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Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 20-F

(Mark One)

REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(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, 2023.

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: 001-38752

Qifu Technology, Inc.

(Exact Name of Registrant as Specified in Its Charter)

N/A

(Translation of Registrant’s Name Into English)

Cayman Islands

(Jurisdiction of Incorporation or Organization)

7/F Lujiazui Finance Plaza

No. 1217 Dongfang Road

Pudong New Area, Shanghai 200122

People’s Republic of China

(Address of Principal Executive Offices)

Alex Xu, Chief Financial Officer

7/F Lujiazui Finance Plaza

No. 1217 Dongfang Road

Pudong New Area, Shanghai 200122

People’s Republic of China

Phone: +86 21 5835-7668

Email: ir@360shuke.com

(Name, Telephone, Email 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 (s)

    

Name of each exchange on which registered

American depositary shares, each
representing two Class A ordinary shares, par value US$0.00001 per share

QFIN

The Nasdaq Global Select Market

Class A ordinary shares, par value
US$0.00001 per share

3660

The Stock Exchange of Hong Kong Limited

Securities registered or to be registered pursuant to Section 12(g) of the Act:

None

(Title of Class)

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:

None

(Title of Class)

Table of Contents

Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report:

As of December 31, 2023, there were 315,226,128 class A ordinary shares issued and outstanding, par value 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.

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.  

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b).

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
by the International Accounting Standards Board

Other

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

Page

INTRODUCTION

1

FORWARD-LOOKING STATEMENTS

3

PART I.

4

ITEM 1 IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

4

ITEM 2 OFFER STATISTICS AND EXPECTED TIMETABLE

4

ITEM 3 KEY INFORMATION

4

ITEM 4 INFORMATION ON THE COMPANY

76

ITEM 4A UNRESOLVED STAFF COMMENTS

121

ITEM 5 OPERATING AND FINANCIAL REVIEW AND PROSPECTS

121

ITEM 6 DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES

142

ITEM 7 MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS

153

ITEM 8 FINANCIAL INFORMATION

156

ITEM 9 THE OFFER AND LISTING

157

ITEM 10 ADDITIONAL INFORMATION

158

ITEM 11 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

172

ITEM 12 DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

172

PART II.

177

ITEM 13 DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES

177

ITEM 14 MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS

177

ITEM 15 CONTROLS AND PROCEDURES

177

ITEM 16 [RESERVED]

178

ITEM 16A AUDIT COMMITTEE FINANCIAL EXPERT

178

ITEM 16B CODE OF ETHICS

178

ITEM 16C PRINCIPAL ACCOUNTANT FEES AND SERVICES

178

ITEM 16D EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES

178

ITEM 16E PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS

179

ITEM 16F CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT

179

ITEM 16G CORPORATE GOVERNANCE

180

ITEM 16H MINE SAFETY DISCLOSURE

180

ITEM 16I DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

180

ITEM 16J INSIDER TRADING POLICIES

180

ITEM 16K CYBERSECURITY

180

PART III.

182

ITEM 17 FINANCIAL STATEMENTS

182

ITEM 18 FINANCIAL STATEMENTS

182

ITEM 19 EXHIBITS

182

SIGNATURES

184

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INTRODUCTION

Unless otherwise indicated and except where the context otherwise requires, references in this annual report to:

“Qifu Technology,” “we,” “us,” “our” and “our company” are to Qifu Technology, Inc. and its subsidiaries, and, in the context of describing our operations and consolidated financial information, the VIEs in China and their respective subsidiaries;
“360 Group” are to 360 Security Technology Inc. and its controlled affiliates and predecessors;
“ADSs” are to American depositary shares, each of which represents two of our class A ordinary shares;
“China” or “the PRC” are to the People’s Republic of China. Unless otherwise indicated, the policies, laws, regulations and interpretations adopted by the government of mainland China, which are specifically referenced in this annual report, are not applicable to Hong Kong, Macau or Taiwan. To the extent that mainland China laws and regulations are applied in Hong Kong, the legal and operational risks associated with operating in mainland China may also apply to our operations in Hong Kong;
“class A ordinary shares” are to our class A ordinary shares, par value US$0.00001 per share;
“Fuzhou Financing Guarantee” are to Fuzhou 360 Financing Guarantee Co., Ltd.;
“Fuzhou Microcredit” are to Fuzhou 360 Online Microcredit Co., Ltd.;
“HK$” or “Hong Kong dollars” are to the legal currency of Hong Kong;
“shares,” or “ordinary shares” are to our class A ordinary shares, and in the context of describing our share capital before March 31, 2023, also include our class B ordinary shares, par value US$0.00001 per share, as the context requires and as applicable;
“RMB” or “Renminbi” are to Renminbi, the legal currency of the PRC;
“Shanghai Financing Guarantee” are to Shanghai 360 Financing Guarantee Co., Ltd. (now known as Shanghai Qiyaoxin Technology Co., Ltd.);
“Shanghai Qibutianxia” are to Shanghai Qibutianxia Information Technology Co., Ltd. (formerly known as Beijing Qibutianxia Technology Co., Ltd.);
“Shanghai Qiyu” are to Shanghai Qiyu Information & Technology Co., Ltd.;
“US$” or “U.S. dollars” are to United States dollars, the lawful currency of the United States;
“U.S. GAAP” are to accounting principles generally accepted in the United States;
“variable interest entities,” “VIE” or “VIEs” are to Shanghai Qiyu, Fuzhou Financing Guarantee and Shanghai Financing Guarantee; and
“WFOE” or “Shanghai Qiyue” are to Shanghai Qiyue Information & Technology Co., Ltd.

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Unless otherwise stated, all translations from RMB to U.S. dollars and from U.S. dollars to RMB in this annual report were made at a rate of RMB7.0999 to US$1.00, the exchange rate on December 29, 2023 set forth in the H.10 statistical release of the U.S. Federal Reserve Board.

