Qudian Inc. (NYSE:QD) Q2 2018 Earnings Conference Call - Final Transcript

Aug 24, 2018 • 07:00 am ET


Qudian Inc. (NYSE:QD) Q2 2018 Earnings Conference Call - Final Transcript


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Hello, ladies and gentleman, thank you for standing by for Qudian Corporations Second Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be a question-and-answer session. Today's conference call is being recorded.

I'll now turn the call over to your host, Ms. Annie Huang, Director of Capital Markets for the Company. Annie, please go ahead.

Annie Huang

Hello, everyone, and welcome to Qudian's second quarter 2018 earnings conference call. The Company's results were issued via newswire services earlier today and were posted online. You can download the earnings press release and sign up for the Company's distribution list by visiting our website at ir.qudian.com. Mr. Min Luo, our Founder, Chairman and CEO, and Mr. Carl Yeung, our CFO, will start the call with their prepared remarks.

(Forward-Looking Cautionary Statements).

Please also note that Qudian's earnings press release and this conference call include discussions of unaudited GAAP financial information as well as unaudited non-GAAP financial measures. Qudian's press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited most directly comparable GAAP measures. We also posted a slide presentation on our IR website providing details on our results in the quarter. We will reference those results in our prepared remarks, but will not refer to specific slides during our conversation.

I will now turn the call over to our CEO, Min Luo. Please go ahead.

Min Luo

Thank you, Annie. In the second quarter, we achieved a record net income and delivered (inaudible) strong results. During the quarter, we continued to grow our core online consumer finance business while our new Dabai Auto business made conservative growth with the total of profitability. Last quarter's practice is risking to tighten credit policies and adjusted product strategy worked well into the second quarter. As a result, we achieved a lowest year-on-year growth of 40.3% in loan balance while fee market improvement in risk metric and asset quality (inaudible) which is declined to less than 1.12% for new loans generated this year. The total delinquency rates increased slightly due to (inaudible) of loans generated last year, but also shows tapering options. In addition, as our West Europe growth (inaudible) and reaches RMB 67.9 million. We can focus on our growth of activating and monetizing our last fifteen user base instead of over the line on expensive maximum. Our strong status analytics stability in assessing customer credit quality further depressed us and allowed us to successfully (inaudible) adjust profitably.

During the second quarter, we were able to increase the average loan by the 10th of our high-quality users, in line with the income to meet their increasing consumption spending demand without raising the burden of monthly repayment while at the same time maintaining high credit quality. In addition, we continued to diversify our funding profit through partnerships and remained committed to strict compliance with both existing and new loans and regulation. Our core business is on solid putting. I would also like to share update on