SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of the name of foreign owned subsidiaries and VIE companies

Name of Foreign Owned Subsidiaries		Name of VIE Companies
Heng Ye		Heng Cheng
Heng Yu Da		Yi Ren Wealth Management

Schedule of movement of liability from quality assurance program

As of January 1, 2016	546,332
Provision at the inception of new loans (Note)	1,598,238
Provision for fraud incident	81,263
Net payment	(754,833	)


As of December 31, 2016	1,471,000

Note:Amount represents cash received on non-contingent fees allocated to the stand-ready liability for loans generated during the year.

Schedule of estimated useful lives

Computer and transmission equipment		3 years
Furniture and office equipment		5 years
Software		5 years
Leasehold improvements		Over the shorter of the lease term or expected useful lives

Consolidated VIEs

VIE arrangements

Schedule of amounts and balances included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances

	As of December 31,
	2015	2016	2016
	RMB	RMB	USD
Assets
Cash and cash equivalents	144,535	433,510	62,438
Restricted cash	453,230	1,114,805	160,565
Accounts receivable	82,993	23,838	3,433
Prepaid expenses and other assets	234,204	398,675	57,421
Amounts due from related parties	86,889	1,678	242
Held-to-maturity investments	30,000	—	—
Available-for-sale investments	—	498,000	71,727
Property, equipment and software, net	4,392	4,427	638
Deferred tax assets	175,862	436,402	62,855


Total assets	1,212,105	2,911,335	419,319


Liabilities
Accounts payable	4,499	13,544	1,951
Amounts due to related parties	3,426	6,907	995
Liabilities from quality assurance program	546,332	1,471,000	211,868
Deferred revenue	117,484	164,318	23,667
Accrued expenses and other liabilities	244,438	507,890	73,151


Total liabilities	916,179	2,163,659	311,632

	For the years ended December 31,
	2014		2015	2016	2016
	RMB		RMB	RMB	USD
Net revenue	196,525		1,316,761	3,237,768	466,336
Net (loss)/income	(27,708	)	465,679	1,445,081	208,135

	For the years ended December 31,
	2014		2015		2016		2016
	RMB		RMB		RMB		USD
Net cash (used in)/provided by operating activities	(227,041	)	812,496		2,415,204		347,862
Net cash used in investing activities	(3,577	)	(35,486	)	(471,321	)	(67,884	)

Consolidated ABFE

VIE arrangements

Schedule of amounts and balances included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances

	As of December 31,
	2015	2016	2016
	RMB	RMB	USD
Assets
Restricted cash	30,735	103,481	14,904
Prepaid expenses and other assets	1,376	1,056	152
Loans at fair value	221,268	371,033	53,440
Held-to-maturity investments	—	4,896	705

Total assets	253,379	480,466	69,201


Liabilities
Accounts payable	—	147	21
Payable to investors at fair value	252,907	418,686	60,303
Accrued expenses and other liabilities	713	2,895	417

Total liabilities	253,620	421,728	60,741

	For the year ended December 31,
	2015	2016	2016
	RMB	RMB	USD
Net revenue	—	—	—
Net loss	11,333	19,735	2,842

	For the year ended December 31,
	2015		2016		2016
	RMB		RMB		USD
Net cash provided by operating activities	17,984		6,591		949
Net cash used in investing activities	(237,009	)	(169,680	)	(24,439	)
Net cash provided by financing activities	250,000		157,121		22,630

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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