Financial assets sold under agreements to repurchase are effectively short-term collateralized borrowings. In these transactions, the Group receives cash in exchange for transferring financial assets as collateral and recognizes an obligation to reacquire the financial assets for cash at the transaction’s maturity. These types of transactions create risks, including (1) fair value of the financial assets transferred may decline below the amount of obligation to reacquire the financial assets, and therefore create an obligation to pledge additional amounts, or to replace collaterals pledged, and (2) the Group does not have sufficient liquidity to repurchase the financial assets at the transaction’s maturity.

Funds obtained from financial institutions

In 2022, the Group transferred loan principals, interests and financing service fee receivables with carrying amount of RMB5,965,977 to an unrelated third-party transferee, Pingan Puhui Lixin Asset Management Co., Ltd (“Pingan Puhui”), with a 13.8% per annum rate of return. In 2023, the Group transferred additional loan principals, interests and financing service fee receivables with carrying amount of RMB78,506,284 to Pingan Puhui, with a 12.8% to 13.8% per annum rate of return. In 2024, the Group transferred additional loan principals, interests and financing service fee receivables with carrying amount of RMB 197,573,465 to Pingan Puhui, with a 12.8% to 13.8% per annum rate of return, a portion of them with carry amount of RMB101,872,043 is settled and repurchased back by the Group. In 2025, the Group transferred additional loan principals, interests and financing service fee receivables with carrying amount of RMB 12,479,559 to Pingan Puhui, with a 12.8% to 13.8% per annum rate of return, a portion of them with carry amount of RMB54,986,088 is settled and repurchased back by the Group. However, in accordance with ASC 860, Transfers and Servicing, the right to earnings is not derecognized upon transfer as the Group is required to repurchase: (a) the transferred loans which become overdue more than 360 days; (b) the remaining loan principals which are not matured upon the end of the term of the transfer. As of December 31, 2025, the amount of funds obtained from Pingan Puhui and the interest payable are RMB 137,667,154 and RMB 13,174,228, respectively.

In 2022, the Group transferred loan principals, interests and financing service fee receivables with carrying amount of RMB113,053,053 to an unrelated third-party transferee, China Foreign Economy and Trade Trust Co.,Ltd (“FOTIC”) , with a 12.5% per annum rate of return. In 2023, the Group transferred additional loan principals, interests and financing service fee receivables with carrying amount of RMB1,442,034,780 to FOTIC, with a 11.5% to 12.5% per annum rate of return. In 2024, the Group transferred additional loan principals, interests and financing service fee receivables with carrying amount of RMB1,220,808,014 to FOTIC, with a 11.5% to 12.5% per annum rate of return, a portion of them with carry amount of RMB1,506,610,663 is settled and repurchased back by the Group. In 2025, the Group transferred additional loan principals, interests and financing service fee receivables with carrying amount of RMB762,913,855 to FOTIC, with a 11.5% to 12.5% per annum rate of return, a portion of them with carry amount of RMB1,047,772,349 is settled and repurchased back by the Group. However, in accordance with ASC 860, Transfers and Servicing, the right to earnings is not derecognized upon transfer as the Group is required to repurchase: (a) the transferred loans which become overdue more than 913 days; (b) the remaining loan principals which are not matured upon the end of the term of the transfer. As of December 31, 2025, the amount of funds obtained from FOTIC and the interest payable are RMB984,426,690 and RMB1,249,547, respectively.

In 2023, the Group transferred loan principals, interests and financing service fee receivables with carrying amount of RMB60,330,828 to an unrelated third-party transferee, Shanghai Xingbo Enterprise Management Partnership (Limited Partnership) (“Shanghai Xingbo”), with a 12.5% per annum rate of return. In 2024, a portion of them with carry amount of RMB43,436,307 is settled and repurchased back by the Group. In 2025, a portion of them with carry amount of RMB3,079,305 is settled and repurchased back by the Group. However, in accordance with ASC 860, Transfers and Servicing, the right to earnings is not derecognized upon transfer as the Group is required to repurchase the remaining loan principals which are not matured two years after the date of transfer. As of December 31, 2025, the amount of funds obtained from Shanghai Xingbo and the interest payable are RMB13,815,216 and RMB 426,161, respectively.

