Qudian Inc. Announces Change of Auditor

Rhea-AI Summary

Qudian Inc. (NYSE: QD), a consumer-oriented technology company, has announced a change in its independent auditor. The company has appointed BDO China Shu Lun Pan Certified Public Accountants LLP as its new auditor, effective September 6, 2024. This decision replaces Ernst & Young Hua Ming LLP (EY) and was approved by Qudian's Audit Committee and Board of Directors.

The change was not due to any disagreements with EY, and EY's previous audit reports for 2022 and 2023 were unqualified. Qudian affirmed that there were no reportable events or disagreements with EY during the audited periods. The company also confirmed that it had not consulted with BDO on any accounting or auditing matters prior to their engagement.

Positive

• Smooth transition to new auditor without any reported disagreements or issues
• Previous audit reports for 2022 and 2023 were unqualified, indicating clean financial statements

Negative

• None.

XIAMEN, China, Sept. 6, 2024 /PRNewswire/ -- Qudian Inc. ("Qudian" or "the Company" or "We") (NYSE: QD), a consumer-oriented technology company, today announced the appointment of BDO China Shu Lun Pan Certified Public Accountants LLP ("BDO") as the Company's independent registered public accounting firm, effective on September 6, 2024.

BDO succeeds Ernst & Young Hua Ming LLP ("EY"), which previously was the independent auditor providing audit services to the Company. The change of the Company's independent auditor was made after careful consideration and was approved by the Audit Committee and the Board of Directors of the Company. The decision to change auditor was not as a result of any disagreement between the Company and EY on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures.

EY's audit reports on the Company's consolidated financial statements as of and for the years ended December 31, 2022 and 2023 did not contain an adverse opinion or a disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope, or accounting principles.

During each of the years ended December 31, 2022 and 2023, and during the subsequent interim period through September 6, 2024, there have been (i)  no disagreements (as defined in Item 16F(a)(1)(iv) of Form 20-F and the related instructions thereto) with EY on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of EY, would have caused EY to make reference to the subject matter of the disagreements in connection with its reports on the consolidated financial statements for such years, and (ii) no reportable events (as defined in Item 16F(a)(1)(v) of Form 20-F).

During the Company's two most recent fiscal years ended December 31, 2023, and during the subsequent interim period prior to the engagement of BDO on September 6, 2024, neither the Company nor anyone acting on its behalf consulted with BDO on either (a) the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Company's financial statements, and neither a written report nor oral advice was provided to the Company by BDO that BDO concluded was an important factor considered by the Company in reaching a decision as to any accounting, auditing or financial reporting issue, or (b) any matter that was the subject of a disagreement, as that term is defined in Item 16F(a)(1)(iv) of Form 20-F (and the related instructions thereto) or a reportable event as set forth in Item 16F(a)(1)(v) of Form 20-F.

The Company is working closely with EY and BDO to ensure a seamless transition.

The Board of Directors of the Company would like to express its sincere gratitude to EY for its professionalism and quality of services rendered to the Company over the past few years.

About Qudian Inc.

Qudian is a consumer-oriented technology company. The Company historically focused on providing credit solutions to consumers. Qudian is exploring innovative logistics services to satisfy consumers' demand for e-commerce transactions by leveraging its technology capabilities.

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

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SOURCE Qudian Inc.

FAQ

Who is Qudian's new independent auditor as of September 6, 2024?

Qudian Inc. (NYSE: QD) has appointed BDO China Shu Lun Pan Certified Public Accountants LLP as its new independent auditor, effective September 6, 2024.

Why did Qudian Inc. (QD) change its auditor in September 2024?

Qudian Inc. stated that the change of auditor was made after careful consideration and was approved by the Audit Committee and Board of Directors. The decision was not due to any disagreements with the previous auditor, Ernst & Young Hua Ming LLP.

Were there any issues with Qudian's (QD) financial statements for 2022 and 2023?

No, Ernst & Young Hua Ming LLP's audit reports for Qudian's 2022 and 2023 financial statements did not contain any adverse opinions, disclaimers, qualifications, or modifications regarding uncertainty, audit scope, or accounting principles.

Did Qudian (QD) consult with BDO before appointing them as auditors in September 2024?

Qudian Inc. confirmed that neither the company nor anyone acting on its behalf consulted with BDO on any accounting, auditing, or financial reporting issues prior to their engagement on September 6, 2024.