SHANGHAI, Aug. 5, 2019 /PRNewswire/ -- Jupai
Holdings Limited ("Jupai" or the "Company") (NYSE: JP), a leading
third-party wealth management service provider, focusing on
distributing wealth management products and providing quality
product advisory services to high-net-worth individuals in
China, today announced its
unaudited financial results for the second quarter and six months
ended June 30, 2019.
SECOND QUARTER AND FIRST HALF 2019 FINANCIAL
HIGHLIGHTS
- Net revenues in the second quarter of 2019 were
RMB185.9 million (US$[1] 27.1 million), a decrease of 58.1%
from the corresponding period in 2018. For the first half of 2019,
net revenues were RMB466.9 million
(US$68.0 million), a decrease of
46.7% from the same period in 2018.
(RMB '000, except
percentages)
|
Q2
2018
|
|
Q2 2018
%
|
|
Q2
2019
|
|
Q2 2019
%
|
|
YoY Change
%
|
One-time
commissions
|
282,243
|
|
63.6%
|
|
86,510
|
|
46.5%
|
|
-69.3%
|
Recurring management
fees
|
121,696
|
|
27.4%
|
|
67,756
|
|
36.5%
|
|
-44.3%
|
Recurring service
fees
|
11,431
|
|
2.6%
|
|
31,603
|
|
17.0%
|
|
176.5%
|
Other service
fees
|
28,196
|
|
6.4%
|
|
-
|
|
-
|
|
-100.0%
|
Total net
revenues
|
443,566
|
|
100.0%
|
|
185,869
|
|
100.0%
|
|
-58.1%
|
(RMB '000, except
percentages)
|
H1
2018
|
|
H1 2018
%
|
|
H1
2019
|
|
H1 2019
%
|
|
YoY Change
%
|
One-time
commissions
|
558,677
|
|
63.7%
|
|
145,141
|
|
31.0%
|
|
-74.0%
|
Recurring management
fees
|
244,604
|
|
27.9%
|
|
259,978
|
|
55.7%
|
|
6.3%
|
Recurring service
fees
|
26,489
|
|
3.0%
|
|
47,893
|
|
10.3%
|
|
80.8%
|
Other service
fees
|
47,012
|
|
5.4%
|
|
13,904
|
|
3.0%
|
|
-70.4%
|
Total net
revenues
|
876,782
|
|
100.0%
|
|
466,916
|
|
100.0%
|
|
-46.7%
|
- Loss from operations in the second quarter of 2019
was RMB55.2 million (US$8.0 million), compared to income from
operations of RMB160.3 million from
the corresponding period in 2018. For the first half of 2019, loss
from operations was RMB67.0 million
(US$9.8 million), compared to income
from operations of RMB312.8 million
from the same period in 2018.
- Net loss attributable to ordinary shareholders in the
second quarter of 2019 was RMB61.0
million (US$8.9 million),
compared to net income attributable to ordinary shareholders of
RMB87.8 million from the
corresponding period in 2018. For the first half of 2019, net loss
attributable to ordinary shareholders was RMB86.6 million (US$12.6
million), compared to net income attributable to ordinary
shareholders of RMB203.7 million from
the same period in 2018.
- Non-GAAP[2] net loss attributable to
ordinary shareholders in the second quarter of 2019 was
RMB58.6 million (US$8.5 million), compared to non-GAAP net income
attributable to ordinary shareholders of RMB115.5 million from the corresponding period in
2018. For the first half of 2019, non-GAAP net loss attributable to
ordinary shareholders was RMB81.3
million (US$11.8 million),
compared to non-GAAP net income attributable to ordinary
shareholders of RMB241.6 million from
the same period in 2018.
SECOND QUARTER AND FIRST HALF 2019 OPERATIONAL
UPDATES
- Total number of active clients[3] during the second quarter of
2019 was 1,039.
- The aggregate value of wealth management
products distributed by the Company
during the second quarter of 2019 was RMB2.5
billion (US$0.4 billion), a
74.4% decrease from the corresponding period in 2018. For the first
half of 2019, the aggregate value of wealth management products
distributed by the Company was RMB5.3
billion (US$0.8 billion), a
74.4% decrease from the corresponding period in 2018.
Wealth management
products distributed by the Company - breakdown by product
type
|
|
Three months
ended
|
Six months
ended
|
|
June 30,
2018
|
|
June 30,
2019
|
June 30,
2018
|
|
June 30,
2019
|
Product
type
|
(RMB in millions,
except percentages)
|
(RMB in millions,
except percentages)
|
Fixed income
products
|
1,286
|
13%
|
|
1825
|
73%
|
5,219
|
25%
|
|
3,733
|
71%
|
Private equity
products
|
7,949
|
82%
|
|
376
|
15%
|
13,991
|
68%
|
|
961
|
18%
|
Secondary market
equity fund products
|
268
|
3%
|
|
70
|
3%
|
960
|
5%
|
|
122
|
2%
|
Other
products
|
225
|
2%
|
|
222
|
9%
|
456
|
2%
|
|
460
|
9%
|
All
products
|
9,728
|
100%
|
|
2,493
|
100%
|
20,626
|
100%
|
|
5,276
|
100%
|
- Jupai's coverage network as of June 30, 2019 included 61 client centers covering
45 cities, as compared to 76 client centers covering 48 cities as
of June 30, 2018.
