Qudian (QD) 13 Dec 212021 Q3 Earnings call transcript

Hello, ladies and gentlemen. Thank you for standing by for Qudian's Third Quarter 2021 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. Today's conference is being recorded. the to turn Qudian. host now will call our over from I go Please ahead.

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

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

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

risks uncertainties. inherent and Forward-looking statements involve

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

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

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

this on execute quality operational billion X.X% ensuring you market on-balance quarter. sequentially Thank sequentially XX.X% a asset billion. The loan book call. our business, decreased the to balance in third at business decreased RMBX.X our level. to Hello, for fast-evolving sheet us stable quarter, loan strategy for in prudent, our by by everyone. And RMBX credit continue we cash transactions volume Amid joining to our conditions in today's

we steady make WLM the progress During with KIDS to business. quarter, our continued

As of due we and activities, operating families. to to delivering The children resurgence. Shanghai high-quality Shenzhen, services all Xiamen, centers XX, in Fuzhou, XXXX, and COVID-XX extracurricular slower seven KIDS is WLM ramp-up had expected than products December and center of

in continuing health safety highest to our are the conditions proactively monitor ensure priority children, precautionary We closely of COVID-XX measures and ongoing and our to centers. and staff the taking families as

the industry recent for government strictly changes regulatory supplemental with We support applicable the also learning comply announced fully the and regulations. will

Moving of on our continue services, investment to and while business focus exploring quality the will improving also new forward, and products opportunities. we

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

remain Thank evening, DX you, standards good good loan in rigorous on end Min the quarter. X% credit uphold Echoing to of business, our the everyone. with our and Min stronger to for morning quarter. at quality new approvals rate profiles below We and book third focused borrowers on delinquency better origination continued continue loan and we credit the

more and X.Xx. MX+ our than by Additionally, our were balance coverage ratio outstanding remained XX% high funded our own Delinquency of loan capital at

grow we our Supported deliver to value and continue our Looking to will pursuing by believe to cash channels. potential ahead, new can operate over our the continue growth strong we long we business our overall business simultaneously prudently loan sheet, term. while shareholders balance sustainable

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

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

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

from the the for a and winding other last representing Sales due to million, RMBXXX RMBXXX income quarter the a by as of loan decreased of third in related the income million XXXX RMBX.X of as to million process facilitation off-balance the quarter for XXXX, RMBX.X decrease XXXX, decrease to to in by Loan third in related Our consideration. RMBXXX.X financing during result amount decreased quarter. the fee third which sheet average result million sheet transactions. income in credit transaction balance. we reduction million the the totaled from third million RMBXX.X of on-balance of income decrease the the third quarter to and of reassessment mainly million million the of a merchandise down. from commission Sales variable XX% are year, to of Transaction decreased quarter RMBX for loans and platform the the related decrease of for result XX.X% others of of in RMBX.X volume e-commerce increased from of due RMBXXX for quarter a mainly this other as Wanlimu services million fee to RMBXX of million income the from sales XXXX XX.X%

our Qudian's loss a Our will this result General prepared I RMBXX.X decrease decrease cost net the of Sales million of the million to staff with for RMBXX.X was shareholders RMBXX the the year, promotional of to costs million as and decrease losses salaries. from attributable expenses platform. the RMBXX.X XXXX, Research the of to to was million in quarter million million from for for quarter. administrative Qudian's RMBXXX.X to With marketing associated sold increased expenses million from salaries quarter to related Net my business. year, and decreased quarter for non-GAAP staff third primarily in And by last to development primarily Wanlimu attributable due shareholders loan book RMBXX.X RMBXX million. cost last million for primarily from conclude RMBXX decreased that, the third quarter XX.X% to the relating in RMBXXX.X goods a of by decrease million revenues and XX.X% XXX.X% of and remarks. of expenses. in marketing decreased due as RMBXXX.X expenses a e-commerce XXXX, of business third result third by in to KIDS XX.X% WLM increase to by the

We open will Operator, please questions. to call go the now ahead.

Your the from question go ahead. Zheng comes from Please line Instructions] Suisse. Frank of first [ph] Credit [Operator

This for Thank is Zheng from [ph] my taking you I management questions. Frank questions. Credit two Suisse. have

down And one maybe WLM economics? on please KIDS increase? what's program. pipeline in I The cost maybe on basis, the on first is also, apply more color well as little driving is next unit revenue. more how the And currently Could what's the how that the revenue the the provide payback many a -- period on in year? bit question the noticed sequential can on you break cost as is second increased, you

Frank. Thanks you, questions. for Thank the

regard COVID. down be two in And be because first are question almost actually three our When kids expected, of therefore, breakout. for third activity year. and over it's last cases shut ones be period have to opened. the during the business. centers our quarter centers as WLM ones your mentioned on to first centers had next COVID month the off regional So remarks, centers the in down for now, KIDS not centers our and been operation XX performance, during shut in to positive there seven because we good We we as prepared and the of COVID to city, address the see quarter will in the with The third we pipeline as

in answer I and question. So, question that And our not cost regard really hope are up current our possible the need because that regarding answers any stage It's down we two months as With closed revenues, again. a centers of to bring UE soon to points our we expansion. the a -- it once to hard imminent goal our breakeven is or got because as do COVID, of payback just further center three and to to moment, period we before another please. yet. heat to stabilized

So hire because centers. of the provide of the is when the earnings business, reporting revenues didn't under increase because we cost in our certain to teachers -- we and do of of segment required the the our rules. WLM have cost breakdowns accounting of instructors majority we not as KIDS But revenues is the in we

the hope answers So that question. in cost I their of revenue. are costs

much. very you Thank

Thank you. you. [Operator Thank Instructions]

the are I now, like questions As further the would to turn over company no call to there remarks. closing for

joining It's very So today. once a for again us call. thank you, everyone, short

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

Thank you. This concludes the conference call.

may Thank disconnect line. Thank all. You your you. you now