Qudian Inc. Reports Fourth Quarter and Full Year 2023 Unaudited Financial Results
- None.
- Total revenues decreased by 78.1% from 2022, mainly due to the winding down of the loan book business.
- Qudian reported a net loss of RMB117.1 million for Q4 2023, compared to a net income of RMB490.1 million for the same period last year.
- Non-GAAP net loss was RMB116.6 million for Q4 2023, compared to non-GAAP net income of RMB493.3 million for the same period last year.
Insights
The reported financials of Qudian Inc. reflect a significant downturn in their quarterly revenue, dropping from RMB160.1 million to RMB63.8 million year-over-year. This sharp decline is indicative of a contraction in the company's primary business operations. The net loss reported, both on a GAAP and non-GAAP basis, marks a stark contrast to the net income reported in the previous year, highlighting a substantial shift in the company's profitability.
From an investment perspective, the reduction in revenue and swing to a net loss could signal underlying challenges within the company or sector-specific headwinds. The transition from a loan book business to a focus on smart last-mile delivery indicates a strategic pivot, which may be in response to regulatory changes or market saturation. Investors should monitor how this shift aligns with broader industry trends and the company's ability to execute on its new business model.
The full-year results, however, paint a slightly more positive picture with a return to net income. This suggests that despite a challenging quarter, the company has managed to end the year on a profitable note, potentially due to cost management or other strategic initiatives. The robust balance sheet, with substantial cash reserves, provides financial stability and could support future investments or weather further market volatility.
Qudian's pivot towards the smart last-mile delivery business represents an attempt to capture growth in a burgeoning sector. The revenue generated from this new venture in 2023, approximately RMB95.6 million, demonstrates initial traction, albeit within the context of the company's overall revenue decline. The last-mile delivery market is becoming increasingly competitive, with technology playing a key role in optimizing delivery efficiency and customer satisfaction.
The company's strategic agility, as referenced by CEO Min Luo, will be important in adapting to the fast-paced changes within the delivery industry. Investors should consider the competitive landscape, including existing and new entrants and how Qudian's technology differentiates itself. Furthermore, the company's commitment to cash management and maintaining a robust balance sheet is reassuring, but it remains to be seen how effectively this capital will be deployed to support sustainable growth in the smart last-mile delivery business.
The financial performance of Qudian Inc. can be influenced by macroeconomic factors, including consumer spending habits, regulatory environments and technological advancements. The significant downturn in revenue and the shift from a profitable to a loss-making quarter may reflect broader economic challenges, such as decreased consumer borrowing or increased competition.
However, the company's strategic decision to enter the smart last-mile delivery market could be a response to evolving economic conditions, leveraging the growth in e-commerce and the demand for efficient delivery solutions. The long-term success of this pivot will depend on the company's ability to scale its operations and maintain profitability amidst economic fluctuations. The strong cash position provides a buffer against economic downturns, enabling the company to invest in innovation and market expansion while managing risks.
Fourth Quarter 2023 Financial Highlights:
- Total revenues were
RMB63.8 million (US ), compared to$9.0 million RMB160.1 million for the same period of last year - Net loss attributable to Qudian's shareholders was
RMB117.1 million (US ), compared to net income of$16.5 million RMB490.1 million for the same period of last year; net loss per diluted ADS wasRMB0.57 (US ) for the fourth quarter of 2023$0.08 - Non-GAAP net loss attributable to Qudian's shareholders was
RMB 116.6 million (US ), compared to Non-GAAP net income of$16.4 million RMB493.3 million for the same period of last year. We exclude share-based compensation expenses and convertible bonds buyback income from our non-GAAP measures. Non-GAAP net loss per diluted ADS wasRMB0.57 (US ) for the fourth quarter of 2023$0.08
Full Year 2023 Financial Highlights:
- Total revenues were
RMB126.3 million (US ) for 2023, representing a decrease of$17.8 million 78.1% from 2022, primarily due to the winding down of the loan book business - Net income attributable to Qudian's shareholders was
RMB39.1 million (US ), compared to a loss of$5.5 million RMB362.0 million in 2022; net income per diluted ADS wasRMB0.18 (US ) for 2023$0.03 - Non-GAAP net income attributable to Qudian's shareholders was
RMB 44.1million (US ), compared to a Non-GAAP loss of$6.2 million RMB347.9 million in 2022; non-GAAP net loss per diluted ADS wasRMB0.20 (US ) for 2023$0.03
"We are pleased to announce the exciting advancements in the development of our smart last-mile delivery business, which generated approximately
Mr. Luo continued, "Looking ahead, we are enthusiastic about unveiling our strategic initiative to venture into new online and offline retail business that bridges Chinese supply chain advancements with discerning global consumers, complemented by a "Buy Now, Pay Later" solution. Detailed insights into these endeavors will be communicated in due course."
