XIAMEN, China, Dec. 11, 2023 /PRNewswire/ — Qudian Inc. (“Qudian” or “the Company” or “We”) (NYSE: QD), a consumer-oriented technology company, today announced its unaudited financial results for the quarter ended September 30, 2023.
Third Quarter 2023 Financial Highlights:
Total revenues were RMB29.6 million (US$4.1 million), compared to RMB 110.2 million for the same period of last year Net loss attributable to Qudian’s shareholders was RMB181.2 million (US$24.8 million), compared to net loss of RMB648.0 million for the same period of last year; net loss per diluted ADS was RMB0.84 (US$0.12) for the third quarter of 2023 Non-GAAP net loss attributable to Qudian’s shareholders was RMB179.8 million (US$24.6 million), compared to net loss of RMB643.9 million for the same period of last year. We exclude share-based compensation expenses from our non-GAAP measures. Non-GAAP net loss per diluted ADS was RMB0.84 (US$0.11) for the third quarter of 2023
“We are delighted to report our advancements in the development of our smart last-mile logistics business, which recorded approximately RMB29 million of revenue in the third quarter,” said Mr. Min Luo, Founder, Chairman and Chief Executive Officer of Qudian. “We are optimistic about the potential of the e-commerce market across various regions globally. In line with our strategic vision, we are dedicated to expanding our investment in this sector. It is important to note that while pursuing growth, there is a possibility that we may incur additional operational losses. Nevertheless, we remain steadfast in our commitment to executing our business transition and simultaneously maintaining prudent cash management to safeguard our balance sheet.”
Third Quarter Financial Results
Total revenues were RMB29.6 million (US$4.1 million), representing a decrease of 73.1% from RMB110.2 million for the third quarter of 2022.
Financing income, penalty fee, loan facilitation income and other related income and transaction services fee and other related income decreased to nil as a result of the winding down of the loan book business.
Sales income and others decreased to RMB29.6 million (US$4.1 million), which was mostly attributable to incomes generated from last-mile delivery business, compared with RMB50.4 million for the third quarter of 2022, which was mainly attributable to sales income generated by QD Food. We have wound down the QD Food business in second quarter of 2023.
Total operating costs and expenses decreased to RMB141.1 million (US$19.3 million) from RMB 410.6 million for the third quarter of 2022.
Cost of revenues decreased by 80.4% to RMB46.3 million (US$6.3 million) from RMB236.2 million for the third quarter of 2022, primarily due to the winding down of the QD Food business and loan book business, partially offset by cost from last-mile delivery business.
Sales and marketing expenses decreased to nil as a result of the winding down of the loan book business and QD Food business.
General and administrative expenses increased by 28.1% to RMB80.8 million (US$11.1 million) from RMB63.1 million for the third quarter of 2022, primarily due to the increase in third-party professional services fees and travel expenses.
Research and development expenses decreased by 35.1% to RMB11.3 million (US$1.5 million) from RMB17.4 million for the third quarter of 2022, as a result of the decrease in staff head count, which led to a corresponding decrease in staff salaries and a decrease in third-party service fees.
Expected credit loss for receivables and other assets was RMB4.0 million (US$0.5 million) as compared to a gain of RMB63.6 million for the third quarter of 2022, primarily because we collected previously impaired bad debt related to the businesses the Company historically operated in the third quarter of 2022.
Loss from operations was RMB100.8 million (US$13.8 million), compared to RMB 299.8 million for the third quarter of 2022.
Interest and investment loss, net decreased by 90.4% to RMB7.1 million (US$1.0 million) from RMB73.6 million for the third quarter of 2022, mainly due to the decrease of loss from investments in the third quarter of 2023.
Loss on derivative instrument decreased by 69.8% to RMB108 million (US$14.8 million) from RMB358.2 million for the third quarter of 2022, primarily due to the decrease in quoted price of the underlying equity securities relating to the derivative instruments we held.
Net loss attributable to Qudian’s shareholders was RMB181.2 million (US$24.8 million). Net loss per diluted ADS was RMB0.84 (US$0.12).
Non-GAAP net loss attributable to Qudian’s shareholders was RMB179.8 million (US$24.6 million). Non-GAAP net loss per diluted ADS was RMB0.84 (US$0.11).
Cash Flow
As of September 30, 2023, the Company had cash and cash equivalents of RMB7,226.4 million (US$990.5 million) and restricted cash of RMB67.1 million (US$9.2 million).
For the third quarter of 2023, net cash used in operating activities was RMB151.2 million (US$20.7 million), mainly due to the purchase of operating assets, payments for labor-related costs and expenses, and partially offset by cash received from interest income from the Company’s short-term investments.Net cash provided by investing activities was RMB2,584.2 million (US$354.2 million), mainly due to the net proceeds from the redemption of short-term investments. Net cash used in financing activities was RMB215.4 million (US$29.5 million), mainly due to the repurchase of ordinary shares.
