Qudian Inc. Reports Second Quarter 2024 Unaudited Financial Results

Rhea-AI Summary

Qudian Inc. (NYSE: QD) reported its Q2 2024 unaudited financial results, showing significant improvements. Total revenues increased to RMB53.3 million (US$7.3 million), up from RMB11.1 million in Q2 2023. The company achieved a net income of RMB99.8 million (US$13.7 million), compared to a net loss of RMB76.9 million in the same period last year. Earnings per diluted ADS reached RMB0.53 (US$0.07).

Qudian's last-mile delivery business, launched under the brand name 'Fast Horse', has shown steady progress, generating RMB46.2 million in revenue in Q2 2024, a substantial increase from RMB4.3 million in Q2 2023. The service is now available in Australia and New Zealand.

The company continues its share repurchase program, having bought back 68.6 million ADSs for about US$121 million since June 2022.

Positive

• Total revenues increased by 380% year-over-year to RMB53.3 million
• Net income of RMB99.8 million, compared to a net loss in Q2 2023
• Last-mile delivery business revenue grew to RMB46.2 million from RMB4.3 million year-over-year
• Interest and investment income increased to RMB89.5 million from RMB6.8 million year-over-year
• Gain on derivative instrument increased to RMB58.4 million from RMB10.4 million year-over-year

Negative

• Total operating costs and expenses increased to RMB110.8 million from RMB106.7 million year-over-year
• Loss from operations of RMB57.4 million, although improved from RMB94.1 million in Q2 2023
• Net cash used in operating activities was RMB1,184.3 million
• Net cash used in investing activities was RMB898.1 million
• Net cash used in financing activities was RMB114.4 million

Insights

Financial Analyst

Qudian's Q2 2024 results show a significant turnaround, with total revenues increasing to RMB53.3 million from RMB11.1 million year-over-year. The company swung to a net profit of RMB99.8 million, compared to a net loss of RMB76.9 million in Q2 2023. This improvement is largely attributed to their new last-mile delivery business, which generated RMB46.2 million in revenue.

However, operating costs have increased, resulting in an operating loss of RMB57.4 million. The profit was mainly driven by non-operational factors such as interest and investment income (RMB89.5 million) and gains on derivative instruments (RMB58.4 million). This reliance on non-core income sources raises questions about the sustainability of profits.

The company's cash position remains strong at RMB4,849.0 million, but there was significant cash outflow in operations and investments. The ongoing share repurchase program, while potentially boosting shareholder value, also represents a substantial cash outlay.

Market Research Analyst

Qudian's pivot to last-mile delivery services under the "Fast Horse" brand is a strategic move in the rapidly growing cross-border e-commerce market. The expansion from Australia to New Zealand indicates positive traction. However, the competitive landscape in this sector is intense, with established players like FedEx and DHL already dominating.

The company's ability to scale this business while managing costs will be crucial. The 380% year-over-year revenue growth in last-mile delivery is promising, but it's still early days. Investors should monitor customer acquisition costs, retention rates and market share gains in the coming quarters to assess the long-term viability of this new business model.

The complete wind-down of the QD Food business in 2023 also highlights the company's agility in pivoting from underperforming ventures, which is a positive sign for adaptability in a fast-changing market.

Tech Expert

Qudian's increased investment in R&D, with expenses up 53.4% year-over-year, signals a commitment to technological innovation. This is important for competing in the last-mile delivery space, where efficiency and customer experience are paramount. The company likely needs to develop robust logistics software, route optimization algorithms and possibly explore automation technologies.

However, the lack of specific details on technological initiatives is concerning. Investors should seek more information on Qudian's tech strategy, including any plans for AI implementation, IoT integration for package tracking, or potential drone delivery experiments. The company's ability to differentiate itself technologically in the crowded last-mile delivery market will be key to its success and could provide a competitive edge if executed well.

XIAMEN, China, Sept. 6, 2024 /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 June 30, 2024.

