Form 6-K
Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

OF THE SECURITIES EXCHANGE ACT OF 1934

June 2022

 

 

Commission File Number: 001-38230

 

 

QUDIAN INC.

 

 

Tower A, AVIC Zijin Plaza,

Siming District, Xiamen, Fujian Province 361000,

China

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F  ☒             Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes  ☐            No  ☒

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A

 

 

 


Table of Contents

TABLE OF CONTENTS

 

Exhibit 99.1    Press release: Qudian Inc. Reports First Quarter 2022 Unaudited Financial Results

 

2


Table of Contents

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

QUDIAN INC.
By:  

/s/ Yan Gao

Name:       Yan Gao
Title:   Vice President of Finance

Date: June 16, 2022

 

3

EX-99.1

Exhibit 99.1

Qudian Inc. Reports First Quarter 2022

Unaudited Financial Results

XIAMEN, China, June 13, 2022/PRNewswire/ — Qudian Inc. (“Qudian” or “the Company” or “We”) (NYSE: QD), a consumer-oriented technology company in China, today announced its unaudited financial results for the quarter ended March 31, 2022.

First Quarter 2022 Operational Highlights:

 

   

Number of outstanding borrowers[1] from loan book business as of March 31, 2022 decreased by 3.5% to 2.6 million from 2.7 million as of December 31, 2021, as a result of the Company’s deployment of a conservative and prudent strategy

 

   

Total outstanding loan balance from loan book business[2] decreased by 41.3% to RMB1.5 billion as of March 31, 2022 from RMB2.6 billion as of December 31, 2021

 

   

Amount of transactions from loan book business for this quarter decreased by 29.8% to RMB2.1 billion from the fourth quarter of 2021

 

   

Weighted average loan tenure for our loan book business was 2.3 months for this quarter, compared to 3.9 months for the fourth quarter of 2021

 

[1] 

Outstanding borrowers are borrowers who have outstanding loans from the Company’s loan book business as of a particular date.

[2] 

Includes (i) off and on balance sheet loans directly or indirectly funded by our institutional funding partners or our own capital, net of cumulative write-offs and (ii) does not include auto loans from Dabai Auto business.

First Quarter 2022 Financial Highlights:

 

   

Total revenues were RMB201.8 million (US$31.8 million), compared to RMB515.7 million for the same period of last year

 

   

Net loss attributable to Qudian’s shareholders was RMB142.8 million (US$22.5 million), compared to an income of RMB478.4 million for the same period of last year, or net loss of RMB0.56 (US$0.09) per diluted ADS

 

   

Non-GAAP net loss attributable to Qudian’s shareholders[3] was RMB144.5 million (US$22.8 million), compared to non-GAAP net income attributable to Qudian’s shareholders of RMB488.3 million for the same period of last year, or Non-GAAP net loss of RMB0.57 (US$0.09) per diluted ADS


[3] 

For more information on this Non-GAAP financial measure, please see the table captioned “Unaudited Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this press release.

“During the first quarter of 2022, we maintained our stringent approach toward our cash credit business amid the complex macro-environment, funding all transactions by our on-balance sheet capital,” said Mr. Min Luo, Founder, Chairman and Chief Executive Officer of Qudian. “Furthermore, our new ready-to-cook meals business, QD Food, has made steady progress since it launched in March 2022 in Guangdong province. We expect to expand its footprint across the nation and will provide more details on the development of this business as we continue to build it. Moving forward, we will maintain our prudent operating strategy for the cash credit business, focus on advancing our ready-to-cook food business and strive to create new engines for sustainable development.”

“Driven by our consistent efforts to control credit risk, our asset quality has remained stable, evidenced by the D1 delinquency rate[4] maintaining a steady level at around 5% as of the end of May 2022. In parallel with our efforts to reinforce the health of our balance sheet, we keep persevering with safeguarding the interests of our stakeholders. We will continue implementing our share repurchase program, reflecting our confidence in the robustness of our financial position. As always, we are committed to driving sustainable value for all of our stakeholders in the long run,” said Ms. Sissi Zhu, Vice President of Investor Relations of Qudian.

 

[4] 

“D1 delinquency rate” is defined as (i) the total amount of principal and financing service fees that became overdue as of a specified date, divided by (ii) the total amount of principal and financing services fees that was due for repayment as of such date, in each case with respect to our loan book business.

First Quarter Financial Results

Total revenues were RMB201.8 million (US$31.8 million), representing a decrease of 60.9% from RMB515.7 million for the first quarter of 2021.

