Qudian Inc. Reports First Quarter 2025 Unaudited Financial Results

Qudian Inc. (“Qudian” or “the Company” or “We”) (NYSE: QD), a consumer-oriented technology company in China, today announced its unaudited financial results for the quarter ended March 31, 2025.

First Quarter 2025 Financial Highlights:

— Total revenues were RMB25.8 million (US$3.6 million), compared to RMB55.8 million for the same period of last year

— Net income attributable toQudian's shareholders was RMB150.1 million (US$20.7 million), compared to net loss of RMB73.6 million for the same period of last year; net income per diluted ADS was RMB0.87 (US$0.12) for the first quarter of 2025

— Non-GAAP net income attributable to Qudian's shareholders was RMB150.1 million (US$20.7 million), compared to non-GAAP net loss of RMB73.5 million for the same period of last year. We exclude share-based compensation expenses from our non-GAAP measures. Non-GAAP net income per diluted ADS was RMB0.87 (US$0.12) for the first quarter of 2025

The Company's last-mile delivery business continued to face intense competition in the first quarter of 2025, resulting in a substantial decline in revenue to approximately RMB23.8 million in the first quarter of 2025, compared to RMB53.8 million for the same period of last year. After assessing current market conditions, the Company is contemplating winding down its last-mile delivery business. Moving forward, the Company expects to remain steadfast in its commitment to executing its business transition and simultaneously maintaining prudent cash management to safeguard its balance sheet.

First Quarter Financial Results

Sales income and others decreased by 53.8% to RMB25.8 million (US$3.6 million) from RMB55.8 million for the first quarter of 2024, which was primarily due to the decrease in sales income generated from last-mile delivery business as a result of the increased competition in the industry.

Total operating costs and expenses decreased to RMB91.3 million (US$12.6 million) from RMB128.4 million for the first quarter of 2024.

Cost of revenues decreased by 54.8% to RMB26.2 million (US$3.6 million) from RMB58.0 million for the first quarter of 2024, primarily due to the decrease in service cost related to last-mile delivery business as a result of the decline in delivery order volume.

General and administrative expenses decreased by 15.6% to RMB48.3 million (US$6.7 million) from RMB57.3 million for the first quarter of 2024, primarily due to the decrease in staff compensations.

Research and development expenses decreased by 17.6% to RMB13.1 million (US$1.8 million) from RMB15.9 million for the first quarter of 2024, as a result of the decrease in staff head count, which led to a corresponding decrease in staff salaries.

Loss from operations was RMB65.5 million (US$9.0 million), compared to RMB72.5 million for the first quarter of 2024.

Interest and investment income, net increased by 205.3% to RMB165.4 million (US$22.8 million) from RMB54.2 million for the first quarter of 2024, mainly attributable to the increase of income from investments in the first quarter of 2025.

Gain/(loss) on derivative instrument was a gain of RMB47.3 million (US$6.5 million), compared to a loss on derivative instrument of RMB36.5 million for the first quarter of 2024. The gain was mainly due to the realized investment income of derivative instrument.

Net income attributable to Qudian's shareholderswas RMB150.1 million (US$20.7 million), compared to net loss attributable to Qudian's shareholders of RMB73.6 million in the first quarter of 2024. Net income per diluted ADS was RMB0.87 (US$0.12).

Non-GAAP net income attributable to Qudian's shareholderswas RMB150.1 million (US$20.7 million), compared to non-GAAP net loss attributable to Qudian's shareholders of RMB73.5 million in the first quarter of 2024. Non-GAAP net income per diluted ADS was RMB0.87 (US$0.12).

Cash Flow

As of March 31,2025, the Company had cash and cash equivalents of RMB4,822.9 million (US$664.6 million) and restricted cash of RMB782.2 million (US$107.8 million). Restricted cash mainly represents security deposits held in designated bank accounts for the guarantee of short-term borrowings. Such restricted cash is not available to fund the general liquidity needs of the Company.

For the first quarter of 2025, net cash provided by operating activities was RMB254.3 million (US$35.0 million), mainly due to the net proceeds from realized investment income of short-term investments. Net cash provided by investing activities was RMB389.1 million (US$53.6 million), mainly due to proceeds from withdrawal of deposit pledged as collateral for derivative instrument and partially offset by purchase of short-term investments. Net cash used in financing activities was RMB73.0 million (US$10.1 million), mainly due to the repurchase of ordinary shares.

