Frank Zheng's questions to Qudian (QD) leadership • Q3 2021
Question
Frank Zheng from Credit Suisse inquired about the WLM KIDS program, asking for details on the expansion pipeline for the upcoming year, the current payback period, and unit economics. He also requested a breakdown of the drivers behind the sequential increase in the cost of revenue.
Answer
Sissi Zhu, VP of Investor Relations, stated that over 10 WLM KIDS centers are in the pipeline for next year. However, performance has been slower than expected due to COVID-19 related shutdowns, making it difficult to project a payback period or stabilized unit economics. The immediate goal is to achieve breakeven. Zhu attributed the increase in cost of revenues primarily to the hiring of teachers and instructors for the WLM KIDS centers.