| Guarantee liabilities |
12. Guarantee liabilities The Group recognized both a stand-ready guarantee liability as “deferred guarantee income“ under ASC Topic 460 with an associated financial assets receivable, and a contingent guarantee liability under CECL model. Deferred guarantee income The following table sets forth the activities of the Group’s obligations associated with the deferred guarantee income, originated from guarantee services commenced for the years ended December 31, 2024 and 2025. | | | | | | | | | | | As of | | Fair value | | | | As of | | | January 1, | | of deferred guarantee income | | Release of | | December 31, | | | 2023 | | at inception of new loans | | deferred guarantee income | | 2023 | | | RMB | | RMB | | RMB | | RMB | Xiaoying Credit Loan | | — | | 72,160,875 | | (25,563,732) | | 46,597,143 |
| | | | | | | | | | | As of | | Fair value | | | | As of | | | January 1, | | of deferred guarantee income | | Release of | | December 31, | | | 2024 | | at inception of new loans | | deferred guarantee income | | 2024 | | | RMB | | RMB | | RMB | | RMB | Xiaoying Credit Loan | | 46,597,143 | | 332,919,374 | | (214,792,005) | | 164,724,512 |
| | | | | | | | | | | As of | | Fair value | | | | As of | | | January 1, | | of deferred guarantee income | | Release of | | December 31, | | | 2025 | | at inception of new loans | | deferred guarantee income | | 2025 | | | RMB | | RMB | | RMB | | RMB | Xiaoying Credit Loan | | 164,724,512 | | 981,672,870 | | (678,767,939) | | 467,629,443 |
| | | | | | | | | | | As of | | Fair value | | | | As of | | | January 1, | | of deferred guarantee income | | Release of | | December 31, | | | 2025 | | at inception of new loans | | deferred guarantee income | | 2025 | | | US$ | | US$ | | US$ | | US$ | Xiaoying Credit Loan | | 23,555,292 | | 140,377,353 | | (97,062,524) | | 66,870,121 |
Contingent guarantee liabilities The movement of contingent guarantee liabilities originated from guarantee services for the years ended December 31, 2023, 2024 and 2025 are as follows: | | | | | | | | | | | | | | | | | | | | As of | | | | Provision for | | As of | | | January 1, | | | | contingent | | December 31, | | | 2023 | | Net payout(1) | | liability | | 2023 | | | RMB | | RMB | | RMB | | RMB | Xiaoying Credit Loan | | — | | (5,613,471) | | 67,519,980 | | 61,906,509 |
| | | | | | | | | | | | | | | | | | | | As of | | | | Provision for | | As of | | | January 1, | | | | contingent | | December 31, | | | 2024 | | Net payout(1) | | liability | | 2024 | | | RMB | | RMB | | RMB | | RMB | Xiaoying Credit Loan | | 61,906,509 | | (116,003,939) | | 241,738,132 | | 187,640,702 |
| | | | | | | | | | | | | | | | | | | | As of | | | | Provision for | | As of | | | January 1, | | | | contingent | | December 31, | | | 2025 | | Net payout(1) | | liability | | 2025 | | | RMB | | RMB | | RMB | | RMB | Xiaoying Credit Loan | | 187,640,702 | | (440,606,972) | | 1,001,272,880 | | 748,306,610 |
| | | | | | | | | | | | | | | | | | | | As of | | | | Provision for | | As of | | | January 1, | | | | contingent | | December 31, | | | 2025 | | Net payout (1) | | liability | | 2025 | | | US$ | | US$ | | US$ | | US$ | Xiaoying Credit Loan | | 26,832,264 | | (63,005,960) | | 143,180,118 | | 107,006,422 |
(1)Net payouts represent the amount paid to institutional funding partners upon borrowers’ default net of the amount subsequently recovered from the borrower. The maximum potential undiscounted future payment was RMB2,572,977,752 and RMB6,743,554,847 (US$964,315,518) as of December 31, 2024 and 2025, respectively.
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