders of the VIEs must pay all of the proceeds from transfer of such equity interests to the Group’s relevant PRC subsidiaries. In the event that the nominee shareholders transfer their equity interests to the Group’s relevant PRC subsidiaries or their designated person(s) with a price equivalent to or less than the amount of the principal, the loans will be interest free. If the price is higher than the amount of the principal, the excess amount will be paid to the Group’s relevant PRC subsidiaries as the loan interest. The loans must be repaid immediately when permitted by PRC laws at the request of the Group’s relevant PRC subsidiaries. Term of both loans is ten years and will be extended automatically for another ten years on each expiration.

Equity Pledge Agreements. Pursuant to these Equity Pledge Agreements, each nominee shareholder of the VIEs has pledged all of his, her or its respective equity interests in the VIEs to the Group’s relevant PRC subsidiaries to guarantee the performance by such nominee shareholder and the VIEs of their respective obligations under the Exclusive Option Agreements, the Power of Attorney, the Loan Agreements, where applicable, and the Exclusive Business Cooperation Agreements, and any amendment, supplement or restatement to such agreements. If the VIEs or any of their nominee shareholders breach any obligations under these agreements, the Group’s relevant PRC subsidiaries, as pledgee, will be entitled to dispose of the pledged equity and have priority to be compensated by the proceeds from the disposal of the pledged equity. Each of the nominee shareholders of the VIEs agrees that before his, her or its obligations under the Contractual Agreements are discharged, he, she or it will not dispose of the pledged equity interests, create or allow any encumbrance on the pledged equity interests, which may result in the change of the pledged equity that may have adverse effects on the pledgee’s rights under these agreements without the prior written consent of the Group’s relevant PRC subsidiaries. These Equity Pledge Agreements will remain effective until the VIEs and their nominee shareholders discharge all their respective obligations under the Contractual Agreements.

(ii)

Risks in relation to the VIE structure

Under the Contractual Agreements with the VIEs, the Company has the power to direct activities of the VIEs and the VIEs’ subsidiaries and can have assets transferred out of the VIEs and the VIEs’ subsidiaries. Therefore, the Company considers itself the ultimate primary beneficiary of the VIEs and there is no asset of the VIEs that can only be used to settle obligations of the VIEs and the VIEs’ subsidiaries except for registered capitals and PRC statutory reserves of the consolidated VIEs amounting to RMB5,848.0 million as of December 31, 2021. Since the VIEs are incorporated as limited liability companies under the PRC Company Law, creditors of the VIEs do not have recourse to the general credit of the Company. There is currently no contractual arrangement that would require the Company to provide additional financial support to the VIEs. However, as the Company is conducting certain businesses mainly through the consolidated VIEs and the VIEs’ subsidiaries, the Company may provide such support on a discretionary basis in the future, which could expose the Company to a loss.

In the opinion of the Company’s management, the contractual arrangements among its subsidiaries, the VIEs and their respective nominee shareholders are in compliance with current PRC laws and are legally binding and enforceable. However, uncertainties in the interpretation and enforcement of the PRC laws, regulations and policies could limit the Company’s ability to enforce these contractual arrangements. As a result, the Company may be unable to consolidate the VIEs and the VIEs’ subsidiaries in the consolidated financial statements.

In March 2019, the Foreign Investment Law was approved by the National People’s Congress on March 15, 2019, effective on January 1, 2020. In December 2019, the State Council promulgated the Implementation Regulations on the Foreign Investment Law, effective on January 1, 2020, and further clarified and elaborated the relevant provisions of the Foreign Investment Law. Given that there still exist uncertainties in relation to the interpretation and implementation of the Foreign Investment Law and its implementation regulations, the possibility that the VIEs will be deemed as foreign-invested enterprise and subject to relevant restrictions in the future shall not be excluded.

The Company’s ability to control the VIEs also depends on the power of attorney the Group’s relevant PRC subsidiaries have to vote on all matters requiring shareholders’ approvals in the VIEs. As noted above, the Company believes this power of attorney is legally binding and enforceable but may not be as effective as direct equity ownership. In addition, if the Group’s corporate structure or the contractual arrangements with the VIEs were found to be in violation of any existing PRC laws and regulations, the PRC regulatory authorities could, within their respective jurisdictions:

•

revoke the Group’s business and operating licenses;

•

require the Group to discontinue or restrict its operations;

•

restrict the Group’s right to collect revenues;

•

block the Group’s websites;

•

require the Group to restructure its operations, re‑apply for the necessary licenses or relocate the Group’s businesses, staff and assets;

•

impose additional conditions or requirements with which the Group may not be able to comply; or

•

take other regulatory or enforcement actions against the Group that could be harmful to the Group’s business.

The imposition of any of these restrictions or actions may result in a material adverse effect on the Group’s ability to conduct its business. In addition, if the imposition of any of these restrictions causes the Group to lose the right to direct the activities of the VIEs or the right to receive their economic benefits, the Group would no longer be able to consolidate the financial statements of the VIEs. In the opinion of management, the likelihood of losing the benefits in respect of the Group’s current ownership structure or the contractual arrangements with its VIEs is remote.

All of the consolidated VIEs are incorporated and operated in the PRC, which are effectively controlled by the Company through a series of contractual agreements entered into among the Company’s relevant PRC subsidiaries, the VIEs and their nominee shareholders. The Company believes the possibility that it will no longer be able to control and consolidate the VIEs as a result of the aforementioned risks and uncertainties are remote.

Summary of Financial Information of the Consolidated VIEs

The following table sets forth the assets, liabilities, results of operations and changes in cash and cash equivalents and restricted cash of the VIEs and their subsidiaries taken as a whole, which were included in the Group’s consolidated financial statements. The financial information of the consolidated trusts and asset-backed securities (“ABS”) were also included in the following table, as the consolidated VIE companies are considered the primary beneficiary of these trusts and ABS plans:


		As of December 31,
		2020			2021


	(RMB in thousands)
Consolidating Schedule of Financial Position
ASSETS
Cash and cash equivalents		1,300,220	2,132,402
Restricted cash		1,274,718	1,423,233
Restricted time deposits		509,600	424,678
Financing receivables, net		5,123,309	4,014,102
Loan at fair value		381,393	252,970
Amounts due from Group companies (1)		219,807	58,050
Deposits to insurance companies and guarantee companies		1,066,281	1,378,489
Contract assets, service fees receivable and guarantee receivables		5,103,246	4,661,403
Property, equipment and software, net		58,812	129,769
Land use rights, net and right of use assets		1,056,444	1,096,579
Long‑term investments		435,790	448,886
Other assets		2,219,213	2,675,389
TOTAL ASSETS		18,748,833	18,695,950
LIABILITIES
Amounts due to Group companies (1)		4,930,414	6,452,376
Short‑term borrowings		1,751,633	1,735,931
Funding debts		5,511,749	3,798,233
Deferred guarantee income		694,582	419,843
Contingent guarantee liabilities		1,738,787	928,840
Other liabilities		2,754,100	3,593,686
TOTAL LIABILITIES		17,381,265	16,928,909
Total equity attributable to owners of the company		1,327,568	1,726,848
Non-controlling interests		40,000	40,193
TOTAL SHAREHOLDERS’ EQUITY		1,367,568	1,767,041
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		18,748,833	18,695,950


	For the Year Ended December 31,
	2019			2020			2021
	(RMB in thousands)
Condensed Consolidating Schedule of Results of Operations
Operating revenue:
Third-party revenues		10,603,507			11,579,992			11,091,978
Inter-group revenues (2)		5,210			449			11,429
Total Operating revenue		10,608,717			11,580,441			11,103,407
Operating cost:
Third-party costs		(5,575,251	)		(7,959,095	)		(5,520,994	)
Inter-group costs(2)		(58,469	)		(21,817	)		(1,636	)
Total operating cost		(5,633,720	)		(7,980,912	)		(5,522,630	)
Gross profit		4,974,997			3,599,529			5,580,777
Operating expense:
Third-party expenses		(1,692,792	)		(1,360,975	)		(1,689,151	)
Inter-group expenses(2)		(1,285,727	)		(2,387,176	)		(3,047,627	)
Total operating expenses		(2,978,519	)		(3,748,151	)		(4,736,778	)
Others		11,202			(798,733	)		(369,200	)
Income/(Loss) before income tax		2,007,680			(947,355	)		474,799
Income tax (expenses)/benefits		(316,661	)		131,242			(142,201	)
Net income/(loss)		1,691,019			(816,113	)		332,598
Less: net income attributable to non-controlling interests		—			—			193
Net income/(loss) attributable to ordinary shareholders of the Company		1,691,019			(816,113	)		332,405


	For the Year Ended December 31,
	2019			2020			2021
	(RMB in thousands)
Net cash used in operating activities		(1,250,380	)		(1,750,611	)		(298,268	)
Net cash (used in)/provided by transactions with external parties		(118,606	)		670,707			3,839,254
Net cash used in transactions with inter-group entities for technical service charges and others (3)		(1,131,774	)		(2,421,318	)		(4,137,522	)
Net cash provided by/(used in) investing activities		579,207			(2,190,303	)		622,696
Net cash provided by/(used in) transactions with external parties		763,395			(2,389,743	)		472,228
Net cash (used in)/provided by funds to Group companies (4)		(184,188	)		199,440			150,468
Net cash provided by financing activities		1,006,844			3,720,373			656,269
Net cash provided by/(used in) transactions with external parties		573,227			1,203,610			(1,775,038	)
Net cash provided by funds from Group companies (5)		433,617			2,516,763			2,431,307
Net increase/(decrease) in cash, cash equivalents and restricted cash		335,671			(220,541	)		980,697
Cash, cash equivalents and restricted cash at beginning of the year		2,462,134			2,797,805			2,574,938
Cumulative effect due to the adoption of ASC 326 (Note 2(e))		—			(2,326	)		—
Cash, cash equivalents and restricted cash at end of the year		2,797,805			2,574,938			3,555,635

Amounts included in the above disclosure and previously reported for the years ended December 31, 2019 and 2020 have been revised to correct an error which, in the opinion of management, is immaterial. For the year ended December 31, 2019, cash flows from operating activities and financing activities were increased by RMB49 million and RMB135 million, respectively, and cash flows from investing activities were decreased by RMB184 million from the amounts previously reported. For the year ended December 31, 2020, cash flows from operating activities were decreased by RMB3,193 million, and cash flows from investing activities and financing activities were increased by RMB715 million and RMB2,478 million, respectively, from the amounts previously reported. The impact of the errors was eliminated in consolidation. Accordingly, there is no impact on the previously reported consolidated cash flows.

(1)

The amounts due from Group companies represent the funds provided by the consolidated VIEs to WFOEs, and the operating receivables resulting from the provision of goods and services to WFOEs;
The amounts due to Group companies represent the funds provided by group companies to the consolidated VIEs, and the operating payables resulting from the technical service fees charged by WFOEs.

(2)

The inter-group revenues and inter-group costs recognized by the consolidated VIEs were related to the goods and services between the consolidated VIEs and WFOEs;
The inter-group expenses incurred by the consolidated VIEs represent the technical service fees charged by WFOEs.

(3)

For the years ended December 31, 2019, 2020 and 2021, cash paid by the VIEs to WFOEs for technical service fees were RMB1,140 million, RMB2,422 million and RMB4,140 million, respectively. Cash received by the VIEs to WFOEs for the provision of goods and services were RMB8.3 million, RMB0.7 million and RMB2.5 million, respectively.

(4)

Net cash (used in)/provided by funds to Group companies represent the funds provided by the consolidated VIEs to WFOEs, and the collections from the WFOEs for the funds previously provided by the consolidated VIEs.

(5)

Net cash (used in)/provided by funds from Group companies represent the funds provided by WFOEs to the consolidated VIEs.

(c)

Use of estimates

The preparation of the Group’s consolidated financial statements is in conformity with the U.S. GAAP, which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of financial statement and reported revenues and expenses during the reported periods. Significant accounting estimates include, but are not limited to (i) revenue recognition; (ii) allowance for credit losses on the financial assets measured at amortized cost and financial guarantees and (iii) initial recognition and subsequent measurement of guarantee derivatives at fair value. Actual results could materially differ from these estimates.

(d)

Functional currency and foreign currency translation

The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its subsidiaries incorporated in Hong Kong is United States dollars (“US$”) and the functional currencies of the PRC entities in the Group are RMB.

In the consolidated financial statements, the financial information of the Company and its subsidiaries incorporated in Hong Kong have been translated into RMB at the exchange rates quoted by the People’s Bank of China (the “PBOC”). Assets and liabilities are translated at the exchange rates on the balance sheet date, equity amounts are translated at historical exchange rates, and revenues, expenses, gains and losses are translated using the average rate for the period. Translation adjustments arising from these are reported as foreign currency translation adjustments, and are shown as a component of accumulated other comprehensive income on the Consolidated Statements of Changes in Shareholders’ Equity and a component of other comprehensive income on the Consolidated Statements of Comprehensive Income.

Foreign currency transactions denominated in currencies other than the functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are remeasured at the applicable rates of exchange in effect at that date. Foreign currency exchange gain or loss resulting from the settlement of such transactions and from remeasurement at period‑end is recognized in “Others, net” on the Consolidated Statements of Operations.

Foreign currency translation adjustments included in the Group’s Consolidated Statements of Comprehensive Income for the years ended December 31, 2019, 2020 and 2021 were gain of RMB7.0 million, gain of RMB10.6 million, and gain of RMB8.0 million respectively. Foreign currency translation adjustments recorded was immaterial for each of the periods presented.

(e)

Convenience translation

Translations of balances on the Consolidated Balance Sheets, Consolidated Statements of Operations, Consolidated Statements of Comprehensive Income and Consolidated Statements of Cash Flows from RMB into US$ 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 US$1.00=RMB6.3726, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 30, 2021. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2021, or at any other rate.

(f)

Presentation for on- and off-balance sheet loans

The Group finances the loans with the proceeds from various funding partners, which primarily include: (1) the Institutional Funding Partners; (2) the Individual Investors on Juzi Licai; (3) third-party investors of the consolidated Trusts and asset‑backed securitized debts. Depending on the arrangements among the Group, the Borrowers and the funding partners, the underlying loans are accounted for as “on-balance sheet loans” or “off-balance sheet loans”, where applicable.

On‑balance sheet loans

(a)

Loans funded by individual investors on Juzi Licai under the Old Model (as defined hereinafter) or certain Institutional Funding Partners

For loans funded by the proceeds from the Group's own online investment platform Juzi Licai under the Old Model (as defined hereinafter), which offered the Individual Investors various Investment Programs with different terms and estimated rates of return, or from certain Institutional Funding Partners, the Group's roles included: (1) collecting the investment principal from the Individual Investors or Institutional Funding Partners and lending the funds to Borrowers, (2) collecting monthly repayment from the Borrowers and repaying the Individual Investors or Institutional Funding Partners according to the terms (i.e. interest rate and scheduled repayment dates) of respective Investment Programs or agreements (“Investment Agreements”) between the Individual Investors or Institutional Funding Partners and the Group.

The Group noted that the terms of the underlying loan agreements between the Individual Investors or Institutional Funding Partners and the Borrowers (“Underlying Loan Agreements”) did not necessarily match the terms of the Investment Programs or Agreements. The mismatch was mainly due to the fact that some Individual Investors or Institutional Funding Partners may invest in the programs that had shorter investment periods than the terms of the Underlying Loan Agreements. Depending on the types of Investment Programs the Individual Investors choose or the Investment Agreements the Institutional Funding Partners entered into with the Group, the investing periods could be as short as one week and as long as twenty-fourth months. Pursuant to the Investment Programs or Agreements, the Individual Investors or Institutional Funding Partners agreed on a rate of return with the Group which was normally lower than the coupon interest rate stipulated in the Underlying Loan Agreement, given the shorter periods of those Investment Programs or Agreements. The Group considered the terms of the Investment Programs or Agreements, which drove the return of the investments, and concluded the Group had liabilities to the Individual Investors or Institutional Funding Partners when the funds from the Investment Programs or Agreements were received. Accordingly, the Group was considered as the primary obligor to the Individual Investors or Institutional Funding Partners in the lending relationship and therefore recorded the liabilities to the Individual Investors or

Institutional Funding Partners as “Funding Debts” (Note 2(h)) on its Consolidated Balance Sheets. The underlying loans were recorded as “Financing receivables, net” on the Consolidated Balance Sheets.

As of December 31, 2020 and 2021, loans funded by the Individual Investors on Juzi Licai under the Old Model were nil.

(b)

Loans funded by establishment of the consolidated Trusts and issuance of asset‑backed securitized debts

The Group establishes business relationships with Trusts from time to time. Pursuant to applicable arrangements, the Group invested in the financing receivables using funds from the consolidated Trusts. The Trusts are administered by third-party trust companies, which act as the trustees, with funds contributed by the Group and/or the third-party investors for the purposes of providing returns to the beneficiary of the Trusts. Since these Trusts only invest in financing receivables generated from the Group’s Platform and APP, the Group has power to direct the activities of the Trusts. The Group has the obligation to absorb losses or the right to receive benefits from the Trusts that could potentially be significant to the Trusts. As a result, the Trusts are considered consolidated VIEs of the Group under Accounting Standards Codification (“ASC”) 810, Consolidation.

The Group also issues private asset-backed securities (“ABS”) to diversify its funding sources. The Group is considered the primary beneficiary of these ABS plans as it has power to direct the activities that most significantly impact economic performance of the ABS plans, and consolidated the ABS plans in the consolidated financial statements under ASC 810, Consolidation.

Therefore, loans funded by the consolidated Trusts and asset-backed securitized debts remain at the Group and are recorded as “Financing receivables, net” on the Consolidated Balance Sheets. The proceeds received from third‑party investors of the consolidated Trusts and asset-backed securitized debts are recorded as “Funding Debts” (Note 2(h)). Cash received via consolidated Trusts that has not yet been distributed is recorded as “Restricted cash”.

Off‑balance sheet loans

(a)

Loans funded by certain Institutional Funding Partners such as third-party commercial banks or consumer finance companies

For loans funded by the proceeds from certain Institutional Funding Partners such as third-party commercial banks or consumer finance companies, each underlying loan and Borrower has to be approved by the third-party commercial banks or consumer finance companies individually. Once the loan is approved by and originated by the third-party commercial bank or consumer finance company, the fund is provided by the third-party commercial bank or consumer finance company to the Borrower and a lending relationship between the Borrower and the third-party commercial bank or consumer finance company is established through a loan agreement. Effectively, the Group offers loan facilitation and matching services to the Borrowers who have credit needs and the commercial banks or consumer finance companies who originate loans directly to Borrowers referred by the Group. The Group continues to provide account maintenance and payment processing services to the Borrowers over the term of the loan agreement. Under this scenario, the Group determines that it is not the legal lender or borrower in the loan origination and repayment process. Accordingly, the Group does not record financing receivables arising from these loans nor Funding Debts to the Institutional Funding Partners.

(b)

Loans funded by the Individual Investors on Juzi Licai under the New Model (as defined hereinafter)

In late April 2018, the Group made some adjustments to its business model for new loans funded by the Individual Investors on Juzi Licai (the “New Model”, and the “Old Model” referred to the business model of Juzi Licai before such adjustments). Under the New Model, the Group’s roles included: (1) matching the borrowing requests from the Borrowers with the Individual Investors on Juzi Licai, (2) processing monthly repayment from the Borrowers according to the terms of the Underlying Loan Agreements through third-party custodian bank accounts, and (3) providing ongoing management services to the Individual Investors over the terms of respective Investment Programs.

Under the New Model, the Group acted as an intermediary between the Borrower and the Individual Investors. Pursuant to the Underlying Loan Agreement and the Investment Programs, the Individual Investors were entitled to all the interests generated from the underlying loans. Such interests were not generated until the lending relationship has been established between the Borrowers and the Individual Investors as the lenders, upon entering into the Underlying Loan Agreements. The existing Individual Investor cannot exit from any lending relationship of outstanding loan unless the underlying loan was fully repaid or the outstanding loan principal with the remaining term was successfully re-matched with other Individual Investors. The Group provided ongoing matching and re-matching services to the Individual Investors over the terms of respective Investment Programs while it did not have any obligations to ensure such successful re-matching.

The Group considered the terms of the Underlying Loan Agreements and the Investment Programs under the New Model and concluded that the Group was not the legal lender or borrower in the loan origination and repayment process. Accordingly, the Group did not record financing receivables arising from these loans nor Funding Debts to the Individual Investors.

The balances of funds payable to Individual Investors represented the investment funds received from the Individual Investors on Juzi Licai under the New Model but not yet matched with and transferred to the Borrowers due to the settlement time lag.

The Company has ceased facilitating new loans with funding from individual investors on Juzi Licai since November 2019 and cleared the outstanding balance of loans invested by individual investors in December 2020. As of December 31, 2020 and 2021, loans funded by the Individual Investors on Juzi Licai and the balance of funds payable to Individual Investors were nil.

Measurement of financing receivables

Financing receivables are measured at amortized cost and reported on the Consolidated Balance Sheets at outstanding principal adjusted for any charge‑offs, the allowance for credit losses, and net deferred origination fees on originated financing receivables. The Group recognizes interest and financial services income over the terms of the financing receivables using the effective interest rate method. Refer to Note 2(m) for details. For financing receivables initially generated from online sales with installment payment terms on the Group’s Platform or APP, if they are subsequently funded by on-balance sheet loans, the Group considers that the financing receivables are not settled or extinguished, and therefore continues to account for these financing receivables according to the installment payment terms. If the financing receivables are subsequently funded by off-balance sheet loans, the Group considers that these financing receivables are settled and extinguished with the proceeds from the off-balance sheet loans as facilitated by the Group.

(a)

Accrued interest receivable

Accrued interest income on financing receivables is calculated based on the contractual interest rate of the loan and recorded as interest and financial services income as earned. Financing receivables are placed on non‑accrual status upon reaching 90 days past due. When a financing receivable is placed on non‑accrual status, the Group stops accruing interest and reverses all accrued but unpaid interest as of such date.

(b)

Nonaccrual financing receivables and charged‑off financing receivables

The Group considers a financing receivable to be delinquent when a monthly payment is one day past due. When the Group determines it is probable that it will be unable to collect unpaid principal amount on the receivable, the remaining unpaid principal balance is charged off against the allowance for credit losses. Generally, charge‑offs occur after the 180th day of delinquency. Interest and financial services income for nonaccrual financing receivables is recognized on a cash basis. Cash receipt of non‑accrual financing receivables would be first applied to any unpaid principal, late payment fees, if any, before recognizing interest and financial services income. The Group does not resume accrual of interest after a loan has been placed on nonaccrual status.

(g)

Allowance for credit losses

The Group mainly has the following types of financial assets that are subject to credit losses of the customers: financing receivables, accrued interest receivable, contract assets, service fees receivable, and guarantee receivables.

Before the adoption of Accounting Standards Codification (“ASC”) 326 on January 1, 2020

The Group assessed the creditworthiness and collectability of the portfolios of respective financial assets, mainly based on historical charge offs of respective underlying on- and off-balance sheet loans, where applicable, using an established systematic process on a pooled basis within each credit risk levels of the Borrowers. The Group considered location, education background, income level, outstanding external borrowings, and external credit references when assigning Borrowers into different credit risk levels. Also, each portfolio of respective financial asset subject to credit losses within each credit risk level consisted of individually small amount of on- and off-balance sheet loans. In the consideration of above factors, the Group determined that each portfolio of respective financial asset subject to credit losses within each credit risk level was homogenous with similar credit characteristics.

The Group’s allowance for credit losses of financial assets was calculated separately within each credit risk level of the Borrowers, taking into considerations of flexible repayment options of the underlying on- and off-balance sheet loans, where applicable. For each credit risk level, the Group estimated the probable incurred loss rate based on delinquency status of the respective financial assets within that level: current, 1 to 29, 30 to 59, 60 to 89, 90 to 119, 120 to 149, 150 to 179 calendar days past due. These loss rates in each delinquency status were based on average historical loss rates of financial assets subject to credit losses associated with each of the abovementioned delinquency categories. The probable incurred loss rate of the specific delinquency status category within each risk level was applied to the applicable outstanding balances of respective financial assets within that level to determine the allowance for credit losses for each reporting period. In addition, the Group considered other general economic conditions, if any, when determining the allowance for credit losses.

After the adoption of ASC 326 on January 1, 2020

Effective January 1, 2020, the Group adopted Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This guidance replaces the existing “incurred loss” methodology, and introduces a forward-looking expected loss approach referred to as a current expected credit losses (“CECL”) methodology. Under the incurred loss methodology, credit losses are recognized only when the losses are probable of having been incurred. The CECL methodology requires that the full amount of expected credit losses for the lifetime be recorded at the time the financial asset is originated or acquired, and adjusted for changes in expected lifetime credit losses subsequently, which requires earlier recognition of credit losses.

The Group’s CECL model and methodologies are based on the likelihood of customers defaulting (i.e., Probability of Default, or PD) and the resulting losses of customers’ defaults (i.e. Loss Given Default, or LGD) and Exposure at Default (“EAD”), or CECL=PD*LGD*EAD. The Group considers the PD with its historical information of customers’ payment behaviors and loan performance, and further adjusts for the impacts from observed industry experience. PDs are based on respective internal risk grades assigned to each of the customers by the Group. LGD is determined based on historical information of the extent of loss on a defaulted exposure. EAD is calculated based on the amounts the Group expected to be owed at the time of default, over the term of the loans. The Group also incorporates the forward-looking information in the CECL, taking into account a range of forecasts of macroeconomic conditions over the expected life of the loans. The macroeconomic factors used in model include variables that have historically been key drivers of increases and decreases in credit losses, such as Gross Domestic Product and M2 (a measurement of broad money supply including cash and deposits, which is published by People's Bank of China on a routine basis). The expected life of each loan is determined based on the contractual term. The allowance for credit losses also includes management overlays which allow management to reflect the uncertain nature of economic forecasting and account for model imprecision and concentration risk.

The CECL methodology is applicable to estimation of credit losses of financial assets measured at amortized cost, primarily including financing receivables, contract assets, service fees receivable, and guarantee receivables of the Group. As a result, the Group recognized the cumulative effect as a decrease of approximately RMB0.3 billion to the opening balances of retained earnings, and an increase of the corresponding amount to the credit allowance of financial assets measured at amortized cost, which is primarily driven by the longer estimated periods of underlying loans under the CECL lifetime methodology compared to incurred loss methodology before the adoption of the new standard.

The CECL methodology also applies to certain off-balance sheet credit exposures, such as financial guarantees not accounted for as derivatives. The financial guarantees provided for the Group’s off-balance sheet loans accounted for under ASC 460 are in the scope of ASC 326 and subject to the CECL methodology. After the adoption, the expected credit losses (the contingent aspect) of the guarantee shall be accounted for in addition to and separately from the guarantee liability (the noncontingent aspect) accounted for under ASC 460. Before the adoption, the guarantee liabilities subsequent to initial recognition were measured at the greater of the amount determined based on ASC 460 and the amount determined under ASC 450. An excess liability was recorded when the aggregate contingent liabilities under ASC 450 exceeded the balance of guarantee liabilities determined under ASC 460. The initial adoption resulted in a recognition of a separate contingent liability in full amount, in addition to financial guarantee liabilities measured under ASC 460. Further, the contingent liability is determined using CECL lifetime methodology compared to incurred loss methodology before the adoption. Consequently, the Company recognized the cumulative effect as a decrease of approximately RMB2.0 billion to the opening balances of retained earnings. The carrying amount of financial guarantee liabilities under ASC 460 upon the initial adoption has continued to be reduced by recording a credit to net income as the guarantor is released from the guaranteed risk in accordance with ASC 460, but no longer subject to the recording of an excess contingent lability under ASC 450.

The financial impacts described above totaled approximately RMB2.3 billion along with the associated deferred tax impact of approximately RMB0.4 billion. As a result, the Group recognized the cumulative effect of approximately RMB1.9 billion, net of tax, as a decrease to the opening balances of retained earnings on January 1, 2020.

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:


(RMB in thousands)	As of December 31, 2019				Adjustments due to the adoption of ASC 326				As of January 1, 2020
Assets
Cash and cash equivalents		2,085,234				(1,465	)			2,083,769
Restricted cash		1,900,392				(1,848	)			1,898,544
Restricted time deposits		1,966,643				(1,921	)			1,964,722
Financing receivables, net		4,411,488				(229,661	)			4,181,827
Accrued interest receivable, net		54,284				(1,681	)			52,603
Guarantee receivables, net		1,464,977				(40,388	)			1,424,589
Prepaid expenses and other current assets		1,324,924				(12,077	)			1,312,847
Deposits to insurance companies and guarantee companies		1,251,003				(3,060	)			1,247,943
Contract assets and service fees receivable, net		3,454,851				(26,045	)			3,428,806
Other assets		454,421				(2,466	)			451,955
Long-term investments		511,605				(3,588	)			508,017
Liabilities
Guarantee liabilities(1)	(1,726,368)			(2)		1,726,368				—
Deferred guarantee income(1)		—			(1,481,814)			(2)		(1,481,814	)
Contingent guarantee liabilities(1)		—			(2,214,128)			(2)		(2,214,128	)
Total impact to allowance for credit losses						(2,293,774	)
Deferred tax assets		157,138				78,803				235,941
Deferred tax liabilities		(309,646	)			296,471				(13,175	)
Total retained earnings impact						(1,918,500	)

(1) Before the adoption of ASC 326, the guarantee liabilities subsequent to initial recognition were measured at the greater of the amount determined based on ASC 460 and the amount determined under ASC 450. An excess liability was recorded when the aggregate contingent liabilities under ASC 450 exceeded the balance of guarantee liabilities determined under ASC 460.

After the adoption of ASC 326, a contingent liability in full amount determined using CECL lifetime methodology of the guarantee (i.e., the contingent aspect recorded as “Contingent guarantee liabilities”) shall be accounted for in addition to and separately from the guarantee liability (i.e., the noncontingent aspect recorded as “Deferred guarantee income”) accounted for under ASC 460.

(2) As of December 31, 2019, the Group determined that the aggregate contingent liabilities under ASC 450 (RMB1,726.4 million) exceeded the balance of guarantee liabilities (RMB1,481.8 million) under ASC 460 and recorded an excess liability of RMB244.6 million. As a result of the adoption, RMB1,481.8 million of guarantee liabilities previously under ASC 460 was recorded as “Deferred guarantee income,” and RMB2,214.1 million of contingent guarantee liabilities is determined using CECL lifetime methodology compared to incurred loss methodology before the adoption.

(h)

Funding debts

For the proceeds received from the funding partners, including the third-party investors of the consolidated Trusts and asset-backed securitized debts, and certain Institutional Funding Partners, to fund the Group’s on-balance sheet loans, the Group records them as funding debts (“Funding Debts”) on its Consolidated Balance Sheets.

(i)

Accrued interest payable

Accrued interest payable is calculated based on the contractual interest rates of funding debts and convertible notes.

(j)

Guarantee receivables and liabilities

For the off-balance sheet loans funded by certain Institutional Funding Partners, the Group provides deposits and replenish such deposits from time to time to the Institutional funding partners by directly compensating them for principal and interest payment in the event of the Borrowers’ defaults, which are accounted for as guarantee liabilities under ASC 460, Guarantees.

Starting from 2019, the Group started to cooperate with third-party insurance companies and guarantee companies that directly provide guarantee services to certain Institutional Funding Partners, and no longer replenished the deposits made to these Institutional Funding Partners. According to relevant financial guarantee arrangements, third-party insurance companies and guarantee companies will provide the principal and interest payment to these Institutional Funding Partners, in case of Borrowers’ defaults. However, the Group is required to provide deposits and replenish such deposits from time to time to the bank accounts of these insurance companies and guarantee companies, in the event that such insurance companies and guarantee companies perform their guarantee obligations upon the Borrowers’ defaults. Effectively, the Group provides back-to-back guarantee to the insurance companies and guarantee companies and takes on all of the credit risk of the Borrowers. These financial guarantee contracts are accounted for as guarantee liabilities under ASC 460, Guarantees, provided that the scope exception under ASC 815-10-15-58 is met.

For the off-balance sheet loans funded by certain other Institutional Funding Partners, these Institutional Funding Partners retain the credit exposure of the loans facilitated by the Group and do not require the Group to provide any guarantee pursuant to relevant arrangements. Therefore, the Group does not record guarantee receivables nor guarantee liabilities for the off-balance sheet loans funded by these Institutional Funding Partners.

Before the adoption of ASC 326 on January 1, 2020

Before the adoption of ASC 326, guarantee liabilities under ASC 460 were comprised of two components: (i) ASC 460 component; and (ii) ASC 450 component. In accordance with ASC 460-10-25-2 and ASC 460-10-30-3, the non-contingent and contingent aspect of the financial guarantee must both be considered at initial measurement. Accordingly, the guarantee liabilities were required to be measured at fair value at inception and reduced as the Group was released from the underlying risk, i.e., as the underlying loan was repaid by the Borrower or when the lender was compensated in the event of a Borrower’s default. This component was a stand ready obligation which was not subject to the probable threshold used to record a contingent obligation. The estimated fair value of the guarantee liabilities at inception of the loans was determined by the Group based on a discounted cash flow model, with reference to estimates of probable incurred loss rate and expected margins on cost of guarantee services. The other component was a contingent liability determined based on historical loss rates, representing the obligation to make future payouts, measured using the guidance in ASC 450, Contingencies. The ASC 450 contingent component considered the actual and expected performance of the loans on a pool basis when estimating the contingent liability.

Subsequent to initial recognition, the guarantee liabilities were measured at the greater of the amount determined based on ASC 460 and the amount determined based on ASC 450. ASC 460 does not prescribe a method for subsequently measuring and recording the noncontingent guarantee liabilities. However, as stated in ASC 460-10-35-1, the guarantee liabilities should generally be reduced by recording a credit to net income as the guarantor is released from the guaranteed risk. As the risk was reduced as each monthly payment was made, guarantee liabilities were recognized by a systematic and rational amortization method, i.e. over the terms of the underlying loans, as “Gain on guarantee liabilities, net” on the Consolidated Statements of Operations. At each reporting date, on a portfolio basis, when the aggregate contingent liabilities required to be recognized under ASC 450 exceeded the balance of guarantee liabilities determined under ASC 460, the Group recorded the excess against “Gain on guarantee liabilities, net” on its Consolidated Statements of Operations.

Guarantee receivables were recognized and measured at inception at fair value. For loans with original terms greater than 12 months, the Group determines a significant financing component exists in the arrangements. The discount rate, which reflects the credit risk of the customers, was used in adjusting the guarantee receivables at inception. Interest income resulting from the significant financing component is recorded as “Interest and financial services income and other revenues” on the Consolidated Statements of Operations.

At each reporting date, the Group assessed whether there is any indicator of impairment to the guarantee receivables. An impairment loss was recorded if the carrying amounts of the guarantee receivables exceeded the expected collections.

After the adoption of ASC 326 on January 1, 2020

As discussed in Note 2(g) above, the financial guarantees provided for the Group’s off-balance sheet loans accounted for under ASC 460 are in the scope of ASC 326 and subject to the CECL methodology.

After the adoption, the estimated fair value of the guarantee liabilities at inception of the loans continues to be determined based on a discounted cash flow model, but with reference to estimates of expected loss rates using CECL lifetime methodology. Subsequent to initial recognition, the guarantee liabilities continue to be reduced by recording a credit to net income as the guarantor is released from the guaranteed risk over the terms of the underlying loans, as “Guarantee income” on the Consolidated Statements of Operations.

The expected credit losses of the guarantee (the contingent aspect recorded as “Contingent guarantee liabilities”) are accounted for in addition to and separately from the guarantee liability (the noncontingent aspect recorded as “Deferred guarantee income”) accounted for under ASC 460. The contingent guarantee liabilities are determined using CECL lifetime methodology, compared to incurred loss methodology before the adoption, and recognized in full amount at loan inceptions. At each reporting date, the Group measures the contingent guarantee liabilities of the underlying loans, on a portfolio basis, and the relevant credit losses of guarantee are recorded as “Provision for credit losses of contingent liabilities of guarantee” on the Consolidated Statements of Operations.

The following table sets forth the activities of the Group’s obligations associated with the guarantee liabilities for the year ended December 31, 2019 prior to the adoption of ASC 326:


	For the year ended December 31, 2019
	(RMB in thousands)
Opening balances		456,276
Fair value of guarantee liabilities at inception of new loans		1,024,331
Release of guarantee liabilities upon the Borrowers’ repayment		(424,962	)
Transfer from guarantee previously accounted for as derivatives*		1,325,935
Contingent liability		179,417
Payouts during the period		(2,926,080	)
Recoveries during the period		2,091,451
Ending balances		1,726,368

*Since November 2019, the Group ceased to compensate interest repayment under the original terms of the loans to the Institutional Funding Partners, in the event that Borrowers early repay their loans. According to relevant financial guarantee contracts with certain Institutional Funding Partners, the guarantee provided by the Group met the scope exception under ASC 815-10-15-58 thereafter. Consequently, this financial guarantee previously provided for the outstanding off-balance sheet loans and accounted for as derivatives under ASC 815 was derecognized and accounted for as guarantee liabilities thereafter under ASC 460, which resulted in an increase in guarantee liabilities of RMB1.3 billion and corresponding guarantee receivables of RMB0.8 billion during the year ended December 31, 2019.

The following table sets forth the activities of the Group’s obligations associated with the deferred guarantee income for the years ended December 31, 2020 and 2021 after the adoption of ASC 326:


	For the Year Ended December 31, 2020			For the Year Ended December 31, 2021
	(RMB in thousands)
Opening balances		-			694,582
Cumulative effect due to the adoption of ASC 326 (Note 2(g))		1,481,814			—
Fair value of deferred guarantee income at inception of new loans		1,532,461			499,805
Release of deferred guarantee income		(2,319,693	)		(774,544	)
Ending balances		694,582			419,843

The following table sets forth the activities of the Group’s obligations associated with the contingent guarantee liabilities for the year ended December 31, 2020 and 2021 after the adoption of ASC 326:


	For the Year Ended December 31, 2020			For the Year Ended December 31, 2021
	(RMB in thousands)
Opening balances		—			1,738,787
Cumulative effect due to the adoption of ASC 326 (Note 2(g))		2,214,128			—
Provision for credit losses of contingent liabilities of guarantee		2,880,590			622,438
Net cash payout		(3,355,931	)		(1,432,385	)
Ending balances		1,738,787			928,840

(k)

Loans at fair value

From time to time, the Group acquires the loans when they are one day past due, or purchases the entire loans with certain monthly repayments that are past due over certain days consecutively or cumulatively, from certain funding partners, according to the relevant cooperation agreements with respective funding partners.