In addition, unless the context indicates otherwise, for the discussion of our business references to:

“180 day+ vintage delinquency rate” are to a percentage that is equal to (i) the total amount of principal for all loans we facilitated in a fiscal quarter that become delinquent for more than 180 days, less the total amount of recovered past due principal for all loans we facilitated that were delinquent for more than 180 days in the same fiscal quarter, divided by (ii) the total initial principal amount of loans we facilitated in such fiscal quarter; loans under Intelligent Credit Engine and other technology solutions are not included in the delinquency rate calculation;
“30 day collection rate” are to a percentage that is equal to (i) the amount of principal that is repaid in one month among the total amount of principal that is overdue as of a specified date, divided by (ii) the total amount of principal that is overdue as of such specified date;
“90 day+ delinquency rate” are to a percentage that is equal to (i) the outstanding loan balance of on- and off-balance sheet loans we facilitated that are 91 to 180 calendar days past due, divided by (ii) the total outstanding loan balance of on- and off-balance sheet loans we facilitated across our platform as of a specific date; loans that are charged-off and loans under Intelligent Credit Engine and other technology solutions are not included in the delinquency rate calculation;
“capital-light model” are to a comprehensive suite of technology-enabled loan facilitation services spanning the loan lifecycle, from borrower acquisition, technology empowerment in credit assessment to post-facilitation services, under which we do not take any credit risk;
“capital-heavy loans” are to loans under which we bear credit risks;
“Credit-Tech” are to credit technology services, which refer to services using technology solutions to empower and enhance credit services;
“loan facilitation volume” are to the total principal amount of loans facilitated or originated by, as the context mandates, a Credit-Tech platform, a traditional financial institution or other market players in the credit industry; in the context of the volume of loans we facilitated or originated, the total principal amount of loans we facilitated or originated during the given period, including loan volume facilitated through Intelligence Credit Engine (ICE) and other technology solutions;
“outstanding loan balance” are to the total amount of principal outstanding for loans facilitated or originated by a Credit-Tech platform, as the context mandates, a traditional financial institution or other market players in the credit industry at the end of each period; in the context of the outstanding balance of loans we facilitated or originated, the total amount of principal outstanding for loans we facilitated or originated at the end of each period, including loan balance for ICE and other technology solutions excluding loans delinquent for more than 180 days;
“repeat borrower contribution” or “loan origination contributed by repeat borrowers” are to a percentage, the numerator of which is the principal amount of loans borrowed during that period by borrowers who had historically made at least one successful drawdown, and the denominator of which is the total loan facilitation volume through our platform during that period;
“SME” are to small- and micro-enterprises and owners of small- and micro-enterprises; and
“users with approved credit lines” are to users who have submitted their credit applications and are approved with a credit line at the end of each period.

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FORWARD-LOOKING STATEMENTS

This annual report contains forward-looking statements that relate to our current expectations and views of future events. These statements involve known and unknown risks, uncertainties and other factors that 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 goals and strategies;
our future business development, financial conditions and results of operations;
the expected growth of the Credit-Tech industry in China;
our expectations regarding demand for and market acceptance of our Credit-Tech products;
our expectations regarding keeping and strengthening our relationships with borrowers, financial institution partners, data partners and other parties we collaborate with;
competition in our industry; and
government policies and regulations relating to our industry.

You should read this annual report and the documents that we refer to in this annual report and have filed as exhibits to this annual report completely and with the understanding that our actual future results may be materially different from what we expect. Other sections of this annual report discuss factors which could adversely impact our business and financial performance. Moreover, we operate in an evolving environment. New risk factors emerge from time to time and it is not possible for our management to predict all risk factors, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. We qualify all of our forward-looking statements by these cautionary statements.

You should not rely upon forward-looking statements as predictions of future events. 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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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

Our Holding Company Structure and Contractual Arrangements with the VIEs and VIEs’ subsidiaries

Qifu Technology, Inc. is not a Chinese operating company but rather a Cayman Islands holding company that does not conduct business directly and has no equity ownership in the VIEs and VIEs’ subsidiaries. We conduct our operations in China through (i) our PRC subsidiaries and (ii) the VIEs with which we have maintained contractual arrangements. PRC laws and regulations restrict and impose conditions on foreign investment in internet-based businesses, such as the distribution of online information. For example, foreign investors are generally not allowed to own more than 50% of the equity interests in a value-added telecommunications service provider in accordance with the Special Management Measures for the Access of Foreign Investment (Negative List) and other applicable laws and regulations. We are a Cayman Islands company and our PRC subsidiaries are considered foreign-invested enterprises. Accordingly, we operate certain of our businesses in China through the VIEs, and rely on contractual arrangements among our PRC subsidiaries, the VIEs and the nominee shareholders of the VIEs to control the business operations of the VIEs. Revenues contributed by the VIEs accounted for 92%, 92% and 94% of our total net revenue for the years of 2021, 2022 and 2023, respectively. As used in this annual report, “we,” “us,” “our company,” “our” or “Qifu Technology,” refers to Qifu Technology, Inc., its subsidiaries, and, in the context of describing our operations and consolidated financial information, the VIEs and their subsidiaries in China, including, but not limited to Shanghai Qiyu, Fuzhou Financing Guarantee, Shanghai Financing Guarantee and Fuzhou Microcredit. Investors in our ADSs are not purchasing equity interest in the VIEs in China but instead are purchasing equity interest in a holding company incorporated in the Cayman Islands.

A series of contractual agreements, including (i) voting proxy agreements, equity interest pledge agreements and loan agreements, which provide us with effective control over the VIEs in China, (ii) exclusive business cooperation agreements, which allow us to receive economic benefits from the VIEs in China, and (iii) exclusive option agreements, which provide us with the option to purchase the equity interests in, and assets of, the VIEs (collectively, “contractual arrangements”). Terms contained in each set of contractual arrangements with the VIEs and their respective shareholders are substantially similar. For more details of these contractual arrangements, see “Item 4. Information on the Company—C. Organizational Structure—Contractual Arrangements with the VIEs and Their Shareholders.”

