Company Quick10K Filing
PPDAI Group
20-F 2019-12-31 Filed 2020-04-30
20-F 2018-12-31 Filed 2019-04-25
20-F 2017-12-31 Filed 2018-04-27

PPDF 20F Annual Report

Item 18
Part I
Item 1. Identity of Directors, Senior Management and Advisers
Item 2. Offer Statistics and Expected Timetable
Item 3. Key Information
Item 4. Information on The Company
Item 4A. Unresolved Staff Comments
Item 5. Operating and Financial Review and Prospects
Item 6. Directors, Senior Management and Employees
Item 7. Major Shareholders and Related Party Transactions
Item 8. Financial Information
Item 9. The Offer and Listing
Item 10. Additional Information
Item 11. Quantitative and Qualitative Disclosures About Market Risk
Item 12. Description of Securities Other Than Equity Securities
Part II
Item 13. Defaults, Dividend Arrearages and Delinquencies
Item 14. Material Modifications To The Rights of Security Holders and Use of Proceeds
Item 15. Controls and Procedures
Item 16A. Audit Committee Financial Expert
Item 16B. Code of Ethics
Item 16C. Principal Accountant Fees and Services
Item 16D. Exemptions From The Listing Standards for Audit Committees
Item 16E. Purchases of Equity Securities By The Issuer and Affiliated Purchasers
Item 16F. Change in Registrant's Certifying Accountant
Item 16G. Corporate Governance
Item 16H. Mine Safety Disclosure
Part III
Item 17. Financial Statements
Item 18. Financial Statements
Item 19. Exhibits
Note 5
EX-2.4 d844286dex24.htm
EX-8.1 d844286dex81.htm
EX-12.1 d844286dex121.htm
EX-12.2 d844286dex122.htm
EX-13.1 d844286dex131.htm
EX-13.2 d844286dex132.htm
EX-15.1 d844286dex151.htm
EX-15.2 d844286dex152.htm

PPDAI Group Earnings 2019-12-31

Balance SheetIncome StatementCash Flow

Form 20-F
03 years3 years1 yearP4YP4Yfalse2019FY0001691445--12-31E9true0000In 2019, the Group agrees to grant a RMB20,000 loan, which can be extend to RMB40,000, to Shanghai Qiaopan Technology Company Limited (“Qiaopan”), a third party company founded by a former employee of the Group. Together with the loan agreement, the Group agrees to lent certain equipment amounting to RMB8,000 to Qiaopan. The loan and equipment are convertible into a minority interest in Qiaopan upon occurrence of certain events in 2020. If Qiaopan fails to fulfill such events, Qiaopan is obligated to repay loan at a 8% interest rate and pay a rental fee of certain percentage on the equipment amount for its usage of the equipment. The Group considered this arrangement and concluded although Qiaopan meets the definition of VIE, the Group does not need to consolidate Qiaopan in its consolidated financial statements as the Group does not have power to direct the activities of Qiaopan.Depreciation and amortization expenses for the years ended December 31, 2017, 2018 and 2019 was RMB22,555, RMB42,162 and RMB, respectively. The Group acquired Shenzhen Rongze Commerecial Co., Ltd, Zhongyu Financial Leasing and Zhongyisheng Financial Guarantee Co., Ltd. in 2018. The acquisitions met the “single or similar asset threshold” and are not considered as business combination in accordance with ASC Topic 805. In 2019, the financial guarantee licenses related to Zhongyisheng Financial Guarantee Co., Ltd. was revoked and therefore full impairment was provided.Although the subsidiary approved the Software Enterprise Status is entitled to enjoy full exemption from EIT for two years from 2017, it is also subject to the annual tax inspection which was finally settled in 2018. As a result, the Group reversed a total of RMB268,051 tax expenses in the fourth quarter of 2018 including RMB136,424 related to the tax expenses of 2017 and RMB131,627 related to the tax expenses for first three quarters of 2018, which were recorded as tax payable in the balance sheet.The balances represent security deposits set aside as requested by certain institutional funding partners, held in deposit accounts with the institutional funding partners.The balance of payable mainly includes funds received from borrowers but not yet transferred to the institutional funding partners due to the settlement time lag.Since November 2019, the Company early repaid investors of certain investment programs before maturity of the investment program due to regulatory requirements. This is regarded as an advance to the borrowers, which resulted in an increase in quality assurance receivable. 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Table of Contents
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM
20-F
 
REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934
 
 
 
 
 
 
 
 
 
OR
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
 
 
 
 
 
 
 
 
For the fiscal year ended December 31, 2019
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
 
 
 
 
 
 
 
 
OR
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
 
 
 
 
 
 
 
 
Date of event requiring this shell company report
                    
For the transition period from
                    
to
                    
Commission file number:
001-38269
 
FinVolution Group
(Exact name of Registrant as specified in its charter)
 
Cayman Islands
(Jurisdiction of incorporation or organization)
Building G1, No. 999 Dangui Road
Pudong New District, Shanghai 200120
The People’s Republic of China
(Address of principal executive offices)
Simon Tak Leung Ho, Chief Financial Officer
Phone: +86 21 8030 3200
Email: simon@xinye.com
Building G1, No. 999 Dangui Road
Pudong New District, Shanghai 200120
The People’s Republic of China
(Name, Telephone,
E-mail
and/or Facsimile number and Address of Company Contact Person)
 
Securities registered or to be registered pursuant to Section 12(b) of the Act.
         
Title of each class
 
Trading
Symbol
 
Name of each exchange
on which registered
American depositary shares (one American depositary share representing five Class A ordinary shares, par value US$0.00001 per share)
 
FINV
 
New York Stock Exchange
Class A ordinary shares, par value US$0.00001 per share*
 
 
New York Stock Exchange
 
 
 
 
 
 
 
 
 
 
*
Not for trading, but only in connection with the listing on the New York Stock Exchange of American depositary shares.
 
 
 
 
 
 
 
 
 
Securities registered or to be registered pursuant to Section 12(g) of the Act.
Not Applicable
(Title of Class)
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act.
Not Applicable
(Title of Class)
 
As of December 31, 2019, there were 1,529,436,904 ordinary shares outstanding, consisting
of
943,436,904
 
Class A ordinary shares and
586,000,000
outstanding
Class B ordinary shares, both with a par value of US$0.00001 per share. 
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes  
    
No
  
If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.    Yes  
    No  ☒
Note – Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 from their obligations under those Sections.
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes  
    No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation
S-T
(§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes  
    No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated
filer or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” and “emerging growth company” in Rule
12b-2
of the Exchange Act. (Check one):
                     
Large accelerated filer
 
 
Accelerated filer
 
 
Non-accelerated filer
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Emerging growth company
 
 
 
 
 
 
 
If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards † provided pursuant to Section 13(a) of the Exchange Act.  
The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.  
Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                 
U.S. GAAP
 
 
        International Financial Reporting Standards as issued
 
 
 
Other  
 
        by the International Accounting Standards Board
 
 
 
 
 
 
 
 
 
 
 
 
 
If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.    Item 17  
    Item 18  
If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule
12b-2
of the Exchange Act).    Yes  
    No  
(APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS)
Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.     Yes  
    No  
 
 

Table of Contents
TABLE OF CONTENTS
             
   
1
 
   
3
 
 
   
4
 
ITEM 1.
     
4
 
ITEM 2.
     
4
 
ITEM 3.
     
4
 
ITEM 4.
     
60
 
ITEM 4A.
     
104
 
ITEM 5.
     
104
 
ITEM 6.
     
125
 
ITEM 7.
     
136
 
ITEM 8.
     
137
 
ITEM 9.
     
138
 
ITEM 10.
     
138
 
ITEM 11.
     
150
 
ITEM 12.
     
150
 
 
   
153
 
ITEM 13.
     
153
 
ITEM 14.
     
153
 
ITEM 15.
     
153
 
ITEM 16A.
     
155
 
ITEM 16B.
     
155
 
ITEM 16C.
     
155
 
ITEM 16D.
     
156
 
ITEM 16E.
     
156
 
ITEM 16F.
     
156
 
ITEM 16G.
     
156
 
ITEM 16H.
     
157
 
 
   
158
 
ITEM 17.
     
158
 
ITEM 18.
     
158
 
ITEM 19.
     