Financing income totaled RMB177.9 million (US$28.1 million), representing a decrease of 50.8% from RMB361.8 million for the first quarter of 2021, as a result of the decrease in the average on-balance sheet loan balance.

Loan facilitation income and other related income decreased by 96.1% to RMB0.5 million (US$0.1 million) from RMB12.2 million for the first quarter of 2021, as a result of the reduction in transaction volume of off-balance sheet loans during this quarter.


Transaction services fee and other related income decreased to RMB2.0 million (US$0.3 million) from RMB50.6 million for the first quarter of 2021, mainly as a result of the winding down of the transaction service business.

Sales income and others decreased to RMB4.1 million (US$0.7 million) from RMB62.5 million for the first quarter of 2021, mainly due to the decrease in sales related to the Wanlimu e-commerce platform, which we are in the process of winding down.

Total operating costs and expenses increased to RMB285.5 million (US$45.0 million) from RMB63.3 million for the first quarter of 2021.

Cost of revenues decreased by 64.7% to RMB32.1 million (US$5.1 million) from RMB91.0 million for the first quarter of 2021, primarily due to the decrease in cost of goods sold related to the Wanlimu e-commerce platform.

Sales and marketing expenses decreased by 38.5% to RMB23.1 million (US$3.6 million) from RMB37.6 million for the first quarter of 2021, primarily due to the decrease in marketing expenses related to the Wanlimu e-commerce platform.

General and administrative expenses increased by 77.6% to RMB118.4 million (US$18.7 million) from RMB66.7 million for the first quarter of 2021, primarily due to the increase in the milestone payments relating to construction contracts for the WLM Kids business which were signed in 2021. We are in the process of downsizing the WLM Kids business.

Research and development expenses decreased by 50.0% to RMB19.6 million (US$3.1 million) from RMB39.2 million for the first quarter of 2021, as a result of the decrease in staff salaries.

Provision for receivables and other assets was RMB11.9 million (US$1.9 million) for the first quarter of 2022, mainly as a result of the impairment of current assets related to the WLM Kids business compared to a reversal of RMB106.8 million regarding on-balance sheet loan book business for the same period of last year.

Impairment loss from long-lived assets was RMB113.5 million (US$17.9 million) for this quarter, as the results of the downsizing of the WLM Kids business.

As of March 31, 2022, the total balance of outstanding principal and financing service fee receivables for on-balance sheet transactions for which any installment payment was more than 30 calendar days past due was RMB154.7 million (US$24.4 million), and the balance of allowance for principal and financing service fee receivables at the end of the period was RMB230.9 million (US$36.4 million), indicating M1+ Delinquency Coverage Ratio of 1.5x.


The following charts display the “vintage charge-off rate.” Total potential receivables at risk vintage charge-off rate refers to, with respect to on- and off-balance sheet transactions facilitated under the loan book business during a specified time period, the total potential outstanding principal balance of the transactions that are delinquent for more than 180 days up to twelve months after origination, divided by the total initial principal of the transactions facilitated in such vintage. Delinquencies may increase or decrease after such 12-month period.

M6+ Charge-off Rate by Vintage

Include Total Potential Receivables at Risk

 

LOGO

Current receivables at risk vintage charge-off rate refers to, with respect to on- and off-balance sheet transactions facilitated under the loan book business during a specified time period, the actual outstanding principal balance of the transactions that are delinquent for more than 180 days up to twelve months after origination, divided by the total initial principal of the transactions facilitated in such vintage. Delinquencies may increase or decrease after such 12-month period.


M6+ Charge-off Rate by Vintage

Only Include Current Receivables at Risk

 

LOGO

Total potential receivables at risk M1+ delinquency rate by vintage refers to, with respect to on- and off-balance sheet transactions facilitated under the loan book business during a specified time period, the total potential outstanding principal balance of the transactions that are delinquent for more than 30 days up to twelve months after origination, divided by the total initial principal of the transactions facilitated in such vintage. Delinquencies may increase or decrease after such 12-month period.

M1+ Delinquency by Vintage

Include Total Potential Receivables at Risk

 

LOGO

Current receivables at risk M1+ delinquency rate by vintage refers to, with respect to on- and off-balance sheet transactions facilitated under the loan book business during a specified time period, the actual outstanding principal balance of the transactions that are delinquent for more than 30 days up to twelve months after origination, divided by the total initial principal of the transactions facilitated in such vintage. Delinquencies may increase or decrease after such 12-month period.