However, the contractual arrangements may not be as effective as direct ownership in providing us with control over the VIEs and we may incur substantial costs to enforce the terms of the arrangements. All of these contractual arrangements are governed by and interpreted in accordance with PRC law, and disputes arising from these contractual arrangements between us and the VIEs will be resolved through arbitration in China. Accordingly, these contracts would be interpreted in accordance with PRC law and any disputes arising from these contracts would be resolved in accordance with PRC legal procedures. These arrangements have not been tested in arbitral tribunals or courts. The legal system in the PRC is different from the legal system of some other jurisdictions, and the uncertainties involved in it could limit our ability to enforce these contractual arrangements. Further, there are very few precedents and little formal guidance as to how contractual arrangements in the context of a VIE should be interpreted or enforced under PRC law. There remain significant uncertainties regarding the ultimate outcome of such arbitration should legal action become necessary. See “Item 3. Key Information—D. Risk Factors—Risks Related to Our Corporate Structure—We rely on contractual arrangements with the VIEs and the shareholders of the VIEs for all of our business operations, which may not be as effective as direct ownership in providing operational control” and “Item 3. Key Information—D. Risk Factors—Risks Related to Our Corporate Structure—Any failure by the VIEs or the shareholders of the VIEs to perform their obligations under our contractual arrangements with them would have a material adverse effect on our business.”

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There are also substantial uncertainties regarding the interpretation and application of current and future PRC laws, regulations and rules regarding the status of the rights of our Cayman Islands holding company with respect to its contractual arrangements with the VIEs and its nominee shareholders. It is uncertain whether any new PRC laws or regulations relating to variable interest entity structures will be adopted or if adopted, what they would provide. If we or any of the VIEs is found to be in violation of any existing or future PRC laws or regulations, or fail to obtain or maintain any of the required permits or approvals, the PRC regulatory authorities would have broad discretion to take action in dealing with such violations or failures. If the PRC government deems that our contractual arrangements with the VIEs do not comply with PRC regulatory restrictions on foreign investment in the relevant industries, or if these regulations or the interpretation of existing regulations change or are interpreted differently in the future, we could be subject to severe penalties or be forced to relinquish our interests in those operations. Our holding company, our PRC subsidiaries and VIEs, and investors of our company face uncertainty about potential future actions by the PRC government that could affect the enforceability of the contractual arrangements with the VIEs and, consequently, significantly affect the financial performance of the VIEs and VIEs’ subsidiaries and our company as a whole. For a detailed description of the risks associated with our corporate structure, please refer to risks disclosed under “Item 3. Key Information—D. Risk Factors—Risks Related to Our Corporate Structure.”

We face various risks and uncertainties related to doing business in China. Our business operations are primarily conducted in China, and we are subject to complex and evolving PRC laws and regulations. For example, we face risks associated with regulatory approvals on offshore offerings, anti-monopoly regulatory actions, and oversight on cybersecurity and data privacy, as well as the lack of inspection by the Public Company Accounting Oversight Board, or the PCAOB, on our auditors, which may impact our ability to conduct certain businesses, accept foreign investments, or list on a United States or other foreign exchange. These risks could result in a material adverse change in our operations and the value of our ADSs, significantly limit or completely hinder our ability to continue to offer securities to investors, or cause the value of such securities to significantly decline. Pursuant to the Holding Foreign Companies Accountable Act, if the SEC determines that we have filed audit reports issued by a registered public accounting firm that has not been subject to inspections by the PCAOB for two consecutive years, the SEC will prohibit our shares or the ADSs from being traded on a national securities exchange or in the over-the-counter trading market in the United States. On December 16, 2021, the PCAOB issued a report to notify the SEC of its determination that the PCAOB was unable to inspect or investigate completely registered public accounting firms headquartered in mainland China and Hong Kong, including our auditor. In May 2022, the SEC conclusively listed us as a Commission-Identified Issuer under the HFCAA following the filing of this annual report on Form 20-F for the fiscal year ended December 31, 2021. On December 15, 2022, the PCAOB issued a report that vacated its December 16, 2021 determination and removed mainland China and Hong Kong from the list of jurisdictions where it is unable to inspect or investigate completely registered public accounting firms. For this reason, we were not identified as a Commission-Identified Issuer under the HFCAA after we filed our annual report on Form 20-F for the fiscal year ended December 31, 2022 and do not expect to be identified so after we file this annual report on Form 20-F. Each year, the PCAOB will determine whether it can inspect and investigate completely audit firms in mainland China and Hong Kong, among other jurisdictions. If PCAOB determines in the future that it no longer has full access to inspect and investigate completely accounting firms in mainland China and Hong Kong and we continue to use an accounting firm headquartered in one of these jurisdictions to issue an audit report on our financial statements filed with the Securities and Exchange Commission, we would be identified as a Commission-Identified Issuer following the filing of the annual report on Form 20-F for the relevant fiscal year. There can be no assurance that we would not be identified as a Commission-Identified Issuer for any future fiscal year, and if we were so identified for two consecutive years, we would become subject to the prohibition on trading under the HFCAA. See “Item 3. Key Information—D. Risk Factors—Risks Related to Doing Business in China—The PCAOB had historically been unable to inspect our auditor in relation to their audit work performed for our financial statements and the inability of the PCAOB to conduct inspections of our auditor in the past has deprived our investors with the benefits of such inspections” and “Item 3. Key Information—D. Risk Factors—Risks Related to Doing Business in China—Our ADSs may be prohibited from trading in the United States under the HFCAA in the future if the PCAOB is unable to inspect or investigate completely auditors located in China. The delisting of the ADSs, or the threat of their being delisted, may materially and adversely affect the value of your investment.”

