| Other assets |
| | |
Note | |
December 31,
2024 | | |
December 31,
2025 | |
| | |
| |
RMB | | |
RMB | |
| Guarantee deposits | |
(i) | |
| 423,441,637 | | |
| 362,384,435 | |
| Receivables from sales of loans | |
(ii) | |
| 152,225,024 | | |
| 77,770,721 | |
| Prepayments | |
(iii) | |
| 111,079,096 | | |
| 82,430,366 | |
| Purchased loans with credit deterioration | |
(iv) | |
| 419,519,965 | | |
| 442,761,986 | |
| Receivables for default guarantee payments | |
(v) | |
| 28,519,198 | | |
| 87,065,328 | |
| Receivables from loan facilitation service | |
(vi) | |
| 45,703,316 | | |
| 4,704,201 | |
| Receivables of guarantee service | |
(vii) | |
| 4,197,264 | | |
| 605,890 | |
| Non-marketable equity securities | |
(viii) | |
| 13,178,264 | | |
| - | |
| Amounts due from employees | |
(ix) | |
| 7,741,156 | | |
| 6,898,760 | |
| Other receivables | |
(x) | |
| 345,293,660 | | |
| 646,882,153 | |
| Total | |
| |
| 1,550,898,580 | | |
| 1,711,503,840 | |
| (i) | Guarantee deposits are deposits that the Group provided, through Guangdong Nanfeng Financial Guarantee Group Co., Ltd (“Guangzhou Nanfeng”), a company that holds a financial guarantee license, for loans granted (a) under its consolidated VIE Zhonghai Lanhai Structured Fund 30-X, which is not structured in a stratified way and requires guarantee from a third party, and (b) under the cooperation with commercial banks for loan facilitation, post-facilitation and guarantee services, refer to Note 2(e)(ii) Off-balance sheet loans. |
| (ii) | As mentioned in Note 5, the Group transferred the delinquent loans to third parties so that the Group could collect the payment more quickly than to simply dispose the collaterals through litigation. The loan is derecognized if the Group does not retain any risk and rewards after transferring the loan. Such transfer would be recorded as sales according to ASC 860-10-40-5. There is no constrain on the transferee’s rights to pledge or exchange, and the Group will not maintain effective control on the transferred loans for which the transferred loans are accounted for as sales without repurchase agreements. | | (iii) | Prepaid accounts mainly include litigation fees, rent, water, electricity and property management and network charges prepaid in the daily operation of the Group. Another important component is the prepayment of building purchase. |
| (iv) | The purchased loans with credit deterioration are overdue loans repurchased at par value by the Group from commercial banks under the commercial bank partnership model. In 2023, the Group started purchasing loans with credit deterioration. As of December 31, 2025, the purchased loans with credit deterioration amounted to RMB664,663,913 and allowance for credit loss amounted to RMB221,901,927. |
The following tables
provides information on delinquency, which is the primary credit quality indicator for purchased loans with credit deterioration as of
December 31, 2025.
| |
|
31 - 90 days past due |
|
|
91 - 180 days past due |
|
|
181+ days past due |
|
|
Total |
|
| |
|
|
RMB |
|
|
|
RMB |
|
|
|
RMB |
|
|
|
RMB |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Purchased loans with credit deterioration |
|
|
50,875,333 |
|
|
|
6,631,875 |
|
|
|
607,156,705 |
|
|
|
664,663,913 |
|
The table below sets forth the movement of allowance for
credit loss for the years ended December 31, 2025:
| | |
2025 | |
| | |
RMB | |
| As of January 1 | |
| 188,777,551 | |
| Provision for credit losses | |
| 18,590,628 | |
| (Charge-offs)/Recovery | |
| 14,533,748 | |
| As of December 31 | |
| 221,901,927 | |
| (v) | Under the commercial bank partnership model when a borrower is overdue for a certain number of days, the Group pays interest to the bank on behalf of the borrower, which is subsequently charged to the borrower, and this amount accounts for the receivables for default guarantee payments. |
| (vi) | Under the commercial bank partnership model, the Group provides loan facilitation services and post-facilitation services. |
| (vii) | Under the commercial bank partnership model, the Group calculates the guarantee obligation and recognizes the guarantee fee receivable. |
| (viii) | The measurement alternative is selected for the non-marketable equity securities. Under the measurement alternative, the equity securities without readily determinable fair value are measured at cost minus impairment and adjusted for changes in observable prices. |
In June 2016, the Group invested 10,003,334 shares at RMB3.00 per share,
which represents 2.14% of the paid-in capital, in Guangdong Qingyuan Rural Commercial Bank (“Qingyuan Rural”). The Group transferred
2 million shares to an unrelated third party at RMB3.00 per share which is same as the investment cost on September 18, 2019. The Group
transferred 1.7 million shares to an unrelated third party at RMB2.00 per share and recognized an investment loss of RMB1,524,159 on December
26, 2023. In 2023, the Group recognized an impairment of RMB5,907,577. In 2025, the Group disposed of such investment in Qingyuan Rural
and recognized an investment loss of RMB1,428,031. As of December 31, 2025, the Group has Nil investment in Qingyuan Rural.
| (ix) | Amounts due from employees mainly include temporary advances to employees for payments on behalf of the Group. |
| (x) | Other receivables primarily comprise (i) RMB391 million of amounts
receivable from third parties, which are unsecured, non-interest bearing and repayable within one year; and (ii) RMB156 million of amounts
paid in advance to third parties for which application against the corresponding contractual obligations is pending in accordance with
the underlying terms, expected to occur within one year. |
|