Qudian Inc. Reports Third Quarter 2018 Unaudited Financial Results and Issues Notice of Annual General Meeting
11/21/2018
Third Quarter 2018 Operational Highlights:
- Total outstanding loan balance[1]as of
September 30, 2018 increased by 17.7% to RMB 15.3 billion fromSeptember 30, 2017 - Total number of registered users as of September 30, 2018 increased by 23.7% to 70.0 million from
September 30, 2017 - Number of outstanding borrowers[2]as of
September 30, 2018 was 4.9 million, compared with 6.3 million as ofSeptember 30, 2017 , as a result of tightened credit standards and longer loan tenure - Cumulative number of borrowers[3]as of
September 30, 2018 was 16.3 million, compared with 12.9 million as ofSeptember 30, 2017 ; New active borrowers[4]for this quarter was 580,727 - M1+ Delinquency Rate by Vintage[5] for loans generated since
January 1, 2018 was around 1.7% throughOctober 31, 2018 , as a result of successful implementation of tighter credit standards
[1] Including off-balance sheet loans directly funded by our funding partners. |
[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. |
Third Quarter 2018 Financial Highlights:
- Total revenues increased by 32.9% year-on-year to
RMB1,928.9 million (US$280.9 million )
- Loan facilitation income and others increased substantially year-on-year to
- Financing income was
- Sales income generated by the Dabai Auto business was
- Net income increased by 5.1% year-on-year to
RMB683.8 million (US$99.6 million ), orRMB2.13 (US$0.31) per diluted ADS - Non-GAAP net income[6] increased by 4.7% year-on-year to
RMB694.3 million (US$101.1 million ), orRMB2.17 (US$0.32) per diluted ADS; Excluding a non-recurring foreign exchange loss ofRMB52.8 million (US$7.7 million ), our non-GAAP net income would have beenRMB747.1 million (US$108.8 million )
[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 are pleased to report another quarter of solid results," said Mr.
"With a focus on risk-adjusted profitability, we have further scaled down our budget car financing business as we emphasize our core small consumer credit businesses. Looking ahead, amidst the challenging regulatory environment, we are excited by the opportunities presented by our very flexible 'on-balance sheet + off-balance sheet + referral business' model to provide affordable credit to millions of users who are underserved by traditional financial institutions," Mr. Luo concluded.
"We continued to deliver strong results with improved profitability in our core consumption credit businesses," said Mr.
"Going into the fourth quarter, we expect macro economic challenges and uncertainties to continue. Yet, as demonstrated by our solid track record, we believe that our technology-based and data-driven approach will continue to enable us to navigate within the deep pocket of users and keep credit quality within manageable ranges. Accordingly, we expect our outstanding loan balance to grow sustainably and to meet our full year non-GAAP net income guidance of
"We continued to purchase company shares in the open market given the visible disconnect between company's value and fundamentals. As of
Third Quarter 2018 Financial Results
Total revenues were
Financing income totaled
Loan facilitation income and others substantially increased to
Sales income was
Sales commission fees decreased by 87.9% to
Total operating costs and expenses increased by 62.3% to
Cost of revenues increased substantially to
Sales and marketing expenses decreased by 36.1% to
General and administrative expenses were
Research and development expenses decreased by 21.7% to
Provision for loan principal, financing service fee receivables and other receivables increased by 73.7% to RMB292.4 million (
As of September 30, 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 RMB435.5 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 was RMB702.8 million (
Net income attributable to Qudian's shareholders increased by 5.1% to RMB683.8 million (
Non-GAAP Net income attributable to
As of
For the third quarter of 2018, net cash provided by operating activities was RMB1,378.8 million (
Update on Share Repurchase
On
Outlook
The Company expects that its total non-GAAP net income for the full year of 2018 will be greater than
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.
The board of directors of the Company has fixed the close of business on
Holders of record of the ordinary shares, par value
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
Conference Call
The Company's management will host an earnings conference call on November 21, 2018 at 7:00 AM U.S. Eastern Time, 2018 (8:00 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 November 29, 2018, 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: |
7377928 |
About
For more information, please visit 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 RMB6.8680 to US$1.00, the noon buying rate in effect on September 28, 2018 in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ 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.
