Qudian Inc. Reports Third Quarter 2024 Unaudited Financial Results


(MENAFN- PR Newswire)

XIAMEN, China, Nov. 22, 2024 /PRNewswire/ -- Qudian Inc. ("Qudian" or "the Company" or "We") (NYSE: QD ), a consumer-oriented technology company in China, today announced its unaudited financial results for the quarter ended September 30, 2024.

Third Quarter 2024 Financial Highlights:

  • Total revenues were RMB55.0 million (US$7.8 million), compared to RMB29.6 million for the same period of last year
  • Net income attributable to
    Qudian's shareholders was RMB131.9 million (US$18.8 million), compared to net loss of RMB181.2 million for the same period of last year; net income per diluted ADS was RMB0.71 (US$0.10) for the third quarter of 2024
  • Non-GAAP net income attributable to
    Qudian's shareholders was RMB131.9 million (US$18.8 million), compared to Non-GAAP net loss of RMB179.8 million for the same period of last year. We exclude share-based compensation expenses from our non-GAAP measures. Non-GAAP net income per diluted ADS was RMB0.71 (US$0.10) for the third quarter of 2024

The Company's last-mile delivery business continued to make steady progress in 2024, which generated approximately RMB53.5 million in revenue in the third quarter of 2024, compared to RMB28.6 million for the third quarter of 2023. Moving forward, the Company expects to remain steadfast in its commitment to executing its business transition and simultaneously maintaining prudent cash management to safeguard its balance sheet.

Third Quarter Financial Results

Sales income and others increased by 85.9% to RMB55.0 million (US$7.8 million) from RMB29.6 million for the third quarter of 2023, which was primarily attributable to the increase in sales income generated from last-mile delivery business.

Total operating costs and expenses decreased to RMB122.0 million (US$17.4 million) from RMB141.1 million for the third quarter of 2023.

Cost of revenues increased by 5.7% to RMB48.9 million (US$7.0 million) from RMB46.3 million for the third quarter of 2023, primarily due to the increase in service cost related to last-mile delivery business.

General and administrative expenses decreased by 27.5% to RMB58.6 million (US$8.3 million) from RMB80.8 million for the third quarter of 2023, primarily due to the reduce in professional services fees after the Company completed research and consultation for last-mile delivery business in its early stage.

Research and development expenses increased by 29.3% to RMB14.6 million (US$2.1 million) from RMB11.3 million for the third quarter of 2023, primarily due to the increase in staff salaries as the Company continues to explore new business opportunities.

Loss from operations was RMB67.0 million (US$9.5 million), compared to RMB100.8 million for the third quarter of 2023.

Interest and investment income, net was RMB228.4 million (US$32.6 million), compared to interest and investment loss of RMB7.1 million for the third quarter of 2023, primarily attributable to the increase of income from investments in the third quarter of 2024.

Gain on derivative instrument was RMB30.2 million (US$4.3 million), compared to loss on derivative instrument of RMB108.0 million for the third quarter of 2023, mainly attributable to the increase in quoted price of the underlying equity securities relating to the derivative instruments we held.

Net income attributable to Qudian's shareholders
was RMB131.9 million (US$18.8 million), compared to net loss attributable to Qudian's shareholders of RMB181.2 million in the third quarter of 2023. Net income per diluted ADS was RMB0.71 (US$0.10).

Non-GAAP net income attributable to Qudian's shareholders was RMB131.9 million (US$18.8 million), compared to Non-GAAP net loss attributable to Qudian's shareholders of RMB179.8 in the third quarter of 2023. Non-GAAP net income per diluted ADS was RMB0.71 (US$0.10).

Cash Flow

As of September 30, 2024, the Company had cash and cash equivalents of RMB4,847.0 million (US$690.7 million) and restricted cash of RMB779.5 million (US$111.1 million). Restricted cash mainly represents security deposits held in designated bank accounts for the guarantee of short-term borrowings. Such restricted cash is not available to fund the general liquidity needs of the Company.

For the third quarter of 2024, net cash provided by operating activities was RMB679.9 million (US$96.9 million), mainly due to the net proceeds from redemption of time and structured deposit. Net cash used in investing activities was RMB541.8 million (US$77.2 million), mainly due to payments of deposit pledged as collateral for derivative instrument. Net cash provided by financing activities was RMB638.0 million (US$90.9 million), mainly due to the proceeds from short-term borrowings and partially offset by 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 launched its last-mile delivery services under the brand name of "Fast Horse." The business was initially launched on a trial basis and has gradually achieved meaningful scale in Australia during the second quarter of 2023. As of the date of this release, the Company's last-mile delivery service is available in Australia and New Zealand.

Update on Share Repurchase

Our Board approved a share repurchase program in March 2024 to purchase up to US$300 million worth of Class A ordinary shares or ADSs in the next 36 months starting from June 13, 2024. From the launch of the share repurchase program on June 13, 2024 to November 18, 2024, the Company has in aggregate purchased 12.1 million ADSs in the open market for a total amount of approximately US$25.3 million (an average price of $2.1 per ADS) pursuant to the share repurchase program.

As of November 18, 2024, the Company had in aggregate purchased 166.4 million ADSs for a total amount of approximately US$719.5 million (an average price of $4.3 per ADS).

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 .

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 RMB7.0176 to US$1.00, the noon buying rate in effect on September 30, 2024, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ 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: [email protected]

QUDIAN INC.