158
 
   
163
 
i

Table of Contents
INTRODUCTION
Unless otherwise indicated or the context otherwise requires in this annual report on Form
20-F:
  “ADSs” refers to our American depositary shares, each of which represents five Class A ordinary shares;
 
 
  “average rate of transaction service fees” for a given period is computed by dividing the total amount of transaction service fees we received during the period by the total volume of loans originated on our platform during the same period. For loans funded by individual investors, the transaction service fee is collected from borrowers for our services in matching them with investors and for other services we provide over the loans’ lifecycle. For loans funded by institutional funding partners, the transaction service fee is collected from institutional funding partners and, if applicable, from third-party guarantee companies for our services in borrower introduction and preliminary credit assessment, as well as other services we provide over the loans’ lifecycle;
 
 
  “China” or the “PRC” refers to the People’s Republic of China, excluding, for the purposes of this annual report only, Hong Kong, Macau and Taiwan;
 
 
  “delinquency rate” refers to the balance of the outstanding principal for loans that were 15 to 29, 30 to 59, 60 to 89, 90 to 119, 120 to 149 and 150 to 179 calendar days past due as of a date as a percentage of the total outstanding balance of principal for the loans on our platform as of such date. Loans that are delinquent for 180 days or more are typically considered 
charged-off
and are not included in the delinquency rate calculation;
 
 
  “investment transactions” for a given period refers to the total number of investments executed by investors on our platform whether using self-discretionary investing tool or automated investing tools or deployed through our investment programs during such period. An investor’s investment in a loan is counted as one investment transaction;
 
 
  number of “unique borrowers” at a certain point in time refers to the cumulative number of borrowers whose loans on our platform had been funded before such point in time;
 
 
  number of “unique borrowers” in a given period refers to the total number of borrowers whose loans on our platform were funded during such period;
 
 
  “ordinary shares” refers to our Class A and Class B ordinary shares, par value US$0.00001 per share;
 
 
  “RMB” and “Renminbi” refer to the legal currency of China;
 
 
  “US$,” “U.S. dollars,” “$,” and “dollars” refer to the legal currency of the United States;
 
 
  “vintage delinquency rate” refers to (i) the total amount of principal for all the loans in a vintage that become delinquent, less (ii) the total amount of recovered past due principal for all loans in the same vintage, and then divided by (iii) the total amount of initial principal for all loans in such vintage. For purpose of this annual report, loans facilitated during a specified time period are referred to as a vintage. Loans that are delinquent for 180 days or more are included in the calculation of vintage delinquency rate; and
 
 
  “We,” “us,” “our company,” “our” and “FinVolution” refer to FinVolution Group, its subsidiaries, variable interest entities and their respective subsidiaries, if any.
 
 
1

Table of Contents
Our reporting currency is the Renminbi because our business is mainly conducted in China and all of our revenues are denominated in Renminbi. This annual report contains translations of Renminbi amounts into U.S. dollars at specific rates solely for the convenience of the reader. The conversion of Renminbi into U.S. dollars in this annual report is based on the rate certified for customs purposes by the Federal Reserve Bank of New York. Unless otherwise noted, all translations from Renminbi to U.S. dollars and from U.S. dollars to Renminbi in this annual report were made at RMB6.9618 to US$1.00, the noon buying rate on December 31, 2019 set forth in the H.10 statistical release of the U.S. Federal Reserve Board. We make no representation that any Renminbi or U.S. dollar amounts could have been, or could be, converted into U.S. dollars or Renminbi, as the case may be, at any particular rate, the rates stated below, or at all. The PRC government imposes control over its foreign currency reserves in part through direct regulation of the conversion of Renminbi into foreign exchange and through restrictions on foreign trade. On April 24, 2020, the noon buying rate set forth in the H.10 statistical release of the Federal Reserve Board was RMB7.0813 to US$1.00.
2

Table of Contents
FORWARD-LOOKING STATEMENTS
This annual report on Form
20-F
contains forward-looking statements that reflect our current expectations and views of future events. Known and unknown risks, uncertainties and other factors, including those listed under “Item 3. Key Information—D. Risk Factors,” may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigations Reform Act of 1995.
You can identify some of these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “potential,” “continue” or other similar expressions. We have based these forward-looking statements largely on our current expectations and projections about future events that we believe may affect our financial condition, results of operations, business strategy and financial needs. These forward-looking statements include statements relating to:
  our mission and strategies;
 
 
  our future business development, financial condition and results of operations;
 
 
  the expected growth of the online consumer finance platform market in China;
 
 
  our expectations regarding demand for and market acceptance of our products and services;
 
 
  our expectations regarding our relationships with investors and borrowers;
 
 
  competition in our industry;
 
 
  general economic and business condition in China and elsewhere; and
 
 
  relevant government policies and regulations relating to our industry.
 
