Qudian Inc. Reports Fourth Quarter and Full Year 2018 Unaudited Financial Results
03/18/2019
Fourth Quarter 2018 Operational Highlights:
- Total outstanding loan balance[1] as of
December 31, 2018 increased by 69.9% to RMB19.0 billion fromDecember 31, 2017 - Total number of registered users as of December 31, 2018 reached 71.8 million, representing an increase of 14.9% from
December 31, 2017 - Number of outstanding borrowers[2] as of
December 31, 2018 increased by 7.0% to 5.3 million from 4.9 million as ofSeptember 30, 2018 - Cumulative number of borrowers[3] as of
December 31, 2018 increased by 15.1% to 16.7 million fromDecember 31, 2017 ; New active borrowers[4] for this quarter was 449,480 - M1+ delinquency rate by vintage[5] for loans generated since
January 1, 2018 slightly increased to 2.5% through the end of 2018, as a result of longer loan tenure
[1] Includes off + on balance sheet loans directly funded by our funding partners and doesn't 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. |
[5] M1+ delinquency rate by vintage is defined as the total balance of outstanding principal of a vintage for which any installment payment is over 30 calendar days past due as of a particular date (adjusted to reflect total amount of recovered past due payments for principal and without taking into account charge-offs), divided by the total initial principal in such vintage. |
Fourth Quarter 2018 Financial Highlights:
- Total revenues increased by 20.9% year-on-year to
RMB1,803.2 million (US$262.3 million )
- Loan facilitation income and others substantially increased year-on-year toRMB579.1 million (US$84.2 million ) fromRMB149.5 million for the same period last year
- Financing income decreased by 14.9% toRMB903.1 million (US$131.4 million ) from the same period last year as a result of a decrease in average on-balance sheet loan balance - Net income increased by 42.1% year-on-year to
RMB767.5 million (US$111.6 million ), orRMB2.52 (US$0.37) per diluted ADS - Non-GAAP net income[6] increased by 39.2% year-on-year to
RMB778.8 million (US$113.3 million ), orRMB2.56 (US$0.37) per diluted ADS - Our underlying profit was
RMB850.2 million (US$123.7 million ), excluding a foreign exchange loss ofRMB34.4 million (US$5.0 million ) and a specific charge ofRMB37.0 million (US$5.4 million ) incurred by scaling down Dabai Auto business
Full year 2018 Financial Highlights:
- Total revenues increased by 61.1% year-on-year to
RMB 7,692.3 million (US$ 1,118.8 million)
- Loan facilitation income and others substantially increased year-on-year toRMB1,646.8 million (US$239.5 million ) fromRMB302.0 million
- Financing income wasRMB3,535.3 million (US$514.2 million ), flat from 2017 - Net income increased by 15.1% year-on-year to
RMB2,491.3 million (US$362.3 million ), orRMB7.74 (US$1.13) per diluted ADS - Non-GAAP net income[6] increased by 14.4% year-on-year to
RMB2,549.3 million (US$370.8 million ), orRMB7.92 (US$1.15) per diluted ADS - Our underlying profit was
RMB2,677.1 million (US$389.4 million ), excluding a foreign exchange loss ofRMB90.8 million (US$13.2 million ) and a specific charge ofRMB37.0 million (US$5.4 million ) incurred by scaling down Dabai Auto business
[6] 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 were pleased to complete 2018 with strong fourth quarter results as we delivered on our full-year earnings target established at the beginning of 2018," said Mr.
"Throughout 2018, as a result of our commitment to delivering risk adjusted returns and an overall conservative risk management approach, our asset quality was maintained within our target levels. On regulatory risk, there were various new regulations and guidelines issued in 2018 for the sector. Yet,
"2018 marked another milestone for us as we achieved our guidance while strictly operating under regulatory compliant annual interest rate. Excluding non-recurring costs and charges, we achieved a record annual underlying profit of
Mr. Yeung continued, "For the quarter, our outstanding borrower base reached 5.3 million following the termination of paid marketing on Alipay, which proved our capability in sustaining user growth without reliance on expensive marketing. The termination resulted in a 49.4% decrease in sales and marketing expenses for our core consumption finance businesses in 2018. Looking into 2019, the outstanding loan balance that we collaborate with financial institutions has grown to
"
Fourth Quarter Financial Results
Total revenues were
Financing income totaled
Loan facilitation income and others substantially increased to
Sales income substantially increased to
Sales commission feedecreased by 78.3% to
Total operating costs and expenses decreased by 1.5% to
Cost of revenues increased by 31.9% to
Sales and marketing expenses increased by 45.0% to
General and administrative expenses increased by 28.3% to
Research and development expenses increased by 110.0% to
Provision for receivables decreased by 34.6% to RMB220.8 million (
As of December 31, 2018, 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 RMB523.8 million (
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 in 2017 and 2018, before charge-offs:
Click here to view the chart.
