Qudian Inc. (NYSE:QD) Q2 2019 Earnings Conference Call - Final Transcript

Aug 16, 2019 • 08:00 am ET


Qudian Inc. (NYSE:QD) Q2 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by for Qudian Inc. Second Quarter 2019 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 will 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 2019 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 or -- and sign up for the Company's distribution list by visiting our website at ir.qudian.com. Mr. Min Luo, our Founder, Chairman and Chief Executive Officer, and Mr. Carl Yeung, our Chief Financial Officer will start the call with their prepared remarks.

Before we continue, please note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the Company's results will be materially different from the views expressed today. Further information regarding these and other risks and uncertainties is included in the Company's 20-F as filed with the US Securities and Exchange Commission. The Company does not assume any obligation to update any forward-looking statements, except as required under applicable law.

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 discussion.

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

Min Luo

Thank you, Annie. I want to first thank all the investors, analysts and the media, who have taken an interest to join today's call. I'd like to walk you through some of our key factors in our performance before handing it over to Carl, who will take you through more details.

Another record breaking quarter in terms of user growth and net income. Our strength in earnings is not just about the scale and the growth trajectory. Since we launched open platform last year, we are enjoying substantially earnings quality improvement as a larger and larger portion of our quarter's earnings are generated from our risk-free open platform, our referral revenue.

Before we tap into the results, I would like to use the moment to help the community understand what is really driving the business. The early adoption of technology across our business has enabled us to develop a highly cost efficient and user-friendly platform for 100 plus licensed financial founding partners to sell the under-penetrated consumption credit market in