 
These forward-looking statements involve various risks and uncertainties. Although we believe that our expectations expressed in these forward-looking statements are reasonable, our expectations may later be found to be incorrect. Our actual results could be materially different from our expectations. You should thoroughly read this annual report and the documents that we refer to with the understanding that our actual future results may be materially different from and worse than what we expect. In addition, the rapidly changing nature of the online consumer finance industry results in significant uncertainties for any projections or estimates relating to the growth prospects or future condition of our market. Furthermore, if any one or more of the assumptions underlying the market data are later found to be incorrect, actual results may differ from the projections based on these assumptions. You should not place undue reliance on these forward-looking statements. We qualify all of our forward-looking statements by these cautionary statements.
The forward-looking statements made in this annual report relate only to events or information as of the date on which the statements are made in this annual report. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
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Table of Contents
PART I
ITEM 1.
IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS
 
 
Not applicable
ITEM 2.
OFFER STATISTICS AND EXPECTED TIMETABLE
 
 
Not applicable.
ITEM 3.
KEY INFORMATION
 
 
A.
Selected Financial Data
 
 
The following selected consolidated statements of comprehensive income/(loss) data and selected consolidated cash flows data for the years ended December 31, 2017, 2018 and 2019, and selected consolidated balance sheets data as of December 31, 2018 and 2019 have been derived from our audited consolidated financial statements included elsewhere in this annual report beginning on page
F-1.
The following selected consolidated statements of comprehensive income/(loss) data and selected consolidated cash flows data for the year ended December 31, 2016 and selected consolidated balance sheets data as of December 31, 2015, 2016 and 2017 have been derived from our audited consolidated financial statements not included in this annual report. The following selected consolidated cash flows data for the year ended December 31, 2015 are not derived from our audited consolidated financial statements. These cash flows data were restated due to our adoption of ASU 2016-18 on January 1, 2018, which requires us to retrospectively restate the statement of cash flows to include restricted cash and restricted cash equivalents. Our consolidated financial statements are prepared and presented in accordance with U.S. GAAP. Our historical results do not necessarily indicate results expected for any future periods. You should read this Selected Financial Data section together with our consolidated financial statements and the related notes and “Item 5. Operating and Financial Review and Prospects” below.
The following table presents our selected consolidated statements of comprehensive income/(loss) data for the years ended December 31, 2015, 2016, 2017, 2018 and 2019.
                                                 
 
Year Ended December 31,
 
 
2015
 
 
2016
 
 
2017
 
 
2018
(1)
 
 
2019
 
 
RMB
 
 
RMB
 
 
RMB
 
 
RMB
 
 
RMB
 
 
US$
 
 
(in thousands, except for share, per share and per ADS data)
 
Selected Consolidated Statements of Comprehensive Income/(Loss) Data:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating revenues:
   
     
     
     
     
     
 
Loan facilitation service fees
   
164,279
     
911,448
     
2,843,287
     
2,919,234
     
3,310,875
     
475,577
 
Post-facilitation service fees
   
8,011
     
126,823
     
668,819
     
922,797
     
1,200,373
     
172,423
 
Net interest income
(2)
   
4,249
     
41,789
     
31,377
     
256,108
     
1,106,669
     
158,963
 
Other revenue
   
25,062
     
170,403
     
491,400
     
376,915
     
344,840
     
49,533
 
Changes in expected discretionary payment to IRF investors
   
—  
     
—  
     
(107,660
)    
68,619
     
—  
     
—  
 
                                                 
Net revenues
   
201,601
     
1,250,463
     
3,927,223
     
4,543,673
     
5,962,757
     
856,496
 
                                                 
Operating expenses:
   
