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, 2021 and 2022 after the adoption of ASC 326:


	For the Year Ended December 31, 2020			For the Year Ended December 31, 2021			For the Year Ended December 31, 2022
				(RMB in thousands)
Opening balances		-			694,582			419,843
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			1,928,195
Release of deferred guarantee income		(2,319,693	)		(774,544	)		(1,453,180	)
Ending balances		694,582			419,843			894,858

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,
	2020		2021		2022
	(RMB in thousands)
Installment e-commerce platform service income
Installment e-commerce platform service income		1,900,835		1,661,156		1,997,838
Other services		32,093		564		58,227
Total installment e-commerce platform service income		1,932,928		1,661,720		2,056,065
Credit facilitation service income
Loan facilitation and matching servicing fees-credit oriented		2,628,941		3,120,892		1,404,507
Post-origination servicing fees-credit oriented		1,087,567		1,327,452		1,082,020
Investment Program management service fees-credit oriented		70,488		—		—
Total credit facilitation service income		3,786,996		4,448,344		2,486,527
Tech-empowerment service income
Loan facilitation and matching servicing fees- performance based		1,656,998		1,727,794		935,234
Post-origination servicing fees- performance based		273,837		561,658		427,404
Loan facilitation and servicing fees- volume based		106,007		279,902		252,460
Membership services		113,107		107,901		82,256
Other services		36,797		85,740		148,589
Total tech-empowerment service income		2,186,746		2,762,995		1,845,943
Total revenue from loan facilitation and servicing fees		5,823,838		7,017,698		4,101,625
Total operating revenue within the scope of ASC 606		7,906,670		8,873,059		6,388,535

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, 2022
	RMB in thousands
Cash payments for operating leases		56,347
Right-of-use assets obtained in exchange for operating lease liabilities		15,535

Schedule of Concentration Risk

:


	As of December 31,
	2021				2022
Inventory supplier A	*			—		28.9	%
Inventory supplier B		16.6	%	—		23.4	%
Inventory supplier C	*			—		17.5	%
Inventory supplier D	-					11.6	%
Inventory supplier E		16.6	%		-
Inventory supplier F		11.9	%		*

* Less than 10%.

Schedule of Concentration Risk

:


	As of December 31,
	2021			2022
Institutional Funding Partner A		16.3	%		16.9	%
Institutional Funding Partner B		23.0	%	*
Institutional Funding Partner C	*				16.5	%

* Less than 10%.

Schedule of Concentration Risk

.


	As of December 31,
	2021			2022
Guarantee Company A	*				23.4	%
Guarantee Company B		16.8	%	*
Guarantee Company C		16.4	%	*

* 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 term deposit		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.