PRC government’s significant authority in regulating our operations and its oversight and control over offerings conducted offshore by, and foreign investment in, China-based issuers could significantly limit or completely hinder our ability to offer or continue to offer securities to investors. Implementation of industry-wide regulations in this nature may cause the value of such securities to significantly decline or become worthless. For more details, see “Item 3. Key Information—D. Risk Factors—Risks Related to Doing Business in China—The PRC government’s significant oversight and discretion over our business operation and any failure to comply with PRC laws and regulations could result in a material adverse change in our operations and the value of the ADSs.”

Risks and uncertainties arising from the legal system in China, including risks and uncertainties regarding the enforcement of laws and quickly evolving rules and regulations in China, could result in a material adverse change in our operations and the value of our ADSs. For more details, see “Item 3. Key Information—D. Risk Factors—Risks Related to Doing Business in China—Uncertainties in the interpretation and enforcement of PRC laws and regulations could limit the legal protections available to us.”

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Permissions Required from the PRC Government Authorities for Our Operations

We conduct our business primarily through our subsidiaries, the VIEs and their subsidiaries in China. Our operations in China are governed by PRC laws and regulations. As of the date of this annual report, our PRC subsidiaries, the VIEs or their subsidiaries have obtained the requisite licenses and permits from the PRC government authorities that are material for the business operations of our holding company, our PRC subsidiaries and the VIEs in China, including, among others, financing guarantee business license owned by Fuzhou Financing Guarantee, value-added telecommunications license owned by Shanghai Qiyu, and the incorporation approval of and the value-added telecommunications license owned by Fuzhou Microcredit. Given the uncertainties of interpretation and implementation of the laws and regulations and the enforcement practice by government authorities, we may be required to obtain additional licenses, permits, filings or approvals for the functions and services of our platform in the future. For more detailed information, see “Item 3. Key Information—D. Risk Factors—Risks Related to Doing Business in China—We may be adversely affected by the complexity, uncertainties and changes in PRC regulation of internet-related businesses and companies, and any lack of requisite approvals, licenses or permits applicable to our business may have a material adverse effect on our business and results of operations.”

Furthermore, we and the VIEs will be required to obtain permissions from or complete the filing procedures with the China Securities Regulatory Commission, or the CSRC, and may be required to go through cybersecurity review by the Cyberspace Administration of China, or the CAC, in case of any future issuance of securities to foreign investors. Any failure to obtain or delay in obtaining such approval or completing such procedures would subject us to sanctions by the CSRC, CAC or other PRC regulatory authorities. These regulatory authorities may impose fines and penalties on our operations in China, limit our ability to pay dividends outside of China, limit our operating privileges in China, delay or restrict the repatriation of the proceeds from our offshore offerings into China or take other actions that could materially and adversely affect our business, financial condition, results of operations, and prospects, as well as the trading price of our ADSs. See “Item 3. Key Information—D. Risk Factors—Risks Related to Doing Business in China—The PRC government’s significant oversight and discretion over our business operation and any failure to comply with PRC laws and regulations could result in a material adverse change in our operations and the value of the ADSs” and “Item 3. Key Information—D. Risk Factors—Risks Related to Doing Business in China—The approval of and filing with the CSRC or other PRC government authorities will be required if we conduct offshore offerings in the future, and we cannot predict whether or for how long we will be able to obtain such approval or complete such filing.”

Cash and Asset Flows through Our Organization

Qifu Technology, Inc. is a holding company with no material operations of its own. We conduct our operations in China primarily through our subsidiaries and VIEs in China. As a result, although other means are available for us to obtain financing at the holding company level, Qifu Technology, Inc.’s ability to pay dividends to the shareholders and to service any debt it may incur may depend upon dividends paid by our PRC subsidiaries and service fees paid by the VIEs.

If any of our subsidiaries incurs debt on its own behalf in the future, the instruments governing such debt may restrict its ability to pay dividends to Qifu Technology, Inc. In addition, our PRC subsidiaries are permitted to pay dividends to Qifu Technology, Inc. only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. Further, our PRC subsidiaries and the VIEs are required to make appropriations to certain statutory reserve funds or may make appropriations to certain discretionary funds, which are not distributable as cash dividends except in the event of a solvent liquidation of the companies. For more details, see “Item 5. Operating and Financial Review and Prospects—B. Liquidity and Capital Resources—Holding Company Structure.” For risks relating to the fund flows of our operations in China, see “Item 3. Key Information—D. Risk Factors—Risks Related to Doing Business in China—We may rely on dividends and other distributions on equity paid by our PRC subsidiaries to fund any cash and financing requirements we may have, and any limitation on the ability of our PRC subsidiaries to make payments to us could have a material adverse effect on our ability to conduct our business.”

Under PRC laws and regulations, our PRC subsidiaries and the VIEs are subject to certain restrictions with respect to paying dividends or otherwise transferring any of their net assets to us. Remittance of dividends by a wholly foreign-owned enterprise out of China is also subject to examination by the banks designated by the State Administration of Foreign Exchange, or SAFE, and payment of withholding tax. As a result of these PRC laws and regulations, amounts restricted include paid-in capital, capital reserve and statutory reserves of our PRC subsidiaries and the VIEs totaled RMB8,283.6 million, RMB14,436.1 million and RMB16,233.7 million (US$2,286.5 million) as of December 31, 2021, 2022 and 2023, respectively.

