BRIEF: Qudian revenue plunges as it exits last-mile delivery business
Qudian Inc. (QD.US) on Wednesday said its revenue tumbled more than 90% to 3.5 million yuan ($487,000) in the second quarter from 53.3 million yuan a year earlier, as the company announced it was winding down its two-year-old last-mile delivery business.
The company’s profit for the period more than tripled to 312 million yuan from 100 million yuan a year earlier, thanks to a big jump in interest and investment income earned on its 4.8 billion yuan in cash holdings. The company earned 441 million yuan in interest and investment income during the second quarter, five times more than the 89.5 million yuan a year earlier.
“After careful evaluation, the company has decided to wind down its last-mile delivery business,” Qudian said, citing increased competition. Qudian started out as a successful online lender, but later dropped that business after a regulatory crackdown. It later experimented with forays in the education and prepared foods sectors, but ultimately abandoned those efforts.
Qudian shares rose 5.4% on Wednesday after the report came out. The stock is up more than 50% year-to-date.
By Doug Young
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