- Total assets under management[4] as of June 30, 2019 were RMB47.0
billion (US$6.8 billion), a
17.1% decrease from June 30,
2018.
Assets under
management – breakdown by product type
|
|
As
of
|
|
June 30,
2018
|
|
June 30,
2019
|
Product
type
|
(RMB in millions,
except percentages)
|
Fixed income
products
|
22,766
|
40%
|
|
16,482
|
35%
|
Private equity
products
|
30,792
|
54%
|
|
28,331
|
60%
|
Secondary market
equity fund products
|
2,236
|
4%
|
|
945
|
2%
|
Other
products
|
860
|
2%
|
|
1,214
|
3%
|
All
products
|
56,654
|
100%
|
|
46,972
|
100%
|
"Although the second quarter of 2019 remained challenging for
Jupai, we saw initial signs of stabilization in our core business,"
said Mr. Jianda Ni, Jupai's chairman
of the board and chief executive officer. "Despite sustained
weakness in investor confidence, our cost control efforts began to
pay off, adding to our bottom line performance in the second
quarter. If the performance fee income from the disposal of Focus
Media shares was excluded from our first quarter results, our net
loss attributable to ordinary shareholders in the second quarter
would represent a substantial recovery from the first quarter."
"Jupai will continue to execute our three strategies to optimize
our business and enhance profitability. Firstly, we will continue
to develop our real estate equity products, as we believe that real
estate remains an asset class with relatively low investment risk,
especially compared with asset categories such as consumer credit
and supply chain management products. Secondly, we will enhance our
risk control system to further build investor confidence. Thirdly,
we target to achieve incremental growth in our overseas business.
We believe that these strategies will help Jupai capture market
opportunities as investor sentiment and the wealth management
industry recover."
Ms. Min Liu, Jupai's chief
financial officer, said, "The various cost control measures that
Jupai began implementing several quarters ago have begun to bear
fruit. We are encouraged to see overall operating expenses,
especially our cost of revenues, decline on a year-over-year basis
for the first time this quarter. We expect to realize additional
cost reductions in the coming quarters as we further downsize our
workforce, amend our incentive schemes, optimize our coverage
network and streamline our business operating procedures."
SECOND QUARTER AND FIRST HALF 2019 FINANCIAL
RESULTS
Net Revenues
Net revenues for the second quarter of 2019 were
RMB185.9 million (US$27.1 million), a 58.1% decrease from the
corresponding period in 2018, primarily due to decreases in both
one-time commissions and recurring management fees. Net revenues
were RMB466.9 million (US$68.0 million) for the first half of 2019, a
decrease of 46.7% from the same period in 2018.
- Net revenues from one-time commissions for the second
quarter of 2019 were RMB86.5 million
(US$12.6 million), a 69.3% decrease
from the corresponding period in 2018, primarily as a result of a
decrease in the aggregate value of wealth management products
distributed by the Company. For the first half of 2019, net
revenues from one-time commissions were RMB145.1 million (US$21.1
million), a decrease of 74.0% from the same period in
2018.
- Net revenues from recurring management fees for the
second quarter of 2019 were RMB67.8
million (US$9.9 million), a
44.3% decrease from the corresponding period in 2018, primarily due
to the decrease in the value of assets under management.
RMB11.1 million (US$1.6 million) and RMB23.3 million carried interest were recognized
as part of Jupai's recurring management fees in the second quarter
of 2019 and 2018, respectively. For the first half of 2019, net
revenues from recurring management fees were RMB260.0 million (US$37.9
million), a 6.3% increase from the same period in 2018.
RMB138.5 million (US$20.2 million) and RMB44.0 million carried interest was recognized
as part of Jupai's recurring management fees for the first half of
2019 and the same period in 2018, respectively.
- Net revenues from recurring service fees for the second
quarter of 2019 were RMB31.6 million
(US$4.6 million), a 176.5% increase
from the corresponding period in 2018, primarily because the
Company provided ongoing services to more product suppliers. The
Company recognized nil and RMB0.3
million variable performance fees in the second quarter of
2019 and 2018, respectively. For the first half of 2019, net
revenues from recurring service fees were RMB47.9 million (US$7.0
million), an 80.8% increase from the same period in 2018.
The Company recognized nil and RMB0.3
million variable performance fees for the first half of 2019
and the same period in 2018, respectively.