For those loans the Group acquired or purchased from the relevant funding partners, the Group accounts for them using fair value option pursuant to ASC 825, Financial Instruments, and records them on the Consolidated Balance Sheets as “Loans at fair value.”

As the loans acquired or purchased are not traded in an active market with readily observable prices, the Group estimates the fair value of loans acquired or purchased from funding partners using a discounted cash flow valuation methodology by discounting the estimated future net cash flows using an appropriate discount rate. The future net cash flows are estimated based on the contractual cash flows, taking into consideration of estimated future credit recoveries of the loans upon acquisition or repurchase. Changes in fair value of loans are reported net and recorded in “Change in fair value of loans” on the Consolidated Statements of Operations.

(l)

Guarantee derivatives

In order to determine the accounting treatment of the guarantee, the Group considered the criteria of scope exception under ASC 815‑10‑15‑58. In order to qualify for this scope exception, the financial guarantee contracts must meet all three of the following criteria: (a) provide for payments to be made solely to reimburse the guaranteed party for failure of the debtor to satisfy its required payment obligations either at prescriptive payment dates or accelerated payment dates as a result of the occurrence of an event of default or notice of acceleration being made to the debtor by the creditor; (b) payment be made only if the debtor’s obligation to make payments as a result of conditions as described in (a) is past due; and (c) the guaranteed party is, as a precondition in the contract for receiving payment of any claim under the guarantee, exposed to the risk of non‑payment both at inception and throughout its term either through direct legal ownership or through a back‑to‑back arrangement.

For the financial guarantee provided by the Group that does not meet the scope exception under ASC 815‑10‑15‑58, the Group accounts for the financial guarantee contracts with these Institutional Funding Partners as derivatives under ASC 815, Derivatives and Hedging, and records them on the Consolidated Balance Sheets as either assets or liabilities at fair value.

Derivative assets and liabilities within the scope of ASC 815 are required to be recorded at fair value at inception and remeasured at fair value on an ongoing basis in accordance with ASC 820, Fair Value Measurement. Therefore, the financial guarantee derivatives will be subsequently marked to market at the end of each reporting period with gains and losses recognized as change in fair value of financial guarantee derivatives. The estimated fair value of the financial guarantee derivatives is determined by the Group based on a discounted cash flow model, with reference to estimates of cumulative loss rates and margins on cost of guarantee services.

(m)

Revenue recognition

The Group considered relevant accounting guidance and concluded that arrangements for its on-balance sheet loans and guarantee services provided for its off-balance sheet loans are out of scope of ASC 606, Revenue from Contracts with Customers. Therefore, “Interest and financial services income and other revenues” and “Guarantee income” included in “Credit-oriented services income” on the Consolidated Statements of Operations should be accounted for in accordance with ASC 310, Receivables and ASC 460, Guarantees, respectively. Other revenue streams are accounted for in accordance with ASC 606.

Under ASC 606, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services, net of value-added tax. The Group identifies its contracts with customers and all performance obligations within those contracts. The Group then determines the transaction price and allocates the transaction price to the performance obligations within the Group’s contracts with customers, recognizing revenue when, or as, the Group satisfies its performance obligations. For considerations with original payment terms greater than 12 months, the Group determines a significant financing component exists in the arrangements. The discount rate, which reflects the credit risk of the customers, is used in adjusting the consideration at inception for revenue recognition. Interest income resulting from a significant financing component is recorded as “Interest and financial services income and other revenues” on the Group’s Consolidated Statements of Operations.

The Group’s revenue recognition policies under ASC 606 are as follows:

Online direct sales and services

Online direct sales

The Group engages in the online direct sales of electronic products, and to a lesser extent, home appliance products and general merchandise products with installment payment terms mainly through its retail website www.fenqile.com and its APP.

Online direct sales revenues are recognized at point-in-time when control of promised goods or services is transferred to the customers, which generally occurs upon the acceptance of the goods or services by the customers. For arrangements where the Group controls the goods or services before they are transferred to the customers as a principal, as it is primarily responsible for fulfilling the promise to provide the goods or services, is subject to inventory risk, and has discretion in establishing prices, revenues are recorded on a gross basis. Otherwise, revenues are recorded on a net basis. The goods or services are generally sold with a right of return, which is accounted for as variable consideration when determining the amount of revenue to recognize. Return allowances are estimated based on historical experiences and insignificant for all of the periods presented.

For these transactions, the Group generates financing receivables due from the Borrowers who place orders. The online direct sales revenues and related financing receivables are accounted for as sales of products or services to the Borrowers with extended payment terms and recorded at present value of the contractual cash flows when the Group’s performance obligations are satisfied.

The financing receivables initially generated from online direct sales may be subsequently funded with the proceeds from on- or off-balance sheet loans as discussed in Note 2(f).

Membership services

The Group offers membership packages to the subscribing members with access to benefits of sales of products and services on the Group’s Platform and APP that represent a single stand-ready obligation, in exchange for upfront premium membership fees. The receipt of premium membership fees is initially recorded as “Deferred service fees” included in “Accrued expenses and other current liabilities” and membership fees are recognized ratably over the terms of the membership packages as the Group’s performance obligation is satisfied over time.

Other services

The Group also operates an online marketplace that enable third‑party sellers to sell their products to customers with installment payment terms. The Group charges the third‑party sellers a fixed rate commission fee based on the sales amount for the services rendered. Revenues are recognized at point-in-time when the underlying transactions are completed, i.e., upon acceptance of the underlying goods or services by the Borrowers. In accordance with ASC 606-10-55-39, the Group recognizes the commission fees as revenues from the third‑party sellers on a net basis, as the Group is acting as an agent and does not have general inventory risk or does not have discretion to establish prices. For these transactions whereby the Group

pays to the third‑party sellers on behalf of the Borrowers, the Group generates financing receivables due from the Borrowers, which may be subsequently funded with the proceeds from on- or off-balance sheet loans as discussed in Note 2(f).

Credit-oriented services and platform-based services

Loan facilitation and servicing fees – overall

With respect to the off‑balance sheet loans, the Group does not record financing receivables arising from these loans nor funding debts to the funding partners. The Group earns loan facilitation and servicing fees and records them as “Loan facilitation and servicing fees-credit oriented,” “Loan facilitation and servicing fees-performance based” and “Loan facilitation and servicing fees-volume based” based on respective arrangements, as applicable.

Revenues from loan facilitation and matching and post-origination services

The Group provides intermediary services to the Borrowers and funding partners as the lenders. The intermediary services provided include (i) loan facilitation and matching services, (ii) post-origination services (i.e. account maintenance, collection, and payment processing), and (iii) a financial guarantee, if any. The Group has assessed all these services and concludes that loan facilitation and matching services and post-origination services are distinct and therefore are separate performance obligations. The financial guarantee, if any, is within the scope of ASC 815, Derivatives and Hedging or ASC 460, Guarantees, where applicable, and recorded at fair value at inception of the loans. The remaining consideration is allocated to each of the performance obligations based on relative standalone selling price of each of the services being provided to customers. The Group primarily uses the expected cost plus a margin approach to determine the relative standalone selling price as a result of the adoption of ASC 606.

The transaction price is the amount of consideration to which the Group expects to be entitled in exchange for transferring the promised services to its customers, net of value-added tax. The transaction price includes variable service fees which is estimated using the expected value method and is limited to the amount of variable consideration that is probable not to be reversed in future periods. The Group assesses whether the estimate of variable consideration is constrained.

Revenues from loan facilitation and matching services are recognized at point-in-time upon the successful matching of the borrowing requests from the Borrowers with the funding partners as the lenders. Revenues from post-origination services are recognized ratably over the terms of the underlying loans as this performance obligation is satisfied over time.

Revenues from Investment Program management services

The Group provides ongoing management services to the Individual Investors pursuant to the Investment Programs, including (i) initial matching of the investment funds from the Individual Investors and (ii) continuous re-matching of the monthly repayment from the Borrowers with any new borrowing requests to generate investment returns for the Individual Investors over the terms of the Investment Programs.

The customers (i.e. the Individual Investors) simultaneously receive and consume the benefits provided by the Group’s performance throughout the terms of the Investment Programs. The Group concludes that the ongoing management services is a distinct service being provided over the time in accordance with ASC 606, therefore the revenues from Investment Program management services are recognized over the terms of the Investment Programs, using a straight-line method. The Group considers the options to the Individual Investors to renew the contract term of Investment Programs to purchase additional future services with a lower service fee rate, if any, as a material right to customers therefore is a separate performance obligation. The transaction price allocated to such options are deferred to be recognized as revenues when the relevant future services are transferred or when the options expire. The remaining consideration is allocated to each of the performance obligations based on relative standalone selling price of each of the services being provided to customers. The Group determines the relative standalone selling price of such options primarily based on historical data of the discounts that the customers obtain from exercising such options.

Loan facilitation and servicing fees – credit oriented

For the off-balance sheet loans funded by the Individual Investors on Juzi Licai or certain Institutional Funding Partners, where the Group provides guarantee services, revenue earned from such loans is recorded as “Loan facilitation and servicing fees-credit oriented” under ASC 606 and “Guarantee income” under ASC 460 (Note 2(f)).

Loan facilitation and servicing fees – performance based

For the off-balance sheet loans funded by certain other Institutional Funding Partners, where the Group does not provide guarantee services and takes no credit risks of Borrowers in respect of principal and interests due to the lenders, the Group charges the service fees for loan facilitation and servicing at predetermined rates based on the performance of the underlying off-balance sheet loans, and records revenue earned from such loans as “Loan facilitation and servicing fees-performance based.”

Loan facilitation and servicing fees – volume based

For the off-balance sheet loans funded by certain other Institutional Funding Partners, where the Group does not provide guarantee services and takes no credit risks of Borrowers in respect of principal and interests due to the lenders, the Group charges the service fees at predetermined rates of amount of loan originations upon successful matching of borrowing requests, and records revenue earned from such loans as “Loan facilitation and servicing fees-volume based.”

Interest and financial services income and other revenues

The Group generates interest and financial services income and other revenues from its financing receivables.

Interest and financial services income is recognized over the terms of financing receivables using the effective interest method. Direct origination costs include costs directly attributable to originating financing receivables, including vendor costs and personnel costs directly related to the time spent by those individuals performing activities related to the origination of financing receivables. Considering the credit risk characteristics of the Borrowers as well as the relatively small amount of each individual financing receivable, the Group determined that direct origination costs incurred for originating individual financing receivables are insignificant and expensed as incurred and recorded in “Processing and servicing cost” on the Consolidated Statements of Operations. Interest and financial services income is not recorded when reasonable doubt exists as to the full, timely collection of interest or principal.

Other revenues include fees collected for prepayment and late payment for on‑balance sheet loans, which are calculated as certain percentages of interest over the prepaid principal loan amount in case of prepayment or certain percentages of past due amounts in case of late payment.

Customer incentives

In order to incentivize the individual customers to use the Platform and APP, the Group primarily provides two major types of incentive coupons: cash coupons that have a stated discount amount that reduces the selling price of a future purchase of product and repayment coupons that have a stated discount amount that reduce a future repayment on the installment purchase loans or personal installment loans. Both cash coupons and repayment coupons are given for free at the Group’s discretion, which are not linked to any transactions or previous transactions from the Platform and APP when they are given. In accordance with ASC 606-10-32-27, cash coupons and repayment coupons are accounted for as a reduction of revenue of the Group upon the future purchase or application by the customers. The amount of cash coupons and repayment coupons recognized as a reduction of revenue was RMB281.0 million, RMB196.3 million and RMB200.7 million for the years ended December 31, 2019, 2020 and 2021, respectively.

The Group offers a referral code incentive in cash to existing Borrowers for promoting its Platform and APP. Referral code incentives are granted to existing Borrowers for each new Borrower who successfully signs up on the Platform and APP using the existing Borrowers’ referral codes and has been granted a credit line. Referral code incentives, amounting to RMB19.7 million, RMB17.1 million and RMB27.3 million, were recorded as sales and marketing expenses on the Consolidated Statements of Operations for the years ended December 31, 2019, 2020 and 2021, respectively.

Contract balances

The Group classifies its right to consideration in exchange for products or services transferred to a customer as either a receivable or a contract asset. A receivable is a right to consideration that is unconditional as compared to a contract asset which is a right to consideration that is conditional upon factors other than the passage of time. Generally, the amount of revenue recognized from loan facilitation and matching services and Investment Program management services exceeds the amount billed to customers following the predetermined payment schedules at inception of the loans. The Group does not have an unconditional right to such exceeding amount. Service fees receivable represent the considerations for which the Group has satisfied its performance obligations and has the unconditional right to consideration. At each reporting date, the Group assesses whether there is any indicator of impairment to the contract assets and service fees receivable. An impairment loss, if any, is recorded as “Provision for credit losses of contract assets and receivables” on the Consolidated Statements of Operations.

Contract liabilities relate to unsatisfied performance obligations at the end of each reporting period and consist of cash payment received in advance from customers in membership services and post-origination services, which is recorded as “Deferred service fees” included in “Accrued expenses and other current liabilities” on the Consolidated Balance Sheets. The amount of revenue recognized that was included in the contract liabilities balance at the beginning of the years were RMB47.9 million and RMB52.0 million for the years ended December 31, 2020 and 2021, respectively.

Remaining performance obligations

The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be recognized as of the end of the reporting period and an explanation as to when the Group expects to recognize these amounts in revenue. Additionally, as a practical expedient, the Group does not include contracts that have an original duration of one year or less.

As of December 31, 2020 and 2021, the aggregate amount of the transaction price allocated to remaining performance obligations related to customer contracts that are unsatisfied or partially unsatisfied was RMB1,101.3 million and RMB903.2 million, respectively. Given the profile of contract terms, substantially all of the remaining performance obligation is expected to be recognized as revenue over the next three years.

Practical expedients

The Group has used the following practical expedients as allowed under ASC 606:

The remaining performance obligation has not been disclosed when the performance obligation is part of a contract that has an original duration of one year or less.

The Group expenses sales commissions as incurred when the amortization period is one year or less. Sales commission expenses are recorded within “Sales and marketing expenses” on the Consolidated Statements of Operations.

Disaggregation of revenues within the scope of ASC 606

The following table presents the Group’s operating revenue within the scope of ASC 606 disaggregated by revenue sources:


	For the Year Ended December 31,
	2019		2020		2021
	(RMB in thousands)
Online direct sales and services income:
Online direct sales		3,623,991		1,900,835		1,661,156
Membership services		112,558		113,107		107,901
Other services		92,292		68,890		86,304
Total		3,828,841		2,082,832		1,855,361


	2019		2020		2021
	(RMB in thousands)
Credit-oriented services income
Loan facilitation and matching service fees-credit oriented		3,868,044		2,628,941		3,120,892
Post-origination service fees-credit oriented		643,399		1,087,567		1,327,452
Investment Program management service fees-credit oriented		300,425		70,488		—
Total		4,811,868		3,786,996		4,448,344


-	2019		2020		2021
	(RMB in thousands)
Platform-based services income:
Loan facilitation and matching service fees-performance based		556,143		1,656,998		1,727,794
Post-origination service fees-performance based		92,373		273,837		561,658
Loan facilitation and servicing fees-volume based		167,458		106,007		279,902
Total		815,974		2,036,842		2,569,354

The following table presents the Group’s operating revenue within the scope of ASC 606 disaggregated by timing of revenue recognition:


	For the Year Ended December 31,
	2019		2020		2021
	(RMB in thousands)
Revenues recognized at point-in-time		8,307,928		6,361,671		6,876,048
Revenues recognized over time		1,148,755		1,544,999		1,997,011
Total		9,456,683		7,906,670		8,873,059

(n)

Cash and cash equivalents

Cash and cash equivalents represent cash on hand, demand deposits placed with banks or other financial institutions, which are unrestricted to withdrawal or use. As of December 31, 2020 and 2021, the Group did not have any cash equivalents.

(o)

Restricted cash

Restricted cash mainly represents: (i) cash received from the Borrowers but not yet been repaid to the funding partners or received from the funding partners but not yet been distributed to the Borrowers which is not available to fund the general liquidity needs of the Group; and (ii) security deposits set aside for partnering commercial banks or certain Institutional Funding Partners in case of Borrowers’ defaults.

(p)

Restricted time deposits

Restricted time deposits include (i) time deposits securing the Group’s borrowings from financial institutions, and (ii) time deposits placed with and set aside for partnering commercial banks as Institutional Funding Partners in case of Borrowers' defaults.

(q)

Inventories, net

Inventories, consisting of products available for sale, are stated at the lower of cost or net realizable value. Cost of inventory is determined using the moving average cost method for the years ended December 31, 2020 and 2021. Prior to 2019, cost of inventory was determined using the First-in-first-out cost method. Such change did not have a material impact on the opening balance of retained earnings as of January 1, 2019 and the financial position and results of operations as of and for the year ended December 31, 2019. The accounting change was not applied retrospectively as the cumulative effect was not material to current operations or to the trend of the reported results of operations in accordance with ASC 250-10-S99-3. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of disposal and transportation. Adjustments are recorded to write down the cost of inventory to the net realizable value due to slow-moving merchandise and damaged goods, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. The Group takes ownership, risks and rewards of the products purchased. Write-downs are recorded in cost of revenues in the Consolidated Statements of Operations. As of December 31, 2020 and 2021, all inventory balances were products available for sale.

The Group also provides fulfillment-related services in connection with the Group’s online marketplace. Third-party sellers maintain ownership of their inventories and therefore these products are not included in the Group’s inventories.

(r)

Long-term investments

The Group’s long-term investments consist of equity investments in privately held companies accounted for using the measurement alternative, equity investments accounted for using the equity method and a debt investment in forms of a loan for which the Group has the intent and ability to hold to maturity or payoff.

Equity investments accounted for using the measurement alternative

The Group adopted ASU 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities effective January 1, 2018 and measures long-term equity investments, other than equity method investments, at fair value through earnings. For those investments over which the Group does not have significant influence and without readily determinable fair value, the Group elected to record these investments at cost, less impairment, and plus or minus subsequent adjustments for observable price changes. Under this measurement alternative, changes in the carrying value of the equity investments are required to be made whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. The Group makes reasonable efforts to identify price changes that are known or that can reasonably be known. The Group also makes a qualitative assessment of whether these investments are impaired at each reporting date. If a qualitative assessment indicates that the investment is impaired, the Group has to estimate the investment’s fair value in accordance with the principles of ASC 820. If the fair value is less than the investment’s carrying value, the Group has to recognize an impairment loss equal to the difference between the carrying value and fair value on its Consolidated Statements of Operations.

Equity investments accounted for using the equity method

The Group applies the equity method of accounting to account for its equity investments, according to ASC 323 Investment-Equity Method and Joint Ventures, over which it has significant influence but does not own a majority equity interest or otherwise control. Under the equity method, the Group initially records the investments at cost and the difference between the cost of the equity investee and the fair value of the underlying equity in the net assets of the equity investee is recognized as equity method goodwill, which is included in the equity method investments on the Consolidated Balance Sheets. The Group subsequently adjusts the carrying amount of the investments to recognize its proportionate share of each equity investee's net income or loss into earnings and cash distributions from investees, if any, after the date of investment. The Group evaluates the equity method investments for impairment under ASC 323. An impairment loss on the equity method investment is recognized in earnings when the decline in value is determined to be other-than-temporary.

Debt investment

The loan held for long-term investment is carried at outstanding principal adjusted for any write-offs, and allowance for loan losses, any deferred fees or cost, and any unamortized premiums or discounts on the Consolidated Balance Sheets. The Group records the interest income associated with the debt investment using effective interest rate method on the Consolidated Statements of Operations. The allowance for credit losses was recognized that reflects the Group’s best estimate of the amounts that will not be collected.

(s)

Property, equipment and software, net

Property, equipment and software, net are stated at cost less accumulated depreciation, amortization and impairment, if any. Depreciation and amortization is computed using the straight‑line method over the estimated useful lives of the assets. The estimated useful lives are as follows:


Category	Estimated Useful Lives
Computers and equipment	3 years
Furniture and fixtures	4 ‑ 5 years
Leasehold improvement	Over the shorter of the expected life of leasehold improvement or the lease term
Software	3 ‑ 10 years

(t)

Land use rights, net

Land use rights represent the land use rights obtained for the purpose of constructing offices, which was amortized on a straight-line basis over the term of the land use right period, approximately 30 years.

(u)

Impairment of long‑lived assets

Long‑lived assets are evaluated for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be fully recoverable or that the useful life is shorter than the Group had originally estimated. When these events occur, the Group evaluates the impairment for the long‑lived assets by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Group recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets.

(v)

Fair value measurements

Financial instruments

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

Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Accounting guidance establishes three levels of inputs that may be used to measure fair value:

•

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 asset 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 asset 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.

Fair value measurements on a recurring basis

The carrying amount of cash and cash equivalents, restricted cash, amounts due from related parties, accounts payable, and amounts due to related parties approximates fair value because of their short‑term nature. Financing receivables are measured at amortized cost. Funding debts and accrued interest payable are carried at amortized cost. The carrying amount of the financing receivables, funding debts, accrued interest receivable, and accrued interest payable approximates their respective fair value as the interest rates applied reflect the current quoted market yield for comparable financial instruments.

For the off‑balance sheet loans funded by certain Institutional Funding Partners, the Group accounts for financial guarantee provided at fair value. The Group uses significant unobservable inputs to measure the fair value of these guarantee liabilities. The Group considers unobservable inputs to be significant, if, by their exclusion, the estimated fair value of a Level 3 asset or liability would be impacted by a significant percentage change, or based on qualitative factors such as the nature of the instrument and significance of the unobservable inputs relative to other inputs used within the valuation.

The Group elected the fair value option for the loans acquired or purchased from the relevant funding partners starting from the second quarter of 2020. The Group uses significant unobservable inputs to measure the fair value of these loans (Level 3).

Fair value measurements on a non-recurring basis

The Group measures certain financial assets at fair value on a non-recurring basis only if an impairment charge were to be recognized. The Group’s long-term equity investments are measured at fair value on a nonrecurring basis under measurement alternative, if an impairment loss is charged or fair value adjustment is made for an observable price change in an orderly transaction for identical or similar investments of the same issuer. The Group’s non‑financial assets, such as property, equipment and software, would be measured at fair value only if they were determined to be impaired.

(w)

Cost of sales

Cost of sales consists of purchase price of the products, shipping charges and handling costs, as well as write‑downs of inventory. Shipping charges to receive products from suppliers are included in the inventories, and recognized as cost of sales upon sale of the products to customers. For each of the periods presented, write‑downs of inventory were insignificant.

(x)

Funding cost

Funding cost consists of interest expense the Group pays to funding partners, including certain Institutional Funding Partners and third-party investors of the consolidated Trusts and the asset backed securitized debts, to fund its on-balance sheet loans, certain fees and amortization of deferred debt issuance costs incurred in connection with obtaining these debts, such as origination fees and legal fees.

(y)

Processing and servicing cost

Processing and servicing cost consists primarily of vendor costs related to credit assessment, customer and system support, payment processing services and collection services associated with originating, facilitating and servicing the loans.

(z)

Sales and marketing expenses

Sales and marketing expenses consist primarily of advertising costs and payroll and related expenses for personnel engaged in marketing and business development activities. Advertising costs, which consist primarily costs of online advertising and offline outdoor promotion activities, are expensed as incurred and are included within sales and marketing expenses on the Consolidated Statements of Operations. For the years ended December 31, 2019, 2020 and 2021, advertising costs totaled RMB1.0 billion, RMB791.2 million and RMB1.0 billion, respectively.

(aa)

Research and development expenses

Research and development expenses consist primarily of payroll and related expenses for IT professionals involved in developing technology platform and website, server and other equipment depreciation, bandwidth and data center costs. All research and development costs have been expensed as incurred as the costs qualifying for capitalization have been insignificant.

(bb)

General and administrative expenses

General and administrative expenses consist of payroll and related expenses for employees involved in general corporate functions, including finance, legal and human resources; costs associated with use of facilities and equipment, such as depreciation expenses, rental and other general corporate related expenses.

(cc)

Leases

On January 1, 2019, the Group adopted ASU No. 2016-02, Leases (Topic 842), as amended, which supersedes the lease accounting guidance under Topic 840, and generally requires lessees to recognize operating and financing lease liabilities and corresponding right-of-use assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements.

The Group elected to apply practical expedients permitted under the transition method that allow the Group to use the beginning of the period of adoption as the date of initial application, to not recognize lease assets and lease liabilities for leases with a term of twelve months or less, to not separate non-lease components from lease components, and to not reassess lease classification, treatment of initial direct costs, or whether an existing or expired contract contains a lease. The Group did not retrospectively adjust the prior comparative periods. Under the new lease standard, the Group determines if an arrangement is or contains a lease at inception. Right-of-use assets and liabilities are recognized at lease commencement date based on the present value of remaining lease payments over the lease terms. The Group considers only payments that are fixed and determinable at the time of lease commencement.

As a result of the adoption, the Group recognized approximately RMB 113.2 million of right-of-use assets recorded in “Other assets”, and corresponding short-term leasing liabilities recorded in “Accrued expenses and other current liabilities” and long-term leasing liabilities recorded in “Other long-term liabilities” respectively on the Consolidated Balance Sheet as of January 1, 2019. The adoption had no impact on the Group’s Consolidated Statements of Operations for the year ended December 31, 2019 or the opening balances of retained earnings as of January 1, 2019.

The Group leases certain office premises under non‑cancelable leases, which expire at various dates through August 2026. As of December 31, 2021, the Group’s operating leases had a weighted average remaining lease term of 4.3 years and a weighted average discount rate of 4.91%.

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


	For the Year ended December 31, 2021
	RMB in thousands
2022		55,088
2023		45,155
2024		41,129
2025 and thereafter		71,585
Total future lease payments		212,957
Impact of discounting remaining lease payments		(21,924	)
Total lease liabilities		191,033
- Short-term portion		53,644
- Long-term portion		137,389

Rental expenses under operating leases for the year ended December 31, 2019 were RMB54.9 million. Operating lease cost for the years ended December 31, 2020 and 2021 was RMB57.9 million and RMB59.7 million, respectively, which excluded cost of leasing contracts with original terms less than 12 months. Short-term lease cost for the years ended December 31, 2020 and 2021 was RMB3.9 million and RMB6.4 million, respectively. Supplemental cash flow information related to operating leases was as follows:


	For the Year ended December 31, 2021
	RMB in thousands
Cash payments for operating leases		60,620
Right-of-use assets obtained in exchange for operating lease liabilities		172,603

(dd)

Share‑based compensation

Share-based awards granted to the Group’s employees and non-employees, directors and non-employee directors, such as stock options and restricted share units, are measured at the grant date based on the fair value of the awards in accordance with ASC 718, Compensation-Stock Compensation. Share-based compensation, net of estimated forfeitures, is recognized as expenses on a straight-line basis over the requisite service period, which is the vesting period.

The modification of the terms or conditions of the existing shared-based award is treated as an exchange of the original award for a new award. The incremental compensation expenses are equal to the excess of the fair value of the modified award immediately after the modification over the fair value of the original award immediately before the modification. For stock options already vested as of the modification date, the Group immediately recognized the incremental value as compensation expenses. For stock options still unvested as of the modification date, the incremental compensation expenses are recognized over the remaining service period of these stock options.

Prior to the adoption of ASU No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting on January 1, 2019, share-based awards granted to non-employees are accounted for in accordance with ASC 505-50, Equity-Based Payments to Non-Employee. All transactions in which services are received in exchange for share-based awards are accounted for based on the fair value of the consideration received or the fair value of the awards issued, whichever is more reliably measurable. Share-based compensation is measured at fair value at the earlier of the commitment date or the date the services are completed. The Group remeasures the awards using the then-current fair value at each reporting date until the measurement date, generally when the services are completed and awards are vested, and attributes the changes in those fair values over the service period by straight-line method. Under ASU No. 2018-07, the accounting for awards to non-employees are similar to the model for employee awards.

Stock options and restricted share units granted generally vest over four years.

Prior to completion of the IPO, the exercise price of each granted stock option was US$0.0001, the Company used intrinsic value (approximately the fair value of each of the Company’s ordinary share) on the grant date to estimate the fair value of the stock options granted. After the IPO, the exercise price of each granted stock option is determined by the closing price of the Company’s ordinary share on the grant date. Therefore, the Company utilizes the binomial option pricing model to estimate the fair value of stock options granted after the IPO. The fair value of each granted restricted share unit is determined by the closing price of the Company’s ordinary share on the grant date.

Forfeitures are estimated at the time of grant and revised in subsequent periods if actual forfeitures differ from those estimates. The Group uses historical data to estimate forfeitures of share-based awards and records share-based compensation expenses only for those awards that are expected to vest.

(ee)

Taxation

Income tax

Current income tax is provided for in accordance with the laws of the relevant tax jurisdictions.

Deferred income tax is 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 consolidated 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 Group considers all positive and negative evidence, including future reversals of projected future taxable income and results of recent operation. The Group records a valuation allowance to reduce the amount of deferred tax assets if based on the weight of available evidence, it is more‑likely‑than‑not that some portion, or all, of the deferred tax assets will not be realized.

Uncertain tax positions

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% likelihood of being realized upon settlement. The Group classifies interest and penalties related to income tax matters, if any, in income tax expense.

(ff)

Net income per share

Basic net income per share is computed by dividing net income attributable to ordinary shareholders. Net income per ordinary share are computed on Class A Ordinary Shares and Class B Ordinary Shares together, because both classes have the same dividend rights in the Company’s undistributed net income.

Diluted net income per share is calculated by dividing net income attributable to ordinary shareholders by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Ordinary equivalent shares consist of ordinary shares issuable upon the conversion of convertible notes using the if-converted method, and ordinary shares issuable upon the exercise of outstanding stock options and vesting of restricted share units, using the treasury stock method. Ordinary equivalent shares are not included in the denominator of the diluted income per share calculation when inclusion of such shares would be anti-dilutive.

(gg)

Segment reporting

The Group engages primarily in online direct sales services and online consumer finance services for its customers in the PRC. The Group does not distinguish between markets or segments for the purpose of internal reports. The Group does not distinguish revenues, costs and expenses between segments in its internal reporting, and reports costs and expenses by nature as a whole. The Group’s chief operating decision maker, who has been identified as the Chief Executive Officer, reviews the consolidated results when making decisions about allocating resources and assessing performance of the Group as a whole and hence, the Group has only one reportable segment. As most of the Group’s long‑lived assets are all located in the PRC and all the Group’s revenues are derived from the PRC, no geographical segments are presented.

(hh)

Statutory reserves

The Company’s subsidiaries, the VIEs and the VIEs’ subsidiaries established in the PRC are required to make appropriations to certain non‑distributable reserve funds.

In accordance with the laws applicable to the Foreign Investment Enterprises (“FIEs”) established in the PRC, the Group’s subsidiaries registered as wholly foreign‑owned enterprises (“WFOEs”) have to make appropriations from its annual after‑tax profits as determined under Generally Accepted Accounting Principles in the PRC (“PRC GAAP”) to reserve funds including general reserve fund, enterprise expansion fund and staff bonus and welfare fund. The appropriation to the general reserve fund must be at least 10% of the annual after‑tax profits calculated in accordance with PRC GAAP. Appropriation is not required if the general reserve fund has reached 50% of the registered capital of the company. Appropriations to the enterprise expansion fund and staff bonus and welfare fund are made at the respective company’s discretion.

In addition, in accordance with the PRC Company Laws, the consolidated VIEs and the VIEs’ subsidiaries, registered as Chinese domestic companies, must make appropriations from their annual after‑tax profits as determined under PRC GAAP to non‑distributable reserve funds including statutory surplus fund and discretionary surplus fund. The appropriation to the statutory surplus fund must be 10% of the annual after‑tax profits as determined under PRC GAAP. Appropriation is not required if the statutory surplus fund has reached 50% of the registered capital of the company. Appropriation to the discretionary surplus fund is made at the respective company’s discretion.

The use of the general reserve fund, enterprise expansion fund, statutory surplus fund and discretionary surplus fund are restricted to offsetting of losses or increasing of the registered capital of the respective company. The staff bonus and welfare fund is a liability in nature and is restricted to fund payments of special bonus to employees and for the collective welfare of all employees. None of these reserves are allowed to be transferred to the company in terms of cash dividends, loans or advances, nor can they be distributed except under liquidation.

For the years ended December 31, 2019, 2020 and 2021, profit appropriation to general reserve fund and statutory surplus fund for the Group’s entities incorporated in the PRC was approximately RMB152.1 million, RMB296.9 million and RMB252.1 million respectively.

(ii)

Significant risks and uncertainties

Foreign currency risk

The PRC government imposes controls on the convertibility of RMB into foreign currencies. The Group’s cash and cash equivalents, restricted cash and restricted time deposits denominated in RMB that are subject to such government controls amounted to RMB 4,276.9 million and RMB 5,119.0 million as of December 31, 2020 and December 31, 2021, respectively. The value of RMB is subject to changes in the central government policies and to international economic and political developments affecting supply and demand in the PRC foreign exchange trading system market. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the PBOC. Remittances in currencies other than RMB by the Group in the PRC must be processed through PBOC or other Chinese foreign exchange regulatory bodies which require certain supporting documentation in order to process the remittance.

Operation and compliance risk

In August 2017, the State Council promulgated the Regulations on the Supervision and Administration of Financing Guarantee Companies, or the Financing Guarantee Regulations, effective October 1, 2017. In October 2019, the Chinese Banking and Insurance Regulatory Commission, or CBIRC, and other eight PRC regulatory agencies promulgated the Supplementary Provisions on the Supervision and Administration of Financing Guarantee Companies, or the Financing Guarantee Supplementary Provisions. The Financing Guarantee Supplementary Provisions provides that, among others, institutions providing services such as client recommendation and credit assessment to various institutional funding partners shall not render any financing guarantee service, whether directly or in disguised form, without the necessary approval. Otherwise, the penalties set forth in the Financing Guarantee Regulations may be imposed by the regulatory authorities, and the Group’s existing business shall be properly settled.

Due to a lack of further interpretations, the exact definition and scope of “operating financing guarantee business” under the Financing Guarantee Regulations or “providing financing guarantee services in disguised form” under the Financing Guarantee Supplementary Provisions are still unclear. The Group provided various investor protection measures to Institutional Funding Partners through different kinds of arrangements, including direct deposits, and back-to-back guarantees to the insurance companies and guarantee companies. It is uncertain whether these or certain of these arrangements would be deemed to have operated financing guarantee business or provided financing guarantee services in disguised form. If such arrangements were deemed to be in violation of any applicable laws and regulations, the Group could be subject to penalties and/or be required to change its current business model, and as a result, the Group’s business, financial condition, and results of operations could be materially and adversely affected.

In an effort to ensure compliance with applicable laws and regulations, the Group has currently conducted part of the investor protection measures through its own financial guarantee companies, which are qualified to provide financing guarantee services. The Group is continuously making efforts to adjust its business model and practice to mitigate the relevant compliance risk, including increasing the proportion of investor protection measures through its own financial guarantee companies.

Concentration of credit risk

Credit risk is one of the most significant risks for the Group’s installment purchase loans and personal installment loans businesses. The Group records provision for credit losses based on its estimated probable losses against its financing receivables. Apart from the financing receivables, financial instruments that potentially expose the Group to significant concentration of credit risk primarily included in the financial statement line items of cash and cash equivalents, restricted cash, restricted time deposits, accrued interest receivable, prepaid expenses and other current assets, guarantee receivables, service fees receivable and contract assets, and deposits to insurance companies and guarantee companies. The Group holds its cash and cash equivalents, restricted cash and restricted time deposits at reputable financial institutions in the PRC and at international financial institutions with high ratings from internationally recognized rating agencies. As of December 31, 2021, approximately 97% of the Group’s cash and cash equivalents, restricted cash and restricted time deposits were held in the financial institutions in the PRC and the remaining cash and cash equivalents, restricted cash and restricted time deposits were held in financial institutions outside the PRC. Financing receivables, accrued interest receivable, service fees receivable and contract assets are typically unsecured and are derived from revenues earned from customers in the PRC. The risk with respect to these receivables and contract assets are mitigated by credit evaluations the Group performs on its Borrowers and the Group’s ongoing monitoring process of outstanding balances.

Concentration of customers, suppliers, and funding partners

There was no revenue from customers which individually represented greater than 10% of the total operating revenue for any of the periods presented. There were no financing receivables, contract assets and service fees receivable and guarantee receivables due from customers of the Group that individually accounted for greater than 10% of the Group’s carrying amount of financing receivables, contract assets and service fees receivable and guarantee receivables as of December 31, 2020 and 2021, respectively.

There were two, three and two inventory suppliers accounted for more than 10% of the Group’s total purchases for the years ended December 31, 2019, 2020 and 2021, respectively. Four and three suppliers accounted for more than 10% of the Group’s accounts payable as of December 31, 2020 and 2021, respectively, as follows:


	As of December 31,
	2020			2021
Inventory supplier A		16.9	%		16.6	%
Inventory supplier B		16.8	%	*
Inventory supplier C		10.7	%		—
Inventory supplier D		24.4	%		16.6	%
Inventory supplier E		—			11.9	%

* Less than 10%.

There was no funding partner, including Individual Investor or Institutional Funding Partner, that accounted for more than 10% of the Group’s total funding cost for the years ended December 31, 2019. There was one and two Institutional Funding Partners that accounted for more than 10% of the Group’s total funding cost for the year ended December 31, 2020 and 2021. Institutional Funding Partners accounted for more than 10% of the Group’s funding debts as of December 31, 2020 and 2021 respectively as follows:


	As of December 31,
	2020			2021
Institutional Funding Partner A		21.4	%		16.3	%
Institutional Funding Partner B	*				23.0	%

There was one, two and one Institutional Funding Partner that accounted for more than 10% of the Group’s origination of off-balance sheet loans for the year ended December 31, 2019, 2020 and 2021.

As of December 31, 2020, one insurance company and three guarantee companies accounted for more than 10% of the Group’s deposits to insurance companies and guarantee companies. As of December 31, 2021, two guarantee companies accounted for more than 10% of the Group’s deposits to insurance companies and guarantee companies.


