Renomierte Revisionsgesellschaft, dies sieht doch gut aus (von Yahooboard)
https://ir.qudian.com/node/7671/htmlQD 2020 SEC Form 20-F annual report is now published. Ernst & Young auditor has an unqualified opinion that the "consolidated financial statements present fairly...the financial condition of the Company as of December 31, 2020..." So much for the fake accounting theory, shorts.
Also, there seems to be a lot of concern on this blog about the "short term investments" on the balance sheet and if they are really just bad loans under another name. The annual report has the following statement:
"Short-term investments
Short-term investments consist of wealth management products issued by banks or trust companies. These wealth management products are highly liquid investments with original maturities of less than twelve months. The Company measures its short-term investments at fair value. The realized investment income and changes in fair value are recognized in interest and investment income in the consolidated statements of comprehensive income."
First, Ernst & Young would not issue an unqualified opinion if the short-term investments were not actually "wealth management products issued by banks or trust companies" due within 12 months. Second, if you look at page F-14, you will see QD redeemed $1.81B US in short-term investments in 2020, and purchased $2.58B US in short-term investments. This seems to be basic cash management as they wound down a lot of their bad loans and put their returned capital to use generating a minimal short-term return, rather than holding cash at zero return.
Good to see an unqualified auditor opinion of fair books, and that the short-term investments seem legit. Not sure why there are any short sellers out there at this point given the strength of the balance sheet.
Shorties, you have been warned. Don't lose yours.