Qudian Inc. Reports First Quarter 2019 Unaudited Financial Results
05/20/2019
First Quarter 2019 Operational Highlights:
- Total outstanding loan balance[1]as of
March 31, 2019 increased by 91.2% to RMB24.6 billion fromMarch 31, 2018 - Total number of registered users as of March 31, 2019 reached 73.3 million, representing an increase of 12.1% from
March 31, 2018 - Number of outstanding borrowers[2]as of
March 31, 2019 increased by 2.7% to 5.4 million from 5.3 million as ofDecember 31, 2018 - Cumulative number of borrowers[3]as of
March 31, 2019 increased by 14.6% to 17.2 million fromMarch 31, 2018 - New active borrowers[4]for this quarter increased by 16.6% to 523,979, from 449,480 for the fourth quarter of 2018 as a result of successful activation of
Qudian's user base - Weighted average loan tenure was 9.9 months for this quarter, compared with 10.4 months for the fourth quarter of 2018
- Cumulative number of users for traffic referral service was 2.5 million; Cumulative number of users for transaction referral service was 136,599 as of
March 31, 2019
[1] Includes off and on balance sheet loans directly or indirectly funded by our funding partners but does not include auto loans from Dabai Auto business. [2] Outstanding borrowers are borrowers who have outstanding loans as of a particular date. [3] Cumulative number of borrowers are borrowers who have drawn down credit on or prior to a particular date, on a cumulative basis. [4] Active borrowers are borrowers who have drawn down credit in the specified period. |
First Quarter 2019 Financial Highlights:
- Total revenues increased by 22.2% year-on-year to
RMB2,096.9 million (US$312.4 million ) - Loan facilitation income and others substantially increased year-on-year to
RMB644.4 million (US$96.0 million ) fromRMB277.6 million for the same period last year - Referral service fee, which relates to traffic referral service and transaction referral service provided by our open platform, substantially increased to
RMB158.7 million (US$23.7 million ) from nil for the same period last year - Financing income increased by 30.1% to
RMB1,010.8 million (US$150.6 million ) fromRMB776.7 million for the same period last year as a result of an increase in average on-balance sheet loan balance - Net income increased by 200.7% year-on-year to
RMB949.6 million (US$141.5 million ), orRMB3.19 (US$0.48) per diluted ADS - Non-GAAP net income[5] increased by 187.9% year-on-year to
RMB974.3 million (US$145.2 million ), orRMB3.27 (US$0.49) per diluted ADS
[5] 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. |
"We're pleased to report another record quarter," said Mr.
"Supported by overwhelming user demand, we successfully diversified our institutional funding base and expect to secure sufficient funding for the year. Meanwhile, with our massive transactional and behavioral data accumulated through over
"Beyond income from our loan book business, our open-platform initiative showed encouraging developments in terms of revenue contribution and funding partnerships. As of end of the first quarter, we accumulatively referred over 136 thousand users to our open-platform partners for transaction referral service. As of today, two partners have signed up for our transaction referral service. Looking ahead, we will continue to invest in our open platform and expand partnerships in funding and user engagement, fueling growth above and beyond the capacity of our balance sheet. Given the exciting and visible growth throughout these core business lines, we will stay focused on our technology-based consumption credit services and have discontinued efforts outside of consumption credit opportunities, including winding down of the Dabai auto business beginning in the second quarter of 2019."
