Qudian Inc
NYSE:QD
Qudian Inc
Qudian Inc. is a technology platform which empowers the enhancement of online consumer finance experience in China. The company is headquartered in Beijing, Beijing. The company went IPO on 2017-10-18. Through its technology platform, the Company operates two segments. The Installment Credit Services segment is engaged in traditional online installment credit business, including cash installment credit services and merchandise installment credit services. The Transaction Services segment offers loan recommendation and referral services to third-party financial service providers and assumes no credit risk. The firm uses big data-enabled technologies, such as artificial intelligence, to service young, mobile-active consumers. The firm operates an online platform, with nearly all of the transactions facilitated through mobile devices. Borrowers can apply for small credit. Approved borrowers can draw down on their cash credit with cash disbursed into their Alipay accounts in digital form. The firm conducts its businesses in the China market.
Qudian Inc. is a technology platform which empowers the enhancement of online consumer finance experience in China. The company is headquartered in Beijing, Beijing. The company went IPO on 2017-10-18. Through its technology platform, the Company operates two segments. The Installment Credit Services segment is engaged in traditional online installment credit business, including cash installment credit services and merchandise installment credit services. The Transaction Services segment offers loan recommendation and referral services to third-party financial service providers and assumes no credit risk. The firm uses big data-enabled technologies, such as artificial intelligence, to service young, mobile-active consumers. The firm operates an online platform, with nearly all of the transactions facilitated through mobile devices. Borrowers can apply for small credit. Approved borrowers can draw down on their cash credit with cash disbursed into their Alipay accounts in digital form. The firm conducts its businesses in the China market.
Revenue decline: Qudian's total revenues dropped by 59.1% year-over-year to RMB347.4 million in Q3 2021, reflecting lower activity in its core lending and e-commerce businesses.
Loan volumes down: Loan book transaction volume decreased 2.1% sequentially to RMB3.4 billion, and on-balance sheet loan balance dropped 14.4% to RMB3 billion.
WLM KIDS expansion slowed: The rollout of the WLM KIDS business is behind schedule due to COVID-19 disruptions, with 7 centers open as of December and over 10 planned for next year.
Cost pressures: General and administrative expenses rose 170.4% to RMB157.7 million, mainly due to hiring for WLM KIDS, while cost of revenues increased sequentially due to the same business.
Net losses reported: Net loss attributable to shareholders was RMB94.2 million for the quarter.
Loan quality stable: D1 delinquency rate stayed below 5%, and more than 99% of loan balances were self-funded.
Regulatory compliance: Company is adapting to new regulations affecting the supplemental learning industry and winding down its Wanlimu e-commerce platform.