- Net revenues from other service fees for the second
quarter of 2019 were nil, a 100.0% decrease from the corresponding
period in 2018, primarily due to no sub-advisory service provided
to other companies. For the first half of 2019, net revenues from
other service fees were RMB13.9
million (US$2.0 million), a
decrease of 70.4% from the same period in 2018.
Operating Costs and Expenses
Operating costs and expenses for the second quarter
of 2019 were RMB241.0 million
(US$35.1 million), a 14.9% decrease
from the corresponding period in 2018. For the first half of 2019,
operating costs and expenses were RMB533.9
million (US$77.8 million), a
decrease of 5.3% from the same period in 2018.
- Cost of revenues for the second quarter of 2019 was
RMB108.5 million (US$15.8 million), a 37.6% decrease from the
corresponding period in 2018, primarily due to decreased
compensation to wealth management advisors and client managers, as
a result of the decrease in the aggregate value of wealth
management products distributed by the Company and cost control
measures the Company undertook. For the first half of 2019, cost of
revenues was RMB284.4 million
(US$41.4 million), a decrease of 6.6%
from the same period in 2018.
- Selling expenses for the second quarter of 2019
were RMB49.2 million (US$7.2 million), a 31.4% decrease from the
corresponding period in 2018, primarily due to the decrease in
marketing and promotion expenses as a result of cost control. For
the first half of 2019, selling expenses were RMB103.5 million (US$15.1
million), a decrease of 34.2% from the same period in
2018.
- General and administrative expenses for the second
quarter of 2019 were RMB88.9
million (US$13.0 million), a
69.3% increase from the corresponding period in 2018, mainly due to
provision for doubtful accounts of RMB31.7
million (US$4.6 million), and
service fee for client relationship maintenance which may recur in the following
periods. For the first half of 2019, general and
administrative expenses were RMB151.7
million (US$22.1 million), an
increase of 29.0% from the same period in 2018.
- Other operating income (government subsidies) received
by the Company in the second quarter of 2019 was RMB5.6 million (US$0.8
million), a 62.3% decrease from the corresponding period in
2018. For the first half of 2019, other operating income was
RMB5.6 million (US$0.8 million), a decrease of 62.6% from the
same period in 2018. Government subsidies were recorded when
received, with their availability and amount dependent upon
government policies.
Operating margin for the second quarter of 2019 was
-29.7%, compared to 36.1% for the corresponding period in 2018. For
the first half of 2019, operating margin was -14.3%, compared to
35.7% for the same period in 2018.
Income tax expenses for the second quarter of 2019 were
RMB7.6 million (US$1.1 million), an 84.5% decrease from the
corresponding period in 2018. For the first half of 2019, income
tax expenses were RMB22.8 million
(US$3.3 million), a decrease of 74.2%
from the same period in 2018, primarily due to a decrease in
taxable income.
Net Income
- Net loss attributable to
ordinary shareholders for the second quarter of 2019 was
RMB61.0 million (US$8.9 million), compared to net income
attributable to ordinary shareholders of RMB87.8 million from the corresponding period in
2018. For the first half of 2019, net loss attributable to ordinary
shareholders was RMB86.6 million
(US$12.6 million), compared to net
income attributable to ordinary shareholders of RMB203.7 million from the same period in
2018.
- Net margin attributable
to ordinary shareholders for the second quarter of 2019 was
-32.8%, compared to 19.8% for the corresponding period in 2018. For
the first half of 2019, net margin attributable to ordinary
shareholders was -18.6%, compared to 23.2% for the same period in
2018.
- Net loss attributable to
ordinary shareholders per basic and diluted American depositary
share ("ADS") for the second quarter of 2019 were RMB1.82 (US$0.26)
and RMB1.82 (US$0.26), respectively, as compared to net
income attributable to ordinary shareholders per basic and diluted
ADS of RMB2.63 and RMB2.49, respectively, for the corresponding
period in 2018. For the first half of 2019, net loss attributable
to ordinary shareholders per basic and diluted ADS was RMB2.58 (US$0.38)
and RMB2.58 (US$0.38), respectively, as compared to net
income attributable to ordinary shareholders per basic and diluted
ADS of RMB6.12 and RMB5.79, respectively, for the same period in
2018.
- Non-GAAP net loss
attributable to ordinary shareholders for the second quarter of
2019 was RMB58.6 million
(US$8.5 million), compared to
non-GAAP net income attributable to ordinary shareholders of
RMB115.5 million from the
corresponding period in 2018. For the first half of 2019, non-GAAP
net loss attributable to ordinary shareholders was RMB81.3 million (US$11.8
million), compared to non-GAAP net income attributable to
ordinary shareholders of RMB241.6
million from the same period in 2018.
- Non-GAAP net margin
attributable to ordinary shareholders for the second quarter of
2019 was -31.5%, as compared to 26.0% for the corresponding period
in 2018. For the first half of 2019, non-GAAP net margin
attributable to ordinary shareholders was -17.4%, as compared to
27.6% for the same period in 2018.