Last-mile Delivery Business

In December 2022, the Company launched its last-mile delivery services under the brand name of “Fast Horse” to capitalize on the logistics demand for cross-border e-commerce transactions. The business was initially launched on a trial basis and has gradually achieved meaningful scale in Australia during the second quarter of 2023. As of the date of this release, the Company's last-mile delivery service is encountering intense competition and uncertainty. After assessing current market conditions, the Company is contemplating winding down its last-mile delivery business. The Company intends to continue exploring innovative business opportunities to satisfy consumers' demand by leveraging its technology capabilities.

Update on Share Repurchase

Our Board approved a share repurchase program in March 2024 to purchase up to US$300 million worth of Class A ordinary shares or ADSs in the next 36 months starting from June 13,2024. From the launch of the share repurchase program on June 13, 2024 to May 26, 2025, the Company has in aggregate purchased 21.8 million ADSs in the open market for a total amount of approximately US$52.0 million (an average price of $2.4 per ADS) pursuant to the share repurchase program.

As of May 26, 2025, the Company had in aggregate purchased 176.1 million ADSs for a total amount of approximately US$746.2 million (an average price of $4.2 per ADS).

About Qudian Inc.

Qudian Inc. (“Qudian”) is a consumer-oriented technology company. The Company historically focused on providing credit solutions to consumers. Qudian is exploring innovative business opportunities to satisfy consumers' demand by leveraging its technology capabilities.

For more information, please visit http://ir.qudian.com.

Use of Non-GAAP Financial Measures

We use Non-GAAP net income/loss attributable to Qudian's shareholders, a Non-GAAP financial measure, in evaluating our operating results and for financial and operational decision-making purposes. We believe that Non-GAAP net income/loss attributable to Qudian's shareholders helps identify underlying trends in our business by excluding the impact of share-based compensation expenses, which are non-cash charges. We believe that Non-GAAP net income/loss attributable to Qudian's shareholders provides useful information about our operating results, enhances the overall understanding of our past performance and future prospects and allows for greater visibility with respect to key metrics used by our management in its financial and operational decision-making.

Non-GAAP net income/loss attributable to Qudian's shareholders is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. This Non-GAAP financial measure has limitations as an analytical tool, and when assessing our operating performance, cash flows or our liquidity, investors should not consider them in isolation, or as a substitute for net loss /income, cash flows provided by operating activities or other consolidated statements of operation and cash flow data prepared in accordance with U.S. GAAP.

We mitigate these limitations by reconciling the Non-GAAP financial measure to the most comparable U.S. GAAP performance measure, all of which should be considered when evaluating our performance.

For more information on this Non-GAAP financial measure, please see the table captioned “Unaudited Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this press release.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB7.2567 to US$1.00, the noon buying rate in effect on March 31, 2025, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all.

Statement Regarding Preliminary Unaudited Financial Information

The unaudited financial information set out in this earnings release is preliminary and subject to potential adjustments. Adjustments to the consolidated financial statements may be identified when audit work has been performed for the Company's year-end audit, which could result in significant differences from this preliminary unaudited financial information.

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 products; Qudian's expectations regarding keeping and strengthening its relationships with customers, business partners and other parties it collaborates 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. Tel: +86-592-596-8208 E-mail: ir@qudian.com

