Quarter Store (NYSE: QD) suffered heavy losses in the first quarter of 2020.
On May 26, US-listed Internet finance company Qudian released its unaudited operating results for the first quarter of 2020. According to the financial report, as of March 31, 2020, Qudian’s first quarter operating income was 956 million yuan (about 135 million US dollars), a year-on-year decrease of 54.3%; total expenditure was 2.067 billion yuan (about 292 million US dollars), an increase of 52.30% ; Net loss was 487 million yuan (about 67.8 million US dollars), compared with a net profit of 950 million yuan in the same period last year; under non-GAAP, the net loss was 908 million yuan, and the net profit for the same period last year was 974 million yuan. From profit to loss.
From the perspective of business segmentation, Qudian ’s financial business revenue in the first quarter was 623 million yuan (approximately US $ 87.9 million), compared with 1.011 billion yuan in the first quarter of 2019 38.4% reduction.
Loan matching and other business income was 422 million yuan (approximately US $ 5970), a decrease of 34.4% from the 640 million yuan in the same period last year. Qudian said that this was due to the decrease in off-balance sheet transactions.
The revenue from the open platform business was a loss of 150 million yuan (approximately US $ 21.2 million), which was a decrease of 194.34% year-on-year from the profit of 159 million yuan in the first quarter of 2019. Qudian said that this is the result of the merger of the first quarter of transaction revenue, 2019 post-transaction service revenue and the assets revaluation loss generated by the 2019 transaction.
Sales commission income decreased by 75.19% from RMB 136 million in the first quarter of 2019 to RMB 33.7 million (approximately USD 4.8 million) due to commodity credit transactions The amount of reduction.
In terms of sales revenue, Qudian was 137 million yuan in the first quarter of 2020, a year-on-year decrease of 87.55%.
Facing the overall downward performance, Luo Min, founder and CEO of Fun Store Group, said in the financial report: “The epidemic has accelerated the downward trend of the macroeconomic and credit cycle, leading to Qudian ’s D1 delinquency rate in the first quarter (the total principal and service fees not paid on the specified date divided by the total principal and service fees repayable as of that date) rose to about 20%. In view of the market ’s unfavorable factors, we Will maintain a conservative deleveraging strategy to protect net assets. “
However, this also seems to be expected by Qudian. Zhu Qi, vice president of investor relations at Qudian Group, said in the fourth quarter of 2019 financial report that it is expected that Qudian will generate losses in the first quarter of this year. And in January 2020, Fun Store announced that it would revoke its full-year net profit target for 2019 and will not issue performance guidance for fiscal year 2020 in the short term.
Qudian ’s expectations for the second quarter and for the entire year of 2020 are also not good.
“Looking forward, in view of the continued negative economic impact of the epidemic, the number of guarantee liabilities, risk guarantee liabilities and reserves continues to increase, and we continue to reduce debt to reduce The trading volume is expected to still have weak performance and risk exposure in the second quarter of 2020. In addition, since our ‘Million Eyes’ plan is still in the early stages of development that requires a lot of investment, it is expected that 2020 will result in inventory costs and sales and marketing expenses Significant increase. Despite the adverse operating environment, we are still actively implementing strategies to protect net assets and explore new growth opportunities. “Zhu Sixi, Vice President of Investor Relations at Fun Store, said.
Founded in March 2014, Qudian Group is a leading financial technology service company in China. As a connector between financial institutions and users, Qudian aims to empower financial institutions with their technological capabilities, help them improve marketing and operating efficiency, and enable financial institutions’ diversified financial products to efficiently connect with network-wide traffic. The “Million Eye” is a luxury e-commerce shopping platform launched by Fun Store in March 2020.
The financial report for the first quarter of 2020 shows that as of March 31, 2020, the total number of registered users reached 80.2 million, an increase of 9.5% from March 31, 2019.
On October 18, 2017, Qudian Group was listed on the New York Stock Exchange and sold 37.5 million ADSs (American Depositary Shares) for US $ 24 per share The opening price was 34.35 US dollars, up 43.13%, and the market value of the closing price was as high as 9.6 billion US dollars.
As of May 26, when US stocks closed, Qudian ’s share price was only $ 1.69 per share, which was more than 90% lower than the issue price, and the market value was only slightly over $ 400 million.