Qudian Inc. Announces up to US$200 Million Share Repurchase Program

Rhea-AI Summary

Qudian Inc. (NYSE: QD) has authorized a share repurchase program with a budget of US$200 million over the next 24 months, starting June 13, 2022. The program allows repurchase of American depositary shares and Class A ordinary shares through various market transactions. Funding will come from existing cash, and the company expects no negative impact on its business strategies. This initiative reflects confidence in the company’s financial health and aims to enhance shareholder value.

Positive

• Authorization of a $200 million share repurchase program, indicating confidence in financial stability.
• Funding from existing cash reserves ensures no adverse effect on business strategies.
• Potential to enhance shareholder value through stock buybacks.

Negative

• None.

XIAMEN, China, June 14, 2022 /PRNewswire/ -- Qudian Inc. ("Qudian" or "the Company" or "We") (NYSE: QD), a consumer-oriented technology company in China, today announced that its board of directors has authorized a share repurchase program under which the Company may repurchase up to US$200 million worth of its outstanding (i) American depositary shares ("ADSs"), each representing one Class A ordinary share, and/or (ii) Class A ordinary shares over the next 24 months starting from June 13, 2022.

Under the share repurchase program, the Company may repurchase its ADSs from time to time through open market transactions at prevailing market prices, privately negotiated transactions, block trades or any combination thereof. In addition, the Company will also effect repurchase transactions in compliance with Rule 10b5-1 and/or Rule 10b-18 under the Securities Exchange Act of 1934, as amended, and its insider trading policy. The number of ADSs repurchased and the timing of repurchases will depend on a number of factors, including, but not limited to, share price, trading volume and general market conditions, along with the Company's working capital requirements and general business conditions. The Company's board of directors will review the share repurchase program periodically, and may authorize adjustment of its terms and size. The Company plans to fund the repurchases from its existing cash balance and does not expect the repurchase program to adversely affect its existing business strategies.

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.

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 contains 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

View original content:https://www.prnewswire.com/news-releases/qudian-inc-announces-up-to-us200-million-share-repurchase-program-301567324.html

SOURCE Qudian Inc.

FAQ

What is the purpose of Qudian's $200 million share repurchase program?

The program aims to enhance shareholder value and reflects confidence in the company's financial health.

How long will Qudian's share repurchase program last?

The share repurchase program will last for 24 months, starting from June 13, 2022.

What will Qudian use to fund the share buyback?

Qudian plans to fund the repurchase from its existing cash balance.

How does the share repurchase program impact Qudian's stock price?

The program is intended to support Qudian's stock price by reducing the number of shares outstanding.