High Templar Tech Limited · NYSE:HTT
High Templar Tech — Qudian — Q1 2020 Earnings Presentation
22 slides from High Templar Tech's earnings presentation, May 27, 2020
Slide 1: Management Presentation
Management Presentation May 2020 1
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such a
Slide 3: Focused on Serving the Massive Underbanked
Focused on Serving the Massive Underbanked Large credit transactions Mainly served by PBOC credit record Banks Traditional mortgage, auto loans, size RMB50k+ Leading technology conglomerates ~150mn APR 3.5-18% people Mid credit transactions Mainly served by Key contributors of banks’ cre
Slide 4: Risk-adjusted User Engagement Strategy
Risk-adjusted User Engagement Strategy User base (mn) User base (mn) Aug 2017: Aug 2018: 2018 Industry credit down cycle: Open-platform Risk-adjusted user activates dormant engagement strategy Payment ecosystem Payment ecosystem Conservative risk-taking on new user base icon access initiated icon ac
Slide 5: 1. Overview of Credit Business
1. Overview of Credit Business 5
Slide 6: 1Q20 Segment Highlights
1Q20 Segment Highlights Small Credit Facilitation Open Platform RMB4.4bn total amount of transactions RMB2.6bn total amount of transactions QoQ decreased by 53% QoQ decreased by 68% During 1Q20 During 1Q20 RMB15.3bn outstanding loans (1) RMB13.2bn outstanding loans QoQ decreased by 32% QoQ decreased
Slide 7: Loan Book at Stable and Healthy Leverage
Loan Book at Stable and Healthy Leverage Listed Company A Listed Company B Loan balance RMB Loan 72.2bn balance RMB Loan 60.6bn balance RMB 15.3bn(1) Net asset Net asset Net asset RMB RMB RMB 10.5bn 7.2bn 6.6bn As of 1Q2020 As of 4Q2019 As of 4Q2019 Leverage Ratio(2) 1.5x 10.0x 9.2x Notes: (1) Inclu
Slide 8: 2. Disclosure of Risk Metrics
2. Disclosure of Risk Metrics 8
Slide 9: Optimized Risk Model to Quickly React to Credit Cycle and De-risk Our Loan Book
Optimized Risk Model to Quickly React to Credit Cycle and De-risk Our Loan Book New regulation issued caused an Regulatory tightening and COVID- industry wide credit crunch and 19 caused a challenging downcycle operating environment 120 Daily Outstanding Loan Balance (RMB bn)(1) 20% 90 15% D1 delinq
Slide 10: Credit Performance Managed within Targets
Credit Performance Managed within Targets Only Include Current Receivables at Risk Include Total Potential Receivables at Risk M1+ Delinquency Rate by Vintage(1) M1+ Delinquency Rate by Vintage(2) 7.0% 9.0% Vintage delinquency rates <5.4% Vintage delinquency rates <7.4% 6.0% 7.5% 5.0% 6.0% 4.0% 4.5%
Slide 11: Delinquency Rate Measurement Comparison
Delinquency Rate Measurement Comparison For illustration purpose, assuming a loan with RMB1,000 principal and 10 months draw down RMB Current Receivables at Risk Total Potential Receivables at Risk 100 800 VS 1,000 1,000 100 100 100 100 Month since … 10 credit draw 1 2 3 4 5 6 7 8 9 down Assuming de
Slide 12: 3. Overview of Wanlimu
Enis Qudian 3. Overview of Wanlimu
Slide 13: Wanlimu Business Model
Wanlimu Business Model Chinese Luxury E-commerce Platform Just-in-time Order Place orders with suppliers when we receive orders from customers Pre-order Place bulk orders for fast selling high-end skin care products Suppliers Wanlimu Wanlimu APP & Massive warehouse mini program Chinese Market Over 8
Slide 14: 4. Financials
Enis Qudian 4. Financials
Slide 15: Financial Highlights
Financial Highlights Total Revenue Non-GAAP Net (Loss)/Income(1) (RMB mn) (RMB mn, except for EPS numbers) 8,840 Transaction services fee and other related RMB RMB RMB RMB RMB income Diluted EPS 7.92 11.23 3.27 0.59 -3.57 7,692 Loan facilitation income and other related 2,199 income Sales income 1,6
Slide 16: Financial Highlights (Cont'd)
Financial Highlights (Cont’d) Lower-risk Capital Structure M1+ Delinquency Coverage Ratio(1)(2) (RMB bn) Open Platform Loan Balance (RMB mn) Off BS Loan Balance(Loan Facilitation) 1.2x 1.3x 1.2x 1.5x 1.7x On BS Loan Balance (Lending via Entrusted loans and trust structures) Cash and cash equivalents
Slide 17: Financial Highlights (Cont'd)
Financial Highlights (Cont’d) Cost of Revenues Operating Expenses (RMB mn) (RMB mn) As % of As % of 30% 47% 35% 83% 206% 36% 10% 12% 8% 10% Revenue Revenue 2,735 4,198 Changes in guarantee liabilities and risk assurance liabilities Provisions 1,143 R&D General and administrative Sales and marketing
Slide 18: Appendix
Appendix 18
Slide 19: Unaudited Income Statements
Unaudited Income Statements For the Year Ended For the Three Months Ended 31-Dec-18 31-Dec-19 31-March-19 31-Dec-19 31-March-20 (in millions, except for EPS numbers) RMB RMB RMB RMB RMB Financing income 3,535 3,510 1,011 717 623 Loan facilitation income and other related income 1,647 2,297 644 460 4
Slide 20: Unaudited Balance Sheets
Unaudited Balance Sheets As of 31-Dec-17 31-Dec-18 31-Dec-19 31-March-20 (in millions) RMB RMB RMB RMB Cash and cash equivalents 6,832 2,501 2,861 1,516 Restricted cash(1) 2,253 340 1,258 540 Time deposits - - 231 235 Short-term investments 300 - - 1,233 Short-term loan principal and financing servi
Slide 21: Revenue Recognition Policy
Revenue Recognition Policy Items Definition Revenue Recognition Policy 1 Transaction Services Fee Transaction services income and traffic referral service income from Recognized when Funding Partner provides the funds to the borrower and Other Related Income open platform 2 Loan Facilitation Income
Slide 22: Shareholding Structure
Shareholding Structure Min Luo 100% Ark Trust and Qufenqi Holding Guosheng (Hong ESOP Public Limited Kong) (Mgmt. and Shareholders employees) 25%(1) 7%(2) 2% 68% Qudian Inc. (Cayman) (Listed in NYSE)(3) Notes: (1) Including 4,125,698 Class B ordinary shares subject to the Guosheng proxy, providing G