SHANGHAI, May 24, 2016 /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 first quarter ended
March 31, 2016.
FIRST Quarter 2016 FINANCIAL HIGHLIGHTS
- Net revenues in the first quarter of 2016 were
$34.6 million, a 148.0% increase from
$13.9 million for the corresponding
period in 2015.
($'000, except
percentages)
|
Q1
2015
|
|
Q1 2015
%
|
|
Q1
2016
|
|
Q1 2016
%
|
|
YoY Change
%
|
One-time
commissions
|
9,976
|
|
71.5%
|
|
23,925
|
|
69.1%
|
|
139.8%
|
Recurring management
fee
|
2,759
|
|
19.8%
|
|
5,655
|
|
16.4%
|
|
105.0%
|
Recurring service
fees
|
1,209
|
|
8.7%
|
|
5,003
|
|
14.5%
|
|
313.9%
|
Total net
revenues
|
13,944
|
|
100%
|
|
34,583
|
|
100%
|
|
148.0%
|
- Income from operations in the first quarter of 2016 was
$4.8 million, a 24.9% decrease from
$6.4 million for the corresponding
period in 2015.
- Net income attributable to ordinary shareholders in the
first quarter of 2016 was $4.1
million, a 16.5% decrease from $4.9
million for the corresponding period in 2015.
- Non-GAAP[1] net income attributable to
ordinary shareholders in the first quarter of 2016 was $5.4 million, a 2.9% increase from $5.2 million for the corresponding period in
2015.
FIRST QUARTER 2016 OPERATIONAL UPDATES
- Total number of active clients[2] during the
first quarter of 2016 was 2,816, a 45.1% increase from 1,941 for
the corresponding period in 2015.
- Aggregate value of wealth management products
distributed by the Company during the first quarter
of 2016 was RMB10,832 million
(US$ 1,672 million), a 140.2%
increase from the corresponding period in 2015.
Wealth management
products distributed by the Company - breakdown by product
type
|
|
Three months
ended
|
|
March 31,
2015
|
|
March 31,
2016
|
Product
type
|
(RMB in millions,
except percentages)
|
Fixed income
products
|
2,880
|
64%
|
|
5,203
|
48%
|
Private equity
products
|
1,042
|
23%
|
|
4,059
|
37%
|
Secondary market
equity fund products
|
563
|
12%
|
|
1,262
|
12%
|
Other
products
|
25
|
1%
|
|
308
|
3%
|
All
products
|
4,510
|
100%
|
|
10,832
|
100%
|
- Jupai's coverage network as of March 31, 2016 included 58 client centers
covering 35 cities, up from 50 and 32 client centers covering 29
and 18 cities, as of December 31,
2015 and March 31, 2015,
respectively.
- Total assets under management[3] as of
March 31, 2016 were RMB21,436 million (US$
3,318 million), a 71.6% increase from December 31, 2015 and a 668.6% increase from
March 31, 2015.
Assets under
management - breakdown by product type
|
|
As
of
|
|
March 31,
2015
|
|
March 31,
2016
|
Product
type
|
(RMB in millions,
except percentages)
|
Fixed income
products
|
1,775
|
64%
|
|
8,627
|
40%
|
Private equity
products
|
847
|
30%
|
|
10,870
|
51%
|
Secondary market
equity fund products
|
79
|
3%
|
|
1,464
|
7%
|
Other
products
|
88
|
3%
|
|
475
|
2%
|
All
products
|
2,789
|
100%
|
|
21,436
|
100%
|
|
|
|
|
|
|
[1]
Jupai's Non-GAAP financial measures are its corresponding GAAP
financial measures as adjusted by excluding the effects of all
forms of share-based compensation and amortization of intangible
assets resulting from business acquisitions.
|
[2]
"Active clients" for a given period refers to clients who purchase
wealth management products distributed by Jupai at least once
during that given period.
|
[3]
"Assets under management" by Jupai refers to the amount of capital
contributions made by the investors to the fund without adjustment
for any gain or loss from investment.
