Schedule of the Assets, Liabilities, Results of Operations and Changes in Cash and Cash Equivalents and Restricted Cash of the VIEs and their Subsidiaries


		As of December 31,
		2020			2021


	(RMB in thousands)
Consolidating Schedule of Financial Position
ASSETS
Cash and cash equivalents		1,300,220	2,132,402
Restricted cash		1,274,718	1,423,233
Restricted time deposits		509,600	424,678
Financing receivables, net		5,123,309	4,014,102
Loan at fair value		381,393	252,970
Amounts due from Group companies (1)		219,807	58,050
Deposits to insurance companies and guarantee companies		1,066,281	1,378,489
Contract assets, service fees receivable and guarantee receivables		5,103,246	4,661,403
Property, equipment and software, net		58,812	129,769
Land use rights, net and right of use assets		1,056,444	1,096,579
Long‑term investments		435,790	448,886
Other assets		2,219,213	2,675,389
TOTAL ASSETS		18,748,833	18,695,950
LIABILITIES
Amounts due to Group companies (1)		4,930,414	6,452,376
Short‑term borrowings		1,751,633	1,735,931
Funding debts		5,511,749	3,798,233
Deferred guarantee income		694,582	419,843
Contingent guarantee liabilities		1,738,787	928,840
Other liabilities		2,754,100	3,593,686
TOTAL LIABILITIES		17,381,265	16,928,909
Total equity attributable to owners of the company		1,327,568	1,726,848
Non-controlling interests		40,000	40,193
TOTAL SHAREHOLDERS’ EQUITY		1,367,568	1,767,041
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		18,748,833	18,695,950


	For the Year Ended December 31,
	2019			2020			2021
	(RMB in thousands)
Condensed Consolidating Schedule of Results of Operations
Operating revenue:
Third-party revenues		10,603,507			11,579,992			11,091,978
Inter-group revenues (2)		5,210			449			11,429
Total Operating revenue		10,608,717			11,580,441			11,103,407
Operating cost:
Third-party costs		(5,575,251	)		(7,959,095	)		(5,520,994	)
Inter-group costs(2)		(58,469	)		(21,817	)		(1,636	)
Total operating cost		(5,633,720	)		(7,980,912	)		(5,522,630	)
Gross profit		4,974,997			3,599,529			5,580,777
Operating expense:
Third-party expenses		(1,692,792	)		(1,360,975	)		(1,689,151	)
Inter-group expenses(2)		(1,285,727	)		(2,387,176	)		(3,047,627	)
Total operating expenses		(2,978,519	)		(3,748,151	)		(4,736,778	)
Others		11,202			(798,733	)		(369,200	)
Income/(Loss) before income tax		2,007,680			(947,355	)		474,799
Income tax (expenses)/benefits		(316,661	)		131,242			(142,201	)
Net income/(loss)		1,691,019			(816,113	)		332,598
Less: net income attributable to non-controlling interests		—			—			193
Net income/(loss) attributable to ordinary shareholders of the Company		1,691,019			(816,113	)		332,405


	For the Year Ended December 31,
	2019			2020			2021
	(RMB in thousands)
Net cash used in operating activities		(1,250,380	)		(1,750,611	)		(298,268	)
Net cash (used in)/provided by transactions with external parties		(118,606	)		670,707			3,839,254
Net cash used in transactions with inter-group entities for technical service charges and others (3)		(1,131,774	)		(2,421,318	)		(4,137,522	)
Net cash provided by/(used in) investing activities		579,207			(2,190,303	)		622,696
Net cash provided by/(used in) transactions with external parties		763,395			(2,389,743	)		472,228
Net cash (used in)/provided by funds to Group companies (4)		(184,188	)		199,440			150,468
Net cash provided by financing activities		1,006,844			3,720,373			656,269
Net cash provided by/(used in) transactions with external parties		573,227			1,203,610			(1,775,038	)
Net cash provided by funds from Group companies (5)		433,617			2,516,763			2,431,307
Net increase/(decrease) in cash, cash equivalents and restricted cash		335,671			(220,541	)		980,697
Cash, cash equivalents and restricted cash at beginning of the year		2,462,134			2,797,805			2,574,938
Cumulative effect due to the adoption of ASC 326 (Note 2(e))		—			(2,326	)		—
Cash, cash equivalents and restricted cash at end of the year		2,797,805			2,574,938			3,555,635

Schedule of Obligations Associated with Deferred Guarantee Income After Adoption of ASC 326

The following table sets forth the activities of the Group’s obligations associated with the deferred guarantee income for the years ended December 31, 2020 and 2021 after the adoption of ASC 326:


	For the Year Ended December 31, 2020			For the Year Ended December 31, 2021
	(RMB in thousands)
Opening balances		-			694,582
Cumulative effect due to the adoption of ASC 326 (Note 2(g))		1,481,814			—
Fair value of deferred guarantee income at inception of new loans		1,532,461			499,805
Release of deferred guarantee income		(2,319,693	)		(774,544	)
Ending balances		694,582			419,843

Schedule of Operating Revenue Within Scope of ASC 606 Disaggregated by Revenue Sources

The following table presents the Group’s operating revenue within the scope of ASC 606 disaggregated by revenue sources:


	For the Year Ended December 31,
	2019		2020		2021
	(RMB in thousands)
Online direct sales and services income:
Online direct sales		3,623,991		1,900,835		1,661,156
Membership services		112,558		113,107		107,901
Other services		92,292		68,890		86,304
Total		3,828,841		2,082,832		1,855,361