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Our PRC subsidiaries, the VIEs and their subsidiaries generate their revenue primarily in Renminbi, which is not freely convertible into other currencies. As a result, any restriction on currency exchange may limit the ability of our PRC subsidiaries to pay dividends to us. In addition, under the Enterprise Income Tax Law of the PRC and its implementation rules, profits of a foreign investment enterprise generated in or after 2008 that are distributed to its immediate holding company outside mainland China are subject to withholding tax at a rate of 10%, unless the foreign holding company’s jurisdiction of incorporation has a tax treaty with China that provides for a reduced rate of withholding tax. For example, a holding company in Hong Kong, subject to approval of the PRC local tax authority, will be eligible to a 5% withholding tax rate under the Arrangement Between the PRC and the Hong Kong Special Administrative Region on the Avoidance of Double Taxation and Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital if such holding company is considered to be a non-PRC resident enterprise and holds at least 25% of the equity interests in the PRC foreign investment enterprise distributing the dividends. However, if the Hong Kong holding company is not considered to be the beneficial owner of such dividends under applicable PRC tax regulations, such dividend will remain subject to withholding tax at a rate of 10%. See also “Item 3. Key Information—D. Risk Factors—Risks Related to Doing Business in China—Governmental control of currency conversion may limit our ability to utilize our net revenue effectively and affect the value of your investment” and “Item 5. Operating and Financial Review and Prospects—B. Liquidity and Capital Resources—Holding Company Structure.” In 2023, our WFOE made dividend payments of RMB940.0 million (US$132.4 million) to our Hong Kong subsidiaries and paid related withholding income tax of RMB94.0 million (US$13.2 million) accordingly. As of December 31, 2023, we recorded a deferred tax liability of RMB112.7 million (US$15.9 million) associated with all of our earnings expected to be distributed from mainland China subsidiaries to overseas for dividend distribution and share repurchase. The remaining undistributed profits of mainland China subsidiaries as of December 31, 2023 would be indefinitely reinvested with unrecognized deferred tax liabilities of approximately RMB2,005.0 million (US$282.4 million). In 2023, our Hong Kong subsidiaries made dividend payments of RMB790.0 million (US$111.3 million) to our holding company, Qifu Technology, Inc.

For purposes of illustration, the following discussion reflects the hypothetical taxes that might be required to be paid within mainland China, assuming that we determine to pay a dividend from mainland China subsidiaries to overseas entities in the future:

    

Taxation Scenario(1)

 

(Statutory Tax and Standard Rates)

 

Hypothetical pre-tax earnings(2)

 

100

%

Tax on earnings at statutory rate of 25%(3)  

 

(25)

%

Net earnings available for distribution

 

75

%

Withholding tax at standard rate of 10%  

 

(7.5)

%

Net distribution to Parent/Shareholders

 

67.5

%

Notes:

(1)For purposes of this example, the tax calculation has been simplified. The hypothetical book pre-tax earnings amount, not considering book to tax adjustment, is assumed to equal taxable income in China.
(2)Assume all the profits of VIEs could be distributed to the mainland China subsidiaries in a tax free manner.
(3)Certain of our subsidiaries and VIEs and their subsidiaries qualifies for a 15% preferential income tax rate in China. However, such rate is subject to qualification, is temporary in nature, and may not be available in a future period when distributions are paid. For purposes of this hypothetical example, the table above reflects a maximum tax scenario under which the full statutory rate would be effective.

Under PRC law, Qifu Technology, Inc. may provide funding to our mainland China subsidiaries only through capital contributions or loans, and to the VIEs only through loans, subject to satisfaction of applicable government registration and approval requirements.

The VIEs may transfer cash to our relevant WFOE by paying service fees according to the exclusive business cooperation agreements. The VIEs agree to pay our WFOE service fees, the amount of which are subject to adjustment at our WFOE’s sole discretion taking into consideration of the complexity of the services, the actual cost that may be incurred for providing such services, as well as the value and comparable price on the market of the service provided, among others. Our WFOE would have the exclusive ownership of all the intellectual property rights created as a result of the performance of the exclusive business cooperation agreement, to the extent permitted by applicable PRC laws.

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The following table sets forth the amount of the transfers for the years presented.

Years Ended December 31,

    

2021

    

2022

    

2023

(RMB in thousands)

Funds from Qifu Technology Inc. to our subsidiaries / (repayment by our subsidiaries to Qifu Technology Inc.)

 

(51,706)

 

7,698

 

(31,815)

Funds from Qifu Technology Inc. to the VIEs / (repayment by the VIEs to Qifu Technology Inc.)

 

205,484

 

(1,588,312)

 

(274,627)

Funds from our subsidiaries to the VIEs / (repayment by the VIEs to our subsidiaries)

 

3,658,491

 

859,935

 

628,014

Dividend from WOFE to our subsidiaries

 

 

 

(940,000)

Dividend from our subsidiaries to Qifu Technology Inc.

 

 

 

(790,000)

Service fees paid by our subsidiaries to the VIEs

 

258,246

 

103,094

 

209,033

Service fees paid by the VIEs to WFOE

 

5,001,870

 

420,290

 

1,306,173

Service fees paid by the VIEs to the other subsidiaries(1)

 

616,469

 

3,263

 

5,696

Note:

(1)Refers to our subsidiaries other than the WFOE.

In 2021, 2022 and 2023, no assets other than cash flows discussed above were transferred through our organization.

For the years ended December 31, 2021, 2022 and 2023, dividends of nil, US$146.4 million and US$131.9 million were paid to shareholders of record as of designated record dates. We intend to declare and distribute a recurring cash dividend every six-month period, starting from the first half of 2023, at an amount equivalent to approximately 20% to 30% of our company’s net income after tax for the previous six-month period based upon our operations and financial conditions, and other factors, subject to adjustment and determination by the board of directors of Qifu Technology, Inc. See “Item 8. Financial Information—A. Consolidated Statements and Other Financial Information—Dividend Policy.” For PRC and United States federal income tax considerations of an investment in our ADSs, see “Item 10. Additional Information—E. Taxation.”

