Qudian (QD) reported earnings on August 16, when they beat consensus estimates, but the stock has fallen roughly 20% since. The positives include 2Q non-GAAP net income growing 57% yoy to RMB1.16bn, referral service fee increasing 150% qoq to RMB398mn, contributing to 27% of net revenue and outstanding loan balance surging 91% yoy to RMB28.7bn.
But, the credit trial program which aimed to attract new borrowers also brought worse NPL ratios which could deteriorate quicker as they are shorter term loans.
Along with the expected yet gradual depreciation of the RMB, translation back