Qudian Inc. Reports Third Quarter 2019 Unaudited Financial Results
11/18/2019
Third Quarter 2019 Operational Highlights:
- Total number of registered users as of Sep 30, 2019 reached 78.3 million, representing an increase of 11.8% from
Sep 30, 2018 - Number of outstanding borrowers[1] from loan book business and transaction services business as of
Sep 30, 2019 increased by 3.4% to 6.3 million from 6.1 million as ofJune 30, 2019 - Cumulative number of borrowers[2] from loan book business and transaction services business as of
Sep 30, 2019 increased by 3.6% to 19.0 million fromJune 30, 2019 - New active borrowers[3] from loan book business and transaction services business for this quarter increased by 15.2% to 669,111 from 580,727 for the third quarter of 2018 as a result of incremental user growth driven by transaction services business
- Total outstanding loan balance including transaction services business[4] as of
Sep 30, 2019 increased by 151.2% to RMB38.4 billion fromSep 30, 2018 - Weighted average loan tenure for our loan book business was 10.4 months for this quarter, compared with 8.4 months for the second quarter of 2019; Weighted average loan tenure for transactions serviced on open-platform was 13.0 months for this quarter, compared with 14.1 months for the second quarter of 2019
- Cumulative number of users for transactions serviced on open-platform as of
Sep 30, 2019 increased by 153.3% to 1,057,497 fromJune 30, 2019 Cumulative amount of transactions serviced on open-platform in 2019 wasRMB15.7 billion as ofSep 30, 2019
|
[1] Outstanding borrowers are borrowers who have outstanding loans as of a particular date, including outstanding borrowers from both loan book business and transaction services business. Transaction services business, relates to various services, including credit assessment, referral and post-origination services, provided through our open-platform, which was launched in the second half of 2018. [2] Cumulative number of borrowers are borrowers who have drawn down credit on or prior to a particular date, on a cumulative basis, including outstanding borrowers from both loan book business and transaction services business. [3] Active borrowers are borrowers who have drawn down credit in the specified period from both loan book business and transaction services business. New active borrowers are active borrowers who had never drawn down credit on our platform prior to the specified period. [4] Includes off and on balance sheet loans directly or indirectly funded by our institutional funding partners or our own capital, net of cumulative write-offs. Includes loan balance facilitated through our open platform to funding partners which Qudian does not undertake credit risks and does not include auto loans from Dabai Auto business. |
Third Quarter 2019 Financial Highlights:
- Total revenues were
RMB2,590.9 million (US$362.5 million ), increased by 34.3% from same period last year, primarily due to the ramp up of the open-platform initiative - Loan facilitation income and other related income increased by 72.6% year-on-year to
RMB583.3 million (US$81.6 million ) fromRMB337.9 million for the same period last year - Transaction services fee and other related income which relate to transaction services and traffic referral services provided by our open-platform, substantially increased to
RMB993.3 million (US$139.0 million ) from nil for the same period last year - Financing income decreased by 16.9% to
RMB797.9 million (US$111.6 million ) fromRMB960.2 million for the same period last year as a result of a decrease in average on-balance sheet loan balance - Net income increased by 52.6% year-on-year to
RMB1,043.4 million (US$146.0 million ), orRMB3.29 (US$0.46) per diluted ADS - Non-GAAP net income[5] increased by 52.9% year-on-year to
RMB1,061.8million (US$148.6 million ), orRMB3.34 (US$0.47) 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. |
"The third quarter marks our successful evolution to a balance sheet independent, technology services fee driven business. Our transaction services fee overtook as the largest in revenue scale and delivered staggering 150% growth from the previous quarter," said Mr.
"In the face of a complex and evolving regulatory framework over the past several years we have proven our ability to lead and innovate, creating
"Our open platform technology enables high speed precision processing of micro loans while simultaneously syndicating each individual user to multiple lenders. This allows all our lender partners to lower risk while providing enhancement in credit size, allowing open platform to focus on the higher quality borrowers. As of the end of third quarter, our open-platform has bridged over 1,020,940 outstanding borrowers and 11 licensed and, regulated financial institutions, both more than doubling from last quarter. Notably, the repeat borrowing ratio was more than 70% for the quarter, demonstrating strong sustainability and user stickiness trends."
