REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 193 4 |
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 193 4 |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
one Class A ordinary share |
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* | |
Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report. |
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| ||
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. |
☐ Yes ☒ |
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If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. |
☐ Yes ☒ |
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Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. |
☒ |
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Indicate by check mark whether the registrant has submitted every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). |
☒ |
Large accelerated filer ☐ |
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Non-accelerated filer ☐ |
Emerging growth company |
† | The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012. |
International Financial Reporting Standards as issued by the International Accounting Standards Board ☐ | Other ☐ |
If “Other” has been checked in response to the previous question, indicate by check mark which consolidated financial statement item the registrant has elected to follow. |
☐ Item 17 ☐ Item 18 | |
If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act of 1934). |
☐ Yes | |
(APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS) |
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Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. |
☐ Yes ☐ No |
1 |
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3 |
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4 |
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ITEM 1. |
4 |
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ITEM 2. |
4 |
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ITEM 3. |
4 |
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ITEM 4. |
78 |
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ITEM 4A. |
135 |
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ITEM 5. |
135 |
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ITEM 6. |
163 |
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ITEM 7. |
174 |
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ITEM 8. |
174 |
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ITEM 9. |
177 |
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ITEM 10. |
177 |
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ITEM 11. |
185 |
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ITEM 12. |
187 |
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189 |
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ITEM 13. |
189 |
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ITEM 14. |
189 |
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ITEM 15. |
189 |
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ITEM 16A. |
190 |
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ITEM 16B. |
190 |
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ITEM 16C. |
190 |
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ITEM 16D. |
191 |
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ITEM 16E. |
191 |
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ITEM 16F. |
191 |
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ITEM 16G. |
191 |
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ITEM 16H. |
192 |
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ITEM 16I. |
192 |
193 |
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ITEM 17. |
193 |
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ITEM 18. |
193 |
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ITEM 19. |
193 |
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198 |
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F-1 |
• | “active borrowers” are to borrowers who have drawn down credit in the specified period; |
• | “ADSs” are to our American depositary shares, each of which represents one Class A ordinary share, and “ADRs” are to the American depositary receipts that evidence our ADSs; |
• | “amount of transactions” are to the aggregate principal amount of credit drawdowns that are provided to borrowers in the specified period, which are comprised of (i) credit drawdowns that are facilitated under the Group’s loan book business and (ii) credit drawdowns that are facilitated under the Group’s transaction services business; |
• | “Ant Financial” are to Ant Small and Micro Financial Services Group Co., Ltd., a company organized under the laws of the PRC, and its affiliates; |
• | “China” and the “PRC” are to the People’s Republic of China, excluding, for the purposes of this annual report only, Taiwan, the Hong Kong Special Administrative Region and the Macao Special Administrative Region; |
• | “the Group” are to Qudian Inc., the Group VIEs and their respective subsidiaries; |
• | “Group VIEs” are to Beijing Happy Time Technology Development Co., Ltd., or Beijing Happy Time, Xiamen Qudian Technology Co., Ltd., or Xiamen Qudian, Ganzhou Qudian Technology Co., Ltd, or Ganzhou Qudian, Xiamen Weipujia Technology Co., Ltd., or Xiamen Weipujia, Xiamen Qu Plus Plus Technology Development Co., Ltd., or Xiamen Qu Plus Plus; |
• | “loan book business” are to the Group’s business of offering small credit products to consumers; the relevant transactions may be funded by the Group’s institutional funding partners or the Group’s own capital, and the Group undertakes credit risk for such transactions; |
• | “M1+ delinquency coverage ratio” are to the balance of allowance for principal and financing service fee receivables at the end of a period, divided by the total balance of outstanding principal for on-balance sheet transactions for which any installment payment was more than 30 calendar days past due as of the end of such period; |
• | “M1+ delinquency rate by vintage” are to the total outstanding principal balance of the transactions of a vintage for which any repayment is overdue for more than 30 days, divided by the total initial principal of the transactions facilitated in such vintage; |
• | “number of transactions” are to the number of credit drawdowns facilitated by the Group to borrowers, which are comprised of (i) credit drawdowns that are facilitated under the Group’s loan book business and (ii) credit drawdowns that are facilitated under the Group’s transaction services business; |
• | “off-balance sheet transactions” are to credit drawdowns under the Group’s loan book business that are not recorded on the Group’s balance sheets; the Group bears credit risk for such transactions; |
• | “on-balance sheet transactions” are to credit drawdowns under the Group’s loan book business that are recorded on the Group’s balance sheets; |
• | “outstanding borrowers” are to borrowers who have outstanding loans under either the loan book business or the transaction services business as of a specified date; |
• | “provision ratio” are to the amount of provision for loan principal and financing service fee receivables incurred during a period as a percentage of the total amount of on-balance sheet transactions facilitated during such period; |
• | “P2P platforms” are to financial information intermediaries that are engaged in lending information business and directly provide peers, which can be natural persons, legal persons or other organizations, with lending information services; |
• | “Qudian marketplace” are to the Group’s online marketplace where consumers purchased merchandise offered by third-party merchandise suppliers with the Group’s merchandise credit products; |
• | “registered users” are to individuals who have registered with the Group in connection with the Group’s credit business; |
• | “RMB” or “Renminbi” are to the legal currency of China; |
• | “small credit products” are to cash or merchandise credit products that are less than RMB5,000 in amount; |
• | “Subsidiary” are to an entity controlled by Qudian Inc. and consolidated with Qudian Inc.’s results of operations due to Qudian Inc.’s equity interest in such entity, instead of contractual arrangements; for avoidance of doubt, the Group VIEs are not subsidiaries of Qudian Inc.; |
• | “transaction services business” are to the Group’s business of offering loan recommendation and referral services to third-party financial service providers; the Group assumes no credit risk for the transactions facilitated under the transaction services business; the Group ceased its transaction services business in the third quarter of 2021; |
• | “transactions” are to borrowers’ credit drawdowns from the Group’s platform; |
• | “US$,” “U.S. dollars,” or “dollars” are to the legal currency of the United States; |
• | “vintage” are to the on-balance sheet transactions and off-balance sheet transactions facilitated under the loan book business during a specified time period; and |
• | “we,” “us,” “our company” and “our” are to Qudian Inc. and/or its subsidiaries, as the context requires. |
• | the Group’s goal and strategies; |
• | the Group’s expansion plans; |
• | the Group’s future business development, financial condition and results of operations; |
• | the Group’s expectations regarding demand for, and market acceptance of, the Group’s products and services; |
• | the Group’s expectations regarding keeping and strengthening its relationships with customers, business partners and other parties the Group collaborates with; and |
• | general economic and business conditions. |
ITEM 1. |
IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS |
ITEM 2. |
OFFER STATISTICS AND EXPECTED TIMETABLE |
ITEM 3. |
KEY INFORMATION |
A. |
Selected Financial Data |
Year Ended December 31, |
||||||||||||||||||||||||
2017 |
2018 |
2019 |
2020 |
2021 |
||||||||||||||||||||
RMB |
RMB |
RMB |
RMB |
RMB |
US$ |
|||||||||||||||||||
(in thousands, except for share and per share data) |
||||||||||||||||||||||||
Condensed Consolidated Statement of Operations Data: |
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Revenues |
||||||||||||||||||||||||
Financing income |
3,642,184 | 3,535,276 | 3,510,055 | 2,102,665 | 1,255,488 | 197,014 | ||||||||||||||||||
Sales commission fee |
797,167 | 307,492 | 356,812 | 80,992 | 35,411 | 5,557 | ||||||||||||||||||
Sales income |
26,083 | 2,174,789 | 431,946 | 610,793 | 100,668 | 15,797 | ||||||||||||||||||
Penalty fees |
7,922 | 28,013 | 44,354 | 72,235 | 67,316 | 10,563 | ||||||||||||||||||
Guarantee income |
— | — | — | 826,198 | 3,935 | 617 | ||||||||||||||||||
Loan facilitation income and other related income |
302,010 | 1,646,773 | 2,297,413 | 131,633 | 39,531 | 6,203 | ||||||||||||||||||
Transaction services fee and other related income |
— | — | 2,199,464 | (136,542 | ) | 151,694 | 23,804 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total revenues |
4,775,366 |
7,692,343 |
8,840,044 |
3,687,974 |
1,654,043 |
259,555 |
||||||||||||||||||
Cost of revenues |
||||||||||||||||||||||||
Cost of goods sold |
(23,895 | ) | (2,003,642 | ) | (366,015 | ) | (645,083 | ) | (78,533 | ) | (12,324 | ) | ||||||||||||
Cost of other revenues |
(856,951 | ) | (731,786 | ) | (535,773 | ) | (217,271 | ) | (220,193 | ) | (34,553 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total cost of revenues |
(880,846 |
) |
(2,735,428 |
) |
(901,788 |
) |
(862,354 |
) |
(298,726 |
) |
(46,877 |
) | ||||||||||||
Operating expenses(1) |
||||||||||||||||||||||||
Sales and marketing |
(431,749 | ) | (540,551 | ) | (280,616 | ) | (293,282 | ) | (127,376 | ) | (19,988 | ) | ||||||||||||
General and administrative |
(183,674 | ) | (255,867 | ) | (286,059 | ) | (285,905 | ) | (443,276 | ) | (69,560 | ) | ||||||||||||
Research and development |
(153,258 | ) | (199,560 | ) | (204,781 | ) | (170,691 | ) | (141,264 | ) | (22,167 | ) | ||||||||||||
Changes in guarantee liabilities and risk assurance liabilities |
(150,152 | ) | (116,593 | ) | (1,143,427 | ) | 87,894 | 201,602 | 31,636 | |||||||||||||||
Provision for receivables and other assets |
(605,164 | ) | (1,178,723 | ) | (2,283,126 | ) | (1,641,362 | ) | 151,817 | 23,823 | ||||||||||||||
Impairment loss from long-lived assets |
— | — | — | — | (156,394 | ) | (24,542 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total operating expenses |
(1,523,997 |
) |
(2,291,294 |
) |
(4,198,009 |
) |
(2,303,346 |
) |
(514,891 |
) |
(80,798 |
) | ||||||||||||
Other operating income |
50,703 |
23,748 |
108,508 |
343,324 |
82,273 |
12,912 |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Income from operations |
2,421,226 |
2,689,369 |
3,848,755 |
865,598 |
922,699 |
144,792 |
||||||||||||||||||
Interest and investment income, net |
24,887 | 47,060 | 24,292 | 708,251 | 129,456 | 20,314 | ||||||||||||||||||
Loss from equity method investments |
(20,676 | ) | (11,319 | ) | (3,420 | ) | (370,039 | ) | (221,798 | ) | (34,805 | ) |
Year Ended December 31, |
||||||||||||||||||||||||
2017 |
2018 |
2019 |
2020 |
2021 |
||||||||||||||||||||
RMB |
RMB |
RMB |
RMB |
RMB |
US$ |
|||||||||||||||||||
(in thousands, except for share and per share data) |
||||||||||||||||||||||||
Unrealized gain on derivative instruments |
— | — | — | — | 17,375 | 2,727 | ||||||||||||||||||
Foreign exchange gain/(loss), net |
(7,177 | ) | (90,771 | ) | 6,635 | (107 | ) | (51 | ) | (8 | ) | |||||||||||||
Other income |
2,108 | 15,231 | 24,583 | 26,358 | 5,213 | 818 | ||||||||||||||||||
Other expenses |
(363 | ) | (522 | ) | (10,323 | ) | (9,263 | ) | (6,485 | ) | (1,018 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income before income taxes |
2,420,005 |
2,649,047 |
3,890,522 |
1,220,798 |
846,409 |
132,820 |
||||||||||||||||||
Income tax expenses |
(255,546 | ) | (157,731 | ) | (626,234 | ) | (261,979 | ) | (260,482 | ) | (40,875 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
2,164,459 |
2,491,316 |
3,264,288 |
958,819 |
585,927 |
91,945 |
||||||||||||||||||
Less: net loss attributable to noncontrolling interests |
— | — | — | — | (3,147 | ) | (494 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net Income attributable to Qudian Inc.’s shareholders |
2,164,459 |
2,491,316 |
3,264,288 |
958,819 |
589,074 |
92,439 |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Earnings per share for Class A and Cass B ordinary shares |
||||||||||||||||||||||||
— Basic |
17.13 | 7.82 | 11.72 | 3.78 | 2.32 | 0.36 | ||||||||||||||||||
Earnings per share for Class A and Class B ordinary shares |
||||||||||||||||||||||||
— Diluted |
7.09 | 7.74 | 10.94 | 3.59 | 2.27 | 0.36 | ||||||||||||||||||
Earnings per ADS (1 Class A ordinary shares equals 1 ADSs) |
||||||||||||||||||||||||
— Basic |
17.13 | 7.82 | 11.72 | 3.78 | 2.32 | 0.36 | ||||||||||||||||||
Earnings per ADS (1 Class A ordinary shares equals 1 ADSs) |
||||||||||||||||||||||||
— Diluted |
7.09 | 7.74 | 10.94 | 3.59 | 2.27 | 0.36 | ||||||||||||||||||
Weighted average number of Class A and Class B ordinary shares outstanding |
||||||||||||||||||||||||
— Basic |
126,390,196 | 318,685,836 | 278,531,382 | 253,658,448 | 253,438,807 | 253,438,807 | ||||||||||||||||||
Weighted average number of Class A and Class B ordinary shares outstanding |
||||||||||||||||||||||||
— Diluted |
305,221,444 | 321,955,142 | 300,457,711 | 274,333,161 | 266,292,869 | 266,292,869 | ||||||||||||||||||
Other comprehensive (loss)/income: |
||||||||||||||||||||||||
Foreign currency translation adjustment |
(77,947 | ) | 33,089 | 31,893 | (38,455 | ) | (7,577 | ) | (1,189 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total comprehensive income |
2,086,512 |
2,524,405 |
3,296,181 |
920,364 |
578,350 |
90,756 |
||||||||||||||||||
Less: comprehensive loss attributable to noncontrolling interests |
— | — | — | — | (3,147 | ) | (494 | ) | ||||||||||||||||
Total comprehensive income attributable to Qudian Inc.’s shareholders |
2,086,512 |
2,524,405 |
3,296,181 |
920,364 |
581,497 |
91,250 |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Share-based compensation expenses are allocated in operating expenses as follows: |
Year Ended December 31, |
||||||||||||||||||||||||
2017 |
2018 |
2019 |
2020 |
2021 |
||||||||||||||||||||
RMB |
RMB |
RMB |
RMB |
RMB |
US$ |
|||||||||||||||||||
(in thousands) |
||||||||||||||||||||||||
Sales and marketing |
1,891 | 5,641 | 4,482 | 1,912 | 1,727 | 271 | ||||||||||||||||||
General and administrative |
42,849 | 38,587 | 74,312 | 40,895 | 29,684 | 4,658 | ||||||||||||||||||
Research and development |
19,316 | 13,753 | 8,505 | 2,827 | 3,934 | 617 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total share-based compensation expenses |
64,056 |
57,981 |
87,299 |
45,634 |
35,345 |
5,546 |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, |
||||||||||||||||||||||||
2017 |
2018 |
2019 |
2020 |
2021 |
||||||||||||||||||||
RMB |
RMB |
RMB |
RMB |
RMB |
US$ |
|||||||||||||||||||
(in thousands) |
||||||||||||||||||||||||
Summary Consolidated Balance Sheets: |
||||||||||||||||||||||||
Cash and cash equivalents |
6,832,306 | 2,501,188 | 2,860,938 | 1,537,558 | 2,065,495 | 324,121 | ||||||||||||||||||
Restricted cash and cash equivalent |
2,252,646 | 339,827 | 1,257,649 | 135,404 | 177,925 | 27,920 | ||||||||||||||||||
Time deposits |
— | — | 231,132 | — | — | — | ||||||||||||||||||
Short-term amounts due from related parties (1) |
551,215 | 2 | — | — | — | — | ||||||||||||||||||
Short-term investments |
— | — | — | 5,042,314 | 5,926,601 | 930,013 | ||||||||||||||||||
Short-term loan principal and financing service fee receivables, net |
8,758,545 | 8,417,821 | 7,894,697 | 3,940,461 | 2,371,966 | 372,213 | ||||||||||||||||||
Short-term finance lease receivables, net |
8,508 | 508,647 | 398,256 | 179,613 | 31,462 | 4,937 | ||||||||||||||||||
Short-term contract assets |
— | 903,436 | 2,741,914 | 92,813 | 27,965 | 4,388 | ||||||||||||||||||
Long-term loan principal and financing service fee receivables |
— | 665,653 | 424 | — | — | — | ||||||||||||||||||
Long-term finance lease receivables, net |
17,900 | 649,243 | 239,697 | 28,771 | 399 | 63 | ||||||||||||||||||
Long-term contract assets |
— | 15,597 | 273,597 | 23,094 | 31 | 5 | ||||||||||||||||||