     
     
     
     
     
 
Origination and servicing expenses
   
(99,383
)    
(349,852
)    
(890,160
)    
(875,905
)    
(1,164,716
)    
(167,301
)
Origination and servicing expenses-related party
   
—  
     
(38,297
)    
(84,362
)    
(109,666
)    
(43,494
)    
(6,248
)
Sales and marketing expenses
   
(125,439
)    
(352,952
)    
(788,291
)    
(710,754
)    
(720,333
)    
(103,469
)
General and administrative expenses
   
(101,805
)    
(123,160
)    
(423,795
)    
(383,388
)    
(435,816
)    
(62,601
)
Research and development expenses
   
(14,137
)    
(114,648
)    
(164,869
)    
(317,965
)    
(390,585
)    
(56,104
)
Provision for loan receivable
(2)
   
(5,912
)    
(34,705
)    
(46,586
)    
(192,749
)    
(299,504
)    
(43,021
)
Provision for accounts receivable
   
—  
     
—  
     
—  
     
(106,652
)    
(261,882
)    
(37,617
)
                                                 
Total operating expenses
   
(346,676
)    
(1,013,614
)    
(2,398,063
)    
(2,697,079
)    
(3,316,330
)    
(476,361
)
                                                 
Other income/(expenses)
(3)
   
77,299
     
312,908
     
(171,542
)    
774,063
     
210,053
     
30,173
 
                                                 
Profit before income tax expenses
   
(67,776
)    
549,757
     
1,357,618
     
2,620,657
     
2,856,480
     
410,308
 
                                                 
Income tax expense
   
(4,364
)    
(48,267
)    
(274,711
)    
(151,206
)    
(481,962
)    
(69,230
)
                                                 
Net profit/(loss)
   
(72,140
)    
501,490
     
1,082,907
     
2,469,451
     
2,374,518
     
341,078
 
                                                 
Less: Net profit/(loss) attributable to non-controlling interest shareholders
   
—  
     
—  
     
(76
)    
377
     
1,668
     
240
 
Accretion on Series A, B and C convertible redeemable preferred shares to redemption value
   
(108,792
)    
(562,022
)    
(3,073,471
)    
—  
     
—  
     
—  
 
                                                 
 
 
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Table of Contents
                                                 
Net profit/(loss) attributable to FinVolution Group’s ordinary shareholders
   
(180,932
)    
(60,532
)    
(1,990,488
)    
2,469,074
     
2,372,850
     
340,838
 
Total comprehensive income/(loss) attributable to FinVolution Group
   
(97,137
)    
440,992
     
1,182,917
     
2,512,367
     
2,384,960
     
342,577
 
                                                 
Weighted average number of ordinary shares used in computing net income/(loss) per share
(4)
   
     
     
     
     
     
 
Basic
   
665,000,000
     
665,000,000
     
779,804,270
     
1,498,780,165
     
1,525,814,189
     
1,525,814,189
 
Diluted
   
665,000,000
     
665,000,000
     
779,804,270
     
1,599,592,231
     
1,552,423,060
     
1,552,423,060
 
Net income/(loss) per share attributable to ordinary shareholders
   
     
     
     
     
     
 
Net income/(loss) per share – Basic
   
(0.2721
)    
(0.091
)    
(2.5525
)    
1.6474
     
1.5551
     
0.2234
 
Net income/(loss) per share – Diluted
   
(0.2721
)    
(0.091
)    
(2.5525
)    
1.5436
     
1.5285
     
0.2196
 
Net income/(loss) per ADS
(5)
   
     
     
     
     
     
 
Net income/(loss) per ADS – Basic
   
(1.3605
)    
(0.4551
)    
(12.7627
)    
8.2369
     
7.7757
     
1.1169
 
Net income/(loss) per ADS – Diluted
   
(1.3605
)    
(0.4551
)    
(12.7627
)    
7.7178
     
7.6424
     
1.0978
 
 
 
 
(1) On January 1, 2018, we adopted new revenue guidance ASC Topic 606, “Revenue from Contracts with Customers,” using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting method under Topic 605.
 
