Fintech Qudian Reports $109.4M in Q4 2020 Revenue, a 63.1% Decrease from Same Period Last Year, but Net Income Increased

Qudian Inc. (NYSE: QD), an established technology platform that aims to improve the online consumer finance experience for Chinese consumers, recently revealed its “unaudited” financial results for the quarter and full year that ended on December 31, 2020.

As noted in a release by the Fintech firm, some of the key Q4 2020 Operational Highlights are as follows:

  • Number of outstanding borrowers “from loan book business and transaction services business as of December 31, 2020 decreased by 14.7% to 3.5 million from 4.1 million as of September 30, 2020 as a result of the conservative and prudent strategy which the Company has deployed”
  • Total outstanding loan balance from loan book business “decreased by 24.8% to RMB4.8 billion as of December 31, 2020, compared to the outstanding balance as of September 30, 2020;”
  • Total outstanding loan balance from transactions “serviced on open platform decreased by 25.7% to RMB5.1 billion as of December 31, 2020, compared to the outstanding balance as of September 30, 2020”
  • Amount of transactions from loan book business for this quarter “decreased by 2.3% to RMB4.8 billion from the third quarter of 2020;”
  • Amount of transactions “serviced on open platform for this quarter decreased by 50.2% to RMB248.0 million from the third quarter of 2020″
  • Weighted average loan tenure for “our loan book business was 4.5 months for this quarter, compared with 4.6 months for the third quarter of 2020;”
  • Weighted average loan tenure “for transactions serviced on open platform was 6.4 months for this quarter, compared with 6.8 months for the third quarter of 2020″

Q4 2020 Financial Highlights from Qudian are as follows:

  • Total revenues were RMB713.6 million (US$109.4 million), “representing a decrease of 63.1% from the same period of last year”
  • Net income increased by 427.0% year-on-year to RMB673.9 million (US$103.3 million), or RMB2.54 (US$0.39) per diluted ADS
  • Non-GAAP net income increased by 335.6% year-on-year to RMB683.5 million (US$104.8 million), or RMB2.57 (US$0.39) per diluted ADS

Full Year 2020 Financial Highlights from Qudian are as follows:

  • Total revenues were RMB3,688.0 million (US$565.2 million) in 2020, “representing a decrease of 58.3% from 2019, primarily due to the decrease in the amount of transactions”
  • Loan facilitation income and other related income decreased by 58.3% year-on-year to RMB957.8 million (US$146.8 million) from RMB2,297.4 million for 2019
  • Transaction services fee and other related income which “relate to transaction services and traffic referral services provided by the Company’s open platform, was a loss of RMB136.5 million (US$20.9 million)”

As noted in the report, Qudian’s financing income “decreased by 40.1% to RMB2,102.7 million (US$322.2 million) from RMB3,510.1 million in 2019 as a result of the decrease in the average on-balance sheet loan balance.”

Meanwhile, net income :decreased by 70.6% year-on-year to RMB958.8 million (US$146.9 million), or RMB3.59 (US$0.55) per diluted ADS.” And non-GAAP net income “decreased by 88.6% year-on-year to RMB382.3 million (US$58.6 million), or RMB1.49 (US$0.23) per diluted ADS”

Min Luo, Founder, Chairman and CEO at Qudian, stated:

“Despite pandemic-driven uncertainty and challenging market conditions as well as a continuously shifting regulatory environment, we were able to conclude 2020 with further improvements in our asset quality as we remained vigilant in our cash credit business operation. During the fourth quarter of 2020, we maintained strict credit approval standards as we focused on borrowers with strong credit profiles. By the end of the fourth quarter, our overall D1 delinquency rate fell to approximately 11%, from around 17% at the end of the third quarter, reflecting the effectiveness of our strategy. As 2021 unfolds, we will continue to prudently operate our cash loan business while simultaneously exploring new areas for growth.”

Sissi Zhu, Vice President of Investor Relations of Qudian, remarked:

“Given that 2020 saw the impact from a weakened global economy and intricate online lending market dynamics, we upheld stringent credit risk assessments for new loans originated on our platform. At the same time, we remain dedicated to pursuing new investment opportunities. Supported by ample cash reserves and a healthy financial position, our core strengths and solid fundamentals can bolster the long-term sustainability of our overall business.”

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