	As of December 31,
	2020			2021
Guarantee Company A		13.6	%		16.8	%
Guarantee Company B		19.6	%		16.4	%
Insurance Company C		18.8	%	*
Guarantee Company D		12.6	%	*

* Less than 10%.

Impact of COVID-19

The COVID-19 pandemic has adversely impacted overall economic conditions in China. The business and operations of the Group in early 2020 were adversely affected, including but not limited to negative impact to the growth of loan originations and operating revenues, and additional credit losses for receivables and financial guarantees caused by increased credit risk. The pandemic also resulted in the impairment to the Group’s long-term investments due to the lower-than-expected financial performance. Starting from the fourth quarter of 2020, a few waves of COVID-19 infections emerged in various regions of China in late 2021 and early 2022, the extent of the business disruption and the related financial impact will depend on future developments of the COVID-19 pandemic, which are highly uncertain and difficult to predict.

The Group has assessed various accounting estimates and other matters, including credit losses for financial assets, long-term investments, share-based compensation, valuation allowances for deferred tax assets and revenue recognition. Based on current assessment of these estimates, although the COVID-19 outbreak adversely affected the Group’s business in early 2020, the Group concluded that there would be no material impact on the Group’s long-term forecast as of December 31, 2021. While the adverse impact from COVID-19 is currently expected to be temporary, there is uncertainty around the duration of these disruptions and the possibility of other adverse effects on the Group’s business, and the Group will continue to monitor for potential credit risk as the impact of the COVID-19 pandemic evolves.

(jj)

Recent accounting pronouncements

In January 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-01, Investments — Equity Securities (Topic 321), Investments — Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) — Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 (a consensus of the FASB Emerging Issues Task Force) which clarifies the interactions of the accounting for certain equity securities under ASC 321, investments accounted for under the equity method of accounting in ASC 323, and the accounting for certain forward contracts and purchased options accounted for under ASC 815. ASU No. 2020-01 could change how an entity accounts for (i) an equity security under the measurement alternative and (ii) a forward contract or purchased option to purchase securities that, upon settlement of the forward contract or exercise of the purchased option, would be accounted for under the equity method of accounting or the fair value option in accordance with ASC 825, Financial Instruments. These amendments improve current U.S. GAAP by reducing diversity in practice and increasing comparability of the accounting for these interactions. The new guidance is effective prospectively for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption was permitted. The adoption of this standard did not have a material impact on our consolidated financial statements.

Other accounting standards that we adopted beginning January 1, 2021 did not have a significant impact on our consolidated financial statements.

In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40)—Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. The ASU simplifies accounting for convertible instruments by removing major separation models required under current GAAP. Consequently, more convertible debt instruments will be reported as a single liability instrument with no separate accounting for embedded conversion features. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for the exception. The ASU also simplifies the diluted net income per share calculation in certain areas. The new guidance is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption was permitted, but no earlier than fiscal year beginning after December 15, 2020, including interim periods within that fiscal year. The Group is currently evaluating this standard but do not expect that it will have a material impact on our consolidated financial statements.

In May 2021, the FASB issued ASU No. 2021-04, Earnings Per Share (Topic 260), Debt — Modifications and Extinguishments (Subtopic 470-50), Compensation — Stock Compensation (Topic 718), and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) to clarify and reduce diversity in an issuer’s accounting for modifications or exchanges of freestanding equity classified written call options (for example, warrants) that remain equity classified after modification or exchange. The amendments in this update are effective for all entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. An entity should apply the amendments prospectively to modifications or exchanges occurring on or after the effective date of the amendments. The Group is currently evaluating this standard but do not expect that it will have a material impact on our consolidated financial statements.

In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (ASU 2021-08), which clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. The new amendments are effective for us are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The amendments should be applied prospectively to business combinations occurring on or after the effective date of the amendments, with early adoption permitted. The Group is currently evaluating this standard but do not expect that it will have a material impact on our consolidated financial statements.

In March, 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures, which eliminates the accounting guidance for TDRs in ASC 310-40, Receivables - Troubled Debt Restructurings by Creditors. ASU 2022-02 also requires an issuer to disclose current-period gross writeoffs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost. The amendments in ASU 2022-02 are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. The amendments should be applied prospectively, with one possible exception. The Group is currently evaluating the impact of the new guidance on its consolidated financial statements.

Financing Receivables, Net

12 Months Ended

Dec. 31, 2021

Financing Receivable, after Allowance for Credit Loss [Abstract]

Financing Receivables, Net

3. FINANCING RECEIVABLES, NET

Financing receivables, net as of December 31, 2020 and 2021 consisted of the followings:


	As of December 31,
	2020			2021
	(RMB in thousands)
Short-term:
Installment purchase loans		457,407			300,999
Personal installment loans		4,969,154			3,779,317
Total short-term financing receivables		5,426,561			4,080,316
Allowance for credit losses		(508,013	)		(307,341	)


Total short-term financing receivables, net	4,918,548		3,772,975
Long-term:
Installment purchase loans	127,265		93,754
Personal installment loans	98,645		166,896
Total long-term financing receivables	225,910		260,650
Allowance for credit losses	(21,149	)	(19,523	)
Total long-term financing receivables, net	204,761		241,127

These balances represent short‑term and long‑term financing receivables generated from installment purchase loans and personal installment loans transacted on the Group’s Platform and APP with an original term generally up to three years and do not have collateral. The weighted average interest rates of these financing receivables were 24.9% and 22.2% as of December 31, 2020 and 2021, respectively.

As of December 31, 2020, installment purchase loans and personal installment loans that were charged-off in accordance with the Group’s standard charge-off policy were RMB186.9 million and RMB2,802.9 million, respectively. As of December 31, 2021, installment purchase loans and personal installment loans that were charged-off in accordance with the Group’s standard charge-off policy were RMB201.4 million and RMB3,392.1 million, respectively. The Group determined it was probable that the Group will be unable to collect the unpaid principal amounts on those loans.

The following table summarizes the balances of financing receivables by due date as of December 31, 2020 and 2021:


	As of December 31,
	2020		2021
	(RMB in thousands)
Due in months
0 - 12		5,426,561		4,080,316
13 - 24		182,107		229,900
25 - 36		23,388		22,615
Thereafter		20,415		8,135
Total financing receivables		5,652,471		4,340,966

The activities in the allowance for credit losses of financing receivables for the years ended December 31, 2019, 2020 and 2021, respectively, consisted of the following:


	For the year ended December 31,
	2019			2020			2021
	(RMB in thousands)
Beginning balances		(384,036	)		(373,545	)		(529,162	)
Cumulative effect due to the adoption of ASC 326 (Note 2(g))		—			(229,661	)		—
Provision for credit losses		(708,684	)		(779,235	)		(401,417	)
Charge-offs		815,421			1,078,705			913,940
Recoveries from prior charge-offs		(96,246	)		(225,426	)		(310,225	)
Ending balances		(373,545	)		(529,162	)		(326,864	)

Aging analysis of past due financing receivables as of December 31, 2020 and 2021 are as follows:


RMB in thousands	1 - 29 Days Past Due		30 - 59 Days Past Due		60 - 89 Days Past Due		90 - 179 Days Past Due		180 Days or Greater Past Due		Total Past Due		Current		Total
Installment purchase loans		7,086		4,508		3,839		11,884		—		27,317		557,355		584,672
Personal installment loans		152,523		74,396		54,217		165,982		—		447,118		4,620,681		5,067,799
December 31, 2020		159,609		78,904		58,056		177,866		—		474,435		5,178,036		5,652,471
Installment purchase loans		6,965		3,763		2,698		5,784		-		19,210		375,543		394,753
Personal installment loans		132,538		35,583		26,405		70,910		-		265,436		3,680,777		3,946,213
December 31, 2021		139,503		39,346		29,103		76,694		-		284,646		4,056,320		4,340,966

Financing receivables amounting to RMB177.9 million and RMB76.7 million as of December 31, 2020 and 2021, respectively, were in non‑accrual status. Interest and financial services income for non‑accrual financing receivables is recognized on a cash basis. Cash receipt of non‑accrual financing receivables would be first applied to any unpaid principal, late payment fees, if any, before recognizing interest and financial services income. For the years ended December 31, 2019, 2020 and 2021, interest and late payment fees earned from non‑accrual financing receivables were RMB53.9 million, RMB78.8 million and RMB135.6 million, respectively.

As of December 31, 2020 and 2021, financing receivables amounting to RMB325.7 million and RMB1,193.0 million have been pledged as collaterals pursuant to investment agreements with certain Institutional Funding Partners (Note 10).

Credit Quality Indicators

The following table provides information on delinquency, which is the primary credit quality indicator for financing receivables. The amortized cost of installment purchase loans and personal installment loans within each credit quality indicator was presented by year of origination for five origination years and beyond, as of December 31, 2021:


	Loans originated in
RMB in thousands	1 - 29 Days Past Due		30 - 59 Days Past Due		60 - 89 Days Past Due		90 - 179 Days Past Due		180 Days or Greater Past Due		Total Past Due		Current		Total
Installment purchase loans
2017 and before		—		—		—		—		—		—		—		—
2018		2		5		5		33		—		45		1		46
2019		412		210		182		616		—		1,420		19,735		21,155
2020		1,519		855		816		2,445		—		5,635		72,540		78,175
2021		5,032		2,693		1,695		2,690		—		12,110		283,267		295,377
Total Installment purchase loans		6,965		3,763		2,698		5,784		—		19,210		375,543		394,753
Personal installment loans
2017 and before		—		—		—		—		—		—		—		—
2018		2		4		7		43		—		56		9		65
2019		757		365		295		1,177		—		2,594		23,504		26,098
2020		1,275		922		1,182		6,217		—		9,596		26,182		35,778
2021		130,504		34,292		24,921		63,473		—		253,190		3,631,082		3,884,272
Total Personal installment loans		132,538		35,583		26,405		70,910		—		265,436		3,680,777		3,946,213

Contract Assets and Service Fees Receivable, Net and Guarantee Receivables, Net

12 Months Ended

Dec. 31, 2021

Accounts Receivable, after Allowance for Credit Loss [Abstract]

Contract Assets and Service Fees Receivable, Net and Guarantee Receivables, Net

4. CONTRACT ASSETS AND SERVICE FEES RECEIVABLE, NET AND GUARANTEE RECEIVABLES, NET

The following table provides information about the Group’s contract assets and service fees receivable and guarantee receivables with its customers:


	As of December 31,
	2020			2021
	(RMB in thousands)
Short-term:
Contract assets		2,964,670			3,121,477
Allowance for credit losses of contract assets		(22,923	)		(79,375	)
Contract assets, net		2,941,747			3,042,102
Service fees receivable		808,586			1,008,484
Allowance for credit losses of service fees receivable		(42,684	)		(107,886	)
Service fees receivable, net		765,902			900,598
Guarantee receivables		814,968			564,955
Allowance for credit losses of guarantee receivables		(58,771	)		(21,006	)
Guarantee receivables, net		756,197			543,949
Long-term:
Contract assets		500,959			279,645
Allowance for credit losses of contract assets		(18,970	)		(34,973	)
Contract assets, net		481,989			244,672
Guarantee receivables		235,648			105,623
Allowance for credit losses of guarantee receivables		(16,994	)		(4,061	)
Guarantee receivables, net		218,654			101,562

The activities in the allowance for credit losses of contract assets and service fees receivable and guarantee receivables for the years ended December 31, 2019, 2020 and 2021, respectively, consisted of the following:


	For the Year Ended December 31,
	2019			2020			2021
				(RMB in thousands)
Beginning balances		(54,058	)		(148,322	)		(160,342	)
Cumulative effect due to the adoption of ASC 326 (Note 2(g))	—				(66,433	)		—
Provisions		(153,176	)		(441,805	)		(531,237	)
Charge-offs		68,072			529,380			523,613
Recoveries from prior charge-offs		(9,160	)		(33,162	)		(79,335	)
Ending balances		(148,322	)		(160,342	)		(247,301	)

Prepaid Expenses and Other Current Assets

12 Months Ended

Dec. 31, 2021

Prepaid Expense and Other Assets, Current [Abstract]

Prepaid Expenses and Other Current Assets

5. PREPAID EXPENSES AND OTHER CURRENT ASSETS


	As of December 31,
	2020		2021
	(RMB in thousands)
Receivables from third-party payment service providers (i)		587,168		628,611
Deposits to Institutional Funding Partners (ii)		288,215		208,409
Prepayment to inventory suppliers		59,586		33,976
Prepaid input value-added tax		33,695		20,504
Staff advances		12,694		8,071
Rental deposits and other current assets		23,487		41,579
Total prepaid expenses and other current assets		1,004,845		941,150

(i)

The Group opened accounts with third‑party payment service providers mainly to facilitate collection and transfer of the funds, interest and service fees from/to the Borrowers and Institutional Funding Partners. The balance of receivables from third‑party payment service providers represents amounts temporarily held in these accounts.

(ii)

The balances represent deposits made to the Institutional Funding Partners to directly satisfy the principal and interest payment obligations in case of Borrowers’ defaults.

Property, Equipment and Software, Net

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Property, Equipment and Software, Net

6. PROPERTY, EQUIPMENT AND SOFTWARE, NET


	As of December 31,
	2020			2021
	(RMB in thousands)
Computers and equipment		138,188			163,057
Furniture and fixtures		15,539			18,979
Leasehold improvement		56,462			61,577
Software		41,849			83,518
Construction in progress		12,572			59,441
Total property, equipment and software		264,610			386,572
Accumulated depreciation and amortization		(138,916	)		(191,242	)
Total property, equipment and software, net		125,694			195,330

Depreciation and amortization expenses on property, equipment and software for the years ended December 31, 2019, 2020 and 2021 were RMB39.9 million, RMB53.4 million and RMB56.4 million, respectively.

Land Use Rights, Net

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Land Use Rights, Net

7. LAND USE RIGHTS, NET


	2020			2021
	(RMB in thousands)
Gross carrying amount		1,032,000			1,032,000
Accumulated amortization		(31,533	)		(65,933	)
Impairment		—			—
Net carrying amount		1,000,467			966,067

Land use rights represent the land use rights acquired for the purpose of constructing offices. In 2020, the Group obtained the land use rights from local authorities with a cash consideration of RMB1.0 billion, which is being amortized on a straight-line basis over the term of the land use right period, approximately 30 years. The Group has made the first installment payment of RMB516.0 million in February 2020, and the second installment payment of RMB516.0 million in February 2021. Amortization expense related to land use rights for the year ended December 31, 2020 and 2021 were RMB31.5 million and RMB34.4 million, respectively.

As of December 31, 2021, amortization expenses for future periods are estimated to be as follows:


	2021
	(RMB in thousands)
2022		34,400
2023		34,400
2024		34,400
2025		34,400
2026		34,400
Thereafter		794,067
Total expected amortization expenses		966,067

Long-Term Investments

12 Months Ended

Dec. 31, 2021

Long-term Investments [Abstract]

Long-Term Investments

8. LONG‑TERM INVESTMENTS

Equity investments

Equity investments accounted for using the measurement alternative

The Group's equity investments that do not have readily determinable fair value are accounted for using the measurement alternative. As of December 31, 2020 and 2021, the carrying value of the Group’s equity investments accounted for using the measurement alternative was RMB264 million and RMB213 million, respectively.

In 2021, the Group invested in a limited liability company in China with a cash consideration of RMB16.7 million, and disposed the shares held in a company in India, with cash consideration of RMB58.3 million, net of withholding tax of RMB7.2 million.

For the year ended 2019 and 2020, the Group recorded RMB51.9 million and RMB19.1 million of unrealized upward adjustment of fair value of equity investment respectively, for the observable price changes in orderly transactions for the identical or similar investment of the same issuer. In 2021, the Group disposed the shares held in a company in India and realized all the previous upward adjustment. The Cumulative unrealized upward adjustments of fair value of equity investments as of December 31, 2021 was nil.

There were no impairment charges to the equity investment accounted for using the measurement alternative for the year ended December 31, 2019. In 2020, the Group recognized RMB69.2 million impairment related to investments without readily determinable fair value due to the lower-than-expected financial performance, and no other downward adjustment was related to investments without readily determinable fair value. In 2021, no impairment charges was recorded related to investments without readily determinable fair value. As of December 31, 2021, the cumulative impairment charges to the equity investment accounted for using the measurement alternative method was RMB84.4 million.

The following table summarizes the movement of the carrying value of the Group’s equity investments accounted for using the measurement alternative for the year ended December 31, 2019, 2020 and 2021:


	As of December 31,
	2019			2020			2021
	(RMB in thousands)
Long-term investment at the beginning of the year		28,166			344,362			264,151
Addition		266,153			—			16,700
Disposal		(2,796	)		(23,310	)		(67,475	)
Unrealized upward adjustments		51,891			19,059			—
Impairment		—			(69,156	)		—
Foreign currency translation adjustments		948			(6,804	)		(676	)
Long-term investment at the end of the year		344,362			264,151			212,700

Equity investments accounted for using the equity method

As of December 31, 2020 and 2021, the carrying value of the Group’s equity investments accounted for using the equity method were RMB102 million and RMB101 million, respectively.

In 2019, the Group invested in a joint venture in Indonesia over which it can exercise significant influence but does not control with a cash consideration of RMB13.0 million. In 2020, the Group further invested in the joint venture in Indonesia with a cash consideration of RMB15.0 million. In addition, the Group invested in three joint ventures in China over which it can exercise significant influence but does not control with a cash consideration of RMB88.0 million. In 2021, the Group further invested in the joint venture in Indonesia with a cash consideration of RMB3.0 million.

For the years ended December 31, 2019, 2020 and 2021, the Group recorded investment loss of RMB5.2 million, RMB9.0 million and RMB4.0 million respectively, as a result of its proportionate share of equity investees’ net losses.

Debt investment

The debt investment is in the form of an interest-bearing loan to an investee, acquired by the Group in September 2018, with a principal of RMB120.0 million that matures in July 2026. The coupon rate of the loan acquired by the Group is a floating rate linked to the benchmark rate of the People’s Bank of China. The loan was to provide the initial operating fund to the investee. The Group has the intent and ability to hold the loan to maturity or payoff.

As of December 31, 2020 and 2021, the Group’s loan receivable recorded at amortized cost were both RMB155.8 million.

The interest income in relation to this loan receivable were RMB1.5 million, nil and nil for the years ended December 31, 2019, 2020 and 2021, respectively.

Fair Value Measurement

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurement

9. FAIR VALUE MEASUREMENT

Recurring

The following table presents the fair value hierarchy for the Group’s assets and liabilities that are measured and recorded at fair value on a recurring basis as of December 31, 2020 and 2021:


December 31, 2020	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Balances at Fair Value
	(RMB in thousands)
Assets
Restricted time deposits		—		1,779,458		—		1,779,458
Loans at fair value		—		—		381,393		381,393
Total assets		—		1,779,458		381,393		2,160,851
Liabilities
Guarantee derivative liabilities		—		—		252,613		252,613
Total liabilities		—		—		252,613		252,613


December 31, 2021	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Balances at Fair Value
	(RMB in thousands)
Assets
Restricted time deposits		—		1,745,898		—		1,745,898
Loans at fair value		—		—		252,970		252,970
Total assets		—		1,745,898		252,970		1,998,868
Liabilities
Guarantee derivative liabilities		—		—		1,473,853		1,473,853
Total liabilities		—		—		1,473,853		1,473,853

The fair value of the Group’s restricted time deposits is determined based on the prevailing interest rates for similar products in the market (Level 2). For the off‑balance sheet loans funded by certain Institutional Funding Partners, as the Group’s financial guarantee provided does not trade in an active market with readily observable quoted prices, the Group uses significant unobservable inputs to measure the fair value of these guarantee derivative assets or liabilities (Level 3). For the off-balance sheet loans acquired or purchased by the Group that are not traded in an active market with readily observable prices, the Group uses discounted cash flow methodology involving significant unobservable inputs to measure the fair value of these loans (Level 3).

Transfers into or out of fair value hierarchy classifications are made if the significant inputs used in the financial models measuring the fair value of the assets and liabilities became unobservable or observable in the current marketplace. These transfers are considered to be effective as of the beginning of the period in which they occur. The Group did not transfer any assets or liabilities in or out of Level 2 and Level 3 during each of the periods presented.

Significant Unobservable Inputs

The Group uses a discounted cash flows model to estimate fair value of the guarantee derivative assets or liabilities, and fair value of loans acquired or purchased. The following table presents quantitative information about the significant unobservable inputs used for the Group’s Level 3 fair value measurement as of December 31, 2020 and 2021:


		Range of Inputs
		December 31, 2020									December 31, 2021
Financial Instrument	Unobservable Input	Minimum			Maximum			Weighted- Average			Minimum			Maximum			Weighted- Average
Guarantee derivatives	Cumulative loss rates(i)		3.1	%		13.3	%		6.3	%		5.6	%		12.2	%		7.8	%
	Margins on cost of guarantee services		10.0	%		10.0	%		10.0	%		10.0	%		10.0	%		10.0	%
Loans at fair value	Expected future recovery rates(ii)		9.8	%		9.8	%		9.8	%		4.3	%		4.3	%		4.3	%

(i)

Expressed as a percentage of the original principal balance of the loans.

(ii)

Expressed as a percentage of the principal balance of the loans acquired/purchased.

The following table summarizes the activities related to fair value of the guarantee derivatives:


	For the Year Ended December 31,
	2019			2020			2021
	(RMB in thousands)
Fair value of guarantee derivative liabilities/(assets) at beginning of the year (Level 3)		52,434			(280,998	)		252,613
Cash collection		1,108,398			1,107,646			3,107,316
Net cash payout		(1,151,504	)		(1,281,477	)		(2,344,922	)
Change in fair value(i)		212,256			707,442			458,846
Transfers of financial guarantee contracts (Note2(j))		(502,582	)		—			—
Fair value of guarantee derivative liabilities/(assets) at end of the year (Level 3)		(280,998	)		252,613			1,473,853

(i)

Recognized as “Change in fair value of financial guarantee derivatives, net” on the Consolidated Statements of Operations.

The following table summarizes the activities related to fair value of the loans acquired or purchased:


	For the Year Ended December 31,
	2020			2021
	(RMB in thousands, except for percentages)
Fair value of loans acquired/purchased at beginning of the year (Level 3)		—			381,393
Fair value at inception of loans acquired/purchased		7,067,271			3,851,997
Cash collection		(6,638,596	)		(4,051,776	)
Change in fair value(i)		(47,282	)		111,762
Disposal		—			(40,406	)
Fair value of loans acquired/purchased at end of the year (Level 3)		381,393			252,970

(i)

Recognized as “Change in fair value of loans at fair value” on the Consolidated Statements of Operations.

Significant Recurring Level 3 Fair Value Liability Input Sensitivity

Changes in certain of the unobservable inputs noted above may have a significant impact on the fair value of the guarantee derivative assets and liabilities. The following table summarizes the effect adverse changes in estimate would have on the fair value of the guarantee derivative assets and liabilities as of December 31, 2020 and 2021, respectively, given hypothetical changes in the cumulative loss rates:


	As of December 31,
	2020			2021
	(RMB in thousands, except for percentages)
Weighted average cumulative loss rates(i)		6.3	%		7.8	%
Increase/(decrease) in fair value of guarantee derivative liabilities if the cumulative loss rates:
Increase by 10% (ii)		188,349			362,221
Decrease by 10% (ii)		(188,349	)		(362,221	)

(i)

Expressed as a percentage of the original principal balance of the loans.

(ii)

Expressed as a percentage of the original cumulative loss rates.

Changes in certain of the unobservable inputs noted above may have a significant impact on the fair value of the loans at fair value. The following table summarizes the effect adverse changes in estimate would have on the fair value of the loans at fair value as of December 31, 2020 and 2021, given hypothetical changes in the expected future recovery rates:


	For the Year Ended December 31,
	2020			2021
	(RMB in thousands, except for percentages)
Weighted average expected future recovery rates(i)		9.8	%		4.3	%
Increase/(decrease) in fair value of loans at fair value if the expected future recovery rates:
Increase by 10% (ii)		38,139			25,297
Decrease by 10% (ii)		(38,139	)		(25,297	)

(i)

Expressed as a percentage of the principal balance of the loans acquired/purchased.

(ii)

Expressed as a percentage of the original expected future recovery rates.

Other financial instruments

The followings are other financial instruments not measured at fair value on the Consolidated Balance Sheets, but for which the fair value is estimated for disclosure purposes.

Cash and cash equivalents, current restricted cash, amounts due from related parties and deposits to insurance companies and guarantee companies are financial assets with carrying amounts that approximate fair value due to their short-term nature. Accounts payable and amounts due to related parties are financial liabilities with carrying amounts that approximate fair value because of their short-term nature.

Non‑recurring

The Group measures certain financial assets at fair value on a non-recurring basis only if an impairment charge were to be recognized. The Group’s long-term equity investments are measured at fair value on a nonrecurring basis under measurement alternative, if an impairment loss is charged or fair value adjustment is made for an observable price change in an orderly transaction for identical or similar investments of the same issuer. The related inputs used are classified as Level 3 fair value measurement.

The Group’s non‑financial assets, such as property, equipment and software, would be measured at fair value only if they were determined to be impaired.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Funding Debts

12 Months Ended

Dec. 31, 2021

Funding Debts

Debt Instrument [Line Items]

Funding Debts

10. FUNDING DEBTS

The following table summarizes the Group’s outstanding funding debts as of December 31, 2020 and 2021, respectively:


	As of December 31,
	2020		2021
	(RMB in thousands)
Short-term:
Liabilities to funding partners		4,685,935		3,101,381
Total short-term funding debts		4,685,935		3,101,381
Long-term:
Liabilities to funding partners		825,814		696,852
Total long-term funding debts		825,814		696,852

For the years ended December 31, 2020 and 2021, the following significant activities took place related to the Group’s funding partners:

Liabilities to Individual Investors on Juzi Licai with respect to on-balance sheet loans

The Group finances its on-balance sheet loans using the proceeds from Individual Investors on Juzi Licai by offering various investment programs. As of December 31, 2019, the terms of those programs were all within 24 months with weighted average interest rates of 7.7%. As of December 31, 2020 and 2021, Individual Investors on Juzi Licai funded an aggregate amount of nil in outstanding financing receivables originated by the Group.

Liabilities to funding partners

The Group finances its on-balance sheet loans using the proceeds from funding partners, including the third-party investors of the consolidated Trusts and asset-backed securitized debts, and certain Institutional Funding Partners.

Those liabilities to funding partners were bearing weighted average interest rates of 9.3% and 9.2% as of December 31, 2020 and 2021, respectively. As of December 31, 2020 and 2021, funding partners funded an aggregate amount of RMB5,092.3 million and RMB3,539.9 million in outstanding financing receivables originated by the Group, respectively. As of December 31, 2020 and 2021, financing receivables amounting to RMB325.7 million and RMB1,193.0 million were pledged as collaterals to secure the underlying loans funded by funding partners, respectively.

Maturities of funding debts

The following table summarizes the contractual maturity dates of the Group’s funding debts and associated interest payments as of December 31, 2021.


	1 - 12 months		13 - 24 months		Total
	(RMB in thousands)
Liabilities to funding partners		3,101,381		696,852		3,798,233
Total funding debts		3,101,381		696,852		3,798,233
Interest payments(i)		247,104		48,012		295,116
Total interest payments		247,104		48,012		295,116

(i)

Interest payments for funding debts with variable interest rates are calculated using the interest rate as of December 31, 2021.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI http://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Subparagraph (b)
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-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

Short-Term Borrowings

12 Months Ended

Dec. 31, 2021

Short-term Debt [Abstract]

Short-Term Borrowings

11. SHORT‑TERM BORROWINGS

As of December 31, 2020 and 2021, the Group had short-term borrowings primarily from banks with weighted average interest rates of approximately 4.0% and 3.8% per annum, respectively. Such borrowings are all denominated in RMB. All of the borrowings are designated to support the Group’s general operation and could not be used to fund the Group’s financing receivables.

The Group’s certain borrowings, amounting to RMB 1,701.0 million and RMB 1,497.2 million, as of December 31, 2020 and 2021, respectively, are collateralized by a pledge of the Group’s time deposits. As of December 31, 2020 and 2021, the outstanding balance of short-term borrowings was secured by RMB 1,781.3 million and RMB 1,670.7 million time deposits of the Group pledged as collateral, respectively.

Accrued Expenses and Other Current Liabilities

12 Months Ended

Dec. 31, 2021

Payables and Accruals [Abstract]

Accrued Expenses and Other Current Liabilities

12. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES


	As of December 31,
	2020		2021
	(RMB in thousands)
Guarantee derivative liabilities at fair value (Note 9)		252,613		1,473,853
Tax payable		632,006		975,396
Funds payable to Institutional Funding Partners (i)		670,942		425,763
Accrued payroll and welfare		364,500		408,828
Accrued risk management fees		48,993		197,665
Accrued professional fees and outsourcing fees		37,684		68,002
Accrued marketing expenses		78,681		61,193
Short-term leasing liabilities		45,577		53,644
Payable to third‑party sellers		55,704		47,114
Other payable to Individual Investors on Juzi Licai		86,841		30,477
Deferred service fees		51,966		26,737
Security deposits from third‑party sellers		10,718		16,435
Deferred interest and financial services income and others		23,038		9,880
Payable for acquisition of land use rights (ii)		516,000		-
Other accrued expenses		51,084		78,670
Total accrued expenses and other current liabilities		2,926,347		3,873,657

(i)

The payable balances mainly include repayment received from Borrowers but not yet transferred to accounts of Institutional Funding Partners due to the settlement time lag.

(ii)

In 2020, the Group obtained the land use rights from local authorities with a cash consideration of RMB1.0 billion. The Group has made the first installment payment of RMB516.0 million in February 2020, and the second installment payment of RMB516.0 million in February 2021.

Related Party Balances and Transactions

12 Months Ended

Dec. 31, 2021

Related Party Balances and Transactions

13. RELATED PARTY BALANCES AND TRANSACTIONS

The table below sets forth major related parties of the Group and their relationships with the Group:


Entity or individual name		Relationship with the Group
Ji'an Aoxinlian Information Consulting Service Co., Ltd.(“Ji'an Aoxinlian”)		Ji’an Aoxinlian is controlled by the immediate family member of the Group's senior management.
Ji'an Aojuxun Information Consulting Service Co., Ltd.(“Ji'an Aojuxun”)		Ji’an Aojuxun is controlled by the immediate family member of the Group's senior management.
Shenzhen Aileyou Information Technology Co., Ltd.(Aileyou)		Aileyou is an equity investment of the Group.
L.P. Technology Holdings Limited (“L.P.”)		L.P. is an equity investment of the Group.
Individual Director or Officer		Directors or officers of the Group.
JD.com, Inc. and its subsidiaries (“JD Group”) *		JD Group was a shareholder of the Group before January 1, 2020.

*In considering the equity interests of the Company held by JD, the transaction volumes between the Company and JD as well as other relevant factors, management concluded that JD was no longer a related party of the Company starting from January 1, 2020.

(a)

The Group entered into the following significant related party transactions:

(i)

Sales of goods and services to related parties


	For the Year Ended December 31,
	2019	2020		2021
	(RMB in thousands)
Sales of goods and services to Aileyou	—		2,087		7,731
Total	—		2,087		7,731

(ii)

Purchase of goods and services from related parties


	For the Year Ended December 31,
	2019		2020		2021
	(RMB in thousands)
Purchases of goods and services from Ji'an Aoxinlian		7,200		20,658		20,493
Purchases of goods and services from Ji'an Aojuxun		2,091		7,987	—
Purchases of goods and services from JD Group		827,574	—		—
Total		836,865		28,645		20,493

(b)

The Group had the following significant related party balances:

(i)

Amounts due from related parties


	As of December 31,
	2020		2021
	(RMB in thousands)
Due from L.P. by the Group		941		6,109
Total		941		6,109

(ii)

Amounts due to related parties


	As of December 31,
	2020		2021
	(RMB in thousands)
Due to individual Director or Officer and his/her immediate family members under investment programs offered by the Group		61,871		15,028
Due to Ji'an Aoxinlian by the Group		4,711		4,790
Due to Aileyou by the Group		932		3,285
Total		67,514		23,102

The Group believes that the terms of the transactions with the related parties are comparable to the terms of arm’s‑length transactions with third‑party vendors and Individual Investors.

Taxation

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Taxation

14. TAXATION

a) Value‑added tax (“VAT”)

During the periods presented, the Group is subject to 16% or 13% VAT, when applicable, for online direct sales revenues from sales of electronic products, home appliance products and general merchandise products, and 6% for premium

membership fees, third-party sellers’ commission fees, and financial services income earned from rendering services to its customers in the PRC.

The Group is also subject to surcharges on VAT payments according to PRC tax law.

b) Income tax

Cayman Islands

The Company was incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, the Company is not subject to tax on either income or capital gain. Additionally, the Cayman Islands does not impose a withholding tax on payments of dividends to shareholders.

Hong Kong

Under the current Hong Kong Inland Revenue Ordinance, the Company’s subsidiaries incorporated in Hong Kong are subject to 16.5% income tax on their taxable income generated from operations in Hong Kong. Additionally, payments of dividends by the subsidiaries incorporated in Hong Kong to the Company are not subject to any Hong Kong withholding tax. Commencing from the year of assessment of 2018, the first HK$2 million of profits earned by the Company’s subsidiaries incorporated in Hong Kong will be taxed at half the current tax rate (i.e. 8.25%) while the remaining profits will continue to be taxed at the existing 16.5% tax rate.

PRC

The Enterprise Income Tax (“EIT”) Law generally applies a statutory income tax rate of 25% to all enterprises but grants preferential tax treatment to qualified High and New Technology Enterprises (“HNTEs”) and Software Enterprises.

Beizhipiji qualified as an HNTE and is entitled for a preferential income tax rate of 15% from 2017 to 2019, and is subject to the statutory income tax rate of 25% for both 2020 and 2021.

Shenzhen Lexin Software qualified as Software Enterprises and is entitled to an income tax exemption for the years of 2017 and 2018, a preferential income tax rate of 10% for 2019, and is entitled to a preferential income tax rate of 12.5% for 2020 and 2021.

Shenzhen Dingsheng Technology qualify as a Software Enterprise and is entitled to an income tax exemption for the years of 2017 and 2018 and a preferential income tax rate of 12.5% from 2019 to 2021.

Beihai Aurora and Beihai Turing are entitled for a preferential income tax rate of 15% for China’s Western Development Strategy, in the meantime, the local tax bureau in Guangxi exempted 40% of the income based on 15% from 2018 to 2022. Therefore, Beihai Aurora and Beihai Turing applied a preferential income tax rate of 9% from 2018 to 2022, and 15% from 2023 to 2030.

The Group’s other PRC subsidiaries, the VIEs and the VIEs’ subsidiaries are subject to the statutory income tax rate of 25%.

PRC Withholding Tax on Dividends

Under the EIT Law enacted by the National People’s Congress of PRC on March 16, 2007 and its implementation rules which became effective on January 1, 2008, dividends generated after January 1, 2008 and payable by FIEs in the PRC to its foreign investors who are non‑resident enterprises are subject to a 10% withholding tax, unless any such foreign investor’s jurisdiction of incorporation has a tax treaty with the PRC that provides for a different withholding arrangement. Under the taxation arrangement between the PRC and Hong Kong, a qualified Hong Kong tax resident which is the “beneficial owner” and directly holds 25% or more of the equity interest in a PRC resident enterprise is entitled to a reduced

withholding tax rate of 5%. The Cayman Islands, where the Company was incorporated, does not have a tax treaty with the PRC.

The EIT Law includes a provision specifying that legal entities organized outside of the PRC will be considered resident enterprises for the PRC income tax purposes if the place of effective management or control of the entity is within the PRC. The implementation rules to the EIT Law provide that non‑resident legal entities will be considered as PRC resident enterprises if substantial and overall management and control over the manufacturing and business operations, personnel, accounting, properties, etc., occurs within the PRC. Despite the present uncertainties resulting from the limited PRC tax guidance on the issue, the Group does not believe that the Group’s entities organized outside of the PRC should be treated as resident enterprises for the PRC income tax purposes. If the PRC tax authorities subsequently determine that the Company and its subsidiaries registered outside the PRC should be deemed as resident enterprises, the Company and its subsidiaries registered outside the PRC will be subject to the PRC income tax, at a rate of 25%.The components of the Group’s income before income tax expense for the years ended December 31, 2019, 2020 and 2021 are as follows:


	For the Year Ended December 31,
	2019			2020			2021
	(RMB in thousands, except for percentages)
Income before income tax expense		2,706,511			685,609			2,769,534
Income/(Loss) from non-China operations		41,461			15,143			(30,047	)
Income from China operations		2,665,050			670,466			2,799,581
Income tax expense applicable to China operations		411,959			90,629			428,267
Income tax expense applicable to non-China operations		—			—			7,151
Total income tax expense		411,959			90,629			435,418
Effective tax rate for China operations		15.5	%		13.5	%		15.3	%
Effective tax rate for the Group		15.2	%		13.2	%		15.7	%

The Group did not incur any interest and penalties related to potential underpaid income tax expenses.

Composition of income tax expense for the Group

The following table sets forth current and deferred portion of income tax expense of the Company’s China subsidiaries, the VIEs, and subsidiaries of the VIEs:


	For the Year Ended December 31,
	2019		2020			2021
	(RMB in thousands)
Current income tax expense		352,036		594,149			831,675
Deferred income tax expense		59,923		(503,520	)		(396,257	)
Income tax expense		411,959		90,629			435,418

The following table sets forth reconciliation between the statutory enterprise income tax (“EIT”) rate and the effective tax rate for the Group:


	For the Year Ended December 31,
	2019			2020			2021
Statutory EIT rate		25.0	%		25.0	%		25.0	%
Change of tax position*	—				(2.4	)%		—
Effect of tax holidays		(8.9	)%		(9.6	)%		(10.8	)%
Tax effect of non-deductible expenses		(0.4	)%		1.1	%		0.9	%
Changes in valuation allowance	**				(0.3	)%		0.1	%
Tax rate difference from statutory rate in other jurisdictions and others		(0.5	)%		(0.6	)%		0.5	%
Effective tax rates for the Group		15.2	%		13.2	%		15.7	%

* In the third quarter of 2020, RMB16.2 million income tax provision relating to 2019 was reversed as one subsidiary of the Group was certified to be qualified for using a preferential tax rate of 10% for 2019 annual tax clearance in this quarter.