"Coming off a record year of 2018, we started 2019 with another new milestone by achieving record Non-GAAP net income of
"Our open-platform initiative introduced last year is already showing strong profit potential, generating
"With solid first quarter results and ample external funding, we remain confident in achieving our guidance announced in
First Quarter Financial Results
Total revenues were
Financing income totaled
Loan facilitation income and others increased to
Referral service fee substantially increased to
Sales income decreased to
Sales commission fee increased by 22.0% to
Total operating costs and expenses decreased by 29.4% to
Cost of revenues decreased by 62.1% to
Sales and marketing expenses decreased by 35.0% to
General and administrative expenses increased by 48.1% to
Research and development expenses increased by 45.9% to
Provision for receivables decreased by 12.0% to RMB390.4 million (
As of March 31, 2019, the total balance of outstanding principal and financing service fee receivables for on-balance sheet transactions for which any installment payment was more than 30 calendar days past due was RMB571.6 million (
Due to the increase in loan tenure, we believe M1+ delinquency rate was not fully representative of loan performance and therefore, we added actual charge-off rates to supplement the disclosure. We will continue to evaluate the disclosure of operating metrics that meaningfully represent our loan performances.
The following chart displays "vintage charge-off rate" for the quarters indicated. Vintage charge-off rate refers to, with respect to on- and off-balance sheet loans originated during a specified time period, the total outstanding principal balance of the loans that are charged off during a specified period, divided by the total initial principal of the loans originated in such vintage:
Click here to view the chart.
The following chart displays the historical lifetime cumulative M1+ delinquency rate by vintage from the second month after credit drawdowns up to the twelfth month after such transactions for all transactions for each of the quarters indicated, 2019, before charge-offs:
Click here to view the chart.
Income from operations increased by 248.7% to
Net income attributable to Qudian's shareholders increased by 200.7% to RMB949.6 million (
Non-GAAP Net income attributable to
Cash Flow
As of
As of
Update on Share Repurchase
On
Outlook
The Company reaffirms its total Non-GAAP net income for the full year of 2019 to exceed
The above outlook is based on current market conditions and reflects the Company's preliminary expectations as to market conditions, its regulatory and operating environment, as well as customer demand, all of which are subject to change.
Conference Call
The Company's management will host an earnings conference call on
Dial-in details for the earnings conference call are as follows:
U.S.: |
+1-866-519-4004 (toll-free) / +1-845-675-0437 |
International: |
+65-6713-5090 |
Hong Kong: |
800-906-601 (toll-free) / +852-3018-6771 |
Mainland China: |
400-620-8038 / 800-819-0121 |
Please dial in 15 minutes before the call is scheduled to begin and provide the passcode to join the call. The passcode is "Qudian Conference Call". Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at http://ir.qudian.com.
A replay of the conference call will be accessible approximately one hour after the conclusion of the live call until
U.S.: |
+1-855-452-5696 (toll-free) / +1-646-254-3697 |
International: |
+61-28199-0299 |
Hong Kong: |
800-963-117 (toll-free) / +852-3051-2780 |
Mainland China: |
400-632-2162 (toll-free) / 800-870-0205 (toll-free) |
Passcode: |
5789537 |
About
For more information, please visit http://ir.qudian.com.
Use of Non-GAAP Financial Measures
We use adjusted net income, a Non-GAAP financial measure, in evaluating our operating results and for financial and operational decision-making purposes. We believe that adjusted net income helps identify underlying trends in our business by excluding the impact of share-based compensation expenses, which are non-cash charges. We believe that adjusted net income 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.
Adjusted net income is not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. This Non-GAAP financial measure has limitations as analytical tools, 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 RMB6.7112 to US$1.00, the noon buying rate in effect on March 31, 2019 in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ 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.
