Qudian (QD) 14 Dec 202020 Q3 Earnings call transcript

Hello, ladies and gentlemen. Thank you for standing by for Qudian's Inc.

Third Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. After management’s prepared remarks, there will be a question-and-answer session. being is call conference recorded. Today’s like I to the over turn host would from now your Qudian's. call to Please go ahead.

Hello, everyone, via call. The today and earnings were company's XXXX welcome and results to Qudian's were online. issued posted Newswire earlier third services quarter conference

will earnings our Ms. of You visiting and sign up list at Chief the Founder, Sissi Chairman, ir.qudian.com. VP Mr. start Executive release for can press Relations their and and company's Zhu, with the our prepared Investor download distribution our Officer; the website by call Min Luo, remarks.

that continue, please of discussion we Litigation statements Before forward-looking Private made U.S. the note Reform provision today's Harbor will XXXX. of Safe contain Act Securities under the

involve and uncertainties. inherent statements risks Forward-looking

as today. is not Further and obligation Securities regarding other GAAP reconciliation required conference any the measures risks of release measures. a law. discussions in press the filed Qudian's The and unaudited included company information that such, does assume the results materially company's different expressed As these most uncertainties company's be Exchange well Commission. include call U.S. and with note unaudited press forward-looking any Qudian's may XX-F also release to measures. information unaudited earnings the non-GAAP this as contains as comparable the financial and statements under as non-GAAP except update from unaudited directly views of to financial the Please applicable GAAP

IR on providing results presentation also on our the website posted slide a We quarter. in details our

turn over our Please during will refer results reference Luo. to those but call go specific will slides to now discussion. will in our not Min ahead. our remarks, prepared CEO, I We the

Stringent quarter, our third call. and with cash transactions credit was would all loan thank you in billion quarter, across lending standards we changing line see operations business, this the regulatory our our meaningful public of to business, rate for year. with [indiscernible] ability landscape. credit are approval for compared measures small I online environment, our of business this in joining delighted interim online may ever In credit today’s we recent everyone. to for still potentially heighted expectations. in volatility. The improvement to while RMBX seek to In prudent maintained bolstered to generating to the book the amid delinquency opinion the regard our like administration operating environment industry evolving first Hello, [ph] half navigate near-term which the

credit small regulations do the business However, we we online to extend loans. for not not authorize do companies expect small credit and proposed to our business, affect

closely and credit monitor exciting exploring in growth the will steady common in us new you look for our We continue continue updating to opportunities. industry. education with our the make to we business, quarters. is invest initiatives, new while the in we area forward regulatory and childhood progress to developments an further Early loans Besides progress

I Now, the call to turn on details more results. over our Sissi for would like to

Loan basis. and this to XXX% Notably, you, and platform. conservative income Min. value and rigorous see This assessment to cautious In by evening, to morning credit sequential on in a business good improvement developments, on indicator our is quarter, of great long-term RMBXXX a in In challenges performing executing of we're ongoing been profitability to our market and approximately fluctuating our by our have overcome ability light stakeholders. everyone. we conditions, Thank And strategy deliver our regulatory good significant million. a quarter-over-quarter a our encouraged net increased

Day-X result, quality a improve by delinquency decrease our improvement a our evidenced in an to As credit drove the efforts credit performance, in rate.

by by September, the end of decreased the the November to further June, rate delinquency from around Day-X approximately XX% overall XXXX. which by reduced XX% XX% to of end end Our of

cash the outside channels onshore growth potential pursuing liquidity backed credit by business renminbi robust our continued position. also We

are We services. concrete happy providing education we'll new our early long to related be to of the term childhood have prospects when And progress. we initiative growth share optimistic about more details

on including online close cash may the help to a confident and impact factors keeping regime other fundamentals growth. actively Meanwhile, strong for business, long the changing regulatory our environment watch evolving that credit been pursue our we've sustain rapidly that us and are term are We adapting business. will

by of with share the me I financial over interest let them Now, key not time, In some line results. line. go will you

our earnings For release. please third a results, to refer on press quarter XXXX more detailed our discussion

