Deposits to institutional cooperators, net

12 Months Ended

Dec. 31, 2022

Deposits to institutional cooperators, net

Deposits to institutional cooperators, net

5. Deposits to institutional cooperators, net

The following table presents the deposits to cooperators as of December 31, 2021 and 2022, respectively:

	As of
	December 31,	As of December 31,
	2021	2022	2022
	RMB	RMB	US$
Deposits to cooperators	1,502,433,446	1,773,640,000	257,153,627
Provision for credit losses on deposits to institutional cooperators	(2,026,696)	(3,322,575)	(481,728)
Deposits to cooperators, net	1,500,406,750	1,770,317,425	256,671,899

Deposits to cooperators relate to the pledged cash to the Group’s financial institutional cooperators and the amount of deposit is separately agreed with each institutional cooperator.In 2020, to maintain the collaborative relationship with one of its institutional cooperator and to avoid any material adverse impact on the Group’s current business model and future transaction cost, the Group used deposits amounting to RMB970,000,000 to compensate for such institutional cooperator’s loss for the amount it had paid under investors’ or institutional funding partners’ claims arising from borrowers’ default to repay loans. The Group also assumed the right of subrogation and related rights against the defaulting borrowers, which were sold to a third party with the consideration of RMB10,000,000. The Group has recognized above loss of RMB960,000,000 as impairment of the deposits and has also provided an allowance for the potential losses of the remaining deposits, taking into account the underlying assets’ credit quality.

As of 31 December, 2021 and 2022, the allowance of deposits to cooperators was RMB2,026,696 and RMB3,322,575 (US$481,728), respectively.

The following table presents the movement of the provision for deposits to institutional cooperators:

		Reversal of provision for
	As of	credit losses on	Charge-off for	As of
	December 31,	deposits to	deposits to	December 31,
	2020	institutional cooperators	institutional cooperators	2021
	RMB	RMB	RMB	RMB
Deposits to institutional cooperators	10,318,117	(8,291,421)	—	2,026,696

		Provision for
	As of	credit losses on	Charge-off for	As of
	December 31,	deposits to	deposits to	December 31,
	2021	institutional cooperators	institutional cooperators	2022
	RMB	RMB	RMB	RMB
Deposits to institutional cooperators	2,026,696	1,295,879	—	3,322,575

		Provision for
	As of	credit losses on	Charge-off for	As of
	December 31,	deposits to	deposits to	December 31,
	2021	institutional cooperators	institutional cooperators	2022
	US$	US$	US$	US$
Deposits to institutional cooperators	293,843	187,885	—	481,728