In 2023, the Group transferred loan principals, interests and financing service fee receivables with carrying amount of RMB143,964,403 to an unrelated third-party transferee, Zhonghai Trust Co.,Ltd. (“Zhonghai Trust”), with a 11.3% to 13.2% per annum rate of return. In 2024, the Group transferred additional loan principals, interests and financing service fee receivables with carrying amount of RMB 253,263,591 to Zhonghai Trust Co.,Ltd. (“Zhonghai Trust”), with a 11.3% to 13.2% per annum rate of return, a portion of them with carry amount of RMB132,241,088 is settled and repurchased back by the Group. In 2025, a portion of them with carry amount of RMB204,086,906 is settled and repurchased back by the Group. However, in accordance with ASC 860, Transfers and Servicing, the right to earnings is not derecognized upon transfer as the Group is required to repurchase: (a) the transferred loans which become overdue more than 720 days; (b) the remaining loan principals which are not matured upon the end of the term of the transfer. As of December 31, 2024, the amount of funds obtained from Zhonghai Trust and the interest payable are RMB60,900,000 and RMB137,323, respectively.

In 2023, the Group transferred loan principals, interests and financing service fee receivables with carrying amount of RMB206,493,005 to an unrelated third-party transferee, Cofco Trust Co. Ltd. (“Cofco Trust”), with a 11.5% to 12.3% per annum rate of return. In 2024, the Group transferred additional loan principals, interests and financing service fee receivables with carrying amount of RMB 902,523,554 to Cofco Trust Co. Ltd. (“Cofco Trust”), with a 11.5% to 12.3% per annum rate of return, a portion of them with carry amount of RMB310,475,497 is settled and repurchased back by the Group. In 2025, the Group transferred additional loan principals, interests and financing service fee receivables with carrying amount of RMB 1,389,560,000 to Cofco Trust Co. Ltd. (“Cofco Trust”), with a 11.5% to 12.3% per annum rate of return, a portion of them with carry amount of RMB795,248,837 is settled and repurchased back by the Group. However, in accordance with ASC 860, Transfers and Servicing, the right to earnings is not derecognized upon transfer as the Group is required to repurchase if the repayment of the transferred loans is not satisfactory for which the payback of the pledged assets is less than 10%, 20%, 30% and 70% of the initial remaining principal amount of the pledged assets at the agreed date. As of December 31, 2025, the amount of funds obtained from Cofco Trust and the interest payable are RMB 1,392,852,224 and RMB27,614,576, respectively.

In 2023, the Group transferred loan principals, interests and financing service fee receivables with carrying amount of RMB56,038,750 to an unrelated third-party transferee, Changzhou Huitong Investment Co. (“Changzhou Huitong”), with a 11.5% to 13.0% per annum rate of return. In 2024, a portion of them with carry amount of RMB26,311,503 is settled and repurchased back by the Group. In 2025, a portion of them with carry amount of RMB28,977,247 is settled and repurchased back by the Group. However, in accordance with ASC 860, Transfers and Servicing, the right to earnings is not derecognized upon transfer as the Group is required to repurchase the remaining loan principals which are not matured two years after the date of transfer. As of December 31, 2025, the amount of funds obtained from Changzhou Huitong and the interest payable are RMB750,000 and RMB 7,219, respectively.

In 2024, the Group transferred loan principals, interests and financing service fee receivables with carrying amount of RMB 26,169,926 to an unrelated third-party transferee, Guangxi Jinkong Asset Management Co., Ltd. (“Guangxi Asset”), with a 12.0% to 12.5% per annum rate of return, a portion of them with carry amount of RMB6,581,146 is settled and repurchased back by the Group. In 2025, the Group transferred loan principals, interests and financing service fee receivables with carrying amount of RMB 12,153,095 to an unrelated third-party transferee, Guangxi Jinkong Asset Management Co., Ltd. (“Guangxi Asset”), with a 12.0% to 12.5% per annum rate of return, a portion of them with carry amount of RMB9,811,715 is settled and repurchased back by the Group. However, in accordance with ASC 860, Transfers and Servicing, the right to earnings is not derecognized upon transfer as the Group is required to repurchase the remaining loan principals which are not matured two years after the date of transfer. As of December 31, 2024, the amount of funds obtained from Guangxi Asset and the interest payable are RMB21,930,160 and RMB353,322, respectively.

