Qudian Inc. Reports Third Quarter 2025 Unaudited Financial Results

Core Viewpoint - Qudian Inc. is undergoing a significant business transition, winding down its last-mile delivery business while focusing on efficient cash management and exploring new business opportunities to create long-term shareholder value [2][3]. Financial Performance - Sales income and other revenues decreased by 84.5% to RMB8.5 million (US$1.2 million) from RMB55.0 million in Q3 2024, primarily due to the winding down of the last-mile delivery business [3][11]. - Total operating costs and expenses decreased by 2.3% to RMB119.1 million (US$16.7 million) from RMB122.0 million in Q3 2024 [3]. - Cost of revenues decreased by 86.6% to RMB6.5 million (US$0.9 million) from RMB48.9 million in Q3 2024, reflecting reduced service costs associated with the last-mile delivery business [4]. - General and administrative expenses increased by 41.1% to RMB82.7 million (US$11.6 million) from RMB58.6 million in Q3 2024, mainly due to higher depreciation and property tax expenses following the completion of the headquarters [5]. - Research and development expenses decreased by 23.8% to RMB11.1 million (US$1.6 million) from RMB14.6 million in Q3 2024, attributed to a reduction in staff headcount [6]. - Loss from operations was RMB110.6 million (US$15.5 million), compared to RMB67.0 million in Q3 2024, driven by the business wind-down and increased expenses [7]. Investment Income - Interest and investment income, net increased by 84.5% to RMB421.3 million (US$59.2 million) from RMB228.4 million in Q3 2024, primarily due to higher investment income [8]. - Gain on derivative instruments increased by 144.4% to RMB73.9 million (US$10.4 million) from RMB30.2 million in Q3 2024, linked to the rise in quoted prices of underlying equity securities [9]. Net Income - Net income attributable to Qudian's shareholders was RMB409.9 million (US$57.6 million), compared to RMB131.9 million in Q3 2024, with net income per diluted ADS at RMB2.47 (US$0.35) [9][11]. Cash Flow and Financial Position - As of September 30, 2025, the company had cash and cash equivalents of RMB7,010.6 million (US$948.8 million) and restricted cash of RMB1,518.7 million (US$213.3 million) [10]. - Net cash provided by operating activities was RMB384.0 million (US$53.9 million), mainly from interest and investment income [12]. - The company has initiated a share repurchase program, purchasing 26.3 million ADSs for approximately US$71.1 million since its launch [13].