Unaudited Condensed Consolidated Statements of Operations










Three months ended September 30,

(In thousands except for number


2023


2024

of shares and per-share data)




(Unaudited)


(Unaudited)



RMB


RMB


US$








Revenues:







Sales income and others


29,598


55,015


7,840








Total revenues


29,598


55,015


7,840








Operating cost and expenses:







Cost of revenues


(46,279)


(48,913)


(6,970)

Sales and marketing


-


(2,123)


(303)

General and administrative


(80,796)


(58,580)


(8,348)

Research and development


(11,277)


(14,576)


(2,077)

Expected credit (loss)/reversal for receivables and other assets

(3,974)


2,798


399

Impairment gain/(loss) from other assets


1,258


(604)


(86)

Total operating cost and expenses


(141,068)


(121,998)


(17,385)

Other operating income


10,668


-


-








Loss from operations


(100,802)


(66,983)


(9,545)

Interest and investment (loss)/income, net


(7,099)


228,420


32,550

Gain/(Loss) from equity method investments


1,010


(1,390)


(198)

(Loss)/Gain on derivative instruments


(107,969)


30,246


4,310

Foreign exchange gain/(loss), net


274


(7,898)


(1,125)

Other income


10,694


2,030


289

Other expenses


(2,157)


(13,809)


(1,968)








Net (loss)/income before income taxes


(206,049)


170,616


24,313

Income tax expenses


24,821


(38,702)


(5,515)








Net (loss)/income


(181,228)


131,914


18,798








Net (loss)/income attributable to Qudian Inc.'s
shareholders


(181,228)


131,914


18,798















(Loss)/Earnings per share for Class A and Class B
ordinary shares:







Basic


(0.84)


0.73


0.10

Diluted


(0.84)


0.71


0.10








(Loss)/Earnings per ADS (1 Class A ordinary share
equals 1 ADSs):







Basic


(0.84)


0.73


0.10

Diluted


(0.84)


0.71


0.10








Weighted average number of Class A and Class B
ordinary shares outstanding:







Basic


214,666,223


180,111,125


180,111,125

Diluted


214,666,223


185,092,607


185,092,607








Other comprehensive loss:







Foreign currency translation adjustment


(1,471)


(60,991)


(8,691)








Total comprehensive (loss)/income


(182,699)


70,923


10,107








Total comprehensive (loss)/income attributable to
Qudian Inc.'s shareholders


(182,699)


70,923


10,107

QUDIAN INC.

Unaudited Condensed Consolidated Balance Sheets


















As of June 30,


As of September 30,

(In thousands except for number



2024


2024

of shares and per-share data)





(Unaudited)

(Unaudited)




RMB


RMB

US$

ASSETS:








Current assets:








Cash and cash equivalents



4,849,019


4,847,011

690,694


Restricted cash



51,984


779,529

111,082

Time and structured deposit



2,948,606


1,988,626

283,377


Short-term investments



1,091,177


485,814

69,228


Accounts receivables



39,418


38,492

5,485


Other current assets



615,275


2,104,961

299,955


Total current assets



9,595,479


10,244,433

1,459,821









Non-current assets:








Right-of-use assets



163,246


163,539

23,304


Investment in equity method investee



150,691


148,701

21,190


Long-term investments



210,448


83,987

11,968


Property and equipment, net



1,410,125


1,450,975

206,762


Intangible assets



2,764


1,668

238


Other non-current assets



469,476


459,272

65,446


Total non-current assets



2,406,750


2,308,142

328,908








TOTAL ASSETS



12,002,229


12,552,575

1,788,729















QUDIAN INC.

Unaudited Condensed Consolidated Balance Sheets (Continued)


















As of June 30,


As of September 30,

(In thousands except for number



2024


2024

of shares and per-share data)





(Unaudited)

(Unaudited)




RMB


RMB

US$








LIABILITIES AND SHAREHOLDERS' EQUITY








Current liabilities:








Short-term borrowings and interest payables



-


720,000

102,599


Short-term lease liabilities



19,789


19,853

2,829


Derivative instruments-liability



248,228


85,795

12,226


Accrued expenses and other current liabilities



202,856


188,209

26,820


Income tax payable



25,947


33,728

4,806


Total current liabilities



496,820


1,047,585

149,280









Non-current liabilities:






Long-term lease liabilities



51,432


51,661

7,362


Total non-current liabilities



51,432


51,661

7,362


Total liabilities



548,252


1,099,246

156,642
















Shareholders' equity:








Class A Ordinary shares



132


132

19


Class B Ordinary shares



44


44

6


Treasury shares



(1,196,636)


(1,263,641)

(180,067)


Additional paid-in capital



4,031,438


4,026,876

573,825


Accumulated other comprehensive loss



14,434


(46,556)

(6,634)


Retained earnings



8,604,565


8,736,474

1,244,938









Total shareholders' equity



11,453,977


11,453,329

1,632,087








TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY



12,002,229


12,552,575

1,788,729

QUDIAN INC.

Unaudited Reconciliation of GAAP And Non-GAAP Results




Three months ended September 30,




2023


2024

(In thousands except for number





(Unaudited)


(Unaudited)

of shares and per-share data)



RMB


RMB


US$

















Total net (loss)/income attributable to Qudian Inc.'s shareholders


(181,228)


131,914


18,798

Add: Share-based compensation expenses



1,432


-


-

Non-GAAP net (loss)/income attributable to Qudian Inc.'s shareholders


(179,796)


131,914


18,798









Non-GAAP net (loss)/income per share-basic



(0.84)


0.73


0.10

Non-GAAP net (loss)/income per share-diluted



(0.84)


0.71


0.10

Weighted average shares outstanding-basic



214,666,223


180,111,125


180,111,125

Weighted average shares outstanding-diluted



214,666,223


185,092,607


185,092,607

SOURCE Qudian Inc.

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