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Loans receivable, net | 12 Months Ended
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Dec. 31, 2019
Receivables [Abstract] |
Loans receivable, net | 4. Loans receivable, net Loans receivable originated and retained by the Group consist of the following:
|  | As of December 31, |
|  | 2018 |  |  | 2019 |
|  | RMB |  |  | RMB |
Loans (adjusted, Note 2(ah)) |  |  | 2,405,489 |  |  |  | 5,124,376 |
Allowance for loan losses (adjusted, Note 2(ah)) |  |  | (74,381 | ) |  |  | (316,124 | )
Loans receivable, net |  |  | 2,331,108 |  |  |  | 4,808,252 |
As of December 31, 2019 and 2018, the entire loans receivable balance represents the outstanding loans made to the borrowers from consolidated trusts and loans held by subsidiaries of the Group. As part of the Group’s efforts to develop new product offerings for institutional funding partners, the Group has established a series of trusts administrated by third-party trust companies. These trusts make loans solely to borrowers referred the Group to provide returns to the trust beneficiaries. As such, the Group has power to direct the activities of the trusts. Also, the Group is either the sole beneficiary of certain trusts or has the obligation to absorb losses or the right to receive residual benefits from certain trusts that could potentially be significant to these trusts. As a result, the Group is considered the primary beneficiary of the trusts and their assets, liabilities, results of operations and cash flows are consolidated accordingly. The following table sets forth the activity in the allowance for loan losses for the years ended December 31, 2017, 2018 and 2019.
|  | For the Years Ended December 31, |
|  | 2017 |  |  | 2018 |  |  | 2019 |
|  | RMB |  |  | RMB |  |  | RMB |
Beginning balance |  |  | 1,084 |  |  |  | 47,670 |  |  |  | 74,381 |
Current period provision |  |  | 65,299 |  |  |  | 204,442 |  |  |  | 372,066 |
Current period reversal |  |  | (18,713 | ) |  |  | (11,693 | ) |  |  | (72,562 | )
Current period write off |  |  | — |  |  |  | (166,038 | ) |  |  | (57,761 | )
Ending balance |  |  | 47,670 |  |  |  | 74,381 |  |  |  | 316,124 |
The following table sets forth the aging of loans as of December 31, 2018 and December 31, 2019:
|  | 1-89 days past due |  |  | 90-119 days Past due |  |  | 120-149 days Past due |  |  | 150-179 days Past due |  |  | Total past due |  |  | Current |  |  | Total loans receivable |
December 31, 2018 |  |  | 59,685 |  |  |  | 11,173 |  |  |  | 7,739 |  |  |  | 7,040 |  |  |  | 85,637 |  |  |  | 2,319,852 |  |  |  | 2,405,489 |
December 31, 2019 |  |  | 283,354 |  |  |  | 51,775 |  |  |  | 45,321 |  |  |  | 40,034 |  |  |  | 420,484 |  |  |  | 4,703,892 |  |  |  | 5,124,376 |
As of December 31, 2018 and 2019, loans receivable amounting to RMB25,952 and RMB137,130 were in non-accrual status with no loans receivables accruing interest 90 days past due. Interest income for non-accrual loans receivable is recognized on a cash basis. For the year ended December 31, 2017, 2018 and 2019, interest income earned from non-accrual loans receivable were not material. As prescribed in ASC Topic 310, credit losses shall be deducted from the allowance for credit losses and written off in the period deemed uncollectible. Uncollectible generally means loans remain past due after all commercially reasonable means of recovering the loan balance have been exhausted. As disclosed in note 2(n), the Company writes-off the loans receivable and the related allowance when the loans receivables are delinquent for 180 days or more. The allowance for loan losses is maintained at a level considered adequate to provide for losses that will probably incur. Management performs a quarterly evaluation of the adequacy of the allowance. The allowance is based on the Group’s past loan loss history, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, composition of the loan portfolio, current economic conditions and other relevant factors. The allowance is calculated at portfolio-level since the loans portfolio is typically of smaller balance homogenous loans and is collectively evaluated for impairment. In estimating the probable loss of the loan portfolio, the Group also considers qualitative factors such as current economic conditions and or events in specific industries and geographical areas, including unemployment levels, trends in real estate values, peer comparisons, and other pertinent factors such as regulatory guidance. The following table sets forth the total assets, liabilities, results of operations and cash flows of the above trusts, which are included in the Group’s consolidated financial statements.
|  | As of December 31, |
|  | 2018 |  |  | 2019 |
|  | RMB |  |  | RMB |
Restricted cash |  |  | 303,667 |  |  |  | 799,646 |
Loans and other receivable |  |  | 2,507,878 |  |  |  | 5,092,609 |
Total assets |  |  | 2,811,545 |  |  |  | 5,892,255 |
Funds payable to investors of consolidated trusts |  |  | 2,808,506 |  |  |  | 5,887,693 |
Taxes payable |  |  | 3,039 |  |  |  | 4,562 |
Total liabilities |  |  | 2,811,545 |  |  |  | 5,892,255 |
|  | For the Years Ended December 31, |
|  | 2017 |  |  | 2018 |  |  | 2019 |
|  | RMB |  |  | RMB |  |  | RMB |
Net revenue |  |  | (28,372 | ) |  |  | (164,082 | ) |  |  | (243,795 | )
Net loss |  |  | (44,396 | ) |  |  | — |  |  |  | — |
Net cash used in operating activities |  |  | (16,024 | ) |  |  | (18,008 | ) |  |  | (78,339 | )
Net cash used in investing activities |  |  | (615,971 | ) |  |  | (1,624,784 | ) |  |  | (1,290,842 | )
Net cash provided by financing activities |  |  | 675,654 |  |  |  | 1,901,684 |  |  |  | 1,865,160 |
Net increase in cash, cash equivalents and restricted cash |  |  | 43,659 |  |  |  | 258,892 |  |  |  | 495,979 |
Cash, cash equivalents and restricted cash at beginning of year |  |  | 1,116 |  |  |  | 44,775 |  |  |  | 303,667 |
Cash, cash equivalents and restricted cash at end of period |  |  | 44,775 |  |  |  | 303,667 |  |  |  | 799,646 |
The following table sets forth the breakdown of funds payable to investors of consolidated trusts between the institutional funding partners and the Group as of December 31, 2018 and December 31, 2019:
|  | As of December 31, |
|  | 2018 |  |  | 2019 |
|  | Institutional funding partners |  |  | The Group |  |  | Institutional funding partners |  |  | The Group |
Principal invested |  |  | 1,493,916 |  |  |  | 1,093,610 |  |  |  | 3,529,785 |  |  |  | 1,316,130 |
Accrued interest/residual interest |  |  | 11,993 |  |  |  | 208,987 |  |  |  | 130,698 |  |  |  | 911,080 |
Total |  |  | 1,505,909 |  |  |  | 1,302,597 |  |  |  | 3,660,483 |  |  |  | 2,227,210 |

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- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2196772 + Details
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- References No definition available. + Details
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