Total assets |
19,380,416 |
16,253,375 |
18,361,604 |
13,398,032 |
14,091,125 |
2,211,205 |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Short-term borrowings and interest payables |
7,979,415 | 3,860,441 | 1,049,570 | — | — | — | ||||||||||||||||||
Long-term borrowings and interest payables |
510,024 | 413,400 | — | 102,415 | 145,312 | 22,803 | ||||||||||||||||||
Convertible senior notes |
— | — | 2,339,552 | 822,005 | 681,401 | 106,927 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total liabilities |
9,840,049 |
5,432,762 |
6,437,552 |
1,488,188 |
1,567,586 |
245,988 |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Non-controlling interest |
— |
— |
— |
10,000 |
6,853 |
1,075 |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Qudian Inc. shareholders’ equity / (deficit) |
9,540,367 |
10,820,613 |
11,924,052 |
11,899,844 |
12,516,686 |
1,964,141 |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total shareholders’ equity / (deficit) |
9,540,367 |
10,820,613 |
11,924,052 |
11,909,844 |
12,523,539 |
1,965,217 |
||||||||||||||||||
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|
|
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|
(1) | Includes RMB549.8 million deposited in the Group’s Alipay accounts as of December 31, 2017. Such amount is unrestricted as to withdrawal and use and readily available to the Group on demand. |
For the year ended December 31, |
||||||||||||||||||||||||
2017 |
2018 |
2019 |
2020 |
2021 |
||||||||||||||||||||
RMB |
RMB |
RMB |
RMB |
RMB |
US$ |
|||||||||||||||||||
(in thousands) |
||||||||||||||||||||||||
Adjusted net income attributable to Qudian Inc.’s shareholders (1) |
2,228,515 | 2,549,297 | 3,351,587 | 382,344 | 612,372 | 96,095 |
(1) | Defined as net income attributable to Qudian Inc.’s shareholders excluding share-based compensation expenses and convertible senior notes buyback income. |
For the year ended December 31, |
||||||||||||||||||||||||
2017 |
2018 |
2019 |
2020 |
2021 |
||||||||||||||||||||
RMB |
RMB |
RMB |
RMB |
RMB |
US$ |
|||||||||||||||||||
(in thousands) |
||||||||||||||||||||||||
Net income attributable to Qudian Inc.’s shareholders |
2,164,459 | 2,491,316 | 3,264,288 | 958,819 | 589,074 | 92,439 | ||||||||||||||||||
Add: share-based compensation expenses |
64,056 | 57,981 | 87,299 | 45,634 | 35,345 | 5,546 | ||||||||||||||||||
Less: Convertible senior notes buyback income |
— | — | — | 622,109 | 12,047 | 1,890 | ||||||||||||||||||
Adjusted net income attributable to Qudian Inc.’s shareholders |
2,228,515 | 2,549,297 | 3,351,587 | 382,344 | 612,372 | 96,095 |
For the year ended December 31, |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent Company |
Subsidiaries of Parent Company |
Group VIEs |
Elimination |
Consolidated |
Parent Company |
Subsidiaries of Parent Company |
Group VIEs |
Elimination |
Consolidated |
Parent Company |
Subsidiaries of Parent Company |
Group VIEs |
Elimination |
Consolidated |
||||||||||||||||||||||||||||||||||||||||||||||
(RMB in thousands) |
(RMB in thousands) |
(RMB in thousands) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues |
— | 2,809,433 | 8,049,577 | (2,018,966 | ) | 8,840,044 | — | 462,334 | 3,549,458 | (323,818 | ) | 3,687,974 | — | 551,534 | 1,600,712 | (498,203 | ) | 1,654,043 | ||||||||||||||||||||||||||||||||||||||||||
Income from subsidiaries and VIEs |
3,374,438 | — | — | (3,374,438 | ) | — | 414,868 | — | — | (414,868 | ) | — | 639,520 | — | — | (639,520 | ) | — | ||||||||||||||||||||||||||||||||||||||||||
Net income/(loss) |
3,264,288 | (66,492 | ) | 3,440,930 | (3,374,438 | ) | 3,264,288 | 958,819 | (147,604 | ) | 562,472 | (414,868 | ) | 958,819 | 589,074 | (232,100 | ) | 868,473 | (639,520 | ) | 585,927 |
For the year ended December 31, |
||||||||||||||||||||||||||||||||||||||||
2020 |
2021 |
|||||||||||||||||||||||||||||||||||||||
Parent Company |
Subsidiaries of Parent Company |
Group VIEs |
Elimination |
Consolidated |
Parent Company |
Subsidiaries of Parent Company |
Group VIEs |
Elimination |
Consolidated |
|||||||||||||||||||||||||||||||
(RMB in thousands) |
(RMB in thousands) |
|||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents |
813,176 | 149,933 | 574,449 | — | 1,537,558 | 558,272 | 123,342 | 1,383,881 | — | 2,065,495 | ||||||||||||||||||||||||||||||
Restricted cash |
— | 128,879 | 6,525 | — | 135,404 | — | 158,332 | 19,593 | — | 177,925 | ||||||||||||||||||||||||||||||
Total current assets |
2,557,157 | 2,354,790 | 11,044,967 | (4,266,438 | ) | 11,690,476 | 2,353,746 | 2,799,127 | 11,767,368 | (4,702,152 | ) | 12,218,089 | ||||||||||||||||||||||||||||
Investments in subsidiaries |
10,178,732 | — | — | (10,178,732 | ) | — | 10,850,691 | — | — | (10,850,691 | ) | — | ||||||||||||||||||||||||||||
Total non-current assets |
10,178,732 | 345,467 | 1,360,689 | (10,177,332 | ) | 1,707,556 | 10,850,691 | 105,027 | 1,744,115 | (10,826,796 | ) | 1,873,037 | ||||||||||||||||||||||||||||
Total assets |
12,735,889 | 2,700,257 | 12,405,656 | (14,443,770 | ) | 13,398,032 | 13,204,437 | 2,904,154 | 13,511,483 | (15,528,948 | ) | 14,091,126 | ||||||||||||||||||||||||||||
Total current liabilities |
14,041 | 3,211,596 | 1,541,885 | (4,294,914 | ) | 472,608 | 6,351 | 3,673,560 | 1,339,052 | (4,525,446 | ) | 493,517 | ||||||||||||||||||||||||||||
Total non-current liabilities |
822,005 | 881 | 184,761 | 7,933 | 1,015,580 | 681,401 | — | 592,668 | (200,000 | ) | 1,074,069 | |||||||||||||||||||||||||||||
Total liabilities |
836,046 | 3,212,477 | 1,726,646 | (4,286,981 | ) | 1,488,188 | 687,752 | 3,673,560 | 1,931,720 | (4,725,446 | ) | 1,567,586 |
For the year ended December 31, |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent Company |
Subsidiaries of Parent Company |
Group VIEs |
Elimination |
Consolidated |
Parent Company |
Subsidiaries of Parent Company |
Group VIEs |
Elimination |
Consolidated |
Parent Company |
Subsidiaries of Parent Company |
Group VIEs |
Elimination |
Consolidated |
||||||||||||||||||||||||||||||||||||||||||||||
(RMB in thousands) |
(RMB in thousands) |
(RMB in thousands) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flows generated from/(used in) operating activities |
(5,822 | ) | 2,671,753 | 4,362,960 | (1,525,502 | ) | 5,503,389 | (223,271 | ) | (86,145 | ) | 2,250,346 | 530,782 | 2,471,712 | (11,537 | ) | 1,003,060 | 747,408 | (816,866 | ) | 922,065 | |||||||||||||||||||||||||||||||||||||||
Cash flows (used in)/generated from investing activities |
330,197 | (785,183 | ) | (842,120 | ) | 367,547 | (929,559 | ) | 1,497,131 | (135,982 | ) | (2,252,530 | ) | (2,378,495 | ) | (3,269,876 | ) | (132,143 | ) | (927,961 | ) | 645,957 | 167,567 | (246,580 | ) | |||||||||||||||||||||||||||||||||||
Cash flows generated from/(used in) financing activities |
9,588 | (1,684,664 | ) | (2,855,955 | ) | 1,158,696 | (3,372,335 | ) | (1,522,314 | ) | (734,396 | ) | (1,429,390 | ) | 2,094,828 | (1,591,272 | ) | (127,088 | ) | (108,221 | ) | (571,156 | ) | 722,273 | (84,192 | ) | ||||||||||||||||||||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
100,138 | (23,320 | ) | — | (741 | ) | 76,077 | 84,221 | 106,134 | 571 | (247,115 | ) | (56,189 | ) | 15,864 | 35,984 | 291 | (72,974 | ) | (20,835 | ) | |||||||||||||||||||||||||||||||||||||||
Net increase/(decrease) in cash, cash equivalents and restricted cash |
434,101 | 178,586 | 664,885 | — | 1,277,572 | (164,233 | ) | (850,389 | ) | (1,431,003 | ) | — | (2,445,625 | ) | (254,904 | ) | 2,862 | 822,500 | — | 570,458 |
B. |
Capitalization and Indebtedness |
C. |
Reasons for the Offer and Use of Proceeds |
D. |
Risk Factors |
• | |
• | The Group has very limited experience in offering ready-to-cook meals, and the Group is likely to incur loss initially as a result of operating such business. |
• | We intend to continue to explore new business opportunities, and such new businesses may not deliver the expected benefits. |
• | Changes in food costs and availability could materially adversely affect the QD Food business. |
• | Food safety and food-borne illness incidents or advertising or product mislabeling may materially adversely affect the QD Food business by exposing the Group to lawsuits, product recalls or regulatory enforcement actions, increasing the Group’s operating costs and reducing demand for its product offerings. |
• | From time to time the Group may evaluate and potentially consummate strategic investments or acquisitions, which could require significant management attention, disrupt its business and materially and adversely affect its financial results. |
• | The Group relies on its proprietary credit assessment model and risk management system in the determination of credit approval and credit limit assignment. If the Group’s proprietary credit assessment model and risk management system fail to perform effectively, such failure may materially and adversely impact the Group’s operating results. |
• | If the Group is unable to effectively manage delinquency rates for transactions facilitated by it, its business and results of operations may be materially and adversely affected. Further, historical delinquency rates may not be indicative of future results. |
• | Increase in the delinquency rate of on-balance sheet transactions would increase the Group’s allowance for loan principal and financing service fee receivables and provision for loan principal and financing service fee receivables, which could have a material adverse effect on the Group’s business, results of operations and financial positions. |
• | Increase in the amount of off-balance sheet transactions may lead to higher changes in guarantee liabilities and risk assurance liabilities and the Group’s business and results of operations may be materially and adversely affected. |
• | If the PRC government deems that the contractual arrangements in relation to the Group VIEs do not comply with PRC regulatory restrictions on foreign investment in the relevant industries, or if these regulations or the interpretation of existing regulations change in the future, we could be subject to severe penalties or be forced to relinquish our interests in those operations. |
• | Our contractual arrangements with the Group VIEs may result in adverse tax consequences to the Group. |
• | We rely on contractual arrangements with the Group VIEs and their shareholders to operate the our business, which may be less effective as direct ownership in providing operational control and otherwise have a material adverse effect as to our business. |
• | The shareholders of the Group VIEs may have potential conflicts of interest with us, which may materially and adversely affect our business and financial condition. |
• | Our corporate actions will be substantially controlled by our founder, chairman and chief executive officer, Mr. Min Luo, who will have the ability to control or exert significant influence over important corporate matters that require approval of shareholders, which may deprive you of an opportunity to receive a premium for your ADSs and materially reduce the value of your investment. |
• | Changes in the political and economic policies of the PRC government may materially and adversely affect the Group’s business, financial condition and results of operations and may result in the Group’s inability to sustain its growth and expansion strategies. |
• | There are uncertainties regarding the interpretation and enforcement of PRC laws, rules and regulations. In addition, rules and regulations in China can change quickly with little advance notice. |
• | The audit report included in this annual report is prepared by an auditor who is not inspected by the U.S. Public Company Accounting Oversight Board and, as such, our investors are deprived of the benefits of such inspection. |
• | Our ADSs will be prohibited from trading in the United States under the Holding Foreign Companies Accountable Act, or the HFCA Act, in 2024 if the PCAOB is unable to inspect or fully investigate auditors located in China, or 2023 if proposed changes to the law are enacted. The delisting of our ADSs, or the threat of their being delisted, may materially and adversely affect the value of your investment. |
• | The opinions on supervision of illegal securities activities issued by the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council may subject us to additional compliance requirements in the future. |
• | The China Securities Regulatory Commission, or the CSRC, has released for public consultation the draft rules to exert more oversight and control over offerings that are conducted overseas and foreign investment in China-based issuers, which could significantly limit or completely hinder our ability to offer our securities to overseas investors and could cause the value of our ADSs to significantly decline. |
• | PRC regulations relating to investments in offshore companies by PRC residents may subject our PRC-resident beneficial owners or our PRC subsidiaries to liability or penalties, limit our ability to inject capital into our PRC subsidiaries or limit our PRC subsidiaries’ ability to increase their registered capital or distribute profits. |
• | Any failure to comply with PRC regulations regarding our employee share incentive plans may subject the PRC plan participants or us to fines and other legal or administrative sanctions. |
• | We rely to a significant extent on dividends and other distributions on equity paid by our principal operating subsidiaries to fund offshore cash and financing requirements. |
• | The trading price of our ADSs may be volatile, which could result in substantial losses to you. |
• | If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, the market price for our ADSs and trading volume could decline. |
• | Because we do not expect to pay dividends in the foreseeable future, you must rely on price appreciation of our ADSs for return on your investment. |
• | difficulties in assimilating and integrating the operations, personnel, systems, data, technologies, products and services of the acquired business; |
• | inability of the acquired technologies, products or businesses to achieve expected levels of revenue, profitability, productivity or other benefits including the failure to successfully further develop the acquired technology; |
• | difficulties in retaining, training, motivating and integrating key personnel; |
• | diversion of management’s time and resources from the Group’s normal daily operations and potential disruptions to the Group’s ongoing businesses; |
• | difficulties in maintaining uniform standards, controls, procedures and policies within the combined organizations; |
• | difficulties in retaining relationships with users, business partners, employees and other partners of the acquired business; |
• | risks of entering markets in which the Group has limited or no prior experience; |
• | regulatory risks, including remaining in good standing with existing regulatory bodies or receiving any necessary pre-closing or post-closing approvals, as well as being subject to new regulators with oversight over an acquired business; |
• | assumption of contractual obligations that contain terms that are not beneficial to the Group, require the Group to license or waive intellectual property rights or increase the Group’s risk for liability; |
• | liability for activities of the acquired business before the acquisition, including intellectual property infringement claims, violations of laws, commercial disputes, tax liabilities and other known and unknown liabilities; and |
• | unexpected costs and unknown risks and liabilities associated with strategic investments or acquisitions. |
• | maintain the effectiveness, quality and reliability of the Group’s systems; |
• | provide borrowers with a superior experience; |
• | engage a large number of quality borrowers with low delinquency rate; |
• | enhance and improve the Group’s credit assessment model and risk management system; |
• | enhance the quality of the Group’s funding sources; |
• | effectively manage and resolve borrower complaints; and |
• | effectively protect personal information and privacy of borrowers. |
• | become delinquent in the payment of an outstanding obligation; |
• | defaulted on a pre-existing debt obligation; |
• | taken on additional debt; or |
• | sustained other adverse financial events. |
• | the Group’s ability to attract new borrowers and maintain relationships with existing borrowers; |
• | the amount of transactions; |
• | the mix of products the Group offers; |
• | delinquency rates of transactions the Group facilitates; |
• | the amount and timing of cost of revenues and operating expenses related to acquiring borrowers and the maintenance and expansion of the Group’s business, operations and infrastructure; |
• | the Group’s ability to establish relationship with additional institutional funding partners and maintain relationships with existing institutional funding partners; |
• | the Group’s ability to secure funding for credit the Group facilitates on reasonable terms; |
• | performance of the Group’s non-credit businesses; |
• | the timing of expenses related to the development or acquisition of technologies or businesses; |
• | network outages or security breaches; |
• | general economic, industry and market conditions; and |
• | changes in applicable laws and regulations. |
• | the trade war between the two countries since 2018; |
• | the COVID-19 pandemic; |
• | the PRC National People’s Congress’ passage of Hong Kong national security legislation; |
• | the imposition of U.S. sanctions on certain Chinese officials from China’s central government and the Hong Kong Special Administrative Region by the U.S. government, and the imposition of sanctions on certain individuals from the U.S. by the Chinese government; |
• | various executive orders issued by the U.S. government, which include, among others, |
• | the executive order issued in August 2020, as supplemented and amended from time to time, that prohibits certain transactions with ByteDance Ltd., Tencent Holdings Ltd. and the respective subsidiaries of such companies; |