Selected Financial Data

Our Selected Consolidated Financial Data

The following selected consolidated statements of operations data for the years ended December 31, 2021, 2022 and 2023, selected consolidated balance sheet data as of December 31, 2022 and 2023 and selected consolidated cash flow data for the years ended December 31, 2021, 2022 and 2023 have been derived from our audited consolidated financial statements included elsewhere in this annual report. Our selected consolidated balance sheets data as of December 31, 2019, 2020 and 2021 and the selected consolidated statements of operations data and cash flow data for the years ended December 31, 2019 and 2020 have been derived from our audited combined and consolidated financial statements not included in this annual report. Our consolidated financial statements are prepared and presented in accordance with U.S. GAAP.

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You should read the summary consolidated financial information in conjunction with our consolidated financial statements and related notes and “Item 5. Operating and Financial Review and Prospects” included elsewhere in this annual report. Our historical results are not necessarily indicative of our results expected for future periods.

Years Ended December 31,

2019

2020

2021

2022

2023

    

RMB

    

RMB

    

RMB

    

RMB

    

RMB

    

US$

(in thousands, except for per share data)

Selected Consolidated Statements of Operations Data:

Net revenue

  

 

  

 

  

 

  

Credit driven services(1)

8,013,391

11,403,675

10,189,167

11,586,251

11,738,560

1,653,342

Loan facilitation and servicing fees-capital heavy

6,273,131

 

4,596,555

 

2,326,027

2,086,414

1,667,119

 

234,809

Financing income

1,309,616

 

2,184,180

 

2,184,128

3,487,951

5,109,921

 

719,717

Revenue from releasing of guarantee liabilities

285,407

 

4,506,935

 

5,583,135

5,899,153

4,745,898

 

668,446

Other services fees

145,237

 

116,005

 

95,877

112,733

215,622

 

30,370

Platform services(1)

1,206,456

2,160,279

6,446,478

4,967,679

4,551,467

641,061

Loan facilitation and servicing fees-capital light

814,581

1,826,654

5,677,941

4,124,726

3,213,955

452,676

Referral services fees

375,551

265,300

620,317

561,372

950,016

133,807

Other services fees

16,324

68,325

148,220

281,581

387,496

54,578

Total net revenue

9,219,847

 

13,563,954

 

16,635,645

16,553,930

16,290,027

 

2,294,403

Operating costs and expenses:(2)

 

 

 

Facilitation, origination and servicing

1,083,372

 

1,600,564

 

2,252,157

2,373,458

2,659,912

 

374,641

Funding costs

344,999

595,623

337,426

504,448

645,445

90,909

Sales and marketing

2,851,519

 

1,079,494

 

2,090,374

2,206,948

1,939,885

 

273,227

General and administrative

428,189

 

455,952

 

557,295

412,794

421,076

 

59,307

Provision for loans receivable

486,991

 

698,701

 

965,419

1,580,306

2,151,046

 

302,968

Provision for financial assets receivable

166,176

 

312,058

 

243,946

397,951

386,090

 

54,380

Provision for accounts receivable and contract assets

230,280

 

237,277

 

324,605

238,065

175,799

 

24,761

Provision for contingent liabilities

4,794,127

3,078,224

4,367,776

3,053,810

430,120

Expense on guarantee liabilities

734,730

Total operating costs and expenses

6,326,256

 

9,773,796

 

9,849,446

12,081,746

11,433,063

 

1,610,313

Income from operations

2,893,591

 

3,790,158

 

6,786,199

4,472,184

4,856,964

 

684,090

Interest (expense) income, net

(41,707)

 

77,169

 

126,256

182,301

217,307

 

30,607

Foreign exchange (loss) gain

(24,875)

 

101,534

 

35,549

(160,225)

2,356

 

332

Investment income (loss)

10,115

(19,888)

(30,112)

(4,241)

Other income, net

140,278

 

112,884

 

64,590

268,000

230,936

 

32,527

Income before income tax benefit

2,967,287

 

4,081,745

 

7,022,709

4,742,372

5,277,451

 

743,315

Income tax expense

(465,983)

 

(586,036)

 

(1,258,196)

(736,804)

(1,008,874)

 

(142,097)

Net income

2,501,304

 

3,495,709

 

5,764,513

4,005,568

4,268,577

 

601,218

Net loss attributable to non-controlling interests

291

 

897

 

17,212

18,605

16,759

 

2,360

Net income attributable to ordinary shareholders of the Company

2,501,595

3,496,606

5,781,725

4,024,173

4,285,336

603,578

Net income per ordinary share attributable to ordinary shareholders of Qifu Technology, Inc.

 

 

 

Basic

8.66

 

11.72

 

18.82

12.87

13.36

 

1.88

Diluted

8.31

 

11.40

 

17.99

12.50

13.04

 

1.84

Net income per ADSs attributable to ordinary shareholders of Qifu Technology, Inc.

Basic

17.32

23.44

37.64

25.74

26.72

3.76

Diluted

16.62

22.80

35.98

25.00

26.08

3.68

Weighted average shares used in calculating net income per ordinary share

 

 

 

Basic

288,827,604

 

298,222,207

 

307,265,600

312,589,273

320,749,805

 

320,749,805

Diluted

300,938,470

 

306,665,099

 

321,397,753

322,018,510

328,508,945

 

328,508,945

Notes:

(1)Starting from 2019, we report revenue streams in two categories—credit driven services and platform services, to provide more relevant information. We also revised the comparative period presentation to conform to current period classification.

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(2)Share-based compensation expenses were allocated as follows:

Years Ended December 31,

2019

2020

2021

2022

2023

    

RMB

    

RMB

    

RMB

    

RMB

    

RMB

    

US$

(in thousands)

Facilitation origination and servicing

55,601

72,192

75,209

73,945

75,152

10,585

Sales and marketing

6,805

 

8,164

 

12,340

 

4,328

(375)

 

(53)

General and administrative

188,022

 

220,805

 

166,373

 

121,464

110,827

 

15,610

Total

250,428

 

301,161

 

253,922

 

199,737

185,604

 

26,142

The following table presents our selected consolidated balance sheet data as of the dates indicated.

