
	As of December 31,
	2021			2022
	RMB’000			RMB’000
Loans originated by consolidated trust plans		202,175,185			186,396,992
Loans originated by microloan lending companies and consumer finance company		12,587,586			30,109,705
Interest receivable		2,963,210			2,002,926
Less: Provision for impairment losses
Stage 1		(1,860,245	)		(4,481,912	)
Stage 2		(312,280	)		(1,197,126	)
Stage 3		(581,346	)		(1,383,940	)
		(2,753,871	)		(7,062,978	)

		214,972,110			211,446,645

Expected credit loss rate		1.26	%		3.23	%

(a)

As of December 31, 2021 and 2022, loans amounting to RMB162,417 million and RMB142,966 million, respectively, were covered by credit enhancement provided by credit enhancement providers. Of these amounts, the majority of the balance in each period was covered by credit insurance provided by Ping An Property and Casualty Insurance Company (“Ping An P&C”), a subsidiary of Ping An Group. Credit enhancement providers independently underwrite the borrowers and entered into the credit enhancement agreements either in the form of credit insurance or financing guarantees directly with the borrowers. The beneficiaries of such credit enhancement are the institutional funding partners who provide funding to the borrowers.

(b)	For the years ended December 31, 2020, 2021 and 2022, the amounts of concession provided to customers were not material.

(

)

The following table sets forth the movement of gross carrying amount of loans to customers for the year ended December 31, 2020:


	Year ended December 31, 2020
	RMB’000			RMB’000			RMB’000			RMB’000
	Stage 1			Stage 2			Stage 3			Total
As of January 1, 2020		47,052,175			324,440			1,373,211			48,749,826
New loans originated		141,924,691			—			—			141,924,691
Transfers		(2,124,274	)		1,713,887			410,387			—
— From stage 1 to stage 2		(1,806,096	)		1,806,096			—			—
— From stage 1 to stage 3		(324,045	)		—			324,045			—
— From stage 2 to stage 1		5,867			(5,867	)		—			—
— From stage 2 to stage 3		—			(98,355	)		98,355			—
— From stage 3 to stage 2		—			12,013			(12,013	)		—
Loans de-recognized and other adjustments in the current period (including repayments of loans)		(67,284,010	)		(1,198,510	)		(195,666	)		(68,678,186	)
Write-offs		—			—			(1,181,312	)		(1,181,312	)

As of December 31, 2020		119,568,582			839,817			406,620			120,815,019

(

)

The following table sets forth the movement of ECL allowance for the year ended December 31, 2020:


	Year ended December 31, 2020
	RMB’000			RMB’000			RMB’000			RMB’000
	Stage 1			Stage 2			Stage 3			Total
As of January 1, 2020		136,396			53,258			1,061,660			1,251,314
New loans originated		373,266			—			—			373,266
Transfers		(107,551	)		213,807			378,215			484,471
— From stage 1 to stage 2		(101,324	)		101,324			—			—
— From stage 1 to stage 3		(7,322	)		—			7,322			—
— From stage 2 to stage 1		4,161			(4,161	)		—			—
— From stage 2 to stage 3		—			(49,632	)		49,632			—
— From stage 3 to stage 2		—			1,344			(1,344	)		—
Net impact on expected credit loss by stage transfers		(3,066	)		164,932			322,605			484,471
Loans de-recognized and other adjustments in the current period (including repayments of loans)		(203,494	)		(89,632	)		(119,197	)		(412,323	)
Change in parameters of expected credit loss model		282,237			17,906			(664	)		299,479
Write-offs		—			—			(1,181,312	)		(1,181,312	)
Recovery of loans written off previously		—			—			174,310			174,310

As of December 31, 2020		480,854			195,339			313,012			989,205

(

)

The following table sets forth the movement of gross carrying amount of loans to customers for the year ended December 31, 2021:


	Year ended December 31, 2021
	RMB’000			RMB’000			RMB’000			RMB’000
	Stage 1			Stage 2			Stage 3			Total
As of January 1, 2021		119,568,582			839,817			406,620			120,815,019
New loans originated		234,198,681			—			—			234,198,681
Transfers		(5,530,212	)		4,439,585			1,090,627			—
— From stage 1 to stage 2		(5,579,855	)		5,579,855			—			—
— From stage 2 to stage 1		49,643			(49,643	)		—			—
— From stage 2 to stage 3		—			(1,091,109	)		1,091,109			—
— From stage 3 to stage 2		—			482			(482	)		—
Loans de-recognized and other adjustments in the current period (including repayments of loans)		(132,711,645	)		(3,703,157	)		(25,534	)		(136,440,336	)
Write-offs		—			—			(847,383	)		(847,383	)