M1+ Delinquency by Vintage

Only Include Current Receivables at Risk

 

LOGO

Loss from operations was RMB66.4 million (US$10.5 million), compared to income from operations of RMB464.8 million for the first quarter of 2021.

Net loss attributable to Qudian’s shareholders was RMB142.8 million (US$22.5 million), or net loss of RMB0.56 (US$0.09) per diluted ADS.

Non-GAAP net loss attributable to Qudian’s shareholders was RMB144.5 million (US$22.8 million), or Non-GAAP net loss of RMB0.57 (US$0.09) per diluted ADS.

Cash Flow

As of March 31, 2022, the Company had cash and cash equivalents of RMB2,245.4 million (US$354.2 million) and restricted cash of RMB229.1 million (US$36.1 million). Restricted cash mainly represents security deposits held in designated bank accounts for the guarantee of on-and-off balance sheet transactions. Such restricted cash is not available to fund the general liquidity needs of the Company.

For the first quarter of 2022, net cash provided by operating activities was RMB567.2 million (US$89.5 million), mainly due to the cash withdrawal from third-party payment service providers. Net cash provided by investing activities was RMB43.1 million (US$6.8 million), mainly due to the net proceeds of loan principal and partially offset by the payments of deposit pledged as collateral for derivative instruments. Net cash used in financing activities was RMB377.8 million (US$59.6 million), mainly due to the repurchase of ordinary shares and convertible senior notes.


Update on Share Repurchase and Convertible Bond Repurchase

As of the date of this release, the Company has repurchased and cancelled a total principal amount of convertible senior notes of US$297.5 million. The Company has cumulatively completed total share repurchases of approximately US$581.2 million.

About Qudian Inc.

Qudian Inc. (“Qudian”) is a consumer-oriented technology company in China. The Company historically focused on providing credit solutions to consumers. The Company is exploring innovative consumer products and services to satisfy Chinese consumers’ fundamental and daily needs by leveraging its technology capabilities. In March 2022, it launched a ready-to-cook meal business catering to working-class consumers in China.

For more information, please visit http://ir.qudian.com.

Use of Non-GAAP Financial Measures

We use adjusted net income/loss, a Non-GAAP financial measure, in evaluating our operating results and for financial and operational decision-making purposes. We believe that adjusted net income/loss helps identify underlying trends in our business by excluding the impact of share-based compensation expenses, which are non-cash charges, and convertible bonds buyback income, which is non-cash and non-recurring. We believe that adjusted net income/loss provides useful information about our operating results, enhances the overall understanding of our past performance and future prospects and allows for greater visibility with respect to key metrics used by our management in its financial and operational decision-making.

Adjusted net income/loss is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. This Non-GAAP financial measure has limitations as analytical tools, and when assessing our operating performance, cash flows or our liquidity, investors should not consider them in isolation, or as a substitute for net loss / income, cash flows provided by operating activities or other consolidated statements of operation and cash flow data prepared in accordance with U.S. GAAP.

We mitigate these limitations by reconciling the Non-GAAP financial measure to the most comparable U.S. GAAP performance measure, all of which should be considered when evaluating our performance.


For more information on this Non-GAAP financial measure, please see the table captioned “Unaudited Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this press release.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB6.3393 to US$1.00, the noon buying rate in effect on March 31, 2022 in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all.

Statement Regarding Preliminary Unaudited Financial Information

The unaudited financial information set out in this earnings release is preliminary and subject to potential adjustments. Adjustments to the consolidated financial statements may be identified when audit work has been performed for the Company’s year-end audit, which could result in significant differences from this preliminary unaudited financial information.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the expectation of its collection efficiency and delinquency, contain forward-looking statements. Qudian may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Qudian’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Qudian’s goal and strategies; Qudian’s expansion plans; Qudian’s future business development, financial condition and results of operations; Qudian’s expectations regarding demand for, and market acceptance of, its products; Qudian’s expectations regarding keeping and strengthening its relationships with customers, business partners and other parties it collaborates with; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Qudian’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Qudian does not undertake any obligation to update any forward-looking statement, except as required under applicable law.


For investor and media inquiries, please contact:

In China:

Qudian Inc.

Tel: +86-592-596-8208

E-mail: ir@qudian.com

The Piacente Group, Inc.

Jenny Cai

Tel: +86 (10) 6508-0677

E-mail: qudian@tpg-ir.com

In the United States:

The Piacente Group, Inc.

Brandi Piacente

Tel: +1-212-481-2050

E-mail: qudian@tpg-ir.com


QUDIAN INC.

