Qudian Inc (NYSE: QD) posted a drop of 46.2% YoY in Q1 2021 revenues to $78.7 million. Qudian’s CEO, Min Luo, said the company adopted a prudent operational approach in Q1 2021 in its cash credit business. It also achieved significant strides in its early childhood education business.
Its financing income declined by 41.9% YoY to $55.2 million in Q1 2021. It is on the backdrop of a decline in its average loan balance.
Qudian’s loan facilitation income also dropped by 97.1% to $1.9 million in Q1 2021 because of reduced transaction volumes.
The company lowered its operating expenses to $9.7 million (down 96.9% YoY) in Q1 2021.
Improves net assets
The company’s stringent credit control measures helped it to improve asset quality. As a result, it lowered the D1 delinquency rate for its loan book business.
Qudian significantly improved its assets to RMB 12.4 billion in Q1 2021 besides holding short-term investments, cash equivalents (CE), and cash of RMB 7.3 billion.
Qudian maintains sufficient liquidity and a solid balance sheet to conduct its loan book business in these challenging market conditions. The company also offers funds to develop new businesses such as the underserved extra circular early childhood education market.
Qudian’s VP (Investor Relations), Sissi Zhu, is pleased to introduce its Xiamen-based WLM KIDS activities center early this year. She said its inauguration is a significant achievement in developing the early childhood education business.
The company strives to offer a comprehensive suite of services to support extra-curricular enrichment for children.
Qudian will inaugurate WLM KIDS activities centers across the nation in various cities to support its mission of helping kids in China grow and stay healthy. The company expects to reap rich rewards in the future by increasing investments in the WLM KIDS business.
With a substantial financial position, Qudian plans to grow its business and provide rich rewards to its shareholders.