Second Quarter 2024 Financial Highlights:

• Total revenues were RMB53.3 million (US$7.3 million), compared to RMB11.1 million for the same period of last year
• Net income attributable to Qudian's shareholders was RMB99.8 million (US$13.7 million), compared to net loss of RMB76.9 million for the same period of last year; net income per diluted ADS was RMB0.53 (US$0.07) for the second quarter of 2024
• Non-GAAP net income attributable to Qudian's shareholders was RMB99.8 million (US$13.7 million), compared to Non-GAAP net loss of RMB76.9 million for the same period of last year. We exclude share-based compensation expenses from our non-GAAP measures. Non-GAAP net income per diluted ADS was RMB0.53 (US$0.07) for the second quarter of 2024

The Company's last-mile delivery business has made steady progress in 2024, which generated approximately RMB46.2 million in revenue in second quarter of 2024, compared to RMB4.3 million for the second quarter of 2023. Moving forward, the Company expects to remain steadfast in its commitment to executing its business transition and simultaneously maintaining prudent cash management to safeguard its balance sheet.

Second Quarter Financial Results

Sales income and others increased to RMB53.3 million (US$7.3 million), which was mostly attributable to sales income generated by last-mile delivery business, compared with RMB11.1 million for the second quarter of 2023, which was mainly attributable to sales income generated by QD Food business. We have completely wound down the QD Food business in 2023.

Total operating costs and expenses increased to RMB110.8 million (US$15.2 million) from RMB106.7 million for the second quarter of 2023.

Cost of revenues increased to RMB46.2 million (US$6.4 million) from RMB12.7 million for the second quarter of 2023, primarily due to the increase in service cost related to last-mile delivery business.

General and administrative expenses decreased by 27.9% to RMB47.2 million (US$6.5 million) from RMB65.4 million for the second quarter of 2023, primarily due to the reduce in professional services fees after the Company completed research and consultation for last-mile delivery business in its early stage.

Research and development expenses increased by 53.4% to RMB15.2 million (US$2.1 million) from RMB9.9 million for the second quarter of 2023, primarily due to the increase in staff head count as the Company continues to explore new business opportunities, which led to a corresponding increase in staff salaries.

Loss from operations was RMB57.4 million (US$7.9 million), compared to RMB94.1 million for the second quarter of 2023.

Interest and investment income, net increased to RMB89.5 million (US$12.3 million) from RMB6.8 million for the second quarter of 2023, primarily attributable to the increase of income from investments in the second quarter of 2024.

Gain on derivative instrument increased to RMB58.4 million (US$8.0 million) from RMB10.4 million for the second quarter of 2023, mainly attributable to the increase in quoted price of the underlying equity securities relating to the derivative instruments we held.

Net income attributable to Qudian's shareholders was RMB99.8 million (US$13.7 million), compared to net loss attributable to Qudian's shareholders of RMB76.9 million in the second quarter of 2023. Net income per diluted ADS was RMB0.53 (US$0.07).

Non-GAAP net income attributable to Qudian's shareholders was RMB99.8 million (US$13.7 million), compared to Non-GAAP net loss attributable to Qudian's shareholders of RMB75.5 in the second quarter of 2023. Non-GAAP net income per diluted ADS was RMB0.53 (US$0.07).

Cash Flow

As of June 30, 2024, the Company had cash and cash equivalents of RMB4,849.0 million (US$667.2 million) and restricted cash of RMB52.0 million (US$7.2 million).

For the second quarter of 2024, net cash used in operating activities was RMB1,184.3 million (US$163.0 million), mainly due to payments for labor-related costs and expenses and purchase of time and structured deposit. Net cash used in investing activities was RMB898.1 million (US$123.6 million), mainly due to purchase of short-term investments and purchase of property and equipment for the construction of the Company's innovation park. Net cash used in financing activities was RMB114.4 million (US$15.7 million), mainly due to the repurchase of ordinary shares.