• | the executive order issued in November 2020, as supplemented and amended from time to time, including, among others, by an executive order issued in June 2021, that prohibits U.S. persons from transacting publicly traded securities of certain Chinese companies named in such executive order; |
• | the executive order issued in January 2021, as supplemented and amended from time to time, that prohibits such transactions as are identified by the U.S. Secretary of Commerce with certain “Chinese connected software applications,” including Alipay and WeChat Pay; and |
• | the imposition and application of sanction blocking statutes by the Chinese government, including the Rules on Counteracting Unjustified Extra-territorial Application of Foreign Legislation and Other Measures promulgated by the MOFCOM, on January 9, 2021, which will apply to Chinese individuals or entities that are purportedly barred by a foreign country’s law from dealing with nationals or entities of a third country. |
• | revoking the Group’s business and operating licenses; |
• | levying fines on the Group; |
• | confiscating any of the Group’s income that they deem to be obtained through illegal operations; |
• | shutting down the Group’s services; |
• | discontinuing or restricting the Group’s operations in China; |
• | imposing conditions or requirements with which the Group may not be able to comply; |
• | requiring us to change our corporate structure and contractual arrangements; |
• | restricting or prohibiting the use of the proceeds from overseas offering to finance the Group VIEs’ business and operations; and |
• | taking other regulatory or enforcement actions that could be harmful to the Group’s business. |
• | the composition of our board of directors and, through it, any determinations with respect to the Group’s operations, business direction and policies, including the appointment and removal of officers; |
• | any determinations with respect to mergers or other business combinations; |
• | our disposition of substantially all of the Group’s assets; and |
• | any change in control. |
• | regulatory developments affecting the Group’s or its industry; |
• | announcements of studies and reports relating to the quality of the Group’s product offerings or those of our competitors; |
• | changes in the economic performance or market valuations of other consumer finance service providers; |
• | actual or anticipated fluctuations in the Group’s quarterly results of operations and changes or revisions of the Group’s expected results; |
• | changes in financial estimates by securities research analysts; |
• | conditions in the market for consumer finance services; |
• | announcements by us or our competitors of new product and service offerings, acquisitions, strategic relationships, joint ventures, capital raisings or capital commitments; |
• | additions to or departures of our senior management; |
• | fluctuations of exchange rates between the Renminbi and the U.S. dollar; |
• | release or expiry of lock-up or other transfer restrictions on our outstanding shares or ADSs; and |
• | sales or perceived potential sales of additional Class A ordinary shares or ADSs. |
• | the rules under the Exchange Act requiring the filing with the SEC of quarterly reports on Form 10-Q or current reports on Form 8-K; |
• | the sections of the Exchange Act regulating the solicitation of proxies, consents, or authorizations in respect of a security registered under the Exchange Act; |
• | the sections of the Exchange Act requiring insiders to file public reports of their stock ownership and trading activities and liability for insiders who profit from trades made in a short period of time; and |
• | the selective disclosure rules by issuers of material nonpublic information under Regulation FD. |
• | have a majority of the board be independent (although all of the members of the audit committee must be independent under the Exchange Act); |
• | have a compensation committee or a nominating and corporate governance committee consisting entirely of independent directors; |
• | obtain shareholders’ approval for issuance of securities in certain situations; or |
• | have regularly scheduled executive sessions with only independent directors each year. |
ITEM 4. |
INFORMATION ON THE COMPANY |
A. |
History and Development of the Company |
B. |
Business Overview |
• | Installments. |
• | Durations. |
• | Prepayments. |
• | Penalty fee. |
• | Repayment method. |
• | Information Authentication . |
• | Restricted List Search . |
• | Admission Module . |
• | Redline Module . |
• | Enhanced Rule Module . |
Year Ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
(in thousands) |
||||||||||||||||
On-balance sheet transactions: |
||||||||||||||||
Credit drawdowns that were funded by institutional funding partners |
6,827,311 | 611,751 | — | — | ||||||||||||
Credit drawdowns transferred to institutional funding partners |
477,200 | — | — | — | ||||||||||||
Credit drawdowns funded through trusts(1) |
6,350,111 | 611,751 | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Credit drawdowns that were funded by the Group’s own capital |
15,933,116 | 17,683,191 | 14,636,497 | 2,296,786 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total on-balance sheet transactions |
22,760,427 | 18,294,942 | 14,636,497 | 2,296,786 | ||||||||||||
Off-balance sheet transactions |
38,080,279 | 97,879 | 128,368 | 20,144 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Transactions under the loan book business |
60,840,706 |
18,392,821 |
14,764,865 |
2,316,929 |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Transactions under the transaction services business |
23,683,642 |
4,020,778 |
352,402 |
55,300 |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
84,524,348 |
22,413,599 |
15,117,267 |
2,372,229 |
||||||||||||
|
|
|
|
|
|
|
|
(1) | Excludes credit drawdowns funded by the Group’s own capital through trusts. |
Year Ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
% |
||||||||||||
On-balance sheet transactions: |
||||||||||||
Credit drawdowns that were funded by institutional funding partners |
8.1 | 2.7 | — | |||||||||
Credit drawdowns transferred to institutional funding partners |
0.6 | — | — | |||||||||
Credit drawdowns funded through trusts(1) |
7.5 | 2.7 | — | |||||||||
|
|
|
|
|
|
|||||||
Credit drawdowns that were funded by the Group’s own capital |
18.9 | 78.9 | 96.8 | |||||||||
|
|
|
|
|
|
|||||||
Total on-balance sheet transactions |
26.9 |
81.6 |
96.8 |
|||||||||
|
|
|
|
|
|
|||||||
Off-balance sheet transactions |
45.1 | 0.5 | 0.8 | |||||||||
|
|
|
|
|
|
|||||||
Transactions under the loan book business |
72.0 |
82.1 |
97.7 |
|||||||||
|
|
|
|
|
|
|||||||
Transactions under the transaction services business |
28.0 |
17.9 |
2.3 |
|||||||||
|
|
|
|
|
|
|||||||
Total |
100.0 |
100.0 |
100.0 |
|||||||||
|
|
|
|
|
|
(1) | Excludes credit drawdowns funded by the Group’s own capital through trusts. |
• | maintaining and strengthening the Group’s proprietary data and analytics systems, including the Group’s decisioning engine, proprietary risk management system and fraud prevention system; and |
• | ensuring the Group’s technology system, including front-end and back-end management systems, collection systems, financial systems, security protocols and business continuity plans are well established, reviewed, tested and continuously strengthened. |
• | Financial systems . Systems that manage the external interface for funds transfers, including integration of the Group’s system with those of the institutional funding partners to ensure a seamless experience for the borrowers and the institutional funding partners, as well as for the management of daily financial and accounting, reconciliation and reporting functions. Such systems include, among others: |
• | Transaction syndication and clearing system. same-day basis. The system adapts to new funding arrangements quickly. For example, it typically takes two days to complete the configuration for a new trust and two weeks to do so for a new off-balance sheet funding arrangement with a bank. The advanced and efficient system allows the Group to quickly match demand with institutional funding with appropriate risk appetite, thereby providing credit to consumer instantaneously. |
• | Liquidity forecast system. |
• | Security . The Group collects and stores personally identifiable user information, including names, addresses, identification information and financial accounts information for the sole purpose of individual credit assessment. The Group retrieves this information with user’s consent and have safeguards designed to protect such information, including the application of Advanced Encryption Standard, or AES. The Group stores its data in encrypted form, which offers an additional layer of protection. The Group also verifies data interchange with its institutional funding partners using digital signatures, which enhances the security of such interchange. The Group also has created controls to limit employee access to such information and to monitor access. |
• | Front-end systems . Include external interfaces and mobile apps that users use when applying for credit and managing their accounts. |
• | Back-end management systemsback-end systems include, among other things, the Group’s user credit and repayment management system, merchandise procurement system, merchandise management system and user information management system. |
• | Collection systems . Primarily include contract management system, operational and marketing management system and automated phone system. |
Company Name |
Company Status |
Name of Permission/License |
Governing Government Authority | |||
Xiamen Youxiang Time Technology Co., Ltd.( 厦门优享时代科技服务有限公司) |
Our PRC subsidiary | Business License | Administration for Market Regulation of Xiamen City | |||
Xiamen Qu Plus Plus Technology Development Co., Ltd.( 厦门趣加加科技发展有限公司) |
Group VIE | Business License | Administration for Market Regulation Tong An District of Xiamen City | |||
ICP License | Fujian Communications Administration | |||||
Beijing Happy Time Technology Development Co., Ltd.( 北京快乐时代科技发展有限公司) |
Group VIE | Business License | Administration for Market Regulation Haidian District of Beijing City | |||
Qufenqi (Ganzhou) Information Technology Co., Ltd.( 趣分期(赣州)信息技术有限公司) |
Our PRC subsidiary | Business License | Administration for Market Regulation of Ganzhou City | |||
Xiamen Happy Time Technology Co., Ltd.( 厦门快乐时代科技有限公司) |
Our PRC subsidiary | Business License | Administration for Market Regulation of Xiamen City |
Company Name |
Company Status |
Name of Permission/License |
Governing Government Authority | |||
Xiamen Qudian Financial Lease Ltd.( 厦门趣店融资租赁有限公司) |
Our PRC subsidiary | Business License | Administration for Market Regulation of Xiamen City | |||
Ganzhou Qudian Technology Co., Ltd.( 赣州趣店科技有限公司) |
Group VIE | Business License | Administrative Examination and Approval Bureau of Ganzhou Economic Technological Development Zone | |||
Xiamen Qudian Technology Co., Ltd.( 厦门趣店科技有限公司) |
Group VIE | Business License | Administration for Market Regulation of Xiamen City | |||
Service Provider License | Ministry of Industry and Information Technology of the PRC | |||||
ICP License | Fujian Communications Administration | |||||
ODPTP License | Fujian Communications Administration | |||||
Xiamen Weipujia Technology Co., Ltd.( 厦门唯谱家科技有限公司) |
Group VIE | Business License | Administration for Market Regulation of Xiamen City | |||
Tianjin Happy Time Technology Development Co., Ltd.( 天津快乐时代科技发展有限公司) |
Subsidiary of a Group VIE | Business License | Administration for Market Regulation of Sino-Singapore Tianjin Eco-City | |||
Tianjin Qufenqi Technology Co., Ltd.( 天津趣分期科技有限公司 ) |
Subsidiary of a Group VIE | Business License | Administration for Market Regulation of Sino-Singapore Tianjin Eco-City | |||
Qufenqi (Beijing) Information Technology Co., Ltd. ( 趣分期(北京)信息技术有限公司) |
Subsidiary of a Group VIE | Business License | Administration for Market Regulation Haidian District of Beijing City | |||
ICP License | Beijing Communications Administration |
Company Name |
Company Status |
Name of Permission/License |
Governing Government Authority | |||
Ganzhou Happy Fenqi Network Service Co., Ltd.( 赣州快乐分期网络服务有限公司) |
Subsidiary of a Group VIE | Food Production License | Food and Drug Administration of Ganzhou Economic Technological Development Zone of Ganzhou City | |||
Business License | Administration for Market Regulation of Ganzhou City | |||||
Fuzhou High-tech Zone Microcredit Co., Ltd.( 抚州高新区趣分期小额贷款有限公司) |
Subsidiary of a Group VIE | Business License | Administration for Market Regulation of Fuzhou City | |||
Fuzhou Happy Time Technology Development Co., Ltd.( 抚州快乐时代科技发展有限公司) |
Subsidiary of a Group VIE | Business License | Administration for Market Regulation of Fuzhou City | |||
Fuzhou Happy Time Technology Co., Ltd.( 赣州快乐时代电子商务有限公司) |
Subsidiary of a Group VIE | Business License | Administration for Market Regulation of Ganzhou City | |||
Yihuang Qudian Technology Development Co., Ltd. ( 宜黄县趣店科技发展有限公司) |
Subsidiary of a Group VIE | Business License | Administration for Market Regulation of Yihuang County | |||
Xiamen Youqi Technology Co., Ltd.( 厦门友契科技有限公司) |
Our PRC subsidiary | Business License | Administration for Market Regulation of Siming District of Xiamen City | |||
Xiamen Youdun Technology Co., Ltd. ( 厦门友盾科技有限公司) |
Our PRC subsidiary | Business License | Administration for Market Regulation of Canghai District of Xiamen City | |||
Xiamen Xincheng Youda Financing Guarantee Ltd.( 厦门信诚友达融资担保有限公司) |
Our PRC subsidiary | Business License | Administration for Market Regulation of Xiamen City | |||
Financing Guarantee Business Permit | Local Financial Supervision and Administration of Xiamen City | |||||
Xinjiang Qudian Technology Co., Ltd.( 新疆趣店科技有限公司 ) |
Subsidiary of a Group VIE | Business License | Administration for Market Regulation of Khorgas City |
Company Name |
Company Status |
Name of Permission/License |
Governing Government Authority | |||
Xiamen Wanlimu Growth Technologies Co., Ltd.( 厦门万里目成长科技有限公司) |
Subsidiary of a Group VIE | Business License | Administration for Market Regulation of Xiamen City | |||
ICP License | Fujian Communications Administration | |||||
Network Culture Business Permit | Department of Culture and Tourism of Fujian Province | |||||
Permit to Produce or Operate Radio and Television Programs | Fujian Radio and Television Commercials Bureau | |||||
Xiamen Qudian Commercial Factoring Co., Ltd.( 厦门趣店商业保理有限公司) |
Subsidiary of a Group VIE | Business License | Administration for Market Regulation of Xiamen City | |||
Xiamen Junda Network Technology Co., Ltd.( 厦门均达网络科技有限公司) |
Subsidiary of a Group VIE | Business License | Administration for Market Regulation of Siming District of Xiamen City | |||
Xiamen Wanlimu Technology Co., Ltd.( 厦门万里目科技有限公司) |
Subsidiary of a Group VIE | Business License | Administration for Market Regulation of Xiamen City | |||
ICP License | Fujian Communications Administration | |||||
Xiamen Wanlimu Luxuries Co., Ltd.( 厦门万里目奢侈品有限公司) |
Subsidiary of a Group VIE | Business License | Administration for Market Regulation of Xiamen City | |||
Xiamen Wanlimu Children’s Growth Education Technology Co., Ltd.( 厦门万里目少儿成长教育科技有限公司) |
Subsidiary of a Group VIE | Business License | Administration for Market Regulation of Siming District of Xiamen City | |||
Food Production License | Administration for Market Regulation of Siming District of Xiamen City | |||||
Licensing for Operation of High-risk Sports Projects | Culture and Tourism Bureau of Siming District of Xiamen City | |||||
Hygiene License | Health Bureau of Siming District of Xiamen City |
Company Name |
Company Status |
Name of Permission/License |
Governing Government Authority | |||
Shenzhen Qudian Supply Chain Co., Ltd.( 深圳趣店供应链有限公司) |
Subsidiary of a Group VIE | Business License | Administration for Market Regulation of Shenzhen City | |||
Filing for selling ready-to-cook |
Administration for Market Regulation of Nanshan District of Shenzhen City |
• | The overall capital cost charged on a borrower, comprised of interests and fees, should be in compliance with the judicial interpretations by the Supreme People’s Court of the PRC regarding interest rates in private lending; according to the Private Lending Judicial Interpretations, if the annual interest rate of a private loan is higher than 36%, the excess will be void and will not be enforced by the courts; |
• | A provider of cash loan shall not deduct interests, service fees, management fees or deposits from the loan principal or set excessive overdue interest, late fee or penalty interest; |
• | A bank may not outsource its core business functions, such as credit assessment and risk management, to third parties; |
• | A bank participating in loan facilitation transactions may not accept credit enhancement services from a third party which has not obtained any license or approval to provide guarantees, including credit enhancement service in the form of a commitment to assume default risks; and |
• | A bank may not permit its service provider in cash loan business to collect interest or fees from borrowers. |
C. |
Organizational Structure |
(1) | Investors in our ADSs hold equity interest in Qudian Inc., which does not conduct operations. |
(2) | Mr. Min Luo, our founder, chairman and chief executive officer, and Mr. Lianzhu Lv, our head of user experience department, respectively hold 99.0% and 1.0% of equity interests in Ganzhou Qudian. |
(3) | The following table sets forth the shareholders of Beijing Happy Time, their respective equity interests in Beijing Happy Time as of the date of this annual report. |
Shareholders |
Amount of Registered Capital |
Percentage of Equity Interests |
||||||
RMB |
||||||||
Mr. Min Luo |
5,025,579 | 21.0 | ||||||
Phoenix Auspicious Internet Investment L.P. and Shenzhen Guosheng Qianhai Investment Co., Ltd. |
4,596,670 | 19.2 | ||||||
Beijing Kunlun Tech Co., Ltd. |
4,587,496 | 19.2 | ||||||
Ningbo Yuanfeng Venture Capital L.P.(a) |
3,757,355 | 15.7 | ||||||