Income from operations increased by 58.5% to
Net income attributable to Qudian's shareholders increased by 42.1% to RMB767.5 million (
Non-GAAP Net income attributable to
Full Year 2018 Financial Results
Total revenues were
Financing income totaled
Loan facilitation income and others substantially increased to
Sales income substantially increased to
Sales commission feedecreased by 61.4% to
Total operating costs and expenses increased by 109.0% to
Cost of revenues substantially increased to
Sales and marketing expenses increased by 25.2% to
General and administrative expenses increased by 39.3% to
Research and development expenses increased by 30.2% to
Provision for receivables increased by 94.8% to RMB1,178.7 million (
Income from operations increased by 11.1% to
Net income attributable to Qudian's shareholders increased by 15.1% to RMB2,491.3 million (
Non-GAAP Net income attributable to
Cash Flow
As of
For the full year of 2018, net cash provided by operating activities was RMB3,332.3 million (
Update on Share Repurchase
Under the existing share repurchase program adopted in 2017 that authorized the Company to repurchase up to
Outlook
The Company reaffirms its total Non-GAAP net income for the full year of 2019 will 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 March 18, 2019 at 7:00 AM U.S. Eastern Time (7:00 PM Beijing/Hong Kong Time).
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 March 26, 2019, by dialing the following telephone numbers:
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: |
8697306 |
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 RMB6.8755 to US$1.00, the noon buying rate in effect on December 31, 2018 in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ 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 December 31, |
|||||
(In thousands except for number |
2017 |
2018 |
|||
of shares and per-share data) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
||
RMB |
RMB |
US$ |
|||
Revenues: |
|||||
Financing income |
1,060,856 |
903,191 |
131,364 |
||
Sales commission fee |
251,187 |
54,565 |
7,936 |
||
Sales income |
26,083 |
257,945 |
37,517 |
||
Penalty fee |
3,608 |
8,314 |
1,209 |
||
Loan facilitation income and others |
149,490 |
579,143 |
84,233 |
||
Total revenues |
1,491,224 |
1,803,158 |
262,258 |
||
Operating cost and expenses: |
|||||
Cost of revenues |
(305,360) |
(402,688) |
(58,569) |
||
Sales and marketing |
(94,382) |
(136,949) |
(19,918) |
||
General and administrative |
(64,275) |
(82,535) |
(12,004) |
||
Research and development |
(37,109) |
(77,939) |
(11,336) |
||
Loss of guarantee liabilities |
(104,099) |
(8,080) |
(1,175) |
||
Provision for receivables |
(337,780) |
(220,807) |
(32,115) |
||
Total operating cost and expenses |
(943,006) |
(929,000) |
(135,117) |
||
Other operating income |
10,913 |
12,202 |
1,775 |
||
Income from operations |
559,131 |
886,360 |
128,916 |
||
Interest and investment (loss)/income, net |
5,537 |
(11,867) |
(1,726) |
||
Foreign exchange loss, net |
(7,177) |
(34,442) |
(5,009) |
||
Other income |
1,712 |
4,286 |
623 |
||
Other expense |
(359) |
(297) |
(43) |
||
Net income before income taxes |
558,845 |
844,042 |
122,762 |
||
Income tax expenses |
(18,753) |
(76,516) |
(11,129) |
||
Net income |
540,092 |
767,526 |
111,633 |
||
Net income attributable to Qudian Inc.'s |
540,092 |
767,526 |
111,633 |
||
Earnings per share for Class A |
|||||
Basic |
1.94 |
2.54 |
0.37 |
||
Diluted |
1.67 |
2.52 |
0.37 |
||
Earnings per ADS (1 Class A ordinary |
|||||
Basic |
1.94 |
2.54 |
0.37 |
||
Diluted |
1.67 |
2.52 |
0.37 |
||
Weighted average number of Class A |
|||||
Basic |
278,464,623 |