As of December 31, 2021		215,525,406			1,576,245			624,330			217,725,981

(

)

The following table sets forth the movement of ECL allowance for the year ended December 31, 2021:


	Year ended December 31, 2021
	RMB’000			RMB’000			RMB’000			RMB’000
	Stage 1			Stage 2			Stage 3			Total
As of January 1, 2021		480,854			195,339			313,012			989,205
New loans originated		1,346,940			—			—			1,346,940
Transfers. .		(1,104,156	)		454,235			1,045,357			395,436
— From stage 1 to stage 2		(1,109,405	)		1,109,405			—			—
— From stage 2 to stage 1		16,509			(16,509	)		—			—
— From stage 2 to stage 3		—			(1,000,215	)		1,000,215			—
— From stage 3 to stage 2		—			458			(458	)		—
Net impact on expected credit loss by stage transfers		(11,260	)		361,096			45,600			395,436
Loans de-recognized and other adjustments in the current period (including repayments of loans)		(622,468	)		(470,524	)		(124,794	)		(1,217,786	)
Change in parameters of expected credit loss model		1,759,075			133,230			24,216			1,916,521
Write-offs		—			—			(847,383	)		(847,383	)
Recovery of loans written off previously		—			—			170,938			170,938

As of December 31, 2021		1,860,245			312,280			581,346			2,753,871

(

)

The following table sets forth the movement of gross carrying amount of loans to customers for the year ended December 31, 2022:


	Year ended December 31, 2022
	RMB’000			RMB’000			RMB’000			RMB’000
	Stage 1			Stage 2			Stage 3			Total
As of January 1, 2022		215,525,406			1,576,245			624,330			217,725,981
New loans originated		215,834,125			—			—			215,834,125
Transfers		(17,245,234	)		13,239,242			4,005,992			—
— From stage 1 to stage 2		(17,540,156	)		17,540,156			—			—
— From stage 2 to stage 1		294,922			(294,922	)		—			—
— From stage 2 to stage 3		—			(4,015,845	)		4,015,845			—
— From stage 3 to stage 2		—			9,853			(9,853	)		—
Loans de-recognized and other adjustments in the current period (including repayments of loans)		(201,023,209	)		(10,854,775	)		(159,277	)		(212,037,261	)
Write-offs		—			—			(3,013,222	)		(3,013,222	)

As of December 31, 2022		213,091,088			3,960,712			1,457,823			218,509,623

(

)

The following table sets forth the movement of ECL allowance for the year ended December 31, 2022:


	Year ended December 31, 2022
	RMB’000			RMB’000			RMB’000			RMB’000
	Stage 1			Stage 2			Stage 3			Total
As of January 1, 2022		1,860,245			312,280			581,346			2,753,871
New loans originated		1,609,220			—			—			1,609,220
Transfers		(3,550,516	)		1,088,799			3,840,446			1,378,729
— From stage 1 to stage 2		(3,573,960	)		3,573,960			—			—
— From stage 2 to stage 1		54,161			(54,161	)		—			—
— From stage 2 to stage 3		—			(3,575,710	)		3,575,710			—
— From stage 3 to stage 2		—			9,329			(9,329	)		—
Net impact on expected credit loss by stage transfers		(30,717	)		1,135,381			274,065			1,378,729
Loans de-recognized and other adjustments in the current period (including repayments of loans)		(1,707,206	)		(403,559	)		(214,194	)		(2,324,959	)
Change in parameters of expected credit loss model		6,270,169			199,606			42,624			6,512,399
Write-offs		—			—			(3,013,222	)		(3,013,222	)
Recovery of loans written off previously		—			—			146,940			146,940

As of December 31, 2022		4,481,912			1,197,126			1,383,940			7,062,978

As of December 31, 2022, loans to customers amounting to RMB3,013 million were written off in 2022 and were still subject to enforcement activity.

The enforcement activity includes the amounts written off in previous years.