RMBX.X total of So RMBXXX the quarter billion million, our revenues third were decrease from XXXX. for XX.X% of a representing

in this income the reduction representing guarantee Transaction totaled third a with in decrease sheet to financing third transaction on-balance off-balance quarter loan decrease quarter a income quarter, of XXXX, fee quarter open of of result decreased million for reclassification offset facilitation from the result other from XXXX, Loan of as for million other of of RMBXXX a of million income a RMBXXX the million of partially mainly decreased a substantial RMBXXX XX% XX% decrease transaction average services XXXX, balance. in Our and the RMBXXX million, result by during of a income by sheet related accordance related RMBXXX RMBX.X amounts and from third ASCXXX. to income of platform. million for loans volume as as of

from by Net principal shareholders million a sheet receivables quarter to primarily to XXXX. RMBXXX attributable diluted decreased the or third in of quarter due of third million million of for the the the by RMBXXX RMBX.XX and from to The million the expenses to billion from business. third decrease of from sales reduced mainly was assets past-due decreased XXXX. was RMBXXX to other per RMBXX XXXX, e-commerce of the and receivables on-balance income by XXXX. for Total income decrease RMBX.X partially the compared Qudian's XX% Wanlimu Provision for Our the million, [ph] for quarter offset Dabai Auto quarter third to income to costs outstanding increased XX% due operating platform, ADS. sales launch RMBXXXmillion RMBXXX.X

net remarks. RMBXXX income shareholders Qudian's was that, conclude per RMBX.XX attributable diluted non-GAAP With to ADS. million, or my I will Our prepared

to call continue. please Operator We open questions. will the now

first you. question Instructions] the China your line Renaissance. Zuo from Please of Thank Jacky ask Our from question. [Operator comes

[Foreign Language] to will translate my try So questions. I

thanks Number for is the own our question. And just quarter. current just understand one lending lending origination I borrowers is new this loans questions recovery of a my want document to [ph] new we a Second management third that a saw is the to new using document lending model? about loan micro affect actually question have taking I couple in will online of So our about of current and ask. our whether understand observed regulation. So majority our capital. the mentioned

in third So helpful? regarding the is you. quarter? new some lastly - color will new acquisition any And Thank the can our about color management business acquisition and so the be borrowers new number early in education, new share child borrower

for Jacky, questions. them all you, one. Thank the one by address I'll

as – equity. for So we structures. Instead, license our trust And the disbursement. are know, you the from all we using [ph] using the loan are we our own not is Microcredit funding

changing We’ll adapt environment up if trust changes, close we China. very this But any now, you haven’t the yet. anything changes fast will is noted – fast. regulatory changing ever loan of structure pay its we So have and on any look a in as – which we disbursement kind the regulations know, regarding to don't regulatory

actually the our new borrowers we rates close in question and this Your borrowers, second the - for regarding as last approval to is quarter. new zero the quarter same

the number minimal. very So of is new borrowers

centers. very in business regarding our is new third consolidated a the about is still childhood initiative Your education early early actually The business question stage. offline

you will give you, more - all more when have there. concrete we questions. for the colors you. Thank business investors, We give a society the Thank Jacky,

Sissi. Very Thank you, helpful.

question Sanjay Aletheia Jain comes your ask of line from next the from Capital. Our Instructions] Please question. [Operator

Thank you for Hi. presentation. the

couple a of Just questions.

