Loans Receivable, Net

12 Months Ended

Dec. 31, 2023

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Loans Receivable, Net

6. LOANS RECEIVABLE, NET

The following table presents loan principal and accrued interests as of December 31, 2022 and 2023:

	As of December 31,
	2022			2023
	RMB			RMB
Loans receivable		2,750,808			3,675,492
Less: allowance for loan losses		(102,359	)		(154,420	)
Loans receivable, net		2,648,449			3,521,072

The following table presents the aging of loans as of December 31, 2022 and 2023:

	0-30 days past due		31-60 days past due		61-90 days past due		Over 90 days past due		Total amount past due		Current		Total loans
December 31, 2022 (RMB)		31,206		21,398		20,817		60,353		133,774		2,617,034		2,750,808
December 31, 2023 (RMB)		39,609		21,041		17,651		81,659		159,960		3,515,532		3,675,492

Movement of allowance for loan losses is as follows:

	Years ended December 31,
	2021			2022			2023
	RMB			RMB			RMB
Balance at beginning of year		(40,401	)		(65,117	)		(102,359	)
Provisions for loan losses		(97,658	)		(194,272	)		(234,599	)
Write-off		72,942			157,030			182,538
Balance at end of year		(65,117	)		(102,359	)		(154,420	)

Loans receivable is recorded as receivable, reduced by an allowance for estimated losses as of the balance sheet date. Interest on loans receivable is accrued and credited to revenue as earned. The Group does not record any interest revenue on an accrual basis for the loans that are past due for more than 90 days. As of December 31, 2022 and 2023, the nonaccrual loan receivable (those over 90 calendar days past due excluding loans that were over 180 days past due and therefore charged off) was RMB54 million and RMB69million, respectively and the net nonaccrual loan receivable after deducting the provision was RMB1.9 million and RMB1.7 million, respectively. Loans are returned to accrual status if they are brought to non-delinquent status or have performed in accordance with the contractual terms for a reasonable period of time and, in the Group’s judgment, will continue to make periodic principal and interest payments as scheduled. The Group determines a loan’s past due status by the number of days that have elapsed since a borrower has failed to make a contractual loan payment.

In the years ended December 31, 2021, 2022 and 2023, the Group recorded RMB98 million, RMB194 million and RMB235 million of provision net with recoveries to loans receivables, respectively. The allowance for loan losses is determined at a level the Group believes to be reasonable to absorb probable losses inherent in the portfolio as of each balance sheet date, primarily based on the Group’s historical delinquency rate, days past due and other risk characteristics on a portfolio basis.

The Group writes off the loans receivables that are past due for more than 180 days as they are not considered collectible based on the Group’s historical experiences.