Last-mile Delivery Business
In response to the surging demand for cross-border e-commerce transactions, the Company has proactively sought innovative logistic services and solutions to meet global consumers’ expectations for swift and top-tier delivery services. In December 2022, the Company introduced a pioneering strategic venture into last-mile delivery services. The Company operates such business under the brand name of “Fast Horse.”
Update on Share Repurchase
As previously disclosed, the Company established a share repurchase program in June 2022, under which the Company may purchase up to US$200 million worth of its Class A ordinary shares and/or ADSs over a 24-month period. From the launch of the share repurchase program on June 13, 2022 to December 5, 2023, the Company has in aggregate purchased 44.9 million ADSs in the open market for a total amount of approximately US$68.2 million (an average price of $1.5 per ADS) pursuant to the share repurchase program.
About Qudian Inc.
Qudian Inc. (“Qudian”) is a consumer-oriented technology company. The Company historically focused on providing credit solutions to consumers. Qudian is exploring innovative logistics services to satisfy consumers’ demand for e-commerce transactions by leveraging its technology capabilities.
For more information, please visit http://ir.qudian.com.
Use of Non-GAAP Financial Measures
We use Non-GAAP net income/loss attributable to Qudian’s shareholders, a Non-GAAP financial measure, in evaluating our operating results and for financial and operational decision-making purposes. We believe that Non-GAAP net income/loss attributable to Qudian’s shareholders helps identify underlying trends in our business by excluding the impact of share-based compensation expenses, which are non-cash charges. We believe that Non-GAAP net income/loss attributable to Qudian’s shareholders provides useful information about our operating results, enhances the overall understanding of our past performance and future prospects and allows for greater visibility with respect to key metrics used by our management in its financial and operational decision-making.
Non-GAAP net income/loss attributable to Qudian’s shareholders is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. This Non-GAAP financial measure has limitations as an analytical tool, and when assessing our operating performance, cash flows or our liquidity, investors should not consider them in isolation, or as a substitute for net loss/income, cash flows provided by operating activities or other consolidated statements of operation and cash flow data prepared in accordance with U.S. GAAP.
We mitigate these limitations by reconciling the Non-GAAP financial measure to the most comparable U.S. GAAP performance measure, all of which should be considered when evaluating our performance.
For more information on this Non-GAAP financial measure, please see the table captioned “Unaudited Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this press release.
Exchange Rate Information
This announcement contains translations of certain RMB amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB7.2960 to US$1.00, the noon buying rate in effect on September 29, 2023, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all.
Statement Regarding Preliminary Unaudited Financial Information
The unaudited financial information set out in this earnings release is preliminary and subject to potential adjustments. Adjustments to the consolidated financial statements may be identified when audit work has been performed for the Company’s year-end audit, which could result in significant differences from this preliminary unaudited financial information.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the expectation of its collection efficiency and delinquency, contain forward-looking statements. Qudian may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Qudian’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Qudian’s goal and strategies; Qudian’s expansion plans; Qudian’s future business development, financial condition and results of operations; Qudian’s expectations regarding demand for, and market acceptance of, its products; Qudian’s expectations regarding keeping and strengthening its relationships with customers, business partners and other parties it collaborates with; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Qudian’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Qudian does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
For investor and media inquiries, please contact:
In China:
Qudian Inc.
Tel: +86-592-596-8208
E-mail: ir@qudian.com
QUDIAN INC.
Unaudited Condensed Consolidated Statements of Operations
Three months ended September 30,
(In thousands except for number
2022
2023
of shares and per-share data)
(Unaudited)
(Unaudited)
(Unaudited)
RMB
RMB
US$
Revenues:
Financing income
35,308
–
–
Sales income and others
50,417
29,598
4,057
Penalty fee
14,872
–
–
Loan facilitation income and other related income
6,806
–
–
Transaction services fee and other related income
