Qudian Inc. Sees Strong Recovery in Q2 2024 Financial Results
September 8, 2024, 4:27 pm
Qudian Inc., a consumer-oriented technology company based in Xiamen, China, has unveiled its financial results for the second quarter of 2024. The report reveals a remarkable turnaround, showcasing the company's resilience and strategic pivot towards logistics and delivery services.
In the second quarter of 2024, Qudian reported total revenues of RMB 53.3 million (approximately US$7.3 million). This marks a significant leap from RMB 11.1 million in the same quarter last year. The surge in revenue is largely attributed to the company's last-mile delivery business, which has gained traction in the competitive e-commerce landscape.
Net income attributable to Qudian's shareholders reached RMB 99.8 million (US$13.7 million), a stark contrast to the net loss of RMB 76.9 million recorded in the previous year. This translates to a net income per diluted American Depositary Share (ADS) of RMB 0.53 (US$0.07). The company’s non-GAAP net income mirrors this positive trend, reinforcing the notion that Qudian is on a solid recovery path.
The last-mile delivery segment, branded as "Fast Horse," has been a game changer for Qudian. In just a year, revenue from this service skyrocketed to RMB 46.2 million from a mere RMB 4.3 million in the second quarter of 2023. This growth reflects the increasing demand for efficient logistics solutions in the booming cross-border e-commerce market.
Operating costs and expenses, however, also saw an uptick, rising to RMB 110.8 million (US$15.2 million) from RMB 106.7 million in the same quarter last year. The cost of revenues surged to RMB 46.2 million (US$6.4 million), primarily due to the increased service costs associated with the last-mile delivery operations. Despite these rising costs, Qudian managed to reduce general and administrative expenses by 27.9%, down to RMB 47.2 million (US$6.5 million). This reduction was largely due to the completion of initial research and consultation phases for the delivery business.
Research and development expenses also increased by 53.4% to RMB 15.2 million (US$2.1 million), reflecting Qudian's commitment to innovation and exploring new business opportunities. The company is investing in its future, ensuring it remains competitive in a rapidly evolving market.
Despite the increase in operating costs, Qudian's loss from operations decreased to RMB 57.4 million (US$7.9 million), down from RMB 94.1 million in the previous year. This indicates improved operational efficiency and a strategic focus on profitable growth.
Interest and investment income saw a remarkable increase, climbing to RMB 89.5 million (US$12.3 million) from RMB 6.8 million in the same quarter last year. This boost is primarily due to enhanced income from investments, showcasing Qudian's ability to leverage its financial assets effectively.
The company also reported a gain on derivative instruments, which increased to RMB 58.4 million (US$8.0 million) from RMB 10.4 million in the previous year. This gain is attributed to the rising value of underlying equity securities related to the derivatives held by Qudian.
As of June 30, 2024, Qudian's cash and cash equivalents stood at RMB 4.8 billion (US$667.2 million), providing a solid financial cushion. However, the company reported net cash used in operating activities of RMB 1.2 billion (US$163.0 million), primarily due to labor-related costs and investments in structured deposits. Additionally, net cash used in investing activities was RMB 898.1 million (US$123.6 million), reflecting ongoing investments in short-term assets and the construction of an innovation park.
Qudian's share repurchase program continues to demonstrate its commitment to shareholder value. Launched in June 2022, the program allows for the repurchase of up to US$200 million worth of Class A ordinary shares. As of September 3, 2024, Qudian has repurchased a total of 158.6 million ADSs for approximately US$702.3 million, signaling confidence in its long-term prospects.
The company’s strategic pivot from credit solutions to logistics services is a calculated move in response to the changing dynamics of consumer demand. Qudian's focus on innovative logistics solutions aims to meet the growing expectations of global consumers for swift and reliable delivery services.
