Qudian Inc. (NYSE: QD), an established technology platform that aims to improve the online consumer finance experience for Chinese consumers, recently revealed that Guosheng (Hong Kong) Investment Limited has agreed to a non-binding letter of intent to lock up the firm’s Class A ordinary shares, which are currently owned by Guosheng. The letter of intent covers around 12,770,000, or approximately 5%, of Qudian’s total outstanding shares as of November 30, 2019.
In accordance with the terms of the non-binding letter of intent, Guosheng will be limiting its ability to transfer the shares during the lock-up phase, which is subject to “certain exceptions,” according to a release.
The non-binding letter of intent notes that Guosheng will not try to transfer the shares during a 360-day lock-up period “from the date of the definitive lock-up agreement.”
As noted in the announcement, there can be “no assurance that a definitive agreement will be entered into or that the proposed lock-up will be consummated. Further, investors are cautioned that the letter of intent describing the proposed lock-up terms are non-binding.”
Qudian also revealed on December 16 that Yingming Li was appointed to the firm’s board of directors. His appointment reportedly became effective on December 13, 2019.
Li currently serves as the director and deputy general manager of Guosheng Financial Holding, and is in charge of investments. He’s also the general manager of Shenzhen Guo Sheng Sea Before Investment Co., Ltd. Li has extensive experience in enterprise consultancy, valuation, investment banking and equity investments.
Qudian Inc. aims to use technology to make personalized credit accessible to China’s younger, mobile-active consumers who need to gain access to small credit. These users are underserved by traditional financial institutions due to various reasons such as lack of traditional credit data or high servicing costs. Qudian’s credit products allow licensed or authorized, regulated financial institutions and ecosystem business partners to provide economical and customizable loans to the younger generation of Chinese consumers.