XIAMEN, China – August 13, 2025 – Qudian Inc. (NYSE: QD), a Chinese tech company focused on consumer solutions, released its unaudited financial results for the second quarter of 2025 today. The report reveals a shifting business strategy as the company navigates a competitive landscape.
Key Financial Highlights for Q2 2025:
- Revenue totaled RMB3.5 million ($0.5 million USD), a sharp contrast to the RMB53.3 million reported during the same period last year.
- Net income attributable to Qudian shareholders reached RMB311.8 million ($43.5 million USD), a significant increase from RMB99.8 million in Q2 2024. Earnings per diluted ADS (American Depositary Share) were RMB1.86 ($0.26 USD).
In a strategic move, Qudian announced its decision to wind down its last-mile delivery operations. Management cited increasing industry competition as the primary factor. The company aims to streamline operations and focus on sustainable growth and enhanced shareholder value by optimizing its portfolio.
A Closer Look at Q2 Financials:
Sales and Other Income: Revenue plummeted by 93.5%, landing at RMB3.5 million ($0.5 million USD). This decline is directly attributed to the challenges facing Qudian’s last-mile delivery business, which has been squeezed by intensifying competition. The strategic decision to exit this segment reflects a commitment to resource allocation and profitable ventures.
Operating Costs and Expenses: Total operating costs and expenses increased to RMB117.7 million ($16.4 million USD) from RMB110.8 million year-over-year.
Cost of Revenues: Cost of revenues mirrored the top-line decline in the delivery sector, decreasing by 93.6% to RMB3.0 million ($0.4 million USD) from RMB46.2 million in Q2 2024.
General and Administrative Expenses: Spending in this area rose by 39.6% to RMB65.9 million ($9.2 million USD). This increase is primarily due to higher depreciation expenses and property taxes following the completion of Qudian’s new headquarters.
Research and Development Expenses: Qudian trimmed its R&D spending by 25.5% to RMB11.3 million ($1.6 million USD). The company attributes this to staff reductions and corresponding salary decreases related to winding down some businesses.
Operating Losses: The company reported an operating loss of RMB113.9 million ($15.9 million USD), compared to a RMB57.4 million loss in the same quarter last year. Besides the winding down of businesses, the increase in depreciation and property tax expenses following the completion of the construction of the Company’s headquarters also contributed to the loss.
Investment Income: A sharp contrast to the operating environment, interest and investment income soared by 392.3% to RMB440.5 million ($61.5 million USD), up from RMB89.5 million in Q2 2024, reflecting successful investment strategies.
Derivative Gains: A notable gain on derivative instruments of RMB30.2 million ($4.2 million USD) was reported, although lower than the RMB58.4 million gain in the prior year. This gain reflects market movements in the underlying equity securities related to Qudian’s derivative holdings.
Bottom Line: Qudian’s net income attributable to shareholders reached RMB311.8 million ($43.5 million USD), with diluted ADS earning RMB1.86 ($0.26 USD).
Cash Flow and Capital Management:
Qudian’s balance sheet remains strong. As of June 30, 2025, the company held RMB4,029.0 million ($562.4 million USD) in cash and cash equivalents, along with RMB782.3 million ($109.2 million USD) in restricted cash. The restricted cash is primarily held as security deposits for short-term borrowings and is not available for general liquidity purposes.
In Q2 2025, Qudian used RMB1.1 million ($0.2 million USD) in operating activities. Net cash used in investing activities totaled RMB698.2 million ($97.5 million USD) driven by purchase of short-term investments, while net cash used in financing activities of RMB 81.3 million ($11.3 million USD) was result of buybacks of ordinary shares.
Share Repurchase Program:
Qudian’s board approved a share repurchase program in March 2024, authorizing the company to buy back up to $300 million USD of its Class A ordinary shares or ADSs over 36 months, starting June 13, 2024. Since the program start, Qudian has repurchased 22.7 million ADSs on the open market for approximately $54.6 million USD until August 12, 2025.
In total, Qudian has repurchased 177.0 million ADSs for approximately $748.8 million USD.
About Qudian Inc.:
Qudian Inc. is a technology company that historically focused on providing credit solutions to consumers in China. Building upon its prior experiences, the company aims to leverage its technological expertise to identify and pursue innovative business areas.
For more information, please visit http://ir.qudian.com.
Use of Non-GAAP Financial Measures
Qudian utilizes Non-GAAP net income/loss attributable to Qudian’s shareholders to assess their operational results and for financial and operational decision-making. Non-GAAP measures are intended to highlight foundational trends in the business by removing the impact of non-cash charges, such as share-based compensation. The company believes providing such measures can aid in understanding the underlying performance by both management and investors.
Non-GAAP figures, however, are not a substitute for figures calculated under U.S. GAAP. The company mitigates any limitations of relying on non-GAAP figures by providing a reconciliation of GAAP and non-GAAP results.
Exchange Rate Information
RMB to U.S. dollar translations are provided for convenience only, using the noon buying rate of RMB7.1636 to US$1.00 on June 30, 2025.
Statement Regarding Preliminary Unaudited Financial Information
Figures provided in this release are preliminary and subject to change based on final audit results.
Safe Harbor Statement
This article contains forward-looking statements that are subject to risks and uncertainties. Actual results may differ materially from those expressed or implied in these statements. Factors that could cause such differences include, but are not limited to, Qudian’s goals and strategies, expansion plans, future business development, financial condition, and results of operations.
All information provided in this press release is as of the date of this press release, and Qudian does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
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QUDIAN INC. |
||||||
|
Unaudited Condensed Consolidated Statements of Operations |
||||||
|
Three months ended June 30, |
||||||
|
(In thousands except for number |
2024 |
2025 |
||||
|
of shares and per-share data) |
(Unaudited) |
(Unaudited) |
||||
|
RMB |
RMB |
US$ |
||||
|
Revenues: |
||||||
|
Sales income and others |
53,328 |
3,490 |
487 |
|||
|
Total revenues |
53,328 |
3,490 |
487 |
|||
|
Operating cost and expenses: |
||||||
|
Cost of revenues |
(46,248) |
(2,956) |
(413) |
|||
|
Sales and marketing |
(1,054) |
(671) |
(94) |
|||
|
General and administrative |
(47,165) |
(65,853) |
(9,193) |
|||
|
Research and development |
(15,219) |
(11,331) |
(1,582) |
|||
|
(Provision for)/Reversal of expected credit losses on receivables and other assets |
(751) |
270 |
38 |
|||
|
Impairment loss from other assets |
(387) |
(37,148) |
(5,186) |
|||
|
Total operating cost and expenses |
(110,824) |
(117,689) |
(16,430) |
|||
|
Other operating income |
119 |
330 |
46 |
|||
|
Loss from operations |
(57,377) |
(113,869) |
(15,897) |
|||
|
Interest and investment income, net |
89,485 |
440,506 |
61,492 |
|||
|
Gain/(Loss) from equity method investments |
820 |
(1,005) |
(140) |
|||
|
Gain on derivative instruments |
58,376 |
30,212 |
4,217 |
|||
|
Foreign exchange loss, net |
(1,186) |
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