In 2024, the Group transferred loan principals, interests and financing service fee receivables with carrying amount of RMB50,000,000 to an unrelated third-party transferee, Ruijing Financial Assets Management Company (“Jiangxi Ruijin”), with a 12.5% per annum rate of return. In 2025, loan principals, interests and financing service fee receivables with the carrying amount of RMB50,000,000 is settled and repurchased back by the group. As of December 31, 2025, the amount of funds obtained from Jiangxi Ruijin and the interest payable are both nil.

In 2024, the Group transferred loan principals, interests and financing service fee receivables with carrying amount of RMB52,850,000 to an unrelated third-party transferee, Nanjing Zijin Asset Management Co., Ltd (“Zijin Asset”), with a 10.0% per annum rate of return. In 2025, the Group transferred loan principals, interests and financing service fee receivables with carrying amount of RMB 18,150,000 to an unrelated third-party transferee, Nanjing Zijin Asset Management Co., Ltd. (““Zijin Asset””), with a 10.0% per annum rate of return, a portion of them with carry amount of RMB33,523,760 is settled and repurchased back by the Group. However, in accordance with ASC 860, Transfers and Servicing, the right to earnings is not derecognized upon transfer as the Group is required to repurchase the remaining loan principals which are not matured two years after the date of transfer. As of December 31, 2025, the amount of funds obtained from Zijin Asset and the interest payable are RMB37,476,240 and RMB68,592, respectively.

In 2024, the Group transferred loan principals, interests and financing service fee receivables with carrying amount of RMB81,660,000 to an unrelated third-party transferee, Jiantou Holding Limited Liability Company (“Jiantou Holding”), with a 10.0% per annum rate of return, a portion of them with carry amount of RMB2,951,072 is settled and repurchased back by the Group. In 2025, the Group transferred loan principals, interests and financing service fee receivables with carrying amount of RMB104,083,060 to an unrelated third-party transferee, Jiantou Holding Limited Liability Company (“Jiantou Holding”), with a 10.0% per annum rate of return, a portion of them with carry amount of RMB145,793,487 is settled and repurchased back by the Group. However, in accordance with ASC 860, Transfers and Servicing, the right to earnings is not derecognized upon transfer as the Group is required to repurchase the remaining loan principals which are not matured two years after the date of transfer. As of December 31, 2025, the amount of funds obtained from Jiantou Holding and the interest payable are RMB36,998,500 and RMB67,475, respectively.

In 2025, the Group transferred loan principals, interests and financing service fee receivables with carrying amount of RMB35,000,000 to an unrelated third-party transferee, Guangdong Yuepu Microcredit Refinance Co., Ltd. (“Yuepu”), with a 10.5% per annum rate of return, However, in accordance with ASC 860, Transfers and Servicing, the right to earnings is not derecognized upon transfer as the Group is required to repurchase the remaining loan principals which are not matured two years after the date of transfer. As of December 31, 2025, the amount of funds obtained from Jiantou Holding and the interest payable are RMB35,000,000 and RMB112,292, respectively.

In 2025, the Group transferred loan principals, interests and financing service fee receivables with carrying amount of RMB1,400,000 to an unrelated third-party transferee, Xinhou Investment Management Co., Ltd. (“Xinhou Investment”), with a 12.0% per annum rate of return, However, in accordance with ASC 860, Transfers and Servicing, the right to earnings is not derecognized upon transfer as the Group is required to repurchase the remaining loan principals which are not matured two years after the date of transfer. As of December 31, 2025, the amount of funds obtained from Jiantou Holding and the interest payable are RMB1,400,000 and RMB7,467, respectively.

The below table provides the contractual maturities of the gross obligations under repurchase agreements.

Aggregate annual maturities of long-term borrowing obligations (based on final maturity dates) are as follows:

The Group pledges certain assets to secure borrowings under agreements to repurchase and other borrowings. The table provides the total carrying amounts of pledged assets by asset types.