"Considering our healthy balance sheet, we firmly believe the current market valuation fails to adequately reflect the intrinsic value and potential of Qudian. Consequently, our Board has approved a new share repurchase program in March 2024 to purchase up to
"As of March 13, 2024, the Company has cumulatively purchased 146.7 million ADSs for a total amount of approximately
Fourth Quarter Financial Results
Total revenues were
Financing income, penalty fee, loan facilitation income and other related income and transaction services fee and other related income decreased to nil as a result of the winding down of the loan book business.
Sales income and others increased to
Total operating costs and expenses increased to
Cost of revenues increased to
Sales and marketing expenses decreased by
General and administrative expenses increased by
Research and development expenses increased by
Expected credit loss for receivables and other assets was
Loss from operations was
Interest and investment income, net decreased by
Loss on derivative instrument was
Net loss attributable to Qudian's shareholders was
Non-GAAP net loss attributable to Qudian's shareholders was
Full Year 2023 Financial Results
Total revenues were
Financing income, penalty fee, loan facilitation income and other related income and transaction services fee and other related income decreased to nil as a result of the winding down of the loan book business.
Sales income and others increased to
Total operating costs and expenses decreased by
Cost of revenues decreased by
Sales and marketing expenses decreased by
General and administrative expenses decreased by
Research and development expenses decreased by
Expected credit loss for receivables and other assets was
Loss from operations was
Interest and investment income, net increased by
Gain on derivative instrument was
Net income attributable to Qudian's shareholders was
Non-GAAP net income attributable to Qudian's shareholders was
Cash Flow
As of December 31, 2023, the Company had cash and cash equivalents of
For the fourth quarter of 2023, net cash provided by operating activities was
For the full year of 2023, net cash provided by operating activities was
Last-mile Delivery Business
In response to the surging demand for cross-border e-commerce transactions, the Company has proactively sought innovative logistic services and solutions to meet global consumers' expectations for swift and top-tier delivery services. In December 2022, the Company introduced a pioneering strategic venture into last-mile delivery services. The Company operates such business under the brand name of "Fast Horse."
Update on Share Repurchase
As previously disclosed, the Company established a share repurchase program in June 2022, under which the Company may purchase up to
Subsequently, our Board has approved a new share repurchase program in March 2024 to purchase up to
About Qudian Inc.
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.
For more information, please visit http://ir.qudian.com.
Use of Non-GAAP Financial Measures
We use Non-GAAP net income/loss attributable to Qudian's shareholders, a Non-GAAP financial measure, in evaluating our operating results and for financial and operational decision-making purposes. We believe that Non-GAAP net income/loss attributable to Qudian's shareholders 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 Non-GAAP net income/loss attributable to Qudian's shareholders 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.
Non-GAAP net income/loss attributable to Qudian's shareholders is not defined under
We mitigate these limitations by reconciling the Non-GAAP financial measure to the most comparable
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
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
Qudian Inc.
