Qudian Inc.
Q4 2020 Earnings Call Transcript

Published: 29 Mar 2021

[Operator:]

Hello, ladies and gentlemen. Thank you for standing by for Qudian Inc. Fourth Quarter and Full Year 2020 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 our host from Qudian. Please go ahead.

[Unidentified Company Representative:]

Hello, everyone, and welcome to Qudian's fourth quarter and full year 2020 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 Chief Executive Officer; and Ms. Sissi Zhu, our VP of Investor Relations will start the call with their prepared remarks.

[Min Luo:]

Hello, everyone. I would like to thank you all for joining today’s call. Despite pandemic-driven uncertainty and challenging market conditions as well as a continuously shifting regulatory environment, we were able to conclude 2020 with further improvements in our asset quality as we remained vigilant in our cash credit business operation. In the fourth quarter of 2020, we generated approximately RMB4.8 billion transactions from our loan book business, sustaining relatively flat with the previous quarter. As 2021 unfolds, we will continue to prudently operate our cash loan business, while simultaneously exploring new areas for growth. Turning to our new business initiative, we remain on track to develop our early childhood education business. Now, I would like to turn the call over to Sissi for more details on our results.

[Sissi Zhu:]

Thank you, Min, and good morning and good evening, everyone. As Min mentioned, given that 2020 saw the impact from a weakened global economy and intricate online lending market dynamics, we have been maintaining cautious and conservative operation in our loan business by implementing strict credit risk assessments for new transactions. As a result, our loan book transaction volume slightly decreased by 2% in the fourth quarter from the prior quarter. Meanwhile, our open platform loan transaction volumes declined 50% sequentially.

[Operator:]

Certainly. As there's no further questions, I would like to hand the call back to the presenters.

[Sissi Zhu:]

Let's wait. Let's stay online for another three minutes and see if there’s any further questions. Thank you, operator.

[Operator:]

As there are no further questions, I would like to hand the call back to our presenters for any closing remarks. Thank you.

[Sissi Zhu:]

So thank you once again for joining us today. If you have further questions, please feel free to contact Qudian's Investor Relations team through our website or through the email, and we’re happy to answer your question. Thank you.

[Operator:]

Thank you. This concludes the conference call. You may now disconnect your lines. Thank you.