Unaudited Condensed Consolidated Statements of Operations

 

     Three months ended March 31,  
(In thousands except for number    2021     2022  
of shares and per-share data)    (Unaudited)     (Unaudited)     (Unaudited)  
     RMB     RMB     US$  

Revenues:

      

Financing income

     361,754       177,901       28,063  

Sales commission fee

     10,748       21       3  

Sales income and others

     62,530       4,141       653  

Penalty fee

     17,823       17,311       2,731  

Loan facilitation income and other related income

     12,200       472       74  

Transaction services fee and other related income

     50,649       1,973       311  
  

 

 

   

 

 

   

 

 

 

Total revenues

     515,704       201,819       31,835  

Operating cost and expenses:

      

Cost of revenues

     (91,012     (32,130     (5,068

Sales and marketing

     (37,559     (23,083     (3,641

General and administrative

     (66,693     (118,429     (18,682

Research and development

     (39,190     (19,576     (3,088

Changes in guarantee liabilities and risk assurance liabilities(1)

     64,379       33,119       5,224  

Provision for receivables and other assets

     106,809       (11,891     (1,876

Impairment loss from long-lived assets

     —         (113,528     (17,909
  

 

 

   

 

 

   

 

 

 

Total operating cost and expenses

     (63,266     (285,518     (45,040

Other operating income

     12,371       17,266       2,724  

(Loss)/Income from operations

     464,809       (66,433     (10,481

Interest and investment (loss)/income, net

     87,892       (42,274     (6,669

Gain from equity method investments

     —         1,443       228  

Gain on derivative instruments

     —         60,367       9,523  

Foreign exchange gain/(loss), net

     (219     85       13  

Other income

     5,094       79       12  

Other expenses

     (206     (2,039     (322
  

 

 

   

 

 

   

 

 

 

Net (loss)/income before income taxes

     557,370       (48,772     (7,696

Income tax expenses

     (79,175     (94,115     (14,846
  

 

 

   

 

 

   

 

 

 

Net (loss)/income

     478,195       (142,887     (22,542

Net (loss)/profit attributable to non-controlling interest shareholders

     (167     (88     (14
  

 

 

   

 

 

   

 

 

 

Net (loss)/income attributable to Qudian Inc.’s shareholders

     478,362       (142,799     (22,526
  

 

 

   

 

 

   

 

 

 

(Loss)/Earnings per share for Class A and Class B ordinary shares:

      

Basic

     1.89       (0.56     (0.09

Diluted

     1.81       (0.56     (0.09

(Loss)/Earnings per ADS (1 Class A ordinary share equals 1 ADSs):

      

Basic

     1.89       (0.56     (0.09

Diluted

     1.81       (0.56     (0.09

Weighted average number of Class A and Class B ordinary shares outstanding:

      

Basic

     253,044,009       253,735,434       253,735,434  

Diluted

     266,647,286       259,137,777       259,137,777  

Other comprehensive (loss)/gain:

      

Foreign currency translation adjustment

     2,260       (1,050     (166
  

 

 

   

 

 

   

 

 

 

Total comprehensive (loss)/income

     480,622       (143,849     (22,693
  

 

 

   

 

 

   

 

 

 

Total comprehensive (loss)/income attributable to Qudian Inc.’s shareholders

     480,622       (143,849     (22,693
  

 

 

   

 

 

   

 

 

 

Note:

(1): The amount includes the change in fair value of the guarantee liabilities accounted in accordance with ASC 815,“Derivative”, and the change in risk assurance liabilities accounted in accordance with ASC 450, “Contingencies” and ASC 460, “Guarantees”.

  


QUDIAN INC.

Unaudited Condensed Consolidated Balance Sheets

 

     As of December 31,      As of March 31,  
(In thousands except for number    2021      2022  
of shares and per-share data)    (Audited)      (Unaudited)      (Unaudited)  
     RMB      RMB      US$  

ASSETS:

        

Current assets:

        

Cash and cash equivalents

     2,065,495        2,245,403        354,204  

Restricted cash

     177,925        229,130        36,144  

Derivative instrument

     17,376        11,289        1,781  

Short-term investments

     5,926,601        6,036,136        952,177  

Short-term loan principal and financing service fee receivables

     2,371,966        1,319,751        208,186  

Short-term finance lease receivables

     31,462        11,875        1,873  

Short-term contract assets

     27,965        19,001        2,997  

Other current assets

     1,599,300        1,941,411        306,250  
  

 

 