** Less than 0.1%.

The following table sets forth the effect of tax holiday related to the Group:


	For the Year Ended December 31,
	2019		2020		2021
	(In thousands, except per share amount)
Tax holiday effect		239,732		66,110		299,578
Basic net income per share effect		0.67		0.18		0.81
Diluted net income per share effect		0.64		0.16		0.72

Deferred tax assets and deferred tax liabilities

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


	For the Year Ended December 31,
	2020			2021
Deferred tax assets
- Deferred guarantee income and other accrued expenses		477,023			832,412
- Contingent guarantee liabilities		434,697			232,210
- Provision for credit losses		359,293			646,460
- Advertising expenses in excess of deduction limit		54,970			178
- Net operating loss carryforwards		13,649			21,919
Less: valuation allowance		(4,429	)		(6,756	)
Total deferred tax assets		1,335,203			1,726,423
Net deferred tax assets		747,332			1,176,878

The components of the deferred tax liabilities are as follows:


	For the Year Ended December 31,
	2020		2021
Deferred tax liabilities
-Contract assets and service fees receivable		490,204		523,752
-Guarantee receivables		118,713		80,128
Total deferred tax liabilities		608,917		603,880
Net deferred tax liabilities		21,046		54,335

Movement of valuation allowance


	For the Year Ended December 31,
	2019			2020			2021
Balance at beginning of the year		(6,785	)		(6,662	)		(4,429	)
Additions		(4,255	)		(2,243	)		(2,659	)
Reversals		4,378			4,476			332
Balance at end of the year		(6,662	)		(4,429	)		(6,756	)

Valuation allowance is provided against deferred tax assets when the Group determines that it is more‑likely‑than‑not that the deferred tax assets will not be utilized in the future. The Group considers positive and negative evidence to determine whether some portion or all of the deferred tax assets will be more‑likely‑than‑not realized. This assessment considers, among other matters, the nature, frequency and severity of recent losses and forecasts of future

profitability. These assumptions require significant judgment and the forecasts of future taxable income are consistent with the plans and estimates the Group is using to manage the underlying businesses. The statutory income tax rate of 25% or applicable preferential income tax rates were applied when calculating deferred tax assets.

The Group evaluates a variety of factors including the successful experiences in pre-tax deduction of provision for credit losses in previous years’ annual tax filings, and concluded that the deferred tax assets arose from provision for credit losses are more-likely-than-not to be realized. Therefore, no valuation allowance was provided for the provision for credit losses as of December 31, 2019, 2020 and 2021, respectively.

As of December 31, 2020 and 2021, the Group had net operating loss carryforwards of approximately RMB63.8 million and RMB107.2 million, respectively, which arose from the Group’s certain subsidiaries, the VIEs and the VIEs’ subsidiaries established in the PRC. As of December 31, 2020 and 2021, deferred tax assets arose from the net operating loss carryforwards amounted to RMB22.7 million and RMB41.9 million was provided for full valuation allowance respectively, while the remaining RMB41.1 million and RMB65.3 million is expected to be utilized prior to expiration considering future taxable income for respective entities. As of December 31, 2021, the net operating loss carryforwards of RMB7.2 million, RMB6.1 million, RMB8.7 million, RMB32.7 million and RMB52.4 million will expire in 2022, 2023, 2024, 2025 and 2026, respectively, if not utilized.

The Company intends to indefinitely reinvest all the undistributed earnings of the Company’s subsidiaries and the consolidated VIEs in China. The Group does not intend to have any of its PRC subsidiaries or the VIEs distribute any undistributed profits of such subsidiaries or the VIEs to their direct overseas parent companies, but rather intends that such profits will be permanently reinvested by such subsidiaries and the VIEs for their PRC operations. As of December 31, 2021, the unrecognized tax liabilities related to undistributed profits from the PRC subsidiaries and the VIEs was RMB694 million.

Uncertain Tax Position

The Group did not identify any significant unrecognized tax benefits for each of the periods presented. The Group did not incur any interest related to unrecognized tax benefits, did not recognize any penalties as income tax expense and also does not anticipate any significant change in unrecognized tax benefits within 12 months from December 31, 2021.

- 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
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-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

Convertible Notes

12 Months Ended

Dec. 31, 2021

Convertible Debt [Abstract]

Convertible Notes

15. CONVERTIBLE NOTES

In September 2019, the Company issued and sold convertible notes (the “Notes”) in an aggregate principal amount of US$300.0 million to PAG, a leading Asia-focused private equity firm, through a private placement. The Notes will mature in seven years, bearing interest at a rate of 2.0% per annum. The Notes are convertible in whole or in part into fully paid Class A Ordinary Shares or ADSs at the holder’s option from the date that is six months after the issuance date to the third business day before the maturity date (i.e., September 16, 2026), at an initial conversion price of US$7.0 per Class A Ordinary Share or US$14.0 per ADS. The holder of the Notes may require the Company to repurchase all or part of their Notes in cash on September 16, 2023 or in the event of certain fundamental changes at a repurchase price equal to 100% of the principal amount, plus accrued and unpaid interest.

The net proceeds to the Company from the issuance of the Notes were US$293.0 million (RMB1,868.1 million), net of debt discount of US$3.6 million (RMB23.0 million) and issuance costs of US$3.4 million (RMB21.7 million). The debt discount and issuance costs of the Notes were amortized to interest expense over the contractual life to the maturity date. For the years ended December 31, 2020 and 2021, the interest expense related to the Notes was RMB47.8 million and RMB44.9 million, respectively.

The Group accounted for the Notes as a single instrument as “Convertible notes” on the Consolidated Balance Sheets. The debt discount and issuance costs were recorded as an adjustment to the carrying value of the Notes and are amortized as interest expense using the effective interest method. As of December 31, 2020 and 2021, the principal amount of the debt were RMB1,957.5 and RMB1912.7 million and unamortized debt discount and issuance costs were RMB37.3 and RMB30.0 million, respectively.

Ordinary Shares

12 Months Ended

Dec. 31, 2021

Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract]

Ordinary Shares

16. ORDINARY SHARES

In November 2013, the Company was formed as a limited liability company in the Cayman Islands with issuance of 125,000,000 ordinary shares at a par value of US$0.0001 each. In July 2014, the Company became the holding company of the Group pursuant to the reorganization described in Note 1.

On December 26, 2017, the Company completed its IPO on the NASDAQ Global Market. In this offering, 12,000,000 ADSs, representing 24,000,000 Class A Ordinary Shares, were issued and sold to the public at a price of US$9.00 per ADS. The aggregate proceeds received by the Company from the IPO, net of issuance costs, were approximately RMB651.3 million ($100.1 million).

Immediately prior to the completion of the IPO, the Company adopted a dual-class share structure, consisting of Class A Ordinary Shares and Class B Ordinary Shares, par value US$0.0001 per share. All of the issued and outstanding Pre-IPO Class A Ordinary Shares were automatically re-designated into Class B Ordinary Shares on a one-for-one basis, and all of the issued and outstanding Pre-IPO Preferred Shares were automatically converted and redesignated into Class A Ordinary Shares on a one-for-one basis. Holders of Class A Ordinary Shares and Class B Ordinary Shares have the same rights except that the holders of Class A Ordinary Shares are entitled to one vote per share in respect of matters requiring the votes of shareholders, while holders of Class B Ordinary Shares are entitled to ten votes per share. Each Class B Ordinary Share is convertible into one Class A Ordinary Share at any time by the holder thereof. Class A Ordinary Shares are not convertible into Class B Ordinary Shares under any circumstances. The Group concluded that the adoption of dual-class share structure did not have a material impact on its consolidated financial statements.

In June 2018, 27,000,000 shares of Class A Ordinary Shares were issued to the Company’s depositary bank for bulk issuance of ADSs reserved for future issuances upon the exercise or vesting of awards under the Group’s share-based incentive plans. As of December 31, 2020, 1,578,904 shares out of 27,000,000 shares of Class A Ordinary Shares respectively were deemed issued but not outstanding as they have not been transferred to grantees.

In June 2021, 15,000,000 shares of Class A Ordinary Shares were issued to the Company’s depositary bank for bulk issuance of ADSs reserved for future issuances upon the exercise or vesting of awards under the Group’s share-based incentive plans, totalling the shares for bulk issuance of ADSs to 42,000,000. As of December 31, 2021, 13,160,846 shares out of 42,000,000 shares of Class A Ordinary Shares respectively were deemed issued but not outstanding as they have not been transferred to grantees.

Net Income Per Share

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Net Income Per Share

17. NET INCOME PER SHARE

Basic net income per share is the amount of net income available to each share of ordinary shares outstanding during the reporting period. Diluted net income per share is the amount of net income available to each share of ordinary shares outstanding during the reporting period adjusted to include the effect of potentially dilutive ordinary shares. For the year ended December 31, 2021, the Company had potential ordinary shares, including stock options granted, outstanding restricted share units and ordinary shares issuable upon the conversion of the Notes. For the years ended December 31, 2019, 2020 and 2021, stock options to purchase ordinary shares and restricted share units that were anti‑dilutive and excluded from the calculation of diluted net income per share were 7,627,967 shares, 11,398,012 shares and 9,826,578 shares, on a weighted average basis, respectively.

The following table sets forth the computation of basic and diluted net income per share for the periods indicated:


	For the Year Ended December 31,
	2019		2020		2021
	(RMB in thousands, except for share and per share data)
Basic net income per share calculation:
Numerator:
Net income attributable to ordinary shareholders		2,294,552		594,980		2,333,923
Denominator:
Weighted average number of ordinary shares outstanding—basic		355,625,970		364,733,164		368,460,867
Net income per share attributable to ordinary shareholders—basic		6.45		1.63		6.33
Diluted net income per share calculation:
Numerator:
Net income attributable to ordinary shareholders		2,294,552		594,980		2,333,923
Interest expense associated with convertible notes reversed		14,261		47,781		44,865
Net income attributable to ordinary shareholders for calculating diluted net income per share		2,308,813		642,761		2,378,788
Denominator:
Weighted average number of ordinary shares outstanding—basic		355,625,970		364,733,164		368,460,867
Ordinary shares issuable upon the exercise of outstanding stock options using the treasury stock method		6,470,848		3,255,913		3,381,510
Ordinary shares issuable upon the vesting of outstanding restricted share units using the treasury stock method		1,170,713		383,590		293,196
Ordinary shares issuable upon the conversion of convertible notes using the if—converted method		12,563,600		42,857,143		42,857,143
Weighted average number of ordinary shares outstanding—diluted		375,831,131		411,229,810		414,992,716
Net income per share attributable to ordinary shareholders—diluted		6.14		1.56		5.73

Employee Benefit Plan

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

Employee Benefit Plan

18. EMPLOYEE BENEFIT PLAN

Full‑time employees of the Group in the PRC are entitled to welfare benefits including pension insurance, medical insurance, unemployment insurance, maternity insurance, on‑the‑job injury insurance, and housing fund plans through a PRC government‑mandated defined contribution plan. Chinese labor regulations require that the Group makes contributions to the government for these benefits based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The Group has no legal obligation for the benefits beyond the contributions.

Total contributions by the Group for such employee benefits were RMB128.7 million, RMB85.9 million and RMB146.1 million for the years ended December 31, 2019, 2020 and 2021, respectively.

Statutory Reserves and Restricted Net Assets

12 Months Ended

Dec. 31, 2021

Statutory Reserves And Restricted Net Assets [Abstract]

Statutory Reserves and Restricted Net Assets

19. STATUTORY RESERVES AND RESTRICTED NET ASSETS

In accordance with the PRC laws and regulations, the Company’s PRC subsidiaries registered as wholly foreign‑owned enterprise are required to make appropriation to certain reserve funds, namely general reserve fund, enterprise expansion fund, and staff bonus and welfare fund, all of which are appropriated from the subsidiaries’ annual after‑tax profits as reported under PRC GAAP. The appropriation must be at least 10% of the annual after‑tax profits to the general reserve fund until such reserve fund has reached 50% of the subsidiaries’ registered capital.

Additionally, in accordance with the PRC Company Laws, a domestic company is required to provide statutory surplus fund at least 10% of its annual after‑tax profits as reported under PRC GAAP until such statutory surplus fund has reached 50% of its registered capital. A domestic company is also required to provide discretionary surplus fund, at the discretion of the board of directors, from its annual after‑tax profits as reported under PRC GAAP. The aforementioned reserve funds can only be used for specific purposes and are not distributable as cash dividends.

As a result of the PRC laws and regulations and the requirement that distributions by the PRC entity can only be paid out of distributable profits computed in accordance with PRC GAAP, the PRC entity is restricted from transferring a portion of its net assets to the Company. Amounts restricted include paid‑in capital, additional paid‑in capital and statutory reserves of the Company’s PRC entities. As of December 31, 2020 and 2021, the restricted net assets of the Group’s relevant PRC entities amounted to RMB3,771.9 million and RMB4,189.9 million, respectively. The restricted net assets of the Group’s relevant PRC entities accounted for 52.2% of the consolidated net assets as of December 31, 2021. As a result of the above restrictions, parent company only condensed financial information is disclosed in Note 23.

Share-Based Compensation

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Share-Based Compensation

20. SHARE‑BASED COMPENSATION

Share‑based compensation was recognized in operating cost and expenses for the years ended December 31, 2018, 2020 and 2021 as follows:


	For the Year Ended December 31,
	2019		2020		2021
	(RMB in thousands)
Processing and servicing cost		10,472		11,391		9,968
Sales and marketing expenses		28,611		32,486		30,508
Research and development expenses		42,977		46,116		39,413
General and administrative expenses		95,202		108,832		107,995
Total share‑based compensation expenses		177,262		198,825		187,884

The Group recognizes share-based compensation, net of estimated forfeitures, on a straight-line basis over the vesting term of the awards. All the share-based awards granted by the Group are service conditions only. There was no income tax benefit recognized on the Consolidated Statements of Operations for share‑based compensation and the Group did not capitalize any of the share‑based compensation as part of the cost of any asset in the years ended December 31, 2019, 2020 and 2021.

In October 2017, the Group adopted its 2017 Share Incentive Plan (“2017 Plan”), which permits the grant of stock options, restricted shares, and restricted share units of the Company to employees, directors and other eligible persons of the

Company and its affiliates. Under the 2017 Plan, the maximum number of Class A Ordinary Shares that may be issued pursuant to all awards is 22,859,634 shares, plus an annual increase on the first day of each fiscal year of the Company during the ten-year term of the 2017 Plan commencing with the fiscal year beginning January 1, 2019, by an amount equal to 1.0% of the total number of shares issued and outstanding on the last day of the immediately preceding fiscal year. Option awards are granted with an exercise price determined by the board of directors. Those option awards generally vest over a period of four years and expire in ten years.

The following table sets forth a summary of the number of shares available for issuance:


	Shares Available
	(In thousands)
December 31, 2018		13,833
Additions		3,512
Granted		(10,849	)
Cancelled/forfeited		1,903
December 31, 2019		8,399
Additions		3,594
Granted		(3,005	)
Cancelled/forfeited		2,539
December 31, 2020		11,527
Additions		3,641
Granted		(13,736	)
Cancelled/forfeited		5,201
December 31, 2021		6,633

Stock options

1) Stock options granted to employees, directors and non-employee directors

The following table sets forth the summary of activities for stock options granted to employees, directors and non-employee directors:


	Options Outstanding			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value
	(In thousands)			US$		(In years)		(RMB in thousands)
December 31, 2018		20,142			1.5164		7.95		353,559
Granted*		5,091			0.5000
Exercised		(7,798	)		0.2548
Cancelled/forfeited		(1,194	)		2.3996
December 31, 2019		16,241			1.7386		8.22		589,871
Granted*		2,829			0.5000
Exercised		(3,140	)		0.2399
Cancelled/forfeited		(2,270	)		2.1589
December 31, 2020		13,660			1.7569		7.87		189,072
Granted*		13,489			0.5000
Exercised		(2,426	)		0.4529
Cancelled/forfeited		(4,594	)		3.2215
December 31, 2021		20,129			0.7227		8.43		155,018
Vested and expected to vest as of December 31, 2021		18,867			0.7355		8.42		143,684
Exercisable as of December 31, 2021		4,447			1.2408		6.53		19,540

* No stock options were granted to non-employee directors for the years presented.

The weighted average grant date fair value of stock options granted to employees, directors and non-employee directors for the years ended December 31, 2019, 2020 and 2021 was RMB35.6, RMB25.5 and RMB23.0 per share, respectively.

The total intrinsic value of stock options exercised for the years ended December 31, 2019, 2020 and 2021 was RMB293.5 million, RMB90.4 million and RMB78.5 million, respectively. The intrinsic value is calculated as the difference between the market value on the date of exercise and the exercise price of the stock options.

For the years ended December 31, 2019, 2020 and 2021, total share-based compensation expenses recognized for stock options granted to employees, directors and non-employee directors were RMB125.1 million, RMB143.5 million and RMB147.0 million, respectively.

In August 2018, the Company modified the exercise price of 6,263,000 stock options granted under 2017 Plan to US$5.15. The incremental compensation expenses of RMB16.9 million was equal to the excess of the fair value of the modified award immediately after the modification over the fair value of the original award immediately before the modification.

As of December 31, 2021, the unrecognized compensation cost, adjusted for estimated forfeitures, related to non‑vested stock options granted to the Group’s employees, directors and non-employee directors was RMB285.9 million. Total unrecognized compensation cost is expected to be recognized over a weighted‑average period of 2.9 years and may be adjusted for future changes in estimated forfeitures. Prior to completion of the IPO, the exercise price of each granted stock option was US$0.0001, the Company used intrinsic value (approximately the fair value of each of the Company’s ordinary share) on the grant date to estimate the fair value of the stock options granted. After the IPO, the exercise price of each granted stock option is determined by the closing price of the Company’s ordinary share on the grant date, therefore, the estimated fair value of each stock option granted is estimated on the date of grant using the binomial option-pricing model with the following assumptions:

For the Year Ended December 31,

2019

2020

2021

Expected volatility

41.81%~42.09%

45.25%~48.26%

46.68%~47.79%

Risk-free interest rate (per annum)

1.80%~1.81%

0.67%~0.88%

1.11%~1.64%

Exercise multiples

1.5~2.5

Expected dividend yield

—

Expected term (in years)

Fair value of the underlying shares on the date of grants (US$)

5.02~6.02

3.15~4.15

1.91~6.31

2) Stock options granted to non‑employees

The following table sets forth the summary of activities for stock options granted to non‑employees:


	Options Outstanding			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value
	(In thousands)			US$		(In years)		(RMB in thousands)
December 31, 2018		500			0.0001		8.58		12,439
Granted		—			—		—		—
Exercised		(90	)		0.0001		—		—
Cancelled/forfeited		—			—		—		—
December 31, 2019		410			0.0001		7.58		19,864
Granted		—			—		—		—
Exercised		—			—		—		—
Cancelled/forfeited		—			—		—		—
December 31, 2020		410			0.0001		6.58		8,962
Granted		—			—		—		—
Exercised		(160	)		0.0001		—		—
Cancelled/forfeited		—			—		—		—
December 31, 2021		250			0.0001		5.58		3,076
Vested and expected to vest as of December 31, 2021		250			0.0001		5.58		3,076
Exercisable as of December 31, 2021		250			0.0001		5.58		3,076

For the years ended December 31, 2019, 2020 and 2021, total share-based compensation expenses recognized for stock options granted to non-employees were RMB3.3 million, RMB3.2 million and RMB1.7 million, respectively.

As of December 31, 2021, the unrecognized compensation cost, adjusted for estimated forfeitures, related to non‑vested stock options granted to the Group’s non‑employees was nil. There is no unrecognized compensation cost to be recognized and to be adjusted for future changes in estimated forfeitures.

Restricted share units

The following table sets forth the summary of activities for restricted share units granted to employees, directors and non-employee directors:


	Shares Outstanding			Weighted Average Grant Date Fair Value
	(In thousands)			US$
December 31, 2018		1,237			7.47
Granted*		5,758			5.10
Vested		(292	)		7.49
Cancelled/forfeited		(709	)		5.78
December 31, 2019		5,994			5.39
Granted*		176			4.27
Vested		(1,527	)		5.43
Cancelled/forfeited		(989	)		5.57
December 31, 2020		3,654			5.27
Granted*		247			3.21
Vested		(1,226	)		5.35
Cancelled forfeited		(607	)		5.12
December 31, 2021		2,068			5.02

* No restricted share units were granted to non-employee directors for the years presented.

The fair value and intrinsic value of restricted share units vested for the years ended December 31, 2019, 2020 and 2021 was RMB11.6 million, RMB69.9 million and RMB24.2 million, respectively.

For the years ended December 31, 2019, 2020 and 2021, total share‑based compensation expenses recognized for restricted share units were RMB48.9 million, RMB52.1 million and RMB39.2 million, respectively.

As of December 31, 2021, the unrecognized compensation cost, related to unvested restricted share units was RMB5.7 million. Total unrecognized compensation cost is expected to be recognized over a weighted average period of 1.3 years.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

21. COMMITMENTS AND CONTINGENCIES

Debt obligations

The Group’s debt obligations are associated with 1) the funding debts and interest payable to Individual Investors on Juzi Licai and other funding partners; 2) the borrowings to support the Group’s general operations; 3) the convertible notes issued by the Company in September 2019; and 4) the commitment to purchase delinquent loans from certain Institutional Funding Partners.

The expected repayment amount of the debt obligations are as follows:


	1 – 12 months		13 – 24 months		25 – 36 months		37 – 48 months		49 – 60 months and beyond		Total
	(RMB in thousands)
Funding debts obligations
Liabilities to funding partners		3,101,381		696,852	—		—		—			3,798,233
Interest payments (i)		247,104		48,012	—		—		—			295,116
Total funding debts obligations		3,348,485		744,864		—		—		—		4,093,349
Short–term borrowings		1,799,741	—		—		—		—			1,799,741
Interest payments (i)		40,366	—		—		—		—			40,366
Total short–term borrowings obligations		1,840,107		—		—		—		—		1,840,107
Convertible notes		—		1,912,710		—		—		—		1,912,710
Interest payments (i)		38,254		36,660		—		—		—		74,914
Total convertible notes obligations		38,254		1,949,370		—		—		—		1,987,624
Commitment to purchase delinquent loans (ii)		826,839	—		—		—		—			826,839
Total purchase obligations		826,839		—		—		—		—		826,839

(i)

Interest payments with variable interest rates are calculated using the interest rate as of December 31, 2021.

(ii)

With respect to the arrangements with certain Institutional Funding Partners, the Group is required to purchase the off-balance sheet loans funded by those Institutional Funding Partners when the loans become delinquent for a certain period of time consecutively or cumulatively. Commitment to purchase delinquent loans represents the Group’s noncancelable obligations to purchase those delinquent loans which is yet to be sold by those Institutional Funding Partners as of December 31, 2021.

Litigations

From time to time, the Group may be subject to various legal or administrative claims and proceedings arising in the ordinary course of business.

Litigation is subject to inherent uncertainties and the Group’s view of these matters may change in the future. The Group records a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The Group reviews the need for any such liability on a regular basis. The Group has not recorded any liabilities in this regard as of December 31, 2020 and 2021.

Subsequent Events

12 Months Ended

Dec. 31, 2021

Subsequent Events [Abstract]

Subsequent Events

22. SUBSEQUENT EVENTS

On March 16, 2022, the Group's board of directors authorized a share repurchase plan under which the Company may purchase up to US$50 million of its shares over the next twelve months.

No other events or transactions have occurred between year-end and the date of these Consolidated Financial Statements which may significantly affect the Entity’s financial position or results of operations as of December 31, 2021.

Parent Company Only Condensed Financial Information

12 Months Ended

Dec. 31, 2021

Condensed Financial Information Disclosure [Abstract]

Parent Company Only Condensed Financial Information

23. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION

The condensed financial information of the Company has been prepared in accordance with SEC Regulation S‑X Rule 5‑04 and Rule 12‑04, using the same accounting policies as set out in the Group’s consolidated financial statements, except that the Company uses the equity method to account for investments in its subsidiaries, the VIEs and the VIEs’ subsidiaries.

The subsidiaries did not pay any dividend to the Company for the years presented. Certain information and footnote disclosures generally included in financial statements prepared in accordance with U.S. GAAP have been condensed and omitted. The footnote disclosures contain supplemental information relating to the operations of the Company, as such, these statements are not the general‑purpose financial statements of the reporting entity and should be read in conjunction with the notes to the consolidated financial statements of the Group.

The Company did not have significant capital and other commitments or guarantees as of December 31, 2020 and 2021, except for those which have been separately disclosed in the consolidated financial statements.

Condensed Balance Sheets (In thousands, except for share and per share data)


	As of December 31,
	2020		2021
	RMB		RMB		US$
					Note 2(e)
ASSETS
Current assets
Cash and cash equivalents		846		1,845		290
Amounts due from subsidiaries		371,814		354,241		55,588
Prepaid expenses and other current assets		6,272		28,427		4,461
Total current assets		378,932		384,513		60,339
Non-current assets
Investments in subsidiaries, the VIEs and the VIEs’ subsidiaries		7,004,849		9,563,708		1,500,754
Long-term investments		68,151		—		—
Other assets		—		215		34
Total non-current assets		7,073,000		9,563,923		1,500,788
Total assets		7,451,932		9,948,436		1,561,127
LIABILITIES
Current liabilities
Amounts due to subsidiaries, the VIEs and the VIEs’ subsidiaries		18,264		17,887		2,807
Accrued interest payable		9,233		8,735		1,371
Accrued expenses and other current liabilities		13,470		11,509		1,806
Total current liabilities		40,967		38,131		5,984
Non-current liabilities
Convertible notes		1,920,227		1,882,689		295,435
Total non-current liabilities		1,920,227		1,882,689		295,435
Total liabilities		1,961,194		1,920,820		301,419
Commitments and contingencies (Note 21)

SHAREHOLDERS’ EQUITY:
Class A Ordinary Shares ($0.0001 par value per share; 1,889,352,801 shares authorized, 268,935,832 shares issued, 267,356,928 shares outstanding as of December 31, 2020; 1,889,352,801 shares authorized, 286,430,946 shares issued, 273,270,100 shares outstanding as of December 31, 2021)		176		180		28
Class B Ordinary Shares ($0.0001 par value per share; 110,647,199 shares authorized, 96,727,057 shares issued and outstanding as of December 31, 2020; 110,647,199 shares authorized, 94,465,693 shares issued and outstanding as of December 31, 2021)		58		57		9
Additional paid-in capital		2,724,006		2,918,993		458,054
Accumulated other comprehensive income		3,308		11,273		1,769
Retained earnings		2,763,190		5,097,113		799,848
Total shareholders’ equity		5,490,738		8,027,616		1,259,708
Total liabilities and shareholders’ equity		7,451,932		9,948,436		1,561,127

Condensed Statements of Operations and Comprehensive Income (In thousands)


	For the Year Ended December 31,
	2019			2020			2021
	RMB			RMB			RMB			US$
										Note 2(e)
Operating expenses:
General and administrative expenses		(18,514	)		(15,707	)		(19,109	)		(2,999	)
Total operating expenses		(18,514	)		(15,707	)		(19,109	)		(2,999	)
Interest expense, net		(14,085	)		(47,783	)		(44,865	)		(7,040	)
Income from subsidiaries, the VIEs and the VIEs’ subsidiaries		2,260,115			626,877			2,395,789			375,952
Other long-term investments related impairment		—			—			—			—
Investment income/(loss)		57,391			27,624			(1,980	)		(311	)
Others, net		9,645			3,969			11,239			1,764
Income before income tax expense		2,294,552			594,980			2,341,074			367,366
Income tax expense		—			—			(7,151	)		(1,122	)
Net income attributable to ordinary shareholders		2,294,552			594,980			2,333,923			366,244
Other comprehensive income：
Foreign currency translation adjustments, net of tax		7,020			10,596			7,965			1,250
Total comprehensive income attributable to ordinary shareholders		2,301,572			605,576			2,341,888			367,494

Condensed Statements of Cash Flows (In thousands)


	For the Year Ended December 31,
	2019			2020			2021
	RMB			RMB			RMB			US$
										Note 2(e)
Net cash (used in)/provided by operating activities		(6,596	)		(53,626	)		14,196			2,228
Cash flows from investing activities:
Cash paid on long–term investments		—			—			(18,868	)		(2,961	)
Proceeds from disposal of long-term investments		9,000			27,754			65,537			10,284
Cash paid on loans to third parties		—			—			(22,317	)		(3,502	)
Net cash used in funds to Group companies		(2,290,814	)		(107,446	)		(15,263	)		(2,395	)
Net cash (used in)/provided by investing activities		(2,281,814	)		(79,692	)		9,089			1,426
Cash flows from financing activities:
Proceeds from receivables from Pre–IPO Series C–1 preferred shareholders		348,264			—			—			—
Proceeds from issuance of convertible notes, net of debt discount		2,096,408			—			—			—
Payment of debt issuance costs		(24,048	)		—			—			—
Payment of initial public offering expenses		—			—			—			—
Exercise of share–based awards		10,968			7,970			7,124			1,118
Net cash provided by financing activities		2,431,592			7,970			7,124			1,118
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(4,140	)		(13,607	)		(29,410	)		(4,615	)
Net increase/(decrease) in cash, cash equivalents and restricted cash		139,042			(138,955	)		999			157
Cash, cash equivalents and restricted cash at beginning of the year		875			139,917			846			133
Effect on the cash and cash equivalents at beginning of the year due to the adoption of ASC 326 (Note 2(g))		—			(116	)		—			—
Cash, cash equivalents and restricted cash at end of the year		139,917			846			1,845			290

Basis of presentation

The Company’s accounting policies are the same as the Group’s accounting policies with the exception of the accounting for the investments in subsidiaries, the VIEs and the VIEs’ subsidiaries.

For the Company only condensed financial information, the Company records its investments in subsidiaries, the VIEs and the VIEs’ subsidiaries under the equity method of accounting as prescribed in ASC 323, Investments—Equity

Method and Joint Ventures. Such investments are presented on the Condensed Balance Sheets as “Investments in subsidiaries, the VIEs and the VIEs’ subsidiaries” and shares in the subsidiaries, the VIEs and the VIEs’ subsidiaries’ income are presented as “Equity in income of subsidiaries, the VIEs and the VIEs’ subsidiaries” on the Condensed Statements of Operations and Comprehensive Income. The parent company only condensed financial information should be read in conjunction with the Group’s consolidated financial statements.

Amounts included in the above disclosure and previously reported for 2019 and 2020 have been revised to correct two errors each of which, in the opinion of management, are immaterial.

The Group revised the balance sheets of the parent company as of December 31, 2020 by a decrease of RMB2,059 million in amounts due from subsidiaries and other related parties, and an increase of RMB2,059 million in the investments in subsidiaries, the VIEs and the VIEs’ subsidiaries.

The Group revised the classification in the cash flow activities of the parent company for the years ended December 31, 2019 and 2020 by a decrease of RMB2,224 million and RMB90 million respectively in cash used in operating activities, and an increase of the same amount in cash used in investing activities. The impact of the errors was eliminated in consolidation. Accordingly, there is no impact on the previously reported consolidated financial position, results of operations or cash flows.

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Basis of Presentation

(a)

Basis of presentation

Out-of-period adjustment

Basis of Consolidation

(b)

Basis of consolidation

The consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIEs and subsidiaries of the VIEs for which the Company is the primary beneficiary.

All transactions and balances among the Company, its subsidiaries, the VIEs and subsidiaries of the VIEs have been eliminated upon consolidation.

VIE Companies (excluding the consolidated Trusts and asset-backed securitized debts as discussed in Note 2(f))

(i)

Contractual agreements with VIEs

(ii)

Risks in relation to the VIE structure

•

revoke the Group’s business and operating licenses;

•

require the Group to discontinue or restrict its operations;

•

restrict the Group’s right to collect revenues;

•

block the Group’s websites;

•

require the Group to restructure its operations, re‑apply for the necessary licenses or relocate the Group’s businesses, staff and assets;

•

impose additional conditions or requirements with which the Group may not be able to comply; or

•

take other regulatory or enforcement actions against the Group that could be harmful to the Group’s business.

Summary of Financial Information of the Consolidated VIEs


		As of December 31,
		2020			2021


	(RMB in thousands)
Consolidating Schedule of Financial Position
ASSETS
Cash and cash equivalents		1,300,220	2,132,402
Restricted cash		1,274,718	1,423,233
Restricted time deposits		509,600	424,678
Financing receivables, net		5,123,309	4,014,102
Loan at fair value		381,393	252,970
Amounts due from Group companies (1)		219,807	58,050
Deposits to insurance companies and guarantee companies		1,066,281	1,378,489
Contract assets, service fees receivable and guarantee receivables		5,103,246	4,661,403
Property, equipment and software, net		58,812	129,769
Land use rights, net and right of use assets		1,056,444	1,096,579
Long‑term investments		435,790	448,886
Other assets		2,219,213	2,675,389
TOTAL ASSETS		18,748,833	18,695,950
LIABILITIES
Amounts due to Group companies (1)		4,930,414	6,452,376
Short‑term borrowings		1,751,633	1,735,931
Funding debts		5,511,749	3,798,233
Deferred guarantee income		694,582	419,843
Contingent guarantee liabilities		1,738,787	928,840
Other liabilities		2,754,100	3,593,686
TOTAL LIABILITIES		17,381,265	16,928,909
Total equity attributable to owners of the company		1,327,568	1,726,848
Non-controlling interests		40,000	40,193
TOTAL SHAREHOLDERS’ EQUITY		1,367,568	1,767,041
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		18,748,833	18,695,950


	For the Year Ended December 31,
	2019			2020			2021
	(RMB in thousands)
Condensed Consolidating Schedule of Results of Operations
Operating revenue:
Third-party revenues		10,603,507			11,579,992			11,091,978
Inter-group revenues (2)		5,210			449			11,429
Total Operating revenue		10,608,717			11,580,441			11,103,407
Operating cost:
Third-party costs		(5,575,251	)		(7,959,095	)		(5,520,994	)
Inter-group costs(2)		(58,469	)		(21,817	)		(1,636	)
Total operating cost		(5,633,720	)		(7,980,912	)		(5,522,630	)
Gross profit		4,974,997			3,599,529			5,580,777
Operating expense:
Third-party expenses		(1,692,792	)		(1,360,975	)		(1,689,151	)
Inter-group expenses(2)		(1,285,727	)		(2,387,176	)		(3,047,627	)
Total operating expenses		(2,978,519	)		(3,748,151	)		(4,736,778	)
Others		11,202			(798,733	)		(369,200	)
Income/(Loss) before income tax		2,007,680			(947,355	)		474,799
Income tax (expenses)/benefits		(316,661	)		131,242			(142,201	)
Net income/(loss)		1,691,019			(816,113	)		332,598
Less: net income attributable to non-controlling interests		—			—			193
Net income/(loss) attributable to ordinary shareholders of the Company		1,691,019			(816,113	)		332,405


	For the Year Ended December 31,
	2019			2020			2021
	(RMB in thousands)
Net cash used in operating activities		(1,250,380	)		(1,750,611	)		(298,268	)
Net cash (used in)/provided by transactions with external parties		(118,606	)		670,707			3,839,254
Net cash used in transactions with inter-group entities for technical service charges and others (3)		(1,131,774	)		(2,421,318	)		(4,137,522	)
Net cash provided by/(used in) investing activities		579,207			(2,190,303	)		622,696
Net cash provided by/(used in) transactions with external parties		763,395			(2,389,743	)		472,228
Net cash (used in)/provided by funds to Group companies (4)		(184,188	)		199,440			150,468
Net cash provided by financing activities		1,006,844			3,720,373			656,269
Net cash provided by/(used in) transactions with external parties		573,227			1,203,610			(1,775,038	)
Net cash provided by funds from Group companies (5)		433,617			2,516,763			2,431,307
Net increase/(decrease) in cash, cash equivalents and restricted cash		335,671			(220,541	)		980,697
Cash, cash equivalents and restricted cash at beginning of the year		2,462,134			2,797,805			2,574,938
Cumulative effect due to the adoption of ASC 326 (Note 2(e))		—			(2,326	)		—
Cash, cash equivalents and restricted cash at end of the year		2,797,805			2,574,938			3,555,635

(1)

(2)

(3)

(4)

(5)

Net cash (used in)/provided by funds from Group companies represent the funds provided by WFOEs to the consolidated VIEs.

Use of Estimates

(c)

Use of estimates

Functional Currency and Foreign Currency Translation

(d)

Functional currency and foreign currency translation

Convenience Translation

(e)

Convenience translation

Presentation for On- and Off-Balance Sheet Loans

(f)

Presentation for on- and off-balance sheet loans

On‑balance sheet loans

(a)

Loans funded by individual investors on Juzi Licai under the Old Model (as defined hereinafter) or certain Institutional Funding Partners

As of December 31, 2020 and 2021, loans funded by the Individual Investors on Juzi Licai under the Old Model were nil.

(b)

Loans funded by establishment of the consolidated Trusts and issuance of asset‑backed securitized debts

Off‑balance sheet loans

(a)

Loans funded by certain Institutional Funding Partners such as third-party commercial banks or consumer finance companies

(b)

Loans funded by the Individual Investors on Juzi Licai under the New Model (as defined hereinafter)

Measurement of financing receivables

(a)

Accrued interest receivable

(b)

Nonaccrual financing receivables and charged‑off financing receivables

Allowance for Credit Losses

(g)

Allowance for credit losses

Before the adoption of Accounting Standards Codification (“ASC”) 326 on January 1, 2020

After the adoption of ASC 326 on January 1, 2020

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:


(RMB in thousands)	As of December 31, 2019				Adjustments due to the adoption of ASC 326				As of January 1, 2020
Assets
Cash and cash equivalents		2,085,234				(1,465	)			2,083,769
Restricted cash		1,900,392				(1,848	)			1,898,544
Restricted time deposits		1,966,643				(1,921	)			1,964,722
Financing receivables, net		4,411,488				(229,661	)			4,181,827
Accrued interest receivable, net		54,284				(1,681	)			52,603
Guarantee receivables, net		1,464,977				(40,388	)			1,424,589
Prepaid expenses and other current assets		1,324,924				(12,077	)			1,312,847
Deposits to insurance companies and guarantee companies		1,251,003				(3,060	)			1,247,943
Contract assets and service fees receivable, net		3,454,851				(26,045	)			3,428,806
Other assets		454,421				(2,466	)			451,955
Long-term investments		511,605				(3,588	)			508,017
Liabilities
Guarantee liabilities(1)	(1,726,368)			(2)		1,726,368				—
Deferred guarantee income(1)		—			(1,481,814)			(2)		(1,481,814	)
Contingent guarantee liabilities(1)		—			(2,214,128)			(2)		(2,214,128	)
Total impact to allowance for credit losses						(2,293,774	)
Deferred tax assets		157,138				78,803				235,941
Deferred tax liabilities		(309,646	)			296,471				(13,175	)
Total retained earnings impact						(1,918,500	)

Funding Debts

(h)

Funding debts

Accrued Interest Payable

(i)

Accrued interest payable

Accrued interest payable is calculated based on the contractual interest rates of funding debts and convertible notes.

