XIAMEN, China, Jan. 16, 2020 /PRNewswire/ -- Qudian Inc.
("Qudian" or the "Company") (NYSE: QD), a leading technology
platform empowering the enhancement of online consumer finance
experience in China, today
announced that the Company withdraws its fiscal 2019 guidance and
will not issue guidance in the near term due to uncertainty related
to the recent regulatory and
operating environment. In addition, the board of directors of the
Company (the "Board") approved a new share repurchase program (the
"New Program") that authorized the Company to repurchase up to
US$500 million worth of its American
depositary shares ("ADSs"), each representing one Class A ordinary
share, and/or Class A ordinary shares during the next 30-month
period.
China's online consumer finance
industry was affected by several regulatory developments in the
fourth quarter of 2019, including further restrictions on loan
collection practices, more stringent user data privacy rules and
the requirements for P2P lending platforms to orderly exit their
P2P businesses. These regulatory developments have reduced the
availability of funding for consumer credit and driven up
delinquency rates across the industry, including the Company's loan
portfolio. To better protect the Company's assets and funding
partners from these industry headwinds, Qudian implemented
significantly stricter standards for loan approvals. Accordingly,
transaction volumes in loan facilitation and on the open platform
have decreased substantially. As a result of the Company's revenue
recognition policy under ASC606, the decrease in transaction
volumes in the fourth quarter of 2019 is expected to have a more
pronounced impact on the Company's revenue for such quarter.
According to ASC606, the major portion of revenue from the loan
facilitation process is recognized at the time the Company
successfully matches borrowers and institutional funding partners.
Furthermore, the Company expects to
recognize increased amounts in loss of guarantee liability and
provision for the fourth quarter of 2019 due to the rise in
delinquency rates, which will adversely affect net income for such
quarter.
As a precautionary measure in the current environment, the
Company has deployed a conservative and prudent strategy to reduce
loan volumes and has suspended its credit trial program. Given the
rapidly evolving market dynamics and regulatory framework, the
Company believes it is appropriate to withdraw its fiscal 2019
annual guidance and cease to issue guidance in the near term.
Qudian remains confident in its operating fundamentals, business
model and the industry's long-term prospects. With a full suite of technology-driven solutions
for consumer finance, the Company looks forward to continuing to
work with its institutional funding partners to build sustainable
value for investors, consumers and shareholders over the
long-term.
As a part of the Company's continuous commitment to enhancing
shareholder value, effective January 16,
2020, the Board approved the new share repurchase program,
whereby Qudian is authorized to repurchase its own ADSs and/or
Class A ordinary shares with an aggregate value of up to
US$500 million during the next
30-month period. Under the New Program, Qudian may purchase its
ADSs and/or Class A ordinary shares through various means,
including open market transactions, privately negotiated
transactions, tender offers or any combination thereof. In
addition, Qudian will also effect repurchase transactions in
compliance with Rule 10b5-1 under the Securities Exchange Act of
1934, as amended, and its insider trading policy. The number of
ADSs and/or Class A ordinary shares repurchased and the timing of
repurchases will depend on a number of factors, including, but not
limited to, price, trading volume and general market conditions,
along with Qudian's working capital requirements, general business
conditions and other factors. The New Program may be modified,
suspended or terminated at any time by the Company's Board of
Directors. Repurchases under the New Program will be funded from
Qudian's existing cash and cash equivalents and/or future cash
provided by operating activities. As of September 30, 2019, Qudian had cash and cash
equivalents of approximately RMB2,656.1
million (US$371.6
million).
About Qudian Inc.
Qudian Inc. ("Qudian") is a leading technology platform
empowering the enhancement of online consumer finance experience in
China. The Company's mission is to
use technology to make personalized credit accessible to hundreds
of millions of young, mobile-active consumers in China who need access to small credit for
their discretionary spending but are underserved by traditional
financial institutions due to lack of traditional credit data or
high cost of servicing. Qudian's credit solutions enable licensed,
regulated financial institutions and ecosystem partners to offer
affordable and customized loans to this young generation of
consumers.
For more information, please
visit http://ir.qudian.com.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the
United States Private Securities Litigation Reform Act of 1995.
These forward-looking statements can be identified by terminology
such as "will," "expects," "anticipates," "future," "intends,"
"plans," "believes," "estimates" and similar statements. Among
other things, the expectation of its collection efficiency and
delinquency, contain forward-looking statements. Qudian may also
make written or oral forward-looking statements in its periodic
reports to the SEC, in its annual report to shareholders, in press
releases and other written materials and in oral statements made by
its officers, directors or employees to third parties. Statements
that are not historical facts, including statements about Qudian's
beliefs and expectations, are forward-looking statements.
Forward-looking statements involve inherent risks and
uncertainties. A number of factors could cause actual results to
differ materially from those contained in any forward-looking
statement, including but not limited to the following: Qudian's
goal and strategies; Qudian's expansion plans; Qudian's future
business development, financial condition and results of
operations; Qudian's expectations regarding demand for, and market
acceptance of, its credit products; Qudian's expectations regarding
keeping and strengthening its relationships with borrowers,
institutional funding partners, merchandise suppliers and other
parties it collaborate with; general economic and business
conditions; and assumptions underlying or related to any of the
foregoing. Further information regarding these and other risks is
included in Qudian's filings with the SEC. All information provided
in this press release and in the attachments is as of the date of
this press release, and Qudian does not undertake any obligation to
update any forward-looking statement, except as required under
applicable law.
For investor and media inquiries, please contact:
In China:
Qudian Inc.
IR team
Tel: +86-592-591-1580
E-mail: ir@qudian.com
The Piacente Group, Inc.
Xi Zhang
Tel: +86 (10) 6508-0677
E-mail: qudian@tpg-ir.com
In the United States:
The Piacente Group, Inc.
Chris Chu
Tel: +1-212-481-2050
E-mail: qudian@tpg-ir.com
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SOURCE Qudian Inc.