v3.26.1
Income Tax Expense (Tables)
12 Months Ended
Dec. 31, 2025
Income Tax Expense [Abstract]  
Schedule of Income Tax Expense Relates to the PRC

Income tax expense, all of which relates to the PRC, consists of the following for the years ended December 31, 2023, 2024 and 2025:

 

   Year ended December 31 
   2023   2024   2025 
   RMB   RMB   RMB 
Current tax expense   57,510,432    48,548,105    66,214,649 
Deferred tax benefit   (16,493,414)   (38,044,032)   (179,918,382)
                
Total income tax expense (benefit)   41,017,018    10,504,073    (113,703,733)
Schedule of Components of the Deferred Tax Assets and Liabilities

The principal components of the deferred tax assets and liabilities are as follows:

 

   Year ended December 31 
   2024   2025 
   RMB   RMB 
Deferred tax assets:        
Allowance for credit losses   379,327,404    543,694,787 
Debt securities   2,103,374    56,749,148 
Guarantee liabilities   87,819,352    110,745,738 
Net operating loss carry-forwards   12,183,421    18,135,138 
Lease liabilities   5,347,435    3,059,073 
Receivables from sales of loans   1,495,934    735,971 
Other deferred tax assets   252,144    
-
 
           
Total deferred tax assets   488,529,064    733,655,257 
           
Valuation allowance   (12,183,421)   (18,135,138)
           
Deferred tax assets, net of valuation allowance   476,345,643    714,984,717 
           
Net deferred tax assets   131,112,019    318,345,730 
           
Deferred tax liabilities:          
Intangible assets   (742,500)   (742,500)
Short term investments   
-
    
-
 
Right-of-use assets   (6,262,498)   (2,940,108)
Intercompany receivables   (41,453,522)   (41,453,522)
Guarantee assets   (311,497,133)   (411,210,627)
Undistributed earnings from structured funds   (58,699,859)   (21,029,446)
           
Total deferred tax liabilities   (418,655,512)   (477,376,203)
           
Net deferred tax liabilities   (73,421,888)   (80,737,217)
Schedule of Movement of Valuation Allowance

Movement of valuation allowance:

 

   Year ended December 31 
   2023   2024   2025 
   RMB   RMB   RMB 
At the beginning of year   9,116,290    10,041,747    12,183,421 
Current year additions   2,096,152    8,090,197    6,492,530 
Current year reversals   (722,911)   (3,884,082)   (205,135)
Current year expiration of carry-forwards   (447,784)   (2,064,441)   (335,678)
                
Net change in the valuation allowance   (925,457)   2,141,674    5,951,717 
                
At the end of year   10,041,747    12,183,421    18,135,138 
Schedule of Income Before Income Tax Expense

Income before income tax expense is as follows:

 

   Year ended December 31 
   2023   2024   2025 
   RMB   RMB   RMB 
Cayman Islands   (9,006,814)   (6,407,208)   (6,887,634)
BVI   4,407,292    10,672,841    (575,764)
Hong Kong   (1,168,618)   2,344,219    (592,263)
PRC   211,402,719    41,678,667    (576,042,114)
                
Total   205,634,579    48,288,519    (584,097,775)
Schedule of Reconciliation of Statutory Income Tax Rate to the Effective Income Tax Rate

The reconciliation of the PRC statutory income tax rate of 25%, the income tax rate of the jurisdiction where the Group has substantially all of its operations, to the effective income tax rate is as follows:

 

   Year ended December 31 
   2023   2024 
   RMB   RMB 
         
PRC statutory income tax rate   25%   25%
(Decrease)/increase in effective income tax rate resulting from:          
           
Tax holiday   (3.48)%   (7.04)%
Tax-free income   (2.64)%   (9.82)%
Non-deductible share option expense   0.91%   7.71%
Other non-deductible expenses   0.42%   0.83%
Zero tax rate in foreign countries   0.84%   (2.21)%
Differential and preferential tax rates   (0.11)%   (1.09)%
Changes in valuation allowance   0.67%   8.71%
Research and development super-deduction   (1.01)%   (0.58)%
Changes in unrecognized tax benefits   (0.82)%   0.34%
Others   0.17%   (0.11)%
           
Effective income tax rate   19.95%   21.74%

The Group has adopted ASU No. 2023-09 on a prospective basis beginning January 1, 2025. In accordance with the updated requirements of ASU No. 2023-09 for the year ended December 31, 2025, a reconciliation between PRC statutory rate and the Group’s effective tax rate is as follows:

 

   Year ended December 31,2025 
   RMB   % 
PRC statutory income tax rate   (146,024,444)   25%
(Decrease)/increase in effective income tax rate resulting from:          
Foreign Tax Effects   2,020,045    (0.35)%
Hong Kong:   2,020,045    (0.35)%
Statutory tax rate difference between Hong Kong and PRC   154,196    (0.03)%
Non-Taxable Income   1,865,849    (0.32)%
Tax holiday   (1,761,445)   0.30%
Tax-free income   26,520,703    (4.54)%
Other non-deductible expenses   252,691    (0.04)%
Changes in valuation allowance   6,287,395    (1.08)%
Research and development super-deduction   (1,269,304)   0.22%
Others   270,625    (0.05)%
           
Effective income tax rate   (113,703,733)   19.47%