"As a whole, our registered user base grew to 78.3 million and total outstanding borrowers reached 6.3 million, both the highest in our company's history, illustrating the sustained demand for our services. With the right high-scale, risk-free and regulatory compliant approach to
"We delivered another quarter of solid Non-GAAP net income of
"Attracted by our affordable and seamless product offering, more than 669,000 new borrowers joined the platform with minimal acquisition costs. Our total loan balance including the risk-free open platform business has grown further to
"In our risk undertaking business, we implemented a conservative strategy of reducing credit volumes and paused our credit trial program. Our proactive and prompt management of macro driven risk was effective in stabilizing the delinquency rates. To enhance comparability to peers and transparency in our disclosures, our M6+ vintage charge-off rates measured by current receivables at risk stayed below 1.6%. Although risk remains well managed, we believe the recent exit of many smaller players may create further credit liquidity pressure for the Chinese consumption credit sector. As such, we expect to continue a conservative approach on our risk-taking book into the final quarter of 2019 and thus revise our full year guidance accordingly."
"Given a large disconnect between the strong momentum in our open-platform and risk-free fee based business model and the market value of our company which is near net assets, we have announced another
Third Quarter Financial Results
Total revenues were
Financing income totaled
Loan facilitation income and other related income increased by 72.6% to
Transaction services fee and other related income substantially increased to
Sales income substantially decreased to
Sales commission fee increased by 96.0% to
Total operating costs and expenses increased by 14.0% to
Cost of revenues decreased by 70.5% to
Sales and marketing expenses decreased by 45.4% to
General and administrative expenses increased by 34.9% to
Research and development expenses increased by 7.0% to
Provision for receivables increased by 136.4% to RMB691.1 million (
As of Sep 30, 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 RMB970.6 million (
The following charts display "vintage charge-off rate." Total potential receivables at risk vintage charge-off rate refers to, with respect to on- and off-balance sheet transactions facilitated during a specified time period, the total potential outstanding principal balance of the transactions that are delinquent for more than 180 days during such period, divided by the total initial principal of the transactions facilitated in such vintage.
Current receivables at risk vintage charge-off rate refers to, with respect to on- and off-balance sheet transactions facilitated during a specified time period, actual outstanding principal balance of the transactions that are delinquent for more than 180 days during such period, divided by the total initial principal of the transactions facilitated in such vintage.
Total potential receivables at risk M1+ delinquency rate by vintage refers to, with respect to on- and off-balance sheet transactions facilitated during a specified time period, the total potential outstanding principal balance of the transactions that are delinquent for more than 30 days during such period, divided by the total initial principal of the transactions facilitated in such vintage.
Current receivables at risk M1+ delinquency rate by vintage refers to, with respect to on- and off-balance sheet transactions facilitated during a specified time period, the actual outstanding principal balance of the transactions that are delinquent for more than 30 days during such period, divided by the total initial principal of the transactions facilitated in such vintage.
Income from operations increased by 73.5% to
Net income attributable to Qudian's shareholders increased by 52.6% to RMB1,043.4 million (
Non-GAAP net income attributable to
Cash Flow
As of
For the quarter ended
Board Member Changes
We also announced today the replacement of Mr. Lianzhu Lv from
With extensive experience managing startups, Mr. Xu joined
Outlook
Due to recent strategy for the company to reduce risk-taking loan balance and focus on higher quality borrowers via open-platform, the Company has adjusted its expected total Non-GAAP net income for the full year of 2019 to
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.
Qudian announced that it will hold its annual general meeting of shareholders (the "AGM") at Level 39, Tower A, AVIC Zijin Plaza, Siming District, Xiamen, Fujian Province, China, on December 30, 2019 at 11:00AM (Beijing / Hong Kong Time). No proposal will be submitted to shareholders for approval at the AGM. Instead, the AGM will serve as an open forum for shareholders and holders of the Company's ADSs to discuss the Company's affairs with management. The chairman of the AGM will conduct and lead the AGM and may accept questions from shareholders at his sole and absolute discretion.
The board of directors of the Company has fixed the close of business on December 6,
Holders of record of the ordinary shares, par value US$0.0001 per share, of the Company (the "Ordinary Shares"), at the close of business on the Record Date are entitled to attend the AGM and any adjournment or postponement thereof in person.
The notice of the annual general meeting is available on the Company's website at http://ir.qudian.com. The Company filed its annual report on Form 20-F for the fiscal year ended December 31, 2018 with the U.S. Securities and Exchange Commission (the "
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
Mainland
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: +61-2-8199-0299
Mainland
Passcode: 6738659
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 RMB7.1477 to US$1.00, the noon buying rate in effect on
Statement Regarding Preliminary Unaudited Financial Information
The unaudited financial information set out in this earnings release is preliminary and subject to potential adjustments. Adjustments to the consolidated financial statements may be identified when audit work has been performed for the Company's year-end audit, which could result in significant differences from this preliminary unaudited financial information.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the expectation of its collection efficiency and delinquency, contain forward-looking statements.