As of December 31,

2019

2020

2021

2022

2023

    

RMB

    

RMB

    

RMB

    

RMB

    

RMB

    

US$

(in thousands)

Selected Consolidated Balance Sheets Data:

Current assets:

 

  

 

  

 

  

 

  

Cash and cash equivalents

2,108,123

 

4,418,416

 

6,116,360

 

7,165,584

 

4,177,890

 

588,443

Restricted cash

1,727,727

 

2,355,850

 

2,643,587

 

3,346,779

 

3,381,107

 

476,219

Security deposit prepaid to third-party guarantee companies

932,983

 

915,144

 

874,886

 

396,699

 

207,071

 

29,165

Accounts receivable and contract assets, net

2,332,364

 

2,394,528

 

3,097,254

 

2,868,625

 

2,909,245

 

409,759

Financial assets receivable, net

1,912,554

 

3,565,482

 

3,806,243

 

2,982,076

 

2,522,543

 

355,293

Loans receivable, net

9,239,565

 

7,500,629

 

9,844,481

 

15,347,662

 

24,604,487

 

3,465,470

Total current assets

19,503,488

 

21,876,042

 

27,757,223

 

34,097,466

 

39,796,028

 

5,605,154

Land use rights, net

1,018,908

998,185

977,461

137,673

Total non-current assets

852,113

 

2,511,263

 

5,747,772

 

6,245,704

 

6,022,544

 

848,257

Total assets

20,355,601

 

24,387,305

 

33,504,995

 

40,343,170

 

45,818,572

 

6,453,411

Current liabilities:

 

 

 

 

 

Payable to investors of the consolidated trusts-current

4,423,717

 

3,117,634

 

2,304,518

 

6,099,520

 

8,942,291

 

1,259,495

Guarantee liabilities-stand ready

2,212,125

 

4,173,497

 

4,818,144

 

4,120,346

 

3,949,601

 

556,290

Guarantee liabilities-contingent

734,730

3,543,454

3,285,081

3,418,391

3,207,264

451,734

Income tax payable

1,056,219

1,227,314

624,112

661,015

742,210

104,538

Total current liabilities

9,667,187

 

13,384,508

 

14,143,186

 

16,749,918

 

19,899,619

 

2,802,803

Payable to investors of the consolidated trusts-noncurrent

3,442,500

1,468,890

4,010,597

4,521,600

3,581,800

504,486

Total non-current liabilities

3,473,684

1,521,707

4,145,200

4,661,955

3,909,096

550,585

Total shareholder’s equity

7,214,730

 

9,481,090

 

15,216,609

 

18,931,297

 

22,009,857

 

3,100,023

Total liabilities and equity

20,355,601

 

24,387,305

 

33,504,995

 

40,343,170

 

45,818,572

 

6,453,411

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The following table presents our selected combined and consolidated cash flow data for the years ended December 31, 2019, 2020, 2021, 2022 and 2023.

Years Ended December 31,

2019

2020

2021

2022

2023

    

RMB

    

RMB

    

RMB

    

RMB

    

RMB

    

US$

(in thousands)

Summary Consolidated Cash Flow Data:

Net cash provided by operating activities

2,973,075

 

5,325,810

 

5,789,700

 

5,922,515

 

7,118,350

 

1,002,598

Net cash (used in)/provided by investing activities

(8,860,441)

 

892,770

 

(6,064,328)

 

(7,355,975)

 

(11,147,789)

 

(1,570,134)

Net cash provided by/(used in) financing activities

7,707,858

 

(3,282,400)

 

2,263,720

 

3,204,068

 

1,066,458

 

150,209

Net increase/(decrease) in cash and cash equivalents

1,822,254

 

2,938,416

 

1,985,681

 

1,752,416

 

(2,953,366)

 

(415,973)

Cash, cash equivalents, and restricted cash at the beginning of year

2,013,596

 

3,835,850

 

6,774,266

 

8,759,947

 

10,512,363

 

1,480,635

Cash, cash equivalents, and restricted cash at the end of year

3,835,850

 

6,774,266

 

8,759,947

 

10,512,363

 

7,558,997

 

1,064,662

We present our financial results in RMB. We make no representation that any RMB or U.S. dollar amounts could have been, or could be, converted into U.S. dollars or RMB, as the case may be, at any particular rate, or at all. The RPC government imposes control over its foreign currency reserves in part through direct regulation of the conversion of RMB into foreign exchange and through restrictions on foreign trade. 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 a rate of RMB7.0999 to US$1.00, the noon buying rate as of December 29, 2023.

Financial Information Related to Our Consolidated Variable Interest Entities

The following table presents the condensed consolidated schedule of financial position, results of operations and cash flow data for our company, our consolidated VIEs, our primary beneficiaries of VIEs excluding our company and other subsidiaries as of the dates or for the years presented, as the case may be.

    

For the Year Ended December 31, 2023

Primary

Beneficiaries

of VIEs

excluding the

Other

VIEs

    

The Company

    

Company(1)

    

Subsidiaries

    

Eliminations

    

Consolidated Total

(RMB in thousands)

Total net revenues

15,472,430

1,485,711

1,051,284

(1,719,398)

16,290,027

Total operating costs and expenses

12,346,061

25,517

338,912

441,971

(1,719,398)

11,433,063

Income (loss) from operations

3,126,369

(25,517)

1,146,799

609,313

4,856,964

Income before income tax expense

3,364,788

20,536

1,258,871

633,256

5,277,451

Investments in subsidiaries and VIEs

4,264,800

3,395,894

3,903,935

(11,564,629)

Net income (loss)

2,798,640

4,285,336

4,484,430

4,264,800

(11,564,629)

4,268,577

Net income (loss) attributable to ordinary shareholders of the Company

2,815,399

4,285,336

4,484,430

4,264,800

(11,564,629)

