Qudian Inc. Reports First Quarter 2023 Unaudited Financial Results

XIAMEN,China,June 12,2023 -- Qudian Inc. ("Qudian" or "the Company" or "We") (NYSE: QD),a consumer-oriented technology company in China,today announced its unaudited financial results for the quarter ended March 31,2023.

First Quarter 2023 Financial Highlights:

Total revenues were RMB21.9 million (US$3.2 million),compared to RMB201.8 million for the same period of last year

Net income attributable toQudian's shareholders was RMB414.3 million (US$60.3 million),compared to net loss of RMB142.8 million for the same period of last year; net income per diluted ADS was RMB1.81 (US$0.26) for the first quarter of 2023

Non-GAAP net income attributable toQudian's shareholders was RMB416.0 million (US$60.6 million),compared to net loss of RMB144.5 million for the same period of last year. We exclude share-based compensation expenses and convertible bonds buyback income from our non-GAAP measures. Non-GAAP net income per diluted ADS was RMB1.81 (US$0.26) for the first quarter of 2023

"The business conditions remain challenging in the first quarter of 2023. We continued to execute our business transition,with the winding down of ourQD Food business to its final stage while maintaining a healthy balance sheet by pursuing efficient cash management," said Mr. Min Luo,Founder,Chairman and Chief Executive Officer of Qudian. "Moving forward,we remain focused on navigating market dynamics and capitalizing on new business and investment opportunities,including those overseas,in order to build long-term value for our shareholders."

First Quarter Financial Results

Total revenues were RMB21.9 million (US$3.2 million),representing a decrease of 89.1% from RMB201.8 million for the first quarter of 2022.

Financing income, loan facilitation income and other related income and transaction services fee and other related income decreased to nil as a result of the winding down of the loan book business.

Sales income and others increased to RMB21.9 million (US$3.2 million),which was mostly attributable to sales income generated by QD Food and partially generated by other incomes from various new overseas business attempts,compared with RMB4.1 million for the first quarter of 2022,which was mainly attributable to sales income generated by the Wanlimu Kids Clubs business. We have wound down the QD Food business.

Total operating costs and expenses decreased to RMB83.9 million (US$12.2 million) from RMB285.5 million for the first quarter of 2022.

Cost of revenues decreased by 29.0% to RMB22.8 million (US$3.3 million) from RMB32.1 million for the first quarter of 2022,primarily due to the winding down of the Wanlimu Kids Clubs business and loan book business,partially offset by inventory clearance relating to QD Food business.

Sales and marketing expensesdecreased by 88.6% to RMB2.6 million (US$0.4 million) from RMB23.1 million for the first quarter of 2022,primarily due to the winding down of the Wanlimu Kids Clubs business and QD Food business.

General and administrative expenses decreased by 56.8% to RMB51.2 million (US$7.5 million) from RMB118.4 million for the first quarter of 2022,as a result of the decrease in staff head count,which led to a corresponding decrease in staff salaries.

Research and development expenses decreased by 46.5% to RMB10.5 million (US$1.5 million) from RMB19.6 million for the first quarter of 2022,which led to a corresponding decrease in staff salaries and a decrease in third-party service fees.

Expected credit loss for receivables and other assets was a reversal of RMB5.9 million (US$0.9 million) as compared to a loss of RMB11.9 million for the first quarter of 2022,primarily due to the winding down of the loan book business.

Impairment loss from other assetsdecreased by 97.7% to RMB2.7 million (US$0.4 million) from RMB113.5 million,as a result of the winding down of the Wanlimu Kids Clubs business.

Loss from operations was RMB28.9 million (US$4.2 million),compared to RMB66.4 million for the first quarter of 2022.

Interest and investment income,net was RMB241.3 million (US$35.1 million),compared to a loss of RMB42.3 million for the first quarter of 2022,mainly due to the increase in quoted price of the short-term investments.

Gain on derivative instrument increased by 375.2% to RMB286.9 million (US$41.8 million) from RMB60.4 million for the first quarter of 2022,primarily due to the increase in quoted price of the equity securities relating to the derivative instruments we hold.

Net income attributable to Qudian's shareholderswas RMB414.3 million (US$60.3 million). Net income per diluted ADS was RMB1.81 (US$0.26).

Non-GAAP net income attributable to Qudian's shareholders was RMB416.0 million (US$60.6 million). Non-GAAP net income per diluted ADS was RMB1.81 (US$0.26).

Cash Flow

As of March 31,2023,the Company had cash and cash equivalents of RMB5,001.3 million (US$728.2 million) and restricted cash of RMB56.5 million (US$8.2 million).

For the first quarter of 2023,net cash provided by operating activities was RMB328.6 million (US$47.8 million),mainly due to the decrease in other current and non-current assets primarily as a result of the winding down of the loan book business. Net cash provided by investing activities was RMB1,212.8 million (US$176.6 million),mainly due to the net proceeds from the redemption of short-term investments. Net cash used in financing activities was RMB57.2 million (US$8.3 million),mainly due to the repurchase of ordinary shares.

