Qudian Inc. (NYSE: QD) rose Wednesday following Q3 results.
The China-based company, a leading provider of online small consumer credit products in China, announced that total revenues increased by 32.9% year-on-year to RMB1,928.9 million ($280.9 million U.S.)
Financing income was RMB960.2 million ($139.8 million U.S.), compared with RMB1,053.9 million for the same period last year. Sales income generated by the Dabai Auto business was RMB586.1 million ($85.3 million U.S.), compared to nil in the third quarter of 2017
Net income increased by 5.1% year-on-year to RMB683.8 million ($99.6 million U.S.), or RMB2.13 ($0.31 U.S.) per diluted American Depositary Share.
According to CEO Min Luo, "We further solidified our leading position in the online small consumer lending industry as the number of our registered users continued to grow, reaching 70 million as of the end of the third quarter.
"In particular, we continued to deliver a better service experience and set costs to borrowers at a highly competitive level, which drove an increase of more than 580,000 new active users to our platform in the third quarter with zero incremental marketing costs, even after the termination of user engagement on paid Alipay dedicated channel."
Qudian Chief Financial Officer Carl Yeung said, "We continued to purchase company shares in the open market given the visible disconnect between company's value and fundamentals. As of November 21, we have purchased approximately $240.9 million U.S. worth of shares under the repurchase plan announced in December 2017.
"In addition, our board of directors approved an extension of the current $300 million U.S. repurchase program for another year as a sign of confidence in our business operations."
Shares triumphed 45 cents, or 10.5%, to $4.74