Guarantee Receivables and Liabilities

(j)

Guarantee receivables and liabilities

Before the adoption of ASC 326 on January 1, 2020

After the adoption of ASC 326 on January 1, 2020

The following table sets forth the activities of the Group’s obligations associated with the guarantee liabilities for the year ended December 31, 2019 prior to the adoption of ASC 326:


	For the year ended December 31, 2019
	(RMB in thousands)
Opening balances		456,276
Fair value of guarantee liabilities at inception of new loans		1,024,331
Release of guarantee liabilities upon the Borrowers’ repayment		(424,962	)
Transfer from guarantee previously accounted for as derivatives*		1,325,935
Contingent liability		179,417
Payouts during the period		(2,926,080	)
Recoveries during the period		2,091,451
Ending balances		1,726,368

The following table sets forth the activities of the Group’s obligations associated with the deferred guarantee income for the years ended December 31, 2020 and 2021 after the adoption of ASC 326:


	For the Year Ended December 31, 2020			For the Year Ended December 31, 2021
	(RMB in thousands)
Opening balances		-			694,582
Cumulative effect due to the adoption of ASC 326 (Note 2(g))		1,481,814			—
Fair value of deferred guarantee income at inception of new loans		1,532,461			499,805
Release of deferred guarantee income		(2,319,693	)		(774,544	)
Ending balances		694,582			419,843


	For the Year Ended December 31, 2020			For the Year Ended December 31, 2021
	(RMB in thousands)
Opening balances		—			1,738,787
Cumulative effect due to the adoption of ASC 326 (Note 2(g))		2,214,128			—
Provision for credit losses of contingent liabilities of guarantee		2,880,590			622,438
Net cash payout		(3,355,931	)		(1,432,385	)
Ending balances		1,738,787			928,840

Loans at Fair Value

(k)

Loans at fair value

Guarantee Derivatives

(l)

Guarantee derivatives

Revenue Recognition

(m)

Revenue recognition

The Group’s revenue recognition policies under ASC 606 are as follows:

Online direct sales and services

Online direct sales

The financing receivables initially generated from online direct sales may be subsequently funded with the proceeds from on- or off-balance sheet loans as discussed in Note 2(f).

Membership services

Other services

Credit-oriented services and platform-based services

Loan facilitation and servicing fees – overall

Revenues from loan facilitation and matching and post-origination services

Revenues from Investment Program management services

Loan facilitation and servicing fees – credit oriented

Loan facilitation and servicing fees – performance based

Loan facilitation and servicing fees – volume based

For the off-balance sheet loans funded by certain other Institutional Funding Partners, where the Group does not provide guarantee services and takes no credit risks of Borrowers in respect of principal and interests due to the lenders, the Group charges the service fees at predetermined rates of amount of loan originations upon successful matching of borrowing requests, and records revenue earned from such loans as “Loan facilitation and servicing fees-volume based.”

Interest and financial services income and other revenues

The Group generates interest and financial services income and other revenues from its financing receivables.

Customer incentives

Contract balances

Remaining performance obligations

Practical expedients

The Group has used the following practical expedients as allowed under ASC 606:

The remaining performance obligation has not been disclosed when the performance obligation is part of a contract that has an original duration of one year or less.

Disaggregation of revenues within the scope of ASC 606

The following table presents the Group’s operating revenue within the scope of ASC 606 disaggregated by revenue sources:


	For the Year Ended December 31,
	2019		2020		2021
	(RMB in thousands)
Online direct sales and services income:
Online direct sales		3,623,991		1,900,835		1,661,156
Membership services		112,558		113,107		107,901
Other services		92,292		68,890		86,304
Total		3,828,841		2,082,832		1,855,361


	2019		2020		2021
	(RMB in thousands)
Credit-oriented services income
Loan facilitation and matching service fees-credit oriented		3,868,044		2,628,941		3,120,892
Post-origination service fees-credit oriented		643,399		1,087,567		1,327,452
Investment Program management service fees-credit oriented		300,425		70,488		—
Total		4,811,868		3,786,996		4,448,344


-	2019		2020		2021
	(RMB in thousands)
Platform-based services income:
Loan facilitation and matching service fees-performance based		556,143		1,656,998		1,727,794
Post-origination service fees-performance based		92,373		273,837		561,658
Loan facilitation and servicing fees-volume based		167,458		106,007		279,902
Total		815,974		2,036,842		2,569,354

The following table presents the Group’s operating revenue within the scope of ASC 606 disaggregated by timing of revenue recognition:


	For the Year Ended December 31,
	2019		2020		2021
	(RMB in thousands)
Revenues recognized at point-in-time		8,307,928		6,361,671		6,876,048
Revenues recognized over time		1,148,755		1,544,999		1,997,011
Total		9,456,683		7,906,670		8,873,059

Cash and Cash Equivalents

(n)

Cash and cash equivalents

Restricted Cash

(o)

Restricted cash

Restricted Time Deposits

(p)

Restricted time deposits

Inventories, Net

(q)

Inventories, net

Long-Term Investments

(r)

Long-term investments

Equity investments accounted for using the measurement alternative

Equity investments accounted for using the equity method

Debt investment

Property, Equipment and Software, Net

(s)

Property, equipment and software, net


Category	Estimated Useful Lives
Computers and equipment	3 years
Furniture and fixtures	4 ‑ 5 years
Leasehold improvement	Over the shorter of the expected life of leasehold improvement or the lease term
Software	3 ‑ 10 years

Land Use Rights, Net

(t)

Land use rights, net

Impairment of Long-Lived Assets

(u)

Impairment of long‑lived assets

Fair Value Measurements

(v)

Fair value measurements

Financial instruments

•

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 asset 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.

Fair value measurements on a recurring basis

Fair value measurements on a non-recurring basis

Cost of Sales

(w)

Cost of sales

Funding Cost

(x)

Funding cost

Processing and Servicing Cost

(y)

Processing and servicing cost

Sales and Marketing Expenses

(z)

Sales and marketing expenses

Research and Development Expenses

(aa)

Research and development expenses

General and Administrative Expenses

(bb)

General and administrative expenses

Leases

(cc)

Leases

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


	For the Year ended December 31, 2021
	RMB in thousands
2022		55,088
2023		45,155
2024		41,129
2025 and thereafter		71,585
Total future lease payments		212,957
Impact of discounting remaining lease payments		(21,924	)
Total lease liabilities		191,033
- Short-term portion		53,644
- Long-term portion		137,389


	For the Year ended December 31, 2021
	RMB in thousands
Cash payments for operating leases		60,620
Right-of-use assets obtained in exchange for operating lease liabilities		172,603

Share-Based Compensation

(dd)

Share‑based compensation

Stock options and restricted share units granted generally vest over four years.

Taxation

(ee)

Taxation

Income tax

Current income tax is provided for in accordance with the laws of the relevant tax jurisdictions.

Uncertain tax positions

Net Income Per Share

(ff)

Net income per share

Segment Reporting

(gg)

Segment reporting

Statutory Reserves

(hh)

Statutory reserves

The Company’s subsidiaries, the VIEs and the VIEs’ subsidiaries established in the PRC are required to make appropriations to certain non‑distributable reserve funds.

Significant Risks and Uncertainties

(ii)

Significant risks and uncertainties

Foreign currency risk

Operation and compliance risk

Concentration of credit risk

Concentration of customers, suppliers, and funding partners


	As of December 31,
	2020			2021
Inventory supplier A		16.9	%		16.6	%
Inventory supplier B		16.8	%	*
Inventory supplier C		10.7	%		—
Inventory supplier D		24.4	%		16.6	%
Inventory supplier E		—			11.9	%

* Less than 10%.


	As of December 31,
	2020			2021
Institutional Funding Partner A		21.4	%		16.3	%
Institutional Funding Partner B	*				23.0	%

There was one, two and one Institutional Funding Partner that accounted for more than 10% of the Group’s origination of off-balance sheet loans for the year ended December 31, 2019, 2020 and 2021.


	As of December 31,
	2020			2021
Guarantee Company A		13.6	%		16.8	%
Guarantee Company B		19.6	%		16.4	%
Insurance Company C		18.8	%	*
Guarantee Company D		12.6	%	*

* Less than 10%.

Impact of COVID-19

Recent Accounting Pronouncements

(jj)

Recent accounting pronouncements

Other accounting standards that we adopted beginning January 1, 2021 did not have a significant impact on our consolidated financial statements.

Organization and Principal Activities (Tables)

12 Months Ended

Dec. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Percentage of Ownership in Principal Subsidiaries, Consolidated VIEs and Subsidiaries of VIEs

As of December 31, 2021, the Company’s principal subsidiaries, consolidated VIEs and subsidiaries of the VIEs are as follows:


	Date of Incorporation/ Establishment	Place of Incorporation/ Establishment	Percentage of Direct or Indirect Economic Interest	Principal Activities
Subsidiaries
Installment (HK) Investment Limited (“Installment HK”)	December 9, 2013	Hong Kong, PRC	100%	Investment holding
Beijing Shijitong Technology Co., Ltd. (“Beijing Shijitong”)	July 1, 2014	Beijing, PRC	100%	Technical support and consulting services
Shenzhen Lexin Software Technology Co., Ltd. (“Shenzhen Lexin Software”)	March 1, 2017	Shenzhen, PRC	100%	Software development
VIEs
Beijing Lejiaxin Network Technology Co., Ltd. (“Beijing Lejiaxin”)	October 25, 2013	Beijing, PRC	100%	Investment holding
Shenzhen Xinjie Investment Co., Ltd. (“Shenzhen Xinjie”)	December 22, 2015	Shenzhen, PRC	100%	Investment holding
Shenzhen Qianhai Dingsheng Data Technology Co., Ltd. (“Qianhai Dingsheng”)	January 13, 2016	Shenzhen, PRC	100%	Financial technology services
Shenzhen Mengtian Technology Co., Ltd. (“Mengtian Technology”)	August 9, 2016	Shenzhen, PRC	100%	Software development
Beihai Super Egg E-Commerce Co., Ltd. (“Beihai Super Egg”)	May 31, 2018	Beihai, PRC	100%	Investment holding
Subsidiaries of the VIEs
Shenzhen Fenqile Network Technology Co., Ltd. (“Shenzhen Fenqile”)	August 15, 2013	Shenzhen, PRC	100%	Online direct sales and online consumer finance
Shenzhen Beizhipiji Technology Co., Ltd. ("Beizhipiji")	June 26, 2014	Shenzhen, PRC	100%	Online investment platform
Ji’an Fenqile Network Microcredit Co., Ltd. (“Ji’an Microcredit”)	December 2, 2016	Ji’an, PRC	100%	Online consumer credit
Shenzhen Fenqile Trading Co., Ltd. (“Shenzhen Fenqile Trading”)	December 30, 2016	Shenzhen, PRC	100%	Online direct sales
Shenzhen Dingsheng Computer Technology Co., Ltd. (“Shenzhen Dingsheng Technology”)	March 23, 2017	Shenzhen, PRC	100%	Financial technology services
Shenzhen Lexin Financing Guarantee Co., Ltd. (“Shenzhen Lexin Financing Guarantee”)	September 14, 2017	Shenzhen, PRC	100%	Financing guarantee services
Beihai Aurora Technology Co., Ltd. (“Beihai Aurora”)	June 19, 2018	Beihai, PRC	100%	Financial technology services
Beihai Turing Technology Co., Ltd. ("Beihai Turing")	June 11, 2018	Beihai, PRC	100%	Financial technology services
Ganjiang New Area Mengtian Financing Guarantee Co., Ltd.	October 24, 2019	Ganjiang, PRC	100%	Financing guarantee services

Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of the Assets, Liabilities, Results of Operations and Changes in Cash and Cash Equivalents and Restricted Cash of the VIEs and their Subsidiaries


		As of December 31,
		2020			2021


	(RMB in thousands)
Consolidating Schedule of Financial Position
ASSETS
Cash and cash equivalents		1,300,220	2,132,402
Restricted cash		1,274,718	1,423,233
Restricted time deposits		509,600	424,678
Financing receivables, net		5,123,309	4,014,102
Loan at fair value		381,393	252,970
Amounts due from Group companies (1)		219,807	58,050
Deposits to insurance companies and guarantee companies		1,066,281	1,378,489
Contract assets, service fees receivable and guarantee receivables		5,103,246	4,661,403
Property, equipment and software, net		58,812	129,769
Land use rights, net and right of use assets		1,056,444	1,096,579
Long‑term investments		435,790	448,886
Other assets		2,219,213	2,675,389
TOTAL ASSETS		18,748,833	18,695,950
LIABILITIES
Amounts due to Group companies (1)		4,930,414	6,452,376
Short‑term borrowings		1,751,633	1,735,931
Funding debts		5,511,749	3,798,233
Deferred guarantee income		694,582	419,843
Contingent guarantee liabilities		1,738,787	928,840
Other liabilities		2,754,100	3,593,686
TOTAL LIABILITIES		17,381,265	16,928,909
Total equity attributable to owners of the company		1,327,568	1,726,848
Non-controlling interests		40,000	40,193
TOTAL SHAREHOLDERS’ EQUITY		1,367,568	1,767,041
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		18,748,833	18,695,950


	For the Year Ended December 31,
	2019			2020			2021
	(RMB in thousands)
Condensed Consolidating Schedule of Results of Operations
Operating revenue:
Third-party revenues		10,603,507			11,579,992			11,091,978
Inter-group revenues (2)		5,210			449			11,429
Total Operating revenue		10,608,717			11,580,441			11,103,407
Operating cost:
Third-party costs		(5,575,251	)		(7,959,095	)		(5,520,994	)
Inter-group costs(2)		(58,469	)		(21,817	)		(1,636	)
Total operating cost		(5,633,720	)		(7,980,912	)		(5,522,630	)
Gross profit		4,974,997			3,599,529			5,580,777
Operating expense:
Third-party expenses		(1,692,792	)		(1,360,975	)		(1,689,151	)
Inter-group expenses(2)		(1,285,727	)		(2,387,176	)		(3,047,627	)
Total operating expenses		(2,978,519	)		(3,748,151	)		(4,736,778	)
Others		11,202			(798,733	)		(369,200	)
Income/(Loss) before income tax		2,007,680			(947,355	)		474,799
Income tax (expenses)/benefits		(316,661	)		131,242			(142,201	)
Net income/(loss)		1,691,019			(816,113	)		332,598
Less: net income attributable to non-controlling interests		—			—			193
Net income/(loss) attributable to ordinary shareholders of the Company		1,691,019			(816,113	)		332,405


	For the Year Ended December 31,
	2019			2020			2021
	(RMB in thousands)
Net cash used in operating activities		(1,250,380	)		(1,750,611	)		(298,268	)
Net cash (used in)/provided by transactions with external parties		(118,606	)		670,707			3,839,254
Net cash used in transactions with inter-group entities for technical service charges and others (3)		(1,131,774	)		(2,421,318	)		(4,137,522	)
Net cash provided by/(used in) investing activities		579,207			(2,190,303	)		622,696
Net cash provided by/(used in) transactions with external parties		763,395			(2,389,743	)		472,228
Net cash (used in)/provided by funds to Group companies (4)		(184,188	)		199,440			150,468
Net cash provided by financing activities		1,006,844			3,720,373			656,269
Net cash provided by/(used in) transactions with external parties		573,227			1,203,610			(1,775,038	)
Net cash provided by funds from Group companies (5)		433,617			2,516,763			2,431,307
Net increase/(decrease) in cash, cash equivalents and restricted cash		335,671			(220,541	)		980,697
Cash, cash equivalents and restricted cash at beginning of the year		2,462,134			2,797,805			2,574,938
Cumulative effect due to the adoption of ASC 326 (Note 2(e))		—			(2,326	)		—
Cash, cash equivalents and restricted cash at end of the year		2,797,805			2,574,938			3,555,635

Schedule of Obligations Associated with Guarantee Liabilities Prior to Adoption of ASC 326

The following table sets forth the activities of the Group’s obligations associated with the guarantee liabilities for the year ended December 31, 2019 prior to the adoption of ASC 326:


	For the year ended December 31, 2019
	(RMB in thousands)
Opening balances		456,276
Fair value of guarantee liabilities at inception of new loans		1,024,331
Release of guarantee liabilities upon the Borrowers’ repayment		(424,962	)
Transfer from guarantee previously accounted for as derivatives*		1,325,935
Contingent liability		179,417
Payouts during the period		(2,926,080	)
Recoveries during the period		2,091,451
Ending balances		1,726,368

Schedule of Obligations Associated with Deferred Guarantee Income After Adoption of ASC 326

The following table sets forth the activities of the Group’s obligations associated with the deferred guarantee income for the years ended December 31, 2020 and 2021 after the adoption of ASC 326:


	For the Year Ended December 31, 2020			For the Year Ended December 31, 2021
	(RMB in thousands)
Opening balances		-			694,582
Cumulative effect due to the adoption of ASC 326 (Note 2(g))		1,481,814			—
Fair value of deferred guarantee income at inception of new loans		1,532,461			499,805
Release of deferred guarantee income		(2,319,693	)		(774,544	)
Ending balances		694,582			419,843

Schedule of Obligations Associated with Contingent Guarantee Liabilities After Adoption of ASC 326


	For the Year Ended December 31, 2020			For the Year Ended December 31, 2021
	(RMB in thousands)
Opening balances		—			1,738,787
Cumulative effect due to the adoption of ASC 326 (Note 2(g))		2,214,128			—
Provision for credit losses of contingent liabilities of guarantee		2,880,590			622,438
Net cash payout		(3,355,931	)		(1,432,385	)
Ending balances		1,738,787			928,840

Schedule of Operating Revenue Within Scope of ASC 606 Disaggregated by Revenue Sources

The following table presents the Group’s operating revenue within the scope of ASC 606 disaggregated by revenue sources:


	For the Year Ended December 31,
	2019		2020		2021
	(RMB in thousands)
Online direct sales and services income:
Online direct sales		3,623,991		1,900,835		1,661,156
Membership services		112,558		113,107		107,901
Other services		92,292		68,890		86,304
Total		3,828,841		2,082,832		1,855,361


	2019		2020		2021
	(RMB in thousands)
Credit-oriented services income
Loan facilitation and matching service fees-credit oriented		3,868,044		2,628,941		3,120,892
Post-origination service fees-credit oriented		643,399		1,087,567		1,327,452
Investment Program management service fees-credit oriented		300,425		70,488		—
Total		4,811,868		3,786,996		4,448,344


-	2019		2020		2021
	(RMB in thousands)
Platform-based services income:
Loan facilitation and matching service fees-performance based		556,143		1,656,998		1,727,794
Post-origination service fees-performance based		92,373		273,837		561,658
Loan facilitation and servicing fees-volume based		167,458		106,007		279,902
Total		815,974		2,036,842		2,569,354

Schedule of Operating Revenue Within Scope of ASC 606 Disaggregated by Revenue Timing

The following table presents the Group’s operating revenue within the scope of ASC 606 disaggregated by timing of revenue recognition:


	For the Year Ended December 31,
	2019		2020		2021
	(RMB in thousands)
Revenues recognized at point-in-time		8,307,928		6,361,671		6,876,048
Revenues recognized over time		1,148,755		1,544,999		1,997,011
Total		9,456,683		7,906,670		8,873,059

Schedule of Estimated Useful Lives


Category	Estimated Useful Lives
Computers and equipment	3 years
Furniture and fixtures	4 ‑ 5 years
Leasehold improvement	Over the shorter of the expected life of leasehold improvement or the lease term
Software	3 ‑ 10 years

Schedule of Future Minimum Lease Payments under Non Cancelable Operating Leases - ASC 842

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


	For the Year ended December 31, 2021
	RMB in thousands
2022		55,088
2023		45,155
2024		41,129
2025 and thereafter		71,585
Total future lease payments		212,957
Impact of discounting remaining lease payments		(21,924	)
Total lease liabilities		191,033
- Short-term portion		53,644
- Long-term portion		137,389

Schedule of Supplemental Cash Flow Information Related to Operating Leases


	For the Year ended December 31, 2021
	RMB in thousands
Cash payments for operating leases		60,620
Right-of-use assets obtained in exchange for operating lease liabilities		172,603

Inventory Supplier | Supplier Concentration Risk

Schedule of Concentration Risk

Four and three suppliers accounted for more than 10% of the Group’s accounts payable as of December 31, 2020 and 2021, respectively, as follows:


	As of December 31,
	2020			2021
Inventory supplier A		16.9	%		16.6	%
Inventory supplier B		16.8	%	*
Inventory supplier C		10.7	%		—
Inventory supplier D		24.4	%		16.6	%
Inventory supplier E		—			11.9	%

* Less than 10%.

Long Term Funding Debt | Lender Concentration Risk

Schedule of Concentration Risk

Institutional Funding Partners accounted for more than 10% of the Group’s funding debts as of December 31, 2020 and 2021 respectively as follows:


	As of December 31,
	2020			2021
Institutional Funding Partner A		21.4	%		16.3	%
Institutional Funding Partner B	*				23.0	%

Deposits to Insurance and Guarantee Companies | Deposits Concentration Risk

Schedule of Concentration Risk

As of December 31, 2021, two guarantee companies accounted for more than 10% of the Group’s deposits to insurance companies and guarantee companies.


	As of December 31,
	2020			2021
Guarantee Company A		13.6	%		16.8	%
Guarantee Company B		19.6	%		16.4	%
Insurance Company C		18.8	%	*
Guarantee Company D		12.6	%	*

* Less than 10%.

ASC 326

Schedule of Cumulative Effect of Changes on Consolidated Balance Sheet Due to Adoption of ASC 326

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:


(RMB in thousands)	As of December 31, 2019				Adjustments due to the adoption of ASC 326				As of January 1, 2020
Assets
Cash and cash equivalents		2,085,234				(1,465	)			2,083,769
Restricted cash		1,900,392				(1,848	)			1,898,544
Restricted time deposits		1,966,643				(1,921	)			1,964,722
Financing receivables, net		4,411,488				(229,661	)			4,181,827
Accrued interest receivable, net		54,284				(1,681	)			52,603
Guarantee receivables, net		1,464,977				(40,388	)			1,424,589
Prepaid expenses and other current assets		1,324,924				(12,077	)			1,312,847
Deposits to insurance companies and guarantee companies		1,251,003				(3,060	)			1,247,943
Contract assets and service fees receivable, net		3,454,851				(26,045	)			3,428,806
Other assets		454,421				(2,466	)			451,955
Long-term investments		511,605				(3,588	)			508,017
Liabilities
Guarantee liabilities(1)	(1,726,368)			(2)		1,726,368				—
Deferred guarantee income(1)		—			(1,481,814)			(2)		(1,481,814	)
Contingent guarantee liabilities(1)		—			(2,214,128)			(2)		(2,214,128	)
Total impact to allowance for credit losses						(2,293,774	)
Deferred tax assets		157,138				78,803				235,941
Deferred tax liabilities		(309,646	)			296,471				(13,175	)
Total retained earnings impact						(1,918,500	)

Financing Receivables, Net (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Financing Receivables, Net

Financing receivables, net as of December 31, 2020 and 2021 consisted of the followings:


	As of December 31,
	2020			2021
	(RMB in thousands)
Short-term:
Installment purchase loans		457,407			300,999
Personal installment loans		4,969,154			3,779,317
Total short-term financing receivables		5,426,561			4,080,316
Allowance for credit losses		(508,013	)		(307,341	)


Total short-term financing receivables, net	4,918,548		3,772,975
Long-term:
Installment purchase loans	127,265		93,754
Personal installment loans	98,645		166,896
Total long-term financing receivables	225,910		260,650
Allowance for credit losses	(21,149	)	(19,523	)
Total long-term financing receivables, net	204,761		241,127

Summary of Balances of Financing Receivables by Due Date

The following table summarizes the balances of financing receivables by due date as of December 31, 2020 and 2021:


	As of December 31,
	2020		2021
	(RMB in thousands)
Due in months
0 - 12		5,426,561		4,080,316
13 - 24		182,107		229,900
25 - 36		23,388		22,615
Thereafter		20,415		8,135
Total financing receivables		5,652,471		4,340,966

Summary of Activities in Allowance for Credit Losses

The activities in the allowance for credit losses of financing receivables for the years ended December 31, 2019, 2020 and 2021, respectively, consisted of the following:


	For the year ended December 31,
	2019			2020			2021
	(RMB in thousands)
Beginning balances		(384,036	)		(373,545	)		(529,162	)
Cumulative effect due to the adoption of ASC 326 (Note 2(g))		—			(229,661	)		—
Provision for credit losses		(708,684	)		(779,235	)		(401,417	)
Charge-offs		815,421			1,078,705			913,940
Recoveries from prior charge-offs		(96,246	)		(225,426	)		(310,225	)
Ending balances		(373,545	)		(529,162	)		(326,864	)

Summary of Aging Analysis of Past Due Financing Receivables

Aging analysis of past due financing receivables as of December 31, 2020 and 2021 are as follows:


RMB in thousands	1 - 29 Days Past Due		30 - 59 Days Past Due		60 - 89 Days Past Due		90 - 179 Days Past Due		180 Days or Greater Past Due		Total Past Due		Current		Total
Installment purchase loans		7,086		4,508		3,839		11,884		—		27,317		557,355		584,672
Personal installment loans		152,523		74,396		54,217		165,982		—		447,118		4,620,681		5,067,799
December 31, 2020		159,609		78,904		58,056		177,866		—		474,435		5,178,036		5,652,471
Installment purchase loans		6,965		3,763		2,698		5,784		-		19,210		375,543		394,753
Personal installment loans		132,538		35,583		26,405		70,910		-		265,436		3,680,777		3,946,213
December 31, 2021		139,503		39,346		29,103		76,694		-		284,646		4,056,320		4,340,966

Summary of Amortized Cost within Each Credit Quality Indicator by Year of Origination for Five Origination Years and Beyond


	Loans originated in
RMB in thousands	1 - 29 Days Past Due		30 - 59 Days Past Due		60 - 89 Days Past Due		90 - 179 Days Past Due		180 Days or Greater Past Due		Total Past Due		Current		Total
Installment purchase loans
2017 and before		—		—		—		—		—		—		—		—
2018		2		5		5		33		—		45		1		46
2019		412		210		182		616		—		1,420		19,735		21,155
2020		1,519		855		816		2,445		—		5,635		72,540		78,175
2021		5,032		2,693		1,695		2,690		—		12,110		283,267		295,377
Total Installment purchase loans		6,965		3,763		2,698		5,784		—		19,210		375,543		394,753
Personal installment loans
2017 and before		—		—		—		—		—		—		—		—
2018		2		4		7		43		—		56		9		65
2019		757		365		295		1,177		—		2,594		23,504		26,098
2020		1,275		922		1,182		6,217		—		9,596		26,182		35,778
2021		130,504		34,292		24,921		63,473		—		253,190		3,631,082		3,884,272
Total Personal installment loans		132,538		35,583		26,405		70,910		—		265,436		3,680,777		3,946,213

Contract Assets and Service Fees Receivable, Net and Guarantee Receivables, Net (Tables)

12 Months Ended

Dec. 31, 2021

Accounts Receivable, after Allowance for Credit Loss [Abstract]

Schedule of Contract Assets, Service Fees Receivable, and Guarantee Receivables

The following table provides information about the Group’s contract assets and service fees receivable and guarantee receivables with its customers:


	As of December 31,
	2020			2021
	(RMB in thousands)
Short-term:
Contract assets		2,964,670			3,121,477
Allowance for credit losses of contract assets		(22,923	)		(79,375	)
Contract assets, net		2,941,747			3,042,102
Service fees receivable		808,586			1,008,484
Allowance for credit losses of service fees receivable		(42,684	)		(107,886	)
Service fees receivable, net		765,902			900,598
Guarantee receivables		814,968			564,955
Allowance for credit losses of guarantee receivables		(58,771	)		(21,006	)
Guarantee receivables, net		756,197			543,949
Long-term:
Contract assets		500,959			279,645
Allowance for credit losses of contract assets		(18,970	)		(34,973	)
Contract assets, net		481,989			244,672
Guarantee receivables		235,648			105,623
Allowance for credit losses of guarantee receivables		(16,994	)		(4,061	)
Guarantee receivables, net		218,654			101,562

Schedule of Activities in the Allowance for Credit Losses


	For the Year Ended December 31,
	2019			2020			2021
				(RMB in thousands)
Beginning balances		(54,058	)		(148,322	)		(160,342	)
Cumulative effect due to the adoption of ASC 326 (Note 2(g))	—				(66,433	)		—
Provisions		(153,176	)		(441,805	)		(531,237	)
Charge-offs		68,072			529,380			523,613
Recoveries from prior charge-offs		(9,160	)		(33,162	)		(79,335	)
Ending balances		(148,322	)		(160,342	)		(247,301	)

Prepaid Expenses and Other Current Assets (Tables)

12 Months Ended

Dec. 31, 2021

Prepaid Expense and Other Assets, Current [Abstract]

Schedule of Prepaid Expenses and Other Current Assets


	As of December 31,
	2020		2021
	(RMB in thousands)
Receivables from third-party payment service providers (i)		587,168		628,611
Deposits to Institutional Funding Partners (ii)		288,215		208,409
Prepayment to inventory suppliers		59,586		33,976
Prepaid input value-added tax		33,695		20,504
Staff advances		12,694		8,071
Rental deposits and other current assets		23,487		41,579
Total prepaid expenses and other current assets		1,004,845		941,150

(i)

(ii)

The balances represent deposits made to the Institutional Funding Partners to directly satisfy the principal and interest payment obligations in case of Borrowers’ defaults.

Property, Equipment and Software, Net (Tables)

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Schedule of Property, Equipment and Software, Net


	As of December 31,
	2020			2021
	(RMB in thousands)
Computers and equipment		138,188			163,057
Furniture and fixtures		15,539			18,979
Leasehold improvement		56,462			61,577
Software		41,849			83,518
Construction in progress		12,572			59,441
Total property, equipment and software		264,610			386,572
Accumulated depreciation and amortization		(138,916	)		(191,242	)
Total property, equipment and software, net		125,694			195,330

Land Use Rights, Net (Tables)

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Land Use Rights, Net


	2020			2021
	(RMB in thousands)
Gross carrying amount		1,032,000			1,032,000
Accumulated amortization		(31,533	)		(65,933	)
Impairment		—			—
Net carrying amount		1,000,467			966,067

Schedule of Amortization Expenses For Future Periods

As of December 31, 2021, amortization expenses for future periods are estimated to be as follows:


	2021
	(RMB in thousands)
2022		34,400
2023		34,400
2024		34,400
2025		34,400
2026		34,400
Thereafter		794,067
Total expected amortization expenses		966,067

Long-Term Investments (Tables)

12 Months Ended

Dec. 31, 2021

Long-term Investments [Abstract]

Summary of Movement of Carrying Value of Equity Investments Accounted Using Measurement Alternative


	As of December 31,
	2019			2020			2021
	(RMB in thousands)
Long-term investment at the beginning of the year		28,166			344,362			264,151
Addition		266,153			—			16,700
Disposal		(2,796	)		(23,310	)		(67,475	)
Unrealized upward adjustments		51,891			19,059			—
Impairment		—			(69,156	)		—
Foreign currency translation adjustments		948			(6,804	)		(676	)
Long-term investment at the end of the year		344,362			264,151			212,700

Fair Value Measurement (Tables)

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Schedule of Fair Value of Hierarchy For Assets and Liabilities Measured on Recurring Basis

The following table presents the fair value hierarchy for the Group’s assets and liabilities that are measured and recorded at fair value on a recurring basis as of December 31, 2020 and 2021:


December 31, 2020	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Balances at Fair Value
	(RMB in thousands)
Assets
Restricted time deposits		—		1,779,458		—		1,779,458
Loans at fair value		—		—		381,393		381,393
Total assets		—		1,779,458		381,393		2,160,851
Liabilities
Guarantee derivative liabilities		—		—		252,613		252,613
Total liabilities		—		—		252,613		252,613


December 31, 2021	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Balances at Fair Value
	(RMB in thousands)
Assets
Restricted time deposits		—		1,745,898		—		1,745,898
Loans at fair value		—		—		252,970		252,970
Total assets		—		1,745,898		252,970		1,998,868
Liabilities
Guarantee derivative liabilities		—		—		1,473,853		1,473,853
Total liabilities		—		—		1,473,853		1,473,853

Summary of Quantitative Information About The Significant Unobservable Inputs

The following table presents quantitative information about the significant unobservable inputs used for the Group’s Level 3 fair value measurement as of December 31, 2020 and 2021:


		Range of Inputs
		December 31, 2020									December 31, 2021
Financial Instrument	Unobservable Input	Minimum			Maximum			Weighted- Average			Minimum			Maximum			Weighted- Average
Guarantee derivatives	Cumulative loss rates(i)		3.1	%		13.3	%		6.3	%		5.6	%		12.2	%		7.8	%
	Margins on cost of guarantee services		10.0	%		10.0	%		10.0	%		10.0	%		10.0	%		10.0	%
Loans at fair value	Expected future recovery rates(ii)		9.8	%		9.8	%		9.8	%		4.3	%		4.3	%		4.3	%

(i)

Expressed as a percentage of the original principal balance of the loans.

(ii)

Expressed as a percentage of the principal balance of the loans acquired/purchased.

Summary of Activities Related to Fair Value of the Guarantee Derivatives

The following table summarizes the activities related to fair value of the guarantee derivatives:


	For the Year Ended December 31,
	2019			2020			2021
	(RMB in thousands)
Fair value of guarantee derivative liabilities/(assets) at beginning of the year (Level 3)		52,434			(280,998	)		252,613
Cash collection		1,108,398			1,107,646			3,107,316
Net cash payout		(1,151,504	)		(1,281,477	)		(2,344,922	)
Change in fair value(i)		212,256			707,442			458,846
Transfers of financial guarantee contracts (Note2(j))		(502,582	)		—			—
Fair value of guarantee derivative liabilities/(assets) at end of the year (Level 3)		(280,998	)		252,613			1,473,853

(i)

Recognized as “Change in fair value of financial guarantee derivatives, net” on the Consolidated Statements of Operations.

Summary of Activities Related to Fair Value of the Loans Acquired or Purchased

The following table summarizes the activities related to fair value of the loans acquired or purchased:


	For the Year Ended December 31,
	2020			2021
	(RMB in thousands, except for percentages)
Fair value of loans acquired/purchased at beginning of the year (Level 3)		—			381,393
Fair value at inception of loans acquired/purchased		7,067,271			3,851,997
Cash collection		(6,638,596	)		(4,051,776	)
Change in fair value(i)		(47,282	)		111,762
Disposal		—			(40,406	)
Fair value of loans acquired/purchased at end of the year (Level 3)		381,393			252,970

(i)

Recognized as “Change in fair value of loans at fair value” on the Consolidated Statements of Operations.

Schedule of Effect Adverse Change in Derivative Assets and Liabilities

The following table summarizes the effect adverse changes in estimate would have on the fair value of the guarantee derivative assets and liabilities as of December 31, 2020 and 2021, respectively, given hypothetical changes in the cumulative loss rates:


	As of December 31,
	2020			2021
	(RMB in thousands, except for percentages)
Weighted average cumulative loss rates(i)		6.3	%		7.8	%
Increase/(decrease) in fair value of guarantee derivative liabilities if the cumulative loss rates:
Increase by 10% (ii)		188,349			362,221
Decrease by 10% (ii)		(188,349	)		(362,221	)

(i)

Expressed as a percentage of the original principal balance of the loans.

(ii)

Expressed as a percentage of the original cumulative loss rates.

Summary of Effect Adverse Changes in Estimated Fair Value of the Loans

The following table summarizes the effect adverse changes in estimate would have on the fair value of the loans at fair value as of December 31, 2020 and 2021, given hypothetical changes in the expected future recovery rates:


	For the Year Ended December 31,
	2020			2021
	(RMB in thousands, except for percentages)
Weighted average expected future recovery rates(i)		9.8	%		4.3	%
Increase/(decrease) in fair value of loans at fair value if the expected future recovery rates:
Increase by 10% (ii)		38,139			25,297
Decrease by 10% (ii)		(38,139	)		(25,297	)

(i)

Expressed as a percentage of the principal balance of the loans acquired/purchased.

(ii)

Expressed as a percentage of the original expected future recovery rates.

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

Funding Debts (Tables)

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Summary of the Group's Outstanding Funding Debts

The following table summarizes the Group’s outstanding funding debts as of December 31, 2020 and 2021, respectively:


	As of December 31,
	2020		2021
	(RMB in thousands)
Short-term:
Liabilities to funding partners		4,685,935		3,101,381
Total short-term funding debts		4,685,935		3,101,381
Long-term:
Liabilities to funding partners		825,814		696,852
Total long-term funding debts		825,814		696,852

Summary of the Remaining Contractual Maturity Dates of the Group's Funding Debts and Associated Interest Payments

The following table summarizes the contractual maturity dates of the Group’s funding debts and associated interest payments as of December 31, 2021.


	1 - 12 months		13 - 24 months		Total
	(RMB in thousands)
Liabilities to funding partners		3,101,381		696,852		3,798,233
Total funding debts		3,101,381		696,852		3,798,233
Interest payments(i)		247,104		48,012		295,116
Total interest payments		247,104		48,012		295,116

(i)

Interest payments for funding debts with variable interest rates are calculated using the interest rate as of December 31, 2021.