- Non-GAAP net loss
attributable to ordinary shareholders per diluted ADS for the
second quarter of 2019 was RMB1.74
(US$0.25), as compared to non-GAAP net income attributable to ordinary
shareholders per diluted ADS of RMB3.28 for the corresponding period in 2018. For
the first half of 2019, non-GAAP net loss attributable to ordinary
shareholders per diluted ADS was RMB2.42 (US$0.35),
as compared to non-GAAP net income attributable to ordinary
shareholders per diluted ADS of RMB6.87 for the same period in 2018.
Balance Sheet and Cash Flow
As of June 30, 2019, the Company
had RMB1,119.3 million (US$163.0 million) in cash, cash equivalents and
restricted cash, compared to RMB1,302.6
million as of December 31,
2018.
Net cash used in operating activities during the
second quarter of 2019 was RMB127.9
million (US$18.6 million). For
the first half of 2019, net cash used in operating activities was
RMB124.5 million (US$18.1 million).
Net cash provided by investing activities during the
second quarter of 2019 was RMB180.7
million (US$26.3 million). For
the first half of 2019, net cash used in investing activities was
RMB58.8 million (US$8.6 million).
Net cash provided by financing activities during the
second quarter of 2019 was nil. For the first half of 2019, net
cash provided by financing activities was RMB29.6 thousand (US$4.3
thousand).
CONFERENCE CALL
Jupai's management will host an earnings conference call on
August 5, 2019 at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing/Hong
Kong time).
Dial-in details for the earnings conference call are as
follows:
U.S./International:
|
+1-845-675-0437
or +1-866-519-4004
|
Hong Kong:
|
+852-3018-6771
or 800-906-601
|
Mainland
China:
|
400-620-8038 or
800-819-0121
|
Singapore:
|
+65-6713-5090
|
Passcode:
|
8292878
|
Please dial in 10 minutes before the call is scheduled to begin
and provide the passcode to join the call.
A replay of the conference call may be accessed by phone at the
following numbers until August 12,
2019:
U.S./International:
|
+1-855-452-5696
|
Hong Kong:
|
800-963-117
|
Mainland
China:
|
400-632-2162
|
Singapore:
|
800-616-2305
|
Passcode:
|
8292878
|
Additionally, a live and archived webcast will be available at
http://jupai.investorroom.com.
DISCUSSION OF RECENTLY ADOPTED ACCOUNTING STANDARD
Starting from January 1, 2019, the
Company adopted Accounting Standards Update (ASU) 2016-02, Leases
(Topic 842), which supersedes the lease accounting guidance under
Topic 840, and generally requires lessees to recognize operating
and financing lease liabilities and corresponding right-of-use
("ROU") assets on the balance sheet and to provide enhanced
disclosures surrounding the amount, timing and uncertainty of cash
flows arising from leasing arrangements. The Company adopted the
new guidance using the modified retrospective transition approach
by applying the new standard to all leases existing at the date of
initial application and not restating comparative periods. The most
significant impact was the recognition of ROU assets and lease
liabilities for operating leases. The Company also elected the
package of practical expedients, which among other things, does not
require reassessment of lease classification.
DISCUSSION OF NON-GAAP FINANCIAL MEASURES
In addition to disclosing financial results prepared in
accordance with U.S. GAAP, the Company's earnings release contains
non-GAAP financial measures that exclude the effects of all forms
of share-based compensation and amortization of intangible assets
related to acquisition. The reconciliation of these non-GAAP
financial measures to the nearest GAAP measures as set forth in the
table captioned "Reconciliation of GAAP to Non-GAAP Results"
below.
The non-GAAP financial measures disclosed by the Company should
not be considered a substitute for financial measures prepared in
accordance with U.S. GAAP. The financial results reported in
accordance with U.S. GAAP and reconciliation of GAAP to non-GAAP
results should be carefully evaluated. The non-GAAP financial
measure used by the Company may be prepared differently from, and
therefore may not be comparable to, similarly titled measures used
by other companies.
When evaluating the Company's operating performance in the
periods presented, management reviewed non-GAAP net income results
reflecting adjustments to exclude the impacts of share-based
compensation and amortization of intangible assets related to
acquisition, to supplement U.S. GAAP financial data. As such, the
Company believes that the presentation of the non-GAAP net income
attributable to ordinary shareholders, non-GAAP net income
attributable to ordinary shares per diluted ADS and non-GAAP net
margin attributable to ordinary shareholders provides important
supplemental information to investors regarding financial and
business trends relating to the Company's financial condition and
results of operations in a manner consistent with that used by
management. Pursuant to U.S. GAAP, the Company recognized
significant amounts of expenses for the restricted shares and share
options and amortization of intangible assets related to
acquisition. The Company utilized the non-GAAP financial results to
make financial results comparable period to period and to better
understand its historical business operations.