Tel: +86-592-596-8208
E-mail: ir@qudian.com
QUDIAN INC. | ||||||
Unaudited Condensed Consolidated Statements of Operations | ||||||
Three months ended December 31, | ||||||
(In thousands except for number | 2022 | 2023 | ||||
of shares and per-share data) | (Unaudited) | (Unaudited) | ||||
RMB | RMB | US$ | ||||
Revenues: | ||||||
Financing income | 29,276 | - | - | |||
Sales commission fee | - | - | - | |||
Sales income and others | 19,305 | 63,794 | 8,985 | |||
Penalty fee | 3,966 | - | - | |||
Loan facilitation income and other related income | 4,942 | - | - | |||
Transaction services fee and other related income | 102,580 | - | - | |||
Total revenues | 160,069 | 63,794 | 8,985 | |||
Operating cost and expenses: | ||||||
Cost of revenues | (73,653) | (78,363) | (11,037) | |||
Sales and marketing | (18,520) | (1,167) | (164) | |||
General and administrative | (67,764) | (76,173) | (10,729) | |||
Research and development | (2,538) | (16,103) | (2,268) | |||
Changes in guarantee liabilities and risk assurance liabilities(1) | 16,857 | - | - | |||
Expected credit gain/(loss) for receivables and other assets | 140,726 | (9,266) | (1,305) | |||
Impairment loss from other assets | (103,950) | (3,054) | (430) | |||
Total operating cost and expenses | (108,842) | (184,126) | (25,933) | |||
Other operating income | 14,858 | 13,086 | 1,843 | |||
Income/(Loss) from operations | 66,085 | (107,246) | (15,105) | |||
Interest and investment income, net | 224,055 | 14,347 | 2,021 | |||
Gain/(Loss) from equity method investments | 12,839 | (1,778) | (250) | |||
Gain/(Loss) on derivative instruments | 262,049 | (35,480) | (4,997) | |||
Foreign exchange loss, net | (1,639) | (1,390) | (196) | |||
Other income | 254 | 84 | 12 | |||
Other expenses | - | (2,930) | (413) | |||
Net income/(loss) before income taxes | 563,643 | (134,393) | (18,928) | |||
Income tax expenses | (73,540) | 17,319 | 2,439 | |||
Net income/(loss) | 490,103 | (117,074) | (16,489) | |||
Net profit attributable to non-controlling interest | - | - | - | |||
Net income/(loss) attributable to Qudian | 490,103 | (117,074) | (16,489) | |||
Earnings/(Loss) per share for Class A and Class | ||||||
Basic | 2.07 | (0.57) | (0.08) | |||
Diluted | 2.07 | (0.57) | (0.08) | |||
Earnings/(Loss) per ADS (1 Class A ordinary | ||||||
Basic | 2.07 | (0.57) | (0.08) | |||
Diluted | 2.07 | (0.57) | (0.08) | |||
Weighted average number of Class A and Class B | ||||||
Basic | 236,882,380 | 204,075,368 | 204,075,368 | |||
Diluted | 236,882,380 | 207,646,764 | 207,646,764 | |||
Other comprehensive loss: | ||||||
Foreign currency translation adjustment | (23,059) | (38,011) | (5,354) | |||
Total comprehensive income/(loss) | 467,044 | (155,085) | (21,843) | |||
Less: total comprehensive profit attributable to | - | - | - | |||
Total comprehensive income/(loss) | 467,044 | (155,085) | (21,843) | |||
Note： | ||||||
QUDIAN INC. | ||||||
Unaudited Condensed Consolidated Statements of Operations | ||||||
Year ended December 31, | ||||||
(In thousands except for number | 2022 | 2023 | ||||
of shares and per-share data) | (Unaudited) | (Unaudited) | ||||
RMB | RMB | US$ | ||||
Revenues: | ||||||
Financing income | 308,717 | - | - | |||
Sales commission fee | 115 | - | - | |||
Sales income and others | 82,616 | 126,338 | 17,794 | |||
Penalty fee | 53,445 | - | - | |||
Loan facilitation income and other related income | 18,809 | - | - | |||
Transaction services fee and other related income | 113,790 | - | - | |||
Total revenues | 577,492 | 126,338 | 17,794 | |||
