Online platform for small consumer credit products in China, Qudian Inc. (QD), today posted its current operational outlook, especially in the wake of recent market conditions and developments in the international trade scenario.
The company now expects that its total non-GAAP net income for fiscal 2019 to cross RMB 3.5 billion, excluding non-recurring costs and charges. Qudian also reaffirmed its previous guidance for total non-GAAP net income for fiscal 2018 of over RMB 2.5 billion, excluding non-recurring costs and charges.
The company also announced a new share repurchase program.
Back in the fourth quarter of 2017, Qudian repurchased up to $300 million worth of its American depositary shares. As of Dec. 13, 2018, the company has already repurchased about $267 million worth of ADSs under the program.
In addition to that, Qudian may repurchase up to $300 million worth of ADSs within the next twelve months.
CEO Min Luo stressed at the company’s position to develop online small consumption credit space. “Recent operating data continues to show strong user demand and risk-adjusted returns on track with our target. Our large and growing user base and fully institutionalized funding base provide strong visibility as to what we can achieve into next year,” he said.
“Given the disconnect between our strong business fundamentals and stock price, we are stepping up our share repurchase plan,” he added.
The new repurchases are planned to be funded from Qudian’s existing cash and cash equivalents or future cash provided by operating activities. As of Sep. 30, 2018, Qudian had cash and cash equivalents of about $401 million (RMB 2.75 billion.)