Shanghai Yunxin Venture Capital Co., Ltd.(a) |
2,985,744 | 12.5 | ||||||
Jiaxing Blue Run Quchuan Investment L.P. and Tianjin Blue Run Xinhe Investment Center L.P.(a) |
1,681,366 | 7.0 | ||||||
Tianjin Happy Share Asset Management L.P., referred to as Tianjin Happy Share(b) |
1,251,742 | 5.2 |
(a) | Ningbo Yuanfeng Venture Capital L.P., Shanghai Yunxin Venture Capital Co., Ltd., Jiaxing Blue Run Quchuan Investment L.P. and Tianjin Blue Run Xinhe Investment Center L.P. entered into a series of agreements to transfer their respective equity interest in Beijing Happy Time to Mr. Min Luo in October 2020. We are still in the process of completing the registration of such share transfer with the relevant regulatory authorities. |
(b) | Tianjin Happy Share was established in connection with the share incentive plan of Beijing Happy Time. For more information, see “Item 6. Directors, Senior Management and Employees — B. Compensation — 2015 Share Incentive Plan.” |
(4) | Mr. Min Luo, our founder, chairman and chief executive officer, and Mr. Long Xu, our director, respectively hold 99.9% and 0.1% of equity interests in Xiamen Qu Plus Plus Technology Development Co., Ltd. |
(5) | Main subsidiaries of Ganzhou Qudian include Xiamen Qudian Commercial Factoring Co., Ltd., Ganzhou Qudian Commerce Development Co., Ltd., Xiamen Junda Network Technology Co., Ltd., Xinjiang Qudian Technology Co., Ltd. and Xiamen Wanlimu Growth, which we expect to utilize to explore new business opportunities. |
(6) | Main subsidiaries of Xiamen Qudian include Xiamen Wanlimu Technology Co., Ltd., Xiamen Qudian Culture and Technology Co., Ltd., Global Select (HK) Limited, Qu Plus Plus (HK) Limited and Xiamen Wanlimu Luxuries Co., Ltd. |
(7) | Main subsidiaries of Beijing Happy Time include Fuzhou Happy Time Technology Development Co., Ltd., Tianjin Happy Time Technology Development Co., Ltd., Tianjin Qufenqi Technology Co., Ltd, Ganzhou Happy Fenqi Network Service Co., Ltd., Ganzhou and Fuzhou High-tech Zone Microcredit Co., Ltd. Bejing Happy Time currently operates the Group’s websites and mobile apps under the Laifenqi brand. |
• | exercise effective control over each of the Group VIEs and its subsidiaries; |
• | receive substantially all the economic benefits of each of the Group VIEs; and |
• | have an exclusive option to purchase all or part of the equity interests in the equity interest in or all or part of the assets of each of the Group VIEs when and to the extent permitted by PRC law. |
• | the ownership structures of Ganzhou Qufenqi, Xiamen Youxiang and the Group VIEs in China do not violate any applicable PRC law, regulation, or rule currently in effect; and |
• | the contractual arrangements among Ganzhou Qufenqi or Xiamen Youxiang, as applicable, each of the Group VIEs and its shareholders governed by PRC laws are valid, binding and enforceable in accordance with their terms and applicable PRC laws, rules, and regulations currently in effect, and will not violate any applicable PRC law, regulation, or rule currently in effect. |
D. |
Facilities |
ITEM 4A. |
UNRESOLVED STAFF COMMENTS |
ITEM 5. |
OPERATING AND FINANCIAL REVIEW AND PROSPECTS |
A. |
Operating Results |
• | enhance brand recognition and acquire users in a cost-efficient manner; |
• | design and offer products that meet consumer demand; |
• | manage supply chain and inventory; |
• | enhance operational efficiency; and |
• | fulfill users’ orders in a timely manner. |
As of December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
(in thousands) |
||||||||||||
Registered users |
79,463 | 81,937 | 83,668 | |||||||||
Outstanding borrowers |
6,116 | 3,472 | 2,793 | |||||||||
Cumulative number of borrowers |
19,037 | 19,067 | 19,071 |
Year Ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
(in thousands) |
||||||||||||||||
On-balance sheet transactions |
22,760,427 | 18,294,942 | 14,636,497 | 2,296,785 | ||||||||||||
Off-balance sheet transactions |
38,080,279 | 97,879 | 128,368 | 20,144 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Transactions under the loan book business |
60,840,706 |
18,392,821 |
14,764,865 |
2,316,929 |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Transactions under the transaction services business |
23,683,642 |
4,020,778 |
352,402 |
55,300 |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
84,524,348 |
22,413,599 |
15,117,267 |
2,372,229 |
||||||||||||
|
|
|
|
|
|
|
|
Year Ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
(in thousands) |
||||||||||||||||
On-balance sheet transactions |
9,286,416 | 4,718,031 | 2,596,741 | 407,485 | ||||||||||||
Off-balance sheet transactions |
13,254,755 | 83,723 | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Transactions under the loan book business |
22,541,171 |
4,801,755 |
2,596,741 |
407,485 |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Transactions under the transaction services business |
15,594,775 |
5,135,404 |
2,712,210 |
425,605 |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
38,135,946 |
9,937,159 |
5,308,951 |
833,090 |
||||||||||||
|
|
|
|
|
|
|
|
Delinquent for |
||||||||||||||||||||||||
1-30 calendar days |
31-60 calendar days |
61-90 calendar days |
More than 90 calendar days |
Total |
||||||||||||||||||||
RMB |
RMB |
RMB |
RMB |
RMB |
US$ |
|||||||||||||||||||
(in thousands) |
||||||||||||||||||||||||
As of |
||||||||||||||||||||||||
December 31, 2019 |
314,330 | 212,627 | 185,994 | 629,975 | 1,342,926 | 192,899 | ||||||||||||||||||
December 31, 2020 |
51,673 | 45,871 | 53,291 | 254,885 | 405,720 | 62,179 | ||||||||||||||||||
December 31, 2021 |
43,285 | 32,716 | 28,694 | 91,017 | 195,712 | 30,711 |
Delinquent for |
||||||||||||||||||||
1-30 calendar days |
31-60 calendar days |
61-90 calendar days |
Total |
|||||||||||||||||
RMB |
RMB |
RMB |
RMB |
US$ |
||||||||||||||||
(in thousands) |
||||||||||||||||||||
As of |
||||||||||||||||||||
December 31, 2019 |
6,233 | 8,118 | 10,669 | 25,019 | 3,594 | |||||||||||||||
December 31, 2020 |
1,109 | 1,551 | 2,557 | 5,217 | 800 | |||||||||||||||
December 31, 2021 |
651 | 821 | 927 | 2,398 | 376 |
(1) | Financing service fees are reversed post 90 calendar days. |
Year Ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
(in thousands) |
||||||||||||||||
Amount recovered past due payments for principal |
461,822 | 580,048 | 289,497 | 45,428 | ||||||||||||
Amount recovered past due payments for financing service fees |
52,730 | 58,223 | 23,119 | 3,628 |
Year Ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
(in thousands) |
||||||||||||||||
Amount charged off |
1,215,718 | 2,127,088 | 387,018 | 60,732 |
Year Ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
Provision ratio |
9.49 | % | 7.84 | % | (1.33 | %) |
As of December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
M1+ delinquency coverage ratio |
1.5x | 2.4x | 1.8x |
Year Ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
% |
||||||||||||
Charge-off ratio |
5.34 | % | 11.63 | % | 2.64 | % |
Year Ended December 31, |
||||||||||||||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||||||||||||||
RMB |
% of total revenues |
RMB |
% of total revenues |
RMB |
US$ |
% of total revenues |
||||||||||||||||||||||
(in thousands, except for percentages) |
||||||||||||||||||||||||||||
Revenues |
||||||||||||||||||||||||||||
Financing income |
3,510,055 | 39.7 | 2,102,665 | 57.0 | 1,255,488 | 197,014 | 75.9 | |||||||||||||||||||||
Sales commission fee |
356,812 | 4.0 | 80,992 | 2.2 | 35,411 | 5,557 | 2.1 | |||||||||||||||||||||
Sales income and others |
431,946 | 4.9 | 610,793 | 16.5 | 100,668 | 15,797 | 6.1 | |||||||||||||||||||||
Penalty fees |
44,354 | 0.5 | 72,235 | 2.0 | 67,316 | 10,563 | 4.1 | |||||||||||||||||||||
Guarantee income |
— | — | 826,198 | 22.4 | 3,935 | 617 | 0.2 | |||||||||||||||||||||
Loan facilitation income and other related income |
2,297,413 | 26.0 | 131,633 | 3.6 | 39,531 | 6,203 | 2.4 | |||||||||||||||||||||
Transaction services fee and other related income |
2,199,464 | 24.9 | (136,542 | ) | (3.7 | ) | 151,694 | 23,804 | 9.2 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total revenues |
8,840,044 |
100.0 |
3,687,974 |
100.0 |
1,654,043 |
259,555 |
100.0 |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
||||||||||||||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||||||||||||||
RMB |
% |
RMB |
% |
RMB |
US$ |
% |
||||||||||||||||||||||
(in thousands, except for percentages) |
||||||||||||||||||||||||||||
Cost of revenues and operating expenses: |
||||||||||||||||||||||||||||
Cost of revenues |
901,788 | 10.2 | 862,354 | 23.4 | 298,726 | 46,877 | 18.1 | |||||||||||||||||||||
Sales and marketing |
280,616 | 3.2 | 293,282 | 8.0 | 127,376 | 19,988 | 7.7 | |||||||||||||||||||||
General and administrative |
286,059 | 3.2 | 285,905 | 7.7 | 443,276 | 69,560 | 26.8 | |||||||||||||||||||||
Research and development |
204,781 | 2.3 | 170,691 | 4.6 | 141,264 | 22,167 | 8.5 | |||||||||||||||||||||
Changes in guarantee liabilities and risk assurance liabilities |
1,143,427 | 12.9 | (87,894 | ) | (2.4 | ) | (201,602 | ) | (31,636 | ) | (12.2 | ) | ||||||||||||||||
Provision for receivables and other assets |
2,283,126 | 25.8 | 1,641,362 | 44.5 | (151,817 | ) | (23,823 | ) | (9.2 | ) | ||||||||||||||||||
Impairment loss from long-lived assets |
— | — | — | — | 156,394 | 24,542 | 9.5 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
5,099,797 |
57.6 |
3,165,700 |
85.8 |
813,617 |
127,675 |
49.2 |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
||||||||||||||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||||||||||||||
RMB |
% |
RMB |
% |
RMB |
US$ |
% |
||||||||||||||||||||||
(in thousands, except for percentages) |
||||||||||||||||||||||||||||
Cost of revenues: |
||||||||||||||||||||||||||||
Cost of goods sold |
366,015 | 4.1 | 645,083 | 17.5 | 78,533 | 12,324 | 4.7 | |||||||||||||||||||||
Cost of other revenues |
535,773 | 6.1 | 217,271 | 5.9 | 220,193 | 34,553 | 13.3 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
901,788 |
10.2 |
862,354 |
23.4 |
298,726 |
46,877 |
18.1 |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
||||||||||||||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||||||||||||||
RMB |
% |
RMB |
% |
RMB |
US$ |
% |
||||||||||||||||||||||
(in thousands, except for percentages) |
||||||||||||||||||||||||||||
Provision for receivables and other assets |
2,283,126 | 25.8 | 1,641,362 | 44.5 | (151,817 | ) | (23,823 | ) | (9.2 | ) |
Year Ended December 31, |
||||||||||||||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||||||||||||||
RMB |
% |
RMB |
% |
RMB |
US$ |
% |
||||||||||||||||||||||
(in thousands, except for percentages) |
||||||||||||||||||||||||||||
Sales and marketing |
4,482 | 0.1 | 1,912 | 0.1 | 1,727 | 271 | 0.1 | |||||||||||||||||||||
General and administrative |
74,312 | 0.8 | 40,895 | 1.1 | 29,684 | 4,658 | 0.3 | |||||||||||||||||||||
Research and development |
8,505 | 0.1 | 2,827 | 0.1 | 3,934 | 617 | 0.1 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
87,299 |
1.0 |
45,634 |
1.3 |
35,345 |
5,546 |
0.5 |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
• | Identify the contract(s) with a customer; |
• | Identify the performance obligations in the contract; |
• | Determine the transaction price; |
• | Allocate the transaction price to the performance obligations in the contract; and |
• | Recognize revenue when (or as) the entity satisfies a performance obligation. |
Year Ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
(in thousands, except for share and per share data) |
||||||||||||||||
Revenues: |
||||||||||||||||
Financing income |
3,510,055 | 2,102,665 | 1,255,488 | 197,014 | ||||||||||||
Sales commission fee |
356,812 | 80,992 | 35,411 | 5,557 | ||||||||||||
Sales income |
431,946 | 610,793 | 100,668 | 15,797 | ||||||||||||
Penalty fees |
44,354 | 72,235 | 67,316 | 10,563 | ||||||||||||
Guarantee income |
— | 826,198 | 3,935 | 617 | ||||||||||||
Loan facilitation income and other related income |
2,297,413 | 131,633 | 39,531 | 6,203 | ||||||||||||
Transaction services fee and other related income |
2,199,464 | (136,542 | ) | 151,694 | 23,804 | |||||||||||
Total revenues |
8,840,044 |
3,687,974 |
1,654,043 |
259,555 |
||||||||||||
Cost of revenues and operating expenses: |
||||||||||||||||
Cost of goods sold |
(366,015 | ) | (645,083 | ) | (78,533 | ) | (12,324 | ) | ||||||||
Cost of other revenues |
(535,773 | ) | (217,271 | ) | (220,193 | ) | (34,553 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total cost of revenues |
(901,788 |
) |
(862,354 |
) |
(298,726 |
) |
(46,877 |
) | ||||||||
Operating expenses: |
||||||||||||||||
Sales and marketing |
(280,616 | ) | (293,282 | ) | (127,376 | ) | (19,988 | ) | ||||||||
General and administrative |
(286,059 | ) | (285,905 | ) | (443,276 | ) | (69,560 | ) | ||||||||
Research and development |
(204,781 | ) | (170,691 | ) | (141,264 | ) | (22,167 | ) | ||||||||
Changes in guarantee liabilities and risk assurance liabilities |
(1,143,427 | ) | 87,894 | 201,602 | 31,636 | |||||||||||
Provision for receivables and other assets |
(2,283,126 | ) | (1,641,362 | ) | 151,817 | 23,823 | ||||||||||
Impairment loss from long-lived assets |
— | — | (156,394 | ) | (24,542 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating expenses |
(4,198,009 |
) |
(2,303,346 |
) |
(514,891 |
) |
(80,798 |
) | ||||||||
Other operating income |
108,508 | 343,324 | 82,273 | 12,912 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income from operations |
3,848,755 |
865,598 |
922,699 |
144,792 |
||||||||||||
Interest and investment income, net |
24,292 | 708,251 | 129,456 | 20,314 | ||||||||||||
Loss from equity method investments |
(3,420 | ) | (370,039 | ) | (221,798 | ) | (34,805 | ) | ||||||||
Unrealized gain on derivative instruments |
— | — | 17,375 | 2,727 | ||||||||||||
Foreign exchange gain/(loss), net |
6,635 | (107 | ) | (51 | ) | (8 | ) | |||||||||
Other income |
24,583 | 26,358 | 5,213 | 818 | ||||||||||||
Other expenses |
(10,323 | ) | (9,263 | ) | (6,485 | ) | (1,018 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income before income taxes |
3,890,522 |
1,220,798 |
846,409 |
132,820 |
||||||||||||
Income tax expenses |
(626,234 | ) | (261,979 | ) | (260,482 | ) | (40,875 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income |
3,264,288 |
958,819 |
585,927 |
91,945 |
||||||||||||
|
|
|
|
|
|
|
|
Year Ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
% |
||||||||||||
Revenues: |
||||||||||||
Financing income |
39.7 | 57.0 | 75.9 | |||||||||
Sales commission fee |
4.0 | 2.2 | 2.1 | |||||||||
Sales income |
4.9 | 16.5 | 6.1 | |||||||||
Penalty fees |
0.5 | 2.0 | 4.1 | |||||||||
Guarantee income |
— | 22.4 | 0.2 | |||||||||
Loan facilitation income and other related income |
26.0 | 3.6 | 2.4 | |||||||||
Transaction services fee and other related income |
24.9 | (3.7 | ) | 9.2 | ||||||||
|
|
|
|
|
|
|||||||
Total revenues |
100.0 |
100.0 |
100.0 |
|||||||||
Cost of revenues and operating expenses: |
||||||||||||
Cost of goods sold |
(4.1 | ) | (17.5 | ) | (4.8 | ) | ||||||
Cost of other revenues |
(6.1 | ) | (5.9 | ) | (13.3 | ) | ||||||
|
|
|
|
|
|
|||||||
Total cost of revenues |
(10.2 |
) |
(23.4 |
) |
(18.1 |
) | ||||||
Operating expenses: |
||||||||||||
Sales and marketing |
(3.2 | ) | (8.0 | ) | (7.7 | ) | ||||||
General and administrative |
(3.2 | ) | (7.7 | ) | (26.8 | ) | ||||||
Research and development |
(2.3 | ) | (4.6 | ) | (8.5 | ) | ||||||
Changes in guarantee liabilities and risk assurance liabilities |
(12.9 | ) | 2.4 | 12.2 | ||||||||
Provision for receivables and other assets |
(25.8 | ) | (44.5 | ) | 9.2 | |||||||
Impairment loss from long-lived assets |
— | — | (9.5 | ) | ||||||||
|
|
|
|
|
|
|||||||
Total operating expenses |
(47.5 |
) |
(62.4 |
) |
(31.1 |
) | ||||||
Other operating income |
1.2 |
9.3 |
5.0 |
|||||||||
|
|
|
|
|
|
|||||||
Income from operations |
43.5 |
23.5 |
55.8 |
|||||||||
Interest and investment income, net |
0.3 | 19.2 | 7.8 | |||||||||
Loss from equity method investments |
(0.1 | ) | (10.0 | ) | (13.4 | ) | ||||||
Unrealized gain on derivative instruments |
— | — | 1.1 | |||||||||
Foreign exchange gain/(loss), net |
0.1 | (0.0 | ) | (0.0 | ) | |||||||
Other income |
0.3 | 0.7 | 0.3 | |||||||||
Other expenses |
(0.1 | ) | (0.3 | ) | (0.4 | ) | ||||||
|
|
|
|
|
|
|||||||
Net income before income taxes |
44.0 |
33.1 |
51.2 |
|||||||||
Income tax expenses |
(7.1 | ) | (7.1 | ) | (15.7 | ) | ||||||
|
|
|
|
|
|
|||||||
Net income |
36.9 |
26.0 |
35.4 |
|||||||||
|
|
|
|
|
|
• | Cost of revenues. e-commerce platform. |
• | Sales and marketing expenses. e-commerce platform. |
• | General and administrative expenses. |
• | Research and development expenses. |
• | Changes in guarantee liabilities and risk assurance liabilities. off-balance sheet transactions. |
• | Provision for receivables and other assets. past-due on-balance sheet outstanding principal receivables compared to 2020. |
B. |
Liquidity and Capital Resources |
As of December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
(in thousands) |
||||||||||||||||
Total assets |
18,361,604 | 13,398,032 | 14,091,125 | 2,211,205 | ||||||||||||
Total liabilities |
6,437,552 | 1,488,188 | 1,567,586 | 245,988 | ||||||||||||
Total net assets |
11,924,052 | 11,909,844 | 12,523,539 | 1,965,217 |
(1) | Defined as total assets minus total liabilities. |
As of December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
(in thousands) |
||||||||||||||||
Short-term loan principal and financing service fee receivables |
7,894,697 | 3,940,461 | 2,371,966 | 372,213 | ||||||||||||
Long-term loan principal and financing service fee receivables |
424 | — | — | — | ||||||||||||
Short-term borrowings and interest payables |
1,049,570 | — | — | — | ||||||||||||
Long-term borrowings and interest payables (1) |
— | 102,415 | 145,312 | 22,803 |
(1) | Long-term borrowings and interest payable as of December 31, 2021 represent borrowings in connection with the construction in progress and are not related to credit products. |
Year Ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
(in thousands) |
||||||||||||||||
Summary Consolidated Cash Flow Data: |
