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Loans receivable net of credit impairment losses

12 Months Ended

Dec. 31, 2023

Loans Receivable, Net Of Credit Impairment Losses

14. Loans receivable, net of credit impairment losses

The total loans receivable are comprised of the following:

	As of December 31,
	2022			2023
	RMB’000			RMB’000
Loans receivable at amortized cost		753,043			248,350
Accrued interest		443,359			157,726
Gross loans receivable		1,196,402			406,076
Less: Credit impairment losses		(640,290	)		(212,394	)
Loans receivable, net of credit impairment losses		556,112			193,682

The following table provides the changes in credit impairment losses between the beginning and the end of the annual period:

	As of December 31,
	2022		2023
	RMB’000		RMB’000
Credit impairment losses as at January 1		597,870		640,290
Charge to statement of profit and other comprehensive income		42,420		373,647
Written off of impairment losses		-		(801,543	)
Credit impairment losses as of December 31		640,290		212,394

The Company originates loans to customers located primarily in Wuhan City, Hubei Province. The Company’s headquarters, borrowers and operations are located in Wuhan, People’s Republic of China, the epicenter for the COVID-19 pandemic. As a result of the COVID-19 outbreak which was first reported on December 31, 2019 in Wuhan, People’s Republic of China, the Chinese government imposed a lockdown on the entire Hubei Province, travel restrictions and quarantine, the Company’s borrowers and operations have been significantly disrupted. Further, all of our customers are located in Wuhan, People’s Republic of China, as a result of the COVID-19 pandemic, government lockdown, travel restrictions, reduced economic activity and quarantines imposed by the Chinese government in the past years, together with the overall domestic economy downturn, our customers’ business operations, financial conditions and cash flows were materially adversely affected, which, in turn, materially adversely affected our collection of interest and principal on our loans to customers.

This geographic concentration of credit exposes the Company to a higher degree of risk associated with this economic region.

The loans receivable were secured, interest at range from 1.25% to 3.30% (2022: 1.25% to 3.30%) and repayable on demand.