For investor and media inquiries, please contact:
Tel: +86-592-591-1580
E-mail: ir@qudian.com
Tel: +86-135-0116-6560
E-mail: qudian@thefootegroup.com
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QUDIAN INC. |
|||||
|
Unaudited Condensed Consolidated Statements of Operations |
|||||
|
Three months ended September 30, |
|||||
|
(In thousands except for number |
2018 |
2019 |
|||
|
of shares and per-share data) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
||
|
RMB |
RMB |
US$ |
|||
|
Revenues: |
|||||
|
Financing income |
960,207 |
797,879 |
111,627 |
||
|
Sales commission fee |
35,650 |
69,873 |
9,776 |
||
|
Sales income |
586,057 |
135,533 |
18,962 |
||
|
Penalty fee |
9,047 |
10,993 |
1,538 |
||
|
Loan facilitation income and other related income |
337,950 |
583,340 |
81,612 |
||
|
Transaction services fee and other related income |
- |
993,299 |
138,968 |
||
|
Total revenues |
1,928,911 |
2,590,917 |
362,483 |
||
|
Operating cost and expenses: |
|||||
|
Cost of revenues |
(698,519) |
(206,336) |
(28,867) |
||
|
Sales and marketing |
(120,071) |
(65,538) |
(9,169) |
||
|
General and administrative |
(48,233) |
(65,069) |
(9,104) |
||
|
Research and development |
(41,237) |
(44,103) |
(6,170) |
||
|
Changes in guarantee liabilities and risk |
(28,578) |
(328,631) |
(45,977) |
||
|
Provision for receivables and other assets |
(292,350) |
(691,080) |
(96,686) |
||
|
Total operating cost and expenses |
(1,228,988) |
(1,400,757) |
(195,973) |
||
|
Other operating income |
2,886 |
29,425 |
4,116 |
||
|
Income from operations |
702,809 |
1,219,585 |
170,626 |
||
|
Interest and investment income, net |
23,487 |
10,511 |
1,471 |
||
|
Foreign exchange gain/(loss), net |
(52,799) |
(814) |
(114) |
||
|
Other income |
2,445 |
483 |
68 |
||
|
Other expenses |
(56) |
(1,764) |
(247) |
||
|
Net income before income taxes |
675,886 |
1,228,001 |
171,804 |
||
|
Income tax expenses |
7,897 |
(184,614) |
(25,829) |
||
|
Net income |
683,783 |
1,043,387 |
145,975 |
||
|
Net income attributable to Qudian Inc.'s |
683,783 |
1,043,387 |
145,975 |
||
|
Earnings per share for Class A and Class B |
|||||
|
Basic |
2.15 |
3.74 |
0.52 |
||
|
Diluted |
2.13 |
3.29 |
0.46 |
||
|
Earnings per ADS (1 Class A ordinary share |
|||||
|
Basic |
2.15 |
3.74 |
0.52 |
||
|
Diluted |
2.13 |
3.29 |
0.46 |
||
|
Weighted average number of Class A and |
|||||
|
Basic |
318,484,524 |
279,325,050 |
279,325,050 |
||
|
Diluted |
320,441,092 |
320,089,013 |
320,089,013 |
||
|
Other comprehensive income: |
|||||
|
Foreign currency translation adjustment |
60,586 |
2,483 |
348 |
||
|
Total comprehensive income |
744,369 |
1,045,870 |
146,323 |
||
|
Total comprehensive income attributable |
744,369 |
1,045,870 |
146,323 |
||
|
Note： |
|||||
|
QUDIAN INC. |
||||||
|
Unaudited Condensed Consolidated Balance Sheets |
||||||
|
As of June 30, |
As of September 30, |
|||||
|
(In thousands except for number |
2019 |
2019 |
||||
|
of shares and per-share data) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
|||
|
RMB |
RMB |
US$ |
||||
|
ASSETS: |
||||||
|
Current assets: |
||||||
|
Cash and cash equivalents |
2,586,949 |
2,656,105 |
371,603 |
|||
|
Restricted cash |
858,648 |
981,618 |
137,333 |
|||
|
Short-term investments |
30,000 |
30,000 |
4,197 |
|||
|
Short-term loan principal and financing service |
8,743,378 |
8,023,224 |
1,122,490 |
|||
|
Short-term finance lease receivables |
448,494 |
426,495 |
59,669 |
|||
|
Short-term amounts due from related parties |