For investor and media inquiries, please contact:
Tel: +86-592-591-1580
E-mail: ir@qudian.com
Tel: +86-135-0116-6560
E-mail: qudian@thefootegroup.com
QUDIAN INC. |
||||||
Unaudited Condensed Consolidated Statements of Operations |
||||||
Three months ended March 31, |
||||||
(In thousands except for number |
2018 |
2019 |
||||
of shares and per-share data) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
|||
RMB |
RMB |
US$ |
||||
Revenues: |
||||||
Financing income |
776,747 |
1,010,758 |
150,608 |
|||
Sales commission fee |
111,379 |
135,854 |
20,243 |
|||
Sales income |
546,034 |
136,971 |
20,409 |
|||
Penalty fee |
4,886 |
10,140 |
1,511 |
|||
Loan facilitation income and others |
277,577 |
644,412 |
96,020 |
|||
Referral service fee |
- |
158,724 |
23,651 |
|||
Total revenues |
1,716,622 |
2,096,859 |
312,442 |
|||
Operating cost and expenses: |
||||||
Cost of revenues |
(686,404) |
(260,485) |
(38,813) |
|||
Sales and marketing |
(122,945) |
(79,857) |
(11,899) |
|||
General and administrative |
(55,990) |
(82,896) |
(12,352) |
|||
Research and development |
(43,521) |
(63,508) |
(9,463) |
|||
Loss of guarantee liability |
(43,187) |
(108,581) |
(16,179) |
|||
Provision for receivables |
(443,615) |
(390,391) |
(58,170) |
|||
Total operating cost and expenses |
(1,395,661) |
(985,718) |
(146,876) |
|||
Other operating income |
5,457 |
26,995 |
4,022 |
|||
Income from operations |
326,418 |
1,138,136 |
169,588 |
|||
Interest and investment income, net |
19,536 |
2,107 |
314 |
|||
Foreign exchange gain/(loss), net |
(21,950) |
7,921 |
1,180 |
|||
Other income |
672 |
1,227 |
183 |
|||
Other expense |
(168) |
(1,526) |
(227) |
|||
Net income before income taxes |
324,508 |
1,147,865 |
171,038 |
|||
Income tax expenses |
(8,692) |
(198,243) |
(29,539) |
|||
Net income |
315,816 |
949,622 |
141,499 |
|||
Net income attributable to Qudian |
315,816 |
949,622 |
141,499 |
|||
Earnings per share for Class A and Class B |
||||||
Basic |
0.97 |
3.20 |
0.48 |
|||
Diluted |
0.95 |
3.19 |
0.48 |
|||
Earnings per ADS (1 Class A ordinary share |
||||||
Basic |
0.97 |
3.20 |
0.48 |
|||
Diluted |
0.95 |
3.19 |
0.48 |
|||
Weighted average number of Class A and Class |
||||||
Basic |
326,372,211 |
296,766,678 |
296,766,678 |
|||
Diluted |
331,424,416 |
297,726,986 |
297,726,986 |
|||
Other comprehensive loss: |
||||||
Foreign currency translation adjustment |
(142,548) |
(18,809) |
(2,803) |
|||
Total comprehensive income |
173,268 |
930,813 |
138,696 |
|||
Total comprehensive income attributable to |
173,268 |
930,813 |
138,696 |
QUDIAN INC. |
||||||
Unaudited Condensed Consolidated Balance Sheets |
||||||
As of December 31, |
As of March 31, |
|||||
(In thousands except for number |
2018 |
2019 |
||||
of shares and per share data) |
(Unaudited) |
(Unaudited) |
||||
RMB |
RMB |
US$ |
||||
ASSETS: |
||||||
Current assets: |
||||||
Cash and cash equivalents |
2,501,188 |
1,931,430 |
287,792 |
|||
Restricted cash |
339,827 |
1,138,364 |
169,621 |
|||
Short-term investments |
- |
30,000 |
4,470 |
|||
Short-term loan principal and financing service fee |
8,417,821 |
10,010,611 |
1,491,628 |
|||
Short-term finance lease receivables |
508,647 |
492,132 |
73,330 |
|||
Amounts due from related parties |
2 |
44 |
7 |
|||
Short-term contract assets |
903,436 |
1,338,853 |
199,495 |
|||
Other current assets |
1,818,222 |
1,760,532 |
262,326 |
