Qudian Inc. (NYSE: QD), a consumer-oriented technology company, announced its unaudited financial results for the quarter ended June 30, 2023.
As noted by Qudian, the Second Quarter 2023 Financial Highlights are:
- Total revenues were RMB11.1 million (US$1.5 million), compared to RMB105.4 million for the same period of last year
- Net loss attributable to Qudian’s shareholders was RMB76.9 million (US$10.6 million), compared to net loss of RMB61.3 million for the same period of last year; net loss per diluted ADS was RMB0.34 (US$0.05) for the second quarter of 2023
- Non-GAAP net loss attributable to Qudian’s shareholders was RMB75.5 million (US$10.4 million), compared to net loss of RMB52.8 million for the same period of last year. We exclude share-based compensation expenses from our non-GAAP measures. Non-GAAP net loss per diluted ADS was RMB0.34 (US$0.05) for the second quarter of 2023
Mr. Min Luo, Founder, Chairman and Chief Executive Officer of Qudian, said:
“We are delighted to report our initial advancements in the global expansion of our smart last-mile logistics business, marking the inaugural phase of our comprehensive group-wide strategic transformation. We continued to execute our business transition and establish our new last-mile delivery business while maintaining a healthy balance sheet by pursuing efficient cash management.”
Mr. Luo continued:
“Our new last-mile delivery business has made steady progress since we launched it on a trial basis in December 2022 and started to achieve initial shape and scale in the second quarter of 2023 in Australia under the name of “Fast Horse.” We believe such a new strategic business initiative will bring value to our shareholders and we expect to expand its footprint across Australia, North America, and New Zealand and will provide more details on the development of this business as we continue to build it.”
Second Quarter Financial Results
Total revenues were RMB11.1 million (US$1.5 million), “representing a decrease of 89.5% from RMB105.4 million for the second quarter of 2022.”
Financing income, 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 RMB11.1 million (US$1.5 million), which was mostly attributable to incomes generated from the QD Food business attributable to its sales made prior to its winding-down and incomes generated from last-mile delivery business, compared with RMB8.8 million for the second quarter of 2022, which was mainly attributable to sales income generated by QD Food.”
Qudian have “wound down the QD Food business in second quarter of 2023.”
Total operating costs and expenses “decreased to RMB106.7 million (US$14.7 million) from RMB135.9 million for the second quarter of 2022.”
Cost of revenues decreased “by 69.1% to RMB12.7 million (US$1.7 million) from RMB41.1 million for the second quarter of 2022, primarily due to the winding down of the QD Food business and loan book business, partially offset by cost from last-mile delivery business.”
Sales and marketing expenses decreased to nil “as a result of the winding down of the loan book business and QD Food business.”
General and administrative expenses increased “by 87.9% to RMB65.4 million (US$9.0 million) from RMB34.8 million for the second quarter of 2022, primarily due to the increase in professional services fees from last-mile delivery business.”
Research and development expenses “decreased by 47.3% to RMB9.9 million (US$1.4 million) from RMB18.8 million for the second quarter of 2022, as a result of the decrease in staff head count, which led to a corresponding decrease in staff salaries and a decrease in third-party service fees.”
Expected credit loss for receivables and other assets “was RMB17.3 million (US$2.4 million) as compared to a gain of RMB28.7 million for the second quarter of 2022, primarily due to credit loss for other assets related to the businesses the Company historically operated.”
Loss from operations was RMB94.1 million (US$13.0 million), “compared to RMB29.4 million for the second quarter of 2022.”
Interest and investment income, net increased “by 47.8% to RMB6.8 million (US$0.9 million) from RMB4.6 million for the second quarter of 2022, mainly due to loss from investments of Secoo recorded in the second quarter of 2022 which did not appear in the second quarter of 2023.”
Gain on derivative instrument was RMB10.4 million (US$1.4 million), “compared to a loss of RMB34.7 million for the second quarter of 2022, primarily due to the increase in quoted price of the underlying equity securities relating to the derivative instruments we held.”
Net loss attributable to Qudian’s shareholders “was RMB76.9 million (US$10.6 million). Net loss per diluted ADS was RMB0.34 (US$0.05).”
Non-GAAP net loss attributable to Qudian’s shareholders “was RMB75.5 million (US$10.4 million). Non-GAAP net loss per diluted ADS was RMB0.34 (US$0.05).”
As covered, Qudian Inc. 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.”