Qudian Inc. Unveils New Business Initiative in Budget Auto Financing
BEIJING, Jan. 15, 2018 PRNewswire -- Qudian Inc. ("Qudian" or the "Company") (NYSE: QD), a leading provider of online small consumer credit products in China, today announced "Dabai Auto," its new business initiative in budget auto financing.
Launched in late November 2017, Dabai Auto aims to capture the significant opportunity in China's new vehicle transaction market and enable new car sales by providing financial leasing solutions to car buyers who were previously underserved by traditional financing providers. According to China Association of Automobile Manufacturers, China's new car transaction market reached over 20 million vehicles in sales in 2017. However, the penetration rate for financial leasing solutions in new car sales remained low compared with developed countries. Dabai Auto initially targets Qudian's existing high quality users, who have been approved with credit lines, but have not actively transacted in small cash installments. Dabai Auto further demonstrates Qudian's endorsement of new regulatory guidelines on online cash installment business, which provides encouragement for scenario- and purpose-based consumption installment business, as Qudian continues to be committed to grow and explore consumption based installment scenarios.
Mr. Min Luo, Founder, Chairman and Chief Executive Office of Qudian, commented, "We are excited about Dabai Auto and believe our new budget auto financing initiative will transform the consumer finance experience for China's car buyers through our data technologies. We are encouraged by the progress we've made so far, and look forward to updating the market as we further develop this business."
By the end of 2017, Qudian has deployed over 100 off-line user engagement and delivery centers and exhibition areas conveniently located in the shopping districts of over 100 cities across China. Qudian plans to spend around RMB100 million to promote Dabai Auto through online channels. Qudian may revisit its advertising strategy as the business environment evolves.
About Qudian Inc.
Qudian Inc. ("Qudian") is a leading provider of online small consumer credit in China. The Company uses big data-enabled technologies, such as artificial intelligence and machine learning, to transform the consumer finance experience in China. With the mission to use technology to make personalized credit accessible, Qudian targets hundreds of millions of young, mobile-active consumers in China who need access to small credit for their discretionary spending, but are underserved by traditional financial institutions due to lack of traditional credit data. Qudian's data technology capabilities combined with its operating efficiencies allow Qudian to understand prospective borrowers from different behavioral and transactional perspectives, assess their credit profiles with regard to both their willingness and ability to repay and offer them instantaneous and affordable credit products with customized terms, and distinguish Qudian's business and offerings.
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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 credit products; Qudian's expectations regarding keeping and strengthening its relationships with borrowers, institutional funding partners, merchandise suppliers and other parties it collaborate 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.
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