Business Context and Reporting Period
Company: High Templar Tech Ltd (formerly Qudian Inc.)
Filing Type: Form 20-F (Annual Report)
Reporting Period: Fiscal year ended December 31, 2025
Business Overview: The Company is a Cayman Islands holding company operating primarily through Variable Interest Entities (VIEs) and subsidiaries in China. Historically focused on consumer credit, the Company has pivoted to new ventures. As of the reporting period, the Company is winding down its "Fast Horse" last-mile delivery business in Australia and New Zealand. It has also initiated an aircraft leasing business, holding two aircraft as of March 31, 2026. The Company ceased new credit offerings in September 2022, with no outstanding loan balances from its historical loan book business since the end of 2022.
Key Financial Metrics (2025 vs. 2024)
| Metric | 2025 (RMB '000) | 2025 (US$ '000) | 2024 (RMB '000) | Change |
|---|---|---|---|---|
| Total Revenues | 40,964 | 5,858 | 216,428 | -81.1% |
| Net Income | 708,627 | 101,332 | 91,731 | +672.5% |
| Operating Loss | (398,402) | (56,970) | (308,148) | -29.3% (Wider) |
| Cash & Equivalents | 5,532,376 | 791,119 | 4,263,312 | +29.8% |
| Total Assets | 13,612,911 | 1,946,620 | 12,464,227 | +9.2% |
| Total Liabilities | 1,981,307 | 283,323 | 1,172,798 | +68.9% |
| Short-term Borrowings | 1,576,000 | 225,365 | 720,000 | +118.9% |
Note: US$ amounts are translated at the rate of RMB 6.9931 to US$1.00 as of December 31, 2025.
Material Changes and Drivers
- Revenue Decline: Total revenues dropped 81.1% to RMB 41.0 million, primarily due to the strategic decision to wind down the last-mile delivery business ("Fast Horse"). Delivery service income fell from RMB 203.7 million in 2024 to RMB 24.0 million in 2025.
- Net Income Surge: Despite the revenue collapse, Net Income increased to RMB 708.6 million (US$101.3 million) from RMB 91.7 million. This was driven by significant non-operating gains:
- Interest and Investment Income: Increased to RMB 990.4 million (US$141.6 million), up from RMB 380.1 million, largely due to higher returns on investments.
- Derivative Gains: Gain on derivative instruments rose to RMB 188.7 million (US$27.0 million) from RMB 19.5 million, attributed to increases in the quoted prices of underlying equity securities.
- Operating Expenses: General and Administrative (G&A) expenses increased 5.4% to RMB 291.5 million due to depreciation and property taxes following the completion of the Company's headquarters in Xiamen. Research and Development (R&D) expenses decreased 21.9% due to reduced headcount.
- Impairment Losses: Impairment loss from other assets increased significantly to RMB 54.3 million (US$7.8 million) from RMB 1.6 million, primarily related to the wind-down of operations.
Guidance, Outlook, and Risks
Outlook and Strategy:
- The Company is actively winding down its last-mile delivery operations in Australia and New Zealand.
- The aircraft leasing business is in the initial stage with two aircraft; one is leased to a third party, and the other is used for business travel. The Company plans to continue developing this sector.
- The Company intends to retain earnings to fund operations and expansion, with no plan to pay dividends in the foreseeable future.
Material Risks and Contingencies:
- VIE Structure: The Company operates through contractual arrangements with VIEs in China. If PRC authorities deem these arrangements non-compliant, the Company could lose control of its operating assets, potentially rendering ADSs worthless.
- Regulatory Environment: Significant risks exist regarding PRC regulations on foreign investment, data security (Cybersecurity Law, Data Security Law), and overseas listings. The Company faces potential restrictions on capital repatriation and dividend distributions.
- PCAOB Inspections: While the PCAOB currently has access to inspect the Company's auditor (Marcum Asia CPAs LLP), future inability to inspect could trigger delisting under the Holding Foreign Companies Accountable Act (HFCA Act).
- Passive Foreign Investment Company (PFIC): The Company believes there is a significant risk it was classified as a PFIC for 2025, which could result in adverse U.S. federal income tax consequences for U.S. investors.
- Concentration Risk: In 2025, three customers accounted for 53% of total revenue. One customer represented 98% of accounts receivable as of year-end (subsequently collected in January 2026).
Investor Verification Checklist
- Revenue Sustainability: Verify the timeline and financial impact of the complete wind-down of the "Fast Horse" delivery business and the scalability of the new aircraft leasing venture.
- Non-Operating Income Quality: Assess the sustainability of the massive net income driven by investment and derivative gains rather than core operations. Review the specific underlying assets of the derivative instruments.
- VIE Enforcement: Confirm the status of contractual arrangements with VIEs and any recent regulatory actions by PRC authorities regarding the VIE structure.
- Liquidity and Debt: Review the terms of the RMB 1.576 billion in short-term borrowings and the Company's ability to service this debt given the decline in operating cash flow from core business activities.
- PFIC Status: Consult tax advisors regarding the implications of the Company's potential PFIC status for U.S. investors.