|
"We are pleased to announce that the total value of wealth
management products distributed by Jupai reached a new quarterly
high of $1.67 billion in the first
quarter 2016, despite the slow season effects from the Chinese New Year holiday," said Mr. Jianda Ni, Jupai's co-chairman of the board and
chief executive officer. "In the first quarter of 2016, we
continued to diversify our product offerings, with fixed-income
products accounting for 48% of the aggregate value of all products
distributed in this period, down from 56% in the fourth quarter of
2015. Private equity and venture capital products, which are the
main contributors of recurring fees, accounted for 37% of the
aggregate value of all products distributed in this period, up from
33% in the fourth quarter of 2015. The increase in private equity
and venture capital products as a percentage of all our product
offerings speaks to our ability to improve our product mix. Jupai's
asset management business has achieved solid growth and we believe
it will continue to make significant progress. Our total assets
under management increased from $1.9
billion at the end of 2015 to $3.3
billion at the end of the first quarter of 2016."
Mr. Ni continued, "Looking ahead, we plan to further strengthen
our professional team, maintain our stringent risk control
standards, and continue to select quality products for our clients.
We will also look to cooperate with more outstanding international
product providers and further enhance our offerings of overseas
products through our Hong Kong
subsidiary. As a critical part of our overseas strategy, our
Hong Kong subsidiary has recently
obtained licenses to, among other things, deal in, and advise on,
securities as well as asset management. We look forward to
launching our business in Hong
Kong this month."
Mr. Tianxiang Hu, Jupai's
co-chairman and executive chairman of the board commented, "Jupai
remains confident in the outlook for the internet finance industry,
and we believe that our strategic investments in this industry will
pay off in the long term."
Ms. Min Liu, Jupai's chief
financial officer said, "Jupai maintained strong growth momentum in
the first quarter of 2016, with net revenues growing at 148.0%
year-over-year, as we continued to adopt more proactive sales and
marketing strategies, strengthened our brand, and further expanded
our market share. As our business continues to grow rapidly, we
will remain focused on improving our revenue mix to increase
revenue from recurring management fees and recurring service fees,
and enhancing our operating margin. We have also adjusted our
commission structure to control costs, which is expected to be
reflected in our second quarter financial results."
FIRST QUARTER 2016 FINANCIAL RESULTS
Net Revenues
Net revenues for the first quarter of 2016 were
$34.6 million, a 148.0% increase from
$13.9 million for the corresponding
period in 2015, primarily due to increases in one-time commissions
and recurring management fees.
- Net revenues from one-time commissions for the first
quarter of 2016 were $23.9 million, a
139.8% increase from $10.0 million
for the corresponding period in 2015, primarily a result of an
increase in the number of active clients as the Company opened new
client centers and expanded existing ones.
- Net revenues from recurring management fees for the
first quarter of 2016 were $5.7
million, a 105.0% increase from $2.8
million for the corresponding period in 2015, primarily
attributable to the increase in the value of assets under
management. The Company recognized $0.5
million and $1.4 million
carried interest in the first quarter of 2016 and 2015,
respectively.
- Net revenues from recurring service fees for the first
quarter of 2016 were $5.0 million, a
313.9% increase from $1.2 million for
the corresponding period in 2015, primarily as the Company provided
ongoing services to more product suppliers. The Company recognized
$0.6 million and $0.5 million variable performance fees in the
first quarter of 2016 and 2015, respectively.
Operating Costs and Expenses
Operating costs and expenses for the first quarter of
2016 were $29.7 million, an increase
of 296.8% from $7.5 million for the
corresponding period in 2015.
- Cost of revenues for the first quarter of 2016 were
$17.2 million, a 385.3% increase from
$3.5 million for the corresponding
period in 2015, primarily due to a combination of an increase in
the number of wealth management advisors and client managers and
the average compensation, in particular commission fees, paid to
them.