4,285,336

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For the Year Ended December 31, 2022

Primary

Beneficiaries

of VIEs

excluding the

Other

VIEs

    

The Company

    

Company(1)

    

Subsidiaries

    

Eliminations

    

Consolidated Total

    

(RMB in thousands)

Total net revenues

    

15,362,636

893,968

1,296,242

(998,916)

16,553,930

Total operating costs and expenses

 

11,681,635

 

17,468

 

421,181

960,378

 

(998,916)

 

12,081,746

Income (loss) from operations

 

3,681,001

 

(17,468)

 

472,787

335,864

 

 

4,472,184

Income (loss) before income tax expense

 

3,856,803

 

(34,045)

 

569,614

350,000

 

 

4,742,372

Investments in subsidiaries and VIEs

4,058,218

3,526,061

3,793,486

(11,377,765)

Net income (loss)

 

3,230,659

 

4,024,173

 

4,070,283

4,058,218

 

(11,377,765)

 

4,005,568

Net income (loss) attributable to ordinary shareholders of the Company

 

3,249,264

 

4,024,173

 

4,070,283

4,058,218

 

(11,377,765)

 

4,024,173

For the Year Ended December 31, 2021

Primary

Beneficiaries

of VIEs

excluding the

Other

    

VIEs

    

The Company

    

Company(1)

    

Subsidiaries

    

Eliminations

    

Consolidated Total

(RMB in thousands)

Total net revenues

 

15,657,693

 

 

5,069,424

1,577,575

 

(5,669,047)

 

16,635,645

Total operating costs and expenses

 

14,279,287

 

51,233

 

690,077

497,896

 

(5,669,047)

 

9,849,446

Income (loss) from operations

 

1,378,406

 

(51,233)

 

4,379,347

1,079,679

 

 

6,786,199

Income (loss) before income tax expense

 

1,567,515

 

(56,749)

 

4,397,700

1,114,243

 

 

7,022,709

Investments in subsidiaries and VIEs

5,838,474

1,849,259

4,779,980

(12,467,713)

Net income (loss)

 

1,060,421

 

5,781,725

 

5,551,564

5,838,516

 

(12,467,713)

 

5,764,513

Net income (loss) attributable to ordinary shareholders of the Company

 

1,077,675

 

5,781,725

 

5,551,564

5,838,474

 

(12,467,713)

 

5,781,725

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Selected Condensed Consolidated Balance Sheets Information

    

As of December 31, 2023

Primary

Beneficiaries

of VIEs

excluding the

Other

    

VIEs

    

The Company

    

Company(1)

    

Subsidiaries

    

Eliminations

    

Consolidated Total

(RMB in thousands)

Cash and cash equivalents

4,037,256

2,636

114,897

23,101

4,177,890

Restricted cash

3,381,107

3,381,107

Security deposit prepaid to third-party guarantee companies

207,071

207,071

Accounts receivable and contract assets, net

2,417,490

638,750

3,056,240

Financial assets receivable, net

3,118,873

3,118,873

Loans receivable, net

27,502,492

27,502,492

Land use right, net

977,461

977,461

Intercompany receivables

2,559,164

1,571,102

2,728,150

(6,858,416)

Investments in subsidiaries and VIEs

21,933,951

22,921,727

18,841,758

(63,697,436)

Total assets

47,389,071

21,952,789

24,695,812

22,336,752

(70,555,852)

45,818,572

Payable to investors of the consolidated trusts-current

8,942,291

8,942,291

Guarantee liabilities-stand ready

3,949,601

3,949,601

Guarantee liabilities-contingent

3,207,264

3,207,264

Income tax payable

648,893

79,806

13,511

742,210

Payable to investors of the consolidated trusts-noncurrent

3,581,800

3,581,800

Intercompany payables

4,276,218

14,153

2,364,791

203,254

(6,858,416)

Total liabilities

27,597,272

15,306

2,651,752

402,801

(6,858,416)

23,808,715

Total equity

19,791,799

21,937,483

22,044,060

21,933,951

(63,697,436)

22,009,857

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Table of Contents

    

As of December 31, 2022

Primary

Beneficiaries

of VIEs

excluding the

Other

    

VIEs

    

The Company

    

Company(1)

    

Subsidiaries

    

Eliminations

    

Consolidated Total

(RMB in thousands)

Cash and cash equivalents

6,437,420

 

464,323

 

175,243

88,598

 

 

7,165,584

Restricted cash

3,346,779

 

 

 

 

3,346,779

Security deposit prepaid to third-party guarantee companies

396,699

 

 

 

 

396,699

Accounts receivable and contract assets, net

1,933,292

 

 

1,196,652

 

 

3,129,944

Financial assets receivable, net

3,670,919

 

 

 

 

3,670,919

Loans receivable, net

18,484,656

 

 

 

 

18,484,656

Land use right, net

998,185

 

 

 

 

998,185

Intercompany receivables

5,906,972

 

295,180

 

2,030,097

4,163,777

 

(12,396,026)

 

Investments in subsidiaries and VIEs

 

18,275,772

 

19,305,251

15,692,041

 

(53,273,064)

 

Total assets

44,093,493

 

19,041,600

 

21,535,086

21,342,081

 

(65,669,090)

 

40,343,170

Payable to investors of the consolidated trusts-current

6,099,520

 

 

 

 

6,099,520

Guarantee liabilities-stand ready

4,120,346

 

 

 

 

4,120,346

Guarantee liabilities-contingent

3,418,391

 

 

 

 

3,418,391

Income tax payable

614,687

 

 

33,295

13,033

 

 

661,015

Payable to investors of the consolidated trusts-noncurrent

4,521,600

 

 

 

 

4,521,600

Intercompany payables

6,327,635

 

 

3,038,297

3,030,094

 

(12,396,026)

 

Total liabilities

27,325,894

 

194,444

 

3,221,252

3,066,309

 

(12,396,026)