v3.22.2.2
Interest-Bearing Borrowings
 9 Months Ended
Sep. 30, 2022
Interest-Bearing Borrowings Disclosure [Abstarct]  
Interest-bearing borrowings
7Interest-bearing borrowings

 

(a)Borrowings under agreements to repurchase

 

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

 

   Note  Fixed interest
rate per annum		   Term  December 31,
2021		   September 30,
2022		 
             RMB   RMB 
Repurchase agreements                  
                   
Financial institution  (i)   13.8%  Within 1 year   45,250,000    5,965,976 
                      
Interest payable                     
Financial institution  (i)           
-
    
-
 
                      
Total repurchase agreements              45,250,000    5,965,976 

 

(i)Funds obtained from financial institutions

 

On July 27, 2021, the Group transferred loan principals, interests and financing service fee receivables with carrying amount of RMB64,640,192 to a third-party transferee, Guangdong Yuehai Asset Management Co., Ltd. (“Yuehai Asset”), an unrelated third party. However, in accordance with ASC 860, Transfers and Servicing, the right to earnings is not derecognized upon transfer as the Group is required to repurchase the right to earnings one year after the date of transfer. As of December 31, 2021, the amount of funds obtained from Yuehai Asset and the interest payable are 45,250,000 and nil. As of September 30, 2022, the amount of funds obtained from Yuehai Asset and the interest payable are nil.

 

On August 29, 2022, the Group transferred loan principals, interests and financing service fee receivables with carrying amount of RMB5,965,976 to a third-party transferee, Pingan Puhui Lixin Asset Management Co., Ltd (“Pingan Puhui”), an unrelated third party. However, in accordance with ASC 860, Transfers and Servicing, the right to earnings is not derecognized upon transfer as the Group is required to repurchase the right to earnings one year after the date of transfer. As of September 30, 2022, the amount of funds obtained from Pingan Puhui and the interest payable are 5,965,976 and nil.

 

The below table provides the underlying collateral types of the gross obligations under repurchase agreements. For more information about pledged assets, refer to the Note 7(c).

 

   December 31,
2021		    September 30,
2022		 
   RMB   RMB 
Underlying collateral types of gross obligations        
         
Repurchase agreements:          
           
Loans principal, interest and financing service fee receivables   45,250,000    5,965,976 
           
Total repurchase agreements   45,250,000    5,965,976 

 

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

 

   Overnight  

Up to 30

days

  

30 to 90

days

  

Greater than
90 days

  

Total gross

obligations

 
   RMB   RMB   RMB   RMB   RMB 
                     
Repurchase agreements                         
As of September 30,2022   
      -
    
-
    
-
    5,965,976    5,965,976 
As of December 31,2021   
-
    
-
    
-
    45,250,000    45,250,000 

 

(b)Other borrowings

 

   Note  Fixed interest
rate per annum		  Term 

December 31
2021

  

September 30
2022

 
            RMB   RMB 
Short-term:                 
                  
Investors of consolidated VIEs  (i)  6.3% - 10.5% Less than 1 year   4,654,388,213    5,328,338,540 
                    
Long-term:                   
Investors of consolidated VIEs  (i)  7.0% - 11.5% Within 5 years   3,330,334,482    2,210,471,212 
                    
Interest payable to                   
Investors of consolidated VIEs  (i)         57,169,385    55,515,337 
                    
Total            8,041,892,080    7,594,325,089 

 

(i)The financial liabilities arising from the VIEs with underlying investments in loans to customers are classified as payable in these unaudited condensed consolidated financial statements. It is because the Group has an obligation to pay senior tranches holders upon maturity dates based on the related terms of those consolidated structured funds. As of September 30, 2022, the borrowings from VIEs have principal RMB7,594,325,089, bearing interests from 6.3% to 11.5% per year.

 

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

 

   September 30, 2022 
   2023   2024   2025   2026   2027   Thereafter   Total 
   RMB   RMB   RMB   RMB   RMB       RMB 
                             
Investors of consolidated VIEs   1,048,206,017    479,441,307    25,823,888    
-
    
-
    657,000,000    2,210,471,212 

 

(c)Pledged assets

 

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

 

   December 31,
2021		   September 30,
2022		 
   RMB   RMB 
         
Loans principal, interest and financing service fee receivables   64,640,192    5,965,976 
           
Total   64,640,192    5,965,976 

 

Amounts presented above include carrying value of RMB64,640,192 and RMB5,965,976 in collateral for repurchase agreements as of December 31, 2021 and September 30, 2022, respectively.