Accrued Expenses and Other Current Liabilities (Tables)

12 Months Ended

Dec. 31, 2021

Payables and Accruals [Abstract]

Schedule of Accrued Expenses and Other Current Liabilities


	As of December 31,
	2020		2021
	(RMB in thousands)
Guarantee derivative liabilities at fair value (Note 9)		252,613		1,473,853
Tax payable		632,006		975,396
Funds payable to Institutional Funding Partners (i)		670,942		425,763
Accrued payroll and welfare		364,500		408,828
Accrued risk management fees		48,993		197,665
Accrued professional fees and outsourcing fees		37,684		68,002
Accrued marketing expenses		78,681		61,193
Short-term leasing liabilities		45,577		53,644
Payable to third‑party sellers		55,704		47,114
Other payable to Individual Investors on Juzi Licai		86,841		30,477
Deferred service fees		51,966		26,737
Security deposits from third‑party sellers		10,718		16,435
Deferred interest and financial services income and others		23,038		9,880
Payable for acquisition of land use rights (ii)		516,000		-
Other accrued expenses		51,084		78,670
Total accrued expenses and other current liabilities		2,926,347		3,873,657

(i)

The payable balances mainly include repayment received from Borrowers but not yet transferred to accounts of Institutional Funding Partners due to the settlement time lag.

(ii)

Related Party Balances and Transactions (Tables)

12 Months Ended

Dec. 31, 2021

The table below sets forth major related parties of the Group and their relationships with the Group:


Entity or individual name		Relationship with the Group
Ji'an Aoxinlian Information Consulting Service Co., Ltd.(“Ji'an Aoxinlian”)		Ji’an Aoxinlian is controlled by the immediate family member of the Group's senior management.
Ji'an Aojuxun Information Consulting Service Co., Ltd.(“Ji'an Aojuxun”)		Ji’an Aojuxun is controlled by the immediate family member of the Group's senior management.
Shenzhen Aileyou Information Technology Co., Ltd.(Aileyou)		Aileyou is an equity investment of the Group.
L.P. Technology Holdings Limited (“L.P.”)		L.P. is an equity investment of the Group.
Individual Director or Officer		Directors or officers of the Group.
JD.com, Inc. and its subsidiaries (“JD Group”) *		JD Group was a shareholder of the Group before January 1, 2020.

Schedule of Significant Related Party Transactions

(i)

Sales of goods and services to related parties


	For the Year Ended December 31,
	2019	2020		2021
	(RMB in thousands)
Sales of goods and services to Aileyou	—		2,087		7,731
Total	—		2,087		7,731

(ii)

Purchase of goods and services from related parties


	For the Year Ended December 31,
	2019		2020		2021
	(RMB in thousands)
Purchases of goods and services from Ji'an Aoxinlian		7,200		20,658		20,493
Purchases of goods and services from Ji'an Aojuxun		2,091		7,987	—
Purchases of goods and services from JD Group		827,574	—		—
Total		836,865		28,645		20,493

Schedule of Amounts Due from Related Parties

(i)

Amounts due from related parties


	As of December 31,
	2020		2021
	(RMB in thousands)
Due from L.P. by the Group		941		6,109
Total		941		6,109

Schedule of Amounts Due to Related Parties

(ii)

Amounts due to related parties


	As of December 31,
	2020		2021
	(RMB in thousands)
Due to individual Director or Officer and his/her immediate family members under investment programs offered by the Group		61,871		15,028
Due to Ji'an Aoxinlian by the Group		4,711		4,790
Due to Aileyou by the Group		932		3,285
Total		67,514		23,102

Taxation (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of Components of Group's (loss)/income Before Income Tax Expense

The components of the Group’s income before income tax expense for the years ended December 31, 2019, 2020 and 2021 are as follows:


	For the Year Ended December 31,
	2019			2020			2021
	(RMB in thousands, except for percentages)
Income before income tax expense		2,706,511			685,609			2,769,534
Income/(Loss) from non-China operations		41,461			15,143			(30,047	)
Income from China operations		2,665,050			670,466			2,799,581
Income tax expense applicable to China operations		411,959			90,629			428,267
Income tax expense applicable to non-China operations		—			—			7,151
Total income tax expense		411,959			90,629			435,418
Effective tax rate for China operations		15.5	%		13.5	%		15.3	%
Effective tax rate for the Group		15.2	%		13.2	%		15.7	%

Schedule of Current and Deferred Portion of Income Tax Expense of Company's China Subsidiaries, VIEs, and Subsidiaries of VIEs

The following table sets forth current and deferred portion of income tax expense of the Company’s China subsidiaries, the VIEs, and subsidiaries of the VIEs:


	For the Year Ended December 31,
	2019		2020			2021
	(RMB in thousands)
Current income tax expense		352,036		594,149			831,675
Deferred income tax expense		59,923		(503,520	)		(396,257	)
Income tax expense		411,959		90,629			435,418

Schedule of Reconciliation Between Statutory EIT Rate and Effective Tax Rate for Group

The following table sets forth reconciliation between the statutory enterprise income tax (“EIT”) rate and the effective tax rate for the Group:


	For the Year Ended December 31,
	2019			2020			2021
Statutory EIT rate		25.0	%		25.0	%		25.0	%
Change of tax position*	—				(2.4	)%		—
Effect of tax holidays		(8.9	)%		(9.6	)%		(10.8	)%
Tax effect of non-deductible expenses		(0.4	)%		1.1	%		0.9	%
Changes in valuation allowance	**				(0.3	)%		0.1	%
Tax rate difference from statutory rate in other jurisdictions and others		(0.5	)%		(0.6	)%		0.5	%
Effective tax rates for the Group		15.2	%		13.2	%		15.7	%

** Less than 0.1%.

Schedule of Effect of Tax Holiday Related to Group

The following table sets forth the effect of tax holiday related to the Group:


	For the Year Ended December 31,
	2019		2020		2021
	(In thousands, except per share amount)
Tax holiday effect		239,732		66,110		299,578
Basic net income per share effect		0.67		0.18		0.81
Diluted net income per share effect		0.64		0.16		0.72

Schedule of Components of Deferred Tax Assets and Deferred Tax Liabilities


	For the Year Ended December 31,
	2020			2021
Deferred tax assets
- Deferred guarantee income and other accrued expenses		477,023			832,412
- Contingent guarantee liabilities		434,697			232,210
- Provision for credit losses		359,293			646,460
- Advertising expenses in excess of deduction limit		54,970			178
- Net operating loss carryforwards		13,649			21,919
Less: valuation allowance		(4,429	)		(6,756	)
Total deferred tax assets		1,335,203			1,726,423
Net deferred tax assets		747,332			1,176,878

The components of the deferred tax liabilities are as follows:


	For the Year Ended December 31,
	2020		2021
Deferred tax liabilities
-Contract assets and service fees receivable		490,204		523,752
-Guarantee receivables		118,713		80,128
Total deferred tax liabilities		608,917		603,880
Net deferred tax liabilities		21,046		54,335

Schedule of Movement of Valuation Allowance


	For the Year Ended December 31,
	2019			2020			2021
Balance at beginning of the year		(6,785	)		(6,662	)		(4,429	)
Additions		(4,255	)		(2,243	)		(2,659	)
Reversals		4,378			4,476			332
Balance at end of the year		(6,662	)		(4,429	)		(6,756	)

Net Income Per Share (Tables)

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Schedule of Computation of Basic and Diluted Net Income Per Share

The following table sets forth the computation of basic and diluted net income per share for the periods indicated:


	For the Year Ended December 31,
	2019		2020		2021
	(RMB in thousands, except for share and per share data)
Basic net income per share calculation:
Numerator:
Net income attributable to ordinary shareholders		2,294,552		594,980		2,333,923
Denominator:
Weighted average number of ordinary shares outstanding—basic		355,625,970		364,733,164		368,460,867
Net income per share attributable to ordinary shareholders—basic		6.45		1.63		6.33
Diluted net income per share calculation:
Numerator:
Net income attributable to ordinary shareholders		2,294,552		594,980		2,333,923
Interest expense associated with convertible notes reversed		14,261		47,781		44,865
Net income attributable to ordinary shareholders for calculating diluted net income per share		2,308,813		642,761		2,378,788
Denominator:
Weighted average number of ordinary shares outstanding—basic		355,625,970		364,733,164		368,460,867
Ordinary shares issuable upon the exercise of outstanding stock options using the treasury stock method		6,470,848		3,255,913		3,381,510
Ordinary shares issuable upon the vesting of outstanding restricted share units using the treasury stock method		1,170,713		383,590		293,196
Ordinary shares issuable upon the conversion of convertible notes using the if—converted method		12,563,600		42,857,143		42,857,143
Weighted average number of ordinary shares outstanding—diluted		375,831,131		411,229,810		414,992,716
Net income per share attributable to ordinary shareholders—diluted		6.14		1.56		5.73

Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Schedule of Share-based Compensation Expenses

Share‑based compensation was recognized in operating cost and expenses for the years ended December 31, 2018, 2020 and 2021 as follows:


	For the Year Ended December 31,
	2019		2020		2021
	(RMB in thousands)
Processing and servicing cost		10,472		11,391		9,968
Sales and marketing expenses		28,611		32,486		30,508
Research and development expenses		42,977		46,116		39,413
General and administrative expenses		95,202		108,832		107,995
Total share‑based compensation expenses		177,262		198,825		187,884

Summary of Number of Shares Available for Issuance

The following table sets forth a summary of the number of shares available for issuance:


	Shares Available
	(In thousands)
December 31, 2018		13,833
Additions		3,512
Granted		(10,849	)
Cancelled/forfeited		1,903
December 31, 2019		8,399
Additions		3,594
Granted		(3,005	)
Cancelled/forfeited		2,539
December 31, 2020		11,527
Additions		3,641
Granted		(13,736	)
Cancelled/forfeited		5,201
December 31, 2021		6,633

Schedule of Activities for Stock Options

The following table sets forth the summary of activities for stock options granted to employees, directors and non-employee directors:


	Options Outstanding			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value
	(In thousands)			US$		(In years)		(RMB in thousands)
December 31, 2018		20,142			1.5164		7.95		353,559
Granted*		5,091			0.5000
Exercised		(7,798	)		0.2548
Cancelled/forfeited		(1,194	)		2.3996
December 31, 2019		16,241			1.7386		8.22		589,871
Granted*		2,829			0.5000
Exercised		(3,140	)		0.2399
Cancelled/forfeited		(2,270	)		2.1589
December 31, 2020		13,660			1.7569		7.87		189,072
Granted*		13,489			0.5000
Exercised		(2,426	)		0.4529
Cancelled/forfeited		(4,594	)		3.2215
December 31, 2021		20,129			0.7227		8.43		155,018
Vested and expected to vest as of December 31, 2021		18,867			0.7355		8.42		143,684
Exercisable as of December 31, 2021		4,447			1.2408		6.53		19,540

* No stock options were granted to non-employee directors for the years presented.

The following table sets forth the summary of activities for stock options granted to non‑employees:


	Options Outstanding			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value
	(In thousands)			US$		(In years)		(RMB in thousands)
December 31, 2018		500			0.0001		8.58		12,439
Granted		—			—		—		—
Exercised		(90	)		0.0001		—		—
Cancelled/forfeited		—			—		—		—
December 31, 2019		410			0.0001		7.58		19,864
Granted		—			—		—		—
Exercised		—			—		—		—
Cancelled/forfeited		—			—		—		—
December 31, 2020		410			0.0001		6.58		8,962
Granted		—			—		—		—
Exercised		(160	)		0.0001		—		—
Cancelled/forfeited		—			—		—		—
December 31, 2021		250			0.0001		5.58		3,076
Vested and expected to vest as of December 31, 2021		250			0.0001		5.58		3,076
Exercisable as of December 31, 2021		250			0.0001		5.58		3,076

Schedule of Estimated Fair Value of Stock Option Granted

the estimated fair value of each stock option granted is estimated on the date of grant using the binomial option-pricing model with the following assumptions:

For the Year Ended December 31,

2019

2020

2021

Expected volatility

41.81%~42.09%

45.25%~48.26%

46.68%~47.79%

Risk-free interest rate (per annum)

1.80%~1.81%

0.67%~0.88%

1.11%~1.64%

Exercise multiples

1.5~2.5

Expected dividend yield

—

Expected term (in years)

Fair value of the underlying shares on the date of grants (US$)

5.02~6.02

3.15~4.15

1.91~6.31

Summary of Activities for Restricted Shares Units

The following table sets forth the summary of activities for restricted share units granted to employees, directors and non-employee directors:


	Shares Outstanding			Weighted Average Grant Date Fair Value
	(In thousands)			US$
December 31, 2018		1,237			7.47
Granted*		5,758			5.10
Vested		(292	)		7.49
Cancelled/forfeited		(709	)		5.78
December 31, 2019		5,994			5.39
Granted*		176			4.27
Vested		(1,527	)		5.43
Cancelled/forfeited		(989	)		5.57
December 31, 2020		3,654			5.27
Granted*		247			3.21
Vested		(1,226	)		5.35
Cancelled forfeited		(607	)		5.12
December 31, 2021		2,068			5.02

* No restricted share units were granted to non-employee directors for the years presented.

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Schedule of the Expected Repayment Amount of the Debt Obligations

The expected repayment amount of the debt obligations are as follows:


	1 – 12 months		13 – 24 months		25 – 36 months		37 – 48 months		49 – 60 months and beyond		Total
	(RMB in thousands)
Funding debts obligations
Liabilities to funding partners		3,101,381		696,852	—		—		—			3,798,233
Interest payments (i)		247,104		48,012	—		—		—			295,116
Total funding debts obligations		3,348,485		744,864		—		—		—		4,093,349
Short–term borrowings		1,799,741	—		—		—		—			1,799,741
Interest payments (i)		40,366	—		—		—		—			40,366
Total short–term borrowings obligations		1,840,107		—		—		—		—		1,840,107
Convertible notes		—		1,912,710		—		—		—		1,912,710
Interest payments (i)		38,254		36,660		—		—		—		74,914
Total convertible notes obligations		38,254		1,949,370		—		—		—		1,987,624
Commitment to purchase delinquent loans (ii)		826,839	—		—		—		—			826,839
Total purchase obligations		826,839		—		—		—		—		826,839

(i)

Interest payments with variable interest rates are calculated using the interest rate as of December 31, 2021.

(ii)

Parent Company Only Condensed Financial Information (Tables)

12 Months Ended

Dec. 31, 2021

Condensed Financial Information Disclosure [Abstract]

Condensed Balance Sheets

Condensed Balance Sheets (In thousands, except for share and per share data)


	As of December 31,
	2020		2021
	RMB		RMB		US$
					Note 2(e)
ASSETS
Current assets
Cash and cash equivalents		846		1,845		290
Amounts due from subsidiaries		371,814		354,241		55,588
Prepaid expenses and other current assets		6,272		28,427		4,461
Total current assets		378,932		384,513		60,339
Non-current assets
Investments in subsidiaries, the VIEs and the VIEs’ subsidiaries		7,004,849		9,563,708		1,500,754
Long-term investments		68,151		—		—
Other assets		—		215		34
Total non-current assets		7,073,000		9,563,923		1,500,788
Total assets		7,451,932		9,948,436		1,561,127
LIABILITIES
Current liabilities
Amounts due to subsidiaries, the VIEs and the VIEs’ subsidiaries		18,264		17,887		2,807
Accrued interest payable		9,233		8,735		1,371
Accrued expenses and other current liabilities		13,470		11,509		1,806
Total current liabilities		40,967		38,131		5,984
Non-current liabilities
Convertible notes		1,920,227		1,882,689		295,435
Total non-current liabilities		1,920,227		1,882,689		295,435
Total liabilities		1,961,194		1,920,820		301,419
Commitments and contingencies (Note 21)

SHAREHOLDERS’ EQUITY:
Class A Ordinary Shares ($0.0001 par value per share; 1,889,352,801 shares authorized, 268,935,832 shares issued, 267,356,928 shares outstanding as of December 31, 2020; 1,889,352,801 shares authorized, 286,430,946 shares issued, 273,270,100 shares outstanding as of December 31, 2021)		176		180		28
Class B Ordinary Shares ($0.0001 par value per share; 110,647,199 shares authorized, 96,727,057 shares issued and outstanding as of December 31, 2020; 110,647,199 shares authorized, 94,465,693 shares issued and outstanding as of December 31, 2021)		58		57		9
Additional paid-in capital		2,724,006		2,918,993		458,054
Accumulated other comprehensive income		3,308		11,273		1,769
Retained earnings		2,763,190		5,097,113		799,848
Total shareholders’ equity		5,490,738		8,027,616		1,259,708
Total liabilities and shareholders’ equity		7,451,932		9,948,436		1,561,127

Condensed Statements of Operations and Comprehensive Income

Condensed Statements of Operations and Comprehensive Income (In thousands)


	For the Year Ended December 31,
	2019			2020			2021
	RMB			RMB			RMB			US$
										Note 2(e)
Operating expenses:
General and administrative expenses		(18,514	)		(15,707	)		(19,109	)		(2,999	)
Total operating expenses		(18,514	)		(15,707	)		(19,109	)		(2,999	)
Interest expense, net		(14,085	)		(47,783	)		(44,865	)		(7,040	)
Income from subsidiaries, the VIEs and the VIEs’ subsidiaries		2,260,115			626,877			2,395,789			375,952
Other long-term investments related impairment		—			—			—			—
Investment income/(loss)		57,391			27,624			(1,980	)		(311	)
Others, net		9,645			3,969			11,239			1,764
Income before income tax expense		2,294,552			594,980			2,341,074			367,366
Income tax expense		—			—			(7,151	)		(1,122	)
Net income attributable to ordinary shareholders		2,294,552			594,980			2,333,923			366,244
Other comprehensive income：
Foreign currency translation adjustments, net of tax		7,020			10,596			7,965			1,250
Total comprehensive income attributable to ordinary shareholders		2,301,572			605,576			2,341,888			367,494

Condensed Statements of Cash Flows

Condensed Statements of Cash Flows (In thousands)


	For the Year Ended December 31,
	2019			2020			2021
	RMB			RMB			RMB			US$
										Note 2(e)
Net cash (used in)/provided by operating activities		(6,596	)		(53,626	)		14,196			2,228
Cash flows from investing activities:
Cash paid on long–term investments		—			—			(18,868	)		(2,961	)
Proceeds from disposal of long-term investments		9,000			27,754			65,537			10,284
Cash paid on loans to third parties		—			—			(22,317	)		(3,502	)
Net cash used in funds to Group companies		(2,290,814	)		(107,446	)		(15,263	)		(2,395	)
Net cash (used in)/provided by investing activities		(2,281,814	)		(79,692	)		9,089			1,426
Cash flows from financing activities:
Proceeds from receivables from Pre–IPO Series C–1 preferred shareholders		348,264			—			—			—
Proceeds from issuance of convertible notes, net of debt discount		2,096,408			—			—			—
Payment of debt issuance costs		(24,048	)		—			—			—
Payment of initial public offering expenses		—			—			—			—
Exercise of share–based awards		10,968			7,970			7,124			1,118
Net cash provided by financing activities		2,431,592			7,970			7,124			1,118
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(4,140	)		(13,607	)		(29,410	)		(4,615	)
Net increase/(decrease) in cash, cash equivalents and restricted cash		139,042			(138,955	)		999			157
Cash, cash equivalents and restricted cash at beginning of the year		875			139,917			846			133
Effect on the cash and cash equivalents at beginning of the year due to the adoption of ASC 326 (Note 2(g))		—			(116	)		—			—
Cash, cash equivalents and restricted cash at end of the year		139,917			846			1,845			290

Organization and Principal Activities - Product Information - Additional Information (Details)	12 Months Ended
	Dec. 31, 2021
Minimum \| Installment Purchase Loans
Product information
Term of the loan	1 month
Minimum \| Personal Installment Loans
Product information
Term of the loan	1 month
Maximum \| Installment Purchase Loans
Product information
Term of the loan	36 months
Maximum \| Personal Installment Loans
Product information
Term of the loan	36 months

Organization and Principal Activities - Schedule of Percentage of Ownership in Principal Subsidiaries, Consolidated VIEs and Subsidiaries of VIEs (Details)	12 Months Ended
	Dec. 31, 2021
Installment HK
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs
Direct or Indirect Economic Interest in Subsidiary (as a percent)	100.00%
Beijing Shijitong
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs
Direct or Indirect Economic Interest in Subsidiary (as a percent)	100.00%
Shenzhen Lexin Software
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs
Direct or Indirect Economic Interest in Subsidiary (as a percent)	100.00%
Shenzhen Fenqile
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs
Direct or Indirect Economic Interest in Subsidiary (as a percent)	100.00%
Beizhipiji
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs
Direct or Indirect Economic Interest in Subsidiary (as a percent)	100.00%
Ji'an Microcredit
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs
Direct or Indirect Economic Interest in Subsidiary (as a percent)	100.00%
Shenzhen Fenqile Trading
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs
Direct or Indirect Economic Interest in Subsidiary (as a percent)	100.00%
Shenzhen Dingsheng Technology
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs
Direct or Indirect Economic Interest in Subsidiary (as a percent)	100.00%
Shenzhen Lexin Financing Guarantee
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs
Direct or Indirect Economic Interest in Subsidiary (as a percent)	100.00%
Beihai Aurora
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs
Direct or Indirect Economic Interest in Subsidiary (as a percent)	100.00%
Beihai Turing
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs
Direct or Indirect Economic Interest in Subsidiary (as a percent)	100.00%
Ganjiang New Area Mengtian Financing Guarantee
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs
Direct or Indirect Economic Interest in Subsidiary (as a percent)	100.00%
Beijing Lejiaxin
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs
Direct or Indirect Economic Interest in VIEs (as a percent)	100.00%
Shenzhen Xinjie
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs
Direct or Indirect Economic Interest in VIEs (as a percent)	100.00%
Qianhai Dingsheng
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs
Direct or Indirect Economic Interest in VIEs (as a percent)	100.00%
Mengtian Technology
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs
Direct or Indirect Economic Interest in VIEs (as a percent)	100.00%
Beihai Super Egg
Schedule of Company's principal subsidiaries, consolidated VIEs and subsidiaries of VIEs
Direct or Indirect Economic Interest in VIEs (as a percent)	100.00%

Organization and Principal Activities - Reorganization (Details) $ / shares in Units, ¥ in Millions, $ in Millions		1 Months Ended					12 Months Ended				37 Months Ended
	Dec. 26, 2017 $ / shares shares	Jun. 30, 2021 shares	Jun. 30, 2018 shares	Jan. 31, 2018 CNY (¥) shares	Jan. 31, 2018 USD ($) $ / shares shares	Nov. 30, 2013 $ / shares shares	Dec. 31, 2021 shares	Dec. 31, 2020 shares	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Jun. 30, 2021 shares
Class Of Stock [Line Items]
Number of new shares issued (in shares) \| shares						125,000,000
Par value of shares \| $ / shares						$ 0.0001
Proceeds from initial public offering, net of issuance costs				¥ 95.1					¥ 651.3	$ 100.1
Class A Ordinary Shares
Class Of Stock [Line Items]
Number of new shares issued (in shares) \| shares		15,000,000	27,000,000				42,000,000	27,000,000			42,000,000
Par value of shares \| $ / shares	$ 0.0001
IPO \| ADS
Class Of Stock [Line Items]
Number of new shares issued (in shares) \| shares	12,000,000			1,800,000	1,800,000
Price per share \| $ / shares	$ 9.00
Proceeds from initial public offering, net of issuance costs				¥ 95.1	$ 14.7
Total gross capital raise				105.2	16.2
Net capital raise				¥ 10.1	$ 1.5
IPO \| Class A Ordinary Shares
Class Of Stock [Line Items]
Number of new shares issued (in shares) \| shares	24,000,000			3,600,000	3,600,000
Par value of shares \| $ / shares					$ 0.0001

Significant Accounting Policies - Additional Information (Details) $ / shares in Units, $ in Thousands		12 Months Ended
	Jan. 01, 2020 CNY (¥)	Dec. 31, 2021 CNY (¥) Item Segment	Dec. 31, 2021 USD ($) Item Segment $ / shares	Dec. 31, 2020 CNY (¥) Item	Dec. 31, 2019 CNY (¥) Item	Dec. 31, 2021 USD ($)	Jan. 01, 2019 CNY (¥)	Dec. 31, 2018 CNY (¥)
Significant Accounting Policies [Line Items]
Operating revenue		¥ 11,380,525,000	$ 1,785,853	¥ 11,645,255,000	¥ 10,603,507,000
Financing receivables		241,127,000		204,761,000		$ 37,838
Contract assets and service fees receivable prior to ASU 326					3,454,851,000
Increase (decrease) in cash flows from operating activities				(3,193,000,000)	49,000,000
Increase (decrease) in cash flows from investing activities				715,000,000	(184,000,000)
Increase (decrease) in cash flows from financing activities				2,478,000,000	135,000,000
Foreign currency translation adjustments, net of tax		¥ 7,965,000	$ 1,250	10,596,000	7,020,000
Translation rate		6.3726				6.3726
Retained earnings		¥ 4,195,791,000		2,113,956,000		$ 658,411
Credit allowance of financial receivable		¥ 326,864,000		529,162,000	373,545,000			¥ 384,036,000
Number of major types of incentive coupons \| Item		2	2
Cash coupons and repayment coupon expense		¥ 200,700,000		196,300,000	281,000,000.0
Referral code incentives recorded as sales and marketing expenses		27,300,000		17,100,000	19,700,000
Revenue recognized that was included in the contract liabilities balance		52,000,000.0		¥ 47,900,000
Practical expedients, contract duration				true
Transaction price allocated to remaining performance obligations related to customer contracts		¥ 903,200,000		¥ 1,101,300,000
Remaining performance obligation is expected to be recognized as revenue (in years)		3 years	3 years
Practical expedients, amortization period				true
Cash equivalents		¥ 0		¥ 0
Straight line basis amortized over land use right period		30 years	30 years
Advertising costs		¥ 1,000,000,000.0		¥ 791,200,000	1,000,000,000.0
Lease, Practical Expedients, Package		true	true	true
Right-of-use assets							¥ 113,200,000
Operating Lease, Right-of-Use Asset, Statement of Financial Position							Other assets
Weighted average remaining lease term		4 years 3 months 18 days				4 years 3 months 18 days
Weighted average discount rate		4.91%				4.91%
Rental expenses under operating leases					54,900,000
Operating lease cost		¥ 59,700,000		¥ 57,900,000
Short-term lease cost		¥ 6,400,000		3,900,000
Vesting period (in years)		4 years	4 years
Exercise Price \| $ / shares			$ 0.0001
Number of reportable segments \| Segment		1	1
Minimum percentage of after-tax profit transferred by Chinese subsidiaries to general reserve fund (as a percent)		10.00%				10.00%
Maximum percentage criteria for appropriation of after-tax profit of Chinese subsidiaries to general reserve fund (as a percent)		50.00%				50.00%
Minimum percentage of after-tax profit transferred by VIEs to statutory surplus fund (as a percent)		10.00%				10.00%
Maximum percentage criteria for in appropriation of after-tax profit by VIEs to certain statutory surplus funds (as a percent)		50.00%				50.00%
Reserves allowed to transfer in terms of cash dividends, loans or advances, nor can they be distributed except under liquidation		¥ 0
Appropriation to statutory reserves		¥ 252,100,000		¥ 296,900,000	¥ 152,100,000
Number of Individual Investor or Institutional Funding Partner that accounted for more than 10% of the Group's total funding cost \| Item		2	2	1	0
Number of institutional funding partners that accounted for more than 10% of the Group's origination of off-balance sheet loans \| Item		1	1	2	1
Number of insurance company accounted for more than 10% of the Group's deposits to insurance companies and guarantee companies \| Item				1
Number of guarantee company accounted for more than 10% of the Group's deposits to insurance companies and guarantee companies \| Item		2	2	3
10% or More of Total Purchases, Number of Suppliers
Significant Accounting Policies [Line Items]
Number of inventory suppliers \| Item		2	2	3	2
10% or More of Accounts Payable, Number of Suppliers
Significant Accounting Policies [Line Items]
Number of inventory suppliers \| Item		3	3	4
Geographic Concentration Risk \| Cash and Cash Equivalents, Restricted Cash and Restricted Time Deposits \| PRC
Significant Accounting Policies [Line Items]
Cash and cash equivalents, restricted cash and restricted time deposits denominated in RMB that are subject to government controls		¥ 5,119,000,000.0		¥ 4,276,900,000
Concentration risk (as a percent)		97.00%	97.00%
Stock Options
Significant Accounting Policies [Line Items]
Vesting period (in years)		4 years	4 years
Restricted Share Units
Significant Accounting Policies [Line Items]
Vesting period (in years)		4 years	4 years
ASC 326
Significant Accounting Policies [Line Items]
Credit allowance of financial receivable					¥ 229,661,000
ASC 326 \| Cumulative Effect Period Of Adoption Adjustment
Significant Accounting Policies [Line Items]
Contract assets and service fees receivable prior to ASU 326	¥ (26,045,000)
Retained earnings	(1,918,500,000)
Credit allowance of financial receivable	2,293,774,000
Cumulative effect on retained earnings, tax	400,000,000
ASC 326 \| Cumulative Effect Period Of Adoption Adjustment \| Application of CECL Methodology on Credit Losses of Financial Assets Measured at Amortized Cost
Significant Accounting Policies [Line Items]
Retained earnings	(300,000,000)
Credit allowance of financial receivable	300,000,000
ASC 326 \| Cumulative Effect Period Of Adoption Adjustment \| Application of CECL Methodology on Certain Off-balance Sheet Credit Exposures
Significant Accounting Policies [Line Items]
Retained earnings	¥ 2,000,000,000.0
ASC 606
Significant Accounting Policies [Line Items]
Change in Accounting Principle, Accounting Standards Update, Adopted [true false]		true				true
ASU 2016-01
Significant Accounting Policies [Line Items]
Change in Accounting Principle, Accounting Standards Update, Adopted [true false]		true				true
Change in Accounting Principle, Accounting Standards Update, Adoption Date		Jan. 01, 2018				Jan. 01, 2018
Minimum
Significant Accounting Policies [Line Items]
Investor period term		7 days	7 days
Maximum
Significant Accounting Policies [Line Items]
Investor period term		24 months	24 months
VIEs
Significant Accounting Policies [Line Items]
Operating revenue		¥ 11,103,407,000		11,580,441,000	10,608,717,000
Contract assets and service fees receivable prior to ASU 326		4,661,403,000		¥ 5,103,246,000
Registered capitals and PRC statutory reserves		¥ 5,848,000,000.0
Beijing Shijitong \| Nominee Shareholders
Significant Accounting Policies [Line Items]
Extension term of the loan		10 years	10 years
Out-of-period Adjustment
Significant Accounting Policies [Line Items]
Financing receivables					63,600,000
Contract assets and service fees receivable prior to ASU 326					2,500,000
Out-of-period Adjustment \| Credit-oriented services income
Significant Accounting Policies [Line Items]
Operating revenue					¥ 66,100,000

Significant Accounting Policies - Summary of Financial Information of the Group's VIEs (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 CNY (¥)	Dec. 31, 2018 CNY (¥)
ASSETS
Cash and cash equivalents	¥ 2,664,132	$ 418,060	¥ 1,563,755	$ 245,387	¥ 2,085,234	¥ 1,148,292
Restricted cash	1,454,682	228,271	1,276,151	$ 200,256	1,900,392	1,348,842
Restricted time deposits	1,745,898	273,969	1,779,458
Financing receivables, net					4,411,488
Loans at fair value	252,970	39,697	381,393
Amounts due from Group companies	6,109		941
Deposits to insurance companies and guarantee companies	1,378,489	216,315	1,066,281		1,251,003
Contract assets, service fees receivable and guarantee receivables					3,454,851
Property, equipment and software, net	195,330	30,652	125,694
Land use rights, net and right of use assets	966,067	151,597	1,000,467
TOTAL ASSETS	21,026,194	3,299,466	20,345,165
Liabilities [Abstract]
Funding debts	3,798,233
Deferred guarantee income	419,843	65,883	694,582
TOTAL LIABILITIES	12,958,385	2,033,452	14,814,427
SHAREHOLDERS’ EQUITY:
Total equity attributable to owners of the company	8,027,616	1,259,708	5,490,738
Non-controlling interests	40,193	6,306	40,000
TOTAL SHAREHOLDERS’ EQUITY	8,067,809	1,266,014	5,530,738		¥ 6,599,539	¥ 4,106,792
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	21,026,194	$ 3,299,466	20,345,165
VIEs
ASSETS
Cash and cash equivalents	2,132,402		1,300,220
Restricted cash	1,423,233		1,274,718
Restricted time deposits	424,678		509,600
Financing receivables, net	4,014,102		5,123,309
Loans at fair value	252,970		381,393
Amounts due from Group companies	58,050		219,807
Deposits to insurance companies and guarantee companies	1,378,489		1,066,281
Contract assets, service fees receivable and guarantee receivables	4,661,403		5,103,246
Property, equipment and software, net	129,769		58,812
Land use rights, net and right of use assets	1,096,579		1,056,444
Long-term investments	448,886		435,790
Other assets	2,675,389		2,219,213
TOTAL ASSETS	18,695,950		18,748,833
Liabilities [Abstract]
Amounts due to Group companies	6,452,376		4,930,414
Short-term borrowings	1,735,931		1,751,633
Funding debts	3,798,233		5,511,749
Deferred guarantee income	419,843		694,582
Contingent guarantee liabilities	928,840		1,738,787
Other liabilities	3,593,686		2,754,100
TOTAL LIABILITIES	16,928,909		17,381,265
SHAREHOLDERS’ EQUITY:
Total equity attributable to owners of the company	1,726,848		1,327,568
Non-controlling interests	40,193		40,000
TOTAL SHAREHOLDERS’ EQUITY	1,767,041		1,367,568
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	¥ 18,695,950		¥ 18,748,833

Significant Accounting Policies - Schedule of the Assets, Liabilities, Results of Operations and Changes in Cash and Cash Equivalents and Restricted Cash of the VIEs and their Subsidiaries (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)	Dec. 31, 2021 USD ($)
Variable Interest Entity [Line Items]
Total assets	¥ 21,026,194		¥ 20,345,165		$ 3,299,466
Total liabilities	12,958,385		14,814,427		$ 2,033,452
Operating revenue:
Operating revenue	11,380,525	$ 1,785,853	11,645,255	¥ 10,603,507
Operating cost:
Operating cost	(5,631,251)	(883,667)	(8,012,187)	(5,609,411)
Gross profit	5,749,274	902,186	3,633,068	4,994,096
Operating expenses:
Total operating expenses	(2,678,851)	(420,370)	(2,199,951)	(2,366,810)
Others	113,480	17,807	146,029	82,422
Income before income tax expense	2,769,534	434,599	685,609	2,706,511
Income tax (expenses)/benefits	(435,418)	(68,327)	(90,629)	(411,959)
Net income/(loss)	2,334,116	366,272	594,980	2,294,552
Less: net income attributable to non-controlling interests	193	30
Net income/(loss) attributable to ordinary shareholders of the Company	2,333,923	366,242	594,980	2,294,552
Net cash used in operating activities	2,667,419	418,574	(211,019)	(778,504)
Net cash provided by/(used in) investing activities	414,615	65,062	(2,136,429)	(783,579)
Net cash provided by financing activities	(1,779,534)	(279,249)	1,233,011	3,058,821
Net increase/(decrease) in cash, cash equivalents and restricted cash	1,278,908	200,688	(1,142,407)	1,488,492
Cash, cash equivalents and restricted cash at beginning of the year	2,839,906	445,643	3,985,626	2,497,134
Cash, cash equivalents and restricted cash at end of the year	4,118,814	$ 646,331	2,839,906	3,985,626
Cumulative effect due to the adoption of ASC 326 (Note 2(e))
Operating expenses:
Cash, cash equivalents and restricted cash at beginning of the year	(3,313)
Cash, cash equivalents and restricted cash at end of the year			(3,313)
VIEs
Variable Interest Entity [Line Items]
Total assets	18,695,950		18,748,833
Total liabilities	16,928,909		17,381,265
Operating revenue:
Operating revenue	11,103,407		11,580,441	10,608,717
Operating cost:
Operating cost	(5,522,630)		(7,980,912)	(5,633,720)
Gross profit	5,580,777		3,599,529	4,974,997
Operating expenses:
Total operating expenses	(4,736,778)		(3,748,151)	(2,978,519)
Others	(369,200)		(798,733)	11,202
Income before income tax expense	474,799		(947,355)	2,007,680
Income tax (expenses)/benefits	(142,201)		131,242	(316,661)
Net income/(loss)	332,598		(816,113)	1,691,019
Less: net income attributable to non-controlling interests	193
Net income/(loss) attributable to ordinary shareholders of the Company	332,405		(816,113)	1,691,019
Net cash used in operating activities	(298,268)		(1,750,611)	(1,250,380)
Net cash provided by/(used in) investing activities	622,696		(2,190,303)	579,207
Net cash provided by financing activities	656,269		3,720,373	1,006,844
Net increase/(decrease) in cash, cash equivalents and restricted cash	980,697		(220,541)	335,671
Cash, cash equivalents and restricted cash at beginning of the year	2,574,938		2,797,805	2,462,134
Cash, cash equivalents and restricted cash at end of the year	3,555,635		2,574,938	2,797,805
VIEs \| Cumulative effect due to the adoption of ASC 326 (Note 2(e))
Operating expenses:
Cash, cash equivalents and restricted cash at beginning of the year			(2,326)
Cash, cash equivalents and restricted cash at end of the year				(2,326)
VIEs \| Third-party
Operating revenue:
Operating revenue	11,091,978		11,579,992	10,603,507
Operating cost:
Operating cost	(5,520,994)		(7,959,095)	(5,575,251)
Operating expenses:
Total operating expenses	(1,689,151)		(1,360,975)	(1,692,792)
VIEs \| Inter-group
Operating revenue:
Operating revenue	11,429		449	5,210
Operating cost:
Operating cost	(1,636)		(21,817)	(58,469)
Operating expenses:
Total operating expenses	(3,047,627)		(2,387,176)	(1,285,727)
Net cash used in operating activities	(4,137,522)		(2,421,318)	(1,131,774)
Net cash provided by/(used in) investing activities	150,468		199,440	(184,188)
Net cash provided by financing activities	2,431,307		2,516,763	433,617
VIEs \| External Parties
Operating expenses:
Net cash used in operating activities	3,839,254		670,707	(118,606)
Net cash provided by/(used in) investing activities	472,228		(2,389,743)	763,395
Net cash provided by financing activities	¥ (1,775,038)		¥ 1,203,610	¥ 573,227

