| LOANS RECEIVABLE, NET |
7. LOANS RECEIVABLE, NET
Loans receivable, net is
comprised of the following:
| | |
As of December 31, | |
| | |
2024 | | |
2025 | | |
2025 | |
| | |
RMB | | |
RMB | | |
USD | |
| Loans receivable, current portion | |
| | |
| | |
| |
| Franchisees | |
| 381,417,382 | | |
| 376,740,608 | | |
| 53,873,190 | |
| Third parties | |
| 39,000,000 | | |
| 39,000,000 | | |
| 5,576,926 | |
| Less: allowances of credit losses | |
| (334,953,915 | ) | |
| (376,942,275 | ) | |
| (53,902,028 | ) |
| Total | |
| 85,463,467 | | |
| 38,798,333 | | |
| 5,548,088 | |
| | |
| | | |
| | | |
| | |
| Loans receivable, non-current portion | |
| | | |
| | | |
| | |
| Franchisees | |
| 22,771,354 | | |
| 19,559,368 | | |
| 2,796,952 | |
| Less: allowances of credit losses | |
| (7,399,116 | ) | |
| (7,524,543 | ) | |
| (1,075,995 | ) |
| Total | |
| 15,372,238 | | |
| 12,034,825 | | |
| 1,720,957 | |
Loans receivable to franchisees
represent loan agreements entered with certain franchisees to finance the renovation of certain franchised-and-managed hotels with maturity
from one month to five years and the interest rate from 4.7% to 9.9% per annum.
Loans receivable to third
parties mainly represent loan agreements entered with certain third-party companies to support their daily operation or bridge loan of
mortgage with maturity from one year to three years and the interest rate from 7.9% to 18.0% per annum.
The following table presents
the aging of past-due gross loans receivable as of December 31, 2024 and 2025:
| | |
1 to 3 months
past due | | |
4 to 6 months
past due | | |
7 to 12 months
past due | | |
Over 1 year
past due | | |
Total | |
| | |
RMB | | |
RMB | | |
RMB | | |
RMB | | |
RMB | |
| December 31, 2024 | |
| 34,445,795 | | |
| 32,464,971 | | |
| 55,303,739 | | |
| 266,000,526 | | |
| 388,215,031 | |
| December 31, 2025 | |
| 5,048,385 | | |
| 4,120,609 | | |
| 19,441,513 | | |
| 372,326,957 | | |
| 400,937,464 | |
| December 31, 2025 (USD) | |
| 721,909 | | |
| 589,239 | | |
| 2,780,099 | | |
| 53,242,047 | | |
| 57,333,294 | |
Movement of allowance for
loans receivable for the years ended December 31, 2024 and 2025 are as follows:
| | |
2023 | | |
2024 | | |
2025 | |
| | |
RMB | | |
RMB | | |
RMB | | |
USD | |
| Balance of the beginning of the year | |
| 279,317,673 | | |
| 316,890,848 | | |
| 342,353,031 | | |
| 48,955,832 | |
| Effect on the opening balance of adoption of ASU 2016-03 | |
| 22,176,502 | | |
| - | | |
| - | | |
| - | |
| Provision | |
| 15,396,673 | | |
| 25,462,183 | | |
| 42,113,787 | | |
| 6,022,191 | |
| Balance of the end of the year | |
| 316,890,848 | | |
| 342,353,031 | | |
| 384,466,818 | | |
| 54,978,023 | |
| Evaluated for impairment on an individual
basis | |
| 116,302,348 | | |
| 109,047,517 | | |
| 117,253,726 | | |
| 16,767,060 | |
|