Guosheng Financial to sell Qudian stake, adjust accounting methods

Guosheng Financial Holding (002670) is set to dispose of its 12.67m shares in Qudian Inc., representing approximately 7.87% of Qudian's shares. This decision aims to enhance asset utilization, focus on core businesses, and mitigate market investment risks. The disposal will occur through transactions on the New York Stock Exchange over a 12-month period.

Concurrently, Guosheng Financial will change its accounting method for the Qudian investment from the equity method to fair value, recognizing it as a financial asset measured at fair value with changes impacting current profit or loss. This change, effective September 26, 2025, is driven by the planned divestment, the cessation of board representation in Qudian, and a business model focused on asset disposal. Based on Qudian’s closing price of $4.45 per share on September 25, the accounting change is expected to decrease total profit by yuan 108,030,556.70 and net profit by yuan 148,127,050.80.

The company is also updating its corporate governance, including the abolition of the supervisory board and the restructuring of the board of directors with 11 members (7 non-independent and 4 independent directors). Additionally, a new board of directors’ remuneration plan is proposed, which includes an annual pre-tax allowance of yuan 120,000 for independent directors.