In conclusion, Qudian Inc. has demonstrated a remarkable recovery in its financial performance for the second quarter of 2024. With a robust last-mile delivery business and a commitment to innovation, the company is well-positioned to navigate the challenges of the e-commerce landscape. As it continues to adapt and evolve, Qudian is poised for sustained growth and success in the coming quarters.
In the second quarter of 2024, Qudian reported total revenues of RMB 53.3 million (approximately US$7.3 million). This marks a significant leap from RMB 11.1 million in the same quarter last year. The surge in revenue is largely attributed to the company's last-mile delivery business, which has gained traction in the competitive e-commerce landscape.
Net income attributable to Qudian's shareholders reached RMB 99.8 million (US$13.7 million), a stark contrast to the net loss of RMB 76.9 million recorded in the previous year. This translates to a net income per diluted American Depositary Share (ADS) of RMB 0.53 (US$0.07). The company’s non-GAAP net income mirrors this positive trend, reinforcing the notion that Qudian is on a solid recovery path.
The last-mile delivery segment, branded as "Fast Horse," has been a game changer for Qudian. In just a year, revenue from this service skyrocketed to RMB 46.2 million from a mere RMB 4.3 million in the second quarter of 2023. This growth reflects the increasing demand for efficient logistics solutions in the booming cross-border e-commerce market.
Operating costs and expenses, however, also saw an uptick, rising to RMB 110.8 million (US$15.2 million) from RMB 106.7 million in the same quarter last year. The cost of revenues surged to RMB 46.2 million (US$6.4 million), primarily due to the increased service costs associated with the last-mile delivery operations. Despite these rising costs, Qudian managed to reduce general and administrative expenses by 27.9%, down to RMB 47.2 million (US$6.5 million). This reduction was largely due to the completion of initial research and consultation phases for the delivery business.
Research and development expenses also increased by 53.4% to RMB 15.2 million (US$2.1 million), reflecting Qudian's commitment to innovation and exploring new business opportunities. The company is investing in its future, ensuring it remains competitive in a rapidly evolving market.
Despite the increase in operating costs, Qudian's loss from operations decreased to RMB 57.4 million (US$7.9 million), down from RMB 94.1 million in the previous year. This indicates improved operational efficiency and a strategic focus on profitable growth.
Interest and investment income saw a remarkable increase, climbing to RMB 89.5 million (US$12.3 million) from RMB 6.8 million in the same quarter last year. This boost is primarily due to enhanced income from investments, showcasing Qudian's ability to leverage its financial assets effectively.
The company also reported a gain on derivative instruments, which increased to RMB 58.4 million (US$8.0 million) from RMB 10.4 million in the previous year. This gain is attributed to the rising value of underlying equity securities related to the derivatives held by Qudian.
As of June 30, 2024, Qudian's cash and cash equivalents stood at RMB 4.8 billion (US$667.2 million), providing a solid financial cushion. However, the company reported net cash used in operating activities of RMB 1.2 billion (US$163.0 million), primarily due to labor-related costs and investments in structured deposits. Additionally, net cash used in investing activities was RMB 898.1 million (US$123.6 million), reflecting ongoing investments in short-term assets and the construction of an innovation park.
Qudian's share repurchase program continues to demonstrate its commitment to shareholder value. Launched in June 2022, the program allows for the repurchase of up to US$200 million worth of Class A ordinary shares. As of September 3, 2024, Qudian has repurchased a total of 158.6 million ADSs for approximately US$702.3 million, signaling confidence in its long-term prospects.
The company’s strategic pivot from credit solutions to logistics services is a calculated move in response to the changing dynamics of consumer demand. Qudian's focus on innovative logistics solutions aims to meet the growing expectations of global consumers for swift and reliable delivery services.
In conclusion, Qudian Inc. has demonstrated a remarkable recovery in its financial performance for the second quarter of 2024. With a robust last-mile delivery business and a commitment to innovation, the company is well-positioned to navigate the challenges of the e-commerce landscape. As it continues to adapt and evolve, Qudian is poised for sustained growth and success in the coming quarters.