Operating cost and expenses: | ||||||
Cost of revenues | (383,091) | (160,114) | (22,552) | |||
Sales and marketing | (271,611) | (3,796) | (535) | |||
General and administrative | (287,457) | (273,589) | (38,534) | |||
Research and development | (58,275) | (47,763) | (6,727) | |||
Changes in guarantee liabilities and risk assurance liabilities(1) | 103,991 | - | - | |||
Expected credit gain/(loss) for receivables and other assets | 221,121 | (24,654) | (3,472) | |||
Impairment loss from other assets | (268,927) | (5,800) | (817) | |||
Total operating cost and expenses | (944,249) | (515,716) | (72,637) | |||
Other operating income | 37,255 | 58,368 | 8,221 | |||
Loss from operations | (329,502) | (331,010) | (46,622) | |||
Interest and investment income, net | 112,816 | 255,333 | 35,963 | |||
Gain from equity method investments | 13,998 | 3,207 | 452 | |||
(Loss)/Gain on derivative instruments | (70,420) | 153,835 | 21,667 | |||
Foreign exchange gain/(loss), net | 250 | (2,932) | (413) | |||
Other income | 19,833 | 29,005 | 4,085 | |||
Other expenses | (16,599) | (5,965) | (840) | |||
Net (loss)/income before income taxes | (269,624) | 101,473 | 14,292 | |||
Income tax expenses | (92,428) | (62,340) | (8,780) | |||
Net (loss)/income | (362,052) | 39,133 | 5,512 | |||
Less: net loss attributable to non-controlling | (88) | - | - | |||
Net (loss)/income attributable to Qudian Inc.'s | (361,964) | 39,133 | 5,512 | |||
(Loss)/Earnings per share for Class A and Class B | ||||||
Basic | (1.47) | 0.18 | 0.03 | |||
Diluted | (1.47) | 0.18 | 0.03 | |||
(Loss)/Earnings per ADS (1 Class A ordinary | ||||||
Basic | (1.47) | 0.18 | 0.03 | |||
Diluted | (1.47) | 0.18 | 0.03 | |||
Weighted average number of Class A and Class B | ||||||
Basic | 246,024,592 | 217,281,512 | 217,281,512 | |||
Diluted | 246,024,592 | 220,456,063 | 220,456,063 | |||
Other comprehensive gain: | ||||||
Foreign currency translation adjustment | 13,037 | 21,830 | 3,075 | |||
Total comprehensive (loss)/income | (349,015) | 60,963 | 8,587 | |||
Less: total comprehensive loss attributable to | (88) | - | - | |||
Total comprehensive (loss)/income | (348,927) | 60,963 | 8,587 | |||
Note： | ||||||
QUDIAN INC. | ||||||
Unaudited Condensed Consolidated Balance Sheets | ||||||
As of December 31, | As of December 31, | |||||
(In thousands except for number | 2022 | 2023 | ||||
of shares and per-share data) | (Unaudited) | (Unaudited) | ||||
RMB | RMB | US$ | ||||
ASSETS: | ||||||
Current assets: | ||||||
Cash and cash equivalents | 3,486,376 | 7,207,343 | 1,015,133 | |||
Restricted cash | 86,372 | 59,435 | 8,371 | |||
Time and structured deposit | 1,207,902 | 1,554,121 | 218,893 | |||
Short-term investments | 4,170,403 | 642,894 | 90,550 | |||
Accounts receivables | - | 25,877 | 3,645 | |||
Short-term finance lease receivables | 1,381 | - | - | |||
Other current assets | 2,106,092 | 670,277 | 94,406 | |||
Total current assets | 11,058,526 | 10,159,947 | 1,430,998 | |||
Non-current assets: | ||||||
Right-of-use assets | 103,142 | 164,585 | 23,181 | |||
Investment in equity method investee | 133,058 | 136,804 | 19,269 | |||
Long-term investments | 217,046 | 210,591 | 29,661 | |||
Property and equipment, net | 773,886 | 1,308,338 | 184,276 | |||
Intangible assets | 9,701 | 3,093 | 436 | |||
Other non-current assets | 451,076 | 498,838 | 70,260 | |||
Total non-current assets | 1,687,909 | 2,322,249 | 327,083 | |||
TOTAL ASSETS | 12,746,435 | 12,482,196 | 1,758,081 | |||
QUDIAN INC. | ||||||