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 launched its last-mile delivery services under the brand name of "Fast Horse." The business was initially launched on a trial basis and has gradually achieved meaningful scale in Australia during the second quarter of 2023. As of the date of this release, the Company's last-mile delivery service is available in Australia and New Zealand.

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 US$200 million worth of its Class A ordinary shares and/or ADSs over a 24-month period. From the launch of the share repurchase program on June 13, 2022 to June 12, 2024, the Company has in aggregate purchased 64.3 million ADSs in the open market for a total amount of approximately US$113.0 million (an average price of $1.8 per ADS) pursuant to the share repurchase program.

Our Board approved a share repurchase program in March 2024 to purchase up to US$300 million worth of Class A ordinary shares or ADSs in the next 36 months starting from June 13, 2024. From the launch of the share repurchase program on June 13, 2024 to September 3, 2024, the Company has in aggregate purchased 4.3 million ADSs in the open market for a total amount of approximately US$8.0 million (an average price of $1.9 per ADS) pursuant to the share repurchase program.

As of September 3, 2024, the Company has in aggregate purchased 158.6 million ADSs for a total amount of approximately US$702.3 million (an average price of $4.4 per ADS).

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. 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 U.S. GAAP and is not presented in accordance with U.S. GAAP. This Non-GAAP financial measure has limitations as an analytical tool, 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 RMB7.2672 to US$1.00, the noon buying rate in effect on June 28, 2024, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ 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

 

 

QUDIAN INC.
Unaudited Condensed Consolidated Statements of Operations
		Three months ended June 30,
(In thousands except for number		2023		2024
of shares and per-share data)				(Unaudited)		(Unaudited)
		RMB		RMB		US$
Revenues:
Sales income and others		11,088		53,328		7,338
Total revenues		11,088		53,328		7,338
Operating cost and expenses:
Cost of revenues		(12,667)		(46,248)		(6,364)
Sales and marketing		-		(1,054)		(145)
General and administrative		(65,419)		(47,165)		(6,490)
Research and development		(9,918)		(15,219)		(2,094)
Expected credit reversal for receivables and other assets		(17,313)		(751)		(103)
Impairment loss from other assets		(1,343)		(387)		(53)
Total operating cost and expenses		(106,660)		(110,824)		(15,249)
Other operating income		1,470		119		16
Loss from operations		(94,102)		(57,377)		(7,895)
Interest and investment income, net		6,798		89,485		12,314
Gain from equity method investments		2,661		820		113
Gain on derivative instruments		10,434		58,376		8,033
Foreign exchange loss, net		(42)		(1,186)		(163)
Other income		16,622		714		98
Other expenses		(308)		(342)		(47)
Net (loss)/income before income taxes		(57,937)		90,490		12,453
Income tax (expenses)/benefit		(18,928)		9,297		1,279
Net (loss)/income		(76,865)		99,787		13,732
Net (loss)/income attributable to Qudian Inc.'s  shareholders		(76,865)		99,787		13,732
(Loss)/Earnings per share for Class A and Class B ordinary shares:
Basic		(0.34)		0.54		0.07
Diluted		(0.34)		0.53		0.07
(Loss)/Earnings per ADS (1 Class A ordinary share equals 1 ADSs):
Basic		(0.34)		0.54		0.07
Diluted		(0.34)		0.53		0.07
Weighted average number of Class A and Class B ordinary shares outstanding:
Basic		223,467,498		184,571,121		184,571,121
Diluted		226,379,819		189,684,527		189,684,527
Other comprehensive income:
Foreign currency translation adjustment		65,401		14,489		1,994
Total comprehensive (loss)/income		(11,464)		114,276		15,726
Total comprehensive (loss)/income attributable to Qudian Inc.'s shareholders		(11,464)		114,276		15,726

 

 