ABOUT JUPAI HOLDINGS LIMITED
Jupai Holdings Limited ("Jupai") (NYSE: JP) is a leading
third-party wealth management service provider focusing on
distributing wealth management products and providing quality
product advisory services to high-net-worth individuals in
China. Jupai's comprehensive and
personalized client service and broad range of carefully selected
third-party and self-developed products have made it a trusted
brand among its clients. Jupai maintains extensive and targeted
coverage of China's high-net-worth
population.
For more information, please visit
http://jupai.investorroom.com.
SAFE HARBOR STATEMENT
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "confident" and similar statements. Among
other things, the business outlook and quotations from management
in this announcement, as well as Jupai's strategic and operational
plans, contain forward-looking statements. Jupai may also make
written or oral forward-looking statements in its periodic reports
to the U.S. Securities and Exchange Commission, in its annual
report to shareholders, in press releases and other written
materials and in oral statements made by its officers, directors or
employees to third parties. Statements that are not historical
facts, including statements about Jupai's beliefs and expectations,
are forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the
following: the goals and strategies of the Company and the
Company's ability to manage its growth and implement its business
strategies; future business development, financial condition and
results of operations of the Company; condition of the wealth
management market in China and
internationally; the demand for and market acceptance of the
products the Company distributes; the Company's ability to maintain
and further grow its active high-net-worth client base and maintain
or increase the amount of investment by clients; developments in
relevant government policies and regulations relating to the
Company's industry and the Company's ability to comply with those
policies and regulations; the Company's ability to attract and
retain quality employees; the Company's ability to adapt to
potential uncertainties in China's
real estate industry and stay abreast of market trends and
technological advances; the results of the Company's investments in
research and development to enhance its product choices and service
offerings; general economic and business conditions in China; and the Company's ability to protect
its reputation and enhance its brand recognition. Further
information regarding these and other risks is included in Jupai's
filings with the U.S. Securities and Exchange Commission. All
information provided in this press release and in the attachments
is as of the date of this press release, and Jupai does not
undertake any obligation to update any such information, including
forward-looking statements, as a result of new information, future
events or otherwise, except as required under applicable law.
Contacts:
Jupai Holdings Limited
Harry
He
Director of Investor Relations
Jupai Holdings Limited
Phone: +86 (21) 6026 9129
Email: ir@jpinvestment.cn
Philip Lisio
The Foote Group
Phone: +86 (10) 8429 9544
Email: Jupai-IR@thefootegroup.com
[1] The U.S. dollars (US$) amounts disclosed in this press
release, except for those transaction amounts that were actually
settled in U.S. dollars, are presented solely for the convenience
of the reader. The conversion of Renminbi (RMB) into U.S. dollars
(US$) in this press release is based on the noon buying rate on
June 28, 2019, as set forth in the
H.10 statistical release of the Board of Governors of the Federal
Reserve System, which was RMB 6.8650
to US$1.00. The percentages stated in
this press release are calculated based on the Renminbi
amounts.
[2] Jupai's non-GAAP financial measures are derived from
adjusting the corresponding GAAP financial measures by excluding
the effects of share-based compensation and amortization of
intangible assets resulted from business acquisitions.
[3] "Active clients" for a given period refers to clients
who purchase wealth management products distributed by Jupai at
least once during that given period.
[4] "Assets under management" or "AUM" of Jupai refers to
the amount of capital contributions made by investors to the funds
managed by the Company, for which the Company is entitled to
receive management fees. The amount of AUM of Jupai is recorded and
carried based on the historical cost of the contributed assets
instead of fair market value of assets for almost all AUM of Jupai.
For assets denominated in currencies other than Renminbi, the AUM
are translated into Renminbi upon their contribution, without
interim value adjustments solely due to changes in foreign exchange
rates. As a result, Jupai's management fees for almost all its AUM
are calculated based on the historical cost balance of the AUM.