quarter, about lending the plan is, give The us lending year? side the I is tide. turned seems idea regulatory But the growth the next landscape some have first one fourth in you your know your can to evolving. and on

loan us be the you is in well, second are the demo how can for and about grow? you X idea question the if could quarter, on people And sales So to overall, of online. ordering million booming. the be some due And stuff should origination the COVID, that theory balance probably to in give more $XX the is very of seems book e-commerce doing small business know, third [ph] a

to So are or so think you X demo of share of what in of able with scale the happy levels do when will progress economics that Thank you. the be far? you you of or conditions kind business? And

questions one. Sanjay. by will one you, Thank address I your

So changing. as first of ever that is you industry landscape know, all,

our to crystallized. We'd So to get quo. its [ph] status still working keep like

third quarter. next don't the very visibility in So similar the be the to level the quarter fourth year the will in volume for have yet. low We

question about I looking your next but sorry, So year. into can't answer

on much and luxury question about second The money luxury this the spend e-commerce promotional We our spending subsidiaries platform. platform. on didn't

So isn't you sales from that the demo much notice that's why platform income as may X quarter. the previous the as

and maintain I Before operations we purchase on we strong platform, luxury answers question. of - hope the demand we for your - small low this on a repeat the very see business. keep a will this will and scale

a And not for the sure you Okay. as uncertainty regulatory quality Thanks. course, least saying side, One well. now, quarter, it at of like the improved. follow there the asset you side, on quarter, the first are have looks you asset know, not from is you things up lending of quality of are second clearly were But demand. trends, the sure

in intend open once platform on more or getting you lending So balance and not year? confident why least still growth, feel are you for present business And to confident? other restart next you about going or to - be are that at side? you sheet become some do So more the model

impact the current we But cash this either. can regulators we're we Actually, for sure statements do quite from the tone the business, our kind not from the see towards more of but is as of the number any statements, tightening online credit see have from recently. on them regulator of side a Sure. doesn't Most business.

quo. quality. loan right the improvement rule when keep a asset this are for stay our regulators was now So for restart But on possibility that to growth now, similar We just quarter hope the to status we volume do previous fourth good where just see still one, are may changing we'll very we status, again. our we the not although the we in out in

Thank Okay. you.

Sanjay. you, Thank

Chen Guotai International Your Please your of comes from next line question from ask question. the Steven [ph]

[Foreign Language] English. I'll into translate

like lending growth their what your new lowered rate below loan your outlook as rate your of originations related cut already volume one. would you XX% latest I And in in lending mainly question ask, coming of or basis. most on their has first - all, the the the Have of what peers loan And the new QX QX, - in First be QX. of your loans? equity to is, to That's is to balance in will lending in sheet quarters? rate of on second case

So in related to in provisions in to line that facilitation will risk that income, income guaranteed liability, move some back and especially income will line final liabilities is related other imply related of the zero write which the loan quarter? for and Thanks. assurance relate changes guarantee and to towards

Steven. you, Thank

better you exactly off regarding and no, your not of regarding zero. fourth portion still guarantee guaranteed if - the going sheet The second sheet totally a yet, our is, the guaranteed be gain the as others for balance guaranty liabilities? book as delinquency income pricing will its we in income. trend our and Because released to expected liability be of first loans, might gain So regarding XX%. in trends, off [ph] loss change didn't we see a balance continues. And the in balance than Because line next it's than the - for revenue the as and the initial less changes off question, into change gain in revenue the so the we later answer a know, policy, be question of sheet quarter,

around billion just maybe and question all you XXX sheet, that so business, is X.X, the just my on XXX maybe remaining months. four - But Sissi. average or around know million for tenor, around my amount, guarantee estimation, rough your based talking Thanks, about balance

not be definitely So will even write and you - expect in be minimal to do further very decline will back provisions? two lines may it if but zero, continue the

It's very possible.

delinquency to we to up can DX continues see reduce the now. - As to continue

Thanks.

Thank Language] [Foreign you.

the turn remarks. no As for the like further to there are questions, company to I'd call back closing

everyone once again Thank us for joining you today.

you If contact questions, further feel team. to have Relations Qudian's please Thank free Investor you.

concludes This conference you. Thank the call.

you. now disconnect lines. You may your Thank