|||
Total current assets |
14,489,144 |
16,701,966 |
2,488,669 |
|||
Non-current assets: |
||||||
Long-term loan principal and financing service fee |
665,653 |
388,200 |
57,844 |
|||
Long-term finance lease receivables |
649,243 |
569,629 |
84,877 |
|||
Operating lease right-of-use assets |
- |
149,673 |
22,302 |
|||
Investment in equity method investee |
33,199 |
30,635 |
4,565 |
|||
Property and equipment, net |
26,224 |
40,842 |
6,086 |
|||
Intangible assets |
7,264 |
7,056 |
1,051 |
|||
Land use right |
106,545 |
- |
- |
|||
Long-term contract assets |
15,597 |
22,848 |
3,405 |
|||
Deferred tax assets |
243,413 |
312,911 |
46,625 |
|||
Other non-current assets |
17,093 |
23,199 |
3,457 |
|||
Total non-current assets |
1,764,231 |
1,544,993 |
230,212 |
|||
TOTAL ASSETS |
16,253,375 |
18,246,959 |
2,718,881 |
|||
QUDIAN INC. |
||||||
Unaudited Condensed Consolidated Balance Sheets |
||||||
As of December 31, |
As of March 31, |
|||||
(In thousands except for number |
2018 |
2019 |
||||
of shares and per share data) |
(Unaudited) |
(Unaudited) |
||||
RMB |
RMB |
US$ |
||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||
Current liabilities: |
||||||
Short-term borrowings and interest payables |
3,860,441 |
4,201,713 |
626,075 |
|||
Short-term lease liabilities |
- |
18,202 |
2,712 |
|||
Accrued expenses and other current liabilities |
507,486 |
515,414 |
76,799 |
|||
Guarantee liabilities |
302,605 |
566,630 |
84,431 |
|||
Income tax payable |
348,830 |
445,261 |
66,346 |
|||
Total current liabilities |
5,019,362 |
5,747,220 |
856,363 |
|||
Non-current liabilities: |
||||||
Defered tax liabilities |
- |
102,968 |
15,343 |
|||
Long-term lease liabilities |
- |
23,188 |
3,455 |
|||
Long-term borrowings and interest payables |
413,400 |
597,500 |
89,030 |
|||
Total non-current liabilities |
413,400 |
723,656 |
107,828 |
|||
Total liabilities |
5,432,762 |
6,470,876 |
964,191 |
|||
Commitments and contingencies |
||||||
Shareholders' equity: |
||||||
Class A Ordinary shares |
161 |
162 |
24 |
|||
Class B Ordinary shares |
44 |
44 |
6 |
|||
Treasury shares |
(362,130) |
(362,130) |
(53,959) |
|||
Additional paid-in capital |
6,160,446 |
6,185,101 |
921,609 |
|||
Accumulated other comprehensive loss |
(44,858) |
(63,667) |
(9,487) |
|||
Retained earnings |
5,066,951 |
6,016,573 |
896,497 |
|||
Total shareholders' equity |
10,820,613 |
11,776,083 |
1,754,690 |
|||
TOTAL LIABILITIES AND SHAREHOLDERS' |
16,253,375 |
18,246,959 |
2,718,881 |
QUDIAN INC. |
||||||
Unaudited Reconciliation of GAAP And Non-GAAP Results |
||||||
Three months ended March 31, |
||||||
2018 |
2019 |
|||||
(In thousands except for number |
(Unaudited) |
(Unaudited) |
(Unaudited) |
|||
of shares and per share data) |
RMB |
RMB |
US$ |
|||
Total net income attributable to Qudian Inc.'s shareholders |
315,816 |
949,622 |
141,499 |
|||
Add: Share-based compensation expenses |
22,651 |
24,656 |
3,674 |
|||
Non-GAAP net income attributable to Qudian Inc.'s shareholders |
338,467 |
974,278 |
145,173 |
|||
Non-GAAP net income per share—basic |
1.04 |
3.28 |
0.49 |
|||
Non-GAAP net income per share—diluted |
1.02 |
3.27 |
0.49 |
|||
Weighted average shares outstanding—basic |
326,372,211 |
296,766,678 |
296,766,678 |
|||
Weighted average shares outstanding—diluted |
331,424,416 |
297,726,986 |
297,726,986 |
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