- Selling expenses for the first quarter of 2016 were
$8.1 million, a 277.6% increase from
$2.1 million for the corresponding
period in 2015, primarily due to increased marketing, advertising
and brand promotion expenses.
- G&A expenses for the first quarter of 2016 were
$4.9 million, a 165.6% increase from
$1.9 million for the corresponding
period in 2015, mainly due to increases in both the numbers of
managerial and administrative personnel and compensation paid to
them as well as increased rental and office supply expenses.
- Other operating income (government subsidies) received
by the Company in the first quarter of 2016 were $0.5 million, a significant increase from
$48 thousand for the corresponding
period in 2015.
Operating margin for the first quarter of 2016 was 14.0%,
compared to 46.2% for the corresponding period in 2015. The
decrease was mainly due to increased compensation costs and
marketing expenses compared with the corresponding period in
2015.
Income tax expenses for the first quarter of 2016 were
$1.4 million, a 31.8% decrease from
$2.0 million for the corresponding
period in 2015. The decrease was primarily due to a decrease in
taxable income.
Net Income
- Net Income
- Net income attributable to ordinary shareholders for the
first quarter of 2016 was $4.1
million, a 16.5% decrease from $4.9
million for the corresponding period in 2015.
- Net margin attributable to ordinary shareholders for the
first quarter of 2016 was 11.8%, as compared to 35.1% for the
corresponding period in 2015.
- Net income attributable to ordinary shareholders per basic
and diluted ADS for the first quarter of 2016 was $0.13 and $0.12,
respectively, as compared to $0.25
and $0.24, respectively, for the
corresponding period in 2015.
- Non-GAAP Net Income
- Non-GAAP net income attributable to ordinary
shareholders for the first quarter of 2016 was $5.4 million, a 2.9% increase from $5.2 million for the corresponding period in
2015.
- Non-GAAP net margin for the first quarter of 2016 was
15.6%, as compared to 37.5% for the corresponding period in
2015.
- Non-GAAP net income attributable to ordinary shareholders
per diluted ADS for the first quarter of 2016 was $0.16, as compared to $0.26 for the corresponding period in 2015.
Balance Sheet and Cash Flow
As of March 31, 2016, the Company
had $140.8 million in cash and
cash equivalents, compared to $122.5
million as of December 31,
2015 and $31.5 million as of
March 31, 2015.
Net cash used in operating activities during the first
quarter of 2016 was $1.4 million.
Net cash used in investing activities during the first
quarter of 2016 was $1.6
million.
Net cash provided by financing activities during the
first quarter of 2016 was $21.3
million. This was primarily attributable to our issuance of
ordinary shares to Julius Baer Investment Ltd. and SINA Hong Kong
Limited for an aggregate amount of approximately $22.9 million in a private placement in
January 2016.
BUSINESS OUTLOOK
The Company estimates that its revenues for the second quarter
of 2016 will be in the range of $35 million
to $38 million, an increase of 108.3% to 126.2% compared to
the same quarter in 2015. This forecast reflects the Company's
current and preliminary view, which is subject to change.
CONFERENCE CALL
Jupai's management will host an earnings conference call on
May 24, 2016 at 8 a.m. U.S. Eastern Time (8 p.m. Beijing/Hong
Kong time).
Dial-in details for the earnings conference call are as
follows:
U.S./International:
|
+1-855-298-3404 or
+1-631-514-2526
|
Hong Kong:
|
+852-5808-3202 or
800-905-927
|
Mainland
China:
|
400-120-0539
|
Passcode:
|
5483463
|
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 May 31,
2016:
U.S./International:
|
+1-866-846-0868
|
Hong Kong:
|
800-966-697
|
Mainland
China:
|
400-184-2240
|
Passcode:
|
5483463
|
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 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,
non-GAAP income per diluted ADS and non-GAAP net margin 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 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; the result of the integration of
E-House Capital into the Company; 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 (21) 6230 5097
Email: Jupai-IR@thefootegroup.com
-- FINANCIAL AND OPERATIONAL TABLES FOLLOW --
Jupai Holdings
Limited
|
Unaudited
Condensed Consolidated Balance Sheets
|
(In U.S.