Update on Share Repurchase

As previously disclosed,the Company established a share repurchase program in June 2022,under which the Company may purchase up to US$200 million worth of its Class A ordinary shares and/or ADSs over a 24-month period. From the launch of the share repurchase program on June 13,2022 to the date of this release,the Company has in aggregate purchased 24.2 million ADSs in the open market for a total amount of approximately US$24.4 million (an average price of $1.0 per ADS) pursuant to the share repurchase program.

About Qudian Inc.

Qudian Inc. ("Qudian") is a consumer-oriented technology company in China. The Company historically focused on providing credit solutions to consumers. Qudian is exploring innovative consumer products and services to satisfy Chinese consumers' fundamental and daily needs by leveraging its technology capabilities.

For more information,please visithttp://ir.qudian.com.

Use of Non-GAAP Financial Measures

We use Non-GAAP net income/loss attributable to Qudian's shareholders,a Non-GAAP financial measure,in evaluating our operating results and for financial and operational decision-making purposes. We believe that Non-GAAP net income/loss attributable to Qudian's shareholders helps identify underlying trends in our business by excluding the impact of share-based compensation expenses,which are non-cash charges,and convertible bonds buyback income,which is non-cash and non-recurring. We believe that Non-GAAP net income/loss attributable to Qudian's shareholders provides useful information about our operating results,enhances the overall understanding of our past performance and future prospects and allows for greater visibility with respect to key metrics used by our management in its financial and operational decision-making.

Non-GAAP net income/loss attributable to Qudian's shareholders is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. This Non-GAAP financial measure has limitations as an analytical tool,and when assessing our operating performance,cash flows or our liquidity,investors should not consider them in isolation,or as a substitute for net loss /income,cash flows provided by operating activities or other consolidated statements of operation and cash flow data prepared in accordance with U.S. GAAP.

We mitigate these limitations by reconciling the Non-GAAP financial measure to the most comparable U.S. GAAP performance measure,all of which should be considered when evaluating our performance.

For more information on this Non-GAAP financial measure,please see the table captioned "Unaudited Reconciliation of GAAP and Non-GAAP Results" set forth at the end of this press release.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars ("US$") at specified rates solely for the convenience of the reader. Unless otherwise stated,all translations from RMB to US$ were made at the rate of RMB6.8676 to US$1.00,the noon buying rate in effect on March 31,in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB,as the case may be,at any particular rate or at all.

Statement Regarding Preliminary Unaudited Financial Information

The unaudited financial information set out in this earnings release is preliminary and subject to potential adjustments. Adjustments to the consolidated financial statements may be identified when audit work has been performed for the Company's year-end audit,which could result in significant differences from this preliminary unaudited financial information.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things,the expectation of its collection efficiency and delinquency,contain forward-looking statements. Qudian may also make written or oral forward-looking statements in its periodic reports to the SEC,in its annual report to shareholders,in press releases and other written materials and in oral statements made by its officers,directors or employees to third parties. Statements that are not historical facts,including statements about Qudian's beliefs and expectations,are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement,including but not limited to the following: Qudian's goal and strategies; Qudian's expansion plans; Qudian's future business development,financial condition and results of operations; Qudian's expectations regarding demand for,and market acceptance of,its products; Qudian's expectations regarding keeping and strengthening its relationships with customers,business partners and other parties it collaborates with; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Qudian's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release,and Qudian does not undertake any obligation to update any forward-looking statement,except as required under applicable law.

For investor and media inquiries,please contact:

In China:

Qudian Inc.

Tel: +86-592-596-8208

E-mail: ir@qudian.com

QUDIAN INC.

Unaudited Condensed Consolidated Statements of Operations

Three months ended March 31,

(In thousands except for number

2022

2023

of shares and per-share data)

(Unaudited)

(Unaudited)

(Unaudited)

RMB

RMB

US$

Revenues:

Financing income

177,901

-

-

Sales commission fee

21

-

-

Sales income and others

4,141

21,859

3,183

Penalty fee

17,311

-

-

Loan facilitation income and other related income

472

-

-

Transaction services fee and other related income

1,973

-

-

Total revenues

201,819

21,859

3,183

Operating cost and expenses:

Cost of revenues

(32,130)

(22,806)

(3,321)

Sales and marketing

(23,083)

(2,629)

(383)

General and administrative

(118,429)

(51,201)

(7,455)

Research and development

(19,576)

(10,466)

(1,524)

Changes in guarantee liabilities and risk assurance liabilities(1)

33,119

-

-

Expected credit loss for receivables and other assets

(11,891)

5,900

859

Impairment loss from other assets

(113,528)

(2,661)

(387)

Total operating cost and expenses

(285,518)

(83,863)

(12,211)

Other operating income

17,266

33,144

4,826

Loss from operations

(66,433)

(28,860)

(4,202)

Interest and investment (loss)/income,net

(42,274)

241,287

35,134

Gain from equity method investments

1,443

1,314

191

Gain on derivative instruments

60,367

286,850

41,769

Foreign exchange gain/(loss),net

85

(1,774)

(258)