	2019		2020		2021
	(RMB in thousands)
Credit-oriented services income
Loan facilitation and matching service fees-credit oriented		3,868,044		2,628,941		3,120,892
Post-origination service fees-credit oriented		643,399		1,087,567		1,327,452
Investment Program management service fees-credit oriented		300,425		70,488		—
Total		4,811,868		3,786,996		4,448,344


-	2019		2020		2021
	(RMB in thousands)
Platform-based services income:
Loan facilitation and matching service fees-performance based		556,143		1,656,998		1,727,794
Post-origination service fees-performance based		92,373		273,837		561,658
Loan facilitation and servicing fees-volume based		167,458		106,007		279,902
Total		815,974		2,036,842		2,569,354

Schedule of Estimated Useful Lives


Category	Estimated Useful Lives
Computers and equipment	3 years
Furniture and fixtures	4 ‑ 5 years
Leasehold improvement	Over the shorter of the expected life of leasehold improvement or the lease term
Software	3 ‑ 10 years

Schedule of Supplemental Cash Flow Information Related to Operating Leases


	For the Year ended December 31, 2021
	RMB in thousands
Cash payments for operating leases		60,620
Right-of-use assets obtained in exchange for operating lease liabilities		172,603

Schedule of Concentration Risk

Four and three suppliers accounted for more than 10% of the Group’s accounts payable as of December 31, 2020 and 2021, respectively, as follows:


	As of December 31,
	2020			2021
Inventory supplier A		16.9	%		16.6	%
Inventory supplier B		16.8	%	*
Inventory supplier C		10.7	%		—
Inventory supplier D		24.4	%		16.6	%
Inventory supplier E		—			11.9	%

* Less than 10%.

Schedule of Concentration Risk

Institutional Funding Partners accounted for more than 10% of the Group’s funding debts as of December 31, 2020 and 2021 respectively as follows:


	As of December 31,
	2020			2021
Institutional Funding Partner A		21.4	%		16.3	%
Institutional Funding Partner B	*				23.0	%

Schedule of Concentration Risk

As of December 31, 2021, two guarantee companies accounted for more than 10% of the Group’s deposits to insurance companies and guarantee companies.


	As of December 31,
	2020			2021
Guarantee Company A		13.6	%		16.8	%
Guarantee Company B		19.6	%		16.4	%
Insurance Company C		18.8	%	*
Guarantee Company D		12.6	%	*

* Less than 10%.

Schedule of Cumulative Effect of Changes on Consolidated Balance Sheet Due to Adoption of ASC 326

The following table sets forth the cumulative effect of the changes on the Group’s Consolidated Balance Sheet as of January 1, 2020 due to the adoption of ASC 326:


(RMB in thousands)	As of December 31, 2019				Adjustments due to the adoption of ASC 326				As of January 1, 2020
Assets
Cash and cash equivalents		2,085,234				(1,465	)			2,083,769
Restricted cash		1,900,392				(1,848	)			1,898,544
Restricted time deposits		1,966,643				(1,921	)			1,964,722
Financing receivables, net		4,411,488				(229,661	)			4,181,827
Accrued interest receivable, net		54,284				(1,681	)			52,603
Guarantee receivables, net		1,464,977				(40,388	)			1,424,589
Prepaid expenses and other current assets		1,324,924				(12,077	)			1,312,847
Deposits to insurance companies and guarantee companies		1,251,003				(3,060	)			1,247,943
Contract assets and service fees receivable, net		3,454,851				(26,045	)			3,428,806
Other assets		454,421				(2,466	)			451,955
Long-term investments		511,605				(3,588	)			508,017
Liabilities
Guarantee liabilities(1)	(1,726,368)			(2)		1,726,368				—
Deferred guarantee income(1)		—			(1,481,814)			(2)		(1,481,814	)
Contingent guarantee liabilities(1)		—			(2,214,128)			(2)		(2,214,128	)
Total impact to allowance for credit losses						(2,293,774	)
Deferred tax assets		157,138				78,803				235,941
Deferred tax liabilities		(309,646	)			296,471				(13,175	)
Total retained earnings impact						(1,918,500	)

(1) Before the adoption of ASC 326, the guarantee liabilities subsequent to initial recognition were measured at the greater of the amount determined based on ASC 460 and the amount determined under ASC 450. An excess liability was recorded when the aggregate contingent liabilities under ASC 450 exceeded the balance of guarantee liabilities determined under ASC 460.

After the adoption of ASC 326, a contingent liability in full amount determined using CECL lifetime methodology of the guarantee (i.e., the contingent aspect recorded as “Contingent guarantee liabilities”) shall be accounted for in addition to and separately from the guarantee liability (i.e., the noncontingent aspect recorded as “Deferred guarantee income”) accounted for under ASC 460.

(2) As of December 31, 2019, the Group determined that the aggregate contingent liabilities under ASC 450 (RMB1,726.4 million) exceeded the balance of guarantee liabilities (RMB1,481.8 million) under ASC 460 and recorded an excess liability of RMB244.6 million. As a result of the adoption, RMB1,481.8 million of guarantee liabilities previously under ASC 460 was recorded as “Deferred guarantee income,” and RMB2,214.1 million of contingent guarantee liabilities is determined using CECL lifetime methodology compared to incurred loss methodology before the adoption.