SHANGHAI, Dec. 7, 2018 /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 third quarter and nine months
ended September 30, 2018.
THIRD QUARTER AND FIRST NINE MONTHS 2018 FINANCIAL
HIGHLIGHTS
- Net revenues in the third quarter of 2018 were
RMB310.6 million
(US[1]$45.2 million), a
29.5% decrease from the corresponding period in 2017. For the first
nine months of 2018, net revenues were RMB1,187.4 million (US$172.9 million), a decrease of 4.7% from the
same period in 2017.
(RMB '000, except
percentages)
|
Q3
2017
|
|
Q3 2017
%
|
|
Q3
2018
|
|
Q3 2018
%
|
|
YoY Change
%
|
One-time
commissions
|
265,004
|
|
60.1%
|
|
147,718
|
|
47.6%
|
|
-44.3%
|
Recurring management
fees
|
90,697
|
|
20.6%
|
|
96,379
|
|
31.0%
|
|
6.3%
|
Recurring service
fees
|
21,731
|
|
4.9%
|
|
10,144
|
|
3.3%
|
|
-53.3%
|
Other service
fees
|
63,353
|
|
14.4%
|
|
56,343
|
|
18.1%
|
|
-11.1%
|
Total net
revenues
|
440,785
|
|
100.0%
|
|
310,584
|
|
100.0%
|
|
-29.5%
|
|
|
(RMB '000, except
percentages)
|
9M
2017
|
|
9M 2017
%
|
|
9M
2018
|
|
9M 2018
%
|
|
YoY Change
%
|
One-time
commissions
|
729,771
|
|
58.6%
|
|
706,396
|
|
59.5%
|
|
-3.2%
|
Recurring management
fees
|
252,221
|
|
20.2%
|
|
340,983
|
|
28.7%
|
|
35.2%
|
Recurring service
fees
|
81,273
|
|
6.5%
|
|
36,633
|
|
3.1%
|
|
-54.9%
|
Other service
fees
|
182,880
|
|
14.7%
|
|
103,355
|
|
8.7%
|
|
-43.5%
|
Total net
revenues
|
1,246,145
|
|
100.0%
|
|
1,187,367
|
|
100.0%
|
|
-4.7%
|
- Income from operations in the third quarter of 2018 was
RMB27.3 million (US$4.0 million), an 83.8% decrease from the
corresponding period in 2017. For the first nine months of 2018,
income from operations was RMB340.1
million (US$49.5 million), a
decrease of 26.0% from the same period in 2017.
- Net income attributable to ordinary shareholders in the
third quarter of 2018 was RMB1.7
million (US$0.2 million), a
98.5% decrease from the corresponding period in 2017. For the first
nine months of 2018, net income attributable to ordinary
shareholders was RMB205.4 million
(US$29.9 million), a decrease of
35.6% from the same period in 2017.
- Non-GAAP[2] net income attributable to
ordinary shareholders in the third quarter of 2018 was RMB25.5 million (US$3.7
million), a 79.8% decrease from the corresponding period in
2017. For the first nine months of 2018, non-GAAP net income
attributable to ordinary shareholders was RMB267.1 million (US$38.9
million), a decrease of 24.2% from the same period in
2017.
[1] The
U.S. dollars (US$) 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 September 28,
2018, as set forth in the H.10 statistical release of the Board of
Governors of the Federal Reserve System, which was RMB6.8680 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, amortization of intangible assets
resulted from business acquisitions and impairment loss of
investment in affiliates.
|
THIRD QUARTER AND FIRST NINE MONTHS 2018 OPERATIONAL
UPDATES
- Total number of active clients[3] during the
third quarter of 2018 was 1,982.
- The aggregate value of wealth management products
distributed by the Company during the third quarter
of 2018 was RMB5.3 billion
(US$0.8 billion), a 56.3% decrease
from the corresponding period in 2017. For the first nine months of
2018, the aggregate value of wealth management products distributed
by the Company was RMB25.9 billion
(US$3.8 billion), a 32.8% decrease
from the corresponding period in 2017.