QUDIAN INC.
Unaudited Condensed Consolidated Balance Sheets
			As of March 31,		As of June 30,
(In thousands except for number			2024		2024
of shares and per-share data)					(Unaudited)	(Unaudited)
			RMB		RMB	US$
ASSETS:
Current assets:
Cash and cash equivalents			7,039,968		4,849,019	667,247
Restricted cash			53,644		51,984	7,153
Time and structured deposit			1,624,612		2,948,606	405,742
Short-term investments			316,526		1,091,177	150,151
Accounts receivables			36,149		39,418	5,424
Other current assets			733,375		615,275	84,664
Total current assets			9,804,274		9,595,479	1,320,381
Non-current assets:
Right-of-use assets			162,276		163,246	22,463
Investment in equity method investee			149,750		150,691	20,736
Long-term investments			210,436		210,448	28,959
Property and equipment, net			1,340,884		1,410,125	194,040
Intangible assets			2,929		2,764	380
Other non-current assets			622,008		469,476	64,602
Total non-current assets			2,488,283		2,406,750	331,180
TOTAL ASSETS			12,292,557		12,002,229	1,651,561
QUDIAN INC.
Unaudited Condensed Consolidated Balance Sheets (Continued)
			As of March 31,		As of June 30,
(In thousands except for number			2024		2024
of shares and per-share data)					(Unaudited)	(Unaudited)
			RMB		RMB	US$
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term lease liabilities			19,884		19,789	2,723
Derivative instruments-liability			343,743		248,228	34,157
Accrued expenses and other current liabilities			327,459		202,856	27,914
Income tax payable			97,647		25,947	3,571
Total current liabilities			788,733		496,820	68,365
Non-current liabilities:
Long-term lease liabilities			49,688		51,432	7,077
Total non-current liabilities			49,688		51,432	7,077
Total liabilities			838,421		548,252	75,442
Shareholders' equity:
Class A Ordinary shares			132		132	18
Class B Ordinary shares			44		44	6
Treasury shares			(1,082,373)		(1,196,636)	(164,663)
Additional paid-in capital			4,031,610		4,031,438	554,744
Accumulated other comprehensive loss			(55)		14,434	1,986
Retained earnings			8,504,778		8,604,565	1,184,028
Total shareholders' equity			11,454,136		11,453,977	1,576,119
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY			12,292,557		12,002,229	1,651,561

 

 

QUDIAN INC.
Unaudited Reconciliation of GAAP And Non-GAAP Results
			Three months ended June 30,
			2023		2024
(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			(76,865)		99,787		13,732
Add: Share-based compensation expenses			1,335		1		0
Non-GAAP net (loss)/income attributable to Qudian Inc.'s shareholders			(75,530)		99,788		13,732
Non-GAAP net (loss)/income per share—basic			(0.34)		0.54		0.07
Non-GAAP net (loss)/income per share—diluted			(0.34)		0.53		0.07
Weighted average shares outstanding—basic			223,467,498		184,571,121		184,571,121
Weighted average shares outstanding—diluted			226,379,819		189,684,527		189,684,527

 

 

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SOURCE Qudian Inc.

FAQ

What were Qudian's (QD) Q2 2024 revenue and earnings?

Qudian (QD) reported total revenues of RMB53.3 million (US$7.3 million) and net income of RMB99.8 million (US$13.7 million) for Q2 2024. Earnings per diluted ADS were RMB0.53 (US$0.07).

How did Qudian's (QD) last-mile delivery business perform in Q2 2024?

Qudian's last-mile delivery business, 'Fast Horse', generated RMB46.2 million in revenue in Q2 2024, a significant increase from RMB4.3 million in Q2 2023. The service is now available in Australia and New Zealand.

What is the status of Qudian's (QD) share repurchase program as of September 2024?

As of September 3, 2024, Qudian has repurchased a total of 158.6 million ADSs for approximately US$702.3 million, at an average price of $4.4 per ADS. The company has a new program to purchase up to US$300 million worth of shares over the next 36 months.

How much cash and cash equivalents did Qudian (QD) have as of June 30, 2024?

As of June 30, 2024, Qudian had cash and cash equivalents of RMB4,849.0 million (US$667.2 million) and restricted cash of RMB52.0 million (US$7.2 million).