45 |
228 |
32 |
|||
|
Short-term contract assets |
1,809,313 |
2,908,284 |
406,884 |
|||
|
Other current assets |
1,967,223 |
1,791,529 |
250,644 |
|||
|
Total current assets |
16,444,050 |
16,817,483 |
2,352,852 |
|||
|
Non-current assets: |
||||||
|
Long-term loan principal and financing service |
251,921 |
37,652 |
5,268 |
|||
|
Long-term finance lease receivables |
484,989 |
331,927 |
46,438 |
|||
|
Operating lease right-of-use assets |
137,668 |
145,605 |
20,371 |
|||
|
Investment in equity method investees |
49,651 |
47,464 |
6,641 |
|||
|
Long-term investments |
180,000 |
224,180 |
31,364 |
|||
|
Property and equipment, net |
63,920 |
79,461 |
11,117 |
|||
|
Intangible assets |
6,111 |
6,050 |
846 |
|||
|
Long-term contract assets |
575,066 |
272,222 |
38,085 |
|||
|
Deferred tax assets |
450,116 |
713,160 |
99,775 |
|||
|
Other non-current assets |
20,266 |
19,770 |
2,766 |
|||
|
Total non-current assets |
2,219,708 |
1,877,491 |
262,671 |
|||
|
TOTAL ASSETS |
18,663,758 |
18,694,974 |
2,615,523 |
|||
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||
|
Current liabilities: |
||||||
|
Short-term borrowings and interest payables |
3,241,491 |
777,726 |
108,808 |
|||
|
Short-term lease liabilities |
11,957 |
18,373 |
2,570 |
|||
|
Accrued expenses and other current liabilities |
657,416 |
828,466 |
115,907 |
|||
|
Guarantee liabilities |
409,160 |
422,022 |
59,043 |
|||
|
Risk assurance liabilities |
760,313 |
1,083,721 |
151,618 |
|||
|
Income tax payable |
339,715 |
626,189 |
87,607 |
|||
|
Total current liabilities |
5,420,052 |
3,756,497 |
525,553 |
|||
|
Non-current liabilities: |
||||||
|
Deferred tax liabilities |
376,321 |
508,249 |
71,107 |
|||
|
Convertible senior notes |
- |
2,391,584 |
334,595 |
|||
|
Long-term lease liabilities |
18,996 |
21,344 |
2,986 |
|||
|
Long-term borrowings and interest payables |
597,500 |
278,000 |
38,894 |
|||
|
Total non-current liabilities |
992,817 |
3,199,177 |
447,582 |
|||
|
Total liabilities |
6,412,869 |
6,955,674 |
973,135 |
|||
|
Shareholders' equity: |
||||||
|
Class A Ordinary shares |
150 |
150 |
21 |
|||
|
Class B Ordinary shares |
44 |
44 |
6 |
|||
|
Treasury shares |
(362,130) |
(362,130) |
(50,664) |
|||
|
Additional paid-in capital |
5,506,759 |
3,949,300 |
552,527 |
|||
|
Accumulated other comprehensive loss |
(53,912) |
(51,429) |
(7,195) |
|||
|
Retained earnings |
7,159,978 |
8,203,365 |
1,147,693 |
|||
|
Total shareholders' equity |
12,250,889 |
11,739,300 |
1,642,388 |
|||
|
TOTAL LIABILITIES AND SHAREHOLDERS' |
18,663,758 |
18,694,974 |
2,615,523 |
|||
|
QUDIAN INC. |
||||||
|
Unaudited Reconciliation of GAAP And Non-GAAP Results |
||||||
|
Three months ended September 30, |
||||||
|
2018 |
2019 |
|||||
|
(In thousands except for number |
(Unaudited) |
(Unaudited) |
(Unaudited) |
|||
|
of shares and per-share data) |
RMB |
RMB |
US$ |
|||
|
Total net income attributable to |
683,783 |
1,043,387 |
145,975 |
|||
|
Add: Share-based compensation expenses |
10,529 |
18,439 |
2,580 |
|||
|
Non-GAAP net income attributable to |
694,312 |
1,061,826 |
148,555 |
|||
|
Non-GAAP net income per share - basic |
2.18 |
3.80 |
0.53 |
|||
|
Non-GAAP net income per share - diluted |
2.17 |
3.34 |
0.47 |
|||
|
Weighted average shares outstanding - basic |
318,484,524 |
279,325,050 |
279,325,050 |
|||
|
Weighted average shares outstanding - diluted |
320,441,092 |
320,089,013 |
320,089,013 |
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