Unaudited Condensed Consolidated Balance Sheets (Continued) | ||||||
As of December 31, | As of December 31, | |||||
(In thousands except for number | 2022 | 2023 | ||||
of shares and per-share data) | (Unaudited) | (Unaudited) | ||||
RMB | RMB | US$ | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Current liabilities: | ||||||
Short-term borrowings and interest payables | 29,062 | - | - | |||
Short-term lease liabilities | 6,311 | 29,938 | 4,217 | |||
Derivative instruments-liability | 163,129 | 312,870 | 44,067 | |||
Accrued expenses and other current liabilities | 295,675 | 299,836 | 42,231 | |||
Income tax payable | 90,753 | 111,842 | 15,753 | |||
Total current liabilities | 584,930 | 754,486 | 106,268 | |||
Non-current liabilities: | ||||||
Deferred tax liabilities, net | 2,118 | - | - | |||
Long-term lease liabilities | 426 | 39,759 | 5,600 | |||
Long-term borrowings and interest payables | 116,249 | - | - | |||
Total non-current liabilities | 118,793 | 39,759 | 5,600 | |||
Total liabilities | 703,723 | 794,245 | 111,868 | |||
Shareholders' equity: | ||||||
Class A Ordinary shares | 132 | 132 | 19 | |||
Class B Ordinary shares | 44 | 44 | 6 | |||
Treasury shares | (486,955) | (899,628) | (126,710) | |||
Additional paid-in capital | 4,036,197 | 4,033,146 | 568,055 | |||
Accumulated other comprehensive loss | (45,960) | (24,130) | (3,399) | |||
Retained earnings | 8,539,254 | 8,578,387 | 1,208,242 | |||
Total shareholders' equity | 12,042,712 | 11,687,951 | 1,646,213 | |||
TOTAL LIABILITIES AND SHAREHOLDERS' | 12,746,435 | 12,482,196 | 1,758,081 | |||
QUDIAN INC. | ||||||||
Unaudited Reconciliation of GAAP And Non-GAAP Results | ||||||||
Three months ended December 31, | ||||||||
2022 | 2023 | |||||||
(In thousands except for number | (Unaudited) | (Unaudited) | ||||||
of shares and per-share data) | RMB | RMB | US$ | |||||
Total net income/(loss) attributable to Qudian Inc.'s shareholders | 490,103 | (117,074) | (16,489) | |||||
Add: Share-based compensation expenses | 3,376 | 500 | 70 | |||||
Less: Convertible bonds buyback income | 184 | - | - | |||||
Non-GAAP net income/(loss) attributable to Qudian Inc.'s shareholders | 493,295 | (116,574) | (16,419) | |||||
Non-GAAP net income/(loss) per share—basic | 2.08 | (0.57) | (0.08) | |||||
Non-GAAP net income/(loss) per share—diluted | 2.08 | (0.57) | (0.08) | |||||
Weighted average shares outstanding—basic | 236,882,380 | 204,075,368 | 204,075,368 | |||||
Weighted average shares outstanding—diluted | 236,882,380 | 207,646,764 | 207,646,764 | |||||
Year ended December 31, | ||||||||
2022 | 2023 | |||||||
(In thousands except for number | (Unaudited) | (Unaudited) | ||||||
of shares and per-share data) | RMB | RMB | US$ | |||||
Total net (loss)/income attributable to Qudian Inc.'s shareholders | (361,964) | 39,133 | 5,512 | |||||
Add: Share-based compensation expenses | 24,054 | 4,936 | 695 | |||||
Less: Convertible bonds buyback income | 10,028 | - | - | |||||
Non-GAAP net (loss)/income attributable to Qudian Inc.'s shareholders | (347,938) | 44,069 | 6,207 | |||||
Non-GAAP net (loss)/income per share—basic | (1.41) | 0.20 | 0.03 | |||||
Non-GAAP net (loss)/income per share—diluted | (1.41) | 0.20 | 0.03 | |||||
Weighted average shares outstanding—basic | 246,024,592 | 217,281,512 | 217,281,512 | |||||
Weighted average shares outstanding—diluted | 246,024,592 | 220,456,063 | 220,456,063 | |||||
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SOURCE Qudian Inc.
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