- FINANCIAL AND OPERATIONAL TABLES FOLLOW -
Jupai Holdings
Limited
|
Unaudited
Condensed Consolidated Balance Sheets
|
(In RMB, except
for USD data)
|
|
|
|
|
|
As of
|
|
December 31,
|
|
June 30,
|
|
June 30,
|
|
2018
|
|
2019
|
|
2019
|
|
RMB
|
|
RMB
|
|
USD
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
1,298,565,042
|
|
1,115,281,148
|
|
162,459,016
|
Restricted
cash
|
4,000,000
|
|
4,000,000
|
|
582,666
|
Short-term
investments
|
4,723,612
|
|
4,723,612
|
|
688,072
|
Accounts
receivable
|
39,633,035
|
|
20,310,601
|
|
2,958,573
|
Other
receivables
|
20,493,145
|
|
19,256,156
|
|
2,804,975
|
Amounts due from
related parties
|
199,331,694
|
|
119,970,049
|
|
17,475,608
|
Other current
assets
|
15,320,791
|
|
3,810,008
|
|
554,990
|
Total current
assets
|
1,582,067,319
|
|
1,287,351,574
|
|
187,523,900
|
Long-term
investments
|
58,950,000
|
|
91,508,482
|
|
13,329,713
|
Investment in
affiliates
|
67,262,431
|
|
111,665,536
|
|
16,265,920
|
Amounts due from
related parties - non-current
|
48,626,353
|
|
34,470,230
|
|
5,021,155
|
Property and
equipment, net
|
36,267,042
|
|
27,389,579
|
|
3,989,742
|
Intangible assets,
net
|
58,124,608
|
|
40,253,224
|
|
5,863,543
|
Goodwill
|
297,031
|
|
-
|
|
-
|
Other non-current
assets
|
27,914,021
|
|
26,146,417
|
|
3,808,655
|
Right-of-use
assets
|
-
|
|
138,856,781
|
|
20,226,771
|
Deferred tax
assets
|
100,985,228
|
|
100,985,228
|
|
14,710,157
|
Total
Assets
|
1,980,494,033
|
|
1,858,627,051
|
|
270,739,556
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accrued payroll and
welfare expenses
|
116,653,658
|
|
64,176,449
|
|
9,348,354
|
Income tax
payable
|
227,537,993
|
|
149,529,745
|
|
21,781,463
|
Other tax
payable
|
43,009,523
|
|
22,075,181
|
|
3,215,613
|
Amounts due to
related parties - current
|
31,105,111
|
|
31,756,939
|
|
4,625,920
|
Deferred revenue from
related parties
|
111,720,785
|
|
94,717,554
|
|
13,797,167
|
Deferred
revenue
|
18,949,097
|
|
27,745,025
|
|
4,041,519
|
Other current
liabilities
|
39,929,945
|
|
100,604,022
|
|
14,654,628
|
Total current
liabilities
|
588,906,112
|
|
490,604,915
|
|
71,464,664
|
Deferred
revenue - non-current from related parties
|
22,096,306
|
|
10,803,589
|
|
1,573,720
|
Deferred revenue -
non-current
|
2,144,593
|
|
514,937
|
|
75,009
|
Operating Lease
Liabilities - non-current
|
-
|
|
75,529,198
|
|
11,002,068
|
Deferred tax
liabilities
|
198,187
|
|
-
|
|
-
|
Total
Liabilities
|
613,345,198
|
|
577,452,639
|
|
84,115,461
|
Equity
|
1,367,148,835
|
|
1,281,174,412
|
|
186,624,095
|
Total Liabilities
and Total Shareholders' Equity
|
1,980,494,033
|
|
1,858,627,051
|
|
270,739,556
|
Jupai Holdings
Limited
|
Unaudited
Condensed Consolidated Income Statements
|
(In RMB, except
for USD data and ADS data)
|
|
|
|
|
|
Three months
ended
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
2018
|
|
2019
|
|
2019
|
|
RMB
|
|
RMB
|
|
USD
|
Revenues
|
|
|
|
|
|
Third party
revenues
|
70,460,817
|
|
103,698,922
|
|
15,105,451
|
Related party
revenues
|
374,857,647
|
|
84,003,914
|
|
12,236,550
|
Total
revenues
|
445,318,464
|
|
187,702,836
|
|
27,342,001
|
Taxes and
surcharges
|
(1,752,939)
|
|
(1,833,461)
|
|
(267,074)
|
Net
revenues
|
443,565,525
|
|
185,869,375
|
|
27,074,927
|
|
|
|
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
Cost of
revenues
|
(173,905,280)
|
|
(108,523,737)
|
|
(15,808,265)
|
Selling
expenses
|
(71,771,603)
|
|
(49,210,902)
|
|
(7,168,376)
|
General and
administrative expenses
|
(52,533,204)
|
|
(88,926,531)
|
|
(12,953,610)
|
Other operating
income - government subsidies
|
14,899,473
|
|
5,621,863
|
|
818,917
|
Total operating cost
and expenses
|
(283,310,614)
|
|
(241,039,307)
|
|
(35,111,334)
|
Income (loss) from
operations
|
160,254,911
|
|
(55,169,932)
|
|
(8,036,407)
|
|
|
|
|
|
|
Interest
income
|
929,446
|
|
1,882,685
|
|
274,244
|
Investment
income
|
633,532
|
|
437,815
|
|
63,775
