Qudian Inc. Emphasizes Its Collection Efforts and Pricing Policy

BEIJING, Oct. 24, 2017 /PRNewswire/ -- Qudian Inc. ("Qudian" or the "Company") (NYSE: QD), a leading provider of online small cash credit products in China, today reiterated the following information in light of recent commentary in the market: 

The Company's collection efforts extend to every delinquent borrower. The Company's collection process is divided into distinct stages based on the severity of delinquency, which dictates the level of collection steps taken. For example, automatic reminders through text and instant messages are sent to a delinquent borrower as soon as the collections process commences, and the Company takes such measures to address delinquencies typically caused by borrowers' oversight. If the payment is still outstanding after these reminders, the Company's collection system will initiate automated voice calls. In the event such efforts remain unsuccessful, the Company's collection team will make phone calls to the delinquent borrowers. For larger amounts past due, the Company may also conduct in-person visits. The Company may stop collection efforts when credit drawdowns are 180 calendar days overdue and collection attempts have reached a certain number.

The following table sets forth the amount of delinquent principal and financing service fees for on-balance sheet transactions the Company successfully recovered through its collection efforts during the periods presented, as a percentage of the balance of outstanding principal and financing service fees past due for on-balance sheet transactions as of the end of the periods presented:



Period from
April 9, 2014
(inception)
through
December 31,


Year Ended December 31,


Six Months
Ended
June 30,



2014


2015


2016


2017

Percentage of delinquent principal and
     services fees for on-balance sheet
     transactions recovered


5.7%


20.1%


35.1%


52.1%

As part of the major upgrade of the Company's risk management system in January 2017, the Company has developed a machine learning algorithm to better allocate collection resources based on more detailed grouping of larger delinquency risk. Higher risk groups are allocated with more collection resources as the likelihood of their outstanding balance becoming longer-term delinquent or even uncollectable is generally higher. The Company expects to both improve its collection efficiency and reduce delinquency under this algorithm.

In addition, as stated in the Offering Documents (as defined below), in an effort to comply with potential applicable laws and regulations, the Company adjusted the pricing of all its credit products in April 2017 to ensure that the annualized fee rates charged in all credit drawdowns do not exceed 36%. Please refer to the Offering Documents for detailed discussions of the Company's pricing policy.

The information set forth above and related information about the Company's collection policy and efforts, is set forth in the Company's Registration Statement on Form F-1/A and Prospectus (the "Offering Documents"), which were filed with the United States Securities and Exchange Commission (the "SEC") on October 13, 2017. The Offering Documents can be obtained free of charge at the SEC's website at www.sec.gov as well on the Company's investor relations website at http://ir.qudian.com/. You are encouraged to read the Offering Documents in full before you make investment decisions on the Company.

The Offering Documents also provide detailed business, financial and operating information about the Company, and discloses its operating and regulatory risks, and other pertinent matters.  Investors are encouraged to read the Offering Documents for further information about these matters as well.

About Qudian

Qudian is a leading provider of online small consumer credit in China. The Company uses big data-enabled technologies, such as artificial intelligence and machine learning, to transform the consumer finance experience in China. With the mission to use technology to make personalized credit accessible, Qudian targets hundreds of millions of young, mobile-active consumers in China who need access to small credit for their discretionary spending, but are underserved by traditional financial institutions due to lack of traditional credit data and operational inefficiencies of traditional financial institutions. Qudian's data technology capabilities combined with its operating efficiencies allow the Company to understand prospective borrowers from different behavioral and transactional perspectives, assess their credit profiles with regard to both their willingness and ability to repay and offer them instantaneous and affordable credit products with customized terms, and distinguish Qudian's business and offerings.

For more information, please visit http://ir.qudian.com

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 credit products; Qudian's expectations regarding keeping and strengthening its relationships with borrowers, institutional funding partners, merchandise suppliers and other parties it collaborate 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.
Sissi Zhu
Tel: +86 (10) 5948-5220
E-mail: ir@qudian.com

The Piacente Group, Inc.
Ross Warner
Tel: +86 (10) 5730-6200
E-mail: qudian@tpg-ir.com

In the United States:

The Piacente Group, Inc. 
Alan Wang
Tel: +1-212-481-2050
E-mail: qudian@tpg-ir.com

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