Other income

79

1,605

234

Other expenses

(2,039)

(571)

(83)

Net (loss)/income before income taxes

(48,772)

499,851

72,785

Income tax expenses

(94,115)

(85,553)

(12,457)

Net (loss)/Income

(142,887)

414,298

60,328

Less: net loss attributable to non-controlling

interest shareholders

(88)

-

-

Net (loss)/income attributable to Qudian

Inc.'s shareholders

(142,799)

414,328

Loss/(Earning) per share for Class A and

Class Bordinary shares:

Basic

(0.56)

1.82

0.27

Diluted

(0.56)

1.81

0.26

Loss/(Earning) per ADS (1 Class A ordinary

share equals 1 ADSs):

Basic

(0.56)

1.82

0.27

Diluted

(0.56)

1.81

0.26

Weighted average number of Class A and

Class B ordinary shares outstanding:

Basic

253,735,434

227,199,812

227,812

Diluted

259,137,777

229,412,998

229,998

Other comprehensive loss:

Foreign currency translation adjustment

(1,050)

(4,090)

(596)

Total comprehensive (loss)/income

(143,849)

410,208

59,732

Less: total comprehensive loss attributable to

non-controlling interest shareholders

(88)

-

-

Total comprehensive (loss)/income

attributable to Qudian Inc.'s

shareholders

(143,761)

410,732

Note：

(1):The amount includes the change in fair value of the guarantee liabilities accounted in accordance with ASC 815,"Derivative",

and the change in risk assurance liabilities accounted in accordance with ASC 450,"Contingencies" and ASC 460,"Guarantees".

QUDIAN INC.

Unaudited Condensed Consolidated Balance Sheets

As of December 31,

As of March 31,

(In thousands except for number

2022

2023

of shares and per-share data)

(Audited)

(Unaudited)

(Unaudited)

RMB

RMB

US$

ASSETS:

Current assets:

Cash and cash equivalents

3,486,376

5,001,285

728,243

Restricted cash

86,372

56,503

8,227

Short-term investments

5,378,305

4,812,491

700,753

Short-term finance lease

receivables

1,381

960

140

Other current assets

2,106,092

1,422,320

207,106

Total current assets

11,058,526

11,293,559

1,644,469

Non-current assets:

Right-of-use assets

103,142

105,749

15,398

Investment in equity method

investee

133,058

134,293

19,555

Long-term investments

217,046

211,212

30,755

Property and equipment,net

773,886

833,722

121,399

Intangible assets

9,701

4,353

634

Other non-current assets

451,076

451,134

65,690

Total non-current assets

1,687,909

1,740,463

253,431

TOTAL ASSETS

12,746,435

13,034,022

1,897,900

QUDIAN INC.

Unaudited Condensed Consolidated Balance Sheets (Continued)

As of December 31,

(In thousands except for number

2022

2023

of shares and per-share data)

(Audited)

(Unaudited)

(Unaudited)

RMB

RMB

US$

LIABILITIES AND

SHAREHOLDERS' EQUITY

Current liabilities:

Short-term borrowings and

interest payables

29,062

145,312

21,159

Short-term lease liabilities

6,311

8,083

1,177

Derivative instruments-liability

163,129

108,729

15,832

Accrued expenses and other

current liabilities

295,675

213,928

31,150

Income tax payable

90,753

158,498

23,079

Total current liabilities

584,930

634,550

92,397

Non-current liabilities:

Deferred tax liabilities,net

2,118

19

3

Long-term lease liabilities

426

2,038

297

Long-term borrowings and

interest payables

116,249

-

-

Total non-current liabilities

118,793

2,057

300

Total liabilities

703,723

636,607

92,697

Shareholders' equity:

Class A Ordinary shares

132

132

19

Class B Ordinary shares

44

44

6

Treasury shares

(486,955)

(542,715)

(79,025)

Additional paid-in capital

4,036,197

4,452

587,753

Accumulated other

comprehensive loss

(45,960)

(50,050)

(7,288)

Retained earnings

8,539,254

8,953,552

1,303,738

Total shareholders' equity

12,042,712

12,397,415

1,805,203

TOTAL LIABILITIES AND

SHAREHOLDERS' EQUITY

12,900

QUDIAN INC.

Unaudited Reconciliation of GAAP And Non-GAAP Results

Three months ended December 31,

2022

2023

(In thousands except for number

(Unaudited)

(Unaudited)

(Unaudited)

of shares and per-share data)

RMB

RMB

US$

Total net (loss)/income attributable to Qudian

Inc.'s shareholders

(142,328

Add: Share-based compensation expenses

7,723

1,668

243

Less: Convertible bonds buyback income

9,460

-

-

Non-GAAP net (loss)/income attributable to

Qudian Inc.'s shareholders

(144,536)

415,966

60,571

Non-GAAP net (loss)/earning per share—basic

(0.57)

1.83

0.27

Non-GAAP net (loss)/earning per share

diluted

(0.57)

1.81

0.26

Weighted average shares outstanding—basic

253,812

Weighted average shares outstanding—diluted

259,998