302,326,683 |
302,326,683 |
||
Diluted |
323,461,840 |
304,640,119 |
304,640,119 |
||
Other comprehensive gain: |
|||||
Foreign currency translation adjustment |
(77,947) |
1,811 |
263 |
||
Total comprehensive income |
462,145 |
769,337 |
111,896 |
||
Total comprehensive income attributable to |
462,145 |
769,337 |
111,896 |
||
Year ended December 31, |
|||||
(In thousands except for number |
2017 |
2018 |
|||
of shares and per-share data) |
(Unaudited) |
(Unaudited) |
|||
RMB |
RMB |
US$ |
|||
Revenues: |
|||||
Financing income |
3,642,184 |
3,535,276 |
514,185 |
||
Sales commission fee |
797,167 |
307,492 |
44,723 |
||
Sales income |
26,083 |
2,174,789 |
316,310 |
||
Penalty fee |
7,922 |
28,013 |
4,074 |
||
Loan facilitation income and others |
302,009 |
1,646,773 |
239,513 |
||
Total revenues |
4,775,365 |
7,692,343 |
1,118,805 |
||
Operating cost and expenses: |
|||||
Cost of revenues |
(880,846) |
(2,735,428) |
(397,852) |
||
Sales and marketing |
(431,750) |
(540,550) |
(78,620) |
||
General and administrative |
(183,674) |
(255,867) |
(37,214) |
||
Research and development |
(153,258) |
(199,560) |
(29,025) |
||
Loss of guarantee liabilities |
(150,152) |
(116,593) |
(16,958) |
||
Provision for receivables |
(605,164) |
(1,178,723) |
(171,438) |
||
Total operating cost and expenses |
(2,404,843) |
(5,026,721) |
(731,107) |
||
Other operating income |
50,703 |
23,748 |
3,454 |
||
Income from operations |
2,421,224 |
2,689,370 |
391,152 |
||
Interest and investment (loss)/income, net |
4,211 |
35,740 |
5,198 |
||
Foreign exchange loss, net |
(7,177) |
(90,771) |
(13,202) |
||
Other income |
2,108 |
15,231 |
2,215 |
||
Other expense |
(363) |
(522) |
(76) |
||
Net income before income taxes |
2,420,003 |
2,649,048 |
385,287 |
||
Income tax expenses |
(255,546) |
(157,731) |
(22,941) |
||
Net income |
2,164,457 |
2,491,317 |
362,346 |
||
Net income attributable to Qudian Inc.'s |
2,164,457 |
2,491,317 |
362,346 |
||
Earnings per share for Class A |
|||||
Basic |
17.13 |
7.82 |
1.14 |
||
Diluted |
7.09 |
7.74 |
1.13 |
||
Earnings per ADS (1 Class A ordinary |
|||||
Basic |
17.13 |
7.82 |
1.14 |
||
Diluted |
7.09 |
7.74 |
1.13 |
||
Weighted average number of Class A |
|||||
Basic |
126,390,196 |
318,685,836 |
318,685,836 |
||
Diluted |
305,221,444 |
321,955,142 |
321,955,142 |
||
Other comprehensive gain: |
|||||
Foreign currency translation adjustment |
(77,947) |
33,089 |
4,813 |
||
Total comprehensive income |
2,086,510 |
2,524,406 |
367,159 |
||
Total comprehensive income attributable to |
2,086,510 |
2,524,406 |
367,159 |
QUDIAN INC. |
||||||
Unaudited Condensed Consolidated Balance Sheets |
||||||
As of December 31, |
As of December 31, |
|||||
(In thousands except for number |
2017 |
2018 |
||||
of shares and per-share data) |
(Unaudited) |
(Unaudited) |
||||
RMB |
RMB |
US$ |
||||
ASSETS: |
||||||
Current assets: |
||||||
Cash and cash equivalents |
6,832,306 |
2,501,188 |
363,783 |
|||
Restricted cash |
2,252,646 |
339,827 |
49,426 |
|||
Short-term investments |
300,000 |
- |
- |
|||
Short-term loan principal and financing service |
||||||
fee receivables |
8,758,545 |
8,417,821 |
1,224,321 |
|||
Short-term finance lease receivables |
8,508 |
508,647 |
73,980 |
|||
Short-term amounts due from related parties |
551,215 |
2 |
- |
|||
Contract assets |
- |
903,436 |
131,399 |
|||
Other current assets |
482,351 |
1,818,222 |
264,449 |
|||
Total current assets |
19,185,571 |
14,489,143 |
2,107,358 |
|||
Non-current assets: |
||||||
Long-term loan principal and financing service |
- |
665,653 |
96,815 |
|||
Long-term finance lease receivables |
17,900 |
649,243 |
94,428 |
|||
