The following are the significant related party transactions with Ping An Group and its subsidiaries during the period :

Ping An Group’s subsidiaries offer investment products available on the Group’s technology platform. The investment products provided by Ping An Group’s subsidiaries primarily include private investment funds, insurance products, bank products and trust plans. Fees are collected from Ping An Group’s subsidiaries for facilitation of investment products offered on the Group’s technology platform. The Group generally receives service fees based on a certain percentage of the volume of investment products facilitated and loans made by Ping An Group’s subsidiaries. Such fee is recognized upon successful facilitation.

Other income mainly comprises income for the account management services provided by the Group to Ping An Group’s subsidiaries. The Group generally receives the service fees monthly based on the number of accounts managed and the performance of the underlying loans managed by the Group for Ping An Group’s subsidiaries. In September 2022, the account management service contracts with Ping An Group’s subsidiaries were revised as a result of worse-than-expected loan performance. Based on the negotiation with Ping An Group’s subsidiaries, the Group agreed to revise the contract and refunded RMB

million to Ping An Group’s subsidiaries and charged the account management fees based on loan performance after September 2022.

Net interest income – Interest expense

on-balance

Investment income

Investment income mainly consists of investment return received by the Group on investment products issued or managed by Ping An Group’s subsidiaries.

Finance costs

Ping An Group’s subsidiaries provide deposit services and financing services to the Group.

Finance costs include interest paid to Ping An Group’s subsidiaries for borrowings used for businesses other than the retail credit and enablement business, interest paid to Ping An Group’s subsidiaries for its subscription in the consolidated wealth management products managed by the Group and interest income received from Ping An Group’s subsidiaries for cash deposited by the Group in Ping An Group’s subsidiaries. The finance cost is calculated based on the effective interest rates on the outstanding balances.

Sales and marketing expenses, general and administrative expenses, operation and servicing expenses, and technology and analytics expenses

Ping An Group and its subsidiaries provide a wide spectrum of services to the Group, including but not limited to:

(1) accounting processing and data communication services; (2) transaction settlement and custodian service; (3) office premise rental services; (4) technology support; and (5) human resources support. The Group, in return, pays service fees to Ping An Group and its subsidiaries. The precise scope of service, service fees calculation, method of payment and other details of the service arrangement are agreed between the relevant parties separately.

The services fees paid by the Group to Ping An Group’s subsidiaries are determined through a bidding procedure according to the internal policies and procedures of the Group. If no tendering and bidding process is required under the Group’s internal policies, they are determined through mutual negotiations between the two parties based on historical fees of such services and comparable market rates.

Other gains/(losses) - net

Other gains/(losses) – net mainly consist of foreign exchange losses due to the foreign exchange swaps provided by Ping An Group’s subsidiaries.

Leases

Convertible promissory notes payable

Ping An Group’s subsidiaries also held convertible promissory notes issued by the Company, which is disclosed in Note 36.

Purchase of financial assets

The Group purchased certain assets management plans, trust plans, mutual funds, private funds and other equity investments, bank wealth management products and corporate bonds managed and/or issued by Ping An Group’s subsidiaries. Please refer to Note 4.3 for the Group’s maximum exposure related to these investments.

non-performing

million, respectively.

non-performing

non-performing

million and nil as of December 31, 2022, 2023 and 2024,

 

The following are the significant related party balances with Ping An Group and its subsidiaries during as of period end:

 

 

These non-trade balances with related parties were mainly for treasury management purposes which are collectable or repayable on demand or within one year.