Wealth management
products distributed by the Company - breakdown by product
type
|
|
Three months
ended
|
Nine months
ended
|
|
September 30,
2017
|
|
September 30,
2018
|
September 30,
2017
|
|
September 30,
2018
|
Product
type
|
(RMB in millions,
except percentages)
|
(RMB in millions,
except percentages)
|
Fixed income
products
|
10,085
|
84%
|
|
865
|
16%
|
31,580
|
82%
|
|
6,083
|
24%
|
Private equity
products
|
1,327
|
11%
|
|
3,689
|
70%
|
5,261
|
14%
|
|
17,680
|
68%
|
Secondary market
equity fund products
|
7
|
0%
|
|
144
|
3%
|
99
|
0%
|
|
1,104
|
4%
|
Other
products
|
613
|
5%
|
|
561
|
11%
|
1,603
|
4%
|
|
1,018
|
4%
|
All
products
|
12,032
|
100%
|
|
5,259
|
100%
|
38,543
|
100%
|
|
25,885
|
100%
|
- Jupai's coverage network as of September 30, 2018 included 77 client centers
covering 49 cities, as compared to 72 client centers covering 48
cities as of September 30, 2017.
- Total assets under management[4] as of
September 30, 2018 were RMB57.8 billion (US$8.4
billion), a 1.9% increase from June
30, 2018 and a 15.3% increase from September 30, 2017.
Assets under
management – breakdown by product type
|
|
As
of
|
|
September 30,
2017
|
|
September 30,
2018
|
Product
type
|
(RMB in millions,
except percentages)
|
Fixed income
products
|
28,415
|
57%
|
|
19,760
|
34%
|
Private equity
products
|
18,694
|
37%
|
|
34,826
|
60%
|
Secondary market
equity fund products
|
2,391
|
5%
|
|
2,077
|
4%
|
Other
products
|
604
|
1%
|
|
1,095
|
2%
|
All
products
|
50,104
|
100%
|
|
57,758
|
100%
|
[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.
|
"China's wealth management
industry has been facing strong headwinds over the past few
quarters," said Mr. Jianda Ni,
Jupai's chairman of the board and chief executive officer. "Since
early 2018, we have seen investors becoming increasingly
conservative due to an uncertain economic outlook in China and globally, a weakening real economy
as a result of deleveraging and tightened regulations in the
financial services industry. As a result, the aggregate value of
wealth management products distributed by Jupai during the first
nine months of 2018 decreased by 32.8% from that in the
corresponding period in 2017 to RMB25.9
billion. However, as real estate companies continue to face
rising cost of capital, we have benefited from our enhanced
bargaining power. Our average one-time commission rate reached 2.8%
in the third quarter, up from 2.2% in the corresponding period in
2017, reflecting Jupai's competitive advantage across the wealth
management industry value chain."
"Leveraging our rich resources and network within the real
estate industry, Jupai remained dedicated to developing
high-quality real estate related products during the first nine
months of 2018. Our total assets under management grew to
RMB57.8 billion as of September 30, 2018, up 15.3% year-over-year.
Looking ahead, in order to build a healthy long-term growth rate,
we will put more effort into the development of proactively managed
funds, further diversify the industries underlying our products,
and continue to enhance the quality of our AUM, so as to create
room for further growth in recurring management fees and
performance fees."
"Although we expect China's
wealth and asset management industry to remain in a transition
period given the current macro-level deleveraging and changing
regulatory landscape, we believe that China's decades of rapid economic expansion
have laid the foundation for a vibrant future for our industry.
Additionally, we are confident that investors will increasingly
choose to work with well-known, reputable industry leaders such as
Jupai during turbulent times in the capital markets. Jupai will
continue to adapt to changes in the wealth and asset management
industry in order to better manage our funds, strengthen our talent
base, increase product diversity, and improve our risk control
system. We look forward to building Jupai into the leading wealth
and asset management brand in China and creating long-term value for our
shareholders."
Ms. Min Liu, Jupai's chief
financial officer, said, "While we face ongoing challenges in our
industry, we will use this period of transition to increase
operating efficiency through cost controls, personnel optimization
and IT system enhancement. We believe that these measures will help
us lay a solid foundation to expand our margins in the mid-to-long
term."
THIRD QUARTER AND FIRST NINE MONTHS 2018 FINANCIAL
RESULTS
Net Revenues
Net revenues for the third quarter of 2018 were
RMB310.6 million (US$45.2 million), a 29.5% decrease from the
corresponding period in 2017, primarily due to decreases in both
one-time commissions and recurring service fees. Net revenues were
RMB1,187.4 million (US$172.9 million) for the first nine months of
2018, a decrease of 4.7% from the same period in 2017.