Contacts:
Investor Relations
Director of Capital Markets
E-mail: ir@qudian.com
Media
VP, Public Relations
E-mail: pr@qudian.com
Tel: +86-135-0116-6560
E-mail: qudian@thefootegroup.com
QUDIAN INC. |
|||||||
Unaudited Condensed Consolidated Statements of Operations |
|||||||
Three months ended September 30, |
|||||||
(In thousands except for number |
2017 |
2018 |
|||||
of shares and per-share data) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
||||
RMB |
RMB |
US$ |
|||||
Revenues: |
|||||||
Financing income |
1,053,902 |
960,207 |
139,809 |
||||
Sales commission fees |
294,811 |
35,650 |
5,191 |
||||
Sales income |
- |
586,057 |
85,332 |
||||
Penalty fees |
1,478 |
9,047 |
1,317 |
||||
Loan facilitation income and others |
100,816 |
337,949 |
49,206 |
||||
Total revenues |
1,451,007 |
1,928,911 |
280,855 |
||||
Operating cost and expenses: |
|||||||
Cost of revenues |
(258,920) |
(698,519) |
(101,706) |
||||
Sales and marketing |
(187,863) |
(120,071) |
(17,483) |
||||
General and administrative |
(51,132) |
(48,233) |
(7,023) |
||||
Research and development |
(52,659) |
(41,237) |
(6,004) |
||||
Loss of guarantee liabilities |
(38,527) |
(28,578) |
(4,161) |
||||
Provision for loan principal, financing service |
(168,355) |
(292,350) |
(42,567) |
||||
Total operating cost and expenses |
(757,456) |
(1,228,988) |
(178,944) |
||||
Other operating income |
2,266 |
2,886 |
420 |
||||
Income from operations |
695,817 |
702,809 |
102,331 |
||||
Interest and investment (loss)/income, net |
744 |
23,487 |
3,420 |
||||
Foreign exchange loss, net |
- |
(52,799) |
(7,688) |
||||
Other income |
86 |
2,445 |
356 |
||||
Other expense |
(3) |
(56) |
(8) |
||||
Net income before income taxes |
696,644 |
675,886 |
98,411 |
||||
Income tax expenses |
(45,939) |
7,897 |
1,150 |
||||
Net income |
650,705 |
683,783 |
99,561 |
||||
Net income attributable to Qudian Inc.'s |
650,705 |
683,783 |
99,561 |
||||
Earnings per share for Class A |
|||||||
Basic |
9.07 |
2.15 |
0.31 |
||||
Diluted |
2.20 |
2.13 |
0.31 |
||||
Earnings per ADS (1 Class A ordinary |
|||||||
Basic |
- |
2.15 |
0.31 |
||||
Diluted |
- |
2.13 |
0.31 |
||||
Weighted average number of Class A |
|||||||
Basic |
71,777,584 |
318,484,524 |
318,484,524 |
||||
Diluted |
295,955,489 |
320,441,092 |
320,441,092 |
||||
Other comprehensive gain: |
|||||||
Foreign currency translation adjustment |
- |
60,586 |
8,821 |
||||
Total comprehensive income |
650,705 |
744,369 |
108,382 |
||||
Total comprehensive income attributable to |
650,705 |
744,369 |
108,382 |
QUDIAN INC. |
|||||||
Unaudited Condensed Consolidated Balance Sheets |
|||||||
As of |
As of |
||||||
(In thousands except for number |
2018 |
2018 |
|||||
of shares and per-share data) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
||||
RMB |
RMB |
US$ |
|||||
ASSETS: |
|||||||
Current assets: |
|||||||
Cash and cash equivalents |
2,904,627 |
2,754,416 |
401,051 |
||||
Restricted cash |
1,458,463 |
1,183,324 |
172,295 |
||||
Short-term investments |
67,579 |
28,830 |
4,198 |
||||
Short-term loan principal and financing service |
10,098,603 |
9,062,727 |
1,319,558 |
||||
Short-term finance lease receivables |
389,683 |
484,831 |
