CEO Min Luo said, “Since we have an
overwhelming demand situation, instead of increasing marketing spend we have
stepped up efforts to activate more new users in our loan book business.
Through our increased efforts in credit trials and our evolving credit
assessment system, new active borrowers increased by 107.9% from last quarter.”
Total outstanding loan balance at the end of the second quarter rose 91.8% to RMB28.7 billion.
Qudian also maintained its adjusted net income guidance for FY19 at above RMB 4.5 billion, which will represent a 76.5% increase from 2018.
Notably, Qudian is one of the few
US-listed Chinese firms that have performed relatively well in the backdrop of
US-China trade spat as well as a slowing economy back home. The stock has
doubled since the beginning of this year, but is still considered underpriced
by a margin of 10%.
The Xiamen-based firm owes its initial
success to the opening up of the online credit market in China, allowing
companies to set up digital platforms for small consumer credit products.
However, last year the sector came under stringent regulatory scrutiny,
resulting in curbs on such companies.