||||||||||||||||
Net cash provided by operating activities |
5,503,389 | 2,471,712 | 922,065 | 144,692 | ||||||||||||
Net cash used in investing activities |
(929,559 | ) | (3,269,876 | ) | (246,580 | ) | (38,694 | ) | ||||||||
Net cash used in financing activities |
(3,372,335 | ) | (1,591,272 | ) | (84,192 | ) | (13,212 | ) | ||||||||
Cash and cash equivalents, and restricted cash and cash equivalent at beginning of period |
2,841,015 | 4,118,587 | 1,672,962 | 262,524 | ||||||||||||
Cash and cash equivalents, and restricted cash and cash equivalent at beginning of period |
4,118,587 | 1,672,962 | 2,243,420 | 352,042 |
Payment due by period |
||||||||||||||||||||||||
Total |
Less than 1 Year |
1-3 Years |
3-5 Years |
More than 5 Years |
||||||||||||||||||||
RMB |
US$ |
RMB |
||||||||||||||||||||||
(million) |
||||||||||||||||||||||||
Operating lease commitments |
253.7 | 39.8 | 40.3 | 56.3 | 49.0 | 108.1 | ||||||||||||||||||
Long-term borrowings and interest payable |
170.9 | 26.8 | 7.2 | 69.8 | 64.0 | 29.9 |
C. |
Research and Development, Patent and Licenses, etc. |
D. |
Trend Information |
E. |
Critical Accounting Estimates |
ITEM 6. |
DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES |
A. |
Directors and Senior Management |
Name |
Age |
Position/Title | ||||
Min Luo |
39 | Chairman and Chief Executive Officer | ||||
Long Xu |
39 | Director and Senior Vice President | ||||
Yingming Li |
44 | Director | ||||
Shengwen Rong |
54 | Independent Director | ||||
Yifan Li |
55 | Independent Director | ||||
Yan Gao |
41 | Vice President of Finance |
B. |
Compensation |
Name |
Position |
Ordinary Shares Underlying Options Awarded |
Option Exercise Price |
Grant Date |
Option Expiration Date | |||||||||||
Long Xu |
Director | * | US$ | 0.0 | February 23, 2016 | February 23, 2026 | ||||||||||
* | US$ | 0.0 | December 20, 2018 | December 20, 2028 | ||||||||||||
* | US$ | 0.0 | September 22, 2019 | September 22, 2029 | ||||||||||||
* | US$ | 0.0 | December 25, 2019 | December 25, 2029 | ||||||||||||
* | US$ | 0.0 | March 26, 2020 | March 26, 2030 | ||||||||||||
Yifan Li |
Independent director | * | US$ | 0.0 | October 17, 2017 | December 8, 2026 | ||||||||||
* | US$ | 0.0 | June 14, 2019 | June 14, 2029 | ||||||||||||
Shengwen Rong |
Independent director | * | US$ | 0.0 | November 30, 2018 | November 30, 2028 | ||||||||||
* | US$ | 0.0 | June 14, 2019 | June 14, 2029 | ||||||||||||
Yan Gao |
|
Vice President of Finance |
|
* | US$ | 0.0 | May 3, 2017 | May 3, 2027 | ||||||||
* | US$ | 0.0 | March 12, 2018 | March 12, 2028 | ||||||||||||
* | US$ | 0.0 | December 20, 2018 | December 20, 2028 | ||||||||||||
* | US$ | 0.0 | September 22, 2019 | September 22, 2029 | ||||||||||||
* | US$ | 0.0 | December 25, 2019 | December 25, 2029 | ||||||||||||
* | US$ | 0.0 | March 26, 2020 | March 26,2030 |
* | Less than 1% of our outstanding shares, assuming conversion of our preferred shares into ordinary shares. |
C. |
Board Practices |
• | selecting the independent auditor; |
• | pre-approving auditing and non-auditing services permitted to be performed by the independent auditor; |
• | annually reviewing the independent auditor’s report describing the auditing firm’s internal quality control procedures, any material issues raised by the most recent internal quality control review, or peer review, of the independent auditors and all relationships between the independent auditor and our company; |
• | setting clear hiring policies for employees and former employees of the independent auditors; |
• | reviewing with the independent auditor any audit problems or difficulties and management’s response; |
• | reviewing and, if material, approving all related party transactions on an ongoing basis; |
• | reviewing and discussing the annual audited financial statements with management and the independent auditor; |
• | reviewing and discussing with management and the independent auditors major issues regarding accounting principles and financial statement presentations; |
• | reviewing reports prepared by management or the independent auditors relating to significant financial reporting issues and judgments; |
• | discussing earnings press releases with management, as well as financial information and earnings guidance provided to analysts and rating agencies; |
• | reviewing with management and the independent auditors the effect of regulatory and accounting initiatives, as well as off-balance sheet structures, on the Group’s financial statements; |
• | discussing policies with respect to risk assessment and risk management with management, internal auditors and the independent auditor; |
• | timely reviewing reports from the independent auditor regarding all critical accounting policies and practices to be used by our company, all alternative treatments of financial information within U.S. GAAP that have been discussed with management and all other material written communications between the independent auditor and management; |
• | establishing procedures for the receipt, retention and treatment of complaints received from the Group’s employees regarding accounting, internal accounting controls or auditing matters and the confidential, anonymous submission by the Group’s employees of concerns regarding questionable accounting or auditing matters; |
• | annually reviewing and reassessing the adequacy of our audit committee charter; |
• | such other matters that are specifically delegated to our audit committee by our board of directors from time to time; |
• | meeting separately, periodically, with management, internal auditors and the independent auditor; and |
• | reporting regularly to the full board of directors. |
• | reviewing, evaluating and, if necessary, revising our overall compensation policies; |
• | reviewing and evaluating the performance of our directors and senior officers and determining the compensation of our senior officers; |
• | reviewing and approving our senior officers’ employment agreements with us; |
• | setting performance targets for our senior officers with respect to our incentive compensation plan and equity-based compensation plans; |
• | administering our equity-based compensation plans in accordance with the terms thereof; and such other matters that are specifically delegated to the remuneration committee by our board of directors from time to time. |
• | selecting and recommending to the board nominees for election by the shareholders or appointment by the board; |
• | reviewing annually with the board the current composition of the board with regards to characteristics such as independence, knowledge, skills, experience and diversity; |
• | making recommendations on the frequency and structure of board meetings and monitoring the functioning of the committees of the board; and |
• | advising the board periodically with regards to significant developments in the law and practice of corporate governance as well as our compliance with applicable laws and regulations, and making recommendations to the board on all matters of corporate governance and on any remedial action to be taken. |
• | conducting and managing the business of our company; |
• | representing our company in contracts and deals; |
• | appointing attorneys for our company; |
• | selecting senior management such as managing directors and executive directors; |
• | providing employee benefits and pension; |
• | managing our company’s finance and bank accounts; |
• | exercising the borrowing powers of our company and mortgaging the property of our company; and |
• | exercising any other powers conferred by the shareholders meetings or under our second amended and restated memorandum and articles of association. |
D. |
Employees |
Number of Function |
Employees |
% of Total |
||||||
Risk management |
87 | 9.3 | ||||||
Technology and product development |
78 | 8.3 | ||||||
Finance |
69 | 7.3 | ||||||
Operation management |
100 | 10.6 | ||||||
General administrative and others |
58 | 6.2 | ||||||
New businesses |
13 | 1.4 | ||||||
Sales and marketing |
4 | 0.4 | ||||||
Dabai Auto |
24 | 2.6 | ||||||
Wanlimu Kids project |
507 | 53.9 | ||||||
|
|
|
|
|||||
Total |
940 |
100.0 |
||||||
|
|
|
|
E. |
Share Ownership |
• | each of our directors and executive officers; and |
• | each person known to us to own beneficially 5.0% or more of our ordinary shares. |
Ordinary Shares Beneficially Owned |
||||||||||||||||
Class A ordinary shares |
Class B ordinary shares |
Percentage of total ordinary shares |
Percentage of aggregate voting power** |
|||||||||||||
Directors and Executive Officers: |
||||||||||||||||
Min Luo (1) |
— | 63,491,172 | 25.1 | 77.1 | ||||||||||||
Long Xu |
* | — | * | |||||||||||||
Yingming Li |
— | — | — | — | ||||||||||||
Shengwen Rong |
* | — | * | * | ||||||||||||
Yifan Li |
* | — | * | * | ||||||||||||
Yan Gao |
* | — | * | * | ||||||||||||
Directors and Executive Officers as a Group |
1,347,500 | 63,491,172 | 25.7 | 77.2 | ||||||||||||
Principal Shareholders |
||||||||||||||||
Qufenqi Holding Limited |
— | 63,491,172 | 25.1 | 77.1 | ||||||||||||
Guosheng HK (2) |
12,670,000 | 4,125,698 | 6.7 | 6.5 |
* | Beneficially owns less than 1% of our outstanding shares. |
** | For each person and group included in this column, percentage of voting power is calculated by dividing the voting power beneficially owned by such person or group by the voting power of all of our Class A and Class B ordinary shares as a single class. In respect of all matters subject to a shareholders’ vote, each Class A ordinary share is entitled to one vote, and each Class B ordinary share is entitled to ten votes, voting together as one class. Each Class B ordinary share is convertible into one Class A ordinary share at any time by the holder thereof. Class A ordinary shares are not convertible into Class B ordinary shares under any circumstances. |
(1) | Represents 63,491,172 Class B ordinary shares held by Qufenqi Holding Limited, a limited liability company established in the British Virgin Islands. Qufenqi Holding Limited is indirectly wholly owned by a trust of which Mr. Min Luo and his wife are the beneficiaries. Mr. Min Luo is our founder, chairman of the board and chief executive officer. The registered address of Qufenqi Holding Limited is Geneva Place, Waterfront Drive, P.O. Box 3469, Road Town, Tortola, British Virgin Islands. Pursuant to a proxy and power of attorney dated April 25, 2020, or the Guosheng proxy, Qufenqi Holding Limited appointed Guosheng HK as its proxy and attorney-in-fact |
(2) | Represents (i) 12,670,000 Class A ordinary shares held by Guosheng (Hong Kong) Investment Limited, or Guosheng HK, and (ii) 4,125,698 Class B ordinary shares subject to the Guosheng proxy. The Guosheng proxy is further described in footnote 1 above. Information regarding beneficial ownership in Class A ordinary shares is reported as of December 31, 2020, based on the information contained in the Schedule 13G/A filed by Guosheng HK and its affiliates on March 10, 2021, or the Guosheng 13G/A. Guosheng HK is a limited liability company incorporated under the laws of Hong Kong and a subsidiary of Guosheng Financial Holding Inc., or Guosheng, a public company listed on the Shenzhen Stock Exchange. Based on Guosheng’s public filings, Mr. Li Du has control over Guosheng as of the date of this annual report. The registered address of Guosheng HK is Unit 606, 6th Floor, Alliance Building, 133 Connaught Road Central, Hong Kong. |
ITEM 7. |
MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS |
A. |
Major Shareholders |
B. |
Related Party Transactions |
C. |
Interests of Experts and Counsel |
ITEM 8. |
FINANCIAL INFORMATION |
A. |
Consolidated Statements and Other Financial Information |
B. |
Significant Changes |
ITEM 9. |
THE OFFER AND LISTING |
A. |
Offering and Listing Details |
B. |
Plan of Distribution |
C. |
Markets |
D. |
Selling Shareholders |
E. |
Dilution |
F. |
Expenses of the Issue |
ITEM 10. |
ADDITIONAL INFORMATION |
A. |
Share Capital |
B. |
Memorandum and Articles of Association |
C. |
Material Contracts |
D. |
Exchange Controls |
E. |
Taxation |
(1) | that no law which is enacted in the Cayman Islands imposing any tax to be levied on profits or income or gains or appreciations shall apply to us or our operations; and |
(2) | that the aforesaid tax or any tax in the nature of estate duty or inheritance tax shall not be payable on our shares, debentures or other obligations or by way of the withholding in whole or in part of any relevant payment as defined in Section 6(3) of the Tax Concessions Law (2011 Revision). |
• | an individual who is a citizen or resident of the United States; |
• | a corporation (or other entity treated as a corporation for United States federal income tax purposes) created or organized in or under the laws of the United States, any state thereof or the District of Columbia; |
• | an estate the income of which is subject to United States federal income taxation regardless of its source; or |
• | a trust if it (1) is subject to the primary supervision of a court within the United States and one or more United States persons have the authority to control all substantial decisions of the trust or (2) has a valid election in effect under applicable United States Treasury regulations to be treated as a United States person. |
• | a dealer or broker in securities or currencies; |
• | a financial institution; |
• | a regulated investment company; |
• | a real estate investment trust; |
• | an insurance company; |
• | a tax-exempt organization; |
• | a person holding our ADSs or Class A ordinary shares as part of a hedging, integrated or conversion transaction, a constructive sale or a straddle; |
• | a trader in securities that has elected the mark-to-market |
• | a person liable for alternative minimum tax; |
• | a person who owns or is deemed to own 10% or more of our stock (by vote or value); |
• | a person required to accelerate the recognition of any item of gross income with respect to our ADSs or Class A ordinary shares as a result of such income being recognized on an applicable financial statement; |
• | a partnership or other pass-through entity for United States federal income tax purposes; or |
• | a person whose “functional currency” is not the United States dollar. |
• | at least 75% of our gross income is passive income, or |
• | at least 50% of the value (determined based on a quarterly average) of our assets is attributable to assets that produce or are held for the production of passive income. |
• | the excess distribution or gain will be allocated ratably over your holding period for the ADSs or Class A ordinary shares, |
• | the amount allocated to the current taxable year, and any taxable year prior to the first taxable year in which we were a PFIC, will be treated as ordinary income, and |
• | the amount allocated to each other year will be subject to tax at the highest tax rate in effect for that year for individuals or corporations, as applicable, and the interest charge generally applicable to underpayments of tax will be imposed on the resulting tax attributable to each such year. |
F. |
Dividends and Paying Agents |
G. |
Statement by Experts |
H. |
Documents on Display |
I. |
Subsidiary Information |
ITEM 11. |
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 12. |
DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES |
A. |
Debt Securities |
B. |
Warrants and Rights |
C. |
Other Securities |
D. |
American Depositary Shares |
Service |
Fees | |
• To any person to which ADSs are issued or to any person to which a distribution is made in respect of ADS distributions pursuant to stock dividends or other free distributions of stock, bonus distributions, stock splits or other distributions (except where converted to cash) |
• Up to US$0.05 per ADS issued | |
• Cancelation of ADSs, including the case of termination of the deposit agreement |
• Up to US$0.05 per ADS canceled | |
• Distribution of cash dividends |
• Up to US$0.05 per ADS held | |
• Distribution of cash entitlements (other than cash dividends) and/or cash proceeds from the sale of rights, securities and other entitlements |
• Up to US$0.05 per ADS held | |
• Distribution of ADSs pursuant to exercise of rights. |
• Up to US$0.05 per ADS held | |
• Distribution of securities other than ADSs or rights to purchase additional ADSs |
• Up to US$0.05 per ADS held | |
• Depositary services |
• Up to US$0.05 per ADS held on the applicable record date(s) established by the depositary |
• | Fees for the transfer and registration of ordinary shares charged by the registrar and transfer agent for the ordinary shares in the Cayman Islands (i.e., upon deposit and withdrawal of ordinary shares). |
• | Expenses incurred for converting foreign currency into U.S. dollars. |
• | Expenses for cable, telex and fax transmissions and for delivery of securities. |
• | Taxes and duties upon the transfer of securities, including any applicable stamp duties, any stock transfer charges or withholding taxes (i.e., when ordinary shares are deposited or withdrawn from deposit). |
• | Fees and expenses incurred in connection with the delivery or servicing of ordinary shares on deposit. |
• | Fees and expenses incurred in connection with complying with exchange control regulations and other regulatory requirements applicable to ordinary shares, deposited securities, ADSs and ADRs. |
• | Any applicable fees and penalties thereon. |
ITEM 13. |
DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES |
ITEM 14. |
MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS |
ITEM 15. |
CONTROLS AND PROCEDURES |
ITEM 16A. |
AUDIT COMMITTEE FINANCIAL EXPERT |
ITEM 16B. |
CODE OF ETHICS |
ITEM 16C. |
PRINCIPAL ACCOUNTANT FEES AND SERVICES |
For the Year Ended December 31, |
||||||||
2020 |
2021 |
|||||||
(in thousands of RMB) |
||||||||
Audit Fees (1) |
13,350 | 10,650 | ||||||
Tax Fees (2) |
100 | 508 | ||||||
|
|
|
|
|||||
Total |
13,450 |
11,158 |
||||||
|
|
|
|