Significant Accounting Policies - Schedule of the Assets, Liabilities, Results of Operations and Changes in Cash and Cash Equivalents and Restricted Cash of the VIEs and their Subsidiaries (Parenthetical) (Details) - VIEs - CNY (¥) ¥ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Variable Interest Entity [Line Items]
Cash paid for technical service fees.	¥ 4,140.0	¥ 2,422.0	¥ 1,140.0
Cash received for provision of goods and services	¥ 2.5	¥ 0.7	¥ 8.3

Significant Accounting Policies - Schedule of Cumulative Effect of Changes on Consolidated Balance Sheet Due to Adoption of ASC 326 (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2020 USD ($)	Jan. 01, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)	Dec. 31, 2018 CNY (¥)
ASSETS
Cash and cash equivalents	¥ 2,664,132	$ 418,060	¥ 1,563,755	$ 245,387		¥ 2,085,234	¥ 1,148,292
Restricted cash						1,900,392
Restricted time deposits						1,966,643
Financing receivables, net						4,411,488
Accrued interest receivable, net						54,284
Guarantee receivables, net						1,464,977
Prepaid expenses and other current assets	941,150	147,687	1,004,845			1,324,924
Deposits to insurance companies and guarantee companies	1,378,489	216,315	1,066,281			1,251,003
Contract assets and service fees receivable, net						3,454,851
Other assets	826,883	129,756	462,285			454,421
Long‑term investments	469,064	73,606	521,802			511,605
LIABILITIES
Guarantee liabilities						(1,726,368)
Deferred guarantee income	(419,843)	(65,883)	(694,582)
Allowance for credit losses	(326,864)		(529,162)			(373,545)	¥ (384,036)
Deferred tax assets	1,176,878	184,678	747,332			157,138
Deferred tax liabilities	(54,335)	(8,526)	(21,046)			(309,646)
Decrease in retained earnings	4,195,791	$ 658,411	2,113,956
ASC 326
LIABILITIES
Contingent guarantee liabilities	¥ (928,840)		¥ (1,738,787)
Allowance for credit losses						(229,661)
ASC 326 \| Cumulative Effect Period Of Adoption Adjustment
ASSETS
Cash and cash equivalents					¥ (1,465)
Restricted cash					(1,848)
Restricted time deposits					(1,921)
Financing receivables, net					(229,661)
Accrued interest receivable, net					(1,681)
Guarantee receivables, net					(40,388)
Prepaid expenses and other current assets					(12,077)
Deposits to insurance companies and guarantee companies					(3,060)
Contract assets and service fees receivable, net					(26,045)
Other assets					(2,466)
Long‑term investments					(3,588)
LIABILITIES
Guarantee liabilities					1,726,368
Deferred guarantee income					(1,481,814)
Contingent guarantee liabilities					(2,214,128)	¥ (2,214,128)
Allowance for credit losses					(2,293,774)
Deferred tax assets					78,803
Deferred tax liabilities					296,471
Decrease in retained earnings					(1,918,500)
ASC 326 \| Cumulative Effect, Period of Adoption, Adjusted Balance
ASSETS
Cash and cash equivalents					2,083,769
Restricted cash					1,898,544
Restricted time deposits					1,964,722
Financing receivables, net					4,181,827
Accrued interest receivable, net					52,603
Guarantee receivables, net					1,424,589
Prepaid expenses and other current assets					1,312,847
Deposits to insurance companies and guarantee companies					1,247,943
Contract assets and service fees receivable, net					3,428,806
Other assets					451,955
Long‑term investments					508,017
LIABILITIES
Deferred guarantee income					(1,481,814)
Contingent guarantee liabilities					(2,214,128)
Deferred tax assets					235,941
Deferred tax liabilities					¥ (13,175)

Significant Accounting Policies - Schedule of Cumulative Effect of Changes on Consolidated Balance Sheet Due to Adoption of ASC 326 (Parenthetical) (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 (¥)
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Guarantee liabilities					¥ 1,726,368
Excess Liability					244,600
Deferred guarantee income	¥ 419,843	$ 65,883	¥ 694,582
ASC 460
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Guarantee liabilities					1,481,800
ASC 326
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Contingent guarantee liabilities	¥ 928,840		¥ 1,738,787
ASC 326 \| Cumulative Effect Period Of Adoption Adjustment
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Guarantee liabilities				¥ (1,726,368)
Deferred guarantee income				1,481,814
Contingent guarantee liabilities				¥ 2,214,128	¥ 2,214,128

Significant Accounting Policies - Schedule of Group Obligations Associated with Guarantee Liabilities Prior To Adoption of ASC 326 (Details) ¥ in Thousands	12 Months Ended
	Dec. 31, 2019 CNY (¥)
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Ending balances	¥ 1,726,368
Guarantee Obligations
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Opening balances	456,276
Fair value of guarantee liabilities at inception of new loans	1,024,331
Release of guarantee liabilities upon the Borrowers’ repayment	(424,962)
Transfer from guarantee previously accounted for as derivatives*	1,325,935
Contingent liability	179,417
Payouts during the period	(2,926,080)
Recoveries during the period	2,091,451
Ending balances	¥ 1,726,368

Significant Accounting Policies - Schedule of Group Obligations Associated with Guarantee Liabilities Prior To Adoption of ASC 326 (Parenthetical) (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Increase in guarantee liabilities				¥ 1,493,860
Increase in guarantee receivables	¥ (292,760)	$ (45,940)	¥ (274,799)	981,449
ASC 460
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Increase in guarantee liabilities				1,300,000
Increase in guarantee receivables				¥ 800,000

Significant Accounting Policies - Schedule of Obligations Associated with Deferred Guarantee Income After Adoption of ASC 326 (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Opening balances	¥ 694,582
Ending balances	419,843	$ 65,883	¥ 694,582
Accounting Standards Update 2014-09
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Opening balances	694,582
Fair value of deferred guarantee income at inception of new loans	499,805		1,532,461
Release of deferred guarantee income	(774,544)		(2,319,693)
Ending balances	¥ 419,843		694,582
Accounting Standards Update 2014-09 \| Cumulative Effect Period Of Adoption Adjustment
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Opening balances			¥ 1,481,814

Significant Accounting Policies - Schedule of Obligations Associated with Contingent Guarantee Liabilities After Adoption of ASC 326 (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Provision for credit losses of contingent liabilities of guarantee	¥ 622,438,000	$ 97,674	¥ 2,880,590,000
ASC 326
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Opening balances	1,738,787,000
Provision for credit losses of contingent liabilities of guarantee	622,438,000		2,880,590
Net cash payout	1,432,385,000		3,355,931,000
Ending balances	¥ 928,840,000		1,738,787,000
ASC 326 \| Effect Due to the Adoption of ASC 326 (Note 2(g))
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Opening balances			¥ 2,214,128,000
Ending balances

Significant Accounting Policies - Schedule of Operating Revenue within Scope of ASC 606 Disaggregated by Revenue Sources (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Disaggregation Of Revenue [Line Items]
Revenue	¥ 8,873,059	¥ 7,906,670	¥ 9,456,683
Online direct sales
Disaggregation Of Revenue [Line Items]
Revenue	1,661,156	1,900,835	3,623,991
Membership services
Disaggregation Of Revenue [Line Items]
Revenue	107,901	113,107	112,558
Other Services
Disaggregation Of Revenue [Line Items]
Revenue	86,304	68,890	92,292
Online direct sales and services income
Disaggregation Of Revenue [Line Items]
Revenue	1,855,361	2,082,832	3,828,841
Credit-oriented services income
Disaggregation Of Revenue [Line Items]
Revenue	4,448,344	3,786,996	4,811,868
Credit-oriented services income \| Loan Facilitation and Matching Service Fees-Credit Oriented
Disaggregation Of Revenue [Line Items]
Revenue	3,120,892	2,628,941	3,868,044
Credit-oriented services income \| Post-Origination Service Fees-Credit Oriented
Disaggregation Of Revenue [Line Items]
Revenue	1,327,452	1,087,567	643,399
Credit-oriented services income \| Investment Program Management Service Fees-Credit Oriented
Disaggregation Of Revenue [Line Items]
Revenue		70,488	300,425
Platform-based services income
Disaggregation Of Revenue [Line Items]
Revenue	2,569,354	2,036,842	815,974
Platform-based services income \| Loan Facilitation and Matching Service Fees-Performance Based
Disaggregation Of Revenue [Line Items]
Revenue	1,727,794	1,656,998	556,143
Platform-based services income \| Post-Origination Service Fees-Performance Based
Disaggregation Of Revenue [Line Items]
Revenue	561,658	273,837	92,373
Platform-based services income \| Loan facilitation and servicing fees-volume based
Disaggregation Of Revenue [Line Items]
Revenue	¥ 279,902	¥ 106,007	¥ 167,458

Significant Accounting Policies - Schedule of Operating Revenue Within Scope of ASC 606 Disaggregated by Revenue Timing (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Disaggregation Of Revenue [Line Items]
Revenue	¥ 8,873,059	¥ 7,906,670	¥ 9,456,683
At Point-in-Time
Disaggregation Of Revenue [Line Items]
Revenue	6,876,048	6,361,671	8,307,928
Over Time
Disaggregation Of Revenue [Line Items]
Revenue	¥ 1,997,011	¥ 1,544,999	¥ 1,148,755

- Definition

Amount, including tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value-added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130545-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8906-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130543-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Significant Accounting Policies - Schedule of Estimated Useful Lives (Details)	12 Months Ended
	Dec. 31, 2021
Computers and Equipment
Property Plant And Equipment [Line Items]
Estimated Useful Lives	3 years
Furniture and Fixtures \| Minimum
Property Plant And Equipment [Line Items]
Estimated Useful Lives	4 years
Furniture and Fixtures \| Maximum
Property Plant And Equipment [Line Items]
Estimated Useful Lives	5 years
Leasehold Improvement
Property Plant And Equipment [Line Items]
Estimated Useful Lives	Over the shorter of the expected life of leasehold improvement or the lease term
Software \| Minimum
Property Plant And Equipment [Line Items]
Estimated Useful Lives	3 years
Software \| Maximum
Property Plant And Equipment [Line Items]
Estimated Useful Lives	10 years

Significant Accounting Policies - Schedule of Future Minimum Lease Payments - ASC 842 (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Accounting Policies [Abstract]
2022	¥ 55,088
2023	45,155
2024	41,129
2025 and thereafter	71,585
Total future lease payments	212,957
Impact of discounting remaining lease payments	(21,924)
Total lease liabilities	191,033
- Short-term portion	¥ 53,644	¥ 45,577
Operating Lease, Liability, Current, Statement of Financial Position	Accrued expenses and other current liabilities (including amounts of the consolidated VIEs of RMB2,509,671 and RMB3,393,092 as of December 31, 2020 and December 31, 2021, respectively)	Accrued expenses and other current liabilities (including amounts of the consolidated VIEs of RMB2,509,671 and RMB3,393,092 as of December 31, 2020 and December 31, 2021, respectively)
- Long-term portion	¥ 137,389
Operating Lease, Liability, Noncurrent, Statement of Financial Position	Other long-term liabilities (including amounts of the consolidated VIEs of RMB23,218 and RMB92,256 as of December 31, 2020 and December 31, 2021, respectively)

Significant Accounting Policies - Schedule of Supplemental Cash Flow Information Related to Operating Leases (Details) ¥ in Thousands	12 Months Ended
	Dec. 31, 2021 CNY (¥)
Accounting Policies [Abstract]
Cash payments for operating leases	¥ 60,620
Right-of-use assets obtained in exchange for operating lease liabilities	¥ 172,603

Significant Accounting Policies - Schedule of Concentration Risk (Details)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Supplier Concentration Risk \| Inventories \| Inventory Supplier A
Concentration Risk [Line Items]
Concentration risk (as a percent)	16.60%	16.90%
Supplier Concentration Risk \| Inventories \| Inventory Supplier B
Concentration Risk [Line Items]
Concentration risk (as a percent)		16.80%
Supplier Concentration Risk \| Inventories \| Inventory Supplier C
Concentration Risk [Line Items]
Concentration risk (as a percent)		10.70%
Supplier Concentration Risk \| Inventories \| Inventory Supplier D
Concentration Risk [Line Items]
Concentration risk (as a percent)	16.60%	24.40%
Supplier Concentration Risk \| Inventories \| Inventory Supplier E
Concentration Risk [Line Items]
Concentration risk (as a percent)	11.90%
Lender Concentration Risk \| Long-term debt \| Institutional Funding Partner A
Concentration Risk [Line Items]
Concentration risk (as a percent)	16.30%	21.40%
Lender Concentration Risk \| Long-term debt \| Institutional Funding Partner B
Concentration Risk [Line Items]
Concentration risk (as a percent)	23.00%
Deposits Concentration Risk \| Deposits to Insurance and Guarantee Companies \| Guarantee Company A
Concentration Risk [Line Items]
Concentration risk (as a percent)	16.80%	13.60%
Deposits Concentration Risk \| Deposits to Insurance and Guarantee Companies \| Guarantee Company B
Concentration Risk [Line Items]
Concentration risk (as a percent)	16.40%	19.60%
Deposits Concentration Risk \| Deposits to Insurance and Guarantee Companies \| Insurance Company C
Concentration Risk [Line Items]
Concentration risk (as a percent)		18.80%
Deposits Concentration Risk \| Deposits to Insurance and Guarantee Companies \| Guarantee Company D
Concentration Risk [Line Items]
Concentration risk (as a percent)		12.60%

Financing Receivable, Net - Schedule of Financing Receivables, Net (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)
Short-term:
Short-term financing receivables	¥ 4,080,316		¥ 5,426,561
Allowance for credit losses	(307,341)		(508,013)
Total short-term financing receivables, net	3,772,975	$ 592,062	4,918,548
Long-term:
Long-term financing receivables	260,650		225,910
Allowance for credit losses	(19,523)		(21,149)
Total long-term financing receivables, net	241,127	$ 37,838	204,761
Installment Purchase Loans
Short-term:
Short-term financing receivables	300,999		457,407
Long-term:
Long-term financing receivables	93,754		127,265
Personal Installment Loans
Short-term:
Short-term financing receivables	3,779,317		4,969,154
Long-term:
Long-term financing receivables	¥ 166,896		¥ 98,645

Financing Receivable, Net - Additional Information (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Accounts Notes And Loans Receivable [Line Items]
Weighted average interest rates of financing receivables (as a percent)	22.20%	24.90%
Financing receivable, charged-off	¥ 913,940	¥ 1,078,705	¥ 815,421
Financing receivables, non-accrual status	76,700	177,900
Interest and late payment fees earned from non-accrual financing receivables	135,600	78,800	¥ 53,900
Loan VII
Accounts Notes And Loans Receivable [Line Items]
Collateral amount	1,193,000	325,700
Installment Purchase Loans
Accounts Notes And Loans Receivable [Line Items]
Financing receivable, charged-off	201,400	186,900
Personal Installment Loans
Accounts Notes And Loans Receivable [Line Items]
Financing receivable, charged-off	¥ 3,392,100	¥ 2,802,900
Maximum
Accounts Notes And Loans Receivable [Line Items]
Installment purchase loans and personal installment loans original term	3 years

Financing Receivable, Net - Summary of Balances of Financing Receivables by Due Date (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, after Allowance for Credit Loss [Abstract]
Due in 0-12 months	¥ 4,080,316	¥ 5,426,561
Due in 13-24 months	229,900	182,107
Due in 25-36 months	22,615	23,388
Due thereafter	8,135	20,415
Total financing receivables	¥ 4,340,966	¥ 5,652,471

- Definition

Amount, before allowance for credit loss, of financing receivable.

+ References + Details

Financing Receivable, Net - Summary of Activities in Allowance for Credit Losses (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balances	¥ (529,162)	¥ (373,545)	¥ (384,036)
Provision for credit losses	(401,417)	(779,235)	(708,684)
Charge-offs	913,940	1,078,705	815,421
Recoveries from prior charge-offs	(310,225)	(225,426)	(96,246)
Ending balances	¥ (326,864)	(529,162)	(373,545)
ASC 326
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balances		¥ (229,661)
Ending balances			¥ (229,661)

- Definition

Amount of allowance for credit loss on financing receivable. Excludes allowance for financing receivable covered under loss sharing agreement.

+ References + Details

Financing Receivable, Net - Summary of Aging Analysis of Past Due Financing Receivables (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Aging analysis of past due financing receivables
Total financing receivables	¥ 4,340,966	¥ 5,652,471
Installment Purchase Loans
Aging analysis of past due financing receivables
Total financing receivables	394,753	584,672
Personal Installment Loans
Aging analysis of past due financing receivables
Total financing receivables	3,946,213	5,067,799
1-29 Days Past Due
Aging analysis of past due financing receivables
Total financing receivables	139,503	159,609
1-29 Days Past Due \| Installment Purchase Loans
Aging analysis of past due financing receivables
Total financing receivables	6,965	7,086
1-29 Days Past Due \| Personal Installment Loans
Aging analysis of past due financing receivables
Total financing receivables	132,538	152,523
30-59 Days Past Due
Aging analysis of past due financing receivables
Total financing receivables	39,346	78,904
30-59 Days Past Due \| Installment Purchase Loans
Aging analysis of past due financing receivables
Total financing receivables	3,763	4,508
30-59 Days Past Due \| Personal Installment Loans
Aging analysis of past due financing receivables
Total financing receivables	35,583	74,396
60-89 Days Past Due
Aging analysis of past due financing receivables
Total financing receivables	29,103	58,056
60-89 Days Past Due \| Installment Purchase Loans
Aging analysis of past due financing receivables
Total financing receivables	2,698	3,839
60-89 Days Past Due \| Personal Installment Loans
Aging analysis of past due financing receivables
Total financing receivables	26,405	54,217
90-179 Days Past Due
Aging analysis of past due financing receivables
Total financing receivables	76,694	177,866
90-179 Days Past Due \| Installment Purchase Loans
Aging analysis of past due financing receivables
Total financing receivables	5,784	11,884
90-179 Days Past Due \| Personal Installment Loans
Aging analysis of past due financing receivables
Total financing receivables	70,910	165,982
Total Past Due
Aging analysis of past due financing receivables
Total financing receivables	284,646	474,435
Total Past Due \| Installment Purchase Loans
Aging analysis of past due financing receivables
Total financing receivables	19,210	27,317
Total Past Due \| Personal Installment Loans
Aging analysis of past due financing receivables
Total financing receivables	265,436	447,118
Current
Aging analysis of past due financing receivables
Total financing receivables	4,056,320	5,178,036
Current \| Installment Purchase Loans
Aging analysis of past due financing receivables
Total financing receivables	375,543	557,355
Current \| Personal Installment Loans
Aging analysis of past due financing receivables
Total financing receivables	¥ 3,680,777	¥ 4,620,681

Financing Receivable, Net - Summary of Amortized Cost within Each Credit Quality Indicator by Year of Origination for Five Origination Years and Beyond (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Financing receivables credit quality indicator
Total financing receivables	¥ 4,340,966	¥ 5,652,471
1-29 Days Past Due
Financing receivables credit quality indicator
Total financing receivables	139,503	159,609
30-59 Days Past Due
Financing receivables credit quality indicator
Total financing receivables	39,346	78,904
60-89 Days Past Due
Financing receivables credit quality indicator
Total financing receivables	29,103	58,056
90-179 Days Past Due
Financing receivables credit quality indicator
Total financing receivables	76,694	177,866
Total Past Due
Financing receivables credit quality indicator
Total financing receivables	284,646	474,435
Current
Financing receivables credit quality indicator
Total financing receivables	4,056,320	5,178,036
Installment Purchase Loans
Financing receivables credit quality indicator
Loans originated in 2018	46
Loans originated in 2019	21,155
Loans originated in 2020	78,175
Loans originated in 2021	295,377
Total financing receivables	394,753	584,672
Installment Purchase Loans \| 1-29 Days Past Due
Financing receivables credit quality indicator
Loans originated in 2018	2
Loans originated in 2019	412
Loans originated in 2020	1,519
Loans originated in 2021	5,032
Total financing receivables	6,965	7,086
Installment Purchase Loans \| 30-59 Days Past Due
Financing receivables credit quality indicator
Loans originated in 2018	5
Loans originated in 2019	210
Loans originated in 2020	855
Loans originated in 2021	2,693
Total financing receivables	3,763	4,508
Installment Purchase Loans \| 60-89 Days Past Due
Financing receivables credit quality indicator
Loans originated in 2018	5
Loans originated in 2019	182
Loans originated in 2020	816
Loans originated in 2021	1,695
Total financing receivables	2,698	3,839
Installment Purchase Loans \| 90-179 Days Past Due
Financing receivables credit quality indicator
Loans originated in 2018	33
Loans originated in 2019	616
Loans originated in 2020	2,445
Loans originated in 2021	2,690
Total financing receivables	5,784	11,884
Installment Purchase Loans \| Total Past Due
Financing receivables credit quality indicator
Loans originated in 2018	45
Loans originated in 2019	1,420
Loans originated in 2020	5,635
Loans originated in 2021	12,110
Total financing receivables	19,210	27,317
Installment Purchase Loans \| Current
Financing receivables credit quality indicator
Loans originated in 2018	1
Loans originated in 2019	19,735
Loans originated in 2020	72,540
Loans originated in 2021	283,267
Total financing receivables	375,543	557,355
Personal Installment Loans
Financing receivables credit quality indicator
Loans originated in 2018	65
Loans originated in 2019	26,098
Loans originated in 2020	35,778
Loans originated in 2021	3,884,272
Total financing receivables	3,946,213	5,067,799
Personal Installment Loans \| 1-29 Days Past Due
Financing receivables credit quality indicator
Loans originated in 2018	2
Loans originated in 2019	757
Loans originated in 2020	1,275
Loans originated in 2021	130,504
Total financing receivables	132,538	152,523
Personal Installment Loans \| 30-59 Days Past Due
Financing receivables credit quality indicator
Loans originated in 2018	4
Loans originated in 2019	365
Loans originated in 2020	922
Loans originated in 2021	34,292
Total financing receivables	35,583	74,396
Personal Installment Loans \| 60-89 Days Past Due
Financing receivables credit quality indicator
Loans originated in 2018	7
Loans originated in 2019	295
Loans originated in 2020	1,182
Loans originated in 2021	24,921
Total financing receivables	26,405	54,217
Personal Installment Loans \| 90-179 Days Past Due
Financing receivables credit quality indicator
Loans originated in 2018	43
Loans originated in 2019	1,177
Loans originated in 2020	6,217
Loans originated in 2021	63,473
Total financing receivables	70,910	165,982
Personal Installment Loans \| Total Past Due
Financing receivables credit quality indicator
Loans originated in 2018	56
Loans originated in 2019	2,594
Loans originated in 2020	9,596
Loans originated in 2021	253,190
Total financing receivables	265,436	447,118
Personal Installment Loans \| Current
Financing receivables credit quality indicator
Loans originated in 2018	9
Loans originated in 2019	23,504
Loans originated in 2020	26,182
Loans originated in 2021	3,631,082
Total financing receivables	¥ 3,680,777	¥ 4,620,681

Contract Assets and Service Fees Receivable, Net and Guarantee Receivables, Net - Schedule of Contract Assets, Service Fees Receivable, and Guarantee Receivables (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Contract Assets
Short-term:
Gross	¥ 3,121,477	¥ 2,964,670
Allowance	(79,375)	(22,923)
Net	3,042,102	2,941,747
Long-term:
Gross	279,645	500,959
Allowance	(34,973)	(18,970)
Net	244,672	481,989
Service Fees Receivable
Short-term:
Gross	1,008,484	808,586
Allowance	(107,886)	(42,684)
Net	900,598	765,902
Guarantee Receivable
Short-term:
Gross	564,955	814,968
Allowance	(21,006)	(58,771)
Net	543,949	756,197
Long-term:
Gross	105,623	235,648
Allowance	(4,061)	(16,994)
Net	¥ 101,562	¥ 218,654

Contract Assets and Service Fees Receivable, Net and Guarantee Receivables, Net - Schedule of Activities in the Allowance for Credit Losses (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Activities in the provision for credit losses
Beginning balances	¥ (160,342)	¥ (148,322)	¥ (54,058)
Provisions	(531,237)	(441,805)	(153,176)
Charge-offs	523,613	529,380	68,072
Recoveries from prior charge-offs	(79,335)	(33,162)	(9,160)
Ending balances	(247,301)	(160,342)	¥ (148,322)
ASC 326 \| Cumulative Effect Period Of Adoption Adjustment
Activities in the provision for credit losses
Beginning balances	¥ (66,433)
Ending balances		¥ (66,433)

Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)
Prepaid Expense and Other Assets, Current [Abstract]
Receivables from third-party payment service providers	¥ 628,611		¥ 587,168
Deposits to Institutional Funding Partners	208,409		288,215
Prepayment to inventory suppliers	33,976		59,586
Prepaid input value-added tax	20,504		33,695
Staff advances	8,071		12,694
Rental deposits and other current assets	41,579		23,487
Total prepaid expenses and other current assets	¥ 941,150	$ 147,687	¥ 1,004,845	¥ 1,324,924

Property, Equipment and Software, Net - Schedule of Property, Equipment and Software, Net (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)
Property Plant And Equipment [Line Items]
Total property, equipment and software, gross	¥ 386,572		¥ 264,610
Accumulated depreciation and amortization	(191,242)		(138,916)
Total property, equipment and software, net	195,330	$ 30,652	125,694
Computers and Equipment
Property Plant And Equipment [Line Items]
Total property, equipment and software, gross	163,057		138,188
Furniture and Fixtures
Property Plant And Equipment [Line Items]
Total property, equipment and software, gross	18,979		15,539
Leasehold Improvement
Property Plant And Equipment [Line Items]
Total property, equipment and software, gross	61,577		56,462
Software
Property Plant And Equipment [Line Items]
Total property, equipment and software, gross	83,518		41,849
Construction In Progress
Property Plant And Equipment [Line Items]
Total property, equipment and software, gross	¥ 59,441		¥ 12,572

Property, Equipment and Software, Net - Additional Information (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)
Property, Plant and Equipment [Line Items]
Depreciation and amortization	¥ 90,751	$ 14,241	¥ 53,433	¥ 39,945
Property, equipment and software
Property, Plant and Equipment [Line Items]
Depreciation and amortization	¥ 56,400		¥ 53,400	¥ 39,900

Land Use Rights, Net - Schedule of Land Use Rights, Net (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Gross carrying amount	¥ 1,032,000	¥ 1,032,000
Accumulated amortization	(65,933)	(31,533)
Net carrying amount	¥ 966,067	¥ 1,000,467

Land Use Rights, Net - Additional Information (Details) - CNY (¥) ¥ in Millions	1 Months Ended		12 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Dec. 31, 2021	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-lived intangible assets, cash consideration				¥ 1,000.0
Land use right period				30 years
First installment payment		¥ 516.0
Second installment payment	¥ 516.0
Amortization expense			¥ 34.4	¥ 31.5

Land Use Rights, Net - Schedule of Amortization Expenses For Future Periods (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
2022	¥ 34,400
2023	34,400
2024	34,400
2025	34,400
2026	34,400
Thereafter	794,067
Net carrying amount	¥ 966,067	¥ 1,000,467

Long-Term Investments - Additional Information (Details) $ in Thousands	1 Months Ended	12 Months Ended
	Sep. 30, 2018 CNY (¥)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥) JointVenture	Dec. 31, 2019 CNY (¥)
Summary Of Investment Holdings [Line Items]
Carrying value of equity investments		¥ 213,000,000		¥ 264,000,000
Unrealized gains (upward adjustment)		0		19,100,000	¥ 51,900,000
Impairment charges					0
Cumulative impairment charges		84,400,000
Impairment related to investments without readily determinable fair value recognized		0		69,200,000
Other downward adjustment related to investments without readily determinable fair value				0
Equity method investments		101,000,000		102,000,000
Net cash consideration received from disposed shares		58,300,000
Withholding tax		7,200,000
Loss from equity method investments		(3,967,000)	$ (623)	(9,032,000)	(5,180,000)
Carrying amount of held-to-maturity debt investments		155,800,000		155,800,000
Debt investment principle amount	¥ 120,000,000.0
Maturity term	2026-07
Interest income		0		0	1,500,000
Indonesia
Summary Of Investment Holdings [Line Items]
Cash consideration		3,000,000.0		15,000,000.0	¥ 13,000,000.0
PRC
Summary Of Investment Holdings [Line Items]
Cash consideration		¥ 16,700,000		¥ 88,000,000.0
Number of investments in joint venture \| JointVenture				3

Long-Term Investments - Summary of Movement of Carrying Value of Equity Investments Accounted Using Measurement Alternative (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Long-term Investments [Abstract]
Long-term investment at the beginning of the year	¥ 264,151	¥ 344,362	¥ 28,166
Addition	16,700		266,153
Disposal	(67,475)	(23,310)	(2,796)
Unrealized upward adjustments		19,059	51,891
Impairment		(69,156)
Foreign currency translation adjustments	(676)	(6,804)	948
Long-term investment at the end of the year	¥ 212,700	¥ 264,151	¥ 344,362

Fair Value Measurement - Schedule of Fair Value of Hierarchy For Assets and Liabilities Measured on Recurring Basis (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)
Assets
Restricted time deposits	¥ 1,745,898	$ 273,969	¥ 1,779,458
Recurring Basis \| Fair Value
Assets
Restricted time deposits	1,745,898		1,779,458
Loans at fair value	252,970		381,393
Total assets	1,998,868		2,160,851
Liabilities
Guarantee derivative liabilities	1,473,853		252,613
Total liabilities	1,473,853		252,613
Recurring Basis \| Fair Value \| Level 2 Inputs
Assets
Restricted time deposits	1,745,898		1,779,458
Total assets	1,745,898		1,779,458
Recurring Basis \| Fair Value \| Level 3 Inputs
Assets
Loans at fair value	252,970		381,393
Total assets	252,970		381,393
Liabilities
Guarantee derivative liabilities	1,473,853		252,613
Total liabilities	¥ 1,473,853		¥ 252,613

Fair Value Measurement - Summary of Quantitative Information About The Significant Unobservable Inputs (Details) - Level 3 Inputs - Recurring Basis	Dec. 31, 2021	Dec. 31, 2020
Expected Future Recovery Rates \| Minimum
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Loans at fair value	4.3	9.8
Expected Future Recovery Rates \| Maximum
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Loans at fair value	4.3	9.8
Expected Future Recovery Rates \| Weighted-Average
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Loans at fair value	4.3	9.8
Guarantee Derivative Assets or Liabilities \| Cumulative Loss Rates \| Minimum
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Guarantee derivatives assets or liabilities	5.6	3.1
Guarantee Derivative Assets or Liabilities \| Cumulative Loss Rates \| Maximum
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Guarantee derivatives assets or liabilities	12.2	13.3
Guarantee Derivative Assets or Liabilities \| Cumulative Loss Rates \| Weighted-Average
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Guarantee derivatives assets or liabilities	7.8	6.3
Guarantee Derivative Assets or Liabilities \| Margins on Cost of Guarantee Services \| Minimum
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Guarantee derivatives assets or liabilities	10.0	10.0
Guarantee Derivative Assets or Liabilities \| Margins on Cost of Guarantee Services \| Maximum
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Guarantee derivatives assets or liabilities	10.0	10.0
Guarantee Derivative Assets or Liabilities \| Margins on Cost of Guarantee Services \| Weighted-Average
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Guarantee derivatives assets or liabilities	10.0	10.0

Fair Value Measurement - Summary of Activities Related to Fair Value of the Guarantee Derivatives (Details) - Guarantee Derivative Assets or Liabilities - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Fair value of guarantee derivative liabilities/(assets) at beginning of the year (Level 3)	¥ 252,613	¥ (280,998)	¥ 52,434
Cash collection	3,107,316	1,107,646	1,108,398
Net cash payout	(2,344,922)	(1,281,477)	1,151,504
Change in fair value	458,846	707,442	212,256
Transfers of financial guarantee contracts			(502,582)
Fair value of guarantee derivative liabilities/(assets) at end of the year (Level 3)	¥ 1,473,853	¥ 252,613	¥ (280,998)

Fair Value Measurement - Summary of Activities Related to Fair Value of the Loans Acquired or Purchased (Details) - Loans At Fair Value - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Fair value of loans acquired/purchased at beginning of the year (Level 3)	¥ 381,393
Fair value at inception of loans acquired/purchased	3,851,997	¥ 7,067,271
Cash collection	(4,051,776)	(6,638,596)
Change in fair value	111,762	(47,282)
Disposal	(40,406)
Fair value of loans acquired/purchased at end of the year (Level 3)	¥ 252,970	¥ 381,393

Fair Value Measurement - Schedule of Effect Adverse Change in Derivative Assets and Liabilities (Details) - Guarantee Derivative Assets or Liabilities - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Weighted average cumulative loss rates	7.80%	6.30%
Increase by 10%	¥ 362,221	¥ 188,349
Decrease by 10%	¥ (362,221)	¥ (188,349)

Fair Value Measurement - Summary of Effect Adverse Changes in Estimated Fair Value of the Loans (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Fair Value Disclosures [Abstract]
Weighted average expected future recovery rates	4.30%	9.80%
Increase by 10%	¥ 25,297	¥ 38,139
Decrease by 10%	¥ 25,297	¥ 38,139

Funding Debts - Summary of the Group's Outstanding Funding Debts (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)
Debt Instrument [Line Items]
Short-term Funding Debts	¥ 3,101,381	$ 486,674	¥ 4,685,935
Long-term funding debts	696,852	$ 109,351	825,814
Liabilities to Funding Partners
Debt Instrument [Line Items]
Short-term Funding Debts	3,101,381		4,685,935
Long-term funding debts	¥ 696,852		¥ 825,814

Funding Debts - Liabilities to Individual Investors and Institutional Funding Partners (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)
Debt Instrument [Line Items]
Aggregate amount funded from funding sources	¥ 18,221,528,000	$ 2,859,355	¥ 20,546,221,000	¥ 8,373,790,000
Financing receivables, net				¥ 4,411,488,000
Liabilities to Individual Investors - Juzi Licai
Debt Instrument [Line Items]
Term				24 months
Weighted average interest rate				7.70%
Aggregate amount funded from funding sources	¥ 0		¥ 0
Liabilities to Funding Partners
Debt Instrument [Line Items]
Weighted average interest rate	9.20%		9.30%
Aggregate amount funded from funding sources	¥ 3,539,900,000		¥ 5,092,300,000
Financing receivables, net	¥ 1,193,000,000.0		¥ 325,700,000

Funding Debts - Summary of the Remaining Contractual Maturity Dates of the Group's Funding Debts and Associated Interest Payments (Details) ¥ in Thousands	Dec. 31, 2021 CNY (¥)
Maturities of Funding Debts
1 - 12 months	¥ 3,101,381
13 - 24 months	696,852
Total Funding Debts	3,798,233
Maturities of interest payments
1 - 12 months	247,104
13 - 24 months	48,012
Total interest payments	295,116
Liabilities to Funding Partners
Maturities of Funding Debts
1 - 12 months	3,101,381
13 - 24 months	696,852
Total Funding Debts	3,798,233
Interest payments
Maturities of interest payments
1 - 12 months	247,104
13 - 24 months	48,012
Total interest payments	¥ 295,116

Short-Term Borrowings (Details) - CNY (¥) ¥ in Millions	Dec. 31, 2021	Dec. 31, 2020
Short Term Debt [Line Items]
weighted average interest rates of short-term borrowings	3.80%	4.00%
Borrowings	¥ 1,497.2	¥ 1,701.0
Time deposit
Short Term Debt [Line Items]
Collateral amount	¥ 1,670.7	¥ 1,781.3

Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)
Payables and Accruals [Abstract]
Guarantee derivative liabilities at fair value (Note 9)	¥ 1,473,853		¥ 252,613
Tax payable	975,396		632,006
Funds payable to Institutional Funding Partners	425,763		670,942
Accrued payroll and welfare	408,828		364,500
Accrued risk management fees	197,665		48,993
Accrued professional fees and outsourcing fees	68,002		37,684
Accrued marketing expenses	61,193		78,681
Short-term leasing liabilities	¥ 53,644		¥ 45,577
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Total accrued expenses and other current liabilities	Total accrued expenses and other current liabilities	Total accrued expenses and other current liabilities
Payable to third‑party sellers	¥ 47,114		¥ 55,704
Other payable to Individual Investors on Juzi Licai	30,477		86,841
Deferred service fees	26,737		51,966
Security deposits from third‑party sellers	16,435		10,718
Deferred interest and financial services income and others	9,880		23,038
Payable for acquisition of land use rights			516,000
Other accrued expenses	78,670		51,084
Total accrued expenses and other current liabilities	¥ 3,873,657	$ 607,861	¥ 2,926,347

Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Parenthetical) (Details) - CNY (¥) ¥ in Millions	1 Months Ended		12 Months Ended
	Feb. 28, 2021	Feb. 29, 2020	Dec. 31, 2020
Accrued Expenses And Other Current Liabilities Disclosure [Line Items]
Cash consideration on obtaining land use right	¥ 516.0	¥ 516.0	¥ 1,000.0

Related Party Balances and Transactions - Schedule of Significant Related Party Transactions (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Related Party Transaction [Line Items]
Sales of goods and services to related parties	¥ 7,731	¥ 2,087
Purchases of goods/services from related parties	20,493	28,645	¥ 836,865
Aileyou
Related Party Transaction [Line Items]
Sales of goods and services to related parties	7,731	2,087
Ji'an Aoxinlian
Related Party Transaction [Line Items]
Purchases of goods/services from related parties	¥ 20,493	20,658	7,200
Ji'an Aojuxun
Related Party Transaction [Line Items]
Purchases of goods/services from related parties		¥ 7,987	2,091
JD Group
Related Party Transaction [Line Items]
Purchases of goods/services from related parties			¥ 827,574

- Definition

Amount of revenue, fees and commissions earned from transactions between (a) a parent company and its subsidiaries; (b) subsidiaries of a common parent; (c) an entity and trusts for the benefit of employees, for example, but not limited to, pension and profit-sharing trusts that are managed by or under the trusteeship of the entity's management; (d) an entity and its principal, owners, management, or members of their immediate families; and (e) affiliates.