 
(2) We historically presented interest income, interest expenses and provision for loan receivables within the financial statement line item “net interest income (expense) and loan provision losses.” In 2019, we reclassified provision for loan receivables amounting RMB299.5 million from “net interest income (expense) and loan provision losses” in operating revenue to “provision for loan receivables” in operating expenses. The amount of provision for loan receivables that have been reclassified to conform to the current period financial statement presentation were RMB5.9 million, RMB34.7 million, RMB46.6 million and RMB192.7 million for the year ended December 31, 2015, 2016, 2017 and 2018, respectively.
 
 
(3) The following table sets forth the breakdown of our other income/(expenses):
 
 
                                                                                               
 
Year Ended December 31,
 
 
2015
 
 
2016
 
 
2017
 
 
2018
 
 
2019
 
 
RMB
 
 
RMB
 
 
RMB
 
 
RMB
 
 
RMB
 
 
US$
 
 
(in thousands)
 
Other income/(expenses)
   
     
     
     
     
     
 
Gain from quality assurance
   
  42,358
     
99,961
     
5,885
     
510,894
     
98,405
     
14,135
 
Realized gain/(loss) from financial guarantee derivatives
   
19,549
     
31,999
     
   169,103
     
(157,244
)    
31,444
     
4,517
 
Fair value change of financial guarantee derivatives
   
15,757
     
146,653
     
(383,061
)    
272,057
     
(56,287
)    
(8,085
)
Gain from disposal of subsidiary
   
—  
     
20,611
     
—  
     
—  
     
—  
     
—  
 
Other income/(expenses), net
   
(365
)    
13,684
     
36,531
     
148,356
     
136,491
     
19,606
 
                                                 
Total other income/(expenses)
   
77,299
     
312,908
     
(171,542
)    
   774,063
     
   210,053
     
  30,173
 
                                                 
 
 
(4) On October 20, 2017, we effected a
100-for-1
share split, such that our authorized share capital of US$50,000 was divided into 5,000,000,000 shares with a par value of US$0.00001 each. For the purpose of calculating net loss per share, such share split has been retroactively reflected for all periods presented herein.
 
 
(5) Each ADS represents five Class A ordinary shares. On October 20, 2017, we effected a
100-for-1
share split, such that our authorized share capital of US$50,000 was divided into 5,000,000,000 shares with a par value of US$0.00001 each. For the purpose of calculating loss per ADS, such share split has been retroactively reflected for all periods presented herein.
 
 
The following table presents our selected consolidated balance sheet data as of December 31, 2015, 2016, 2017, 2018 and 2019.
                                                                                               
 
As of December 31,
 
 
2015
 
 
2016
 
 
2017
 
 
2018
 
 
2019
 
 
RMB
 
 
RMB
 
 
RMB
 
 
RMB
 
 
RMB
 
 
US$
 
 
(in thousands)
 
Selected Consolidated Balance Sheets Data:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
   
92,495
     
404,678
     
1,891,131
     
1,616,164
     
2,324,542
     
333,900
 
Restricted cash
(1)
   
269,761
     
802,887
     
2,392,573
     
3,677,557
     
3,686,203
     
529,490
 
Short-term investments
   
34,468
     
260,000
     
1,958,910
     
1,694,660
     
114,560
     
16,456
 
Quality assurance receivable
   
115,484
     
286,812
     
1,152,769
     
2,064,366
     
3,649,642
     
524,238
 
Investments
   
—  
     
2,428
     
12,234
     
167,501
     
952,833
     
136,866
 
Contract assets
   
—  
     
—  
     
—  
     
112,103
     
20,555
     
2,952
 
Financial guarantee derivative assets
   
20,638
     
167,291
     
—  
     
56,287
     
—  
     
—  
 
                                                 
 
