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 | % |
|