(1) | Audit fees in 2020 include the aggregate fees billed in each of the fiscal period listed for professional services rendered by our independent public accountant for the audit and the agreed upon procedures of our financial statements. Audit fees in 2021 include the aggregate fees billed in each of the fiscal period listed for professional services rendered by our independent public accountant for the audit and the agreed upon procedures of our financial statements. |
(2) | Tax fees include the aggregated fees billed in each of the fiscal periods listed for professional services rendered by our independent public accountant for tax compliance, tax advice and tax planning. |
ITEM 16D. |
EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES |
ITEM 16E. |
PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS |
ITEM 16F. |
CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT |
ITEM 16G. |
CORPORATE GOVERNANCE |
ITEM 16H. |
MINE SAFETY DISCLOSURE |
ITEM 16I. |
DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS |
ITEM 17. |
FINANCIAL STATEMENTS |
ITEM 18. |
FINANCIAL STATEMENTS |
ITEM 19. |
EXHIBITS |
* | Filed herewith |
** | Furnished herewith |
QUDIAN INC. | ||
By: | /s/ Min Luo | |
Name: | Min Luo | |
Title: | Chairman and Chief Executive Officer |
QUDIAN INC. |
||||
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS |
||||
PAGE(S) |
||||
F- 2 |
||||
F-6 |
||||
F-11 |
||||
F-13 |
||||
F-14 |
||||
F-16 |
Allowance for loan principal and financing service fee receivables | ||
Description of the Matter |
At December 31, 2021, the Company’s loan principal and financing service fee receivables and related allowance was RMB 2,639 million and 267 million, respectively. As explained in Note 2 to the consolidated financial statements, the Company considers the loans to be homogeneous unsecured consumer loans of similar principal amounts. The allowance is calculated based on the Company’s historical loss experience with the entire loan portfolio, using a roll-rate based model and adjusted for various qualitative factors that reflect current conditions and reasonable and supportable forecasts of future economic conditions. These factors may include gross-domestic product rates, consumer price indexes, per capita consumption expenditure and other considerations. Auditing management’s allowance for loan principal and financing service fee receivables was complex and subjective due to the highly judgmental nature of the qualitative factors used to adjust the allowance calculated using the roll-rate based model. Quantifying the impact of the selected qualitative factors on the allowance was also complex and highly judgmental. These qualitative factors require management to make significant judgments which could significantly affect the amount of the allowance for loan principal and financing service fee receivables. | |
How We Addressed the Matter in Our Audit |
We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s allowance for loan principal and financing service fee receivables. For example, we tested controls over management’s review of the allowance calculations, the significant assumptions and data inputs. To test the Company’s allowance, we performed audit procedures that included, among others, evaluating the methodology used, management’s selection of qualitative factors and their impact on the allowance, and the underlying data used in the calculation. We compared the selected qualitative factors to publicly available market information. We evaluated the appropriateness of the management’s development, selection and weighting of the qualitative factors used in the roll- rate based model. In addition, we also involved valuation specialists to assist with these procedures. We evaluated the loss rate used to calculate the Company’s allowance at December 31, 2021 by comparing management’s estimate to subsequent results. |
As of December 31, | ||||||||||||||||
Notes | 2020 | 2021 | ||||||||||||||
RMB | RMB | US$ | ||||||||||||||
ASSETS: |
||||||||||||||||
Current assets: |
||||||||||||||||
Cash and cash equivalents |
||||||||||||||||
Restricted cash and cash equivalents |
||||||||||||||||
Short-term investments |
||||||||||||||||
Short-term loan principal and financing service fee receivables (net of allowance of RMB |
3 | |||||||||||||||
Short-term finance lease receivables (net of allowance of RMB |
4 | |||||||||||||||
Short-term contract assets (net of allowance of RMB |
||||||||||||||||
Derivative instruments |
— | |||||||||||||||
Other current assets (net of allowance of RMB |
5 | |||||||||||||||
|
|
|
|
|
|
|||||||||||
Total current assets |
||||||||||||||||
|
|
|
|
|
|
As of December 31, |
||||||||||||||||
Notes |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
US$ |
||||||||||||||
Non-current assets: |
||||||||||||||||
Long-term finance lease receivables (net of allowance of RMB |
4 | |||||||||||||||
Right-of-use |
||||||||||||||||
Investment in equity method investee (including amounts measured at fair value of RMB |
7 | |||||||||||||||
Long-term investments (including amounts measured at fair value of RMB |
8 | |||||||||||||||
Property and equipment, net (net of allowance of RMB |
9 | |||||||||||||||
Intangible assets |
||||||||||||||||
Long-term contract assets (net of allowance of RMB |
||||||||||||||||
Deferred tax assets |
17 | |||||||||||||||
Other non-current assets (net of allowance of RMB |
||||||||||||||||
Total non-current assets |
||||||||||||||||
TOTAL ASSETS |
||||||||||||||||
As of December 31, |
||||||||||||||||
Notes |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
US$ |
||||||||||||||
LIABILITIES AND EQUITY |
||||||||||||||||
Current liabilities: |
||||||||||||||||
Short-term lease liabilities (including short-term lease liabilities of the consolidated VIEs without recourse to the Company of RMB |
6 | |||||||||||||||
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated VIEs without recourse to the Company of RMB |
11 | |||||||||||||||
Guarantee liabilities and risk assurance liabilities (including amounts of guarantee liabilities of RMB |
12 | |||||||||||||||
Income tax payable (including income tax payable of the consolidated VIEs without recourse to the Company of RMB |
||||||||||||||||
Total current liabilities |
||||||||||||||||
As of December 31, |
||||||||||||||||
Notes |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
US$ |
||||||||||||||
Non-current liabilities: |
||||||||||||||||
Long-term borrowings and interest payables |
10 | |||||||||||||||
Convertible senior notes |
13 | |||||||||||||||
Deferred tax liabilities (including deferred tax liabilities of the consolidated VIEs without recourse to the Company of RMB |
17 | |||||||||||||||
Long-term lease liabilities (including long-term lease liabilities of the consolidated VIEs without recourse to the Company of RMB |
6 | |||||||||||||||
Other non-current liabilities (including long-term lease liabilities of the consolidated VIEs without recourse to the Company of RMB |
— | |||||||||||||||
Total non-current liabilities |
||||||||||||||||
Total liabilities |
||||||||||||||||
As of December 31, |
||||||||||||||||
Notes |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
US$ |
||||||||||||||
Commitments and contingencies |
22 | |||||||||||||||
Equity: |
||||||||||||||||
Class A Ordinary shares (US$ |
23 | |||||||||||||||
Class B Ordinary shares (US$ |
23 | |||||||||||||||
Treasury shares |
24 | ( |
) | ( |
) | ( |
) | |||||||||
Additional paid-in capital |
||||||||||||||||
Accumulated other comprehensive loss |
( |
) | ( |
) | ( |
) | ||||||||||
Retained earnings |
||||||||||||||||
|
|
|
|
|
|
|||||||||||
Total Qudian Inc. shareholders’ equity |
||||||||||||||||
|
|
|
|
|
|
|||||||||||
Non-controlling i nterests |
||||||||||||||||
|
|
|
|
|
|
|||||||||||
Total equity |
||||||||||||||||
|
|
|
|
|
|
|||||||||||
TOTAL LIABILITIES AND EQUITY |
||||||||||||||||
|
|
|
|
|
|
For the years ended December 31, |
||||||||||||||||||||
Notes |
2019 |
2020 |
2021 |
|||||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||||||
Revenues: |
||||||||||||||||||||
Financing income |
||||||||||||||||||||
Sales commission fee |
||||||||||||||||||||
Penalty fee |
||||||||||||||||||||
Guarantee income |
— | |||||||||||||||||||
Loan facilitation income and other related income |
||||||||||||||||||||
Transaction services fee and other related income |
( |
) | ||||||||||||||||||
Sales income and others |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total revenues |
||||||||||||||||||||
Cost of revenues: |
||||||||||||||||||||
Cost of goods sold |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Cost of other revenues |
14 | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total cost of revenues |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||
Operating expenses: |
||||||||||||||||||||
Sales and marketing |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
General and administrative |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Research and development |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Changes in guarantee liabilities and risk assurance liabilities (including changes in guarantee liabilities amounts of RMB |
( |
) | ||||||||||||||||||
Provision for receivables and other assets |
15 | ( |
) | ( |
) | |||||||||||||||
Impairment loss from long-lived assets |
— | — | ( |
) | ( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total operating expenses |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||
Other operating income |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Income from operations |
||||||||||||||||||||
Interest and investment income, net |
16 | |||||||||||||||||||
Loss from equity method investments |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Unrealized gain on derivative instruments |
— | — | ||||||||||||||||||
Foreign exchange gain/(loss), net |
( |
) | ( |
) | ( |
) | ||||||||||||||
Other income |
||||||||||||||||||||
Other expenses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
For the years ended December 31, | ||||||||||||||||||||
Notes | 2019 | 2020 | 2021 | |||||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||||||
Net income before income taxes |
||||||||||||||||||||
Income tax expenses |
17 | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||
Net income |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Less: net loss attributable to noncontrolling interests |
— | — | ( |
) | ( |
) | ||||||||||||||
Net income attributable to Qudian Inc.’s shareholders |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Earnings per share for Class A and Class B ordinary shares: |
||||||||||||||||||||
Basic |
18 | |||||||||||||||||||
Diluted |
18 | |||||||||||||||||||
Earnings per ADS (1 Class A ordinary share equals 1 ADSs): |
||||||||||||||||||||
Basic |
18 | |||||||||||||||||||
Diluted |
18 | |||||||||||||||||||
Weighted average number of Class A and Class B ordinary shares outstanding: |
||||||||||||||||||||
Basic |
18 | |||||||||||||||||||
Diluted |
18 | |||||||||||||||||||
Other comprehensive income/(loss) |
||||||||||||||||||||
Foreign currency translation adjustment |
( |
) | ( |
) | ( |
) | ||||||||||||||
Total comprehensive income |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Less: comprehensive loss attributable to noncontrolling interests |
— | — | ( |
) | ( |
) | ||||||||||||||
Total comprehensive income attributable to Qudian Inc.’s shareholders |
||||||||||||||||||||
|
|
|
|
|
|
|
|
Class A and B Ordinary shares |
Treasury shares |
Additional paid-in capital |
Accumulated other comprehensive loss/foreign currency translation adjustment |
Retained earnings |
Total Qudian Inc. shareholders’ equity |
Non-controlling interests |
Total equity |
|||||||||||||||||||||||||||||
Number of Shares Outstanding |
Amount |
|||||||||||||||||||||||||||||||||||
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
|||||||||||||||||||||||||||||
Balance at December 31,2018 |
( |
) | ( |
) | — | |||||||||||||||||||||||||||||||
Repurchase of ordinary shares |
( |
) | — | ( |
) | — | — | — | ( |
) | — | ( |
) | |||||||||||||||||||||||
Canceled shares |
— | ( |
) | ( |
) | — | — | — | — | — | ||||||||||||||||||||||||||
Vesting of share options held by |
||||||||||||||||||||||||||||||||||||
Share Based Payment Trust |
— | ( |
) | — | — | — | — | — | ||||||||||||||||||||||||||||
Exercise of share options |
— | — | — | — | ||||||||||||||||||||||||||||||||
Share-based compensation (Note 21) |
— | — | — | — | — | — | ||||||||||||||||||||||||||||||
Purchase of capped call option |
— | — | — | ( |
) | — | — | ( |
) | — | ( |
) | ||||||||||||||||||||||||
Other comprehensive loss |
— | — | — | — | — | — | ||||||||||||||||||||||||||||||
Net income |
— | — | — | — | — | — | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Balance at December 31,2019 |
( |
) | ( |
) | — | |||||||||||||||||||||||||||||||
Adjustments due to the adoption of ASC 326 |
— | — | — | — | — | ( |
) |
( |
) | — | ( |
) | ||||||||||||||||||||||||
Repurchase of ordinary shares |
( |
) | — | ( |
) | — | — | — | ( |
) | — | ( |
) | |||||||||||||||||||||||
Issuance of shares by the Company’s subsidiary |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Vesting of share options held by |
||||||||||||||||||||||||||||||||||||
Share Based Payment Trust |
— | ( |
) | — | — | — | — | — | ||||||||||||||||||||||||||||
Exercise of share options |
( |
) | — | — | — | |||||||||||||||||||||||||||||||
Share-based compensation (Note 21) |
— | — | — | — | — | — | ||||||||||||||||||||||||||||||
Other comprehensive loss |
— | — | — | — | ( |
) | — | ( |
) | — | ( |
) | ||||||||||||||||||||||||
Net income |
— | — | — | — | — | — | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Balance at December 31,2020 |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Exercise of share options |
( |
) | — | — | — | |||||||||||||||||||||||||||||||
Share-based compensation (Note 21) |
— | — | — | — | — | — | ||||||||||||||||||||||||||||||
Other comprehensive loss |
— | — | — | — | ( |
) | — | ( |
) | — | ( |
) | ||||||||||||||||||||||||
Net income |
— | — | — | — | — | ( |
) | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Balance at December 31,2021 |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the years ended December 31, | ||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Cash flows from operating activities: |
||||||||||||||||
Net income |
||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||||||||||
Provision/(reversal) for receivables and other assets |
( |
) | ( |
) | ||||||||||||
Impairment loss from long-lived assets |
— | — | ||||||||||||||
Depreciation and amortization |
||||||||||||||||
Amortization of right-of-use |
||||||||||||||||
Loss on disposal of property and equipment |
— | |||||||||||||||
Accrued interest of convertible senior notes |
||||||||||||||||
Income from the repurchase of convertible senior notes |
— | ( |
) | ( |
) | ( |
) | |||||||||
Share-based compensation expense |
||||||||||||||||
Share of loss from equity method investment |
||||||||||||||||
Unrealized investment income of short-term i nvestments |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Unrealized investment income of long-term i nvestments |
— | — | ||||||||||||||
Unrealized investment income of derivative instruments |
— | — | ( |
) | ( |
) | ||||||||||
Foreign exchange (gain)/ loss, net |
( |
) | ||||||||||||||
Changes in operating assets and liabilities: |
||||||||||||||||
Financing service fee receivables |
||||||||||||||||
Finance lease receivables |
— | — | — | |||||||||||||
Contract assets |
( |
) | ||||||||||||||
Receivables from related parties |
— | — | — | |||||||||||||
Deferred tax assets and liabilities |
||||||||||||||||
Other current and non-current assets |
( |
) | ( |
) | ( |
) | ||||||||||
Interest payables |
( |
) | ( |
) | — | — | ||||||||||
Guarantee liabilities |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Risk assurance liabilities |
( |
) | ( |
) | ( |
) | ||||||||||
Operating lease liabilities |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Other current and non-current liabilities |
( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net cash provided by operating activities |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Cash flows from investing activities: |
||||||||||||||||
Proceeds from redemption of short-term investments |
||||||||||||||||
Proceeds from redemption of long-term investments |
— | — | — | |||||||||||||
Proceeds from collection of loan principal |
||||||||||||||||
Principal collection of finance lease receivables |
— | |||||||||||||||
Proceeds from disposal of long-term assets |
— | |||||||||||||||
Purchases of short-term investments |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Purchases of property and equipment, intangible assets and land lease right of use asset |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Purchases of long-term investments |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Purchases of equity method investment |
( |
) | ( |
) | — | — | ||||||||||
Payments to originate loan principal |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Deposit pledged as collateral or prepayment for derivative instruments |
— | — | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net cash used in investing activities |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
|
|
|
|
|
|
|
|
For the years ended December 31, | ||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||
RMB | RMB | RMB | US$ |
|||||||||||||
Cash flows from financing activities: |
||||||||||||||||
Proceeds from deposits to funding |
— | — | — | |||||||||||||
Proceeds from borrowings |
||||||||||||||||
Proceeds from convertible senior notes, net of issuance cost |
— | — | — | |||||||||||||
Proceeds from issuance of shares of subsidiary |
— | — | — | |||||||||||||
Proceeds from exercise of share options |
||||||||||||||||
Repayment of borrowings |
( |
) | ( |
) | — | — | ||||||||||
Repurchase of ordinary shares |
( |
) | ( |
) | — | — | ||||||||||
Repurchase of convertible senior notes |
— | ( |
) | ( |
) | ( |
) | |||||||||
Payments for interest of convertible senior notes |
— | ( |
) | ( |
) | ( |
) | |||||||||
Purchase of capped call option |
( |
) | — | — | — | |||||||||||