 
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Table of Contents
                                                                                                                 
Total assets
   
736,920
     
2,147,291
     
8,603,663
     
13,142,467
     
18,304,456
     
2,629,268
 
                                                 
Payable to platform customers
   
176,165
     
421,659
     
1,113,966
     
905,034
     
684,630
     
98,341
 
Quality assurance payable
   
125,651
     
473,704
     
2,062,844
     
3,819,379
     
4,776,153
     
686,051
 
Deferred revenue
   
13,680
     
162,896
     
265,094
     
—  
     
—  
     
—  
 
Provision for payment to investor reserve fund investor
   
—  
     
—  
     
107,660
     
—  
     
—  
     
—  
 
Contract liabilities
   
—  
     
—  
     
—  
     
165,469
     
55,728
     
8,005
 
Financial guarantee derivative liabilities
   
—  
     
—  
     
215,770
     
—  
     
—  
     
—  
 
                                                 
Total liabilities
   
468,543
     
1,375,069
     
4,921,475
     
7,156,729
     
10,292,976
     
1,478,494
 
                                                 
Total mezzanine equity
   
585,770
     
1,210,645
     
—  
     
—  
     
—  
     
—  
 
                                                 
Total shareholders’ equity/(deficit)
   
(317,393
)    
(438,423
)    
3,682,188
     
5,985,738
     
8,011,480
     
1,150,774
 
                                                 
 
 
 
(1) The following table sets forth the breakdown of restricted cash:
 
 
                                                                                                                 
 
As of December 31,
 
 
2015
 
 
2016
 
 
2017
 
 
2018
 
 
2019
 
 
RMB
 
 
RMB
 
 
RMB
 
 
RMB
 
 
RMB
 
 
US$
 
 
(in thousands)
 
Restricted cash:
   
     
     
     
     
     
 
Quality assurance commitment and quality assurance fund
   
52,863
     
329,549
     
1,058,617
     
2,414,449
     
1,473,749
     
211,691
 
Investor reserve funds
   
19,680
     
51,679
     
175,215
     
17,971
     
41,958
     
6,027
 
Cash received from investors and borrowers
   
176,165
     
421,659
     
1,113,966
     
905,034
     
684,630
     
98,341
 
Designated accounts for security deposits
   
—  
     
—  
     
—  
     
—  
     
390,000
     
56,020
 
Cash received via consolidated trust that has not yet been distributed
   
—  
     
—  
     
44,775
     
303,667
     
799,646
     
114,862
 
Collateral for short-term borrowings
   
21,053
     
—  
     
—  
     
26,000
     
251,853
     
36,176
 
Escrow accounts
   
—  
     
—  
     
—  
     
10,436
     
44,367
     
6,373
 
                                                 
Total restricted cash
   
269,761
     
802,887
     
2,392,573
     
3,677,557
     
3,686,203
     
529,490
 
                                                 
 
 
On January 1, 2018, we adopted ASU
2016-18,
which requires us to retrospectively restate the statement of cash flows to include restricted cash and restricted cash equivalents. The following table presents our selected restated consolidated cash flow data for the years ended December 31, 2015, 2016, 2017, 2018 and 2019.
                                                                                               
 
Year Ended December 31,
 
 
2015
 
 
2016
 
 
2017
 
 
2018
 
 
2019
 
 
RMB
 
 
RMB
 
 
RMB
 
 
RMB
 
 
RMB
 
 
US$
 
 
(in thousands)
 
Summary Consolidated Cash Flows Data:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net cash provided by/(used in) operating activities
   
79,163
     
1,088,227
     
3,409,451
     
1,884,956
     
(215,522
)    
(30,958
)
Net cash used in investing activities
   
(132,242
)    
(684,112
)    
(2,450,800
)    
(1,447,013
)    
(828,219
)    
(118,966
)
Net cash provided by financing activities
   
338,045
     
438,701
     
2,132,933
     
530,097
     
1,749,512
     
251,301
 
Effect of exchange rate changes on cash, cash equivalents and restricted cash
   
—  
     
2,493
     
(15,445
)    
41,977
     
11,253
     
1,618
 
Net increase in cash, cash equivalents and restricted cash
   
284,966
     
845,309
     
3,076,139
     
1,010,017
     
717,024
     
102,995
 
Cash, cash equivalents and restricted cash at beginning of year
   
77,290
     
362,256
     
1,207,565
     
4,283,704
     
5,293,721
     
760,395
 
Cash, cash equivalents and restricted cash at end of year
   
362,256
     
1,207,565
     
4,283,704
     
5,293,721
     
6,010,745
     
863,390
 
 
 
B.
Capitalization and Indebtedness
 
 
Not applicable.
C.
Reasons for the Offer and Use of Proceeds
 
 
Not applicable.
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Table of Contents
D.
Risk Fac