|
Other
income
|
278,688
|
|
267,801
|
|
39,010
|
Total other
income
|
1,841,666
|
|
2,588,301
|
|
377,029
|
Income (loss) before
taxes and loss from equity in affiliates
|
162,096,577
|
|
(52,581,631)
|
|
(7,659,378)
|
Income tax
expense
|
(49,257,419)
|
|
(7,616,808)
|
|
(1,109,513)
|
Loss from equity in
affiliates
|
(20,051,928)
|
|
(3,126,633)
|
|
(455,446)
|
Net income
(loss)
|
92,787,230
|
|
(63,325,072)
|
|
(9,224,337)
|
Net (income) loss
attributable to non-controlling interests
|
(4,945,241)
|
|
2,280,249
|
|
332,156
|
Net income (loss)
attributable to ordinary shareholders
|
87,841,989
|
|
(61,044,823)
|
|
(8,892,181)
|
|
|
|
|
|
|
Net income (loss) per
ADS:
|
|
|
|
|
|
Basic
|
2.63
|
|
(1.82)
|
|
(0.26)
|
Diluted
|
2.49
|
|
(1.82)
|
|
(0.26)
|
Weighted average
number of ADSs used in computation:
|
|
|
|
|
|
Basic
|
33,402,453
|
|
33,622,879
|
|
33,622,879
|
Diluted
|
35,233,971
|
|
33,622,879
|
|
33,622,879
|
Jupai Holdings
Limited
|
Unaudited
Condensed Consolidated Income Statements
|
(In RMB, except
for USD data and ADS data)
|
|
|
|
|
|
Six months
ended
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
2018
|
|
2019
|
|
2019
|
|
RMB
|
|
RMB
|
|
USD
|
Revenues
|
|
|
|
|
|
Third party
revenues
|
130,137,315
|
|
180,086,252
|
|
26,232,520
|
Related party
revenues
|
749,594,247
|
|
289,830,779
|
|
42,218,613
|
Total
revenues
|
879,731,562
|
|
469,917,031
|
|
68,451,133
|
Taxes and
surcharges
|
(2,949,252)
|
|
(3,001,274)
|
|
(437,184)
|
Net
revenues
|
876,782,310
|
|
466,915,757
|
|
68,013,949
|
|
|
|
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
Cost of
revenues
|
(304,362,763)
|
|
(284,401,407)
|
|
(41,427,736)
|
Selling
expenses
|
(157,125,195)
|
|
(103,450,371)
|
|
(15,069,246)
|
General and
administrative expenses
|
(117,563,389)
|
|
(151,686,377)
|
|
(22,095,612)
|
Other operating
income - government subsidies
|
15,040,473
|
|
5,621,863
|
|
818,917
|
Total operating cost
and expenses
|
(564,010,874)
|
|
(533,916,292)
|
|
(77,773,677)
|
Income (loss) from
operations
|
312,771,436
|
|
(67,000,535)
|
|
(9,759,728)
|
|
|
|
|
|
|
Interest
income
|
2,075,494
|
|
3,352,100
|
|
488,288
|
Investment
income
|
1,762,391
|
|
2,282,310
|
|
332,456
|
Other
income
|
1,387,560
|
|
2,338,093
|
|
340,582
|
Total other
income
|
5,225,445
|
|
7,972,503
|
|
1,161,326
|
Income (loss) before
taxes and loss from equity in affiliates
|
317,996,881
|
|
(59,028,032)
|
|
(8,598,402)
|
Income tax
expense
|
(88,373,667)
|
|
(22,810,960)
|
|
(3,322,792)
|
Loss from equity in
affiliates
|
(21,238,446)
|
|
(5,122,363)
|
|
(746,156)
|
Net income
(loss)
|
208,384,768
|
|
(86,961,355)
|
|
(12,667,350)
|
Net (income) loss
attributable to non-controlling interests
|
(4,665,194)
|
|
324,176
|
|
47,222
|
Net income (loss)
attributable to ordinary shareholders
|
203,719,574
|
|
(86,637,179)
|
|
(12,620,128)
|
|
|
|
|
|
|
Net income (loss) per
ADS:
|
|
|
|
|
|
Basic
|
6.12
|
|
(2.58)
|
|
(0.38)
|
Diluted
|
5.79
|
|
(2.58)
|
|
(0.38)
|
Weighted average
number of ADSs used in computation:
|
|
|
|
|
|
Basic
|
33,263,317
|
|
33,608,973
|
|
33,608,973
|
Diluted
|
35,184,517
|
|
33,608,973
|
|
33,608,973
|
Jupai Holdings
Limited
|
Unaudited
Condensed Comprehensive Income Statements
|
(In RMB, except
for USD data)
|
|
|
|
|
|
Three months
ended
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
2018
|
|
2019
|
|
2019
|
|
RMB
|
|
RMB
|
|
USD
|
Net income
(loss)
|
92,787,230
|
|
(63,325,072)
|
|
(9,224,337)
|
Other comprehensive
income (loss), net of tax:
|
|
|
|
|
|
Change in cumulative
foreign currency translation adjustment
|
23,720,224
|
|
4,773,399
|
|
695,324
|
Other comprehensive
income
|
23,720,224
|
|
4,773,399
|
|
695,324
|
Comprehensive income
(loss)
|
116,507,454
|
|
(58,551,673)
|
|
(8,529,013)
|
Less: Comprehensive
income (loss) attributable to non-controlling interests
|
4,945,241
|
|
(1,851,899)
|
|
(269,760)
|
Comprehensive
