Financing Receivables, Net

12 Months Ended

Dec. 31, 2023

Financing Receivable, after Allowance for Credit Loss [Abstract]

3. FINANCING RECEIVABLES, NET

Financing receivables, net as of December 31, 2022 and 2023 consisted of the followings:


	As of December 31,
	2022			2023
	(RMB in thousands)
Short-term:
Short-term financing receivables		6,478,949			3,933,553
Accrued interest receivable		103,158			69,041
Allowance for credit losses		(184,187	)		(58,594	)
Total short-term financing receivables, net		6,397,920			3,944,000
Long-term:
Long-term financing receivables		473,545			203,601
Allowance for credit losses		(13,220	)		(3,087	)
Total long-term financing receivables, net		460,325			200,514

These balances represent short‑term and long‑term financing receivables generated from loans transacted on the Group’s Platform and APP with an original term generally up to three years and do not have collateral.

As of December 31, 2022 and 2023, loans that were charged-off in accordance with the Group’s standard charge-off policy were RMB4,162 million and RMB4,925 million, respectively. The Group determined it was probable that the Group will be unable to collect the unpaid principal amounts on those loans.

The following table summarizes the balances of financing receivables by due date as of December 31, 2022 and 2023:


	As of December 31,
	2022		2023
	(RMB in thousands)
Due in months
0 - 12		6,478,949		3,933,553
13 - 24		370,652		180,719
25 - 36		59,217		46
Thereafter		43,676		22,836
Total financing receivables (excluding accrued interest receivable)		6,952,494		4,137,154

The activities in the allowance for credit losses of financing receivables for the years ended December 31, 2021, 2022 and 2023, respectively, consisted of the following:


	For the year ended December 31,
	2021			2022			2023
	(RMB in thousands)
Beginning balances		(529,162	)		(328,231	)		(197,407	)
Provision for credit losses		(401,104	)		(437,477	)		(627,061	)
Charge-offs		912,260			791,046			939,992
Recoveries from prior charge-offs		(310,225	)		(222,745	)		(177,204	)
Ending balances		(328,231	)		(197,407	)		(61,681	)

Aging analysis of past due financing receivables as of December 31, 2022 and 2023 are as follows:


RMB in thousands	1 - 29 Days Past Due		30 - 59 Days Past Due		60 - 89 Days Past Due		90 - 179 Days Past Due		180 Days or Greater Past Due		Total Past Due		Current		Total
December 31, 2022		151,784		98,289		81,652		209,738		—		541,463		6,411,031		6,952,494
December 31, 2023		94,448		76,449		65,816		183,054		—		419,767		3,717,387		4,137,154

Financing receivables amounting to RMB210 million and RMB183 million as of December 31, 2022 and 2023, respectively, were in non‑accrual status. Financing income for non‑accrual financing receivables is recognized on a cash basis. Cash receipt of non‑accrual financing receivables would be first applied to any unpaid principal, late payment fees, if any, before recognizing financing income. For the years ended December 31, 2021, 2022 and 2023, interest and late payment fees earned from non‑accrual financing receivables were RMB136 million, RMB107 million and RMB74.1 million, respectively.

As of December 31, 2022 and 2023, financing receivables amounting to RMB734 million and RMB190 million have been pledged as collaterals pursuant to investment agreements with certain Institutional Funding Partners (Note 10).

Credit Quality Indicators

The following table provides information on delinquency, which is the primary credit quality indicator for financing receivables. The amortized cost of loans was presented by year of origination for five origination years and beyond, as of December 31, 2023:


	Loans originated in
RMB in thousands	1 - 29 Days Past Due		30 - 59 Days Past Due		60 - 89 Days Past Due		90 - 179 Days Past Due		180 Days or Greater Past Due		Total Past Due		Current		Total
2019 and before		—		—		—		—		—		—		—		—
2020		2		5		7		36		—		50		8		58
2021		393		269		272		1,255		—		2,189		10,655		12,844
2022		9,838		8,031		8,450		34,667		—		60,986		251,940		312,926
2023		84,215		68,144		57,087		147,096		—		356,542		3,454,784		3,811,326
Total		94,448		76,449		65,816		183,054		—		419,767		3,717,387		4,137,154