Q4 2020 Qudian Inc Earnings Call
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Hello, Ladies and gentlemen, thank you for standing by for QD, and Inc. Fourth quarter and full year 2020 earnings Conference call. At this time, all participants a listen only mode. After management's prepared remarks, there will be a question and answer session Today's conference call.
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Hello, everyone and welcome to JD on fourth quarter, and full year, 2020 earnings conference call the company's results or E sales.
With me on Newswire services earlier today and were posted online you can download the earnings press release and science with a coffee speech here shortly by visiting our web deck and I ourselves she didn't go up and.
And if anything at all our founder and Chairman and Chief Executive Officer, and new physical our VP of Investor Relations will start a call with their prepared remarks.
Before we continue please note that today's discussion will contain forward looking statements made on the safe Harbor provisions of the U S. Private Securities Litigation Reform Act of 1995.
Forward looking statements involve inherent risks and uncertainties.
As such the company as a result may be materially different from the views expressed is a debate for information regarding these and other risks and uncertainties is included in the company's from B F. As filed with the U S Securities and Exchange Commission. The company does not assume any obligation to update the Amy a phone.
And we're looking statements, except as required under applicable law.
Please also note that she does earnings press release and this conference call include discussions of unaudited GAAP financial information as well as unaudited non-GAAP financial measures excuse me on.
A press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited most directly comparable GAAP measure.
We also posted a slide presentation on our IR website, providing details on our results in a quarter. We will reference sales results in our prepared remarks, but will not refer to specific slides during our discussion.
I'll now turn the call over to our CEO Milo. Please go ahead.
Hello, everyone.
I'd like to thank you all for joining today's call.
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And to me so I was a set to meet and challenging market conditions cause conditions as well as a continued shifting that's still a.
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We were able to conclude 2000 and a country with a further improvement.
And our asset quality as we remained.
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And our cash and credit.
And its operations.
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We will continue to prudently operate our cash non business Wow.
At a pace New York City is supporting a new area for growth.
And into our new business initiatives.
We remain on track to develop our early childhood education business.
Now I would like to turn the call over to a city.
For more details.
All of our results.
Thank you Manny and good morning, and good evening, everyone at.
As Min mentioned, given that 200, and <unk> sort of impact from a weekend global economy and Inchcape on line 90 market dynamics, we have been maintaining a cautious and conservative operations in our loan business by implementing strict credit risk assessments for a new transaction.
As a result, our loan book transaction volume slightly decreased by 2% in the fourth quarter from the prior quarter.
Meanwhile, our open platform, a long transaction volume declined 50% sequentially.
In order to navigate integrate market dynamics, we continue to uphold rigorous standards for a credit approval and the fourth quarter.
In particular, new loans origination was focused on borrowers with strong credit profile.
Our delinquencies continued trending downwards compared to the prior quarter as evidenced by a decrease in our day, one delinquency rate, which fell to approximately 11% at the end of the fourth quarter from around 17% at the end of a third quarter.
We will continue to closely monitor and factors that may impact our business, including the evolving and regulatory regime in the online lending landscape and will proactively takes with measures in response to the rapidly changing environment.
We believe that our thoughtful operating strategy along with our solid fundamentals will help us deliver long term value to all stakeholders.
Besides I would like to mention a weird, graduating winding down our luxury e-commerce business.
Now, let me share with you and some key financial results in the interest of time I will not go over them line by line.
For a more detailed discussion of our fourth quarter and full year 2020 results. Please refer to on our earnings press release.
Our total revenues for the fourth quarter, whether it be $714 million, representing a decrease of 53% from <unk>.
Fourth quarter after a 19.
Net income totaled $412 million, representing a decrease of 43% from the fourth quarter up from 19 as a result of a decrease in the average on balance sheet loans.
Our loan facilitation income and other related income decreased by 17, 8% to them and be 103 million from the fourth quarter net of 2019 as a result of the reduction reduction in transaction volume.
And she loans during this quarter.
Our sales income increased to a and b $162 million from the fourth quarter. After a 19, mainly due to sales related to the luxury e-commerce platform, partially offset by the winding down of the Sabine also a business.
Cost of revenues increased by.
35%, Jim and B to a $102 million from the fourth quarter of 2019, primarily due to the increase and cost of goods sold related to the luxury E. Commerce platform, partially offset by a decrease and funding costs associated with the on balance sheet loan book business, and a decrease and a cost of debt out there.
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Our provisions for receivables and other assets reverts to negative $7 6 million compared to a positive and then b $707 million for the fourth quarter up from 19, mainly due to the decrease in the past due on balance sheet and outstanding principal receivables compared to the fourth quarter of 2009.
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Our net income attributable to Chilean shareholders, Washington D C.
$674 million and our non-GAAP net income was RMB $684 million.
With that I will conclude my prepared remarks, we will now open the call to questions. Operator. Please continue.
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That's a need to ask a question and you will need to pick on one on your kind of a food to withdraw your question a piece.
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Please standby, while we compile the Q&A roster.
For the benefit of all participants on today's call.
Wish to ask a question can management and Chinese.
If you repeat your question in English and Q.
Once a day if you wish Greg. Please just wanted to kill a shows and.
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A question and I would like to hand, the quality back to the presenters.
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And that's way, let's stay on LIBOR and under three minutes.
And see if there's any further questions. Thank you operator.
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Once again, if you wish to ask a question.
On one.
You got.
And to be loans.
A quick reminder.
To ask a question. Please press star one on your telephone and wait for a name to be announced and Keith.
And so there are no further questions I would like to hand, the call back to a person interest for any closing remarks. Thank you.
So thank you once again for joining US today. If you have further questions. Please feel free to contact our investor relation team a draw.
Our website all I can do the email we're happy to answer your question. Thank you.
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Thank you. This concludes the conference call and you May now disconnect. Your line. Thank you.
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