    

 

 

    

 

 

 

Total current assets

     12,218,090        11,813,996        1,863,612  
  

 

 

    

 

 

    

 

 

 

Non-current assets:

        

Long-term finance lease receivables

     399        15        2  

Operating lease right-of-use assets

     300,607        271,545        42,835  

Investment in equity method investee

     85,582        119,038        18,778  

Long-term investments

     286,065        268,921        42,421  

Property and equipment, net

     659,101        643,734        101,547  

Intangible assets

     11,012        11,070        1,746  

Long-term contract assets

     31        1        —    

Deferred tax assets, net

     87,286        51,706        8,156  

Other non-current assets

     442,952        430,551        67,918  
  

 

 

    

 

 

    

 

 

 

Total non-current assets

     1,873,035        1,796,581        283,403  
  

 

 

    

 

 

    

 

 

 

TOTAL ASSETS

     14,091,125        13,610,577        2,147,015  
  

 

 

    

 

 

    

 

 

 


QUDIAN INC.

Unaudited Condensed Consolidated Balance Sheets

 

     As of December 31,     As of March 31,  
(In thousands except for number    2021     2022  
of shares and per-share data)    (Audited)     (Unaudited)     (Unaudited)  
     RMB     RMB     US$  

LIABILITIES AND SHAREHOLDERS’ EQUITY

      

Current liabilities:

      

Short-term lease liabilities

     37,470       38,640       6,095  

Accrued expenses and other current liabilities

     376,868       387,372       61,107  

Guarantee liabilities and risk assurance liabilities(2)

     886       658       104  

Income tax payable

     78,294       115,016       18,143  
  

 

 

   

 

 

   

 

 

 

Total current liabilities

     493,518       541,686       85,449  
  

 

 

   

 

 

   

 

 

 

Non-current liabilities:

      

Deferred tax liabilities, net

     68,543       85,495       13,487  

Convertible senior notes

     681,401       300,312       47,373  

Long-term lease liabilities

     168,800       160,679       25,346  

Long-term borrowings and interest payables

     145,312       145,312       22,922  

Other non-current liabilities

     10,012       629       99  
  

 

 

   

 

 

   

 

 

 

Total non-current liabilities

     1,074,068       692,427       109,227  
  

 

 

   

 

 

   

 

 

 

Total liabilities

     1,567,586       1,234,113       194,676  
  

 

 

   

 

 

   

 

 

 

Shareholders’ equity:

      

Class A Ordinary shares

     132       132       21  

Class B Ordinary shares

     44       44       7  

Treasury shares

     (346,321     (351,436     (55,438

Additional paid-in capital

     4,017,375       4,019,352       634,037  

Accumulated other comprehensive loss

     (58,997     (60,047     (9,472

Non-controlling interests

     6,853       6,765       1,067  

Retained earnings

     8,904,453       8,761,654       1,382,117  
  

 

 

   

 

 

   

 

 

 

Total shareholders’ equity

     12,523,539       12,376,464       1,952,339  
  

 

 

   

 

 

   

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

     14,091,125       13,610,577       2,147,015  
  

 

 

   

 

 

   

 

 

 

 

Note:

(2)   The amount includes the balance of the guarantee liabilities accounted in accordance with ASC 815,“Derivative”, and the balance of risk assurance liabilities accounted in accordance with ASC 450, “Contingencies” and ASC 460, “Guarantees”.

    


QUDIAN INC.

Unaudited Reconciliation of GAAP And Non-GAAP Results

 

     Three months ended March 31,  
     2021      2022  
(In thousands except for number    (Unaudited)      (Unaudited)     (Unaudited)  
of shares and per-share data)    RMB      RMB     US$  

Total net (loss)/income attributable to Qudian Inc.’s shareholders

     478,362        (142,799     (22,526

Add: Share-based compensation expenses

     9,930        7,723       1,218  

Less: Convertible bonds buyback loss

     —          9,460       1,492  
  

 

 

    

 

 

   

 

 

 

Non-GAAP net (loss)/income attributable to Qudian Inc.’s shareholders

     488,292        (144,536     (22,800
  

 

 

    

 

 

   

 

 

 

Non-GAAP net (loss)/income per share—basic

     1.93        (0.57     (0.09

Non-GAAP net (loss)/income per share—diluted

     1.85        (0.57     (0.09

Weighted average shares outstanding—basic

     253,044,009        253,735,434       253,735,434  

Weighted average shares outstanding—diluted

     266,647,286        259,137,777       259,137,777