income (loss) attributable to ordinary shareholders
|
111,562,213
|
|
(56,699,774)
|
|
(8,259,253)
|
Jupai Holdings
Limited
|
Unaudited
Condensed Comprehensive Income Statements
|
(In RMB, except
for USD data)
|
|
|
|
|
|
Six months
ended
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
2018
|
|
2019
|
|
2019
|
|
RMB
|
|
RMB
|
|
USD
|
Net income
(loss)
|
208,384,768
|
|
(86,961,355)
|
|
(12,667,350)
|
Other comprehensive
income (loss), net of tax:
|
|
|
|
|
|
Change in cumulative
foreign currency translation adjustment
|
2,301,164
|
|
274,663
|
|
40,009
|
Other comprehensive
income
|
2,301,164
|
|
274,663
|
|
40,009
|
Comprehensive income
(loss)
|
210,685,932
|
|
(86,686,692)
|
|
(12,627,341)
|
Less: Comprehensive
income (loss) attributable to non-controlling interests
|
4,665,194
|
|
(321,568)
|
|
(46,842)
|
Comprehensive
income (loss) attributable to ordinary shareholders
|
206,020,738
|
|
(86,365,124)
|
|
(12,580,499)
|
Jupai Holdings
Limited
|
Reconciliation of
GAAP to Non-GAAP Results
|
(In RMB, except
for ADS data and percentages)
|
|
|
|
|
|
Three months
ended
|
|
June 30,
|
|
June 30,
|
|
2018
|
|
2019
|
|
RMB
|
|
RMB
|
Net margin
attributable to ordinary shareholders
|
19.8%
|
|
-32.8%
|
Adjusted net margin
attributable to ordinary shareholders (non-GAAP)
|
26.0%
|
|
-31.5%
|
|
|
|
|
Net income (loss)
attributable to ordinary shareholders
|
87,841,989
|
|
(61,044,823)
|
Adjustment for
share-based compensation (net of tax effect of nil for both three
months
ended June 30, 2018 and 2019)
|
6,173,219
|
|
2,417,224
|
Adjustment for
amortization of intangible assets related to acquisition (net of
tax effect of
RMB1,167,708 and nil for three months ended June 30, 2018 and 2019,
respectively)
|
3,503,125
|
|
-
|
Adjustment for
impairment loss of investment in affiliates (net of tax effect of
nil for both
three months ended June 30, 2018 and 2019)
|
18,000,000
|
|
-
|
Adjusted net
income (loss) attributable to ordinary shareholders
(non-GAAP)
|
115,518,333
|
|
(58,627,599)
|
|
|
|
|
Net income
(loss) attributable to ordinary shareholders per ADS,
diluted
|
2.49
|
|
(1.82)
|
Adjusted net income
(loss) attributable to ordinary shareholders per ADS, diluted
(non-GAAP)
|
3.28
|
|
(1.74)
|
|
|
|
|
Weighted average
number of ADSs used in computation:
|
|
|
|
Diluted
|
35,233,971
|
|
33,622,879
|
Jupai Holdings
Limited
|
Reconciliation of
GAAP to Non-GAAP Results
|
(In RMB, except
for ADS data and percentages)
|
|
|
|
|
|
Six months
ended
|
|
June 30,
|
|
June 30,
|
|
2018
|
|
2019
|
|
RMB
|
|
RMB
|
Net margin
attributable to ordinary shareholders
|
23.2%
|
|
-18.6%
|
Adjusted net margin
attributable to ordinary shareholders (non-GAAP)
|
27.6%
|
|
-17.4%
|
|
|
|
|
Net income (loss)
attributable to ordinary shareholders
|
203,719,574
|
|
(86,637,179)
|
Adjustment for
share-based compensation (net of tax effect of nil for both six
months ended
June 30, 2018 and
2019)
|
13,086,098
|
|
4,785,264
|
Adjustment for
amortization of intangible assets related to acquisition (net of
tax effect of
RMB2,278,517 and RMB196,316 for six months ended June 30, 2018 and
2019, respectively)
|
6,835,553
|
|
588,954
|
Adjustment for
impairment loss of investment in affiliates (net of tax effect of
nil for both six
months ended June 30, 2018 and 2019)
|
18,000,000
|
|
-
|
Adjusted net
income (loss) attributable to ordinary shareholders
(non-GAAP)
|
241,641,225
|
|
(81,262,961)
|
|
|
|
|
Net income
(loss) attributable to ordinary shareholders per ADS,
diluted
|
5.79
|
|
(2.58)
|
Adjusted net income
(loss) attributable to ordinary shareholders per ADS, diluted
(non-GAAP)
|
6.87
|
|
(2.42)
|
|
|
|
|
Weighted average
number of ADSs used in computation:
|
|
|
|
Diluted
|
35,184,517
|
|
33,608,973
|
View original
content:http://www.prnewswire.com/news-releases/jupai-reports-second-quarter-2019-results-300896198.html
SOURCE Jupai Holdings Limited