QUDIAN INC.Unaudited Condensed Consolidated Statements of Operations Three months ended March 31,(In thousands except for number 2024 2025of shares and per-share data) (Unaudited) (Unaudited) RMB RMB US$Revenues:Sales income and others 55,849 25,789 3,554Total revenues 55,849 25,789 3,554Operating cost and expenses:Cost of revenues (58,036) (26,239) (3,616)Sales and marketing (105) (1,448) (200)General and administrative (57,261) (48,344) (6,662)Research and development (15,853) (13,064) (1,800)Reversal of expected credit losses on receivables and other assets 3,223 957 132Impairment loss from other assets (350) (3,160) (435)Total operating cost and expenses (128,382) (91,298) (12,581)Other operating income 22 35 5Loss from operations (72,511) (65,474) (9,022)Interest and investment income, net 54,187 165,435 22,798Loss from equity method investments (1,377) – -(Loss)/Gain on derivative instruments (36,517) 47,328 6,522Foreign exchange gain/(loss), net 218 (2,402) (331)Other income 7,391 5,666 781Other expenses (247) (439) (60)Net (loss)/income before income taxes (48,856) 150,114 20,688Income tax expenses (24,754) (9) (1)Net (loss)/income (73,610) 150,105 20,687Net (loss)/income attributable to Qudian Inc.'s shareholders (73,610) 150,105 20,687(Loss)/Income per share for Class A and Class B ordinary shares:Basic (0.38) 0.90 0.12Diluted (0.38) 0.87 0.12(Loss)/Income per ADS (1 Class A ordinary share equals 1 ADSs):Basic (0.38) 0.90 0.12Diluted (0.38) 0.87 0.12Weighted average number of Class A and Class B ordinary shares outstanding:Basic 194,517,922 167,011,354 167,011,354Diluted 199,633,026 171,896,551 171,896,551Other comprehensive gain/(loss):Foreign currency translation adjustment 24,076 (9,307) (1,283)Total comprehensive (loss)/income (49,534) 140,798 19,404Total comprehensive (loss)/income attributable to Qudian Inc.'s shareholders (49,534) 140,798 19,404QUDIAN INC.Unaudited Condensed Consolidated Balance Sheets As of December 31, As of March 31,(In thousands except for number 2024 2025of shares and per-share data) (Unaudited) (Unaudited) RMB RMB US$ASSETS:Current assets:Cash and cash equivalents 4,263,312 4,822,853 664,607Restricted cash 781,187 782,169 107,786Time and structured deposit 2,009,019 2,203,627 303,668Derivative instruments-asset – 18,139 2,500Short-term investments 1,118,547 1,430,652 197,149Accounts receivables 34,275 15,068 2,076Other current assets 1,933,182 1,098,972 151,442Total current assets 10,139,522 10,371,480 1,429,228Non-current assets:Right-of-use assets 158,007 123,731 17,051Investment in equity method investee 146,101 146,012 20,121Long-term investments 78,987 78,987 10,885Property and equipment, net 1,586,034 1,584,931 218,409Intangible assets 2,207 2,064 284Other non-current assets 353,369 345,448 47,604Total non-current assets 2,324,705 2,281,173 314,354TOTAL ASSETS 12,464,227 12,652,653 1,743,582QUDIAN INC.Unaudited Condensed Consolidated Balance Sheets (Continued) As of December 31, As of March 31,(In thousands except for number 2024 2025of shares and per-share data) (Unaudited) (Unaudited) RMB RMB US$LIABILITIES AND SHAREHOLDERS' EQUITYCurrent liabilities:Short-term borrowings and interest payables 720,000 720,000 99,219Short-term lease liabilities 18,697 13,015 1,793Derivative instruments-liability 89,895 129,436 17,837Accrued expenses and other current liabilities 262,078 377,375 52,003Income tax payable 33,423 33,313 4,591Total current liabilities 1,124,093 1,273,139 175,443Non-current liabilities:Long-term lease liabilities 48,706 20,795 2,866Total non-current liabilities 48,706 20,795 2,866Total liabilities 1,172,799 1,293,934 178,309Shareholders' equity:Class A Ordinary shares 132 132 18Class B Ordinary shares 44 44 6Treasury shares (1,419,286) (1,491,531) (205,538)Additional paid-in capital 4,026,668 4,025,406 554,716Accumulated other comprehensive loss 13,751 4,444 612Retained earnings 8,670,119 8,820,224 1,215,459Total shareholders' equity 11,291,428 11,358,719 1,565,273TOTAL LIABILITIES AND SHAREHOLDERS'EQUITY 12,464,227 12,652,653 1,743,582QUDIAN INC.Unaudited Reconciliation of GAAP And Non-GAAP Results Three months ended March 31, 2024 2025(In thousands except for number (Unaudited) (Unaudited)of shares and per-share data) RMB RMB US$Total net (loss)/income attributable to Qudian Inc.'s shareholders (73,610) 150,105 20,687Add: Share-based compensation expenses 107 – -Non-GAAP net (loss)/income attributable to Qudian Inc.'s shareholders (73,503) 150,105 20,687Non-GAAP net (loss)/income per share-basic (0.38) 0.90 0.12Non-GAAP net (loss)/income per share-diluted (0.38) 0.87 0.12Weighted average shares outstanding-basic 194,517,922 167,011,354 167,011,354Weighted average shares outstanding-diluted 199,633,026 171,896,551 171,896,551

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SOURCE Qudian Inc.

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