dollars)
|
|
|
As of
|
|
December 31,
|
|
March 31,
|
|
2015
|
|
2016
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
122,504,799
|
|
140,793,577
|
Short-term
investments
|
11,156,616
|
|
12,638,891
|
Short-term entrusted
investments
|
287,797
|
|
154,770
|
Accounts
receivable
|
4,005,258
|
|
1,835,657
|
Other
receivables
|
5,164,971
|
|
5,434,921
|
Amounts due from
related parties
|
1,836,209
|
|
6,851,760
|
Deferred tax assets
-- current
|
7,087,092
|
|
7,128,866
|
Other current
assets
|
1,025,526
|
|
1,304,257
|
|
|
|
|
Total current
assets
|
153,068,268
|
|
176,142,699
|
Long-term
investments
|
9,988,168
|
|
8,512,351
|
Investment in
affiliates
|
11,577,995
|
|
12,557,350
|
Advanced payment for
acquisition
|
14,612,634
|
|
15,150,220
|
Property and
equipment, net
|
2,473,964
|
|
2,854,832
|
Intangible
assets
|
8,432,021
|
|
9,518,655
|
Goodwill
|
39,995,458
|
|
40,935,463
|
Long-term
prepayment
|
292,655
|
|
951,479
|
Deferred tax
assets -- non-current
|
1,243,313
|
|
1,243,313
|
|
|
|
|
Total
Assets
|
241,684,476
|
|
267,866,362
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accrued payroll and
welfare expenses
|
12,443,966
|
|
13,474,024
|
Income tax
payable
|
15,913,670
|
|
7,123,746
|
Other tax
payable
|
6,039,794
|
|
5,646,074
|
Dividend
payable
|
1,154,983
|
|
-
|
Amounts due to
related parties-current
|
-
|
|
966,488
|
Deferred revenue from
related parties
|
12,897,658
|
|
18,531,326
|
Deferred
revenues
|
8,956,195
|
|
10,084,492
|
Other current
liabilities
|
730,405
|
|
1,198,182
|
|
|
|
|
Total current
liabilities
|
58,136,671
|
|
57,024,332
|
Amounts due to
related parties-non current
|
5,280,000
|
|
-
|
Deferred
revenue -- non-current from related parties
|
4,729,030
|
|
8,537,288
|
Deferred
revenue -- non-current
|
548,464
|
|
785,775
|
Non-current uncertain
tax position liabilities
|
827,315
|
|
853,385
|
Deferred tax
liabilities -- non-current
|
2,108,005
|
|
2,379,664
|
|
|
|
|
Total
Liabilities
|
71,629,485
|
|
69,580,444
|
Equity
|
170,054,991
|
|
198,285,918
|
|
|
|
|
Total Liabilities
and Total Shareholders' Equity
|
241,684,476
|
|
267,866,362
|
Jupai Holdings
Limited
|
Unaudited
Condensed Consolidated Income Statements
|
(In U.S. dollars,
except for ADS data, per ADS data and percentages)
|
|
|
Three months
ended
|
|
March 31,
|
|
2015
|
|
2016
|
|
$
|
|
$
|
Revenues
|
|
|
|
Third party
revenues
|
5,416,494
|
|
13,264,321
|
Related party
revenues
|
8,615,563
|
|
21,724,681
|
Total
revenues
|
14,032,057
|
|
34,989,002
|
Business taxes and
related surcharges
|
(88,948)
|
|
(405,758)
|
|
|
|
|
Net
revenues
|
13,943,109
|
|
34,583,244
|
|
|
|
|
Operating costs and
expenses:
|
|
|
|
Cost of
revenues
|
(3,546,545)
|
|
(17,212,621)
|
Selling
expenses
|
(2,142,845)
|
|
(8,091,953)
|
General and
administrative expenses
|
(1,853,189)