+ References

Reference 1: 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

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-Subparagraph (SX 210.6-07.1(c))
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 220
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-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.1(e))
-URI http://asc.fasb.org/extlink&oid=123367319&loc=SL114868664-224227

+ Details

Related Party Balances and Transactions - Schedule of Amounts Due from Related Parties (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Related Party Transaction [Line Items]
Amounts due from related parties	¥ 6,109	¥ 941
Due from L.P. by the Group
Related Party Transaction [Line Items]
Amounts due from related parties	¥ 6,109	¥ 941

- 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))
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Related Party Balances and Transactions - Schedule of Amounts Due to Related Parties (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)
Related Party Transaction [Line Items]
Amounts due to related parties	¥ 23,102	$ 3,625	¥ 67,514
Individual Director or Officer and his/her immediate family members under investment programs offered by the Group
Related Party Transaction [Line Items]
Amounts due to related parties	15,028		61,871
Due to Ji'an Aoxinlian by the Group
Related Party Transaction [Line Items]
Amounts due to related parties	4,790		4,711
Due to Aileyou by the Group
Related Party Transaction [Line Items]
Amounts due to related parties	¥ 3,285		¥ 932

- Definition

Carrying amount as of the balance sheet date of obligations due all related parties. For classified balance sheets, represents the current portion of such liabilities (due within one year or within the normal operating cycle if longer).

+ References

Reference 1: 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 2: 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))
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
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-Paragraph 1
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864

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

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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-Paragraph 1
-Subparagraph (SX 210.5-02.19(a))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 8: 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 9: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 470
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-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

+ Details

Taxation - Tax rates (Details) ¥ in Millions, $ in Millions		3 Months Ended	12 Months Ended
Taxation - Tax rates (Details) ¥ in Millions, $ in Millions	Jan. 01, 2008	Sep. 30, 2020	Dec. 31, 2021 USD ($)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2021 CNY (¥)
Income Taxes [Line Items]
Statutory tax rate (as a percentage)			25.00%	25.00%	25.00%
Preferential tax rate				2.40%
PRC
Income Taxes [Line Items]
Statutory tax rate (as a percentage)			25.00%	25.00%
Preferential tax rate		10.00%
Withholding income tax rate for dividend paid to foreign tax resident investors (as a percentage)	10.00%
Reduced withholding tax rate for beneficial owner (as a percentage)	5.00%
Unrecognized tax liabilities related to undistributed profits \| ¥								¥ 694
PRC \| Beizhipiji
Income Taxes [Line Items]
Statutory tax rate (as a percentage)			25.00%	25.00%	15.00%	15.00%	15.00%
PRC \| Shenzhen Lexin Software
Income Taxes [Line Items]
Statutory tax rate (as a percentage)			12.50%	12.50%	10.00%
PRC \| Shenzhen Dinsheng Computer Technology
Income Taxes [Line Items]
Statutory tax rate (as a percentage)			12.50%	12.50%	12.50%
PRC \| Beihai Aurora and Beihai Turing
Income Taxes [Line Items]
Preferential tax rate			15.00%
Tax exempt income rate (as a percent)			40.00%
Preferential income tax rate (as a percentage) from 2018 to 2022			9.00%	9.00%	9.00%	9.00%
Preferential income tax rate (as a percentage) from 2023 to 2030			15.00%
Hong Kong
Income Taxes [Line Items]
Statutory tax rate (as a percentage)			16.50%
Assessable profits \| $			$ 2
Withholding income tax rate for dividend paid to foreign tax resident investors (as a percentage)			8.25%
Online direct sales and services income \| PRC \| Maximum
Income Taxes [Line Items]
Value added tax rate (as a percent)			16.00%
Online direct sales and services income \| PRC \| Minimum
Income Taxes [Line Items]
Value added tax rate (as a percent)			13.00%
Premium membership fees, third-party sellers' commission fees, and financial services income \| PRC
Income Taxes [Line Items]
Value added tax rate (as a percent)			6.00%

Taxation - Components of Income Before Income Tax (Benefit)/Expense (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)
Components of (loss)/income before income tax expense
Income before income tax expense	¥ 2,769,534	$ 434,599	¥ 685,609	¥ 2,706,511
Income/(Loss) from non-China operations	(30,047)		15,143	41,461
Income from China operations	2,799,581		670,466	2,665,050
Income tax expense applicable to China operations	428,267		90,629	411,959
Income tax expense applicable to non-China operations	7,151		0	0
Income tax expense	¥ 435,418	$ 68,327	¥ 90,629	¥ 411,959
Effective tax rate	15.70%	15.70%	13.20%	15.20%
China Operations
Components of (loss)/income before income tax expense
Effective tax rate	15.30%	15.30%	13.50%	15.50%

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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-Paragraph 32
-Subparagraph (c)
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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-Section 25
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 220
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Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
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-Section S99
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-Subparagraph (SX 210.7-04(8))
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
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Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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+ Details

- Definition

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

+ References + Details

Taxation - Current and Deferred Portions of Income Tax (Benefit)/Expense (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)
Current and deferred portion of income tax expense
Current income tax expense	¥ 831,675		¥ 594,149	¥ 352,036
Deferred income tax expense	(396,257)	$ (62,181)	(503,520)	59,923
Income tax expense	¥ 435,418	$ 68,327	¥ 90,629	¥ 411,959

- Definition

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

+ References + Details

Taxation - Reconciliation Between Statutory Enterprise Income Tax Rate and Effective Tax Rate (Details)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Reconciliation between the statutory EIT rate and the effective tax rate
Statutory EIT rate	25.00%	25.00%	25.00%
Change of tax position		(2.40%)
Effect of tax holidays	(10.80%)	(9.60%)	(8.90%)
Tax effect of non-deductible expenses	0.90%	1.10%	(0.40%)
Changes in valuation allowance	0.10%	(0.30%)
Tax rate difference from statutory rate in other jurisdictions and others	0.50%	(0.60%)	(0.50%)
Effective tax rate for the Group	15.70%	13.20%	15.20%

Taxation - Reconciliation Between Statutory Enterprise Income Tax Rate and Effective Tax Rate (Parenthetical) (Details) ¥ in Thousands, $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2020 CNY (¥)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)	Dec. 31, 2018 CNY (¥)
Income Taxes [Line Items]
Current income tax expense		¥ 831,675		¥ 594,149	¥ 352,036
Deferred tax assets, valuation allowance		6,756		4,429	6,662	¥ 6,785
Income tax expense applicable to China operations		¥ 435,418	$ 68,327	¥ 90,629	¥ 411,959
Preferential tax rate				2.40%
Changes in valuation allowance		0.10%	0.10%	(0.30%)
Maximum
Income Taxes [Line Items]
Changes in valuation allowance					0.10%
PRC
Income Taxes [Line Items]
Preferential tax rate	10.00%
PRC \| Revision of Prior Period Correction
Income Taxes [Line Items]
Income tax expense applicable to China operations	¥ 16,200

- Definition

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

+ References + Details

Taxation - Effect of Tax Holiday Related to Group (Details) - CNY (¥) ¥ / shares in Units, ¥ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Tax holiday effect	¥ 299,578	¥ 66,110	¥ 239,732
Basic net income per share effect	¥ 0.81	¥ 0.18	¥ 0.67
Diluted net income per share effect	¥ 0.72	¥ 0.16	¥ 0.64

Taxation - Components of Deferred Tax Assets and Deferred Tax Liabilities (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)	Dec. 31, 2018 CNY (¥)
Deferred tax assets
Deferred guarantee income and other accrued expenses	¥ 832,412		¥ 477,023
Contingent guarantee liabilities	232,210		434,697
Provision for credit losses	646,460		359,293
Advertising expenses in excess of deduction limit	178		54,970
Net operating loss carryforwards	21,919		13,649
Less: valuation allowance	(6,756)		(4,429)	¥ (6,662)	¥ (6,785)
Total deferred tax assets	1,726,423		1,335,203
Net deferred tax assets	1,176,878	$ 184,678	747,332	157,138
Deferred tax liabilities
Contract assets and service fees receivable	523,752		490,204
Guarantee receivables	80,128		118,713
Total deferred tax liabilities	603,880		608,917
Deferred tax liabilities	¥ 54,335	$ 8,526	¥ 21,046	¥ 309,646

Taxation - Movement of Valuation Allowance (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Balance at beginning of the year	¥ (4,429)	¥ (6,662)	¥ (6,785)
Additions	(2,659)	(2,243)	(4,255)
Reversals	332	4,476	4,378
Balance at end of the year	¥ (6,756)	¥ (4,429)	¥ (6,662)

Taxation - Others (Details) - CNY (¥)	12 Months Ended
Taxation - Others (Details) - CNY (¥)	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Taxes [Line Items]
Statutory tax rate (as a percentage)	25.00%	25.00%	25.00%
Valuation allowance	¥ 6,756,000	¥ 4,429,000	¥ 6,662,000	¥ 6,785,000
Operating loss carryforwards	107,200,000	63,800,000
Valuation allowance for net operating loss carryforwards	41,900,000	22,700,000
Net operating loss carryforwards	21,919,000	13,649,000
Net operating loss carryforwards, expires in 2022	7,200,000
Net operating loss carryforwards, expires in 2023	6,100,000
Net operating loss carryforwards, expires in 2024	8,700,000
Net operating loss carryforwards, expires in 2025	32,700,000
Net operating loss carryforwards, expires in 2026	52,400,000
VIEs
Income Taxes [Line Items]
Net operating loss carryforwards	65,300,000	41,100,000
Provision for credit losses
Income Taxes [Line Items]
Valuation allowance	¥ 0	¥ 0	¥ 0

Convertible Notes - Additional Information (Details) - Convertible Notes $ / shares in Units, ¥ in Thousands, $ in Millions	1 Months Ended		12 Months Ended
	Sep. 30, 2019 CNY (¥)	Sep. 30, 2019 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)	Sep. 30, 2019 USD ($) $ / shares
Debt Instrument [Line Items]
Principal amount \| $					$ 300.0
Term of the loan	7 years	7 years
Interest rate (as a percent)	2.00%				2.00%
Maturity date	6 months	6 months
Debt instrument percentage	100.00%	100.00%
Net proceeds	¥ 1,868,100	$ 293.0
Net of debt discount	23,000				$ 3.6
Issuance costs	¥ 21,700				$ 3.4
Interest expense			¥ 44,900	¥ 47,800
Convertible notes			1,912,710	1,957,500
Unamortized debt discount and issuance costs			¥ 30,000	¥ 37,300
Class A Ordinary Shares
Debt Instrument [Line Items]
Conversion price per share \| $ / shares					$ 7.0
ADS
Debt Instrument [Line Items]
Conversion price per share \| $ / shares					$ 14.0

Ordinary Shares - Additional Information (Details) $ / shares in Units, ¥ in Millions, $ in Millions		1 Months Ended					12 Months Ended				37 Months Ended
	Dec. 26, 2017 Vote $ / shares shares	Jun. 30, 2021 shares	Jun. 30, 2018 shares	Jan. 31, 2018 CNY (¥) shares	Jan. 31, 2018 USD ($) $ / shares shares	Nov. 30, 2013 $ / shares shares	Dec. 31, 2021 shares	Dec. 31, 2020 shares	Dec. 31, 2017 CNY (¥)	Dec. 31, 2017 USD ($)	Jun. 30, 2021 shares
Class Of Stock [Line Items]
Number of new shares issued (in shares) \| shares						125,000,000
Par value of shares \| $ / shares						$ 0.0001
Proceeds from initial public offering, net of issuance costs				¥ 95.1					¥ 651.3	$ 100.1
Class A Ordinary Shares
Class Of Stock [Line Items]
Number of new shares issued (in shares) \| shares		15,000,000	27,000,000				42,000,000	27,000,000			42,000,000
Par value of shares \| $ / shares	$ 0.0001
Stock conversion basis	1
Number of votes per share \| Vote	1
Number of shares deemed issued \| shares							13,160,846	1,578,904
Class B Ordinary Shares
Class Of Stock [Line Items]
Par value of shares \| $ / shares	$ 0.0001
Stock conversion basis	1
Number of votes per share \| Vote	10
IPO \| ADS
Class Of Stock [Line Items]
Number of new shares issued (in shares) \| shares	12,000,000			1,800,000	1,800,000
Price per share \| $ / shares	$ 9.00
Proceeds from initial public offering, net of issuance costs				¥ 95.1	$ 14.7
IPO \| Class A Ordinary Shares
Class Of Stock [Line Items]
Number of new shares issued (in shares) \| shares	24,000,000			3,600,000	3,600,000
Par value of shares \| $ / shares					$ 0.0001

Net Income Per Share - Additional Information (Details) - shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Options to purchase ordinary shares and restricted share units
Antidilutive securities excluded from computation of earnings per share
Number of shares that were anti-dilutive and excluded from the calculation of diluted net (loss)/income per share	9,826,578	11,398,012	7,627,967

Net Income Per Share - Computation of Basic and Diluted 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 ordinary shareholders	¥ 2,333,923	$ 366,242	¥ 594,980	¥ 2,294,552
Denominator:
Weighted average number of ordinary shares outstanding—basic	368,460,867	368,460,867	364,733,164	355,625,970
Numerator:
Net income attributable to ordinary shareholders	¥ 2,333,923	$ 366,242	¥ 594,980	¥ 2,294,552
Interest expense associated with convertible notes reversed \| ¥	44,865		47,781	14,261
Net income attributable to ordinary shareholders for calculating diluted net income per share \| ¥	¥ 2,378,788		¥ 642,761	¥ 2,308,813
Denominator:
Weighted average number of ordinary shares outstanding—basic	368,460,867	368,460,867	364,733,164	355,625,970
Ordinary shares issuable upon the conversion of convertible notes using the if—converted method	42,857,143	42,857,143	42,857,143	12,563,600
Weighted average number of ordinary shares outstanding—diluted	414,992,716	414,992,716	411,229,810	375,831,131
Net income per share attributable to ordinary shareholders—diluted \| ¥ / shares	¥ 5.73		¥ 1.56	¥ 6.14
Ordinary shares
Denominator:
Net income per share attributable to ordinary shareholders—basic \| (per share)	6.33	$ 0.99	1.63	6.45
Denominator:
Net income per share attributable to ordinary shareholders—diluted \| (per share)	¥ 5.73	$ 0.90	¥ 1.56	¥ 6.14
Stock Options
Denominator:
Ordinary shares issuable of outstanding using the treasury stock method	3,381,510	3,381,510	3,255,913	6,470,848
Restricted Share Units
Denominator:
Ordinary shares issuable of outstanding using the treasury stock method	293,196	293,196	383,590	1,170,713

Employee Benefit Plan (Details) - CNY (¥) ¥ in Millions	12 Months Ended
Employee Benefit Plan (Details) - CNY (¥) ¥ in Millions	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Retirement Benefits [Abstract]
Contributions for employee benefits	¥ 146.1	¥ 85.9	¥ 128.7

- Definition

Amount of contribution received by defined benefit plan from employer which increases plan assets.

+ References + Details

Statutory Reserves and Restricted Net Assets (Details) - CNY (¥) ¥ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Statutory Reserves And Restricted Net Assets [Abstract]
Appropriation to the general reserve fund (as a percent)	10.00%
Required subsidiaries registered capital to avoid net profit allocation to general reserve (as a percent)	50.00%
Portion of after-tax profit to be allocated to statutory surplus fund under PRC law (as a percent)	10.00%
Required statutory surplus fund/registered capital ratio to avoid net profit allocation to statutory surplus fund (as a percent)	50.00%
Amount of net assets of the relevant PRC in the group, not available for distribution	¥ 4,189.9	¥ 3,771.9
Percentage of restricted net assets	52.20%

Share-Based Compensation - Schedule of Share-based Compensation 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 (¥)
SHARE-BASED COMPENSATION
Share-based compensation expenses	¥ 187,884		¥ 198,825	¥ 177,262
Processing and servicing cost
SHARE-BASED COMPENSATION
Share-based compensation expenses	9,968	$ 1,564	11,391	10,472
Sales and marketing expenses
SHARE-BASED COMPENSATION
Share-based compensation expenses	30,508	4,787	32,486	28,611
Research and development expenses
SHARE-BASED COMPENSATION
Share-based compensation expenses	39,413	6,185	46,116	42,977
General and administrative expenses
SHARE-BASED COMPENSATION
Share-based compensation expenses	¥ 107,995	$ 16,947	¥ 108,832	¥ 95,202

Share-Based Compensation - Additional Information (Details)	1 Months Ended			12 Months Ended
	Aug. 31, 2018 $ / shares	Aug. 31, 2018 CNY (¥) shares	Oct. 31, 2017 shares	Dec. 31, 2021 CNY (¥) $ / shares	Dec. 31, 2021 CNY (¥) ¥ / shares shares	Dec. 31, 2020 $ / shares	Dec. 31, 2020 CNY (¥) ¥ / shares shares	Dec. 31, 2019 $ / shares	Dec. 31, 2019 CNY (¥) ¥ / shares shares	Dec. 31, 2017 $ / shares
SHARE-BASED COMPENSATION
Income tax benefit					¥ 0		¥ 0		¥ 0
Expiration period (in years)					10 years
Option granted vesting period (in years)					4 years
Granted (in shares) \| shares					13,736,000		3,005,000		10,849,000
Share-based compensation expenses					¥ 187,884,000		¥ 198,825,000		¥ 177,262,000
Exercise Price \| $ / shares				$ 0.0001
Restricted Share Units
SHARE-BASED COMPENSATION
Option granted vesting period (in years)					4 years
Share-based compensation expenses					¥ 39,200,000		52,100,000		48,900,000
Period over which remaining unrecognized stock-based compensation expense is recognized					1 year 3 months 18 days
Fair value and intrinsic value of restricted share units vested					¥ 24,200,000		¥ 69,900,000		¥ 11,600,000
Unrecognized compensation cost related to unvested restricted share units				$ 5,700,000	¥ 5,700,000
Employees, Directors and Non-employee Directors
SHARE-BASED COMPENSATION
Weighted average grant date fair value of options granted (in CNY/dollars per share) \| ¥ / shares					¥ 23.0		¥ 25.5		¥ 35.6
Total intrinsic value of stock options					¥ 78,500,000		¥ 90,400,000		¥ 293,500,000
Total share-based compensation expense recognized for stock options granted					¥ 147,000,000.0		¥ 143,500,000		¥ 125,100,000
Granted (in shares) \| shares					13,489,000		2,829,000		5,091,000
Exercised (in dollars per share) \| $ / shares				$ 0.4529		$ 0.2399		$ 0.2548
Unrecognized compensation cost to be recognized and adjusted for future changes				$ 285,900,000	¥ 285,900,000
Period over which remaining unrecognized stock-based compensation expense is recognized					2 years 10 months 24 days
Exercise Price \| $ / shares				$ 0.5000		$ 0.5000		0.5000		$ 0.0001
Non-employees
SHARE-BASED COMPENSATION
Total share-based compensation expense recognized for stock options granted					¥ 1,700,000		¥ 3,200,000		¥ 3,300,000
Exercised (in dollars per share) \| $ / shares				$ 0.0001				$ 0.0001
Unrecognized compensation cost to be recognized and adjusted for future changes				$ 0	¥ 0
2017 Share Incentive Plan \| Employees, Directors and Non-employee Directors
SHARE-BASED COMPENSATION
Granted (in shares) \| shares		6,263,000
Exercised (in dollars per share) \| $ / shares	$ 5.15
Share-based compensation expenses		¥ 16,900,000
Class A Ordinary Shares \| 2017 Share Incentive Plan
SHARE-BASED COMPENSATION
Maximum number of ordinary shares authorized for stock based compensation \| shares			22,859,634
Expiration period (in years)			10 years
Annual increase percentage on number of shares issued and outstanding			1.00%
Ordinary shares issued commencing date			Jan. 01, 2019

Share-Based Compensation - Summary of Number of Shares Available for Issuance (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Shares available for issuance
Balance at the beginning of the period (in shares)	11,527	8,399	13,833
Additions (in shares)	3,641	3,594	3,512
Granted (in shares)	(13,736)	(3,005)	(10,849)
Cancelled/forfeited (in shares)	5,201	2,539	1,903
Balance at the end of the period (in shares)	6,633	11,527	8,399

Share-Based Compensation - Schedule of Activities for Stock Options (Details) ¥ in Thousands, shares in Thousands	12 Months Ended
	Dec. 31, 2021 $ / shares shares	Dec. 31, 2020 CNY (¥) $ / shares shares	Dec. 31, 2019 CNY (¥) $ / shares shares	Dec. 31, 2018 CNY (¥) $ / shares shares	Dec. 31, 2017 $ / shares	Dec. 31, 2021 CNY (¥) shares
Options Outstanding
Granted (in shares)	13,736	3,005	10,849
Cancelled/forfeited (in shares)	(5,201)	(2,539)	(1,903)
Weighted Average Exercise Price
Exercise Price \| $ / shares	$ 0.0001
Employees, Directors and Non-employee Directors
Options Outstanding
Balance at the beginning of the period (in shares)	13,660	16,241	20,142
Granted (in shares)	13,489	2,829	5,091
Exercised (in shares)	(2,426)	(3,140)	(7,798)
Cancelled/forfeited (in shares)	(4,594)	(2,270)	(1,194)
Balance at the end of the period (in shares)	20,129	13,660	16,241	20,142
Vested and expected to vest at the end of the period (in shares)						18,867
Exercisable at the end of the period (in shares)						4,447
Weighted Average Exercise Price
Balance at the beginning of the period (in dollars per share) \| $ / shares	$ 1.7569	$ 1.7386	$ 1.5164
Exercise Price \| $ / shares	0.5000	0.5000	0.5000		$ 0.0001
Exercised (in dollars per share) \| $ / shares	0.4529	0.2399	0.2548
Cancelled/forfeited (in dollars per share) \| $ / shares	3.2215	2.1589	2.3996
Balance at the end of the period (in dollars per share) \| $ / shares	0.7227	$ 1.7569	$ 1.7386	$ 1.5164
Vested and expected to vest at the end of the period (in dollars per share) \| $ / shares	0.7355
Exercisable at the end of the period (in dollars per share) \| $ / shares	$ 1.2408
Weighted Average Remaining Contractual Life and Aggregate Intrinsic Value
Weighted average remaining contractual life (in years)	8 years 5 months 4 days	7 years 10 months 13 days	8 years 2 months 19 days	7 years 11 months 12 days
Vested and expected to vest at the end of the period, weighted average remaining contractual life	8 years 5 months 1 day
Exercisable at the end of the period, weighted average remaining contractual life	6 years 6 months 10 days
Aggregate Intrinsic Value \| ¥		$ 189,072	$ 589,871	$ 353,559		¥ 155,018
Vested and expected to vest at the end of the period, Aggregate intrinsic value \| ¥						143,684
Exercisable at the end of the period, Aggregate intrinsic value \| ¥						¥ 19,540
Non-employees
Options Outstanding
Balance at the beginning of the period (in shares)	410	410	500
Exercised (in shares)	(160)		(90)
Balance at the end of the period (in shares)	250	410	410	500
Vested and expected to vest at the end of the period (in shares)						250
Exercisable at the end of the period (in shares)						250
Weighted Average Exercise Price
Balance at the beginning of the period (in dollars per share) \| $ / shares	$ 0.0001	$ 0.0001	$ 0.0001
Exercised (in dollars per share) \| $ / shares	0.0001		0.0001
Balance at the end of the period (in dollars per share) \| $ / shares		$ 0.0001	$ 0.0001	$ 0.0001
Vested and expected to vest at the end of the period (in dollars per share) \| $ / shares	0.0001
Exercisable at the end of the period (in dollars per share) \| $ / shares	$ 0.0001
Weighted Average Remaining Contractual Life and Aggregate Intrinsic Value
Weighted average remaining contractual life (in years)	5 years 6 months 29 days	6 years 6 months 29 days	7 years 6 months 29 days	8 years 6 months 29 days
Vested and expected to vest at the end of the period, weighted average remaining contractual life	5 years 6 months 29 days
Exercisable at the end of the period, weighted average remaining contractual life	5 years 6 months 29 days
Aggregate Intrinsic Value \| ¥		$ 8,962	$ 19,864	$ 12,439		¥ 3,076
Vested and expected to vest at the end of the period, Aggregate intrinsic value \| ¥						3,076
Exercisable at the end of the period, Aggregate intrinsic value \| ¥						¥ 3,076

Share-Based Compensation - Schedule of Activities for Stock Options (Parenthetical) (Details) - shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
SHARE-BASED COMPENSATION
Granted (in shares)	13,736,000	3,005,000	10,849,000
Non-employee directors
SHARE-BASED COMPENSATION
Granted (in shares)	0	0	0

Share-Based Compensation - Schedule of Estimated Fair Value of Stock Option Granted (Details) - Employees, Directors and Non-employee Directors	12 Months Ended
	Dec. 31, 2021 ¥ / shares $ / shares	Dec. 31, 2021 $ / shares	Dec. 31, 2020 ¥ / shares $ / shares	Dec. 31, 2020 $ / shares	Dec. 31, 2019 ¥ / shares $ / shares	Dec. 31, 2019 $ / shares
Expected volatility, minimum	46.68%	46.68%	45.25%	45.25%	41.81%	41.81%
Expected volatility, maximum	47.79%	47.79%	48.26%	48.26%	42.09%	42.09%
Risk-free interest rate, minimum (per annum)	1.11%	1.11%	0.67%	0.67%	1.80%	1.80%
Risk-free interest rate,maximum (per annum)	1.64%	1.64%	0.88%	0.88%	1.81%	1.81%
Exercise multiples			$ 2	$ 2
Expected term (in years)	10 years	10 years	10 years	10 years	10 years	10 years
Fair value of the underlying shares on the date of grants (US$) \| ¥ / shares	¥ 23.0		$ 25.5		¥ 35.6
Minimum
Exercise multiples	¥ 1.5	$ 1.5			¥ 1.5	$ 1.5
Fair value of the underlying shares on the date of grants (US$)		1.91		$ 3.15		5.02
Maximum
Exercise multiples	¥ 2.5	2.5			¥ 2.5	2.5
Fair value of the underlying shares on the date of grants (US$)		$ 6.31		$ 4.15		$ 6.02

Share-Based Compensation - Summary of Activities for Restricted Shares Units (Details) - Restricted Share Units - Employees, Directors and Non-employee Directors - $ / shares shares in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Options Outstanding
Balance at the beginning of the period (in shares)	3,654	5,994	1,237
Granted (in shares)	247	176	5,758
Vested (in shares)	(1,226)	(1,527)	(292)
Cancelled/forfeited (in shares)	(607)	(989)	(709)
Balance at the end of the period (in shares)	2,068	3,654	5,994
Weighted-Average Grant Date Fair Value
Balance at the beginning of the period (in dollars per share)	$ 5.27	$ 5.39	$ 7.47
Granted (in dollars per share)	3.21	4.27	5.10
Vested (in dollars per share)	5.35	5.43	7.49
Cancelled (in dollars per share)	5.12	5.57	5.78
Balance at the end of the period (in dollars per share)	$ 5.02	$ 5.27	$ 5.39

Share-Based Compensation - Summary of Activities for Restricted Shares Units (Parenthetical) (Details) - shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Non-employee directors \| Restricted Share Units
SHARE-BASED COMPENSATION
Granted (in shares)	0	0	0

Commitments and Contingencies - Debt Obligations (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Expected repayment amount of debt obligation
1 – 12 months	¥ 1,840,107
Total debt obligations	1,840,107
Interest payments
Total interest payments	295,116
Purchase obligations
1 – 12 months	826,839
Total	826,839
Commitment to Purchase Delinquent Loans
Purchase obligations
1 – 12 months	826,839
Total	826,839
Funding Debts Obligations
Expected repayment amount of debt obligation
1 – 12 months	3,348,485
13 – 24 months	744,864
Total debt obligations	4,093,349
Interest payments
1 – 12 months	247,104
13 – 24 months	48,012
Total interest payments	295,116
Short-term Borrowings
Expected repayment amount of debt obligation
1 – 12 months	1,799,741
Total debt obligations	1,799,741
Interest payments
1 – 12 months	40,366
Total interest payments	40,366
Convertible Notes
Expected repayment amount of debt obligation
1 – 12 months	38,254
13 – 24 months	1,949,370
Interest payments
1 – 12 months	38,254
13 – 24 months	36,660
Total interest payments	74,914
Convertible notes	1,912,710	¥ 1,957,500
Total convertible notes	1,987,624
Liabilities to Funding Partners \| Funding Debts Obligations
Expected repayment amount of debt obligation
1 – 12 months	3,101,381
13 – 24 months	696,852
Total debt obligations	¥ 3,798,233

Subsequent Events - Additional Information (Details) $ in Millions	Mar. 16, 2022 USD ($)
Subsequent Event
Subsequent Event [Line Items]
Stock repurchase plan, authorized amount	$ 50

Parent Company Only Condensed Financial Information - Condensed Balance Sheets (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 CNY (¥)	Dec. 31, 2018 CNY (¥)
Current assets
Cash and cash equivalents	¥ 2,664,132	$ 418,060	¥ 1,563,755	$ 245,387	¥ 2,085,234	¥ 1,148,292
Prepaid expenses and other current assets	941,150	147,687	1,004,845		1,324,924
Total current assets	16,655,364	2,613,588	16,418,182
Non-current assets
Long‑term investments	469,064	73,606	521,802		511,605
Other assets	826,883	129,756	462,285		¥ 454,421
Total non-current assets	4,370,830	685,878	3,926,983
TOTAL ASSETS	21,026,194	3,299,466	20,345,165
Current liabilities
Accrued interest payable	24,851	3,900	36,484
Accrued expenses and other current liabilities	3,873,657	607,861	2,926,347
Total current liabilities	10,187,120	1,598,581	12,019,673
Non-current liabilities
Convertible notes	1,882,689	295,435	1,920,227
Total non-current liabilities	2,771,265	434,871	2,794,754
TOTAL LIABILITIES	12,958,385	2,033,452	14,814,427
Commitments and contingencies (Note 21)
SHAREHOLDERS’ EQUITY:
Additional paid-in capital	2,918,993	458,054	2,724,006
Accumulated other comprehensive income	11,273	1,769	3,308
Retained earnings	4,195,791	658,411	2,113,956
Total equity attributable to owners of the company	8,027,616	1,259,708	5,490,738
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	21,026,194	3,299,466	20,345,165
Class A Ordinary Shares
SHAREHOLDERS’ EQUITY:
Ordinary shares	180	28	176
Class B Ordinary Shares
SHAREHOLDERS’ EQUITY:
Ordinary shares	57	9	58
Parent
Current assets
Cash and cash equivalents	1,845	290	846
Amounts due from subsidiaries	354,241	55,588	371,814
Prepaid expenses and other current assets	28,427	4,461	6,272
Total current assets	384,513	60,339	378,932
Non-current assets
Investments in subsidiaries, the VIEs and the VIEs' subsidiaries	9,563,708	1,500,754	7,004,849
Long‑term investments			68,151
Other assets	215	34
Total non-current assets	9,563,923	1,500,788	7,073,000
TOTAL ASSETS	9,948,436	1,561,127	7,451,932
Current liabilities
Amounts due to subsidiaries, the VIEs and the VIEs' subsidiaries	17,887	2,807	18,264
Accrued interest payable	8,735	1,371	9,233
Accrued expenses and other current liabilities	11,509	1,806	13,470
Total current liabilities	38,131	5,984	40,967
Non-current liabilities
Convertible notes	1,882,689	295,435	1,920,227
Total non-current liabilities	1,882,689	295,435	1,920,227
TOTAL LIABILITIES	1,920,820	301,419	1,961,194
Commitments and contingencies (Note 21)
SHAREHOLDERS’ EQUITY:
Additional paid-in capital	2,918,993	458,054	2,724,006
Accumulated other comprehensive income	11,273	1,769	3,308
Retained earnings	5,097,113	799,848	2,763,190
Total equity attributable to owners of the company	8,027,616	1,259,708	5,490,738
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	9,948,436	1,561,127	7,451,932
Parent \| Class A Ordinary Shares
SHAREHOLDERS’ EQUITY:
Ordinary shares	180	28	176
Parent \| Class B Ordinary Shares
SHAREHOLDERS’ EQUITY:
Ordinary shares	¥ 57	$ 9	¥ 58

Parent Company Only Condensed Financial Information - Condensed Balance Sheets (Parenthetical) (Details) - $ / shares	Dec. 31, 2021	Dec. 31, 2020
Class A Ordinary Shares
Condensed Balance Sheet Statements Captions [Line Items]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	1,889,352,801	1,889,352,801
Common stock, shares issued	286,430,946	268,935,832
Common stock, shares outstanding	273,270,100	267,356,928
Class B Ordinary Shares
Condensed Balance Sheet Statements Captions [Line Items]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	110,647,199	110,647,199
Common stock, shares issued	94,465,693	96,727,057
Common stock, shares outstanding	94,465,693	96,727,057
Parent \| Class A Ordinary Shares
Condensed Balance Sheet Statements Captions [Line Items]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	1,889,352,801	1,889,352,801
Common stock, shares issued	286,430,946	268,935,832
Common stock, shares outstanding	273,270,100	267,356,928
Parent \| Class B Ordinary Shares
Condensed Balance Sheet Statements Captions [Line Items]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	110,647,199	110,647,199
Common stock, shares issued	94,465,693	96,727,057
Common stock, shares outstanding	94,465,693	96,727,057

Parent Company Only Condensed Financial Information - Condensed Statements of Operations and Comprehensive Income (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 expenses:
General and administrative expenses	¥ (470,661)	$ (73,857)	¥ (451,284)	¥ (412,117)
Total operating expenses	(2,678,851)	(420,370)	(2,199,951)	(2,366,810)
Interest expense, net	(63,125)	(9,906)	(77,542)	(39,215)
Other long-term investments related impairment			(69,156)
Investment income/(loss)	(4,160)	(653)	7,885	52,211
Others, net	113,480	17,807	146,029	82,422
Income before income tax expense	2,769,534	434,599	685,609	2,706,511
Income tax expense	(435,418)	(68,327)	(90,629)	(411,959)
Other comprehensive income
Foreign currency translation adjustments, net of tax	7,965	1,250	10,596	7,020
Total comprehensive income	2,342,081	367,522	605,576	2,301,572
Parent
Operating expenses:
General and administrative expenses	(19,109)	(2,999)	(15,707)	(18,514)
Total operating expenses	(19,109)	(2,999)	(15,707)	(18,514)
Interest expense, net	(44,865)	(7,040)	(47,783)	(14,085)
Income from subsidiaries, the VIEs and the VIEs' subsidiaries	2,395,789	375,952	626,877	2,260,115
Investment income/(loss)	(1,980)	(311)	27,624	57,391
Others, net	11,239	1,764	3,969	9,645
Income before income tax expense	2,341,074	367,366	594,980	2,294,552
Income tax expense	(7,151)	(1,122)
Net income	2,333,923	366,244	594,980	2,294,552
Other comprehensive income
Foreign currency translation adjustments, net of tax	7,965	1,250	10,596	7,020
Total comprehensive income	¥ 2,341,888	$ 367,494	¥ 605,576	¥ 2,301,572

Parent Company Only Condensed Financial Information - 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 (¥)
Condensed Cash Flow Statements Captions [Line Items]
Net cash (used in) / provided by operating activities	¥ 2,667,419	$ 418,574	¥ (211,019)	¥ (778,504)
Cash flows from investing activities:
Cash paid on long-term investments	(38,657)	(6,066)	(97,200)	(387,705)
Cash paid on loans to third parties	(292,317)	(45,871)
Net cash (used in)/ provided by investing activities	414,615	65,062	(2,136,429)	(783,579)
Cash flows from financing activities:
Proceeds from receivables from Pre-IPO Series C-1 preferred shareholders				348,264
Proceeds from issuance of convertible notes, net of debt discount				2,096,408
Payment of debt issuance costs				(24,048)
Exercise of share-based awards	7,124	1,117	7,970	10,968
Net cash provided by/(used in) financing activities	(1,779,534)	(279,249)	1,233,011	3,058,821
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(23,592)	(3,699)	(27,970)	(8,246)
Net increase/(decrease) in cash, cash equivalents and restricted cash	1,278,908	200,688	(1,142,407)	1,488,492
Cash, cash equivalents and restricted cash at beginning of the year	2,839,906	445,643	3,985,626	2,497,134
Cash, cash equivalents and restricted cash at end of the year	4,118,814	646,331	2,839,906	3,985,626
Effect Due to the Adoption of ASC 326 (Note 2(g))
Cash flows from financing activities:
Cash, cash equivalents and restricted cash at beginning of the year	(3,313)
Cash, cash equivalents and restricted cash at end of the year			(3,313)
Parent
Condensed Cash Flow Statements Captions [Line Items]
Net cash (used in) / provided by operating activities	14,196	2,228	(53,626)	(6,596)
Cash flows from investing activities:
Cash paid on long-term investments	(18,868)	(2,961)
Proceeds from disposal of long-term investments	65,537	10,284	27,754	9,000
Cash paid on loans to third parties	(22,317)	(3,502)
Net cash used in funds to Group companies	(15,263)	(2,395)	(107,446)	(2,290,814)
Net cash (used in)/ provided by investing activities	9,089	1,426	(79,692)	(2,281,814)
Cash flows from financing activities:
Proceeds from receivables from Pre-IPO Series C-1 preferred shareholders				348,264
Proceeds from issuance of convertible notes, net of debt discount				2,096,408
Payment of debt issuance costs				(24,048)
Exercise of share-based awards	7,124	1,118	7,970	10,968
Net cash provided by/(used in) financing activities	7,124	1,118	7,970	2,431,592
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(29,410)	(4,615)	(13,607)	(4,140)
Net increase/(decrease) in cash, cash equivalents and restricted cash	999	157	(138,955)	139,042
Cash, cash equivalents and restricted cash at beginning of the year	846	133	139,917	875
Cash, cash equivalents and restricted cash at end of the year	1,845	$ 290	846	¥ 139,917
Parent \| Effect Due to the Adoption of ASC 326 (Note 2(g))
Cash flows from financing activities:
Cash, cash equivalents and restricted cash at beginning of the year	¥ (116)
Cash, cash equivalents and restricted cash at end of the year			¥ (116)

Parent Company Only Condensed Financial Information - Additional Information (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)
Condensed Cash Flow Statements, Captions [Line Items]
Decrease in amounts due from subsidiaries and other related parties	¥ 5,396	$ 847	¥ 941
Increase (decrease) in cash used in operating activities			(3,193,000)	¥ 49,000
Parent
Condensed Cash Flow Statements, Captions [Line Items]
Decrease in amounts due from subsidiaries and other related parties			(2,059,000)
Increase in investments in subsidiaries, VIEs and VIEs' subsidiaries			2,059,000
Increase (decrease) in cash used in operating activities			¥ (90,000)	¥ (2,224,000)