Affected by many factors such as the slowdown of the macro economy and the tightening of regulations, Qudian’s 2020 is full of challenges.
On March 18, Beijing time, Fun Store (QD.US) released the fourth quarter and full-year financial report as of December 31, 2019.
According to the financial report, the total revenue in the fourth quarter was 1,191.6 billion yuan (RMB, hereinafter the same), a year-on-year increase of 7.1%, a month-on-month decrease of 25.4%, which was higher than the Bloomberg consensus forecast of 410.6 million yuan. Benefiting from the open platform business, the total revenue for the year was 8.84 billion yuan, a year-on-year increase of 14.9%.
Data source: Qudian financial report; Mapping:
According to US GAAP, the net profit attributable to shareholders of Fun Store in the fourth quarter was 127.9 million yuan, 98.1 million yuan lower than Bloomberg consensus expectations, a year-on-year decrease of 83.3%, and a chain decrease of 87.7%; according to non-US general accounting According to the standard, the net profit attributable to shareholders of Fun Store was 156.9 million yuan, a year-on-year decrease of 79.9% and a month-on-month decrease of 85.2%. The annual U.S. GAAP net profit attributable to shareholders of Fun Store was 3.264.3 billion yuan, a year-on-year increase of 31.0%; the net profit attributable to shareholders of Fun Store under non-GAAP was 3.351 billion yuan, a year-on-year increase of 31.5%.
Data source: Qudian financial report; Mapping:
In terms of specific businesses, the open platform business has become the most important growth driver for Fun Stores in the third quarter of 2019, and its contribution to total revenue has declined in the fourth quarter.
Data source: Qudian financial report; Mapping:
Data source: Qudian financial report; Mapping:
Fundian Group founder and CEO Luo Min said in the financial report that in the second half of 2019, China’s online consumer finance industry will be strengthened in supervision, relevant departments have implemented stricter user data privacy rules and require P2P lending platforms to have Sequence exit. As a result, the available funds for consumer credit have decreased, and the delinquency rate for the entire industry has increased. Qudian raised loan approval standards accordingly, resulting in a drop in credit volume on the open platform in the fourth quarter of 2019 by 19.7% month-on-month. The decline in loan matching business and open platform business this quarter may be related to this.
Due to the fact that Qudian stopped the sales of new cars of Dabai Automobile from May 21, 2019, the marketing expenses of Qudian decreased by 58.0% year-on-year to 57.5 million yuan.
Data source: Qudian financial report; Mapping:
Data source: Qudian financial report; Mapping:
As of March 31, 2019, the outstanding loan balance of Qudian decreased by 13.4% year-on-year to RMB 22.6 billion, which means that QudianStores’ borrowing capacity is constantly weakening.
Data source: Qudian financial report; Mapping:
As of December 31, 2019, the cash and cash equivalents of Qudian reached 2.866 billion yuan, and the restricted cash reached 1.257 billion yuan.
In addition, Luo Min said that although the impact of the new coronavirus epidemic on the economy is unclear, it is expected to exacerbate the already existing pressure in the consumer credit sector. The company plans to maintain the leverage ratio below 1.9 times and is committed to reducing risks and protecting the company’s net assets.
(The cover image is from Pexels)