- Net revenues from one-time commissions for the third
quarter of 2018 were RMB147.7 million
(US$21.5 million), a 44.3% decrease
from the corresponding period in 2017, primarily as a result of a
decrease in the aggregate value of wealth management products
distributed by the Company. For the first nine months of 2018, net
revenues from one-time commissions were RMB706.4 million (US$102.9
million), a decrease of 3.2% from the same period in
2017.
- Net revenues from recurring management fees for the
third quarter of 2018 were RMB96.4
million (US$14.0 million), a
6.3% increase from the corresponding period in 2017, primarily due
to an increase in the value of assets under management. The Company
recognized RMB5.7 million
(US$0.8 million) and RMB18.1 million carried interest in the third
quarter of 2018 and 2017, respectively. For the first nine months
of 2018, net revenues from recurring management fees were
RMB341.0 million (US$49.6 million), a 35.2% increase from the same
period in 2017. RMB49.7 million
(US$7.2 million) and RMB41.6 million carried interest was recognized
as part of Jupai's recurring management fees for the first nine
months of 2018 and the same period in 2017, respectively.
- Net revenues from recurring service fees for the third
quarter of 2018 were RMB10.1 million
(US$1.5 million), a 53.3% decrease
from the corresponding period in 2017, primarily because the
Company provided ongoing services to fewer product suppliers. The
Company recognized nil and RMB0.9
million variable performance fees in the third quarter of
2018 and 2017, respectively. For the first nine months of 2018, net
revenues from recurring service fees were RMB36.6 million (US$5.3
million), a 54.9% decrease from the same period in 2017. The
Company recognized RMB0.3 million
(US$0.1 million) and RMB13.7 million variable performance fees for the
first nine months of 2018 and the same period in 2017,
respectively.
- Net revenues from other service fees for the third
quarter of 2018 were RMB56.3 million
(US$8.2 million), a 11.1% decrease
from the corresponding period in 2017, primarily due to a decrease
in sub-advisory fees collected from other companies. For the first
nine months of 2018, net revenues from other service fees were
RMB103.4 million (US$15.0 million), a decrease of 43.5% from the
same period in 2017.
Starting from January 1, 2018, the Company adopted Accounting
Standards Update 2014-09, Revenue from Contracts with Customers
(ASC 606), on a modified-retrospective basis. The adoption has no
material impact on the Company's financial positions, results of
operations, or cash flows.
Operating Costs and Expenses
Operating costs and expenses for the third quarter of
2018 were RMB283.3 million
(US$41.2 million), an increase of
4.0% from the corresponding period in 2017. For the first nine
months of 2018, operating costs and expenses were RMB847.3 million (US$123.4
million), an increase of 7.7% from the same period in
2017.
- Cost of revenues for the third quarter of 2018 was
RMB155.8 million (US$22.7 million), a 10.3% decrease from the
corresponding period in 2017, primarily due to a reduction in
performance-based compensation as a result of a decline in the
aggregate value of wealth management products distributed. For the
first nine months of 2018, cost of revenues was RMB460.2 million (US$67.0
million), a decrease of 2.2% from the same period in
2017.
- Selling expenses for the third quarter of 2018 were
RMB65.8 million (US$9.6 million), a 12.1% decrease from the
corresponding period in 2017, primarily due to the decrease in
marketing expenses. For the first nine months of 2018, selling
expenses were RMB223.0 million
(US$32.5 million), an increase of
11.6% from the same period in 2017.
- G&A expenses for the third quarter of 2018 were
RMB62.5 million (US$9.1 million), a 36.2% increase from the
corresponding period in 2017, mainly due to the increase in both
the numbers of managerial and administrative personnel and their
average compensation. For the first nine months of 2018, G&A
expenses were RMB180.0 million
(US$26.2 million), an increase of
25.4% from the same period in 2017.
- Other operating income (government subsidies) received
by the Company in the third quarter of 2018 was RMB0.8 million (US$0.1
million), a 96.2% decrease from the corresponding period in
2017. For the first nine months of 2018, other operating income was
RMB15.9 million (US$2.3 million), a decrease of 42.1% from the
same period in 2017. Government subsidies were recorded when
received, with their availability and amount dependent upon
government administrative policies.
Operating margin for the third quarter of 2018 was 8.8%,
compared to 38.2% for the corresponding period in 2017. For the
first nine months of 2018, operating margin was 28.6%, compared to
36.9% for the same period in 2017.