2,755
–
–
Total revenues
110,158
29,598
4,057
Operating cost and expenses:
Cost of revenues
(236,226)
(46,279)
(6,343)
Sales and marketing
(176,797)
–
–
General and administrative
(63,121)
(80,796)
(11,074)
Research and development
(17,387)
(11,277)
(1,546)
Changes in guarantee liabilities and risk assurance liabilities(1)
25,177
–
–
Expected credit gain/(loss) for receivables and other assets
63,630
(3,974)
(545)
Impairment (loss)/gain from other assets
(5,913)
1,258
172
Total operating cost and expenses
(410,637)
(141,068)
(19,336)
Other operating income
687
10,668
1,462
Loss from operations
(299,792)
(100,802)
(13,817)
Interest and investment loss, net
(73,610)
(7,099)
(973)
(Loss)/Gain from equity method investments
(44)
1,010
138
Loss on derivative instruments
(358,165)
(107,969)
(14,798)
Foreign exchange gain, net
1,006
274
38
Other income
9,931
10,694
1,466
Other expenses
(9,587)
(2,157)
(296)
Net loss before income taxes
(730,261)
(206,049)
(28,242)
Income tax expenses
82,309
24,821
3,402
Net loss
(647,952)
(181,228)
(24,840)
Less: net loss attributable to non-controlling
interest shareholders
–
–
–
Net loss attributable to Qudian Inc.’s
shareholders
(647,952)
(181,228)
(24,840)
Loss per share for Class A and Class B ordinary
shares:
Basic
(2.64)
(0.84)
(0.12)
Diluted
(2.64)
(0.84)
(0.12)
Loss per ADS (1 Class A ordinary share equals 1
ADSs):
Basic
(2.64)
(0.84)
(0.12)
Diluted
(2.64)
(0.84)
(0.12)
Weighted average number of Class A and Class B
ordinary shares outstanding:
Basic
245,215,663
214,666,223
214,666,223
Diluted
245,215,663
214,666,223
214,666,223
Other comprehensive gain:
Foreign currency translation adjustment
30,657
(1,471)
(202)
Total comprehensive loss
(617,295)
(182,699)
(25,042)
Less: total comprehensive loss attributable to non-
controlling interest shareholders
–
–
–
Total comprehensive loss attributable to
Qudian Inc.’s shareholders
(617,295)
(182,699)
(25,042)
Note：
(1):The amount includes the change in fair value of the guarantee liabilities accounted in accordance with ASC 815,”Derivative”, and the change in
risk assurance liabilities accounted in accordance with ASC 450, “Contingencies” and ASC 460, “Guarantees”.
QUDIAN INC.
Unaudited Condensed Consolidated Balance Sheets
As of June 30,
As of September 30,
(In thousands except for number
2023
2023
of shares and per-share data)
(Unaudited)
(Unaudited)
(Unaudited)
RMB
RMB
US$
ASSETS:
Current assets:
Cash and cash equivalents
5,013,109
7,226,438
990,466
Restricted cash
63,407
67,091
9,196
Short-term investments
3,777,220
2,468,954
338,398
Accounts receivables
–
25,794
3,535
Other current assets
2,078,060
677,612
92,874
Total current assets
10,931,796
10,465,889
1,434,469
Non-current assets:
Right-of-use assets
104,156
175,231
24,017
Investment in equity method investee
137,965
139,092
19,064
Long-term investments
206,857
206,857
28,352
Property and equipment, net
1,069,145
1,152,841
158,010
Intangible assets
3,452
3,287
451
Other non-current assets
450,923
511,646
70,127
Total non-current assets
1,972,498
2,188,954
300,021
TOTAL ASSETS
12,904,294
12,654,843
1,734,490
QUDIAN INC.
Unaudited Condensed Consolidated Balance Sheets (Continued)
As of June 30,
As of September 30,
(In thousands except for number
2023
2023
of shares and per-share data)
(Unaudited)
(Unaudited)
(Unaudited)
RMB
RMB
US$
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term lease liabilities
6,766
30,285
4,151
Derivative instruments-liability
179,444
281,478
38,580
Accrued expenses and other current liabilities
204,898
211,106
28,934
Income tax payable
164,173
131,691
18,050
Total current liabilities
555,281
654,560
89,715
Non-current liabilities:
Deferred tax liabilities, net
23
–
–
Long-term lease liabilities
2,603
50,612
6,936
Total non-current liabilities
2,626
50,612
6,936
Total liabilities
557,907
705,172
96,651
Shareholders’ equity:
Class A Ordinary shares
132
132
19
Class B Ordinary shares
44
44
6
Treasury shares
(580,653)
(792,839)
(108,668)
Additional paid-in capital
4,034,824
4,032,993
552,768
Accumulated other comprehensive loss
15,351
13,880
1,902
Retained earnings
8,876,689
8,695,461
1,191,812
Total shareholders’ equity
12,346,387
11,949,671
1,637,839
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
12,904,294
12,654,843
1,734,490
QUDIAN INC.
Unaudited Reconciliation of GAAP And Non-GAAP Results
Three months ended September 30,
2022
2023
(In thousands except for number
(Unaudited)
(Unaudited)
(Unaudited)
of shares and per-share data)
RMB
RMB
US$
Total net loss attributable to Qudian Inc.’s shareholders
(647,952)
(181,228)
(24,840)
Add: Share-based compensation expenses
4,284
1,432
196
Less: Convertible bonds buyback income
188
–
–
Non-GAAP net loss attributable to Qudian Inc.’s shareholders
(643,856)
(179,796)
(24,644)
Non-GAAP net loss per share—basic
(2.63)
(0.84)
(0.11)
Non-GAAP net loss per share—diluted
(2.63)
(0.84)
(0.11)
Weighted average shares outstanding—basic
245,215,663
214,666,223
214,666,223
Weighted average shares outstanding—diluted
245,215,663
214,666,223
214,666,223