|
|
(4,922,265)
|
Other operating
income -- government subsidy
|
48,069
|
|
486,532
|
|
|
|
|
Total operating cost
and expenses
|
(7,494,510)
|
|
(29,740,307)
|
|
|
|
|
Income from
operations
|
6,448,599
|
|
4,842,937
|
|
|
|
|
Interest
income
|
8,275
|
|
109,327
|
Investment
income
|
1,050,790
|
|
487,818
|
Other
income
|
-
|
|
46,076
|
|
|
|
|
Total other
income
|
1,059,065
|
|
643,221
|
|
|
|
|
Income before taxes
and loss from equity in affiliates
|
7,507,664
|
|
5,486,158
|
Income tax
expense
|
(1,986,604)
|
|
(1,355,835)
|
Income from equity in
affiliates
|
(192,606)
|
|
(39,130)
|
|
|
|
|
Net
income
|
5,328,454
|
|
4,091,193
|
Net income
attributable to non-controlling interests
|
(430,573)
|
|
(1,144)
|
|
|
|
|
Net income
attributable to ordinary shareholders
|
4,897,881
|
|
4,090,049
|
|
|
|
|
|
|
|
|
Net income per
ADS:
|
|
|
|
Basic
|
0.25
|
|
0.13
|
Diluted
|
0.24
|
|
0.12
|
Weighted average
number of shares used in computation:
|
|
|
|
Basic
|
61,244,980
|
|
191,651,631
|
Diluted
|
64,975,362
|
|
199,433,408
|
Jupai Holdings
Limited
|
Unaudited
Condensed Comprehensive Income Statements
|
(In U.S.
dollars)
|
|
|
Three months ended
March 31,
|
|
2015
|
|
2016
|
|
$
|
|
$
|
Net
income
|
5,328,454
|
|
4,091,193
|
Other comprehensive
income, net of tax:
|
|
|
|
Change in fair value
of available-for-sale investment
|
36,516
|
|
-
|
Disposal of
available-for-sale investment
|
(43,288)
|
|
-
|
Change in cumulative
foreign currency translation adjustment
|
(106,807)
|
|
447,220
|
Other
comprehensive (loss) income
|
(113,579)
|
|
447,220
|
|
|
|
|
Comprehensive
income
|
5,214,875
|
|
4,538,413
|
Less: Comprehensive
income attributable to non-controlling interests
|
422,124
|
|
67,649
|
|
|
|
|
Comprehensive
income attributable to ordinary shareholders
|
4,792,751
|
|
4,470,764
|
Jupai Holdings
Limited
|
Reconciliation of
GAAP to Non-GAAP Results
|
(In U.S. dollars,
except for ADS data and percentages)
|
|
|
Three months ended
March 31,
|
|
2015
|
|
2016
|
|
$
|
|
$
|
Net
margin
|
35.1%
|
|
11.8%
|
Adjusted net margin
(non-GAAP)
|
37.5%
|
|
15.6%
|
|
|
|
|
Net income
|
4,897,881
|
|
4,090,049
|
Adjustment for
share-based compensation
|
332,746
|
|
772,300
|
Adjustment for
amortization of intangible assets related to acquisition
|
-
|
|
519,782
|
Adjusted net income
attributable to ordinary shares (non-GAAP)
|
5,230,627
|
|
5,382,131
|
|
|
|
|
Net income
attributable to ordinary shares per ADS, diluted
|
0.24
|
|
0.12
|
Adjusted net
income attributable to ordinary shares per ADS, diluted
(non-GAAP)
|
0.26
|
|
0.16
|
|
|
|
|
Weighted average
number of shares used in computation:
|
|
|
|
Diluted
|
64,975,362
|
|
199,433,408
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/jupai-reports-first-quarter-2016-results-300273737.html
SOURCE Jupai Holdings Limited