Income tax expenses for the third quarter of 2018 were
RMB8.0 million (US$1.2 million), an 83.1% decrease from the
corresponding period in 2017. For the first nine months of 2018,
income tax expenses were RMB96.4
million (US$14.0 million), a
decrease of 20.8% from the same period in 2017, primarily due to a
decrease in taxable income.
Loss from equity in affiliates for the third quarter of
2018 was RMB18.7 million
(US$2.7 million), as compared to
income from equity in affiliates of RMB0.2
million for the corresponding period in 2017. The loss was
primarily attributable to RMB15.8
million (US$2.3 million) of
impairment loss relating to the Company's investment in Shanghai
Runju Financial Information Service Co., Ltd. ("Runju"), a
non-controlling investee of the Company. As the industry
regulations newly introduced on March 28,
2018 emphasize that asset management businesses conducted
through the internet are subject to oversight from financial
regulatory authorities, Runju has formulated a new business plan to
adjust its business model and is in the transition of its business.
Based on management's latest evaluation, impairment loss of
RMB33.8 million (US$4.9 million) was recorded as loss from equity
in affiliates for the nine months ended September 30, 2018, including RMB15.8 million (US$2.3
million) recorded in the third quarter of 2018. Future
impairment analysis will be performed at each quarter end.
Net Income
- Net Income
- Net income attributable to ordinary shareholders for the
third quarter of 2018 was RMB1.7
million (US$0.2 million), a
98.5% decrease from the corresponding period in 2017. For the first
nine months of 2018, net income attributable to ordinary
shareholders was RMB205.4 million
(US$29.9 million), a decrease of
35.6% from the same period in 2017.
- Net margin attributable to ordinary shareholders for the
third quarter of 2018 was 0.5%, as compared to 26.2% for the
corresponding period in 2017. For the first nine months of 2018,
net margin attributable to ordinary shareholders was 17.3%,
compared to 25.6% for the same period in 2017.
- Net income attributable to ordinary shareholders per basic
and diluted American depositary share ("ADS") for the third
quarter of 2018 was RMB0.05
(US$0.01) and RMB0.05 (US$0.01),
respectively, as compared to RMB3.54
and RMB3.39, respectively, for the
corresponding period in 2017. For the first nine months of 2018,
net income attributable to ordinary shareholders per basic and
diluted ADS was RMB6.16 (US$0.90) and RMB5.85 (US$0.85),
respectively, as compared to RMB9.83
and RMB9.43, respectively, for the
same period in 2017.
- Non-GAAP Net Income
- Non-GAAP net income attributable to ordinary
shareholders for the third quarter of 2018 was RMB25.5 million (US$3.7
million), a 79.8% decrease from the corresponding period in
2017. For the first nine months of 2018, non-GAAP net income
attributable to ordinary shareholders was RMB267.1 million (US$38.9
million), a 24.2% decrease from the same period in
2017.
- Non-GAAP net margin attributable to ordinary
shareholders for the third quarter of 2018 was 8.2%, as
compared to 28.6% for the corresponding period in 2017. For the
first nine months of 2018, non-GAAP net margin attributable to
ordinary shareholders was 22.5%, as compared to 28.3% for the same
period in 2017.
- Non-GAAP net income attributable to ordinary shareholders
per diluted ADS for the third quarter of 2018 was RMB0.73 (US$0.11),
as compared to RMB3.69 for the
corresponding period in 2017. For the first nine months of 2018,
non-GAAP net income attributable to ordinary shareholders per
diluted ADS was RMB7.60 (US$1.11), as compared to RMB10.42 for the same period in 2017.
Balance Sheet and Cash Flow
As of September 30, 2018, the
Company had RMB740.7 million
(US$107.8 million) in cash and cash
equivalents, compared to RMB1,527.8
million as of December 31,
2017.
Net cash used in operating activities during the third
quarter of 2018 was RMB104.7 million
(US$15.2 million). For the first nine
months of 2018, net cash used in operating activities was
RMB115.9 million (US$16.9 million).
Net cash used in investing activities during the third
quarter of 2018 was RMB217.6 million
(US$31.7 million). For the first nine
months of 2018, net cash used in investing activities was
RMB550.0 million (US$80.1 million).
Net cash used in financing activities during the third
quarter of 2018 was RMB17.5 million
(US$2.5 million). For the first nine
months of 2018, net cash used in financing activities was
RMB121.2 million (US$17.7 million).
CONFERENCE CALL
Jupai's management will host an earnings conference call on
December 7, 2018 at 7:00 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:
|
7299525
|
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 December 15,
2018:
U.S./International:
|
+1-855-452-5696
|
Hong Kong:
|
800-963-117
|
Mainland
China:
|
400-632-2162
|
Singapore:
|
800-616-2305
|
Passcode:
|
7299525
|
Additionally, a live and archived webcast will be available at
http://jupai.investorroom.com.
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, amortization of intangible assets
related to acquisition and impairment loss of investment in
affiliates. 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, amortization of intangible assets related to
acquisition and impairment loss of investment in affiliates, 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, amortization of intangible
assets related to acquisition and impairment loss of investment in
affiliates in the periods presented. 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.
-- FINANCIAL AND OPERATIONAL TABLES FOLLOW
--
Jupai Holdings
Limited
|
Unaudited
Condensed Consolidated Balance Sheets
|
(In
RMB)
|
|
|
As of
|
|
December 31,
|
|
September 30,
|
|
September 30,
|
|
2017
|
|
2018
|
|
2018
|
|
RMB
|
|
RMB
|
|
USD
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
1,527,777,270
|
|
740,695,652
|
|
107,847,358
|
Short-term
investments
|
23,203,612
|
|
23,203,612
|
|
3,378,511
|
Accounts
receivable
|
53,512,590
|
|
84,736,504
|
|
12,337,872
|
Other
receivables
|
22,989,264
|
|
16,682,861
|
|
2,429,071
|
Amounts due from
related parties
|
268,760,059
|
|
667,343,271
|
|
97,167,045
|
Other current
assets
|
12,276,204
|
|
15,861,004
|
|
2,309,407
|
Total current
assets
|
1,908,518,999
|
|
1,548,522,904
|
|
225,469,264
|
Long-term
investments
|
50,450,000
|
|
50,450,000
|
|
7,345,661
|
Investment in
affiliates
|
181,922,556
|
|
355,199,743
|
|
51,718,076
|
Amounts due from
related parties -- non-current
|
-
|
|
59,192,250
|
|
8,618,557
|
Property and
equipment, net
|
44,957,054
|
|
36,540,357
|
|
5,320,378
|
Intangible assets,
net
|
74,350,855
|
|
63,544,887
|
|
9,252,313
|
Goodwill
|
261,621,691
|
|
275,435,074
|
|
40,104,117
|
Other non-current
assets
|
32,459,581
|
|
30,523,343
|
|
4,444,284
|
Deferred tax assets
-- non-current
|
71,807,042
|
|
71,807,042
|
|
10,455,306
|
Total
Assets
|
2,626,087,778
|
|
2,491,215,600
|
|
362,727,956
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accrued payroll and
welfare expenses
|
212,718,285
|
|
73,855,626
|
|
10,753,586
|
Income tax
payable
|
179,224,777
|
|
158,353,384
|
|
23,056,696
|
Other tax
payable
|
57,325,185
|
|
52,523,571
|
|
7,647,579
|
Dividend
payable
|
-
|
|
571,220
|
|
83,171
|
Amounts due to
related parties-current
|
27,294,813
|
|
14,563,178
|
|
2,120,439
|
Deferred revenue from
related parties
|
171,546,620
|
|
135,800,165
|
|
19,772,884
|
Deferred
revenue
|
17,921,745
|
|
8,338,600
|
|
1,214,123
|
Other current
liabilities
|
31,941,785
|
|
26,930,969
|
|
3,921,224
|
Total current
liabilities
|
697,973,210
|
|
470,936,713
|
|
68,569,702
|
Deferred revenue --
non-current from related parties
|
62,917,485
|
|
34,155,189
|
|
4,973,091
|
Deferred revenue --
non-current
|
6,611,915
|
|
2,849,275
|
|
414,862
|
Deferred tax
liabilities -- non-current
|
4,717,167
|
|
1,390,544
|
|
202,467
|
Total
Liabilities
|
772,219,777
|
|
509,331,721
|
|
74,160,122
|
Equity
|
1,853,868,001
|
|
1,981,883,879
|
|
288,567,834
|
Total Liabilities
and Total Shareholders' Equity
|
2,626,087,778
|
|
2,491,215,600
|
|
362,727,956
|
Jupai Holdings
Limited
|
Unaudited
Condensed Consolidated Income Statements
|
(In RMB, except
for USD data, ADS data and percentages)
|
|
|
Three months
ended
|
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
YoY
|
|
2017
|
|
2018
|
|
2018
|
|
Change %
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
Revenues
|
|
|
|
|
|
|
|
Third party
revenues
|
106,852,364
|
|
116,290,554
|
|
16,932,230
|
|
8.8%
|
Related party
revenues
|
335,292,485
|
|
195,022,533
|
|
28,395,826
|
|
-41.8%
|
Total
revenues
|
442,144,849
|
|
311,313,087
|
|
45,328,056
|
|
-29.6%
|
Taxes and
surcharges
|
(1,360,338)
|
|
(728,702)
|
|
(106,101)
|
|
-46.4%
|
Net
revenues
|
440,784,511
|
|
310,584,385
|
|
45,221,955
|
|
-29.5%
|
|
|
|
|
|
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Cost of
revenues
|
(173,668,668)
|
|
(155,832,886)
|
|
(22,689,704)
|
|
-10.3%
|
Selling
expenses
|
(74,900,713)
|
|
(65,838,130)
|
|
(9,586,216)
|
|
-12.1%
|
General and
administrative expenses
|
(45,871,467)
|
|
(62,460,602)
|
|
(9,094,438)
|
|
36.2%
|
Other operating
income -- government subsidies
|
22,076,600
|
|
841,893
|
|
122,582
|
|
-96.2%
|
Total operating cost
and expenses
|
(272,364,248)
|
|
(283,289,725)
|
|
(41,247,776)
|
|
4.0%
|
Income from
operations
|
168,420,263
|
|
27,294,660
|
|
3,974,179
|
|
-83.8%
|
|
|
|
|
|
|
|
|
Gain from
deconsolidation of subsidiaries
|
-
|
|
561,528
|
|
81,760
|
|
100.0%
|
Interest
income
|
1,680,560
|
|
1,053,088
|
|
153,333
|
|
-37.3%
|
Investment income
(loss)
|
3,827,354
|
|
(945,974)
|
|
(137,736)
|
|
-124.7%
|
Other (loss)
income
|
(132,902)
|
|
3,140,310
|
|
457,237
|
|
-2462.9%
|
Total other
income
|
5,375,012
|
|
3,808,952
|
|
554,594
|
|
-29.1%
|
Income before taxes
and income from equity in affiliates
|
173,795,275
|
|
31,103,612
|
|
4,528,773
|
|
-82.1%
|
Income tax
expense
|
(47,438,160)
|
|
(8,019,385)
|
|
(1,167,645)
|
|
-83.1%
|
Income (loss) from
equity in affiliates
|
155,211
|
|
(18,710,397)
|
|
(2,724,286)
|
|
-12154.8%
|
Net
income
|
126,512,326
|
|
4,373,830
|
|
636,842
|
|
-96.5%
|
Net income
attributable to non-controlling interests
|
(10,853,416)
|
|
(2,675,124)
|
|
(389,506)
|
|
-75.4%
|
Net income
attributable to ordinary shareholders
|
115,658,910
|
|
1,698,706
|
|
247,336
|
|
-98.5%
|
|
|
|
|
|
|
|
|
Net income per
ADS:
|
|
|
|
|
|
|
|
Basic
|
3.54
|
|
0.05
|
|
0.01
|
|
-98.6%
|
Diluted
|
3.39
|
|
0.05
|
|
0.01
|
|
-98.5%
|
Weighted average
number of ADSs used in computation:
|
|
|
|
|
|
|
|
Basic
|
32,631,080
|
|
33,547,937
|
|
33,547,937
|
|
2.8%
|
Diluted
|
34,083,757
|
|
34,871,348
|
|
34,871,348
|
|
2.3%
|
Jupai Holdings
Limited
|
Unaudited
Condensed Consolidated Income Statements
|
(In RMB, except
for USD data, ADS data and percentages)
|
|
|
Nine months
ended
|
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
YoY
|
|
2017
|
|
2018
|
|
2018
|
|
Change %
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
Revenues
|
|
|
|
|
|
|
|
Third party
revenues
|
390,341,474
|
|
246,427,869
|
|
35,880,587
|
|
-36.9%
|
Related party
revenues
|
860,461,812
|
|
944,616,780
|
|
