Qudian Stock Slides on 63% Revenue Drop

Fourth quarter earnings of the Chinese financing services provider were disappointing.
Benjamin WangMar 29,2021,18:55

The stock in Qudian Inc. (NYSE: QD) was trading down 5% on Monday afternoon, at $2.2 per American depositary share, after the company reported decreased revenues for the fourth quarter.

The Xiamen-based company, which provides small consumer credit products, said revenue in the three months through December was $109.4 million, representing a decrease of 63% year-over-year. Net income was $103.3 million, or 39 cents per share, up 427%.

Qudian said loan facilitation income and other related income decreased by 58% year-over-year to $146.8 million, while financing income decreased by 40% to $322.2 million.

"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," Min Luo, founder, chairman and chief executive officer of the company said in a statement on Monday.

Luo continued, "As 2021 unfolds, we will continue to prudently operate our cash loan business while simultaneously exploring new areas for growth.”

Qudian also said its outstanding borrowers in the loan book business and transaction services business reached 3.5 million in the fourth quarter, representing a 14.7% decrease year-over-year as a result of the conservative and prudent strategy.

Founded in 2014, the company aims to make personalized credit accessible to hundreds of millions of young, mobile-active consumers in China.

Qudian reported it has repurchased the total principal amount of convertible senior notes of $217 million. Its total share repurchase has reached approximately $574 million.

Topics:Qudian; China; U.S.