Payments of deposits to funding |
( |
) | — | — | — | |||||||||||
Net cash used in financing activities |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
Effect of exchange rate changes |
( |
) | ( |
) | ( |
) | ||||||||||
Net increase/(decrease) in cash and cash equivalents, and restricted cash and cash equivalents |
( |
) | ||||||||||||||
Cash and cash equivalents, and restricted cash and cash equivalents at beginning of the year |
||||||||||||||||
Cash and cash equivalents, and restricted cash and cash equivalents at end of the year |
||||||||||||||||
Reconciliation of cash and cash equivalents, and restricted cash and cash equivalents to the consolidated balance sheet |
||||||||||||||||
Cash and cash equivalents |
||||||||||||||||
Restricted cash and cash equivalents |
||||||||||||||||
Total cash and cash equivalents, and restricted cash and cash equivalents |
||||||||||||||||
Supplemental disclosures of cash flow information: |
||||||||||||||||
Income taxes paid, net of refunds |
||||||||||||||||
Interest expense paid |
Entity |
Date of incorporation |
Place of incorporation |
Percentage of legal ownership by the Company |
Principal activities | ||||||
Subsidiaries |
||||||||||
QD Data Limited (“Qudian HK”) |
% | | ||||||||
QD Technology Limited (“Qudian BVI”) |
|
% | | |||||||
Qufenqi (Ganzhou) Information Technology Co., Ltd. (“Qufenqi Ganzhou”) |
% | | ||||||||
Qudian Inc. Equity Incentive Trust (“Share Based Payment Trust”) |
| |||||||||
Qufenqi (HK) Limited (“Qufenqi HK”) |
% | | ||||||||
Xiamen Qudian Financial Lease Co., Ltd. (“Xiamen Financial Lease”) |
% | | ||||||||
Xiamen Happy Time Technology Co., Ltd. (“Xiamen Happy Time”) |
% | | ||||||||
Qu Plus Plus Inc. (“Qu Plus Plus”) |
% | | ||||||||
Qu Plus Plus Limited (“Qu Plus Plus BVI”) |
% | | ||||||||
Qu Plus (HK) Limited (“Qu Plus HK”) |
% | | ||||||||
Xiamen Youxiang Time Technology Service Co., Ltd. (“Xiamen Youxiang Time”) |
% | | ||||||||
Xiamen Xincheng Youda Financing Guarantee Co., Ltd. (“Xiamen Xincheng Youda”) |
% | | ||||||||
WLM Kids Inc. (“WLM Kids”) |
% | |||||||||
WLM Kids Limited (“WLM Kids BVI”) |
% |
Entity |
Date of incorporation |
Place of incorporation |
Percentage of legal ownership by the Company |
Principal activities | ||||||
WLM Kids (HK) Limited (“WLM Kids HK”) |
% | |||||||||
VIEs |
||||||||||
Beijing Happy Time Technology Development Co., Ltd. (“Beijing Happy Time”) |
| |||||||||
Ganzhou Qudian Technology Co., Ltd. (“Ganzhou Qudian”) |
| |||||||||
Xiamen Qudian Technology Co., Ltd. (“Xiamen Qudian”) |
| |||||||||
Xiamen Weipujia Technology Co., Ltd. (“Xiamen Weipujia”) |
| |||||||||
Xiamen Qu Plus Plus Technology Co., Ltd. (“Xiamen Qu Plus Plus”) |
|
As of December 31, |
||||||||||||
2020 |
2021 |
|||||||||||
RMB |
RMB |
US$ |
||||||||||
Short-term loan principal and financing service fee receivables |
||||||||||||
Other current assets |
||||||||||||
|
|
|
|
|
|
|||||||
Total current assets |
||||||||||||
|
|
|
|
|
|
|||||||
Total non-current assets |
||||||||||||
|
|
|
|
|
|
|||||||
Total assets |
||||||||||||
|
|
|
|
|
|
|||||||
Total current liabilities |
||||||||||||
Total non-current liabilities |
||||||||||||
|
|
|
|
|
|
|||||||
Total liabilities |
||||||||||||
|
|
|
|
|
|
For the years ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
Revenues |
|
|||||||||||||||
Net income |
For the years ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
Net cash provided by operating activities |
||||||||||||||||
Net cash used in investing activities |
( |
) | ( |
) | ||||||||||||
Net cash used in financing activities |
( |
) | ( |
) | ( |
) |
( |
) |
• | Identify the contract(s) with a customer; |
• | Identify the performance obligations in the contract; |
• | Determine the transaction price; |
• | Allocate the transaction price to the performance obligations in the contract; and |
• | Recognize revenue when (or as) the entity satisfies a performance obligation. |
Category | Estimated Useful Life |
Estimated Residual |
||||
Office and electronic equipment |
||||||
Motor vehicles |
||||||
Leasehold improvements |
Over the shorter of the expected life of leasehold improvements or the lease term |
• |
Level 1-Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets |
• |
Level 2-Include observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data |
• |
Level 3-Unobservable inputs which are supported by little or no market activity |
As of December 31, | ||||||||||||
2020 | 2021 | |||||||||||
RMB | RMB | US$ | ||||||||||
Short-term loan principal and financing service fee receivables: |
||||||||||||
Loan principal and financing service fee receivables |
||||||||||||
Less: allowance for loan principal and financing service fee receivables |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Short-term loan principal and financing service fee receivables, net |
||||||||||||
|
|
|
|
|
|
As of December 31, | ||||||||||||
2020 | 2021 | |||||||||||
RMB | RMB | US$ | ||||||||||
Nonaccrual loan principal |
||||||||||||
Less: allowance for nonaccrual loan principal |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Nonaccrual loan principal, net |
||||||||||||
|
|
|
|
|
|
1-30 days |
31-60 days |
61-90 days |
91-120 days |
121-150 days |
151-180 days |
Total past due | Current | Total | ||||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | ||||||||||||||||||||||||||||
Domestic consumer loans (uncollateralized) |
||||||||||||||||||||||||||||||||||||
– Loan principal |
||||||||||||||||||||||||||||||||||||
– Financing service fee receivables |
— |
— |
— |
|||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-30 days |
31-60 days |
61-90 days |
91-120 days |
121-150 days |
151-180 days |
Total past due |
Current | Total | Total | |||||||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | US$ | |||||||||||||||||||||||||||||||
Domestic consumer loans (uncollateralized) |
||||||||||||||||||||||||||||||||||||||||
– Loan principal |
||||||||||||||||||||||||||||||||||||||||
– Financing service fee receivables |
— | — | — | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, | ||||||||||||||||||||||||||||
2020 | 2021 | |||||||||||||||||||||||||||
Loan principal | Financing service fee receivables |
Total | Loan principal | Financing service fee receivables |
Total | |||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | US$ | ||||||||||||||||||||||
Balance at the beginning of the year |
||||||||||||||||||||||||||||
Adjustment due to the adoption of ASC 326 |
— | — | ||||||||||||||||||||||||||
Additions/ (reverse) |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||
Charge-offs |
( |
) | — | ( |
) | ( |
) | — | ( |
) | ( |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance at the end of the year |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Evaluated for impairment on a portfolio basis |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, | ||||||||||||
2020 | 2021 | |||||||||||
RMB | RMB | US$ | ||||||||||
Gross investment in finance lease receivables |
||||||||||||
Less: unearned income |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Net investment in finance lease receivables |
||||||||||||
Less: allowance for finance lease receivables |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Finance lease receivables, net |
||||||||||||
|
|
|
|
|
|
As of December 31, | ||||||||||||
2020 | 2021 | |||||||||||
RMB | RMB | US$ | ||||||||||
Nonaccrual finance lease receivables |
||||||||||||
Less: allowance for nonaccrual financial lease receivables |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Nonaccrual finance lease receivables, net |
||||||||||||
|
|
|
|
|
|
1-30 days |
31-60 days |
61-90 days |
90-120 days |
120-150 days |
150-180 days |
Total past due | Current | Total | ||||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | ||||||||||||||||||||||||||||
Finance lease receivables |
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-30 days |
31-60 days |
61-90 days |
90-120 days |
120-150 days |
150-180 days |
Total past due | Current | Total | Total | |||||||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | US$ | |||||||||||||||||||||||||||||||
Finance lease receivables |
||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less than 1 year |
1 – 2 years | 2 – 3 years | 3 – 4 years | Total | ||||||||||||||||
RMB | RMB | RMB | RMB | RMB | ||||||||||||||||
As of December 31, 2020 |
||||||||||||||||||||
Finance lease receivables |
— | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Less than 1 year |
1 – 2 years | 2 – 3 years | 3 – 4 years | Total | ||||||||||||||||
RMB | RMB | RMB | RMB | RMB | ||||||||||||||||
As of December 31, 2021 |
||||||||||||||||||||
Finance lease receivables |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Less than 1 year |
1 – 2 years | 2 – 3 years | 3 – 4 years | Total | ||||||||||||||||
US$ | US$ | US$ | US$ | US$ | ||||||||||||||||
As of December 31, 2021 |
||||||||||||||||||||
Finance lease receivables |
— | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
As of December 31, | ||||||||||||
2020 | 2021 | |||||||||||
RMB | RMB | US$ | ||||||||||
Balance at the beginning of the year |
||||||||||||
Adjustment due to the adoption of ASC 326 |
— | — | ||||||||||
R everse |
( |
) | ( |
) | ( |
) | ||||||
Charge-offs |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Balance at the end of the year |
||||||||||||
|
|
|
|
|
|
|||||||
Evaluated for impairment on a portfolio basis |
||||||||||||
|
|
|
|
|
|
As of December 31, | ||||||||||||||||
2020 | 2021 | |||||||||||||||
RMB | RMB | US$ | ||||||||||||||
Prepaid expenses |
||||||||||||||||
Inventory |
||||||||||||||||
Deposits in trust protection fund |
5.1 | |||||||||||||||
Guarantee deposits held by Funding Partners |
||||||||||||||||
Receivables from third party payment service providers |
5.2 | |||||||||||||||
Receivables from Funding Partners and other service providers |
||||||||||||||||
Other account receivables |
||||||||||||||||
Receivable from broker for derivative collateral |
5.3 | — | ||||||||||||||
Others |
||||||||||||||||
Total |
||||||||||||||||
Less: Allowance for other current assets |
( |
) | ( |
) | ( |
) | ||||||||||
As of December 31, | ||||||||||||
2020 | 2021 | |||||||||||
RMB | RMB | US$ | ||||||||||
Balance at the beginning of the year |
||||||||||||
Adjustment due to the adoption of ASC 326 |
||||||||||||
Additions |
||||||||||||
Charge-offs |
( |
) | ( |
) | ( |
) | ||||||
Balance at the end of the year |
||||||||||||
For the years ended December 31, | ||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Financing income |
||||||||||||||||
Sales income |
As of December 31, | ||||||||||||
2020 | 2021 | |||||||||||
RMB | RMB | US$ | ||||||||||
1 year (Including 1 year) |
||||||||||||
1 year to 2 years (Including 2 years) |
||||||||||||
2 years to 3 years (Including 3 years) |
||||||||||||
3 years to 4 years (Including 4 years) |
||||||||||||
4 years to 5 years (Including 5 years) |
||||||||||||
Over 5 years |
||||||||||||
|
|
|
|
|
|
|||||||
Total lease payment |
||||||||||||
|
|
|
|
|
|
|||||||
Less: imputed interest |
||||||||||||
|
|
|
|
|
|
|||||||
Present value of lease liabilities |
||||||||||||
|
|
|
|
|
|
For the years ended December 31, | ||||||||||||
2020 | 2021 | |||||||||||
RMB | RMB | US$ | ||||||||||
Operating ROU assets released in exchange for operating lease liabilities |
||||||||||||
Operating ROU assets obtained in exchange for new operating lease liabilities |
As of December 31, | ||||||||||||
2020 | 2021 | |||||||||||
RMB | RMB | US$ | ||||||||||
Construction in progress |
||||||||||||
Leasehold improvements |
||||||||||||
Office and electronic equipment |
||||||||||||
Motor vehicles |
||||||||||||
Property and equipment, gross |
||||||||||||
Less accumulated depreciation |
||||||||||||
Less allowance |
||||||||||||
Property and equipment, net |
||||||||||||
As of December 31, | ||||||||||||||||||||
Floating annual rate (%) | Term | 2020 | 2021 | |||||||||||||||||
RMB | RMB | US$ | ||||||||||||||||||
Banks |
LPR+ |
% | ||||||||||||||||||
Less than 1 year |
1 – 2 years | 2 – 3 years | 3 – 4 years | 4 – 5 years | Greater than 5 years |
Total | ||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | RMB | ||||||||||||||||||||||
As of December 31, 2020 |
||||||||||||||||||||||||||||
Long-term borrowings and interest payables (RMB) |
||||||||||||||||||||||||||||
As of December 31, 2021 |
||||||||||||||||||||||||||||
Long-term borrowings and interest payables (RMB) |
||||||||||||||||||||||||||||
Long-term borrowings and interest payables (US$) |
||||||||||||||||||||||||||||
As of December 31, | ||||||||||||
2020 | 2021 | |||||||||||
RMB | RMB | US$ | ||||||||||
Accrued payroll |
||||||||||||
Tax payables |
||||||||||||
Payable to suppliers |
||||||||||||
Payable to external service providers |
||||||||||||
Payable to funding partner |
||||||||||||
Others |
||||||||||||
As of December 31, | ||||||||||||
2020 | 2021 | |||||||||||
RMB | RMB | US$ | ||||||||||
Balance at beginning of the year |
||||||||||||
Fair value of guarantee liabilities upon the inception of new loans |
||||||||||||
Collections/ (performed guarantee) |
( |
) | ||||||||||
Change in fair value of guarantee liabilities |
( |
) | ( |
) | ||||||||
Balance at end of the year |
||||||||||||
As of December 31, | ||||||||||||||||||||||||||||
2020 | 2021 | |||||||||||||||||||||||||||
Contingent | Non-contingent |
Total | Contingent | Non-contingent |
Total | |||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | US$ | ||||||||||||||||||||||
Balance at the beginning of the year |
||||||||||||||||||||||||||||
Adjustment due to the adoption of ASC 326 |
— | — | — | — | — | |||||||||||||||||||||||
Fair value of risk assurance liabilities upon the inception of new loans |
— | — | — | — | — | |||||||||||||||||||||||
Expected credit loss upon the inception of new loans |
— | — | — | — | — | |||||||||||||||||||||||
Recognized as guarantee income |
— | ( |
) | ( |
) | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Collections/ (Payouts) |
( |
) | — | ( |
) | — | ||||||||||||||||||||||
Change in fair value of risk assurance liabilities |
( |
) | — | ( |
) | ( |
) | — | ( |
) | ( |
) | ||||||||||||||||
Balance at end of the year |
— | — | — | — | ||||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Interest expenses of borrowings |
||||||||||||||||
Other costs* |
||||||||||||||||
* |
Other costs include commission expenses, salaries and cost of educational services. |
For the years ended December 31, | ||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Provision /(reversal) for loan principaland financing service fee receivables |
( |
) | ( |
) | ||||||||||||
Provision /(reversal) for finance lease receivables |
( |
) | ( |
) | ( |
) | ||||||||||
Provision for contract assets |
— | ( |
) | ( |
) | ( |
) | |||||||||
Provision for other current assets |
||||||||||||||||
Provision for investment in equity method investee |
— | |||||||||||||||
( |
) | ( |
) | |||||||||||||
For the years ended December 31, | ||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Unrealized investment income of short-term investments |
— | |||||||||||||||
Realized investment income of short-term investments |
||||||||||||||||
Unrealized investment income of long-term investments |
— | ( |
) | ( |
) | |||||||||||
Interest income |
||||||||||||||||
Income from the repurchase of convertible senior notes |
— | |||||||||||||||
Interest expense of convertible senior notes |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
For the years ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
Current income tax expenses |
|
|
||||||||||||||
Deferred income tax expenses |
||||||||||||||||
Total income tax expenses |
||||||||||||||||
As of December 31, |
||||||||||||
2020 |
2021 |
|||||||||||
RMB |
RMB |
US$ |
||||||||||
Non-current deferred tax assets |
||||||||||||
Allowance for loan principal and financing service fee receivables |
|
|
||||||||||
Allowance for finance lease receivable |
||||||||||||
Allowance for other current assets |
||||||||||||
Impairment loss from long-lived assets |
||||||||||||
Guarantee liabilities |
||||||||||||
Risk assurance liabilities |
||||||||||||
Share-based compensation |
||||||||||||
Fair value change on investments |
||||||||||||
Fair value change on financial assets |
||||||||||||
Lease liabilities |
||||||||||||
Advertising cost |
— | |||||||||||
Net operating loss carry forwards |
||||||||||||
Less: valuation allowance |
( |
) | ( |
) |
( |
) | ||||||
Total non-current deferred tax assets net of valuation allowance |
||||||||||||
Net non-current deferred tax assets |
||||||||||||
Non-current deferred tax liabilities |
||||||||||||
Contract assets |
( |
) | ||||||||||
Right-of-use |
( |
) | ( |
) |
( |
) | ||||||
Fair value change on financial assets |
( |
) | ( |
) |
( |
) | ||||||
Unallocated revenue |
( |
) | ( |
) |
( |
) | ||||||
Total non-current deferred tax liabilities |
( |
) | ( |
) |
( |
) | ||||||
Net non-current deferred tax liabilities |
( |
) | ( |
) |
( |
) | ||||||
For the years ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
Profit before income tax |
||||||||||||||||
PRC statutory income tax rate |
% | % | % |
% | ||||||||||||
Income tax at statutory tax rate |
||||||||||||||||
Effect of different tax rates |
( |
) | ( |
) | ( |
) |
( |
) | ||||||||
Tax exempt income |
( |
) | ( |
) | ||||||||||||
Expenses not deductible for tax purposes |
||||||||||||||||
Adjustment on current income tax of the previous periods |
||||||||||||||||
Deferred only adjustment |
||||||||||||||||
Research and development super-deduction |
( |
) | ( |
) | ( |
) |
( |
) | ||||||||
Tax rate change |
( |
) | ( |
) | ( |
) |
( |
) | ||||||||
Changes in valuation allowance |
||||||||||||||||
Income tax expenses |
||||||||||||||||
For the years ended December 31, |
||||||||||||
2020 |
2021 |
|||||||||||
RMB |
RMB |
US$ |
||||||||||
Balance at beginning of the year |
||||||||||||
Additions |
||||||||||||
Decreases |
( |
) |
||||||||||
Balance at end of the year |
||||||||||||
For the years ended December 31, | ||||||||||||||||||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | RMB | US$ | |||||||||||||||||||||||||