137,538,844
|
|
9.8%
|
Total
revenues
|
1,250,803,286
|
|
1,191,044,649
|
|
173,419,431
|
|
-4.8%
|
Taxes and
surcharges
|
(4,658,231)
|
|
(3,677,954)
|
|
(535,521)
|
|
-21.0%
|
Net
revenues
|
1,246,145,055
|
|
1,187,366,695
|
|
172,883,910
|
|
-4.7%
|
|
|
|
|
|
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Cost of
revenues
|
(470,401,882)
|
|
(460,195,649)
|
|
(67,005,774)
|
|
-2.2%
|
Selling
expenses
|
(199,783,565)
|
|
(222,963,325)
|
|
(32,464,083)
|
|
11.6%
|
General and
administrative expenses
|
(143,615,868)
|
|
(180,023,991)
|
|
(26,211,996)
|
|
25.4%
|
Other operating
income -- government subsidies
|
27,417,443
|
|
15,882,366
|
|
2,312,517
|
|
-42.1%
|
Total operating cost
and expenses
|
(786,383,872)
|
|
(847,300,599)
|
|
(123,369,336)
|
|
7.7%
|
Income from
operations
|
459,761,183
|
|
340,066,096
|
|
49,514,574
|
|
-26.0%
|
|
|
|
|
|
|
|
|
Gain from
deconsolidation of subsidiaries
|
-
|
|
561,528
|
|
81,760
|
|
100.0%
|
Interest
income
|
10,188,988
|
|
3,128,582
|
|
455,530
|
|
-69.3%
|
Investment
income
|
8,755,346
|
|
816,417
|
|
118,873
|
|
-90.7%
|
Other (loss)
income
|
(1,870,983)
|
|
4,527,870
|
|
659,271
|
|
-342.0%
|
Total other
income
|
17,073,351
|
|
9,034,397
|
|
1,315,434
|
|
-47.1%
|
Income before taxes
and income from equity in affiliates
|
476,834,534
|
|
349,100,493
|
|
50,830,008
|
|
-26.8%
|
Income tax
expense
|
(121,776,263)
|
|
(96,393,052)
|
|
(14,035,098)
|
|
-20.8%
|
Loss from equity in
affiliates
|
(3,731,860)
|
|
(39,948,843)
|
|
(5,816,663)
|
|
970.5%
|
Net
income
|
351,326,411
|
|
212,758,598
|
|
30,978,247
|
|
-39.4%
|
Net income
attributable to non-controlling interests
|
(32,512,219)
|
|
(7,340,318)
|
|
(1,068,771)
|
|
-77.4%
|
Net income
attributable to ordinary shareholders
|
318,814,192
|
|
205,418,280
|
|
29,909,476
|
|
-35.6%
|
|
|
|
|
|
|
|
|
Net income per
ADS:
|
|
|
|
|
|
|
|
Basic
|
9.83
|
|
6.16
|
|
0.90
|
|
-37.3%
|
Diluted
|
9.43
|
|
5.85
|
|
0.85
|
|
-38.0%
|
Weighted average
number of ADSs used in computation:
|
|
|
|
|
|
|
|
Basic
|
32,435,136
|
|
33,359,233
|
|
33,359,233
|
|
2.8%
|
Diluted
|
33,819,713
|
|
35,123,696
|
|
35,123,696
|
|
3.9%
|
Jupai Holdings
Limited
|
Unaudited
Condensed Comprehensive Income Statements
|
(In RMB, except
for USD data and percentages)
|
|
|
Three months
ended
|
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
|
|
2017
|
|
2018
|
|
2018
|
|
Change
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
Net
income
|
126,512,326
|
|
4,373,830
|
|
636,842
|
|
-96.5%
|
Other comprehensive
income, net of tax:
|
|
|
|
|
|
|
|
Change in cumulative
foreign currency translation adjustment
|
(12,059,498)
|
|
18,590,176
|
|
2,706,782
|
|
-254.2%
|
Other comprehensive
income
|
(12,059,498)
|
|
18,590,176
|
|
2,706,782
|
|
-254.2%
|
Comprehensive
income
|
114,452,828
|
|
22,964,006
|
|
3,343,624
|
|
-79.9%
|
Less: Comprehensive
income attributable to non-controlling interests
|
10,866,767
|
|
2,675,124
|
|
389,506
|
|
-75.4%
|
Comprehensive
income attributable to ordinary shareholders
|
103,586,061
|
|
20,288,882
|
|
2,954,118
|
|
-80.4%
|
Jupai Holdings
Limited
|
Unaudited
Condensed Comprehensive Income Statements
|
(In RMB, except
for USD data and percentages)
|
|
|
Nine months
ended
|
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
|
|
2017
|
|
2018
|
|
2018
|
|
Change
