XML 61 R46.htm IDEA: XBRL DOCUMENT
v3.22.1

Income Taxes (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Profit Before Income Taxes | The Company’s profit (loss) before income taxes consists of:
|  | For the years ended December 31, |
|  | 2019 |  |  | 2020 |  |  | 2021 |
|  | RMB |  |  | RMB |  |  | RMB |  |  | US$ |
Cayman Islands |  |  | (5,359,465 | ) |  |  | 3,309,525,351 |  |  |  | (37,599,025 | ) |  |  | (5,900,107 | )
Hong Kong |  |  | 18,479,616 |  |  |  | (14,414,430 | ) |  |  | (14,883,394 | ) |  |  | (2,335,529 | )
China |  |  | 474,699,082 |  |  |  | 448,162,790 |  |  |  | 64,790,713 |  |  |  | 10,167,077 |
Total profit before income taxes |  |  | 487,819,233 |  |  |  | 3,743,273,711 |  |  |  | 12,308,294 |  |  |  | 1,931,441 |
Summary of Current and Deferred Component of Income Tax Expenses | The current and deferred component of income tax expenses which were substantially attributable to the Company’s PRC subsidiaries, VIE and subsidiaries of the VIE, are as follows:
|  | For the years ended December 31, |
|  | 2019 |  |  | 2020 |  |  | 2021 |
|  | RMB |  |  | RMB |  |  | RMB |  |  | US$ |
Current income tax expense |  |  | 91,994,704 |  |  |  | 121,701,686 |  |  |  | 603,765,914 |  |  |  | 94,744,047 |
Deferred income tax (benefit) expense |  |  | (9,034,211 | ) |  |  | 248,151,964 |  |  |  | (582,913,268 | ) |  |  | (91,471,812 | )
Total income tax expense |  |  | 82,960,493 |  |  |  | 369,853,650 |  |  |  | 20,852,646 |  |  |  | 3,272,235 |
Summary of Principal Components of Deferred Tax Assets and Liabilities | The principal components of the deferred tax assets and liabilities are as follows:
|  | For the years ended December 31, |
|  | 2020 |  |  | 2021 |
|  | RMB |  |  | RMB |  |  | US$ |
Non-current deferred tax assets |  |  |  |  |  |  |  |  |  |  |  |
Risk assurance liabilities |  |  | 223,500,138 |  |  |  | 276,221,432 |  |  |  | 43,345,170 |
Provision for credit losses |  |  | 55,584,637 |  |  |  | 194,973,439 |  |  |  | 30,595,587 |
Contract assets |  |  | — |  |  |  | 7,495,619 |  |  |  | 1,176,226 |
Customer advances |  |  | 5,687,968 |  |  |  | 5,552,404 |  |  |  | 871,293 |
Donation |  |  | 125,000 |  |  |  | — |  |  |  | — |
Fair value change on derivative instruments |  |  | — |  |  |  | 1,336,597 |  |  |  | 209,741 |
Net operating loss carry-forward |  |  | 65,558,135 |  |  |  | 16,959,870 |  |  |  | 2,661,374 |
Less: valuation allowance |  |  | (7,148,961 | ) |  |  | (16,959,870 | ) |  |  | (2,661,374 | )
Non-current deferred tax assets, net |  |  | 343,306,917 |  |  |  | 485,579,491 |  |  |  | 76,198,017 |
Non-current deferred tax liabilities |  |  |  |  |  |  |  |  |  |  |  |
Acquisition of insurance brokerage license |  |  | (10,724,126 | ) |  |  | (10,724,126 | ) |  |  | (1,682,849 | )
Unrealized gain on long-term investment |  |  | (11,009,130 | ) |  |  | (11,009,130 | ) |  |  | (1,727,573 | )
Contract assets |  |  | (162,308,288 | ) |  |  | — |  |  |  | — |
Withholding tax |  |  | (319,079,320 | ) |  |  | (40,746,914 | ) |  |  | (6,394,080 | )
Non-current deferred tax liabilities |  |  | (503,120,864 | ) |  |  | (62,480,170 | ) |  |  | (9,804,502 | )
Summary of Reconciliation of Income Before the Provision of Income Taxes and Actual Provision for Income Taxes | Reconciliation between the income tax expense computed by applying the PRC tax rate to income before the provision of income taxes and the actual provision for income taxes is as follows:
|  | For the years ended December 31, |
|  | 2019 |  |  | 2020 |  |  | 2021 |
|  | RMB |  |  | RMB |  |  | RMB |  |  | US$ |
Income before provision of income tax |  |  | 487,819,233 |  |  |  | 3,743,273,711 |  |  |  | 12,308,294 |  |  |  | 1,931,441 |
PRC statutory income tax rate |  |  | 25 | % |  |  | 25 | % |  |  | 25 | % |  |  | 25 | %
Income tax at statutory tax rate |  |  | 121,954,808 |  |  |  | 935,818,428 |  |  |  | 3,077,074 |  |  |  | 482,860 |
Tax rate differential |  |  | (36,157,163 | ) |  |  | (852,831,321 | ) |  |  | 5,070,813 |  |  |  | 795,721 |
Over-accrued EIT for previous years |  |  | (39,664,283 | ) |  |  | — |  |  |  | — |  |  |  | — |
Impact of tax rate change |  |  | 36,367,754 |  |  |  | (35,511,678 | ) |  |  | — |  |  |  | — |
Utilization of net operating loss carry-forward |  |  | (9,708,887 | ) |  |  | — |  |  |  | — |  |  |  | — |
Non-deductible expenses |  |  | 22,277,780 |  |  |  | 19,219,052 |  |  |  | 19,443,641 |  |  |  | 3,051,132 |
Research and development super-deduction |  |  | (9,961,515 | ) |  |  | (10,970,775 | ) |  |  | (10,177,551 | ) |  |  | (1,597,080 | )
Non-taxable income |  |  | (3,587,542 | ) |  |  | (982,266 | ) |  |  | — |  |  |  | — |
Change in valuation allowance |  |  | 1,439,541 |  |  |  | (2,412,144 | ) |  |  | 9,894,006 |  |  |  | 1,552,585 |
Withholding tax |  |  | — |  |  |  | 317,524,354 |  |  |  | (6,455,337 | ) |  |  | (1,012,983 | )
Income tax expenses |  |  | 82,960,493 |  |  |  | 369,853,650 |  |  |  | 20,852,646 |  |  |  | 3,272,235 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation of profit (loss) from reportable segments to the consolidated income (loss) before income tax expense (benefit) and discontinued operations. Includes, but is not limited to, reconciliation after income tax if income tax is allocated to the reportable segment. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8906-108599 + Details
Name: | us-gaap_ReconciliationOfOperatingProfitLossFromSegmentsToConsolidatedTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration