Qudian Inc. Reports Second Quarter 2025 Unaudited Financial Results

Core Viewpoint - Qudian Inc. has decided to wind down its last-mile delivery business to focus on sustainable growth and shareholder value, resulting in significant changes in its financial performance for the second quarter of 2025 [2][3]. Financial Performance - Sales income and other revenues decreased by 93.5% to RMB3.5 million (US$0.5 million) from RMB53.3 million in the same quarter of 2024, primarily due to the decline in the last-mile delivery business [3]. - Total operating costs and expenses increased to RMB117.7 million (US$16.4 million) from RMB110.8 million in the second quarter of 2024 [4]. - Cost of revenues decreased by 93.6% to RMB3.0 million (US$0.4 million) from RMB46.2 million in the same quarter of 2024, reflecting the winding down of the last-mile delivery business [4]. - General and administrative expenses rose by 39.6% to RMB65.9 million (US$9.2 million) from RMB47.2 million in the second quarter of 2024, mainly due to increased depreciation and property tax expenses [5]. - Research and development expenses decreased by 25.5% to RMB11.3 million (US$1.6 million) from RMB15.2 million in the same quarter of 2024, attributed to a reduction in staff headcount [6]. - Loss from operations was RMB113.9 million (US$15.9 million), compared to RMB57.4 million in the second quarter of 2024, primarily due to the business wind-down and increased expenses [7]. Investment Income - Interest and investment income, net increased by 392.3% to RMB440.5 million (US$61.5 million) from RMB89.5 million in the same quarter of 2024, driven by higher investment income [8]. Net Income - Net income attributable to Qudian's shareholders was RMB311.8 million (US$43.5 million), compared to RMB99.8 million in the second quarter of 2024, with net income per diluted ADS at RMB1.86 (US$0.26) [9][11]. Cash Flow and Assets - As of June 30, 2025, the company had cash and cash equivalents of RMB4,029.0 million (US$562.4 million) and restricted cash of RMB782.3 million (US$109.2 million) [10]. - Net cash used in operating activities was RMB1.1 million (US$0.2 million), while net cash used in investing activities was RMB698.2 million (US$97.5 million) [11][12]. Share Repurchase Program - The Board approved a share repurchase program in March 2024, allowing the purchase of up to US$300 million worth of Class A ordinary shares or ADSs over 36 months, with approximately US$54.6 million spent on repurchasing 22.7 million ADSs by August 12, 2025 [13][14].