Class A | Class B | Class A | Class B | Class A | Class A | Class B | Class B | |||||||||||||||||||||||||
Earnings per share – basic: |
||||||||||||||||||||||||||||||||
Numerator: |
||||||||||||||||||||||||||||||||
Allocation of net income attributable to Qudian Inc. for basic computation |
||||||||||||||||||||||||||||||||
Millions of Shares (denominator): |
||||||||||||||||||||||||||||||||
Weighted average number of ordinary share outstanding – basic |
||||||||||||||||||||||||||||||||
Denominator used for basic earnings per share |
||||||||||||||||||||||||||||||||
Earnings per share – basic |
||||||||||||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | US$ | RMB | US$ | |||||||||||||||||||||||||
Class A | Class B | Class A | Class B | Class A | Class A | Class B | Class B | |||||||||||||||||||||||||
Earnings per share – diluted: |
||||||||||||||||||||||||||||||||
Numerator: |
||||||||||||||||||||||||||||||||
Interest charges applicable to the Convertible Senior Notes |
||||||||||||||||||||||||||||||||
Allocation of net income attributable to Qudian Inc. for diluted computation |
||||||||||||||||||||||||||||||||
Reallocation of net income attributable to Qudian Inc. as a result of conversion of Class B to Class A shares |
— | — | — | — | ||||||||||||||||||||||||||||
Allocation of net income attributable to Qudian Inc |
||||||||||||||||||||||||||||||||
Millions of Shares (denominator): |
||||||||||||||||||||||||||||||||
Weighted average number of ordinary share outstanding – basic |
||||||||||||||||||||||||||||||||
Conversion of Class B to Class A ordinary shares |
— | — | — | — | ||||||||||||||||||||||||||||
Adjustments for dilutive share options |
— | — | — | — | — | — | ||||||||||||||||||||||||||
Conversion of the Convertible Senior Notes to Class A ordinary share |
— | — | — | — | ||||||||||||||||||||||||||||
Denominator used for diluted earnings per share |
||||||||||||||||||||||||||||||||
Earnings per share – diluted |
||||||||||||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Class A | Class A | Class A | Class A | |||||||||||||
Earnings per share – ADS: |
||||||||||||||||
Denominator used for earnings per ADS – basic |
||||||||||||||||
Denominator used for earnings per ADS – diluted |
||||||||||||||||
Earnings per ADS – basic |
||||||||||||||||
Earnings per ADS – diluted |
||||||||||||||||
As of December 31, 2020 |
||||||||||||||||
Active market (Level 1) |
Observable input (Level 2) |
Non-observable input (Level 3) |
Total |
|||||||||||||
RMB |
RMB |
RMB |
RMB |
|||||||||||||
Assets: |
||||||||||||||||
Short-term investments |
— |
— | ||||||||||||||
Investment in equity method investee under fair value option |
— | — | ||||||||||||||
Liabilities: |
||||||||||||||||
Guarantee liabilities |
— | — | ||||||||||||||
Convertible senior notes |
— | — | ||||||||||||||
As of December 31, 2021 | ||||||||||||||||
Active market (Level 1) |
Observable input (Level 2) |
Non-observable input (Level 3) |
Total | |||||||||||||
RMB | RMB | RMB | RMB | |||||||||||||
Assets: |
||||||||||||||||
Short-term investments |
||||||||||||||||
Long-term investments |
— | — | ||||||||||||||
Derivative instruments |
— | |
— | |||||||||||||
Liabilities: |
||||||||||||||||
Guarantee liabilities |
— | — | ||||||||||||||
Convertible senior notes |
— | — | ||||||||||||||
As of December 31, 2021 | ||||||||||||||||
Active market (Level 1) |
Observable input (Level 2) |
Non-observable input (Level 3) |
Total | |||||||||||||
US$ | US$ | US$ | US$ | |||||||||||||
Assets: |
||||||||||||||||
Short-term investments |
||||||||||||||||
Long-term investments |
— | — | ||||||||||||||
Derivative instruments |
— | — | ||||||||||||||
Liabilities: |
||||||||||||||||
Guarantee liabilities |
— | — | ||||||||||||||
Convertible senior notes |
— | — |
Range of Inputs Weighted - Average As of December 31, |
||||||||||
Financial Liabilities |
Unobservable Input |
2020 | 2021 | |||||||
Guarantee liabilities |
Discount rates | |||||||||
Expected delinquency rates |
Name of related parties |
Relationship with the Company | |
Luo Min |
||
Key management and their immediate families |
Number of options | Weighted average exercise price |
Weighted average grant date fair value |
Weighted average remaining contractual term |
Aggregated intrinsic value |
||||||||||||||||
RMB | RMB | Years | RMB | |||||||||||||||||
Balance, December 31, 2019 |
— | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Granted |
— | |||||||||||||||||||
Exercised |
( |
) | — | |||||||||||||||||
Forfeited |
( |
) | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance, December 31, 2020 |
— | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Exercised |
( |
) | — | |||||||||||||||||
Forfeited |
( |
) | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance, December 31, 2021 |
— | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Vested and expected to vest as of December 31, 2021 |
— | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Exercisable, December 31, 2021 |
— | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
For the years ended December 31, | ||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Sales and marketing |
||||||||||||||||
General and administrative |
||||||||||||||||
Research and development |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
As of December 31, |
||||||||||||
2020 |
2021 |
|||||||||||
RMB |
RMB |
US$ |
||||||||||
ASSETS: |
||||||||||||
Current assets: |
||||||||||||
Cash and cash equivalents |
||||||||||||
Short-term investments |
||||||||||||
Short-term amounts due from related parties |
||||||||||||
|
|
|
|
|
|
|||||||
Total current assets |
||||||||||||
|
|
|
|
|
|
|||||||
Non-current assets: |
||||||||||||
Investments in subsidiaries, VIEs and VIEs’ subsidiaries |
||||||||||||
|
|
|
|
|
|
|||||||
Total non-current assets |
||||||||||||
|
|
|
|
|
|
|||||||
TOTAL ASSETS |
||||||||||||
|
|
|
|
|
|
|||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY: |
||||||||||||
Current liabilities: |
||||||||||||
Accrued expenses and other current liabilities |
||||||||||||
Short-term amounts due to related parties |
||||||||||||
|
|
|
|
|
|
|||||||
Total current liabilities |
||||||||||||
|
|
|
|
|
|
As of December 31, |
||||||||||||
2020 |
2021 |
|||||||||||
RMB |
RMB |
US$ |
||||||||||
Non-current liabilities |
||||||||||||
Convertible senior notes |
||||||||||||
|
|
|
|
|
|
|||||||
Total non-current liabilities |
||||||||||||
|
|
|
|
|
|
|||||||
TOTAL LIABILITIES |
||||||||||||
|
|
|
|
|
|
|||||||
Commitments and contingencies |
||||||||||||
Shareholders’ equity |
||||||||||||
Class A Ordinary shares (US$ |
||||||||||||
Class B Ordinary shares (US$ |
||||||||||||
Treasury shares |
( |
) | ( |
) | ( |
) | ||||||
Additional paid-in capital |
||||||||||||
Accumulated other comprehensive loss |
( |
) | ( |
) | ( |
) | ||||||
Retained earnings |
||||||||||||
|
|
|
|
|
|
|||||||
Total shareholders’ equity |
||||||||||||
|
|
|
|
|
|
|||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||||||
|
|
|
|
|
|
For the years ended December 31, | ||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Share-based compensation expense |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
General and administrative |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Interest and investment income, net |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Other non-interest income |
||||||||||||||||
Foreign exchange loss, net |
||||||||||||||||
Income from the repurchase of convertible senior notes |
— | |||||||||||||||
Share of profit in subsidiaries, VIEs and VIEs’ subsidiaries |
||||||||||||||||
Net income before income taxes |
||||||||||||||||
Income tax expense |
— | — | — | — | ||||||||||||
Net income |
||||||||||||||||
Other comprehensive income |
||||||||||||||||
Foreign currency translation adjustment |
( |
) | ( |
) | ( |
) | ||||||||||
Total comprehensive income |
||||||||||||||||
For the years ended December 31, | ||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
Cash flows from operating activities: |
||||||||||||||||
Net income |
||||||||||||||||
Adjustments to reconcile net income to net cash used in operating activities: |
||||||||||||||||
Share of profit in subsidiaries, VIEs and VIEs’ subsidiaries |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Share-based compensation expense |
||||||||||||||||
Income from the repurchase of convertible senior notes |
— | ( |
) | ( |
) | ( |
) | |||||||||
Accrued interest of convertible senior notes |
||||||||||||||||
Unrealized investment income of short-term Investments |
— | — | ||||||||||||||
Foreign exchange (income)/loss net |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Changes in operating assets and liabilities: |
||||||||||||||||
Receivables from related party |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Payable to employees |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Other current receivables |
||||||||||||||||
Other current payables |
( |
) | ( |
) | ||||||||||||
Net cash used in operating activities |
( |
) |
( |
) |
( |
) |
( |
) |
For the years ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
Net cash provided by /(used in) investing activities |
( |
) |
( |
) | ||||||||||||
Net cash provided by/(used in) financing activities |
( |
) |
( |
) |
( |
) | ||||||||||
Effect of exchange rate changes on cash and cash equivalents |
||||||||||||||||
Net increase/(decrease) in cash and cash equivalents |
( |
) |
( |
) |
( |
) | ||||||||||
Cash and cash equivalents at beginning of the year |
||||||||||||||||
Cash and cash equivalents at end of the year |
||||||||||||||||
Exhibit 8.1
LIST OF SUBSIDIARIES AND CONSOLIDATED VARIABLE INTEREST ENTITIES OF
QUDIAN INC.
(as of December 31, 2021)
Subsidiaries |
Jurisdiction of Incorporation | |
Qufenqi (Ganzhou) Information Technology Co., Ltd.* 趣分期(赣州)信息技术有限公司 |
PRC | |
Xiamen Happy Time Technology Co., Ltd.* 厦门快乐时代科技有限公司 |
PRC | |
Qufenqi (HK) Limited |
Hong Kong | |
QD Technologies Limited |
British Virgin Islands | |
Tianjin Qudian Financial Lease Co. Ltd.* 天津趣店融资租赁有限公司 |
PRC | |
QD Data Limited |
Hong Kong | |
Xiamen Qudian Financial Lease Co., Ltd.* 厦门趣店融资租赁有限公司 |
PRC | |
Jinan Qudian Car Leasing Co., Ltd.* 济南趣店汽车租赁有限公司 |
PRC | |
Wenzhou Qudian Car Leasing Co., Ltd.* 温州趣店汽车租赁有限公司 |
PRC | |
Nanchang Qudian Car Leasing Co., Ltd.* 南昌趣店汽车租赁有限公司 |
PRC | |
Ningxia Qudian Car Leasing Co., Ltd.* 宁夏趣店汽车租赁有限公司 |
PRC | |
Shijiazhuang Qudian Car Leasing Co., Ltd.* 石家庄趣店汽车租赁有限公司 |
PRC | |
Gansu Qudian Car Sale & Service Co., Ltd.* 甘肃趣店汽车销售有限公司 |
PRC | |
Shenyang Qudian Car Leasing Co., Ltd.* 沈阳趣店汽车租赁有限公司 |
PRC | |
Chongqing Qudian Car Leasing Co., Ltd.* 重庆趣店汽车租赁有限公司 |
PRC | |
Suzhou Qudian Car Leasing Co., Ltd.* 苏州趣店汽车租赁有限公司 |
PRC | |
Taiyuan Qudian Car Leasing Co., Ltd.* 太原趣店汽车租赁有限公司 |
PRC | |
Xiamen Qudian Car Sale & Service Co., Ltd.* 厦门趣店汽车销售服务有限公司 |
PRC | |
Zhengzhou Qudian Car Leasing Co., Ltd.* 郑州趣店汽车租赁有限公司 |
PRC | |
Guiyang Qudian Car Leasing Co., Ltd.* 贵阳趣店汽车租赁有限公司 |
PRC | |
Chengdu Qudian Car Leasing Co., Ltd.* 成都趣店汽车租赁有限公司 |
PRC | |
Nanjing Qudian Car Leasing Co., Ltd.* 南京趣店汽车租赁有限公司 |
PRC | |
Xiamen Xincheng Youda Financing Guarantee Ltd.* 厦门信诚友达融资担保有限公司 |
PRC | |
Xiamen Youqi Technology Co., Ltd.* 厦门友契科技有限公司 |
PRC | |
Xiamen Youdun Technology Co., Ltd.* 厦门友盾科技有限公司 |
PRC | |
Consolidated Variable Interest Entities (VIEs) |
Jurisdiction of Incorporation | |
Beijing Happy Time Technology Development Co., Ltd.* 北京快乐时代科技发展有限公司 |
PRC | |
Xiamen Qudian Technology Co., Ltd.* 厦门趣店科技有限公司 |
PRC | |
Ganzhou Qudian Technology Co., Ltd.* 赣州趣店科技有限公司 |
PRC | |
Xiamen Weipujia Technology Co., Ltd.* 厦门唯谱家科技有限公司 |
PRC | |
Xiamen Qu Plus Plus Technology Development Co., Ltd* 厦门趣加加科技发展有限公司 |
PRC |
Subsidiaries of Consolidated VIEs |
Jurisdiction of Incorporation | |
Ganzhou Happy Fenqi Network Service Co., Ltd.* 赣州快乐分期网络服务有限公司 |
PRC | |
Xinjiang Qudian Technology Co., Ltd. * 新疆趣店科技有限公司 |
PRC | |
Fuzhou High-tech Zone Microcredit Co., Ltd.* 抚州高新区趣分期小额贷款有限公司 |
PRC | |
Qufenqi (Beijing) Information Technology Co., Ltd.* 趣分期(北京)信息技术有限公司 |
PRC | |
Fuzhou Happy Time Technology Development Co., Ltd.* 抚州快乐时代科技发展有限公司 |
PRC | |
Xiamen Qudian Commercial Factoring Co., Ltd.* 厦门趣店商业保理有限公司 |
PRC | |
Ganzhou Happy Time E-Commerce Co., Ltd.* 赣州快乐时代电子商务有限公司 |
PRC | |
Xiamen Junda Network Technology Co., Ltd.* 厦门均达网络科技有限公司 |
PRC | |
Tianjin Qufenqi Technology Co., Ltd.* 天津趣分期科技有限公司 |
PRC | |
Yihuang Qudian Technology Development Co., Ltd.* 宜黄县趣店科技发展有限公司 |
PRC | |
Jiangxi Chunmian Technology Development Co., Ltd.* 江西春眠科技发展有限公司 |
PRC | |
Tianjin Happy Time Technology Development Co., Ltd.* 天津快乐时代科技发展有限公司 |
PRC | |
Xiamen Wanlimu Technology Co., Ltd.* 厦门万里目科技有限公司 |
PRC | |
Xiamen Qudian Football Club Co., Ltd.*
厦门趣店足球俱乐部有限公司 |
PRC |
* | The English name of this subsidiary, consolidated VIE or subsidiary of consolidated VIE, as applicable, has been translated from its Chinese name. |
Exhibit 12.1
Certification by the Chief Executive Officer
Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
I, Min Luo, certify that:
1. | I have reviewed this annual report on Form 20-F of Qudian Inc. (the Company); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report; |
4. | The Companys other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the Companys disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the Companys internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the companys internal control over financial reporting; and |
5. | The Companys other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Companys auditors and the audit committee of the Companys board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the companys ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Companys internal control over financial reporting. |
Date: | April 29, 2022 | |
By: | /s/ Min Luo | |
Name: | Min Luo | |
Title: | Chairman and Chief Executive Officer |
Exhibit 12.2
Certification by the Principal Financial Officer
Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
I, Yan Gao, certify that:
1. | I have reviewed this annual report on Form 20-F of Qudian Inc. (the Company); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report; |
4. | The Companys other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the Companys disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the Companys internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the companys internal control over financial reporting; and |
5. | The Companys other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Companys auditors and the audit committee of the Companys board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the companys ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Companys internal control over financial reporting. |
Date: | April 29, 2022 | |
By: | /s/ Yan Gao | |
Name: | Yan Gao | |
Title: | Vice President of Finance |
Exhibit 13.1
Certification by the Chief Executive Officer
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
In connection with the annual report of Qudian Inc. (the Company) on Form 20-F for the year ended December 31, 2021 as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Min Luo, Chairman and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | April 29, 2022 | |
By: | /s/ Min Luo | |
Name: | Min Luo | |
Title: | Chairman and Chief Executive Officer |
Exhibit 13.2
Certification by the Principal Financial Officer
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
In connection with the annual report of Qudian Inc. (the Company) on Form 20-F for the year ended December 31, 2021 as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Yan Gao, Vice President of Finance of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | April 29, 2022 | |
By: | /s/ Yan Gao | |
Name: | Yan Gao | |
Title: | Vice President of Finance |
Exhibit 15.1
10/F, Tower B, CPIC Plaza, No. 28 Fengsheng Lane, Xicheng District, Beijing 100032, China
Tel: 86 10 5776 3888 Fax: 86 10 5776 3777
April 29, 2022
Qudian Inc.
Tower A, AVIC Zijin Plaza
Siming District, Xiamen
Fujian Province 361000
Peoples Republic of China
as the Company
Dear Sirs,
We consent to the references to our firm under the heading Item 3. Key InformationD. Risk FactorsRisks Related to Our Corporate Structure If the PRC government deems that the contractual arrangements in relation to our consolidated VIEs do not comply with PRC regulatory restrictions on foreign investment in the relevant industries, or if these regulations or the interpretation of existing regulations change in the future, we could be subject to severe penalties or be forced to relinquish our interests in those operations. and Item 4. Information on the CompanyC. Organizational StructureOur Contractual Arrangements with Consolidated VIEs and Their Shareholders in Qudian Inc.s Annual Report on Form 20-F for the year ended December 31, 2021 (the Annual Report), which is to be filed with the Securities and Exchange Commission (the SEC) on April 29, 2022. We also consent to the filing with the SEC of this consent letter as an exhibit to the Annual Report.
In giving such consent, we do not thereby admit that we come within the category of persons whose consent is required under Section 7 of the Securities Act of 1933, or under the Securities Exchange Act of 1934, in each case, as amended, or the regulations promulgated thereunder.
Yours faithfully,
/s/ Tian Yuan Law Firm
Tian Yuan Law Firm
Exhibit 15.2
Consent of Independent Registered Public Accounting Firm
We consent to the incorporation by reference in the following Registration Statements:
(1) | Registration Statement (Form S-8 No. 333-224249) pertaining to the 2016 Equity Incentive Plan of Qudian Inc., and |
(2) | Registration Statement (Form S-8 No. 333-249085) pertaining to the 2016 Equity Incentive Plan of Qudian Inc; |
of our reports dated April 29, 2022, with respect to the consolidated financial statements of Qudian Inc., and the effectiveness of internal control over financial reporting of Qudian Inc., included in this Annual Report (Form 20-F) of Qudian Inc. for the year ended December 31, 2021.
/s/ Ernst & Young Hua Ming LLP
Shanghai, The Peoples Republic of China
April 29, 2022