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
Net
income
|
351,326,411
|
|
212,758,598
|
|
30,978,247
|
|
-39.4%
|
Other comprehensive
income, net of tax:
|
|
|
|
|
|
|
|
Change in cumulative
foreign currency translation adjustment
|
(28,285,790)
|
|
20,891,340
|
|
3,041,837
|
|
-173.9%
|
Other comprehensive
income
|
(28,285,790)
|
|
20,891,340
|
|
3,041,837
|
|
-173.9%
|
Comprehensive
income
|
323,040,621
|
|
233,649,938
|
|
34,020,084
|
|
-27.7%
|
Less: Comprehensive
income attributable to non-controlling interests
|
32,525,570
|
|
7,340,318
|
|
1,068,771
|
|
-77.4%
|
Comprehensive
income attributable to ordinary shareholders
|
290,515,051
|
|
226,309,620
|
|
32,951,313
|
|
-22.1%
|
Jupai Holdings
Limited
|
Reconciliation of
GAAP to Non-GAAP Results
|
(In RMB, except
for ADS data and percentages)
|
|
|
Three months
ended
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2017
|
|
2018
|
|
Change
|
|
RMB
|
|
RMB
|
|
|
Net margin
attributable to ordinary shareholders
|
26.2%
|
|
0.5%
|
|
|
Adjusted net margin
attributable to ordinary shareholders (non-GAAP)
|
28.6%
|
|
8.2%
|
|
|
|
|
|
|
|
|
Net income
attributable to ordinary shareholders
|
115,658,910
|
|
1,698,706
|
|
-98.5%
|
Adjustment for
share-based compensation
|
6,782,134
|
|
4,338,128
|
|
-36.0%
|
Adjustment for
amortization of intangible assets related to acquisition
|
3,456,344
|
|
3,622,519
|
|
4.8%
|
Adjustment for
impairment loss of investment in affiliates
|
-
|
|
15,808,792
|
|
0.0%
|
Adjusted net income
attributable to ordinary shareholders (non-GAAP)
|
125,897,388
|
|
25,468,145
|
|
-79.8%
|
|
|
|
|
|
|
Net income
attributable to ordinary shareholders per ADS, diluted
|
3.39
|
|
0.05
|
|
-98.5%
|
Adjusted net
income attributable to ordinary shareholders per ADS, diluted
(non-GAAP)
|
3.69
|
|
0.73
|
|
-80.2%
|
|
|
|
|
|
|
Weighted average
number of ADSs used in computation:
|
|
|
|
|
|
Diluted
|
34,083,757
|
|
34,871,348
|
|
2.3%
|
Jupai Holdings
Limited
|
Reconciliation of
GAAP to Non-GAAP Results
|
(In RMB, except
for ADS data and percentages)
|
|
|
Nine months
ended
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2017
|
|
2018
|
|
Change
|
|
RMB
|
|
RMB
|
|
|
Net margin
attributable to ordinary shareholders
|
25.6%
|
|
17.3%
|
|
|
Adjusted net margin
attributable to ordinary shareholders (non-GAAP)
|
28.3%
|
|
22.5%
|
|
|
|
|
|
|
|
|
Net income
attributable to ordinary shareholders
|
318,814,192
|
|
205,418,280
|
|
-35.6%
|
Adjustment for
share-based compensation
|
23,169,038
|
|
17,424,226
|
|
-24.8%
|
Adjustment for
amortization of intangible assets related to acquisition
|
10,583,287
|
|
10,458,072
|
|
-1.2%
|
Adjustment for
impairment loss of investment in affiliates
|
-
|
|
33,808,792
|
|
0.0%
|
Adjusted net income
attributable to ordinary shareholders (non-GAAP)
|
352,566,517
|
|
267,109,370
|
|
-24.2%
|
|
|
|
|
|
|
Net income
attributable to ordinary shareholders per ADS, diluted
|
9.43
|
|
5.85
|
|
-38.0%
|
Adjusted net
income attributable to ordinary shareholders per ADS, diluted
(non-GAAP)
|
10.42
|
|
7.60
|
|
-27.1%
|
|
|
|
|
|
|
Weighted average
number of ADSs used in computation:
|
|
|
|
|
|
Diluted
|
33,819,713
|
|
35,123,696
|
|
3.9%
|
View original
content:http://www.prnewswire.com/news-releases/jupai-reports-third-quarter-2018-results-300761797.html
SOURCE Jupai Holdings Limited