70,593 |
||||
Short-term amounts due from related parties |
336,179 |
257,641 |
37,513 |
||||
Contract assets |
433,532 |
564,394 |
82,177 |
||||
Other current assets |
1,242,202 |
1,058,713 |
154,152 |
||||
Total current assets |
16,930,867 |
15,394,875 |
2,241,537 |
||||
Non-current assets: |
|||||||
Long-term finance lease receivables |
690,612 |
679,997 |
99,009 |
||||
Investment in equity method investee |
42,253 |
39,712 |
5,782 |
||||
Property and equipment, net |
11,361 |
25,482 |
3,710 |
||||
Intangible assets |
8,553 |
6,683 |
973 |
||||
Land use right |
106,000 |
107,247 |
15,615 |
||||
Long-term contract asset |
9,209 |
- |
- |
||||
Deferred tax assets |
178,359 |
173,760 |
25,300 |
||||
Other non-current assets |
8,407 |
8,909 |
1,297 |
||||
Total non-current assets |
1,054,752 |
1,041,789 |
151,687 |
||||
TOTAL ASSETS |
17,985,619 |
16,436,664 |
2,393,224 |
QUDIAN INC. |
|||||||
Unaudited Condensed Consolidated Balance Sheets |
|||||||
As of |
As of |
||||||
(In thousands except for number |
2018 |
2018 |
|||||
of shares and per-share data) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
||||
RMB |
RMB |
US$ |
|||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||
Current liabilities: |
|||||||
Short-term borrowings and interest payables |
6,031,503 |
4,810,799 |
700,466 |
||||
Accrued expenses and other current liabilities |
386,229 |
477,482 |
69,523 |
||||
Short-term amounts due to related parties |
1,112,257 |
1,527 |
222 |
||||
Guarantee liabilities |
86,085 |
169,816 |
24,726 |
||||
Income tax payable |
231,601 |
189,983 |
27,662 |
||||
Total current liabilities |
7,847,675 |
5,649,607 |
822,599 |
||||
Non-current liabilities: |
|||||||
Long-term borrowings and interest payables |
- |
198,000 |
28,829 |
||||
Total non-current liabilities |
- |
198,000 |
28,829 |
||||
Total liabilities |
7,847,675 |
5,847,607 |
851,428 |
||||
Commitments and contingencies |
|||||||
Shareholders' equity: |
|||||||
Class A Ordinary shares |
176 |
165 |
24 |
||||
Class B Ordinary shares |
44 |
44 |
6 |
||||
Treasury shares |
(557,406) |
(17,940) |
(2,612) |
||||
Additional paid-in capital |
7,186,744 |
6,354,032 |
925,165 |
||||
Accumulated other comprehensive loss |
(107,255) |
(46,670) |
(6,795) |
||||
Retained earnings |
3,615,642 |
4,299,425 |
626,008 |
||||
Total shareholders' equity |
10,137,945 |
10,589,057 |
1,541,796 |
||||
TOTAL LIABILITIES AND SHAREHOLDERS' |
17,985,619 |
16,436,664 |
2,393,224 |
QUDIAN INC. |
|||||||
Unaudited Reconciliation of GAAP And Non-GAAP Results |
|||||||
Three months ended September 30, |
|||||||
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 |
650,705 |
683,783 |
99,561 |
||||
Add: Share-based compensation expenses |
12,585 |
10,529 |
1,533 |
||||
Non-GAAP net income attributable to Qudian Inc.'s |
663,290 |
694,312 |
101,094 |
||||
Non-GAAP net income per share—basic |
9.24 |
2.18 |
0.32 |
||||
Non-GAAP net income per share—diluted |
2.24 |
2.17 |
0.32 |
||||
Weighted average shares outstanding—basic |
71,777,584 |
318,484,524 |
318,484,524 |
||||
Weighted average shares outstanding—diluted |
295,955,489 |
320,441,092 |
320,441,092 |
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