Investment in equity method investee |
44,519 |
33,199 |
4,829 |
|||
Property and equipment, net |
4,613 |
26,224 |
3,814 |
|||
Intangible assets |
5,908 |
7,264 |
1,056 |
|||
Land use right |
- |
106,545 |
15,496 |
|||
Long-term contract asset |
- |
15,597 |
2,268 |
|||
Deferred tax assets |
115,461 |
243,413 |
35,403 |
|||
Other non-current assets |
6,444 |
17,093 |
2,486 |
|||
Total non-current assets |
194,845 |
1,764,231 |
256,597 |
|||
TOTAL ASSETS |
19,380,416 |
16,253,374 |
2,363,953 |
|||
QUDIAN INC. |
||||||
Unaudited Condensed Consolidated Balance Sheets |
||||||
As of December 31, |
As of December 31, |
|||||
(In thousands except for number |
2017 |
2018 |
||||
of shares and per-share data) |
(Unaudited) |
(Unaudited) |
||||
RMB |
RMB |
US$ |
||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||
Current liabilities: |
||||||
Short-term borrowings and interest payables |
7,979,415 |
3,860,441 |
561,478 |
|||
Accrued expenses and other current liabilities |
315,693 |
507,486 |
73,811 |
|||
Short-term amounts due to related parties |
719,563 |
- |
- |
|||
Guarantee liabilities |
46,981 |
302,605 |
44,012 |
|||
Income tax payable |
268,373 |
348,830 |
50,735 |
|||
Total current liabilities |
9,330,025 |
5,019,362 |
730,036 |
|||
Non-current liabilities: |
||||||
Long-term borrowings and interest payables |
510,024 |
413,400 |
60,127 |
|||
Total non-current liabilities |
510,024 |
413,400 |
60,127 |
|||
Total liabilities |
9,840,049 |
5,432,762 |
790,163 |
|||
Commitments and contingencies |
||||||
Shareholders' equity: |
||||||
Class A Ordinary shares |
177 |
161 |
24 |
|||
Class B Ordinary shares |
44 |
44 |
6 |
|||
Treasury shares |
(421,165) |
(362,130) |
(52,670) |
|||
Additional paid-in capital |
7,571,703 |
6,160,446 |
896,000 |
|||
Accumulated other comprehensive loss |
(77,947) |
(44,858) |
(6,524) |
|||
Retained earnings |
2,467,555 |
5,066,951 |
736,957 |
|||
Total shareholders' equity |
9,540,367 |
10,820,614 |
1,573,793 |
|||
TOTAL LIABILITIES AND SHAREHOLDERS' |
19,380,416 |
16,253,376 |
2,363,956 |
QUDIAN INC. |
||||||
Unaudited Reconciliation of GAAP And Non-GAAP Results |
||||||
Three months ended December 31, |
||||||
2017 |
2018 |
|||||
(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 |
540,092 |
767,525 |
111,632 |
|||
Add: Share-based compensation expenses |
19,294 |
11,249 |
1,636 |
|||
Non-GAAP net income attributable to Qudian Inc.'s |
559,386 |
778,774 |
113,268 |
|||
Non-GAAP net income per share -- basic |
2.01 |
2.58 |
0.37 |
|||
Non-GAAP net income per share -- diluted |
1.73 |
2.56 |
0.37 |
|||
Weighted average shares outstanding -- basic |
278,464,623 |
302,326,683 |
302,326,683 |
|||
Weighted average shares outstanding -- diluted |
323,461,840 |
304,640,119 |
304,640,119 |
|||
QUDIAN INC. |
||||||
Unaudited Reconciliation of GAAP And Non-GAAP Results |
||||||
Year ended December 31, |
||||||
2017 |
2018 |
|||||
(In thousands except for number |
(Unaudited) |
(Unaudited) |
||||
of shares and per-share data) |
RMB |
RMB |
US$ |
|||
Total net income attributable to Qudian Inc.'s |
2,164,459 |
2,491,316 |
362,347 |
|||
Add: Share-based compensation expenses |
64,056 |
57,981 |
8,433 |
|||
Non-GAAP net income attributable to Qudian Inc.'s |
2,228,515 |
2,549,297 |
370,780 |
|||
Non-GAAP net income per share -- basic |
17.63 |
8.00 |
1.16 |
|||
Non-GAAP net income per share -- diluted |
7.3 |
7.92 |
1.15 |
|||
Weighted average shares outstanding -- basic |
126,390,196 |
318,685,836 |
318,685,836 |
|||
Weighted average shares outstanding -- diluted |
305,221,444 |
321,955,142 |
321,955,142 |
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